REGISTERED COMPANY NUMBER: 01005570 (England and Wales) REGISTERED CHARITY NUMBER: 500813 REPORT OF THE TRUSTEES AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 FOR CHAPTER (CARDIFFI LIMITED MHA Chartered Accountants and Statutory Auditor Elfed House Oak Tree Court Cardiff Gate Business Park CARDIFF CF23 8RS CHAPTER (CARDIFF) LIMITED CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Page Report of the Trustees 1 to 18 Report of the Independent Auditors 19 to 21 Consolidated Statement of Finan¢lal Activities 22 Consolidated Balance Sheet 23 Charity Balance Sheet 24 Consolidated Cash Flow Ststement 25 Notes to the Cash Flow Statement 26 Notes to the Financial Statements 27 to 44 CHAPTER (CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The trustees, who are also directors of the charity for the purposes of the Companies Act 2006. present their report with the financial statements of the charity and its subsidiary for the year ended 31 March 2024. The trustees have adopted the provisions of 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 IFRS 102) {effective 1 January 20191. PURPOSE Charitable objectives Chapter aims to provide support for cultural organisalions and arts in parallel with the provisions of public programmes of contemporary arts. principally in film, theatre and visual arts, as a means of achieving its objectives. The Charity's objectives {'Objects'l are speofically restricted to the following.. 1.1 The Objectives of the Charity are, for the public benefit, to promote. maintain. improve and advance the public's education and understanding of the arts, including by the provision of an arts centre in the city of Cardiff or elsewhere in the United Kingdotn as the trustees may from time to time determine. 1.2 In this article 'the Arts. includes (but is not limited to) theatre, visual and live art, film. music. dance, literature and all digital forms of art. Statement of purpose (Mission, Vision & Values) Chapter is an international centre for contemporary arts and culture. rooted in the heart of Cardiff, Wales. Established by artists Christine Kinsey and Bryan Jones and writer Mik Flood in 1971 to celebrate experimentation and radical thought, we've been a catalyst for creativity and critical thinking ever since. We commission and present thought-provoking exhibitions, films, performances and multidisciplinary events by established and emerging contemporary artists who expand our worldview and challenge the status quo. Embracing multiple and diverse perspectives. risk-taking and experimentation, our programme encourages conversations that cross boundaries and disciplines. The artists we work with actively engage with the critical questions and issues that shape our present and we foster dialogue between audiences and artists through a public programme that provides opportunities to connect through our histories, the way we live now and how we might imagine new futures. Our approach is collaborative. foregrounding projects that have shared purpose and prioritising social and cultural equity. We advocate for communities and artists as worfd builders. Alongside our expansive public programme. we work behind the scenes to support the creative community in our 50+ studios and beyond. bringing people together to encourage ideas and collective agency. We believe in equitsble access to culture and that art has the power to connect us all in dialogue around diverse experiences and shared aspirations, support health and wellbeing and contribute to a more curious and cohesive society. OBJECTIVES Chapter is an ambitious, multi-artform venue that presents, produces and promotes intemational art, live Performan￿ and film. We welcome neady 600.000 visitors through our doors each year and position our local communities at the heart of everything we do. We're a centre for world-class. inventive and compelling work thavs open and accessible to all. Our gallery commissions and produces exhibitions of trje very best in national and international art. The theatre spaces are a platform for experimental and thought-provoking works. and our cinemas offer independent and challenging films alongside a range of unique festivals and events. We also bring more films, to more people, in more places through Film Hub Wales, and support young people's talent-pathways in the film industry through BFI Film Academy. All of this is supported by an innovative and inclusive programme of learning and community engagement, and we bring people together in our large social and community spaces. Page 1 CHAPTER {CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Our artistic aims are to be.. internationally renowned as a hub for contemporary arts and culture. a champion for diversity and inclusion. an agent for collaboration. a leader in creative learning and engagement. an advocate of the cultural artlstic landscape of Wales. a catalyst for a new culture of experimentation for works originated in the Welsh language. ACHIEVEMENT AND PERFORMANCE 525,000 people visited our building Over 6 million people visited our website Chapter Group turnover for 23124 is £3,588,469 56 full time equivalent jobs at Chapter, 81 people We screened 388 film tiUes over 3,042 screenings selling 66,017 tickets We hosted 72 different events over 239 perfomiances and sold 8,437 tickets We are home to 53 studios, hosting around 100 artists and creatives 24,061 people visited our free exhibitions £240,000 invested in the local freelance economy 5.989 hours offree or subsidised R&D support 2,058 free community b-ckets We hosted 1,700 classes and workshops We funded 42 projects across Wales through Film Hub Wales engaging with 40,797 people We made 198.000 hot drinks in our cafe Film We take the lead in independent cinema in Wales. presenting the best of Welsh. UK and international film. It is ever more important to present a clear and exciting independent voice in the anema landscape in a wodd where screens large and small are competing for aUdien￿S. Wilh that in mind, alongside new releases. we brought a range of fesliva15 and curated seasons. with talks, Q&As and events offering our audien￿$ an enriched cinema experience and insight into the thriving film industry in Wales. The success of Barbenheimer {Ba￿le and Oppenheimert showed a fapde of mainstream success that buoyed up an otherwise difficult year for new releases. This gave us a chance to lean into our specialism and so we curated seasons of films with our visiting artists Myfanwy MacLeod alongside a season funded by the Canada Cymru project Ihal brought in partners from Cardiff University. BBC Cardiff Singer of the World and The Evolution of Horror podcast. We also curated a successful season of films for the BFI= The Creative Worlds of Powell and Pressbur9er that dug into the work of Welsh actor Roger Livesey (The bfe and Death of Colonel Blimp.. l Know Where Im Going." A Matter of Life and Death) and looked at themes of sex and obsession with writer So Mayer that allowed us to showcase our specTalism wilh 35mm Projection room tours. We also experimented with mini seasons of classic films such as Krzysztof Kieaiowski's Three Colours Trilogy and a bank holiday of Bruce Lee films. After the big year for Welsh language film with Y Swn and Gwledd. this year was more about telling the story of how Wales, talent is key to the industry in a myriad of ways, including screenwriting (Keiron Selfs The CanteNille Ghosfj and acting talent (Jack Parry Jones in A Kind of Kidnapping) and as a base to work from (Keith Kopp's Translalions.. Janis Pugh's Chuck Chuck Babyl. We also showcased films where the filmmakers or subject of the film had deep relationships with Chapter, such as Chris Morris, A Year in A Field.. Carol Morley's Typist Artisl Pirate King.. Jeanie Finlays, Your Fat Friend and Paul Sng's Tish. Another way of working with talent was taking eXper[en￿d artists in other fields who are new to film such as John Rea's Atgyfodi,- Anushiye Yarnell'5 Marathon of Intimacies and Kieron Self and Kevin Jones, Marfrn Decker. This year we also began a partnership wth Welsh label PYST and S4C's Lwp to present music videos before feature films that launched with a showcase of all 20 vide05 in the project on Dydd Miwsig Cymru, bringing a new micro-short music video every month. We continued to work with BAFTA Cymru to showcase Welsh talent and communicate a better understanding of the industry to Welsh audiences including a showcase around the nomination announcements. We also worked monthly lo showcase local shorts al Chapter Moviemaker as well as the Chapter Queer Film Prize which is automatirAlly entered into the Iris Prize and shown on Channel 4 for 12 months (this year won by Diomysus.. More th8n Monogamy by Emily Morus Jones}. Page 2 CHAPTER ICARDIFF} LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Our advocacy work in the industry saw our Cinema Programme Manager Claire Vaughan voted onto the Executive Board of the UK Cinemas Association for the fifth year and on the new BFI Programme Committee. Here she continues to lobby for a more joined up approach be￿een the commercial and publicly funded sides of the industry to help more audiences access film. with a focus on Dldeaf audiences. This year we hosted Deaf Together and held a discussion on how Dldeaf audiences experien￿ film in the cinema. In December we began the Deaf Film Club wlh BSL discussion. This year's festivals included Kotatsu Japanese Animation Festival,. Iris Prize.. BFI London Film Festival., Doc N Roll- Into Film.. and SAFAR Festival.. all of which presented a chance to connect in meaningful ways to an audience and provide films that were not available anywhere else in Wales. Fllm Hub Wales We continued our BFI funded work as lead organisation in Wales for Film Hub Wales {FHW). The project continues to support anemas. festivals and community screens with funding, research. skills development and advocacy. FHW distributed £77,000 in lottery awards to 43 projects, reaching 40.797 people in person, plus 4686 online audience. 96 % of films were specialised and 360/0 were accessible screenings. Highlights included a new Windrush Festival in Newport Cinema Golau. the Hijinx Unity Festival and hyperlocal street-based screenings in Riverside. wth GentlelRadical. Our pioneering project, Inclusive Cinema came to an end as the new BFI strategy commenced. In its final year. it released reSoUr￿S around Trans" Loving Care and Working£lass Inclusion. Made in Wales continued to celebrate films with Welsh connections. which included films such as Y S￿Trn. With funding from Creative Wales. the project supported 130 films in 2022123 146 of which were new to the projecll, 43 cinemas. 