2015 – A Momentous Year - Cloudinary

SAULDON PASQUALEHA N D ELDON I ZETTITOUR 20 16Photo: Tristram KentonThe Times The Guardian Photo: Richard Hubert Smith‘ Half pleasure garden,half Bedlam, BarrieKosky’s flamboyantproduction of Saulhas a new energyin Donna Stirrup’srevival.’TO U R 2 0 1 6‘ The cast is excellent.Fardilha’s avuncularwarmth contrasts nicelywith Brancy’s seductivebrilliance Pretorian hasa more overtly dramaticvoice than we usuallyhear as Norina, whichmakes her big tantrumsall the more alarming.’DIE ENTFÜHRUNGAUS DEM SERAIL‘ [Performances for Schools] bring live,extremely high quality and professionalperformances to children. Not makingallowances for their age by “dumbing down”.’MO Z A R TPrebendal SchoolTOUR 20 16Performances for SchoolsPhoto: Sam StephensonPhoto: Sam StephensonThe Guardian Photo: Clive Barda‘‘ James Kryshak’sPedrillo is athleticand vocally charming,while Rebecca Nelsenpresents Blonde asa spitfire not to bemessed with.’

F INA NC IAL OVER VIEWFinancial OverviewI am delighted to report that we remain on track tosatisfy the core strategic objective to remain financiallyindependent, generating an operating surplus for thesecond year in a row and an increase in reserves.Whilst we recognise that with a top ticket price forsome of our Festival performances of 250 – althoughmaintained for the third year in a row – is not affordableto all, it does enable us to ensure a full range of activityelswehere, making Glyndebourne’s work available to allat very affordable prices or indeed for free.Photo: James BelloriniThe core activity during the year comprised:Sarah Hopwood Six Festival productions, of which three, Poliuto, DieEntführung and Saul, were new and The Rape of Lucretiawas performed in the Festival for the first time, to anaudience of over 90,000 across 79 performances. Thisincluded over 2,069 top price tickets for our Under 30smembers at 30, this subsidy being made possibleprimarily thanks to the generosity of donors to theNew Generation Programme (NGP), and 10 standingplaces for all performances. T hree Tour productions, Die Entführung and Saultouring for the first time alongsideDon Pasquale, to an audience of over 40,000 in sixdifferent venues, including over 7,000 tickets madeavailable across six Performances for Schools. 3 0,000 people of all ages engaged with our yearround Education programmes, much of which wasfree or substantially subsidised to the participantdue again to the support of the NGP, includingGlyndebourne Youth Opera groups, Raise Your Voice(our work with dementia sufferers and their carers),pre-performance talks and family workshops. F our new titles were filmed from the Festival enablingdistribution through television, cinema, free onlinestreaming and DVD, in addition to audio broadcastson Radio 3, and a semi-staged performance of DieEntführung at the BBC Proms.17GLYNDEBOURNE ANNUAL REPORT 2015Turnover at 26.3 million saw a slight dip onthe record level achieved in 2014.Box Office income reaching 16.6 million,again exceeded all previous records andaccounted for 63% of total turnover. Acashtake of over 95% of gross potential saleswas achieved for the Festival and Tour salesheld up well at 80% after a worrying dip in 2013.Total fundraising, including Membershipsubscriptions, dropped very marginally,by less than 2%, to 7.6 million. The NGPand Annual Fund campaigns were bothvery successful, and funds were furtherboosted by the Mary Christie Rose Gardencampaign, but the timing of receipt of fundsfor three-year Corporate Membership had adetrimental impact.Other income comprising merchandise,catering, production hire and the sale ofsurplus electricity generated by the turbine,contributed a further 2.1 million, theslight decline on previous year being due toincome arising from the tour of Billy Budd tothe Brooklyn Academy of Music in New Yorkin 2014.Total operating costs amounted to 25.8 million, a 4% increase over 2014, butonly 2.5% over the average of the past fiveyears, costs varying significantly dependingon the scale of repertoire.Production-related costs increased by2% to 16.7 million, accounting for nearlytwo-thirds of total operating costs. Withcontinued tight cost control, the increasewas purely due to audience developmentinitiatives – the filming of four productions,compared to two in 2014, and investment ina larger campaign than ever before to betterunderstand our potential audiences and toraise awareness of Glyndebourne generally.Management and administration costsamounted to 6.3 million, the increase over2014 being due to the higher weekly averageheadcount, a 2% pay increase for all staff andan investment in fundraising.Premises costs, over half of which isaccounted for by depreciation, amountedto 2.3 million, little change from 2014, withcontinuous investment in maintaining thetheatre to a high standard.We have benefitted for the first time in 2015from Theatre Tax Relief (TTR), followinglegislation introduced by the Governmentin September 2014 to provide tax relief onqualifying theatre production costs to boostemployment and investment in the Arts. Thebalance amounting to 1.3 million comprisesthe amount received in 2015 following aclaim in respect of the 2014 Tour productionsand provision for all of the 2015 productions.These funds have been designated to theNGP for investment in new artist andaudience development initiatives.The net surplus generated has contributedto a record level of cash and investmentsat 31.1 million, authority having beendelegated to Rothschild to manageinvestments for the Charity, with theobjective of long-term capital appreciation.Of this balance, 14.5 million is deemed tobe ‘free’ cash, the proportion that is notrestricted for any other purpose. Whilst thisis higher than target in a normal year, weGLYNDEBOURNE ANNUAL REPORT 201518

