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2022-03-31-accounts

Birmingham Hippodrome Theatre Trust Limited

ANNUAL REPORT

for the period ended

2 April 2022

Company Registration No. 01446309 Charity No. 510842

Birmingham Hippodrome Theatre Trust Limited TRUSTEES AND PRINCIPAL ADVISERS

TRUSTEES

M Guest V Hjardeng G Howells I Kaur H Millington A Tonks A Connors S Lawes A Hammond T Powell E Lawal

SECRETARY

Tim Maycock

EXECUTIVE TEAM

Artistic Director & Chief Executive - Jon Gilchrist Artistic Director & Chief Executive - Fiona Allan (Resigned 5 November 2021) Director of Finance & Planning - Tim Maycock (Interim CEO from 5 November 2021 to 11 April 2022) Director of Operations - Mike Bradford Director of Audiences and Communications - Chilina Madon Director of Artistic Programme - Chris Sudworth Director of Festivals - Graham Callister

REGISTERED OFFICE

Hurst Street Southside Birmingham B5 4TB

BANKERS

Lloyds TSB Bank Plc 125 Colmore Row Birmingham B3 2DS

SOLICITORS

Gowling WLG LLP Anthony Collins Solicitors LLP Two Snowhill 134 Edmund Street Birmingham B4 6WR Birmingham B3 2ES

AUDITORS

RSM UK Audit LLP Chartered Accountants 103 Colmore Row Birmingham B3 3AG

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

Birmingham’s motto is “forward” and never did this ring truer for the team at Birmingham Hippodrome than in the year 2021/22. Following 18 months of closure, during the worst of the Covid out-break, the organisation came together to reopen the venue under the most difficult of circumstances, providing much-needed moments of joy for the people of our city region. The emotional reception that we received from our visitors as they returned was overwhelming, demonstrating the special inter-generational relationship that the organisation has with the people of Birmingham.

Throughout the pandemic the Hippodrome remained committed to providing cultural experiences through our extensive Artistic, Learning and Participation programmes of work, not forgetting the spectacular Van Gogh Alive exhibition which had been forced to close prematurely in November 2020.

The reopening of Van Gogh Alive in the Spring of 2021 signalled the start of a new chapter for Birmingham Hippodrome as the venue carefully prepared to safely re-open for staged performance. The programme of events, both on and off stage remained as ambitious as ever, with several shows rescheduled from 2020. Through a time of changing government guidance our teams worked tirelessly to ensure that customers were kept well-informed of social-distanced performances, re-issued tickets, new dates, new Covid protocols and safety information at every step of their journey. New Visitor Service Assistants, technical teams and volunteers were quickly trained up to ensure that guests and visiting companies were provided with the exemplary Hippodrome welcome that we are so well known for.

Reopening the venue was a huge challenge in and of itself, yet the Hippodrome, continued to push forward in other areas too: producing Birmingham Weekender with Bullring Grand Central, establishing the Creatives Card, coproducing the Bus Boycott Block Party at Soho House with China Plate and growing our Hippodrome Education Network. Our ambitions became greater and our commitment to the city, its people, artists and creatives became stronger.

When I look back on the full scale of the work delivered across all teams in 2021/22, I cannot help but feel immense pride. I would like to thank former Artistic Director and CEO Fiona Allan for the vision, leadership and inspiration she provided throughout her six-year tenure, she leaves a lasting and formidable legacy. My thanks also to the teams of staff and volunteers whose passion for the venue ensured that Birmingham Hippodrome reopened and continues to thrive despite an ever changing, uncertain landscape. My thanks to the Trustees of the Board who have continued to support me and the venue during this time of change.

I also extend my thanks to the partners and communities that continue to support Birmingham Hippodrome: our donors, members, sponsors, producers, performers and practitioners that all play their part in bringing this phenomenal organisation to life. We are particularly grateful to Arts Council England for awarding us several grants for our festivals programme of work as well as funds from their Capital Investment Programme that will improve accessibility in our building as well as online.

As Birmingham as a city region continues its “forward” trajectory, so too does the Hippodrome under the inspiring leadership of our new Artistic Director and CEO, Jon Gilchrist. He leads a talented, energised and committed team of people that I know will build upon our legacy and continue to enrich lives across the region, driving forward the Hippodrome’s ambitious cultural programme as it approaches its 125th year.

28

Glenn Howells Chair Birmingham Hippodrome Theatre Trust

Date: 14 December 2022

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

The Trustees (who are also the directors for the purposes of company law) submit their annual report including the Strategic Report, the Directors’ Report and the audited consolidated financial statements of the charitable company (“the company”) and its subsidiary undertakings (“the group”) for the period ended 2 April 2022.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Birmingham Hippodrome Theatre Trust Limited was established in July 1979 and its constitution is set out in a Memorandum and Articles of Association. The company is limited by shares and is also a registered charity (number 510842). Birmingham Hippodrome Theatre Trust Limited has one trading subsidiary: Birmingham Hippodrome Limited, which was established in June 1981 and which operates Catering and Conference and Events activities and ancillary sales (programmes, merchandise, ice-creams, confectionery and soft drinks) at Birmingham Hippodrome Theatre.

The governing body of the company is a board of non-executive Trustees. During the period, no trustee received travel expenses (2020/21 no trustee received travel expenses). The Trustees of the charitable company during the period were as follows:

M Guest V Hjardeng G Howells I Kaur H Millington A Tonks A Connors S Lawes A Hammond T Powell E Lawal

Eight of the Trustees hold one ordinary share in accordance with the qualification required by the company’s Articles of Association.

The Trust complies with the Charity Commission Code for the Voluntary and Community Sector "Good Governance".

The Trustees, as required by charity law, have paid due regard to the Charity Commission’s guidance on providing public benefit while reviewing the Charity's aims and objectives, and while deciding what activities the Charity should undertake.

Trustees are appointed by the Board to serve a three year term with a maximum of three terms, except in exceptional circumstances where the Board agrees otherwise. Trustees are selected by the Board based on their skills, knowledge and experience.

The responsibilities of the Board in respect of the preparation of the financial statements are set out on page 18.

New Trustees meet with the Executive Team and receive a comprehensive Induction Pack which comprises:

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

The Board meets five times each year and has delegated authority to certain committees which are responsible for certain strategic aspects of management. The Trust’s committees comprise:

Finance

The finance committee meets at least twice each year and meets annually with the company’s auditors to examine the financial statements and recommend approval to the Board. The committee also reviews the scope and results of the statutory audit and reviews internal controls, the annual budget and the effectiveness of systems for the assessment and management of risk , as well as formally reviewing the risk register twice per year. During the year, A Hammond, H Millington, A Connors and T Powell made up the finance committee with A Hammond acting as Chair.

Remuneration

The remuneration committee meets when necessary to review and approve salary amendments recommended. The responsibilities of the committee include negotiation and review of the salary of the Chief Executive and Senior Directors and approval on behalf of the Board of the annual pay award and specific pay awards above annual award as recommended by the Chief Executive. H Millington, A Connors and A Hammond make up the remuneration committee with H Millington acting as chair.

Nomination

The nomination committee meets when necessary to identify and nominate, for the approval of the Board, candidates to fill board vacancies as and when they arise. When considering an appointment, the committee will evaluate the skills, knowledge and experience on the Board and, in the light of this evaluation, prepare a description of the roles and capabilities required for a particular appointment. The committee will consider candidates from a wide variety of backgrounds and will regularly review the size, structure and diversity of the Board. V. Hjardeng, I Kaur, M Guest and A Tonks make up the nomination committee with A Tonks acting as chair.

Hippocampus

The Hippocampus committee meet at least three times per year to provide scrutiny on any significant capital projects undertaken by the Hippodrome, support the Executive through advocacy and lobbying for the continued improvement of the Hippodrome’s immediate surrounding environment and to assist in the tender process for any major developments. M Guest, G Howells and A Tonks make up the Hippocampus Committee with M Guest acting as chair.

Festivals

The festivals committee meets at least twice a year to provide scrutiny, guidance, and support to the Executive through a period of ambitious growth for the festival programme. S Lawes and G Howells make up the festival committee with S Lawes acting as chair.

Safeguarding

The safeguarding committee meets three times per year to provide scrutiny, guidance and support on all matters to do with safeguarding. The committee will ensure those with safeguarding responsibilities are fulfilling their duties and working towards best practice, as well as reviewing all policies and receiving reports covering all safeguarding incidents. H Millington and V Hjardeng make up the safeguarding committee with H Millington acting as chair.

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Anti-Racism and Inclusion

The Anti-racism and inclusion committee meet six times per year alongside the staff working group to shape, review and approve EDI policy across the whole organisation. The committee will monitor progress against agreed targets and ensure the organisation maintains best practice within the industry. A Tonks, V Hjardeng, E Lawal and T Powell make up the committee with A Tonks acting as chair.