129 filmmakers, 54 distributors and 134 production companies. We also created 29 assets including podcasts. interviews and video blogs, along Wlth one curated film package and we host over 800 films on our online catalogue. FHWS network reached 302 Welsh exhibitors, 191 of which are members of the Hub. This year. we welcomed the Maxime in Blackwood, The Little Cinema in Penmaenmawr and Gower Film Club. BFI Film Academy We led the BFI Film Academy Plus events programme for Wales, pathering with a wde number of venues. organisations and industry specialists across the country. Under the 'SCENE' strand, this incfuded short film showcases and ne￿OrkIng events in Cardiff and Bangor, collaborating with Cables & Cameras and Welsh participants from the Internab-onal Youth Media Summit. And in February 2024, we were pleased to host the first event to tske place in Wales for the BFI Future Film Festival. For the 'Recommends' strand, Wes Anderson recorded a special introduction for his debut feature Bome Rocket. and Christopher Nolan did likewse for his film Following, and these were complemented by a live cast Q&A for the latter. screenings of The Prestige on 35mm with projection tours, and a a&A with Gorilla VFX for their work on Asleroid Qty. Online, we hosted a UK-wide Lab for the BFI on the business of film, and Wales-focused sessions on film locations and opportunities for young programmers. Plus, we funded five micro-short rilms. provided industry mentoring lo the selected filmmakers and a wider number of applicants. and arranged several sC￿ening opportunities afterwards. And throughout this year, we laid the groundwork for a very expanded programme in 20242025. Page 3 CHAPTER {CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Cinema Ticket Sales and Income I400,￿0 £366,000 £350,WO £300,0)0 £260,514 £250,￿0 É230,352 £200,￿0 £156,100 £150,LK)O iioo,(x)o 75563 55759 60662 £50,0(X) 31S84 £7,90q348 £0 Ciiiema 20.21 Cinetna 21.22 Cinonia 23.24 Intcthe v Tickets Sold Performance and Live Events From May 2023 our performance programme began to take a new direction following the appointment of Perft)rmance Curator. Kit Edwards. Since then. the programme has renewed its focus on nurturing experimentsl and interdi5ciplinary live art practices. further distinguishing Chapter as the only institution in Wales supporting this kind of work. Artist development, long-term support. commissioning and an expanded understanding of what performance can be. have been key to this new approach. In September 2023 we launched the new programme with Reciprocal Gestures.. a season of movement and dance. This saw 10 artists working with experimental and interdisciplinary modes of dance come together in a season that foregrounded creative exchange through collaboration. conversation and skill-sharing. Explorations of intimacy. community, queerness, aging, masculinity. and the afterlives of colonialism featured in work by Gareth Chambers. Seke Chimutengwende, Emilyn Claid, Good News from the Future, Anushiye Yarnell, and Lewys Holt. At a time where dance in Wales was and continues to experience a critical lack of investment and support. programming the best of Wales based and national dan￿ felt like a vital injection of energy into the s￿ne. During this season. we initiated the first of our Perfomiance Artist in Residence positions wth Anushiye Yarnell. Over 6 months. Anushiye received financial support. regular space, curatorial, technical, fundraising and marketing sUPPOrt. She spent this time developing her practice, sharing new works, workshops, screenings and talks, and was later commissioned for Experimentica 2024. This rigorous and sustsined approach to artist development is something that will continue into the future. From January 2024. we began programming monthly gigs, recognising the desire for more re9ular music al Chapter. Featuring artists such as Islet, Mary Lattimore. Muriel, Papa Jupe's TC, Volley Ball, Rufus Mufasa, Sgarab Tapes and more. These shows consistently sold out and have brought new younger audIen￿S to the programme. Providing free and subsidised space for R&D to local and national artists and companies. we continue our legacy as an organisation committed to supporting artists. Page 4 CHAPTER (CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Performance Sales and Income £￿.0Cm) £81.27S E80.QIL) £77.071 £70 £63,956 £sJ,o(xi É50.OLK) £40,784 £40,(JJ) £30.0 £20.00) £io,o 7061 8330 9502 £2,300716 4197 £0 PÈrforinan(e 19.20 Perlorniaiice 20.21 Poiloimance 21.22 Performante 22.23 performan￿ 23.24 Iniotne •Tickets Sold Visual Arts During the period we presented eight thought-provoking projects by national and international artists. The artists we Worked with were relevant and responsive to the social, cultural and political issues of our times. exploring subjects including the climate crisis. colonial legacies. migration and race. Significant exhibitions included a solo exhibition by Adham Faramawy, that brought together for the first time recent video works. paintings and sculptures. Exploring the entanglement of land, rivers and migratory flows through personal histories. mythology and flora. their work centred the nuanced and complex relationships bet￿een marginalised bodies and place. An exhibition by Canadian artist Myfanwy MacLeod, her first in Wales. reconciled us with the botanical wortd, magnifying the interdependency and symbiotic relationship between plants and humans. The exhibition was accompanied by a family activity pack and a series of workshops for young people. It was supported by the Canada Council for the Arts. BC Arts Council and Canada Cymru. Chapter continued its strong partnership with the Artes Mundi prize, presenting three international arbsts, including the prize winner at Chapter.. Carolina Caycedo (USA). Taloi Havini (Nakas Tribe. Hako people) and Naomi Rincon Gallardo (Mexicol. In our cafe we curated and produced presentations by Seo Hye Lee, whose work challenges the notion of listening taking her experience as a deaf person wth a cochlear implant as a stsrting point. In partnership with Artlink, we worked wth the artist Leanne Ross. displaying her iconic 'Shoul Our paintings which feature snippets of conversations and observations from her On our Lightbox we commissioned artwork by Rosa Johan-uddoh, which mobilised portraits of Ballhazar from historic paintings. challenging the cultural marginality of Black people and the ways culture reprodu￿$ and fixes ideas of their representation. We were awarded £60.000 project funding from Welsh Government to collaborate wth Arts Council of Wales and Amgueddfa Cymru on Perspective{sl to bring about a step change in how the visual arts and heritage sector reflects the cultural and ethnic diversity of our society. Chapter appointed artist Sophie Mak-schram. whose work spans experiential education, collective practice and research. to question and challenge current ways of thinking within the sector through an anti-racist and decolonising lens. We appointed Farah Allibhai, the first recipient of the Chapter Artist in Residence Scheme which offers a Black, Asian and Minority Ethnic artist or artists a free 12-month studio with curatorial support. Page S CHAPTER (CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Creative Community We're home to some of Wales, most innovative arts organisations. facilitators and practitioners and we helped them share their stories wth Wales and the world. We extended our commitment to collaboration and co-commissioning through partnerships with arts venues, education, industry and community organisations to bring exciting and original programming to Wales and take the best of Wales to the world. The creative community of artists and companies based in our 50 studios, are at the heart of our organisalion. We worked collaboratively with them to support their organisational growth and sustainability and showcased the work that they do within our communities. Together, we worked to foreground Welsh talent and to offer audiences multiple pathways to engagement with creativity. Partners included Theatr lolo, Taking Flight Theatre, The Printhaus, Music Theatre Wales, Flossy & Boo, BAFTA Cymru. Cardiff Animation Festival and Into Film. to name a few. We also supported organisalions and creative individuals from across the sector but who are not based in our buildings. In the year this included approximately 5000+ hours of free or subsidised Spa￿ for professional practs'lionerslcreative organisations to support R&D', 120+ hours of curatorial. marketing and technical supporL 5540+ hours of subsidised hire rates to creative organisations to deliver core activity to c37.000 beneficiaries, and sub5idised rents to our 53 tenants. The combined commercial value of this subsidy and support is over £600,000 per year. Community Engagement and Audience Development Following an intensive period of internal reflection and community consultation. we revised our business model and looked to Oplimise our role and impact in our communities. We worked with them to empower them to shape and inform their o cultural experiences. Over the last year, we've been focused on meetings with community groups. community leaders, everyday citizens, shop keepers, arts organisations and other stakeholders. During this time, we engaged hundreds of people across Cardiff. This work is ongoing. We focussed on exploring people's relationship to Cardiff, to creativity and culture. and then to Chapter. We are leaming about historical relationships. and then focusing on what these relationships might look like in the future. and how Chapter can take a lead in that. Some of the key relationships so far have been wth (but are by no means limited to).. STEM Riverside - local organisation working with young Muslim girls., Green Soul Somali Muslim women's group- Grange Pavilion- organisers ofthe community hub in Grangetown-, Grange Pavilion Youth Forum - the community hub's membership group for young Global Majority people aged 14-25- Oasis - Refugee, Migrant and Asylum seeker support organisation and Ely and Caerau Hub- Cardiff Council njn community hub. We've taken the time to understand how this can not only inform our programming, but also how we can create better access for groups who feel marginalised and do not come to Chapter, we explored how to structurally embed this into the organisation. For example. we have created a dedicated community room at Chapter (Peilotl that hosts activities ft)r 9rassrools community groups who traditionally cannot afford regular hired space. This room also functs'ons as a public space that is distinct in activity and atmosphere to our café which is our largest public space. Peilot has been used for a wide range of activities including a regular Persian music group and South Asian History month activities. We're wot1(ing with an after-school tutor group from Fitzalan High School who have described their activities, and the impact of our support, below. fhapter have pmvided suitable accommodation for us to provide this vital work thanks to staff who have gone out of their way to engage wilh the diverse community that surrounds Canlon and RIVe￿ide, Ihus growing to reflect the society that is sits within. Peilot has given us a refuge in short and without exaggeration, the future of our STEM club is dependent upon this ongoing hospitality and locality to Filzalan School where the majority of our attendees attend. Chapter has given us hope to be frank. As a small grassroots organisation that is utterly dependent upon its volunteer bank to impart Iheir knowledge upon our attendees. we are constantly fighting for help usually in Ihe face of adversity. It means everything to us in our underpinning goal to be part of a fairer and kinder world. Chapter has helped us to be part of the change that we want to see." Page 6 CHAPTER (CARDIFFI LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 We conlinued our work with Dldeaf children and young people, working with Deaf consultants and artists Jonny Cotsen and Heather Williams. In May 2023, we hosted Deaf Together, a fesb'val of Dldeaf-led activity, with Dldeaf and hearing audiences to centre the experiences of Dldeaf people and showcase their creativity. We're improving our building to make it more accessible to Dldeaf audiences and communities and continued to develop a regular programme for all ages. We installed new hearing loops in the Seligman Theatre and Stiwdio Seligman and bought wireless equipment to improve visitor experience in our gallery. Dldeaf Film Club hosted by Heather Williams started in December 2023. With BFI Audience Projects Fund support we started working closely with target audiences to grow our film audien￿. As well as the work wth Deaf Film Club. we worked with Grange Pavilion and Ely and Caerau Hub to establish off-site film groups with young people. This has enabled us to build relationships in locations where young people are comfortable before welcoming them to Chapter. The long-term goal with these groups is to re-establish our young programmers, forum to Co-create our programme and ensure it remains relevant and interesting. We continued to offer at least one weekty event free or at a low cost for young people and families including free Saturday morning films and free films during school holidays. We also continued offering a free lunch to children and young people during the holidays, and a regular programme of free workshops and self-led activity packs exploring the key strands of our