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Theatre Investment Fund Limited / Trustees’ Report and Financial Statements 2011 - 2012

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Company Number: 1252595 Charity Number: 271349

Theatre Investment Fund Limited (Limited by Guarantee)

Trustees’ Report and Financial Statements

For the year ended 31st March 2012

Stage One is the operating name of the Theatre Investment Fund

Image: Stage One’s West End Auction winner Lauren Paine with the cast of Jerusalem


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Contents Chairman’s Annual Statement Trustees’ Report Legal and Administrative Information Auditors’ Report Statement of Financial Activities Income and Expenditure Account Balance Sheet Notes to the Financial Statements

Page

3 - 12 11 - 12 13 14 - 15 16 - 17 18 19 20 - 24

Stage One Workshop 2012 at the Royal Society of Arts


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Chairman’s Statement April 1 2011 – March 31 2012 London is globally synonymous with its vibrant West End stages and succeeds in entertaining diverse audiences year-on-year. ‘In 2011, despite various events from the Royal Wedding to the riots, the UK the-atre industry yet again broke records enjoying ‘Box Office Receipts’ at an all time high of £528,376,000’. Despite the buoyant box office figures, the Summer of 2012 presents producers with a very significant new challenge and one which has no precedent. As London prepares to deliver the Olympic task ahead, the theatre industry will attempt to welcome and engage a new audience whose focus is fixed on an en-tirely different stage. The Society of London Theatre has recently launched the ‘Don’t Miss the Real Show’ campaign to ensure as many visitors to the Games are viewing a visit to the theatre as a must. Will London’s legacy for the future include its theatres and cultural landscape, boosting tourism for years to come? The jury is still out. The time of uncertainly is also apparent for new producers, with many planning on using their skills to deliver parts of the cultural Olympics and riding out the Summer until new productions can once again be viable. Stage One’s activities throughout the last year have yet again been to champion the role of the producer and to develop emerging creative entrepreneurs. In 2011, Stage One’s Chief Executive for the past 22 years, Nick Salmon, stepped down. His dynamic leadership throughout his tenure saw the creation of the development programme including the Work-shop, Bursary and the most recent Apprentice Scheme. These programmes still deliver the cornerstone of Stage One’s work in bringing the next generation forward. I would like to thank Nick on behalf of the Council and all the new producers he has helped over many years and wish him every success for the future. Nick Salmon’s departure was one of the cata-

lysts for a period of reflection on our current ac-

tivities and to create a strategic plan. The first

task was to appoint a new Chief Executive with a

strong vision for the future of the organisation. In

November 2011 a panel appointed Joseph

Smith, who comes to the role with a wealth of

experience across both commercial and subsi-

dised sectors. It is vital that Stage One serves

new producers by developing programmes which

root their learning directly in the industry. I know

that Joseph shares the common passion of all

the Stage One Council and will lead Stage One

into a new and exciting era.

In late 2011 the Council formalised a 5 year strategy plan, to discuss all current activities in terms of their

aims, delivery and evaluation methods. After much deliberation, the following key objectives were decided

upon;

To run an efficient and accountable charity led by a Chairman, Council of Trustees, Chief Executive

and core staff.

To invest in new theatre productions which meet our guidelines and to maintain the Voluntary Levy

Scheme.

To run a comprehensive development programme which serves to educate and train emerging pro-

ducers to produce new commercial productions.

To continue to fundraise for our extensive development programme via trusts, foundations, business-

es and individual giving.

To work closely with SOLT and the TMA and to compliment their activities for their memberships’.

To measure and constantly evaluate the success rate of our current programme and implement

changes where necessary to ensure our activities continue to best fulfil our objectives.

Stage One’s newly appointed Chief Executive, Joseph


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The team at Stage One have evaluated all current working practices to ensure all these aims are being de-livered efficiently. As Joseph steps into his new role as Chief Executive, many of these aims may develop in reaction to changing needs and I look forward to working with Joseph and the Council to ensure we are continually improving our activities. Stage One was also announced as the Whatsonstage.com adopted Charity of the Year for 2012 in recogni-tion of our work in developing the next generation of producers. This accolade gave the organisation oppor-tunities to fundraise and perhaps more crucially to raise awareness and understanding about the role of the producer throughout the industry and wider public of theatre-goers. We were extremely honoured that Bertie Carvel and Michael Ball agreed to represent Stage One at the launch event and the What-sonstage.com Awards to talk about our work and highlight to the wider public the need for producers for the future of the industry.

To compliment this we also launched an online auction that ran for five months in parallel with the What-sonstage.com Awards campaign to raise money and awareness for our development programme. I would like to thank all the donors of theatrical experiences and unique memorabilia for their fantastic contribution and thank all the bidders who pledged their support. The profit made from the auction will be put towards developing a new website for Stage One in 2012 which will help to deliver our strategic aims for the future.

