IN GOOD COMPANY Annual Review07/08

Vanity Fair has been one of my favouriteproductions during my tenure here. Itepitomises so much of what I believe makesgreat theatre: generous and bold with realswagger and surprise; ideas which stimulateour audience and resonate through laughterand reflection. Altogether, a great evening’sentertainment. Yet, in order to deliver this, it’snot simply about what happens on stage, butthe activity behind the scenes too: our artisticteams, set and costume designers, marketingand hospitality departments all work togetherto make the whole Lyceum experience special.And this is what makes our theatre such asplendid, yet complicated, organism.

This Annual Review, the first from the RoyalLyceum Theatre Company, describes thecompany in a way that highlights our successes,identifies our challenges, and really shows who we are and why we exist. It is also anopportunity to acknowledge the funders andsupporters who enable us to produce top-quality drama for our beautiful theatre.

First of all, I am delighted to report that the Lyceum is performing excellently. Ourprogramme of quality theatre is underpinnedby sound business practice and operationalsure-footedness. We continue to be a forward-thinking company.

A total of 85,860 people visited the Lyceum in 2007/08 and were rewarded with

an exciting mix of classical and contemporarytheatre. Our professional company producedseven main stage productions, helping tocreate an incredibly varied programme. We filled, on average, 64% of our seats – a result that is the envy of many repertorytheatres of our size.

Our dynamic education and youth theatreinitiatives are helping us to achieve our aim of enhancing people’s lives through theatre. We are introducing children to theatre, often for the first time, through our SPARKprogramme, where we offer priority schoolsfree access to performances and participationin workshops. The youth theatre continues tobe central to our summer programme, and performed two main stage productions as part of the Lyceum’s Summer on Stage and the National Theatre’s Connections Festival.For the fifth consecutive year we hosted thefestival, showcasing work from eight differentyouth theatres.

Our Business Plan, revised for 2008, refocusesour priorities for the next three years. Thisambitious document positions the Lyceum as a sustainable entity capable of development and of increasing its profile in its sector. A newPerformance Management System will helpdrive staff development and create an effectiveworking environment. An exciting partnershipwith Redpath sees our printed and electronicmaterial, and the visual marketing beacon of

the Lyceum brand, emerge more vividly. And the substantial progress made inelectronic marketing over the past year hasenabled us to engage with new markets.

This is clearly the narrative of a company in excellent health. We are a complexorganisation, energised by our potential toevolve through creative and positive response to challenges in art – and in the art of business.Our ambition remains to make the Lyceum a vivid and creative powerhouse for the benefit of Edinburgh and Scotland, its people and the art of theatre.

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THE RIGHT DIRECTION

Mark Thomson Artistic Director and Chief Executive

“Our season of fantasticallyvaried productions representsan exciting mix of classical andcontemporary theatre.”Last year 3,257 people became

Royal Lyceum Season Ticket holders

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1The Wizard of Oz 2The Winter’s Tale

A BIGPERFORMANCE

On StageOur Christmas production, The Wizard of Oz,broke Box Office records with an averagecapacity of 98%. Over six weeks, 32,000 people watched the production, including12,500 school children. In other productions,Mark Thomson and his cast won criticalacclaim for Six Characters in Search of anAuthor. This was our second co-production with Citizens’ Theatre, Glasgow and National Theatre of Scotland. Amy Manson’sperformance as The Step-Daughter won Best Female Performance at the Critics Awards for Theatre in Scotland (CATS).

The First Look Friday preview shows have beena huge success and every performance duringthe Season sold out. The £5 tickets increasedBox Office revenue by £14,000.

According to a member of our audience:“The introduction of the £5 bookable ticket for the First Look Friday preview was anexcellent innovation and should be continued in future seasons.”

Season Ticket sales rose by 3% with 3,257people subscribing to see all shows in theSeason. Income from ticket sales also rose by 2.4%.

OnlineDuring the year, we appointed Redpath as our design partner and, in October 2007, launched our brand new website. The website now contains rich web content,including behind the scenes videos. This issomething we plan to develop over the comingyear. More than 100,000 people have visited

the new site and online sales have increased by 10% since October 2007.

In the CommunityLocal charities and community groups received 1,200 complimentary tickets for thepopular First Look Friday performances andthe charity performance of The Wizard of Oz.

Home-start Leith and North Edinburgh said:“Thank you very much for the 50 tickets for The Wizard of Oz. We know our families reallyappreciate this opportunity to experience themagic of theatre... it means a lot to them toknow there are people willing to help them in this way.”

Through our partnerships with BenchtoursTheatre Company and the Edinburgh Young

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Carers Project, we were able to provide dramasessions for adults with additional supportneeds, and to help 15 young carers build selfconfidence and develop interpersonal skillsthrough drama workshops.

