Company registration number: 01066757 Charity registration number: 501953
## Manchester Young People's Theatre Ltd
known as
Contact Theatre
(A company limited by guarantee)
Annual Report and Financial Statements
for the Year Ended 31 March 2023
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Contents
Reference and Administrative Details 1 to 2 Chair's Report 3 to 4 Trustees' Report 5 to 17 Independent Auditors' Report 18 to 21 Consolidated Statement of Financial Activities 22 Consolidated Balance Sheet 23 Balance Sheet 24 Consolidated Statement of Cash Flows 25 Notes to the Financial Statements 26 to 52
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Reference and Administrative Details
Chair Mr J Akinola, (resigned 14 June 2023)
Ms A Wilson, (appointed 14 June 2023) (resigned 15 November 2023) Ms B Ikpasaja (appointed 15 November 2023)
Trustees Ms G Flynn
Ms F Ope
Ms A Wilson (resigned 15 November 2023) Ms R Tennenhaus (resigned 14 June 2023) T Ajayi, (appointed 22 March 2023)
Mr J Wilkinson, (resigned 22 March 2023) Mr C Cremin (resigned 15 November 2023) Mr P Olubayo
Ms T Olaniran, (appointed 22 March 2023) Ms J Y Cheung, (appointed 22 March 2023) P Fatayo, (appointed 22 March 2023)
Secretary Mr S Moon, (resigned 30 June 2023)
Manchester City Council representatives[replacement pending]
GMCA representatives replacement pending
University of Manchester representative
Dr K Dorney, (resigned 22 March 2023)
Mr J de Groot, (appointed 22 March 2023)
Key management personnel K Thompson, Artistic Director/Chief Executive (resigned 14 December 2023 as Chief Executive)
L Whitehurst, Head of Creative Development
S Moon, Head of Finance (resigned 30 June 2023)
F Bradley, Head of Finance (appointed 31 October 2023)
M Barham, Head of Marketing & Communications (resigned 26 June 2023)
S Stephens, Head of Commercial & Visitor Experience (resigned 6 March 2023)
J Dale-Dowd, Head of Production/Executive Director (appointed 15 December 2023 to Executive Director)
Charity Registration Number 501953
Company Registration Number 01066757
The charity is incorporated in England and Wales.
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Manchester Young People's Theatre Ltd known as Contact Theatre Reference and Administrative Details Registered Office Contact Theatre Devas Street Oxford Road Manchester M15 6JA Auditor Beever and Struthers Chartered Accountants and Statutory Advisors Suite 9b, The Beehive Shadsworth Business Park Lions Drive Blackburn BB1 2QS Solicitors Gateley LLP Ship Canal House 98 King Street Manchester M3 3AP Bankers Natwest Bank plc 1 Spinngfields Square Manchester M3 3AP
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Chair's Report for the Year Ended 31 March 2023
Contact’s mission to change the face of UK culture has been truly alive in this recent financial year. As ever, young people sat at the heart of decision making at Contact, playing central roles in artistic programming, recruitment and governance. Keisha Thompson lead Contact to continue to deliver for young people, audiences and local communities, using its resources and expertise to empower young people, support the next generation of creativity, and welcome new audiences to enjoy and benefit from the diverse programming offer.
In early March, five new trustees were appointed to the Board of Trustees, strengthening the capability and capacity of Contact’s governance oversight and expanding the organisation’s network as a charity and arts venue in Manchester. Our model of committing to 50% of Trustees being under the age of 30 continues to attract interest from across the UK and further afield. In October 2022, (then) vice chair Ali Wilson hosted youth board members from Gent theatre Viernulvier on a visit to Contact and continues to consult them on youth governance.
The building has welcomed artists, audiences, participants, visitors and clients across the year, offering a friendly and inviting space for all. A busy calendar of commercial hires has welcomed new visitors to Contact’s building, for whom the experience of the building is enriched with the buzz of young people populating its public spaces. The open call for a kitchen and cafe vendor residency instigated a collaborative process with young people to select a new partnership, beginning a new era for Contact’s food and drink offer, resulting in Ardwickbased kitchen ARMR’s appointment in December 2022.
Amongst a challenging economic landscape, Contact has worked hard to create resilience and sustainability throughout the organisation's resources. A redesign of staffing structure and devising of new staffing roles took place in March 2023, this was a refocusing, to ensure Contact’s activity serves its community as best as is possible as well as capacity building within the Development and Commercial teams. Continued review of the economic landscape has led to a further refining of Contact’s staff structure which was carried out in the latter part of 2023. Keisha Thompson resigned as Artistic Director & CEO to allow a shift in focus for an interim period of 12-18 months. Keisha resigned her CEO position in December 2023 with her Artistic role continuing through to March 2024. Other staffing changes, following resignations up to the end of Q3 23/24, allowed Contact to restructure avoiding redundancies. Jack Dale-Dowd was appointed as Interim Executive Director to oversee the next 12-18 months. Implementation of technology and digital support across working practices has been vital in supporting staff and finding new and robust ways to work. The impact of the rise in cost-of-living and inflation has created further challenges to Contact's staff, with whom the organisation continues to reflect with on how we can further improve working experience. Reviewing of the artistic and participation program is ongoing, with efforts to find further opportunity to rebuild reserves and adapt to the economic landscape, whilst maintaining our commitment to our vision, mission and values. A revising of Contact’s operating model and focus of resources will see the continuation of Contact’s vital Young Person participation and leadership development work with a reduction in the programmed artistic work, allowing additional space for further income generating activities and performances.
Our commitment to anti-racism continues to be channelled both through our internal work, but also in our Anti-Racism training offer, picked up by three artistic organisations in this last year. Growing a commercial offer that remains firmly within our values has been a priority for Contact, ensuring that all work we do contributes directly to our mission: to change the face of UK culture, of which anti-racist practise is crucial.
Contact’s artistic offer remains bold, investing programming in local, early-career artists making exciting work. Productions from visiting companies continue to offer Contact’s audiences unique cultural experiences, building curiosity and loyalty within the Oxford Road community. Participation projects throughout the year have enriched the lives of young people, who demonstrate their connection to Contact through their use of the building as not only a place to learn and develop, but also to relax and be themselves. The programme continues to be a unique offer in Manchester, co-produced with Contact’s young programming team and full of reasons to return.
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Chair's Report for the Year Ended 31 March 2023
We remain steadfast in our commitment to providing transformative experiences for young people, nurturing new artists, caring for each other and the environment, promoting inclusion and understanding between communities and a commitment to anti-racism.
This year has presented Contact with another set of unique challenges, each requiring action rooted in care and nuance. We look forward to a year of building resilience for Contact whilst ensuring that our values and mission are carried out through our work at Contact and with partners.
The chair's report was approved by the trustees of the charity on 6.3.2024 and signed on its behalf by:
.......................... ............... Ms B Ikpasaja (appointed 15 November 2023) Chair of the Board
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 March 2023, in compliance with s414C of the Companies Act 2006.
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2023.
## Objectives and activities
Objectives and Activities
Our vision is a world where young people are empowered by creativity and the arts.
Our mission is to change the face of UK culture.
From our sustainable creative building in Manchester, we do this by:
- Empowering young people from all backgrounds as creative leaders and agents of social change
- Supporting the next generation of artists and creatives
- Inspiring new audiences with stories and experiences that reflect our community
Our values are:
- We take a young-person centred approach to decision-making
- We promote inclusion, access, understanding between communities, and a commitment to anti-racism
- We foster artistic excellent, integrity and creative risk-taking
- We nurture new artists, creative leaders and audiences
- We care for our health, each other and our community
- We care for our planet and environment, working towards a carbon neutral future
We use these values to inform our activity, and as the framework for evaluating our progress. In shaping our objectives for the year and planning our activities
Our main areas of activity are:
- Providing transformative experiences for young people
- Producing high quality new work with a focus on social realities
- Operating a unique, ethical and welcoming building Contact is an environmentally sustainable building with an energy rating of A
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
## Main Activities 2022-2023
Our activity is multi-faceted and diverse, ensuring young people have access to creative learning programmes as well as world-class entertainment and artwork. Early career artists are supported through a structured programme of seed fund commissions alongside in-house financial, producer and technical support. The artistic programme maintains a focus on pressing social issues relevant to young people. Contact is a leader in the field of diversity and representation, both of which are at the core of both our produced and presented work. Our on-going target is that 50% of the artists that we support are from a Black, Asian or Minority Ethnic background, markedly higher than local or national averages, and a target we again met in 2022-23.
Our presented programme of theatre, music, spoken word,dance, comedy and cabaret features early career and first-time artists alongside internationally acclaimed companies. Contact audiences get to be the first to experience innovative and pioneering shows that go on to major venues and festivals, and to experience the work of artists who go on to renowned and award-winning careers, as well as those presenting work across the world in mid-large scale productions.
Within this iconic building the atmosphere is open and welcoming, with local young people populating the most front-facing roles. Contact provides a meeting place for young people, communities and artists to work and socialise together. We provide free Wi-Fi, and there is no obligation to buy or consume anything in our public spaces. We also present a high-quality visual art programme of exhibitions and artists' films that complement and often relate to the performance programme. These are curated across public spaces around the building, and are always free to enter. As an organisation championing young people, Contact pays all staff the national living wage, regardless of age. The Trustees are proactive in ensuring that our activities benefit the public and young people, and as a consequence have considered the guidance in all our activities and fee charging.
