Northern Ballet Theatre Limited Financial Statements · England, toured to 25 venues from a...

Company No. 947096

Northern Ballet Theatre Limited Financial Statements For the year ended 31 March 2014

Northern Ballet Theatre Limited 1

Financial statements for the year ended 31 March 2014

Company information

Company Registration Number : 947096

Charity Registration Number : 259140

Registered Office : 2 St Cecilia Street Quarry Hill Leeds LS2 7PA

Royal Patron : HRH The Earl of Wessex

Trustees : Sir David Wootton Dr Joanne Butterworth Mr Alan Harrison Mr John Procter Dr Maxine Room CBE Mr Terence Smith Mr Philip Swallow Ms Victoria Tomlinson Mr Daniel Evans

Secretary : Mrs Judith Hartley

Artistic Director : Mr David Nixon

Chief Executive : Mr Mark Skipper

Bankers : Lloyds Bank Plc PO Box 96 6-7 Park Row Leeds LS1 1NX

Solicitors : Addleshaw Goddard LLP Sovereign House Sovereign Street Leeds LS1 1HQ

Solicitors : Wrigleys Solicitors LLP 19 Cookridge Street Leeds LS2 3AG

Auditor Grant Thornton UK LLP Statutory Auditor Chartered Accountants 4 Hardman Square Spinningfields Manchester M3 3EB



Index to the financial statements

Chairman's report

3

Report of the trustees

4 – 18

Independent auditor's report

19 – 20

Principal accounting policies

21 – 24

Consolidated statement of financial activities

(including Consolidated Income and Expenditure

account)

25

Consolidated balance sheet

26

Company balance sheet

27

Consolidated cash flow statement

28

Notes to the financial statements 29 – 42



Chairman's report

I have pleasure in presenting this statement at the close of my first full year as Chair of Northern Ballet Theatre Limited ("Northern Ballet.") The Company continues to thrive with two new full-length productions on the horizon and confirmation of increased Arts Council funding from April 2015 which will allow the Company to tour the UK more widely presenting a varied programme to UK audiences. I am confident that the Company has the creativity and the competence to develop, regionally, nationally and internationally. During 2013/14, we created one new full length ballet - Cinderella and one new children's ballet – Three Little Pigs; revived four full length productions from repertoire, presented a mixed programme and continued to perform our first children’s ballet from 2012/13; ultimately Northern Ballet gave 235 performances in 33 venues in the UK and a further 6 performances across three Chinese cities. We hosted 59 performances in our studio theatre. Cinderella was a particular success for the Company; in Leeds alone 23,500 tickets were sold over Christmas 2013. The year saw a significant increase in fundraising income from a broad spectrum of supporters, which meant that the target for the year was exceeded as well as a significant contribution made to future periods giving us the ability to be able to plan with greater certainty and particularly with regard to being able to commission new work. I would like to take this opportunity to thank our major funders Arts Council England and Leeds City Council whose support is invaluable to the on-going success of the Company. I would also like to thank our corporate supporters particularly First Direct for their significant support of the company and the many trusts and foundations – both local and national - who have gone the extra mile to work with us on innovative funding propositions. Our Individual Donors remain extremely important to us and I thank all of those who have supported us through the Directors’ Circle, the Patrons Scheme, the Friends or through Sponsor a Dancer. I would also like to thank the Board of Trustees for their support and commitment to the Company as well as David Nixon, Artistic Director; Mark Skipper, Chief Executive; Judith Hartley, Finance Director and all the staff, dancers, musicians and technicians for their huge contributions to the success of Northern Ballet during 2013/14. Northern Ballet has ambitious plans for the next Arts Council National Portfolio spending round with increased touring and more productions on tour and I look forward to the continued success of the Company in the coming year.

Sir David Wootton Chairman – Northern Ballet



Report of the trustees

Trustees report

The Trustees of Northern Ballet Theatre Limited ('Northern Ballet' or 'the Company') are pleased to present their annual report together with the consolidated financial statements of the Group for the year ended 31 March 2014 which are prepared to meet the requirements for a director’s report and accounts under the Companies Act 2006. The financial statements comply with the Charities Act 2011, the Companies Act 2006 and the Statement of Recommended Practice – Accounting and Reporting by Charities (SORP 2005).

The Group comprises Northern Ballet and its subsidiaries Info Display Limited and Northern Ballet Theatre Company (Property) Limited. Info Display Limited is a non-charitable leaflet distribution company for the arts and heritage sector. Northern Ballet Theatre Company (Property) Limited is dormant.

Objectives and activities of Northern Ballet

The objects of the Company can be summarised as follows:

To produce and perform ballets

To advance education in the arts

The five key areas to consider to meet these objectives are Northern Ballet’s Productions, Audience, Tour, Services, Resources and Stakeholders. The Company is a narrative classical ballet company which tours extensively throughout the UK and when the opportunity arises overseas. From its home in Leeds it provides classical ballet training and learning experiences to the community as a whole. Its home since 2010 has been a 7 studio dance centre in the heart of Leeds with a studio dance theatre, the Stanley and Audrey Burton Theatre, which is used for small scale Northern Ballet performances. These excellent dance facilities are available to be used by other dance companies as a hire or by invitation. In shaping Northern Ballet's objectives for the year and planning Northern Ballet's activities, the Trustees have considered the Charity Commission's guidance on public benefit, in particular the guidance on public benefit and the charging of fees. The Company relies on box office income, grants and income from fees and sponsorship to cover its operational costs. In setting the level of ticket prices, fees, charges and concessions, the Trustees give careful consideration to the accessibility of all activities for those on low incomes.



Report of the trustees (continued)

Activities of Northern Ballet in the year

Performances

The Company performed 5 full length productions in the year which included a new production of Cinderella. Each production was a classical ballet performance of a narrative story. In addition there were performances of a Mixed Programme of three shorter pieces at the Company’s Stanley & Audrey Burton Theatre in Leeds.

Production Number of Venues Number of performances

The Great Gatsby 6 40

Mixed Programme 1 7

A Midsummer Night’s Dream 4 31

A Christmas Carol 5 35

Cinderella 2 25

Cleopatra 2 18

Total * 156

(*Northern Ballet travels to some venues more than once) The new production of Cinderella premiered at the Grand Theatre in Leeds in December 2013 and fulfilled Northern Ballet’s aim to create one new full length production a year. David Nixon, Northern Ballet’s Artistic Director, set the production in Imperial Russia; he was the director, choreographer and costume designer. He commissioned set designs by Duncan Hayler, lighting by Tim Mitchell and a new score by Philip Feeney. It was hugely successful and over 21 performances in Leeds 23,516 tickets were sold. The new production was made possible by support from The Emerald Foundation, The Foyle Foundation, The Garfield Weston Foundation and The John Ellerman Foundation. In comparison the Mixed Programmes used three pieces each with its own individual

choreographic style: Luminous Junc·ture from Kenneth Tindall, Concertante by Hans Van Manen and Angels in the Architecture by Mark Godden.




Artistic Values

Northern Ballet is aware that artistic tastes are not the same for everyone and that, when addressing some of the more challenging themes, the productions might give rise to offence. The Company takes the views of audiences very seriously and without compromising the integrity of the programme it seeks to respect the diverse ethnic, faith, sexual orientation and lifestyles of its audience.

Children’s Ballets

Northern Ballet entered the second year in its programme of ballets for children. The first children’s ballet The Ugly Duckling continued into the spring of 2013 with performances at some of the venues of the main tour. In the Autumn of 2013 the second children’s ballet Three Little Pigs choreographed by Hannah Bateman and Victoria Sibson premiered in Leeds community venues and in the Stanley and Audrey Burton Theatre. Ugly Duckling was broadcast on CBeebies and achieved an estimated audience of 254,000 making it the top performing title on the channel that week and it won a children’s BAFTA. The 2 productions were performed 79 times to 28,000 people. We delivered 86 workshops with 4,200 people participating at farms, in children’s centres, theatres and schools. Tickets were priced at £5 for adults and £4 for children with further discounts offered in the community centres in low income areas of Leeds. 4,154 tickets were sold with sales in the Stanley and Audrey Burton theatre reaching 99% of venue capacity. In January 2015 the BBC filmed a TV adaptation of Three Little Pigs for CBeebies which was broadcast on Easter Monday to an estimated audience of 250,000.