Encouraging ParticipationThe Lyceum’s Education programme aims to engage audiences of all ages. In 2007/08, 806 people enjoyed a range of participationprogramme events, workshops and talks.

Through our schools programme, we providedopportunities for 1,492 primary and secondarypupils to take part in drama workshops.

Last year, 270 participants aged five to 18 years attended the Lyceum’s Youth Theatregroups. They produced Broadway’s junior

version of Into the Woods and After Juliet by Sharman MacDonald for the Summer on Stage Programme.

Hunwick Hughes continued to sponsor theNational Theatre’s Connections programme in Scotland. Eight youth theatres performed at the Connections Festival which was hosted by the Lyceum for the fifth consecutive year.

The SPARK programme, funded by ProvidentFinancial, continued to offer creative learningopportunities to primary school children. Wewere also delighted to offer 11 high schoolpupils work experience placements.

Increasing SupportIn 2007/08, we welcomed several newCorporate Members. The Premier PropertyGroup became Patrons. Tods Murray also became Patrons and sponsored therefurbishment of the Henry Irving and Ellen Terry Rooms. Home House Edinburghsponsored the opening night of Vanity Fair.

We are delighted to have the continued support of Standard Life who, for the fourthconsecutive year, sponsored the Lyceum’stheatre provision for audience members withspecial needs and requirements. This year,Standard Life also sponsored the charityperformance of The Wizard of Oz.

Our fundraising income increased by £20,000 in the past year, and we launched the new fundraising initiative - The Lyceum 500 Club. Profits from the initiative have funded Lyceum productions and, along withgrowing support from Charitable Trusts andFoundations, helped to fund the incrediblerange of education and participation activitiesoffered by the Lyceum.

“Season Tickets lie at the heart of the Lyceum’s regular audience.Last year 3,257 people becameSeason Ticket holders.”

Over 800 people attended 31 separate events throughout the year

THE SEASON2007/08Man of La ManchaThe stage at the Lyceum came alive with this fantastic and romantic tale of Don Quixote and his faithful servant, Sancho Panza. Audiences were entertained by a multi-talented ensemble who performed and played the wonderful score live on stage.Robert Pettigrew deservedly won the CriticsAward for Theatre in Scotland (CATS) for Best Use of Music in a production. A trulywonderful piece of musical theatre.

“Warm-hearted, witty and hugely enjoyable…” The Times

The Winter’s TaleAs part of his aim to bring lesser-knownShakespeare works to the Scottish stage, Mark Thomson chose to direct this play of twohalves. The tale of love, revenge and remorsewas a tour de force of emotions and dramaticeffect, with Liam Brennan playing Leontes, thetormented King.

“…some fine moments of theatre as it comes to grips with the Bard’s awkward script.”Sunday Herald

Living QuartersThe Lyceum was extremely privileged to begranted the rights to perform the UK premièreofLiving Quarters. In Brian Friel’s play, the family of a proud man, Commandant FrankButler, re-enact the events leading up to themoment of his suicide. Michael Taylor created a wonderful revolving set to take the audienceinto the Donegal home of the Butler family andwitness their happiness, pain and ultimate loss.

“…a superbly realised production.”Evening News

The Wizard of OzA huge Box Office success and the hot ticket inEdinburgh at Christmas! Nominated for BestShow for Children and Young People at theCATS Awards 2007/08, Gill Robertson workedher directorial magic on a wonderful stageversion of the iconic film. Fabulous costumes,produced by the workshop at Roseburn, andlots of energy and enthusiasm from the cast,made this a favourite among audiences aged 5 to 95.

“Fantastically well-paced and extraordinarilycohesive this is, surely, the finest big-stageChristmas show seen in Scotland for many years.” Sunday Herald

The Glass MenagerieA beautiful play for our January audiences.Tennessee Williams’ bittersweet story of Laura, told through the eyes of her brother, was performed brilliantly by the cast of four and directed sympathetically by Jemima Levick. One to treasure.

“…great production of an American classic, the perfect sop to the winter blues.” Big Issue

Six Characters in Search of an AuthorMark Thomson’s production of Pirandello’sclassic was hailed as a triumph. Rarely done,this unusual story about six characters lookingfor someone to perform their story wascaptivating. This was truly an ensemble piecewith all the acting company on stage for theduration of the play. We witnessed the excitingnew talent of Amy Manson, winner of CATSAwards for Best Female Performance.