The Agency is in its second year of a new five-year era, with a cycle ending in April 2023. Fifteen agents from Moston and Harphurhey completed the program with three being selected for funding. Graduate agents of the program have been successful in their application for funding to support their video game project Dawn To The Light. Contact continues to work in collaboration with national partners in London, Belfast, Chester and Southampton, thanks to support from the National Community Lottery Fund.
CYC produced three works across this period: Halo directed by AD/CEO Keisha Thompson, Whilst You Were Waiting Something Changed directed by internationally renown performance Gob Squad, and Flip the Script, directed by local artist Mark Croasdale in which four new writers, selected by CYC cast, to create new staged work celebrating the number 50.
Music Drop, Level Up and Studio School ran until August ‘22, bringing young people into our media lounge to develop new multimedia creation skills. Evaluation now ongoing with young people to refine delivery and project designs, as well as secure future funding. Contact continues to work in partnership with external organisations to deliver projects from the media lounge.
Arts & Trauma Network, devised as part of Contact’s health & science provision was launched in partnership with Oldham Coliseum, Manchester Art Gallery and University of Manchester, with funding from GMCVO to develop a Greater Manchester community of practice exploring arts and trauma over 2022. This work continues. Balmy Army, co-commissioned in partnership with HOME + MIF + 42nd St + The Horsfall, saw the creation and delivery of an activist movement for youth-led mental health around activism, culminating in a live event at HOME, in collaboration with Manchester International Festival.
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
GMCDP worked with Contact and People’s History Museum on a creative project with a group of young disabled artists, exploring artwork in and around archives of disability.
Re:Con recruited three new programmer/producers in Jan ‘23, who will develop skills over the next eighteen months, culminating in the creation of new work. This continues a long-standing program empowering young programmers/producers with work-place experience and key support to develop core skills. Previous Re:Con members have become both freelance and permanent producers at Contact, as well as Trustees and Chair of the Board.
Queer Contact continued its tradition of celebrating a spectrum of queer lived experience with a festival amplifying voices of queer artists across the UK and beyond, featuring Ginny Lemon and Sister Sister, House of Suarez Vogue Ball and the queerest tardis of all time in The Gallifrey Cabaret, amongst much more. A steering group of young queer people consulted on the program, ensuring their voice and lived experience ran through the heart of the festival.
Future Fires supported the development of five socially engaged community action projects, including work to celebrate trans joy, delivering accessible creative writing workshops for East and Southeast Asians and exploring climate justice through spoken word.
The Lion King musical, in connection with Palace Theatre, delivered workshops at Contact for young people and school groups to connect audiences across GM to the show, sharing practices of commercial theatre practice and building relationships with audiences from Contact’s community.
Far Apart saw the fruition of a research collaboration between People’s Palace Project and Contact, looking beyond lockdown to understand how UK arts orgs can continue to support young people’s wellbeing. Far Apart involved consultation with young people and hiring young researchers as consultants, culminating in an event that took place in 2022.
BBC Reciprocal Mentoring Scheme connected twenty-five young people from Contact’s network to twenty-five staff members across BBC Children & BBC Education in a twelve-month reciprocal mentoring scheme, each pair supporting each other in create and professional endeavours. As a result of the program, at least two young people are now in full-time employment at BBC. This saw the beginning of a relationship between BBC and Contact, instigated initially via trustee and BBC employee Bex Tennenhaus.
Commissions continued with local artists benefiting from financial, strategic and artistic support to develop new works. Malandra Jacks, Rory Aaron and Miray Sidhom all received specialist support packages as early-career artists.
Drama and English Teacher Network was established in connection with HOME and Royal Exchange Theatre to increase creative programmes that work for and with the curriculum, developing stronger relations between teachers and the cultural institutions in Greater Manchester.
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
## Marketing
The majority of staff operate within a mix of in-person/at home scheduling, continuing our commitment to more flexible working and hybridity across the organisation since the pandemic. Participation programmes encourage young people to engage in a way that suits them, supporting those who prefer to engage remotely. Board meetings run in a hybrid-fashion, allowing Trustees to contribute to ongoing governance work without travel.
Contact’s marketing and communication strategy adapted to post-Covid and significant organisational changes: in April 2022 we announced Keisha Thompson’s appointment, which heightened brand awareness and brought in great publicity, supported by our freelance PR Binita Walia. Community-specific audience engagement freelancers were employed to raise the profile of the artistic program, Contact’s website redevelopment project began and the 50th birthday campaign was launched.
Booking trends confirmed the established popularity pattern of our Space 2 shows featuring local artists, with Miray Sidholm’s The Bread We Break and Rory Aaron’s This Town selling out across their runs. A very busy autumn season required some creative management of the marketing and communications strategy, resulting in a more holistic approach to promoting over 20 performances. This looked like a digital season announcement, PR, a season brochure, flyer distribution, email and paid social ads as well as individual audience development and press campaigns for shows, all running simultaneously with the 50th birthday campaign. Sell-out comedy show with Sofie Hagen came in as a commercial hire but inspired thinking around working with ticketing agents.
Alongside delivering the Autumn season, Contact completed it’s copywriting project with Reeds Words and continued to work on our website redevelopment. As well as late booking, our trends for majority under 35s audiences continued through the season.
Whilst usually dark in January, Contact had three performances of Wasteland programmed, 50 Hours of Focus workshop series, Covid Song Cycle and an early start to Queer Contact. The success of Wasteland, selling out with the majority of sales in the two weeks ahead of the show opening, As the first venue in the tour, inspired confidence in instances where Contact is the first venue for a production tour. Nerves about not having as much collateral as other spaces to promote the show were eased by a robust marketing, press and audience development campaign paying off.
## Commercial
The commercial team has met ongoing demand for commercial space hires across the building. Throughout this financial year, Contact delivered 66 bookings of commercial hires from a diverse range of clients, including Disney, RFK Human Rights, Manchester City Council and Coram Shakespeare Schools, achieving over 50% of the commercial income target despite an challenging economic landscape. Efforts to attract commercial hires continue.
Contact’s Anti-Racism Training package was delivered to local arts venue HOME and completed delivery to London-based Battersea Arts Centre, as well as a taster workshop for The Tetley, contemporary art gallery in Leeds. Interest in this program continues to grow, with increasing interest from organisations outside of Greater Manchester.
Following an open call for a kitchen and bar vendor, local vendor ARMR were appointed to run Contact’s bar and kitchen offer, which commenced in April 2023. Alongside their plant-based food offer, ARMR bring with them long standing relations with local community members in Ardwick and the wider Manchester City area, some of whom will visit Contact’s building for the first time upon ARMR’s appointment.
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
## Financial review
## Unrestricted Funds - Group
Contact had an operating deficit of £492,824 in 2022-23 (2021-22: deficit of £90,469). The unrestricted reserves stood at £172,351 at 31 March 2023.
The principal sources of income were grants and donations, income from the artistic programme and commercial hires. Arts Council England, GMCA, Manchester City Council, Coutts Foundation and University of Manchester were our principal funders
The building has been fully operational for seventeen months for artistic, participatory and commercial use, with public free wifi permanently available from June 2022. The main building project is now closed and all snags resolved. Some ongoing capital works continue as funds become available. Projectors were replaced in both Spaces 1 and 2, ensuring our technical capabilities are robust. In collaboration with young people, we reviewed our environmental action plan ahead of the next financial year. Whilst the building does not require mask-wearing, visitors are welcome to protect themselves with both masks and use of the hand sanitisers available.
The financial impact of covid-recovery, inflation and cost-of-living crisis continues to challenge Contact’s activity. The funding landscape has, in this financial year, been similarly challenging and our applications for both restricted and unrestricted funds face more competition than ever. Navigating this, whilst transitioning into a newly opened building has proved complex, however both the Board of Trustees and senior management team have acted swiftly and proactively, often having to make difficult decisions to ensure the financial stability of the organisation.
In light of these ongoing challenges, the organisation has actively searched for new ways to operate in a lean and cost-efficient manner. We recently introduced Xero, along with a number of automation-driven finance software packages, which has streamlined the finance team. Additionally, the resignation of the Head of Commercial & Visitor Experience role offered the opportunity to reimagine the shape of Contact’s senior management team. This re-thinking formed part of an organisational restructure in which a new artistic department was created to replace the Creative Development team. The Cultural Engagement team will encompass a wider spectrum of activity from participation and artistic development to commercial programming and consultancy work. The team will be more informed by data and trends as it strives to give our young people and artists more pragmatic and commercial access points to the arts sector and beyond.
Over the years, Contact has secured non-arts partnerships that have driven our work into a variety of sectors and made the case for culture as a tool for social change and research. Thus, the creation of a new department will give space for us to be more pronounced and cohesive as we continue to move in this direction. The most recent recruitment of the Engagement Manager has been crucial to kick-starting this process. The next year will be used for consultation and foundational work before launching a definitive new artistic season and participatory offer in Autumn 2024.
In October 2022 Contact received news on the NPO application to secure ACE funding for 2023-2026, in which £2,799,891 was granted (£933,297 per annum). Despite strong feedback, amongst the challenging funding landscape, ACE were not able to award an uplift in this NPO round. The 2023-2026 NPO period will focus on delivering an innovative response to ACE’s Let’s Create strategy in the three key areas: Creative People, Cultural Communities and Creative & Cultural Country. This work builds on roots which are well embedded within Contact: youth voice, supporting artists and creative work to empower people from underserved communities.
