regent's park theatre limited

Registered number: 00759557 Charity numbefT231670

REGENT'S PARK THEATRE LIMITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED/31 DECEMBER 2017

FIRST CONTACT

2 0 AUG 2018


CONTENTS

Page

Reference and Administrative Details of the Charity, its Trustees and Advisers 1 - 2

Trustees' Report 3 - 7

Independent Auditors' Report 8-10

Consolidated Statement of Financial Activities 11

Consolidated Balance Sheet 12

Company Balance Sheet 13

Consolidated Statement of Cash Flows 14

Notes to the Financial Statements 15-34


REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2017

Trustees

Cllr Robert Davis DL Pippa Ailion (resigned 2 February 2017) Sir Peter Rogers (appointed 1 June 2017) James Reed Martin Wilkinson Samantha Spiro Stuart Griffiths

Toni Racklin (appointed 11 September 2017)

Company registered number

00759557

Charity registered number

231670

Registered office Stage Door Gate Open Air Theatre Inner Circle Regent's Park London NW1 4NU

Company secretary

William Village

Joint chief executives

Timothy Sheader William Village

Independent auditors

Nyman Libson Paul Chartered Accountants Regina House 124 Finchley Road London NW3 5JS

Page 1


REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2017

Advisers (continued)

Bankers

Coutts & Co. 440 Strand London WC2R OQS

Barclays Bank 93 Baker Street London W1A4SD

Scottish Widows 67 Morrison Street Edinburgh EH3 8YJ

Solicitors

Harbottle & Lewis LLP Hanover House 14 Hanover Square London W1S1HP

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TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2017

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Regent's Park Theatre Limited (the company and the group) for the year ended 31 December 2017. The Trustees confirm that the Annual Report and financial statements of the company and the group comply with the current statutory requirements, the requirements of the company and the group's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Since the company and group qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.

Principal Activity The principal activity of the group is presenting summer seasons of plays and the provision of bar and catering facilities at Regent's Park Open Air Theatre, together with producing plays on tour elsewhere in the UK.

Trustees ;

The trustees of the charitable company who served during the year are disclosed in the reference and administrative details on page 1.

Objectives and Activities

a. Objectives, Activities and Public Benefit

Regent's Park Open Air Theatre, at 1240 seats, is one of London's largest playhouses and usually welcomes over 130,000 people to its annual productions of plays and musicals. Although famed for its productions of Shakespeare's work, the charity has expanded the repertoire to include plays by other writers. The theatre's outdoor setting, and the scale and ambition of its annual productions, make it unique in the London, and British, theatre landscape. It is entirely unsubsidised with the vast majority of income generated at the box office.

The charity's object is the promotion of Arts and Culture primarily in the theatrical Arts but including any other media, and the promotion of any other purpose that is exclusively charitable pursuant to the law of England and Wales from time to time.

The charity is passionate about producing first class theatre for and in our unique setting which inspires, challenges, educates and entertains people from all walks of life. Our ambition is to achieve greater diversity so that our work better reflects the city and country in which we live.

Encouraging a wide and diverse audience is one of our fundamental principles and, alongside our accessible productions, we run schemes which provide discounted and complimentary tickets to those aged 18-25, school groups, teachers, under 18s, senior citizens, local residents and university students.

Whilst the charity's equitable policy is to charge for all admissions at market rates, its most expensive seats remained considerably lower than its commercial competitors in the West End.

The charity is keen to meet the needs of audiences with specific disabilities. In addition to ticket discounts for those with disabilities and their carer, wheelchair spaces are available and headsets are provided free to the hearing impaired who can also benefit from captioned performances.

Finally, all aspects of the charity's work continue to provide professional development for the creative and performing artists, technical and support staff working at the theatre.

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TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2017

b. Achievement and Performance

Writing in the Observer earlier this year, Susannah Clapp noted that in the last 10 years, Regent's Park has been, "revivified with unexpected scheduling and smart productions". "It has completely reimagined the type of shows it can stage", agreed David Benedict of The Arts Desk. In fact, according to Georgina Brown in the Mail on Sunday," these days, the quality of the productions at the Open Air Theatre in London's Regent's Park is up there with the best of the West End."

The 2017 season opened with "Drew McOnie's fabulous staging of... On The Town" (Georgina Brown, Mail on Sunday). "Lavish and imaginative" (Dominic Maxwell, The Times), it was gorgeously sung and punchily played by Tom Deering's brassy orchestra" (Mark Shenton, LondonTheatre.co.uk).

"There's never been a better time to see dance being so exhilaratingly celebrated on the London Musical stage", exclaimed Mark Shenton. Writing in the Daily Telegraph, Dominic Cavendish reported "it looks exquisite, and sounds gorgeous, rising to the bravura challenge of the score with its clarinet siren wails, clownish shifts of tempo, and thrilling collision of jazz age dreaminess with bombardments of brass".

