[citation needed] The first production — Hell's Angels on Typewriters by Angela Wye — opened in May 1977,[4] and the then-50-seat auditorium became an instant favourite with local audiences for lunchtime performances whilst sharing the building with a Caribbean night club.

In 1978, the Arts Council recognised the work of the theatre by awarding a major grant, and in 1979 the nightclub closed, evening performances were introduced and the seating capacity was increased to 100.

[citation needed] Cabaret evenings were introduced, with performers including Lenny Henry, French & Saunders, Rik Mayall, Ben Elton, and Julian Clary.

Gradually more plays were premiered, with many being specially commissioned by successful writers, such as Sue Townsend, who wrote Groping for Words and Womberang for the theatre.

Following a brief closure for major refurbishment, including the building of the bar, the theatre re-opened in 1985 under the directorship of Ted Craig[5] with the premiere of David Allen's Cheapside.

Kevin Hood's new play Beached won the first festival in 1986 and he later became Resident Playwright, writing both The Astronomer's Garden and Sugar Hill Blues for the theatre.

The new writers discovered by the festival, including James Martin Charlton, Sheila Dewey, Richard Vincent, Mark Norfolk, Maggie Nevill and Roumen Shomov have gone on to further productions, radio and screen contracts.

There were picture tiles from the 1880s, mostly on the cellar under the main staircase, and a "crab" winch and wall crane of unusual design in full working order on the side of the building.