The fast-approaching Summer holds much uncertainty for Producers and they must yet again rely on their entrepreneurial instincts to make the most appropriate decisions for their productions. I urge new producers to do the same and think past the difficulties that they may come across to stimulate new ideas with guid-ance from Stage One along the way. Fundraising The fundraising target for the bursary and apprentice schemes was met early on in the fiscal with thanks to recurrent support from trusts, foundations and patrons. A new grant from the Esmee Fairbairn Foundation enabled us to develop and extend the apprentice scheme. The secured funding was timely as Zoe Davies took maternity leave from August 2011 to February 2012. During this time, Katie Harper looked after our ex-isting donors but no active fundraising took place. Zoe is now back and is focussing on the fundrais-ing for 12-13 onwards. This year, to maximise on the opportunity the Whatsonstage Awards presents, we also launched ‘West End Lots’ an online charity auction to raise funds for our development programme. The online ‘lots’ would not have been possible without the generous support of the following companies and individuals to whom we are very grateful; Holiday Inn, Planet Hollywood, The Hard Rock Ca-fé, Gilgamesh, The Haymarket Hotel, Franco’s, The Ritz, The Cavendish Hotel, Battersea Pie Shop, Hi Sushi, Belushi’s, The Dial Restaurant and the Spice Market Restaurant.

Lucy Oliver Harrison, one of the first Apprentices awarded

a subsidised placement with Headlong Theatre

Supporting Stage One development programme,

Lauren Paine visiting the West End hit Jerusalem


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Investment in Productions This continues to be the core of Stage One’s activities to as-sist new productions in the regions and in the West End. Dur-ing the year ended 31

st March 2012 Stage One invested in 36

new productions totalling £615,589 ( 2010/2011 £379,500) and recovered £366,636 (£241,139) from all investments. In the year ended 31

st March 2012 Stage One invested in the

following productions in the West End and in the regions on tour:

Michael McCabe, Mark Goucher Ltd, Sonia Friedman Productions, Fiery Angel Ltd, Glynis Henderson Pro-ductions, Thelma Holt, Sienna Miller, James Seabright, Cameron Mackinstosh Ltd, MJE Productions, CMP Ltd, Theatre Royal Bath, PW Productions Ltd, Stage Entertainment UK Ltd, Novel Theatre, Julian Stone-man Associates Ltd, Eleanor Lloyd, Mark Rubinstein, The Society of London Theatre, Kenny Wax, Derek Jacobi, Robert Lindsay, The Really Useful Group, Playful Productions LLP, Stephen Waley Cohen, Stan-hope Productions, Ambassador Theatre Group, Delfont Mackintosh, Working Title Films, Andrew Treagus Associates Ltd , Greg Rippley-Duggan, Keith Holmes and Colin Ingram Ltd. The ‘lots’ included tickets to the Olivier Awards with MasterCard, signed memorabilia and a walk on part in the smash-hit play Jerusalem which galvanised coverage for Stage One in the FT Magazine, The Daily Mail and The Spectator. In total, as well as raising our profile significantly in the industry and theatre-going pub-lic we made a surplus of £10,000 which will fund a new website for Stage One. Thanks to support from the Esmee Fairbairn Foundation, this year we have extended the Apprentice scheme with 3 further individuals spending 6 months in the commercial sector, followed by 6 months in the subsidised sector. We placed these new apprentices at The Royal Court, Headlong and Paines Plough and have received extremely positive feedback from the participants.

Butley Rhinestone Mondays Bette and Joan

Ecstasy Death of a Maiden Top Hat

Much Ado About Nothing Playboy of the Western World The Duchess of Malfi

Mr Stink Jerusalem Noises Off

Betrayal Crazy for You South Browns/Downing Version

Yes, Prime Minister The Nutcracker Written on the Heart

Top Hat Tour Hayfever

Legally Blonde The Musical Tour One Snowy Night

The Ladykillers Potted Panto

La Soiree Sweeney Todd

Ruby Wax: Losing It Absent Friends

Top Girls Yes, Prime Minister Tour

Broken Glass Doctor in the House

South Pacific Less Than Kind

The Tempest Wonderful Town

The Ladykillers, Stage One Investment 2011


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The Start-Up Fund In 2011 we awarded the fourth Start-Up to past Bursary recipient Patrick Lynch for a tour of LESS THAN KIND by Terrence Rattigan. The tour opened at the Yvonne Arnaud Theatre on the 14

th February and

starred James Wilby and Sarah Crowe. This play was thought lost until it was re-discovered very recently and produced at the Jermyn Street Theatre in 2011. Patrick Lynch – Start-Up recipient “I'm really delighted with the Stage One award. The truth is that receiving it now, puts all of the effort and occasional set backs that I have ex-perienced, whilst developing a career as a pro-ducer into perspective. And, it tells me, that the industry understands that producing theatre is above all a creative and collaborative art form. And, that investing in producers is invest-ing in theatre”. 2011 represents the second round of Start Up Funding with all current supporters in their sec-ond year of three years’ pledged support. We would like to thank all these theatre suppliers and individual donors who are committed to supporting the future of the theatre industry. Katie Harper is in regular communication with a pool of talented new producers who have pro-jects in the pipeline ripe for Start Up Invest-ment. These projects are dependent on factors that face all producers every day – casting, available theatres, investment – but Stage One is working with the most promising candidates and help-ing connect them with the industry. Bursaries for New Producers & Apprentice Scheme The Bursary and Apprentice schemes is co-financed with matching funding of £250,000 (over three years) from the Society of London Theatre (SOLT), and additional funding from The Eranda Foundation, The Underwood Trust, The Mackintosh Foundation, Andrew Treagus Associates, The Garrick Charitable Trust and David Dein to whom we are enormously grateful. The Bursary scheme assists new producers, who are essential for the future of theatre. The scheme provides;