"Howard Hudson's wonderful lighting" (Susannah Clapp, The Observer), "Peter McKintosh's set of impressionist wharfside freight containers from which a host of other locations are trucked on and off' (lan Shuttleworth, Financial Times) and his costume design "would have been unimaginable at the Open Air theatre before imaginative Timothy Sheader took over as artistic director" (Susannah Clapp, The Observer).

"As more performers than you think possible twist and spring and strut and swing in mid-air, this amphitheatre in Regent's Park fills with spring fever" (Dominic Maxwell, The Times). "Triple threat Danny Mac and co are unmissable" (David Benedict, The Arts Desk). "Siena Kelly's Ivy dances every step as if her life depends on it; Lizzy Connolly is hilarious as Hildy; and Miriam-Teak Lee ratchets up the comedy as anthropologist Claire." (Lyn Gardner, The Guardian). David Benedict's Summation: "Unmissable".

A Tale of Two Cities created a strong division of opinions amongst both audience and press as "[Matthew] Dunster and director Timothy Sheader enterprisingly wrestled Dickens away from Sunday tea-time period drama and emphasised that he was a writer who tackled the poverty and injustice of his day" (Sarah Hemmings, Financial Times).

"An angry story of the one percent screwing over the masses" (Holly Williams, WhatsOnStage), this "take on this story of sacrifice and injustice is ambitious" (Henry Hitchings, Evening Standard) in its "attempt to compare present-day Britain with the French Revolution" (Sophia Moss, The Upcoming).

Education journalist, Susan Elkin recognised that we have made a "speciality of adapting classics, mostly Shakespeare, for family audiences in recent years and this [Oliver Twist] is worth catching". "Anya Reiss' impressive adaptation fillets the story very effectively, condensing swathes of plot into neat scenes that propel Oliver's adventures forward. "It is playful, fierce...pleasingly unpatronising...[and] full of invention" said Miriam Gillinson in The Guardian and what's more, saw Susan Elkin, "the children around me seemed to be lapping it up and finding plenty to enjoy".

To conclude the season, 2016's production of Jesus Christ Superstar returned to similarly delighted audiences. The production heads to the Lyric Theatre, Chicago in April 2018.

Sunday events included: comedians Nina Conti and Russell Brand, evenings with Joe Stilgoe and Alan Titchmarsh, and the films La La Land, Close Encounters of the Third Kind and The Graduate.

Despite the UK Threat Level being briefly raised to critical and an unusually wet July and August, the season closed significantly ahead of its budgeted surplus. This was largely due to exceeding the box office target for both On The Town and Jesus Christ Superstar which was extended by a week to create a longer season than previously. The season surplus has assisted in enabling the forthcoming building project to go ahead.

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The tour of Pride and Prejudice continued until March 2017, produced by the Charity's subsidiary, Regent's Park Ventures Ltd.

Following the refurbishment of the bar and catering facilities, advance bookings and spend-per-head have continued to increase and the overall financial target for Regent's Park Enterprises (the Charity's subsidiary which operates the bar and catering facilities) was exceeded. General feedback across all the bar and catering areas has continued to be positive, particulariy the very popular Covered Dining.

c. Plans for Future Periods

The charity's current business plan runs through to the end of 2024. The trustees intend to continue their present policy of longer-term financial planning allowing for better investment and artistic breadth in its productions and greater risk at the box office for certain productions balanced by other safer productions. The charity's main activities will relate to the 2018 summer season at Regent's Park Open Air Theatre. Staff and production costs are likely to rise in line with the specific demands of the productions and inflation. The charity intends to continue its fundraising towards capital improvements in an effort to further enhance the facilities for both patrons and staff and to provide additional funds to its ongoing development. The charity will complete a major building project during 2018 to replace the theatre's kitchens and to add a second rehearsal studio to the site. The charity continues to explore ways in which to broaden its activities beyond the summer season at Regent's Park Open Air Theatre.

Reserves

The Trustees have a formal policy regarding reserves which is reviewed annually. Full details of current unrestricted, designated and restricted reserves can be found at notes 22 and 23.

Investment Policy

Under the memorandum and articles of association, the charitable company has the power to make any investment which the trustees see fit.

a. Financial review

The year ended 31 December 2017 was another good year for Regent's Park Theatre Limited with total incoming resources increasing to £7,274,899 (2016: £6,991,315) and net movement in funds increasing to £1,339,0181(2016 £1,015,561). The increase was largely as a result of £261,100 of restricted donations received in respect of the major buildings works commencing durig the year to 31 December 2017 and to be completed in the year to 31 December 2018.

The charity's wholly owned subsidiary Regent's Park Enterprises Limited operates the bar and conferencing and catering facilities. The year ended 31 December 2017 saw an increase in income to £1,060,776 (2016: £891,631) and an increase in profit to £220,421 (2016: £199,311), all of which is distributed tothe charity in the year following the year in which they are generated.

