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2022-08-31-accounts

REGISTERED COMPANY NUMBER: 02233315 (England and Wales) REGISTERED CHARITY NUMBER: 701310

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

FOR

WORCESTER THEATRES CHARITABLE TRUST LIMITED

(FORMERLY WORCESTER LIVE CHARITABLE TRUST LIMITED)

CHARITABLE COMPANY LIMITED BY GUARANTEE

WORCESTER THEATRES CHARITABLE TRUST LIMITED (REGISTERED NUMBER: 02233315) CHARITABLE COMPANY LIMITED BY GUARANTEE

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022

Page
Company Information 2
Report of the Trustees 3 to 9
Independent Auditors' Report 10 to 12
Consolidated Statement of Financial Activities 13
Consolidated and Company Balance Sheet 14
Cash Flow Statement (including Notes to the Cash Flow Statement) 15
Notes to the Consolidated Financial Statements 16 to 28

Page 1

WORCESTER THEATRES CHARITABLE TRUST LIMITED (REGISTERED NUMBER: 02233315) CHARITABLE COMPANY LIMITED BY GUARANTEE

COMPANY INFORMATION FOR THE YEAR ENDED 31ST AUGUST 2022

DIRECTORS AND TRUSTEES: Dean Elliott (appointed 21st October 2021)
Lord Richard Faulkner of Worcester
Chris Glover (appointed 6th January 2023)
Josephine Hodges
Roger Knight (appointed 6th January 2023)
John Murfin
John Yelland (resigned 11 May 2022)
COMPANY SECRETARY: John Yelland (resigned 11 May 2022)
CHIEF EXECUTIVE OFFICER: Sarah-Jane Morgan
REGISTERED OFFICE: Huntingdon Hall
Crowngate
Worcester
WR1 3LD
REGISTERED COMPANY NUMBER: 02233315
REGISTERED CHARITY NUMBER: 701310
AUDITORS: Richards Sandy Audit Services Limited
Thorneloe House
25 Barbourne Road
Worcester
WR1 1RU

Page 2

WORCESTER THEATRES CHARITABLE TRUST LIMITED (REGISTERED NUMBER: 02233315) CHARITABLE COMPANY LIMITED BY GUARANTEE

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2022

The directors, who are also trustees of the charity, present their annual directors' report together with the consolidated financial statements of the charity and its subsidiary for the year ended 31st August 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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).

REFERENCE AND ADMINISTRATIVE DETAILS

CHANGE IN NAME

On 30 September 2021 the charity changed its name from Worcester Live Charitable Trust Limited to Worcester Theatres Charitable Trust Limited.

Previous names of the charitable company also include: The Countess Of Huntingdon's Hall Limited; Huntingdon Arts Limited; and Worcester Live Limited.

GOVERNING DOCUMENT

The charity is a company limited by guarantee which is governed by its Memorandum and Articles of Association, which were adopted on 21 March 1988. The Memorandum of Association was revised on 31 August 2004. The charity is registered with the Charity Commission. The charity registration number is 701310 and the limited company number is 02233315.

REGISTERED OFFICE

The registered office of the charitable company is:

Huntingdon Hall Crowngate Worcester WR1 3LD

PRINCIPAL OFFICES

The principal offices of the charitable company are:

Huntingdon Hall Crowngate Worcester WR1 3LD

The Swan Theatre The Moors Worcester WR1 3ED

TRUSTEES (WHO ARE ALSO DIRECTORS)

The trustees, who are also directors, who held office during the year under review and up to the date of signature of these financial statements were:

Dean Elliott (appointed 21st October 2021) Lord Richard Faulkner of Worcester Chris Glover (appointed 6th January 2023) Josephine Hodges Roger Knight (appointed 6th January 2023) John Murfin John Yelland (resigned 11 May 2022)

Page 3

WORCESTER THEATRES CHARITABLE TRUST LIMITED (REGISTERED NUMBER: 02233315) CHARITABLE COMPANY LIMITED BY GUARANTEE

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

CO-OPTED EX-OFFICIO MEMBERS

J Vale (Chairman, Friends of the Swan Theatre) L Hodgson (Worcester City Council appointee) D Broster (Heads of the School of Arts, Worcester University appointee) R Walker MP (Member of Parliament for Worcester)

LIMITED BY GUARANTEE

The charitable company is limited by guarantee and does not have an issued share capital. Each member is liable to contribute £1 each to the Charity's assets if it should ever be wound up.

APPOINTMENT OF TRUSTEES

The trustees are appointed by the members in the annual general meeting. New trustees are appointed by the existing board of trustees, taking into account the way in which their skills will supplement and enhance those already available to the Board. New trustees are inducted by a series of meetings with the Chairman and senior staff of the charitable company.

CHIEF EXECUTIVE OFFICER

The trustees have delegated day to day management of the charitable company to the Chief Executive Officer who is supported by a management team. The Trustees receive appropriate training at trustees' meetings, as is deemed appropriate.

The Chief Executive Officer is Sarah-Jane Morgan.

The pay and remuneration of the Chief Executive Officer is agreed by the Chairman and Company Secretary having taken into consideration the figures for comparable theatres in this area.

PRINCIPAL ADVISERS

The company's auditors are: Richards Sandy Audit Services Limited
Thorneloe House
25 Barbourne Road
Worcester
WR1 1RU
The company's solicitors are: Harrison Clark Rickerbys Limited
5 Deansway
Worcester
Worcestershire
WR1 2JG
The company's bankers are: Royal Bank of Scotland Plc
5-9 St Nicholas Street
Worcester
WR1 1UR

STRUCTURE, GOVERNANCE AND MANAGEMENT

ORGANISATION

Strategic decisions and the monitoring of performance against pre-determined criteria are carried out by the trustees at periodic meetings and by individual trustees with specific duties. The day-to-day management to achieve the strategic objectives is delegated to the Chief Executive Officer, who is supported by a management team.

SUBSIDIARY COMPANY

The parent company has one wholly owned subsidiary, Arts Enterprises Worcester Limited. This company operates a bar at both at the Swan Theatre and at Huntingdon Hall and also sells merchandise. All of the subsidiary's profits are is gift aided to this charitable company.

Because of COVID-19, Arts Enterprises Worcester Limited did not trade for almost all of the previous financial year. However during the current financial year, Arts Enterprises Worcester Limited recommenced trading normally.

Page 4

WORCESTER THEATRES CHARITABLE TRUST LIMITED (REGISTERED NUMBER: 02233315) CHARITABLE COMPANY LIMITED BY GUARANTEE

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

RISK ASSESSMENT

The charitable company regularly reviews the risks to which it is exposed and takes such action as it is possible to mitigate those risks.