a) a financial award of up to £15,000 b) a mentor to guide the new producer c) shared office space the Shaftesbury PLC Producers’ Hub.

Less Than Kind, produced by Start-Up recipient Patrick

Lynch

Recipient Name Project Mentor

Caitlin Albery Beavan Shivered by Philip Ridley Matthew Byam Shaw

Paul Taylor Mills One Flew Over the Cuckoo’s Nest

Rachel Tackley

James Quaife Step 9 (of 12) by Tom Wells Carole Winter/ Matt Gordon

Emily Dobbs The Only True History of Lizzie Finn

Joseph Smith

Katy Lipson The Mystery of Edwin Drood Jo Danvers

Vicky Graham Set up company/rights Tobias Round Tracey Childs Haunting Julia Kim Poster

Daniel Souter / Tom Miller The Moment of Truth by Peter Ustinov

Thelma Holt

Stuart Childsworth & Luke Fredericks

Jekyll & Hyde Julian Bird


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Caitlin Albery Beavan – Bursary Recipient 2011 “I started producing small-scale shows with friends to the highest quality we could achieve on painfully small budgets whilst at university. When I graduated I took the Stage One Workshop, which convinced me that I wanted to be a commercial theatre producer. An early draft of Shivered by the prolific writer, Philip Ridley, landed in my hands and I knew I had to produce the show. The workshop had given me the confidence to apply for the Stage One Bursary, which I received and that made my journey into producing a large-scale fringe show infinitely easier. Not only did I have money to help pay my rent and feed me allowing me to fully focus on the task in hand but also the confidence and support through my mentor Matthew Byam Shaw, Katie Harper at Stage One and the numerous other producers like myself that I met through the program. Since winning the bursary I feel that with Stage One behind me I could tackle any project! Their support, advice and extra workshops they host focusing on important and necessary cor-ners of producing allow you to succeed in becoming a commercial theatre producer.” Apprentice Scheme for New Producers In 2011 with support received from the Esmee Fairbairn Foundation, we were able to offer three Apprenticeships for outstanding candidates to gain training for twelve months across the commercial and subsidised theatre sectors. The candidates spent their first six months in the commercial sector and then transfered the skills learnt into a second placement in the subsidised sector. This transfer of skills was focused on the commercial development and transfer of work. The initiative aimed to develop entrepreneurial individuals who will ultimately work across both sectors increasing communication, sharing knowledge and strengthening links. The follow-ing table shows where the Apprentices received their training;

Dan Brodie – The Royal Court (12 months) “The Esmee Fairbairn Foundation has given me the opportunity to see the relationship between the com-mercial and subsidised sector. I think this will be invaluable as I develop into a producer and I can’t thank Esmee enough. The Fairbairn Foundation and Stage One do a wonderful job at demystifying the world of the producer and make it accessible to those who would never usually have that opportunity.”

Apprentice Placement 1 Placement 2

Dan Brodie Royal Court Theatre Produc-tions

English Stage Company

Ellie Collyer-Bristow Playful Productions LLP

Helen Johnson Kenny Wax Ltd Kenny Wax Ltd

Lettie Graham Jamie Hendry Productions Ltd Jamie Hendry Productions Ltd

Lucy Olivier-Harrison Ambassador Theatre Group Headlong

Sarah Brocklehurst Sonia Friedman Productions

Sarah Brown Julian Stoneman Associates Julian Stoneman Associates

Sarah Stribley Seabright Productions Paines Plough

Tom O’Connell Fiery Angel Ltd Fiery Angel Ltd

Ben Prudhoe Chichester Festival Theatre Sonia Friedman Productions

Lydia Rynne Sonia Friedman Productions Playful Productions LLP


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Lettie Graham – Jamie Hendry Productions (12 months) “The Stage One Apprentice Scheme has facilitated my transition from Fringe theatre into the commercial sector. This is a notoriously difficult industry to get into and the scheme has provided me with a way to move my career forward. I have been placed with a mentor who allows me to play an active and mean-ingful part in his company, across all areas. In the first three months this has included practical involve-ment in all aspects of the company’s creative productions – budgeting, investment, casting, contracts, marketing and PR. I wanted the opportunity to work in an environment where I would be forced to learn quickly and effectively, and the scheme absolutely provides that. I also benefit from the scheme’s commitment to exposing the apprentices to industry experts via the Stage Two seminars. These cover areas of interest such as West End budgets, right acquisitions and touring. The seminars successfully combine practical advice with the opportunity to build relationships with those individuals who play a vital part in the mechanics of this industry. As someone just starting out in this chapter of my career, I believe these events are invaluable and reflect the unique and crucial role Stage One plays in ensuring the long-term sustainability of commercial theatre”. Tom O’Connell – Fiery Angel Ltd (12 months)