The charity's wholly owned subsidiary Regent's Park Productions Limited produces some of the productions staged at the theatre under a commissioning agreement. The year ended 31 December 2017 saw an increase in commissioning fees receivable from Regent's Park Theatre Limited to £3,178,316 (2016: £2,098,768) and an increase in theatre tax relief to £364,119 (2016: £263,587). Commissioning fees receivable are equal to the subsidiaries costs less provision for theatre tax relief and as a result broke even in the years to 31 December 2017 and 2016.

The charity's wholly owned subsidiary Regent's Park Ventures Limited operates the tours of the charity's theatrical productions. The year ended 31 December 2017 saw a decrease in box office sales to £489,264

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(2016: £542,362), a decrease in commissioning fees receivable from Regent's Park Theatre Limited to £nil (2016: £451,466) and a decrease in contributions to production costs receivable from Regent's Park Theatre Limited to £nil (2016: £512,663). The touring production ceased in March 2017 and no further touring productions were produced under a commissioning agreement in the year to 31 December 2017. Profit increased to £96,108 (2016: £nil) all of which is distributed to the charity in the year following the year in which they are generated.

Structure, governance and management

a. Governing document

Regent's Park Theatre is a charitable company limited by shares. Incorporated on 1 May 1963, registered in England and Wales number 759557 and governed by its memorandum and articles of association. The charity was registered with the Charity Commission on 13 January 1964 under charity number 231670. The shares are held exclusively by the charity tustees and are relinquished on cessation of trusteeship.

b. Organisational structure and decision making

The Board of trustees is made up of a maximum of 15 trustees. Trustees are recommended for appointment to the Board by any serving trustee based on the proposed trustee offering a specific desired skill or experience. Following vetting and recommendation by the Nominations Committee, the appointment of a new trustee is then proposed and seconded at a meeting of the trustees and passed by a majority vote.

When a new trustee is appointed, they are provided with copies of the following: minutes of the last three trustees' meetings; the charity's Governing Document; the charity's Business Plan; the charity's Governance Policies; and the Charity Commission's document "CC3 Responsibilities of charity trustees".

New trustees will be asked to complete and sign: Companies House registratipn form; Trustee Declaration of Eligibility form; and Conflicts of Interest Statement form.

The charity had two sub-committees during the year, Finance and Nominations. Each time a new subcommittee is formed, the following are documented and stored with the charity's Governing Document. These terms of reference are to give a clear indication of what is expected and to whom the group is accountable: name of the committee; membership of the committee including their office and voting rights and who will be the Chairman; brief statement of why the committee exists; delegated authority: a description of its decisionmaking powers; frequency of meetings; person serving the committee; committee reporting line; and quorum.

The Board of trustees and its sub-committees approve all strategic and financial decisions. They delegate the day-to-day running of the charity to the Artistic Director, Timothy Sheader and the Executive Director, William Village both pf whom report to the Board sharing the chief executive function and neither of whom are directors of the company or trustees of the charity. William Village is a director of the charity's trading subsidiaries.

c. Risk Assessment

The trustees carried out a Risk Management Assessment in 2018. This is reviewed and updated annually and details the systems which have been established to mitigate the major risks to which the charity is exposed.

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d. Going Concern

After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concem basis in preparing the financial statements. Further details regarding the adoption of the going concem basis can be found in the Accounting Policies.

Trustees' responsibilities statement

The Trustees (who are also directors of Regent's Park Theatre Limited for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they 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 accounting estimates that are reasonable and prudent;

• prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable group will continue in operation.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group 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.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

• so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, arid

• that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.

This report was approved by the Trustees, on \ cMo"|l<if and signed on their behalf by:

CllrRol Trustee

Page 7


INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REGENT'S PARK THEATRE LIMITED

Opinion

We have audited the financial statements of Regent's Park Theatre Limited (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 December 2017 set out on pages 11 to 34. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the financial statements:

• give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31 December 2017 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 conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 the 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.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' 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.

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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 infonnation. 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.

Opinion 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' Report for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' Report and the Group Strategic Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

• the parent charitable company has not kept adequate and sufficient accounting records, 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' remunerations specified by law 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 Trustees' Responsibilities Statement, 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.