Accessibility

The Accessibility committee meets four times per year and works to shape, review and approve access and inclusion policy across the whole organisation, maintaining an awareness of best practice in the industry and monitoring progress made against national benchmarks. V Hjardeng makes up the committee and acts as chair.

Management

The Board is responsible for maintaining a sound system of internal control to safeguard the assets of the company and discharges this responsibility for internal controls and budgets through the finance committee. The Finance department constantly reviews the effectiveness of the company’s system of internal control and reports regularly to the Board on all aspects including financial, operational and compliance controls. In addition, the rolling programme of internal audits performed by an external consultant provide further assurance to the finance committee.

The Artistic Director & Chief Executive (Fiona Allan until 5 November 2021, Tim Maycock from 5 November 2021) reports to the Board of Trustees which meets six times per annum. The Executive Team of Director of Finance & Planning (Tim Maycock), Director of Audiences and Communications (Chilina Madon), Director of Operations (Mike Bradford), Director of Artistic Programme (Chris Sudworth), Director of Festivals (Graham Callister) reports to The Artistic Director & Chief Executive and may attend Board meetings by invitation. The Executive Team manages and operates the company with managers in each department. An annual budget is presented to and approved by the Board in February each year, having been reviewed in advance by the finance committee. Management accounts in which actual results are compared against budgeted figures are presented at board meetings for the Board to review.

More than 200 staff worked over several departments: the executive, finance and administration, marketing and sales, visitor services, catering, partnerships and events, technical services, learning and participation, productions and festivals. Staff are generally employed on a permanent full- or part-time basis, although flexible workers are employed within information and sales, visitor services and technical services to service the differing requirements of touring productions and varying selling and audience patterns.

Volunteers work alongside Birmingham Hippodrome staff within the visitor services department to enhance the customer experience and to provide additional cover within the auditorium. There are over 50 volunteers who are used at many performances. In addition, volunteers provide invaluable support across the outdoor arts and archive heritage programme; by acting as ambassadors for the theatre. All volunteers are provided with appropriate training as according to the duties required of them. All staff are very grateful for the contribution made by our volunteers.

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

OBJECTIVES, AIMS AND REVIEW OF ACHIEVEMENTS AND PERFORMANCE

Birmingham Hippodrome’s vision is to create a world-class cultural scene for our region with the Hippodrome firmly centre stage. As the world emerged from the 2020 lockdowns, so too did the venue, increasing the cultural offering to the city in both our on and off stage programmes of work. Reopening the building during a time of uncertainty and ever-changing policies was a huge undertaking, yet our focus on delivering our charitable objectives remained resolute.

AIM 1 TO BE RENOWNED FOR THE QUALITY OF CULTURAL WORK WE CURATE AND PRESENT

Throughout 2021/22 the Hippodrome continued to provide both on and off-stage work, across a wide range of genres, appealing to the varied demographics of the city region.

VAN GOGH ALIVE

In May 2021, we reopened our doors, resuming the Van Gogh Alive interactive exhibition that prematurely closed in November 2020. The exhibition ran for six weeks, attracting over 35,000 people. We were also commissioned to lead on Learning and Access for the exhibition’s tours in London and Salford and are now the official Learning and Access Partner for the rest of the Van Gogh Alive tour.

ON-STAGE WORK

In August 2021, having been shut for 543 days, we celebrated our reopening for live performance with the musical Priscilla Queen of the Desert and an emotional speech from our Artistic Director and CEO - Fiona Allan. Thereafter, we resumed our main stage programme of activity, with seasons of dance, ballet, opera, new and rescheduled musicals as well as our much-loved pantomime. In total, our main stage and Patrick Studio productions played to over 285,000 people.

OFF-STAGE WORK

Within the building we played host to Verve Festival for their annual weekend takeover of the Patrick Studio and Thorp Street, attracting audiences live and online. UniSlam returned with over 120 young poets taking part in workshops, heats, semi-finals and a grand final. We hosted an insightful panel event around Black British Ballet in partnership with Birmingham Royal Ballet and Oxygen Arts and displayed Bangladesh Freedom 50 exhibition with Legacy West Midlands and The City That Spoke To Me : a celebration of our city’s spoken word scene from local photographer and film-maker Paul Stringer.

Our Festivals team continued to deliver a wide programme of activity including Artist Luke Jerram’s work In Memoriam, a response to the thousands of deaths during the COVID-19 pandemic, presented in Birmingham with BrumYODO.

We collaborated with our partners Bullring Grand Central on the production of Birmingham Weekender, Chinese New Year, B-Side Hip Hop Festival and Séance by sonic artists Darkfield. 15 giant inflatable tentacles were also placed in locations across the city including The Rotunda.

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

OBJECTIVES, AIMS AND REVIEW OF ACHIEVEMENTS AND PERFORMANCE (continued)

The team also delivered the final CVX Festival programme, a commission by Coventry UK City of Culture 2021 featuring performances by Guz Khan, Circolombia, Graeae Theatre and national grime/drill artists.

With producing partners China Plate, we delivered a community-based Block Party in the gardens of Soho House Museum offering the first taste of 5 of the songs from the musical in development To The Streets! alongside three community-based arts projects.

ASSOCIATE COMPANIES

In our re-opening season we supported Associate companies Rosie Kay Dance Company, ZooNation and Motionhouse to premiere and present new works on our main stage; and Aakash Odedra Company presented a 10[th] anniversary production in the Patrick Studio. We partnered with Sonia Sabri Company and Open Theatre on community engagement and research activities and continued to collaborate with Break Mission on B-Side Festival.

We partnered with Mayflower Southampton and The Lowry, Salford, to support three emerging musical theatre companies – Fat Rascal, Burnt Lemon and The Good Enough Mums Club – through our respective Associate programmes with two new productions developed, presented and toured.

In total, work with our Associate companies engaged with over 50,000 participants and audiences in 2021/22.

AIM 2 TO BE A CULTURAL CENTRE FOR EVERYONE. AGE, ETHNICITY, INCOME, BACKGROUND OR ABILITY SHOULD NOT BE A BARRIER TO HAVING A CULTURAL EXPERIENCE AT THE HIPPODROME, ON OR OFF STAGE.

INCLUSION & ANTI-RACISM

In 2021 we undertook an HR audit, reviewing our recruitment policies and procedures through the lens of equality and diversity. We now advertise to a wider range of people and apply the Rooney Rule - committing us to interviewing those with protected characteristics if they meet the minimum criteria and now accept video submissions and undertake pre-interview open sessions for specific vacancies.

In September 2021 we circulated the results of a listening exercise conducted for past and present employees to feedback on their experiences of inclusion and diversity at the venue. Consequently, we have created a newly established Inclusion and Anti-Racism staff working group, tasked with leading change within the organisation. This group reports to the Inclusion and Anti-Racism Board Sub-Committee which in turn, reports to the main board. Staff Representative meetings were re-established post Covid and our staff Wellbeing Group instated a range of positive changes including hybrid working policies to help provide a better work/life balance. We established an internal team of Mental Health First Aiders and all Senior Management attended Mental Health Awareness Training.

Our Access Forum – Chaired by Trustee Vidar Hjardeng continued to meet, providing valuable insight and feedback to the teams, with a stronger line into the Board.

Over the year we conducted four Relaxed Performances with three additional training sessions, two for a team of 25 volunteers and two for our Visitor Service Assistants, which included a bespoke session run by the team at Disney for their production of Beauty and the Beast.

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

OBJECTIVES, AIMS AND REVIEW OF ACHIEVEMENTS AND PERFORMANCE (continued)

OUR WORK WITH YOUNG PEOPLE

In Autumn 2021 we joined forces with Creative Alliance to pilot a scheme with 6 apprentices working in three department, developing opportunities and pathways for people to start a career in the arts.

We launched our Young Advocates programme, made up of 16 young people aged 14-22 who help shape the future of the Hippodrome’s work. We also held our first Young Community Drop-In day, welcoming 60 14+ year olds to the venue.

The Hippodrome Education Network programme expanded to 36 schools, employing two additional artists in order to meet demand for weekly in-school provision.

In total the Learning and Participation team worked with over 27,500 individuals with over 73,000 separate interactions.

AIM 3 TO PROVIDE ALL OUR VISITORS WITH A WORLD CLASS EXPERIENCE AT EACH STEP OF THE CUSTOMER JOURNEY.

REOPENING OUR BUILDING

Initially, performances were put on sale as socially distanced, but were quickly opened up to full capacity whilst always keeping customers aware of our changing plans.

At the beginning of December, we announced a change to our Covid policy for visitors, requiring them to demonstrate proof of vaccine, immunity or exemption, reinforcing our policy on mask wearing.

Disney’s Beauty and the Beast went on sale in Autumn 2021 encouraging audiences to make their first postlockdown bookings to the theatre. The production opened in March 2022 to packed out houses, playing to over 50,000 people over a four-week period. We used the opening of this iconic production to re-launch the press nights that we were so well known for pre-Covid.

