THE LIVERPOOL AND MERSEYSIDE THEATRES TRUST LIMITED

THE LIVERPOOL AND MERSEYSIDE THEATRES TRUST LIMITED

THE LIVERPOOL AND MERSEYSIDE

THEATRES TRUST LIMITED

(A Company Limited by Guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR

ENDED 31st MARCH 2020

Company Registration Number 03802476 Registered Charity Number 1081229


CONTENTS

TRUSTEES’ ANNUAL REPORT ........................................................................................................................................ 3

INTRODUCTION ........................................................................................................................................................ 3

OBJECTIVES AND ACTIVITIES .................................................................................................................................... 4

ACHIEVEMENTS AND PERFORMANCE ...................................................................................................................... 6

FINANCIAL REVIEW ................................................................................................................................................. 14

STRUCTURE, GOVERNANCE AND MANAGEMENT .................................................................................................. 20

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LIVERPOOL AND MERSEYSIDE THEATRES TRUST

LIMITED ...................................................................................................................................................................... 23

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ........................................................................................... 26

GROUP AND COMPANY BALANCE SHEET................................................................................................................... 27

CONSOLIDATED STATEMENT OF CASHFLOWS ........................................................................................................... 28

NOTES TO THE FINANCIAL STATEMENTS ................................................................................................................... 29


3

TRUSTEES’ ANNUAL REPORT INTRODUCTION 2019-20 was one of the most intensive years ever seen at LMTT – not because of our artistic programme but because we embarked on a major organisation-wide change process. Led by our interim Chief Executive Fiona Gibson and supported by the board and our funders Arts Council England (ACE) and Liverpool City Council, we considered how we might redefine LMTT’s purpose and strategy to ensure we stay relevant and resilient over the long-term. In June 2019 we invited stakeholders from across the City region to join us for a Future Thinking strategy event at the Everyman. We asked Fjord and John Knell to help us envisage the future we wanted for our theatres and considered the following key areas:

o Who we are and what we stand for o Making relevant theatre o Delighting our audiences o Participation through art for everyone o Resilience for the long-term o Our place in the city

Over the following months we brought together teams of internal and external experts to consider each area, culminating in creating a strategic framework for the next 10 years. We then produced our 2020-22 Business Plan with a new Vision, Mission, Values and Goals which was received and approved by our funders in late 2019. We’d like to take this opportunity to thank everyone who played a part in this strategic process, especially those who gave countless voluntary hours. We couldn’t have done it without you.

Given the implementation of the significant change process outlined above, we had a quieter year of producing but were delighted that our in-house programme of work was so well received. We started the year with the atmospheric in-the-round production of Sweeney Todd. Our two Christmas shows enchanted audiences and Miracle on 34th Street proved to be one of the most popular Playhouse productions in the Trust’s history. It was wonderful to be able to present Jonathan Harvey’s new Liverpool work, Our Lady of Blundellsands in March 2020; had it not been for the devastating impact of the COVID-19 pandemic it was on track to be one of the most popular new works presented at the Everyman. Alongside our produced work, we had a very busy visiting programme showcasing a wonderful array of diverse talent presented to Liverpool audiences. We would like to say a special thank you to Sir Ian McKellan for his generosity during his 80th birthday fundraising tour which packed the Playhouse. Young Everyman Playhouse (YEP) also had another strong year, culminating in the wonderful performance of Animal Farm on the Everyman mainstage playing to full audiences.

We have been delighted with the increased activity within our New Works programme over the year as we have continued to support our local freelance community through commissions, workshops and script surgeries. We take our commitment to the communities we serve seriously, especially those who are underrepresented. Following the appointment of a new Community Catalyst role we have delivered a range of projects this year, including Life Rooms at the Playhouse - a pilot project with Mersey Care to address specific social priorities around healthy lives and wellbeing.

We’d like to take this opportunity to thank the funders, donors, trusts, foundations, audiences and partners

who support us on an ongoing basis. We would also like to thank our Trustees and staff for their dedication

and commitment to the Liverpool and Merseyside Theatres Trust (LMTT). We would also like to

acknowledge our huge thanks to Fiona for her period with us as interim CEO, pay tribute to Gemma Bodinetz

for her wonderful contribution over the past 17 years as Artistic Director and to welcome Mark as our brand

new Chief Executive.

Andrea Nixon Mark Da Vanzo Chair Chief Executive


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OBJECTIVES AND ACTIVITIES The Trustees present their annual report together with the audited financial statements for the year ended 31st March 2020.

The Liverpool and Merseyside Theatres Trust Limited (“the Company”, “the Charity”, “the Trust” or “LMTT”) was incorporated on 8th July 1999 and operates out of its principal offices at the Everyman Theatre, 5-11 Hope Street, Liverpool, L1 9BH. LMTT is a company incorporated in England and Wales. The Company (No.3802476) is limited by guarantee, governed by its Memorandum of Association dated 17th June 1999 (and as amended 22nd September 2011, 10th November 2005, 23rd February 2005) and is a registered charity (No.1081229).

The Trustees have prepared this report under the Companies Act 2006 and in accordance with the Charities Statement of Recommended Practice (SORP), FRS102 and applicable accounting standards. This report evidences how it has delivered on its charitable purpose through its activities and the quality of their performance and as a result demonstrates the benefit to the public of the work undertaken by the Trust.

The objects of The Liverpool and Merseyside Theatres Trust Limited (LMTT/the Trust/the Charity) as identified in its Memorandum of Association are:

To advance, encourage, promote and improve the cultural and artistic education of the general public by producing quality theatrical productions and other arts. There is also particular provision for educational, community and training programmes for the people of

Merseyside and the nation at large, and to protect, develop and improve the Playhouse.

Following an extensive strategic planning process in 2019, the Trust adopted the following Vision, Mission and Values:

Public Benefit The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission's general guidance on public benefit, "Charities and Public Benefit".

As described in the review of activities during the year the Trust has provided public benefit in numerous areas by:

producing a theatrical programme of exceptional quality and range

investing in new plays and new talent through its work with young people, the community and new artists

working to maximise accessibility through extensive outreach activities, strategic ticket pricing and close relationships with schools and community groups

delivering positive social impacts via work with young people and community groups

continuing to work on securing the long-term viability of both the Playhouse and the Everyman theatres through the submission of funding applications to a variety of funding organisations.


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Key Artistic Activities

In-House Productions

Despite the lockdown caused by COVID-19 this year has been a successful one both financially and

artistically. We produced four main house in-house productions last year: Sweeney Todd, Miracle on

34th Street, our regular Rock ‘n’ Roll panto, Sleeping Beauty, and a world premiere of a new Jonathan

Harvey play Our Lady of Blundellsands. Sadly this last production was unable to complete its run due

to the pandemic but even with two weeks of performances outstanding, it managed to exceed its

projected ticket sales and garner a host of fabulous reviews. Both Christmas shows proved very

successful at the box office with Miracle on 34th Street breaking previous box office records for

Christmas shows at The Playhouse. Sweeney Todd received many great reviews from the critics and

exceeded its financial target. YEP (Young Everyman and Playhouse) produced two outstanding main

house shows at the Everyman this year alongside the many other strands of work they deliver.

Laurence Wilson’s adaptation of George Orwell’s Animal Farm was imaginatively brought to the stage

by Chris Tomlinson and featured some wonderful performances, a great lighting design from our own

team and a truly remarkable set design from LIPA students. No less impressive was Matt Rutter’s

production of Road by Jim Cartwright featuring some outstanding individual performances from the

older and younger cohorts. Both productions received excellent reviews in the local press.

Visiting Programme It was an excellent year for the Playhouse financially and artistically. This year’s programme included

some big hitting titles (An Inspector Calls, Six, Woman in Black, Toast), some great examples of artistic

innovation (Chekhov’s First Play, I Think We’re Alone, Amelie), plays exploring Black history and

experience (Princess and the Hustler, Rush, Night of the Living Dead and Heart of Darkness) and not

forgetting two, unforgettable, sold-out performances by Sir Ian McKellen. All in all, one of the best

and most successful visiting seasons at the Playhouse and a fitting finale to our head of visiting work,

Ben Lloyd, who left us in March.

“One- Nighters” We have also seen a rich and profitable vein of programming of “one night only” comedy, music, live

podcasts and “in conversations with”. St Etienne sold out at the Everyman as did Stacey Dooley at the

Playhouse. There were many other successful evenings including Sindhu Vee, Justin Moorhouse and

Roddy Doyle. There has been an increase in performance activity in our other spaces as a result of our

connections with local artist networks and our own embedded talent development strategy. Our

Scratch Mornings in Ev1 have proved hugely popular and the Bistro has become a regular host to local

poetry night A Lovely Word, drag cabarets hosted by our very own Filla Crack, not to mention murder

mystery nights.

