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2022-03-31-accounts

Registered number: 02689238 Charity number: 1010632

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

BRISTOL AERO COLLECTION TRUST

CONTENTS

Page
Trustees' Report 1 - 11
Independent Auditors' Report on the Financial Statements 12 - 15
Consolidated Statement of Financial Activities 16
Consolidated Balance Sheet 17 - 18
Charity Balance Sheet 19 - 20
Consolidated Statement of Cash Flows 21
Notes to the Financial Statements 22 - 43

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Board of Trustees ("the Board") has pleasure in presenting its annual report together with the audited financial statements for the Trust for the year ended 31 March 2022. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the group and the Charity qualify as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Our Vision

An aerospace industrial museum and learning centre that inspires and entertains today’s and future generations through the stories and achievements of Bristol’s aerospace industry - past, present and future.

Reference and administrative details of the Charity, its trustees and advisers

Trustees I Gray CBE, Chair
J Body CBE, Vice Chair
R Pettit, Secretary
A Gregg
L Brodie
P Craig
J Finch
J D Heron (resigned 16 December 2021)
N Philippidis
M Sanders
S Smith
L Burnell (appointed 4 May 2021, resigned 13 May 2022)
S Cordwell (appointed 13 May 2022)
Company registered
number
02689238
Charity registered
number
1010632
Registered office
Aerospace Bristol
Hayes Way
Patchway
Bristol
BS34 5BZ
Patron
HRH The Princess Royal
Vice Patrons
Sir George White Bt.
Mr. Jack Lopresti MP

Page 1

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Independent auditors

Bankers

Randall & Payne LLP Shurdington Road Cheltenham Gloucestershire GL51 4GA

Lloyds Bank Canons House Canons Way Bristol BS99 7LB

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BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Objectives and activities

a. Policies and objectives

The Trustees have had due regard, as required by the Charities Act 2011, to the Charity Commission's general guidance on public benefit when reviewing its aims and objectives and in planning its activities.The Objects of the Trust, as stated in its Memorandum of Association are:

1) To advance public education in all matters concerning aircraft and the aircraft and aerospace industries, in particular by the provision of a museum for the public display, restoration and conservation of aircraft, flying boats, missiles, rockets, satellites, other flying aerial or space devices or machines and the component parts of them and drawings or archives and other products of, or relating to the aircraft and aerospace industries; and

2) To promote or undertake research into the history of aircraft design manufacture and operation including the history of the persons and companies involved in these activities and to publish and disseminate the useful results of that research.

The specific public benefits that flow from our Vision and Objects are:

Achievements and performance

a. Main achievements of the Charity

Following a very difficult year, with a significant part of 2020 seeing the museum closed to visitors, the Trust applied for and was awarded a further £358,000 in April 2021 from round two of the Culture Recovery Fund and, to support the museum through its post-opening recovery, an additional £233,000 from round-three was awarded in October 2021.

Aerospace Bristol was able to reopen to the public on 19 May 2021, initially operating five days a week, rising to seven days a week during school holidays. Through the rest of the year, visitor numbers were encouraging, building slowly to approximately 65% of pre-Covid levels in 2019. School bookings improved for autumn 2021 and the Trust is encouraged by the projected return of its group travel and events business.

The museum was awarded Arts Council England Accreditation in January 2022. Accreditation is a fantastic achievement, which recognises the high standard of care we give our collections, visitors, historic site and staff. It provides an important framework to support ongoing development and future planning, as well as increasing our access to funding streams and other support.

The museum has welcomed back school visitors in ever increasing numbers and by March 2022 we were averaging numbers in line with what we saw before the pandemic. We successfully introduced two new workshops exploring the use of telescopes in understanding the universe both of which have proved popular and have encouraged an increased number of A Level groups to book workshops as a part of their visit.

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BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (continued)

Over the summer holiday of 2021, thanks to the support of the Nisbet Trust we were able to continue our offer of free STEAM Club activity sessions for low income families from across Bristol.

Thanks to the grant provided by the Weston Culture Fund, we were able to create and publish the first edition of the Aerospace Bristol guidebook.

We were also able to produce a children’s activity book featuring our museum mascots Alfie and Amelia Fox, adding to our offer for our younger visitors. Both books were written in house and the children’s book was designed by the in house team.

Throughout this year we continued to work with New Icon to improve and develop the children’s App to help our younger visitors explore the museum in a fun and engaging way.

We have also worked with the RNIB and a visually impaired consultant to begin the development of an audio tour to improve accessibility for visually impaired visitors.

