The trustees present their annual report and financial statements for the year ended 30 June 2024.
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 governing document, 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)” (as amended for accounting periods commencing from 1 January 2016)
The objective and aim of the Company is to advance education in the arts for the benefit of the Public by production of performance art, including drama, music, dance and other performing arts, and by encouraging and providing facilities for the understanding, appreciation and development of performing arts, creative arts and visual arts. And in furtherance of these objects, to provide and manage a theatre and performance venue in Beverley, East Riding of Yorkshire.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Significant activities
ERT is once more operating at pre-pandemic levels. Performances have increased from 136 shows in the year 2022/23 to 155 for the year 2023/24, with audience numbers up by 35% against the previous year.
During the year 2023/24 ERT had more than 140 active volunteers who contributed more than 10,000 hours of their time.
Public benefit
The company continues to fulfil its public benefit obligations.
East Riding Theatre opened its doors in December 2014 and has had great success in presenting high quality, professionally produced drama. The theatre also hosts music and comedy events and provides training and development opportunities for communities in the East Riding of Yorkshire.
ERT 3 Year Strategy
During the year 2023/24 trustees agreed a 3 Year Strategy. The overarching aim of the Strategy is to be financially self-sufficient with no depletion of reserves. This aim was achieved in 2023/24.
The Strategy covers the following areas:
People
Programming
Finance
IT/Tech
Governance
Marketing
Building
Outreach
ERT Trustees also agreed a 2 year budget for the period from 1 July 2024 to 30 June 2026 in support of the Strategy.
ERT presents high class entertainment from several sources:
In-House Productions – In-house shows are produced by ERT, and all costs and revenues are managed by ERT. The choice of what to produce is made by our Artistic Director in consultation with the Board. This year ERT has created two in-house shows – Confusions and our Christmas production Toad on the Wolds.
Associate Companies – SHE productions are now an associate company staging shows for both adults and children. They also provide a regular community theatre for adults at ERT. Our other associate company Other Lives also contributes to outreach work.
Incoming Shows – ERT is a receiving house for shows produced by other companies. The company has developed relationships with other companies including the John Godber Company and Theatre Royal Wakefield. Visiting companies receive a share of box office sales with ERT and cover all their own production costs.
Festivals – ERT hosts festivals, including the biennial Beverley Puppet Festival and Stage4Beverley music festival. Programming and planning festivals sits with the festival organisers and ERT charge a fee for use of the building and technical staff.
Music and Comedy – Hosting incoming music, comedy and spoken word shows provides a more varied programme encouraging those who might not otherwise attend the theatre as well as being financially beneficial to ERT. These shows help to develop and broaden our audience as well as expanding it geographically, with audiences often coming from further afield than our regular theatre audiences. The visiting companies and performers receive a share of box office sales with ERT and cover all their own production costs.
Cinema – In 2023/24 ERT introduced an eclectic cinema programme to broaden our offer.
Learning and Development – ERT is committed to developing talent particularly among young people who would not otherwise have had the opportunity to experience theatre, and in developing personal skills through participation in drama and music. During 2023/2024 ERT organised three summer schools for children and young adults.
Recognition - The theatre has continued to be a key centre for the performing arts in East Yorkshire. The Theatres Trust has stated that “East Riding Theatre has become a valued and important cultural and social asset for Beverley since it opened in 2014, operated by a charitable trust and primarily staffed by volunteers. It provides local people with access to theatre and the arts, offering opportunities for participation and engagement. It produces its own work and has a mixed programme of theatre, live music, comedy, poetry and other functions.” The recognition of ERT’s importance has spread beyond the entertainment world. The Hull Trains’ railway carriage depicting the icons of Beverley has an image of ERT together with those of Beverley Minster and Beverley Westwood. This shows how ERT has made its mark since 2014.
Reserves policy
It is the policy of East Riding Theatre to hold a reserve of at least £100,000 to mitigate the risks associated with income failing to materialise. During 2023/24 the theatre was able to maintain funds of over £100,000 but we remain vigilant to guard against reduction below this level.
Investment policy and objectives
ERT holds cash in its current accounts and on deposit. The trustees have adopted a prudent, risk averse policy in respect of its cash holdings.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
As part of the ongoing management of the organisation ERT has produced a risk register to identify the key risks it faces and indicate how each risk is managed. The risk register has been drawn up in consultation with the ERT Board, key members of staff and volunteers.