“…a fascinating production…gripping from start to finish…” Evening News

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1Living Quarters 2The Wizard of Oz 3Six Characters in Search of an Author 4The Glass Menagerie 5Vanity Fair 6 Into the Woods 7Fugee

Vanity FairWhat a romp and what fun! Tony Cownie andhis ensemble company of seven actors and a musician took us on a journey spanning many years and continents, and followed theexploits of Amelia Sedley and her cunningfriend, Becky Sharpe. Never has a set been so imaginatively designed and used by thecompany to tell their tale.

“…a thoroughly satisfying production…extremely funny.”Evening News

AND FROM THE LYCEUM YOUTH THEATRE...

DNA In June 2007, the Lyceum Youth Theatreperformed DNA, a play by Dennis Kelly, as part of the NT Connections Festival.

Into the Woods andAfter JulietSteve Mann directed a stunning version of Sondheim’s Into the Woodswith a cast of 27 young actors, as part of Summer on Stage – a three-week youth theatreperformance project. Ruth Hollyman directedan equally large and enthusiastic company in Sharman Macdonald’s play, After Juliet.

FugeeA cast of 17 Senior Youth Theatre membersperformed the final youth theatre production of the season. The play, written by Abi Morganand directed by Xana Maclean, told the story ofa young asylum seeker trapped in the confusionand bureaucracy of the UK immigration system

“The Lyceum Theatre’s formidable youthcompany.”The Scotsman

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153 school groups and 4,114 youngpeople came to see performances

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“Last Season was hugely successfulwith award winning performancesand a great deal of critical acclaim.”

SETTINGTHE SCENE

Donald Emslie Chair

We are, as we complete this Annual Review, in the midst of the artistic and culturalextravaganza of the Edinburgh Festival. Thisreminds me how much choice the citizens of Edinburgh and beyond have in the arts. And reinforces the importance of the role theLyceum plays in delivering high quality theatrewithin this fragile but well-balanced arts eco-system.

Competition for audiences and funding is fierce.This healthy tension challenges artists to takerisks and reach new creative heights.

At the Lyceum, we thrive on challenge and, as a Board, support the ambition and artisticvision that Mark Thomson and his team haveset for the years ahead. We are not complacentand realise challenges lie ahead, especially with the transition to Creative Scotland and thepotential tightening of funding in the currenteconomic climate. The Lyceum however,having delivered a small surplus this year, can look forward with some confidence.

Last season was very successful. We enjoyedaward-winning performances, a great deal of critical acclaim and strong audience support.My own favourite, the musical The Man of LaMancha, was a departure from the Lyceum’susual approach but this variety is so importantfor the health of the Theatre. I believe that the2008/09 season will continue to excite andchallenge audiences.

It is a privilege to chair the Lyceum and I trust that our audiences will continue to support us and enjoy challenging and thought-provoking theatre.

Reference and administrative detailsCharity number SC010509Company number SC062065Principal office Royal Lyceum Theatre

30B Grindlay StreetEdinburgh EH3 9AX

Auditors Chiene + Tait Chartered Accountants and Registered Auditors61 Dublin Street Edinburgh EH3 6NL

Bankers Bank of Scotland1 Castle TerraceEdinburgh EH1 2DP

Solicitors Tods Murray LLP Edinburgh Quay 133 Fountainbridge Edinburgh EH3 9AG

Directors and TrusteesThe directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.

The trustees serving during the period, and since the period end, were as follows:

Donald Emslie (Chair)Richard M Findlay (Vice Chair)Mark ThomsonVikram Lall (resigned 6 December 2007)Jennifer Black (resigned 24 April 2008)Neil Menzies (re-elected 20 February 2008)David AndersonEric Milligan (re-elected 20 February 2008)Frances Benton (appointed 3 July 2007,resigned 13 June 2008)Lynne Higgins (appointed 3 July 2007)Neil McKerrow (appointed 3 July 2007)

CEC nomineesCllr Deirdre Brock (appointed 3 July 2007)Cllr Charles Dundas (appointed 3 July 2007)Cllr Paul Godzik (appointed 3 July 2007)Cllr Richard Henderson (resigned 24 May 2007)Cllr John Longstaff (resigned 30 May 2007)Cllr Kathleen McKenzie Cllr Chris Wigglesworth (resigned 25 April 2007)

SecretaryTM Company Services Limited

Artistic Director and Chief Executive Mark Thomson

Of the 237 performances on ourstage, the Lyceum produced 210

CORPORATE MEMBERSPatrons:

Benefactors:

Partners:

SPONSORS

DESIGN PARTNER

MEDIA PRODUCTION PARTNER

SUPPORTERS

DONORS29th May Charitable TrustThe Binks TrustCross TrustCruden FoundationD’Oyly Carte Charitable TrustDr Guthrie’s AssociationThe Ernest Cook TrustThe Inchyre TrustLord Rosebery Charitable SettlementThe Lynn FoundationThe MacRobert TrustThe Nancie Massey Charitable TrustRussell TrustThe Tay Charitable Trust