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
We were successful in attracting unrestricted funds of £1,521,634, including:
- -Arts Council England - £933,297
- -Greater Manchester Combined Authority - £97,000
- -Manchester City Council - £30,000
- -Coutts Foundation - £55,000
- -University of Manchester - £41,080
- -Studio School - £600
- -Donations - £3,320
## Restricted Funds - Group
We brought forward non-capital restricted project funds of £229,404 (2021-22: £494,384). During the year, we were successful in attracting restricted project funds of £141,841 (2021-22: £522,644), including:
- BBC (reverse mentoring) - balance of £3,750 to deliver reciprocal mentoring scheme, partnering twenty-five young people with senior BBC staff.
- The Agency - balance of £108,635 to continue with The Agency project in partnership with Battersea Arts Centre and People’s Palace Projects. The project has received funding for a five-year period between 2022-2027.
- Curiosity Fund - a balance of £7,985 to deliver activity in partnership with BBC Children In Need focussing on improving the lives of children and young people experiencing disadvantage, through participation in and out of school science activities.
- GMCDP - balance of £3,934 to deliver artistic project with local disabled people in partnership with People’s History Museum.
- GMCVO (Trauma responsive communities) - balance of £5,000 to develop Arts and Trauma network with local partners.
- RTYDS - balance of £13,437 for Assistant Artistic Director residency in collaboration with Regional Theatre Young Director’s Scheme and Ramps on the Moon.
- Youth & Play (Creative Connections) - balance of £10,000 to deliver a week full of free developmental sessions for youth sector and arts sector workers.
- MCR Active (Holiday Action Fund) - balance of £4,800 to deliver holiday club activity.
- More Than Skin Deep (People’s Palace) - balance of £1,200 to deliver a collaborative participatory arts project that has developed verbatim theatre techniques to share the voices of care-experienced young people, care leavers, and adults responsible for their care and education.
- Time Stamp - a balance of £3,100 to deliver a video and podcast project in partnership with Manchester City Council capturing the experiences of young people during the pandemic.
We carry forward restricted non-capital project funds of £48,778.
## Investment policy and objectives
The Trustees, having regard to the liquidity requirements of running Contact, have kept available funds in an interest-bearing deposit account and seek to achieve a rate on deposit which matches or exceeds inflation as measured by the retail prices index.
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## Manchester Young People's Theatre Ltd
known as Contact Theatre
## Trustees' Report
## Policy on reserves
The capital project has now been completed, with all snagging complete. There are some small one-off projects to be addressed, but these will be paid for out of availability of ongoing funds. The commercial and box office targets that were anticipated in the capital project business plan have been challenging to achieve.
Last year, we highlighted the importance across the medium-term of building and maintaining a healthy general reserve, post capital project, however inflationary pressures on the cost side, and commercial and fundraising setbacks have resulted in a greater deficit than anticipated. Our goal is to maintain three months’ operating costs, however we end the financial year with free reserves of £26,420, which equates to below one months of operating costs. Post year end reserves continued to be depleted, expenditure reductions were initiated including a recruitment freeze for non critical posts and staffing restructure. Activities have been reduced for the remainder of 2023/24 with a change in leadership and revised smaller staff structure to take Contact forward into 24/25. A reviewed focus on ways of working to enable activities to continue focussing on income generation over the coming financial year is underway in order to build resilience and reflate reserves gradually.
The successful Arts Council England NPO application secures our next funding cycle, along with confirmed ongoing funding from MCC, GMCA, and UoM, however the board are supporting the senior management team to recalibrate the business model, in order to achieve the medium to long-term goal of building reserves back up. Despite the ongoing challenges, the trustees are confident in the strong governance processes, healthy board structure, and the decisive leadership under Jack Dale-Dowd, such that the organisation will continue to adapt to the changing landscape.
Contact remained at ‘minor’ risk according to Arts Council England’s risk assessment, in response to the pragmatic action taken to build resilience, and the recruitment of further expertise and experience to the Board of trustees. This risk rating has now increased to ‘moderate’ in 23-24 with actions being taken to reduce this rating.
In the effort to create a more commercial programme, this coming year we will see the introduction of events that focus on:
- Fashion
- Music
- Gaming
- Sport
- Comedy
- Teacher Training and Career Development
- Family and school-focused shows for holiday periods including an annual pantomime
Additionally, we will create more consultancy packages following the model of our successful Anti-Racism Package. These will focus on the following areas:
- Youth Governance
- Safeguarding and Social Media
- Climate Confidence
## Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
## Plans for future periods
## Aims and key objectives for future periods
A change in leadership for Contact toward the end of 2023 with Keisha Thompson resigning from her post and pivoting to focus on her role as Director of Contact Events Limited. Jack Dale-Dowd has been installed as Interim Executive Director to oversee the coming 12-18 months for the organisation.
Migrating the on-premises server provision to a cloud-based storage system has improved access and security, ensuring working processes are robust in an ever-digital world. Contact’s phone system will soon also update to a cloud-based model to improve current provision. Usage of cloud-based technology has positive environmental impact and demonstrates ongoing commitment to reducing carbon footprint and protecting the planet. With funding from Wolfson Contact will complete additional electrical works to replace legacy lighting fixtures with more sustainable LED fittings and sensors, which offer a five-year return on investment.
HR company Peninsula have been onboarded as an outsourced provider, offering extensive HR support for the team. Contact will soon onboard their Health & Safety package, to make further robust H&S provision and provide additional insurance for both the HR & HS package.
Contact’s education strategy will launch after twelve months of planning, which will see a return to working closer with schools and building programming strategies that specifically respond to the national curriculum, specifically GCSE drama. After consultation with teachers, Shakespeare returns to Contact in 2024.
This next year will see a music therapist join Contact for two days per week, supporting the delivery and experience of Contact’s music based programmes and responding to the mental health challenges faced by young people. A new era of Studio School will begin with delivery in two PRU centres, as well as drama and spoken word also being delivered in PRU provision settings. The development team will continue to pursue funding for health and science activity.
Contact’s relationship with University of Manchester will continue to develop through a partnership + further funding for activity in this next year. Discussions with MIF are ongoing regarding a new Young Commissioners Opportunity. Plans for Contact’s artistic programme across the next year have reduced and pivoted to allow further focus on income generating activities.
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
## Going concern
The Trustees have carefully considered The Charity's going concern position with regard to its Arts Council England's National Portfolio Organisation (NPO) funding. Contact has recently been awarded funding for the next cycle of NPO funding which covers the three years from April 2023 to March 2026. Manchester City Council and the Greater Manchester Combined Authority (GMCA) have confirmed funding for the year to March 2024 and we are in active discussions with them about future funding, seeking uplift in both cases. Although the NPO funding continues at the same level, we continue to seek new funding partners and have been successful at increasing funds to support our core work.
The Charity via its Trading subsidiary is unlikely to meet its commercial profit targets for 2023-24 though we plan to develop these income streams further in 2024-25. This will have a potential impact on the Charity bottom line.
Contact's reserve policy requirement of free reserves covering three months' operating costs are not met at the end of the period. Contact has budgets in place to build free reserves toward three months operating costs over the current NPO funding period.
Contact has prepared mitigation steps including new financial and commercial strategies over the next two years to build free reserve and continue to focus on its mission by:
- Prioritising value for money programme.
- Continue to drive cost cutting exercises to reduce expenditure.
- New business model to generate voluntary and trading income.
- Robust financial monitoring and assessment using monthly management accounts.
- Financial health check through stringent monthly cash flow forecast and quarterly budget review.
- Maximise the efficiency of its trading subsidiary business model to generate commercial income.
The Trustees recognised the current financial position of Contact and having assessed the new financial and commercial strategies including the cash position and the mitigation steps - including the renewal of the current overdraft facility as a buffer are therefore satisfied that it is appropriate to prepare the financial statements on a going concern basis.
## Structure, governance and management
## Nature of governing document
Manchester Young People's Theatre Limited, also known as Contact, is a registered charity (No 501953) and a company (No 1066757) limited by guarantee. The governing documents of Manchester Young People's Theatre Limited are its Memorandum and Articles of Association. The company was incorporated on 18 August 1072 and registered as a charity on 31 October 1972. The Trustees of the Charitable Company guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up.
## Recruitment and appointment of trustees
Trustees retire after three years by rotation. These Trustees may offer themselves for re-appointment for a second term. All new trustees are recruited via a thorough process led by the Resources Board. Candidates are interviewed by a panel of trustees and a separate panel of young people and if appropriate recommended to the Board for appointment.
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
## Induction and training of trustees
New Board members undertake a series of induction meetings with the Board Chair, Senior Management Team and staff and a comprehensive induction pack is provided. Board wide training is arranged as required. The Board includes one representative from the University of Manchester and one representative from the Greater Manchester Combined Authority, though this post is currently vacant.
## Organisational structure
The Trustee Board has the following sub committees: Resources, Artistic Evaluation and Trading Board. These committees each meet at least four times a year with meetings scheduled to allow reporting back to the Board each quarter.