Production Venues Performances

Ugly Duckling 12 27

Three Little Pigs 13 52

Total 25 79

The Tour

Northern Ballet is committed to touring and to taking its productions across the length and breadth of the UK so that as wide an audience as possible has the opportunity to experience narrative classical ballet. In 2013/14 the Company toured full length productions to 15 UK towns and cities; taking in Edinburgh, Belfast and Cardiff and smaller towns which often do not have the opportunity to experience dance.

Summary of Main Tour 2013/14 2012/13 Increase/(Decrease)

Weeks Touring in the UK 24 20 4

Ballet Performances on Tour 156 134 22

Tickets Sold 118,632 112,773 5,859

Concessionary Tickets 46% 48% (2%)

Average Tickets Sold Per Performance

760 842 (82)

The number of touring weeks and performances in a financial year can increase or decrease depending on several factors: the timing of national holidays, the availability of theatres and a management decision to only visit certain venues, which make a smaller contribution to touring, less than once a year.




The Company’s production of Great Gatsby in London attracted the largest audience with 99.4% of seating capacity sold at Sadlers Wells Theatre. There was also a tour of its Children’s Ballets, which with the support of Arts Council England, toured to 25 venues from a community centre in Leeds to Stirling, London, Goole and Liverpool. In January 2014 the Company toured to China taking David Nixon’s A Midsummer Night’s Dream to Xiamen, Guangzhou and Beijing. The tour was supported by Leeds and Partners and Arts Council England. Northern Ballet is a passionate cultural ambassador for Leeds, Yorkshire and the UK and was pleased to be given the opportunity to support the cultivation of business relationships between Leeds and China.

Services

Learning

Northern Ballet works with Education and Community groups to encourage interest and enthusiasm for dance and theatre. The Learning Department delivered workshops and projects in Leeds and the wider Yorkshire region, as well as an extensive programme of work at the theatres on the national tour. Special events are also provided for children and adults with learning difficulties and disabilities to encourage freedom of expression and to enhance communication skills through creative arts. The Learning department supported the Short Ballet programme by outreach work in parks and sports centres. The aim was to inspire and engage children and their families who may not usually access the Arts. Northern Ballet’s START programme worked with 899 pupils from primary and secondary schools who took part in workshops and watched performances at venues in Leeds and Bradford; participating in dance and experiencing visiting the theatre for the first time. In partnership with the Princes Foundation for Children and the Arts a Hospice Project worked with sick children and their families. The eight families visited the theatre and took part in dance and photography workshops as a family group. The Company worked with 4 children’s centres in deprived areas of Leeds introducing movement through play activity which involved the children and their carers and parents. The 32 children and their families and carers visited Northern Ballet to take part in a dance workshop. The majority of families included in this project had English as a second language and had no previous access to the arts. There were eight programmes of work at venues on the national tour for the visually impaired with 99 people participating, each programme included a workshop and an audio described performance. The Learning Department delivered 34 dance sessions specifically for adults with learning disabilities and 8 dance sessions were delivered for physically disabled people in wheelchairs. The participants in these projects take part in regular dance activity and were also invited to watch the Company perform. A consistent broad range of Learning Programmes enables Northern Ballet to deliver high quality experiences, engaging new audiences and developing regular attendees and participants. From open access classes to pre-vocational training, specialised disability work to family fun days; working in schools, colleges and community settings.




The Academy

Northern Ballet’s Academy provides high quality dance training for children, young people and adults catering for all levels of ability from vocational dance training to open classes for recreation and fitness. The Northern Ballet Academy is a government nominated Centre For Advanced Training (CAT). The Academy CAT programme is an intensive course of ballet training for children from 11 years upwards. Although annual fees for this intensive programme are relatively high at £3,577 (2012/13 £3,577 pa) inclusive of VAT, students may apply to the DfE for funding, which is assessed by means testing, and they may receive a full grant from the government to cover their training costs. The Associate Programme offers training in Classical and Contemporary Dance. This is a less time intensive programme. Northern Ballet’s aim is that students receive the best possible training. Students are assessed by an annual appraisal and may move from one training programme to the other. Through the year 188 young people received classical ballet training under the CAT scheme or Associate programme. To complement the weekly classes an International Summer School took place in July 2013 with students drawn from the Company’s own students and visiting students from across the world who attended classes and workshops to improve their dance skills.




The Academy (continued)

The seven dance studios at Quarry Hill allow the Company to offer open classes to encourage everyone to dance from Mini Movers to the over 55’s. In 2013/14 there were 35 weekly open classes for children, young people and adults with approximately 636 registered as regular attenders.

Resources

During the year dancers from within the Company have had the opportunity to develop their choreographic skills. Premier Dancer Kenneth Tindall was commissioned to create his second

work for Northern Ballet, Luminous Junc·ture premiered in our Mixed Programme. Leading Soloist Hannah Bateman and Soloist Victoria Sibson choreographed Three Little Pigs. The production was well received with often sell out audiences. When the BBC commissioned Three Little Pigs for television our dancers and young choreographers had the opportunity to experience the adaptation of a dance work from stage to television. In February 2014 we opened the doors of our building at Quarry Hill to the public an estimated 1,000 people visited for performances, talks, demonstrations and to participate in dance classes.

Info Display Limited

Info Display Limited is a wholly owned subsidiary of Northern Ballet. It distributes leaflets for the arts and heritage sector in Yorkshire and Humberside. Info Display’s activities are consolidated within the financial statements for the twelve months ending 31 March 2014. As a result of cuts in funding Northern Ballet has actively sought alternative income streams to support its charitable activities. Trading surpluses from Info Display activities will be used to further the aims and objectives of Northern Ballet. For details of Info Display trading and net assets see Note 15 to the financial statements. In addition, Northern Ballet has looked to develop other activities to support its charitable aims and objectives. Opportunities to hire out available studio spaces when the company are on tour and to utilise the studio theatre to the full continue to be developed.

Stakeholders

Our stakeholders support our Charitable Activities, in addition to the funding received from the Arts Council England and Leeds City Council (page 11), Northern Ballet raises funds from grant income, sponsorship and donations to support its vibrant programme of performances, learning activities and classical dance training. Northern Ballet has enjoyed long term support from public entities, Arts Council England and Leeds City Council. The combined support from public entities represents 40% (2013: 46%) of Northern Ballet’s income in the year (See Financial Review – below.) In 2013/14, Northern Ballet attracted corporate support from national and local companies which amounted to £125,336. Within this sum £45,837 was received from First Direct and £23,750 from Hull College in support of the national tour and £40,000 was received from Leeds & Partners to support the company tour to China.




The Company received £681,945 from Trusts, Foundations and Donations.

Trust/Foundations/Donations

Unrestricted The Audrey and Stanley Burton Charitable Trust

£50,000

The Catatania Trust £5,000

The GC Armitage Charitable Trust £1,000

The Harriet Burton Charitable Trust £1,000

Hull & East Riding Trust £1,500

Kenneth Hargreaves Trust £1,000

The Rhododendron Trust £150

The Calmcott Trust £200

Gift Aid Claimed £19,709

Other Donations £157,620

Total Unrestricted £237,180

Restricted Sponsor a Dancer – Various Donors £114,487

J Paul Getty Jnr Charitable Trust £50,000

The Garfield Weston Foundation £50,000

The Emerald Foundation £50,000

The Foyle Foundation £50,000

The Liz & Terry Bramall Charitable Trust £50,000

Education Projects £23,650

The John Ellerman Foundation £25,000

Reed Foundation £11,039

Other Donations £10,500

Sponsorship in Kind £5,925

Total Restricted £440,601

Total £677,781

Northern Ballet is grateful for support in its activities. In 2013/14 Northern Ballet recognised the second year of income from The Sponsor a Dancer Campaign which was launched in response to Arts Council Funding cuts. The campaign raised £516,114 up to 31 March 2014 from the public, trusts and some corporations. This income is to be recognised over the 3 years to 31 March 2015. Northern Ballet wishes to thank all donors to this campaign for their generous contributions.