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SUPPORTERSAND SPONSORSWe thank the following

for their support this year:

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1Man of La Mancha

THE ROYAL LYCEUM THEATRE COMPANY LTD CONSOLIDATED BALANCE SHEET AS AT 5 APRIL 2008

5 April 2008 7 April 2007£ £

Fixed assets:Tangible assets 1,014,900 1,117,707

Current assets:Stocks 19,145 19,473Debtors 147,524 215,544Cash at bank and in hand 718,059 311,345

Creditors: Amounts falling due within one year 771,229 550,654

Net current assets/(liabilities) 113,499 (4,292)

Net assets 1,128,399 1,113,415

The funds of the Charity:Restricted capital funds 926,247 1,042,363Unrestricted income funds 202,152 71,052

Total charity funds 1,128,399 1,113,415

THE ROYAL LYCEUM THEATRE COMPANY LTD CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 5 APRIL 2008

Total funds Total funds period ended period ended5 April 2008 7 April 2007

Incoming resources from generated funds £ £

Voluntary income:Grants and donations 1,604,322 1,340,068

Activities for generating funds:Fundraising events and sponsorship 53,138 33,592Commercial trading operations 219,138 184,736Rental income 90,736 113,009

Investment income:Bank interest 23,793 15,251

1,991,127 1,686,656

Incoming resources from charitable activities

Operation of theatre:Box Office/Productions 957,838 926,009Project/service specific grants 2,360 468Education 145,482 121,338

1,105,680 1,047,815

Total incoming resources 3,096,807 2,734,471

Resources expended

Costs of generating funds:Cost of sponsorship and fundraising events 48,036 65,894Commercial trading operations 189,552 173,524

237,588 239,418

Charitable activities

Operation of theatre:Box Office/Productions 2,639,075 2,424,891Education 191,956 185,611

Governance costs 13,204 9,236Total resources expended 3,081,823 2,859,156Net movement of funds in period 14,984 (124,685)Total funds brought forward 1,113,415 1,238,100

Total funds carried forward 1,128,399 1,113,415

SUMMARY OF FINANCIAL ACTIVITY

1 Box Office/Productions 957,838 31%2 Education 145,482 5%3 Activities for generating funds 409,897 13%4 Grants 1,583,590 51%

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INCOME EXPENDITURE

The trustees are pleased to present the financial statements of the charity for the period ended 5 April 2008

£ £1 Box Office/Productions 2,639,075 86%2 Education 191,956 6%3 Costs of generating funds 250,792 8%

REPORT OF THE TRUSTEES

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These statements are a summary ofinformation taken from the statutoryaccounts of The Royal Lyceum Theatre Company LtdThe full accounts, approved on 19 September2008, from which these summarised financialstatements are derived, have been audited byChiene + Tait and their report is unqualified. The full audited accounts can be obtained fromFiona Semple, Management Accountant on0131 248 4813or fsemple@lyceum.org.uk. The Directors’ annual report and accounts aresubmitted to both Companies House and toOSCR (Office of the Scottish Charity Regulator).

Signed on behalf of the Directors

Donald Emslie, ChairThe Royal Lyceum Theatre Company Ltd is a registeredScottish Charity No. SCO10509.

Independent Auditors Statement to theDirectors of The Royal Lyceum TheatreCompany LtdWe have examined the summarisedstatements set out on page 10.

Respective responsibilities of Directors and auditorsThe Directors are responsible for preparing the summarised financial statements. Ourresponsibility is to report to you our opinion on the consistency of the summary financialstatements with the full annual accounts andDirectors’ report, and its compliance with therelevant requirements of section 251 of theCompanies Act 1985, and the regulations made thereunder. We also read the otherinformation contained in the summarisedannual report and consider the implications ofour report if we become aware of any apparentmis-statements or material inconsistencieswith the summarised financial statements.

Basis of OpinionWe conducted the work in accordance withBulletin 1999/6 ‘The auditor’s statement on thesummary financial statements’ issued by theAuditing Practices Board.

OpinionIn our opinion the summary financialstatements are consistent with the full annual accounts and the Directors’ report of The Royal Lyceum Theatre Company Ltd for the period ended 5 April 2008, and complywith the applicable requirements of section 251 of the Companies Act 1985 and theregulations thereunder.

Chiene + Tait Chartered Accountants and Registered Auditors 61 Dublin Street Edinburgh EH3 6NL

29 September 2008

“Our ambition remains to make the Lyceum a vivid and creativepowerhouse for the benefit ofEdinburgh and Scotland, its people and the art of theatre.”

Photography: Ian Jacobs, Douglas McBride, Richard Campbell, Alan McCreadie