HAMPSTEAD THEATRE LIMITED

Registered number: 00707480" Charity number:/218506

HAMPSTEAD THEATRE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS


CONTENTS

Page

Reference and administrative details of the charity, its trustees and advisers 1

Chairman's statement 2

Trustees' report 3-8

Independent auditors' report 9-10

Consolidated statement of financial activities 11

Consolidated balance sheet 12

Company balance sheet 13

Notes to the financial statements 14 - 26

HAMPSTEAD THEATRE LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2015

Directors and trustees Susie Boyt Alex Graham Dan Marks (resigned 26 January 2015) Simon Parry-Wingfield Karen Paul Tim Pigott-Smith Jeremy Sandelson Richard Segal Peter Tausig David Tyler, Chair Deborah Wosskow

Company registered number 00707180

Charity registered number 218506

Registered office Eton Avenue Swiss Cottage London NW3 3EU

Company secretary

Chief executives

Independent auditors

Neil Morris

Edward Hall (Artistic Director & Joint Chief Executive) Greg Ripley-Duggan (Executive Producer & Joint Chief Executive)

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

Bankers Barclays Bank Plc North London Corporate Banking 1 -2 Trinity Way Chingford London E4 8TD

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HAMPSTEAD THEATRE LIMITED : (A company limited by guarantee): •

CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2015

Alongside the confirmation of a further three years funding from the Arts Council and our continued National Portfolio Organisation status, much has been achieved over the financial year 2014-15. There have been some very significant highlights alongside some much needed consolidation. The institution has continued to build on the outstanding successes ofthe previous two years, increasing creative output still further on both its stages to the point where capacity has probably been reached. While we ended the financial year in surplus, this is only part of a story of significant achievement.

This year we again presented more performances of more Hampstead Theatre productions than ever before. Our eight Main Stage productions (one the extraordinary In the Vale of Health - a cycle of four plays with the same cast which could be seen in a single day) included seven world premieres and one UK premiere. Two productions, Wonderland and Tiger Country, were live-streamed worldwide and three Hampstead productions were seen in the West End: Good People, Sunny Afternoon and Di and Viv and Rose. Our production of A Human Being Died that Night toured South Africa to great acclaim, made a return trip to Hampstead Downstairs, and, as I write, is about to open in New York whilst our production of The Judas Kiss will be seen in Toronto and New York in the spring of 2016. Our Downstairs programme had another outstanding year with an ambitious programme achieving 95% occupancy. And alongside The Stage Award for London Theatre ofthe Year 2014, Hampstead was at the forefront of the main theatre awards, winning an Evening Standard Award for Wonder/and and garnering seven Olivier Nominations (including one for James Fritz's debut play 4 minutes 12 seconds Downstairs) and an astonishing four Olivier wins (all for our first ever musical, Sunny Afternoon, which continues its run at the Harold Pinter Theatre).

During our dark period in the summer we completed the improvements to our Front of House spaces, having raised the £500,000 required. The reconfigured spaces are very much more spacious and congenial, and the works have enabled us to start to deliver a hot food offer for our patrons, something we hope will, in time, yield another welcome income stream. Our other significant fundraising initiative in the year was to create a fund of £1m to invest in commissioning new plays for the theatre; at the current time we have raised nearly 50% ofthe total. Our intention is that this initiative will provide us with a strong roster of good scripts awaiting production and will help to ensure that we can continue to deliver success on stage. At the same time we are just beginning to roll out the results ofa comprehensive review of our Brand and Communications strategies.

While there is still much to do, there can be no question that the institution ends the year in an excellent position. With a clear strategy, a healthy reserve, and a settled team - alongside a newly rejuvenated building and improved catering offer - we enter 2015-16 with an extremely exciting programme of work on stage ahead of us. We trust it will bring us significant success in the next 12 months and we are confident that we have the tools available to capitalise on all the advantages that can be drawn from that success

I would like again to thank my fellow trustees for their commitment, for their personal financial support of the theatre, and for their generosity with their time and their expertise. And in a year that involved much hard graft, my admiration for the theatre's staff increased still further. Though the leadership of Edward Hall and Greg Ripley-Duggan is very strong, they remain very few in number, and their personal dedication to the institution is rooted in an absolute conviction that anything is possible and that they are part of a team that is creating something truly extraordinary. I would also like to thank Arts Council England for their continuing faith in us and in our future, as well as the many individuals, companies, trusts and foundations who support the work of Hampstead. We firmly intend to repay their investment over the coming years by making their association with Hampstead Theatre something of which they can all be deeply proud.

David Tyler Chair of Hampstead Theatre Date: 25 September 2015

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HAMPSTEAO THEATRE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2015

The Trustees, who are also Directors ofthe charity for the purposes of company law, present their annual report together with the audited financial statements for the year ended 31 March 2015.