OutlookWhilst delighted that an operating surpluswas achieved for 2015, scale of repertoire isthe most significant factor in determiningcost, and 2016 with the revival of DieMeistersinger von Nürnberg in conjunction withsome other particularly large productions,is going to provide a challenge from both afinancial and practical perspective.We continue to budget on the basis ofa Festival cash take of at least 95%, anambitious but necessary target in order topay the wages. A 5% shortfall of this targetwould result in a loss of income of nearly19GLYNDEBOURNE ANNUAL REPORT 2015 800,000. With price sensitivity an increasingrisk, we are committed to finding other waysof operating, including income generationfrom other sources and ever more efficientways of working in the hope that we canmaintain average ticket prices at currentlevels for the next three years.We are mindful of our over reliance onboth our loyal members and generoussupporters, predominantly individuals,and certainly do not take this loyalty forgranted. We are constantly striving toboth ensure that the entire Glyndebourneexperience is perceived as representingvalue for money and to expand our pool ofdonor support towards our key objective ofremaining financially independent.Finally, annual funding from Arts CouncilEngland has enabled us to plan ahead withconfidence for both the Tour and ouryear-round Education activity. Whilstfunding from this source is committed for2016 and 2017, we cannot be complacentabout the implications of any potential cutin funding beyond this.As rehearsals for 2016 are in full swing andticket sales strong, we move ahead withconfidence but aware of the significantfinancial challenges facing us.F INA NC IAL OVER VIEWneed to build reserves to invest in capitalprojects, likely to be at a higher level thanin recent years. During the year capitalexpenditure amounted to 808,000, themost significant projects comprising theacquisition of three new Steinway pianosand the commencement of the installationof a new passenger lift to improve accessfor all, both funded by generous donationsto the Annual Fund and by Arts CouncilEngland in the case of the lift; the designand installation of the White Cube pop-upgallery and phase 2 of the installation of LEDlighting in the auditorium, further reducingour electricity usage. In the next two years,the key areas for development are the carpark and major investment required in asignificant upgrade of the props workshops.Plans are at an early stage to build a newproduction hub comprising props, wigs, aclimate-controlled costume store, a newrehearsal studio and much needed musicpractice rooms.Five Year Financial HighlightsGlyndebourne Productions Ltd (including Glyndebourne Arts Trust)20152014201320122011 ’000 ’000 ’000 ’000 ’000TURNOVER26,35526,94624,46224,99424,877Box 8202,3102,413OPERATING URPLUS/(DEFICIT)5622,154-1,000-456-65INVESTMENT 6833416TOTAL CASH &INVESTMENTS31,10830,14027,17424,51021,802Of which rah HopwoodDirector of Finance & ResourcesGLYNDEBOURNE ANNUAL REPORT 201520

