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2023-08-31-accounts

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

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 2023

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 29

Page 1

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

COMPANY INFORMATION FOR THE YEAR ENDED 31ST AUGUST 2023

DIRECTORS AND TRUSTEES: Dean Elliott (appointed 21st October 2022)
Lord Richard Faulkner of Worcester
Chris Glover (appointed 6th January 2023)
Josephine Hodges
Roger Knight (appointed 6th January 2023)
John Murfin
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

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

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2023

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 2023 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

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 2022) Lord Richard Faulkner of Worcester Chris Glover (appointed 6th January 2023) Josephine Hodges Roger Knight (appointed 6th January 2023) John Murfin

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.

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

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2023 (Continued)

QUALIFYING THIRD PARTY INDEMNITY

The charitable company's articles of association includes provision that, subject to the provisions of Companies Act 2006, the trustees to be indemnified out of the assets of the charitable company against claims made against them in regard to losses due to improper investments, fraud or negligence.

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

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.

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

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2023 (Continued)

STRUCTURE, GOVERNANCE AND MANAGEMENT

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 continues to successfully run the Swan Theatre, a 350-seat proscenium arch traditional theatre space on the edge of the city and Huntingdon Hall, a 330-seat converted Methodist Chapel, right in the heart of the city. We are the only venue-based arts provider in Worcester offering both a professional cultural provision for the city and a performance home to many local community arts groups. 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. Worcester Theatres also produce our own productions, via the Worcester Repertory Company, we are the only venue-based organisation 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 at other venues/locations 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 wide ranging 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 Worcester Theatres and our venues, whilst providing stewarding and staffing for the venues bars.

Swan Theatre

The Swan Theatre’s programme has continued to develop and evolve post pandemic, with a focus on genres such as theatre, talks, tribute artists, family theatre, film and dance. Audiences have supported equally across the genres and engaged with our programme, despite the cost-of-living crisis, as we undertake audience development for the venue. The programming at the Swan Theatre also offers opportunities for a wider and more diverse sector of our community to engage with the arts and Worcester Theatres has seen excellent engagement, through project work at the venue, with minority groups and artists in the city and the wider county. Worcester Theatres also continues to provide a space for emerging-artists and supports talent development to ensure the retention of both artistic and trained talent for the city.

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

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2023 (Continued)

ACHIEVEMENTS AND PERFORMANCE (Continued)

Swan Theatre

The Swan Theatre’s programme has continued to develop and evolve post pandemic, with a focus on genres such as theatre, talks, tribute artists, family theatre, film and dance. Audiences have supported equally across the genres and engaged with our programme, despite the cost-of-living crisis, as we undertake audience development for the venue. The programming at the Swan Theatre also offers opportunities for a wider and more diverse sector of our community to engage with the arts and Worcester Theatres has seen excellent engagement, through project work at the venue, with minority groups and artists in the city and the wider county. Worcester Theatres also continues to provide a space for emerging-artists and supports talent development to ensure the retention of both artistic and trained talent for the city.

The Swan Theatre remains a popular venue for our community user groups and we continue to have regular annual and biannual amateur hire groups who value using the Swan Theatre to enable them to fulfil their hobbies, engaging with the arts within a professional theatre environment. We continue to offer the main stage and associated smaller rooms at the venue for hire to community groups and small business owners, all of which contributes to our income across the year.

Worcester Repertory Company

Worcester Theatres are unique in the Worcestershire cultural landscape, as we are the only producing theatre venue. We are proud to make homegrown theatre via the Worcester Repertory Company (Worcester Rep), performing at our own venues, and venues across the city and beyond through our touring productions. We aim to cast as many professional West Midlands actors within our productions as possible and continue to retain local talent by working with local creatives and producing various artist development programmes. We continue to grow our creative partnerships to help nurture the performing arts during a time when funding streams are being withdrawn.

We are fortunate to have Imelda Staunton as the Patron of the Worcester Rep and Rufus Norris as Patron of the Swan Youth Theatre, both of whom have meaningful connections to the Rep & Swan Theatre. As we cherish the history of the building and of the Worcester Rep, we continue to rebuild its position within the city. The Worcester Repertory Company falls under Worcester Theatres management and shares the same staffing team. We also invite experienced and respected guest directors throughout the season, whilst still providing opportunity for local emerging directing talent.