The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP 2005) "Accounting and Reporting by Charities", issued in March 2005.

OBJECTIVES AND ACTIVITIES OF THE CHARITY

The charity has the general aim of contributing to the quality of life of the people of London and beyond by expanding their horizons through the professional presentation of bold, relevant and entertaining new plays produced to the highest possible standard. The Charity has also subscribed to the following objectives set out by the Arts Council and enshrined in its agreement with ACE as a National Portfolio Organisation: that talent and Artistic excellence are thriving and celebrated; that more people experience and are inspired by the Arts; and that the Arts are sustainable, resilient and innovative.

The Trustees have had regard to the general guidance provided by the Charity Commission on public benefit when reviewing the Charity's aims and objectives and in planning its activities. In particular, they have considered how these activities will contribute to the objectives they have set.

The main objectives for the year continued to be the promotion and fostering of artistic knowledge and the appreciation of the arts by the provision of facilities for the education and entertainment of the public in the field of theatre.

The strategies employed to achieve the charity's objectives are:

To identify, develop, produce and promote new plays by emerging, mid career, and established writers for its local audience and for a broader audience from across London and the UK, as well as for a younger more diverse audience not traditionally associated with the theatre;

To encourage diverse audiences to have a deeper understanding and appreciation of new plays;

To foster creative talent by offering opportunities to work at the highest level in the professional theatre;

To aspire to excellence, creativity and openness and in doing so to deliver work of public value by investing in Britain's many and diverse voices and talent;

By presenting world class theatre productions, to be the key focus ofthe cultural life of its local community.

These objectives should be manifest in Hampstead Theatre's principal activity: the presentation of a diverse range of mainly new plays across its two auditoria.

Theatre productions The great majority of plays are World or UK premieres but the programme includes occasional revivals. Almost all are produced by Hampstead Theatre acting on its own, though work is occasionally brought in from other companies who share the charity's overall objectives. The state ofthe Art building offers two auditoria which can be flexibly configured - these are carefully used to ensure the best possible presentation and reception of each piece of work

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TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2015

Work with writers The aim of the Literary Department is to develop new plays for production at Hampstead Theatre for a wide range of audiences. During the course ofthe year the Hampstead Downstairs programme continued its groundbreaking work whilst its audience base grew further. Ticket prices remain extremely low and a young and very diverse following is encouraged. Writers are given the opportunity to work with a practitioner of the craft of theatre making and to see their work on its feet in front of an audience; plays are fast tracked into production: a three week rehearsal/rewriting process leads to a minimum five week run (without Press reviews) before a paying public. The programme remains a tool for identifying and midwifing the best new plays, for unearthing new talent, and for developing potential material for the Main Stage and beyond. By common consent the programme has established itself as an indispensible part of the UK's New Writing ecology and has become central to the Hampstead Theatre identity.

ACHIEVEMENTS AND PERFORMANCE

ARTISTIC PROGRAMME

During 2014/15, treating the In the Vale of Health cycle of four plays as a single production, Hampstead Theatre produced 14 in-house productions (8 Main Stage; 6 Downstairs) across 77 performance weeks. We also presented the work of 2 third party companies over 8 weeks, one of them the successful return of our own production of A Human Being Died that Night after its South African tour. This is the highest level of creative output the institution has ever achieved. The in-house produced Main Stage plays were:

Sunny Afternoon book by Joe Penhall, Music by Ray Davies, Directed by Edward Hall. World premiere. In the Vale of Health by Simon Gray, Directed by Tamara Harvey. 3 World premieres. Wonderland by Beth Steel, Directed by Edward Hall. World premiere. Seminar by Theresa Rebeck, Directed by Terry Johnson, with Roger Allam. UK premiere. Wildefire by Roy Williams, Directed by Maria Aberg. World premiere. Tiger Country Written and Directed by Nina Raine, with Indira Varma. Hello/Goodbye by Peter Souter, Directed by Tamara Harvey, with Shaun Evans. World premiere. Stevie by Hugh Whitemore, Directed by Christopher Morahan, with Zoe Wanamaker.

Wildefire and Tiger Country were Hampstead Theatre commissions. Wonderland and Tiger Country were livestreamed on the internet. Sunny Afternoon transferred to the West End and is still running at the Harold Pinter Theatre, and both Good People and Di and Viv and Rose played West End seasons during the year.

The inhouse produced Downstairs plays (all of which were World Premieres apart from Japes in the four play Simon Gray cycle) were:

In the Vale of Health by Simon Gray, Directed by Tamara Harvey (transferred to the Main Stage). 4 minutes 12 seconds by James Fritz, Directed by Anna Ledwich. State Red by Atiha Sen Gupta, Directed by Douglas Rintoul. Elephants by Rose Heiney, Directed by Tamara Harvey. The Wasp by Morgan Lloyd Malcolm, Directed by Tom Attenborough. Deposit by Matt Hartley, Directed by Lisa Spirting.

