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2021-03-31-accounts

Charity Registration No. 513771

Company Registration No. 01697756 (England and Wales)

NORTH EAST THEATRE TRUST LIMITED

CONSOLIDATED

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

NORTH EAST THEATRE TRUST LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Registered name North East Theatre Trust Limited
Trading name Live Theatre
Trustees P M Callaghan
S Emmas
M F Henry
M F Percy
S M Wilson
K L H Winskell
S Brown
J R McKinnell
B Hobson
L Robson
R S Cantrill-Fenwick
P T H Shevlin
I A Din
R M Elgie
Charity number 513771
Company number 01697756
Registered office 29 Broad Chare
Quayside
Newcastle upon Tyne
NE1 3DQ
Telephone 0191 261 2694
Auditor RMT Accountants & Business Advisors Ltd
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Bankers Lloyds Bank plc
102 Grey Street
Newcastle upon Tyne
NE99 1SL
Virgin Money
131-135 Northumberland Street
Newcastle upon Tyne
NE1 7AG
Solicitors DWF LLP
2nd Floor
Central Square South
Orchard Street
Newcastle upon Tyne
NE1 3AZ

NORTH EAST THEATRE TRUST LIMITED

CONTENTS

Page
Chief Executive’s Annual Report 1 – 4
Trustees' Report 5 – 11
Independent Auditor's Report 12 – 14
Group Statement of Financial Activities 15 – 16
Group Balance Sheet 17
Company Balance Sheet 18
Group Statement of Cash Flows 19
Notes to the accounts 20 – 41

NORTH EAST THEATRE TRUST LIMITED

CHIEF EXECUTIVE’S ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Introduction

The Annual Report notes in detail the activities of the charity throughout the 2020/21 financial year.

This is my first report as Executive Director/Joint Chief Executive with Jack McNamara joining as Artistic Director/Joint Chief Executive in August 2021. Jim Beirne MBE left the company in March 2021 after 21 years as Chief Executive. During this time Jim transformed the company and its fortunes, developing with the Board of Trustees, its innovative business model of developing social enterprises and using property to create profit for purpose thus ensuring the continued creative output for the theatre.

It has been the strangest of years as the doors of Live Theatre were closed to live audiences for the duration of the 2020/21 financial year due to the global pandemic caused by Covid-19. We closed on 16th March 2020 when the UK went into lockdown and cultural organisations such as Live Theatre were closed to the public and not able to reopen until the summer of 2021. However, although our doors were closed we continued to develop work and ideas to support the sector. We launched Livewired, our online, digital programme in October 2020 and moved our Children and Young People’s programme online of which we give details of both later.

Despite this we have been able to sustain the company during this time and have made use of a number of government support schemes as well as receiving invaluable support from trusts and foundations including the Esmee Fairbairn Foundation and The Garfield Weston Culture Fund. The majority of our staff team were furloughed using the government’s Job Retention Scheme which we used throughout the year including when we had the ability to flexibly furlough team members which enabled us to develop our work. We were also pleased to receive support from the Culture Recovery Fund administered by Arts Council England on behalf of DCMS as well as grants via Newcastle City Council as a business rate payer.

As well as emergency support we have received throughout the year we remain extremely grateful to those trusts and foundations that continue to support and fund our work, many of them long term supporters. Our thanks go to them all, for capital support; Wolfson Foundation, Theatres Trust and the Foyle Foundation and for revenue support; Esmee Fairbairn Foundation, John Ellerman Foundation, The Shears Foundation, The Squires Foundation, Sir James Knott Trust and many more. We also thank our stakeholders Arts Council England and Newcastle Cultural Investment Fund

Artistic Programme

When the pandemic struck we were mid-way through our Elevator Festival, our showcase for new and emerging creative talent in the region with work just about to be presented to audiences. Despite not being able to present to a live audience all of the shows were performed and filmed for the benefit of the creative teams and companies involved.

We were forced to cancel our Spring/Summer 2020 season in Spring 2020, which was already selling well, and as the impact of the pandemic became clearer and that the effects of Covid on the cultural and theatre sectors would be devastating, with the freelance and independent sector would bear the brunt. We recognised that this risked the loss of new and emerging voices as well as early and mid-career artists. As a result we began to develop a creative programme for the year that worked within the challenges of national lockdowns and post lockdown times with continued Covid restrictions but offered opportunities for the freelance and independent sector.

We were clear about the aims of this programme which was to create a highly visible programme of investment and development in theatre projects and artists, demonstrating Live Theatre is active, accessible and open. This programme of work also aimed to clearly communicate Live’s value as a cultural organisation during a period of uncertainty and sectoral change. We hoped to communicate the clear message that we were investing now to ensure a future for theatre in the region.

This aim was to be carried out with a focus on creating opportunities for artists with regards to the crisis within the cultural freelance sector while maintaining Live Theatres diverse voice and artist representation. As well as an understanding of how to enable affirmative action in response to Black Lives Matter and culture wide calls for structural change.

Live’s artist development work ‘Elevator’ has gone from strength to strength in recent years with an ever more increasing range and number of artists working with us. The main parts of the programme are the annual Elevator Festival, open script reading windows, the Introduction to Playwrighting course, 10 Minutes to....and our bursary programmes.

NORTH EAST THEATRE TRUST LIMITED

CHIEF EXECUTIVE’S ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Previous years progress in our ‘Elevator Programme’ illustrates our commitment to developing the artform. The continued investment, supported in particular by the John Ellerman Foundation, and allocation of resources has seen the number of undiscovered and emerging playwrights and theatre practitioners that we have nurtured increase significantly with applications for participation from writers, actors, directors, designers, technicians and theatre makers from a broad geographic area. Although the pandemic caused us to rethink how we delivered our talent development programme it did not halt it.

In the first three months of the national lockdown (April – June 2020) we offered three artist development opportunities through an extended period in order to make the opportunities more accessible.

Aimed at emerging to early career artists the three individual programmes were:

10 Mins to....Call Home – 301 submissions were received for this short play competition and ten plays were selected and given micro-commissions, overall the project engaged 35 freelance artists of which over half were new to Live Theatre and over three quarters were North East artists. Nine of the plays were produced and distributed digitally, one play remains in development. The online distribution of the plays accelerated our foray into digital work and we launched Livewired our digital programme of work. We will continue to develop and grow this work. The following plays were produced for 10 Minutes to...Call Home

Writer Play
Mandi Chivasa Amai Vangu (My Mother)
Benjamin Storey Gutter weeds
Ellen McNally Off Peak
John Hickman Blyth Spirit
Nail McCarthy Star Fish
Sarah Tarbit Invisible Boundaries
Rebecca Glendening Sheltered
Olu Alakija Watching and waiting
Gobscure You can’t start a revolution sitting on your arse

The digitally released plays have had over 24,000 views so far on You Tube alone and were positively received on social media. The critical response was also positive including a review in The Guardian by Mark Fisher who stated “this is the Newcastle upon Tyne theatre doing what it knows best; championing new playwrights and testing out new ideas on stage. This is theatre; we just happen to be watching it online.” A huge benefit for the online work is the new and emerging artists work received a far greater reach than if only presented within the theatre.

Live Theatre Bursaries – 201 applications were received for a bursary. The original intention was to award ten Live Bursaries of £2,000 each. however, having reviewed the applications and rethinking how we could use our resources to support as many freelance artists and new ideas as possible it was decided to split the bursaries into two tiers; Full Bursaries and Seed Bursaries. Eight Full Bursaries and six Seed Bursaries were awarded, fourteen in total and four more than originally planned.

Open Script Submissions - 302 script submissions were received during the open window. All were read and feedback given.