Work was underway to turn our Playhouse studio/ rehearsal space into a more user-friendly space

for local companies with a short season of work to launch its redesign. This work did not bear fruit

due to the COVID-19 lockdown but it is hoped that we can relaunch it next year.

Gemma Bodinetz Artistic Director


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ACHIEVEMENTS AND PERFORMANCE

IN-HOUSE WORK Sweeney Todd

Fri 12th Apr to Sat 11th May 2019 EVERYMAN

★★★★

“Raging underdog adds politics to the pies”

“Nick Bagnall’s ingenious revival”

“An outstanding performance by Kacey Ainsworth”

The Guardian

★★★★

“There’s plenty to chew on in a production full of grit and

gristle”

“It’s gutsy, immediate and at times unruly”

“A punkish rage and roughness, ripping fresh moments of

horror and pain from the awful tale”

The Times

Miracle on 34th Street

Sat 7th Dec to Sat 4th Jan 2020 PLAYHOUSE

★★★★ “Full of snow, big smiles and seasonal joy” "If it was under the tree it would be wrapped up in a big box and topped off with a huge bow." “Packed with superb performances and festive cheer”

Liverpool Echo

★★★★★ “Slick and joyful production.”

The i paper


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Sleeping Beauty

Sat 23rd Nov to Sat 18th Jan 2020 EVERYMAN

★★★★★ "Christmas begins with the launch of the famous Everyman rock 'n' roll panto."

Liverpool ECHO

★★★★ “A genuinely joyous inter-generational festival of live music, sequins and incomprehensible nonsense.”

The i paper

Our Lady of Blundellsands

Fri 6th Mar to Sat 14th March Everyman (Due to run to the 28th March, but

closed early due to Coronavirus)

★★★★★

"Tears, laughter and acid wit"

"Josie Lawrence and Annette

Badland are a joy to watch"

"Laden with sharp one-liners"

"Finely balancing laughter and tears"

"Sadness and acid wit permeate Jonathan Harvey’s perfectly judged and warmly performed new

comedy"

The Stage

"It's like Ibsen turned up to 11" "As messed up families go, the Domingos are off the charts" "Bagnall has an ace up his sleeve for the final moments, which are as beautiful as they are heart-breaking"

The Guardian


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VISITING WORK At The Playhouse

Princess & the Hustler Mark Thomas Check Up Around the World in 80 Days Ian McKellen Heart of Darkness Chekhov's First Play The Worst Witch Cooped American Idiot Little Miss Sunshine Amelie Roger Mc Gough Eric & Ern Frankenstein John Shuttleworth Six The Woman in Black An Inspector Calls Toast Justin Moorehouse Richard Herring Rush Frantic Assembly: I Think We're Alone Stacey Dooley Night of the Living Dead Oi Frog Roddy Doyle Mark Thomas 50 Things About Us Athletico Mince

At The Everyman

Tabby McTatt Sinhu Vee Griff Rhys Jones Daniel Kitson Johnny & The Baptists St Etienne


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YOUNG EVERYMAN & PLAYHOUSE

Young Directors Festival 2019

Mr Incredible By Camilla Whitehall Directed Caitlin Magnall-Kearns

Crave By Sarah Kane Directed Jack Southwark

Dark Vanilla Jungle By Phillip Ridley Directed Melissa McLoughlin

Out Of Love By Elinor Cook Directed Josie Dalton

The Flying Lovers of Vitebsk By Danial Jamieson Directed Martyna Puciato

Boys By Ella Hicksome Directed Ben Rivers

Road

Wed 6th Nov to Sat 9th Nov 2019 EVERYMAN Mainstage

Animal Farm

Wed 12th Feb to Sat 15th Feb 2020 EVERYMAN Mainstage

LMTT would like to thank its funders including ACE and LCC for enabling the

organisation to deliver these activities


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Attendances A priority for 2019-20 was to increase income, while maintaining accessible price points to support

our objectives in reaching under-represented audiences. Overall net income increased by 5% using a

dynamic pricing approach when demand allowed; average ticket yield increased from £15.65 to

£17.48 across all ticketed activities. Focusing discounts and concessions in our priority areas ensured

a 14% increase in full price ticket buyers, with 8,604 more tickets being sold at full price compared to

2018-19. The approach to the visiting programme and a successful Christmas production at the

Playhouse were drivers of this increase and it is also demonstrated in a significant increase in online

booking: a 24% increase in online bookers, they now represent 74% of all bookers and 63% of income

during 2019-20 compared to 63% of bookers and 52% of income in 2018-19.

Reaching new audiences to refresh our audience base was a focus and we increased our bookers by

5% from 27,509 to 28,909. New bookers increased from 12,819 to 15,212 and made up 53% of total

bookers for the year compared to 47% in 2018-19.

Our approach to dynamic pricing to drive income allowed us to maintain our pricing concessions for

those with access needs, in education and community bookers. With fewer in-house productions, the

number of accessible performances offered was lower and this was reflected in 25% fewer tickets

sold, 899 lower than 2018-19. With no in-house Shakespeare production, there was also a drop in

tickets sold to those in Education of 3%. We collaborated with a number of the visiting companies

during 2019-20 which allowed us to increase the availability of our community rate tickets to support

the work of the Creativity & Social Change team, an increase of 15% from 2018-19. Overall tickets to

under-represented audiences represented 12% of total tickets sold; 973 down on the previous year.

Nurturing future generations of theatre goers continues to be a priority with a focus on Young

Everyman Playhouse (YEP) and Families. For 2019-20 21,237 tickets were sold to these two groups

representing 17% of the total. YEP bookers increased by 11% from 872 to 971 and Family bookers by

4% from 4,101 to 4,277.

The theatres continue to play their role in attracting visitors to the city and in 2019-20 there was an

11% increase in bookers from outside Liverpool City Region (LCR); this represented 28% of total

bookers for the year. The 422 fewer tickets sold to bookers from outside LCR can be attributed to the

lack of a Shakespeare production which would have attracted school visits from outside the region.


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Creativity and Social Change

Our focus on Progressive Social Change within our city region drives us to make a difference in skill

development, wellbeing and with children and young people in areas of highest child poverty and

social need. We know that listening to our communities and co-designing work with them makes a

greater impact and difference in our city.

We are inspired by the principle ‘Of, By For, All’ and

created the role of Community Catalyst to ensure

we are listening to our communities, maintaining a

dialogue with them and challenging us to achieve

best practice in collaboration. Work has focused on

the Kensington geographical area, displaced

communities and mental health and wellbeing

groups.

We expand opportunities for new talent, new work, and civic engagement. We have focused the majority of our work in 2019/20 on racial diversity and on two

of our city region’s highest social priorities: young people and mental health and wellbeing. This has involved targeted work with ethnically diverse communities, refugees and asylum seekers, vulnerable young people, those who are socio-economically disadvantaged and people experiencing homelessness.

Inspiring young people is a central aim of our work and we have continued to develop Young Everyman Playhouse (YEP) as an integral element within the Theatres’ work, contributing to the wider city region ambitions around skills development, talent attraction and retention.

Over 5,000 young people had access to discounted £5 tickets for our shows

We ran a theatre-wide youth leadership

programme where 200+ young people

participated on a weekly basis and were involved

in over 20 production projects

We created drop-in sessions and bespoke

theatre activities for target underrepresented

groups

We continued our weekly YEP strands for Young Actors, Marketers, Directors, Producers,

Technicians and Writers.

YEP prioritises recruitment of young people who are socio-economically disadvantaged, ethnically

diverse, have Special Educational Needs and Disabilities (SEND) and includes looked after children

and refugees and asylum seekers. Targeted projects in 2019-20 have included work with

Harmonize Academy (alternative education provider), Tiber (multicultural young people’s

project), the Roma Community and Alder Hey’s Dewi Jones Unit (inpatient mental health facility).

YEP progression routes continue to support young people into the industry, with a growing

alumni which the theatre supports through artist development and practical resources


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The Learning Programme has worked with 43 schools and has annual partnership agreements with 8

primary schools, 8 secondary schools and 2 SEND schools, offering a range of participatory activities,

creative professional development for teachers and theatre tickets. The Drama Teachers Forum has

strengthened relationships with schools, colleges and universities. Relationships have strengthened

with local HEIs with increased activity with Liverpool Hope University and Liverpool University,

completion of the first year of a strategic partnership with Edge Hill University and sustaining a

Principal Partnership with Liverpool John Moores University.

Looked after children are a priority for engaging in YEP and more widely in the theatres and 119

children accessed free tickets. The theatres co-lead a Liverpool Cultural Educational Partnership task

team with Liverpool

Children’s Services

which aims to increase

access for looked after

children in the arts.

We are acutely aware

that creative

intervention at an early

age has a direct

correlation to improving

future life chances and

have focused work with

children on creativity,

stories and literacy.

Activity has included 5-day drama residencies in school holidays, show-linked workshops and theatre

days, storytelling sessions and work with primary schools.