The principal risks and uncertainties of the charitable company are:

OBJECTIVES AND ACTIVITIES

AIMS AND OBJECTIVES

The principal objects of the company for the year under review are:

The trustees confirm that they have complied with the duty in section 17 (5) of the 2011 Charities Act to have due regard to guidance on public benefit, when reviewing the charitable company's aims and objectives and in planning future activities.

ACHIEVEMENTS AND PERFORMANCE

Worcester Theatres Charitable Trust Limited runs the Swan Theatre, a 350-seat proscenium arch traditional theatre space and Huntingdon Hall, a 330-seat converted Methodist Chapel. We are the only venue-based arts provider in Worcester offering a professional cultural provision for the city. Providing a wide range of entertainment at the venues, from folk, popular music, jazz, world music, spoken word, classic & modern theatre, popular music, tribute bands, traditional/contemporary dance and children’s theatre. We also produce our own productions, via the Worcester Repertory Company, we are the only venue in Worcestershire to do this and we are proud of our ability to produce high standard professional productions for the city of Worcester and the wider county. These are performed both at our venues and other venues in the city.

We are consistently supported with funding from Worcester City Council who value the impact we make upon the city in terms of our cultural provision. The company continues to be supported by an excellent Board of Directors with varying and dynamic skills who complement and support the Chief Executive in the operation of the Charity. The organisation is delighted to employ a lean but highly skilled, motivated, and passionate staff, who are driven and determined to ensure the company succeeds at every level and are backed by a volunteer force of 150, who champion both venues providing stewarding and staffing for the bars, whilst also being the backbone and heart of the organisation.

Swan Theatre

The Swan Theatre’s programming has returned to full capacity post covid and has been well supported across the genres as audiences return to live entertainment. The programming for the venue has new clarity and presents a well-balanced offering each year. The venue supports minority groups in the city and wider county and provides an important space for emergingartists, talent development and LGBTQ+ performers and performances much of this work centric to the Swan Theatre studio. Audience development research shows that the strongest growth area is in family theatre programming with a 150% annual increase in this field.

Page 5

WORCESTER THEATRES CHARITABLE TRUST LIMITED (REGISTERED NUMBER: 02233315) CHARITABLE COMPANY LIMITED BY GUARANTEE

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

The venue continues to be a popular space for local community week-long hires enabling the community to access a professional theatre environment, whilst continuing to contribute a sustainable income to Worcester Theatres at periodical times of the year. There are also a small percentage of one nighter annual professional / amateur hires at the venue.

The Charity continues to offer the smaller studio spaces for hire to businesses and community groups aiding in the daytime operational success of the business.

Outreach & Festivals at the Swan Theatre

We have seen a wonderful growth within the Swan Youth Theatre, supporting young members both on zoom and through in person COVID-secure classes throughout the pandemic, enabling them to retain friendships, build confidence, learn drama skills and begin their journey of a lifelong love of the arts.

The Young Rep has continued to ensure it’s members aged 16-24 have the opportunity to engage with a range of performance opportunities and this year saw them take part in the national NT Connections Festival for the first time.

The 2nd Worcester Fringe saw an increase in both free and ticketed events with an 81% increase in audiences for the weeklong festival of theatre, emerging artist work, comedy, spoken word, dance, music and children’s theatre.

Worcester Repertory Company

The Repertory Company is the producing arm of Worcester Theatre’s work and endeavours to offer our patrons a wellrounded and varied programme of arts events to attract the largest audience from the city and beyond.

This year saw a return to a full season of Repertory productions to entice our Rep audiences back into the venues of the city.

The Rep produced Beauty and the Beast, My Dearest Mr Coward, Hunt, and Round and Round the Garden and welcomed audiences of 17,000 across the Swan Theatre, Huntingdon Hall and the Worcester Commandery just for their repertory work.

Huntingdon Hall

Huntingdon Hall has seen strong audiences across its programming genres this year. The venue remains the supporting venue to the Swan Theatre and provides a vital secondary programming space for the organisation. This year has required a strategic approach to the programming for both venues but particularly the Huntingdon Hall venue to ensure we have protected the organisational financial resources, ensuring only the strongest programming options have been included, which has been rewarded with good audience figures, whilst maintaining our ability to fulfil our charity aims and objectives.

The venue continues to be hired by Worcester Concert Club and a small percentage of professional hirers/artists we are also pleased to continue to offer the facility for daytime hire to the Heart of Worcestershire College to enable their music students to experience performance in a professional venue.

Summary

The Charity has enjoyed a return to a more normal operational year and is satisfied that the response from its patrons is a positive indicator that the venues are still an important contributor to their lifestyles post pandemic. The pantomime in particular was a turning point ensuring that the most important calendar event for the organisation was firmly re-established for the city and audiences were once again able to enjoy this event as part of their Christmas celebrations. The continued growth of engagement through our programming and participation projects ensures that Worcester Theatres continues to broaden and diversify our offering for the city.

Page 6

WORCESTER THEATRES CHARITABLE TRUST LIMITED (REGISTERED NUMBER: 02233315) CHARITABLE COMPANY LIMITED BY GUARANTEE

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

ACHIEVEMENTS AND PERFORMANCE (Continued)

FUNDRAISING ACTIVITIES

The charitable company makes appeals to both the general public for donations and to charitable trusts for grants. These activities include automated requests for donations from persons using the online ticket booking system, advertised benefits for persons signing up to one of the charitable company's various patrons schemes and the placing of donation boxes within the venues operated by the charitable company. The charitable company does not use either a professional fund-raiser nor a commercial participator. The charitable company is not bound by any voluntary standard or scheme for regulating fundraising activities. The charitable company has not received any complaints within the year relating to how it undertakes fundraising activities. The trustees do not believe that these activities are likely to cause neither vulnerable people and other members of the public to be at risk of suffering unreasonable intrusion on a person's privacy, unreasonably persistent approaches for the purpose of soliciting or otherwise procuring money or other property on behalf of the charitable company or placing undue pressure on a person to give money or other property.

FINANCIAL REVIEW

Incoming resources increased from £872,885 to £1,751,593, with the increase due to the charity operating for the full financial year following the lifting of COVID-19 restrictions. The unrestricted fund net surplus for the year was £144,529 (2021 - unrestricted fund net surplus of £253,135). The charity also benefitted from several large COVID-19 related grants in both the current and previous financial years.

At 31 August 2022 free reserves (defined as the unrestricted reserves less unrestricted reserves held within fixed assets (see note 18)) was £473,885 (2021 - £308,384).