Strategic Report

The Strategic Report includes: Financial Review, The Future, Risk Management

Financial review

Results for the year ended 31 March 2014 are shown in the Consolidated Statement of Financial Activities on page 25. The assets and liabilities as at 31 March 2014 are shown in the Consolidated Balance Sheet on page 26. The financial statements should be read in conjunction with their related notes, which appear on pages 29 to 42 and have been prepared in accordance with relevant law and the SORP 2005. In summary, Group net outgoing resources for the year were £(405,474) (2013: £94,281) including £(393,523)(2013: £106,229) relating to the Company. Within this value, £(199,889) represents the net movement on The Building Project Fund within restricted reserves (note 21). All funding received to support the Quarry Hill building was placed in the restricted fund and is matched by the asset constructed. The annual depreciation cost for the Quarry Hill building of £131,813 will be charged against the restricted fund over 99 years. The annual depreciation cost for the Quarry Hill fixtures and fittings of £65,414 will be charged against the restricted fund over 5 years. Northern Ballet generated approximately 60 % (2013: 54%) of its income but could not exist without the support of Arts Council England and Leeds City Council.

The table below sets out the voluntary income received in the year. Voluntary Income - Major Funders and Others

2014

2013 Increase/ (decrease)

£’000 £’000 £’000 Arts Council England 2,519 2,512 7 Arts Council England – Managed Funds 250 250 - Arts Council England – Strategic Touring Funding

154 192 (38)

Leeds City Council 250 220 30 Leeds City Council – for Capital Project (3) 178 (181) Leeds City Council – Leeds Inspired - 20 (20) Leeds City Council – Capital Funding for Short Breaks

5 0 4

Other 678 469 214 3,853 3,841 16 Leeds City Council - for Capital Project refers to an adjustment for donations previously received from Leeds City Council to support the development of the new building at Quarry Hill. The Company moved into the building in October 2010.




Financial review (continued)

The Trustees believe the key performance indicators (KPI) for the Company are as follows:

2014

2013 Increase/

(decrease) Average Theatre Occupancy Main Tour 63.2% 68.9% (5.7%) Number of UK Performances on Main Tour 156 134 22 Number of UK Children's Performances 79 49 30 Ticket Yield – Main Tour £14 £15 £(1) Ticket Yield – Children’s Ballets £3 £3 - Income % Public Funding excluding Capital Project 40% 46% (6%) % Generated Income excluding Capital Project 60% 54% 6%

Pricing policy

To view our programme and for fuller details of ticket prices and discount terms and conditions visit our web site www.northernballet.com. Ticket prices range from £5 to £40 with significant discounts available for children, schools, groups and concessions.

The Future

Activities for 2014/15

Northern Ballet will continue to fulfil its busy tour commitments with 155 performances over 25 weeks in 16 cities in the UK. The new production of Cinderella, which premiered in Leeds in December 2013 will continue to tour through the year, visiting Hull, Cardiff, Norwich, Newcastle, Belfast, Manchester and Sheffield. There will be Mixed Programmes of performances in the Linbury Studio at the Royal Opera House, London and in the Stanley and Audrey Burton Theatre, Leeds which will include

Luminous Junc·ture from Kenneth Tindall (London Only), Concertante by Hans Van Manen, Concerto Six Twenty-Two by Lar Lubovitch and a new piece by Kenneth Tindall, The Architect (Leeds Only.) The successful Northern Ballet productions of Dracula, A Midsummer Night’s Dream, The Great Gatsby, Peter Pan and Wuthering Heights will be revived. In the New Year of 2015 Northern Ballet will perform Ballet De Monte Carlo’s production of Romeo and Juliet. Arts Council Strategic Touring Funding is in place to support the development of the third of three short ballets for children. In 2014/15 this will be Elves and the Shoemaker which will again give young talent (choreographers, costume makers, technicians and dancers) the opportunity to develop their skills. More than 80 performances of two short ballets are provisionally planned.




The Future (continued)

Arts Council England and Local Government funding for 2014/15 have been confirmed at the following levels:

Arts Council England £2,757,568 Leeds City Council £250,000

Northern Ballet will tour to Cardiff and Edinburgh with Arts Council England Cross Border Touring Funds developing national audiences. In addition to the above core funding, Arts Council England have committed to Cross Border Touring funding of £81,490.

Longer term aims and objectives The Company remains committed to touring and in 2015/16 will develop a mid scale tour incorporating a production of Madame Butterfly and the children’s ballet Elves and the Shoemaker. This tour will complement the existing tour of full productions to larger venues. It aims to take Northern Ballet’s work to new towns and cities; the mid scale tour is planned to include performances in Doncaster, Blackpool, Liverpool, Wolverhampton, Leicester, Richmond, Bromley, Stoke and Aylesbury.

Funding

In 2013/14 the Arts Council completed a review of English Opera and Ballet Companies. They have announced funding for these companies for the three year period from 1 April 2015 to 31 March 2018. Northern Ballet has been awarded an increase in their annual core funding which from 1 April 2015 will be £3,122,000 per annum (2014.15: £2,531,721) for three years. This is contingent on Leeds City Council maintaining their annual funding of £250,000.

Risk Management

The Trustees have in place a formal risk management process to assess risks and implement risk management strategies. This process includes review by Trustees and senior management. The process identifies the types of risks the Group faces, prioritises them in terms of likelihood of occurrence and potential impact and identifies the means of mitigating those risks. The Group uses various financial instruments. These include cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations. The existence of these financial instruments exposes the Group to a number of financial risks, which are described in more detail below. The main risks arising from the Group's financial instruments are credit risk and liquidity risk. The Trustees review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.




Reserve Policy

Reserves are needed to bridge the gap between the spending and receiving of resources and to cover unplanned emergency and other expenditure. The reserves required by a ballet company in a period of uncertain funding may be greater than those which were required in years when funding was more certain. In the short term the Company must plan for periods with reduced income for example when it is not touring. It must also consider the longer term plan which will include investment in productions and assets which are required in order for the company to have new productions to take it forward into future years.

The Company does not have a policy of maintaining reserves at a specific level or within a specific range. Rather, resources are managed and committed within a framework of financial planning that ensures the Company has both sufficient reserves and liquid resources to fulfil the commitments that it enters into. The Group’s reserves at 31 March 2014 were £ 13,686,691(2013: £14,092,165) of which £12,803,618 (2013: £13,036,084) is attributable to restricted reserves. Within restricted reserves a balance of £12,686,762 (2013: £12,886,651) relates to the building project fund. The Group balance sheet at 31 March 2014 shows net current assets of £312,642 (2013: £575,359) and bank balances of £882,825(2013: £1,203,254). A discussion of performance during the year can be found in the financial review section above. Northern Ballet owns a freehold storage facility in Leeds.




Reserve Policy (continued)

Given the support of its bank, Lloyds Bank plc and its major donor partners, the Trustees consider Northern Ballet to be a sound commercial going concern.

Detailed analysis of the Group's reserves can be found in the Consolidated Statement of Financial Activities (page 25) and note 21 to the accounts. They are considered adequate in the context of the Group’s future plans as set out above.

Investment Policy

Northern Ballet does not hold any investment funds other than monetary funds. Any surplus funds, over and above those needed for any immediate purpose will be held in an interest earning deposit account.