Further Creative Opportunities

We successfully took our Introduction to Playwrighting Course online and this was held for ten weeks in Winter 2020. There were 30 successful applicants and it was facilitated by a wide range of theatre practitioners. The online nature of the programme allowed for this broader range of facilitators.

Following the success of 10 Minutes to.....Call Home, as part of our Livewired programme, we then went on to develop and produce the Five Plays of Christmas.

NORTH EAST THEATRE TRUST LIMITED

CHIEF EXECUTIVE’S ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Writer Play
1. My Door
2. Those Yet to Come
3. End of Term Show
4. The Whale washed Up On Christmas Eve
5. Skeletons in Cullercoats

Again, this work attained a far greater reach for the artists than would have presenting in the theatre, with so far 25,822 views online.

A reopening programme was also devised during this time focussing on new and emerging artists and reopening planned for September 2021.

Children and Young People’s Work

It is recognised nationally and internationally national lockdowns and Covid related restrictions throughout the year has had a negative impact on children and on young people. To counter some of the isolation they were experiencing and feeling we took both the Youth Theatre and Live Tales programme online.

We established the Youth Theatre Reconnection Collection a ten-week online term. We established six groups and there were over 100 participants. Once this was established, we continued with the online delivery for a further two terms online.

We also developed our online offer for Live Tales. First of all we developed Winter Tales, four CPD sessions for teachers. We worked with seven teachers/schools to support them to create full illustrated stories. In total 190 pupils were engaged in this programme.

We also established a trial for an online Play Makers programme – an online schools programme focussing more on playwrighting. We worked with five schools, over five sessions and engaged 96 pupils. This pilot programme led to a further 44 workshops with 1,223 pupils from 27 different schools delivered by six freelance facilitators.

Alongside this our volunteers who support our children and young people’s work are very important to us. We have worked with a core group of 16 volunteers with creative catch ups to counteract any isolation they were feeling over the year and these continue.

Financial viability

Live Theatre continued with its innovative financial model using the profits from social enterprises to build earned income and contribute to the charitable objectives of Live Theatre. The ongoing relationship with our restaurant partners (four separate venues) has been particularly successful including the opening of the new pub and music venue Charts adding a healthy new source of income. Although the pandemic has negatively impacted some of our income from these sources this year due to them being closed for several months we were successful in securing Culture Recovery Fund to negate some of the impact of this.

Despite the difficult year we continue to make progress to stabilise our finances and balance a diverse and successful artistic programme with prudent financial management using effective financial controls, monitoring and reporting mechanisms.

Finance and Personnel sub-committee (F&P) meet regularly to consider the management accounts, risk and overall financial health of the company as well as people matters. The F&P reports in writing to the Board at each meeting ensuring it is clear whether the board is being asked to make a decision or not.

At the end of the 2020/21 financial year group unrestricted reserves had been increased in line with forecasts due primarily to accessing the Job Retention Scheme and Cultural Recovery Fund. The four-year grant from the Esmee Fairbairn Foundation (secured in early 2018) continued supporting the financial resilience and charitable activities of Live Theatre.

We continued to pay artists and freelance staff fairly – based on the Independent Theatre Council rates of pay Live Theatre pays slightly higher than this. When shows were cancelled due to the pandemic we honoured all of our obligations to freelance artists. In addition, we pay all members of staff (including casual) at least the National Living Wage.

NORTH EAST THEATRE TRUST LIMITED

CHIEF EXECUTIVE’S ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

We have continued to invest in the estate and have used the enforced closedown to start the capital project to improve our impact on the environment as well as improve access and visibility of the theatre. We have explored new sources of income to exploit our physical assets and through 2020/21 during the Covid-19 pandemic we worked with major stakeholders and Trust and Foundations to secure Live Theatre’s viability during 2020/21 and beyond.

Although, we were once again successful in attracting support from a range of trusts and foundations for a number of areas of our work including the social enterprise model, talent development and the Children and Young People’s programme, this area is proving more competitive and we are finding it takes a longer period of time to secure the funding.

At the end of the 2020/21 financial year the group ended with a net income of £1,106,267 to unrestricted funds. We made £4,629 of repayments against our Newcastle City Council capital loan. Over £500,000 of income was derived from Live Theatre’s social enterprises.

Management and Governance

The Board of Trustees and Finance and Personnel sub-committee met bi-monthly – with F&P meeting more regularly. Standing agenda items included monitoring and reporting KPI’s, Artistic Programme, Creative Case, risks, and financial accounts. Written reports were prepared for Board on these, with F&P considering and evaluating the financial papers in detail prior to making written recommendations to Board for consideration and approval.

The Board took time out in May 2020, to undertake training, consider the strategic direction of Live Theatre, and review mission, vision and values, sustainability, resilience and financial strategy. This work was also picked up during bi-monthly Board meetings as well as post year end.

Strengthening the diversity and skill set of the Board was a priority through the year, underlining our Governance progress and mirroring the progress made in the diversity of our work.

The board of trustees has continued to meet regularly throughout the year supporting the executive team and the wider staff team during this difficult period. Members of the Finance and Personnel Committee have, in particular, dedicated much time supporting the development of sustainable budgets for the short and medium term leaving no stone unturned in this pursuit. Trustees involved in the recruitment of the new leadership team also spent a significant amount of time on this with a huge amount of interest nationally for both roles culminating in the appointment of Jack in spring 2020. Trustee members of the Creative Sub-group of the board also spent time supporting the Creative Team and their work following the departure of Joe Douglas, Artistic Director in November 2020.

Future Plans

The charity now has a range of buildings and physical assets that create a substantial and sustainable income for Live Theatre. Over the next few years we will continue to concentrate on consolidating these assets to make as much return as possible from them to reinvest into our mission. This will support the charity as the effects of the pandemic materialise in the coming years.

The capital project funded via the ACE small capital grants scheme, Wolfson Foundation Theatre’s Trust and Foyle Foundation will be completed during 2021/22 which will result in a better environment for creative teams, audiences, staff and all visitors.

The artistic programme will continue to identify and invest in aspiring writers, new plays and young companies and artists to keep the pipeline of new theatre flowing for the sector. It will include new work, initiatives and projects led and influenced by our new Artistic Director Jack McNamara; in the Children and Young People’s programme, in the way Live Theatre utilises digital channels, in the way it develops its partnership with the University of Northumbria and the University of Sunderland, with co-producers and national and international producers, and with the changing face of the communities of the North East.

Despite the many challenges facing the sector we are excited about what the future holds for Live Theatre.

Jacqui Kell

Executive Director/Joint Chief Executive

Date: 25 January 2022

NORTH EAST THEATRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their report and accounts for the year ended 31 March 2021.

The board of trustees are satisfied with the performance of the group and charity during this incredibly difficult year and the position at 31 March 2021 and consider that the charity is in a stable position to continue its activities during the coming year, and that the charity's assets are adequate to fulfil its obligations. We have nothing but admiration for the team at Live Theatre who with the ongoing support of the Board of Trustees has overcome this immensely difficult and trying year. Despite the many hurdles faced they have continued to support the sector, deliver online work as well as to stabilise the company – this is a huge achievement and the efforts required can not be underestimated.

We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)”.

Objectives and activities

The objects of the charity are to promote, maintain, improve and advance education, particularly by the production of plays and encouragement of the Arts.

