BEAM losses nudge £1m

Hertford's new BEAM theatre and cinema lost almost £1m over the last financial year.

A revised business plan produced in 2024 forecast a loss of £200k.

A combination of factors have led to the loses, according to a report by East Herts Council, including increased competition from streaming services, rising costs across the theatre, cinema and hospitality sectors, and the challenges of launching a new venue. The report are states that the council underestimated how long it would take to build audiences and attract the larger productions that come with an established venue.

However, the report notes that there are encouraging signs that BEAM is continuing to grow, with advance ticket sales currently stand at £470k, significantly higher than at the same point last year. The theatre is also attracting larger productions, such as Blood Brothers and Punch. Benchmarking data also shows sales performance is tracking slightly ahead of comparable venues nationally.

Cllr Sarah Hopewell, Executive Member for Wellbeing at East Herts Council, said: "I know this news is disappointing and not what we had hoped for after BEAM's first full year. However, it does not reflect the hard work and commitment of the many people who make BEAM such a special and welcoming place.

"Over the past year, the team has worked hard not only to establish BEAM as a destination for culture and entertainment, but also to learn what works for our audiences and how the venue can operate most effectively. That learning has already led to improvements in how we programme events, manage the business and monitor financial performance.  Some of this can already be seen through the £470,000 in advanced ticket sales for the year ahead, along with growth in both new and returning audiences.

"We are currently developing a revised business plan, based on the experience of the first full year, which sets out a pathway towards breaking even by the 2028/29 financial year. With the plan based on a full year's data, we are confident that it is realistic and achievable, whilst still enabling BEAM to offer excellent outreach and community activities.

"I'd also like to take this opportunity to thank all the staff and volunteers at BEAM for going above and beyond, and for all the residents and community groups who have supported the venue."

Conservative opposition group leader Cllr Aubrey Holt said: "BEAM is a fantastic, state-of-the-art facility and a brilliant project that was proudly delivered by the previous Conservative administration.

"The building is an incredible asset to East Herts with immense potential, but the Green and Liberal Democrat coalition has executed its day-to-day operations appallingly.

"They have been in charge for three years now. During that time, they did next to nothing to shape or improve the venue’s business strategy to meet changing situations, completely failing to identify these massive financial issues until it was far too late.

"The problem here is not the venue; it is a complete failure of operational management by this administration.

"We very much welcome a much-needed new business plan, but it must be fully developed and properly thought out if it is going to provide the fresh leadership and adequate strategy required.

"Our job now is to ensure this leadership is held strictly to account so that BEAM can finally thrive as it was always meant to."

Committee member Cllr Tom Deffley (Con, Aston, Datchworth and Walkern), commented: "To miss a financial forecast so spectacularly, moving from an estimated £275,000 loss to a near-£1 million reality, points to a total breakdown in financial control by the coalition’s leadership.

"While we welcome the introduction of a much-needed new business plan as a vital step, it must be genuinely robust, adequate and thoroughly thought out to correct these deep operational failings.

"The coalition must explain to East Herts residents why they allowed three years of drift and operational failure before finally putting a revised strategy in place.

"We need to see real competence in how this new plan is executed."

The full report to the council's Audit and Governance committee can be read here.