Trustees

The Trustees in office throughout the year, and their interests in the ordinary shares of Northern Ballet at the relevant dates, as recorded in the register maintained by the Company in accordance with the provisions of the Companies Act, were as follows: Ordinary Shares 31 March 31 March 2014 2013 Sir David Wootton (Chair) 3 1 Dr Joanne Butterworth 1 1 Mr John Procter 1 1 Mr Alan Harrison 1 1 Mrs Denise Jagger (Resigned 12 September 2014) 1 1 Mr Philip Swallow 1 1 Dr Maxine Room CBE 1 1 Ms Victoria Tomlinson 1 1 Ms Veronica Wadley (Resigned 14 March 2014) - 1 Mr Terence Smith 1 1 Mr Daniel Evans (Appointed 2 May 2014) - -

Mr Daniel Evans was appointed on 2 May 2014, his appointment will be ratified at the annual general meeting. The trustees are also directors of Northern Ballet within the meaning of the Companies Act 2006.




Appointment of Trustees

The Company aims to create a diverse Board with a broad mix of skills and experiences, with members drawn from a wide cross section of society. Trustees rotate on a regular basis to ensure that the board regularly receives the injection of fresh ideas and enthusiasm. The Nomination Committee monitors Trustees’ skills and identifies skill gaps. Prospective Trustees are identified by search, which could include introduction, recommendation, or advertisement. Candidates are invited to meet The Nominations Committee and Senior Management Team before recommendations are made to the Board. The Induction Process ensures that all new Trustees receive a copy of the Company's governing document, statutory accounts and recent minutes of Trustees meetings together with other current printed details. Company Trustees are encouraged to visit Northern Ballet to get to know employees and gain a better understanding of day–to–day activities. Trustees are encouraged to attend all new ballet productions.

Governance and Decision Making

Northern Ballet is a company limited by share capital, but where each member has undertaken to contribute a maximum of £10 in the event of wind up, and is a registered charity, number 259140. The governing documents are the Memorandum and Articles of Association. The body responsible for the management of the Company is the Board of Trustees. The Board meets four times a year. It has a minimum of eight members of which one third retire annually. There are sub-committees covering finance and general purposes, audit, nominations and remuneration. Trustees are appointed to the Board for generally a period of six years. The Chief Executive, Artistic Director and Company Secretary attend meetings of the board of Trustees. The Chief Executive and Artistic Director manage the day to day operations of the Company. The overall control of the Northern Ballet rests with the Trustees.

Related Parties

None of the Trustees receive remuneration or other benefit from their work with the Company. Any connection between a Trustee or senior manager of the Group with a related party must be disclosed to the full Board of Trustees. In the current year no such related party transactions were considered to compromise the decisions of the Trustees in relation to the Company.

Statement of Trustees' Responsibilities

The Trustees (who are also directors of Northern Ballet Theatre Limited for the purposes of company law) are responsible for preparing the Report of the trustees and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable laws). 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 judgements and accounting estimates that are reasonable and prudent;




Statement of Trustees' Responsibilities (continued)

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

there is no relevant audit information of which the charitable company's auditors are unaware; and

the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The Trustees have overall responsibility for the system of internal control for the Group. Internal Control processes implemented by the Trustees are as follows:

A comprehensive annual planning and budgeting process, which is approved by the Board of Trustees. Reports are made to the Board of Trustees at each meeting, which compare actual results against the phased budget and forecast.

Production of a detailed business plan which is regularly reviewed.

An Audit Committee which holds meetings at least twice a year. The Audit Committee reports directly to the Board of Trustees.

Delegation of authority and segregation of duties.

Identification and management of risk.

Liquidity Risk

The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Short-term flexibility is achieved through available cash balances and an unutilised overdraft facility.

Credit risk

The Company’s principal financial assets are cash and trade debtors. The credit risk associated with cash is managed by rigorous management of cash flow and detailed budgeting. The Trustees review cash flow at each board meeting.

The credit risk associated with debtors is mitigated as the Group receives in the region of 40% (2013: 46%) of its income from government funding. Other trade debtors include theatres, corporate sponsors, rental space hire and academy fees. Contractual agreements

18

between theatres, corporate sponsors and space rental set the limits for these debtors. The Financial Manager reviews all outstanding debtors on a regular basis and prompt action is taken to ensure recovery of any outstanding debt.

Going concern

The Trustees are aware that the current economic climate may have an impact on the financial success of the Group. In preparing the budgets and forecasts, the Trustees consider the repertoire, with the aim to plan a mix of productions which includes a popular Christmas season to generate significant box office income. In 2014/15, the Christmas production will be Peter Pan.

The Trustees carefully monitor activity in the year and, should box office income fall short of target levels, steps will be taken to reduce Company costs accordingly. There is an unutilised overdraft facility available which allows the Company to operate during periods of such adjustment.

In their consideration of going concern the Trustees have given specific regard to the Company's pension arrangements. Northern Ballet is a participant in a multi-employer Defined Benefit Pension Scheme - The Pension Scheme for Administration and Technical Staff in the Arts. The most recent triennial valuation of this scheme occurred as at 31 March 2013. A deficit on the fund of £3,174,000 must be funded by participating employers. Northern Ballet has agreed to pay £734,400 of this deficit and agreement has been reached with the Trustees of the scheme to repay these costs over fifteen years. Northern Ballet, along with the other employers in the scheme, ceased future accruals to the scheme in 2013.

The potential statutory debt payable under Section 75 of the Pensions Act, as mentioned in the prior year financial statements, no longer exists on the basis that the company no longer has any active members within the scheme. Further details in relation to this pension scheme can be found at Note 26.

After making enquiries, the Board has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, being a period of twelve months after the date on which the report and financial statements are signed. For this reason, it continues to adopt the going concern basis in the financial statements. Further information is given in the Principal accounting policies (page 21).

Auditor

Grant Thornton UK LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006 unless the charitable company receives notice under section 488(1) of the Companies Act 2006.

TRUSTEES ANNUAL REPORT, INCLUDING THE STRATEGIC REPORT, APPROVED ON BEHALF OF THE TRUSTEES AND DIRECTORS. Signed Sir David Wootton Chair

On 3 December 2014

19

Independent auditor's report to the members of Northern Ballet Theatre Limited

We have audited the financial statements of Northern Ballet Theatre Limited for the year ended 31 March 2014 which comprise the Principal accounting policies, the Consolidated statement of financial activities (including Consolidated Income and Expenditure account), the Consolidated and Company balance sheets, the Consolidated cash flow statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 auditor’s 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.

Respective responsibilities of trustees and auditor

As explained more fully in the Statement of Trustees’ Responsibilities set out on pages 16 and 17, 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. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB's) Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate.

Opinion on financial statements

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent charitable company’s affairs as at 31 March 2014 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion the information given in the Strategic Report and Report of the trustees for the financial year for which the financial statements are prepared is consistent with the financial statements.

20

Independent auditor's report to the members of Northern Ballet Theatre Limited

Matters on which we are required to report by exception

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

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

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

certain disclosures of trustees’ remuneration specified by law are not made; or

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

Christopher Martin Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants MANCHESTER On 19 December 2014

21

Northern Ballet Theatre Limited


Principal accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold property. The financial statements have been prepared in accordance with applicable UK accounting standards (United Kingdom Generally Accepted Accounting Practice) and follow the recommendations in the Statement of Recommended Practice : Accounting by Charities (the SORP) published in March 2005. The principal accounting policies of the Group have remained unchanged from the previous period and in the Trustees' opinion remain the most appropriate to apply.