In preparing the financial statements, the Trustees are responsible for assessing the group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic 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 located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Paul Taiano (Senior Statutory Auditor)

for and on behalf of

Nyman Libson Paul

Chartered Accountants Registered Auditors

Regina House 124 Finchiey Road London NW3 5JS Date:

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2017

Unrestricted Restricted Total Total funds funds funds funds 2017 2017 2017 2016

Note £ £ £ £ Income from:

Donations and legacies 3 194,092 261,100 455,192 170,886 Charitable activities 6 6,040,919 - 6,040,919 5,938,724 Other trading activities 4 1,036,427 - 1,036,427 874,325 Investments 5 3,461 - 3,461 7,380

Total income 7,274,899 261,100 7,535,999 6,991,315

Expenditure on: Raising funds 4,7 898,513 - 898,513 758,918 Charitable activities 8,9,10 5,298,468 - 5,298,468 5,216,836

Total expenditure 6,196,981 - 6,196,981 5,975,754

Net income before other recognised gains and losses 1,077,918 261,100 1,339,018 1,015,561

Net movement in funds 1,077,918 261,100 1,339,018 1,015,561

Reconciliation of funds: Total funds brought forward 4,550,093 - 4,550,093 3,534,532

5,628,011 261,100 5,889,111 4,550,093 Total funds carried forward

5,628,011 261,100 5,889,111 4,550,093

A separate income and expenditure account has not been prepared as the information required by Companies Act 2006 is given in the above statement of financial activities and in the notes to the accounts.

All the above activities and amounts relate to continuing operations and for both the current and prior year comprise unrestricted funds.

All recognised gains and losses are included in the above statement of financial activities.

The notes on pages 15 to 34 form part of these financial statements.

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REGENT'S PARK THEATRE LIMITED REGISTERED NUMBER: 00759557

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2017

Fixed assets Tangible assets

Current assets Stocks Debtors Cash at bank and in hand

Creditors: amounts falling due within one year

Net current assets

Total assets less current liabilities

Provisions for Liabilities

Net assets

Charity Funds

Restricted funds Unrestricted funds:

Share capital Unrestricted funds

Total unrestricted funds

Shareholders' and Charity's funds

Note

14

17

18

19

20

8,374

657,816

5,184,069

5,850,259

(950,121)

22

21 7

22 5,628,004

2017 £

988,973

4,900,138

5,889,111

5,889,111

261,100

5,628,011

5,889,111

9,759 857,674

4,313,897

5,181,330

(889,547)

4,550,087

2016 £

260,560

4,291,783

4,552,343

(2,250)

4,550,093

4,550,093

4,550,093

The financial statements were approved and authorised for issue by the Trustees on tr ( I ^ ' and signed on their behalf, by:

4Hr Roper/Davis DL

he notes on pages 15 to 34 form part of these financial statements.

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REGENT'S PARK THEATRE LIMITED REGISTERED NUMBER: 00759557

COMPANY BALANCE SHEET AS AT 31 DECEMBER 2017

Fixed assets Tangible assets Investments

Current assets Stocks Debtors Cash at bank and in hand

Creditors: amounts falling due within one year

Net current assets

Net assets

Charity Funds Restricted funds Unrestricted funds:

Share capital

Unrestricted income funds

Total unrestricted funds

Shareholders' and Charity's funds

Note

14

15

17

18

19

21

4,466 632,716

4,847,765

5,484,947

(901,915)

5,283,358

2017 £

961,430 3

961,433

4,583,032

5,544,465

261,100

5,283,365

5,544,465

As restated 2016

£ £

227,169

3

4,703 1,804,821 3,126,917

4,936,441

(832,081)

4,331,526

227,172

4,104,360

4,331,532

4,331,532

4,331,532

The financial statements were approved and authorised for issue by the Trustees on and signed on their behalf, by:

A Cplr Rotaert Davis DL


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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2017

Note 2017

£ 2016

£

Cash flows from operating activities Net cash provided by operating activities 24 1,665,289 1,037,128

Cash flows from investing activities: Interest receivable Purchase of tangible fixed assets

3,461 (798,577)

7,380 (259,800)

Net cash used in investing activities (795,116) (252,420)

Change in cash and cash equivalents in the year 870,173 784,708 Cash and cash equivalents brought forward 4,313,897 3,529,189

Cash and cash equivalents carried forward 25 5,184,070 4,313,897


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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

1. Accounting Policies

1.1 Basis of preparation of financial statements

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 Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 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.

Regent's Park Theatre Limited 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.

The Statement of Financial Activities (SOFA) and Balance Sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

No separate SOFA has been presented for the company alone as permitted by section 408 of the Companies Act 2006.

1.2 Basis of consolidation

The financial statements consolidate the accounts of Regent's Park Theatre Limited and all of its subsidiary undertakings ('subsidiaries').

The company has taken advantage of the exemption contained within 408 of the Companies Act 2006 not to present its own income and expenditure accounts.

1.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

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1. Accounting Policies (continued)

1.4 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Box office income comprises the sale of tickets to both in house and third party productions held at Regent's Park Open Air Theatre and are recorded before deduction of credit card and other charges. Box office receipts are initially recognised as deferred income and are recognised as income once the performance to which the advanced sake relates has taken place. The charity applies the Cultural VAT Exemption on applicable income.

Catering and merchandise income comprises sales of food, drink and merchandise at the theatre and are recognised at the point of sale.