“My training whilst on the scheme has been intense but extremely rewarding. The varied productions at Fiery Angel have seen me work on a new commer-cial box-office hit (The Ladykillers), a long-standing West End show (The 39 Steps), a subsidised re-mount (Swallows & Amazons), a children’s produc-tion (Peppa Pig) and a new try-out (Ben-Hur with a cast of four); the staff/team that run this business support me beyond belief with constant advice, trust in my ability/responsibility and are great to work with. Before becoming an apprentice I had produced my own small-scale productions and I always seemed to get elements wrong; especially the most crucial part - business. I learnt through my mistakes and wanted

to take my understanding of ‘producing’ to a higher level; Stage One has enabled me to do that. Since my apprenticeship (and because of) I have been scouted by other producers to work on their shows as a pro-duction co-ordinator and in the last twelve months I have worked on 11 shows alongside my work at Fiery Angel. As an effect of this I co-produced a new dark comedy at the Trafalgar Studios starring The Inbe-tweeners’ Blake Harrison, leading a 3-actor cast which had a successful run and furthered my learning. I cannot express enough how much Stage One has changed my life; from the financial support, to the 24-hour advice and networking opportunities enabling my future career path to be a slightly easier journey. It has now given me the confidence to set-up my own business (QNQ Ltd) correctly, commission a new adaptation and be given the rights to a major revival with a star name attached for 2013. Without the sup-port of my mentors, the programme manager, funding and hands-on experience with skilled professionals I wouldn’t be going forward with my life ambition: to be a good, quality, trusted producer”.

Image; Tom O’Connell (Bursary Recipient) with

Council member Ryan Petersen at the Stage One net-

work event 2012


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Producers’ Hub – supported by Shaftesbury PLC

In 2011 we were offered a space on Garrick Street from Shaftesbury PLC for a highly subsidised rate to set up a new hub for our Bursary and Start-Up recipients. We con-firmed the lease in August and began to redecorate and make the space fit for purpose. The space is now hosting up to 8 new producers on a hot-desk system with shared board/meeting room. To cover some of the cost and to help with the day-to-day running we sub-let half the space to Jamie Hendry Productions. I have included below some statements from the new producers who use the office; Nicola Seed - Bursary Recipient 2010

“The use of the Stage One Bursary Office has been invaluable to my development as a com-mercial producer. It is tough starting up on your own, so to have a desk in the heart of Thea-treland is priceless as I can pop out to meetings without tube journeys and I don’t have to fre-quent endless coffee shops in-between meet-ings. The meeting room allows us to host meet-ings here, which is far more professional than holding meetings in Pret! If I did not have ac-cess to the office I would be working from home, and above all, the Stage One office gives me access to a community and network of advice. Sharing with other new producers gives us a

supporting network and forum for debate which I feel is essential to our development. Being able to swap stories, experiences and knowledge is vital and brilliant. I have learnt a lot being here and being able to ask a quick question to someone sitting next to me about what they did when they were in a similar situa-tion is fantastic. I have a few productions in the early stages of development that I am working on, plus two productions at the Finborough – ‘The Drawer Boy’ by Michael Healey in June and ‘A Life’ by Hugh Leonard in October. I am also working on remounting the production of ‘Accolade’ By Emlyn Williams for the West End which was awarded Best Production of 2011 at the Off West End Awards, and Fringe Production of the Year by Time Out.” David Luff – Bursary Recipient 2011 “The office space in Garrick Street has been hugely beneficial in helping me get my new commercial the-atre productions off the ground. Having a dedicated desk space and a meeting room has been useful in concentrating on my own projects, holding professional meetings with potential clients and networking with my peers - fellow emerging producers who each have exciting, new productions. It is this communi-cation with other producers which has, in many ways, been most beneficial since being able to discuss problems and brainstorm creative ideas helps in the development of my projects. It has also been very useful to be in central London, since this provides an excellent location for inviting associates/clients for meetings”.

Image: Nicola Seed, Bursary recipient speak-

ing at the Stage One Workshop 2012


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Workshop for New Producers Stage One’s three-day workshop continues to be enormously popular and was held at the RSA for the third year running. The Workshop was held twice, in April and in October and we were delighted that the following Industry pro-fessionals were able to come and participate; Dafydd Rogers, Thelma Holt, Despina Tsatsas, Eleanor Lloyd, Ros Povey, Paul Elliott, Neil Adleman, Michael McCabe, Ryan Petersen, Shereden Mathews, Bev Hewes, James Sea-bright, Julian Bird, Richard Walton, Bev Hewes, Greg Ripley-Duggan, Andrew Treagus, Robert Cogo-Fawcett, Lucinda Harvey, Matt Byam Shaw, Kim Poster and Michael Lynas.