Working with the South Gloucestershire Museums Group and Avon Indian Community Group, the Trust developed an oral history project and travelling exhibition. This is part of the Trust’s continued aims to strengthen links with BAME communities and expand representation in the collections and exhibitions. The exhibition launched at Aerospace Bristol in April 2022 with a launch event to celebrate the work of the participants and allow them to share the exhibition with their families and local community leaders. The launch was a huge success, with wonderful feedback from members of the Indian community. The exhibition, which is now on tour around South Gloucestershire, received praise and positive feedback from many visitors and museum staff with Indian and BAME heritage and they looked forward to seeing more exhibits highlighting our diverse community.

The Conservation in Action Workshop, made possible by Biffa Award, officially opened in July 2021 by HRH The Princess Royal and has continued to transform the visitor offer on site. Housed in restored Grade II listed Hangar 16M, visitors are able to view conservation in action and engage with knowledgeable volunteers. The hangar also provides learning and community spaces, collections storage and care areas, and new offices. This year we have completed a successful pilot series of ‘Makers Workshops’, teaching practical skills for local community members, promoting wellbeing and new connections.

Along with a Bristol Bolingbroke and Bristol Freighter, a Bristol Fighter with many original elements, is also on display in the workshop following its return from the USA in October 2020.

We have hosted several young apprentices in the workshop already, with great success. The arrangement allowed the apprentices to gain practical experience while working alongside our trained volunteers.

We are grateful to those individuals and Trusts and Foundations who have generously supported the Conservation in Action Workshop and conservation programme post-opening, including the John James Bristol Foundation and The Hobson Charity. We will continue to raise funds to support conservation and learning activities in the workshop, welcoming more young people on work experience and inspiring the next generation of engineers.

During October 2021 we marked the 50th anniversary of the launch of Prospero. Designed and built at Filton, it was the first British satellite to be launched by a British rocket, ‘Black Arrow’. Alongside a temporary exhibition and onsite talks, we also participated in a conference held by the British Interplanetary Society.

We were able to reopen the reading room to visitors in June 2021, at a reduced capacity because of covid restrictions. We hosted 30 research visits, alongside offering regular access for staff and volunteers. The monthly ‘Out of the Archive’, series has offered museum visitors the chance to engage with archive material up close.

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BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (continued)

In June 2021, the museum successfully launched a new on-line shop and transitioned to Shopify, a more efficient and reliable than the previous system. The online shop also gives visitors the option to pre-order items online and then collect them when they visit. This presents opportunities for us to promote relevant retail products (such as guide books) to visitors in advance of their visit. The launch of the shop resulted in c.£6k of sales in the financial year to March 2022, with the majority of sales in December. There is a clear opportunity to grow online shop revenue as more marketing and product ranges come online, particularly around the key Christmas period.

During the year, the museum also received a number of prestigious awards: Best Museum or Gallery in the Group Leisure & Travel Awards; Best Museum Visit in the School Travel Awards and TripAdvisor’s Travellers’ Choice Award, which places the museum in the top 10% of attractions on the global TripAdvisor platform.

The annual Visit England Assessment highlights Aerospace Bristol’s excellence in its engaging interactives & museum galleries, as well as our friendly & knowledgeable workforce and continued commitment to providing a first class visitor experience. Despite challenges of Covid, in 2021 Aerospace Bristol achieved a quality scoring of 90% a 7% improvement on 2019. In addition to high score for our staff & volunteers, exceptionally high-scored areas were aspects before the ticket barrier & are accessible to members of our local community. This includes our large café (awarded the Quality Food & Drink accolade) & gift shop. Aerospace Bristol has continued to collect very positive visitor feedback through visitor surveys, Trip Advisor (Traveller’s Choice Award in 2021 putting museum in the top 10% of visitor attractions), Google reviews & all social media platforms.

Staff at the museum are pleased to exchange their knowledge and contribute to the wider community through the DETI (Digital Engineering Technology and Innovation) programme; Inspire Advisory Group (a project led by UWE); Bristol Heritage Education Forum; Bristol Cultural Education Partnership; ABTEM (Association of British Transport and Engineering Museums) and the Aviation and Aerospace Archives Initiative. Specifically, staff members chair the South Gloucestershire Museums Group and sit on the executive committee of Aviation Heritage UK.

The Trust is very grateful for the hard work, commitment and loyalty of its staff and volunteers during what has been an exceptionally challenging time. There is a continuing process of recruiting new volunteers and a drive towards increasing diversity, with some 170 volunteers currently contributing to the work of the Trust.