Our goal of healthy creative lives for all inspires our work as we believe in the power of the arts to transform people’s lives and improve their mental health and wellbeing. We have innovated strategic arts and mental health partnerships with mental health trusts and organisations and Higher Education Institutes. With the Co-op Foundation’s Enhancing Spaces funding we have partnered with Mersey Care to pilot a new Life Rooms space at the Playhouse, transforming our working theatre’s daytime space into a city centre community resource. Life Rooms at the Playhouse provides a safe and welcoming space to come for a cup of tea as well as creative and mental health and wellbeing activities. There were one-off sessions, recovery courses, social prescribing programmes and a drop in support service. January to March 2020 involved 157 programmed sessions (97 creative wellbeing e.g. Confidence through Drama and 60 mental health and wellbeing e.g. Managing Anxiety) over 23 days. 1,466 people accessed the building for Life Rooms at the Playhouse and 1,049 participated in sessions. In March 2020 we responded to lock down with an on-line creative programme involving pre-recorded films and live interactive sessions were developed. Liverpool University are a partner in the project and producing the evaluation for 2019-20.

Jewels is a theatre residency programme for women with lived experience of street based sex work

which has involved 2 one day theatre residencies, a 5 day residency and an 8 day residency. The

programme has enabled the theatres to develop practice in drama and recovery, while providing

opportunities for women to create performance events (seen by over 600 people), while they also

access support from health, accommodation and drug and alcohol services.


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In 2019 the women performed a glow-in-the-dark Christmas performance for families in two churches

in their neighbourhood and involved the local residents in a community cohesion event. The project

has been funded through National Lottery Awards for All in partnership with All Saints Church.

A programme with displaced people has involved 821 participants in 22 sessions which has involved 3

theatre days with workshops and open dress rehearsals, supported theatre visits and complimentary

tickets to see five shows. Children and young people have been supported into holiday Drama Weeks

and YEP. A puppetry project involving refugee and asylum seeker families from Syria and El Salvador

was funded by Liverpool City Council.

A Chinese programme has engaged 1283 participants and performance work created has involved

over 1000 live audience in four performances in different spaces. The programme involved 3 six-

month Chinese placements. 50 activities included 4 pre-show theatre sessions for families with 271

participants, 304 tickets for shows with linked workshops, a volunteer programme for Chinese

students, two performance projects and 5 Chinese cultural sessions in primary schools. The Chinese

programme continues to strengthen relationships with local communities and enables people who

previously were almost invisible in our offer to be very much part of our work.


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FINANCIAL REVIEW

For the 2019-20 financial year, LMTT successfully delivered the financial turnaround set out in its

interim business plan and as a result delivered its £8k unrestricted surplus as planned.

The organisational change programme designed to ensure the long term financial viability of the

organisation remains on target and continues the transition to its new staffing structure. The

programme of change has enabled the Trust to make recurrent savings by adopting new ways of

working, removing duplication and developing more efficient processes across all departments.

A revised approach to planning and budgeting for in-house work ensured that contingency is built into

production budgets, and a strengthened relationship between the Producers Office, Production

Teams and the Finance Department ensured work was delivered within budget. Show contingency

built throughout the year was able to mitigate the income loss from closing Our Lady of Blundellsands

mid-run due to COVID-19. Overall in-house work was financially favourable to plan, which allowed

further investment into new commissions.

A full programme of visiting work, particularly at the Playhouse saw in year ticket sales of £999k

despite the final few shows being cancelled. This was growth of £177k (22%) from the previous

financial year and reflected the move towards larger shows and booking of one night performers to

maximise the use of the auditoria. The knock on impact of secondary sales at Playhouse bars showed

£29k more income, which is growth of 29% from the previous financial year.

Despite growth in commercial sales at the Playhouse, it was a difficult year for the trading arm at the

Everyman. A reduced programme of work and the resulting reduced show footfall saw a fall in sales,

while largely maintaining a fixed cost base. Much work has been undertaken by the LEPT board,

including the recruitment of new directors with a broad range of skills and experience to explore

opportunities to make commercial trading at Everyman more financially successful. This has included

a full costing exercise reviewing demand and capacity that has informed a task and finish team with

the remit of developing a new operating model. With the impact of COVID-19 and temporary closure

of both theatres, all trading activity through LEPT has ceased. During this period where the trading

arm is not generating any income, it has been essential to reduce cost to a minimum to ensure the

long term solvency of the subsidiary. It is anticipated that this state of hibernation will continue until

it is safe and economically viable to transition to the new operating model.

A revised approach to fundraising during the year has actively grown the Development pipeline. A

total of £200k grants were fundraised, of which £149k is held within restricted revenue reserves to

continue to fund charitable activity in 2020-21.

Total unrestricted income for the Group marginally fell by £39k, from £5,485k (2019) to £5,446k

(2020). This was largely driven by reduced commercial income at the Everyman, as a result of fewer

in-house shows. To offset this, unrestricted expenditure was reduced by £158k to £5,438k (2019:

£5,596k). Expenditure in 2019 included £81k designated talent funds, with the remaining key driver

to the reduction in expenditure being changes to the artistic model from cessation of the Everyman’s

Repertory Company in the prior year.


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The financial results for the year are set out from page 26 onwards. The consolidated income and

expenditure account reports a deficit of £458k (2019: £933k), of which £738k (2019: £826k) relates to

depreciation of fixed assets and £67k in respect of a fixed asset impairment. As explained in the

accounting policies, the charity SORP requires the Charity to recognise fundraising for capital projects

within the income and expenditure account in the year of grant, whilst the related spend

(depreciation) is recognised over the life of the related assets. This results in a significant mismatch

between the timing of income and expenditure recognition.

The Trustees note that the position reported in the consolidated income and expenditure account and

balance sheet has the potential to confuse readers. In years with significant fundraising initiatives, net

income may appear disproportionately high because, whether for revenue or capital purposes, the

charity SORP requires recognition of income based upon entitlement, rather than when the grant is

received in cash or when the related expenditure is incurred, whilst requiring recognition of

expenditure in the year of spend or use. In years with fewer or non-capital fundraising initiatives,

reported expenditure will often exceed reported income because of such timing differences.

1 April 2020 2020 31 March

2019 Results Transfer 2020

Group £'000 £'000 £'000 £'000

Unrestricted funds: Operating 547 8 - 555

Unrestricted funds: Designated

Talent Fund - - - -

Total unrestricted funds 547 8 - 555

Restricted Funds

RE Fixed Assets 20,933 (673) - 20,260

Other (Revenue) 11 207 - 218

Total Restricted Funds 20,944 (466) - 20,478

Total Funds 21,491 (458) - 21,033


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The Trustees also believe a more representative assessment of the Charity’s financial position is

obtained by considering restricted funds which are available to fund the Charity’s activities and by

disregarding those funds which have either already been applied to fund large building projects or

which will not be received in cash until a future date:

Reconciliation between reported restricted funds and Trustees’ view

2020 2019 2018

£'000 £'000 £'000

Reported Restricted Funds

Everyman redevelopment 15,715 16,248 16,880

Other capital projects 4,545 4,685 4,695

Talent Fund - - -

Revenue projects 218 11 192

Total reported restricted funds 20,478 20,944 21,767

Funds included in fixed assets at 31st

March so not available to fund Trust (20,260) (20,933) (21,565)

Funds included in other debtors at 31st

March so not available to fund Trust (20) - (73)

Restricted Funds available to fund Trust 198 11 129

Reserves policy The Trustees consider it prudent to maintain operating reserves in order to ensure the Trust can plan effectively, ensure the sustainability of the organisation and offset the impact of any unforeseen events which may have a detrimental effect on operating cash flows. To this aim, it is deemed desirable to accumulate unrestricted operating reserves of £600k over time (Actual unrestricted reserves were 2020: £555k 2019: £547k; 2018: £576k), and create a designated building reserve for the upkeep and maintenance of our two theatres alongside a strategic reserve for investment in artistic innovation and piloting new streams of work.

The total restricted funds are £20,478k (2019: £20,944k). In the current economic climate, the Trustees recognise that while this reserves policy remains a key aim, should the need arise, past accumulated surpluses may need to be used to offset short-term operating deficits.

The value of free reserves on the 31st March 2020 was £227k (2019: £88k). As the Charity does not budget on the basis of achieving a large surplus year on year, it does ensure that adequate uncommitted contingency is built into plans. The board will take a view annually on unused contingency as a means to maintain Free Reserves between £200k to £300k.


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Investment policy The Charity takes a low-risk approach to investments, with cash required for working capital held in bank current accounts. Surplus cash is placed on short-term money market deposit (no more than three months’ term). Such arrangements have a high level of asset security and liquidity is planned for in advance.

