REGISTERED NUMBER: |
NEVILL HOLT FESTIVAL LIMITED |
FINANCIAL STATEMENTS |
FOR THE PERIOD |
1 SEPTEMBER 2022 TO 30 AUGUST 2023 |
REGISTERED NUMBER: |
NEVILL HOLT FESTIVAL LIMITED |
FINANCIAL STATEMENTS |
FOR THE PERIOD |
1 SEPTEMBER 2022 TO 30 AUGUST 2023 |
NEVILL HOLT FESTIVAL LIMITED (REGISTERED NUMBER: 08351346) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 30 AUGUST 2023 |
Page |
Company Information | 1 |
Statement of Financial Position | 2 |
Notes to the Financial Statements | 3 | to | 7 |
NEVILL HOLT FESTIVAL LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 30 AUGUST 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
5 Resolution Close |
Endeavour Park |
Boston |
Lincolnshire |
PE21 7TT |
SOLICITORS: |
16 Old Bailey |
London |
EC4M 7EG |
NEVILL HOLT FESTIVAL LIMITED (REGISTERED NUMBER: 08351346) |
STATEMENT OF FINANCIAL POSITION |
30 AUGUST 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Debtors | 5 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 7 |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 9 |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
NEVILL HOLT FESTIVAL LIMITED (REGISTERED NUMBER: 08351346) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 30 AUGUST 2023 |
1. | STATUTORY INFORMATION |
Nevill Holt Festival Limited (Formerly Nevill Holt Opera Limited) is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £. |
The financial statements cover the individual entity. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The company has changed its year end date from 31 August to 30 August. |
The company's accounting reference date is 30 August. These financial statements are for the period 1 September 2022 to 30 August 2023. The comparative figures are for the period 1 September 2021 to 31 August 2022. |
At the statement of financial position date, the company had net liabilities of £681,436 (2022 - £554,911) and net current assets of £306,721 (2022 - £54,836). |
Fixed assets include the theatre which opened to the public in June 2018. The cost of the build was funded by a loan from The Ross Foundation to the company. Nevill Holt Festival Limited has a liability of £6,915,813 at the year end (2022 - £6,671,393). |
At the time of signing this report lawyers acting on behalf of the Trustees of The Ross Foundation and the directors of Nevill Holt Festival Limited are finalising a long term loan agreement and terms of lease between the two organisations. |
The directors expect to commit to a loan repayment schedule over 50 years which will permit earlier exit after not less than a two year notice period. These clauses are intended to protect the interests of both parties. Assurances have been obtained that in the meantime the loan will not be recalled within twelve months. |
The environment for arts organisations continues to be challenging in the years following COVID-19 with the cost of living crisis and record inflation impacting on ticket sales and discretionary spending. The whole sector is facing significant challenges and having to make difficult decisions. Nevill Holt Festival Limited has equally been significantly impacted, particularly as a result of falling audience numbers and later bookings of tickets which has put pressure on cashflow. |
Having reduced and simplified the 2023 programme, the company is focused on the sustainability of the organisation and strengthening of the financial position. Recognising the difficult financial position at the end of 2022, in June 2023 the company secured further support in the form of a short-term bridging loan from The Ross Foundation to support the cashflow position which has subsequently been repaid in full. |
In 2024, the company returned to present a broader range of events, appealing to a wider audience and striving to develop a more sustainable future. Again this was supported with loan financing from The Ross Foundation to support the cashflow position, with future repayments being made on receipt of Theatre Tax Relief claims and other sources of income. |
As part of their going concern review the directors have undertaken a strategic review of the business and prepared both cash flow forecasts and budgets. As part of this strategic review, which has delayed the production of these financial statements, the directors are continuing to review and develop plans for the future. With the continuing support of The Ross Foundation the directors are confident that the company can continue to trade and meet its debts as they fall due and conclude that the financial statements should be prepared on a going concern basis. Further information is included in the post balance sheet events note. |
NEVILL HOLT FESTIVAL LIMITED (REGISTERED NUMBER: 08351346) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 30 AUGUST 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover includes ticket sales, corporate sponsorship, catering operations, membership income and programme sales. |