Royalties received comprise amounts due from third parties for performances of the charity company's productions at venues other than Regent's Park Open Air Theatre. Royalties are recognised once the performance to which the royalty relates has taken place.

Income arising from sponsorship, donations and grants are included in the statement of financial activities in the period in which they are applicable.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.

Cost of raising funds represent the catering and other expenditure attributable to the trading activity of the group.

Support costs are those costs incurred directly in support of expenditure on the objects of the group and include expenditure to develop and perform productions and the administration of Regent's Park Open Air Theatre.

Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

The VAT on expenditure that is irrecoverable either partially (or wholly in the case of production costs) is aggregated and shown as one figure.

1.6 Going concern The group meets its day to day working capital requirements through its own resources.

After reviewing the group's forecasts and projections, the Trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.

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1.7 Tangible fixed assets and depreciation

Tangible fixed assets costing more than £500 are capitalised and included at cost. Depreciation of tangible fixed assets is calculated using varying rates as detailed below.

The Trustees have considered the appropriateness of the company's depreciation poiicy in respect of capital expenditure on major building work which, by its nature, becomes part of the permanent fabric of the site. Whilst the company currently has a lease on the site until 2037, as the site is part of the Crown Estate, the lease includes a clause allowing early determination at short notice by the Crown. In the very unlikely event that early determination were to be exercised, it would be impossible for the Company to realise any value in those assets which had become part of the permanent fabric of the site. For this reason, the Trustees' policy is such that building work of this nature is held in fixed assets with no depreciation until the year of completion. In the year of completion, depreciation is charged at the rate of 100%.

Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

General building improvements - 20% on cost Major building works (in year of' - 10% - 100% on cost

completion) Technical & stage equipment - 15% on cost Office furniture & fittings - 20% on cost Box office software & equipment - 20% - 33% on cost Computer equipment - 33% on cost Catering fixtures & fittings - 20% on cost

1.8 Investments

Investments are a form of basic financial instrument. Investments in subsidiaries are valued at cost less provision for impairment.

1.9 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the bank.

1.10 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

1.11 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 17




1.12 Cash at Bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.13 Creditors and provisions

Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normaliy recognised at their settlement amount after allowing for any trade discounts due.

1.14 Financial instruments

The group only has financial assets and financial 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.

Financial assets in the charitable company's own balance sheet include amounts due from the subsidiaries which are repayable on demand.

1.15 Pensions

The charity makes contributions to defined contribution schemes for certain staff which are administered by outside independent pension providers. Contributions payable for the year are charged to the Statement of Financial Activities.

1.16 Leasing

The annual rentals of all operating leases are charged to the profit and loss account on a straight line basis over the lease term.

Page 18



2. Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that effect the amounts reported for assets and liabilities as at the reporting date and the amounts reported for income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following are the group's key sources of estimation uncertainty:

Tangible assets Tangible assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending upon a number of factors, in re-assessing the assets' lives, factors such as technological innovation, theatrical production requirements and maintenance programmes are taken into account.

Impairment of debtors The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment, management considers factors including the current credit rating of the debtor, the ageing profile and historical experience.

3. Income from donations and legacies


£ £ £ £ Voluntary income (donations & trusts) 19,677 261,100 280,777 18,972 Sponsorship 174,415 - 174,415 151,914

Total donations and legacies 194,092 261,100 455,192 170,886

Trading activities


£ £ £ £ Charity trading income Catering income 1,036,427 - 1,036,427 874,325

Fundraising trading expenses Catering expenditure 838,355 - 838,355 696,398

Net income from trading activities 198,072 - 198,072 177,927

Page 19



5. Investment income


£ £ £ £

Interest received 3,461 - 3,461 7,380

Total 2016 7,380 - 7,380

6. Income from charitable activities


£ £ £ £

Theatre, rehearsal room and prop hire 87,649 - 87,649 19,144 Programmes and merchandise 78,186 - 78,186 80,061 Box office receipts 5,335,513 - 5,335,513 4,629,865 Royalties from external productions 4,984 - 4,984 16,414 Friends subscriptions 45,335 - 45,335 44,350 Touring income 489,252 - 489,252 1,109,881 Insurance claim . . . 39,009

6,040,919 - 6,040,919 5,938,724

Total 2016 5,938,724 - 5,938,724

7. Costs of generating funds


£ £ £ £

Contribution to administration salaries and overheads 60,158 - 60,158 62,520

Total 2016 62,520 - 62,520

Page 20



8. Direct costs

Costs of activities in furtherance of the charity's objects:

Activities £

Total 2017

£

Total 2016

£ Administration expenses Production costs Education programme Programme and merchandise costs Marketing and press Provision for future losses on productions Box office, front of house and theatre rent Wages and salaries National insurance Pension cost

