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← Cumbria Theatre Trust

2025-03-31-accounts

Charity Registration No. 516673

Company Registration No. 1874868 (England and Wales)

CUMBRIA THEATRE TRUST

TRADING AS THEATRE BY THE LAKE ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

CUMBRIA THEATRE TRUST CONTENTS PAGE

FOR THE YEAR ENDED 31 MARCH 2025

CONTENTS Page
Company information 1-2
Chair's Report 3-5
Trustees’ and Directors' Annual Report 6-18
Statement of Trustees’ Responsibilities 19
Independent Auditor's Report 20-22
Statement of Financial Activities 23
Balance Sheet 24
Cash Flow Statement 25
Notestothefinancialstatements 26-42

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE Company Information

PRESIDENT Dame Judi Dench

SECRETARY Amanda Leader

JOINT CEQ Simon Stephens (Executive Director} Liz Stevenson {Artistic Director)

EXECUTIVE DIRECTOR Simon Stephens

ARTISTIC DIRECTOR Liz Stevenson KEY MANAGEMENT Amanda Leader - Head of Finance & Operations PERSONNEL Amy Clewes - Head of Producing & Programming Shelly Ramsdale - Head of Marketing & Communications (resigned 17% January 2025) Sam Meegan - Head of Development (appointed 9k December 2024)

REGISTERED Theatre by the Lake OFFICE Lakeside Keswick, Cumbria CA12 5DJ AUDITORS Azets Audit Services Fleet House New Road Lancaster LA1 1EZ

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE Company Information

MAIN BANKERS — Handelsbanken 41 Merchant's Drive Parkhouse Road Carlisle, Cumbria CA3 OJW

COMPANY NUMBER 1874868 CHARITY NUMBER 516673

TELEPHONE 017687 72282 WEBSITE www.theatrebythelake.com

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TRADING AS THEATRE BY THE LAKE ANNUAL REPORT— CHAIR’S REPORT

CUMBRIA THEATRE TRUST

For the year ended 31 March 2025

In 2024/25 we celebrated our 25" anniversary, using this opportunity to deepen engagement with our audiences, connect with our communities and raise the profile of our work.

The theatre opened its doors in 1999 and over the last quarter century has built a strong reputation in our local community and more widely. But we are eager to do more. We want more people to know about and enjoy what we do, and that means continuing to produce excellent work in Keswick that we can tour more widely across Cumbria and beyond.

We've marked our anniversary in multiple ways that celebrate the past and look to the future:

Lastly, in September we hosted a celebratory birthday party for many long-standing supporters and many others who have worked with us over the years.

Of course, the major focus of the year has been the work that we produce.

We have continued to present a wide variety of work to appeal to different sectors of our audience, and to attract new people to what we do. Over the course of the year, we welcomed 80,104 audience members to the theatre, a 12.5% increase on 2023/24. We continued to grow our local audience base, with over 2,000 Cumbrians booking with us for the first time.

We have continued to enhance our artistic quality with shows receiving strong reviews from audiences and critics alike. We repeated our presentation of a family-friendly production at Easter with the musical show Little Shop of Horrors; we have produced few musicals in the past, not least because of their higher costs, and the co-production model enabled us to do this with great success. Northanger Abbey provided balance in the programme and tested appetite for a classic literary title.

Brassed Off, directed by Liz Stevenson, was a hugely successful production (5* The Stage). It was a show that had a rare balance of humour, entertainment, relevance and depth. We’re grateful to

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE ANNUAL REPORT — CHAIR’S REPORT

For the year ended 31 March 2025

Penrith Town Band, whose performances in the show affirmed our links into the local community. Brassed Off was a commercial success, at TBTL and co-producing venues, as was The Hound of the Baskervilles, which succeeded in its aim of being a fun family night out for local and visitor audiences alike.

Romeo and Juliet, a collaboration with Graeae and Shakespeare North Playhouse, featured a cast of Deaf, disabled and neurodivergent actors and integrated BSL, captioning and audio description. The production was warmly received by those who saw it, but ticket sales were modest. However, we were proud to bring this innovative production to Cumbria, and the experience has helped to inform and shape our inclusive practice. Beyond Romeo and Juliet, we continued our commitment to making our theatre more accessible, staging a further 20 access performances across the programme.

One show, though, deserves a special focus. Steel is a new commission that has been three years in development and demonstrates how we can achieve our aim of producing nationally relevant theatre rooted in our place. Set in Workington and written by West Cumbrian playwright, Lee Mattinson, the play explores themes of industrial decline and identity. From its inception, Steel was developed in consultation with local communities ensuring an authentic connection with place. This extended to the formation of the Steel Community Choir in Workington, who co-created an original song to feature in the production and sang live at 3 performances.

Travelling to community venues across Cumbria and culminating at Carnegie in Workington, the production marked the further development of our community touring model and served to underline the importance of taking work with a profound sense of place into the heart of local communities. The extraordinary impact of Steel has been clear to see, not only in its progression to a national tour in 2025, but in captivating audiences at community venues across Cumbria.

The Jungle Book was well received by our family audiences at Christmas and was enjoyed by 74 schools over the course of the run.

Deepening our educational relationships, we launched our inaugural schools partnership scheme with 6 Cumbrian schools. We also partnered with the Centre for Leadership and Performance to deliver 450 hours of work experience for 15 young people.

Our building continues to be a hub for local people to come together and be creative. Throughout the year we provided 433 hours of in-kind support for local artists and staged 28 performances by 11 community groups, including Keswick Amateur Operatic Society, Cumbria Young Farmers, Keswick Theatre Club and Keswick Rotary Club.

We want to do more locally inspired work, but it takes considerable time to find, commission and develop (Steel’s three years is by no means out of the ordinary). The costs are also substantial. We could not do it without dedicated financial support that extends beyond our usual budgets. As | noted in last year’s report, our long-term financial challenges remain significant. We continue to maximise ticket yield where we can, while committing to accessible price bands and concessions. We had two financially successful shows this year, the likes of which cannot be guaranteed in the longterm.

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE ANNUAL REPORT - CHAIR’S REPORT

For the year ended 31 March 2025

Arts Council England are a core funder and we continue to be a proud member of their National Portfolio. We are very grateful to ACE for their continued endorsement. This funding continues to be crucial for us, although it represents a declining proportion of our income as the amount awarded has remained largely unchanged for over 10 years. The financial challenge of achieving the ticket sales we need while navigating rising costs and a real-terms reduction in subsidy remains a problem common to many regional theatres across the country.