programme. We provided approximately 900 free lunches per week of each school holiday and screened 78 free films to 12.333 visitors this year. We offered free gallery tours and workshops to primary and secondary schools in the region, around our exhibitions and theatre programme. We have continued our weekly 'Carry on Screaming, strand, which is a relaxed screening for parents with babies under 12 months. Over the year we sold 376 tickets to 51 films. We delivered a number of co5lntTcd 1920 •20.21 *21.22 k22.2Y 123.24 COVID RECOVERY Covid recovery is slow, and we continue to be impacted. We are currently experiencing footfall at 75°h of pre-pandemic levels. People's habits have changed, we have a cost-of-living crisis, there is less disposable income. We endeavour to explore new ways of working that encourage people through the doors to increase engagement and participats'on and support us to generate income. Chapter Visitors Comparison 8W(X)O 7(X)(x)o 672391 6[X)￿o 525553 5￿CK)0 449587 0 4(J)wo 333836 E 3￿)￿0 2￿(1)0 io)(oo 22229 Year 19.20 Year 20.21 X Year 21_22 • Year 22.23 • Year 23.24 Page 8 CHAPTER (CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Equity, diversity and inclusion Chapter aims to be an Equal Opportunity and Fair Treatment Organisation and recognises that it has an important role to play in Canton and the wider Wales as a vibrant and diverse community. It aims to be an organisation with a reputation for elebrating diversity and ensuring fairness and equality in everything that it does. The key principle is to encourage fijll contribution from Chapter's diverse community and to further ensure that no-one {slaff. visitors, artists, partners, volunteers. consultants) receives less favourable treatment on the grounds of race, age, ethnic or national origin, sex, pregnancy and matemity, marital status, gender reassignment. disability, religion or beliefs, sexual orientstion or any other unjustifiable grounds. Chapter is totally committed to promoting equality in all aspects of the organisation. It is the intention of Chapter that all people should be treated with respect, dignity and integrity whilst involved in activities concerned wth its work. We endeavour to actively improve the quality of our servi￿$ and facilities to serve the differing needs of our staff, audiences and community. Chapter aims to avoid or remove any unfair and or discriminatory practices within its operations and to actively oppose all forms of discrimination. We recognise and value the cultural diversity that exists in society, but also acknowledge that there are many forms of discrimination leading to una￿ptable behaviour. We are committed to taking positive steps to remove barriers to participation and access, so that everyone in our community may enjoy and benefit from our programme and activities. We recognise our responsibilities to comply with current equality legislation, including the Equality Act {2010}. In this respect. we will have due regard for the need to.. Eliminate unlawful discriminalion. harassment and victimisation and other conduct prohibited by the Act. Advance equalty of opportunity between people who share a protected characteristic and those who do not. Foster good relations between people who share a protected characteristic and those who do not. We recognise as an organisation we are on a constant journey of improvement. Throughout 2023-24 we worked to learn, unleam and reflect on our offer and our impact on our community. We updated and reviewed our Anti-Racism Action Plan, Code of Conduct Ihat is shared with all our staff. partners and artists. introduced new recruitment practices. and revised our Strategic Equalities Action Plan. Public benefit The trustees have had regard to the Charity Commission's guidance on public benefit in planning and carrying out the charity's programme. We're a centre for wodd-class. inventive and compelling work that's open and accessible to all. Our gallery commissions and produces exhibitions of the very best in national and international art. The theatre spaces are a platform for experimental and thought-provoking works, and our cinemas offer independent and challenging films alongside a range of unique festivals and events. We also bring more films, to more people, in more pla￿$ through Film Hub Wales, and support young people's talent-pathways in the film industry through BFI Film Academy Plus. Al of this is supported by an innovative and indusive programme of learning and community engagement. and we bring people together in our large social space and café bar. Our programme champions the artists of today and invests in those of tomorrow. We work with practitioners at every stage in their careers. supporting and stimulating opportunities for exciting new talent as well as promoting the work of eslablished art15ts. We have 50+ studios on our campus that are home to 53 of Wales, most exciling artists and creative companies including ie ie productions, BAFTA Cymru, Beryl Productions, Music Theatre Wales, Taking Flight Theatre. Holty Davey. Marca Design and The Printhaus, to name a few la full list is available at www.chapter.org). We also support local artists and companies lo undertake research and development, test out ideas and rehearse without financial risk through giving a range of spaces free or at a subsidised rate. Curatorial, technical and marketing support is estimated across R&D and varies depending on need. Page 9 CHAPTER (CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Our social space is an important civic hub where we welcome everyone from our local communities. As well as offering a programme of diverse events for and wth them, we also provide a Community Larder. free school holiday meals and a range of un-ticketed. low-risk creative activities to support people to come together on their doorstep. In our audience-informed business model, we have committed to becoming a listening organisation and civic hub, giving our audiences a stake in the work and operation of the organisation. This is informed by an ongoing process of consultation that is embedded into our new operational model and is distinguished from being 'audience led, because our specialist curators and creators wll use their skills to listen to our audiences and to reflect their interests and priorities back to them. They are invited to come on a collaborative journey with us, to create and curate the work in our venue, and lo embrace challenge and risk in their choices. To enable this dialogue be￿een creators and audiences we offer regular opportunilies for engagement to build trust and ensure that every aspect of our organisation responds to the priorities and interests of the audience segments we've committed to serving. In the next three years this includes the following people wlhin a 3-mile radius of Chapter.. artists and creative practitioners, DIDeaf and disabled people, Black, Asian & Minority Ethnic people, people identifying as LGBTQIA+ people from lower socio-economic backgrounds and young people aged 16-30 yrs. Our audience-informed approach is strongly aligned wth current cultural policy from the perspeclive of statulory bodies and fijnders - ensuring that we're open to all and that we make a particular commilment to reaching and engaging priority audience groups. Café Bar Trading Subsidiary We value the café bar as part of the holistic Chapter offer, and we work to enhance and develop its role as an important civic space in Cardiff. However. we need it to make a financial contribution to support our artistic programme including our public engagement activity- The café bar continues to struggle like all other hospitality business, with a staff and skills shortage. This is the first year, since the pandemic that the Trading company has contributed to the Charity. Although this is welcomed, it has a long way to go to retum to the profitability we saw before the enforced pandemic closure. With the cost of living crisis. it is diffi¢JJlt to make the levels of income and profit from catering. Trading Average Income Comparisons 350 £30.327 3(￿( 250 £2d.09g23,82625,335 2(X)(M) £16.643 ISOCN) 5313 S￿0 2144 2974 3843 3990 Iidll AL'ei.IEQ Trai)sactions per i'ieek Averace Not Iiicoiiie Per i'/eek Pre Pandemic 19.20 m (Open 4.5 I'￿eks1 20.21 rt 21.2210i)eii from 26.41 ￿ 22.23 w 23.34 Page 10 CHAPTER (CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Trading Outturn Comparisons I3.500,￿0 É3,L¥)O,ClJO 45. £2,$00,(KIO £2,(KJO,WO 255. £1,500,OJO £i,(K)O,CA)O É500,WO £0 111 Pro Pandemit 19.20 20.211 open 4 21.221 Open from '￿Éks) 2641 22.23 23.24 Turnover Cost5 w Conrribuiion to Chariiy Challenges Our business model has been very reliant on trading activity both within the charity, such as ticket sales and room hire. and within hospitality to generate income. With this slow to return to profitability we must ￿ proactive in our approach lo a renewed business model. Chapter Group Earned Annual Income E3,WO,iX)O £2,556,476 £2,500.¢XJO £2,230,891 £1.997.997 £2.(MJO.(KIO £1,716.561 £1,500,iX)O £i,(X)O,(￿O £500,(JJO £374,098 £0 Earned Incon)e Irotn Tickets, Trading Sale5 & Donations 19.20 •20.21 w21.22 • 22.23 ll23.24 Page 11 CHAPTER (CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Financial review The consolidated Statement of Financtal Activities shows a net deficit in unrestricted funds after transfers of £54.944 This leaves free reserves of £16,726 after releasing the designated funds to support the deficit. In 23124 we secured unrestricted core grants representing 19% of income, restricted grants representing 18¥0 of income and earned income {ticket sales, rents, donations and hospitality) equating to 39 % of turnover. Including restricted project grants our overall earned income is 81 % of turnover and ACW core funding is just 19 % of tumover. Income 19120 £3,610,668 Income 20121 £3,408,090 Income 21122 £4,131,631 Income 22123 £3.2W.179 Income 23124 £3.588.469 Totsl income ACW Core Grant Percentage £657,391 18.21Yo £664,620 19.5Yo £664,620 16.09¥0 £681.337 21.29°/0 £681,491 Chapter Group Income 23.24 £3.5M The principal sources of Chaptevs fijnding are shown in Notes 3 and 5 to the Financial Statements. Chapter (Trading) Ltd The Irading subsidiary made a small loss of £6. Footfall and the number of transactions are slowly increasing, (we are operating at approximately 75 /D of pre-pandemic footfall) but costs are high for supplies and staff. It will take a while to recover from the pandernic and we must adapt the business to exped a lower financial contribution to the Charity and celebrate the café bar's importance as part of the holistic offer at Chapter. There is work to be done on improving the menu and Gross Profit. A hew Head Chef has been recruited. the menu has improved, and consistency and quality is beller. We have confidence that the café bar can start to make a financial contribution to the Charity albeit not at Ihe levels we were used to. Page 12 CHAPTER (CARDIFFI LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Policy on reserves The trustees have reviewed and discussed Chapterfs reserves position and have agreed a reseNes policy. This policy focuses on the building of unrestricted reseTves as a basis for aiming towards a positive free reserves figure. Going foward, the plan is to build unrestricted reserves over time and to work towards a free resetves position. The trustees suggest that the charity should strive for free reserves, equivalent lo 3 months overheads. so that. should we be in an emergency such as the COVED Pandemic again, then we have some funds to support its initial impact. 