RESERVES POLICY

The charity' reserves policy ensures that the charity hold an appropriate level of financial reserves to protect the Charitable Trust and its employees against any future uncertainties. Should for whatever reason the charity be unable to continue trading, the minimum level of reserves needed to cover closure costs has been estimated to be £235,000, including provision for the following estimated costs:

Total reserves at the year end were £578,562 (2021 - £422,442), including total restricted funds of £94,775 (2021 - £94,589). At the year end tangible fixed assets held had net book value of £43,972 (2021 - £84,824).

Unrestricted General Fund excluding fixed assets amounted to a surplus of £473,885 (2021 - £308,384), which is in excess of the level required by the reserves policy. This excess in reserves held is largely due to the charity being overly prudent when budgeting expenditure in recent years as a result of COVID-19 when the charity was for long periods of time restricted from trading normally.

The trustees have yet to determine how best to use this current surplus of funding but are considering a number of options including capital investments and building improvements. These may include the purchase of new LED lighting to reduce the overall operational costs at the venues and ensure sustainability/ aid in working towards a carbon zero future, the refurbishment of the sanitary facilities at both venues improving the facilities that we are providing for our audiences or the reupholstery of the seating at Huntingdon Hall to preserve the historic venue for the future.

INVESTMENT POLICY

The investment policy is to invest surplus funds in interest bearing accounts with immediate access. The charitable company has insufficient funds to invest on longer term basis.

The charitable company holds a wholly owned trading subsidiary held for the purpose of generating income for use by the charitable company.

Page 7

WORCESTER THEATRES CHARITABLE TRUST LIMITED (REGISTERED NUMBER: 02233315) CHARITABLE COMPANY LIMITED BY GUARANTEE

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

PLANS FOR THE FUTURE

The Charity continues to programme productions and shows for both the Swan Theatre and Huntingdon Hall for the 2024/2025 seasons with a strategic and considered approach to audience development and artistic development, acknowledging the potential challenges the organisation may face due to the current recession/cost of living crisis.

Worcester Theatres programming team will continue to pursue a wide and diverse culturally robust provision for the city, ensuring venues are offering an appealing programme reflective of the culturally rich city in which they are located.

The charity will continue to expand our work for minority groups and emerging artist talent development providing opportunities for performance and mentoring within the city through the already successful programmes Saucy and Platform WR1. The development of professional CPD training via the WT Workroom, alongside the already successful growth of The Young Rep and Swan Youth Theatre will continue to be expanded providing opportunities for more age groups to engage with the arts across our venues, we are ambitious to develop our engagement with schools, continue to offer low cost, free and bursary funded opportunities and continue to provide free access to the arts through Culture Café and the Worcester Fringe.

Worcester Theatres continue to rebuild a resilient organisation following the pandemic and during the current country wide economic challenges. With loyal and solid support from our patrons both venues provide a vital opportunity for cultural engagement within the city of Worcester. With a new organisation mission and vision, programming strategy and growing audiences, coupled with an expanding outreach and participation provision the organisation is in a good position for the future and they are excited to continue to expand and develop over the coming year.

We continue to provide a home for Vamos Theatre as our resident Theatre Company. Vamos Theatre is the UK’s leading full mask Theatre Company and we are mutually exploring ways in which we can expand our joint artistic working plan and practices including the expansion of our emerging artist programmes and our provision for theatre classes for young people with additional needs/ disabilities.

As the only producing Arts venues in Worcestershire, we have forged strong links with Artists; creatives and venues both within and beyond our county to bring new talent, partnerships and current thinking to Worcestershire. The use of external directors is a key element of our strategy moving forward as we plan to move back to a full and varied theatre offering from the Worcester Rep to build and strengthen our audiences for theatre.

The trustees and the Chief Executive are proud of the developments Worcester Theatres have made, we continue to build a strong, resilient organisation and maintain solid support from our patrons which distinctly reflects the need for an arts organisation such as ours within the city.

We are ambitious to ensure we engage with new audiences and have already seen success through the broadening out of our arts programming/ talent development work, we will continue to find areas to expand/connect with other areas of cultural stimulus for our city, responding effectively as an organisation - this will be where we will grow and succeed as an organisation.

CORONAVIRUS

Following the outbreak of COVID-19, based on the advice from the Government and for the safety of our staff, volunteers and patrons, the activities of the charity were closed and then re-opened in line with government guidelines and under strict social distancing measures/with COVID measures in place. All shows were cancelled or rescheduled. Patrons with tickets for rescheduled shows were contacted via e-mail where possible, with the option to either change to the new dates, receive a refund when the box office reopened or donate the value of the tickets to the charity. Those who could not be contacted via email were contacted via phone.

We received the various support grants from the Government and used the Government furlough scheme until we received CRF funding from the Arts Council England and DCMS.

Page 8

TIIORCESTER THEATRES CHARITABLE TRUST UMITED CHARITABLE COMPANY LIMITED BY GUARANTee REGISTEREO NUMBER: 2233315 REPORT OF THE TRUSTEES FOR THE YEAR ENDEO 31ST AUGUST 2022 Conllnwdl STATEMENT OF TRUSTEES, RESPONSIBIUTIES The trustees (who are the irectors ol Worcesfer Chantatle TnLSt Lbj lor thè purF)8e8 of ￿MpanY Lawl are responSi￿e for prepanng the Report of thg Tru99s aThJ tr fiTra￿Aal ststemenb in a¢trJrd8nc4 wrth appl¢c)￿ and Unit•d Kingdorn Acuuntin9 Stsndards Iunrtad ￿"ngdoM Ger￿lty Accepted AcwJnb"ng Prac.￿1. company Lgw requires Ihe Irustees to wPo￿ financial statements for eath finan¢4al Y&ar￿ICh give a and fBir viw ol the state ol affair6 of Ihe tharit8b￿ company aThJ of ￿ In¢￿irS r850UrtS and a[)l￿tron of resourceg. Including the incL)me and •xp•ndrtw•. of the Charit￿le company for th•1 flKJ. In pr¥panThJ those financial ststwn&nts, th8 tfustoes are rtrjuiffjd select SUrtab￿ accountr'ng polkJ8s gnd th•n aFvfy thwn oThisterfy. Qbswo tha malhods and pnnapth In Charities SORP IFRS 1021. make judgements and a¢thntng estsmates that are reasonable W￿￿1t, 8TrJ p￿8￿ thè financial staternents on going c¥Jnc8m basts unless rt inaForoprl8t• to that tho thartstyly runpany continuo in busi￿55. Th& tNst¢s$ a￿ responsibkfj lor k8epiry aCC))untThJ rocor(Js ￿lch disdose rea60nab￿ accuracy at any timo th& ftnandal position ol th8 charilabkn wnpany to anable th8m to ensure that thè finana81 statements o)mF4y wth th C￿panIes Act 2￿6. Thèy af• also responwbb for safeguardirrfJ th6 as88ts of Ihe ch81it8bLg and hence for tthlng r9990nab￿ Stèps for th8 preventyon ¥rbJ tJtrt•thon ol fra¢JJ an(J other irregularibg5. STATEMENT AS TO DISCLOSURE OF INFORMATK)N TO AUDITORS In 80 lar os th• trustees •ffj at tho bm• ol 8PPfOVmg CW ar￿￿1 r•port'. th•rn ffj no r818vant inforn￿t￿, t￿.￿9 Infmob)n n8ethd by the a￿tOr li ccffjnthln wlh prnpanng thelr report. ol which the group's auditor i¥ unawarè, aThJ the trustees, having enquirs of f•llow dlr•ctors and the kvoup'$ ￿￿11)r that thoy ¢wht to have individualty tsk•n, hwe each tsken all step8 that h•lshe Is to tske as 8 dire¢lor In orf•r to mak• tthifflsefves 8w¥s of any r•￿Vant a￿art inlomab¢n and to esablish that the audikn i4 ol Ihai infom)ats"on. Thi8 f•PC¢t h9$ Wn prepared in Oct¢rda￿ of Part 15 of Cthi)panth Act 2C￿ rol•ting lo small componhgs. AFvroved by order ol thè Board of TN8tM8 ￿.. .. Joh urfin Di Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WORCESTER THEATRES CHARITABLE TRUST LIMITED FOR THE YEAR ENDED 31ST AUGUST 2022