The Trustees ensure the accuracy and timeliness of all financial reporting information through the work of its Resources Board, which reviews all financial information, the development of business systems and procedures and progress on income generation and fundraising strategies. The Resources Board, which meets on a quarterly basis develops and monitors Contact’s Financial Regulations and Risk Register. In addition, it reviews operational risks in relation to employment issues as well as keeping abreast of changes in employment law and developing relevant policies. The Resources Board also reviews Health & Safety Policy and procedures as well as Child Protection and Safeguarding Policy and procedures. Members of the Resources Board bring expertise on business planning, equality, diversity and inclusion, HR and finance.
In terms of service quality, all individual projects undertaken by the organisation are subject to risk assessment, monitoring and evaluation procedures. Reports are made quarterly to the Trustees. The Trustees also monitor the quality of services through its Artistic Evaluation Board, which also meets quarterly.
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## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
## Relationships with related parties
None of our Trustees receive remuneration or other benefit from their work as Trustees with the Charity. Five Trustees, Mr Joshua Wilkinson, Ms Ali Wilson, Mr Junior Akinola, Mr Christie Cremin and Ms Faidat Ope were engaged on a freelance basis for various projects throughout the year.
Any connection between a Trustee or Senior Manager of Contact with a production company, contracted actor, performer, or exhibitor must be disclosed to the full Board of Trustees in the same way as any other contractual relationship with a related party. Contact has a Conflict of Interest Policy and Register of Interests.
Contact and the University of Manchester have an Agreement, which allows for Contact to lease the building from the University, to access some facilities and services, and to collaborate with the University on programming events for and by students.
Major risks and management of those risks
The Trustees review the objectives, services, management and regular funding of the organisation as part of an ongoing planning and review process, which includes the development of a Four Year Business Plan. The plan assesses Contact's development and sets targets in relation to a number of risk factors, including financial, operational, governance and external factors. There is an addendum to the business plan currently being created to plot out the organisational strategy for the next 12 months in light of the recent leadership changes and financial situation.
In addition, the Resources Board reviews the risk process. These are also the routes for any additional areas of concern highlighted by the review of the plan or arising through changes in external circumstances, new activities or changes in the law. The risk is assessed and any further action is identified and parameters are agreed. The risk register, with any additional supporting information, is then reported to the Board quarterly through the Resources Board Report.
The Senior Management Team assesses day to day risks within the remit agreed by the Board, identifying areas of concern, undertaking risk analysis and agreeing decisions within agreed parameters.
The Trustees have reviewed the major risks that could impact on Contact. These are:-
## Increasing costs due to energy and cost of living crisis
Steps have been taken to mitigate the impact of increased energy costs. The Contact building is now closed on Mondays with not access to the building negating heating and lighting requirements. The building opening hours are also being more flexible around closing times when no scheduled activity is due to take place. Other increasing costs are being mitigated through a combination of longer term contracts that lock in prices for 2-4 years and reducing spending budgets and efficiency drives.
Inability to meet increased income targets
Income targets have been reduced in consultation with budget holders and budgets are being based on a confirmed funding with additional activity only going ahead when funding is secured.
Page 15
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
Cuts in existing public sector funding
Regular dialogue with our funders, reporting our social impact and reach and business planning around new commercial models of income
Inability to retain existing staff and recruit new staff due to low salaries
## Resources Board focus, review of salaries and cost base pending
Cash flow and management of cash flow
A careful management of cash flows is being undertaken by the Director of Finance with a phasing opf payments where required along with the planned postponement of other payments. Budgets have been reforecast to the end of the financial year to mitigate this along with an additional process for expenditure requiring sign off from the senior team. An overdraft facility is currently in place which we are seeking to increase to deal with any unforeseen expenditures.
Resources Board focus, implementing cost saving measures and developing additional fundraising capacity.
The Board of Trustees and staff undergo regular training and professional development to ensure they remain abreast of current developments, changes in statutes and best practice.
Statement of trustees' responsibilities
The trustees (who are also the directors of Manchester Young People's Theatre Ltd for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the parent charitable company and the group and of the incoming resources and application of resources, including its income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the parent charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the parent charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the parent charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Page 16
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Trustees' Report
Disclosure of information to auditor
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
The annual report was approved by the trustees of the charity on 6.3.2024 and signed on its behalf by:
................. ........................Ms B Ikpasaja
Chair of Trustees
Page 17
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Independent Auditor's Report to the Members of Manchester Young People's Theatre Ltd
## Opinion
We have audited the financial statements of Manchester Young People's Theatre Ltd (the 'charitable parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group's and parent charity's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Page 18
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Independent Auditor's Report to the Members of Manchester Young People's Theatre Ltd
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter 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 Chair's Report and Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Chair's Report and Trustees' Report have been prepared in accordance with applicable legal requirements.
## Matters on which we are required to report by exception
In the light of our 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 Chair's Report and the Trustees' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, 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 accounting records and returns; or
- certain disclosures of trustees remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of trustees' responsibilities (set out on page 16), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Page 19
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Independent Auditor's Report to the Members of Manchester Young People's Theatre Ltd
Auditor responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA’s (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non- compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of laws and regulations that affect the charity, focusing on those that has a direct effect on the financial statements or that has a fundamental effect on its operations. Key laws and regulations that were identified included the UK Companies Act and Charity Commission requirements.
We reviewed the Trustee’s meeting minutes for evidence of non- compliance with relevant laws and regulations.
We gained an understanding of the controls that the Trustees have in place to prevent and detect fraud. We enquired of the Trustees about any incidences of fraud that had taken place during the accounting period.
The risk if fraud and non- compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: misappropriation of cash and other assets.
We reviewed the financial statements disclosures and tested to supporting documentation to assess the compliance with relevant laws and regulations discussed above.
We enquired of the Trustees about actual and potential litigation and claims.
We performed analytical procedures to identify and unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s web-site at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Page 20
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Independent Auditor's Report to the Members of Manchester Young People's Theatre Ltd
Use of our report
This report is made solely to the charitable parent company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
...................................... S Lomax FCA (Senior Statutory Auditor) For and on behalf of Beever and Struthers, Statutory Auditor
Suite 9b, The Beehive Shadsworth Business Park Lions Drive Blackburn BB1 2QS
Date:6.3.2024
Page 21
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
Consolidated Statement of Financial Activities for the Year Ended 31 March 2023 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
|Note
Income and Endowmentsfrom:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investment income
6
Other income
7
Total income
Expenditureon:
Raising funds
8
Charitable activities
9
Trading activities
10
Total expenditure
Net expenditure
Transfers between funds
Taxation
Theatre Tax relief
Net movement in funds
Reconciliation offunds
Total funds brought forward
Total funds carried forward
25|Unrestricted
funds
£
3,320
1,264,667
186,612
2,417
64,618
1,521,634
(86,967)
(1,809,553)
(117,938)
(2,014,458)
(492,824)
(53,129)
23,089
(522,864)
695,215
172,351|Restricted
funds
£
-
141,841
-
-
-
141,841
-
(622,235)
-
(622,235)
(480,394)
53,129
-
(427,265)
7,508,062
7,080,797|Total
2023
£
3,320
1,406,508
186,612
2,417
64,618
1,663,475
(86,967)
(2,431,788)
(117,938)
(2,636,693)
(973,218)
-
23,089
(950,129)
8,203,277
7,253,148|Total
2022
£
2,622
1,656,875
97,538
98
225,633
1,982,766|
|---|---|---|---|---|
|||||(85,900)
(2,320,811)
(80,960)
(2,487,671)|
|||||(504,905)
-
-|
|||||(504,905)
8,708,182|
|||||8,203,277|
All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 25.
The notes on pages 26 to 52 form an integral part of these financial statements.
Page 22
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## (Registration number: 01066757) Consolidated Balance Sheet as at 31 March 2023
|Note
Fixedassets
Tangible assets
16
Currentassets
Debtors
18
Cash at bank and in hand
19
Creditors:Amounts falling due within oneyear
20
Netcurrent assets
Total assets lesscurrentliabilities
Creditors:Amounts falling dueafter morethan oneyear
21
Netassets
Funds of thegroup:
Restrictedincomefunds
Restricted funds
Unrestrictedincomefunds
Unrestricted funds
Totalfunds
25|2023
£
7,262,339
184,221
202,096
386,317
(260,414)
125,903
7,388,242
(135,094)
7,253,148
7,080,797
172,351
7,253,148|2022
£
7,577,110
317,620
712,296
1,029,916
(244,173)
785,743|
|---|---|---|
|||8,362,853
(159,576)
8,203,277|
|||7,508,062
695,215|
|||8,203,277|
The financial statements on pages 22 to 52 were approved by the trustees, and authorised for issue on 6.3.2024 and signed on their behalf by:
.......................... ............... Ms B Ikpasaja
Chair of Trustees
The notes on pages 26 to 52 form an integral part of these financial statements. Page 23
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## (Registration number: 01066757) Balance Sheet as at 31 March 2023
|Note
Fixedassets
Tangible assets
16
Investments
17
Currentassets
Debtors
18
Cash at bank and in hand
19
Creditors:Amounts falling due within oneyear
20
Netcurrent assets
Total assets lesscurrentliabilities
Creditors:Amounts falling dueafter morethan oneyear
21
Netassets
Funds of thecharity:
Restrictedincomefunds
Restricted funds
Unrestrictedincomefunds
Unrestricted funds
Totalfunds
25|2023
£
7,262,339
1
7,262,340
179,240
202,096
381,336
(255,434)
125,902
7,388,242
(135,094)
7,253,148
7,080,797
172,351
7,253,148|2022
£
7,577,110
-
7,577,110|
|---|---|---|
|||317,620
712,296
1,029,916
(244,173)
785,743|
|||8,362,853
(159,576)
8,203,277|
|||7,508,062
695,215|
|||8,203,277|
The financial statements on pages 22 to 52 were approved by the trustees, and authorised for issue on 6.3.2024 and signed on their behalf by:
............... Ms B Ikpasaja ..........................