Rescheduled productions for the period including Birmingham Royal Ballet’s Nutcracker and SIX the Musical , retained the majority of their audiences from the original 2020 dates and over the financial year we welcomed over 285,000 people through our doors for staged events whilst also providing an extensive festival, educational and participatory programme of work. 90% of surveyed audiences agreed or strongly agreed that Birmingham Hippodrome offered a programme with broad appeal.

PANTO RETURNS TO BIRMINGHAM

Goldilocks and the Three Bears brought pantomime back to the city in spectacular fashion, playing to audiences of 88,000. On Christmas Day, leading actor Matt Slack was confirmed Covid positive. The teams worked closely with production company Crossroads to source a replacement, Johnny Mac who opened the show less than 48 hours later to standing ovations and critical acclaim. Whilst Boxing Day performances were cancelled, the venue and production teams worked tirelessly to ensure that customers were well looked after, doing everything possible to minimise the risk of further cancellations.

Despite the last-minute upheaval for customers, 95% rated our customer facing teams as either Good or Brilliant.

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

OBJECTIVES, AIMS AND REVIEW OF ACHIEVEMENTS AND PERFORMANCE (continued)

BUILDING WORKS

We completed the project to install a new set of doors on Inge Street, primarily to enable future development of our foyer spaces, supporting accessibility and customer flow. The work was principally funded in 2020 by Greater Birmingham and Solihull Local Enterprise Partnership.

AIM 4 TO BE THE CULTURAL HEART OF THE CITY – A CREATIVE AND CULTURAL DESTINATION – PLAYING A LEADING ROLE IN BIRMINGHAM’S ECONOMIC AND CULTURAL DEVELOPMENT.

COMMONWEALTH INVOLVEMENT OVER 2021/22

During 2021/22 we negotiated and secured positioning and partnerships with Birmingham 2022 Festival, the sixmonth cultural programme wrapped around the Commonwealth Games. Through building new and expanded partnerships with local independent producers China Plate, Verve Festival and Soul City Arts – as well as aligning our key annual festivals, a broadcast takeover with the BBC and an exciting new relationship with Rambert Dance to co-produce Peaky Blinders for the stage - we were able to secure our position as a central thread of the city’s cultural offering in this significant year for the region.

Delivery within this period included: workshop weeks on script and music, the start of three community-based projects, a Block Party for To The Streets (with China Plate); project and production design workshops for Waswasa (with Soul City Arts); and pre-production, design and launch for Peaky Blinders .

CULTURAL DESTINATION

In 2021/22, Birmingham Hippodrome continued to play its part in driving the visitor economy, bringing culture to the heart of Birmingham. 87% of surveyed respondents said that Birmingham Weekender produced with Bullring Grand Central gave them a sense of pride in the city and 83% said it improved and enhanced the public spaces and streets where it took place.

5% of visitors to the Hippodrome used their visit for an overnight stay with 77% of those visitors booking into hotels, B&B’s or hostels. 77% of surveyed visitors believed that the organisation leads the way for culture in the region.

REGIONAL ARTIST DEVELOPMENT

Following a thorough consultation period, the Hippodrome Creatives initiative was launched in October, responding to the needs of local and regional artists and creatives seeking to develop their practice. The Creatives Card offers free rehearsal space, support, social events and discounts. It received over 200 sign ups in the first week following its launch.

Programming of local creatives across our stages increased significantly, with over 50% of the work featured in our spring 2022 brochure being made in the Midlands. We provided regular workshop space for two local performer training programmes supporting minoritised creatives and started new partnerships with leading national theatre companies nurturing global majority artists, Talawa, Tamasha and New Earth.

REGIONAL AND INDUSTRY LEADERSHIP

Until her departure in November 2022, Artistic Director and CEO, Fiona Allan was the Chair of the West Midlands Tourism Board, President of industry association - UK Theatre and a Director at West Midlands Growth Company. Members of the Senior Team also continued to sit on local and industry boards including the local Southside Business Improvement District, the Cultural Leadership Board for West Midlands Combined Authority and Outdoor Arts UK. These connections helped ensure that the venue remained well networked across the city and sector. Former Board Chairman and Special Board Advisor– John Crabtree MBE was Chairman of the Birmingham 2022

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

OBJECTIVES, AIMS AND REVIEW OF ACHIEVEMENTS AND PERFORMANCE (continued)

Commonwealth Games and Trustee Harj Millington, sat on the United by 2022 Legacy Charity for the Commonwealth Games.

AIM 5 TO ENSURE OUR BUSINESS HAS AN INDEPENDENT AND SUSTAINABLE FUTURE

BOARD

In March 2022 the venue confirmed the appointment of Elizabeth Lawal to the Board of Trustees. Elizabeth has helped diversify the experience and breadth of voices on the board as a firm believer in the power of creativity, tech, innovation, doughnut economics and social good.

RESIGNATION OF ARTISTIC DIRECTOR AND CEO – FIONA ALLAN

In August, we announced the resignation of Artistic Director and Chief Executive, Fiona Allan, who was leaving to undertake the position of Chief Executive Officer at Opera Australia.

Fiona joined Birmingham Hippodrome in 2015, overseeing a significant period of development for the venue. During this time we doubled the number of people we reached though live performance, education programmes, festivals and visual arts to over 1 million annually.

The board appointed firm Saxton Bampfylde to lead a search for Fiona’s successor and in December, announced the successful recruitment of Jon Gilchrist to the role of Chief Executive Officer and Artistic Director. Jon started in his post in April 2022.

HR, RECRUITMENT

Reopening the venue required a large-scale recruitment drive with 197 new people joining the teams over the financial year. 32 of those recruited were placed in permanent roles, marking a 16% increase for the venue since closing. We rebuilt our teams to better reflect the demographics of the city, increasing the percentage of global majority staff members from 10% to 19%.

In March 2022 we employed Director of People and Culture – Ruth Power to the Senior Team, recognising the need to develop a long term, consistent people strategy, embedding the principles of inclusion and diversity across all departments.

ENVIRONMENTAL

In November, Birmingham Hippodrome was reaccredited with the ISO14001, demonstrating compliance in environmental management. Our Green Team – made up of staff from within the organisation reconvened postCovid identifying ways in which we could reduce waste, our carbon footprint as well as energy consumption. We continued to convert our lighting to LED and reduced wastage on printed material by converting to e-tickets and cutting levels of show print in the building.

A review of our building functions resulted in a decision to install solar panels on our roof, due for installation in Autumn 22.

PUBLIC FUNDRAISING, PHILANTHROPY, LEGACIES, MEMBERSHIPS AND EVENTS

On reopening for live performance at the end of August 2021, we adjusted our public campaign from our emergency funding campaign Help the Show Go On to Arts Matter ! Still ongoing, the new campaign emphasises the importance and impact of the arts in everyone’s lives. Over the period, funds raised across the two schemes from supporters, audiences and the local business community totalled more than £55,800.

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

OBJECTIVES, AIMS AND REVIEW OF ACHIEVEMENTS AND PERFORMANCE (continued)

In December we participated once again in the nationwide Big Give Christmas Challenge in support of our Hippodrome Education Network, attracting charity champion support from The Reed Foundation and exceeding its fundraising target of £25,000.

The venue continued to develop relationships with high-net-worth individuals who are aligned with our ambitions and have a passion for theatre and our wider charitable work. Several made generous donations to support our youth programme and co-productions.

Membership of the 1899 Club monthly individual giving scheme remained stable and generated £3,000 with scope for expansion. The Patron membership scheme overall retained a healthy membership with several upgrades and new members, with a total membership of 78. 680 Friends memberships were retained over the period.

The Name a Seat initiative remained in place to attract donations from theatre fans choosing to commemorate family members or special occasions with a seat plaque.

GRANT AWARDS FROM TRUSTS AND FOUNDATIONS

Birmingham Hippodrome received a substantial grant from the Arts Council England Capital Investment Programme, to improve the accessibility to the venue for those with an access requirement. £150k was also granted to our Festivals programme of work with additional support from Birmingham City Council and Coventry ’21 each providing £100k.

Through coordinated approaches with co-producer China Plate, B2022 granted £150k for the development of new musical - To The Streets , with an additional £99k received from Arts Council England to the Hippodrome for an accompanying Community Company and funding for Midlands based Associate roles.

Similarly, £400k was granted by Arts Council England through Leicester Curve for the tour of our award-winning co-production of The Color Purple which took place in Autumn 2022.

HSBC Community Fund continues to be the major supporter for our Accessible and Relaxed Performances programmes.

We continued to attract support from grant-awarding bodies for a range of our projects, with a number of successful applications to local Trusts and Foundations, principally from W A Cadbury Trust, the Eveson Charitable Trust and the Saintbury Trust in support of Hippodrome Young Advocates and Young Community, our Special Educational Needs work experience programme, d/Deaf awareness training for staff and the Hippodrome Education Network.

