The trustees present their annual report and financial statements 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).
The company's purpose is the advancement of the arts and culture:
Produce original theatre that provides employment to emerging and early-career theatre-makers, and/or Highland-based artists;
Offer spaces and opportunities that allow Highland-based emerging and early-career theatre-makers to develop their creative practice;
Undertake research that advocates the priorities of emerging and early career theatre-makers, and the needs of the Highland theatre industry
Educate young people in the Highlands on pathways into the theatre industry so that they can be empowered to make informed decisions about their creative careers;
Facilitate the development of industry and performance skills in young people and/or emerging or early-career artists that inspire, encourage, and prepare them for a career in theatre; and
Govern the company in a manner that is financially and ethically sound to ensure the sustainability of the activities of Vivid Root Collective.
This year, we produced our first performance, The Wound, the Rag and the In-Between by Annie MacDonald. This was premiered at Eden Court Theatre in May, fully rehearsed in Inverness, and fully staffed by Highland and emerging theatre-makers. The production employed 16 artists, and provided a shadowing opportunity for a local school leaver. Of these only 4 did not live in or come from the north of Scotland. We engaged 195 audience members, and 8 attendees for an open rehearsal, which was a rare opportunity for Inverness audiences to see professional theatre in rehearsal.
We also delivered our second ROOTS Festival, with in-person and hybrid events spanning 4 days. The in-person events were hosted at Inverness Creative Academy, and included a series of scratch events for local theatre-makers to present their new look to an audience. The online events included a series of workshops and networking events designed to upskill and connect theatre makers across Scotland. We employed 31 artists in this project, 1 volunteer and 52 audience members. The festival included our second Budding Collective in Inverness who shared as part of the scratch events.
We have delivered workshops with Developing the Young Workforce and UHI Inverness Drama and Production, to generate income for the company in a bid to be more financially sustainable. The workshops offered a variety of benefits for the participants including drama skills for young people, industry skills for students, and advocating for the benefits of drama participation by delivering CPD workshops for teams and secondary school pupils.
The charity generated £27,847 of income this year, including £27,005 for restricted purposes. The charity had a net deficit after expenses of £28,314 (£26,246 restricted to be used in future periods).
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. This level of reserves has been maintained throughout the year.
The charity is a company limited by guarantee and, therefore, has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The charity, which is registered in Scotland, is governed by its Memorandum and Articles of Association dated 23 March 2023.
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 of the charity are also company directors for the purposes of company law. Under the requirements of the memorandum and articles of association, the board shall consist of no less than four trustees. Nominations are encouraged from businesses and individuals who use the company’s training facilities. Any change in trustees usually takes place at the Annual General Meeting where new appointments are proposed and approved by the board. Should a trustee resign during the year their replacement, if required, is also appointed at the AGM, the number of trustees on the board mean it is not necessary to immediately replace anyone resigning during the year.
None of the trustees has 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 charitable company has a board of trustees who meet quarterly and has the ability to arrange extra meetings when required. Day to day responsibility for the provision of services rests with the chief executive who reports to the board. The Chief Executive has responsibility for developing new programmes and services and for ensuring that the existing programmes and services are delivered successfully.
The trustees, who are also the directors of Vivid Roots Collective Ltd for the purpose of company law, 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 and 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, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by 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.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is carried out in accordance with 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 financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking 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 financial statements.
In the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. 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.
Vivid Roots Collective Ltd is a private company limited by guarantee incorporated in Scotland. The registered office is 33 Macdonald Drive, Forres, IV36 1NG.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 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.
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.
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.
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.
Programme fees
Workshop fees
Ticket sales
Performance related grants
Ticket sales
Performance related grants
Ticket sales
Performance related grants
Performance related grants
Producer, director and writer fees
Artist and performance fees
Travel
Postage and stationery
Advertising
Subscriptions and licences
Rent
Legal and professional
Clothing
Training
Food and refreshments
Sundry charitable expenditure
Programmes and company are the delivery of programmes and workshops to promote and educate in Theatre and the Arts.
The Wound, the Rag and the In-Between (WRIB) is a new play by Annie MacDonald which premiered at Eden Court Theatre on 4th May 2024.
ROOTS was our first annual festival.
HYSTERIA is a research and development programme and commission to develop a new feminist play.
Four of the trustees (or any persons connected with them) received fees from the charity during the year of £16,812 (2024 - £10,647).
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 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.
During the year the following Trustees received fees for services provided to the charity:
Laura Walker - £7,880
Sophie Wink - £2,920
Alexander Williamson - £2,217
Keira Smith - £3,795