This year/season the Worcester Rep produced, Antigone, Cinderella, Ice Queen, Samphire, Bouncers and The Importance of Being Earnest and welcomed total audiences of 22,182 across the Swan Theatre, Huntingdon Hall and the Worcester Commandery just for our repertory work.

Outreach & Participation at the Swan Theatre

The Swan Theatre youth theatre has continued to thrive in the past 12 months, and we now see members reaching over 120, each of whom are learning new drama and performance skills, devising their own theatre, working on a range of dramatic scripts, and embedding lifelong skills such as public speaking, performance confidence, communication, building self-assurance and developing meaningful friendships outside of the classroom.

During the past year, and as a direct result of the cost-of-living crisis we have seen a 54% increase in the demand for bursaries for our youth theatre. This increase, although a liability on our own funds, is fundamental to our ethos to ensure that there are no financial barriers to restrict engagement for families and young people. Worcester Theatres offer unlimited bursary places for a range of financial aid reasons, these are funded directly from Worcester Theatres funds, or via funding that we raise.

Young Rep Company

The Young Rep has become a valued part of our work and we have continued to provide opportunities for 16–24-year-olds to work in a professional theatre environment. This year the Young Rep have staged Samphire (as part of the NT Connections Festival), The Unknown (a piece of commissioned new writing from an emerging young playwright) as part of the Worcester Fringe festival, and Romeo and Juliet as part of our collaborative community production. We offer unlimited bursary places for the Young Rep and have seen a 50% increase in the take up for financial support this year, reflecting the challenging financial times that local families are facing. The Young Rep provides a nurturing and welcoming environment, and awards places based on talent (via auditions) supporting young people to reach their full potential. We see a high proportion of our intake either studying performance at a higher education level, pursuing places at drama schools, or working in the industry during or post their time with us, and some members have become paid professional actors in our Worcester Repertory Company.

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

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2023 (Continued)

ACHIEVEMENTS AND PERFORMANCE (Continued)

Worcester Fringe

The Worcester Fringe grew significantly for us this period seeing increased engagement and providing an opportunity for artistic expression, playful programming, and a testbed for artists to showcase their talents and work in progress. Hosting emerging artists, theatre makers, comedians, and musicians from across Worcestershire.

Saucy

Our LGBTQ+ queer performance project for marginalised groups in the city and across the wider county, offers commissions and performance opportunities for local queer artists and a safe space for performers and audiences wishing to engage with queer theatre. We continue to source annual funds through grants from trusts & foundations, the Arts Council etc. to ensure we can continue to create opportunities for this community and support the ongoing development of this area of our work.

Youth Advisor Board & Future Arts Leaders Programme

This year we have brought together young people from the local community and given them the opportunity to make their mark on the artistic programme of WT & the wider landscape of Worcestershire. By working with our participants, we hope to give a voice to the young people within our organisation, become more responsive to their needs and reflective of their desires within our programming.

Huntingdon Hall

Huntingdon Hall remains a vital venue for the city. It is a venue which is well loved by all of the artists who perform here and for our patrons, many of whom are regular attendees to the venue. The Hall primarily supports our comedy, live original music, spoken word and tribute artists genres, although we do also see occasional theatre performances within the space. Much like the Swan Theatre, we have seen a solid response to programming over the year, with patrons enjoying the opportunities to engage with the arts at our venue. We have, however not been frivolous in our approach to programming, ensuring our organisation remains sustainable, often programming safely meaning we can ensure, solid support across the genres and in return the charities resources are well managed. In the last 12 months we have seen an increase in the professional hirers/artists wishing to use the venue. We are pleased to offer Huntingdon Hall on a hire basis as this provides a guaranteed income for Worcester Theatres.

The venue continues to be hired by Worcester Concert Club for Sunday matinee classical concerts and to the Heart of Worcestershire College to enable music students to experience performing in a professional venue.

