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The Electric Theatre and Guildford Performing Arts Venues

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The Electric Theatre and Guildford Performing Arts Venues Agenda item number: 7 Appendix 1 The Electric Theatre and Guildford Performing Arts Venues Report Beckwith Consulting Ltd October 2014 Agenda item number: 7 Appendix 1 Contents Page 1.0 Introduction 1 2.0 Performing Arts Venues in Guildford 1 2.1 Yvonne Arnaud Theatre 2 2.2 G Live 3 3.0 The Electric Theatre 4 3.1 Financial Analysis 4 3.2 Guildford Amateur Theatre Association 5 3.3 Professional v Amateur v Subsidy 6 3.4 Festivals 7 3.5 Current Management 7 3.6 The Future 8 3.7 Options 8 4.0 Conclusion 10 5.0 Recommendations 10 Agenda item number: 7 Appendix 1 1.0 Introduction The Electric Theatre is a 210 seat facility which was converted to a theatre from a redundant electricity works building in 1997. The theatre is owned and directly operated by Guildford Borough Council. The conversion of the building to the Electric Theatre was due to successful lobbying from the Guildford Amateur Theatre Association (GATA) who also provided technical equipment. A legal agreement gives GATA priority booking rights and concessionary hire rates. The Council has been considering the role the theatre plays in contributing to the overall performing arts provision in Guildford. It is important to the Council that any decisions on the future of the Electric Theatre are taken in the context of the other performing arts venues and affordability in light of competing priorities for the Council’s declining revenue budget. A stakeholder workshop was held at the Electric Theatre in March 2014 with an aim to understand the cultural offer, purpose and future of the theatre. Although the main discussion areas were focussed on the operational issues of marketing and catering there was acknowledgment that any future plans should address: business model, vision, user/community engagement, the relationship with GATA, partnership working and income generation. The outcomes from the workshop did not include any wider options for future direction or operation of the theatre. Following the stakeholder event Beckwith Consulting Ltd were engaged to carry out this review with the objective of identifying options for The Electric Theatre and an initial assessment of the Yvonne Arnaud Theatre and G Live. 2.0 Performing Arts Venues in Guildford The town of Guildford has a relatively high number of performing arts venues compared to towns of a similar size. The Council’s revenue expenditure for performing arts venues in 2012/13 was £994,734. The principal venues are: Yvonne Arnaud Theatre – A purpose built Grade II listed theatre with an auditorium of 600 seats and an adjacent studio theatre of 80 seats. The Council own the freehold of the theatre and it is managed and operated by a charitable trust. The Council provided a revenue grant in 2012/13 of £318,170. G Live – Opened in 2011 as a concert and touring venue it is owned by the Council and operated by means of a ten year contract with HQ Theatres Ltd. There are 1031 seats and a capacity of up to 1700 seating/standing. The annual subsidy for 2012/13 was £321,796. The Electric Theatre – A converted industrial building owned and directly operated by the Council with a capacity of 210. The subsidy in 2012/13 was £354,768. The Boiler Room – A converted public house which is operated as a contemporary music venue with a capacity of 300. It is privately owned and run commercially. Ivy Centre – A purpose built performing arts centre owned and directly operated by the University of Surrey with an auditorium capacity of 200. 1 Agenda item number: 7 Appendix 1 Of the three performing arts venues that the Council funds The Electric Theatre is the subject of this wider report and Yvonne Arnaud Theatre and G Live are considered in more detail below. 2.1 Yvonne Arnaud Theatre Yvonne Arnaud Theatre (YAT) is well respected in the theatre industry and promotes Guildford in a positive light through touring its in-house productions nationally. The theatre has recently been operating under a perfect storm of financial constraints. These include: The cost of maintaining an ageing listed building The wider economic downturn leading to less disposable income for theatre attenders A reduction in the quantity of good quality touring productions Loss of Arts Council England funding in 2009 Reduction in annual grant from Guildford Borough Council The Council’s annual grant to YAT in 2012/13 was £318,170 and attendances were 140,000. It is estimated that the Council subsidy per attendee in 2012/13 was £2.27 and the subsidy per head of population was £2.32 based on a population of 137,200. In recent years YAT has been dependent on its reserves to continue trading. The total deficit for 2012/13 was £134,956 compared to a