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The year was again characterised by some excellent results for the theatre. Focusing on Hampstead's own productions, highlights included:

1. In 2014/15 Hampstead presented 607 performances across both its auditoria compared with 620 performances in 2013/14 (the slight reduction being due to a longer summer "dark" period - 8 weeks rather than 6 weeks - to enable the capital works on the foyer to take place).

2. In 2014/15 Hampstead again presented 14 in-house productions (including 17 plays) across both auditoria.

3. In the financial year 2014/15 Hampstead sold 108,663 tickets in total across both auditoria. 4. In the financial year 2014/15 total box office takings were £2,025,000. 5. Capacity achieved across both auditoria in 2014/15 was 88.5%. 6. Per ticket yield for a Main Stage production was £26.05 in 2014/15, a significant increase from an

average yield of £24.30 in 2013/14. 7. Hampstead Downstairs achieved average occupancy in 2014/15 of 95% for in-house productions -

an increase from the 92% in 2013/14 and the 73% achieved in 2012/13. 8. Across 2014/15 there were 404,769 unique visits to hampsteadtheatre.com with 2,231,090 page

views. 9. In 2013/14 there were 14,377 tickets sold to new bookers; in 2014/15 this increased to 24,127 tickets

sold to new bookers - meaning that 23.9% of all sales were to new bookers. 10. The surplus of £91,575 generated in the financial year enabled the theatre to carry forward a

consolidated general reserve of £697,657.

Development department In the face of the continuing difficult economic conditions, the year was one of review and continuing strategic realignment of the Development Department. A change of Development Director took place 7 months into the financial year and the Development Committee was refocused and expanded. There was also a root and branch review of the Patron Scheme, and the lowest level was found to be almost uneconomic and therefore phased out; this led to a small drop (6%) in the number of Patrons overall, though 66% of Patrons at that lowest level renewed and upgraded. The year also included an encouraging 10% rise in new Patrons signing up to the scheme. Friends' memberships continued their encouraging upward trend and increased to 876 (an increase of 19% on the previous year) and our historic target of 1,000 Friends by 2015/16 feels perfectly achievable. Whilst unrestricted income continued to show an increase year on year, budgeted growth was not achieved in spite of encouraging progress against most key indicators. Overall, however, granted the changes to the personnel and direction of department, the final outcome was a promising one, and with new focus and energy in the department, we are confident that 2015/16 will see significant advances.

The Next Decade fund was established during the year, and there is no doubt that this may have split the focus of the department. The fund has a target of £1 m, and has been established to drive the commissioning of new work for the Main Stage and to support Brand development and articulation. Next Decade is founded on a generous gift of £500,000 guaranteed match funding; so far £250,000 has been raised against it, so the current fund value is £500,000. The first commissions supported bythe fund have already been made.

Less positively, there is continuing concern about future funding for Hampstead Downstairs: 2014/15 marked the end of our 4-year agreement with The Rayne Foundation and our 5-year agreement with the Peter Wolff Trust draws to a close at the end of 2015/16. There are a number of initiatives under way to find new supporters for the space, but whilst many other Trusts and Foundations continue their support, it is clear that a headline funder for the programme needs to be identified in the next 12 months.

Looking ahead, the targets set for the department for the Financial Year 2015/16 remain challenging. The sense is, however, that the realigned and refreshed department is much better placed to achieve them, granted a plan that is both grounded in the practical and properly strategic, and the improved communications with and excellent support from the Development Committee and the Board of Trustees.

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FINANCIAL REVIEW

Statement of Financial Activities The SOFA (Statement of Financial Activities) shows the extent of and movement in all charitable funds differentiating between restricted funds (monies provided for specific purposes) and unrestricted funds (monies which can be applied to any charitable objectives within the organisation's objectives). During 2014/15, Hampstead generated net incoming resources of £91,575 on its general funds. At the end of the year, Hampstead had net general funds of £697,657 compared with £606,082 in 2014.

Reserves policy At 31 March 2015, the charity had positive "free" reserves, defined as unrestricted funds less fixed assets, of £637,598. The trustees have been reviewing ways to boost reserves to a level that they can provide some cushion against downturns in income or unexpected expenditure. They have encouraged the development of a revised business model by the executive team at the theatre, which has financial stability and success at its centre.

Investment powers and policy Under the Memorandum and Articles, the charitable company has the power to invest in any way the trustees feel appropriate. Surplus funds at any time are placed on High Interest Deposit.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution & Structure Hampstead Theatre Limited is both a registered charity and a company limited by guarantee having no share capital; it is governed by its charitable objects and Memorandum and Articles of Association and is non-profit distributing. The members, who are the trustees, are liable to contribute the sum of £1 in the event that the charity is wound up.