Summary

The Charity, like all other businesses, has been challenged by the instability of the cost-of-living crisis during this period which has directly impacted our operation. Inflated utility bills, rising insurance costs and enlarged operational overheads have added to the pressures of running a small arts organisation. However, despite these additional challenges that we are aware that our patrons will have also been facing, Worcester Theatres has seen no decline in patron engagement, in fact we have seen a significant growth as customers reached for the arts for distraction and relief. This committed support has enabled us to continue with our ambitions to develop our commercial and artistic programming strands, rejuvenating our offer for our audiences.

Our refreshed programme of events at the Swan Theatre and Huntingdon Hall, is reaching a demographically younger and more diverse audience than ever before, supporting our continued efforts to deliver a varied and expanding programme for the city and wider county.

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.

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

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2023 (Continued)

FINANCIAL REVIEW

Incoming resources was £1,748,356 compared to £1,751,593 last year. The unrestricted fund net surplus for the year was £73,950 (2022 - unrestricted fund net surplus of £144,529).

At the year end the charity held free reserves (defined as the unrestricted reserves less unrestricted reserves held within fixed assets (see note 18)) of £562,528 (2022 - £473,885).

At the year end the charity held restricted funds of £150,992 (2022 - £94,775). Many of these relate to funds held to finance significant building improvement and renovation work.

RESERVES POLICY

The charity's 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 £719,503 (2022 - £578,562), including total restricted funds of £150,992 (2022 - £94,775). At the year end tangible fixed assets held had net book value of £30,942 (2022 - £43,972), including assets with book value of £24,959 (2020 - £34,070) that relate to restricted funds.

Unrestricted General Fund excluding fixed assets amounted to a surplus of £562,528 (2022 - £473,885), which is in excess of the level required by the reserves policy. This is partly due to the charity deferring some decisions regarding expenditure during the period when it was uncertain if the Scala Theatre project would go ahead in accordance with the original proposal, as this also impacted on whether the charity would remain using the Swan Theatre as a performance venue. It has now been confirmed that Worcester Theatres will remain at the Swan Theatre and will not be relocated to the Scala Theatre.

The trustees have a number of projects that are in the early planning stages but are yet to confirm how best to allocate their current surplus of funding, these include a number of ongoing capital investments and building improvements. These may include adding to the campaign to refurbish the sanitary facilities at both venues improving the facilities that we are providing for our audiences and/or investing into improved accessible facilities at the Swan Theatre, so that everyone can access the arts in a meaningful way.

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.

PLANS FOR THE FUTURE

The Charity continues to strengthen its position following both the pandemic and cost of living crisis and whilst patrons remain supportive of the current programme and organisational developments Worcester Theatres are cautious of the current economic climate in which the country and arts are currently positioned. As the management and board remain ambitious to continue to broaden and diversify our programme the charity continue to do this in a sensible manner, ensuring a equilibrium between the programming is found to ensure viability and artistic balance. Worcester Theatres continue to programme productions, shows and community hires for both the Swan Theatre and Huntingdon Hall for the 2024/2025 & 2006 seasons with a strategic and considered approach to audience development and artistic development.