CORPORATE

Our Corporate membership scheme welcomed two new businesses, Wilson Brook Consulting and Voice Fostering, upgrades from BE Wedge Group and Lockton. Other long-standing supporters renewed memberships with the scheme generating approximately £70k. As a new initiative the team introduced a programme of corporate volunteering alongside our Relaxed Performances, Festivals and Young Advocates programme which attracted interest from a range of corporate supporters.

The re-launch of the fundraising event programme was announced, achieving an advance sell-out for the first night of new dance theatre work, Rambert Dance in Peaky Blinders and we welcomed stakeholders and supporters to receptions at our major Relaxed Performances and alongside Matthew Bourne’s Nutcracker!

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

STRATEGIC REPORT

Financial Review

The results for the period are shown in the consolidated statement of financial activities on page 22, and the financial position at year end is shown in the consolidated balance sheet on page 24.

During the financial year on the main stage, we presented 239 live performances after reopening on 31 August 2021 (2020/21: Nil) attended by 285,855 patrons (total attendance (2020/21: 28,073) with paid capacity of 67% (2020/21: 54%).

Total ticket sales were £8,502,000 (2020/21: £168,000).

Sales by art form were as follows:

Performances Performances Tickets Sold Show Contribution Show Contribution
2022 2021 2022 2021 2022 2021
Musicals 29% 0% 41% 0% 35% 0%
Pantomime 30% 0% 27% 0% 33% 0%
Ballet 20% 0% 21% 0% 21% 0%
Other Dance 6% 0% 4% 0% 3% 0%
Opera 2% 0% 1% 0% 1% 0%
Other events 12% 100% 8% 100% 8% 100%

Birmingham Hippodrome’s result for the year was an unrestricted deficit of £756,000 compared to a budgeted deficit of £740,000 (2020/21: £35,000 compared to a budgeted surplus of £225,000).

A deficit of £1,651,000 (2020/21: deficit of £2,108,000) has been achieved on unrestricted funds, and a surplus of £468,000 (2020/21: surplus of £1,819,000) has been achieved on restricted funds in the period before transfers.

As set out in Note 3 to the financial statements, the majority of the group’s and charity’s income is derived from the sale of theatre tickets, however in 2020/21 income from the Coronavirus Job Retention Scheme and the Arts Council England’s Cultural Recovery Fund were the main sources of income due to the pandemic.

The results of the trading subsidiary, Birmingham Hippodrome Limited are set out in Note 22 to the financial statements. The covenanted payment from Birmingham Hippodrome Limited was £Nil (2020/21: £ Nil).

Group bank interest in the year was £50,000 (2020/21: £47,000).

Key Performance Indicators

During the year there were 235 individual performances in the main auditorium (2020/21: Nil*) with capacity achieved of 66% (2020/21: 54%).

*Van Gogh Alive was a digital art exhibition with no set performance times

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Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

STRATEGIC REPORT (continued)

Staff Development

With a reopening date confirmed in early summer 2021 there was a co-ordinated effort to re-recruit the staff needed to return to full operational capacity. With limited time, new staff members were put through an intensive induction programme to ensure the high standards achieved in the past were upheld. Notwithstanding this time of change, there has been continued focus on maintaining the development and ensuring the wellbeing of staff members. A dedicated wellbeing working group, who are tasked with highlighting wellbeing issues among staff, has been active with a number of initiatives implemented over the year. Staff have adapted well to a hybrid model of working, with no fixed expectation of time to be spent in the office. Teams are left to decide when and how often they visit the office, with no loss of productivity noted, and an increase in engagement across the staff body.

Gender Pay

All employees at Birmingham Hippodrome in the same role are paid the same. However, due to the impact of the restructure carried out in response to the pandemic the gender pay gap according to the official measure comparing the median male and female employee has decreased to 15.2% (2020/21 10.9%). This increase is primarily due to the unusual circumstances created by the pandemic meaning we employed many fewer flexible workers over the course of the year, and those that did remain were paid less due to the limited nature of the work we were able to present. We expect the gender pay gap to revert to its previous position over the next 12 months.

Birmingham Hippodrome’s mean gender pay gap is 6.8% (2020/21: 6.2%).

Hourly earnings fall into the following quartiles

Salary Quartile Male Female
£16.10 per hour or more 44% 56%
£12.88 to £16.09 58% 42%
£9.66 to £12. 56% 44%
Less than £9.66 34% 66%

Fundraising

Environmental Management

We continued to ensure full compliance with our ISO 14001 Environmental Management standard accreditation. An annual review of our Environmental Management System, and our updated policy statement, along with actions for 2021/22, was completed and we passed a further surveillance audits.

Our overall daily gas and electricity usage has increased versus last year, mainly due to the building being mainly shut during 2020/21. The majority of the energy saving actions have now been implemented with major capital expenditure required to achieve further material savings.

Page 14

Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

STRATEGIC REPORT (continued)

Environmental Management (continued)

Our total energy usage over the last 14 years, (excluding the period of closure) has continued to drop:

Electricity - 45.1% Gas - 51.8%

Review of Risks

On an ongoing basis the Board reviews the major risks to which the Trust is exposed, and systems have been established to manage these risks. Internal risks are minimised by the implementation of procedures for authorisation and monitoring of all transactions, and potential external risks to future income levels and the availability of product are addressed by the Senior Management and the Board of Trustees.

The Trust has a Strategic Business Plan with aims, objectives and key performance indicators which are monitored to ensure the effective delivery of the plan and the management of risk.

Following a high-level review of risk and the assurance framework, the Trustees consider that the major risks facing the Charity are:

The Internal Audit programme has completed the first full cycle of audits, which prioritised assurance requirements based on key risks, carrying out reviews of corporate governance (encompassing decision-making arrangements, delegations of authority and risk assessment as well as ensuring clarity and appropriateness of the roles and responsibilities of the Board and its sub-committees), IT resilience and cyber security. A full review of the financial control environment and box office procedures and HR/payroll has also taken place.

All recommendations from these internal audits for improvements have been or are in the course of being implemented.

Financial sustainability continues to be a focus area for the Trust and its subsidiary. A key element in the management of financial risk is via a reviewed reserves policy for the Trust, and retention of sufficient working capital in Birmingham Hippodrome Limited.

Reserves Policy

Restricted funds represent the capital funding received for the refurbishment of the Hippodrome Theatre and reduce annually due to the amortisation of capital grants relating to leasehold improvements.

Unrestricted funds are £3,594,000 for the Group (2020/21: £4,350,000) and £3,614,000 for the Company (2020/21: £4,517,000).

Unrestricted non-designated funds were £1,933,000 at April 2021 (April 2020: £2,108,000) which was decreased by the unrestricted deficit of £756,000 (2020/21: deficit of £35,000) and then was reduced by £140,000 (2020/21: £140,000) transferred to designated funds. Transfers from designated funds were £Nil (2020/21: £Nil), leaving a balance of £1,037,000 (2020/21: £1,933,000) in unrestricted non-designated funds as at year end.

The Board regularly considers the Repairs & Maintenance liabilities of the Trust in order to ensure that sufficient funds are set aside annually to meet the Trust’s repairs & maintenance obligations (over a twenty-five-year period) under the lease with Birmingham City Council, as funds allow. Following an Audit Committee review in November

Page 15

Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

STRATEGIC REPORT (continued)

2012, Trustees approved an ongoing annual allocation of £140,000 per annum as sufficient in current circumstances, which also takes into account non-reclaimable VAT on repairs reserve expenditure.

The Trust’s reserves policy requires the Trust to make a surplus over time and the target range of unrestricted nondesignated reserves is £1m-£3m to cover working capital fluctuations.

Birmingham Hippodrome Theatre Trust maintains unrestricted reserves to sustain the long-term success of the organisation.

The Trustees appreciate the careful balance required in continuing investment in building maintenance and improvements, whilst protecting against fluctuations in audience demand and the flow of appropriate repertoire from external producers, alongside the challenge of growing artistic opportunities. In addition to the growing investment in staffing for activity providing public benefit, the Trust provides a ring-fenced core budget for Hippodrome Projects which we supplement with fundraising from supporters.

With total weekly overheads of around £125,000, and further investment plans at early stages of development, we confidently believe our reserves will continue to be maintained at an appropriate level for an organisation of our size and type.

Treasury Policy

The funds available for the Trust to invest are advance box office receipts and the Repairs, Programming and Production Investment Reserve balances. To retain flexibility and availability of these funds, the Trust’s current account monies are transferred daily to higher rate call accounts, taking account of beneficial interest rates. The Trust also uses short-term fixed interest money market deposit accounts to maximise interest received and these mature on a rolling basis to ensure availability of funds. The Board has approved a policy whereby only UK owned banks with a minimum AA credit rating are used and money market deposits are split over a minimum of three different institutions. No other investment vehicle is used.