We continue to be immensely grateful to those who support us, both through buying tickets and through donations. The organisations and major donors who support us are set out in the Directors’ report. Fundraising is a vital part of our financial model and the donations from our supporters are vital to us. | would like particularly to thank the Askew family. The late Jim Askew, a long-time associate and steadfast supporter of TBTL, left an immensely generous legacy to the Theatre, without which we would not have been able to produce Steel and progress our strategy to develop. our place-based vision and community touring model.

Lastly, | must thank all our volunteers, our staff and my fellow Trustees. Our 150 volunteers continue to be mainstays of the theatre and always provide a warm welcome to our visitors, donating over 7000 hours of their time in 2024/25. Our staff team work incredibly hard to deliver delight to our audiences, and are ably led by Simon Stephens, our Executive Director, and Liz Stevenson, our Artistic Director. | give huge thanks to them all, as | do to my fellow Trustees for all their help.

It has been a celebratory and successful year. We look forward with optimism to this year and beyond.

Charles Carter Chair of Trustees

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

For the year ended 31 March 2025

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The Trustees present their report and the audited financial statements of the charity for the year ended 31 March 2025. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.

TRUSTEES OF THE CHARITY

The directors of the charitable company are its Trustees for the purposes of charity law. The Trustees who have served during the year and since the year end are detailed on page 1.

OBJECTIVES AND ACTIVITIES

CHARITABLE OBJECTIVES

The charitable objectives of Cumbria Theatre Trust (CTT) are to:

OUR STRATEGY

The theatre has had great success since its opening in 1999, but nevertheless we want to develop and evolve to be sure that we continue to present excellent work for our longstanding regular supporters, as well as attracting and developing new audiences.

Over the last few years we have developed a new approach to our work with a refined vision and mission to meet this need. This provides a framework that we continue to develop and which we use to guide our annual and longer-term planning.

OUR VISION AND MISSION

Our approach (or business model), while still developing, remains true to our charitable objectives summarised above. It also responds to our location and environment by moving us strongly to a place-based model that is more relevant and accessible to our local communities. Our vision and mission summarises this:

VISION

Theatre enriches the lives of everyone in Cumbria, and theatre made in Cumbria is celebrated on the national stage.

MISSION

In our venue and out across Cumbria, we make and share great theatre that tells stories, builds communities & celebrates our place.

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

For the year ended 31 March 2025

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BRAND ESSENCE

Theatre made with passion in an extraordinary place.

OUR RELEVANCE TO ARTS AND CULTURE IN CUMBRIA

Our direction acknowledges our current position and the arts in Cumbria. Asa regional arts and education charity based in Keswick, Cumbria, CTT owns Theatre by the Lake (TBTL), and is the only midscale producing theatre between Glasgow, Newcastle & Lancaster. We serve communities across the vast county of Cumbria and visitors to the Lake District.

TBTL is an essential creative hub in an area of comparatively limited cultural provision. We operate in England’s second largest and second least populated county with 70% of settlements comprising under 200 people. As a producing theatre, the work we create, commission and share is critical to levelling up access to high quality arts for rural and isolated communities, particularly children and young people, and developing local talent.

We use strategic, creative partnerships to increase our impact and reach. We partner with small to large-scale producers, creating work for diverse audiences from across Cumbria and the UK, in Keswick and on rural and national tours.

OUR PLANS

We develop our annual and long-term plans in line with our vision and mission while acknowledging our importance to the arts in Cumbria. Our objectives for the next year are summarised later in this Trustees’ report.

Our plans include activities where the results are uncertain, so we use trial and experiment to develop our approach and manage our risk. We have been testing, and continue to test, different aspects of what we do. These include, for example, more extensive use of a co-production model with other producing theatres to provide increased availability of shows we could not afford to make on our own; trialing different types of visiting work that progress our overall strategic intent while attracting a wide range of customers; developing our work with young people and, perhaps most exciting given our rural heritage, starting to develop a touring model where work developed in Keswick is taken to communities in Cumbria and further afield.

We accept that elements of our approach are uncertain, not least because of continuing concerns about our financial health given the impact on our costs during a period of high inflation, and challenges for our audiences given the consequential impact of the cost of living.

The changes needed to transition from our historical model to our new approach were embedded in our application to remain part of the Arts Council England (ACE) National Portfolio for 2023-2026. ACE strongly endorse our approach and approved our application to remain a National Portfolio Organisation (NPO) within the new portfolio that is funded from the start of this financial year. The funding which ACE provides is a core element of our finances for the NPO period.

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

For the year ended 31 March 2025

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A new Government in 2024 and associated scrutiny of arts funding, has led ACE to change their approach to the National Portfolio beyond 2026. We have applied for a one year extension through to 2027 but the situation beyond that remains unclear.

PUBLIC BENEFIT STATEMENT

The Trustees are aware of the Charity Commission guidance on public benefit and have taken this into account when making a decision to which the guidance is relevant.

ACHIEVEMENTS AND PERFORMANCE

IN HOUSE PRODUCTIONS

As Cumbria’s producing theatre, our principal achievements over the reporting year have been based around delivering a wide range of home-produced and co-produced shows on our stages, many of which incorporated wrap-around activity for our community. Our in-house productions were:

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

For the year ended 31 March 2025

The effort required to create and mount this sort of show like this is substantial and financially we are not able to undertake such work like this without extensive additional funding. This is acknowledged elsewhere in this report.

The artistic quality has continued to be high for all these productions in terms of press coverage, peer review and audience reaction. Our new audience evaluation tool explores how each show meets the aims that set for it, and gathers both positive and more critical reactions that we can use to inform future programming and production decisions.

CumbriaFest

In October, we launched our inaugural local artist festival CumbriaFest, which aimed to shine a light on our progress in artist development as part of our 25th anniversary year.

The current climate for artists is extremely challenging and we know that these challenges are exacerbated by our remote location and lack of provision in Cumbria. As a result, developing local talent is one of our key artistic aims.

We engaged with artists we have from our Cumbrian Creatives network, who have often appeared at one of our Open Space scratch nights, checking in on progress with various different pieces of

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TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

CUMBRIA THEATRE TRUST

For the year ended 31 March 2025

work in development. From this, we curated a festival of workshops, one-nighters and short performance runs. This involved:

VISTING PROGRAMME

As well as the work in which we had a producing role, either solely or jointly, we also presented a wide range of visiting work on our stages. We are endeavouring to curate our programme of visiting work to enable us to test what is attractive to existing and new audiences, although we are in part dependent on shows that are available (which continue to be limited as the theatre and arts world recovers from Covid). Our visiting programme included:

e For children and families: oO Tinsel (Wrongsemble)

e =Film, literature, music and comedy:

We were also delighted to welcome back Words by the Water in March 2025.