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WORCE CHAR TERED ARANTEE DED3 PLA14S FOR THE FUTURE IConbnLdl The tharrty will continue to expand our lor ytyJrvJ ￿p￿. minonty group5 and emergiThJ artst located within the city of WorLWter. ensuring our already sueLwlul prtsJrarnm•s such as Saucy ancl P&fforn WR1 continue to reTr￿e fvnding to ensure their SUC￿S. The development of opporttjnilwa for adults yourrfJ reop￿ to erqage Mth the arts through outreach and parhthpatson suc as ￿￿rks1￿S and ct)urses and tefmtimeJholKl8y activitw VAII COntyn￿ as well as mor• developed project developments to expand our areas of uèati¥è anga￿M￿nI arxj offer rn0￿ ways for the (yJmmunrty of Worcester to engage with culture. We rem8in arnbithtyJ$ to ¢kvelop our e￿ag￿ent wth ¥d￿￿s. eonts.nue to offer cost, free aKI burs8ry fvrKled oppprtunrties wthin our youth thatre and Young Rep aThJ ￿ntyn￿e to provKS¢ free ￿¢0$$ to the arts through Culture Café and the Worcester Fring8. STATEMENT OF TRUSTEES. RESPONSIBIUTIES The trust￿ (who are also the diredor¥ ol Worc•ster Theatres chant￿b￿ Tnmt Ltd for Ihe purposes of company lawl arn responsible for preparing th8 Report of the Trustees and Ihe financial stsknm6nts in ac4x1d￿ vrtth aFfJlKabkn IN •nd Unlt•d Kingdom AcLounbng Stsndarda IUnrt•d Generally Acwted Acojunting Pracb"cel. Company law requires the trus1￿$ to kyepwe [￿nri91 slot1ft￿ lor finanaal year tA)i¢h 8 true and fair vitr￿ of thè state of affairs ol the charitable cornpany and of the Incoming resour￿ and 4)pl￿tson of resources, Induding in¢¢xne and •xpenttrture, cf the charrtabK8 c¥)mpany lor that F￿￿d. In prepanng those financ4•1 Ststemtfits, th8 tr¢Jstee6 arn required to". select suitowe aeck)unling poliryes aFply them consi8tenVy' ct16erye the methods and principtes in th¢ SORP IFRS 1021, make iudgenEnt8 and aectyjnting esb'males Ihat are rwortb￿ 8r#l prudent." pr•pare the financial $t8t•menl8 on the goiry ￿nCern basis unkfjss ffiappropriot• ts pM8ume that Ihtr tharitably cornp8ny w•ill continw in lymirw. The tru$t••$ arn re8ponwl)le lor k•tW9 prop•r accounlry records diad¢)se wth reasonable pwiracy at any tinR the finanoal position of the charrtat)k cornpany Io gAobKe thwn to ensure th I￿ fin8noal st8tements comply with the Companl•s 2006. They ar• also fesponsibk safeguariliry th• #￿tI of th8 charitsbkn company and hence for taking reaBoThabkn ateF4 for tha preventiw aTrJ d•tsa•)n offraud and oilw irre9￿OnIl. 8TATEMEP4T AS TO DISCLOSURE OF INFORMAnON TO AUDITOR3 In 80 tsr ￿ th¢ Iru$t•e8 are aware at ￿ tknts ￿rt￿st88$. annual f ther• is no reknvant infomal¢on. teing inlonngtion rwd•d by Ihts 8￿j￿or In connKD¢)n wlh wepariry thgir raport, ol which tho group's audltor Is unawarè, and th• trustees, h8viry rn¥de eTh4uin•s ol f•ll(M diTectss s￿1 thè gfw's •Artor thal Ihoy ought to have IndiV￿￿allY tak•n. have each taken all steps that hpJshe oblyd to take a5 8 diredor in ord8r to make thems¢W aware of any TeL•vant audrt Inforrnation and to 8stablish thal the audrtor ts awarè olthat inf0m￿tK)n. This report has teen prepar•d in accordarKe tmth the sMow.￿On$ of Part 15 of fv Companies Act 2W6 r•l•ting to small prov&J by order ofthè Board olTrustees ￿....... . .. and on ts tehaff by. John rfin- DI￿¢t Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WORCESTER THEATRES CHARITABLE TRUST LIMITED FOR THE YEAR ENDED 31ST AUGUST 2023

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 2023 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 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:

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WORCESTER THEATRES CHARITABLE TRUST LIMITED FOR THE YEAR ENDED 31ST AUGUST 2023

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.