Birmingham Hippodrome Limited

The profit in the trading subsidiary for the period was £152,000 (2020/21: loss £173,000) and the full amount of £Nil (2020/21: £ Nil) was paid under deed of covenant to the parent undertaking.

Birmingham Hippodrome Limited (BHL) restructured in 2016 and comprises the Catering, Business Development, Consultancy and Visitor Services departments.

Fixed Assets

Movements in tangible fixed assets are set out in Note 11 to the financial statements.

Trustee Liability Insurance

Birmingham Hippodrome Theatre Trust Limited holds Trustee liability insurance on behalf of Directors and Officers at a cost of £3,661 (2020/21:£2,469).

Taxation Status

The company is a registered charity, and under the provisions of Section 505 of the Income and Corporation Taxes Act 1988, is exempt from liability to taxation in respect of its charitable activities.

Page 16

Birmingham Hippodrome Theatre Trust Limited REPORT OF THE TRUSTEES

STRATEGIC REPORT (continued)

Statement As To Disclosure Of Information To Auditors

The trustees, who are also the directors for the purpose of company law, who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

The Report of the Trustees, incorporating the Strategic Report, is approved by and signed on behalf of the Board

Glenn Howells – Chair Date: 14 December 2022

Page 17

Birmingham Hippodrome Theatre Trust Limited TRUSTEES’ RESPONSIBILITIES IN THE PREPARATION OF FINANCIAL STATEMENTS

The trustees (who are also directors of Birmingham Hippodrome Theatre Trust Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Page 18

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BIRMINGHAM HIPPODROME THEATRE TRUST LIMITED

Opinion

We have audited the financial statements of Birmingham Hippodrome Theatre Trust Limited (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the period ended 2 April 2022 which comprise the Consolidated Statement of Financial Activities, the Income and Expenditure Account, the Group and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 19

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BIRMINGHAM HIPPODROME THEATRE TRUST LIMITED (CONTINUED)

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within 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:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 18, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

Page 20

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BIRMINGHAM HIPPODROME THEATRE TRUST LIMITED (CONTINUED)

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the parent charitable company’s governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence with local tax authorities and evaluating advice received from internal/external advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The group audit engagement team identified the risk of management override of controls and completeness of income as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates and reviewing income transactions around the year end.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Anna Spencer-Gray

ANNA SPENCER-GRAY (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 103 Colmore Row Birmingham B3 3AG

Date: 19 December 2022

Page 21

Birmingham Hippodrome Theatre Trust Limited CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES for the 53 week period ended 2 April 2022

Notes

INCOME FROM:
Donations
2
Charitable activities
3
Other trading activities
4
Investments
5
TOTAL
EXPENDITURE ON:
Raising funds
6
Charitable activities
6
TOTAL
NET EXPENDITURE
8
Transfers between funds
19
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Fund balances brought forward
Fund balances carried forward		 53 week period ended 2 April 2022
Unrestricted
funds
2022
£’000
Restricted
funds
2022
£’000
Total
funds
2022
£’000
90
814
904
10,178
612
10,790
1,440
-
1,440
50
-
50
11,758
1,426
13,184
1,134
-
1,134
12,275
958
13,233
13,409
958
14,367
(1,651)
468
(1,183)
895
(895)
-
(756)
(427)
(1,183)
4,350
30,008
34,358
3,594
29,581
33,175		 52 weeks
ended
27 March
2021
Total
funds
2021
£’000
623
6,293
117
47
7,080
285
7,084
7,369
(289)
-
(289)
34,647
34,358

Page 22

Birmingham Hippodrome Theatre Trust Limited INCOME AND EXPENDITURE ACCOUNT for the 53 week period ended 2 April 2022

53 week period
ended
2 April 2022
£’000
52
27
Gross income of continuing operations
13,184
Total expenditure of continuing operations
(14,367)
Net movement in funds for the period
(1,183)
Amortisation of capital grants
895
Net (expenditure)/income
(288)		 week period
ended
March 2021
£’000
7,080
(7,369)
(289)
895
606

The above income and expenditure account adds back the £895k amortisation of capital grants, as this ordinarily would have been matched with the release of the grant to expend on leasehold improvements in accordance with section 24 of FRS 102, but not permitted under charity SORP (FRS 102).

Page 23

Birmingham Hippodrome Theatre Trust Limited BALANCE SHEETS

As at 2 April 2022

Company No: 01446309

Note
FIXED ASSETS
Intangible assets
10
Tangible assets
11
Investments
12
CURRENT ASSETS
Stock
Debtors
13
Short term deposits
Cash at bank and in hand
CREDITORS:
Amounts falling due within one year
14(a)
Amounts falling due over one year
15
NET CURRENT ASSETS
NET ASSETS
REPRESENTED BY
RESTRICTED FUNDS
18
UNRESTRICTED FUNDS
Share capital
17
Non designated
19a
Designated
19b		 Group
2022
£’000
2021
£’000
45
79
30,335
30,928
-
-
30,380
31,007
36
71
1,643
2,045
4,211
4,128
14,694
6,071
20,584
12,315
(15,622)
(8,964)
(2,167)
-
2,795
3,351
33,175
34,358
29,581
30,008
-
-
1,037
1,933
2,557
2,417
3,594
4,350
33,175
34,358		 Charity
2022
£’000
2021
£’000
45
79
30,294
30,882
-
-
30,339
30,961
-
-
2,682
2,369
4,211
4,128
13,524
5,914
20,417
12,411
(15,394)
(8,847)
(2,167)
-
2,856
3,564
33,195
34,525
29,581
30,008
-
-
1,057
2,100
2,557
2,417
3,614
4,517
33,195
34,525

Net movement in funds for the parent charity was expenditure of £1,332,000 (2020/21: expenditure of £122,000).

The financial statements on pages 22 to 46 were approved by the board on 28 November 2022, and authorised for issue on its behalf by:

G Howells– Trustee Date: 14 December 2022

Page 24

Birmingham Hippodrome Theatre Trust Limited CONSOLIDATED STATEMENT OF CASH FLOWS For the 53 week period ended 2 April 2022

Note
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities
20
NET CASH USED FROM OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest from short term deposits
Purchase of property, plant and equipment and intangible assets
NET CASH USED FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings
NET CASH USED FROM FINANCING ACTIVITIES
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING
PERIOD
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank
Short term deposits
TOTAL CASH AND CASH EQUIVALENTS
2022
£’000
6,823
6,823
50
(667)
(617)
2,500
2,500
8,706
10,199
18,905
2022
£’000
14,694
4,211
18,905		 2021
£’000
(3,599)
(3,599)
47
(627)
(580)
-
-
(4,179)
14,378
10,199
2021
£’000
6,071
4,128
10,199

Page 25

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

GENERAL INFORMATION

Birmingham Hippodrome Theatre Trust Limited is a charitable company limited by shares and incorporated in England. Its main activities are the presentation of theatrical productions.

The address of the Charity’s registered office is Hurst Street, Southside, Birmingham, B5 4TB.

BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and the Companies Act 2006.

Birmingham Hippodrome Theatre Trust Limited 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.

In accordance with FRS 102 the Charity has taken advantage of the exemption from the disclosure requirements of Section 7 ‘statement of cashflows’ – Presentation of a Statement of Cashflows.

The Financial Statements are presented in pounds sterling, with figures being rounded to the nearest £’000, except where otherwise stated. Accounts are drawn up to the nearest Saturday to 31 March, with these accounts prepared for a 53 week period (2020/21: 52 week period).

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are set out below:

BASIS OF CONSOLIDATION

The group accounts consolidate the financial statements of the Charity and its trading subsidiary undertaking Birmingham Hippodrome Limited. Intra-group transactions are eliminated on consolidation. Surpluses and deficits of organisations entering or leaving the group are included from the date of acquisition or up to the date of disposal. All financial statements have been drawn up to 2 April. The charity has taken advantage of the exemption available under CA06 s408, to omit its profit and loss account from the statutory group accounts.

GOING CONCERN

The theatre opened its doors on the 30 August for live performance and has traded successfully to the date of signing. The Trustees have reviewed the level of reserves and forecasts for the next 12 months in the light of the experience through the pandemic and have a reasonable expectation that the charity has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing the financial statements.

Page 26

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

INCOME

Income is represented by gross box office receipts and other income generated in furtherance of the objects stated net of value added tax. The charity's income is derived from continuing operations during the current and the previous period. No operations have been acquired during these two periods.

Income from theatre admission fees is included in income from charitable activities in the period in which the relevant show takes place.

Other trading activities

Income from other trading activities is included in the period in which the group is entitled to receipt.

DONATIONS AND GRANTS

Income from donations and grants, including capital grants, is included in income when these are receivable, except as follows:

When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in income of restricted funds when receivable.

Capital grants in respect of leasehold improvements are amortised in line with the related assets.

GOVERNMENT GRANTS

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Interest receivable

Interest is recognised when receivable.