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

For the year ended 31 March 2025

As last year, financially, we are not yet achieving the financial resilience that we need from the work on our stages. Although we had two shows that out-achieved target by a considerable margin we have found that, in common with all regional theatres, audiences have been slow to return to postCovid levels. They are also booking later with a consequential adverse effect on cashflow.

Community Activities and Talent Development

Alongside our work on stage, we continue to rebuild our work with local communities, including:

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

For the year ended 31 March 2025

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Our 25" Anniversary

Lastly, we have celebrated our 25% anniversary over course of the year with a number of “25”

related activities:

FINANCIAL REVIEW

OVERALL

For the financial year ended 31 March 2025, the Group realised a surplus on unrestricted funds after transfers of £392,729. The statement of financial activities (SOFA), balance sheet, cash flow statement and notes are set out from page 25 onwards.

FINANCIAL SUPPORT

ARTS COUNCIL ENGLAND

After ticket sales, the most substantial part (20%) of CTT’s funding comes from Arts Council England (ACE). Cumbria Theatre Trust has been a member of the ACE National Portfolio Organisation (NPO) funding programme for many years. This funding is awarded for multi-year tranches of which the most recent was a three-year award (2023/24-2025/26). We have been successful in our application for the extension year 2026/27). We are immensely grateful to ACE for this continued support.

In common with many organisations, CTT has received ACE funding at a similar level for many years which in real terms, this represents a decline in ACE funding. LOCAL AUTHORITY AND GRANT MAKERS

We have received significant support from local Councils and grant-makers, much of which is focused on meeting specific needs:

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

For the year ended 31 March 2025

INDIVIDUALS

Alongside these generous grants, we recognize that we could not survive without extensive support from individuals.

This year we are particularly grateful to:

Alongside this, we are also grateful to the many individuals who support us through donations, including to the Play a Part anniversary campaign, as well as other direct donations, additions to ticket sales, and becoming a member.

TRADING

CTT operates a subsidiary company, TBTL Services Ltd (TBTLS) for trading activities which might fall outside its charitable objectives, including bars and catering, ice creams, merchandise and programmes. The provision of bars and catering services has been outsourced since the opening of the Lakeside café six years ago. In 2022/23 TBTLS reviewed closely the operation of these services and considered a number of options, including bringing all these services in house. It was decided that the services should be re-tendered and after an extensive process supported by an experienced consultant, the contract was re-awarded to BaxterStorey for a five year period from the beginning of

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

For the year ended 31 March 2025

2023/24. The contract for these services was signed in May 2023. TBTLS donates its profits to CTT through Gift Aid.

CTT’s financial statements for the year ended 31 March 2025 are consolidated with the profit and loss account of TBTL Services Limited. TBTL Services Limited made a net profit of £117,012, which was donated to the Charity (see also note 27).

Reserves Policy

The Trustees have reviewed closely the level of reserves, taking into account the risks that the Trust faces (including, for example, the slow return of audiences, the prevailing economic situation, and the need to cope with unforeseen emergencies) while recognising the need to invest for the future (including, for example, the need to reach new audiences).

After the review, the Trustees have concluded that in the coming year a minimum level of undesignated free reserves of £500,000 would be satisfactory. Nevertheless, senior management and the Trustees continue to monitor the position regularly alongside the monitoring of risk and will take any necessary steps to maintain a satisfactory financial position. The Trustees review the reserves position formally at the end of the financial year in the light of prevailing conditions and experience.

The unrestricted reserves of the Trust are £2,701,619. The Trust also has restricted reserves of £2,762,975 not available for the general purposes of the charity at the end of the year. Reserves are further analaysed in notes 18 and 19.

Undesignated free reserves of the Trust were £636,303 at the year end (2024: £489,863).

At 31 March 2025 cash reserves stood at £1,377,320, including cash representing restricted fund balances (£14,000) and deferred income and third party resources (£306,296).

Financial Risk Management

The Finance Committee considers the financial risks to which CTT may be exposed, assesses their potential impact on the organisation and identifies strategies to mitigate their effect, should those risks materialise.

Cumbria Theatre Trust’s risk management strategy comprises:

The charity's most significant risk would be the loss of Arts Council England funding or change of its conditions. If these risks were to materialise, it would adversely affect the charity’s ability to operate. Provided Arts Council England continue with the current arrangements, and given reserves balance held, Trustees are confident that the charity can be sustained in its current form.

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TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

CUMBRIA THEATRE TRUST

For the year ended 31 March 2025

PLANS FOR FUTURE PERIODS

Our plan for 2025/26 has been agreed by the Board and by ACE as our principal funder. It sets out the activities that we propose to undertake, and our adherence to a set of investment principles set out by ACE. These investment principles are intended to ensure we develop work of sufficient ambition and quality, that we are inclusive and relevant throughout our organisation, that we are dynamic and respond quickly to changes in our circumstances, and that we are environmentally responsible.

Overall, the plan is intended to move us further towards meeting our vision and mission as set out earlier. Our plan includes:

STRUCTURE, GOVERNANCE AND MANAGEMENT

GOVERNING DOCUMENTS

CTT is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 4 December 1984 with subsequent minor updates in 2007 and 2018. It is registered with the Charity Commission.

CTT established a wholly owned trading subsidiary company for the benefit of the charity, TBTL Services Limited, a private company limited by shares, governed by its Memorandum and Articles of Association dated 22 June 2009.

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

For the year ended 31 March 2025

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ORGANISATION

The governing body of CTT is the Board of Trustees whose members are non-executive and unpaid. The Board meets at least four times a year and retains full and effective control over the Company. The board delegates the management and artistic operation of the company to the Executive Director and Artistic Director who are joint Chief Executives. They attend meetings of the Board, together with other senior staff, as appropriate. All staff who attend board meetings do so as nonvoting participants.

The Board of Trustees takes responsibility for appointing the Executive Director and Artistic Director and will determine the contract of employment and monitor the performance of individuals undertaking these roles. The responsibility for the appointment of other staff would normally be delegated to the Executive Director and Artistic Director.

Keswick Town Council are entitled to nominate one member to the Board. Cumberland Council (formally Allerdale Borough Council) is also entitled to nominate one member to the Board. Neither organisation has nominated such a member for the last 4 years.

Trustee Appointment

The Articles of Association specify that the number of members of the board is not less than five and not more than fifteen, including Trustees nominated by external bodies currently designated in the board rules.

Elected directors would normally retire at the end of their term of office (up to 4 years) but may seek re-election for a second term, except the Chair who may serve a third term.