Chair of Trustees
The notes on pages 26 to 52 form an integral part of these financial statements.
Page 24
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Consolidated Statement of Cash Flows for the Year Ended 31 March 2023
|Note
Cash flowsfrom operatingactivities
Net cash expenditure
Adjustmentsto cash flowsfromnon-cashitems
Depreciation
16
Investment income
6
Theatre tax relief
Workingcapitaladjustments
Decrease in debtors
18
Increase/(decrease) in creditors
20
(Decrease)/increase in deferred income
20
Net cash flows from operating activities
Cash flowsfrominvestingactivities
Interest receivable and similar income
6
Purchase of tangible fixed assets
16
Net cash flows from investing activities
Cash flowsfromfinancingactivities
Repayment of loans and borrowings
20
Theatre tax relief
22
Net cash flows from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March|2023
£
(950,129)
361,117
(2,417)
(23,089)
(614,518)
133,399
58,863
(48,434)
(470,690)
2,417
(46,346)
(43,929)
(18,670)
23,089
4,419
(510,200)
712,296
202,096|2022
£
(504,905)
353,587
(98)
-|
|---|---|---|
|||(151,416)
516,965
(156,580)
60,841
269,810|
|||98
(404,293)
(404,195)|
|||(25,454)
-
(25,454)|
|||(159,839)
872,135|
|||712,296|
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 26 to 52 form an integral part of these financial statements. Page 25
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 1 Legal status of the Charity
The charity is limited by guarantee, incorporated in England and Wales, and has no share capital. Consequently does not have share capital. In the event of Contact being wound up, the liability in resepct of the guarantee is limited to £1 per member of Contact.
The address of its registered office is: Contact Theatre Devas Street Oxford Road Manchester M15 6JA
Contact is the leading UK arts organisation to place young people’s leadership and decision making at the heart of everything. Our main areas of activity are:
- Providing transformative opportunities for young people
- Producing high quality new work with a focus on pressing social realities and presenting the future mainstream with a diverse and pioneering programme
- Operating a unique, ethical and welcoming building.
## 2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
## Basis of preparation
Contact meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## Basis of consolidation
The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 March 2023.
No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a loss after tax for the financial year of £950,129 (2022 - loss of £504,905).
Page 26
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
A subsidiary is an entity controlled by the charity. Control is achieved where the Charity has the power to govern the financial and operating policies of an entity so as to obtain the benefits from its activities.
During the year Contact Events Limited was incorporated and Contact Theatre subscribed for the share capital of £1.
Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.
## Going concern
The Trustees have carefully considered The Charity's going concern position with regard to its Arts Council England's National Portfolio Organisation (NPO) funding. Contact has recently been awarded funding for the next cycle of NPO funding which covers the three years from April 2023 to March 2026. Manchester City Council and the Greater Manchester Combined Authority (GMCA) have confirmed funding for the year to March 2024 and we are in active discussions with them about future funding, seeking uplift in both cases. Although the NPO funding continues at the same level, we continue to seek new funding partners and have been successful at increasing funds to support our core work.
The Charity via its Trading subsidiary is unlikely to meet its commercial profit targets for 2023-24 though we plan to develop these income streams further in 2024-25. This will have a potential impact on the Charity bottom line.
Contact's reserve policy requirement of free reserves covering three months' operating costs are not met at the end of the period. Contact has budgets in place to build free reserves toward three months operating costs over the current NPO funding period.
Contact has prepared mitigation steps including new financial and commercial strategies over the next two years to build free reserve and continue to focus on its mission by:
- Prioritising value for money programme.
- Continue to drive cost cutting exercises to reduce expenditure.
- New business model to generate voluntary and trading income.
- Robust financial monitoring and assessment using monthly management accounts.
- Financial health check through stringent monthly cash flow forecast and quarterly budget review.
- Maximise the efficiency of its trading subsidiary business model to generate commercial income.
The Trustees recognised the current financial position of Contact and having assessed the new financial and commercial strategies including the cash position and the mitigation steps - including the renewal of the current overdraft facility as a buffer are therefore satisfied that it is appropriate to prepare the financial statements on a going concern basis.
## Judgements and key accounting estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Page 27
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## Significant Judgements
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:
- Determination of whether there are indicators of impairment of Contact’s tangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance or charitable use of the asset.
- Determination of whether leases entered into by Contact as lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
## Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
- Determination of recoverability of trade debtors. A specific provision is made against certain debts where in the opinion of the trustees the debt is not fully recoverable.
- Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
## Income recognition policies
Items of income are recognised and included in the accounts when all of the following criteria are met:
- the Charity has entitlement to the funds;
- any performance conditions attached to the item(s) of income have been met or are fully within the control of the Charity;
- there is sufficient certainty that receipt of the income is considered probable; and
- the amount can be measured reliably.
Income received in advance of a theatrical performance or provision of other specified service is deferred until the criteria for income recognition are met.
## Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
Page 28
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## Deferred income
Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:
- The donor specifies that the grant or donation must only be used in future accounting periods; or
- The donor has imposed conditions which must be met before the charity has unconditional entitlement.
## Investment income
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the Bank.
## Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds comprise the costs of trading including commercial hires and their associated support costs and fundraising support costs.
- Expenditure on charitable activities includes the costs of performances, touring, participatory work and other activities undertaken to further the purposes of the Charity and their associated support costs. Expenditure on the capital redevelopment project is also included in this heading
- Other expenditure represents those items not falling into any other heading.
- Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## Allocation of support costs
Support costs are those functions that assist Contact’s work but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support Contact’s artistic programme and participatory activities. The bases on which support costs have been allocated are set out in note 10.
## Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.
## Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
## Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Page 29
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## Tangible fixed assets
Individual fixed assets costing £500 or more are initially recorded at cost and are depreciated over their estimated useful economic lives.
## Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate Long term leasehold buildings 2 - 10% Fixtures and fittings 20 - 50% Computer equipment 25 - 33% Motor vehicles 20%
Land is not depreciated.
Building redevelopment construction costs are capitalised in the year they occur and depreciated over the remaining length of the lease. Fixtures and fittings purchased as part of the capital redevelopment project are not depreciated until the date of use. Professional fees relating to the capital redevelopment project have been expensed in the year they occurred.
Donated fixed assets are recognised at fair value which is the amount Contact would have been willing to pay for the items on the open market.
## Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## Cash and cash equivalents
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## Creditors and provisions
Creditors and provisions are recognised where Contact has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Page 30
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
## Fund accounting
Unrestricted income funds are available to spend on activities that further any of the purposes of the charity.
Restricted funds are donations which the donor has specified are to be solely used for paticular areas of the Charity's work or for specific artistic projects being undertaken by the Charity.
## Operating leases
Contact classifies the lease of printing equipment as an operating lease; the title to the equipment remains with the lessor and the equipment is replaced every 5 years whilst the economic life of such equipment is normally 10 years. Rental charges are charged on a straight line basis over the term of the lease.
## Pensions and other post retirement obligations
Contact contributes to a group money purchase defined contribution pension scheme operated by The People's Pension. New and existing employees are automatically enrolled into the money purchase scheme unless they have excercised their right to opt out of scheme membership.
Employees joining the money purchase pension scheme operated by The People's Pension, contract directly with the insurance company. Contact makes a matching contribution of 3% of salary to this pension scheme and acts as agent in collecting and paying over employee pension contributions. The contributions made for the accounting period are treated as an expense and were £21,997 (2022: £16,455). There were no contributions outstanding at the balance sheet date
## Financial instruments
## Classification
Contact only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. The financing charge to expenditure is at a constant rate calculated using the effective interest method.
Page 31
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
- 3 Income from donations and legacies
|Donations and legacies;
Individual donations and regular giving|Unrestricted
funds
General
£
3,320
3,320|Total
2023
£
3,320
3,320|Total
2022
£
2,622|
|---|---|---|---|
||||2,622|
Income from donations includes Gift Aid from individual giving. From time to time Contact benefits from the involvement and support of volunteers. In accordance with accounting standards, the economic contribution of general volunteers is not recognised in the accounts.
- 4 Income from charitable activities
|Grant income from Core Funders
Operation of building and related
artistic programme
Provision of participatory
activities
Health and science|Unrestricted
funds
General
£
1,101,377
156,053
7,237
-
1,264,667|Restricted
funds
£
-
16,537
107,185
18,119
141,841|Total
2023
£
1,101,377
172,590
114,422
18,119
1,406,508|Total
2022
£
1,101,377
136,572
291,927
126,999|
|---|---|---|---|---|
|||||1,656,875|
See detailed breakdown in the following tables.
