Agenda item

The Watersmeet Annual Review Presentation 2024-25. For members to receive a presentation on Watersmeet’s performance for financial year 2024-25.

Recommendation

That: The report be noted.

The Head of Customer Experience introduced Ben Terry, Watersmeet General Manager and Judy Simpson, Marketing & Campaigns Manager who presented the report.

Members enquired about the current utilisation of Watersmeet Theatre’s venue capacity. The Head of Customer Experience explained that while some events sell out, others do not, which is a deliberate strategy to balance appealing to existing audiences and attracting new audiences. In terms of calendar availability the venue is nearing full capacity towards the end of the week, particularly Thursday through Saturday, while earlier weekdays have lower demand and more availability. The officers mentioned that the team is exploring growth opportunities by creating attractive packages, such as a week-long hire option, to increase utilisation during less busy periods.

Members addressed the financial and operational performance of the theatre, which has successfully reduced its cost to the Council, indicating positive financial progress. The officer emphasised that compared to other similar event spaces in the southeast region, outside London, Watersmeet performs well, ranking in the top third nationally for venues of its size category. The venue is classified as medium-sized, which presents challenges in attracting national tours or week-long shows, unlike larger venues such as Watford Colosseum. Despite these challenges, Watersmeet performs competitively within its category with some larger venues operating at significant losses, while a few venues manage to operate at a surplus.

Members raised concerns about the impact of recent cost increases and budget constraints on future financial projections. The officer highlighted that prior to the COVID-19 pandemic, the theatre had generated a net surplus for 2 years running, which provides optimism for future financial stability. However, due to current budgetary limitations, it is a more cautious approach, with incremental improvements preferred over rapid progress, which would increase financial risk.

Additionally, staffing issues were also addressed, specifically the replacement of a technical staff member by January. The officer explained that while technical work is supported by casual staff and supplemented by partner organisations, this is only a short-term solution, and the permanent position needs to be filled to ensure long term operational stability.

Members expressed their appreciation and gratitude for the work that staff and volunteers do at the theatre.

The theatre’s turnover was highlighted by Members, noting a total cost reduction of £34,000, and enquiring about the nature of these savings. The officer explained the complexity of the financial arrangements, emphasising that turnover includes all sales, such as ticket and bar income. Improvements are attributed to more favourable profit-sharing arrangements with promoters and more efficient bar operations, resulting in better markups despite increased spending.

Councillor Andrea Fraser spoke on the item addressing concerns about the current management of the Watersmeet Theatre. The Councillor highlighted successful models like the Queen Park Arts Centre and Aylesbury Waterside Theatre, suggesting that Watersmeet can develop its unique identity while learning from these examples.

The officer responded by highlighting that these venues, mentioned as examples, are not direct competition due to differences in size, operating models and financial risk. Larger theatres can host long-running shows with higher ticket sales, while smaller venues face physical and operational restrictions, Watersmeet specifically has limited stage height, affecting scenery movement, which presents a unique challenge. The officer emphasised the benefits of council-run theatres with experienced staff, familiar with local operations, suggesting that national operators of larger venues may not necessarily improve management of smaller theatres.

Councillor Chris Lloyd proposed an amendment to the recommendation to include a note of thanks to the staff and volunteers at Watersmeet Theatre, recognising their hard work as crucial to the current situation.

Councillor Chris Lloyd moved the recommendation with the proposed amendment.

On being put to the Committee, the motion was declared CARRIED by the Chair, the voting being by general assent.

RESOLVED:

That:

1. The report be noted.
2. The Committee thanks the staff and volunteers of Watersmeet Theatre for their vision and hard work.