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2023-05-31-accounts

Charity registration number 507772

Company registration number 01371275 (England and Wales)

DANESIDE COMMUNITY THEATRE TRUST LIMITED

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2023

DANESIDE COMMUNITY THEATRE TRUST LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs L F Lee
Mrs C Garber
Mr A N Bours
Mr P M Drage
Mrs A S Bradley
Mrs V Dorgan
Mr A J Millington
Secretary Mrs L F Lee
Charity number 507772
Company number 01371275
Principal address Daneside Theatre Trust Ltd
Park Road
Congleton
Cheshire
England
CW12 1DP
Registered office Daneside Theatre Trust Ltd
Park Road
Congleton
Cheshire
England
CW12 1DP
Independent examiner Amanda Grint, FCCA
Hammond McNulty LLP
Bank House
Market Square
Congleton
Cheshire
England
CW12 1ET

DANESIDE COMMUNITY THEATRE TRUST LIMITED

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 14

DANESIDE COMMUNITY THEATRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MAY 2023

The trustees present their annual report and financial statements for the year ended 31 May 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's deed of trust and memorandum of association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The charity's objective and its principal activity continues to be that of the promotion, maintenance, improvement and advancement of education in the Borough of Congleton by means of the provision of a theatre.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

DANESIDE COMMUNITY THEATRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023

Achievements and performance

Significant activities and achievements against objectives

Each year we review the quality and range of the in-house facilities which we make available to our users.

This year the flooring in studio 1 was repaired and the flooring in Studio 2 has been replaced. The general upkeep of the Theatre and its facilities have been maintained.

In October 2022 energy prices rose significantly.

The gas contract with Total Energies was renewed on the 1st April 2023 until 31st March 2025 for 2 years (originally 3.9p/kWh to 17.81p/kWh, no standing charge).

The electric contract with British Gas was renewed on the 1st November 2022 until 31st October 2023 for 1 year (originally 15.24p/kWh standing charge 48.55p/day to 66.95p/kWh standing charge 57.26p/day). The Theatre was eligible for the Government Energy Bill Relief Scheme which was a great help in reducing the bills from October to March 2023 however, in April 2023 although we were still eligible the discount has been reduced.

There has been an increase in the Theatre's Water rates and a lot of suppliers have put up their prices.

We are always reviewing costs and check for the best value for money option before placing an order. Most expenditure comes out of income and this year the costs of these increases were met and, hopefully will be the case for the coming year.

This year we have been fortunate to receive the following donations:

Paul Birdsall £50 In Memory of Jean Clarke £340 The estate of Mrs S M Clarke £110,000 _ Total £110,390

The donations we have received have been invested in a bank or building society with a good rate of interest.

We are always looking for new and innovative ways in which the Theatre can be used for the benefit of the people of Congleton, and we will continue to offer productions staged by both amateur and professional groups.

The new cinema and projector are being well used. We can screen a variety of films that appeal to a wider audience, and this encourages different age groups to attend.

The Daneside Studios are now fully open and are being used by various groups in the local area.

A big thank you to everyone for using the bar on show nights, the income from the bar goes towards the upkeep of the Theatre and helps to keep the hire charges down.

The local societies, amateur groups and d dance schools receive a lot of support from the people of Congleton for the excellent and wide variety of shows they stage.

The Theatre is grateful for the support they receive and would like to take this opportunity to wish everyone a successful season in 2023/24.

Financial review

The trust holds surplus capital on deposit with UK bank and building societies. It is not the Trust's policy to take investment risks any accumulated funds will be held in deposit accounts offering best terms.

On 31st May 2023, the charity held reserves of £855,775 of this £640,166 is held in fixed assets and £212,702 is held as cash in the bank.

DANESIDE COMMUNITY THEATRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023

Reserves policy

The amount the Trust has determined should be the minimum held as reserve is £50,000. There should be sufficient funds available to ensure we have 24 months to cover our outgoings and to protect the Trust against unexpected high costs. This could be a business continuation issue due to flood or fire, or an urgent repair bill for any part of the building or the building infrastructure.

Structure, governance and management

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The trust was incorporated on 31 May1978, and registered as a charity on 14th July 1978. The company was established under Memorandum of association which established the objects and powers of the charitable company.

The liability of full members of the society is an understanding to contribute to the assets of the Trust in the event of it being wound up while a member, or within one year after ceasing to be a member, a sum not exceeding one pound.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mrs L F Lee

Mrs C Garber

Mr A N Bours Mr P M Drage Mrs A S Bradley Mrs V Dorgan Mr A J Millington

Recruitment and appointment of trustees

New Trustees are appointed from theatre groups, friends of the theatre and members. The Trustees retire by rotation, any Trustee offering themselves up for re-election, or a new person wishing to become a Trustee are voted onto the Trust at the AGM by the members of the Company.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The trustees' report was approved by the Board of Trustees.