Opinion

We have audited the financial statements of Worcester Theatres Charitable Trust Limited (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31st August 2022 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is 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 Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 20 to the financial statements, 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other matters - comparative figures are unaudited

The financial statements of Worcester Theatres Charitable Trust Limited for the year ended 31st August 2021 were not audited. As a result the comparative figures included within these financial statements are unaudited figures.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WORCESTER THEATRES CHARITABLE TRUST LIMITED FOR THE YEAR ENDED 31ST AUGUST 2022

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Our 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 a Report of the Independent Auditors 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we have:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011 (and related legislation), as well as laws and regulations relating to the employment and payment of staff including, but not limited to, the Employment Rights Act 1996, the National Minimum Wage Act 1998 and the Pensions Act 2008.

We performed audit procedures to detect non-compliances which may have a material impact on the financial statements, which included reviewing the financial statement disclosures and sample testing of monthly payroll records for the calculation of gross wages, payroll taxes and pension costs.

Significant laws and regulations effecting the group that may have an indirect impact on the financial statements are the Licensing 2003 Act (and related legislation). We have confirmed that the group holds premises licences for all locations where it sells alcohol.

Page 11

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WORCESTER THEATRES CHARITABLE TRUST LIMITED T 2022 FOR THE YEAR ENDED 31ST Aufju￿. B￿U$• of thè 1ft￿￿nt 1wnrtab.ons of ￿ •LKir(. is 8 rtsk that not ¢JgW all lrr9gulant￿$. induding th058 k8¥Jiry to a material misstatement in thtr finanoaj statements or non￿pIlant6 %wth wulation. Thi8 risk mc￿aSeS the more th81 complianc8 with 3 law or r•gulatKJn i8 removed from the ev￿$ aTrJ transactions refleded in the financial ststwn&nts, as 11 be less likely to tecc4ne aware of instsnc¢s of ncTrc(rfnplianc. Tlk risk $ also groater regarding irr8gulariti8s occurring due to fraud rather than error, 8$ fra(¥J invow intentK)nal Con￿lmont. forgery, collusion. C￿L$S1on or misrepresentstK)n. A fvrther dexription ol our wwnsibilites for the wjrt of tha finanoal stsknnts is kKat8d on the Finanryal Roports"NJ Council's bvthit8 at w•M.frc.org.uklauditotslaLhlrt-assuranceothicgaudrtois-reskN)nsibilth"es-lor-the-8udrt ThK8 descripts'on forrns part of our Report ofthe IndepeTh1ent ALJrtorn. Uao of our report Th18 rgport 1$ mgd8 sO￿Y to the ¢ontablo CJ)mpanYs mwnborn. as a l>)Jy. Mi ￿1)r￿a)e wlh Chafv 3 tsf Part 18 of the Ccffjpanies Acl 2CN)6 udrt has been undertaken so that ￿ mwjht state to the chart8ts￿ rA)mp8nWs m8rnbers tho8 mattèrs we Are requ slate to thern In an audrtoKs' rewt aThJ for Tho other purpos8. To fu1105t extertt ￿mItt£￿ by law, do not acc4pt a85um fèspon￿b￿ty to anyon8 other than tha charrta￿e cunpany and fv chaiitabb companls m•mbers as o brmj . for our autht %wrk. ts th rw( of for tr we h8wJ fryrrvy. Nichol85 Paul Sandy FCA I ior Staiutory Athditorl For aThJ on tohall of Richard Sandy Audrt Swces timrtod Istalutory ALbYrttysl Charterèd Ctrbf*d Attountsnts Thorneloe House 25 B￿￿oum1 Road Worce3ter WR1 1RU Jai3 P•Je 12

WORCESTER THEATRES CHARITABLE TRUST LIMITED (REGISTERED NUMBER: 02233315) CHARITABLE COMPANY LIMITED BY GUARANTEE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST AUGUST 2022

Notes
INCOME AND ENDOWMENTS FROM:
Donations and legacies
Charitable activities
Other trading activities
Investments
TOTAL INCOME AND ENDOWNMENTS
15
EXPENDITURE ON:
Raising funds
Charitable activities
TOTAL EXPENDITURE
16
NET INCOME / (EXPENDITURE)
TRANSFERS BETWEEN FUNDS
NET MOVEMENT IN FUNDS
TOTAL FUNDS BROUGHT FORWARD
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Fund
£
297,139
1,059,661
255,128
279
1,612,207
86,697
1,380,981
1,467,678
144,529
11,405
155,934
327,853
483,787		 Restricted
Fund
£
139,386
-
-
-
139,386
-
127,795
127,795
11,591
(11,405)
186
94,589
94,775		 Total
2022
£
436,525
1,059,661
255,128
279
1,751,593
86,697
1,508,776
1,595,473
156,120
-
156,120
422,442
578,562		 Total
2021
£
714,514
123,761
34,478
132
872,885
9,021
624,926
633,947
238,938
-
238,938
183,504
422,442

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

STATEMENT OF FINANCIAL ACTIVITIES FOR THE INDIVIDUAL CHARITY

As permitted by section 408 of the Companies Act 2006, the charitable company has not presented its own statement of financial activities and related notes. The charitable company's net surplus for the year was £150,740 (2021 - net surplus of £244,319).