2017118 Unreslricled funds £1119k) 2018119 Unrestricted funds £{19k) 2019120 Unrestricted funds 63k 2020121 Unrestricted Funds £759k 2021122 Unrestricted Funds £1.833k 2022123 Unrestricted Funds £1.742k 2023124 Unrestricted Funds £1.687k Chaptees unrestricted resetves are mainly represented by fixed assets. Taking this into account, the 2024 free reserves position is £16.726. Unrestricted funds as of 31 March 2024.. Less unrestricted fixed assets.. Free reserves as of 31 March 2024.. £1.687,622 (£1,670,896} £16,726 These unrestricted fixed assets are those assets the organisation needs to cary out its activities, such as land and buildings and are therefore not liquid and not available to us wlh ease. Principal risks and uncertalntles Chapterfs risk register is regularly reviewed via its subcommittee and Board. At the last review the ft)Ilowing were the most pressing risks and thus flagged as 'red' in the risk register.. Non-Equalities Act compliant lift. The lift has been rebuilt-, one small adaptation is still outstanding - announcements in the Welsh language. Income risk. The ongoing impact of COVID clearly creates a significant risk to income going fO￿rd. Audiences are returning although fewer than pre*pandemic closure. We hope that confidence will grow, but COVID has not gone away and both staff and audiences are still being impacted. The growih of audiences in 23124 was reassuring but we believe it will take several years for us to be trading at the levels we saw prior to lockdown. Cash flow risk. This relates to the income risk above and is included due to the importance of cash flow to the organisab'on. Reduction in ACW Core Revenue fijnding. Whilst we were suc￿Ssful in the Investment Review in that we remain a portfolio client of ACW, we re￿iVed a 43 10 Cut in core funding. We are successful in earning our own income but to find £290K a year to bridge that gap whilst costs continue to increase exponentially is a real challenge. Govemment policylactions. This is to recognise the uncontrollable forces that can affect our operations and strategy. Non completion of the Chapter Capital Development. Sustainability of the breadth of the Chapter arts programme. The principal risks that the charity faces relate to the uncertain nature of grant funding and the increased uncertainty of nding in the current economic and political climate. Alongside the potential difficulty in the ability to earn our ¢)wn income as COVID restrictions are lifted. Diversification of income streams is constsntly under review and being developed to mitigate this. Page 13 CHAPTER (CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 FUTURE PLANS We ended 2023124 wth the Arts Council of Wales Investment Review process complete. Whilst we successfully remained Portfolio Organisalion, our funding was cut by £291,000 per year for 2024-2027. Our Arts Council funding will represent on average, c100/0 of our earned and funded income. Our Fundraising Strategy builds on our audience-infonned approach which is in line with policy and ambition and focused on impact for individuals and communities in line with our priority audiences. It seeks to diversify funders, build support from trusts and foundations which has significant gro￿ potential in the period. build on our Friends scheme, and on individual donations using an 'impact philanthropy, model where gifts are reciprocated but incentivised by the impact they make rather than through offering benefits. We'll also develop corporate offers. but acknowledge that this is opportunistic in Ihis period, given the decline of corporate income in the current economic environment. We seek to strengthen the business model of the Trading Subsidiary. The 2019 business model saw a heavy reliance on trading income made in the café bar to subsidise the wider creative programme. Post-pandemic and deep into the cost-of-living crisis. it hasn't been possible to recreate this model. Whilst this is challenging, it's also given us the impetus to reflect on how we use the Spa￿ and focus on the vital role it can play in enabling equitable access, community cohesion and creative connection. In taking an audience-informed approach to our business plan, we're seeking to balance our triple bottom line as a cultural charity - that is art. audience and money. This enables the purpose and impact of our organisation to be oplimised whilst ensuring financial sustainability and is particular important at a time when cultural organisations and their audiences are under considerable financial pressure. Our forthcoming work will respond to the six princlples enshrined in the Arts Council of Wales Investment Revlew". Creatlvlty hilst we work with practitioners at every stage of their Careers, we'll focus resources on supporting and stimulating opportunities for exciting early- to mid-career talent. We'll support artists to take risks and grow in confidence as they consider ways their ideas can develop and manifest. empowering them through critical exchange and knowledge sharing. They'll be supported by our experien￿d. cross-disciplinary team and through peer mentoring accessed via our extensive network of artistic communities of studio artists. and partnerships in Wales and nationally. Our programme will be outward-looking and resonate with what's happening across the world and around the corner. We'll create compelling. transformative experien￿5 conneckn'ng art with community. To do this we'll design clear pathways for audiences to move closer as creative collaborators and co-creators of the programme. We'll champion and promote the strength and diversity of work being produced and presented in and from Wales to ensure we better reffect the world we live in. We'll foreground artists who work across disaplines and whose voices are marginalised in the arts. We'll continue to build on our audience-infomied model so that we can reassure creative practitioners that we want to engage with them authentically. over time. Through thi5 work, we ran foreground the voices of marginalised people and their experiences. slimulating emotional and relational connections that will help to build the trust thavs needed to encourage ownership and connectivity wilh our programme. We'll focus our collaborations with the following diverse groups of artists.. Black, Asian and Minority Elhnic. LGBTQIA+ lower socio-economic. Dldeaf and disabled. They'll be front and centre of our programme. We'll ensure that we're ambitious, connected and imaginative in enabling these arbsts to tell their stories. We'll pay particular attention to 16-30-year-olds and wll launch a new young person's membership to support this commitment. Nurturing Talent We'll nurture networks wth creative and educational organisations to better support career development for artists at all stages. We'll be a listening organisation and consult regularly wth the artist-community to understand need. We'll be more transparent in our support and offer multiple poinls of access for artists to engage with us. Page 14 CHAPTER (CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 We'll seek lo develop our studio provision to support more creative practitioners. We'll also provide a range of supported shorter-term residencies with bespoke mentoring. This wll enable them to research. develop and experiment with ideas for new bodies of work and to test out new forms of expression for their creative practice. through moments of public engagement. We're committed to developing inclusive practices thal involve participation, and that encourage the co-creation of experiences with young people. We'll foreground equity, democraw and openness at the centre of our creative engagement work. We'll nurture and engage the artists and creative practitioners of tomorrow. We'll do this by providing creative opportunities and talent palhways for them at all stages in their lives, but we'll focus in particular on those aged between 16 and 30 years. We'll support children and young people in different ways to explore who and what impacts their lives. We'll encourage them to articulate how these issues affect their physicallmenlal health and wellbeing. and we'll work creatively wth them to empower them to speak out about the things they care about and ensure their voices are heard. We'll lead the BFI Film Academy Plus in Wales until 2026. Aimed at supporting industry career development for 16-25-year-olds, the programme provides multiple points of access for young people to explore creative pathways and autonomy through the medium offilm. We'll be guided by the principles of mutual trust and respect-, transparency and open communication.. professionalism-, ethical and equitable practice, and prioritising care. Widening Engagement We believe that creative engagement wth the arts can inspire and energise people of all ages and backgrounds to become more confident. more self-aware and more compassionate global citizens_ We'll continue to develop a creative and highly engaging community programme that reswnds to need, explores innovative practice in relation to collaboration. and demonstrates impact. Our work will encourage local people to take the lead in co-creation. We'll tap into the potential of the arts to enable us to better understand the world in which we live together. Our work will prioritise the shared potential to look at the world through different lenses, to recognise diverse experiences and think collectively about how we might shape a better future. We'll work wth our communities to creatively address the themes that con￿rn them, acknowledging and foregrounding their stories. We'll recruit a new role of Audien￿ Development Manager. Central to the role will be the creation and delivery of ambitious strategies that refleGt a deep understanding of our existing and aspirational audiences and that propose effective, imaginative approaches to ensure maximum reach and engagement. Working dosely with our Head of Marketing & Communications and Head of Community Engagement, they'll contribute effectively to our understanding of who is or is not engaging wilh us. and why. These insighls will provide evidence to help us better understand the creative. social and economic impad we have in our community and beyond and support us to shape our organisational objectives to secure Ihe long-temi sustainability of the organisation. Welsh Language We'll work hard to safeguard the Welsh language as an integral part of contemporary Culture. We're comrnitted to offering creative practitioners the opportunity to explore their own creativity Ihrough the language of their choice. We recognise the need to strengthen the Welsh language arts ecology particularly in relation to experimentsl practice. We'll actively pursue alliances with progressive. ambitious advocates for Welsh language arts and ensure that works in the Welsh language are positioned and ￿lebrated in an international Context. We'll work in partnership with organisations and freelance workers producing work in the Welsh language to provide opportunities for presentation, across all our Spa￿S. We'll encourage audiences to take risks and will Introdu￿ them to high-quality, innovative practices that engage with contemporary issues. We're a bilingual organisation and there will be a parity of marketing towards Welsh- and English-communicating audiences. We'll take an active role in encouraging and supporbng Welsh language marketing, ensuring that companies. artists and groups take the use of the language into their everyday lives. We'll create generou5 and meaningful feedback loops for communities to be heard - because it's vital to understand what a contemporary Welsh language audience want and need. Page 15 CHAPTER {CARDIFFI LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Climate Justice Our programme wll highlight the impact and systemic causes of Ihe climate emergency and the important intersection be￿een climate change and other social, political and economic injustices. This will centre the creativity and lived experiences of artists and communities who are vulnerable and will foreground proposals for long-temi change and solutions. We'll seek to work wth our local communities in a process of placevmaking to improve our green and public spaces. We'll expand and invest further in our work in partnership with Canton Community Gardeners to develop the garden and provide more opportunities for local people to connect with it in meaningful ways. We'll take urgent steps towards improving our sustainability, demonstrating a positive impact on our workforce and the people and places around us. We'll