The Trustees present their report and accounts for the year ended 31 March 2025.
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 Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)".
Manipulate Arts champions puppetry, visual theatre and animated film in Scotland. One of Creative Scotland’s Regularly Funded Organisations, the organisation’s strategic remit is to provide a wide range of annual events and activities which nurture and promote the art forms of visual theatre, puppetry and animation in Scotland. The principal activities through which the charity achieves this aim are: in the presentation of high-quality work for both adults and families in the form of our annual international Manipulate Festival; a nationwide participation and engagement programme, Captivate; and in the delivery of year-round bespoke artist development activities.
Manipulate Festival presents the very best of Scottish and international puppetry, visual theatre and animated film to adult audiences in Edinburgh and beyond. The festival engages and challenges audiences with high-quality visually-led work which pushes boundaries, plays with form and challenges perceptions. Since its inception in 2008, the festival has presented the work of hundreds of artists from 63 countries, to thousands of audience members from Edinburgh, across Scotland and around the world.
The organisation also runs creative engagement programmes across Scotland through our community and partnership programme, Captivate. This programme enriches the lives of people from diverse backgrounds across Scotland, through opportunities to see and participate in puppetry, animation and visual theatre in their everyday lives, and celebrates local communities as places where creativity thrives. With a particular focus on those facing geographic, socio-economic or communication barriers to participation, the organisation delivers participatory arts projects in public spaces, community workshops, performances, screenings and storytelling sessions for families. Working in each community we collaborate with over a minimum period of 3-5 years, the programme enables deep collaborative relationships over a long period to invest in community creativity. Captivate’s engagement and outreach activity is targeted at some of the most deprived and hardest-to-reach communities in Scotland.
In addition to above, the organisation also supports Scottish-based artists through a range of development programmes throughout the year, aiming to support creative practice and spark the creation of new visually-led performance and animation within Scotland. These include the Creative Fund, through which the organisation has supported over 95 new projects in development and training initiatives since the Fund’s inception in 2005. The organisation also runs quarterly social events, bespoke producing surgeries, skills development workshops and masterclasses.
The organisation enjoyed a successful year, despite the challenges of entering into our thirteenth consecutive year of standstill funding through our core grant from Creative Scotland. The organisation produced its 18th edition of Manipulate Festival; delivered activity through our Captivate engagement programme; and support for many more artists through the artist development programme. In January 2025, the organisation received news that we had been successful in our bid to Creative Scotland’s multi-year funding programme, securing a 42% uplift in our core grant covering the period 2025-2028 which will begin on 1 April 2025.
Manipulate Festival celebrated its 18th anniversary in 2025, reaching over 1600 audience members across all events. The programme was presented in venues across Edinburgh city and included live performance, film screenings, workshops, talks and events. The event focused on celebrating the power of play, by bringing audiences in to experience artistic works at all stages of development and meet artists in conversation. Highlights included a new premiere of When Prophecy Fails by Scottish company Groupwork, securing 5 and 4-star reviews across the board, and an animation programme featuring Queer Stories from across the globe. 93% of all tickets were sold, with 95% of audiences rating their experiences as good or very good, and around a third of attendees were new to the festival in 2025. The organisation made the decision to deliver a much smaller event in 2025, and to pivot additional funds towards the support of independent artists to develop new creative projects. This decision was made in the context of the closure of Creative Scotland’s Open Fund for Individuals, which is the principal vehicle through which our community of artists can develop new work; and also due to the limitations presented by our own standstill funding, which is now set to increase in 2025/26 through the multi-year funding programme. The decision to support more artists to develop new projects proved fruitful, with development grants offered to Scottish puppetry company Hopeful Monster and Lebanese/Scottish dance partnership Sarah Fadel and Liz Strange. Audience feedback from the resulting Open Studio sessions proved highly positive and both projects have plans in the works for future development, with Liz and Sarah’s work awarded a competitive Unlimited commission from Arts Admin.
2024/25 saw the continuation of the organisation’s Captivate programme, with activity delivered across our existing three communities in North Lanarkshire, Uist and Western Edinburgh, plus an additional new area partnership forged in Caithness with lead partner Lyth Arts. The programme built on its previous success, reaching over 1000 participants and audiences across Scotland. 8 projects were delivered across the 4 areas, working in partnership with 12 community, statutory and arts organisations. These opportunities ranged across animation, puppetry, object theatre, circus, dance and physical theatre, and particularly targeted marginalised and disadvantaged communities.