Principal risks and uncertainties The Trustees examine major strategic, business and operational risks which the Charity faces on an ongoing basis and confirm that systems have been established to mitigate and lessen these risks. A risk register is closely monitored and formally reviewed by Trustees twice annually. Over the past year governance risks have been addressed through the continued augmentation of the board. Operational risks are addressed through line management and budget control systems and through comprehensive and regularly reviewed policies in relation to key issues such as safeguarding and health and safety. A full report from the Health & Safety Committee is considered by the Trustees at each of their meetings. Financial risks are addressed through regular monitoring by the Finance and Business Committee and full board, with the overall budget receiving a full reappraisal on at least a quarterly basis. Where appropriate, insurance cover complements and supports other risk reduction mechanisms. External risks and questions of compliance are addressed by maintaining a strong relationship with key funders and regular contact with support and regulation agencies, and by promoting positive PR about the Trust and its programme.

The principal risks and uncertainties faced by LMTT are:

Risk Category (CC26) Risk

External External economic factors adversely impact organisation's revenue streams (inc COVID-19, Brexit risk and general economic slow-down)

Operational Reluctance of audience to return to theatres even if social distancing measures have been lifted sufficiently due to perception of health risk

Financial Insufficient reserves to ensure long-term financial resilience of organisation

Financial Commit expenditure to creative projects which cannot be delivered due to social distancing measures

Financial Ticket sales fall short of income target by 10%


18

Arts Council England (ACE) are providing grant funding in support of the 20-22 Business Plan, although this is now likely to be extended through to 2023 in light of COVID-19. We have secured Liverpool City Council (LCC) funding through the Culture and Arts Investment Programme through to 2022 which is confirmed by the LCC Cabinet on an annual basis. We continue to manage funding risk by maintaining a positive relationship with both funders and by making a visible contribution to the city's profile and its social and economic wellbeing.

The economic climate, especially in light of COVID-19, poses a continued threat and it is hard to predict how long it will take consumer confidence to return once the theatres return to full capacity. Pressures on public funders, especially local authorities, remains a constant concern. All opportunities are taken to maximise and diversify income; to secure income for the medium as well as short-term, and to retain a degree of flexibility in order to revise plans in response to any financial shocks.

Our business plan through to March 2022 will aim to increase LMTT's resilience and reduce vulnerability to risk, particularly around future funding and any economic downturn resulting from COVID-19.

The Future At time of writing, the world is in the midst of a COVID-19 pandemic which has forced the closure of both the Playhouse and the Everyman theatres. While some activity is still able to be delivered digitally, we have not been able to stage any work since 16th March 2020. Through the Coronavirus Job Retention Scheme and the continued generosity of our core funders and donors, the majority of staff have been able to be retained and the organisation remains stable. However, with the current social distancing measures in place as a result of COVID-19, it is nigh on impossible to continue to present work on our stages in a financially viable way in the longer term. The future is naturally uncertain as we face one of the biggest challenges in the Trust’s history. With challenge comes opportunity as we look to new ways of working with the help of new partners. The extensive organisation change process that we delivered during 2018-19 and 2019-20 has meant that the organisation is able to better weather the current adverse conditions. The approval of the 2020-22 Business Plan was a strong endorsement from our funders of ongoing support. In order for the Trust to best respond to the current environment it must be prepared to embrace change and adapt to ensure it can both survive and thrive in future. Following Gemma Bodinetz’s resignation during 2020, after a wonderful contribution over 17 years as Artistic Director, the board are now focussed on putting in place an artistic leadership model that will deliver the key outcomes of the Business Plan: Artistic Innovation, Embedded Talent Development and Progressive Social Change.

Related parties and co-operation with other organisations In May 2019, the Interim Chief Executive was appointed to the board in accordance with the revised Memorandum and Articles of the Charity. Up until that point, Artistic Director (Gemma Bodinetz) continued to serve as a Trustee. During their respective appointments, they continued to receive their usual salary payments and to reclaim approved expenses incurred wholly in their roles as employees. This is disclosed in Note 23.


19

No other Trustees receive remuneration from their work with the Charity, however, one Trustee was paid for the provision of services in line with section 73A to 73C of the Charities Act 1993 and the Articles of Association. LMTT is the sole shareholder of two subsidiary companies as follows:

Liverpool Everyman & Playhouse Trading Ltd. manages the trading activities for the Everyman and Playhouse Theatres.

Liverpool Everyman & Playhouse Productions Ltd through which productions are commissioned.

Key management personnel pay policy

The remuneration of key management personnel is determined by the Trustees of the charity. The

Trustees consider the seniority of the post, the expertise and experience of the post holder, the local

market conditions and sector market conditions for remuneration, and benchmarking information

from similar organisations in determining the remuneration of key management personnel.

Fundraising Standards

The Charity directly employ a fundraising Development team to manage the relationships with

education partners, corporate sponsors and individual givers and donors. The team (consisting of 3

FTE staff) also develop and submit funding applications to Trust and Foundations. During the year, an

Ethical Fundraising Policy was also introduced.

Organisation

The board is ultimately accountable for ensuring the financial probity and strategic direction of the

Charity. It is the responsibility of the Trustees, in consultation with the Executive, to determine policy,

to set strategic policy targets, to implement monitoring and reporting procedures that will ensure

their fulfilment, and to approve and monitor annual budgets and business plans.

The board normally meets six times a year to set and review strategic policy and monitor the financial

health of the organisation. The scrutiny of detail is undertaken by suitably skilled subsidiary companies

(LEPT and LEPP) or sub-committees of the board, each of which report to the main board.

Statement of Disclosure to Auditors So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information


20

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Governance Code

The LMTT board believes that good governance in charities is fundamental to their success. The Charity Governance Code is a practical tool to help charities and their Trustees develop high standards of governance as it enables and supports a charity’s compliance with the law and relevant regulations. It also promotes a culture where everything works towards fulfilling the charity’s vision.

Through ensuring each element of the Code is met (see above diagram), Trustees hope to both improve the transparency and breadth of reporting and demonstrate exemplary leadership and governance on behalf of staff, stakeholders and supporters.

The Trustee Role and Charity Context

All LMTT Trustees:

are committed to LMTT’s cause and have joined the board because they want to help the charity

deliver its purposes most effectively for public benefit

recognise that meeting LMTT’s stated public benefit is an ongoing requirement

understand their roles and legal responsibilities, and, in particular, have read and understand:

o the Charity Commission’s guidance The Essential Trustee (CC3)

o their charity’s governing document

are committed to good governance and want to contribute to LMTT’s continued improvement

With continued improvement in mind, the LMTT board aspire to deliver the principles of the

Governance Code as outlined below. A Governance Code working group has been established to

consider LMTT’s performance against each of these principles.

1: Organisational Purpose The board is clear about the charity’s aims and ensures that these are being delivered effectively and sustainably.

2: Leadership LMTT is headed by an effective board that provides strategic leadership in line with the charity’s aims and values.


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3: Integrity The board acts with integrity, adopting values and creating a culture which helps achieve the organisation’s charitable purposes. The board is aware of the importance of the public’s confidence and trust in charities, and Trustees undertake their duties accordingly.

4: Decision-Making, Risk and Control The board makes sure that its decision-making processes are informed, rigorous and timely, and that effective delegation, control and risk-assessment, and management systems are set up and monitored.

5: Board Effectiveness The board works as an effective team, using the appropriate balance of skills, experience, backgrounds and knowledge to make informed decisions.

6: Diversity The board’s approach to diversity supports its effectiveness, leadership and decision making.

7: Openness and Accountability The board leads the organisation in being

transparent and accountable. The charity is

open in its work, unless there is good reason

for it not to be.

Directors The directors of the Charity are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees. Except as noted below, the Trustees of the Charity who served during the year and up to the date of this report are listed below:

Current Directors/Trustees A Nixon (Chair) P Bennett-Jones P Bibby (Vice Chair) H Blakeman N M Russell (appointed 22 July 20) A Causley M Clarke P Corcoran (Vice Chair)

M Da Vanzo (CEO – appointed 1 April 20) M Dunham * P Evans (appointed 22 July 20) B Hutchinson C Mankabady (appointed 22 July 20) C Roberts-Cherry (appointed 2 May 19) Cllr W Simon

Former Directors/Trustees K Cody (resigned 29 August 19) F Gibson (Interim CEO) (resigned 31 March 20)

G Reddrop (Bodinetz) (resigned 2 May 19) C Dove (resigned 28 November 19)

*Sadly, M. Dunham passed away on the 12th July which was formally recorded by the Board at its meeting on the 22nd July.

