Kenton heading back to black

THE Kenton Theatre says it has turned a corner after cutting its losses by more than £150,000 in the last financial year.

The historic venue in New Street, Henley, incurred a loss of £31,599 in the financial year 2023/24 compared with a deficit of £189,850 in 2022/23.  

Now the trustees have said they hope the theatre will break even in the current financial year, which ends on August 31.

In the last financial year, the Kenton’s costs increased but this was offset by a significant rise in its revenue to £718,451 from £502,045 in the previous year.

One of the most significant changes in the theatre’s fortunes came from an increase in income from subscriptions, donations and grants, which totalled £72,727 compared to £8,910 the previous year.

The theatre’s primary source of income continued to be ticket sales and hire fees, which totalled £533,816 compared with £402,324 in the previous year.  

The theatre put on 252 performances, compared with 222 the previous year, and sold 29,226 tickets, an increase of 13 per cent year on year.

Income from other trading activities, such as bar and coffee sales, also went up from £90,525 to £111,906. The trustees also had to revise the theatre’s losses reported in the previous year’s accounts to reflect the impact of an historic VAT issue, which resulted in an increase in its deficit from  £165,551 to £189,850.

In August 2023 the theatre was granted a £100,000, 20-year loan by Henley Town Council which the trustees said was to prevent from it “going dark”.

This loan was followed in December 2023 by a one-off council grant of £20,000 to subsidise hire costs for community groups.

The loan was used to boost cash flow and provided the liquidity needed to stabilise the Kenton’s finances.

The repayment schedule for the loan will commence in September at an interest rate of 5.6 per cent.

The largest expense in the last financial year was the cost of operating the theatre, which totalled £484,410.  Management and administration costs rose from £189,911 to £229,769.

Tara Macleod, who chairs the theatre’s trustees, said she was very encouraged by the theatre’s financial performance but said that more work was needed for it to break even next year.

She said: “We have worked very, very hard and I think we are turning a corner.

“We’re beginning to really understand how the business works and what needs to be done. We’re not out of the woods yet, but we’re getting better.

“We are looking to the future. We’re aiming to get the theatre to operationally cover its costs and we’re getting closer.”

Ms Macleod, who has a background in marketing and communications, was elected a trustee of the Kenton in July 2023 and chairwoman the following month. She said maintaining the Grade II listed building was one of the biggest expenses.

“The building costs is our biggest concern,” said Ms Macleod. “It’s 220 years old and very little refurbishment has been done. It’s reaching a point where it needs serious work.”

She said the theatre was currently in the process of replacing its lighting, which has not been touched since the Sixties.

Ms Macleod said the marketing of the theatre had improved dramatically, boosting ticket sales.

“It’s word of mouth as well,” she said. “I think the reputation of the theatre is getting stronger and people are noticing it.

“There are still some people who have lived in Henley all their life but don’t realise that the theatre is even there. I think we're changing that.”

Ms Macleod said the theatre staff had changed and its “refreshed” board of trustees were working well.  The board had focused on stabilising the business through cutting costs, investing in infrastructure, switching from freelance staff to permanent, streamlining processes and placing a greater emphasis on fundraising.

Ms Macleod said: “We have commercial people running it like a business and that’s the major change.

“It’s just a different set of people who all love the theatre but are approaching it probably slightly differently from their predecessors.”

She thanked the theatre’s volunteers, whose numbers have grown from 105 to 145 this year.

Ms Macleod said the theatre would continue to actively fundraise and apply for grants as well as developing new income streams.