Page 11

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WORCESTER THEATRES CHARITABLE TRUST LIMITED FOR THE YEAR ENDED 31ST AUGUST 2023 8ecau¥e tsf Inherwt lirnitatson¥ of an aud¢ there is a risk Ihat ￿ ¥MII not d8tecl all Yreguk8ntes. induding those kading to material misststement in the financial slatements or non-compl￿￿￿ %Mth regulab"on. This risk inc¥ease$ th? more that ccmnpliance ￿th a law or regula￿'On is remov&J frL¥n the events aNJ iransactiorts refleded in the finanoal statement8, as will be less likdy io becerne aware of instanrx of ncMKcrylIan￿. The risk is also 9￿ater wrding irregularities o¢cJJThirvJ due to tra￿ rather than error. as fraud Inv(rtves intwbonal C￿CealMe￿t. foryery. collusion. wission or mis￿presentstI0n. A further de8eriptK)n of our rewsibilibes ts ths 8￿rt ol the financaal stalwnents r8 locate&J on the Finart4al Reporting CouncAfs bsile at I￿1.trC.org.u￿1aUd￿0r￿9ud[t-a5S￿ranC￿ethK%13udit￿5-re￿1lbllrf￿￿fOr-the-audll This d¢seriptH)n fomis part of our Report ol the IndeF¢ndent Audilorn. U•0 of our f•POrt This report Is made wlety to the eknaritabkn companls nvnbgrs. as a in accordarKe ￿ Chapter 3 of Part 16 of thg Companie8 Act 20C6. ()Jr audrt work has be•Th ul￿rtaken so that ￿ mvjht state to tr* charitable CDmpanVs members those matters 8￿ rwuired to state lo them in an awlitw. rewrt aTha other purkmxe. To the fullest extsnt P8miittod by law, w do nol 8￿pt or assurne reynsibilty to anyone other than the Charita￿ conyny tharita￿e o)mpanlB mernter8 98 body, for our au&¢ work, for this report. or lor the Opin￿n$ we have formed. PAeli8sa Jean G¢d￿n ACA ACCA (Senior Ststulw A￿jitor) For and on behalf of Richards Sarnly ALKIit SeNic4s timittyj (Statutw A￿ditC￿l Chartèwd Certified A¢￿Un￿Nts Thorneloe House 25 Barbour￿ Road WorcÈster WR1 1RU D8t•'. k7ls.Iw.... 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 2023

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
£
120,661
1,148,102
348,303
6,420
1,623,486
98,442
1,451,094
1,549,536
73,950
10,774
84,724
483,787
568,511		 Restricted
Fund
£
124,870
-
-
-
124,870
-
57,879
57,879
66,991
(10,774)
56,217
94,775
150,992		 Total
2023
£
245,531
1,148,102
348,303
6,420
1,748,356
98,442
1,508,973
1,607,415
140,941
-
140,941
578,562
719,503		 Total
2022
£
439,125
1,057,061
255,128
279
1,751,593
86,697
1,508,776
1,595,473
156,120
-
156,120
422,442
578,562

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 £140,941 (2022 - net surplus of £150,740).

Page 13

WORCESTER fHEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY IMITED BY GUARANTEE REGk8TERED NUM ER: 331S Group 2023 G￿￿p 2022 Parent 2023 Parent 2022 FIXED ASSETS Tangible fixed asset8 Invastments 43.972 30,842 43,972 30.942 43,972 43,974 CURRENT ASSET8 stocks Debtors Cash at bank •nd in hand 9A21 30.17a 7.205 25.618 io 407,299 776 322 1,183,621 1.898 651 212 913.110 1,190,549 921.020 LIABILMES knounts falling due vmhln y¢ar 11 1501.9881 I386.4￿) 1495,0621 1378.5221 NET CURRENT ASSET8 TOTAL ASSETS LE88 CURRENT UABILMES 719 Th• lund• of th• cMrltsbl• cofflpany: UnreBlricted Funds Rosln'cled Fund8 688,611 150,992 483.787 94,775 66a.611 160,992 483.787 94,775 17 19 578 78 Thase finanrA81 ststemènts have been prepared in ¢thrda￿ ilh the proisioM pp1K￿ to charitable c¥ynpan•g $utr4¢ct to the srnall cornpank# regime The financaal Stslwnents ￿re apmd by ol Trustees on YA•J.1011 ar￿ ￿re s￿3￿j by on rt8 téhalfby.. Joh DI Page 14

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST AUGUST 2023

Notes to the
cash flow
statement
Cash flows from operating activities:
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities:
Interest received
Net cash used in investing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 Group
2023
£
256,333
256,333
6,420
6,420
262,753
888,197
1,150,950		 Group
2022
£
437,256
437,256
279
279
437,535
450,662
888,197		 Parent
2023
£
118,690
118,690
6,420
6,420
125,110
651,212
776,322		 Parent
2022
£
320,111
320,111
279
279
320,390
330,822
651,212