Through all our talent development programmes, the organisation supported over 75 artists in 2024/2025. Our annual Creative Fund provides resources for practitioners to begin to explore new techniques and working practices in the successful realisation of their artistic ambitions and goals. In 204/25 our list of funded projects was as follows: Highland-based animator Helen Woolston developed new concepts and techniques towards her new short film project Storm Hags; Ruxy Cantir and Sarah Rose Graber began development towards a dynamic new visual theatre piece about the Voyager spacecraft and Karl Sagan’s golden record (this development was postponed to 25/26 for health reasons); Selina Wagner undertook research and development into new animation skills and techniques using a new 2.5D approach; and Fiona Oliver Larkin and Jax Waygood developed a new piece integrating puppetry and live blacksmithing. Craig McCulloch also undertook developed on his delayed Nightmares project, a deaf-led theatre project for young audiences about bereavement.
The organisation has felt keenly the affects of stagnating core funding in recent years. Until our core funding position was confirmed in January 2025, the organisation was unable to hire any permanent staff, and following the departure of Producer Aidan Nicol in January 2025, worked with an entirely interim and freelance team (with the exception of Artistic Director & CEO Dawn Taylor) across the festival period. This interim staff team delivered strong results, however the organisation will benefit greatly from the increased stability that confirmation of increased multi-year core funding will bring. New permanent staff members have been recruited and are due to start in the 2025-2026 financial year. Despite the financial challenges of the past year, the organisation has continued to grow its unrestricted reserves and remains in a resilient financial position, and now better equipped than ever to plan for the future.
For the year ended 31 March 2025 we report a surplus of £121 (2024 - deficit of £11,118). At 31 March 2025 reserves were £37,483 (2024 - £37,361), being £25,347 (2024 - £19,312) of unrestricted reserves, £3,636 (2024 - £7,775) of designated funds, and £8,500 (2024 - £10,274) of restricted reserves. In line with current best financial practice we aspire to building up a financial reserve, the total of which would be equal to three months of the organisation's running costs.
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 three month’s basic operating costs. This equates to approximately £40,000. 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. At the year end free unrestricted reserves of £25,347 were available to the charity. Whilst this falls below the current target reserves level, the charity has been saving reserves each year and is on track to meet our reserves target by early 2028.
The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The Charity is a company limited by guarantee.
The Trustees, who are also the directors for the purpose of company law, who served during the year were:
None of the Trustees have any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The organisation consists of two full-time PAYE staff, two fixed term PAYE staff and a pool of freelance team members working on specific projects. Manipulate Arts is led by Artistic Director & CEO Dawn Taylor who reports directly to the Board of Directors on a quarterly basis. Ciara Roe holds the position of Projects and Operations Officer, and there are two fixed term staff - Siobhan Clark as Producer and Graham Webster as Marketing Manager - both these contracts were due to wind up on 31 March 2025 as the organisation prepared to recruit for permanent team members to these roles.
On behalf of the board of Trustees
I report on the financial statements of the Charity for the year ended 31 March 2025, which are set out on pages 5 to 15.
The charity's trustees (who are also directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006, and they consider that the audit requirement of Regulation 10(1)(a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under section 44(1)(c) of the Act and to state whether particular matters have come to our attention.
My examination was carried out in accordance with the Statement of Standards for Reporting Accountants and Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the accounts.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare accounts which accord with the accounting records and comply with the accounting requirements of Regulation 8 of the 2006 Accounts Regulations and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
to which, in my opinion, attention should be drawn 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.
Manipulate Arts Ltd is a private company limited by guarantee incorporated in Scotland. The registered office is Summerhall, 1 Summerhall, Edinburgh, EH9 1PL.
The financial statements have been prepared in accordance with the Charity's [governing document], the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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 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.
Expenditure is recognised when a liability is incurred.
Charitable activities include expenditure associated with the staging of productions and include both direct and support costs relating to these activities.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
Support costs include central functions and have been allocated to the charitable activity on a basis consistent with their 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 net income/(expenditure) for the year.
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).
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.
Other Government Grants
Manipulate Arts
Manipulate Arts
Performers and visiting companies
Travel costs
Marketing and promotion
Office and administration costs
Staff travel
Memberships and subscriptions
Professional development
Company care
Fundraising
During the year 2 trustees received payments from the charity (2024 - nil). One was a payment of £1,200 for services on an arms-length basis, the second was an award of £4,675 from the Creative Open Fund.
The average monthly number of employees during the year was:
The key management personnel of the charity, comprise the Director. The total employee benefits of the key management personnel of the charity were £45,942 (2024 - £43,596).