The principal activities of the company planned for the year were:

Through its activities the charity aims to:

The new priorities could be summarised as:

To further its objectives in 2020/21, the charity aimed for:

Short term

The immediate goals were:

Mid to long term

Public sector investment continues to decrease as a result of the economic recession. In response a significant goal is to increase unrestricted resources in the midterm. This will include:

NORTH EAST THEATRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

However, as a result of Covid-19 many of these plans had to be reviewed and deferred whilst the sector as a whole dealt with the impact of Covid-19, national lockdowns, restrictions in place and not being physically open for the whole of the 2020/21 financial year. As a result the Trustees along with the Executive Team dealt with, throughout the year, the ongoing challenges presented and in this year dealt with immediate priorities amending plans and responding accordingly to deliver a primarily online, digital creative programme, supported the freelance sector, and secured financial and other support to sustain the company. We have reset our business plan accordingly to factor in an additional year of NPO funding from ACE.

Public benefit that is provided by the charity

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

Live Theatre is one of the leading new writing producing theatres in the UK. It produces new plays of world class quality, finds and develops creative talent, and runs one of the largest free arts education programmes in the region. It has an international reputation for this work that involves many and various audiences in the North East and elsewhere around the world.

Details of our activities across the year (including its main programmes, projects, or services provided) that contribute to the achievement of the stated objectives is referred to in detail within the Chief Executive’s report where she sets out the specifics of the Covid-19 restricted 2020/21 Creative Programme.

The charity continues to pursue strategies to provide access for all to its work. The physical building has been made accessible to all. Whilst charges for admission to the Live Theatre Productions are made for financial reasons, there is a comprehensive scheme of concessions, selected complimentary tickets for partners and charities and free events and talks. There are no charges made for access to the Education and Participation programmes.

Summary of main activities of the charity in relation to its objects

Live Theatre has completed an innovative ten-year Programme of Change focussed on the creation and realisation of capital assets and succession planning. The Programme of Change has diversified the charity’s income streams, ultimately resulting in making more theatre and devising more projects that inspire an increasing number of adults, young people and children to acquire skills that raise their aspiration and potential, contribute to closing the region’s skills gap, and make a positive contribution towards a creative, equal and just society.

Although volunteering opportunities were limited during 2020/21 active, creative based sessions to engage with our volunteers happened throughout the year – in part due to the feelings of isolation the volunteers were experiencing.

Achievements and performance

Despite the clear constraints the trustees are pleased with the achievements Live Theatre has accomplished this year which includes:

NORTH EAST THEATRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Fundraising activities

In 2020/21 the charity continued its fundraising activities in support of delivery of its objects.

Revenue funds raised for core, project and Education and Participation activities:

Arts Council England (core) £626,723
Esmée Fairbairn Foundation £100,000
Newcastle Cultural Investment Fund £10,000
John Ellerman Foundation £30,000
The Squires Foundation £15,000
Sir James Knott Trust £5,000
The Shears Foundation £5,000
The Lucy Winskell Fund at Community Foundation £2,119

A Capital development scheme progressed using funds raised from the ACE Small Capital Scheme, Wolfson Foundation and Theatres Trust.

The continued public sector cutbacks and the uncertainties around Brexit make for a challenging landscape for any charity and made even more challenging by Covid-19. This environment also affects the support gained from Trusts and Foundations as applications face a more competitive environment. Despite this Live Theatre has been supported by many during this difficult year and thanks are given by the Trustees to those partners, stakeholders, trusts and foundations that have given their unwavering support. We have also benefited greatly from government support and without Culture Recovery Funding and the Job Retention Scheme it would have been impossible to see a way out of the pandemic for the company.

The aim of the organisation since 2008 has been to develop unrestricted income via its social enterprises. Some of this income started in 2011. Live Works is the fourth and largest of these social enterprises, a significant capital project which completed in 2016 and has since created new funds to support the charity. We are pleased to report during 2020/21 our current tenant has extended their lease by a further five years. We continue to work with our managing agent and our tenants in our buildings to create a positive working relationship to ensure future sustainable income streams. 2020/21 has also been a difficult year for many of our tenants especially those operating in the hospitality industry but we continue to work with and supported them in their reopening after the national lockdown.

Fundraising practices

The charity and group does not use a commercial participator to raise funds, nor have we engaged volunteers on our behalf/in aid of our charity, during the period relating to this report; all our fundraising has been conducted by Trust staff. Any monies raised directly from the public follow all guidelines set out by the Charity Commission, The Code of Fundraising Practice and English & Welsh law in every respect. There have been no fundraising compliance issues, nor have we received any complaints in relation to our public fundraising during the period relating to this report.

Financial review

Our group reserves total £9,013,235, which includes £7,639,190 of restricted funds, £30,000 of designated funds and £1,344,045 of unrestricted funds. Of these unrestricted funds £6,489,947 are held in fixed assets and investment properties, with an associated long-term loan of £5,739,630. Therefore, our free reserves (being those not tied up in fixed assets, designated or restricted funds) stand at £593,728 as at 31 March 2021. The Trustees have a policy in place which notes that the group should aim to hold building overhead and salary costs for a period of three months within free reserves. The position at the end of March 2021 is a free reserves figure higher than expected due to funds being required to support us in 2021/22 which will diminish this figure.

NORTH EAST THEATRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

As explained on page 1, the year ended 31 March 2021 has been significantly impacted operationally by Covid-19. It has also been a challenging year financially for our sector and stakeholders. However due to mitigating actions taken by the executive team and successful funding bids, the group does expect an improvement in the free reserves position at 31 March 2022, supporting the longer term strategy explained above. The Trustees are pleased to note the improving position on free reserves and given the positive outturn this financial year and the plans in place for 2021/22 we have used this information to assess our going concern assumption. Trustees are content based on these detailed projections and related sensitivity analysis that the group has adequate funds to consider meeting its liabilities as they fall due over the next 12 months. Further details of this are found in the going concern accounting policy in note 1.2.

Arts Council England provided a revenue grant of £626,723 and Newcastle Culture Investment Fund provided a grant of £10,000. Both grants were used to support the core activity of the charity in the delivery of theatre productions, development of writers and the delivery of the education programme.

We have benefited substantially this year, receiving additional support from funding bodies and the government, including Culture Recovery Fund grant of £429,769 provided by Arts Council England and £249,000 provided by Garfield Western Foundation. A total of £393,517 was received through the Job Retention Scheme as well as £139,278 of business support grants provided by Newcastle City Council.

Corporate sponsorship was received from Kilfrost Limited. The growing Friends Scheme has generated £9,150.

The Group Statement of Financial Activities shows net incoming resources for the year of unrestricted funds of £706,320 (2020: outgoing resources £375,320), and net realised incoming resources of restricted funds of £24,967 (2020: net realised outgoing resources of £39,329), making net overall realised incoming resources of £731,017 (2020: net overall realised outgoing resources of £376,474).

The total reserves at the year end stand at £9,013,235 (2020: £8,282,218).

Financial performance of the charity's subsidiary undertakings

Live Trading Limited generated profits of £125,997 (2020: £381,141) for the financial year. The profits for 2021 were gifted to the charity at the year end (2020: £816,950).

LiveWorks (Newcastle upon Tyne) Limited had generated a profit of £79,245 (2020: loss of £332,993 in which £412,213 revaluation loss was recognised). £79,245 (2020: £12,227) was gifted to the charity at the year end.

Risk Management

The charity is open to the usual financial risks of any organisation, and controls are in place to minimise these risks. All material financial commitments and decisions are approved through the Finance & Personnel sub-committee and the main Board of Trustees.

A risk register is maintained by the charity which set out the strategic and operational risks as well as the actions the charity takes to mitigate these. The major risks to the Charity are:

Covid-19

Ongoing restrictions, audience reticence, reduced income streams could cause longer term issues to the running of the company.

Core funding (Public Sector Support)

The continuing reduction of public sector investment in culture creates a challenging environment in which to operate.