34,691 1,538,406

36,596 301,561

312,551 2,116,369

97,444 37,714

34,691 1,538,406

36,596 301,561

312,551 2,116,369

97,444 37,714

45,597 1,688,102

887 36,230

390,365 (78,113) 288,915

1,935,626 93,732 25,606

4,475,332 4,475,332 4,426,947

Af 31 December 2016 4,426,947 4,426,947

Support costs

Activities £

Total 2017

£

Total 2016

£ Overheads, management and administration Irrecoverable VAT Salaries and national insurance Depreciation

235,730 426,323

5,371 84,445

235,730 426,323

5,371 84,445

207,454 307,259

3,981 208.350

751,869 751,869 727,044

At 31 December 2016 727,044 727,044

Page 21



10. Governance costs

Unrestricted funds 2017

£

Restricted funds 2017

£

Total funds 2017

£

Total funds 2016

£

Auditors'remuneration 21,553 Legal and professional fees 12,819 Accounting 36,895

-21,553 12,819 36,895

21,556 6,243

35,046

71,267 - 71,267 62,845

Net incoming resources/(resources expended)

This is stated after charging:

2017 £

2016 £

Depreciation of tangible fixed assets: - owned by the charitable group

Auditors' remuneration - audit Operating lease/licence (theatre and offices)

70,164 21,553

107,791

222,308 21,556 92,988

Other than as disclosed in note 29, during the year, no Trustees received any remuneration or reimbursement of expenses (2016: £nil).

Page 22



12. STAFF COSTS

The aggregate staff costs were:

Wages and salaries Social security costs Pension contributions

Total

2017 £

2,368,079 112,571 37,351

2,518,001

2016 £

2,067,320 104,107 21,549

2,192,976

During the year retirement benefits were accruing to 3 of the higher paid staff (2016 - 3) in respect of defined contribution pension schemes. Contributions in the year for these staff amount to the following:

Pensions

2017 £

15,615

2016 £

11,606

The average number of full time equivalent employees for the year was:

Production Administration

Total

2017 £

72 12

84

2016 £

61 12

73

The number of higher paid employees was:

In the band £60,001 - £70,000 In the band £70,001 - £80,000 In the band £190,001 - £200,000

Total

2017

1 2

2016 1

13. Key management personnel

Key management includes members of senior management and certain heads of department in the Group. The compensation paid or payable to key management for employee services was £600,180 (2016: £591,932).

Page 23



14. Tangible fixed assets

Group

General building

improvement

Major building Assets under

works construction

Technical and stage

equipment

Office furniture &

fittings

£ £ £ £ £ Cost At 1 January 2017 78,477 3,805,335 - 131,172 30,207 Additions 11,627 - 769,468 6,626 8,732

At 31 December 2017 90,104 3,805,335 769,468 137,798 38,939

Depreciation At 1 January 2017 65,990 3,688,962 - 60,284 21,115 Charge for the year 8,568 16,226 - 15,812 4,530

At 31 December 2017 74,558 3,705,188 - 76,096 25,645

Net book value At 31 December 2017 15,546 100,147 769,468 61,702 13,294

At 31 December 2016 12,487 116,373 70,888 9,092

Group

Box office software & equipment

£

Computer equipment

£

Catering fixtures &

fittings

£

Total

£ Cost At 1 January 2017 Additions

3,035 92,258 1,484

43,577 640

4,184,061 798,577

At 31 December 2017 3,035 93,742 44,217 4,982,638

Depreciation At 1 January 2017 Charge for the year

3,035 60,790 17,510

23,325 7,518

3,923,501 70,164

At 31 December 2017 3,035 78,300 30,843 3,993,665

Net book value At 31 December 2017 - 15,442 13,374 988,973

At 31 December 2016 - 31,468 20,252 260,560

Page 24



14. Tangible fixed assets (continued)

Company

General building

improvement

£

Major building

works

£

Assets under construction

£

Technical & stage

equipment

£

Office furniture and

fittings

£

Cost At 1 January 2017 Additions

78,477 11,627

3,805,335 769,468

131,172 6,626

5,549 892

At 31 December 2017 90,104 3,805,335 769,468 137,798 6,441


65,990 8,568

3,688,962 16,226

60,284 15,812

2,367 1,287

At 31 December 2017 74,558 3,705,188 - 76,096 3,654

Net book value At 31 December 2017 15,546 100,147 769,468 61,702 2,787

At 31 December 2016 12,487 116,373 - 70,888 3,182

Company

Box office software & equipment

£

Computer equipment

£

Catering fixtures &

fittings

£

Total

£ Cost At 1 January 2017 Additions

3,035 69,523 1,484

971 4,094,062 790,097

At 31 December 2017 3,035 71,007 971 4,884,159


3,035 45,479 13,749

776 194

3,866,893 55,836

At 31 December 2017 3,035 59,228 970 3,922,729

Net book value At 31 December 2017 - 11,779 1 961,430

At 31 December 2016 - 24,044 195 227,169

Page 25



15. Fixed asset investments

Shares in group

undertakings Company £ Market value

At 1 January 2017 and 31 December 2017 3

16. PRINCIPAL SUBSIDIARIES

Company name Regent's Park Enterprises Limited Regent's Park Productions Limited Regent's Park Ventures Limited