Going concern

After making enquiries, the Board has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of twelve months after the date on which the report and financial statements are signed. The principal factors (subject to normal levels of commercial risk in the current economic climate) underlying this judgement include:

confirmed grant funding for 2014/15 from the Arts Council England and Leeds City Council;

current levels of financial performance by comparison with budgeted expectations; and

expected revenues from the programme planned for 2014/15. The Company operates in an environment that continues to be the subject of uncertainty regarding future funding levels. The Board will carefully monitor this environment and take appropriate action if required in the context of any reductions to grant funding in the future.

Basis of consolidation

The Group financial statements consolidate on an acquisition basis those of the Company and of its subsidiary undertakings (note 15) drawn up to 31 March 2014.

Taxation

The Company undertakes charitable activity and is not subject to corporation tax. Info Display Limited, a subsidiary undertaking, undertakes trading activities and is subject to corporation tax.

INCOMING RESOURCES

Voluntary income

All monetary donations and gifts are included in full in the statement of financial activities when receivable, provided that there are no donor–imposed restrictions as to the timing of the related expenditure, in which case recognition is deferred until the pre–condition has been met. Legacies to which the charity is entitled are included in the statement of financial activities unless they are incapable of measurement. Intangible income, which comprises donated services, is included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. An equivalent amount is charged as expenditure.

22



Principal accounting policies (continued)

Voluntary income (continued)

Donations under Gift Aid together with the associated income tax recoveries are credited as income when the donations are received. Donated services and facilities are included at the value to the Group where this can be quantified. No amounts are included in the financial statements for services donated by volunteers.

Revenue grants are credited as incoming resources when they are receivable provided conditions for receipt have been complied with, unless they relate to a specified future period, in which case they are deferred. Grants for the purchase of fixed assets are credited to restricted incoming resources when receivable. Depreciation on the fixed assets purchased with such grants is charged against the restricted fund.

Activities for generating funds

Where sponsorship income is received in advance of performance, its recognition is deferred and included in creditors.

Info Display income

Turnover comprises revenue recognised by the company in respect of services supplied during the twelve month period, exclusive of Value Added Tax and trade discounts. Income is recognised on a straight line basis over the period in which the service is provided.

Investment income

Investment income, including associated income tax recoveries, is recognised when receivable.

Income from charitable activities

Charitable trading income represents amounts receivable by the Group for performances (box office and programme receipts) and fees for educational activities. Such income is recognised when the associated activity is undertaken.

RESOURCES EXPENDED

Expenditure, which is charged on an accruals basis, is allocated between :

Costs of generating funds which includes all costs relating to activities where the primary aim is to raise funds, along with an apportionment of support costs, as set out in note 7 to the accounts.

Charitable activities which includes all costs relating to activities relating directly to the fulfilment of the charity's objectives, with an apportionment of support costs, as set out in note 7 to the accounts.

Governance costs which include the cost of trustee expenses, company secretary duties and audit fees.

Support costs relate to several activities, and include functions such as administration, building costs, payroll and accounting and are allocated across the categories of charitable activities and costs of generating funds as set out in note 7 to the accounts. Support costs relating to a single activity are allocated directly to that activity.

23




Fund accounting

Restricted funds are to be used for specified purposes laid down by the donor. Expenditure for those purposes is charged to the fund, together with a fair allocation of overheads and support costs. Unrestricted funds are donations and other incoming resources received or generated for expenditure on the general objectives of the Company.

Tangible fixed assets and depreciation

Northern Ballet Theatre Limited has adopted a £1,000 capitalisation threshold for individual assets, although assets of lesser value should be capitalised if they form part of a group, with a group value in excess of £1,000. The £1,000 figure includes VAT where this is not recoverable. Tangible fixed assets are stated at cost or valuation, net of depreciation and any provisions for impairment. The freehold property is stated at market value on the basis of a valuation performed in June 2013 (note 13). Depreciation is not charged on the freehold property as it is considered to have an indefinitely long useful economic life and taking account of regular maintenance the annual depreciation charge would not be material. Accordingly, no statement of historical cost profits and losses is shown. The Leasehold Land and Buildings are the home of the Company in Leeds which has a 250 year lease with Leeds City Council. The Company moved into the building in the Autumn of 2010. From that date depreciation was charged on the asset, the asset will be written off over its estimated useful life of 99 years. Depreciation is calculated to write down the cost of all tangible fixed assets by the straight line method over the following periods : Leasehold land and buildings 99 years Computer equipment 4 years Motor vehicles 4 years All other tangible fixed assets 5 years

Goodwill and amortisation

Goodwill arising on an acquisition of a trade or subsidiary undertaking is the difference between the fair value of the consideration paid and the fair value of the assets and liabilities acquired. Positive goodwill is capitalised and amortised through the consolidated statement of financial activities over the Directors’ estimate of its useful economic life (6 years with regard to Info Display Limited). Impairment tests on the carrying value of goodwill are undertaken:

At the end of the first full financial year following acquisition;

In other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Stocks

Stocks are stated at the lower of cost and net realisable value.

24




Pension costs

Defined contribution scheme

For defined contribution schemes the amount charged to the consolidated statement of financial activities in respect of pension costs is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown within creditors or prepayments in the balance sheet as applicable.

Defined benefit scheme

The Company makes payments to a defined benefit scheme which has ceased to accrue pension benefits but which has a deficit in its fund. The Company is unable to identify its share of the underlying assets and liabilities. The pension costs charged to the consolidated statement of financial activities are the agreed payments payable to the scheme in respect of the accounting period. Further details relating to this scheme are set out in note 26.

Foreign currencies

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at rates of exchange ruling at the balance sheet date. Exchange differences are dealt with in the statement of financial activities.

25



Consolidated statement of financial activities (including Consolidated Income and Expenditure account)

The accompanying notes and accounting policies form part of these financial statements

Unrestricted

funds Restricted

funds 2014 2013 Note £ £ £ £ INCOMING RESOURCES Incoming resources from generated funds

Voluntary income 1 3,256,282 596,267 3,852,549 3,841,111 Activities for generating funds 2 863,960 - 863,960 953,053 Investment income 3 2,266 - 2,266 2,615 Incoming resources from charitable activities

4 2,736,739 -

2,736,739

2,374,349

Total incoming resources 6,859,247 596,267 7,455,514 7,171,128

RESOURCES EXPENDED Costs of generating funds Costs of generating voluntary income 5 77,308 - 77,308 76,664 Costs of fundraising : other costs 107,991 - 107,991 96,865 Costs of generating funds: building 120,104 41,565 161,669 153,994 Costs of generating funds: leaflet distribution

314,975

314,975 284,880

- Charitable activities Touring 8 6,047,843 760,937 6,808,780 6,082,836 Academy (Classical training) 9 306,845 26,231 333,076 324,906 Goodwill amortisation 14 11,950 - 11,950 11,950 Governance costs 10 45,239 - 45,239 44,752 Total resources expended 7,032,255 828,733 7,860,988 7,076,847

Net (expenditure)/income for the year (173,008) (232,466) (405,474) 94,281

Loss on revaluation of fixed asset for group’s own use

- - - (25,000)

Net movement in funds (173,008) (232,466) (405,474) 69,281

Reconciliation of funds Total funds brought forward 21 1,056,081 13,036,084 14,092,165 14,022,884 Total funds carried forward 21 883,073 12,803,618 13,686,691 14,092,165

All the results are derived from continuing operations.

Refer to note 12 for information regarding the Charitable Company's financial activities.