Cash flow

Cash flow is monitored on a daily basis and a cash flow is forecast forward on a weekly basis.

Live Works

Projected rental income from Live Theatre's properties is not being achieved. Knight Frank, the leading UK and London property agents, have been contracted to market the properties to as wide a market as possible.

NORTH EAST THEATRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Loss of Key Staff

We will continue to grow a strong senior management team to provide short term cover and medium-term recruitment and replacement options. There has been a succession plan in place for a number of years and the stalled recruitment of a new CEO in March 2021 because of Covid-19, was restarted in the autumn, with the successful appointment in December 2020 of Jacqui Kell as Executive Director & Joint Chief Executive. The recruitment of a new Artistic Director & Joint Chief Executive concluded in April 2021 with the appointment of Jack McNamara (who started with the company in August 2021).

Structure, governance and management

The charity is constituted as a company limited by guarantee and is therefore governed by a memorandum and articles of association. The directors of the company are also trustees of the charity.

Eligibility for membership of the charity and membership of the board of trustees is governed by the memorandum and articles of association. There are no restrictions in the governing document on the operation of the charity or on its investment powers, other than those imposed by general charity law.

Senior staff (key management personnel) to whom the Board of Trustees delegated the day to day management of the charity during 2020/21 year were:

Chief Executive Jim Beirne Operations Director Jacqui Kell (then Executive Director/Joint CEO from 1st March 2021) Artistic Director Joe Douglas (resigned November 2020)

The trustees, who are also the directors for the purpose of company law, and who served during the year

were:

P M Callaghan S Emmas M F Henry M F Percy S M Wilson K L H Winskell S Brown J P Beirne (Resigned 31 March 2021) J R McKinnell B Hobson L Robson R S Cantrill-Fenwick P T H Shevlin I A Din R M Elgie

The memorandum and articles of association allow for up to 18 trustees.

Potential trustees are suggested to the board in order to satisfy any skill shortfall on the board or to assist with a specific project. The individuals submit their CVs and are interviewed by the chair and two other board members. A recommendation is then made to the full board for their consideration. The recruit is then co-opted as a trustee pending election at the next AGM.

The board, who meet bi-monthly, administers the charity. There is a Finance & Personnel sub-committee that meets bi-monthly and various other sub-committees covering performance and other topics that meet on an ad hoc basis. Detailed written board reports and an agenda are prepared by the officers of the charity and circulated in advance of meetings. A Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity.

The charity has a long standing relationship with its key stakeholders: Arts Council England (ACE) and Newcastle City Council. ACE regard North East Theatre Trust as the leading new writing producer in the North East. Newcastle City Council regards the theatre as one of the City's key cultural assets. Both stakeholders can send an observer to attend board meetings.

NORTH EAST THEATRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

The subsidiary company, Live Trading Limited, supports the objectives of the charity by the hiring of Live Theatre facilities, the operation of its bar and the rental and management of the Social Enterprises of North East Theatre Trust gifting surplus income to the charity. Three board members of North East Theatre Trust are also board members of Live Trading Limited.

The board of trustees is satisfied that the charity's assets in each fund are available and adequate to fulfil its obligations in respect of each fund.

Statement of trustees' responsibilities

The trustees, who are also the directors of North East Theatre Trust Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, 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 charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

RMT Accountants & Business Advisors Ltd were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

NORTH EAST THEATRE TRUST LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

A word from the Chair of Trustees

The opening words of the annual report and accounts, using the usual reporting language of such documents, say that the Board is satisfied with performance: something of an understatement. Despite an incredibly difficult and challenging year the Board of Trustees is full of admiration and praise for and gratitude to the executive team and all our staff who have worked so hard in this last year and achieved so much despite the adverse circumstances. On behalf of the board, I thank them all.

The Trustees began a succession strategy several years ago and this year in question was always planned to be the final stage in that planned transition. The original intention of that succession plan was for Jim Beirne MBE to step down as Chief Executive in March 2019 after more than twenty years of strong and successful leadership. Instead, to provide stability and continued leadership during such a challenging time Jim agreed to continue in post for an additional year. We therefore finally said goodbye to Jim in March 2021 with much sadness and huge gratitude for everything he has achieved over the many years. We also said goodbye to our Artistic Director Joe Douglas who returned to Scotland during this difficult pandemic year, and we wish him well. Joe’s departure did allow us to rethink our leadership structure and we therefore adopted the joint chief executive leadership model now common practice in the sector. The board were delighted to confirm Jacqui Kell as Executive Director/Joint Chief Executive and to welcome Jack McNamara as Artistic Director/Join Chief Executive.

Finally, I must thank my fellow trustees who have offered me, the Executive team and the staff team unwavering support during this year and have dedicated many hours of time guiding the group through this difficult year. I look forward to working with them further in 2021/22.

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

K L Winskell Trustee

Date: 25 January 2022

NORTH EAST THEATRE TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF NORTH EAST THEATRE TRUST LIMITED

Opinion

We have audited the financial statements of North East Theatre Trust Limited (the ‘parent company’) and it’s subsidiaries (the ‘group) for the year ended 31 March 2021 which comprise the group statement of financial activities, the group balance sheet, the charitable company balance sheet, the group statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 charity’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.

Opinions on other matters prescribed by the Companies Act 2006

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

NORTH EAST THEATRE TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF NORTH EAST THEATRE TRUST LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 the 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 the 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Capability of the audit in detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

NORTH EAST THEATRE TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF NORTH EAST THEATRE TRUST LIMITED

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and noncompliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located 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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Slater (Senior Statutory Auditor) for and on behalf of RMT Accountants & Business Advisors Ltd Statutory Auditor Gosforth Park Avenue Newcastle upon Tyne NE12 8EG

Dated: 27 January 2022

NORTH EAST THEATRE TRUST LIMITED

GROUP STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Current financial year
Unrestricted
Designated
Restricted
funds
funds
funds
Notes
£
£
£
Income from:
Donations and legacies
3
2,064,447
-
24,697
Charitable activities
4
36,602
-
-
Other trading income
5
4,234
-
-
Investments
6
503,221
-
-
Other income
250
-
-
Total income
2,608,754
-
24,697
Expenditure on:
Raising funds
7
239,660
-
-
Charitable activities
8
1,355,519
-
-
Other
14
307,255
-
-
Total resources expended
1,902,434
-
-
Net gains on investments
13
-
-
-
Net incoming resources before
transfers
706,320
-
24,697
Gross transfers between funds
23
399,947
-
(399,947)
Net income/(expenditure) for the year/
Net movement in funds
1,106,267
-
(375,250)
Fund balances at 1 April 2020
23
237,778
30,000
8,014,440
Fund balances at 31 March
2021
23
1,344,045
30,000
7,639,190		 Total
2021
£
2,089,144
36,602
4,234
503,221
250
2,633,451
239,660
1,355,519
307,255
1,902,434
-
731,017
-
731,017
8,282,218
9,013,235		 Total
2020
£
850,642
219,321
106,005
667,902
12,360
1,856,230
253,973
1,792,444
224,462
2,270,879
38,175
(376,474)
-
(376,474)
8,658,692
8,282,218