Mr A J Millington

Trustee

29 February 2024

DANESIDE COMMUNITY THEATRE TRUST LIMITED

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF DANESIDE COMMUNITY THEATRE TRUST LIMITED

I report to the trustees on my examination of the financial statements of Daneside Community Theatre Trust Limited (the charity) for the year ended 31 May 2023.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Amanda Grint, FCCA

Hammond McNulty LLP Bank House Market Square Congleton Cheshire CW12 1ET England

Dated: 29 February 2024

DANESIDE COMMUNITY THEATRE TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MAY 2023

Unrestricted Unrestricted
funds funds
2023 2022
Notes £ £
Income from:
Donations and legacies 3 110,391 25,201
Charitable activities 4 67,241 46,303
Other trading activities 5 38,334 13,660
Investments 6 1,000 73
Total income 216,966 85,237
Expenditure on:
Raising funds 7 15,243 3,534
Charitable activities 8 86,499 58,871
Other expenditure 12 589 124
Total expenditure 102,331 62,529
Net income and movement in funds 114,635 22,708
Reconciliation of funds:
Fund balances at 1 June 2022 741,140 718,432
Fund balances at 31 May 2023 855,775 741,140

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

DANESIDE COMMUNITY THEATRE TRUST LIMITED

BALANCE SHEET

AS AT 31 MAY 2023

Notes
Fixed assets
Tangible assets
14
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
The funds of the charity
Unrestricted funds		 2023
£
3,505
6,833
212,702
223,040
7,431		 £
640,166
215,609
855,775
855,775
855,775		 2022
£
3,336
7,421
86,862
97,619
1,946		 £
645,467
95,673
741,140
741,140
741,140

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 May 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 29 February 2024

Mr A J Millington

Trustee

Company registration number 01371275 (England and Wales)

DANESIDE COMMUNITY THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2023

1 Accounting policies

Charity information

Daneside Community Theatre Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Daneside Theatre Trust Ltd, Park Road, Congleton, Cheshire, CW12 1DP, England.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's deed of trust and memorandum of association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

DANESIDE COMMUNITY THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings not depreciated
Fixtures and fittings 10% reducing balance
Computers 33% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

DANESIDE COMMUNITY THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2023

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

DANESIDE COMMUNITY THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2023

3 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Donations and gifts 391 166
Legacies receivable 110,000 20,368
Grants - 4,667
110,391 25,201
Grants receivable for core activities
Cheshire East Council - 4,667
- 4,667
4 Income from charitable activities
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Charitable activities and projects
Theatre hire 67,241 46,303
5 Income from other trading activities
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Bar takings 38,334 13,660
6 Income from investments
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 1,000 73

DANESIDE COMMUNITY THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2023

7 Expenditure on raising funds

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Trading costs
Bar purchases 15,243 3,534

8 Expenditure on charitable activities

Theatre Theatre
provision provision
2023 2022
£ £
Direct costs
Depreciation and impairment 5,302 5,926
Theatre hire costs 11,693 14,752
Rates and water 4,714 3,765
Insurance 7,937 7,063
Light and heat 11,485 6,170
Telephone 685 755
Advertising 1,095 1,108
Cleaning 19,014 11,860
Repairs and renewals 21,734 6,204
Computer, post and stationery 2,080 593
85,739 58,196
Share of support and governance costs (see note 9)
Governance 760 675
86,499 58,871
Analysis by fund
Unrestricted funds 86,499 58,871
9 Support costs allocated to activities
2023 2022
£ £
Governance costs 760 675
Analysed between:
Theatre provision 760 675

DANESIDE COMMUNITY THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2023

9 Support costs allocated to activities

Support costs allocated to activities (Continued)
2023 2022
Governance costs comprise: £ £
Audit fees 690 640
Legal and professional 70 35
760 675

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

11 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
2023 2022
Number Number
Total - -
There were no employees whose annual remuneration was more than £60,000.

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

12 Other expenditure

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Financing costs 589 124
589 124

13 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

DANESIDE COMMUNITY THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2023

14
Tangible fixed assets
Freehold land
and buildings
Fixtures and
fittings
£
£
Cost
At 1 June 2022
624,666
176,475
At 31 May 2023
624,666
176,475
Depreciation and impairment
At 1 June 2022
31,564
124,393
Depreciation charged in the year
-
5,208
At 31 May 2023
31,564
129,601
Carrying amount
At 31 May 2023
593,102
46,874
At 31 May 2022
593,102
52,082
15
Stocks
Finished goods and goods for resale
16
Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
17
Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income		 Computers
£
423
423
140
93
233
190
283
2023
£
3,505
2023
£
3,209
3,624
6,833
2023
£
4,901
2,530
7,431		 Total
£
801,564
801,564
156,097
5,301
161,398
640,166
645,467
2022
£
3,336
2022
£
3,986
3,435
7,421
2022
£
831
1,115
1,946

DANESIDE COMMUNITY THEATRE TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2023

18 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 June 2022 Incoming Resources
At 31 May 2023
At 31 May 2023
resources expended
£ £ £ £
General funds 741,140 216,966 (102,331) 855,775
Previous year: At 1 June 2021 Incoming Resources
At 31 May 2022
resources expended
£ £ £ £
General funds 718,432 85,237 (62,529) 741,140

19 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).