Company Secretary M Da Vanzo

Reference and Administrative Details Registered office Everyman Theatre 5-11 Hope Street Liverpool Merseyside L1 9BH

Bankers Lloyds Bank Merchant's Court, 2 - 11 Lord Street Liverpool L2 1TS

Auditor

RSM UK Audit LLP 14th Floor, 20 Chapel Street Liverpool L3 9AG

Andrea Nixon Chair DATE: 25th November 2020


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Statement of Trustees’ Responsibilities The Trustees who are also directors of The Liverpool and Merseyside Theatres Trust Limited for the purposes of company law are responsible for preparing the report of the Trustees 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 charitable Company and the Group and of the incoming resources and application of resources, including the income and expenditure, of the charitable Group for that period. 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 judgments and estimates that are reasonable and prudent; and

Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable Company will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable Company 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 charitable Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Board Composition At the Annual General Meeting on 10th November 2005, a Special Resolution was passed to limit Trustees' service to up to two consecutive terms of three years. A board evaluation and skills audit is delivered annually, which are methods of assessing the organisation's changing needs and reviewing the need for additional skills and expertise on the board. If a need is identified then new members are sought in the appropriate areas. All proposed board members are considered for their suitability before being interviewed and a proposal being put to the full board for decision.

Note 23 Related Party Disclosures, details any Trustee interest in the Charity or any of its group companies (together “the Group”), including the Chief Executive who was appointed to the board in accordance with the revised Memorandum and Articles of the Charity.

The board may make new appointments within the above parameters at any time, with any such appointees being re-elected at the next Annual General Meeting. Induction of new Trustees includes the issuing of current financial statements and projections, forthcoming artistic programme details, and guidelines for good practice (such as those published by the Charities Commission), in the context of an explanatory meeting with the Company Secretary. All Trustees undertake a programme of induction upon commencement and Trustee training is provided on relevant topics at various times in the year. All Trustees are covered by the Charity’s directors and officers insurance.

Andrea Nixon Chair DATE: 25th November 2020

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF


23

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LIVERPOOL AND MERSEYSIDE THEATRES TRUST LIMITED

Opinion

We have audited the financial statements of The Liverpool and Merseyside Theatres Trust Limited (the ‘parent charitable company’) and its subsidiaries (the ‘Group’) for the year ended 31st March 2020 which comprise the Consolidated Statement of Financial Activities (including Consolidated Income and Expenditure Account), the Group and Company Balance Sheet, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

Give a true and fair view of the state of the Group’s and the parent charitable company’s affairs as at 31 March 2020 and of the Group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

Have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We have been appointed auditors under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK)

require us to report to you where:

The Trustees use of the going concern basis of accounting in the preparation of the financial

statements is not appropriate; or

The Trustees have not disclosed in the financial statements any identified material

uncertainties that may cast significant doubt about the Group’s or parent charitable

company’s ability to continue to adopt the going concern basis of accounting for a period of

at least twelve months from the date when the financial statements are authorised for issue.



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Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees Annual Report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

The information given in the Trustees Annual Report, which includes the Directors’ Report and the Strategic Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

The Directors’ Report and the Strategic Report included within the Trustees Annual Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Trustees’ Annual Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

The parent charitable company financial statements are not in agreement with the accounting records and returns; or

Certain disclosures of Trustees’ remuneration specified by law are not made; or

We have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 22, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.



ln preparing the financial statements, the Trustees are responsible for assessing the Group's andparent charitable company's abilityto continue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis of accounting unless the Trustees eitherintend to liquidate the group or parent charitable company or to cease operations, or have norealistic alternative but to do so.

Ar-;ditor.'.s respofrsibriities fcr'" rhr: audit of tfre financiai steteriients

Our objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor'sreportthat includes ouropinion. Reasonable assurance is a high level of assurance, but is notaguarantee that an audit conducted in accordance with lSAs (UK) will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is provided onthe Financial Reporting Council's website at http:y'/www.frc.ore"uk/auditorsresponsib!.I!iCt. Thisdescription forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance withChapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that wemight state to the charitable company's members those matters we are required to state to them inan auditor's report and for no other purpose. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than the charitable company and the charitablecompany's members as a body, for our audit work, for this report, or for the opinions we haveformed.

d4MW k^d^l UJAnna Spencer-Gray {Senior Statutory Auditor}

For and on behalf of RSM UK Audit LLP, Statutory AuditorChartered Accountants14th Floor20 Chapel StreetLiverpoolL3 gAG

l.tz . LO

25


26

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT)

For the year ended 31st March 2020

Unrestricted

funds

Restricted

funds

Total funds

2020

Total funds

2019

Note £'000 £'000 £'000 £'000

INCOME

Donations and Legacies 133 - 133 86

Charitable Activities 2,4 4,610 606 5,216 4,875

Other Trading Activities 2,6 703 - 703 796

Investments - - - -

TOTAL INCOME 5,446 606 6,052 5,757

EXPENDITURE

Raising Funds 7 (563) - (563) (628)

Charitable Activities 8 (4,875) (1,072) (5,947) (6,062)

TOTAL EXPENDITURE (5,438) (1,072) (6,510) (6,690)

NET INCOME / (EXPENDITURE) 8 (466) (458) (933)

NET MOVEMENT IN FUNDS 8 (466) (458) (933)

RECONCILIATION OF FUNDS

Total funds brought forward 18 547 20,944 21,491 22,424

Net Expenditure 8 (466) (458) (933)

Transfer Between Funds - - - -

TOTAL FUNDS CARRIED FORWARD 555 20,478 21,033 21,491 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 29 to 49 form part of these financial statements.


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Company Registration Number: 03802476

GROUP AND COMPANY BALANCE SHEET AS AT 31ST MARCH 2020

As permitted by Section 408 of the Companies Act 2006, a separate statement of financial activities for The Liverpool and Merseyside Theatres Trust Limited is not presented. The unrestricted fund surplus for the financial period of the Company was £0k. The restricted fund loss for the period (including depreciation) was -£466k. Therefore, the combined loss for the financial period of the Company was £466k (31 March 2019: £933k), The notes on pages 29 to 49 form part of these financial statements.

These financial statements on pages 26 to 49 were approved and authorised for issue by the board of Directors on 25th November 2020. Signed on behalf of the Trustees

P Bibby Director

A Nixon Chair

2020 2019 2020 2019

Note £'000 £'000 £'000 £'000

FIXED ASSETS

Tangible assets 12 20,588 21,393 20,588 21,393

Investments 13, 26 - - - -

20,588 21,393 20,588 21,393

CURRENT ASSETS

Stocks 14 3 14 - 1

Debtors- due in less than one year 15 353 548 370 693

Cash in bank and in hand 1,106 575 1,028 348

1,462 1,137 1,398 1,042

CURRENT LIABILITIES

Creditors: amounts falling due within one year 16 (1,017) (1,039) (972) (955)

(1,017) (1,039) (972) (955)

NET CURRENT ASSETS 445 98 426 87

NET ASSETS 21,033 21,491 21,014 21,480

FINANCED BY:

Unrestricted funds: Operating 18 555 547 536 536

Unrestricted funds: Designated 18 - - - -

TOTAL UNRESTRICTED FUNDS 18 555 547 536 536

Restricted funds 18 20,478 20,944 20,478 20,944

TOTAL FUNDS 21,033 21,491 21,014 21,480

Group Company



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CONSOLIDATED STATEMENT OF CASHFLOWS For the year ended 31st March 2020

Note 2020 2019

£'000 £'000

NET CASH FROM OPERATING ACTIVITIES 24 531 485

INVESTING ACTIVITIES

Purchase of tangible fixed assets - (187)

NET CASH USED IN INVESTING ACTIVITIES - (187)

NET CHANGE IN CASH AND CASH EQUIVALENTS 531 298

Cash and cash equivalents at beginning of year 575 277

CASH AND CASH EQUIVALENTS AT END OF YEAR 1,106 575

Cash and cash equivalents consist of:

Cash at bank and in hand 1,106 575

CASH AND CASH EQUIVALENTS AT END OF THE YEAR 1,106 575

THE LIVERPOOL AND MERSEYSIDE THEATRES TRUST LIMITED NOTES AND ACCOUNTING POLICIES

29

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

General information

The Liverpool and Merseyside Theatres Trust Limited (“the Company”, “the Charity” or “LMTT”) was incorporated on 8th July 1999 (Company Registration No. 03802476). It is a private company limited by guarantee and it is governed by its Memorandum of Association dated 17th June 1999 (and as amended 22nd September 2011, 10th November 2005, 23rd February 2005). LMTT is a registered charity (No.1081229) and is domiciled and incorporated in England and Wales. The address of the Company’s registered office is included on page 21 and its principal place of business is at this address with a secondary place of business at the Playhouse Theatre, Williamson Square, Liverpool, L1 1EL. The Group consists of Liverpool and Merseyside Theatres Trust Limited, Liverpool Everyman and Playhouse Productions Limited and Liverpool Everyman and Playhouse Trading Limited.

Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) (effective 1st January 2015) – (Charities SORP) (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). Monetary amounts in these financial statements are rounded to the nearest whole £1,000, except where otherwise indicated. A summary of the more important Group accounting policies, which have been applied consistently throughout the current and prior financial periods, is set out below.