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

NORTH EAST THEATRE TRUST LIMITED

GROUP STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Prior financial year
Unrestricted
Designated
Restricted
funds
funds
funds
Notes
£
£
£
Income from:
Donations and legacies
3
766,049
-
84,593
Charitable activities
4
219,321
-
-
Other trading income
5
106,005
-
-
Investments
6
667,902
-
-
Other income
12,360
-
-
Total income
1,771,637
-
84,593
Expenditure on:
Raising funds
7
253,973
-
-
Charitable activities
8
1,668,522
-
123,922
Other
14
224,462
-
-
Total resources expended
2,146,957
-
123,922
Net gains on investments
13
-
-
38,175
Net outgoing resources before
transfers
(375.320)
-
(1,154)
Gross transfers between funds
23
399,026
-
(399,026)
Net income/(expenditure) for the year/
Net movement in funds
23,706
-
(400,180)
Fund balances at 1 April 2019
23
214,072
30,000
8,414,620
Fund balances at 31 March
2020
23
237,778
30,000
8,014,440		 Total
2020
£
850,642
219,321
106,005
667,902
12,360
1,856,230
253,973
1,792,444
224,462
2,270,879
38,175
(376,474)
-
(376,474)
8,658,692
8,282,218		 Total
2019
£
1,050,718
284,880
129,880
722,932
8,212
2,196,622
360,463
1,899,861
225,930
2,486,254
-
(289,632)
-
(289,632)
8,658,692
8,658,692

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

NORTH EAST THEATRE TRUST LIMITED

GROUP BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
16
Investment properties
15
Current assets
Stock
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within
one year
21
Net current (liabilities)/assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
22
Net assets
Income funds 23
Restricted funds
Restricted funds – Fair value reserve
Unrestricted designated funds
Unrestricted general funds		 2021
£
£
5,946,940
8,150,000
14,096,940
1,850
497,938
1,062,782
1,562,570
(906,645)
655,925
14,752,865
(5,739,630)
9,013,235
7,601,015
38,175
30,000
1,344,045
9,013,235		 2020
£
£
6,219,648
8,150,000
14,369,648
1,988
428,532
238,394
668,914
(963,871)
(294,957)
14,074,691
(5,792,473)
8,282,218
7,976,265
38,175
30,000
237,778
8,282,218

The accounts were approved by the Board of Trustees and authorised for issue on 25 January 2022 and are signed on their behalf by;

P M Callaghan Trustee Company Registration No. 01697756

K L Winskell Trustee

NORTH EAST THEATRE TRUST LIMITED

COMPANY BALANCE SHEET

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Fixed assets
Tangible assets
16
Investment properties
15
Investments
Current assets
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within
one year
21
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
22
Net assets
Income funds
Restricted funds
Restricted funds – Fair value reserve
Unrestricted designated funds
Unrestricted general funds		 £
4,864,169
743,904
5,608,073
(714,946)		 2021
£
5,946,940
4,325,000
11
10,271,951
4,893,127
15,165,078
(5,739,630)
9,425,448
7,601,015
450,388
30,000
1,344,045
9,425,448		 £
4,491,401
213,895
4,705,296
(763,052)		 2020
£
6,219,648
4,325,000
11
10,544,659
3,942,244
14,486,903
(5,792,473)
8,694,430
7,976,265
450,388
30,000
237,777
8,694,430

The accounts were approved by the Board of Trustees and authorised for issue on 25 January 2022 and are signed on their behalf by;

P M Callaghan K L Winskell Trustee Trustee Company Registration No. 01697756

NORTH EAST THEATRE TRUST LIMITED

GROUP STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from operations
28
Investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 £
(99,994)
97
(4,629)		 2021
£
928,914
(99,897)
(4,629)
824,388
238,394
1,062,782		 £
(334,179)
-
(30,986)		 2020
£
266,171
(334,179)
(30,986)
(98,994)
337,388
238,394

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

North East Theatre Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 29 Broad Chare, Quayside, Newcastle upon Tyne, NE1 3DQ.

1.1 Accounting convention

These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The charity is a Public Benefit Entity as defined by FRS 102.

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

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

1.2 Going concern

The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. This includes taking into account the potential impact of Covid-19 to ensure that cashflow is positively managed and the impact to the charity’s operations are mitigated. The trustees have concluded that the going concern assumption is appropriate in preparing these financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

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

The charity maintains a general unrestricted fund which represents funds which are expendable at the discretion of the trustees in furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment.

Restricted funds have been provided to the charity for particular purposes, and it is the policy of the board of trustees to carefully monitor the application of those funds in accordance with the restrictions placed upon them.

A fixed asset fund is maintained which represents the written down value of tangible fixed assets. This is a restricted fixed asset fund representing the written down value of those assets subject to restrictions. The detailed operation of these funds is described under the accounting policy 'Capital grants' above.

There is no formal policy of transfer between funds or on the allocation of funds to designated funds, other than that described above. Any other proposed transfer between funds would be considered on the particular circumstances.

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies (continued)

1.4 Incoming resources

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

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

Incoming resources are accounted for on a receivable basis deferred as described below where appropriate.

Except as described under the 'Deferred income' accounting policy all grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable.

Investment income

Bank interest is included in the income and expenditure account on a receivable basis.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

1.5 Resources expended

The policy for including items within the relevant activity categories of resources expended is as detailed in the report to the trustees.

In particular the policy for including items within costs of generating funds, charitable activities and governance costs is based on current accounting standards, the SORP and the reasonable judgement of the trustees.

1.6 Tangible fixed assets

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

Tangible fixed assets are stated at cost less depreciation. Items of less than £100 are not capitalised.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold land and buildings Over 100 years straight line
Leasehold land and buildings Over the term of the lease up to a maximum of 20 years
straight line
Plant and machinery 15 - 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

A regular annual review of the likelihood of asset impairment is undertaken.

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies (continued)

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the Statement of Financial Activities..

Freehold land and buildings and Leasehold land and buildings initially measured at cost, that meet the definition of investment property above have been reclassified as investment property and are measured at fair value at the reporting end date. During the year five properties were reclassified as investment properties. The net gain on revaluation is treated as a separate restricted reserve.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9 Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10 Cash and cash equivalents

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

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies (continued)

1.11 Financial instruments

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

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

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

Basic financial assets

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

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies (continued)

1.14 Capital grants

The board of trustees consider that, in order to comply with the SORP, gifts of tangible fixed assets or grants of a capital nature given for specific purposes and fully utilised in the furtherance of the objects of the charity should be credited to the relevant fixed asset fund after the sums have been properly expended on the restricted purpose. The related asset is shown in the balance sheet at the full cost of acquisition or subsequent revaluation.

If the related assets are subject to restrictions by the grant making organisation on their use and disposal, then these restrictions are noted in the fixed asset section of these accounts. In such circumstances, the fixed asset fund created is treated as a restricted fixed asset fund. As the related assets are depreciated, then a transfer is made from restricted fixed asset funds to unrestricted revenue reserves to reflect the diminution in the asset subject to the restriction. In this year, a sum of £399,947 (2020: £399,026) was transferred from restricted fixed asset funds to unrestricted revenue reserves.

Any residual liability to the donor arising from, for example, the asset’s future sale, is disclosed as a contingent liability unless the event that would trigger repayment of the grant becomes probable in which case a liability for repayment is recognised.

Insofar as this policy relates to Government grants and to the extent that it may be a departure from the Statement of Standard Accounting Practice Number 4, such departure is justified on the basis that it is in order to comply with the SORP.

1.15 Taxation

As a registered charity, North East Theatre Trust is exempt from income and corporation tax to the extent that its income and gains are applicable to charitable purposes only. Any trading surplus or capital gain of the subsidiaries, Live Trading Limited and LiveWorks (Newcastle upon Tyne) Limited, not covered by the deed of covenant, are subject to corporation tax. Value Added Tax is recoverable by the group and is therefore excluded from the relevant income and expenditure in the Statement of Financial Activities and tangible fixed assets on the Balance Sheet.

1.16 Winding up or dissolution of the charity

If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.