Income from ticket sales from performances is recognised net of VAT for the festival taking place in the period and upon event performances where the event is not part of the main opera festival. |
Income from sponsorship, catering operations and programme sales is recognised net of VAT when it has been earned. |
Membership income is recognised in the period to which the membership relates. |
Other operating income |
Other operating income includes donations and grants and is recognised upon receipt unless alternative treatment is required by the donor's terms. |
Tangible fixed assets |
Long leasehold - theatre | - |
Equipment | - |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Financial instruments |
The company has chosen to adopt the FRS102 1A in respect of financial instruments. |
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement. |
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 business 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Nevill Holt Festival Limited is eligible for Theatre Tax Relief on core production expenditure under the provisions of the Finance Act 2014. Tax credits are recognised when a reliable estimate is available. |
NEVILL HOLT FESTIVAL LIMITED (REGISTERED NUMBER: 08351346) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 30 AUGUST 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of material timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at the end of each reporting period. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying value. Where the carry value exceeds its recoverable amount, an impairment loss is recognised in the income statement unless the asset is carried at a revalued amount where the impairment loss is recognised in the revaluation reserve. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the period was |
4. | TANGIBLE FIXED ASSETS |
Long |
leasehold |
- theatre | Equipment | Totals |
£ | £ | £ |
COST |
At 1 September 2022 |
and 30 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for period |
At 30 August 2023 |
NET BOOK VALUE |
At 30 August 2023 |
At 31 August 2022 |
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
NEVILL HOLT FESTIVAL LIMITED (REGISTERED NUMBER: 08351346) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 30 AUGUST 2023 |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Other creditors |
Other creditors includes a loan from The Ross Foundation of £6,915,813 (2022 - £6,671,393) which funded the building of the theatre. |
Secured debts |
During the period a legal charge was registered to The Ross Foundation over the bank account balances of Nevill Holt Festival Limited. |
8. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
9. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1 | 1 |
10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
NEVILL HOLT FESTIVAL LIMITED (REGISTERED NUMBER: 08351346) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 SEPTEMBER 2022 TO 30 AUGUST 2023 |
11. | RELATED PARTY DISCLOSURES |
Directors of Nevill Holt Festival Limited and directors and trustees of Nevill Holt Community Arts Limited |
Nevill Holt Festival Limited (NHFL) is the wholly owned subsidiary of Nevill Holt Community Arts Limited (NHCA). All fundraising activity is undertaken by NHFL, and allowable profits generated by NHFL are gifted to NHCA. NHCA provides grants to NHFL to deliver its charitable objectives. Transactions between parent and subsidiary and year end inter-company balances are disclosed in the notes to the financial statements. |
The Directors of NHFL and the directors and trustees of its parent undertaking, NHCA, do not receive fees or salaries for the performance of their director/trustee roles. Nor do they claim for refunds of associated personal expenses. |
The financial statements of both NHFL and NHCA include immaterial transactions with members of both boards which arose during the normal course of business: no discounts on purchases of event tickets or goods are received by virtue of their position on the Board. |
Further details are included in the financial statements of NHCA, which are prepared in accordance with the Charities SORP. |
12. | POST BALANCE SHEET EVENTS |
Following the period covered by these financial statements there have been some changes to the Board as noted on page 2. |
For the 2024 festival season, James Dacre was appointed as guest Festival Director and helped the board develop a broader programme of events. |
The Ross Foundation has continued to provide cashflow loan support, with future repayments to be made on receipt of Theatre Tax Relief claims and other sources of income. |
Nevill Holt Festival Limited is very grateful to receive continuing support from The Ross Foundation, as well as from other trusts and foundations and individual supporters. |
Tickets for the 2025 festival are currently on sale online at www.NevillHoltFestival.com. |
. |
13. | ULTIMATE PARENT UNDERTAKING |
The ultimate parent undertaking is Nevill Holt Community Arts Limited, a charitable company limited by guarantee. The registered office is Nevill Holt Theatre, Nevill Holt, Market Harborough, Leicestershire LE16 8EG. |