Cabinet
28 November 2011
Agenda Item No_____12________
SHERINGHAM LITTLE THEATRE BUSINESS PLAN AND GRANT
Summary:
A report to inform Cabinet of the new Business Development
Plan for Sheringham Little Theatre which seeks to increase
levels of earned revenue enabling the theatre to maintain the
level of service to the local community while reducing
dependence on public sector funds.
Conclusions:
This Business Plan seeks to provide a financial saving for the
Council while enabling Sheringham Little Theatre to sustain the
current level and quality of service to residents and visitors to
the District.
Recommendations:
I. That Cabinet support the priorities and actions and note
the financial
projections within the SLT business plan.
II. That Cabinet confirm £48,000 financial support to the
Sheringham Little Theatre in 2012/13, £43,000 for
2013/14 and £38,000 for 2014/15.
III. That a three year service level agreement is drafted to aid
the monitoring of the grant.
IV. That a progress report is brought back to Cabinet in
October 2012 for further consideration.
V. That Cabinet approves £45,000 being placed into the
capital programme to cover the cost of property works on
this Council asset.
Cabinet member(s):
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28 November 2011
Cllr John Lee
Contact
Officer,
number, and e-mail:
1.
telephone Brenda Seymour, Arts Officer, 01263
Brenda.seymour@north-norfolk.gov.uk
516053
Introduction
The Sheringham Little Theatre Society (SLT) is a registered charity and company
limited by guarantee. The District Council has, since the theatre was refurbished
in 1995, awarded an annual grant to the Society to support its running costs as a
professional venue. The grant in the current financial year is £53,720. A service
level agreement aids the monitoring of the grant by the Arts Officer and both an
officer and Member represent the Council as observers at Board of Trustee
meetings.
2.
Background
2.1
The Theatre has greatly increased its audiences in recent years and now
provides a varied year-round programme with events targeting different sectors
of the community. There has been special emphasis on promoting theatre to
young people both as audiences and participants and in 2010/11 the Theatres
Outreach Programme delivered 5,500 opportunities for young people to engage
in activities. This work is supported by the auditorium programme which provides
opportunities for young people to both perform on stage and see shows
appropriate to their age.
2.2
The Theatre benefits from the support of over 100 volunteers who provide front
of house and bar services and it supports the local economy both through
purchases from local suppliers and contractors and in the secondary spend of
audience members to local businesses.
2.3
To ensure quality and retain surpluses for the running of the theatre, SLT began
in 2006 to produce its own repertory season. In 2009 it produced its first in-house
pantomime and in Easter 2010 the first large scale community production
involving over 80 local people. Despite these successes SLT is limited in its
capacity to generate income by the 180 seat auditorium while it still has to fund
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28 November 2011
the similar overheads as larger venues.
In 2010/11, 282 contracts to
professional artists were awarded and audience figures totalled over 28,000 plus
5,500 attendances by young people at outreach activities.
2.4
Despite improvements in operations, SLT has had two deficit trading years
largely due to restructuring costs and the economic downturn. This has
significantly reduced reserves and therefore SLT remains dependent on financial
support from NNDC, Sheringham Town Council and Norfolk County Council.
2.5
The Theatre Trustees are fully aware of the increasing pressures on public
finances and are keen to work in partnership with NNDC to find ways to reduce
SLT’s dependency on the NNDC grant that do not have a negative impact on the
quality or quantity of services SLT provides to the local community and visitors
to the area.
2.6
The running costs of the venue have been scrutinised by the board which has
identified there is little opportunity to find any further savings. However, it has
been recognised that there are areas of the business with scope for further
development and which may bring about increases in revenue.
These are:
2.7
•
improving the website and offering online booking
•
developing the cinema offer
•
improving the Hub (café/bar) offer
•
developing business support, advertising and sponsorship
•
refreshing the members and friends offer.
The Business Plan in Appendix K illustrates how SLT proposes to develop each
strand. The budget within the plan sets out the additional revenue anticipated.