2 Critical accounting estimates and judgements

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

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

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

3 Donations and legacies

Unrestricted
funds
£
Donations and gifts
2,980
Grants receivable
2,044,817
Sponsorship
16,650
2,064,447
For the year ended 31 March 2020
766,049		 Restricted
funds
£
-
24,697
-
24,697
84,593		 Total
2021
£
2,980
2,069,514
16,650
2,089,144		 Total
2020
£
3,662
832,635
14,345
850,642
850,642

In March 2020 the Government introduced the Coronavirus Job Retention Scheme which allowed employers to put staff on temporary leave and reclaim between 60% to 80% of the employees' payroll costs. During the year to 31 March 2021 the group claimed £393,517. In addition, the Government had also introduced a number of Covid-19 business support grants, for which the group was eligible, and received a total of £139,278.

The group had also received emergency funding from Arts Council England and Garfield Western Foundation, totalling £678,768, to support the charity during it’s closure.

4 Charitable activities

Charitable income
Analysis by fund
Unrestricted funds
For the year ended 31 March 2020
Unrestricted funds		 Theatre
activities
Education
and
participation
£
£
13,602
23,000
13,602
23,000
165,600
53,721		 Total
2021
Total
2020
£
£
36,602
219,321
36,602
219,321

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

5 Other trading income

6
7		 Unrestricted
funds
£
Bar and buffet income
-
Venue hire
4,234
4,234
For the year ended 31 March 2020
106,005
Investment income
Unrestricted
funds
£
Rental income
503,124
Bank interest receivable
97
503,221
For the year ended 31 March 2020
667,902
Raising funds
Fundraising
Support costs
Marketing and publicity
Support costs
Trading costs
Commercial trading operations
Governance cost		 Total
2021
£
-
4,234
4,234
Total
2021
£
503,124
97
503,221
2021
£
45,004
44,863
144,767
5,026
149,793
239,660		 Total
2020
£
79,352
26,653
106,005
106,005
Total
2020
£
667,891
11
667,902
667,902
2020
£
46,064
46,700
156,196
5,013
161,209
253,973

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

8 Charitable activities

Theatre
activities
Education
and
participation
£
£
Production costs
114,215
-
Education and participation expenses
-
23,966
Cleaning
3,168
2,773
IT support costs
31,179
4,934
Equipment leasing
-
-
Insurance
20,962
18,342
Licences
1,841
-
Light and heat
17,772
15,550
Printing, postage and stationery
661
578
Repairs and maintenance
17,008
14,883
Rent, rates and water
32,188
28,165
Subscriptions
2,450
2,143
Telephone and fax
4,508
3,945
Sundries
1,099
961
247,051
116,240
Share of support costs (see note 9)
523,814
464,514
Share of governance costs (see note 9)
2,067
1,833
772,932
582,587
Analysis by fund
Unrestricted funds
772,932
582,587
Restricted funds
-
-
772,932
582,587
For the year ended 31 March 2020
Unrestricted funds
1,315,975
352,547
Restricted funds
7,242
116,680
1,323,217
469,227		 Total
2021
£
114,215
23,966
5,941
36,113
-
39,304
1,841
33,322
1,239
31,891
60,353
4,593
8,453
2,060
363,291
988,328
3,900
1,355,519
1,355,519
-
1,355,519		 Total
2020
£
302,628
61,355
34,336
39,153
2,019
37,464
3,147
62,378
3,585
61,358
63,425
5,385
8,627
5,130
689,990
1,091,008
11,446
1,792,444
1,668,522
123,922		 Total
2020
£
302,628
61,355
34,336
39,153
2,019
37,464
3,147
62,378
3,585
61,358
63,425
5,385
8,627
5,130
1,792,444

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

9 Support costs

Support
costs
Governance
costs
£
£
Employment costs
598,221
-
Other staff costs
21,275
-
Depreciation
372,702
-
Marketing and publicity
14,431
-
Premises
56,418
-
General administrative expenses
15,148
-
Audit fees
-
2,600
Accountancy
-
1,300
Trustees' expenses
-
-
1,078,195
3,900
Analysed between
Fundraising
89,867
-
Charitable activities
988,328
3,900
1,078,195
3,900
Net movement in funds
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor
- Audit fees
- Non audit fees
Depreciation of owned tangible fixed assets
Operating lease charges		 2021
£
598,221
21,275
372,702
14,431
56,418
15,148
2,600
1,300
-
1,082,095
89,867
992,228
1,082,095
2021
£
6,900
2,013
372,702
79,265		 2020
£
627,621
15,978
375,744
39,710
98,119
26,600
6,900
4,313
5,246
1,200,231
97,777
1,102,454
1,200,231
2020
£
6,900
4,313
375,744
81,988

10 Net movement in funds

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

11 Trustees

The amount of travel expenses paid to trustees was:
J P Beirne

Remuneration payable to trustees or connected persons:
J P Beirne
Employer's National Insurance contributions on above remuneration:
J P Beirne
Pension contributions relating to trustees or connected persons:
J P Beirne		 2021
£

-
60,947
7,197
1,828		 2020
£
5,246

60,947

7,219

1,828

J P Beirne was a member of the charity's defined contribution scheme. He contributed 3% of his salary to the scheme. The charity had also contributed 3% of his salary.

All payments to trustees were made in accordance with the terms of the memorandum and articles of the charity.

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

12 Employees

Number of employees

The average monthly number employees during the year was:

2021
Number
Charitable activities
14
Publicity activities
2
Fundraising activities
2
Management and administration
5
23
Employment costs
2021
£
Wages and salaries
644,786
Social security costs
49,663
Other pension costs
17,007
711,456
The number of employees whose annual remuneration was £60,000 or more were:
2021
Number
£60,000 - £69,999
1		 2020
Number
14
3
2
6
25
2020
£
677,905
46,040
17,368
741,313
2020
Number
1

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

13 Net gains/(losses) on investments

Fair value gain on investment properties
14
Other expenditure
Financing costs
15
Investment property - group
Fair value
At 1 April 2020 and 31 March 2021		 2021
2020
£
£
-
38,175
2021
2020
£
£
307,255
224,462
2021
£
8,150,000

Investment property comprises of 5 properties. The fair value of the investment properties has been arrived at on the basis of a valuation carried out in November 2019, by Knight Frank, chartered surveyors, who are not connected with the group. The valuation was on an open market value basis by reference to market evidence of transaction prices for similar properties.

The valuation of the properties have been reviewed by the Trustees during the year and they conclude that the fair value of the properties remains appropriate at the balance sheet date.

Investment property - company

2021
£
Fair value
At 1 April 2020 and 31 March 2021 4,325,000

Investment property comprises of 4 properties. The fair value of the investment properties has been arrived at on the basis of a valuation carried out in November 2019, by Knight Frank, chartered surveyors, who are not connected with the group. The valuation was on an open market value basis by reference to market evidence of transaction prices for similar properties.

The valuation of the properties were reviewed by the Trustees during the year and conclude that the fair value of the properties remains appropriate.

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

16 Tangible fixed assets - group

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation and impairment
At 1 April 2020
Depreciation charged in the year
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 Freehold
land and
buildings
£
3,294,615
-
3,294,615
72,144
17,947
90,091
3,204,524
3,222,471		 Leasehold
land and
buildings
Plant and
machinery
£
£
7,435,182
499,364
-
99,994
7,435,182
599,358
4,537,376
399,993
333,505
21,250
4,870,881
421,243
2,564,301
178,115
2,897,806
99,371		 Total
£
11,229,161
99,994
11,329,155
5,009,513
372,702
5,382,215
5,946,940
6,219,648

All assets are used for direct charitable purposes and there are no inalienable or heritage assets..