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
(as per the statement of financial activities)
Adjustments for:
Depreciation charges
Interest received
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		 Group
2023
£
140,941
13,030
(6,420)
-
(2,216)
(4,560)
115,558
256,333		 Group
2022
£
156,120
40,852
(279)
-
(186)
154,549
86,200
437,256		 Parent
2023
£
140,941
13,030
(6,420)
(111,995)
-
(33,406)
116,540
118,690		 Parent
2022
£
150,740
40,852
(279)
(66,675)
-
114,156
81,317
320,111

Material non-cash transactions

In the parent charity's individual cash flow statement, distribution of profits receivable from the subsidiary of £111,995 (2022 - £66,675) 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
£
888,197
888,197
651,212
651,212		 Cash flows
in the year
£
262,753
262,753
125,110
125,110		 At the end
of the year
£
1,150,950
1,150,950
776,322
776,322

Page 15

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2023

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 2023. 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 2023 (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 2023 (Continued)

1 ACCOUNTING POLICIES (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 2023 (Continued)

2 OPERATING SURPLUS

The operating surplus is stated after charging:
Operating leases
Depreciation
Auditor’s remuneration
Audit of the charity’s accounts
Other assurance services
Other services		 Group
2023
£
13,368
13,030
13,200
-
5,784
18,984		 Group
2022
£
33,451
40,852
12,000
2,520
4,712
19,232		 Parent
2023
£
13,368
13,030
13,200
-
3,838
17,038		 Parent
2022
£
33,451
40,852
12,000
2,520
2,582
17,102

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

3 STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES

Gross salaries
Employer's N.I.
Pension costs
Total average employees		 Group
2023
£
402,185
27,674
9,760
439,619
24		 Group
2022
£
374,729
24,668
8,797
408,194
25		 Parent
2023
£
402,185
27,674
9,760
439,619
24		 Parent
2022
£
374,729
24,668
8,797
408,194
25

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, neither were they reimbursed expenses during either the current or comparative years.

Total remuneration (including employer's N.I. and pension costs) paid to key management personnel was £54,443 (2022 - £52,100) 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

Bank interest received Group
2023
£
6,420		 Group
2022
£
279		 Parent
2023
£
6,420		 Parent
2022
£
279

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 2023 (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
£
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
Swan Theatre &
Fixtures,
Huntingdon Hall
Fittings &
Improvements
Equipment
£
£
COST
At 1 September 2022
284,425
86,830
Additions
-
-
Disposals
-
-
At 31 August 2023
284,425
86,830
DEPRECIATION:
At 1 September 2022
261,058
66,225
Charge for the year
4,894
8,136
Eliminated on disposal
-
-
At 31 August 2023
265,952
74,361
NET BOOK VALUE:
At 31 August 2023
18,473
12,469
At 31 August 2022
23,367
20,605		 Motor
Vehicles
£
24,282
-
-
24,282
24,282
-
-
24,282
-
-		 Group
Total
£
395,537
-
-
395,537
351,565
13,030
-
364,595
30,942
43,972		 Parent
Total
£
395,537
-
-
395,537
351,565
13,030
-
364,595
30,942
43,972

Page 20

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2023 (Continued)

8 FIXED ASSET INVESTMENTS

COST
At 1 September 2022
and 31 August 2023
NET BOOK VALUE:
At 31 August 2023
At 31 August 2022		 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		 2023
£
216,936
(104,941)
111,995
(111,995)
-
2		 2022
£
163,950
(91,895)
72,055
(66,675)
5,380
2

9 STOCK

Goods held for resale Group
2023
£
9,421
9,421		 Group
2022
£
7,205
7,205		 Parent
2023
£
-
-		 Parent
2022
£
-
-

10 DEBTORS: AMOUNT FALLING DUE WITHIN ONE YEAR

Trade debtors
Amounts due from Arts Enterprises Worcester Ltd
Other debtors
Prepayments and accrued income		 Group
2023
£
10,886
-
1,582
17,710
30,178		 Group
2022
£
10,589
-
-
15,029
25,618		 Parent
2023
£
10,886
377,869
1,582
16,962
407,299		 Parent
2022
£
10,589
236,675
-
14,634
261,898