Organisation The board meets a minimum of five times a year and members of the board are the only members of the company. The directors of the company have certain legal, financial and fiduciary duties under company law and, as trustees, must also comply with charity law. There is also a finance committee, a nominations committee and a development committee which all report to the main board. The Artistic Director and Executive Producer, who are appointed by the board, manage the day to day running of Hampstead Theatre.

Appointment of directors/trustees As set out in the Articles of Association, the Chair is appointed by the other directors. All members are circulated with invitations to nominate new members to the nominations committee. The number of trustees shall be not less than five nor more than twelve. Trustees are appointed by resolution of the trustees and shall serve for a maximum continuous period of two terms of three years. A trustee who has served a continuous period of two terms of three years shall remain out of office for at least one year before being eligible for re-election.During the year Dan Marks stepped down from the Board of Trustees on 26 January 2015, having completed two consecutive three year terms. There were no appointments made in the year.

Trustee induction and training New trustees receive the latest annual report, latest accounts and information on current and past productions, as well as a full job description. They are also provided with detailed information on the theatre, including a tour around the building and an opportunity to see productions. They are kept informed about developments in the theatre and the wider charity sector as appropriate.

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HAMPSTEAO THEATRE-LIMITED (A company limited; by guarantee)


Connected parties The charity has three wholly-owned subsidiaries: Hampstead Theatre Productions Limited which is responsible for producing productions other than at Hampstead Theatre, Hampstead Theatre Enterprises Limited which is responsible for operating the Theatre's bar/cafe and running nonproduction events at the Theatre and Hampstead Theatre Ventures Limited which is used by the parent charity ( Hampstead Theatre Limited ) to be the theatre production company and produce the theatrical productions so that the subsidiary is able to claim a payable tax credit (the relief) pursant to Part 15c of the Corporation Tax Act 2009.

The charity also has a close relationship with Hampstead Theatre Foundation, an incorporated charity, which leases the theatre building from the London Borough of Camden and subleases it to the company at a commercial market rent.

Risk Management The trustees have a risk management strategy where they:

• Review the monthly management accounts at all board meetings and have a finance committee (of four directors) which views the accounts in detail and reports to the board;

• Approve the charity's budgets for each year, ensuring that it is in accordance with the Business Plan, and monitor progress against the budget;

• Agree Key Performance Indicators for productions and monitor performance against these at each board meeting;

• Monitor income from main stakeholders and individual givers against a target at every board meeting; • Review the Health and Safety policies, Employment, Environmental and Cultural Diversity policies on a

regular basis; • Review incidents reported under the Health and Safety policy on regular basis.

This is all minuted and used as a way of managing the financial and social risks of Hampstead Theatre.Each year the Trustees review their aims and activities to ensure they continue to reflect their objectives. In carrying out this review the Trustees have considered the Charity Commission's guidance on public benefit.

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HAMPSTEAO THEATRE LIMITED (A company limited by guarantee) :;


STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees are responsible for preparing their Trustees' Report 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 the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of the affairs of the charitable company and the group and of the net incoming or outgoing resources of the group for that period.In preparing these financial statements the Trustees are required to:

• Select suitable accounting policies and apply them consistently • Observe methods and principles in the Charities SORP • Make judgements and estimates that are reasonable and prudent • State whether applicable accounting standards have been followed, subject to any material departures

disclosed and explained in the financial statements • Prepare the financial statements on the going concern basis unless it is inappropriate to assume that the

charitable company will continue in operation.

The Trustees are also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees also confirm that they have made all necessary enquires and taken such steps that they ought to, to ensure that they become aware of any relevant audit information and that they confirm that the charitable companys auditors have been made aware of such information.

AUDITORS

A resolution proposing the reappointment of Nyman Libson Paul as auditors for the ensuing year will be proposed at the Annual General Meeting.

Approved by the board of Trustees and signed on its behalf on 25 September 2015.

David Tyler Chair

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMPSTEAD THEATRE LIMITED

We have audited the financial statements of Hampstead Theatre Limited for the year ended 31 March 2015 set out on pages 11 to 26. 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, section 151 ofthe Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinion we have formed.

Respective responsibilities of Trustees and auditors

As explained more fully in the trustees' responsibilities statement, the Trustees (who are also the directors ofthe 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.

We have been appointed as auditors under the Companies Act 2006 and section 151 of the Charities Act 2011 and report to you in accordance with those Acts. 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 Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group's and the parent company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees' report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

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 2015 and ofthe 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 and the Charities Act 2011.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

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HAMPSTEAO THEATRE LIMITED (A company iimited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMPSTEAD 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 and the Charities Act 2011 requires us to report to you if, in our opinion:

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

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

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

• we have not received all the information and explanations we require for our audit; or

• the Trustees were not entitJed to take advantage ofthe small companies' exemption from the requirement to prepare a group strategic report. / )

for and on behalf of

Nyman Libson Paul

Chartered Accountants Statutory Auditors

Regina House 124 Finchley Road London NW3 5JS 25 September 2015 Nyman Libson Paul are eligible to act as auditors in terms of section 1212 ofthe Companies Act 2006.