The Board of Trustees regularly reviews its needs in terms of skills and recruits new Trustees in areas where it is considered necessary or helpful. Trustees are usually recruited through open advertisement, with selection being made by existing Trustees against pre-agreed criteria. New Trustees are provided with extensive background material and are encouraged to gain a thorough knowledge of the organisation by meeting members of staff and other Trustees. Trustee training is organised in relevant areas as needed.

Volunteers

Recruitment, induction and training of volunteers represents a vital element of CTT’s staffing strategy, with approximately 150 dedicated front of house staff ‘on the books’. The audience experience is hugely supported by our volunteers, who offer a unique welcome to theatre customers.

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT

For the year ended 31 March 2025

FUNDS AND FUNDRAISING

CTT generates income from its activities: ticket sales, ancillary trading, contracts for services, grants for specific projects, fundraising. The balance of regular income is made up of grants.

Our annual core funding from Arts Council England (ACE) supports the full range of artistic activity. The Trust is immensely grateful for this funding.

We are also grateful to Cumberland Council for their support of the Trust through their award of a funding grant for National Portfolio Organisations in Cumbria, and Keswick Town Council for their continued project-based funding.

The Trustees place great importance on relationships with donors and supporters and are committed to ensuring best practice through ethical, sustainable fundraising. The charity is not currently registered with a regulatory body but follows the principles of the Fundraising Regulator’s voluntary regulation scheme. We used the support of Tarnside, a consultancy firm, to establish research in future fundraising activities, and contracted Freckle Fundraising to develop our strategy

ETHICAL FUNDRAISING POLICY

CTT are committed to upholding the highest ethical standards as set forth by the Chartered Institute of Fundraising (CloF) Code of Fundraising Practice (the Code). Ethical fundraising builds trust with donors, strengthens reputation, and enables work to have a deeper impact.

CORE VALUES guiding fundraising activities:

Transparency - open about fundraising practices, finances, and how donations are used. Accountability - accountable to donors, beneficiaries, and the public for the funds raised. Respect - treat all donors with respect, regardless of the size of their donation. Integrity - uphold the highest ethical standards in all fundraising activities.

FUNDRAISING PRACTICES to be followed:

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

For the year ended 31 March 2025

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

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the 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 financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CUMBRIA THEATRE TRUST e ee

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Opinion

We have audited the financial statements of Cumbria Theatre Trust (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 responsibilitiesfor the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CUMBRIA THEATRE TRUST

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity 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.

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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the 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.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https:// www frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CUMBRIA THEATRE TRUST

Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Because ofthe inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 ofthe Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. { 2eN) Susanna Cassey (Senior Statutory Auditor)NZ) AUC SONIC) \ for and on behalf of Azets Audit Services J0...0choloer oN

Chartered Accountants Statutory Auditor

Fleet House New Road Lancaster United Kingdom LA1 1EZ

22

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE STATEMENT OF FINANCIAL ACTIVITIES {incorporating Income & Expenditure Account)

For the year ended 31 March 2025

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||||||||| |---|---|---|---|---|---|---|---| |2| |Notes|Unrestricted|Restricted|Total|Total| |Funds|Funds|2025|2024| |£|£|£|£| |INCOME| |Donations|2|1,153,725|147,376|1,301,101|913,044| |Charitable|activities|3|2,107,309|-|2,107,309|1,580,750| |Other trading|activities|4|255,861|-|255,861|313,233| |Investment|income|5|26,302|-|26,302|12,727| |Other income|282,131|-|282,131|167,186| |TOTAL INCOME|3,625,328 147,376 ~—S3,972,704 «2,986,940| |EXPENDITURE| |Costs|of generating|funds|6|83,595|-|83,595|74,306| |Costs|of charitable|activities|7|3,348,429|295,566|3,643,995|2,845,903| |TOTAL|3,432,024 —=—«295,566|3,727,500|2,920,209| |Net|(expenditure)|/ income|before| |transfers|/ taxation|393,304|(148,190)|245,114|66,731| |Transfers|19|-|-|.|-| |Tax on|profit|22|(575)|-|(575)|-| |Net movement in funds|(net income|after taxation)|392,729(148,190)|246,539|SS««*|BT| |Reconciliation|of funds| |Total funds|brought forward|19|2,308,890|2,911,165|5,220,055|5,153,324| |Total funds carried forward|19|“2,701,619 _2,762,975 _5,464,594|——«5,220,055|

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

All income and expenditure derives from continuing activities.

The notes on pages 25 to 41 form an integral part of these financial statements.

23

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|||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |CUMBRIA THEATRE TRUST|~|:|te||| |TRADING AS THEATRE BY THE LAKE|:|.|:|Dog| |As at 31|March 2025|oy| |i|; oe|a|i|8|a|-|F|Be 4.|‘Group|Group|"Charity|we *|Charity|—|i|ae| |ee|Notas|a|20R5|aad|2028|5),|a|a|a| |Tangileassets|=|a|Soo|er|bet|y187,880|AAS|OTS|0|4147068|A|N8B|TAT| |Intangibleassets|26.|IR|2|4,580|eS:|eC||| |Invastments|. i|es|aa|.|:|13|ne wo|os|fa,|Aa|Sop||400|wits|yoo|:|4|z| |Total|Fixed|Agsats|8|LE|SS BONO|460,056|5 848788 AMBRE||| |Debtors|MB|99d|BONIS|80689d|6 788,220| |Cashatbankandinhand|bE|eo|8,377,820,|4,005,523|4,077,745|861926-| |Total Current|Assets. 0822|oe SGT|TS|A|BBA|BR|2|ABBR RTA|ABBA BIB|SABHR AAB|SS| |Amountsfalling|due|within one year.|72°72 AB|“{576,268)|-|(590,173)|"|."|(868,50)|2(873.212)|2||| |~|TOTAL ASSETS|LESS CURRENT LIABILITIES 2000000...|A peg|eoq|“2 p2eno65|aeaooe|8.220055||| |"|STOTALNETASSETS|900220200900|SCUVEE|N32|gagagog|0" 6200085|34nggng|8.220085| |Unrestricted Funds|39, 2|tg|AS|pyogens|os|2,808,800.|°F grotete|1°|YL2aogeeo| |RestictedFunds|o.|5's.|Se stg|2762978|2,914,165|2,762,075|1s|2911465|ys| |NES|PDUs|a|Ars ET3 om|5,66,|8.220,058|8464594|5220055| |Thefinancial|statements|were|epproved|by|the|Board|of Trustees and|authorised|for issue|on|4.|UFOLY|go26|and signed on|thelr behalf|by: 802|

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‘Charlee Caner, CharChar a we mh ns as “25.7 Kale MeLaughin-FiMeLaughiin F ynn, Vi eo Gce - C ha irly === oy io : iy ae a : a “ os on ae 4