Page 13

WORCESTER THEATRES CFLARITABLE GOMPANY UhllTED BY GUARANTEE Group 2022 Gro¢p 2021 P•r•nt 2022 Pa￿nt 2021 FIXED ASSETS Tangible fixed as68ts Inv•stsn•nts 43.972 84.824 43.972 84.824 43.9n 84,824 43.974 84.828 CURRENT ASSET8 Stocks Debtors at bank aTrJ in hond 7,20S 25,618 888 197 921.020 7.01 1￿,187 450 8fj2 637,848 10 261,898 309.380 330.822 640.202 913,110 LIABIUTIES Amounts fallir¥J du• wrthin om yo 11 1386.4301 I3￿.230) 1378,5221 1297,2051 NET CURRENT ASSETS TOTAL ASSETS LE&8 CURRENT UABILITIES 422.442 427 823 Th• fund• of th• ch•rtl•bl• ¢omp•ny'. Unrèslndad FuTrJs Restricted FundB 483.787 94,TT5 327,8S3 483.787 94,775 333,234 94,589 17 422 4d2 678 $62 Th038 financial statements havè b8an pr•par8d in accO￿nce tmih th• provtyions applUb￿ to Charrtab￿ ccfflpankn$ 8ubJ'•ct to the small companies regin8. I l/aSA.l. svJn•d by on ils bohall by.. Th• finanual 8taternents ￿rts by Board ol TrL*t•o8 on ...... Jo urfln - DI Page 14

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST AUGUST 2022

Notes to the Group Group Parent Parent
cash flow 2022 2021 2022 2021
statement £ £ £ £
Cash flows from operating activities:
Cash generated from operations 1 437,256 212,376 320,111 207,820
Net cash provided by operating activities 437,256 212,376 320,111 207,820
Cash flows from investing activities:
Purchase of tangible fixed assets - (28,080) - (28,080)
Interest received 279 132 279 132
Net cash used in investing activities 279 (27,948) 279 (27,948)
Change in cash and cash equivalents
in the reporting period 437,535 184,428 320,390 179,872
Cash and cash equivalents at the
beginning of the reporting period 450,662 266,234 330,822 150,950
Cash and cash equivalents at the end
of the reporting period 888,197 450,662 651,212 330,822
NOTES TO THE CASH FLOW STATEMENT
1
RECONCILIATION OF NET INCOME/(EXPENDITURE) TO		 NET CASH FLOW FROM OPERATING ACTIVITIES
Net expenditure for the reporting period Group
2022
£
156,120		 Group
2021
£
238,938		 Parent
2022
£
150,740		 Parent
2021
£
244,319
(as per the statement of financial activities)
Adjustments for:
Depreciation charges 40,852 42,285 40,852 42,285
Interest received (279) (132) (279) (132)
Distribution of profits receivable from the subsidiary
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities		 -
(186)
154,549
86,200
437,256		 -
(374)
(122,728)
54,387
212,376		 (66,675)
-
114,156
81,317
320,111		 -
-
(135,388)
56,736
207,820

Material non-cash transactions

In the parent charity's individual cash flow statement, distribution of profits receivable from the subsidiary of £66,675 (2021 - £nil) was unpaid at the year end and has been accounted for as a material non-cash transaction.

2 ANALYSIS OF CHANGES IN NET DEBT

Group
Cash at bank and in hand
Parent
Cash at bank and in hand		 At the start
of the year
£
450,662
450,662
330,822
330,822		 Cash flows
in the year
£
437,535
437,535
320,390
320,390		 At the end
of the year
£
888,197
888,197
651,212
651,212

Page 15

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022

1 ACCOUNTING POLICIES

General information

The Trust is a charitable company limited by guarantee registered in England and Wales and has no share capital. In the event of the charitable company being wound up, the liability in respect of guarantee is limited to £1 per member of the charitable company.

Basis of preparation

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention unless otherwise stated.

The accounts are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Group financial statements

These consolidated financial statements incorporate the accounts of Worcester Theatres Charitable Trust Limited and its wholly owned subsidiary Arts Enterprises Worcester Limited on a line by line basis. Both Worcester Theatres Charitable Trust Limited and Arts Enterprises Worcester Limited prepare their individual company financial statements adopting accounting policies not considered different from those of these consolidated financial statements and prepared to a year end of 31st August 2022. All intra-group transactions and balances are eliminated on consolidation.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charitable company is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charitable company will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charitable company and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with Charities SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.

Legacies are recognised when probate is granted and there is sufficient information to measure them. Where there is insufficient information to reliably measure any outstanding legacies, these are instead treated as contingent assets (and details of any such legacies will be disclosed in the notes to these financial statements).

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charitable company. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. Fundraising and trading income received during the period, but which relates to services provided during the next period are treated as being deferred income and has been included in creditors as receipts in advance.

Investment income is included in the statement of financial activities on a receivable basis.

Page 16

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

1 ACCOUNTING POLICIES (Continued)

Donated services

The charitable company benefits from the use of both the Swan Theatre and Huntington Hall effectively on a rent free basis. Due to the unique nature of these two buildings, it is considered impractical to estimate a reasonable value of the donated services provided to the charitable company in regard to these arrangements and no income not expenditure in regard to these arrangements have been included in the statement of financial activities.

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Operating leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease.

Pensions

The parent company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions payable for the year are charged in the profit and loss account.

Taxation and deferred taxation

The charitable company is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Assets costing up to £3,000 are written off to revenue.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life as follows:

Impairment reviews are carried out annually.

Investments

In the parent charitable company's individual financial statements, the investment in the subsidiary is measured at cost less any accumulated impairment losses.

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cash at bank

Cash at bank includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 17

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

Financial instruments

The charitable company 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 when the charitable company becomes party to contractual provisions of the instrument.

Financial assets are offset, with the net amounts presented in the accounts where 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 trade and other receivables 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.

Basic Financial Liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts, discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of the operations from suppliers. Accounts 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 payables are recognised initially at transaction cost.

Restricted funds

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

Unrestricted funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes.

Significant judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. These 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.

The most significant judgement that has had the most significant effect on the amounts recognised in the financial statements are the setting of depreciation policies for tangible fixed assets (which are stated in the accounting policies). The net book value and movements in the year of tangible fixed assets are disclosed in note 7 of the financial statements.

Significant judgement has also been applied in asserting that it is considered impractical to estimate a reasonably reliable value of the effectively rent free use of the Swan Theatre and Huntington Hall (see note 13). If a reasonably reliable estimate had been determined, then this amount would be recognised in both income (within donations and legacies) and expenditure (within charitable activities support costs).

There are not considered to be any key estimates or assumptions which give raise to significant risk of causing material adjustments to the carrying value of assets or liabilities.