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HAMPSTEAO THEATRE LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account)

FOR THE YEAR ENDED 31 MARCH 2015

Unrestricted Restricted Total Total funds funds funds funds 2015 2015 2015 2014

Note £ £ £ £

INCOMING RESOURCES

Incoming resources from generated funds: Voluntary income 2 1,271,362 337,565 1,608,927 1,358,207 Activities for generating funds 1,147,458 - 1,147,458 579,973 Investment income 3 3,329 - 3,329 2,356

Incoming resources from charitable activities 4 2,209,759 - 2,209,759 2,564,889 Other incoming resources 5 281,562 - 281,562 109,100

TOTAL INCOMING RESOURCES 4,913,470 337,565 5,251,035 4,614,525

RESOURCES EXPENDED

Costs of generating funds: Costs of generating voluntary income 680,677 - 680,677 450,552 Fundraising expenses and other costs 55,182 - 55,182 37,685

Charitable activities 6 4,063,523 122,000 4,185,523 3,732,110 Governance costs 7 22,513 - 22,513 13,500

TOTAL RESOURCES EXPENDED 4,821,895 122,000 4,943,895 4,233,847

MOVEMENT IN TOTAL FUNDS FOR THE YEAR - NET INCOME FOR THE YEAR 91,575 215,565 307,140 380,678

Total funds at 1 April 2014 606,082 - 606,082 225,404

TOTAL FUNDS AT 31 MARCH 2015 697,657 215,565 913,222 606,082

All activities relate to continuing operations.

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 14 to 26 form part of these financial statements.

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HAMPSTEAO THEATRE LIMITED (A company limited by guarantee) REGISTERED NUMBER: 00707160

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2015

FIXED ASSETS Tangible assets

CURRENT ASSETS Stocks Debtors Cash at bank and in hand

CREDITORS: amounts falling due within one year

NET CURRENT ASSETS

NET ASSETS

CHARITY FUNDS Restricted funds Unrestricted funds

Note

11

13 14

15

14,138 416,355

1,405,840

1,836,333

(983,170)

2015 £

60,059

16 16

853,163

913,222

215,565 697,657

7,492 302,172

1,484,598

1,794,262

(1,237,380)

2014 £

49,200

556,882

606,082

606,082

TOTAL FUNDS 913,222 606,082

The financial statements were approved bythe Trustees on 25 September 2015 and signed on their behalf, by.

David Tyler, Chair


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HAMPSTEAO THEATRE LIMITED (A company limtted by guarantee) REGISTERED NUMBER: 00707180

COMPANY BALANCE SHEET AS AT 31 MARCH 2015

FIXED ASSETS Tangible assets Investments

CURRENT ASSETS Debtors Cash at bank and in hand

CREDITORS: amounts falling due within one year

NET CURRENT ASSETS

NET ASSETS

CHARITY FUNDS Unrestricted funds

TOTAL FUNDS

Note

11 12

14

15

16

532,411 1,245,733

1,778,144

(900,840)

2015 £

35,717 201

35,918

877,304

913,222

913,222

913,222

399,223 1,345,145

1,744,368

(1,172,229)

2014 £

33,843 101

33,944

572,139

606,083

606,083

606,083

The financial statements were approved by the Trustees on 25 September 2015 and signed on their behalf, by-

David Tyler, Chair


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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting and Reporting by Charities' published in March 2005, applicable accounting standards and the Companies Act 2006.

1.2 Basis of consolidation

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

The results of subsidiaries acquired during the year are included from the effective date of acquisition.

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

1.3 Cashflow

The company has taken advantage ofthe exemption in Financial Reporting Standard No.1 from the requirement to produce a cash flow statement on the grounds that it is a small charitable company.

1.4 Incoming resources

Theatrical income from box office, performance fees and sundry other income is included in incoming resources for the period in which the relevant events take place. Income is deferred if the event takes place in the next accounting period.

Grants and donations receivable are recognised in incoming resources in the year in which they are received, except as follows: • When donors specify that grants or donations given to the charity must be used in a future

accounting period the income is deferred until that period. • When donors impose conditions which have to be fulfilled before the charity becomes entitled

to use such income, the income is deferred until the pre-conditions are met. • When donors specify that grants or donations, including capital grants, are for particular

restricted purposes which do not amount to pre-conditions regarding entitlement, this income is in incoming resources of restricted funds when receivable.

Interest receivable is included when receivable by the charity.

Income from fundraising and from the subsidiary trading companies is recognised as earned.

