The now-defunct Centre for the Moving Image (CMI) – the umbrella charity that ran the Edinburgh International Film Festival (EIFF), Filmhouse Cinema in Edinburgh and the Belmont Filmhouse in Aberdeen – flagged concerns over its financial situation dating back to 2016, as revealed by the CMI’s accounts, and first reported in The Scotsman.
In October, the CMI announced it was to cease trading, citing “the perfect storm of sharply rising costs, in particular energy costs, alongside reduced trade due to the ongoing impacts of the pandemic and the cost of living crisis”.
The CMI’s accounts for the year ending March 31 2016 flag that the charity was facing “major risks”. These risks included a reduction in public funding and inadequate building and facilities, with the Filmhouse building described as “not adequate for the long term financial health of the organisation”.
Effective corporate governance was also listed, stating “for it [the charity] to succeed, it must maintain effective corporate governance, and regularly review the skills and experience mix of the board of trustees. The charity is currently seeking to strengthen the skills and experience mix of the board of trustees.”
The “long unaffordability” of the Lothian Pension Fund scheme, which the charity was a community admission body of, was also cited, with the charity hit with debt of £836,000 for exiting the scheme, which had been closed to new members since 2006.
In spite of these “major risks”, the 2016 accounts pointed towards plans for a national film centre, offering a new home for the Filmhouse and Edinburgh International Film Festival. Plans were submitted for a nine-storey, £50m ($56.5m) New Filmhouse project in Festival Square in 2020, with financial support from a cultural trust.
The accounts for the year ending March 31 2019 reported that trading across the CMI Group was behind budget, with an overall loss of £261,953, citing “an unusually warm and sunny summer”, with the EIFF at a loss of £72,667 and Belmont making a loss of £78,069.
Across 2019/20, the CMI reported a loss of unrestricted funds of £293,833, citing poor film supply and box office for EIFF.
During the pandemic, the CMI received over £5m in public money, with £1.3m in Covid recovery funding and, according to The Scotsman, an additional £270,00 to stage the festival’s 75th-anniversary in 2022.
There were rumblings of issues dating even further back. The 2015 accounts reported a “challenging” first year after the CMI took on the lease and operating contract for the Belmont Filmhouse on April 1 2014.
“Belmont Filmhouse Ltd had a challenging first year of trading, relying on the support of its parent, the Centre for the Moving Image, and additional in-year investment from Aberdeen City Council and Creative Scotland to sustain operation through the year,” stated the accounts. However, it was also noted that “changes of staffing structure and other aspects of operation through the year meant that by the end of the year, the basics had stabilised”.
Supply issues
The 2015 accounts highlighted issues with film performance for Filmhouse, and “being denied” the opportunity to show films at first week of release. “With the exception of Mr Turner (the business on which was exceptional) the bulk of box office was made up of films doing reasonably well with only Mr Turner a standout.”
The accounts continued: “Our problem with supply continued throughout the year, being denied, as we were, the following titles on release and being forced to wait to play anywhere between three and six weeks” – citing examples including Calvary, Foxcatcher, Boyhood, Gone Girl, Birdman, Selma, The Imitation Game and Whiplash.
Again, the 2016 accounts noted: “The issue of film supply continued throughout the year, being denied, as we were, the following titles on release and being forced to wait to play them,” referencing Carol, Brooklyn, Room, 45 Years, Spotlight, Macbeth and Wild Tales.
Screen understands that, following the pandemic, the Filmhouse was no longer denied access to films in first week of release.
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