Page 18

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

2 OPERATING SURPLUS

The operating surplus is stated after charging:
Operating leases
Depreciation
Auditor’s remuneration
Audit of the charity’s accounts
Independent examination of the charity’s accounts
Other assurance services
Other services		 Group
2022
£
33,451
40,852
12,000
-
2,520
4,712
19,232		 Group
2021
£
17,337
42,285
(3,300)
5,280
-
3,536
5,516		 Parent
2022
£
33,451
40,852
12,000
-
2,520
2,582
17,102		 Parent
2021
£
17,337
42,285
(3,300)
2,580
-
3,493
2,773

Auditor’s remuneration is stated inclusive of irrecoverable input VAT.

The 2021 figure for audit of the charity’s accounts relates only to the release of an over accrual in 2020.

3 STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES

Gross salaries
Employer's N.I.
Pension costs
Total average employees		 Group
2022
£
374,729
24,668
8,797
408,194
25		 Group
2021
£
220,967
13,455
5,105
239,527
14		 Parent
2022
£
374,729
24,668
8,797
408,194
25		 Parent
2021
£
220,967
13,455
5,105
239,527
14

No employees had emoluments (excluding employer's N.I. and pension costs) in excess of £60,000, in either the current or previous financial years.

The trustees were not paid nor received any other benefits from employment with the Trust or its subsidiary in the year (2021 - £nil) neither were they reimbursed expenses during the year (2021 - £nil).

Total remuneration (including employer's N.I. and pension costs) paid to key management personnel was £52,100 (2021 - £38,207) during the year.

The charitable company contributes to occupational and individual pension schemes which are defined contribution pension schemes and the amounts charged to the income and expenditure accounts for the year are as stated above.

4 INTEREST RECEIVABLE AND SIMILAR INCOME

Group
2022		 Group
2021		 Parent
2022		 Parent
2021
Bank interest received £
279		 £
132		 £
279		 £
132

5 TAXATION

The parent charitable company is a registered charity and not liable to corporation tax. The subsidiary company did not have a taxable profit.

Page 19

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

6 COMPARATIVES FOR THE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM:
Donations and legacies
Charitable activities
Other trading activities
Investments
TOTAL INCOME AND ENDOWNMENTS
EXPENDITURE ON:
Raising funds
Charitable activities
TOTAL EXPENDITURE
NET INCOME (EXPENDITURE)
TRANSFERS BETWEEN FUNDS
NET MOVEMENT IN FUNDS
TOTAL FUNDS BROUGHT FORWARD
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Fund
£
669,790
123,761
34,478
132
828,161
9,021
566,005
575,026
253,135
(2,351)
250,784
77,069
327,853		 Restricted
Fund
£
44,724
-
-
-
44,724
-
58,921
58,921
(14,197)
2,351
(11,846)
106,435
94,589		 Total
2021
£
714,514
123,761
34,478
132
872,885
9,021
624,926
633,947
238,938
-
238,938
183,504
422,442
7
TANGIBLE FIXED ASSETS
Swan Theatre &
Fixtures,
Huntingdon Hall
Fittings &
Improvements
Equipment
£
£
COST
At 1 September 2021
320,664
396,211
Additions
-
-
Disposals
(36,239)
(309,381)
At 31 August 2022
284,425
86,830
DEPRECIATION:
At 1 September 2021
265,126
366,925
Charge for the year
32,171
8,681
Eliminated on disposal
(36,239)
(309,381)
At 31 August 2022
261,058
66,225
NET BOOK VALUE:
At 31 August 2022
23,367
20,605
At 31 August 2021
55,538
29,286		 Motor
Vehicles
£
24,282
-
-
24,282
24,282
-
-
24,282
-
-		 Group
Total
£
741,157
-
(345,620)
395,537
656,333
40,852
(345,620)
351,565
43,972
84,824		 Parent
Total
£
741,157
-
(345,620)
395,537
656,333
40,852
(345,620)
351,565
43,972
84,824

Page 20

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

8 FIXED ASSET INVESTMENTS

COST
At 1 September 2021
and 31 August 2022
NET BOOK VALUE:
At 31 August 2022
At 31 August 2021		 Unlisted
investments
£
2
2
2

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Arts Enterprises Worcester Limited

Registered company number: 02827118

Registered office: Huntingdon Hall, Crowngate, Worcester, Worcestershire, WR1 3LD Nature of business: running of a bar, sale of merchandise and the licencing of a restaurant.

Worcester Theatres Charitable Trust Limited owns the whole of the issued share capital in a trading company, Arts Enterprises Worcester Limited. This consists of two ordinary shares of £1 each.

The financial results of Arts Enterprises Worcester Limited for the year were as follows:

Turnover
Expenditure
(Loss) / profit for the year
Gift aid distribution to Worcester Theatres Charitable Trust Limited
Retained earnings for the year
Aggregate capital and reserves		 2022
£
163,950
(91,895)
72,055
(66,675)
5,380
2		 2021
£
11,167
(16,547)
(5,380)
-
(5,380)
(5,578)

9 STOCK

Goods held for resale Group
2022
£
7,205
7,205		 Group
2021
£
7,019
7,019		 Parent
2022
£
-
-		 Parent
2021
£
-
-

10 DEBTORS: AMOUNT FALLING DUE WITHIN ONE YEAR

Trade debtors
Amounts due from Arts Enterprises Worcester Ltd
Social security and other taxes
Other debtors
Prepayments and accrued income		 Group
2022
£
10,589
-
-
-
15,029
25,618		 Group
2021
£
3,844
-
29
2,821
173,473
180,167		 Parent
2022
£
10,589
236,675
-
-
14,634
261,898		 Parent
2021
£
3,844
131,584
-
2,821
171,131
309,380

Page 21

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

11 CREDITORS: AMOUNT FALLING DUE WITHIN ONE YEAR

Trade creditors
Payments received on account
Social security and other taxes
Other creditors
Accruals
Payments received on account
Balance at 1 September 2021
Opening creditor released to revenue
Received during the current year relating to future years
Balance at 31 August 2022		 Group
2022
£
78,624
227,381
9,896
1,904
68,625
386,430
Group
2022
£
219,393
(219,393)
227,381
227,381		 Group
2021
£
46,419
219,393
10,720
1,355
22,343
300,230
Group
2021
£
195,414
(195,414)
219,393
219,393		 Parent
2022
£
74,638
227,381
7,974
1,904
66,625
378,522
Parent
2022
£
219,393
(219,393)
227,381
227,381		 Parent
2021
£
45,194
219,393
10,720
1,355
20,543
297,205
Parent
2021
£
195,414
(195,414)
219,393
219,393

Payments received on account represents sale of tickets prior to 31 August 2022 for performances to take place after the balance sheet date amounting to £227,381 (2021 - £216,094) and advertising revenue relating to periods after the balance sheet date of £nil (2021 - £3,299).