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1. ACCOUNTING POLICIES (continued)

1.5 Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The majority of costs are directly attributable to specific activities. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources and estimated amounts attributable to that activity in the year.

Costs of charitable activities include the productive and administrative costs of the operation of the theatre and the production of plays, including depreciation on related assets. Pre-production costs incurred in respect of a theatre production are released rateably over its run, except when it is anticipated that future income will be insufficient to cover these costs.

Governance costs are those incurred in connection with compliance with constitutional and statutory requirements.

1.6 Fund accounting

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

Designated funds are amounts which have been set aside at the discretion of the trustees for a specific, but not legally binding purpose.

Where funds are received to be applied for specific purposes imposed by the donor or implied by the terms of any appeal under which they were raised, other than endowments, these are shown as restricted income in the statement of financial activities (SOFA). Subsequent expenditure for the purposes specified is charged to restricted funds in the SOFA. Unexpended balances at the year end are shown in the balance sheet as restricted funds.

1.7 Tumover

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

1.8 Irrecoverable VAT

The company's income from box office takings is exempt. All VAT on overhead and administration costs that is irrecoverable on a partially exempt basis is charged to the statement of financial activities.

1.9 Operating leases

Rentals applicable to operating leases are charged to the SOFA over the period in which the cost is incurred.

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HAMPSTEAD THEATRE LIMITED (A cornpany limited by guarantee)


1. ACCOUNTING POLICIES (continued)

1.10 Tangible fixed assets and depreciation

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

Fixtures, fittings and equipment - 20% on original cost Stage and lighting equipment - 10% on original cost Computer and office equipment - 33.33% on original cost

1.11 Investments

Investments in subsidiaries are valued at cost less provision for impairment.

1.12 Stocks

Stock consists of bar stock which is held by a subsidiary company and is valued at the lower of cost and net realiseable value.

1.13 Pensions

Defined contribution pension payments are made for certain employees and are charged to the SOFA as they are incurred.

2. VOLUNTARY INCOME


£ £ £ £ Grants from Public Funding bodies 874,607 85,000 959,607 871,072 Grants and trust income for educational and

other projects - 41,500 41,500 64,166 Other grants and donations 396,755 211,065 607,820 422,969

Voluntary income 1,271,362 337,565 1,608,927 1,358,207

INVESTMENT INCOME


£ £ £ £

Bank interest 3,329 - 3,329 2,356

Page 16



4. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES


£ £ £ £

Box office income 2,024,922 - 2,024,922 2,537,340 Other income 184,837 - 184,837 27,549

2,209,759 - 2,209,759 2,564,889

5. OTHER INCOMING RESOURCES


£ £ £ £

Programmes 77,622 - 77,622 88,222 Sundry income 37,522 - 37,522 20,878 Tax recoverable 166,418 - 166,418

281,562 - 281,562 109,100

6. EXPENDITURE BY CHARITABLE ACTIVITY

SUMMARY BY FUND TYPE


£ £ £ £

Box office expenses 4,020,848 122,000 4,142,848 3,699,903 Other expenses 42,675 - 42,675 32,207

4,063,523 122,000 4,185,523 3,732,110

SUMMARY BY EXPENDITURE TYPE

Staff costs Depreciation Other costs Total Total 2015 2015 2015 2015 2014

£ £ £ £ £

Box oflice expenses 901,781 15,877 3,225,190 4,142,848 3,699,903 Other expenses - - 42,675 42,675 32,207

901,781 15,877 3,267,865 4,185,523 3,732,110

Page 17

HAMPSTEAO THEATRE LIMITED (A company iimited by guarantee)


7. GOVERNANCE COSTS


£ £ £ £

Auditors'remuneration 13,500 - 13,500 13,500 Legal & professional 9,013 - 9,013

22,513 - 22,513 13,500

8. NET INCOMING RESOURCES

This is stated after charging:

2015 2014 £ £

Depreciation of tangible fixed assets: - owned by the charitable group 24,172 15,893

Auditors'remuneration 13,500 13,500 Operating lease rentals 56,000 58,700

No trustees received any remuneration during the year or any reimbursement of expenses. The charity has taken out trustee indemnity insurance which provides cover of one million pounds against trustee negligence or default.

9. STAFF COSTS

Staff costs were as follows:

2015 2014 £ £

Wages and salaries 984,850 892,577 Social security costs 62,672 65,809 Other pension costs 7,704 1,500

1,055,226 959,886

Page 18



9. STAFF COSTS (continued)

The average monthly number of employees during the year was as follows:

2015 2014

Theatre production Theatre operation Development & marketing Education & access Administration & finance

No. 7 4 5

No. 7 4 5

4 3

21 20

No employee received remuneration amounting to more than £60,000 in either year.

10. TAXATION

Corporation tax

The company is a registered charity and during the year had no activities liable to corporation tax.