Page 21

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2023 (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 2022
Opening creditor released to revenue
Received during the current year relating to future years
Balance at 31 August 2023		 Group
2023
£
66,965
365,092
12,639
2,228
55,064
501,988
Group
2023
£
227,381
(227,381)
365,092
365,092		 Group
2022
£
78,624
227,381
9,896
1,904
68,625
386,430
Group
2022
£
219,393
(219,393)
227,381
227,381		 Parent
2023
£
66,409
365,092
8,269
2,228
53,064
495,062
Parent
2023
£
227,381
(227,381)
365,092
365,092		 Parent
2022
£
74,638
227,381
7,974
1,904
66,625
378,522
Parent
2022
£
219,393
(219,393)
227,381
227,381

Payments received on account represents sale of tickets prior to 31 August 2023 for performances to take place after the balance sheet date amounting to £363,861 (2022 - £227,381) and venue hire revenue relating to periods after the balance sheet date of £1,230 (2022 - £nil).

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 £9,761 (2022 - £8,321) 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 £2,228 (2022 - £1,904).

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
2023
£
6,480
-
-
6,480		 Group
2022
£
8,640
6,480
-
15,120		 Parent
2023
£
6,480
-
-
6,480		 Parent
2022
£
8,640
6,480
-
15,120

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 £263 (2022 - 1,020).

Page 22

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2023 (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
2023
£
115,512
1,000
-
801
1,335
1,013
1,000
120,661
1,009,785
8,250
94,625
15,722
5,250
13,126
1,344
1,148,102
2,580
3,535
5,449
3,125
4,208
112,470
216,936
348,303
6,420
1,623,486		 Restricted
Funds
2023
£
-
-
-
74,315
50,555
-
-
124,870
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
124,870		 Total
Funds
2023
£
115,512
1,000
-
75,116
51,890
1,013
1,000
245,531
1,009,785
8,250
94,625
15,722
5,250
13,126
1,344
1,148,102
2,580
3,535
5,449
3,125
4,208
112,470
216,936
348,303
6,420
1,748,356		 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
2,547
4,185
1,876
764
761
81,045
163,950
255,128
279
1,751,593

COVID-19-related rent concessions

During the year the charity waived rental income due to them from the Elgar School of Music of £nil (2022 - £1,250) 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 2023 (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
2023
£
1,750
96,692
98,442
155,492
11,280
545,310
101,868
5,959
6,199
11,594
-
27,706
3,919
869,327
282,400
20,769
7,389
87,079
11,215
3,403
34,327
8,688
48,561
3,331
10,781
4,398
36,235
2,568
1,528
111
13,200
5,784
581,767
1,549,536		 Restricted
Funds
2023
£
-
-
-
1,727
-
35,850
-
-
6,679
-
4,512
-
9,111
57,879
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
57,879		 Total
Funds
2023
£
1,750
96,692
98,442
157,219
11,280
581,160
101,868
5,959
12,878
11,594
4,512
27,706
13,030
927,206
282,400
20,769
7,389
87,079
11,215
3,403
34,327
8,688
48,561
3,331
10,781
4,398
36,235
2,568
1,528
111
13,200
5,784
581,767
1,607,415		 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

Page 24

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2023 (Continued)

17 RESTRICTED FUNDS

Lighting
New equipment
Outdoor projector and screen
Satellite dish and projector
Swan Studio & Huntingdon Hall project
Accessibility fund
Adult Arts Programme
Booming Voices
Dance floor
Foyer redevelopment
George Nield
Inclusive community fund
Open day
Our shoes project
Outreach and participation fund
Outreach projects
Restoration fund
Saucy
Save our loos
Shower room
Wellbeing project
Worcester Fringe
Youth advisory board
Youth projects		 As at 1
September
2022
2,785
5,267
3,654
20,766
1,598
1,358
-
-
6,000
-
-
-
-
-
28,595
-
-
12,274
-
5,000
-
2,083
-
5,395
94,775		 Income
-
-
-
-
-
2,500
3,000
16,000
-
3,490
4,800
7,000
1,050
3,000
-
4,000
45,958
-
12,597
-
500
10,000
2,500
8,475
124,870		 (929)
(1,641)
(1,218)
(4,923)
(400)
-
-
(8,197)
-
(1,788)
(4,800)
-
-
-
-
(4,000)
-
(12,274)
-
-
(500)
(8,791)
(1,227)
(7,191)
(57,879)
Expenditure		 Transfers
from / (to)
unrestricted
reserves
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(10,774)
-
-
-
-
-
-
-
-
-
(10,774)		 As at 31
August
2023
1,856
3,626
2,436
15,843
1,198
3,858
3,000
7,803
6,000
1,702
-
7,000
1,050
3,000
17,821
-
45,958
-
12,597
5,000
-
3,292
1,273
6,679
150,992

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 £3,753 has been transferred from this restricted fund to unrestricted reserves.