Each risk and its associated mitigations are monitored by the Board and the Management team to ensure they are properly managed and remain up to date and relevant. The risk register is formally reviewed annually by the Board.
Future plans
By 30 June 2024, activity had returned to pre-pandemic levels and the theatre is now making a surplus. Daytime operation of the café has picked up substantially with returns far exceeding pre-Covid times and significantly contributing to theatre funding.
The new 3-Year Strategy, outlined above, details the Trustees’ plans for the Theatre’s development over the period to 2027.
East Riding of Yorkshire Council, who own the adjoining land on Lord Roberts Road, put the site up for sale. The subsequent planning application has been amended and is awaiting determination.
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee as defined by the Companies Act 2006.
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:
Recruitment and appointment of new trustees
Trustees are recruited by open competition in order to select Trustees who will supplement the existing Board skill set and provide a diverse Board.
Organisational structure
The Board has overall authority and responsibility for the management of the organisation, including the artistic programme and maintaining its financial health. Day to day management is delegated to the theatre manager, who in turn is supported by a mix of paid and volunteer staff.
Induction and training of new trustees
East Riding Theatre puts in place bespoke induction programmes for new trustees.
Related parties
None of the Trustees receive remuneration or other benefit from their work as Trustees. Any connection between a trustee with a production company, contracted actor, performer or exhibitor must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. In the current year the following trustees reported a connection:
Miss C H Wade
This is the seventh year of operation for ERT Catering Limited, a wholly owned subsidiary of East Riding Theatre Limited. The company was formed to operate the bar and cafe facilities at the theatre. ERT Catering Limited donates its profits to East Riding Theatre Limited, under Gift Aid rules. The amount received during the year amounted to £58,376.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of East Riding Theatre Limited (the charity) for the year ended 30 June 2024.
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.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
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.
East Riding Theatre Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 10 Lord Roberts Road, Beverley, East Yorkshire, HU17 9BE, United Kingdom.
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.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
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.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Theatre
Theatre
Ticket sales
Ice cream
Sponsorships
Merchandising
Grants received included in income from charitable activities are as disclosed above.
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Advertising
Sundries
Bar and cafe purchases
Cast and costumes
Props, set design and building
Stage manager
Direction and production
PRS and PPL licence fees
Repairs and safety expenses
Royalties
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Horncastle Family Foundation funding support is the Summer School programme, providing scholarships and covering some of the Summer School costs.
The D'Oyle Carte Charitable Trust gave a grant to help fund our Summer School 2024 and Youth Ambassadors programmes.
Hull & East Riding Charitable Trust - a grant awarded to help deliver our "young playwrights" Summer School. Children aged 7-11 were engaged in writing their own play, performing with professional actors and designing and making sets and costumes.
Beverley Cultural Network - ERT was lead applicant for a grant to pilot a networking organisation for the cultural sector in Beverley. The grant was awarded by the UK Shared Prosperity Fund and the project was successfully delivered and the evaluation has been accepted by the funders.
East Riding of Yorkshire provide an Arts grant to help with marketing costs.
Beverley Town Council accepted ERT on its Strategic Partnerships scheme, which provides funding on a 3-year rolling basis. The first grant was received on 29 June 2022.
Sir James Reckitt Charity have provided funding for core costs to support our ongoing in-house productions, maximise income generation, rebuild audiences and create new ones, Connect and engage with young people, and assist with our intergenerational volunteer programme. The funds are committed to a writing commission for our 2023 Christmas production. Two young people will be engaged in the production.
Holiday Activities Fund - DoE delivered via ERYC. This funds summer school activities for ages 7-11 and includes lunch.
Other reserves comprise various individual donors who have generously donated to ERT, to fund our summer schools and other Education and Outreach projects.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
East Riding Theatre produces its own shows and this carries a substantial risk. Each show has to be funded up front and costs will only be covered if there are sufficient ticket sales or project grants. Therefore, the directors have adopted a new policy of designating funds to cover budgeted production costs within the next four months. No productions were planned within 4 months of 30 June 2024, so no reserve is required.
There were no disclosable related party transactions during the year (2023 - none).
Details of the charity's subsidiaries at 30 June 2024 are as follows: