DROITWICH THEATRE AND ARTS CLUB LIMITED (A Company Limited by Guarantee)
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
BOYDS ACCOUNTANTS LTD
Registered Charity no: 701631 Company no: 712542
Page 1
DROITWICH THEATRE AND ARTS CLUB LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Registered Office
:
Droitwich Theatre and Arts Club Ltd
Friar Street Droitwich WR9 8ED
Bankers
Accountants
Council of Management All of whom are Directors
HSBC Bank PLC 11 Victoria Square Droitwich WR9 8DH
:
Boyds Britannia Court 5 Moor Street Worcester WR1 3DB
:
: Mrs P A Lane (Chairman) Mrs C T Hartle B A Hooper G Sinclair B P Thompson J A Birchley Miss G F Duggan Mrs S K Luff Dr P Steele Miss E Waters J H Hill
Page 2
DROITWICH THEATRE AND ARTS CLUB LIMITED REPORT OF THE COUNCIL OF MANAGEMENT For the year ended 31 March 2024
The members of the Council of Management, who form the Board of Directors for the purposes of Company law and trustees for the purposes of Charity law, present their report and the financial statements for the year ended 31st March 2024.
CONSTITUTION AND ORGANISATION
The company, which is limited by guarantee, is governed by its Memorandum and Articles of Association, and is a registered charity. The charity registration number is 701631. The charity’s operations are controlled by a “Council of Management” which reports to the members at the Annual General Meeting and holds a monthly meeting in order to run the affairs and to review the implementation of policies. Various sub-committees are established to deal with detailed operational aspects of the day to day running of the theatre.
OBJECTS
The charity was formed in order to advance the education and improvement of public taste through the medium of arts, in particular the arts of drama, dancing, singing and music.
REVIEW OF ACTIVITIES AND FURTHER DEVELOPMENTS
The principal means by which the company carries out its charitable objectives continues to be the running of a theatre and arts club. This is carried out by the staging of shows at the Norbury Little Theatre in Droitwich. Income is generated from the sale of tickets and refreshments at the productions along with subscriptions from members and the occasional donation.
The theatre is rented from Friar Street Arts Limited.
The Statement of Financial Activities for the year is set out on page 4.
COUNCIL OF MANAGEMENT
Members of the Council of Management who served during the year and up to the date of this report were as follows:
Mrs P A Lane Mrs M A Brown (resigned 31 August 2023) J A Birchley B Hooper B P Thompson Miss G F Duggan Mrs S K Luff G Sinclair Mrs C T Hartle Dr P Steele Miss E Waters J H Hill (appointed 14 July 2023)
The Directors retiring by rotation in accordance with the Articles of Association are Mrs C T Hartle, Dr P Steele and Mr B P Thompson, and who offer themselves for re-election at the forthcoming Annual General Meeting.
RESPONSIBILITIES OF THE COUNCIL OF MANAGEMENT
Company Law requires the Council of Management to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company as at the balance sheet date and of its incoming resources and application of those resources, including income and expenditure for that period. In preparing those financial statements the directors are required to:
select suitable accounting policies and then apply them consistently
make judgements and estimates that are reasonable and prudent
prepare the financial statements on the going concern basis unless it is inappropriate to presume the company will continue in business.
Page 2a
DROITWICH THEATRE AND ARTS CLUB LIMITED REPORT OF THE COUNCIL OF MANAGEMENT For the year ended 31 March 2024
The Council of Management is also responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the company and to enable it to ensure that the financial statements comply with the Companies Act 2006.
It is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
REPORTING ACCOUNTANTS
A resolution proposing the re-appointment of Boyds as reporting accountants will be put to the Annual General Meeting.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and was approved by the Board and signed on its behalf.
................................................. Mrs A Lane Chairman 12[th] July 2024
Page 3
ACCOUNTANTS’ REPORT TO THE COUNCIL OF MANAGEMENT ON THE UNAUDITED FINANCIAL STATEMENTS OF DROITWICH THEATRE AND ARTS CLUB LIMITED
In order to assist you to fulfill your duties under the Companies Act 2006, we have compiled the financial statements of the company which comprise the Statement of Financial Activities, the Balance Sheet and the related notes from the accounting records and information and explanations you have given to us.
This report is made to the Council of Management, as a body, in accordance with the terms of our engagement. Our work has been undertaken so that we might compile the financial statements that we have been engaged to compile, report to the Council of Management that we have done so, and state those matters that we have agreed to state to them in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Council of Management, as a body, for our work, or for this report .
We have carried out this engagement in accordance with technical guidance issued by the Institute of Chartered Accountants in England and Wales and have complied with the ethical guidance laid down by the Institute relating to members undertaking the compilation of financial statements.