In addition, now that the Outreach and participation fund scheme has ended, the original donor of the funding for the outreach and participation fund has agreed that an element of the underspend totalling £7,021 can be released to unrestricted funds in exchange for services provided by the charity to the donor on which a fee would otherwise be due to the chairty.

Page 25

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2023 (Continued)

COMPARATIVE ANALYSIS OF RESTRICTED FUNDS

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

Nature of individual restricted 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 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 satellite dish and projector 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 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.

Accessibility fund relates to funding received in regard to a project to make performances more assessable to audience members with who may experience anxiety, mental health issues or have additional support needs.

Adult Arts Programme fund relates to funding received in regard to a 2 year project in support of our Adult Arts Programme.

Booming Voices fund relates to funding received in regards to a 10 week programme providing young people with the opportunity and skills to explore poetry.

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

Page 26

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2023 (Continued)

17 RESTRICTED FUNDS (Continued)

Nature of individual restricted funds (continued)

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

Focus groups fund relates to local council funding received to hold focus groups held to investigate the impact of COVID-19 on teenagers and the LGBTQ+ community.

Foyer redevelopment fund relates to funding received to redevelopment of upstair foyer area of the Swan Theatre.

The George Nield fund relates to income received to organising specific performances.

Inclusive community fund relates to funding received relating to an inclusive community project.

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

Open day fund relates to funds received to run an open day.

Our shoes project fund relatings to funding received relating to an emerging artist development project.

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.

Outreach projects fund relates to funding received to fund various community group activities organised by the charity.

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

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

Saucy fund relates to funding received to support the charity's LGBTQ+ arts programme Saucy.

Save our loos fund relates to donations collected from the general public to finance a refurbishment of the venues' toilet facilities.

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

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

Wellbeing fund relates to funding received in regards to arts and wellbeing festival & workshops.

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

Youth advisory board fund relates to funding received relating to a 12 month development project for young people to gain experience and make decisions that will affect the cultural landscape of Worcester Theatres.

Youth projects fund relates to various grants received to fund activities relating to the youth theatre group run by the chairty.

Page 27

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2023 (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
INTER-FUND LOANS
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
2023
£
5,983
9,421
26,478
1,026,201
(501,988)
2,416
568,511
Unrestricted
Funds
2022
£
9,902
7,205
25,618
827,492
(386,430)
483,787		 Restricted
Funds
2023
£
24,959
-
3,700
124,749
-
(2,416)
150,992
Restricted
Funds
2022
£
34,070
-
-
60,705
-
94,775		 Total
Funds
2023
£
30,942
9,421
30,178
1,150,950
(501,988)
-
719,503
Total
Funds
2022
£
43,972
7,205
25,618
888,197
(386,430)
578,562

Page 28

WORCESTER THEATRES CHARITABLE TRUST LIMITED CHARITABLE COMPANY LIMITED BY GUARANTEE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2023 (Continued)

19 ANALYSIS OF CHARITABLE COMPANY'S NET ASSETS BETWEEN FUNDS

Unrestricted
Restricted
Funds
Funds
2023
2023
£
£
FIXED ASSETS
Tangible fixed assets
5,983
24,959
Investments
2
-
CURRENT ASSETS
Debtors
403,599
3,700
Cash at bank and in hand
651,573
124,749
LIABILITIES
Amounts falling due within one year
(495,062)
-
INTER-FUND LOANS
2,416
(2,416)
NET CURRENT ASSETS
568,511
150,992
COMPARATIVE 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		 Total
Funds
2023
£
30,942
2
407,299
776,322
(495,062)
-
719,503
Total
Funds
2022
£
43,972
2
261,898
651,212
(378,522)
578,562

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 29