The trustees present their annual report and financial statements for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The Theatre was acquired in 1994 prior to incorporation in order to follow the main purpose of the charity which is to promote, maintain, improve and advance public education in the arts in general and dramatic arts in particular. It may also support any similar objects and aims of a charitable nature.
The Theatre has continued to provide the Minehead and West Somerset area with access to the
dramatic arts. The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity
Commission for England and Wales.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
This year provided a positive return to a bustling programme of live and recorded theatre performances this year with a varied selection of theatre and cinema events for the local community and visiting audiences.
Once again, our Member Companies operated their regular programme of events and productions, ranging from drama, comedy, live music, live screenings and much more together with visiting external companies bringing national and touring performances for a wide audience range and demographic.
This year we operated a specific Community Engagement programme focussed on reducing the barrier of a costly entrance fee for some particular events. We promoted this to groups and community providers locally, encouraging those for whom the theatre was unfamiliar and less attractive in previous seasons. We were very pleased to engage over 20 new families to the theatre through this initiative. We also saw the continuation of small-scale fundraising through hosted events at the theatre and some monthly screenings of classic vintage films, particularly targeted at the older demographic who are less willing to come to other evening events. These have received a warm response from the local community.
Once again, 2023 saw a year of dedication to the upkeep and operation of our theatre building, solely by volunteers. This continues to be an amazing achievement and one which Trustees – and of course volunteers – never take for granted. The Regal Theatre continues to be supported by almost 200 active volunteers, with more being recruited all the time. In addition, the theatre is fortunate to have a dedicated Friends of the Regal Theatre scheme, which remained in operation through 2023. Over 400 individuals and families renewed their contact with us, additionally, many choose to enhance their subscription with generous donations, reinforcing the Regal Friends programme as an important component of the Theatre’s community attraction. Income from the Friends scheme helps ensure the Regal remains a thriving creative space, delivering stimulating events and showcasing emerging new talent.
A significant Governance Review project, begun in October 2021, operated a pilot phase in 2023. Following in-depth consideration of past operational models for the theatre and its associated business activities, it is the proposed intention to secure due care, time and focus solely in relation to Trustees’ legal and compliance responsibilities, separate from the day-to-day operational oversight and challenges that face a modern theatre, operating within an Arts complex- format, with on-going regular in-house productions to manage too. Reporting structures and delegation of some theatre management duties remain an on-going focus into 2024, in order to ensure that the operational structure of management for MATA Regal Theatre Ltd feels confident and capable to deliver the Charity’s core objectives transparently, with due regard for compliance and accountability.
The Governance Review also continues to recommend more attention is given to defining what is expected of a Member Society (Company) – the founding societies that created the MATA Regal Theatre Company Ltd in 1996, but for which no definition had previously been established. This remains on-going into 2024. The training needs of the organisation and its volunteers also remains a major topic for development in 2024 to enhance access and standardised processes across our volunteer teams.
The finance team continue to use and introduce new procedures to keep our finances in line. Including this year a move to new online accounting software QuickBooks, which we hope to utilise fully in the future – starting with the production of cashflow and budgets.
As the 2023 year-end accounts and Treasurer’s Report show, 2023 has been another year of struggles. A lot of necessary expenditures negating most of the income. However we have still managed to avoid calling on the £40k reserves, and have in fact the trustees have agreed (in 2024) to increase the reserves to £60k.
Income for the year on unrestricted funds amounted to £155,943 which, after production costs of £160,915, leaves a net expenditure of unrestricted funds of £4,972 for the year, compared with £6,026 expenditure for the previous year. The net surplus for the year, including the transfer between funds of £18,754, is £13,782 and the general fund stands at £528,264 represented by £364,196 fixed assets and £164,068 net current asset.
Restricted fund income amounted to £24,409 during the year out of which £2,503 was expended. The Restricted funds at 31 December 2023 were £33,522, details of which are given in note 17 to the account.
The trustees of The MATA Regal Theatre Company Limited consider that a certain level of reserves are required in order to run the company in an orderly and careful manner.
Reserves are held by The MATA Regal Theatre Company Limited in two funds: Restricted Funds and Unrestricted Funds.
Restricted Funds represent money that has been granted for specific projects.
Unrestricted Funds can be used for any purpose within the objects of The MATA Regal Theatre Company Limited and represent reserves which the trustees may call upon for future use, ie:
1. The provision and replacement of equipment to enable the Company to undertake its activities in a professional manner has been made.
2. To enable the company to absorb unforeseen expenses in relation to the preservation and upkeep of the fabric of the building.
3. To fund development work in furtherance of the Company's objectives.
The trustees of The MATA Regal Theatre Company Limited consider that a certain level of Unrestricted Funds so far as represented by cash at bank should be held as a reserve to enable the Company to absorb setbacks and to take advantage of change and opportunities.
The amount of Reserves set aside by the Directors within this policy for the year 2023 is set at £40,000 (2022: £40,000).
The charity is a company limited by guarantee governed by its Memorandum and Articles of Association dated 23 January 1996 and amended to allow for the current governance arrangement on 14 November 2004. It is registered as a charity with the Charity Commission. Anyone over the age of 18 can become a member of the Company, each of whom agrees to contribute £3.00 in the event of winding up.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
No person other than a Member of the Company may be appointed a Trustee. One third of the Trustees retire by rotation each year and eligible for re-election. A Member of the Company or the Board of Trustees may propose a person to be elected at any General Meeting to the office of Trustees and the Trustees may appoint any person to be a Trustee to hold office until the next Annual General Meeting. Members of the Company are elected as such by the Board of Trustees.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The MATA Regal Theatre Company Ltd (the charity) for the year ended 31 December 2023.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
The MATA Regal Theatre Company Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is The Regal Theatre, The Avenue, Minehead, Somerset, TA24 5AZ.
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Grants receivable
Ticket sales
Theatre hire
Refreshments and bar sales
Repairs and renewals - electrical and property
Refreshment and bar costs
Printing, postage and stationary
Rent
Rates and water
Heat and light
Insurance
Production costs
Equipment repairs and waste disposal
Publicity and direct printing costs
Sundry expenses
Professional fees and subscriptions
Telephone
Performing rights and licenses
No trustees, nor any persons connected with them, have received any remuneration in respect of their services as trustees from the charity during the year.
During the year the charity made the following transactions with trustees;
Mr J Scott was paid £567.25 (2022: £440) for cleaning/clearing services
Ms M Hartwell - £1,325.38 (2022: £0) of reimbursed expenses.
Mr P Thompson - £360.80 (2022: £0) of reimbursed expenses.
Mr B Penrose - £813.45 (2022: £0) of reimbursed expenses.
Miss A Toeman - £13.00 (2022: £0) of reimbursed expenses.
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.