Inverness arts venue Eden Court reports losses despite a surge in ticket sales and attendance.
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The arts venue Eden Court in Inverness has reported significant financial losses in its latest accounts, despite a notable increase in ticket sales. For the fiscal year ending March 31, 2024, Eden Court recorded losses amounting to £668,000, following a staggering loss of nearly £900,000 the previous year.
This situation raises questions about the sustainability of the venue, which is regarded as Scotland’s largest multi-arts center.
Ticket sales and income growth
Despite the financial setbacks, Eden Court has seen a rise in its total income, which increased to £6.8 million from £6.6 million.
The venue sold over 211,000 tickets across its theatre, cinema, and classes during the 2023-24 period, marking an increase of 10,000 tickets compared to the previous year. This surge in attendance is a positive sign, especially in the wake of the challenges posed by the COVID-19 pandemic.
Understanding the financial losses
Rebecca Holt, the chief executive of Eden Court, emphasized that the reported losses do not equate to a cash deficit. A significant factor contributing to the losses is an £800,000 depreciation charge related to the venue’s capital project initiated in 2007. This charge is a standard accounting practice for publicly funded theatres, where costs are recognized over several years. Holt reassured stakeholders that the organization has been operating at a surplus on a day-to-day basis, with an operating surplus of £123,000 for the year, representing 1.8% of turnover.
Future challenges and strategic responses
Looking ahead, Eden Court faces several challenges, including an increase in National Insurance employer contributions. However, the management remains optimistic, buoyed by the positive trend in attendance figures. The venue’s strategic report indicates that approximately 300,000 visitors pass through its doors annually, highlighting its role as a cultural hub in the Highlands.
In response to rising costs and inflation, Eden Court has conducted a thorough review of its cost base to identify potential savings. However, the report cautions that further significant savings could jeopardize the quality and scope of programming offered to the Highlands region and beyond. The venue relies heavily on ticket income, with 75% of ticket sales going to visiting companies presenting shows, limiting its ability to offset rising costs with higher ticket prices.
Despite the financial hurdles, Eden Court continues to receive support, including a £300,000 donation from Highland Council, which is expected to recur in the 2024-25 fiscal year. This funding is crucial for maintaining operations and supporting the arts in the region.
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