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

16 Tangible fixed assets (continued) - company

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation and impairment
At 1 April 2020
Depreciation charged in the year
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 Freehold
land and
buildings
£
3,294,615
-
3,294,615
72,144
17,947
90,091
3,204,524
3,222,471		 Leasehold
land and
buildings
Plant and
machinery
£
£
7,435,182
499,364
-
99,994
7,435,182
599,358
4,537,376
399,993
333,505
21,250
4,870,881
421,243
2.564,301
178,115
2,897,806
99,371		 Total
£
11,229,161
99,994
11,329,155
5,009,513
372,702
5,382,215
5,946,940
6,219,648

All assets are used for direct charitable purposes and there are no inalienable or heritage assets.

17 Subsidiary undertakings included within the group accounts

Live Trading Limited

The name of the subsidiary undertaking is Live Trading Limited, registered in England, company number 03100229. The aggregate amount of the holding company's investment in its subsidiary is £1, which represents 100% of the issued ordinary share capital of the subsidiary. The subsidiary is controlled by the holding company by virtue of the power to appoint directors to the board of the subsidiary.

The subsidiary's activities relate to those of the holding company in that the subsidiary is a trading enterprise engaging in trades similar to the charitable activities of the holding company, and donates its entire taxable trading profit to the holding company by way of deed of covenant.

LiveWorks (Newcastle upon Tyne) Limited

The name of the subsidiary undertaking is LiveWorks (Newcastle upon Tyne) Limited, registered in England, company number 08981067. The aggregate amount of the holding company's investment in its subsidiary is £10, which represents 100% of the issued ordinary share capital of the subsidiary. The subsidiary is controlled by the holding company by virtue of the power to appoint directors to the board of the subsidiary.

The subsidiary's activities relate to those of the holding company in that the subsidiary is a trading enterprise assisting in the construction of the new LiveWorks building.

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

17 Subsidiary undertakings included within the group accounts (continued)

A summary of the audited accounts of the subsidiaries is as follows:

LiveWorks (Newcastle upon Tyne) Limited
Aggregate amount of assets
Aggregate amount of liabilities and provisions
Aggregate amount of net liabilities
Profit and loss
Turnover (net of VAT)
Expenses (net of VAT)
Other losses
Net profit /(loss)
Payments made to holding company
Net profit/(loss) after donations
Live Trading Limited
Aggregate amount of assets
Aggregate amount of liabilities and provisions
Aggregate amount of funds
Profit and loss
Turnover (net of VAT)
Expenses (net of VAT)
Net profit
Payments made to holding company
Net profit/(loss) after donations
18
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Equity instruments measured at cost less impairment
Carrying amount of financial liabilities
Measured at amortised cost		 Group
£
75,889
-
6,644,756		 2021
£
4,002,318
(4,414,521)
(412,203)
233,747
(154,502)
-
79,245
(79,245)
-
328,670
(328,669)
1
273,611
(147,614)
125,997
(125,997)
-
2021
Company
Group

£
£
4,577,841
37,190
11
-
6,453,057 6,700,593		 2021
£
4,002,318
(4,414,521)		 2021
£
4,002,318
(4,414,521)


2020
£
3,953,973
(4,366,176)
(412,203)
233,748
(154,528)
(412,213)
(332,993)
(12,227)
(345,220)
279,487
(279,486)
1
540,146
(159,005)
381,141
(816,950)
(435,809)
2020
Company

£
4,359,820
11
6,499,774

(412,203)
233,747
(154,502)
-
79,245
(79,245)

-
328,670
(328,669)

1
273,611
(147,614)

125,997
(125,997)

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

19 Debtors

2021 2020
Group Company Group Company
£
£		 £
£
Amounts falling due within one year:
Trade debtors 75,889
26,349		 37,190
3,349
Amounts due from subsidiary undertakings - 4,551,492 - 4,356,471
Prepayments and accrued income 422,049
286,328		 391,342
131,581
497,938 4,864,169 428,532 4,491,401
20 Loans and overdrafts
2021 2020
Group Company Group Company
£
£		 £
£
Other loans 5,838,010 5,838,010 5,842,639 5,842,639
Payable within one year 98,380
98,380		 50,166
50,166
Payable after one year 5,739,630 5,739,630 5,792,473 5,792,473
Interest rates of 5.02% and 8.08% per annum are applied to the loans, with repayments to be made over the
remaining 37 years of the loan agreements. The long term loans are secured by fixed charges over the fixed
assets of the charity.

21 Creditors: amounts falling due within one year

Group
Notes
£
Other loans
20
98,380
Other taxation and social security
1,519
Trade creditors
224,041
Other creditors
5,069
Accruals and deferred income
577,636
906,645
Creditors: amounts falling due after more than one year
Group
Notes
£
Other loans
20
5,739,630





2021
Company
£
98,380
1,519
194,072
4,469
416,506
714,946
2021
Company
£
5,739,630





Group
£
50,166
55,751
218,318
6,810
632,826
963,871
Group
£
5,792,473




2020
Company
£
50,166
55,751
182,456
86,977
387,702
763,052
2020
Company
£
5,792,473








22 Creditors: amounts falling due after more than one year

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

23 Movement in funds

Current financial year

Movement in funds
Balance at
1 April
2020
Incoming
resources
Outgoing
resources
Transfers
between
funds
£
£
£
£
Unrestricted funds
Designated:
Capital maintenance
30,000
-
-
-
General:
Revenue reserves
237,778 2,608,754 (1,902,434)
399,947
Total unrestricted funds
267,778 2,608,754 (1,902,434)
399,947
Restricted funds
Capital redevelopment fund
(1995-97)
145
-
-
(22)
Capital redevelopment fund
(2005-07)
2,002,564
-
- (266,451)
Capital development
(Sustain fund)
217,396
-
-
(19,764)
Capital development
(The Schoolhouse)
666,168
-
-
(51,070)
Capital development
(Live Works)
4,974,249
-
-
(51,643)
Capital (Live Theatre)
108,243
2,578
-
(10,997)
Education and Participation
7,500
22,119
-
-
Fair value reserve
38,175
-
-
-
Total restricted funds
8,014,440
24,697
- (399,947)
Total funds
8,282,218 2,633,451 (1,902,434)
-		 Fair value
gains and
losses
Balance at
31 March
2021
£
-
30,000
-
1,344,045
-
1,374,045
-
123
-
1,736,113
-
197,632
-
615,098
-
4,922,606
-
99,824
-
29,619
-
38,175
-
7,639,190
-
9,013,235

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

23 Movement in funds (continued)

Prior financial year

Movement in funds
Balance at
1 April
2019
Incoming
resources
Outgoing
resources
Transfers
between
funds
£
£
£
£
Unrestricted funds
Designated:
Capital maintenance
30,000
-
-
-
General:
Revenue reserves
214,072 1,771,637 (2,146,957)
399,026
Total unrestricted funds
244,072 1,771,637 (2,146,957)
399,026
Restricted funds
Capital redevelopment fund
(1995-97)
171
-
-
(26)
Capital redevelopment fund
(2005-07)
2,269,015
-
- (266,451)
Capital development
(Sustain fund)
237,159
-
-
(19,763)
Capital development
(The Schoolhouse)
717,238
-
-
(51,070)
Capital development
(Live Works)
5,025,892
-
-
(51,643)
Capital (Live Theatre)
110,870
7,446
-
(10,073)
Education and Participation
54,275
77,147
(123,922)
-
Fair value reserve
-
-
-
-
Total restricted funds
8,414,620
84,593
(123,922)(399,026)
Total funds
8,658,692 1,856,230 (2,270,789)
-		 Fair value
gains and
losses
Balance at
31 March
2020
£
-
30,000
-
237,778
-
267,778
-
145
-
2,002,564
-
217,396
-
666,168
-
4,974,249
-
108,243
-
7,500
38,175
38,175
38,175
8,014,440
38,175
8,282,218

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

23 Movement in funds (continued)

Capital redevelopment fund (1995-97)

Grants to finance building alterations in 1995 and 1997 were received from Tyne & Wear Development Fund and the European Social Fund. These are released at a rate to match the anticipated economic life of the alterations undertaken. The grants have restrictive clauses of various time periods relating to the disposal of the buildings. The surplus of grant release over depreciation is carried forward until the expiry of the grant restrictions.