As described on page 2 you have acknowledged your duty to ensure that the company has kept proper accounting records and to prepare financial statements that give a true and fair view under the Companies Act 2006. You consider that the company is exempt from the statutory requirement for an audit for the year.
We have not been instructed to carry out an audit of the financial statements. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the financial statements.
Boyds 20 Sansome Walk Worcester 12[th] July 2024
Page 4
DROITWICH THEATRE AND ARTS CLUB LIMITED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 March 2024
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Note 2024 2023
£ £
INCOMING RESOURCES
Activities in furtherance of the charity’s objects: -
Production Proceeds 77,940 71,569
Bar Sales 14,346 8,915
Subscriptions 3,970 3,430
Outside Company Production Proceeds 78,983 40,689
Room and Equipment Hire 5,167 3,610
Sale of Sweets, Ices and Coffee 12,939 7,755
Income from Raffles and Donations 2,018 672
Interest receivable 991 126
Theatre Tax Relief 9,912 10,977
TOTAL INCOMING RESOURCES 206,266 147,743
RESOURCES EXPENDED
Direct Charitable Expenditure 2 202,924 138,321
Management and Administration of the Charity 3 6,781 4,718
TOTAL RESOURCES EXPENDED 209,705 143,039
NET (OUTGOING)/INCOMING RESOURCES 4 (3,439) 4,704
Allocation
General fund (3,439) 4,704
Restricted fund - -
(3,439) 4,704
Funds brought forward at 1 April 2023 113,429 108,725
Funds carried forward as at 31 March 2024 109,990 113,429
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The notes on pages 6 to 9 form part of these financial statements.
Page 5
DROITWICH THEATRE & ARTS CLUB LIMITED BALANCE SHEET
As at 31 March 2024
| Note FIXED ASSETS Tangible Assets 5 CURRENT ASSETS Stocks 6 1,381 Debtors 7 10,059 Cash at Bank and In Hand 90,906 102,346 CURRENT LIABILITIES Creditors - Amounts falling due within one year 8 11,435 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CAPITAL AND RESERVES General fund 11 Restricted fund 12 £ |
2024 £ 19,079 90,911 109,990 97,362 12,628 109,100 |
1,614 19,564 63,130 84,308 7,474 £ |
2023 £ 36,595 76,834 113,429 100,801 12,628 113,429 |
|---|---|---|---|
For the year ended 31 March 2024 the company was entitled to exemption under section 477(2) of the Companies Act 2006 relating to small companies.
No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibility for:
-
Ensuring the company keeps accounting records which comply with section 386; and
-
Preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year, and of its profit and loss for the financial year, in accordance with section 393, and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company.
The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 applicable to small companies and were approved by the Board and signed on its behalf.
................................................. Mrs A Lane
12[th] July 2024
The notes on pages 6 to 9 form part of these financial statements.
Page 6
DROITWICH THEATRE AND ARTS CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
1. ACCOUNTING POLICIES
-
(a) Basis of Preparation of Financial Statements
-
The financial statements have been prepared under the historical cost convention in accordance with the Statement of Recommended Practice (SORP) ”Accounting and Reporting by Charities” published in 2005 and in accordance with the Financial Reporting Standards for Smaller Entities (effective April 2008)
(b) Company Status
-
The charity is a company limited by guarantee. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
-
(c) Incoming resources
-
All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income, and represents the proceeds of tickets and sales at various productions, members’ subscriptions and the proceeds of raffles and donations.
-
(d) Fund accounting
-
General funds are unrestricted funds which are available for the use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity 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 are set out in the notes to the financial statements.
Investment income and gains are allocated to the appropriate fund.
(e) Tangible fixed assets and depreciation
- Purchases of theatre equipment and improvements of a significant nature are capitalised and are stated at cost less depreciation. Depreciation of fixed assets is provided at rates estimated to write off the cost, less estimated residual value of each asset over its expected useful life as follows:
Audio Lighting and Switchboard Equipment 20% reducing balance Fixtures, Fittings and Other Equipment 25% straight line
- (f) Stocks
Stocks are stated at the lower of cost and net realisable value.
(g) Headings
-
The headings in the Statement of Financial Activities and in the Balance Sheet do not precisely follow those set out in the Companies Act l985. The Council of Management consider that the nature of the business is such that the headings adopted are both more informative and more accurately reflect the specific nature of the company's activities.
-
(h) Taxation
-
As a charity, the company will usually be exempt from Corporation Tax and is able to reclaim tax deducted from its investment income. There may be a restriction on the amount of taxation that can be claimed where the company has any non-charitable expenditure. Provision is made for the amount of tax refund due.
Page 7
DROITWICH THEATRE AND ARTS CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
1. ACCOUNTING POLICIES (Continued)
(i) Leasing and hire purchase contracts
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the leaser are charged to profit and loss account as incurred.