strengthen our relationship with expert leaders such as Julie's Bicycle, to review our footprint, and commit to the necessary changes. We'll consult with communities with lived experience of climate change impact and injustice. working authentically to ensure that our work with them doesn't perpetuale extractive practi￿5. We'll continue lo provide fair pay and good working conditions for artists and arts workers. and we recognise that this can contribute to improved wellbeing and greater societal equity- Transfom)atlon We acknowledge that equitable access to working in the arts remains an urgent issue across Ihe industy. with those from marginalised communities vastly under-represented amongst artists and employees within our own organisation. We're committed to the specific wellbeing goal within the Well Being of Future Generations Act. A society that enables people to fulfil their potential no matter what their background or circumstances" We acknowledge that the current make-up of our Board, staff and volunteers does not mirror our local communib'es. We'll improve representation from diverse people by connecting with openness and transparency, positioning their lived experiences at the heart of Ihe work we do. We understand that making and experiencing arts and culture can transform the quality of life for individuals and communities. Following the development of our audience-infomied business plan, we'll commit to a process of active listening, informed by an ongoing process of community. Staff and stakeholder consultation. We'll create a positive and healthy environment for our workforce, placing their wellbeing at the ￿ntre of our operational model. We'll value and respect the experien￿5, insights and participation of our staff, volunteers, Board and freelan￿ community, because we believe that everyone has a valuable contrlbution to make and that our collective voice holds power to steer positive organisational transformation and community cohesion. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document Chapter (Cardiff) Ltd is legally constituted as both a company limited by guarantee {Company no. 10055701 and registered charity (Charity reg. no. 500813). Trustees are therefo￿ Directors of the Company and Trustees of the Charity. The Board is the non-executive leadership body for the Charity thal ensures that strategic and operational decisions are in line with the mission. vision and values of the organisalion and are operated wilhin the laws and regulations that govern. Artistic programme, operational decisions and staff management are delegated to the Executive Team. The Executive Team, alongside those delegated by the Executive, are responsible for the business management and day-to4ay operations of the organisation. Recruitmen( induction and tralnlng of trustees Trustees are recruited by an open application prO￿sS and interviewed and selected following a review of skills needed. Following appointment, trustees are invited to an introductory meeting to familiarise them with the organisation and with their responsibilities as trustees. They are also provided with relevant Charity Commission guidance. Training is considered by the Chair, Chief Executive and through self-review on a case-by-case basis. The term of office for trustees is three years. Trustees can stand for re-election lo the Board for an additional terms. Attendan￿ is quarterly with the invitation to sit on a variety of sub-committees induding Finance & Risk. Artistic & Leaming and Governance. Chapter is committed to increasing the diversity of its Board and, in the period, undertook a review of barriers to recruitment, where we advertise opportunities and other stratsgies to ensure we're able to diversify our workforce. Page 16 CHAPTER (CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The Chair of Trustees (appointed in 20211 has unlocked the opportunity for us to explore what excellent governance looks like. and how to manifest strong and open lines of communication between Board. staff, stakeholders and audien￿5. Staff Leadershlp The trustees have determined that the key management personnel of the charity are the members of the Strategic Leadership Team. This team comprises.. C¢>Director and Artistic Director Co-Director and Director of Finance and Resources Artistic programme, operational decisions and staff management are delegated to the Executive team. The Executive Team, alongside those delegated by the Executive. are responsible for the business management and day-to4ay operations of the organisalion. Remuneration is set in accordance wth Chapterfs established pay structure which is kept under review by the Finan￿ & Risk Sub-committee. Co-Directors' remuneration is detemined by the Board of Trustees. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 01005570 (England and Wales) Registered Charity number 500813 Registered office Chapter Arts Centre Market Road Canton CARDIFF CF5 1QE Trustees Sara Lee-Ling Chan Catrin Daniel Ewan Hilton Alun Jones Kami Lamakan- Chair Stephen Meade Lauren Omie Villida Ramasut Naomi Stocks Laurence Kahn Benedict Borthwick (resigned 2510912024) (appointed 2816120231 (resigned 25109120241 (appointed 2816120231 {resigned 15111120231 {resigned 281612023) Company secretary Sharon Slone Key management personnel Hannah Firth - Co-Dire¢lor l Artistic Director Sharon Stone- Co-Director l Director of Finance and Resources Auditors MHA Chartered Accountants and Statutory Auditor Elfed House, Oak Tree Court Cardiff Gate Business Park CARDIFF CF23 8RS Page 17 CHAPTER {CARDIFF) LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 REFERENCE AND ADMINISTRATIVE DETAILS Principal Bankers Lloyds Bank 514 Cowbrtdge Road East CARDIFF CF5 1BL STATEMENT OF TRUSTEES. RESPONSIBILITIES The trustees {who are also the directors of Chapter (Cardiffj Limited for the purposes of company lawl are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice). 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 truslees 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., state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial stalements.. prepare the financial statements on the going con￿rn basis unless it is inappropriale to presume that the charitable company wll 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 wtth 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 infomiation and to establish that the auditors are aware of that information. AUDITORS The auditors. MHA, will be proposed for re-appoinlment at the forthcoming Annual General Meeting. Approved by order of the Board of Trustees on 27 November 2024 and signed on its behalf by= Page 18 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CHAPTER (CARDIFF) LIMITED Opinion We have audited the financial statements of Chapter {Cardiffj Limited (the 'parent charitable company'l and its subsidiary (the group) for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities. the Consolidated Balance Sheet, the Charity Balan￿ SheeL the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United lfjngdom Accounting Standards. including Financial Reporting Standard 102 The Financial Reporbng Standard applicable in the UK and Republio of Ireland (United Kingdom Generally Accepted Accounting Practice}. In our opinion the financial statements.. give a true and fair view of the stste of the group's and parent charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, induding its income and expenditure, for the year then ended: have been properly prepared in accordance United Kingdom Generally Accepted Arxounting Practice; and have been prepared in accordance with the requirements of the Companies Act 201A. Basis for opinion We conducted our audit in accordance with International Standards on Auditing {UKI {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 requiremenls_ 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 slatements, 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'5 ability to continue as a going concern for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees respect to.going concem 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 infomiation and, except to the extent othe￿ise explicitly ststed in our report. we do not express any fom 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 inconsislent 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 rnaterial misstatement in the finanaal statements themselves. If, based on the work we have perfomied. we conclude that there is a materFal misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Oplnlons 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 (incorporating the Report of the Directors) 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 19 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CHAPTER (CARDIFFI LIMITED Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and the parent 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 followng matters where the Companies Act 2006 requires us lo 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 parent charitable company financial statements are not in agreement with the arxounling rerxsrds 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 entitted to take advantage of the small companies exemption from the requirement to prepare Strategic Report or in preparing the Report of the Trusteesl Responsibilities of trustees As explained more fvlly in Ihe Statement of Trustees, Responsibilities, the trustees {who are also the directors of the parent charitsble company for Ihe 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 ft)r such intemal control as the trustees detemiine is necessary to enable the preparation of financial ststements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group's and the parent charitable company's ability to continue as a going COn￿rn, disclosing, as applicable, matters related to going wncern 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 altemative but to do so. 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 assuran￿, 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 ststements. Irregularities. including fraud, are InStan￿S of non-compliance with laws and regulations. We design Pro￿dureS in line with our responsibilities. outlined above. to detect material misstatements in respect of irregularities. including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, induding fraud is detailed belovr. Enquiries of management. those charged wth governance around actual and potential litigation and claims., Perfomiing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropnateness and evaluating the business ralionale of significant transactions outside the normal course of business.. Reviewng minutes of meetings of those charged with governance., Reviewing financial statement disclosures and testing to supporting documentstion to assess compliance with applicable laws and regulations.to underlying supporting docAJmentation. Because of the inherent limitations of an audit, there is a risk that we will not delect all irregularities. including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that ompliance with a law or regulation is removed from Ihe events and transactions reflected in the financial statements. as we will be less likely to become aware of InStan￿S of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of Ihe financial statements is located on the Financial Reporting Counal's website at www.frc.org.ukJauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Page 20 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CHAPTER (CARDIFFI LIMITED Use of our report This report is made solely to the charitable company's members. as a body, in accordan￿ with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the charitable company's members those matters we are required to slate 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. Julia Mortimer (Senior Statutory Auditor) for and on behalf of MHA Chartered Accountants and Statutory Auditor CARDIFF CF23 8RS 10 December 2024 MHA is the trading name of Maclntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC3123131 Page 21 