26



Consolidated balance sheet


2014 2014 2013

Note Unaudited pro forma

(note 13)

£ £ £ Fixed assets Tangible assets 13 643,436 13,330,198 13,461,005 Goodwill 14 43,894 43,894 55,844

687,330 13,374,092 13,516,849 Current assets Stocks 16 21,015 21,015 22,562 Debtors 17 620,089 620,089 875,321 Cash at bank and in hand 882,825 882,825 1,203,254

1,523,929 1,523,929 2,101,137 Creditors: amounts falling due within one year 18 (1,211,287) (1,211,287) (1,525,778)

Net current assets 312,642 312,642 575,359 Total assets less current liabilities 999,972 13,686,734 14,092,208

Called up share capital 20 29 29 29 Capital redemption reserve 14 14 14 Income funds Restricted funds 21 116,856 12,803,618 13,036,084 Unrestricted funds Revaluation reserve 21 246,473 246,473 246,473 Other charitable funds 21 636,600 636,600 809,608 999,972 13,686,734 14,092,208

These financial statements were approved by the Board of Trustees on 3 December 2014. Sir David Wootton - Trustee Company number: 947096

27



Company balance sheet


2014 2013

Note £ £

Fixed assets Tangible assets 13 13,283,110 13,422,201 Investments 15 106,077 106,077

13,389,187 13,528,278 Current assets Stocks 16 21,015 22,562 Debtors 17 661,583 861,140 Cash at bank and in hand 694,352 1,032,093

1,376,950 1,915,795 Creditors: amounts falling due within one year 18 (1,034,671) (1,319,083)

Net current assets 342,279 596,712 Total assets less current liabilities 13,731,466 14,124,990

Called up share capital 20 29 29 Capital redemption reserve 14 14 Income funds Restricted funds 21 12,803,618 13,036,084 Unrestricted funds Revaluation reserve 21 246,473 246,473 Other charitable funds 21 681,332 842,390 13,731,466 14,124,990

These financial statements were approved by the Board of Trustees on 3 December 2014. Sir David Wootton - Trustee Company number: 947096

28



Consolidated cash flow statement


2014 2013

Note £ £

Net cash inflow /(outflow) from operating activities (see below) (186,863) 651,521

Returns on investments and servicing of finance

Interest received 2,266 2,615

Taxation - (75)

Capital expenditure and financial investment

Purchase of tangible fixed assets (135,832) (273,654)

(135,832) (273,654)

Acquisitions and disposals

Payments to acquire subsidiary undertakings - (25,516)

Cash acquired with subsidiary undertaking - -

- (25,516)

(Decrease)/increase in cash 24 (320,429) 354,891

Net cash generated from operating activities

Net incoming resources for the year before taxation (405,474) 88,292

Interest receivable (2,266) (2,615)

Depreciation 266,639 261,041

Amortisation 11,950 11,950

Decrease/(increase) in stock 1,547 (1,074)

Decrease/(increase) in debtors 233,512 (99,761)

Decrease/(increase) in accrued income 21,720 (23,626)

(Decrease)/increase in creditors (199,485) 211,682

(Decrease)/increase in deferred income (115,006) 205,632

Net cash (outflow)/inflow from operating activities (186,863) 651,521

29



Notes to the financial statements

1 Voluntary income

Unrestricted Restricted 2014 2013 £ £ £ £ Grant income Arts Council England 2,769,102 154,163 2,923,265 2,954,997 Leeds City Council 250,000 1,503 251,503 417,551 Other voluntary income Donations and gifts 237,180 440,601 677,781 468,563

3,256,282 596,267 3,852,549 3,841,111

Donations & subscriptions Grants

2014

2013

£ £ £ £ Voluntary income – Analysis by income type

Arts Council England - 2,923,265 2,923,265 2,954,997 Performances and touring 677,781 250,000 927,781 708,563 Long term projects - 1,503 1,503 177,551 677,781 3,174,768 3,852,549 3,841,111

Gifts in kind of £5,925 (2013 : £15,488) have been recognised as restricted incoming resources in the year on the basis of the Trustees' estimate of their value.

Donated facilities

2014 2013

The following donated facilities have been recognised as income : £ £

Fundraising 5,925 -

Production Costs - 8,188

Printing - 7,300

5,925 15,488

Equivalent amounts have been charged as resources expended.

30



Notes to the financial statements (continued)

1 Voluntary income (continued)

Donations deferred (refer to note 19) represents donations which have been granted deferral by the donor. Donor imposed restrictions as to timing of related expenditure are as follows :

2014 2013

£ £

Garfield Weston Foundation – New Productions 3 Years 100,000 150,000

Wades Charity - Under 3’s Project 2,000 2,000

J Paul Getty Jnr Charitable Trust – Support for Touring - 50,000

Buy Back a Dancer/Sponsor a Dancer 180,525 231,729

Mr Nick Lyle & Mrs Sheila Nelson – Support for the week in Norwich 7,500 4,500

Sir John Fisher – Short Ballet 4,920 -

Cookson Trust – Short Ballet 200 -

Holbeck Charitable Trust – Academy Bursary 3,000 -

298,145 438,229

2 Activities for generating funds

Unrestricted Restricted 2014 2013 £ £ £ £ Sponsorship 143,050 - 143,050 168,532 Hire of Space and Facilities 246,500 - 246,500 324,414 Leaflet Distribution 474,410 - 474,410 460,107

863,960 - 863,960 953,053

3 Investment income

2014 2013

Investment income comprises income from : £ £

Bank deposits 2,266 2,615

All of the investment income is derived from assets within the UK.

4 Incoming resources from charitable activities

Unrestricted Restricted 2014 2013 £ £ £ £ Touring 2,240,036 - 2,240,036 1,966,485 Learning 130,072 - 130,072 57,636 Academy 366,632 - 366,632 350,228 2,736,739 - 2,736,739 2,374,349

31




4 Incoming resources from charitable activities (continued)

An analysis of incoming resources from charitable activities by geographical market is given below :

2014 2013

£ £

United Kingdom 2,635,697 2,372,473

Europe - -

Rest of the world 101,042 1,876

2,736,739 2,374,349

5 Costs of generating voluntary income

Unrestricted

direct costs

Unrestricted support

costs

Unrestricted total

costs

Restricted total

direct costs

2014

Total Cost

2013 Total Cost

£ £ £ £ £ £ Fundraising 64,783 12,525 77,308 - 77,308 76,664

6 Costs of charitable activities

Unrestricted

direct costs

Unrestricted support

costs

Unrestricted total

costs

Restricted total

direct costs

2014

Total Cost

2013 Total Cost

£ £ £ £ £ £ Touring (note 8) 5,522,030 523,610 6,045,640 763,140 6,808,780 6,082,836 Academy (note 9) 272,400 34,445 306,845 26,231 333,076 324,906 5,794,430 558,055 6,352,485 789,371 7,141,856 6,407,742

7 Analysis of support costs

Support services

Total

Total

2014 2014 2013 £ £ £

Cost of generating voluntary income (note 5) 12,525 12,525 20,435

Charitable activities: Touring (note 6) 523,610 523,610 482,404 Classical Training (note 6) 34,445 34,445 37,463 570,580 570,580 540,302

Support costs relate to several activities, and include functions such as payroll, administration, general management and building operating costs. Support costs are apportioned based on the number of full time staff equivalents.