Value Added Tax Hampstead Theatre Limited qualifies as an eligible body for the purpose of VAT Act 1994, Schedule 9 Group 13, Item 2. That is that Hampstead Theatre Limited is a body that is precluded from distribution of profit it makes, applies any profit made to the continuance or improvement ofthe facilities and is managed and administered on a voluntary basis by persons who have no direct or indirect financial interest in its activities. As a consequence, the supply of a right of admission to a theatrical, musical or choreographical performance of a cultural nature that is provided exclusively by Hampstead Theatre Limited is exempt from VAT. Input tax incurred in relation to the costs at Hampstead Theatre was treated as non-attributable as it was a cost component of exempt ticket sales and taxable supplies such as programmes, refreshments, bar sales, hires fees, memberships etc. This tax was apportioned using the standard partial exemption method, i.e on the basis of proportion of taxable supplies to total supplies. The total unrecoverable VAT was £249,000 (2014: £205,000).

Page 19



11. TANGIBLE FIXED ASSETS

Computer and Stage and

Group

Furniture and fittings

£

office equipment

£

lighting equipment

£ Total

£

Cost At 1 April 2014 Additions Disposals

280,159 27,476 (1,000)

126,032 8,355

225,684 631,875 35,831 (1,000)

At 31 March 2015 306,635 134,387 225,684 666,706

Depreciation At 1 April 2014 Charge for the year On disposals

264,802 10,174

(200)

118,928 9,886

198,945 4,112

582,675 24,172

(200)

At 31 March 2015 274,776 128,814 203,057 606,647

Net book value At 31 March 2015 31,859 5,573 22.627 60,059

At 31 March 2014 15,357 7,104 26,739 49,200

Company

Furniture and fittings

£

Computer and office equipment

£

Stage and lighting

equipment £

Total £

Cost At1 April 2014 Additions

256,764 9,396

126,032 8,355

225,684 608,480 17,751

At 31 March 2015 266,160 134,387 225,684 626,231

Depreciation At 1 April 2014 Charge for the year

256,764 1,879

118,928 9,886

198,945 4,112

574,637 15,877

At 31 March 2015 258,643 128,814 203,057 590,514

Net book value

At 31 March 2015 7,517 5,573 22,627 35,717

At 31 March 2014 _ 7,104 26,739 33,843

Page 20



12. FIXED ASSET INVESTMENTS

Shares in group

undertakings Company £ Market value At 1 April 2014 101 Additions 100

At 31 March 2015 201

PRINCIPAL SUBSIDIARIES

Company name Country Hampstead Theatre Enterprises England

Limited Hampstead Theatre ProductionsEngland

Limited Hampstead Theatre Ventures England

Limited

Percentage Shareholding Description 100% Bar facilities and commercial

lettings ofthe theatre 100% Production of theatrical

productions 100% Production of theatrical

productions

The subsidiaries are used for non-primary trading activities. The total profits are gifted to the charity and coporate income is treated as donations. A summary ofthe results are shown below.

Hampstead Theatre Hampstead Theatre Enterprises Limited Productions Limited 2015 2014 2015 2014

£ £ £ £ Tumover 519,820 478,890 627,638 101,083 Cost of sales (231,073) (198,704)

Gross profit 288,747 280,186 627,638 101,083 Administrative expenses (215,148) (179,491) (621,230) (80,857) Payment under Gift Aid to Hampstead

Theatre (73,599) (100,695) (6,408) (20,226)

Profit for the year

Page 21

HAMPSTEAO THEATRE LIMITED : (A company limited1 by guarantee)


Hampstead Theatre Total for Ventures Limited subsidiaries

13.

2015 £

2014 £

2015 £

2014 £

Turnover Cost of sales

1,565,062 (1,731,480)

- 2,712,520 (1,962,553)

579,973 (198,704)

Gross profit (166,418) - 749,967 381,269

Administrative expenses Payment under Gift Aid to Hampstead

Theatre Taxation 166,418

- (836,378)

(80,007) 166,418

(260,348)

(120,921)

Profit for the year - - - -

The aggregate of assets, liabilities and funds was:

Hampstead Theatre Hampstead Theatre Enterprises Limited Productions Limited

Hampstead Theatre Ventures Limited

2015 2014 £ £

2015 £

2014 £

2015 £

2014 £

Assets Liabilities

172,352 103,156 (172,351) (103,155)

58,140 (58,040)

59,146 (59,046)

166,518 (166,418)

-

Shareholder's funds 1 1 100 100 100 -

STOCKS

Group Company

Stocks

2015 £

14,138

2014 £

7,492

2015 £

2014 £

Page 22

HAM PSTEAO THEATRE'. LIMITED {A company limited by guarantee)