CHAPTER (CARDIFF) LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 2024 Total funds 2023 Totsl funds Unrestricted funds Restricted funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 742,812 742.812 794,985 Charitable activities Charitable activities Other trading activities Investment income Other income 761,283 1.402.053 6,233 31,906 644,182 1,405,465 1,402.053 6,233 31.906 1,088,881 1,304,683 Total 2.944.287 644 182 3 588 469 3,200,179 EXPENDITURE ON Raising funds 1,317,207 1,317,207 1,271,729 Charitable activities Charitable activities 1,812,245 596,354 2,408,599 2.299,450 NET INCOMEI{EXPENDITURE) BEFORE TAX 1185.165) 47.828 (137,337) {371,￿0} Tax on {lossllprofit NET INCOMEIIEXPENDITURE) AFTER TAX {179.517} 47,828 1131.6891 1371,0001 Transfers between funds 23 124.573 124.5731 Net movement In funds 154.944) {76.745) {131.689) {371,000} RECONCILIATION OF FUNDS Total funds brought fO￿ard 1,742.566 2.812.828 4,555.394 4.926,394 TOTAL FUNDS CARRIED FORWARD 1.687,622 2,736,083 4,423,705 4,555,394 The notes form part of these finanaal statements Page 22 CHAPTER {CARDIFFI LIMITED CONSOLIDATED BALANCE SHEET 31 MARCH 2024 2024 Total fvnds 2023 Total funds Unrestricted funds Restricted funds Notes FIXED ASSETS Tangible assets 15 1,670.896 2,325,477 3.996.373 4,056,514 1,670,896 2,325,477 3,996,373 4,056.514 CURRENT ASSETS Stock Debtors Cash at bank 27,504 121,610 874,647 27,504 139,344 1,268019 27,262 153.322 1,370.130 17 17,734 393,372 1.023.761 411.106 1,434,867 1,550,714 CREDITORS Amounts falling due wthin one year 18 1467.9201 (500) (468,4201 {454,9561 NET CURRENT ASSETS 555,841 410.606 986.447 1,095,758 TOTAL ASSETS LESS CURRENT LIABILITIES 2.226,737 2,736,083 4,962,820 5.152.272 CREDITORS Amounts falling due after more than one year 19 1539,1151 (539,115) (596.878) NET ASSETS 1.687.622 2,736.083 4,423.705 4.555.394 FUNDS Unrestricted funds Restricted funds 23 1,687,622 2 736 083 1.742,586 2.812.828 TOTAL FUNDS 4.423.705 4,555.394 The financial statements were approved by the Board of Trustees and authorised for issue on 27 November 2024 and were signed on its behalf by.. The notes form part of these financial statements Page 23 CHAPTER (CARDIFF) LIMITED BALANCE SHEET 31 MARCH 2024 2024 Total funds 2023 Total funds Unrestricted funds Restricted funds Notes FIXED ASSETS Tangible assets Investments 15 16 1,670.896 2.325,477 3,996.373 4,056,514 1,670,898 2,325,477 3,996,375 4.056.516 CURRENT ASSETS Debtors Cash at bank 17 496.320 355.222 17,734 393,372 514,054 748,594 262,182 1.008.126 851,542 411,106 1,262.648 1,270.308 CREDITORS Amounts falling due within one year 18 {343.165) {500} 1343,665) 1262,0201 NET CURRENT ASSETS 508.377 410806 918 983 1,008,288 TOTAL ASSETS LESS CURRENT LIABILITIES 2,179.275 2,736.083 4.915.358 5.064,804 CREDITORS Amounts falling due after more than one year 19 {492,448} {492,448) {510,211) NET ASSETS 1.686.827 2.736.083 4.422.910 4.554,593 FUNDS Unrestricted funds Restricted funds 23 1,686,827 2,736.083 1,741,765 2.812,828 TOTAL FUNDS 4,422.910 4.554.593 The financial statements were approved by the Board of Trustees and authorised for issue on 27 November 2024 and were signed on its behalf by.. slee The notes fomi part of these financial statements Page 24 CHAPTER (CARDIFF) LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating activities Cash generated from operations 59.651 8,266 Net cash used in operating activities 59.651 8.266 Cash flows from investing activities Purchase oftsngible fixed assets Interest received (103.4931 6,233 (95,739) Net cash used in investing activities 97,260 95.7391 Cash flovts from financing activities Capitsl repayments in the year 60,206 Net cash 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 {102.111) (147.6791 1,370,130 1.517.809 Cash and cash equivalents atthe end of the reporting period 1,268,019 1,370.130 The notes foryn part of these financial statements Page 25 CHAPTER {CARDIFF) LIMITED NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 RECONCILIA TION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net expenditure for the reporting period (as per the Statement of Flnanclal Activitles} Adjustments for: Interest received Depreciation charge Increase in stocks Decrease in debtors Increase in creditors {131.689) 1371,000) {6.233) 163,624 (242} 13,978 20.213 151,791 13,352) 131,365 99,462 Net cash used in operatlons 59,651 8,266 ANALYSIS OF CHANGES IN NET FUNDS At 114123 Cash flow At 3113124 Net cash Cash at bank 1,370.130 102.111 1.268019 1.370.130 102 111 1,268.019 Debt Debts falling due wthin 1 year Debts falling due after 1 year (73.0781 596,8781 6,749 57,763 166,3291 539.115 669.956 64.512 605.444 Total 700,174 662 575 Page 26 CHAPTER (CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 STATUTORY INFORMATION Chapter Icardiffj Limited is a company limited by guarantee incorporated in Wales wthin the United Kingdom. The registered office is Chapter Arts Centre, Market Road. Canton. Cardiff. CF5 1 QE The financial statements are presented in Sterfing (£1. the company's functional currency. and rounded to the nearest pound. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. ACCOUNTING POLICIES Basis of preparing the financlal statements The finanaal statements of the charitable company. which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 1021 'Accounling and Reporting by Charities= Slalement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191,, Financial Reporting standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Art 2CxJ6. The financial statements have been prepared under the historical cost convention. No separate cash flow statement has been presented for the charity itself as the charity has taken advantage of the exemptions in paragraph 1.12 of FRS 102. Going concern The trustees have reviewed the forecasts based on the latest income and expenditure to ensure cash liquidity is maintained to an appropriate level for the 12 month period, from the date of signing these slatements. In the circumstances they have concluded that no additional disclosure is required to the financial statements at this time. The trustees are satisfied that it is appropriate for the financial statements to be prepared on a going concern basis. Group financial statements These consolidated financial statements include the financial statements of Chapter (Cardiff) Limited (the charitable company) and Chapter Trading Limited its wholly owned trading subsidiary, made up to 31 March 2024. These financial ststements consolidate the results of the charity and its wholly owned subsidiary on a line-by-line basis. Income All income resources are classified under activity headings that aggregate all income related to that category. Donations and legacies relate to income from general donations, unrestricted grants. membership and sponsorship income Incoming resources from charitable activities are those derived from the art forms as well as project and grant fijnding Other trading activities relate to facilities. propety and gallery shop income Other income relates to sundry items and the management charge to its trading subsidiaries Income is recognised when the charity is legally entitled to it after any perfomiance conditions have been met, the amounts can be measured reliably, and rt is probable that income wll be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation. unless performance conditions required deferral of Ihe amount. Income from government and other grants is recognised when the charity has entillement to the funds. any performance conditions attached to the grants have been met, it is probable that the income will be re￿ived. and the amount can be measured reliably and is not deferred. Page 27 continued... CHAPTER {CARDIFF> LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES - contlnued Income Grants received to fund capitsl expenditure are recognised in the Statement of Financial Activities in the year of receipt and held in restricted reserves. The balance unrestricted resetves is released in future years at the same rate so as to match the depreciation of the relaled asset. Once the restriction has been met the funds are transferred to unrestricted reserves. Membership and subscriptions income is credited to the Statement of Financial Activities in the year in which they are due. Income received in advance is deferred to the appropriate financial year. Income earned from the arts and arts forms is credited to the Statement of Financial Activities in the year in why they are due. Income received in advance is deferred to the appropriate year. Facililies and propety income consists of the invoiced value (excluding VATI of goods soldlsupplied to third parties and members. This is recognised in the period in which the Servi￿ was provided. The management fees in other income are invoiced quarterfy and recognised in the period to which the service was provided. Turnover from café and bar sales is recognised on the date of sale. Income for seNices such as hospitality is recognised on the date the service is provided wth any amounts deferred when re￿iVed in advance of this. Income is recognised net ol VAT. Turnover is the amount derived from ordinary activities, and stated after trade discounts. other sales laxes and net of VAT. Expenditure Liabilib'es 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 wth the use of resources. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Grants payable are payments made to third parbes in ftjrtherance of the charitable objects of the company. The grants are accounted for where either the Trustees have agreed to pay the grant without condition and the recipient has a reasonable expectation that they wll receive the grant, or any condition attached lo the grant is outside the control of the company. Taxation The Gharity is exempt from corporation tsx on its charitable activities. Tangible fixed assets Tangible fixed assets are initial measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses or in cases where fixed assets have been donated to the charity, at valuats'on at lime of acquisition Depreciation is provided at the followng annual rates in order to write off each asset over its estimated usefvl life. Freehold land Freehold buildings Leasehold buildings Fixtures & fith'ngs Improvements to Leasehold buildings OYO Straight-line 2Yo Straight-line Over 125 years 10 /. 20 % straight-line 10Qh straight-line Investments Investments relate to 100Yo of the share capital of the tharity's wholly owned trading subsidiary and is recognised at cost less provision for impairment. Page 28 continued... CHAPTER (CARDIFF} LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES - continued Stocks Stocks are valued at the lower of cost and net realisable value. Net realisable value is based on the estimated selling price after taking into account all further costs and excess stocks that are slow mowng. Stocks relate to café and bar items. Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the truslees. Restricted ftjnds 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 The charity operates a defined contribution pension scheme. Contribulions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. Cash and cash equivalents Cash and cash equivalent include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. Operating leases Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease. DONATIONS AND LEGACIES 2024 2023 Donations Gift aid Grants Mernbership Sponsorship 52.063 2,049 681,491 7.209 45,391 2,882 741.337 375 5.000 742.812 794,985 Included in donations is £30,000 from the Moondance Foundation (2023.. £30.0001. Grants received. included in the above, are as follows.. 2024 2023 Arts Council ofwales BFI Organisation awards 681,491 681,337 60,000 681,491 741337 INVESTMENT INCOME 2024 2023 Interest eamed 6,233 Page 29 continued... CHAPTER (CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 INCOME FROM CHARITABLE ACTIVITIES 2024 2023 Grants Cinema income Theatre income Facilities and property income BFI Film education 644,182 292.969 45,003 422,961 434,316 221,051 44,145 375.635 11,292 2.442 350 1.405.465 1,088,881 Grants received, included in the above. are as follows.. 