Page 32
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
Grant Income from Core Funders
|GrantIncomefrom Core Funders||
|---|---|
|Arts Council
GMCA
Manchester City Council
University of Manchester
Incomefrom artisticprogramme
Income from theatre performances
Income from touring productions
Manchester City Council - Time Stamp
RYTDS|Unrestricted Restricted Total
Total
Funds
FundsFunds
Funds
2023
2023 2023
2022
£
£ £
£
933,297
- 933,297
933,297
97,000
- 97,000
97,000
30,000
- 30,000
30,000
41,080
- 41,080
41,080|
||1,101,377
- 1,101,377
1,101,377|
||Unrestricted Restricted Total
Total
Funds
FundsFunds
Funds
2023
2023 2023
2022
£
£ £
£
156,053
- 156,053
101,362
-
- -
9,567
-
3,100 3,100
2,900
-
13,437 13,437
22,743|
||156,053
16,537 172,590
136,572|
Page 33
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
Income for Provision of Participatory Activities
|||Unrestricted|Restricted|Total|Total|Total|
|---|---|---|---|---|---|---|
|||Funds|Funds|Funds||Funds|
|||2023|2023|2023||2022|
|||£|£|£||£|
|BBC reverse mentoring||-|3,750||3,750|-|
|C Change||-|-||-|6,000|
|Creative Protagonist||-|-||-|3,440|
|Far Apart UK||-|-||-|18,600|
|Ironmongers||-|-||-|4,304|
|Holiday Activity Fund||-|4,800||4,800|-|
|Other Income||6,637|-||6,637|2,980|
|Steel Foundation||-|-||-|15,000|
|Studio School||600|-||600|800|
|The Agency 21-26||-|108,634|108,634||140,848|
|Agency Alumni|||(20,000)|(20,000)||-|
|The Agency Film||-|-||-|5,000|
|Young Manchester Holiday Club||-|-||-|10,000|
|Youth & Play Creative Connections
Manchester|Young|
-|10,000|10,000||44,957|
|Youth Music||-|-||-|39,998|
|||7,237|107,184|114,421||291,927|
Page 34
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
Income for Health & Science Activities
|IncomeforHealth & ScienceActivities|||||
|---|---|---|---|---|
|Curiosity Fund
GMCDP
GMCVO - Traua responsive communities
MCC - Covid Impact Fund
MCC - First 1000 Days
More Than Skin Deep - People's Palace
U o M - Devices
Wellcome Trust
5 Incomefrom other tradingactivities
Trading income;
Accountancy services
Bar & Catering
Hire of spaces
Office hires
Consultancy services
Retail
6 Investmentincome
Other investment income|Unrestricted Restricted
Total
Total
FundsFunds
Funds
Funds
2023 2023
2023
2022
£ £
£
£
- 7,985
7,985
10,430
- 3,934
3,934
6,970
- 5,000
5,000
10,000
- -
-
24,885
- -
-
50,000
- 1,200
1,200
-
- -
-
5,000
- -
-
19,714||||
|||- 18,119
18,119||126,999|
|||Unrestricted
funds
General
£
37,517
19,461
115,584
7,875
-
6,175|Total
2023
£
37,517
19,461
115,584
7,875
-
6,175|Total
2022
£
11,083
5,425
43,382
13,500
21,875
2,273|
|||186,612|186,612|97,538|
|||Unrestricted
funds
General
£
2,417|Total
2023
£
2,417|Total
2022
£
98|
Page 35
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
- 7 Other income
|Coutts Foundation revenue grant
HMRC CJRS
Insurance claim
Kickstart jobs scheme
MCC - Discretionary Grants
ACE Culture Recovery Fund
TfGM - cycling infrastructure
Coutts Foundation cost of living payment|Unrestricted
funds
General
£
50,000
-
9,618
-
-
-
-
5,000
64,618|Total
2023
£
50,000
-
9,618
-
-
-
-
5,000
64,618|Total
2022
£
50,000
1,119
25,426
6,032
41,671
96,555
4,830
-|
|---|---|---|---|
||||225,633|
- 8 Expenditure on raising funds
|Fundraising support costs|Unrestricted
funds
General
£
86,967
86,967|Total
2023
£
86,967
86,967|Total
2022
£
85,900|
|---|---|---|---|
||||85,900|
Page 36
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 9 Expenditure on charitable activities
|Salaries
Facilitator fees, project costs &
expenses
Travel, accommodation &
subsistence
Production & touring costs
Artists fees and box office
splits
Commissioning and artist
development
Box office and marketing costs
Premises and technical costs
Finance charges
Recruitment & training
Bad debts and write offs
Depreciation
Governance costs
Support costs|Operation
ofbuilding
andrelated
artistic
programme
Provision of
participatory
activities
£
£
766,287
130,894
-
159,537
12,614
8,018
8,199
-
138,407
-
27,850
-
131,293
-
267,010
-
19,613
-
13,669
-
9,561
-
361,117
-
29,708
-
276,765
-
2,062,093
298,449|Healthand
science
£
22,839
48,348
59
-
-
-
-
-
-
-
-
-
-
-
71,246|Total
2023
£
920,020
207,885
20,691
8,199
138,407
27,850
131,293
267,010
19,613
13,669
9,561
361,117
29,708
276,765
2,431,788|Total
2022
£
723,194
372,730
19,211
54,316
117,674
12,486
82,833
283,084
10,712
53,893
-
353,587
21,866
215,225|
|---|---|---|---|---|
|||||2,320,811|
Of the £2,431,788 expenditure in 2022-23 (2022: £2,320,811) £1,809,533 was charged to unrestricted funds (2022: £1,406,029) and £622,235 to restricted funds (2022: £914,782).
10 Expenditure on trading activities
|Note
Commercial trading operation costs|Unrestricted
funds
General
£
117,938
117,938|Total
2023
£
117,938
~~117,938~~|Total
2022
£
80,960|
|---|---|---|---|
||||80,960|
Page 37
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 11 Analysis of governance and support costs
## Charitable activities expenditure
|Charitableactivitiesexpenditure|||||
|---|---|---|---|---|
|Basis ofallocation
Catering for Board &
Trustee Meetings
Direct
Salaries, wages and related
costs
Staff time
General office costs
Direct
Audit and tax fees
Direct|Governance
Function
£
110
7,197
-
22,401
29,708|General
support
£
-
177,416
99,349
-
276,765|Total
2023
£
110
184,613
99,349
22,401
306,473|Total
2022
£
170
190,674
31,802
14,445|
|||||237,091|
## 12 Net incoming/outgoing resources
Net outgoing resources for the year include:
|Operating leases - plant and machinery
Audit fees
Tax fees
Depreciation of fixed assets|2023
£
802
19,951
2,451
361,117|2022
£
1,488
9,960
4,485
353,587|
|---|---|---|
## 13 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the group during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
Page 38
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 14 Staff costs
The aggregate payroll costs were as follows:
|Staff costsduringtheyearwere:
Wages and salaries
Social security costs
Pension costs
Redundancy costs|2023
£
1,143,524
101,258
21,997
12,002
1,278,781|2022
£
971,985
81,551
16,455
-
1,069,991|
|---|---|---|
The average monthly head count was 34 staff (2022: 38 staff) and the average monthly number of full-time equivalent employees (including casual and part-time staff) during the year was as follows:
|Permanent staff including part time staff on permanent basis|2023
No
34|2022
No
38|
|---|---|---|
No employee received emoluments of more than £60,000 (2022: nil) during the year. Pension costs are allocated to activities in proportion to the related staffing costs incurred.
The key management personnel of Contact comprise the Trustees, the Artistic Director/Chief Executive, Head of Creative Development, Head of Finance, Head of Commercial & Visitor Experience, Head of Marketing & Communications and Head of Production. The total employee benefits of the key management personnel of the group were £264,625 (2022 - £240,300).
## 15 Corporation Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received withing categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extend that such income or gain are applied exclusively to charitable purposes.
Where the Charity's trading turnover is higher than the small trading exemption, UK corporation tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted at the balance sheet date on trading profits.
It's subsidiary Contact Events Limited is subject to corporation tax provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted at the balance sheet date.
Page 39
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 16 Tangible fixed assets
|GroupandCharity
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net bookvalue
At 31 March 2023
At 31 March 2022|Leasehold
Landand
buildings
£
10,448,349
17,159
10,465,508
3,085,235
307,059
3,392,294
7,073,214
7,363,114|Furniture and
equipment
£
259,967
-
259,967
115,750
14,614
130,364
129,603
144,217|Motorvehicles
£
15,469
-
15,469
15,469
-
15,469
-
-|Computer
equipment
£
164,711|Total
£
10,888,496
46,346
10,934,842
3,311,386
361,117
3,672,503
7,262,339|
|---|---|---|---|---|---|
|||||29,187
193,898||
|||||94,932
39,444||
|||||134,376||
|||||59,522||
|||||69,779|7,577,110|
17 Fixed asset investments
## Charity
Shares in group undertakings and participating interests
|Sharesingroup undertakingsandparticipatinginterests|||
|---|---|---|
|Cost
Additions
At 31 March 2023
Net bookvalue
At 31 March 2023|Subsidiary
undertakings
£
|2023
Total
£
1
1
1|
||~~1~~
1||
||1||
Subsidiaries, associates and other investments Details of the investments in which the parent company has an interest of 20% or more as follows:
Page 40
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
Subsidiary undertakings Class of share Percentage of shares held Contact Events Limited Ordinary £1 100%
The registered office of the subsidiary is Devas Street, Oxford Road, Manchester, M15 6JA.