14. DEBTORS

Group Company

2015 2014 2015 2014 £ £ £ £

Trade debtors 17,952 1,801 17,592 1,801 Amounts owed by group undertakings - - 314,479 97,051 Other debtors 172,220 10,114 5,802 10,114 Prepayments and accrued income 226,183 290,257 194,538 290,257

416,355 302,172 532,411 399,223

CREDITORS: Amounts falling due within one year

Group Company

2015 2014 2015 2014 £ £ £ £

Trade creditors 354,668 164,597 284,624 140,693 Other taxation and social security 41,210 40,966 41,000 40,966 Box office income in advance 276,476 512,250 276,476 512,250 Other creditors 19,322 72,173 19,322 41,438 Accruals 291,494 447,394 279,418 436,882

983,170 1,237,380 900,840 1,172,229

Page 23



STATEMENT OF FUNDS

Brought Incoming Resources Canied Forward resources Expended Forward

£ £ £ £

Unrestricted funds General Funds - all funds 606,082 4,913,470 (4,821,895) 697,657

Restricted funds

The Next Decade fund _ 130,565 - 130,565 Lighting fund - 85,000 - 85,000 The Peter Wolff Trust - 50,000 (50,000) -The Dorset Foundation - 30,000 (30,000) -The Rayne Foundation - 25,000 (25,000) -The Rothenberg Family - 6,500 (6,500) -The Vandervell Foundation - 5,000 (5,000) -The Garrick Charitable Trust - 2,500 (2,500) -Royal Victoria Hall Foundation - 1,000 (1,000) -The Golsoncott Foundation - 1,000 (1,000) -The Andor Charitable Trust - 1,000 (1,000) -

- 337,565 (122,000) 215,565

Total of funds 606,082 5,251,035 (4,943,895) 913,222

The vast majority of restricted funds are sought to support the work of the Hampstead Downstairs programme, which offers opportunities to younger playwrights to see their work performed for the first time, and to more mature playwrights to develop their work in a creatively "safe" environment. The programme is also committed to encouraging the young and disadvantaged to attend the theatre, with tickets priced as affordably as possible.

The Next Decade fund seeks to build on the theatres current momentum and reputation to fund the writing of the coming decades best plays.

The lighting fund relates to a grant receivable towards the cost of emergency replacement of lighting equipment.

SUMMARY OF FUNDS

General funds Restricted funds

Brought Incoming Resources Carried Forward resources Expended Forward

£ £ £ £

606,082 4,913,470 (4,821,895) 697,657 337,565 (122,000) 215,565

606,082 5,251,035 (4,943,895) 913,222

Page 24



17. ANALYSIS OF NET ASSETS BETWEEN FUNDS


£ £ £ £

Tangible fixed assets 60,059 - 60,059 49,200 Current assets 1,620,768 215,565 1,836,333 1,794,262 Creditors due within one year (983,170) - (983,170) (1,237,380)

697,657 215,565 913,222 606,082

18. PENSION COMMITMENTS

The company makes contributions to the personal pension schemes of certain employees. The assets of the schemes are held seperately from those ofthe company in independently administered funds.

19. OPERATING LEASE COMMITMENTS

At 31 March 2015 the group had annual commitments under non-cancellable operating leases as follows:

Land and buildings Other 2015 2014 2015 2014

Group and Company £ £ £ £ Expiry date: Between 2 and 5 years - - - 2,700 After more than 5 years 56,000 56,000

20. LIABILITY OF MEMBERS

The charity does not have a share capital and is limited by guarantee. In the event of the charity being wound up the maximum amount each trustee is liable to contribute is £1.

Page 25

HAMPSTEAO THEATRE LIMITED :(A company limited by guarantee)


21. RELATED PARTY TRANSACTIONS

Hampstead Theatre Foundation Hampstead Theatre Foundation has on its board of directors during the year the Executive Producer of Hampstead Theatre Limited.

Rent was payable to Hampstead Theatre Foundation during the year of £56,000 (2014: £56,000) for the use ofthe theatre.

Hampstead Theatre Foundation made grants totalling £56,000 (2014: £56,000) to the company during the year. No balances were outstanding at the year end.

Edward Hall The Artistic Director and Joint Chief Executive is also Artistic Director of Propeller Theatre Company Limited.

During the previous year, the company carried out two productions at the Theatre - The Twelth Night and The Taming of The Shrew. Fees were paid totalling £nil (2014: £107,557) in the year.

Greg Ripley-Duggan The Executive Producer and Joint Chief Executive is also a partner in The Ripley Duggan Partnership.

During the year, the partnership carried out programme editing for the Theatre costing £9,600 (2014: £7,200). At the year end an amount of £2,880 (2014: £1,400) was outstanding.

During the year, amounts totalling £7,569 (2014: £21,299) relating to the share of profit and royalties earned on productions were paid to the partnership.

Page 26

Documents

HAMPSTEAD THEATRE LIMITED