2024 2023 Artes Mundi Prize Limited Arts and Business Arts Fund - Joy Labinjo Arts Council of Wales- Hearing Loops Project Arts Council of Wales- Connect & Flourish Arts Council of Wales- Experimentica Arts Council of Wales - Gwyl Cymru Arts Council of Wales - Perspectives Arts Council of Wales - Sharing Together Arts Council of Wales- WAI Canada British Council British Film Industry - Audiences Brilish Film Industry - Diversity British Film Industry - Film Academy Plus British Film Industry- Film Hub British Film Industry- Notb'ngham British Film Industry - P&P British Film Industry - VEF British Film Industy - Watershed Canada Council Cardiff Council Colwinston Trust Ffilm Cymru Ffilm Cymru - Young Programmers Freelands Foundation National Grid - Community Matters Fund Simon Gibson Charitable Trust WCVA- Energy Welsh Government- Made in Wales WPD Holiday Other grants 5,752 1.046 4.000 15,000 48,099 46,350 17.818 9.900 30,000 15.000 4,050 27,000 4,000 37.500 45,0 57,100 286,900 210,000 4,500 500 54,890 7.700 1,089 7.000 10.000 10.000 15,000 10,843 10.000 10.000 4,500 1.000 33.537 28,819 2,500 2.105 644.182 434,316 INCOME FROM OTHER TRADING ACTIVITIES 2024 2023 Trading subsidiary 1,402.053 1.304,683 Page 30 continued... CHAPTER (CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 RESULTS OF PARENT CHARITABLE COMPANY The total income of the parent charitable company was £2.276,916 and the net expenditure Ideficitl for the year was £131,683. OTHER TRADING ACTIVITIES 2024 2023 Trading subsidiary 1317.207 1,271.729 1,317.207 1.271.729 CHARITABLE ACTIVITIES COSTS Support costs (see note 7) Direct Costs Totals Charitable activities 2,180.132 228,467 2,408,599 Contained in direct costs above is grants payable by the charity totalling £77,015 {2023- 127.9591. These can be split into Ihe following categories- Total 2024 Total 2023 Pitch Plot Canada Goes Cymru Witchcraft Film Exhibition Fund Cost of Living lund Abergavenny Film Society Aberswth Arts Centre Cardiff Animation Festival GWALLGOFIAID I CELLB Hay Castle Trust Iris Prize LGBTQ+ Film Festival Kotatsu Japanese Animation Festival Magic Lantern Cinema Phantasmagoria Horror Film Festival The Dragon Theatre The National Library of Wales Theatr Gwaun Wicked Wales Film WOW Film Festival Wyeside Arts Centre 3.605 2,245 3,909 92.700 25.500 2,515 s,￿0 8,QOO 7,000 3,000 2,500 2,000 6,000 500 6,000 9,000 6,500 5,000 7,000 7.￿0 77.015 127,959 During the year the charity provided 15 institutions (2023= 25 institutions) with grants. 10. SUPPORT COSTS Other osts Governance costs Management Totals Charitable activities 110,386 79.022 39,059 228,467 Page 31 continued... CHAPTER {CARDIFF} LIMITED NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 11. NET INCOMEIIEXPENDITURE) Net incomellexpenditure) is stated after chargingllcreditingl= 2024 2023 Auditors, remuneration Depreciation Operating leases 14,970 163,624 5.550 11.770 151.791 3.159 12. TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneralion or other benefits for the year ended 31 March 2024 or for the year ended 31 March 2023. Trustees, expenses There were no Iruslees, expenses paid for the year ended 31 March 2024 or for the year ended 31 March 2023. 13. STAFF COSTS 2024 2023 Wages and salaries Social security costs Other pension costs 1.680,659 116.098 31.034 1,494.4SO 104,899 57.996 1,827,791 1.657.355 The average monthly number of employees during the year was as follows-. 2024 46 47 2023 42 48 Chapter {Cardiffj employees Chapter Trading employees The number of employees whose employee benefits (excluding employer pension Costs) exceeded £60,000 was: 2024 2023 £60,001- £70,000 The totsl key management personnel remuneration benefits paid during the year was £147,46412023'. £188,346). 14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted funds Restricted funds Total fvnds INCOME AND ENDOWMENTS FROM Donations and legacies 789,985 5,000 794,985 Charltsble activitles Charitable activities Other trading acb'vity other income 643,273 1,304,683 11,630 445,608 1,088.881 1.304.683 11.630 Totsl 2.749.571 450.608 3,200,179 Page 32 continued... CHAPTER {CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES . continued Unrestricted funds Restricted funds Total funds EXPENDITURE ON Raising funds 1,266,729 5,000 1.271,729 Charitsble activltles Charitable activities 1.657.316 642,134 2,299,450 NET INCOMEI{EXPENDITURE) Transfers between funds {179,474) 88.499 (191.5261 88.4991 1371,000) Net movement In funds (117,897) {280,025) {397.9221 RECONCILIATION OF FUNDS Total funds brought fornard 1,833,541 3,092,853 4.926.394 TOTAL FUNDS CARRIED FORWARD 1,742.566 2.812.828 4.555.394 15. TANGIBLE FIXED ASSETS- GROUP AND CHARITY Improvements Freehold land and buildings Fixtures and fittings leasehold buildings Long leasehold Totals COST At 1 April 2023 Additions 562,000 4,366,846 32,295 879,000 1.214,177 71.198 7,022,023 103.493 At 31 March 2024 562.000 4 399.141 879,IXIO 1,285.375 7,125.516 DEPRECIATION At 1 April 2023 Charge for year 309.588 11.120 877.586 99,419 665.078 1.828 1.113,267 51.257 2,965,509 163.624 At 31 March 2024 320,708 977,005 686,906 1,164,524 3.129.133 NET BOOK VALUE At 31 March 2024 241.292 3.422.136 212.094 120.851 3,996,373 At 31 March 2023 252,412 3.489.260 213.922 100.910 4,056,514 The Arts Council of Wales holds a legal charge over the leasehold propety as a Gondition of their grant funding, the carying value of the assets at as 31 March 2024 lotslled £212,094 (2023.. £213,922). The bank loan is secured on the freehold land and buildings, the carrying value of the assets as at 13 March 2024 totalled £241.29212023'. £252,412). The bank overdraft is secured against a second legal Charge over the freehold land and buildings. The leasehold building above is being depreciated over the term of the lease of 125 years. The carrying value of the building as at 31 March 2024 totalled £212.094 {2023'. £213.922). The trading subsidiary does not hold any assets. Page 33 continued... CHAPTER (CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2024 16. TRADING SUBSIDIARY The company owns 1000/0 of the issues ordinary share capital of Chapter Trading Limited, a company incorporated on the 1 March 2007 in England and Wales, company number 06133709. The registered office of the company is the same as the charity. The principal activity of the company is the operating of the caffi bar at Chapter. The results of the company have been consolidated into the group accounts. The results of the company can be found below.. Total 2024 Total 2023 Turnover Cost of sales and admin cosls 1,372,401 1,407,707) 1,283.986 1.276.316 Operating profit Other income 135,3081 7,670 25,712 (Lossllprofit for the year 6) 33.382 Assets and liabilities.. Total assets Total liabilities 553,391 552,5911 394,104 393,298 Net assets 800 806 Statement of changes in equity: Share capital Profit and loss reserve Total 2024 Balance at 01 April 2023 (Lossl and total comprehensive income 804 61 806 Balance al 31 March 2024 798 800 17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2024 Group 2023 Charity 2024 Charity 2023 Trade debtors Amount due from group undertakings Other debtors VAT recoverable Prepayments and accrued income 81,447 73,242 81.447 381,012 73,267 113.695 5.648 75,220 139.344 153.322 514.054 262,182 Page 34 continued... CHAPTER (CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2024 Group 2023 Charity 2024 Charity 2023 Bank loan and overdraft Trade creditors Taxation and soaal security VAT Other creditors Accruals and deferred income 66,329 161,158 30,411 77.939 41.671 90.912 73.078 198.419 82.668 26,329 109.789 22.661 78,099 36,532 70.258 33,078 132.510 28,610 13.732 87.059 19,827 47,995 468.420 454.956 343 668 262,020 Included within accruals and deferred income above is the following deferred income.. 2024 2023 Deferred income brought forward Released to SOFA Additional income deferred in the year 7.654 17.654) 26.524 3,046 13.0461 7.654 26.524 7,654 The deferred income relates to invol￿$ raised in advance of service delivery and performances. 19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2024 2023 Loans (see note 20) 539,115 596.878 The bank loan tem is 15 years with an interest rate of 9.5%. The CBILS loan has a term of 5 years wth interest charged at 3.40 /0. The loan with CVCA has a term of 8 years and an interest rate of 3%. The bank loan is secured on the freehold land and buildings. 20. LOANS An analysis of the maturity of loans is given bel¢)W'. 2024 2023 Amounts falling due within one year on demand.. Loans 66.329 73.078 Amounts falling be￿een one and years.. Loans 514,611 587,387 Amounts falling due be￿en Iwo and five years.. Loans paid by instalments 24,504 9.491 Page 35 conts'nued... CHAPTER (CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 21. LEASING AGREEMENTS- GROUP Minimum lease payments under non-cancellable operating leases fall due as follows.. 2024 2023 Within one year Be￿een one and five years 7,701 15,924 3.160 4.773 23.625 7,933 Operating lease payments recognised as an expense during the year amount to £5,55012023- £3,159) LEASING AGREEMENTS - CHARITY Minimum lease payments under non-cancellable operating leases fall due as follows.. 2024 2023 Within one year Between one and five years 6,261 3,160 4.773 20,265 7,933 Operating lease payments recognised as an expense during the year amount to £4,83012023'. £3,159}. 22. EMPLOYEE BENEFIT OBLIGATIONS The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in independently administered funds. The pension cost charge represents the contributions paid by the group to the fvnds and amounted to £31.03412023'. £57.996). At the year end there were outstanding contributions of £6,42912023. £5.5851. Page 36 continued... CHAPTER {CARDIFF} LIMITED NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 23. MOVEMENT IN FUNDS Net movement in funds Transfers between funds At 3113124 At 114123 Unrestrlcted funds General fund Designated funds 1,880,566 82,000 {179,517) 206.573 82.0001 1,687,622 1,742,566 (179,517) 124,573 1,687,622 Restricted funds Access to Work Artes Mundi Prize Limited Arts Council ofWales- Hearing Loop Projects Arts Council of Wales - Connect & Flourish Arts Council of Wales - Experimentica Arts Council of Wales- Perspectives Arts Council ofWales- Quebec Arts Council ofwales - Sharing Together Arts Council of Wales - WAI Canada Ashley Foundation British Council British Film Industry- Audien￿$ British Film Industry - Diversity British Film Industry - Film Academy Plus British Film Industry - Film Hub Wales British Fim Industry- P&P British Film Industry- VEF British Film Industry- Watershed Cardiff University Cardiff Council - Capital Cardiff Council- Community Larder Chapter Building - Capital Colwinston Trust Contemporary Art Darkley Trust Dunhill Medical Foundation DWR Ewart Parkinson Award Ffilm Cymru Ffilm Cymru - Project Ffilm Cymru- Reopening Foyle Foundation Freelands Foundation Garfield Weston Foundation Henry Moore Foundation Henry Moore Foundation - Garth Evans National grid Community Matters Fund Oakdale Rayne Foundation Simon Gibson Charilable Trust Theatre Trust WCVA - Energy WCVA- Third Sector Resilience Fund Welsh Government- Made in Wales 855 1,694 {855) 1,694 14,186 9,010 31,212 2,500 19241 {771) 190 114,1861 116,0001 40,781 33,791 31,212 32.500 {9241 (7711 30,000 (190) 2,700 2,700 4.000 4,000 16.565 118,7071 22,009 82.630 500 (18,700) 6.472 {16,5651 25.148 6.441 17,009 113,055 500 {5,000) {16,000) 46,425 25.190 (6,4901 16,4721 9,500 9.500 2,000 5.000 {130.901) 10,000 {2.LX)01 5.000 2.325.477 10,000 3.000 2,456,378 3,000 1,765 13.431 (1.765} 13.431 250 (2501 5,150 15,000 5.150 {15,0001 10,000 10,000 9.800 30,000 (9,800) 30.000 9.702 21.779 3.000 2,000 9.702 (2,750) 37.386 3,000 2,000 (12,857) 10.000 1,000 110.0001 {1,1)JOI 20.059 20,059 {12,857) 12,857 5,000 5,000 1,000 14,995 1,000 (13,841) 6,504 28,836 3,000 2.812.828 47.828 124.573 2,736.083 TOTAL FUNDS 4.555,394 {131.6891 4,423,705 Page 37 continued... CHAPTER (CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2024 