"The notes on pages 26 to 42 form an integral part of these financial atataments, - °: peel = ara whe re eye Qt ebay ; ar ay WAS

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,
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24

For the year ended 31 March 2025

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE CASH FLOW STATEMENT

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |a| |Group|Group|Charity|Charity| |2025|2024|2025|2024| |£|£|£|£| |Cash|flows|from|operating|activities| |Net cash|provided|by (used|in) operating|activities|473,203|162,697|406,408|82,282| |Cash|flows|from|investing|activities:| |Bank|Interest|26,302|12,727|25,828|12,727| |Purchase|of property|plant and equipment|(217,708)|(77,386)|(216,417)|(69,241)| |Website|.|-|-|-| |Net cash|(used|in) investing|activities|(191,406)|(64,659)|(190,589)|(56,514)| |Change|in|cash and cash|equivalents|in|the year|281,797|98,038|215,819|25,768| |Cash and|cash|equivalents|at the|start of the year|1,095,523|997,485|861,926|836,158| |Cash and|cash|equivalents|at the end|of the year|1,377,320|1,095,523|1,077,745|861,926| |Reconciliation|of net|Income/(expenditure) to net cashflow from|operating|activities| |Net|(expenditure)|per the SoFA|244,539|66,731|244,539|66,732| |Adjustments|for:| |Depreciation|charges|211,232|196,316|207,489|193,683| |Amortisation charges|8,320|8,320|8,320|8,320| |Dividends|and|interest from|investments|(26,302)|(12,727)|(25,828)|(12,727)| |(Increase)/decrease|in|stocks|(1,378)|(865)|-|-| |{Increase)/decrease|in|debtors|59,697|(116,899)|(23,410)|(183,016)| |Increase/(decrease)|in creditors|(22,905)|21,821|(4,702)|9,290| |Net cash|provided|by (used|in) operating|activities|473,203|162,697|406,408|82,282| |Analysis|of cash|and|cash|equivalents| |Cash|in|hand|1,377,320|1,095,523|1,077,745|861,926| |Total cash|and|cash|equivalents|1,377,320|1,095,523|1,077,745|861,926|

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25

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

1 Accounting policies

Charity information

Theatre By The Lake is a private charitable company limited by guarantee and is incorporated and domiciled in England and Wales. The address of the registered office is Theatre by the Lake, Lakeside, Keswick, Cumbria, CA12 SDJ.

The nature of its operations and its principal activities are detailed in the trustees report attached to these financial statements.

1.1 Accounting convention The financial statements have been prepared in accordance with the charity's articles of association and memorandum, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) {effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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

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

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

Designated fund are funds set aside by Trustees for specific objectives.

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 financial statements.

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

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

Income in respect of productions is recognised in the period in which the production occurs.

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.

26

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 March 2025

1 Accounting policies

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

Income from Government and other grants, whether capital grants or revenue grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be reliably measured.

Income received in advance of a theatrical performance or provision of other specified service is deferred until the criteria for income recognition are met.

Other trading income is recognised on a receivable basis.

Investment income is recognised in the Statement of Financial Activities in the year in which it is receivable.

1.5 €xpenditure Expenditure is recognised once there is a constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be reliably measured. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services. It includes both costs that can be allocated directly to those activities and those of an indirect nature necessary to support them.

Where performances of a production straddle the year-end, payroll, rehearsa! and audition costs are recognised in the year in which they arise. Production costs (e.g. scenery/costumes) and creative team fees are apportioned between the periods on the number of performances in each period and included in accruals or prepayments.

Support costs relate to those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Charity's programmes and activities. These costs have been allocated between costs of raising funds and expenditure on charitable activities. Support costs are apportioned on an appropriate basis eg floor area, per capita or estimated usage.

1.6 Intangible fixed assets other than goodwill Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Website costs

5 year straight line basis

27

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 March 2025

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i Accounting policies

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

Freehold land and buildings Buildings: 50 years straight line; Land: Not depreciated Theatre equipment 10-20% straight line Fixtures and fittings 10% straight line Office equipment and software 20% straight line

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.]

Asubsidiary 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).

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

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

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.

28

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 March 2025

a— E===_=S==___ss__S Ss

1 Accounting policies

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

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

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

Basic financial assets

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

Basic financial liabilities

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

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

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

Derecognition offinancial liabilities

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

1.13 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.

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

Where the trading subsidiary incurs qualifying losses in respect of theatre productions these are surrendered for a cash payment under HMRC Theatre Tax Relief regime. Where receipt of these tax credits is virtually certain they are included in the accounts in the year in which the qualifying losses occurred.

29

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 March 2025

1 Accounting policies

1.16 Group financial statements

These financial statements consolidate the results of the Charity and its wholly owned subsidiary. A separate Statement of Financial Activities for the charity is not included as it has taken advantage of the exemption afforded by s408 of the Companies Act 2006.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

30

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2025

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OOOOOe
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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |2|DONATIONS| |2025|2024| |Unrestricted|Restricted|Total|Unrestricted|Restricted|Total| |£|£|£|£|£|£| |Core grants| |Arts|Council England|- NPO|615,182|-|615,182|615,182|-|615,182| |Cumberland|Council|-|UKSPF|-|147,376|147,376|-|-|.| |Cumberland|Councit|10,000|-|10,000|10,000|-|10,000| |Other grants|18,951|18,951|2,000|-|2,000| |Donations|.| |Other donations|(incl|Gift Aid)|182,592|-|182,592|74,763|-|74,763| |Legacies|327,000|:|327,000|211,099|-|211,099| |1,153,725|147,376|1,301,101|913,044|913,044| |3|INCOME|FROM|CHARITABLE|ACTIVITIES| |Theatre|Performances|2,107,309|-|2,107,309|1,576,823|-|1,576,823| |Education|&|Participation|-|-|.|3,927|-|3,927| |2,107,309|-|2,107,309|1,580,750|-|1,580,750| |The|movement|in|deferred|box|office|income|is|shown|in|note|17| |4|INCOME|FROM OTHER TRADING|ACTIVITIES| |2025|2024| |Unrestricted|Restricted|Total|Unrestricted|Restricted|Total| |£|£|£|£|£|£| |Fundraising| |Room|hires|27,390|-|27,390|38,294|-|38,294| |Total fundraising|activities|27,390|-|27,390|38,294|-|38,294| |Trading subsidiary| |Turnover &|other income|228,471|-|228,471|274,939|-|274,939| |Total|subsidiary|activities|228,471|:|228,471|274,939|-|274,939| |Total income from|other|activities|255,861|-|255,861|313,233|-|313,233|

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5 INVESTMENT INCOME

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2025 2024
£
Bank interest received 26,302 12,727
a 26,302 ee12,727
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Bank interest is receivable on cash balances held in appropriate interest bearing deposits.