Going Concern

We have concluded this financial year (2019-20) in a reasonably strong position as our focus for the previous two

years has been on sustained financial recovery. We brought about a significant organisational change that

included changes in senior leadership, a full staffing restructure, strengthening of the finance function and a

change in approach to planning and budgeting for artistic work.

In response to the COVID-19 pandemic, the Theatres’ forced closure and impact on our earned income, for 2020-

21 we prepared an emergency budget on the assumption we would enter a period of hibernation, planning on

the basis we would be dark for most of the year. This included removing all variable production and staffing costs,

ceasing service contracts and cutting all discretionary non-pay spend.


NOTES AND ACCOUNTING POLICIES

30

In terms of staffing, we had a freeze on recruitment and allowed a number of fixed-term contracts to end. We

also undertook a staffing review in our commercial trading arm that resulted in redundancies. We have utilised

the Coronavirus Job Retention Scheme, with all but a core skeleton staff on furlough through to October 2020. In

addition to this, we have built contingency reserves that are currently uncommitted and will further benefit our

closing reserves position should these not be required.

These actions, along with a successful application to Governments the Cultural Recovery Fund (CRF) for £389k

financial support ensures we will conclude the 2020-21 Financial year with strong unrestricted cash levels and

positive free reserves.

As we look forward to 2021-22, the investment from the CRF into both our physical and digital infrastructure will

allow us to continue producing theatre that can be delivered to a live socially distanced audience, and as digital

content for a wider reach.

The key assumptions we’ve made for the 2021-22 year are that social distancing stays in place well into 2021,

with limited capacity at both the Playhouse and Everyman. We have not assumed a return of Visiting Work and its

associated financial contribution, and we have projected minimal activity from Commercial Trading in line with

the reduced artistic programme. Despite the impact these assumptions have on generated income, we are

confident that through continued cost control and the efficiencies generated from the CRF, we aim to conclude

the 2021-22 financial year in a sound financial position.

Current Situation ACE In March 2020, Arts Council England (ACE), confirmed a multi-year grant of £3.33m in support of the LMTT

Business Plan for the period 1st April 2020 to 31st March 2022. It would be paid in two instalments of £1.68m for

20/21 and £1.65m for 2021-22. It is expected that LMTT will start an NPO application process for 2022-23 and

beyond in October 2021.

Current Situation LCC LMTT continue to be supported in 2020-21 with £589k of grant funding from the Liverpool City Council (LCC) via

Culture Liverpool. This funding is the second year of a three year Cultural Arts Investment Programme grant.

While the grant was/has been awarded on a three year basis through to the end of 2021-22, LCC Cabinet still

confirms grant funding annually in March.

In light of the uncertainty presented by the COVID-19 pandemic, the Trustees have carefully considered the

financial projections to March 2022 to satisfy themselves of the financial resilience of the organisation, with no

material uncertainty, over that period. The Trustees have considered ongoing support from Arts Council England

(ACE) and Liverpool City Council (LCC), together with the level of funds held, and the expected level of income,

expenditure and projected cash flows over this period. A confirmed offer of funding for the year ending 31st

March 2022 has been received from ACE, and LCC has indicated that a continued funding commitment is likely

into the next financial year. The Trustees have considered these matters and have concluded that the level of

reserves and liquidity for the Group and Charity is sufficient to continue trading for a period of at least 12 months

from the date of approving the financial statements, and do not believe there is a material uncertainty in regards

of going concern. Therefore, the financial statements have been prepared on a going concern basis.



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Reduced disclosures

In accordance with FRS 102, the Company has taken advantage of the exemptions from the following disclosure requirements;

Section 7 ‘Statement of Cash Flows’ – Presentation of a Statement of Cash Flow and related notes and disclosures

Section 11 ‘Basic Financial Instruments’ & Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in the statement of financial activities, and

Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel

Basis of consolidation

The consolidated financial statements incorporate those of The Liverpool and Merseyside Theatres Trust Limited and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). All financial statements are made up to 31st March 2020. All intra-group transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.

Functional and presentational currencies

The consolidated financial statements are presented in sterling which is also the functional currency of the Company and the Group.

Income

Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income is measured at the fair value of consideration receivable, less any discounts and VAT deductions.

Donations and legacies

Donations and legacies are recognised as income when the Charity is entitled to the income, the receipt of economic benefit from the use by the Charity of the item is probable and that economic benefit can be measured reliably.

Grants received

Income from government and other grants, whether ‘capital’ or ‘revenue’ grants, is recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.



32

In some instances, multi-year funding agreements which result in funds being paid over two years or longer are procured. Provided no conditions attach to the receipt of contributions scheduled to be received in future years, the charity SORP requires the Charity to recognise income from restricted grants in the period in which they are secured rather than the period they are received. Grants are then released against expenditure in the period or periods that grant restrictions are met, including requirements for defrayment. The Charity accounts for the receipt as income in the period the grant is secured and accounts for the utilisation of the grant as a reduction in costs in the period it is utilised.

Investment income

Investment income comprises bank interest. Interest income is accrued on a time apportioned basis by reference to the principal invested at the effective interest rate.

Expenditure

Expenditure net of associated theatre tax credits is charged on an accruals basis and is allocated between:

expenditure incurred directly in the fulfilment of the Charity's objectives expenditure incurred in support costs

Expenditure net of associated theatre tax credits in respect of productions is held within debtors and is released to the income and expenditure account in the year in which the majority of performances falls.

Support costs

Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities, and include building running costs, fundraising and administration costs. Governance costs include expenditure on administration of the Charity and its subsidiaries and compliance with constitutional and statutory requirements.

Co-production income and costs

For productions which are undertaken as co-productions with other theatre companies, where set-up costs are shared, production costs which are wholly incurred by the Charity may be recharged to the co-producing company depending on the nature of the specific agreement. Any recharged costs are recognised as income related to the production.

Operating leases

Rentals paid under operating leases are charged to the statement of financial activities on a straight-line basis over the period of the lease.

Pension costs

The pension costs charged to the Statement of Financial Activities represent the amount of the contributions

payable to defined contribution schemes in respect of the accounting period.



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Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of a production where the majority of performances falls in the following financial year or are capitalised as a tangible fixed asset. 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 Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, excluding freehold and long leasehold land, at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful life as follows:

Freehold and long leasehold buildings, and building improvements at the rate of 2% - 10% per annum;

Vehicles and production, office and computer equipment at rates varying between 10% and 25% per annum;

Fixtures and fittings at 10%.

Residual value is calculated using prices prevailing at the reporting date, after estimated cost of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life.

Impairments of fixed assets

An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the Group estimates the recoverable amount of the asset. Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. All other impairment losses are recognised in the statement of financial activities. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in the statement of financial activities. On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset’s revised carrying amount (less any residual value) over its remaining useful life.

Fixed asset investments

In the separate accounts of the Company, interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. Interests in subsidiaries are assessed for impairment at each reporting date. Any impairments losses or reversals of impairment losses are recognised immediately in the statement of financial activities.



34

Stock

Stock is included at the lower of cost or selling price less costs to complete and sell. Net realisable value is based upon estimated selling price less further costs expected to be incurred to completion and disposal. Provision is made for obsolete and slow-moving items. At each reporting date, the Group assesses whether stocks are impaired or if an impairment loss recognised in prior periods has reversed. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the statement of financial activities. Reversals of impairment losses are also recognised in the statement of financial activities.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments that are immediately accessible, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Restricted Funds

Restricted funds relate to grants and other incoming resources which must be expended on specific activities of the Charity, including the acquisition of tangible fixed assets, as laid down by the donors of the funds.

Unrestricted Funds

The unrestricted fund represents the funds to provide, at the discretion of the Trustees, for the working capital of the Charity and for the purchase of tangible fixed assets which are not funded by restricted funds.

Designated Funds

Designated Funds are unrestricted funds that have been set aside by the Trustees for specific purposes. More details are found in note 18 to the financial statements.

Judgments and key sources of estimation uncertainty

In the application of the Group’s accounting policies, the Trustees are required to make judgments, 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.