Percentage Shareholding 100 100 100

Description Catering and bar services Theatre production Touring theatre production

Regent's Park Enterprises Limited

2017 2016 as restated

£ £ Turnover 1,060,776 891,631 Cost of sales (324,105) (275,398) Administrative expenses (516,250) (423,000) Other operating income - 6,078

Profit for the financial year 220,421 199,311 Distribution (190,444) (226,637) Retained earnings brought forward 218,562 245,888

Retained earnings carried forward 248,539 218,562

2017 2016 as restated

£ £ Fixed assets 27,543 33,391 Current assets 246,456 349,047 Current liabilities (25,459) (163,875)

Capital and reserves 248,540 218,563

Page 26



Regent's Park Productions Limited

2017 2016 £ £

Tumover 3,178,316 2,098,768 Cost of sales (3,514,556) (2,336,494) Administrative expenses (27,879) (25,861) Tax on loss 364,119 263,587

Profit for the financial year Retained eamings brought forward

Retained eamings carried forward

2017 2016 £ £

Current assets 384,813 479,518 Current liabilities (384,812) (479,517)

Capital and reserves 1 1

Regent's Park Ventures Limited

2017 2016 £ £

Turnover 489,264 993,828 Cost of sales (360,091) (1,462,510) Administrative expenses (44,349) (169,791) Other operating income - 512,663 Tax on loss 11,284 125,810

Profit for the financial year 96,108 Retained earnings brought forward

Capital and reserves 96,108

2017 2016 £ £

Current assets 104,031 873,340 Current liabilities (7,922) (871,089) Provisions for liabilities - (2,250)

Capital and reserves 96,109 1

Page 27



17. Stocks

18.

Group Company

2017 2016 2017 2016 £ £ £ £

Finished goods and goods for resale 8,374 9,759 4,466 4,703

Debtors

Group Company

As restated 2017 2016 2017 2016

£ £ £ £ Trade debtors 14,568 98,737 14,568 1,262 Amounts owed by group undertakings - - 350,466 1,456,861 Other debtors 429,668 415,439 54,295 26,042 Prepayments and accrued income 213,580 343,498 213,387 320,656

657,816 857,674 632,716 1,804,821

Creditors: Amounts falling due within one year

Group Company

2017 2016 2017 2016 £ £ £ £

Trade creditors 166,716 70,149 165,996 63,917 Other taxation and social security (see

below) 18,419 62,543 18,419 62,349 Deferred income 459,805 461,727 440,409 443,462 Other creditors 55,688 64,749 55,488 64,654 Accruals 249,493 230,379 221,603 197,699

950,121 889,547 901,915 832,081

Other taxation and social security Group Company

2017 2016 2017 2016 £ £ £ £

PAYE/NI control 18,419 24,848 18,419 24,500 VAT control - 37,695 - 37,849

18,419 62,543 18,419 62,349

Page 28



19. Creditors: Amounts falling due within one year (continued)

Group Company

£ £ £ £

Deferred income Deferred income at 1 January 2017 461,727 403,295 443,462 390,302 Resources deferred during the year 459,805 461,727 440,409 443,462 Amounts released from previous years (461,727) (403,295) (443,462) (390,302)

Deferred income at 31 December 2017 459,805 461,727 440,409 443,462

20. Provisions

Group At 1 January 2017 Amounts reversed

At 31 December 2017

Provisions £

2,250 (2,250)

Provisions for 'get out' costs

The £2,250 provision in 2016 related to 'get out' costs anticipated at the end of the "Pride and Prejudice " tour.

21. Share capital

Allotted, called up and fully paid 7 (2016 - 6) Ordinary shares of £1 each

2017 £

2016 £

As stated in the trustees' report, shares are held exclusively by the charity trustees and are relinquished on cessation of trusteeship. Therefore, the number of allotted, called-up and fully paid ordinary shares at the year end is always the same as the number of trustees at the year end.