12 PENSION COMMITMENTS

The parent company operates a defined contribution pension scheme. The assets of that company are held separately from those of the parent company, in an independently administered fund. Pension costs of £8,321 (2021 - £5,105) representing contributions payable by the company to the fund, were charged to the profit and loss account. At the year end creditors included an unpaid pension creditor of £1,904 (2021 - £1,355).

13 OPERATING LEASE COMMITMENTS

The following payments are committed to be paid within one year:

Expiring:
Less than one year
Between two and five years
More than five years		 Group
2022
£
9,996
7,271
-
17,267		 Group
2021
£
14,172
17,267
-
31,439		 Parent
2022
£
9,996
7,271
-
17,267		 Parent
2021
£
24,172
17,267
-
41,439

Annual rent payable in regard to Huntingdon Hall, under an agreement that runs until 2023, is dependent on the financial results of the charitable company for the previous financial period, up to a maximum of £10,000 per year. Future amounts of rent payable in regard to Huntingdon Hall have been excluded from the above operating lease commitment disclosure, on the basis that the amounts payable cannot be reliably measured.

No rent is payable in regard to the Swan Theatre, although the lease is currently in the process of being renegotiated.

14 RELATED PARTY TRANSACTIONS

Total donations and sponsorship income received in the year from trustees amounted to £1,020 (2021 - £2,210).

John Yelland, who was a trustee of the charitable company until 11 May 2022, was also a trustee of The Bransford Trust (until 22 April 2022). During the year the charitable company received grant income totalling £6,500 (2021 - £15,000) from The Bransford Trust.

Page 22

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

15 INCOMING RESOURCES

Donations and legacies
Grants received - Worcester City Council
Grants received - Friends of The Swan / Huntingdon Hall
Grants received - COVID-19 related
Grants received - other
Donations received from individuals
Patron scheme
Legacies
Charitable activities
Performance income
Performance sponsorship
Hall hiring fees
Youth Theatre
Rent - Elgar School of Music
Holiday activities & food programme
Sundry other activities
Other trading activities
Raffle
100 Clubs
Commission
Sundry
Advertising
Box office booking fees
Sale of food, drinks and merchandise
Investment income
Bank interest
TOTAL INCOMING RESOURCES		 Unrestricted
Funds
2022
£
109,248
2,900
166,600
12,207
4,032
2,138
14
297,139
912,698
5,290
86,265
16,706
3,750
34,171
781
1,059,661
-
4,185
1,876
764
761
83,592
163,950
255,128
279
1,612,207		 Restricted
Funds
2022
£
5,000
-
-
104,825
29,561
-
-
139,386
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
139,386		 Total
Funds
2022
£
114,248
2,900
166,600
117,032
33,593
2,138
14
436,525
912,698
5,290
86,265
16,706
3,750
34,171
781
1,059,661
-
4,185
1,876
764
761
83,592
163,950
255,128
279
1,751,593		 Total
Funds
2021
£
133,300
2,000
389,192
41,228
10,638
2,365
135,791
714,514
81,943
2,080
24,807
4,363
5,000
5,568
-
123,761
164
3,315
54
1,340
4,558
13,880
11,167
34,478
132
872,885

COVID-19-related rent concessions

During the year the charity waived rental income due to them from the Elgar School of Music of £1,250 (2021 - £nil) as a result of COVID-19.

Page 23

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

16 EXPENDITURE

Raising funds
100 Club prizes
Cost of food, drinks and merchandise held for resale
Charitable Activities
Direct Costs
Wages and salaries
Subcontractors
Artist fees and other event expenses - general
Artist fees and other event expenses - pantomime
Technical expenses
Youth Theatre
Holiday activities & food programme
Outreach projects
Performing Rights Society fees
Depreciation
Support Costs
Wages and salaries
Administration subcontractors
Credit card charges re ticket sales
Brochure and ticket printing
Advertising
Telephone
Postage and stationery
Photocopier
Repairs and renewals
Sundry expenses
Insurance
Water
Electricity and gas
Bank charges
Professional fees
Bad debts
Auditors remuneration
Auditors remuneration for non audit work
TOTAL EXPENDITURE		 Unrestricted
Funds
2022
£
2,580
84,117
86,697
155,136
10,846
510,095
107,555
5,800
10,032
15,319
1,647
22,656
4,512
843,598
227,925
36,890
20,157
78,002
9,527
3,427
38,537
11,468
24,491
1,811
8,541
5,620
40,970
2,389
4,373
4,023
12,000
7,232
537,383
1,467,678		 Restricted
Funds
2022
£
-
-
-
-
-
35,556
-
-
205
-
-
-
36,340
72,101
25,133
-
-
-
-
-
-
-
30,561
-
-
-
-
-
-
-
-
-
55,694
127,795		 Total
Funds
2022
£
2,580
84,117
86,697
155,136
10,846
545,651
107,555
5,800
10,237
15,319
1,647
22,656
40,852
915,699
253,058
36,890
20,157
78,002
9,527
3,427
38,537
11,468
55,052
1,811
8,541
5,620
40,970
2,389
4,373
4,023
12,000
7,232
593,077
1,595,473		 Total
Funds
2021
£
-
9,021
9,021
97,326
1,289
96,706
-
2,480
5,384
3,933
-
372
42,285
249,775
142,201
20,405
5,579
6,247
8,946
2,958
20,897
8,595
85,191
2,274
6,549
2,952
34,530
1,432
5,639
15,240
1,980
3,536
375,151
633,947

Page 24

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

17 RESTRICTED FUNDS

Swan Studio & Huntingdon Hall project
Automatic screen and satellite dish
New equipment
Outdoor projector and screen
Lighting
Restoration fund
Accessibility fund
Youth projects
George Nield
Emerging Artists
Worcester Fringe
Outreach and participation fund
Kickstart
Saucy
Focus groups
Dance floor
Shower room
Recycling bins		 As at 1
September
2021
29,225
25,691
6,909
4,872
3,714
-
1,748
3,000
5,000
12,380
2,050
-
-
-
-
-
-
-
94,589		 Income
-
-
-
-
-
29,561
-
2,600
2,000
837
5,000
40,000
21,133
22,255
4,000
6,000
5,000
1,000
139,386		 (27,627)
(4,925)
(1,642)
(1,218)
(929)
(29,561)
(390)
(205)
(7,000)
(13,217)
(4,967)
-
(21,133)
(9,981)
(4,000)
-
-
(1,000)
(127,795)
Expenditure		 Transfers
from / (to)
unrestricted
reserves
-
-
-
-
-
-
-
-
-
-
-
(11,405)
-
-
-
-
-
-
(11,405)		 As at 31
August
2022
1,598
20,766
5,267
3,654
2,785
-
1,358
5,395
-
-
2,083
28,595
-
12,274
-
6,000
5,000
-
94,775

Transfers between funds

Outreach and participation fund related to monies received to be used to fund a scheme whereby performance tickets were given out free to qualifying individuals. An amount equal to the face value of performance tickets issued under this scheme totalling £11,405 has been transferred from this restricted fund to unrestricted reserves.