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2024 2023
£ £
2. DIRECT CHARITABLE EXPENDITURE
Cost of Bar Sales 6,828 4,180
Production Costs 48,409 44,387
Outside Company Production Costs 54,527 26,567
Cost of Sweets, Ices and Coffee 7,603 4,818
Room hire for rehearsals 918 587
Rent, Rates and Insurance 12,880 8,259
Heat, Light and Water 16,803 10,826
Printing, Stationery and Advertising 8,932 6,887
Telephone and Postage 1,495 1,269
Stage Equipment and Theatre Furnishing and Fittings 2,769 1,268
Cleaning Expenses 5,897 4,301
Repairs and Renewals 17,305 6,674
Depreciation 18,558 18,298
202,924 138,321
3. MANAGEMENT AND ADMINISTRATION 2024 2023
OF THE CHARITY £ £
Bank Charges 226 203
Accountants’ Fee 1,200 1,200
Professional Fees 1,440 1,560
Incidental Expenses 3,915 1,755
6,781 4,718
4. NET INCOMING RESOURCES FOR THE YEAR 2024 2023
£ £
This is stated after charging the following:
Operating Lease Rentals – Property 9,096 7,764
Depreciation 18,558 18,298
Accountants' Remuneration 1,200 1,200
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The Directors receive no remuneration. No staff employed by the company.
Page 8
DROITWICH THEATRE AND ARTS CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
5. TANGIBLE FIXED ASSETS
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Fittings
and Other
Equipment
£
COST
At 1 April 2023 113,337
Additions 1,042
At 31 March 2024 114,379
DEPRECIATION
At 1 April 2023 76,742
Charge for the Year 18,558
At 31 March 2024 95,300
NET BOOK VALUE
At 31 March 2024 19,079
At 31 March 2023 36,595
6. STOCKS 2024 2023
£ £
Bar and Other Stocks 1,381 1,614
1,381 1,614
7. DEBTORS 2024 2023
£ £
Due within one year as follows:
Other Debtors 10,059 8,587
Tax - 10,977
10,059 19,564
8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023
£ £
Trade Creditors and Accruals 11,094 6,966
Deferred income from donations 341 508
11,345 7,474
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9. OPERATING LEASE COMMITMENTS
The company has a commitment under an operating lease relating to rent of the theatre which expires in over twenty years at an annual rental of £9,096 (2023 - £7,764).
10. CAPITAL AND RESERVES
Every member of the Club undertakes to contribute to the assets of the Club in the event of its being wound up while he is a member, or within one year afterwards, for payment of the debts and liabilities of the Club contracted before he ceases to be a member, and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, such amount as may be required not exceeding £1.
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DROITWICH THEATRE AND ARTS CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
11. GENERAL FUND
| 11. GENERAL FUND | ||
|---|---|---|
| Net (loss)/profit for the year General fund at 1 April 2023 General fund at 31 March 2024 12. RESTRICTED FUND Restricted fund brought forward Restricted fund carried forward |
2024 £ (3,439) 100,801 96,472 2024 £ 12,628 12,628 |
2023 £ 4,704 96,097 100,801 2023 £ 12,628 12,628 |
Page 10
DROITWICH THEATRE AND ARTS CLUB LIMITED DETAILED INCOME AND EXPENDITURE ACCOUNT For the year ended 31 March 2024
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2024 2023
Profit/ Profit/
Income Costs (Loss) Income Costs (Loss)
Own Productions 77,940 48,409 29,531 71,569 44,387 27,182
Outside Productions 78,983 54,527 24,456 40,689 26,567 14,122
Bar 14,346 6,828 7,518 8,915 4,180 4,735
Sweets, Ices and Coffee 12,939 7,603 5,336 7,755 4,818 2,937
- -
Subscriptions 3,970 3,970 3,430 3,430
Room Hire and Equipment 5,167 918 4,249 3,610 587 3,023
Donations and Raffles 2,018 - 2,018 672 - 672
Interest 991 - 991 126 - 126
Theatre Tax Relief 9,912 - 9,912 10,977 - 10,977
206,266 118,285 87,981 147,743 80,539 67,204
Theatre Running Costs
Rent, Rates and Insurances 12,880 8,259
Heat, Light and Water 16,803 10,826
Printing, Stationery and
Advertising 8,932 6,887
Telephone and Postage 1,495 1,269
Stage Equipment and Theatre Furnishings
and Fittings 2,769 1,268
Bank Charges 226 203
Professional Fees 1,440 1,560
Accountancy Charges 1,200 1,200
Incidental Expenses 3,915 1,755
Cleaning Expenses 5,897 4,301
Repairs and Renewals 17,305 6,674
Depreciation of Fixed Assets 18,558 18,298
91,420 91,420 62,500 62,500
(LOSS)/PROFIT FOR THE YEAR (3,439) 4,704
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