31

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2025

a

6
COSTS OF GENERATING FUNDS		 6
COSTS OF GENERATING FUNDS		 6
COSTS OF GENERATING FUNDS		 6
COSTS OF GENERATING FUNDS		 6
COSTS OF GENERATING FUNDS		 6
COSTS OF GENERATING FUNDS		 6
COSTS OF GENERATING FUNDS		 6
COSTS OF GENERATING FUNDS
2025 2024
Unrestricted Restricted Total Unrestricted Restricted Total
£ £ £ £ £ £
Generating donations & grants
Direct costs - - . - - -
Supportcosts 8,768 - 8,768 6,878 . 6,878
Govemance costs 422 - 422 396 - 396
Charged to restricted funds - - - - - -
9,190 - 9.190 7,274 - 7,274
Fundraising
Direct costs 258 - 258 1,044 - 1,044
Supportcosts 8,768 - 8,768 6,878 - 6,878
Govemancecosts 422 - 422 397 - 397
Charged to restricted funds - - - - - -
9,448 - 9,448 8,319 : 8.319
Tradingsubsidiary
Directcosts 34,385 - 34,385 36,867 - 36,867
Supportcosts 30,572 bd 30,572 21,846 - 21,846
Totalsubsidiary activities 64,957 - 64,957 §8,713 - 58,713
Totalexpenditure onotheractivities ~~ *83,.595_~~83,595_74,306ee74,306,
7 COSTS OF CHARITABLE ACTIVITIES
Costsoftheatre operations and
performances {including touring)
2025 2024
Unrestricted
£		 Restricted
£		 Total
£		 Unrestricted
£		 Restricted
£		 Total
£
In-house productions: actors 271,963 - 271,963 218,450 - 218,450
In-house productions: creative 475,471 - 475,471 313,442 - 313,442
Other directcosts 1,725,571 - 1,725,571 1,334,601 - 1,334,601
Incoming work: directcosts - - - - - -
Box office and house management - - . - : -
Marketingand publicity 86,072 - 86,072 114,532 - 114,532
Supportcosts 960,958 - 960,958 774,059 - 774,059
Govemance costs 39,699 - 39,699 37,232 - 37,232
Charged to restricted funds (295,566) 295,566 - (149,454) 149,454 -
3,264,168 295,566 3,559,734 2,642,862 149,454 2,792,316
Education andparticipation
Directcosts 44,425 - 44,425 21,445 - 21,445
Supportcosts 38,147 - 38,147 30,558 - 30,558
Govemance costs 1,689 - 1,689 1,584 - 1,584
Charged to restricted funds : - “ -
84,261 - 84,261 53,587 - 53,587
3,348,429 295,566 3,643,995 2,696,449 149,454 2,845,903

32

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2025

ee

8 SUPPORTAND GOVERNANCE COSTS
2025 2024
GeneralSupport Governance Total Support Governance Total
£ £ £ £ £ £
Salariesand related costs 229,794 18,919 248,713 204,243 18,214 222,457
Directgovernance costs - - - - - .
Premises 288,976 3,145 292,121 247,887 2,354 250,241
General office 251,383 2,029 253,412 127,224 1,238 128,462
Financial
Consultancyand development		 23,889
42,997		 17,084
-		 40,973
42,997		 23,427
36,446		 16,793
-		 40,220
36,446
Depreciation 210,175
1,047,213		 1,056
42,234		 211,232
1,089,447		 200,993
840,220		 1,010
39,609		 202,003
879,829
Apportioned as:
Generating grantsand donations 8,768 422 9,190 6,878 396 7,274
Theatreperformances 960,959 39,700 1,000,658 774,060 37,233 811,293
Participation and outreach 38,147 1,689 39,836 30,558 1,584 32,142
Fundraising activities 8,768 422 9,190 6,878 396 7,274
Trading subsidiary 30,572 - 30,572 21,846 : 21,846
1,047,213 42,234 1,089,447 840,220 39,609 879,829
Analysis ofgovernancecosts 2025 2024
£ £
External audit 16,869 16,581
CostsofTrustee meetings, travel, administration etc. - -
Apportionment ofstaffcosts 16,597 16,150
Apportionment ofsupportcosts 8,768 6,878
42,234 39,609

Allocation of support costs The following bases of allocation are used: - Premises (utilities, repairs etc):

Management review of space usage Management review of staff time Management review of staff time Management review of staff time

33

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2025

9 Trustee and staff Information

a) Trustee information

The trustees are all volunteers and were not paid or received any benefits from employment with the Trust or its subsidiary in the year (2024: £nil); they were reimbursed expenses during the year of £776 (2024: £352). One trustee received payment for professional or other services supplied to the charity £1,142 (2024: Enil) before their appointment as a Trustee. Directors and Officers liability insurance costing £1,160 (2024: £1,043) was taken out during the year.

b) Staff information

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2025 2024
Freelance Stage Managers £ £
Fees 212,348 175,681
Pension contributions 10,471 7,024
Employer's NI contributions : :
222,819 182,705
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Actors and Freelance Stage Managers
Fees
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In line with HMRC guidance, most artists engaged under Equity contracts are treated as self-employed eamers for both tax and NI purposes. Payments to such people are disclosed above as actors’ and stage managers’ fees. In accordance with the collective agreement between Equity and UK Theatre, Cumbria Theatre Trust made pension contributions of 5% of fees paid to actors or stage managers enrolled in the Equity Pension Scheme, provided that the members madea contribution of 3%.

The average monthly number of full-time equivalent artists engaged under Equity contracts during the year was 11 (2024: 8).

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2025 2024
Employees £ £
Wages and salaries 824,880 744,752
Employer's NI contributions 79,078 69,144
Employer's pension contributions 18,515 16,743
922,473 830,639
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No employee eared more than £60,000 excluding employer's national insurance and pension contributions.

In accordance with current legislation, the company operates a defined contributions pension scheme provided by NOW: Pensions Limited which meets its autoenrolment obligations. The company contributes the minimum requirement of 3%. The average monthly headcount was 29 staff (2024: 29). The average number of full-time equivalent employees, actors and stage managers was 38 (2024: 37).

Key management

In addition to the Board of Trustees, the Charity considers its Executive Director, Artistic Director and the other members of the senior management team, as set out on page 1, to be Key Management Personnei for the purposes of the SORP. Remuneration and benefits (salary and pension contributions) received by these employees amounted to £251,725 in the year (2024: £268,518).