Once again Andrew Treagus was the Course Tutor and we are immensely grateful to him and all the speakers for doing such a splendid job of teaching future producers the basic tools of producing in the commercial theatre.

Endowment Fund

At the end of this year monies in the Fund totalled £3,819,734 (£3,516,665). The Endowment Fund was set up to provide Stage One with a secure ongoing income.

Voluntary Levy

A significant contribution to the Endowment Fund continues to be made by theatres and producers whereby the value of a number of top price seats is donated to Stage One. Since its commencement in September 1993, this Voluntary Levy has generated £2,695,868 for the Endowment Fund to March 2012 (including £300,226 in 2011/2012). The Voluntary Levy is an extraordinary example of the Industry invest-ing in its future through Stage One. Grateful appreciation and thanks are given to the following theatres and producers who have contributed to the Voluntary Levy this year;

Council member Neil Adleman and Stage One mentor Jon

Bath speaking at the Stage One workshop 2012

Stage One Bursary recipi-

ent Daniel Souter at the

Stage One workshop 2012


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Producers and Production Companies

Andrew Lloyd-Webber Ambassador Theatre Group

Andre Ptaszynski Andrew Treagus

Adam Spiegel Becky Barber

Bob Bartner Bill Kenwright

Cameron Mackintosh Caro Newling

Carole Winter Chichester Festival Theatre

David Ian Donna Munday

David Pugh Daffyd Rogers

Daniel Sparrow David Stone

Duncan Weldon Edward Snape

Gate Theatre Dublin Greg Ripley-Duggan

Headlong Theatre Howard Panter

Jerry Frankel Jamie Hendry

Jessica Hepburn Jeffrey Richards

John Richardson James Seabright

Joe Smith Kim Poster

Lee Menzies Lyric Hammersmith Productions

Michael Ball Matthew Byam Shaw

Michael Edwards Mark Goucher

Michael Harrison Mark Rubinstein

Adelphi Noel Coward

Ambassadors Novello

Apollo Victoria The Old Vic

The Pinter Theatre Phoenix

The Criterion Piccadilly

Drury Lane Playhouse

Duke of York’s Prince of Wales

Duchess Queens

Fortune St Martin’s

Gielgud Trafalgar Studios

Her Majesty’s Victoria Palace Theatre

London Palladium Wyndham’s

Theatres


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The Society of London Theatre

SOLT once again demonstrated their wholehearted commitment to Stage One’s objectives by their gener-ous annual donation. We are very grateful to the Society for continuing this valuable support, which is in addition to its contribution to the Bursaries, and without which Stage One would not survive. I would like to thank the unfaltering commitment of the Stage One Council and those members’ who serve on the Finance and General Purposes Sub-Committee for their time and generosity.

Chairman Luke Johnson


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Theatre Investment Fund Limited (Limited by Guarantee) Trustees’ / Directors’ Report The trustees present their report together with the financial statements for the year ended 31

st March 2011.

Objectives and activities

The objects of the company during the year were the investment in theatrical productions and the granting of bursaries and apprenticeships for new and emerging theatrical producers. The Chairman’s Annual Re-port dealing with achievements and performance and plans for future periods is as attached. In setting ob-jectives for the year and planning activities, the trustees have considered the Charity Commission’s guid-ance on public benefit. The charity’s interests are in developing the theatrical community and expanding theatrical arts education. Structure, governance and management Governing document Theatre Investment Fund Limited is a charitable company limited by guarantee, incorporated on 31

st March

1976. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1. Appointment of trustees The directors of the charitable company are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. Under the Articles of Association, the members of the Council are appointed by nomination and approval of the Council. Trustee induction and training Trustees are invariably already familiar with the practical work of the charity. New trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of As-sociation, the committee and decision making processes and recent financial performance of the charity. Organisation The Board of Trustees, which can have up to 50 members, administer the charity. At present the Council, which meets twice per year, has 22 members from a variety of professional backgrounds relevant to the work of the charity. A Chief Executive is appointed by the trustees to manage the day to day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority within terms of delegation approved by the trustees for operational matters, including finance, administration and employ-ment related activities. Related parties During the year ten trustees were involved in productions invested in by the charity. The trustees were not party to the decisions made to invest, and declared such interest at Board Meetings. These investments were subject to normal trading conditions and no preferential treatment was given to the trustees con-cerned, who were: George Biggs, Matthew Byam Shaw, Paul Elliott, Michael Harrison, Robert Jude, Michael Lynas, Kim Post-er, Mark Rubinstein, Stephen Waley-Cohen, Peter Wilson. During the year a donation was received from the Theatre Development Trust. The trustees listed below are also trustees of the Theatre Development Trust: Nica Burns, Matthew Byam Shaw, Richard Johnston, Michael Lynas, Caro Newling, Mark Rubinstein (to 1

st

July 2010).


