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, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".
Our formal objective (Articles of Association):
The Charity is established to promote and advance education through the arts for the public benefit and to promote and advance the appreciation and understanding of the arts for the public benefit, with particular but not exclusive reference to the dramatic arts.
Following last year’s strong financial performance, the Charity has continued to build on the work undertaken on the Elixir of Love adaptation, which underwent R&D during the year. Income increased year on year by £8,221 as a result of additional funding coming through for not just the performance development but also for the Community Outreach work. Of the total income of £66,435 in the year, £54,113 was restricted for use on the continuing development of the Elixir of Love, which is due to be performed in the summer of 2025. This split of restricted and unrestricted income of 80% / 20% is similar to previous periods. Unrestricted income for the year included £11,856 relating to Theatre Tax Relief credits in respect of the development the ongoing work on Elixir of Love.
The increased and ongoing activity towards new projects is also reflected in the level of expenditure incurred in the year, which was significantly higher than the previous year as funds acquired in 2023 began to be spent on production and development. Almost all of the increase in expenditure of £45,161 related to the payment of artist fees as adaptations were written, workshopped and rehearsed and is to be expected given the level of activity in the year.
This has resulted in the Charity realising a smaller surplus than in the previous year as activity increased and funding previously acquired in 2023 began to be spent on developing the work of the Charity. Overall reserves grew by £7,156 mainly due to the unrestricted nature of the Theatre Tax Relief due for the Elixir of Love production. The overall liquidity of the Charity remains strong with the majority of the assets being held as cash at bank, similar to previous years.
Going forwards into 2025, the Trustees are pleased with the ongoing success of the Charity in continuing to develop new projects and, with the performances of Elixir of Love due to take place in the summer, are confident that 2025 will be another strong year.
The charity is a company limited by guarantee. 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:
They are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements an estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
Ongoing Key Partners
Merton Music Foundation
Wandsworth Music Service
Croydon Music & Arts
Jigsaw4u
Roehampton Base Youth Club
Katherine Low Settlement
AgeUK Croydon
Lantern Arts Centre
Southwark Playhouse
Opera Holland Park
Merton, Wandsworth & Croydon schools
Merton, Wandsworth & Croydon care homes & organisations for the elderly
Funders
The work of Baseless Fabric Theatre would not be possible without the support from our funders. We gratefully acknowledge the contributions made by:
Arts Council England
Samuel Gardner Memorial Trust
The Humphrey Richardson Taylor Charitable Trust
Cockayne Grants for the Arts - London Community Foundation
Postcode Society Trust
Wandsworth Council
Three Monkies Trust
John Thaw Foundation
Tesco Stronger Starts
National Lottery Community Grant
During the year the Trustees revised the following policies:
Child & Vulnerable Adult Protection Policy
Complaints Policy
Equal Opportunities Policy
Privacy Policy
Volunteers Policy
Conflicts of Interest Policy
Health & Safety Policy
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Baseless Fabric Theatre Limited (the Charity) for the year ended 31 December 2024.
Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the Companies Act 2006 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. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
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 Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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.
All income and expenditure derive from continuing activities.
Baseless Fabric Theatre Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Wimbletech Zone 1, 35 Wimbledon Hill Road, Wimbledon, London, SW19 7NB.
The financial statements have been prepared in accordance 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)” (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the second edition of the SORP for charities applying FRS 102 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.
Ticket and Programme sales are recognised at the time that the related event has occurred.
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.
Costs are recognised when they are payable and are allocated to the charitable activity to which they relate.
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.
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
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 net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
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.
None of the Trustees (or any persons connected with them) received any remuneration during the year, but one connected person was paid a total of £23,047 for project fees (2023 - one was paid a total of £8,375 for project fees).
The average monthly number of employees during the year was:
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.
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.
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.
Nature & Purpose of Restricted Funds
Arts Council - Research & Development and Production and Community Outreach for The Elixir of Love
Samuel Gardner Memorial Trust – Research & Development and Production for The Elixir of Love
Humphrey Richardson Taylor Charitable Trust – Research & Development and Production for The Elixir of Love
London Borough of Wandsworth – Research & Development and Production & Community Outreach for The Elixir of Love
Postcode Society Trust – Community Outreach associated with The Elixir of Love
Three Monkies Trust - Community Outreach associated with The Elixir of Love
John Thaw Foundation – Community Outreach associated with The Elixir of Love
Tesco Stronger Starts - Community Outreach associated with The Elixir of Love
Cockayne Grants for the Arts - London Community Foundation - Research & Development and Production for The Elixir of Love
National Lottery Community Fund - Community Outreach associated with The Elixir of Love
There were no disclosable related party transactions during the year (2023 - none).