COMPARATIVE ANALYSIS OF RESTRICTED FUNDS

Swan Studio & Huntingdon Hall project
Automatic screen and satellite dish
New equipment
Outdoor projector and screen
Lighting
Restoration fund
Accessibility fund
Robert Wilson youth projects
George Nield
Kildare Trust
Emerging Artists
Worcester Fringe
COVID-19 response		 As at 1
September
2020
56,755
29,997
8,550
1,200
1,748
3,000
5,000
185
106,435		 Income
6,000
3,000
514
12,380
13,100
9,730
44,724		 (27,530)
(4,924)
(1,641)
(1,218)
(929)
(1,714)
(185)
(11,050)
(9,730)
(58,921)
Expenditure		 Transfers
from / (to)
unrestricted
reserves
618
90
1,643
2,351		 As at 31
August
2021
29,225
25,691
6,909
4,872
3,714
-
1,748
3,000
5,000
-
12,380
2,050
-
94,589

Nature of individual restricted funds

The Swan Studio and Huntingdon Hall project fund relates to fixed assets held originally purchased by funding provided by (among others) The Foundation for Sport and the Arts for the renovation and improvement works to the existing Swan Theatre and Huntingdon Hall. Expenditure for the year relates to depreciation of the fixed assets purchased with these funds.

Page 25

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

17 RESTRICTED FUNDS (Continued)

Nature of individual restricted funds (continued)

The automatic screen and satellite dish fund relates to grant funding received from the Foyle Foundation and the Roger & Douglas Turner Charitable Trust to fund installation equipment at the Swan Theatre to allow live broadcasts to be viewed there. Expenditure for the year relates to depreciation of the fixed assets purchased with these funds.

The new equipment fund relates to fixed assets held originally purchased by funding provided for the purchase of a stair lift, new lights and a new stage. Expenditure for the year relates to depreciation of the fixed assets purchased with these funds.

The outdoor projector and screen fund relates to fixed assets held originally purchased by funding provided by The Kildare Trust for the purchase of an outdoor projector and screen. Expenditure for the year relates to depreciation of the fixed assets purchased with these funds.

The lighting fund relates to fixed assets held originally purchased by funding provided by the Rowlands Trust for the purchase of theatre lighting. Expenditure for the year relates to depreciation of the fixed assets purchased with these funds.

The restoration fund relates to various grants and donations received to fund ongoing renovation work at the venues operated by the charitable company.

Accessibility fund relates to funding received from D'Oyly Carte Charitable Trust in regard to a project to make performances more assessable to audience members with disabilities.

The youth projects fund relates to funding received to fund youth projects.

The George Nield fund relates to income received to organising a performance of Waite and Simone show (which has been delayed due to COVID-19 until after the year end).

Kildare Trust fund relates to grants received from the Kildare Trust to finance PAT testing and uncapitalised equipment upgrades.

Emerging Artists fund relates to Arts Council England funding received to assist in organising performances of new artists.

Worcester Fringe fund relates to funding received to support the charity's Worcester Fringe event.

COVID-19 response fund relates to National Lottery funding received to support the charity's activities during COVID-19 lockdown.

Outreach and participation fund originally related to monies received to be used to fund a scheme whereby performance tickets were given out free to qualifying individuals. When the scheme ended the original donor consented that the remaining funds be used to support the activities of the charity's outreach and participation department.

Kickstart fund relates to monies received as part of the government's Kickstart Scheme to support the employment of 3 individuals.

Saucy fund relates to Arts Council England funding received to support the charity's LGBTQ+ arts programme Saucy, including the inaugural Vesta Tilley Festival.

Focus groups fund relates to local council funding received to hold focus groups held to investigate the impact of COVID19 on teenagers and the LGBTQ+ community.

Dance floor fund relates to funding received to instal a new dance floor at the Studio.

Shower room fund relates to funding received to instal a shower room at the Swan Theatre.

Recycling bins fund relates to funding received to purchase new recycling bins.

Page 26

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

18 ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

FIXED ASSETS
Tangible fixed assets
CURRENT ASSETS
Stocks
Debtors
Cash at bank and in hand
LIABILITIES
Amounts falling due within one year
NET CURRENT ASSETS
COMPARATIVE ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS
FIXED ASSETS
Tangible fixed assets
CURRENT ASSETS
Stocks
Debtors
Cash at bank and in hand
LIABILITIES
Amounts falling due within one year
NET CURRENT ASSETS		 Unrestricted
Funds
2022
£
9,902
7,205
25,618
827,492
(386,430)
483,787
Unrestricted
Funds
2021
£
14,413
7,019
180,167
421,428
(300,230)
322,797		 Restricted
Funds
2022
£
34,070
-
-
60,705
-
94,775
Restricted
Funds
2021
£
70,411
-
-
29,234
-
99,645		 Total
Funds
2022
£
43,972
7,205
25,618
888,197
(386,430)
578,562
Total
Funds
2021
£
84,824
7,019
180,167
450,662
(300,230)
422,442

Page 27

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022 (Continued)

19 ANALYSIS OF CHARITABLE COMPANY'S NET ASSETS BETWEEN FUNDS

Unrestricted
Restricted
Funds
Funds
2022
2022
£
£
FIXED ASSETS
Tangible fixed assets
9,902
34,070
Investments
2
-
CURRENT ASSETS
Debtors
261,898
-
Cash at bank and in hand
590,507
60,705
LIABILITIES
Amounts falling due within one year
(378,522)
-
NET CURRENT ASSETS
483,787
94,775
COMPARATIVE ANALYSIS OF CHARITABLE COMPANY'S NET ASSETS BETWEEN FUNDS
Unrestricted
Restricted
Funds
Funds
2021
2021
£
£
FIXED ASSETS
Tangible fixed assets
14,413
70,411
Investments
2
-
CURRENT ASSETS
Debtors
309,380
-
Cash at bank and in hand
301,588
29,234
LIABILITIES
Amounts falling due within one year
(297,205)
-
NET CURRENT ASSETS
328,178
99,645		 Total
Funds
2022
£
43,972
2
261,898
651,212
(378,522)
578,562
Total
Funds
2021
£
84,824
2
309,380
330,822
(297,205)
427,823

20 FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

Page 28