BEAM Financial Performance FAQs

The council’s statement provides an overview of BEAM’s financial performance during 2025/26. The FAQs below provide more detail on what has contributed to that position, the changes already being made, and the steps being taken to improve performance in the years ahead.
 

Was the original business plan wrong?

The original business plan was developed before BEAM opened and was based on assumptions about audience demand, income and operating costs rather than real-world operating experience. It also reflected a pre-pandemic view of the sector and was informed by external advice that anticipated a stronger recovery than has been seen in practice.

Audience habits have evolved following the pandemic, with increased competition from streaming services and changing expectations about how and when people spend their leisure time. The ongoing cost-of-living pressures have also affected spending, making consumers more selective about entertainment and hospitality purchases. At the same time, costs across the theatre, cinema and hospitality sectors have increased substantially.

In response, the business plan was revised to reflect changing market conditions and a more realistic understanding of the operating environment. Following BEAM’s first full year of operation, we now have a much stronger evidence base and are continuing to refine our plans further to reflect the realities of today’s market.
 

Why are you referring to BEAM having been fully operational for a year?

While parts of BEAM opened in August 2024, the venue was brought into full operation in March 2025. The 2025/26 financial year is therefore the first year that BEAM has operated at full capacity, providing the clearest picture so far of its performance as a complete venue.

Why did the financial forecast change so significantly during the year?

We reported a potential loss of £275,000 over 2025/26 when officers last reported to councillors in September 2025. As the year progressed, the forecast worsened significantly. This was due to a combination of factors, including income being lower than expected, expenditure being higher than expected, and £440,000 of ticket sales for shows taking place in 2026/27 (but sold in 2025/26) needing to be accounted for separately.

The council is changing the way it reports financial information for BEAM to improve accuracy, strengthen oversight and identify emerging issues earlier.
 

What has caused the loss?

There is no single cause or area that has driven the overall loss. A significant factor is that income has not met the levels assumed in the business plan.

BEAM has high fixed costs, including staffing, building and contract requirements (around £1.6m per year). Income from shows, cinema screenings, hires and the bar must cover these costs before the venue can break even. Costs also increase with activity, as more shows require additional technical staff, bar staff, marketing and consumables.

Where ticket sales are strong, this generates additional income through the bar and wider spend. However, in 2025/26 a small number of shows did not perform as expected, which affected overall income. Total income for the year was £2.8m, around £800k lower than previously forecast.

Expenditure was also higher than expected. This included increased use of casual staff and additional costs for IT, software, security and CCTV. In addition, the food offer made a loss up to 31 March, as it was only launched in October and will take time to become profitable. Total expenditure for the year was £3.8m.
 

What actions are in progress to improve the position?

We have already made a wide range of changes to improve BEAM's finances. This is built around three key priorities: increasing income, reducing costs and strengthening financial management.

A range of actions have already been delivered. These include changes to programming to reduce risk and remove loss-making activity, improvements to ticketing and pricing, introducing new revenue streams, and making the staffing model more flexible and efficient. We have also renegotiated contracts to reduce costs, launched a new website with improved sales tools, and introduced tighter controls on opening hours and stock.

Alongside this, further work is underway to grow income. This includes refining the events programme to focus on what audiences respond to most and expanding commercial opportunities such as conferencing and catering. We are also developing the food and beverage offer to increase spend per customer and generate additional revenue.

As part of this work, we plan to introduce a Monday daytime cinema programme from September. This will focus on reduced-price screenings of new mainstream releases, “second chance” screenings of popular films shown at BEAM over the past year, and additional BEAM with Baby screenings linked to workshops and classes in our social spaces.

Together, these actions represent a shift to a more commercially focused and sustainable operating model. While some changes will take time to fully impact due to programming and contract cycles, we are starting to see early positive results and will continue to refine our approach.
 

How do you know the plan is working?

Over the last year, BEAM has experienced encouraging early growth across several key performance areas. Comparing September-March 2025/26 with the same period in the previous year, stage occupancy has increased by 12% and screen occupancy by 17%. Overall ticket revenue has risen by 47%, alongside a 20% increase in pantomime sales compared with the previous year. Notably, 40% of pantomime attendees were visiting BEAM for the first time.

Benchmarking data also shows our sales performance is tracking slightly ahead of comparable venues nationally.
 

Why is 2028/29 the target date for breaking even?

Our revised business plan reflects what we have learned from BEAM's first full year of operation and the realities of the current market.

Over the past year, we have adapted the way the venue operates, including changes to programming, pricing, commercial activity and financial management. Those changes are designed to better reflect audience expectations and create a more sustainable business model, but they take time to deliver their full impact.

The revised business plan therefore takes a realistic approach to increasing income and managing costs over time, with the aim of achieving a break-even position in 2028/29.
 

Why doesn't the council sell BEAM to a private operator?

BEAM was developed to provide cultural, community and economic benefits for East Herts residents. The council remains committed to making BEAM a success and is focused on implementing the improvements identified through its first full year of operation. As part of our long-term planning, we will continue to review all options to ensure the venue delivers the best possible value for residents.

Why is the council continuing to support BEAM when other towns in East Herts have not received similar investment?

BEAM is based in Hertford, but it was developed to serve residents from across East Herts and beyond. We are pleased to see audiences visiting from right across the district, including Bishop's Stortford, Buntingford, Sawbridgeworth, Ware and our rural communities.

As well as providing cultural and community benefits, BEAM has also generated more than £2m of economic impact since opening, supporting local businesses and attracting visitors to the district.

The council invests in a wide range of services, facilities and projects across East Herts, and not every investment is located in every town. BEAM is one part of that wider picture, providing cultural, community and economic benefits that can be enjoyed by residents wherever they live in the district.

Our focus now is on ensuring BEAM delivers the greatest possible value for residents and becomes financially sustainable over the long term.