32




8 Analysis of expenditure on touring

Unrestricted Restricted 2014 2013 £ £ £ £ Dancers Touring 1,541,416 180,525 1,721,941 1,605,208 Marketing and Press 692,907 55,500 748,407 678,373 Technical 1,339,268 - 1,339,268 1,176,086 Orchestra 896,477 - 896,477 789,318 Royalties 91,320 - 91,320 60,689 New Productions and Revivals 190,768 180,925 371,693 319,318 Overseas Tour 129,025 - 129,025 5,582 Learning 148,754 178,216 326,970 295,323 Corporate Sponsorship/Friends 45,007 - 45,007 38,692 Direct Support Costs 392,987 - 392,987 376,646 Direct Depreciation 12,872 165,771 178,643 174,761 In House Performances 43,432 - 43,432 80,436 Support Costs 523,610 - 523,610 482,404

6,047,843 760,937 6,808,780 6,082,836

9 Analysis of expenditure on classical training

Unrestricted Restricted 2014 2013 £ £ £ £ Associate Classes 61,156 - 61,156 48,727 Yorkshire Young Dancers 126,465 26,231 152,696 228,007 Summer School 84,779 - 84,779 10,709 Support Costs 34,445 - 34,445 37,463 306,845 26,231 330,076 324,906

10 Governance costs

2014 2013

Governance costs are broken down as follows : £ £

External audit fee

- audit services - charitable company 11,100 10,882

- subsidiary 4,500 4,720

- non-audit services 400 400

Company secretary duties 29,239 28,750

45,239 44,752

33




11 Staff costs

Group 2014 2013

£ £

Wages and salaries 2,988,862 2,899,087 Social security costs 305,815 282,305 Pension costs 126,591 123,026 3,421,268 3,304,418

The average number of permanent employees of the Group was as follows: 2014 2013

Number Number

Full time employees 98 99 Part time employees 9 7 107 106

The number of full time equivalents was : 102 104

Full time equivalent employees fell into the following categories : 2014 2013

Number Number

Production 69 69 Administration 25 29 Distribution 8 6 102 104

Employees receiving remuneration in excess of £60,000 are analysed as follows: 2014 2013

£ £

£60,001 to £70,000 1 1 £70,001 to £80,000 - - £80,001 to £90,000 2 2

During the year the following amounts were paid to higher paid employees as shown above : 2014 2013

£ £

Pension contributions to money purchase schemes 11,702 9,069

Three higher paid employees are accruing retirement benefits under a defined contribution scheme. No remuneration was received by any Trustee during the year (2013 : £Nil). No expenses were paid to Trustees during the year (2013: £Nil).

34




12 The Charity’s statement of financial activities

The charitable company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own statement of financial activities in these financial statements. The financial activities on page 25 include £7,135,921 (2013: £6,881,127) of incoming and £7,529,443 (2013: £6,799,898) of outgoing resources relating to the Company.

13 Tangible fixed assets

The group

Freehold property

Leasehold Land and Buildings

Stage equipment

Fixtures, fittings

and office equipment

Computer equipment

Motor Vehicles Total

£ £ £ £ £ £ £ Cost At 1 April 2013 400,000 13,049,453 427,540 476,496 79,616 7,965 14,441,070 Additions - - 78,865 43,304 16,325 - 138,494 Re-adjustment - (2,662) - - - - (2,662) Disposal - - - - - - - At 31 March 2014 400,000 13,046,791 506,405 519,800 95,941 7,965 14,576,902

Depreciation At 1 April 2013 - 326,394 378,291 223,765 49,790 1,825 980,065 Provided in the year - 131,813 23,691 99,212 9,933 1,990 266,639 Disposal - - - - - - -

At 31 March 2014 - 458,207 401,982 322,977 59,723 3,815 1,246,704

Net book amount

At 31 March 2014 400,000 12,588,584 104,423 196,823 36,219 4,150 13,330,198

At 31 March 2013 400,000 12,723,059 49,249 252,731 29,826 6,140 13,461,005

The company

Freehold property

Leasehold Land and Buildings

Stage equipment

Fixtures, fittings

and office equipment

Computer equipment

Motor Vehicles Total

£ £ £ £ £ £ £ Cost At 1 April 2013 400,000 13,049,453 427,540 449,930 50,988 7,965 14,385,876 Additions - - 78,865 33,530 1,060 - 113,455 Re-adjustment - (2,662) - - - - (2,662) Disposal - - - - - - - At 31 March 2014 400,000 13,046,791 506,405 483,460 52,048 7,965 14,496,669

Depreciation At 1 April 2013 - 326,394 378,291 213,983 43,182 1,825 963,675 Provided in the year - 131,813 23,691 89,556 2,834 1,990 249,884 Disposal - - - - - - - At 31 March 2014 - 458,207 401,982 303,539 46,016 3,815 1,213,559

Net book amount

At 31 March 2014 400,000 12,588,584 104,423 179,921 6,032 4,150 13,283,110

At 31 March 2013 400,000 12,723,059 49,249 235,947 7,806 6,140 13,422,201

35




13 Tangible fixed assets (continued)

The group and company The freehold property was valued by Eddisons, Chartered Surveyor as at 7 June 2013 (which management deem to be the value as at 31 March 2014) on an open market value basis. The valuation deemed the property to have fallen in value from £425,000 to £400,000, which has been reflected in the revaluation reserve. If the freehold property had not been re-valued it would have been included at a cost of £230,300 with accumulated depreciation of £130,512. The Leasehold Land and Buildings are the home of the Company at Quarry Hill in Leeds which has a 250 year lease with Leeds City Council. The Company moved into the building in the Autumn of 2010. From that date depreciation was charged on the asset, the asset will be written off over its estimated useful life of 99 years. The asset is supported in the Balance Sheet by a restricted reserve of the grants donated by Leeds City Council, Arts Council England and generous donations from supporters of the building campaign.

Unaudited pro forma information To reflect certain restrictions over the use of the leasehold land and buildings, the Company has disclosed pro forma information on the face of the consolidated balance sheet. These figures represent how the consolidated balance sheet would look (all other factors being equal) if the leasehold property (and associated reserves) had been treated as "off-balance sheet" i.e. the costs relating to the project had been expensed in the statement of financial activities and cash received when the Company moved into the building in the Autumn of 2010. This unaudited pro forma information is provided to illustrate the Trustees' view that the Company is not able to benefit from any rights to sell the property or to raise a charge on the property to secure borrowings or a loan. Leeds City Council and Arts Council England have a registered charge on the property.

14 Intangible fixed assets

The group

Goodwill

£ Cost As at 1 April 2013 71,700 Additions (see below) - At 31 March 2014 71,700

Amortisation As at 1 April 2013 15,856 Provided in the year 11,950 At 31 March 2014 27,806

Net book amount At 31 March 2014 43,894

At 31 March 2013 55,844

36




15 Investments

The company

Subsidiary undertakings

£ Cost At 1 April 2013 106,077 Additions - At 31 March 2014 106,077

Name

Country of registration

Class of shares held

Proportion of nominal value held Principal activities

Northern Ballet Theatre Company (Property) Limited

England

£1 ordinary

100% Dormant

Info Display Limited England £1 ordinary 100% Leaflet distribution

company for the arts and heritage sector

Operations of trading subsidiary

31 March 2014

30 November 2011 to 31

March 2013

A summary of the results of the trading subsidiary are set out below : £ £

Turnover (including interest receivable) 474,519 460,221

Other income and charges (344,704) (320,988)

Surplus 129,815 139,233

Payment under Gift Aid (129,815) (145,221)

Tax on surplus on ordinary activities - 5,988

Retained in subsidiary - -

37




15 Investments (continued)

Operations of trading subsidiary (continued)

Year ended 31 March

2014

Period ended

31 March 2013

The net assets and liabilities of the subsidiary were : £ £

Fixed assets 47,088 38,802 Current assets 340,819 377,812 Creditors : amounts falling due within one year (370,558) (399,265)

Net current assets/(liabilities) 17,349 (21,453)

Total assets less current liabilities 17,349 17,349

Aggregate share capital and reserves 17,349 17,349

16 Stocks

2014 2013

The group and the company £ £

Ballet shoes 18,137 15,619

Programmes and brochures 2,878 6,943

21,015 22,562

17 Debtors

2014 2013 2014 2013

Group Group Company Company

£ £ £ £

Trade debtors 452,920 685,224 316,104 497,733

Other debtors - 10,308 - 6,913

Prepayments 136,154 127,054 121,490 118,790

Accrued income 31,015 52,735 30,185 52,735

Amounts due from subsidiary undertakings - - 193,804 184,969

620,089 875,321 661,583 861,140

38




18 Creditors : amounts falling due within one year

Group Company

2014 2013 2014 2013

£ £ £ £

Trade creditors 249,809 437,127 240,261 426,086

Amounts due to subsidiary undertakings - - 100 100

Social security and other taxes 171,979 181,803 131,064 145,004

Corporation tax - - - -

Pension contributions 12,324 12,164 11,531 11,534

Other creditors 14,230 17,467 14,231 17,467

Accruals 97,030 96,296 86,380 73,540

Deferred income (note 19) 665,915 780,921 551,104 645,352

1,211,287 1,525,778 1,034,671 1,319,083

19 Deferred income

Group Company

£ £

Deferred income brought forward 780,921 645,354

Released in the year (565,058) (429,489)

Deferred in the year 450,052 335,239

Deferred income carried forward 665,915 551,104

Deferred income at 31 March 2014 includes; £180,525 raised via the Sponsor a Dancer campaign to be utilised in 2014/15 to offset reductions in core funding, pre-paid fees of £85,705 for student training in 2014, £100,000 received from the Garfield Weston Foundation to support 2 productions across 2 future years, £25,000 received from the Audrey and Stanley Burton Charitable Trust to support educational work in the first 6 months of 2014/15 and £95,962 from Arts Council England to support touring to Edinburgh, Belfast and Cardiff in 2014/15. It also includes £114,811 for the distribution of leaflets by its subsidiary company over a period of time which extends into 2014/15.