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10 Net movement in total funds for the year 2025 2024
This is stated after charging: £ £
Auditor's remuneration (for parent and subsidiary) 12,640 11,700
Remuneration to auditors for other services 3,560 3,300
Depreciation and amortisation 219,552 202,003
Payments under operating leases 10,037 9,000
Trustees’ expenses 352 352
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34

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2025

ed

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|||||||||| |---|---|---|---|---|---|---|---|---| |11|TANGIBLE|FIXED ASSETS| |Long Leasehold|Office| |Land &|Fixtures|&|Theatre|Equipment| |Group|Bulldings|Fittings|Equipment|& Software|Total| |Cost|£|£|£|£|£| |As|at|1|April 2024|6,778,620|502,373|802,468|98,346|8,181,807| |Additions|-|26,319|185,278|6,111|217,708| |Disposals|-|(47,184)|(62,663)|(1,346)|111,193)| |As|at 31|March 2025|6,778,620|481,508|925,083|103,111|8,288,322| |Depreciation| |As at|1|April 2024|2,761,669|410,284|788,503|70,277|4,030,733| |Provided|132,342|36,775|30,314|11,801|211,232| |Disposals|-|(47,184)|(62,663)|(1,346)|(111,193)| |As|at 31|March|2025|2,894,011|399.875|756,154|80,732|4,130,772| |Net|Book Value| |As|at 31|March 2025|3,884,609|81,633|168,929|22,379|4,157,550| |As at|1|April 2024|4,016,951|92,089|13,965|28,069|4,151,074| |Long|Leasehold|Office| |Land &|Fixtures &|Theatre|Equipment| |Charity|Buildings|Fittings|Equipment|& Software|Total| |Cost|£|£|£|£|£| |As|at|4|April 2024|6,778,620|484,951|802,468|98,346|8,164,385| |Additions|-|25,028|185,278|6,111|216,417| |Disposals|-|(47,184)|(62,663)|(1,346)|(111,193)| |As|at 31|March|2025|6,778,620|462,795|925,083|103,111|8,269,609| |Depreciation| |As at|1|April 2024|2,761,669|405,796|788,503|70,277|4,026,244| |Provided|132,342|33,032|30,314|11,801|207,489| |Disposals|:|(47,184)|(62,663)|(1,346)|(111,193)| |As|at 31|March 2025|2,894,014|391,644|756,154|80,732|4,122,541| |Net|Book|Value| |As at 31|March 2025|3,884,609|71,151|168,929|22,379|4,147,068| |As at|1|April 2024|4,016,951|79,155|13,965|28,069|4,138,141|

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35

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 March 2025

NOTES TO THETHE FINANCIAL STATEMENTSSTATEMENTS (CONTINUED)
For thethe year endedended 31 March 20252025		 NOTES TO THETHE FINANCIAL STATEMENTSSTATEMENTS (CONTINUED)
For thethe year endedended 31 March 20252025		 NOTES TO THETHE FINANCIAL STATEMENTSSTATEMENTS (CONTINUED)
For thethe year endedended 31 March 20252025		 NOTES TO THETHE FINANCIAL STATEMENTSSTATEMENTS (CONTINUED)
For thethe year endedended 31 March 20252025		 NOTES TO THETHE FINANCIAL STATEMENTSSTATEMENTS (CONTINUED)
For thethe year endedended 31 March 20252025
EEE
12 INTANGIBLE FIXEDASSETS
Group& Charity Website Total
Cost £ £
As at 1 April2024 41,600 41,600
Additions - -
Disposals
As at31 March 2025		 -
41,600		 -
41,600
Amortisation
Asat 1 April2024 31,720 31,720
Provided 8,320 8,320
Disposals - :
As at 31 March 2025 40,040 40,040
Net Book Value
As at 31 March 2025 1,560 1,560
As at 1 April2024 9,880 9,880
13 FIXEDASSET INVESTMENTS
Group Group Charity Charity
2025 2024 2025 2024
£ £ £ £
Shares in subsidiaryundertakings : : 100 100
- - 100 100

TBTL Services Limited {registered campany number 06946177) is wholly owned by the charity and operates certain trading activities. The accounts of the subsidiary are consolidated in these financial statements (see note 28). The subsidiary company is incorporated in England and Wales and their registered office is the same as that of Cumbria Theatre Trust (the parent company).

36

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2025

TE

Group Group Charity Charity
2025 2024 2025 2024
14 STOCKS £ £ £ £
Consumabk items 5.016 3,638 . -
5,016 3,638 : :
15 DEBTORS
Tradedebtors 50,547 117,030 13,419 82
Otherdebtors 20,754 25,851 18,859 22,571
Inter-company balances . - 347,809 346,923
Theatre taxcredit recoverable 313,930 206,686 313,930 206,686
Prepayments 114,185 209,546 112,614 206,958
499,416 559,113 806,631 783,220
16 CREDITORS: amounts falling due withinoneyear
Trade creditors 62,868 109,566 60,394 89,516
Taxationand social security 26,398 16,591 26,398 16,591
Deferred income -advance bookings 17 306,296 341,569 306,296 341,569
Customercredits 39,452 57,842 39,452 57,842
Othercreditors 16,807 11,130 16,807 11,130
Accruals 123,872 62,475 119,164 56,564
Corporationtax 575 0 ee
576,268 599,173 568,510 573,212
17 MOVEMENTS IN DEFERRED INCOME
Deferred income broughtforward
Released in the year
Deferred in the year
Deferredincomecarriedforward
2025 2024
£ £
341,569 259,296
(341,569) (259,296)
306,296 341,569
306,296 341,569

37

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CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2025

18 STATEMENT OF FUNDS (continued)

Restricted fund balances at the year end are held for the following purposes.

Cultural Recovery Fund

To enable the theatre to meet the challenges of the pandemic and relaunch its activities in

a Covid secure way whilst managing the financial risk.

Legacy

Cumbria Theatre Trust received a legacy of £35,000 which will be released over the next five years to support the employment of new talent

UKSPF

Shared Prosperity Funding was received which enabled the theatre to upgrade their equipment.

Capital grants & donations expended

This records the expenditure on capital assets funded by capital grants where there are continuing restrictions on the assets, and provides a fund against which depreciation can be charged in future periods. Depreciation of £141,190 has been charged to this fund this year.

Restrictions relate both to funds given for the construction and fitting out of Theatre by the Lake and its continued use by the Charity as a theatre, and also to the redevelopment of the Lakeside Café.

With the exception of where detailed above the trust plans to utilise all remaining restricted revenue reserves within the next financial year. Funds are transferred to ‘capital grants & donations expended’ if used to purchase capital equipment.