## 18 Debtors
|18Debtors||
|---|---|
|2023
2022
£
£
202,096
712,296
Group
2023
2022
£
£
Trade debtors
20,067
113,740
Prepayments
85,171
55,572
Accrued income
60,519
146,917
VAT recoverable
18,464
1,391
184,221
317,620
19 Cash and cashequivalents
Group
Cash at bank
20Creditors:amounts falling due within oneyear
Group
2023
2022
£
£
Trade creditors
102,801
90,878
Manchester City Council Loan
20,782
14,970
Due to group undertakings
-
-
Other taxation and social security
25,917
27,129
Other creditors
25,639
12,703
Accruals
72,868
37,652
Deferred income
12,407
60,841
260,414
244,173|Charity
2023
2022
£
£
15,086
113,740
85,171
55,572
60,519
146,917
18,464
1,391|
||179,240
317,620|
||2023
2022
£
£
202,096
712,296
Charity
Charity
2023
2022
£
£
102,801
90,878
20,782
14,970
3,209
-
25,917
27,129
25,638
12,703
72,868
37,652
4,219
60,841|
||255,434
244,173|
Manchester City Council has provided a £200,000 loan at a rate of 2.7% + the EC Reference ~~Rate which is the~~ variable rate. Manchester City Council holds Quasi-security over The Manchester Young People's Theatre building, whereby a negative pledge is in place.
## Deferred income
Deferred income comprises advance ticket sales for performances of shows and income for projects due to take place after 31 March 2023 and is analysed as follows:
Page 41
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
|Deferred income at 1 April 2022
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end|2023
£
60,841
12,407
(60,841)
12,407|2022
£
13,256
57,766
(10,181)|
|---|---|---|
|||60,841|
21 Creditors: amounts falling due after one year
|Other loans|Group
2023
2022
£
£
135,094
159,576|Charity
2023
2022
£
£
135,094
159,576|
|---|---|---|
See note 19 for details of loan security.
Loans repayable by instalments
|Loansrepayablebyinstalments||
|---|---|
|Due within one year
Due in one to two years
Due in two to five years
Due in over five years|2023
2022
£
£
20,782
14,970
21,541
20,597
69,453
66,411
44,100
72,569|
||155,876
174,547|
Manchester City Council has provided a £200,000 loan at a rate of 2.7% + the EC Reference Rate which is the variable rate. Manchester City Council holds Quasi-security over The Manchester Young People's Theatre building, whereby a negative pledge is in place.
Page 42
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 22 Obligations under leases and hire purchase contracts
## Operating lease commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
|Other
Within one year
Between one and five years|Group
2023
£
2022
£
186 802
- 186
186 988|Charity
2023
£
2022
£
186 802
- 186
~~186~~988|Charity
2023
£
2022
£
186 802
- 186
~~186~~988|
|---|---|---|---|
||||988|
## 23 Commitments
There were no future capital commitments in place at 31 March 2023 (2022: £nil).
## 24 Custodian Funds
|24 CustodianFunds||
|---|---|
|Hate Crime Awareness
Uniquely Us
Miray Sidhom commission
Resourcing Racial Justice
Dawn to the Light
Rory Aaron: This Town|Balances
Held at 1
April2022
Funds
Received
FundsPaid
Balances
Held at 31
March2023
£ £ £ £
40 - - 40
626 - - 626
3,773 2,332 (6,105) -
2,550 - (2,550) -
- 20,000 (3,000) 17,000
- 15,052 (12,755) 2,297|
||6,989 37,384(24,410)19,963|
Contact acted as a custodian trustee during the year for 6 independent projects run by participants of various Contact programmes.
All the funds are held as cash and are segregated from the charity’s cash holdings.
Page 43
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 25 Funds
|GroupandCompany|||||||
|---|---|---|---|---|---|---|
||Balanceat|||||Balanceat|
||1April|Incoming|Resources|||31March|
||2022|resources|expended|Transfers|Taxation|2023|
||£|£|£|£|£|£|
|Unrestrictedfunds|||||||
|General|||||||
|General fund|535,215|1,521,634|(2,014,458)|50,947|23,089|116,427|
|Designated|||||||
|Capital Redevelopment|||||||
|Project|160,000|-|-|(104,076)|-|55,924|
||||||||
|Totalunrestrictedfunds|695,215|1,521,634|(2,014,458)|(53,129)|23,089|172,351|
|Restrictedfunds|||||||
|Building Fund|7,245,113|-|(332,692)|119,598|-|7,032,019|
|BBC reverse mentoring|-|3,750|(2,160)|-|-|1,590|
|The Agency 2021-2026|19,236|108,635|(90,974)|(32,924)|-|3,973|
|The Agency Alumni|24,425|(20,000)|(1,896)|-|-|2,529|
|Media Drop 2.0 (Youth|||||||
|Music)|4,059|-|(4,059)|-|-|-|
|Capital Refurbishment|||||||
|Project|33,545|-|-|(33,545)|-|-|
|Diverse Actions (Live|||||||
|Art UK)|1,206|-|-|-|-|1,206|
|Capsule 2119|880|-|-|-|-|880|
|Wellcome Trust (Health|||||||
|& Science Producer)|10,973|-|(10,973)|-|-|-|
|Curiosity Fund|4,706|7,985|(12,191)|-|-|500|
|Steel Foundation|4,202|-|(4,202)|-|-|-|
|GMCDP|5,090|3,934|(9,024)|-|-|-|
|GMCVO - Trauma|||||||
|responsive communities|10,000|5,000|(9,540)|-|-|5,460|
|RTYDS Regional|||||||
|Theatre Young Directors|||||||
|Scheme|3,962|13,437|(17,399)|-|-|-|
|Ironmongers|2,654|-|(2,654)|-|-|-|
|Manchester City Council|||||||
|Health & Care|||||||
|Commissioning|16,863|-|-|-|-|16,863|
|Youth & Play (YM)|||||||
|Creative Connections|12,844|10,000|(11,562)|-|-|11,282|
|||Page|44||||
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
|MCR Active - Holiday
Action Fund|Balanceat
1April
2022
£
-
-
592
9,306
2,900
14,711
14,592
66,203
7,508,062
8,203,277|Incoming
resources
Resources
expended
£
£
4,800
(2,343)
1,200
(1,200)
-
(592)
-
(9,306)
3,100
(6,000)
-
(14,711)
-
(14,592)
-
(64,165)
141,841
(622,235)
1,663,475
(2,636,693)|Transfers
£
-
-
-
-
-
-
-
-
53,129
-|Taxation
£
-
-
-
-
-
-
-
-
-
23,089|Balanceat
31March
2023
£
2,457
-
-
-
-
-
-
2,038|
|---|---|---|---|---|---|
||-
592
9,306
2,900
14,711
14,592
66,203|||||
|||||||
|||||||
|||||||
|||||||
|||||||
|||||||
||7,508,062||||7,080,797|
||8,203,277||||7,253,148|
There were a number of transfers between funds in the year.
Significant transfers included the de-designation of £104,076 of the designated capital fund, which was no longer necessary having secured additional capital funding in prior periods. There was also a £86,053 transfer to restricted funds to reflect the nature of infrastructure assets.
|Unrestrictedfunds
General
General fund
Designated
Capital Redevelopment
Project
Totalunrestrictedfunds
Restrictedfunds
Building Fund
TFGM active travel
The Agency Phase 3
The Agency extension 1
The Agency extension 2
The Agency 2021-2026
The Agency Alumni
Media Drop 2.0 (Youth
Music)|Balance at 1
April2021
£
429,192
160,000
589,192
7,240,810
-
69,236
5,015
31,934
-
-
14,576|Incoming
resources
£
1,460,122
-|Resources
expended
Transfers
31March
2022
£
£
£
(1,550,591)
196,492
535,215
- - 160,000
Balanceat|
|---|---|---|---|
|||1,460,122|(1,550,591)196,492 695,215|
|||-
4,830
-
-
-
110,518
20,000
39,998|(323,411)
327,714
7,245,113
(1,681)
(3,149)
-
(3,608)
(65,628)
-
(1,597)
(3,418)
-
(31,934)
-
-
(63,358)
(27,924)
19,236
-
4,425
24,425
(50,515)
-
4,059|
Page 45
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
||||||Balanceat|
|---|---|---|---|---|---|
||Balance at1|Incoming|Resources||31March|
||April2021|resources|expended|Transfers|2022|
||£|£|£|£|£|
|Capital Refurbishment||||||
|Project|383,796|-|(22,537)|(327,714)|33,545|
|Diverse Actions (Live Art||||||
|UK)|1,206|-|-|-|1,206|
|Capsule 2119|880|-|-|-|880|
|Wellcome Trust (Health &||||||
|Science Producer)|53,005|19,714|(61,746)|-|10,973|
|Curiosity Fund|3,438|10,430|(9,162)|-|4,706|
|Steel Foundation|-|15,000|(10,798)|-|4,202|
|GMCDP|-|6,970|(1,880)|-|5,090|
|GMCVO - Trauma||||||
|responsive communities|-|10,000|-|-|10,000|
|RTYDS Regional Theatre||||||
|Young Directors Scheme|-|22,743|(18,781)|-|3,962|
|Ironmongers|-|4,304|(1,650)|-|2,654|
|NW Youth People's||||||
|Development Trust|9,324|-|(9,324)|-|-|
|The House is on Fire (Young||||||
|Manchester)|8,484|-|(8,484)|-|-|
|Here & Now (Arts Council||||||
|England / Future Arts||||||
|Centre)|2,000|-|(2,000)|-|-|
|Manchester City Council||||||
|Health & Care||||||
|Commissioning|16,863|-|-|-|16,863|
|Young Manchester Holiday||||||
|Club|-|10,000|(10,000)|-|-|
|Youth & Play (YM)||||||
|Creative Connections|14,040|44,957|(46,153)|-|12,844|
|Creative Protagonists||||||
|(Reclaim)|4,959|3,440|(8,399)|-|-|
|MCEP Youth Voice Pilot|1,750|-|(1,750)|-|-|
|Future Fires|7,186|-|(7,186)|-|-|
|Studio School|4,428|800|(5,228)|-|-|
|C Change project|2,850|6,000|(8,258)|-|592|
|People's Palace far Apart|7,464|18,600|(16,758)|-|9,306|
|Time Stamp|-|2,900|-|-|2,900|
|Covid Impact Fund|-|24,885|(10,174)|-|14,711|
|First 1000 days|-|50,000|(35,408)|-|14,592|
|ACE Culture Recovery Fund|57,656|96,555|(96,555)|(57,656)|-|
|Weston Culture Fund|178,090|-|(68,745)|(43,142)|66,203|
Page 46
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
|Totalrestrictedfunds
Total funds|Balance at1
April2021
£
8,118,990
8,708,182|Incoming
resources
£
522,644
1,982,766|Resources
expended
£
(937,080)
(2,487,671)|Transfers
£
(196,492)
-|Balanceat
31March
2022
£
7,508,062
8,203,277|
|---|---|---|---|---|---|
Name of unrestricted fund Description, nature and purposes of the fund General fund[The ' unrestricted reserves' after allowing for all designated ] funds and including unrestricted fixed assets
Designated fund Designated fund for Capital Redevelopment Project
Page 47
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
Name of restricted fund Description, nature and purposes of the fund
Building Fund - The building fund was established to rebuild and extend the existing theatre and was funded by the Arts Council of England. Expenditure represents the annual depreciation charge. Capital Redevelopment costs are transferred to Building Fund.