Capital redevelopment fund (2005-07)

Capital grant funding was received to fund the acquisition of a 32 year lease of 29 Broad Chare and to fund the alteration costs to provide a new entrance and foyer, a new entrance into the theatre auditorium, rehearsal and designated writers' spaces, a new cafe space and office accommodation. The grants are released at a rate to match the anticipated economic life of the alterations undertaken. The grants have restrictive clauses of various time periods relating to the disposal of the buildings. The surplus of grant release over depreciation is carried forward until the expiry of the grant restrictions.

Sustain fund

Live Theatre was awarded a grant by Arts Council England under its Sustain managed fund to enable the charity to develop investment projects to provide additional future sources of income. The grant is released at a rate to match the anticipated economic life of the building alterations undertaken. The grant has a restrictive clause relating to the disposal of the building. The surplus of grant release over depreciation is carried forward until the expiry of the grant restriction.

The Schoolhouse

Arts Council England, through their Renew Fund, with assistance from the European Regional Development Fund, have funded the acquisition and will assist with the development of The Schoolhouse to be a centre for creative activities, and a SME incubator for Live Theatre cultural businesses whilst generating rental income. The grants will be released at a rate to match the anticipated economic life of the alterations undertaken. The grants have restrictive clauses of various time periods relating to the disposal of the buildings. The surplus of grant release over depreciation is carried forward until the expiry of the grant restrictions. No further funds were received this year.

Live Works

Grant funding was received from the following organisations, since 2014, to enable a new building to be constructed which will provide further Social Enterprise income and a new creative writing centre, a park and an outdoor stage.

Arts Council England £2,000,000
The Catherine Cookson Charitable Trust £300,000
Sir James Knott Trust £75,000
Garfield Weston Foundation £200,000
Gillian Dickinson Trust £200,000
The Monument Trust £150,000
Department for Communities and Local Government £2,189,273
The Wolfson Foundation £50,000
Fidelity UK Foundation £75,000
Architectural Heritage Fund £26,100

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

23 Movement in funds (continued)

Education and Participation

The following grant(s) were received as restricted funds in the year.

The Lucy Winskell Fund at the Community Foundation £2,119
Samares Investments Limited £5,000
The Squires Foundation £15,000

Capital (Live Theatre)

The following grant(s) were received as restricted funds in the year.

Arts Council – Fit for 50 £1,378
Theatres Trust £1,200

Designated capital maintenance fund

In the 2018 financial year the trustees had set aside £30,000 from unrestricted reserves in order to meet expected future capital asset improvements. This designated fund does not form part of the charity’s unrestricted general funds.

Explanation of the nature of each material transfer between funds

In accordance with the accounting policy relating to capital grants in note 1 above, funds are released to revenue reserves to match the depreciation on the associated assets:

The 1995-97 Capital Redevelopment fund £22
The 2005-07 Capital Redevelopment fund £266,451
The 2010-11 Sustain fund £19,764
The School House fund £51,070
Live Works £51,643
Live Theatre £10,997

24 Analysis of net assets between funds

Current financial year
Unrestricted Designated Restricted Fair value Total
funds funds funds reserve
£ £ £ £ £
Fund balances at 31 March 2021 are
represented by:
Tangible assets 1,780,718 - 4,166,222 - 5,946,940
Investment property 4,709,229 - 3,402,596 38,175 8,150,000
Current assets/(liabilities) 593,728 30,000 32,197 - 655,925
Long term liabilities (5,739,630) - - - (5,739,630)
1,344,045 30,000 7,601,015 38,175 9,013,235

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

24 Analysis of net assets between funds (continued)

Prior financial year
Unrestricted Designated Restricted Fair value Total
funds funds funds reserve
£ £ £ £ £
Fund balances at 31 March 2019 are
represented by:
Tangible assets 1,689,176 - 4,530,472 - 6,219,648
Investment property 4,673,532 - 3,438,293 38,175 8,150,000
Current assets/(liabilities) (332,457) 30,000 7,500 - (294,957)
Long term liabilities (5,792,473) - - - (5,792,473)
237,778 30,000 7,976,265 38,175 8,282,218

25 Financial commitments, guarantees and contingent liabilities

As referred to in note 23 above, the grants receivable from the European Regional Development Fund, Heritage Lottery Fund and Arts Council England are repayable if the charity fails to keep to the terms of the agreements with the grant funders, undergoes a significant change in status, ceases to operate or is declared insolvent within the periods as set out below:

European Regional Development Fund (£892,732) up to 31 March 2026; Heritage Lottery Fund (£457,319) up to 31 January 2031; Arts Council England (£182,200) up to 22 March 2027; European Regional Development Fund (£414,387) up to 31 March 2038;

These agreements are secured by legal charges over the leasehold properties at Trinity Chare, including The Schoolhouse, and Broad Chare, Newcastle upon Tyne.

26 Related party transactions

The company has taken advantage of the exemption available in FRS 102 "Related party disclosures" whereby it has not disclosed transactions with any wholly owned subsidiary undertaking.

P Callaghan, a Trustee, is a director of a company which developed and became a tenant of one of the properties owned by the group. This transaction was approved of the Charity Commission.

During the year the charity received £2,119 from the Lucy Winskell Fund at Community Foundation. Lucy Winskell is a trustee of the charity and also of Community Foundation.

Remuneration of key management personnel

The remuneration of key management personnel (listed on page 9) is as follows.

2021 2020
£ £
Aggregate compensation 138,344 153,353

NORTH EAST THEATRE TRUST LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

27 Subsidiaries

These financial statements are separate from the group financial statements for North East Theatre Trust Limited.

Separate financial statements are required to be prepared by law. Consolidated financial statements for the North East Theatre Trust Limited Group are prepared and publicly available from Companies House and the Charity Commission.

Details of the charity's subsidiaries at 31 March 2021 are as follows:

Name of undertaking Nature of business Class of % Held
shareholding Direct Indirect
LiveWorks (Newcastle upon Tyne) Ltd Capital management Ordinary 100.00
Live Trading Limited Commercial operations Ordinary 100.00

The investments in subsidiaries are all stated at cost.

28 Cash generated from operations

Surplus/(deficit) for the year
Adjustments for:
Investment income recognised in profit or loss
Fair value gains on investment properties
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in stock
(Increase)/decrease in debtors
Decrease in creditors
Cash generated from/(absorbed by) operations		 2021
£
731,017
(97)
-
372,702
138
(69,406)
(105,440)
928,914
 2020
£
(376,474)
-
(38,175)
375,744
1,853
356,374
(53,151)
266,171

29 Parent company’s income and expenditure account

The company is required to prepared group accounts under the provision of the Companies Act and has taken advantage of the exemption afforded by section 408 Companies Act 2006 to exclude its individual Statement of Financial Activities from the group accounts.

The net income shown in the individual Statement of Financial Activities of the parent company for the year ended 31[st] March 2021, and included in the group accounts, is £731,018 (2020: £404,554)