2.8
Assuming the Theatre is able to generate the predicted revenues then it will be
able to maintain the current level of activity while reducing dependency on the
NNDC grant from £53,720 in 2011/12 to £48,000 in 2012/13 then a further
reduction to £43,000 in 2013/14 and £38,000 in 2014/15.
3.
Property
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3.1
28 November 2011
The premises occupied by the SLT Society is owned by the District Council and
leased to the Society on a peppercorn rent. This thirty year agreement
commenced on 1st July 1996 and under the terms of the lease SLT is responsible
for the interior repair and maintenance of the building while the District Council is
responsible for the exterior.
3.2
The operation of the theatre is continually challenged by the limited internal
space available. In 2010 SLT began to investigate options for extending the
building over an existing first floor flat roof to both increase the amount of internal
space and enhance the exterior appearance of the building.
3.3
In order to progress, SLT, in consultation with the District Council’s Property
Services Department, commissioned a structural survey which confirmed such
work is possible.
3.4
SLT also approached Property Services to investigate options for extending the
period of the lease to enable the theatre to seek external funding to support such
a project. (It is unlikely any funding could be secured without a minimum 25 year
lease on the building). These discussions have so far been inconclusive and the
business plan assumes the current terms of the lease remain.
3.5
In addition to confirming the feasibility of a first floor extension, the survey also
recommended a number of internal and external repairs to the building. While
SLT are addressing the identified internal works the external works amount to an
estimated cost of £22,780. It is therefore necessary to undertake further work to
ascertain
those
elements
of
the
property
which
require
programmed
maintenance.
3.6
Following the confirmation through the survey that a first floor extension is
structurally feasible, outline plans were drafted to further investigate the
proposed extension and the value such a development would bring to the
operation of the theatre. However, these initial drawings have given
unsatisfactory results and significant further work is now required to explore ways
in which the new and existing spaces can be reconfigured to achieve additional
usable and profitable space.
3.7
While this development remains a desirable project the immediate priority for
SLT is to now apply its resources to delivering the business plan as attached in
Appendix K and to ensure the Society is able to continue to function on reduced
subsidy.
However, the development ambitions remain and therefore the
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28 November 2011
undertaking of exterior repair works needs to be mindful of these plans.
3.8
As the Council has external and structural liabilities under the terms of the
current lease a desk top review of the requirements of the building in respect of
both reactive and planned maintenance requirements with reference to the
Society’s aspirations for the building has been undertaken. The Council is of the
opinion that possible expenditure required to the building, including elements for
contingencies, professional fees, inflation and VAT (as compiled at the date of
this report) should be budgeted for in the region of £45,000. A recommendation
is attached to this effect.
4.
Risks
4.1
Reputational Risks: The Theatre has a good standing in the community both
locally and across the District and County and there is a strong association
between the Theatre and the Council born out of the number of years in which
the Authority has supported the venue.
4.2
Financial Implications: The financial projections for the required levels of grant
aid are based upon the Theatre being able to generate sufficient revenue to
cover the shortfall. The figures within the Business Plan have been based upon
a number of informed assumptions and whereas there are contingencies built in
to the financial projections they are reliant upon the Theatre generating sufficient
revenue through operational income, grant aid and sponsorship. Should this
income fall below projected levels then the Business Plan would have to be
revised.
5.
Recommendations
I. That Cabinet support the priorities and actions and note the financial
projections within the SLT business plan.
II. That Cabinet confirm £48,000 financial support to the Sheringham Little
Theatre in 2012/13, £43,000 for 2013/14 and £38,000 for 2014/15.
III. That a three year service level agreement is drafted to aid the monitoring of the
grant.
IV. That a progress report is brought back to Cabinet in October 2012 for further
consideration.
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28 November 2011
V. That Cabinet approves £45,000 being placed into the capital programme to cover
the cost of property works on this Council asset.