BBC reverse mentoring - The BBC is funding a reverse mentoring scheme where young people provide mentoring for employees of the BBC.
The Agency (The National Lottery Community Fund - Reaching Communities) - Reaching Communities funded the continuation of The Agency Project.
Media Drop 2.0 - Youth Music funded the Media Drop 2.0 music project and the continuation and expansion of the music programme.
Capital Redevelopment Project - This fund consists of grants and donations to support the capital redevelopment project.
Diverse Actions (Live Art UK) - Contact is a partner in the Live Art UK Diverse Actions project which commissions BAME live art artists to make new work.
Capsule 2119 (PRS Foundation) - The PRS Foundation is supporting the creation and performance of 16 new songs that would subsequently become a time capsule for the year 2119 placed within Contact’s refurbished building.
Wellcome Trust (Health & Science Producer) - The Wellcome Trust funded the post of Health & Science Producer.
Curiosity Fund - Curiosity, a partnership between BBC Children in Need and Wellcome, is funding a new arts project for children aged 15-16 within an area of high deprivation who may be disabled or experience mental health.
Steel Foundation - Steel Foundation are funding music workshops for young people.
GMCDP - GMCDP funded a creative development programme for neurodivergent, Deaf and disabled young people. The outcome was a performance focussed on disability history called DIS:Play.
GMCVO - Trauma responsive communities - GMCVO funded The Arts and Trauma network. A monthly meeting exploring best practice for trauma informed work. The network includes 16 network members from across Greater Manchester.
RTYDS Regional Theatre Young Directors Scheme - The Regional Theatre Young Directors Scheme is funding a residency for an assistant director at Contact for 18 months. Ironmongers - The Ironmongers Foundation has awarded funding to encourage young people to get more involved in the arts and theatre.
Manchester City Council Health & Care Commissioning - The MCC Health & Care Commissioning body was disbanded before the project could take place. We have received permission from MCC to use the funds to support our existing projects work.
Young Manchester-Youth & Play Creative Connections - Young Manchester is funding a programme for youth workers and arts professionals to share best practice and build new partnerships.
MCR Active - Holiday Action Fund - MCR Active is funding a programme to provide arts workshops for young people during school term breaks.
More Than Skin Deep- People's Palace Projects - People's Palace Projects funded a performance of care-experienced young people talking about change they'd like to see in the care system.
C Change Project - Manchester City Council is funding a production of a show on climate change.
People's Palace Far Apart - People’s Palace Projects is funding a research project to look beyond lockdown to understand how UK Arts organisations can continue to support young people’s wellbeing during Covid-19. Time stamp - Manchester City Council is funding a production of a show on young people's experiences of lockdown during the Covid-19 pandemic.
Covid impact fund - One Manchester is funding a report into the impact of the Covid-19 pandemic on the mental health of staff and participants at Contact.
First 1000 days - One Manchester is funding a creative development project for parents in Harphurhey and Moston. The outcome was a week long of activities called Kids Fun Zone at Harphurhey Neighbourhood Project
Page 48
## Manchester Young People's Theatre Ltd
known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
Weston Culture Fund - Garfield Weston Foundation funded cultural organisations to restart their work after Covid and to re-engage audiences it supported and outdoor programme of activities and events.
Page 49
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
## 26 Analysis of net assets between funds
## Group
|Group||||
|---|---|---|---|
|Tangible fixed assets
Cash at bank and in hand
Other current assets/(liabilities)
Total net assets
Tangible fixed assets
Cash at bank and in hand
Other current assets/(liabilities)
Total net assets
27 Net debtreconciliation
Group
Cash at bank and in hand
Loan from Manchester City Council
Net debt|Unrestrictedfunds
General
£
Designated
£
90,007 -
98,015 55,924
(71,595)-
116,427 55,924
Unrestrictedfunds
General
£
Designated
£
78,464 -
513,289 160,000
(56,538)-
535,215 160,000
At 1April
2022
£
712,296
(174,547)
537,749|Restricted
funds
£
7,172,332
48,157
(139,692)
7,080,797
Restricted
funds
£
7,498,646
39,007
(29,591)
7,508,062
Financingcash
flows
£
(510,200)
18,671
(491,529)|Total fundsat
31March
2023
£
7,262,339
202,096
(211,287)|
||||7,253,148|
||||Total fundsat
31March
2022
£
7,577,110
712,296
(86,129)|
||||8,203,277|
||||At 31March
2023
£
202,096
(155,876)
46,220|
Page 50
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
28 Related party transactions
Contact and the University of Manchester have an agreement which allows for Contact to lease the building from the University, to access some facilities and services, and to collaborate with the University on programming some events for and by students. On this basis Contact feels it is appropriate to disclose transactions with the University as related party transactions.
The University of Manchester awarded grants to Contact of £41,080 (2022: £41,080). The Arts Council of England which provides core funding to Contact has a charge over the land and buildings of Contact.
Contact provided Creative Experts services, artistic services and hire of spaces of £13,140 (2022: £6,650) to the University of Manchester. There was an outstanding balance due from the University of £2,370 as at 31 March 2023 (2022: £49,296). Contact purchased goods and services from the University of Manchester of £6,202 (2022: £0). There was an outstanding balance due to the University as at 31 March 2023 of £0 (2022: £0).
Mr Joshua Wilkinson, Ms Ali Wilson, Mr Junior Akinola, Mr Christie Cremin and Ms Faidat Ope, all trustees of Contact, were engaged on a freelance basis for various projects throughout the year, although not in their role as trustees. Mr Wilkinson and his joint enterprises received £12,833 (2022: £20,612), Ms Wilson received £809 (2022: £2,517), Mr Akinola received £5,540 (2022: £2,980), Mr Cremin received £375 (2022: £0), Ms Ope received £550 (2022: £572), and Ms Flynn received £0 (2022: £100). There were no outstanding balances due to any trustees as at 31 March 2023 (2022: £nil).
Donations from trustees amounted to nil in the year (2022: £nil).
Page 51
## Manchester Young People's Theatre Ltd
## known as Contact Theatre
## Notes to the Financial Statements for the Year Ended 31 March 2023
29 Comparative Statement of Financial Activities
|29ComparativeStatement of FinancialActivities||||
|---|---|---|---|
|Note
Income and Endowmentsfrom:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investment income
6
Other income
7
Total income
Expenditureon:
Raising funds
8
Charitable activities
9
Trading activities
10
Total expenditure
Net expenditure
Transfers between funds
Net movement in funds
Reconciliation offunds
Total funds brought forward
Total funds carried forward
25|Unrestricted
funds
£
2,622
1,235,616
97,538
98
124,248
1,460,122
(85,900)
(1,406,029)
(58,662)
(1,550,591)
(90,469)
196,492
106,023
589,192
695,215|Restricted
funds
£
-
421,259
-
-
101,385
522,644
-
(914,782)
(22,298)
(937,080)
(414,436)
(196,492)
(610,928)
8,118,990
7,508,062|Total
2022
£
2,622
1,656,875
97,538
98
225,633
1,982,766|
||||(85,900)
(2,320,811)
(80,960)
(2,487,671)|
||||(504,905)
-|
||||(504,905)
8,708,182|
||||8,203,277|
Page 52