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Risk management The trustees have conducted a risk analysis to identify the major risks to which the charity is exposed. Sys-tems have been put in place to mitigate those risks whereby the risks are reviewed annually at a trustees’ meeting. Trustees’ / Directors’ responsibilities 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 company at the year end and of the surplus or deficit for that peri-od. In preparing these the trustees are required to:

select suitable accounting policies and apply them consistently;

make judgements and estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accura-cy at any time the financial position of the company and which enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other ir-regularities. The directors / trustees during the year are listed on page 14.

Small company exemptions

This report is prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

Reserves and funding position

The trustees aim to maintain the free reserves of the charity at a level no less than 12 months of unrestrict-ed resources expended. At 31

st March 2011 this figure was approximately £262,000. Free reserves at 31

st

March 2011 were £442,175. The trustees’ policy has been to balance maximising the endowment fund for long term growth with meeting their continuing objectives.

Investment policy and performance

During the year the Endowment Fund was managed by Rensburg Sheppards on the basis of the trustees’ instructions to follow a low to medium investment risk strategy. The brokers’ performance is monitored by the Finance Sub-Committee who will continue to ensure that the charity’s investments are managed in con-formity with this policy.

Taxation As a Registered Charity the company is generally exempt from Income Tax and Capital Gains Tax.

Fixed Assets Full details of fixed assets are set out in note 9 to the financial statements.

Auditors

The Auditors have indicated their willingness to continue in office and a resolution will be proposed at the Annual General Meeting for their re-appointment and authorising the Trustees to fix their remuneration. This report was approved by the board of trustees on 21

st September 2011 and signed on its behalf by

Julian Bird Trustee


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Legal and Administrative Information Constitution The company is incorporated under the Companies Act, company number 01252595 and its governing doc-ument is its memorandum and articles of association. The company is a registered charity, number 271349. Directors and trustees The directors of the charitable company are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. Under those Articles, the members of the Council are appointed by nomination and approval of the Council to serve a period of three years. The trustees and members of the Council of Management during the year were: Luke Johnson - (Chairman) Paul Elliott - (Vice Chairman) Neil Adleman George Biggs Julian Bird - appointed 9

th November 2010

Nica Burns Matthew Byam Shaw - appointed 9

th November 2010

Michael Harrison Thelma Holt, CBE Richard Johnston Robert Jude Adam Kenwright Sir Eddie Kulukundis, OBE Michael Lynas Caro Newling Derek Nicholls - resigned 9

th November 2010

Kim Poster - appointed 9th November 2010

Richard Pulford - resigned 9th November 2010

Rupert Rhymes, OBE - resigned 9th November 2010

Greg Ripley-Duggan Mark Rubinstein Rachel Tackley - appointed 9

th November 2010

Sir Stephen Waley-Cohen Bt. - resigned 9th November 2010

Max Weitzenhoffer Peter Wilson, MBE Carole Winter

Secretary

Martin Scott, 32 Rose Street, London WC2E 9ET

Auditors

Haines Watts London LLP, New Derwent House, 69-73 Theobalds Road, London WC1X 8TA Bankers Clydesdale Bank, Gresham Street Branch, 35 Regent Street, London SW1Y 4ND

Registered office

32 Rose Street, London WC2E 9ET


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Statement of Financial Activities For the year ended 31st March 2011

2010 2011

Unre-

stricted

Restrict-

ed Expendable

Total Funds Funds Endowment Total

£ Notes £ £ £ £

Incoming resources 2

Incoming resources from generated

funds

Voluntary income

663,632 Grants/donations/gifts 95,209 313,786 277,573 686,568

Investment income

77,972 Investment income 6,435 - 94,086 100,521

741,604 101,644 313,786 371,659 787,089

Incoming resources from charitable activities

12,784 Workshop/seminar/producer packs/other 30,791 - - 30,791

754,388 Total incoming resources 132,435 313,786 371,659 817,880

Resources expended

Cost of generating funds

19,238 Investment management costs -

- 18,434 18,434

57,256 Production investments 127,311 - - 127,311

30,119 Fundraising costs 26,266 - - 26,266

43,877 Other costs of generating funds 42,831 - - 42,831

150,490 196,408 - 18,434 214,842

Charitable activities

124,142 New Producers bursaries/office - 256,238 - 256,238

8,817 Other bursaries -

- - -

6,874 Workshop/seminar/producer packs 24,725 - - 24,725

5,435 Promotion costs 7,954 - - 7,954

5,851 Governance costs 5,882 - - 5,882

29,058 Other resources expended 27,126 - - 27,126

180,178 65,688 256,238 - 321,926

330,668 Total resources expended 262,095 256,238 18,434 536,768


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Statement of Financial Activities continued… For the year ended 31st March 2011

Net incoming/(outgoing) resources for

423,721 the year before transfers (129,660) 57,548 353,225 281,113

- Transfer between funds 8 - - - -

Net incoming/(outgoing) resources before

423,721 revaluations and investment asset disposals (129,660) 57,548 353,225 281,113