EXPENDITURE

Expenditure is included in the Consolidated Statement of Financial Activities on an accruals basis, inclusive of any value added tax which cannot be recovered.

Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Certain other costs, which are attributable to more than one activity, are apportioned across cost categories on the basis of an estimate of the proportion of time spent by staff on those activities.

Page 27

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

TAXATION

The Trust is exempt from paying corporation tax in relation to its charitable activities as it is a registered charity. Birmingham Hippodrome Limited gift aids its taxable profits to the Theatre on an annual basis.

FUND ACCOUNTING

Restricted funds

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for a particular purpose. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Unrestricted funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. They may be designated or non-designated.

Designated funds

The trustees may, at their discretion, set aside unrestricted funds for specific purposes. If no longer required, designated funds are reclassified as non-designated, unrestricted funds.

DEBTORS

Trade and other debtors which are receivable within one year are initially recognised at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

SHORT TERM DEPOSITS

Short term deposits include cash on deposit with a maturity of less than one year but greater than three months.

CASH AND BANK BALANCES

Cash and bank balances includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition.

TRADE CREDITORS AND LIABILTIES

Trade creditors and bank loans are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

DEFINED CONTRIBUTION PENSION SCHEME

Pension contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.

FINANCIAL INSTRUMENTS

The charity and group only have financial assets and financial liabilities of a kind that qualify as basic financial instruments per Section 11 of FRS 102, and has chosen to follow Sections 11 and 12 of FRS 102. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost.

OPERATING LEASES

The annual operating lease rentals are charged to the Statement of Financial Activities on a straight line basis over the lease term.

Page 28

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

INTANGBLE ASSETS

Intangible assets purchased other than in a business combination are recognised when future economic benefits are probable, and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost (which for intangible assets acquired in a business combination is the fair value at acquisition date) and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets are amortised to profit or loss on a straight-line basis over their useful lives, as follows:-

Computer software:

5 years

On disposal, the difference between net disposal proceeds and the carrying amount of the intangible asset is recognised in profit or loss.

TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. Assets with a value below £1,000 are not capitalised. Depreciation of fixed assets is charged by equal annual instalments at rates estimated to write off their cost less any residual value over the expected useful lives, which are as follows:

Long lease premium Over period of the lease of 125 years Dance Hub 25 years Hippodrome Theatre long leasehold improvements 10-50 years Birmingham Royal Ballet long leasehold improvements 50 years Computer equipment 3 years Fixtures, fittings & other office equipment 10 years IT and Box Office Infrastructure project 5 years

Assets under the course of construction are depreciated from the date of completion.

INVESTMENTS

Investments in subsidiaries are included at cost less impairment, being the cost of the share capital owned.

STOCK

Stock of goods for resale have been included at the lower of cost and net realisable value. Cost is computed on a first in first out basis. Net realisable value is based on estimated selling price less further costs expected to be incurred to disposal.

CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

The Charity and group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The Trustees do not believe there are any estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Page 29

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

1 COMPARATIVE INFORMATION – PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES

1
COMPARATIVE INFORMATION – P		 RIOR YEAR STATEMENT OF FINANCIAL ACTIV ITIES
52 week period ended 27 March 2021
Unrestricted Restricted Total
funds funds funds
2021 2021 2021
£’000 £’000 £’000
INCOME FROM:
Donations 174 449 623
Charitable activities 2,418 3,875 6,293
Other trading activities 117 - 117
Investments 47 - 47
TOTAL 2,756 4,324 7,080
EXPENDITURE ON:
Raising funds 285 - 285
Charitable activities 4,579 2,505 7,084
TOTAL 4,864 2,505 7,369
NET EXPENDITURE (2,108) 1,819 (289)
Transfers between funds 2,073 (2,073) -
NET MOVEMENT IN FUNDS (35) (254) (289)
RECONCILIATION OF FUNDS:
Fund balances brought forward 4,385 30,262 34,647
Fund balances carried forward 4,350 30,008 34,358

Page 30

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

2 DONATIONS 52 week
period
ended
27 March
53 week period ended 2 April 2022 2021
Unrestricted Restricted Total Total
funds funds funds funds
£’000 £’000 £’000 £’000
Creative programme donations 90 814 904 623
90 814 904 623
3 CHARITABLE ACTIVITIES 52 week
period ended
27 March
53 week period ended 2 April 2022 2021
Unrestricted Restricted Total Total
funds funds funds funds
£’000 £’000 £’000 £’000
Theatre tickets 8,502 - 8,502 168
Booking fee, ticket levy and box
office handling charges 1,156 - 1,156 58
Friends memberships 63 - 63 28
Fundraising 55 - 55 69
Coronavirus job retention scheme 367 - 367 2,144
ACE funding - 400 400 3,185
Birmingham City Council - 100 100 36
Government grants 35 - 35 -
Birmingham City Council – Inge - 112 112 605
Street
10,178 612 10,790 6,293

Page 31

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

4 OTHER TRADING ACTIVITIES 53 week 52 week
period ended period ended
2 April 27 March
2022 2021
Unrestricted Unrestricted
funds funds
£’000 £’000
Catering, Visitor Services, Consultancy and Business
Development income – subsidiary 1,252 49
Technical services income 89 -
Sundry income 99 68
1,440 117
5 INCOME FROM INVESTMENTS 53 week 52 week
period ended period ended
2 April 27 March
2022 2021
Unrestricted Unrestricted
funds funds
£’000 £’000
Interest from short term deposits 50 47

Page 32

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

6
EXPENDITURE
(a)
Direct charitable expenditure
Fees of visiting companies and
artistes
(b)
Other expenditure – management and
administration of the charity
Wages and salaries
Marketing, friends, sponsorship &
creative programming
Customer services & security
Technical services
Box office and ticketing
Financial and administration
Depreciation and amortisation of
fixed assets
Catering and conference and events
Support costs (See note 6 (c))
TOTAL
(c)
Support costs
General office costs
General financial costs
Computer support
Governance costs
Interest on Coronavirus business
interruption loan		 53 week period ended 2 April 2022
52 week
period ended
27 March
2021
Charitable
activities
£’000
Raising
funds
£’000
Total
£’000
Total
£’000
5,188
-
5,188
1
3,100
-
3,100
3,905
1,711
4
1,715
694
126
-
126
65
1,119
152
1,271
680
188
-
188
93
122
-
122
168
1,294
-
1,294
1,329
-
955
955
180
385
23
408
254
8,045
1,134
9,179
7,368
13,233
1,134
14,367
7,369
156
3
159
92
53
7
60
19
96
13
109
98
45
-
45
45
35
-
35
-
385
23
408
254

7 TAXATION

The company, which is a registered charity, is entitled to the exemptions afforded by Part XI, CTA 2010 and S256 TCGA 1992, and so is exempt from taxation on its charitable activities.

Page 33

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

8

NET EXPENDITURE BEFORE TRANSFERS NET EXPENDITURE BEFORE TRANSFERS 53 week 52 week
period ended period ended
2 April 27 March
2022 2021
£’000 £’000
Net expenditure are stated after charging:
Depreciation of tangible fixed assets
- owned 1,260 1,294
Amortisation of intangible assets
- owned 34 34
Operating lease rentals - equipment and vehicles 22 15
Auditor’s remuneration
- audit parent undertaking		 24 21
- audit subsidiary undertakings 6 5
- accountancy services 9 9
Charity trustees’ liability insurance 4 2

9 STAFF COSTS

Birmingham Hippodrome Theatre Trust employs all staff for the group. Staff costs recharged to the trading subsidiary, Birmingham Hippodrome Limited amounted to £443,663 (2020/21: £86,725).

53 week 52 week
period ended period ended
2 April 27 March
2022 2021
£’000 £’000
Wages and salaries 3,785 3,649
Social security costs 313 260
Pension costs 115 97
4,213 4,006

Included within wages and salaries is £Nil of redundancy costs (2021: £150,000).

Pensions costs are allocated to activities in proportion to employee time spent and are wholly charged to unrestricted funds.

None of the directors received any remuneration from the charity during the period (2020/21: none). No Trustee (2020/21: None) was reimbursed travel expenses (2020/21: £Nil). One trustee was reimbursed general expenses of £40 (2020/21: £Nil).

The total compensation including employer’s national insurance and pension contributions payable to key management personnel of the group and charity was £585,866 (2020/21: £616,771).

Page 34

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

9 STAFF COSTS (continued)

AVERAGE NUMBER EMPLOYED
Average number of staff/ (full time equivalents):
Administration
Production and selling
- permanent
- temporary
NUMBER OF EMPLOYEES WHOSE EMOLUMENTS
EXCEEDED £60,000
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£100,001 - £110,000
£110,001 - £120,000
£120,001 - £130,000		 Number
2022
Number
2021
43
(42)
35
(34)
82
(80)
57
(54)
280
(106)
54
(31)
405
(228)
146
(119)
Number
2022
Number
2021
2
3
2
-
1
1
1
-
-
1
1
-
-
1

Pension costs for the period for higher paid staff totalled £26,721 (2020/21: £22,964).