The New Generation Programme (NGP) waslaunched in 2009 to serve as a significantinvestor in helping Glyndebourne achieveits four key objectives of creating world-classtransformative opera, remaining financiallyindependent, engaging broad audiences,and creating a stimulating and inspirationalenvironment for all.Developing future audiencesThis investment is made possible throughboth designated and undesignatedfunding from individuals and trusts andfoundations. This funding goes towardssupporting and sustaining NGP programmesfocused on the following five key strandsof work: developing future audiences,securing artistic excellence, education andcommunity outreach, developing our skillsand investing in our facilities. Performances for Schools – we were ableto sell nearly 4,000 tickets at a price ofonly 7 per ticket due to subsidy by theNGP. These performances were supportedby events and a new digital resource, TheDon Pasquale Guide.Since the launch of the NGP programmein 2009, funding of over 9 million hasbeen secured through the generosityof our donors, of which 6 million hasbeen invested in NGP programmes todate. The NGP reserve at the year end,including investment income, amounted to 3.8million. A further 1.3m of unrestrictedfunds has been designated within the 2015accounts for use within NGP, being theamount expected to be recovered in 2016through Theatre Tax Relief.Specifically, in 2015, we are very pleasedto report that NGP donors committed 1,090,000 of which 1,028,093 was invested inNGP projects during the year in the followingkey activities:21GLYNDEBOURNE ANNUAL REPORT 2015 Under 30s - 2,069 top price tickets weresold at the subsidised price of 30 tomembers of our Under 30s programme.This is an increasingly important sourceof new audiences for Glyndebourne. In2015 ten Under 30s members becameAssociate Members. Investment in Media & Content – Fourof the productions in the 2015 Festival(Poliuto, Die Entführung aus dem Serail, TheRape of Lucretia and Saul) were filmed anddistributed through a range of media,including TV, cinema and free onlinebroadcasts with an audience reach inexcess of 600,000.Securing artistic excellence Chorus Development – We continued tosupport young, emerging talent, both inthe Glyndebourne Chorus through theJerwood Chorus Development Schemeand through our Debut Artists Scheme.Through this investment four singers(Emma Kerr, Marta Fontanals-Simmons,Gyula Rab and Timothy Nelson) wereidentified with exceptional talent and assuch were selected as 2015 Jerwood YoungArtists. These four singers went on toperform small roles in both the Festivaland Tour and were understudies.NGPNew GenerationProgramme (NGP)Summary Accounts2009to 2011New Generation Programme2015201420132012TotalIncome ’000 ’000 ’000 ’000 ’000 ’000Associate Membership joining 0909376028255,7949,248Developing future audiencesU30 ticket subsidyFamily PerformancesPerformances for SchoolsDramaturgFilming/audio recordingWeb 034050505012021850597139598101,444135Securing artistic excellenceChorus Development SchemeComposer-in-ResidenceStudio commissionsDebut -516851778926Education & community outreachOpera ExperienceYouth groupsGlyndebourne AcademyNew eloping our skillsRoutes into GlyndebourneLearning and development29-35-3850155056-173100Total GrantsInvesting in our facilitiesEbert RoomNet cash inflow/(outflow)Net investment gains/(losses)Fund balance at year 4,0303,846GLYNDEBOURNE ANNUAL REPORT 201522