(67,169) Surplus on sale of investments 8 - - 18,008 18,008

653,018 (Loss) / gain on revaluation of investments 8 - - 119,997 119,997

1,009,570 Net movement in funds for the year (129,660) 57,548 491,230 419,118

2,859,649 Total funds brought forward 571,835 271,949 3,025,435 3,869,219

3,869,219 Total funds carried forward 8,10,11 442,175 329,497 3,516,665 4,288,337


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Income and Expenditure Account For the year ended 31st March 2011

Year to 31 March 2010 Year to 31 March 2011

£ £ Notes £ £

Turnover

12,319 Workshop/seminar/producer packs 30,791

465 Other income 0

(57,256) Production investments written off (127,311)

(78,786) Administrative expenditure (75,839)

(6,874) Workshop/seminar/producer packs (24,725)

(5,435) Promotion costs (7,954)

(30,119) Fundraising costs (26,266)

(165,686) Operating (deficit) 3 (231,304)

Interest receivable

3,320 Bank 6,435

(162,366) (Deficit) subject to grants (224,869)

Grants and donations received

90,898 Theatre Development Trust 95,209

190,995 New producers bursaries 10 185,011

- Start Up Scheme 10 128,775

105,311 Donation -

387,204 408,995

Bursaries awarded and costs

(124,142) New producers bursaries 10 (203,209)

- Start Up Scheme 10 (53,029)

(4,907) Rupert Rhymes bursary -

(3,910) 254,245 Peter King Bursary

- 152,757

91,879 (72,112)

Expendable Endowment

159,233 Year to 31.3.11 -

251,112 Surplus/(deficit) for the year (72,112)

592,672 Accumulated surplus brought forward 843,784

843,784 Accumulated surplus carried forward 771,672


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Balance Sheet For the year ended 31st March 2011

As at 31 March 2010 As at 31 March 2011

£ £ Notes £ £

Fixed assets

3,184,668 Endowment fund 8 3,516,665

Current assets

60,250 Investments in productions 71,300

15,000 Sundry debtors

89,253 Prepayments and accrued income 5,612

691,614 Cash at bank and in hand 6 875,570

856,117 952,482

Creditors: amounts falling due

within one year

(171,566) Other creditors (180,810)

684,551 Net current assets 771,672

3,869,219 Total assets less current liabilities 4,288,337

Capital and reserves 7

Capital funds:

3,025,435 Endowment fund 8 3,516,665

Income funds:

271,949 Restricted funds 10 329,497

Unrestricted funds:

571,835 Other charitable funds 11 442,175

843,784 771,672

3,869,219 9 4,288,337


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1 Accounting policies

1.1 Basis of preparing the financial statements

The financial statements are prepared under the historical cost convention and in accordance with

the Financial Reporting Standard for Smaller Entities (effective April 2008), the Companies Act 2006,

and follow the recommendations laid down in the Statement of Recommended Practice "Accounting

and Reporting by Charities" (issued in 2005).

1.2 Charitable trading activities

Income from services invoiced to practitioners which relate to seminar and workshop income,

excluding value added tax, is included in incoming resources in the relevant period.

1.3 Grants/sponsorship/donations

Grants/sponsorship/donations are recognised in incoming resources in the year in which they are

receivable, except as follows:

- when donors specify that grants/donations given to the charity must be used in

future accounting periods, the income is deferred and not included in incoming

resources until the preconditions for use are met.

- when donors impose conditions which have to be fulfilled before the charity

becomes entitled to use such income, the income is deferred and not included in

incoming resources until the preconditions for use are met.

When donors specify that donations and grants, including capital grants, are for particular restricted

purposes, which do not amount to pre-conditions regarding entitlement, this income is included in

incoming resources of restricted funds when receivable.

1.4 Fixed asset investments

Fixed asset investments are stated at market value.

1.5 Investments in productions

Investments in productions are included at amounts invested less amounts recovered and after

making provision for losses where recovery of outstanding investments is not anticipated.

1.6 Voluntary income

Voluntary income is received by way of donations and gifts and is included in incoming resources

when receivable.

1.7 Interest receivable

Interest is included when receivable by the charity.

1.8 Expenditure

All expenditure is included on an accruals basis inclusive of any VAT which cannot be recovered

and is recognised when there is a legal or constructive obligation to incur the costs. All costs have

been directly attributed to one of the functional categories of resources expended in the Statement

of Financial Activities.

Notes to the Financial Statements For the year ended 31st March 2011


23

1.9 Fund accounting

Funds held by the charity are either:

- Unrestricted general funds - these are funds which can be used in accordance with the charitable

objects at the discretion of the trustees.

- Restricted funds - these are funds that can only be used for particular restricted purposes within

the objects of the charity. Restrictions arise when specified by the donor or when funds are raised

for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the

financial statements.