Visitor Services Volunteers assist with the welcoming of audiences to the theatre. This includes checking audience tickets entering the auditorium, assisting customers where required and assisting with the evacuation of audience if required. The Volunteers are requested to work at least one shift every six weeks and attend an annual training session in which they go through the evacuation procedure. They make no contribution to the pension scheme.

INTANGIBLE FIXED ASSETS
GROUP AND CHARITY
COST
27 March 2021 and 2 April 2022
AMORTISATION
27 March 2021
Charge for period
2 April 2022
NET BOOK VALUE
2 April 2022
27 March 2021		 Computer
Software
£’000
148
69
34
103
45
79		 Total
2022
£’000
148
69
34
103
45
79

10 INTANGIBLE FIXED ASSETS

Page 35

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

11
TANGIBLE FIXED ASSETS

GROUP
Assets under
the course of
construction
£’000
COST
27 March 2021
412
Additions
484
2 April 2022
896
DEPRECIATION
27 March 2021
-
Charge for period
-
2 April 2022
-
NET BOOK VALUE
2 April 2022
896
27 March 2021
412		 Dance hub
£’000
4,148
1
4,149
290
166
456
3,693
3,858		 Long lease
premium
£’000
5,001
-
5,001
778
40
818
4,183
4,223		 Hippodrome
Theatre long
leasehold
improvements
Birmingham
Royal Ballet
long
leasehold
improvements

£’000
£’000
33,441
4,211
-
-
33,441
4,211
13,453
2,967
770
41
14,223
3,008
19,218
1,203
19,988
1,244		 Fixtures,
Fittings and
equipment
IT
infrastructure
£’000
£’000
3,582
883
175
7
3,757
890
2,578
684
186
57
2,764
741
993
149
1,004
199		 Total
£’000
51,678
667
52,345
20,750
1,260
22,010
30,335
30,928

Page 36

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

11 TANGIBLE FIXED ASSETS (continued)

Under the terms of the property lease agreement granted on 1 April 1999, the charity cannot assign, underlet, charge or dispose of the theatre premises or any part thereof, except under specific circumstances detailed in the lease agreement. Furthermore, under the terms of the lease agreement, the company is restricted to using the theatre premises for live stage plays, operas, ballet performances, concerts, other entertainments and necessary ancillary activities. Charges over the charity’s leasehold property have been registered as a condition of a £4.35m grant in favour of Birmingham City Council received in 2007 and a £1.35m grant received in 1998, both expiring on 30 April 2023.

CHARITY
COST
27 March 2021
Additions
2 April 2022
DEPRECIATION
27 March 2021
Charge for period
2 April 2022
NET BOOK VALUE
2 April 2022
27 March 2021		 Assets under
the course of
construction
£’000
412
484
896
-
-
-
896
412		 Dance hub
£’000
4,148
1
4,149
290
166
456
3,693
3,858		 Long
lease
premium
Hippodrome
Theatre long
leasehold
improvements
Birmingham
Royal Ballet
long
leasehold
improvements

£’000
£’000
£’000
5,001
33,441
4,211
-
-
-
5,001
33,441
4,211
778
13,453
2,967
40
770
41
818
14,223
3,008
4,183
19,218
1,203
4,223
19,988
1,244		 Fixtures,
fittings and
equipment
IT
infrastructure
£’000
£’000
3,086
883
160
7
3,246
890
2,129
683
167
56
2,296
739
950
151
957
200		 Total
£’000
51,182
652
51,834
20,300
1,240
21,540
30,294
30,882

Page 37

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

12 FIXED ASSET INVESTMENTS

Subsidiary undertakings

The charity holds two £1 ordinary shares of Birmingham Hippodrome Limited (company registration: 01545498) at a historic cost of £1 each, which represents the entire allotted share capital of Birmingham Hippodrome Limited, a company which has trading receipts and profits from the Theatre's bars and catering operations and whose profits are covenanted annually to Birmingham Hippodrome Theatre Trust Limited. Birmingham Hippodrome Limited is incorporated in England and its registered address is the same as that of the parent charity given on page 1. Details of the subsidiary’s trading results for the period are set out in Note 22.

13
DEBTORS
Group
2022
2021
£’000
£’000
Amounts owed within one year:
Trade debtors
634
436
Amounts due from Birmingham
Hippodrome Limited (see Note 22)
-
-
Other debtors
140
85
Amounts due from related parties
18
8
Prepayments and accrued income
851
1,516
1,643
2,045
14
CREDITORS
Group
2022
2021
£’000
£’000
(a)
AMOUNTS FALLING DUE WITHIN
ONE YEAR:
Trade creditors
1,515
423
Other taxation and social security
517
138
Other creditors
1,438
1,777
Bank borrowings
333
-
Accruals
1,653
171
Deferred income (note 14b)
10,166
6,455
15,622
8,964
(b)
DEFERRED INCOME
Balance as at 27 March 2021
Amount released to income
Amount deferred in period
Balance as at 2 April 2022
Deferred income comprises advance box office receipts.		 Charity
2022
2021
£’000
£’000
519
355
1,176
414
137
85
-
-
850
1,515
2,682
2,369
Charity
2022
2021
£’000
£’000
1,463
416
517
138
1,264
1,669
333
-
1,651
169
10,166
6,455
15,394
8,847
Group
Charity
£’000
£’000
6,455
6,455
(6,455)
(6,455)
10,166
10,166
10,166
10,166

Page 38

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

15
CREDITORS: after one year
Bank borrowings
16
BORROWINGS
Bank borrowings
Payable within one year
Payable after one year		 Group
2022
£’000
2021
£’000
2,167
-
Group
2022
£’000
2021
£’000
2,500
-
333
-
2,167
-		 Charity
2022
£’000
2021
£’000
2,167
-
Charity
2022
£’000
2021
£’000
2,500
-
333
-
2,167
-		 Charity
2022
£’000
2021
£’000
2,167
-
Charity
2022
£’000
2021
£’000
2,500
-
333
-
2,167
-
-
-

On 28 April 2021, the company entered into a loan under the Coronavirus Business Interruption Loan Scheme with Lloyds Bank for an amount totalling £2,500,000. The loan is secured over the assets of the charity and carries an interest rate of 2.0 % plus base rate . The first repayment instalment was made in August 2022 and the final instalment is due in May 2024.

17 SHARE CAPITAL Group Charity
2022 2021 2022 2021
£ £ £ £
Allotted, called up and fully paid
Ordinary shares of £1 each 8 8 8 8

Eight directors of the company hold 1 ordinary share in accordance with the qualification required by the Articles of Association. No person may hold any share in the capital of the company unless he is a director of the company.

The Articles of Association prevent any dividends being paid on the share capital of the company. Furthermore, the members are not entitled to any distribution on the dissolution or winding up of the company.

Page 39

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

18 RESTRICTED FUNDS (GROUP AND CHARITY)

(a) The income funds of the group include restricted funds comprising the following unexpended balances of donations and grants held to be applied for specific purposes.

2022
Lease premium
Hippodrome Theatre
leasehold improvements
Birmingham Royal Ballet
leasehold improvements
First Night
Creative Programme
grants
Dance Hub
Birmingham City Council
Birmingham City Council
– Inge street
ACE funding
2021
Lease premium
Hippodrome Theatre
leasehold improvements
Birmingham Royal Ballet
leasehold improvements
First Night
Creative Programme
grants
ACE Culture Recovery
Fund
Dance Hub
Birmingham City Council
Birmingham City Council
- Inge Street
 Balance at
27 March
2021
£’000
4,223
20,008
1,253
8
-
3,875
36
605
-
30,008
Balance at
28 March
2020
£’000
4,263
20,656
1,294
8
-
-
4,041
-
-
30,262		 Income
£’000
-
-
-
-
814
-
100
112
400
1,426
Income
£’000
-
-
-
-
498
3,185
-
36
605
4,324		 Expenditure
£’000
-
-
-
(8)
(814)
-
(136)
-
-
(958)
Expenditure
£’000
-
-
-
-
(498)
(2,007)
-
-
-
(2,505)		 Transfers
between
funds
£’000
(40)
(648)
(41)
-
-
(166)
-
-
-
(895)
Transfers
between
funds
£’000
(40)
(648)
(41)
-
-
(1,178)
(166)
-
-
(2,073)		 Balance at
2 April
2022
£’000
4,183
19,360
1,212
-
-
3,709
-
717
400
29,581
Balance at
27 March
2021
£’000
4,223
20,008
1,253
8
-
-
3,875
36
605
30,008

Page 40

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

18 RESTRICTED FUNDS (GROUP AND CHARITY) (continued)

The lease premium, Hippodrome Theatre and Birmingham Royal Ballet leasehold improvements funds relate to assets acquired by way of restricted capital grants.