At 31 March2024 Funds designated At 31 March 2025
Designated funds:
Participation 18,000 {18,000} -
Legacy 84,000 (84,000) .
Development 15,000 (10,000) 5,000
Capital spending 428,925 (115,155) 313,770
CommunityEngagement - 12,500 12,500
ArtistDevelopment . 12,300 12,300
Branding - 1,311 1,311
Organisational Development : 300,000 300,000
545,925 98,956 644,881

Participation

Planned works which due to staff capacity were not completed until 24/25

Legacy

Additional legacy received in 23/24 released in 24/25.

Development

Development spend c/f is underspend 24/25 to be spent in 25/26

Community Engagement

Community engagement underspend 24/25 to be spent in 25/26

Artist Development

Artist development underspend 24/25 to be spent in 25/26

Branding

Branding underspend 24/25 to be spent in 25/26

Organisational Development

Planned three year release 25/26 - 27/28.

39

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 March 2025

ee

19 ANALYSIS OF CHARITY FUNDS

Group Group Group Charity Charity Charity
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £
As atMarch 31 2025
TotalFunds 2,701,619 2,762,975 5,464,594 2,701,619 2,762,975 5,464,594
Less:
NetFixedAssets & RestrictedFunds (4,159,110) (2,762,975) (6,922,085) (4,148,728) (2,762,975) (6,911,703)
Associatedcapitalgrants 2,748,975 - 2,748,975 2,748,975 - 2,748,975
Fixed Assets net ofassociated capital
grants (1,410,135) {2,762,975} (4,173,110) (1,399,753) (2,762,975) (4,162,728)
Designated capitalspend (313,770) - (313,770) (313,770) - (313,770)
Otherdesignated funds (331,111) - (331,111) (334,111) - (331,111)
Operating leasecommitmentsdue within
one year (10,300) - (10,300) (10,300) : 10,300)
Undesignated free reserves 636,303 - 636,303 646,685 - 646,685
As atMarch 31 2024
Total Funds 2,308,890 2,911,165 5,220,055 2,308,890 2,911,165 5,220,055
Less:
NetFixedAssets& RestrictedFunds (4,160,954) (2,911,165) (7,072,119) (4,148,121) (2,911,165) (7,059,286)
Associatedcapitalgrants 2,890,165 - 2,890,165 2,890,165 - 2,890,165
Fixed Assets net ofassociated capital
grants
Designated capitalspend		 (1,270,789)
(428,925)		 (2,911,165)
-		 (4,181,954)
(428,925)		 (1,257,956)
(428,925)		 (2,911,165)
-		 (4,169,121)
(428,925)
Otherdesignated funds (117,000) - (117,000) (117,000) - {117,000)
Operating lease commitments due within
one year
Undesignatedfreereserves		 (2,313)
489863		 - - 2,313)
489,863		 (2,313)
502,696		 - - (2,313)
502.696

40

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 March 2025

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Seeee eee
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20 CONSTITUTION

The company is controlled by its members in general meeting. No individual member or group of members has overall control of the company.

21 TAXATION

The company is a registered charity and is entitled to claim annual exemption from UK Corporation Tax.

The trading subsidiary TBTL Services Limited paid £575 of corporation tax in the year (2024: ENil).

22 CAPITAL COMMITMENTS

At 31 March 2025 the charity had capital commitments which are contracted for but not provided for in the financial statements of £Nil (2024: ENil),

23 CONTINGENT LIABILITIES

The Arts Council of England provided a grant of £4,685,704 to fund the construction of the theatre.

A number of conditions were attached to this grant with consequences

for non-compliance, including the possible need to repay the grant. These conditions have now expired and written confirmation has been received.

We understand that simular conditions applied to past capital grants from Cumbria County Council (£282,500), European Regional Development Funds (£200,00) and Northern Rock Foundation (£200,000) that, given the elapsed time, may also have expired. Written confirmation will be sought.

Regardless, of the above position the Trustees do not expect these liabilities to crystallise.

24 RELATED PARTY TRANSACTIONS

Keswick Town Council is also entitled to nominate one member to the Board. A grant of £2,000 (2024: £2,000) was received from Keswick Town Council towards our education and participation work in Keswick and the surrounding area.

Cumberland Council is also entitled to nominate one member to the Board. The group received £157,376 (2024: £10,000) in grants from Cumberland Council during the year.

Donations totalling £1,089 were received in aggregate from trustees during the year (2024: £194).

There were no other outstanding balances with related parties at the end of the year (2024: Nil} and no other transactions with charity trustees during the year.

25 OPERATING LEASE COMMITMENTS

At 31 March 2025 the company had the following commitments under non-cancellable operating leases:

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2025 2025 2024 2024
Property Others Property Others
£ £ £ £
Minimum amounts payable:
within one year 10,300 - 2,313 -
within two to five years 41,200 - .
later than five years 43,655 - - -
Total 95,155 : 2,313 -
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41

CUMBRIA THEATRE TRUST TRADING AS THEATRE BY THE LAKE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 March 2025

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SS eee
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26 Parent charity - Statement of Financial Activities

Unrestricted Restricted Total Total
Funds Funds 2025 2024
£ £ £ £
Totalincoming resources 3,759,220 147,376 3,906,596 2,928,228
Totalresourcesexpended 3,366,491 295,566 3,662,057 2,861,496
Net (expenditure) /income forthe year
beforetransfers		 392,729 (148,190) 244,539 .
66,732
Subsidiary undertaking -commercial andtrading activities
Asummaryofthe results and closing balancesofthe subsidiary, TBTL Services Ltd, isshown below.
2025 2024
£
Turnover 228,472 274,939
Intercompany adjustments - -
Activities forgenerating funds: trading operations 228,472 274,939
Cost ofsales 34,386 36,867
Administration & premises expenses 76,973 21,846
Management charge = -
Cost oftrading operations 111,359 58,713
117,113 216,226
Other income 474 -
Taxationcharge (575) -
Net profitfortheyearreported byTBTLServices Ltd 117,012 216,226
Gift Aid (117,012) (216,226)
Retained in the subsidiary - :
As atthe balance sheet date, the assetsand liabilities of the subsidiarywere:
Non currentassets 10,482 12,933
Current assets 345,185 360,049
Creditors: amounts due within one year (355,567) (368,627)
100 4,355
Represented by:
Aggregate share capitaland reserves 100 100
Profitand Loss Account . :
100 100

27 Subsidiary undertaking - commercial and trading activities A summary of the results and closing balances of the subsidiary, TBTL Services Ltd, is shown below.

42