Local Partnerships – Glyndebournecontinued to collaborate with EastSussex and Brighton and Hove MusicHubs through various activities duringthe year, including the East SussexSummer Singing School, ArdinglyArts Festival and the Rugby World CupProject, which between them engagednearly 400 young people. Studio commissions – Through thisinvestment Glyndebourne was able tomount a world-premiere opera, Macbeth,composed by Glyndebourne’s previousComposer-in-Residence, Luke Styles anddirected by Ted Huffman. Performancesat both Glyndebourne and The RoyalOpera House were sold-out, expandingboth audience and press coverage forGlyndebourne. Glyndebourne Academy – The Academyis designed to target young singerswho have faced barriers to traditionalroutes into singing and who would nototherwise have had the opportunity.The Academy involved an applicationprocess, followed by a residentialweek in which ten young talentedsingers were given the opportunityto work with Mary King and a teamof opera professionals includinglanguage and movement coaches.The Academy concluded with a finalweekend when participants performedon the Glyndebourne stage and in theEbert Room as part of a presentation.This year’s Academy resulted in fourparticipants being offered places atmusic college, one of whom has alreadystarted.Education andCommunity Outreach Youth Groups – Supporting and developingtalent was a priority for the Educationprogramme. A total of 13 workshops forGlyndebourne Youth Opera (GYO) wereheld during the year with 226 placesfilled, bringing in 105 new participants.Glyndebourne Vocal Talent ConsultantMary King led projects which resultedin four members of GYO 1 (aged 9-13)performing in the 2015 Festival productionof Carmen within the children’s chorus,and 20 GYO 2 (aged 14-19) performed Dido& Aeneas in August 2015 in the Ebert Roomas a Festival Extra. Through workshopsand auditions four members of GYOsuccessfully auditioned to be fox cubs inthe 2016 production of The Cunning LittleVixen and GYO’s performance project in2014, Tycho’s Dream, was shortlisted for aBritish Composer Award.23GLYNDEBOURNE ANNUAL REPORT 2015NGP Composer-in-Residence – LewisMurphy completed his first year asGlyndebourne’s Young Composer-inResidence. His song cycle Damsel/Wife/Witch was performed as a Tour Extraevent, and he completed a project calledOpen Sesame with a community centre inHailsham, which culminated in an eventin the gardens at Glyndebourne.GovernanceThe NGP continues to be one of the corefundraising strategies for Glyndebourne.John Botts, Chair of GPL, and I, a memberof the Glyndebourne Advisory Council,continue to comprise the committee withresponsibility for the governance of NGP.During 2015 we met formally twice withGlyndebourne’s executive managementteam, with the focus being on the useof resources, portfolio investmentperformance and fundraising strategy.Together we review the proposedinvestment by NGP in new and ongoingprojects to ensure that they meet theobjectives of NGP and are capable ofbeing funded without impacting onGlyndebourne’s core operating costs.managers from Rothschild at least twice ayear. The accounts for NGP are reviewed byexternal auditors annually.I would like to take this opportunity tothank all those who have donated tothe NGP, and to encourage others to getinvolved. Through your generosity we areable to invest in initiatives which allow usto engage with broader audiences and toopen doors for young talented artists, workwhich is critical to the long-term futuresuccess of Glyndebourne.Sir Martin Smith, Chair, NGP CommitteeThe NGP investment portfolio is managedby NM Rothschild in a segregated account,for which regular reports are received, andthe Trustees meet with the investmentDeveloping our skills Routes into Glyndebourne – Thisprogramme has allowed Glyndebourneto offer on-the-job training positionsin several key departments includingCommunications, Box Office, thegardens and Education.GLYNDEBOURNE ANNUAL REPORT 201524

NGP supportersBrian Mitchell CharitableSettlementAnn Winifred BirdMr B Bozic andMrs V Mandic-BozicMr and Mrs Stephen BrearleyC H Dixon TrustTim and Liz CaponMr Rupert ChristiansenMr and Mrs M J CooperKate DugdaleMr A M DunworthMike and Mo EdwardsThe Guild of Freemenof the City of LondonMr D G LewisMr C H McCallMr Frederik PaulsenSir David and Lady ProsserMrs Arlene RabinProfessor Terence andMrs Anne RyanThe Turner FamilyEmma WhitakerIn memory of thelate Tom WinserAnd two anonymous supportersDeveloping Future AudiencesPerformances for SchoolsPeter Baldwin andLisbet RausingThe Chalk Cliff TrustClore Duffield FoundationThe Foyle FoundationThe Helen Wade Charitable TrustThe Kowitz Family FoundationSir Patrick SheehyMike and Agatha TaylorTrusthouse CharitableFoundationWarburg PincusGeorge and Patti WhiteAnd three anonymous supportersEducation and CommunityOutreachTufton Charitable Trust insupport of SoundCity and EastSussex Music Education HubGlyndebourne Youth OperaJoanna Dickson LeachMiss Antonia Gabites andDr Michael JackPeter and Jane HowSupporting Talent inGlyndebourne Youth OperaConrad Blakey OBE RDDigitalDunard FundDavid and Clare KershawSir Martin and Lady Elise SmithMorton and Estelle Sosland *Lindsay and Sarah TomlinsonAnd two anonymous supportersSupporting under 30sPeter and Fiona EspenhahnAdam and Elizabeth MaberlyMark TouseyNothingThe Bernard SunleyCha

Cube, we opened the White Cube at Glyndebourne gallery in 2015. A temporary structure, the gallery remained in the grounds throughout the Festival to exhibit the work of Georg Baselitz, and forms part of a three-year partnership with White Cube. There was another change in the gardens i