Page 29



22. Statement of funds

Statement of funds - current year

Balance at 1 January

2017 £

Designated funds Potential effects of bad weather and

other negative effects on future takings 1,500,000

Repairs and renewals projects and depreciation 600,000

Provision for at risk investment in tours/transfers 500,000

Provision for forthcoming major building works 1,500,000

General short-term cashflow purposes 300,000

4,400,000

General funds General funds 150,093

Total Unrestricted funds 4,550,093

Restricted funds

Major building works -

Total of funds 4,550,093

Balance at 31

Transfers December Income Expenditure in/out 2017

£ £ £ £

_ _ 1,500,000

- (70,165) - 529,835

- - (250,000) 250,000

_ 1,400,000 2,900,000 - - - 300,000

- (70,165) 1,150,000 5,479,835

7,274,899 (6,126,816) (1,150,000) 148,176

7,274,899 (6,196,981) - 5,628,011

261,100 _ 261,100

7,535,999 (6,196,981) - 5,889,111

Page 30



22. Statement of funds (continued)

Statement of funds - prior year

Balance at Balance at 1

January 2016

£ Income

£ Expenditure

£

Transfers in/out

£

Gains/ (Losses)

£

31 December

2016 £

Designated funds Potential effects of bad

weather and other negative effects on future takings

Repairs and renewals projects and depreciation

Provision for at risk investment in tours/transfers

Provision for forthcoming major building works

General short-term cashflow purposes

1,500,000

600,000

500,000

500,000

- (222,307) 222,307

1,500,000

(200,000)

-

1,500,000

600,000

500,000

1,500,000

300,000

3,100,000 - (222,307) 1,522,307 - 4,400,000

General funds General funds 434,532 6,991,315 (5,753,447) (1,522,307) - 150,093

434,532 6,991,315 (5,753,447) (1,522,307) - 150,093

Total Unrestricted funds 3,534,532 6,991,315 (5,975,754) - - 4,550,093

Restricted funds

Major building works - - - - - -

Total of funds 3,534,532 6,991,315 (5,975,754) - - 4,550,093

The Major Building Works fund represents donations received in respect of the major building works which commenced in the year and are included in assets under construction. On completion of the works the related depreciation charge will be allocated to the restricted fund.

Page 31



Summary of funds - current year

Balance at 1 Balance at

31 January

2017 £

Income £

Expenditure £

Transfers in/out

£

December 2017

£

Designated funds General funds

4,400,000 150,093 7,274,899

(70,165) (6,126,816)

1,150,000 (1,150,000)

5,479,835 148,176

4,550,093 7,274,899 (6,196,981) - 5,628,011 Restricted funds - 261,100 - - 261,100

4,550,093 7,535,999 (6,196,981) - 5,889,111

Summary of funds - prior year

Balance at 1 January

2016 £

Income £

Expenditure £

Transfers in/out

£

Balance at 31

December 2016

£

Designated funds General funds

3,100,000 434,532 6,991,315

(222,307) (5,753,447)

1,522,307 (1,522,307)

4,400,000 150,093

3,534,532 6,991,315 (5,975,754) - 4,550,093

3,534,532 6,991,315 (5,975,754) - 4,550,093

23. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds 2017

£

Restricted funds 2017

£

Total funds 2017

£

Tangible fixed assets Current assets Creditors due within one year

727,873 5,850,259 (950,121)

261,100 988,973 5,850,259 (950,121)

5,628,011 261,100 5,889,111

Page 32



23. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Unrestricted Restricted Total funds funds funds 2016 2016 2016

£ £ £

Tangible fixed assets 260,560 - 260,560 Current assets 5,181,330 - 5,181,330 Creditors due within one year (889,547) - (889,547) Provisions for liabilities and charges (2,250) - (2,250)

4,550,093 - 4,550,093

24. Reconciliation of net movement in funds to net cash flow from operating activities

Group 2017 2016

£ £

Net income for the year (as per Statement of Financial Activities) 1,339,018 1,015,561

Adjustment for: Depreciation charges 70,164 222,308 Interest receivable (3,461) (7,380) Loss on the sale of fixed assets . 37,400 Decrease in stocks 1,385 129 Decrease/(increase) in debtors 199,860 (160,413) lncrease/(decrease) in creditors 58,323 (70,477)

Net cash provided by operating activities 1,665,289 1,037,128

Analysis of cash and cash equivalents

Group 2017 2016

£ £ Cash in hand 5,184,070 4,313,897

Total 5.184,070 4,313,897

Page 33



26. Capital commitments

At 31 December 2017 the group and company had capital commitments as follows:

Group Company

2017 £

1,805,410

2016 £

2017 £

1,805,410

2016 £

Major building project

27. Pension commitments

Pension costs totalling £37,714 (2016: £25,606) represent amounts payable to defined contribution pension schemes. The assets of the schemes are held separately from those of the group in an independently administered fund. Contributions totalling £1,162 (2016: £2,122) were payable to the funds at the balance sheet date and are included in creditors.

28. Operating lease commitments

At 31 December 2017 the total of the group's future minimum lease payments under non-cancellable operating leases was:

29. Related party transactions

The charity has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Fees totalling £53,750 (2016: £56,250) were paid to Reed Watts Limited, a company in which James Reed is also a director. At the reporting date £nil (2016: £nil) was due to Reed Watts Limited in respect of these fees.

Group and company Amounts payable: Within 1 year

2017 £

2016 £

51,446 51,446

Page 34

regent's park theatre limited

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