35

2. INCOME

3. EXPENDITURE ON ACTIVITIES

4. INCOME FROM CHARITABLE ACTIVITIES

2020 2019

£'000 £'000

Unrestricted

Box office income 2,157 2,094

Income from co-productions 134 118

Education and literary income 25 38

Membership 11 24

2,327 2,274

Restricted and Unrestricted

Grant income (note 5) 2,889 2,6015,216 4,875

Unrestricted Restricted Unrestricted Restricted

funds funds 2020 funds funds 2019

£'000 £'000 £'000 £'000 £'000 £'000

Donations and Legacies 133 - 133 86 - 86

Charitable Activities 4,610 606 5,216 4,604 271 4,875

Other Trading Activities 703 - 703 796 - 796

5,446 606 6,052 5,486 271 5,757

Unrestricted Restricted Unrestricted Restricted


£'000 £'000 £'000 £'000 £'000 £'000

Raising Funds (563) - (563) (628) - (628)

Charitable Activities (4,875) (1,072) (5,947) (4,968) (1,094) (6,062)

(5,438) (1,072) (6,510) (5,596) (1,094) (6,690)



36

5. GRANTS RECEIVABLE

2020 2019

£'000 £'000

Unrestricted

Arts Council England 1,650 1,650

Liverpool City Council 633 633

Other - 47

2,283 2,330

Restricted

Capital - 125

Revenue 606 146

606 271

Total grants receivable 2,889 2,601

6. OTHER TRADING ACTIVITIES

2020 2019

£'000 £'000

Unrestricted

Catering, events and bars 673 773

LMTT Retail 30 23

Total trading activities income 703 796

7. RAISING FUNDS

2020 2019

£'000 £'000

Unrestricted

Catering, events and bars (546) (610)

LMTT Retail (17) (18)

(563) (628)


37

8. COSTS OF CHARITABLE ACTIVITIES

9. EMPLOYEE INFORMATION

2020 2019

£'000 £'000

Wages and salaries 2,589 2,624

Social security costs 203 193

Other pension costs 45 36

2,837 2,853 The average monthly number of employees during the period was as follows:

2020 2019

Theatre activities 169 173

Engagement, Training & Artistic Development 11 12

Catering 41 35

221 220

Unrestricted Restricted 2020 Unrestricted Restricted 2019

£'000 £'000 £'000 £'000 £'000 £'000

Activities undertaken directly

Artistic 1,511 399 1,910 1,905 327 2,232

Technical 882 - 882 912 - 912

Theatre Tax Credits (255) - (255) (410) - (410)

2,138 399 2,537 2,407 327 2,734

Support costs

Operations & commercial 916 - 916 1,019 - 1,019

Administrative & building

expenses1,004 - 1,004 757 - 757

Marketing & sales 658 - 658 704 - 704

Depreciation & Impairment 132 673 805 59 767 826

2,710 673 3,383 2,539 767 3,306

Governance Costs

Audit fees 24 - 24 19 - 19

Other fees to auditors 3 - 3 3 - 3

27 - 27 22 - 22

4,875 1,072 5,947 4,968 1,094 6,062


NOTES AND ACCOUNTING POLICES

38

The average number of full time equivalent employees during the period was as follows:

2020 2019

Theatre activities 83 83

Engagement, Training & Artistic Development 10 11

Catering 13 14

106 108 Note: Should the number of casual staff be reflected using period worked in year, the headcount staff number would be 110 (2019: 120) There were two employees whose salary was in the range £60k to £70k. One employee whose salary was in the

range of £80k to £90k. And one employee whose salary was in the range of £110k to £120k. (2019: one employee

in the salary range £60k to £70k and one employee in the salary range £80k to £90k). Pension contributions

totalling £2,493 were paid in respect to these staff into a defined contribution scheme (2019: £4,251).

Two employees were Trustees during the current year and continued to receive their usual salary payments. See

note 23 for further information.

The key management personnel of the parent Charity and of the Group is defined as the Trustees together with a

Management Group, led by the Executive. The total employee benefits of the key management personnel of the

trust were £575k (2019: £501k). Other than the Joint Chief Executives as explained in note 23, no other Trustee

received any remuneration or expenses.

10. ANALYSIS OF EXPENDITURE

Fees payable to the company’s auditor for the audit of the company’s financial statements include an amount

that covers the subsidiaries, thus the subsidiaries audit fees are paid for by the parent.

Total expenditure is stated after charging/(crediting):

2020 2019

£'000 £'000

Depreciation - owned assets 738 826

Fixed asset Impairment 67 -

Hire of plant and machinery under operating leases - 7

Hire of other assets under operating leases 20 25

Fees payable to the Company’s auditor for the audit of the

Company’s annual financial statements24 19

Fees payable to the Group’s auditor for the audit of the

Subsidiaries annual financial statements- -

Fees payable to the Group’s auditors for non-audit services:

- taxation services 3 3

Total non-audit fees 3 3



39

11. TAX ON PROFIT ON ORDINARY ACTIVITIES

No provision is made for taxation as the Charity is entitled to the various exemptions afforded by the Corporation Tax Act 2010.

12. TANGIBLE FIXED ASSETS

Freehold land and buildings consists of the land and building at 5-11 Hope Street, Liverpool Depreciation on Production equipment includes £66k relating to the impairment of fixed assets. These assets related to the physical set of the Company season and were being held in offsite storage. After a review of stored assets, it was confirmed this kit had no resale value and would be unlikely to be used again in the organisation. Plans to reduce cost and rationalise offsite storage requirements would likely result in the disposal of these assets, however the impact of COVID-19 has prevented the completion of this project. Therefore these assets are included within the cost of production equipment, but have been impaired to a NBV of zero.

Long-

leasehold Vehicles and

land and production

Freehold buildings & Fixtures office and

land and buildings and computer

buildings Improvem'ts fittings equipment Total

£'000 £'000 £'000 £'000 £'000

Group and Company

Cost

At 1 April 2019 20,769 3,501 840 1,984 27,094

Additions - - - - -

Disposals - - - - -

At 31 March 2020 20,769 3,501 840 1,984 27,094

Depreciation

At 1 April 2019 2,507 1,265 569 1,360 5,701

Eliminated on disposal - - - - -

Impairment - - - 67 67

Charge for the period 415 120 55 148 738

At 31 March 2020 2,922 1,385 624 1,575 6,506

Net book value

At 31 March 2020 17,847 2,116 216 409 20,588

At 31 March 2019 18,262 2,236 271 624 21,393



40

13. FIXED ASSET INVESTMENTS

2020 2019

£ £

Cost and net book amount:

Subsidiary undertakings 2 2

Company

Details of investments of the Company in its principal subsidiary undertakings at 31 March 2020 are given in note 26.

14. STOCKS

2020 2019 2020 2019

£'000 £'000 £'000 £'000

Consumables 3 14 - 1

Group Company

At 31 March 2020, the total amount of stock recognised as an expense was £232k (2019: £286k). An impairment loss of £11k (2019: £0k) was recognised following the temporary closure of the theatres following the COVID-19 outbreak. This covered all Dry Goods, Sweets & Ices and some Wet Stock. The value of wet stock on site is still subject to an independent review, so the figure written off was based on estimates.

15. DEBTORS

2020 2019 2020 2019

£'000 £'000 £'000 £'000

Amounts falling due within one year:

Trade debtors 38 39 30 5

Other debtors 74 117 52 118

Amounts owed by Group undertakings - - 222 434

Prepayments 66 110 65 109

Social Security and Other Taxes 175 282 1 27

353 548 370 693

Group Company

At 31 March 2019, other debtors included Liverpool City Council’s final instalment of £63k (2019: £63k) and restricted grants relating to activity in later years of £7k (2019: £13k).



41

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020 2019 2020 2019

£'000 £'000 £'000 £'000

Trade creditors 165 176 153 156

Taxation and social security 64 71 46 48

Accruals 381 447 379 444

Deferred income 407 345 394 307

1,017 1,039 972 955

Group Company

Deferred income relates to advanced ticket sales income received in one year which relates to performances that will take place in the following year.

2020 2019 2020 2019

£'000 £'000 £'000 £'000

Deferred production income brought forward 345 430 307 348

Amounts deferred in year 407 345 394 307

Amounts released from previous years (345) (430) (307) (348)

Deferred production income carried forward 407 345 394 307

17. FINANCIAL INSTRUMENTS

The carrying amounts of financial instruments at 31 March 2020 were:

Financial assets consist of trade and other debtors. Financial liabilities consist of trade creditors and accruals.