deficit of £145,567 in 2011/12. The core business for YAT is the touring productions it receives in the main auditorium. YAT also has a busy studio theatre hosting small scale theatre particularly aimed at young people and children and a significant education programme. YAT also creates productions some of which go on tour to other venues. The number of these in-house or co-productions has reduced in the last few years due to the lack of finance and increasing risk. For instance there were 9 YAT productions in 2012, 6 in 2013 and 4 in 2014. The Council’s grant appears to contribute to the overall running costs of YAT rather than being targeted to support a specific element of the business or to further specific Council priorities. The Council’s ongoing relationship with YAT involves receiving financial information and occasional meetings. It is clear that YAT is dependent on the grant it receives from the Council in order to continue to run the current breadth of activities. The Council is, however, under increasing financial pressure and is looking to identify savings across its expenditure. It may therefore be beneficial to be more proactive by deciding if there is a particular area of YAT’s business that is less of a priority such as the provision or extent of the education programme, the studio theatre or producing in house shows. This would help the Council decide on an appropriate level of grant and YAT would have a better understanding of what the Council is expecting in the way of outcomes. The Council could also consider interest free loans or capital grants to help with the maintenance of the building and any “invest to save” initiatives such as energy reduction. If the Council continues to be a significant funder of YAT’s running costs then it should ensure that the use of public funding is providing value for money. The Council has already provided advice on the procurement of utilities but could also review the breadth of activities YAT provides with a view to advising on significant areas of expenditure such as staffing. A Scrutiny Task and Finish group could be utilised to carry out the review. 2 Agenda item number: 7 Appendix 1 Recommendation 1 – That the Council determines the outcomes it expects Yvonne Arnaud Theatre to achieve, assesses the value of the outcomes and agrees an appropriate level of revenue grant through a Scrutiny Task and Finish review. The nature of operating theatres is that programming has a lead in time of up to two years and difficulties arise when external funding decisions are only known shortly before the commencement of a financial year. The Council could contribute to more robust financial planning of YAT by entering into two or three year grant funding agreements. By having advanced notice of funding YAT would have the ability to adjust the programming and audience development plans accordingly. Recommendation 2 – That the Council consider offering Yvonne Arnaud Theatre a grant funding agreement of up to three years. Performing arts venues are complex businesses to manage and although the Council has extensive financial and business expertise it lacks the technical expertise required to fully evaluate the ongoing performance of YAT in relation to its grant. This lack of technical expertise also applies to the monitoring and evaluation of other council funded venues such as G Live and The Electric Theatre. The fact that the Council would only require this expertise on an occasional basis, for example to attend monitoring meetings or to help evaluate grants or budgets, means it would not be viable to consider direct employment. For example the Council could obtain this expertise by utilising a suitably experienced officer from another local authority. Recommendation 3 – That the Council identifies appropriate performing arts/theatre knowledge and experience to assist in the ongoing monitoring and evaluation of the venues it funds. 2.2 G Live The Council has entered into a ten year commercial contract and lease with HQ Theatres to operate the G Live. The venue appears to be well run and has quickly established itself as a desirable location for touring product. According to the 2012/13 annual report the year 2 subsidy was £321,796 after profit share, the Council subsidy per ticket was £2.61 based on a total of 123,140 tickets sold and the Council subsidy per head of population was £2.35 based on a population of 137,200. The venue underperformed its target of 145,131 attendances by about 6% which in light of the lack of previous audience data (due to the building only being opened for a short time) is not a significant variance. The Council has expenditure related to G Live other than the direct subsidy and the total estimated net direct expenditure for 2013/14 was £414k including employee, premises and supplies and services costs.
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