23. MOVEMENT IN FUNDS - continued Net movement in funds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General fund 2,944,287 (3,123.8041 1179,517) Restricted funds Access to Work Artes Mundi Prize Limited Arts Council of Wales - Hearing Loop Projects Arts Council of Wales - Connect & Flourish Arts Council of Wales- Experimentica Arts Council of Wales- Perspectives Arts Council ofWales- Quebec Arts Council ofwales - Sharing Together Arts Council of Wales - WAI Canada British Council British Film Industry- AUdien￿S British Film Industry - Diversity Brttish Film Industry - Film Academy Plus British Film Industy- Film Hub Wales British Fim Industry - P&P British Film Industry - VEF British Film Industry - Watershed Cardiff Council - Capital Cardiff Counal- Community Larder Chapter Building - Capital Colwinston Trust DWR Ffilm Cymru- Project Film Hub- Canada Council Freelands Foundation Garfield Weston Foundation National grid Community Matters Fund Oakdale Simon Gibson Charitable Trust WCVA- Energy WCVA- Third Sector Resilience Fund Welsh Govemment- Made in Wales 855 5.752 855 1,694 {4,058} 15.0 48,099 46,350 15,000 (8141 (39,0891 115,1381 112.5001 {924) {4.821) {26.810} 14,186 9,010 31,212 2,500 1924) 1771) 190 4,000 16,565 (18,7071 22,009 82,630 500 118,71]0) 6,472 2,000 5,000 {130.9011 10,000 250 10,000 4.050 27.000 4,000 37.51x1 (20,9351 (18,7071 135.0911 {204,2701 57.100 286,900 500 {18,71JO) {1,228) 7,700 2,000 5,000 1130.9011 10,000 250 10,000 1,089 10.000 11,0891 1298) {2,750) 9.702 {2,750) 10,000 1,000 (12.8571 1.000 113,8411 6.504 10,000 1,000 4,500 1,000 (17,357) (13,8411 27,0331 33,537 644.182 47.828 TOTAL FUNDS 3,588,469 3.720,158 131.689 Page 38 continued.. CHAPTER (CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 23. MOVEMENT IN FUNDS - continued Comparatives for movement In funds Nel movement in funds Transfers be￿een funds At 3113123 At 114122 Unrestricted funds General fund Designaled fund - To support 2023124 1,693,541 140,000 1179,4741 146,499 {58,000} 1,660,566 82.000 Restrlcted funds Art Fund - Joy Labinjo Art Fund - Save our Sculpture Arts Council ofWales- Connect & Flourish Arts Council of Wales- Experimentica Arts Council of Wales- Gwyl Cymru Arts Council of Wales - Perspectives Arts Council of Wales - Resilience Ashley Foundation BFI Film Education Feasibility Grant British Film Industry- Diversity British Film Industry - Film Fees British Film Industry - Film Hub Wales British Film Industry - Japan British Film Industry - Nottingham British Film Industry - VEF Cardiff University Chapter Building - Capital Contemporary Art Darkley Trust Dunhill Medical Foundation Ewart Parkinson Award Ffilm Cymru Ffilm Cymru - Reopening Ffilm Cymru- Young Programmers Football Association of Wales Foyle Foundation Garfield Weston Foundation Henry Moore Foundation Henry Moore Foundation- Garth Evans PRSF Rayne Foundation Theatre Trust Wales Cultural Allian WCVA- Third Sector Resilience Fund Welsh Governmenl - Made in Wales WPD Holiday {137) 137 14821 482 80.080 16,779) (39,2991 14,618 5,596 30,000 14,791) 40,781 17,839) {5,596) 30,000 4.290 2,700 2.771 39.355 825 123,357 3.857 501 2.700 (2,7711 13,4701 18251 114,8831 12.857) {3.567) {25.000) {10,737} 25,148 (62,0491 (1.0001 3,567 10.271 46,425 39,919 9.500 2,577,811 3.000 1.765 13,431 5,150 25,190 9,500 2,456,378 3,000 1,765 13.431 5,150 15,000 9.800 {121.433) 15.O¢XI 9,800 20.993 3,387 1.386 {24,380) {1.386) 30.000 75.000 3.000 2.000 11.550} 20.059 5,000 514 30,206 (3,6831 30,000 37,386 3,000 2,000 {37.614) 1.550 20,059 5,000 15141 (1.3701 5,962 2.883 28,836 2,279 2.883 3.092.853 191,526 88,499 2.812.828 TOTAL FUNDS 4,926,394 371,000 4,555,394 Page 39 continued... CHAPTER (CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 23. MOVEMENT IN FUNDS - continued Comparative net movement in funds. inciuded in the above are as follows: Incoming resources Resources expended Movement in fijnds Unrestricted funds General fund 2,749,571 12,929,045) 1179,474} Restricted funds Art Fund- Joy Labinjo Arts and Business Arts Council of Wales - Connect & Flourish Arts Council of Wales - Experimenb'ca Arts Council of Wales - Gwyl Cymru Arts Council of Wales - Perspectives Arts Council of Wales- Resilience British Film Industry- Diversity British Film Industry - Film Hub Wales British Film Industy - Japan British Film Industry - Nottingham British Film Industry- VEF Chapler Building - Capital Ffilm Cymru Ffilm Cymru - Young Programmers Football Association of Wales Garfield Weston Foundation WCVA- Third Sector Resilience Fund Welsh Government - Made in Wales VVPD Holiday 4.000 1.046 {4,137) {1,046) {39,299} (3,200} (4,3041 11371 (39,299) 14,618 5,596 30,000 (4,7911 {10,7371 {62,0491 11,0001 3,567 10,271 1121,433) 15,000 3,387 1.386 (37.6141 11,3701 5.962 17,818 9.900 30,000 14.7911 165,2371 1273.7161 11,000) (933) {44.619) {121.433) 54,500 211.667 4,500 54.890 15.000 10.843 5,000 (7,456} (3.6141 (37.6141 11.3701 (22.9821 5.3831 28,944 2.500 450.608 642.134 191,526 TOTAL FUNDS 3,200,179 3,571,179 371,000) Current ear restricted funds: Access to Work Funding to purchase an office chair for an employee with back problems. Artes Mundi Funding via Artes Mundi and Heritage Lottery Fund to provtde workshops associated with their exhibition. Arts Council of Wales - Capital Hearlng Loops This funding helped us to upgrade our Hearing loop provision in around the building in the Seligman theatre. the gallery, the front desk and the café sales point Arts Council ofwales - Quebec We developed a partnership programme wlth LA SERRE in Quebec, supporbng arbsts from Wales and Canada lo develop a performance project together. Arts Councll of Wales - Sharing Together This funding enabled us to continue supporting the Dldeaf ne￿rk that was created through the Connect & Flourish project. Arts Councll of Wales- WAI Canada This supported a gallery exhibition by Myfanwy Macleod. Page 40 continued.. CHAPTER (CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2024 23. MOVEMENT IN FUNDS - continued British Councll Funding to develop a site-specific performance in partnership with an organisation in Germany. BTltish Film Industry- Audiences Year one of a 3 year project working to develop new audiences for our cinema programme. British Film Industry - Film Academy Plus A 3 year programme of training for young people interested in leaming film production and presentation works. British Film Industry- P&P To support organisations to show a season of Powell & Pressburger Films. British Film Industry - Watershed To support Chapter to show a season of Powell & Pressburger Films. CCC - Capital To improve the Peilot space for community usage. CCC- Community Larder To supportthe community larder. Colwinston To support the live artl perfomiance festival Experimentica in 2024. DWR A contribution towards our communty programme Ffilm Cymru - Project To support the presentation of a varied and diverse selection of independent films Freelands For an exhibition in 2026 by Imogen Stidworthy. National Grid Community Matters Fund- Capltal Build new planters in the west wing and plant fruit trees Oakdale To improve the Peilot space for community usage Slmon Gibson To support the provision of free lunches for young people during holiday periods WCVA - Energy A grant for an energy audit to be completed. Prior ear restricted funds: Arts & Business To match fund Admiral sponsorship. Arts Council of Wales- Perspective Working wlh the National Museum and 6 other arts organisations over a tsvo year programme working with creative professionals from diverse backgrounds. Art Fund - Joy Labinjo Balance ofArt Fund grant to support Gallery Programme. Page 41 continued... CHAPTER {CARDIFF) LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 23. MOVEMENT IN FUNDS - continued Art Fund- Save Our Sculpture Fundraising campaign with the Art Fund and Chapter donors to restore a Garth Evans sculpture, returning il to Cardiff to exhibit in the city centre and ullimately find it a new home in Wales. Arts Council of Wales- Connect & Flourish DIDeaf led project 'Hear We Are, led by Johnny Cotsen, looking al those working in or excluded from the creative sector, leading to a manifeslo lo underpin best practice for the arts. Arts Council of Wales - Experimentica Relates to funding re￿iVed to support the 2021 Experimentica event. Arts Council of Wales - Resilience Relates to funding received to support the feasibility study. Arts Council of Wales - Gwyl Cymru To support a festival around Wales appearance in the World Cup. Ashley Foundation To support film education activity in 2021. BFI Fllm Education Feasibility Grant To facilitate the research for a larger grant to support the education and outreach programme of activity. British Film Industry- Film Hub Wales For film hub core programme of activity and includes contributions from other BFI Film Hubs to support Sidecard project British Film Industry Diversity BFI grant to support Film Hub Wales and the Film Audience Ne￿rk partners to deliver a UK wide inclusive cinema strategy for audien￿$ with additional needs, including training. resource development and central coordination. Brltlsh Fllm Industry - Fllm Fees To invest in online activity, Chapter programme. Brltlsh Fllm Industry- Japan To support a season ofJapanese films. British Film Industry- Nottingham To support the cinema programme'Dreams are Monsters,. British Film Industry - VEF To support film related aclivity for young people aged 16-25. Cardiff University To support Chapterfs Dementia work. Contemporary Art Contemporary Art Contribution to Chapler at the Wales in Venice Biennale. Darkley Trust To support Chapterfs education and outreach work. Dunhill Medical Foundation To support the work of Chapter's Dementia film programme. Ewart Parkinson Award Ewart Parkinson award to support film education programme. Page 42 continued... CHAPTER (CARDIFFI LIMITED NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 23. MOVEMENT IN FUNDS - contlnued Ffilm Cymru To support the cinema programme. Ffilm Cymru - Reopening Funding received to support the cinema. Football Association of Wales Sponsorship towards World Cup Football festival. Foyle Foundation To support core programmes. Garfield Weston Foundatlon To support activity. Henry Moore Foundatlon To support James Richards exhibition. Henry Moore Foundatlon - Garth Evans To support the exhibition at Chapter. PRSF To support a lour to Ireland by a group of musicsans led by Emma Coulthard. Rayne Foundation Grant to support Chapterfs Dementia film programme. Theatre Trust To support opening costs. Wales Cultural Alliance FHW to lead a facilitated session in film exhibitors across Wales to enable them to feed in to the development of the ACW I WG cultural Contract. WCVA - Third Sector Resilience Fund To support development of Chapter website. Welsh Government- Made in Wales To promote Welsh film, managed by Film Hub Wales. WPD Holiday To support free arts activity and lunches during the school holidays. Prior ear desi nated funds: Chapter Building ¢apitsl grant Relates to funding received to purchase and refurbish the Chapter building and various equipment Transfers between funds: Transfers were made between restricted funds and unrestricted funds in relation to contributions towards the charity's overheads and to transfer funds in relation to capital expenditure when the reslriction had been satisfied. Page 43 CHAPTER (CARDIFFI LIMITED NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 24. RELATED PARTY DISCLOSURES During the year the charity entered into transactions in the ordinary course of business with related parties as follows- Name Nature of transaction 2024 2023 Entities under the charity's control Recharges to Recharges from Managemenl charges Amount owed from 44,272 63.513 90,500 381.012 26,788 37,393 113,695 Other related parties.. Cardiff Animation Festival CIC Income received from Expenditure paid to Amount owed to Amount owed from Income received from Amount owed from Income received 588 8.223 485 8,433 7,712 1,625 3,972 5,831 194 216 ie ie Productions Limited 4.770 776 195 Picl Animation Ltd Page 44