1.10 Endowment fund

The fund was set up to ensure the long term survival of the company. The fund was, initially,

formalised by a Declaration of Charitable Trust dated 3rd February 1993. On 10th May 2000 a

Theatre Investment Fund Declaration of Charitable Trust was set up taking over the assets of the

Trust originally set up on 3rd February 1993. Under the terms of the Deed of Declaration of

Charitable Trust of the Theatre Investment Fund Endowment Fund "all accumulations of income

held as an accretion to and as part of the capital of the Endowment Fund (and any investments

thereof from time to time representing the same) or 5% of the market value of the said Fund

(including such accumulations) at the end of each Accounting Period whichever is the greater shall

(to the exclusion of any other) be designated as Expendable Endowment to be applied expended or

distributed by the Trustees within the scope of their powers under this Deed".

2 Incoming resources

The total incoming resources for the year have been derived from the principal activity undertaken

wholly in the UK.

3 Operating surplus

for the year is stated after charging: 2011 2010

£ £

Auditors' remuneration

external audit 1,700 1,600

4 Staff costs and numbers

The average monthly number of employees during the year was 1 (2010 - 1).

Trustees were not paid or reimbursed for expenses during the year.

5 Taxation

No Corporation Tax is payable as the company is registered as a charity.

6 Cash at bank and in hand

2011 2010

£ £

Fixed term deposit 720,000 -

Interest bearing current accounts 155,570 691,614

875,570 691,614


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7 Reconciliation of movements in reserves

Income Capital Total

Income & Endowment

expenditure fund

account

£ £ £

31st March 2010 843,784 3,025,435 3,869,219

Deficit for the year before transfer (72,112) - (72,112)

Capital contributions - 415,578 415,578

Accretions - 94,086 94,086

Fund costs - (18,434) (18,434)

Transfer between reserves - - -

31st March 2011 771,672 3,516,665 4,288,337

8 Endowment Fund

The balance of the fund as at 31st March 2011 is as follows:

2011 2010

£ £

Market value of investments 2,667,527 2,395,639

Cash on deposit and accrued income 849,138 789,029

3,516,665 3,184,668

Accretions 94,086 74,652

Valuation @ 5% 175,833 159,233

SUMMARY

Cost Market Value

2011 2010 2011

£ £ £

Shares and other investments 2,305,884 2,395,639 2,667,527

Cash on deposit and accrued income 789,029 849,138

Per Balance Sheet / Fixed Assets 3,184,668 3,516,665

Less: Expendable Endowment - Year to 31.3.11 -

3,516,665

Represented by:

Balance at 1st April 2010 3,025,435

Add Capital Contributions

Voluntary levy 277,508

Gain/(loss) on sale of shares 18,008

Gain/(loss) on revaluation 119,997

Sundry donations 65

415,578


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Accretions

Dividends 87,696

Bank deposit interest 6,390 94,086

509,664

Management charges 18,434 491,230

3,516,665

Less: Expendable endowment - Year to 31.3.11 -

Per Balance Sheet / Capital & reserves 3,516,665

9 Analysis of net assets between funds

Unrestricted Restricted Capital

funds funds endowment Total

£ £ £ £

Fund balances at 31st March

2011 are represented by:

Fixed asset investments - - 3,516,665 3,516,665

Net current assets 442,175 329,497 - 771,672

442,175 329,497 3,516,665 4,288,337

10 Restricted funds

Brought Movement in resource Carried

forward Incoming (Outgoing) forward

£ £ £ £

New Producers Bursaries 271,949 185,011 (203,209) 253,751

Start Up Scheme - 128,775 (53,029) 75,746

271,949 313,786 (256,238) 329,497

New Producers Bursaries - this fund is to provide new and emerging theatrical producers with

grants of up to £15,000 each to assist in putting on specific projects and/or provide subsistence and

office accommodation during that process. In addition, the scheme contributes towards the funding

of apprenticeships, giving experience in the offices of established producers. By also providing a

mentor, the aim of the scheme is to develop the careers of these producers.

Start Up Scheme - this fund is to assist in kick-starting the careers of outstanding new theatre

producers by awarding up to £25,000 investment into a commercial West End or touring production.


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11 Unrestricted funds

Brought Movement in resource Carried

forward Incoming (Outgoing) Transfers forward

£ £ £ £ £

General fund 571,835 132,435 (262,095) - 442,175

12 Company status

The company is limited by guarantee and does not have a share capital. Each member gives a

guarantee to contribute a sum, not exceeding £1, to the company should it be wound up. At 31st

March 2011 there were 22 members (2010 - 22).

13 Related party transactions

During the year ten trustees of the company were involved in productions in which £238,500 was

invested. The trustees were not party to the decisions made to invest, and declared such interest

at Board Meetings. These investments were subject to normal trading conditions and no

preferential treatment was given to the trustees concerned, who were:

George Biggs Michael Lynas

Matthew Byam Shaw Kim Poster

Paul Elliott Mark Rubinstein

Michael Harrison Stephen Waley-Cohen

Robert Jude Peter Wilson

During the year a donation of £95,209 was received from the Theatre Development Trust. The

trustees listed below are also trustees of the Theatre Development Trust.

Nica Burns Michael Lynas

Matthew Byam Shaw Caro Newling

Richard Johnston Mark Rubinstein (to 1st July 2010)

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