The First Night fund provides discounted tickets for students between the ages of 16 and 23.

Creative Programme grants relate to amounts for specific artistic programmes.

Dance Hub funding has been received to develop a new space providing dance studio facilities to local dance groups and choreographers and office space to house One Dance UK, who have relocated to the Hippodrome.

The Board have entered into an agreement with the Birmingham City Council to receive a grant of £605,000 for a front of house development project in 2021 and a further grant of £112,000 in 2022. The Board have made a commitment to continue £300,000 of unrestricted funds in order to receive this grant. Overall, £896,000 (2020/21 £412,000) has been spent on the project up to the year end, and is included as assets under the course of construction (see Note 11).

The ACE Culture Recovery Fund is a rescue package for cultural organisations put in place by the Government in response to the Coronavirus pandemic. Part of the funding agreement allowed for an element of the funding to be used to boost reserves and the transfer to unrestricted reserves represents the satisfaction of the initial restriction.

There are floating debenture and fixed property charges totalling £5m held by the Arts Council of England resulting from grants for refurbishment, expiring 2022 (£4m) and 2024 (£1m).

Transfers to unrestricted funds relate to the amortisation of the capital grants within each fund.

(b) ANALYSIS OF NET ASSETS BETWEEN FUNDS (GROUP)

RESTRICTED FUNDS
UNRESTRICTED FUNDS:
Share capital
Non designated
Designated		 Fixed
assets
£’000
29,537
-
843
-
30,380		 2 April 2022
Current
Assets
Current and
non-current
liabilities
£’000
£’000
44
-
-
-
17,983
(17,789)
2,557
-
20,584
(17,789)		 Total
£’000
29,581
-
1,037
2,557
33,175

Page 41

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

18 RESTRICTED FUNDS (GROUP AND CHARITY) (continued)

(b)

RESTRICTED FUNDS
UNRESTRICTED FUNDS:
Share capital
Non designated
Designated		 Fixed
assets
£’000
29,771
-
1,236
-
31,007		 27 March 2021
Current
Assets
Current
liabilities
£’000
£’000
237
-
-
-
9,661
(8,964)
2,417
-
12,315
(8,964)		 Total
£’000
30,008
-
1,933
2,417
34,358

(c) ANALYSIS OF NET ASSETS BETWEEN FUNDS (CHARITY)

RESTRICTED FUNDS
UNRESTRICTED FUNDS:
Share capital
Non designated
Designated		 Fixed
assets
£’000
29,537
-
802
-
30,339		 2 April 2022
Current
Assets
Current and
non-current
Liabilities
£’000
£’000
44
-
-
-
17,816
(17,561)
2,557
-
20,417
(17,561)		 Total
£’000
29,581
-
1,057
2,557
33,195

Page 42

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

18 RESTRICTED FUNDS (GROUP AND CHARITY) (continued)

(c)
Fixed
assets
£’000
RESTRICTED FUNDS
29,771
UNRESTRICTED FUNDS:
Share capital
-
Non designated
1,190
Designated
-
30,961
19a
UNRESTRICTED NON-DESIGNATED FUNDS
27 March 2021
Net expenditure
Transfer from restricted funds
Transfer to designated funds
2 April 2022
28 March 2020
Net expenditure
Transfer from restricted funds
Transfer to designated funds
27 March 2021		 27 March 2021
Current
Assets
Current
liabilities
£’000
£’000
237
-
-
-
9,757
(8,847)
2,417
-
12,411
(8,847)
Group
£’000
1,933
(1,651)
895
(140)
1,037
Group
£’000
2,108
(2,108)
2,073
(140)
1,933		 Total
£’000
30,008
-
2,100
2,417
34,525
Charity
£’000
2,100
(1,798)
895
(140)
1,057
Charity
£’000
2,108
(1,941)
2,073
(140)
2,100

Page 43

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

19b UNRESTRICTED DESIGNATED FUNDS (GROUP AND CHARITY)

Balance at Balance at Transfers Balance at
27 March between 2 April
2021 Income Expenditure funds 2022
£’000 £’000 £’000 £’000 £’000
Repairs reserve 2,167 - - 140 2,307
Hippodrome Square 250 - - - 250
2,417 - - 140 2,557
Balance at Transfers Balance at
28 March between 27 March
2020 Income Expenditure funds 2021
£’000 £’000 £’000 £’000 £’000
Repairs reserve 2,027 - - 140 2,167
Hippodrome Square 250 - - - 250
2,277 - - 140 2,417

The Board regularly considers the Repairs and Maintenance liabilities of the trust in order to ensure that sufficient funds are set aside annually to meet the Trust’s repairs and maintenance obligations (over a twenty five year period) under the lease with Birmingham City Council, as funds allow and will be drawn down over that period. Following an Audit Committee review in November 2012, Trustees approved an ongoing annual allocation of £140,000 according to planned maintenance over a five year period. In 2021/22 £Nil (2020/21: £Nil) was expended on Repairs and Maintenance included in this plan.

The Board have also committed to improving the area outside of Birmingham Hippodrome Theatre Trust to assist the rebrand of Hippodrome Square, as such £250,000 has been designated for this purpose. The work is ongoing, but the designated funds are expected to be used in the near future.

20 CASH GENERATED/(ABSORBED) FROM OPERATIONS

RECONCILIATION OF NET EXPENDITURE TO NET CASH
FLOW FROM OPERATING ACTIVITIES
Net expenditure for the reporting period
ADJUSTMENTS FOR:
Depreciation charges
Amortisation charges
Interest from short term deposits
Interest paid
Government grant received for CBIL interest paid
Decrease/(increase) in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors and deferred income
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES		 (1,183)
1,260
34
(50)
35
(35)
35
401
6,326
6,823		 (289)
1,294
34
(47)
-
-
(30)
(516)
(4,045)
(3,599)

Page 44

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

21 ANALYSIS OF CHANGES IN NET DEBT

GROUP
Cash and cash equivalents
Borrowings excluding overdrafts
Borrowings excluding overdrafts (current)		 27 March
2021
Cashflows
2 April
2022
£’000
£’000
£’000
10,199
8,706
18,905
-
(2,167)
(2,167)
-
(333)
(333)
10,199
6,206
16,405

22 RELATED PARTY ACTIVITIES

NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARY UNDERTAKINGS – BIRMINGHAM HIPPODROME LIMITED (company number: 01545498)

A summary of the Birmingham Hippodrome Limited trading results are shown below. Audited accounts are filed annually with the Registrar of Companies. Its registered office is the same as that of the parent charity, detailed on page 1.

detailed on page 1.
Period ended Period ended
2 April 27 March
2022 2021
£’000 £’000
PROFIT AND LOSS ACCOUNT Total Total
Turnover 1,252 49
Cost of sales (343) (26)
Administrative expenses (757) (196)
Profit/(loss) on ordinary activities before tax 152 (173)
Taxation - -
Profit/(loss) after tax 152 (173)

The aggregate amount of the company’s assets, liabilities, share capital and reserves was:

Fixed assets
Current assets
Creditors: amounts falling due within one year
`
Net (liabilities)
Represented by share capital plus (deficit) on reserves		 2022
£’000
42
1,343
(1,400)
(15)
(15)		 2021
£’000
46
317
(530)
(167)
(167)

Page 45

Birmingham Hippodrome Theatre Trust Limited NOTES TO THE FINANCIAL STATEMENTS

22 RELATED PARTY ACTIVITIES (continued)

Transactions between Birmingham Hippodrome Theatre Trust Limited and Birmingham Hippodrome Limited and balances at the year-end date are as follows:

Limited and balances at the year-end date are as follows:
2022 2021
£’000 £’000
Distribution of profit from trading subsidiary - -
Staff costs recharged 443 86
Amounts owed by group undertakings 1,176 414

Transactions between Birmingham Hippodrome Theatre Trust Limited and Dance Consortium Limited and balances at the year-end date are as follows:

Management charge 18 8
Amounts due from related parties 18 8

The balances noted above are unsecured.

23 PENSION COSTS

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £115,000 (2020/21: £97,000). Contributions totalling £2,000 (2020/21: £15,000) were payable to the fund at the period end and are included in other creditors.

24 CONTINGENT LIABILITIES

Birmingham Hippodrome Theatre Trust Limited is a member of a VAT group with its subsidiary Birmingham Hippodrome Limited. It has entered into a guarantee for all group companies with HMRC. At the year end, this potential liability was £399,000 (2020/21: £69,000).

25 RESULTS OF PARENT CHARITY

The total income of the parent charity was £11,932,000 (2020/21: £7,032,000).

The net movement in funds of the charity was £1,332,000 net expenditure (2020/21: £122,000 net expenditure).

The movement in unrestricted funds of the parent charity was £903,000 net income (2020/21: £132,000 net income).

Page 46