The trustees present their annual report and financial statements for the year ended 31 December 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, 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)".
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The charitable purposes as set out in the Memorandum and Articles of Association are:-
To Promote, maintain, improve and advance education, particularly by the production of educational plays and the encouragement of the Arts, including drama, mime, dance, singing and music.
To formulate, prepare and establish schemes therefore provided that all objects of Orbit Theatre shall be of a charitable nature.
In formulating the charity's objects, the trustees have considered the Charity Commission's guidance on public benefit including the guidance on fee charging. The charity relies on income from the main theatre productions held and also on donations, sponsorship and advertising from local business.
In order to achieve its objectives, Orbit Theatre promotes education, improvement and advancement of the arts which includes to purchase, acquire and obtain interests in the copyright of or the right to perform or show any opera, play, mime, comedy, drama, film, film scenario, stage piece or musical composition which can be adapted for the objects of the company.
Enter into agreements with authors, actors, dancers, composers, musicians, producers and script writers.
The Charity has continued to run classes in the performing arts at their premises and continue to try to attract new members who can also take part in the various productions throughout the year.
The charity has been unable to secure a production in 2024. The availability of shows that we can perform at the New Theatre Cardiff has been small, and The Trustees opinion is that the ticket sales generally for Musical Theatre has reduced, and their focus is to continue to provide their programme of musical theatre classes throughout the year.
The trustees have had regard to the Charity Commission's guidance on public benefit in managing the activities of the charity.
Despite the challenging economic climate, the charity has continued to provide musical theatre classes. These classes provide outstanding experience for the performers to develop their talents.
The Charity continues to provide classes to nurture and encourage talent in the performing arts and also provides the outlet for this talent to be demonstrated in its productions.
The financial position of the charity at 31 December 2024 and comparatives for the prior period, as more fully detailed in the accounts.
The trustees consider the financial performance by the charity during the year to have been difficult in an ongoing climate of economic challenges.
However, the charity continued to provide a staged production and musical classes were provided in the charity's premises.
The trustees have reviewed the financial position as at December 2024 and are satisfied that the future cashflow provide evidence that the going concern basis is appropriate for the charity for the Accounts to 31st December 2024.
Future uncertainty remains a consideration, in view of the consequences of financial constraints caused by the difficult economic climate but the activities taking place in 2025 should provide continued improvement in the Company's financial stability.
It is the policy of the charity that unrestricted funds, which have not been designated for a specific use, should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. The trustees acknowledge that the charity’s unrestricted reserves have fallen below the target level of three to six months’ expenditure during the year. This shortfall has arisen due to ongoing financial pressures and challenges in securing sufficient funding in a difficult economic environment. While the current reserve level does not meet the policy requirements, the trustees are actively monitoring the situation and are committed to rebuilding reserves to the desired level as soon as practicable. Plans are being developed to increase income and manage expenditure responsibly to ensure the long-term financial stability of the charity.
The charity is a company limited by guarantee, registered under the Companies Acts. The governing document of the charity is the Memorandum and Articles of Association establishing the company under company legislation.
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:
The trustees are all individuals and no trustees were appointed during the year.
New trustees are recruited by personal introduction and appointed by a resolution of the existing trustees in accordance with the Charity's constitution. No new trustees were appointed during the year.
Consideration of appropriate skills and experience is given when introducing new trustees to the charity. New trustees are made aware of their responsibilities under charity law through appropriate induction training.
The trustees report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Orbit 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.
During the course of my examination, I identified that the charity received certain income for which no invoice, receipt, or other supporting documentation was provided. As a result, I was unable to obtain sufficient evidence to confirm the completeness and accuracy of this income. This constitutes a limitation of evidence, and I am therefore unable to determine whether adjustments to the reported income may be necessary.
I confirm that apart from the matter of concern set out above, 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 confirm that there are 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.
Orbit Theatre Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Orbit Warehouse, Unit 5 Holden Road, Leckwith, Cardiff, CF11 8TL.
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" 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)". 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.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
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.
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.
Gifts in kind is included in incoming resources in the SOFA at its market value at the time of receipt and is capitalised on the balance sheet.
Tangible fixed assets are measured at cost, 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 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.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
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.
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.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The average monthly number of employees during the year was:
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.
There were no disclosable related party transactions during the year (2023 - none).