The carrying amounts of financial instruments 2020 2019 2020 2019

at 31 March 2020 were: £'000 £'000 £'000 £'000

Financial assets:

Debt instruments measured at amortised cost 111 156 304 557

Financial liabilities:

Measured at amortised cost 546 623 532 600

Group Company


42

18. MOVEMENT IN FUNDS

As at 1 Transfer As at 31

April 2019 Income Expenditure / Gift Aid March 2020

Group £'000 £'000 £'000 £'000 £'000

Unrestricted funds: Operating 547 5,446 (5,438) - 555

Unrestricted funds: Designated - - - - -

Total unrestricted funds 547 5,446 (5,438) - 555

Capital grants

Playhouse refurbishment (LCC/ERDF) 894 - (28) - 866

Playhouse refurb (English Partnership) 233 - (7) - 226

Playhouse Acquisition (LCC) 282 - (9) - 273

Everyman Redevelopment 16,248 - (533) - 15,715

11 Hope street (Art council) 965 - (25) - 940

5-9 Hope Street (ACE/NWDA) 1,777 - (44) - 1,733

Playhouse refurbishment (LCC) 534 - (27) - 507

20,933 - (673) - 20,260

Revenue grants 11 606 (399) - 218

Total restricted funds 20,944 606 (1,072) - 20,478

Total funds 21,491 6,052 (6,510) - 21,033

Comprising:

LMTT 21,480 5,513 (5,979) - 21,014

LEPP (see note 26) - 2,199 (2,199) - -

LEPT (see note 26) 11 569 (561) - 19

Elimination of consolidation entries - (2,229) 2,229 - -

21,491 6,052 (6,510) - 21,033


43

MOVEMENT IN FUNDS (CONTINUED)



Group £'000 £'000 £'000 £'000 £'000



Talent Fund 81 - (81) - -

Total designated funds 81 - (81) - -


Capital grants







Playhouse refurbishment (LCC) 430 125 (21) - 534

21,575 125 (767) - 20,933

Revenue grants 192 146 (327) - 11


Total funds 22,424 5,757 (6,690) - 21,491

Comprising:

LMTT 22,338 5,239 (6,097) 21,480

LEPP (see note 26) - 2,347 (2,347) -

LEPT (see note 26) 86 705 (624) (156) 11

Elimination of consolidation entries (2,534) 2,378 156 -

22,424 5,757 (6,690) - 21,491


44

MOVEMENT IN FUNDS



Company £'000 £'000 £'000 £'000 £'000


Unrestricted funds: Designated - - - - -


Capital grants







Playhouse refurbishment (LCC) 534 - (27) - 507

20,933 - (673) - 20,260

Revenue grants 11 606 (399) - 218


Total funds 21,480 5,513 (5,979) - 21,014


45

MOVEMENT IN FUNDS (CONTINUED)



Company £'000 £'000 £'000 £'000 £'000



Talent Fund 81 - (81) - -

Total designated funds 81 - (81) - -


Capital grants







Playhouse refurbishment (LCC) 430 125 (21) - 534

21,575 125 (767) - 20,933

Revenue grants 192 146 (327) - 11


Total funds 22,338 5,239 (6,097) - 21,480 Capital grants have been received from a number of funders including Arts Council England, Liverpool City Council, English Partnerships, North West Development Agency and ERDF, for a number of refurbishment and redevelopment projects at the Charity’s two theatres in Liverpool: the Everyman Theatre and the Liverpool Playhouse. Capital grants are treated as incoming resources in the year of receipt. Capital grants expenditure includes £674k (2019: £767k) in relation to depreciation of tangible fixed assets acquired with restricted funds in prior years. Restricted revenue grants of £399k were committed in the year from, Arts Council England, The Ken Dodd Foundation, Backstage Trust and former alumni of the Everyman and Playhouse Theatres to support specific activity undertaken by the Theatres, including support for the transformation programme. Restrictions vary by funder and targeted areas such as the organisational change programme, support of YEP and various engagement work. The £218k of restricted revenue funds, is represented by £198k cash and £20k Debtors.



46

19. ANALYSIS OF CONSOLIDATED NET ASSETS BETWEEN FUNDS

Fund balances at 31 March 2020 are represented by:

20. OTHER FINANCIAL COMMITMENTS

The total future minimum lease payments under non-cancellable operating leases of the Group are as follows:

21. CONTINGENT LIABILITIES

Company

A condition of grants received of £6.2m for the purchase of numbers 5 – 11 Hope Street is made up of fixed and floating charges on the property. In addition, certain grants from the Arts Council and NWDA are repayable in the event of the sale of the property or the liquidation of the Company. The Everyman Theatre redevelopment was part-funded by £5.9m grant from ERDF. A proportion of this grant could become repayable should there be a change in the proportion of the building used for commercial activity.

Restricted Unrestricted Restricted Unrestricted


£'000 £'000 £'000 £'000 £'000 £'000

Group

Tangible fixed assets 20,260 328 20,588 20,933 460 21,393

Cash at bank and in hand 198 908 1,106 11 564 575

Grants within other debtors 20 7 27 - 77 77

Other current assets - 329 329 - 485 485

Current liabilities - (1,017) (1,017) - (1,039) (1,039)

20,478 555 21,033 20,944 547 21,491

Company

Tangible fixed assets 20,260 328 20,588 20,933 460 21,393

Cash at bank and in hand 198 830 1,028 11 337 348

Grants within other debtors 20 7 27 - 77 77

Other current assets - 343 343 - 617 617

Current liabilities - (972) (972) - (955) (955)

20,478 536 21,014 20,944 536 21,480

Land and Land and

buildings Other Total buildings Other Total

2020 2020 2020 2019 2019 2019

Group and Company £'000 £'000 £'000 £'000 £'000 £'000

Amounts due:

- within one year 15 - 15 15 3 18

- between two and five years 29 - 29 32 - 32

- over five years 550 - 550 560 - 560

594 - 594 607 3 610



47

22. CAPITAL COMMITTMENTS

2020 2019

Group and Company £'000 £'000

Contracted but not provided for in the

financial statements- -

23. RELATED PARTY DISCLOSURES

Transactions involving directors

During 2019-20 the Artistic Director and Interim Chief Executive (G Bodinetz and F Gibson) were members of the board. They received salary payments and reclaimed approved expenses in their roles as employees, including reimbursement of travel and hospitality costs. In May 2019, G Bodinetz resigned from the board and F Gibson was appointed as interim CEO simultaneously. Upon appointment, the new CEO (M Da Vanzo) was appointed to the board on 1st April 2020.

B Hutchinson, a member of the board, received payment for financial consulting services to the Trust in the Year ended 31st March 2019:

2020 2019

£ £

Consulting Services 0 36,920

Reimbursement of expenses 0 727

Balance at end of period 31st March 2020 (2019) - - A Nixon, chair of the board, received payment for consulting services to the Trust in the Year ended 31st March 2020:

2020 2019

£ £

Consulting Services 9,800 15,000

Reimbursement of expenses - -

Balance at end of period 31st March 2020 (2019) - -

D Aydon, G Bodinetz, F Gibson D Aydon, G Bodinetz,

Executive Artistic Executive Executive Artistic

Director Director Director Director Director

Transactions during the period £ £ £ £ £

Gross salary - 82,400 116,198 68,868 80,784

Employer pension contributions - 1,316 - 3,443 807

Reimbursement of expenses - 0 480 601 182

Balance at end of period 31st March 2020 (2019) - - - - -

2020 2019



48

Transactions and Balances with Trading Subsidiaries 2020 2019

£'000 £'000

Transactions during the period

Liverpool Everyman and Playhouse

Production services provided to LMTT 2,199 2,347

Production services provided by LMTT (2,395) (2,630)


Trading Limited

Donation to LMTT - 156

Payroll recharges from LMTT (301) (323)

Service and overhead charges from LMTT(30) (30)

Recharge of cost of sales from LMTT - -

Balances at end of period


Productions Limited 197 283


Trading Limited 26 179

24. RECONCILIATION OF NET OUTGOING RESOURCES TO NET CASH USED IN OPERATIONS

2020 2019

£'000 £'000

Net expenditure (458) (933)

Adjustments for:

Depreciation 739 826

Impairment 66 -

Decrease in stocks 11 -

Decrease in debtors 195 682

Decrease in creditors (22) (90)

Cash generated from operations 531 485

25. RETIREMENT BENEFITS

The Company contributes to defined contribution pension schemes for the benefit of the employees. The assets of the scheme are administered by Trustees in funds independent from those of the Charity.



49

Pension costs are allocated to activities according to where the related staffing costs have been incurred. The employer’s contribution made to the scheme for 2020 was £45k (2019: £36k). Outstanding contributions at year end were £9k (2019: £2k).

26. SUBSIDIARY UNDERTAKINGS

The subsidiary undertakings consolidated at 31st March 2020 were as follows:

In the year ended 31st March 2020, the profits of LEPT have been retained by LEPT to support the trading arm during COVID-19. In the year ended 31st March 2020, LEPP made neither profit nor loss. The trading results and net assets of LEPP and LEPT for the year ended 31st March 2020 were as follows:

LEPP Company Registration Number: 09231907 LEPT Company Registration Number: 08287910

Name of Principle Registered Shareholding Class of Country of

undertaking activity office and voting rights shares incorporation

Liverpool Everyman Management of 5-11 Hope Street 100% Ordinary Great

and Playhouse Trading commercial activities Liverpool Britain

Limited (‘LEPT’) for the Charity L1 9BH

Liverpool Everyman Provision of 5-11 Hope Street 100% Ordinary Great

and Playhouse Productions production services Liverpool Britain

Limited (‘LEPP’) for the Charity L1 9BH

2020 2019 2020 2019

£'000 £'000 £'000 £'000

Turnover 2,199 2,347 569 705

Operating expenses (2,396) (2,630) (561) (624)

Operating profit (197) (283) 8 81

Tax credit on ordinary activities 197 283 -

Profit for the financial period - - 8 81

Net assets - - 19 11

LEPP LEPT

Documents

THE LIVERPOOL AND MERSEYSIDE THEATRES TRUST LIMITED