39




20 Share capital

Group and Company

2014 2013

£ £

Authorised

100 Ordinary shares of £1 each 100 100

Allotted, called up and fully paid

29 Ordinary shares of £1 each 29 29

Each member has undertaken to contribute a maximum of £10 to the costs of the company in the event of a winding up.

21 Income funds

Income funds are analysed as follows:

Balance at 31 April

2013

Movement during the year

Balance at 31 March 2014

Incoming resources/

adjustments Expenditure The Group £ £ £ £ Restricted Sponsorship in kind (note 1) - 5,925 (5,925) - Purchase of touring pianos 1,411 - - 1,411 Production fund - 175,000 (175,000) - Education projects 5,241 21,790 (21,993) 5,038 Tour fund - 55,500 (55,500) - Education professional training 54,893 - (26,230) 28,663 Building development 6,064 - (6,064) - Building project fund 12,886,651 (2,662) (197,227) 12,686,762 Sponsor a Dancer (note 19) - 180,525 (180,525) - Short Ballets 81,824 160,189 (160,269) 81,744

13,036,084 596,267 (828,733) 12,803,618

Unrestricted 1,056,081 6,859,247 (7,032,255) 883,073 14,092,165 7,455,514 (7,860,988) 13,686,691

Included within unrestricted funds is £ 246,473 (2013: £246,473) in respect of a revaluation reserve.

40




21 Income funds (continued)

Balance at 31 April

2013

Movement during the year

Balance at 31 March 2014

Incoming resources/

adjustments Expenditure The company £ £ £ £ Restricted Sponsorship in kind (note 1) - 5,925 (5,925) - Purchase of touring pianos 1,411 - - 1,411 Production fund - 175,000 (175,000) - Education projects 5,241 21,790 (21,993) 5,038 Tour fund - 55,500 (55,500) - Education professional training 54,893 - (26,230) 28,663 Building development 6,064 - (6,064) - Building project fund 12,886,651 (2,662) (197,227) 12,686,762 Sponsor a Dancer (note 19) - 180,525 (180,525) - Short Ballets 81,824 160,188 (160,268) 81,744

13,036,084 596,266 (828,732) 12,803,618 Unrestricted 1,088,863 6,539,653 (6,700,711) 927,805 14,124,947 7,135,919 (7,529,443) 13,731,423

Included within unrestricted funds is £246,473 (2013: £246,473) in respect of a revaluation reserve.

Restricted funds – Group and Company

The Purchase of Touring Pianos fund was established in the year ended 31 March 2003 by donations from various entities. The conditions of the gifts were that the income was to be used to purchase new pianos for use when the company is on tour. The Production fund was established in the year ended 31 March 2011 by donations from Trusts and Individuals and continues to attract annual donations. Gifts are given on the condition that the income be used to support the development of new productions. The Education Project fund was established in the year ending 31 March 2009 with donations from numerous Trusts and Foundations, the conditions of the donations stipulated the educational work to be supported. In the year this fund has supported a programme of theatre visits and workshops for children of all abilities in Leeds. The Tour fund was established in the year ending 31 March 2004. The income received in the year ended 31 March 2014 of £55,500 was used to develop the Company's work in Bradford, Nottingham, Hull and Norwich.

41




21 Income funds (continued)

Restricted funds

The Education Professional Training fund was established in the year ending 31 March 2005. This fund was established as a result of funding received from the Department for Education (DfE) to develop dance training in Yorkshire. Successful applicants attend a five year dance training scheme after school, at the weekend and during school holidays. The Building Development fund was established in the year ending 31 March 2012 by a gift from Sir Siegmund Wharburg’s Voluntary Settlement. The purpose of the gift was to develop activity in the building at Quarry Hill. The Building Project fund was established in the year ended 31 March 2001 by donations from various entities. The conditions of the gifts and grants are that the income would be used to develop the Company's new building at Quarry Hill, Leeds. Expenditure in the year refers to the depreciation charge. The Sponsor a Dancer fund was created to support the work of the Company after the announcement of Arts Council Funding cuts for the three year period from 2012 to 2015. The aim of the fund is to maintain 40 dancers in the Company over the three year period. The Short Ballet fund was established in the year ending 31 March 2013 to support the development of three short ballets for children. Donations were received in the year from the Arts Council and other charitable trusts.

22 Analysis of group net assets between funds

Fund balances at 31 March 2014 are represented by :

Unrestricted

funds Restricted

funds Total funds

£ £ £ Tangible fixed assets 621,724 12,708,476 13,330,200 Intangible assets 43,894 - 43,894 Current assets 1,431,473 92,454 1,523,927 Current liabilities (1,211,287) - (1,211,287) Total net assets 885,804 12,800,930 13,686,734

23 Reconciliation of net cash flow to movement in net funds

2014 2013

£ £

Increase/(decrease) in cash (320,429) 354,891

Change in net funds resulting from cash flows (320,429) 354,891

Net funds at 1 April 2013 1,203,254 848,363

Net funds at 31 March 2014 882,825 1,203,254

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24 Analysis of changes in cash and cash equivalents

2013 Cashflows 2014 £ £ £ Cash at bank and in hand 1,203,254 (320,429) 882,825

25 Financial commitments

Group and Company

The Group and Company have an unutilised overdraft facility that is secured by way of first legal charge over the freehold property.

26 Pensions

Defined contribution scheme - Company

The Company operates money purchase pension schemes for the benefit of the employees. The assets of the scheme are administered by trustees, in a fund independent from those of the Company.

Defined benefit scheme - Company

The Company contributed to a defined benefit scheme for two employees up to 14 December 2012. From this date all accrual to the scheme ended. The Company remains liable for its portion of the deficit in scheme funds. The assets of the scheme are administered by a trustee, in a fund independent from those of the Company. The scheme is a multi-employer scheme and the Company is unable to identify its share of the underlying assets and liabilities. Accordingly in compliance with FRS17 – Retirement Benefits, it has been accounted for as a defined contributions scheme.

The principal conclusions of the last triennial valuation at 31 March 2013 estimated a funding shortfall of £3,174,000. Northern Ballet, as one of several employers responsible for funding this shortfall, agreed to make monthly contributions of £4,080 for fifteen years, payments commenced 1 July 2014.

The potential statutory debt payable under Section 75 of the Pensions Act, as mentioned in the prior year financial statements, no longer exists on the basis that the company no longer has any active members within the scheme.

Northern Ballet currently has 32 deferred members in the scheme.

27 Related party transactions

In accordance with Financial Reporting Standard No. 8, the company has taken advantage of the exemption to provide details of related party transactions with its subsidiary undertakings. A number of Trustees have made donations to the Company during the year. There were no conditions attached to any of the donations/sponsorship which required the Company to alter significantly the nature of its existing activities.

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