The Trust thanks all its members, individual donors, government-backed funders, companies and grant–giving Trusts and Foundations that have supported the museum throughout the year and allowed it to survive and thrive into the future.

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BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (continued)

b. Fundraising activities and income generation

Aerospace Bristol has a small full-time professional fundraising team and does not outsource any fundraising nor rely on external expertise.

The Trust is registered with the Fundraising Regulator for which the voluntary levy is paid. Fundraising activity adheres to the Fundraising Code relating to ethical matters, fundraising standards and best practice. The Trust has received no complaints through the Fundraising Preference Service.

Members of the Development team are individually registered with the Institute of Fundraising (IoF) . The Development Manager has completed a Fundraising Diploma with the IOF and ensures that the museum’s Fundraising activity adheres to the Code of Fundraising Practice. This sets the legal requirements, policies and systems which apply to UK fundraising activity. The Trust has a data protection policy and complies with the General Data Protection Regulations (GDPR). The Trust will continue to refer to all the relevant professional and statutory bodies for guidance and regulation developments on both fundraising and GDPR.

The Trust works hard to ensure that money is managed responsibly and that a good reputation is maintained by being transparent and trustworthy. Feedback is welcomed from donors, supporters and others who are approached for funds and is always taken seriously, serving to develop and improve activities and communications.

The Trust takes very seriously its responsibility towards supporters who may be considered to be in vulnerable circumstances. In line with being a Dementia Friendly Organisation, the Trust will carefully consider donations given by vulnerable adults and when appropriate consider the return of the donation. The fundraising team will comply with the donations policy which has been approved by the Board of Trustees.

The Trust is a company limited by guarantee, incorporated on 19 February 1992 with number 02689238 and registered as a charity on 24 April 1992 with number 1010632.

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BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Financial review

a. Going concern

Since the 2021 financial year end, discussions and negotiations have been successfully completed to provide the following new financial arrangements:

The Trust’s need for the above financial facilities is the result of a shortfall in funding for capital expenditure incurred in the implementation period prior to the opening of the museum in October 2017. This creates a level of uncertainty as the free fund is in deficit, and part of the deficit has to be funded by way of an overdraft facility. Legally an overdraft facility can be withdrawn at short notice even though a new facility has been granted until 30th November 2022 and is secured by BAE Systems’ guarantee.

The Trustees believe that the accounts should continue to be prepared on a “going concern” basis as:

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BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

b. Principal risks and uncertainties

The Executive Management Committee, Audit Committee, and Board of Trustees monitor the risk management plan on a regular basis. The Audit Committee is specifically responsible for regularly reviewing the risks that the Trust may face, and for ensuring that there are adequate procedures to manage the identified risks. The main risks faced by the Trust are:

It is the policy of the Board to hold insurance on its collection of artefacts and archival material on the basis of the possible repair and restoration costs and/or alternative replacement costs, but not the like-for-like replacement cost that may be incurred, as most of the collection is unique and irreplaceable. Items under loan are insured for costs prescribed under the terms of loan agreement.

Structure, governance and management

a. Constitution

The Trust is a company limited by guarantee, incorporated on 19 February 1992 with number 02689238 and registered as a charity on 24 April 1992 with number 1010632.

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BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

b. Organisational structure and decision-making policies

New Articles of Association were adopted in May 2018 to bring them into line with current legislation and best practice, and to provide a suitable corporate governance framework for the future. Members of the Trust are required to renew annually and a register of members is maintained by the Trust.

The Board met formally 12 times during the financial year to review and manage the Trust’s financial position during the Covid pandemic and continues to meet monthly.The Board is responsible for policy, setting strategic objectives and the overall direction of the Trust.

The Trust’s Nominations and Governance Committee remains engaged in a review process to ensure that the Board has the necessary skills, experience and diversity to successfully direct and manage the charity into the future. There is a continual process of improvement in the governance of the charity, with the planned introduction of a Code of Conduct for Trustees, and new Trustees recruited through public advertisement.

The Trust’s Audit Committee meets regularly and has responsibility for reviewing, monitoring and reporting to the Board on financial performance, budgets and forecasts, policies and procedures, risk management, internal controls, external audit and the Annual Accounts.

An Executive Management Team, headed by an Executive Director, is responsible for the day-to-day operational management of the Trust’s activities.

The Board and its Management are supported by a Heritage & Collections Advisory Group and a Learning Futures Advisory Group which operate under formal terms of reference and are chaired by experienced Trustees.

Annual accounts are prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Trust's Memorandum and Articles of Association, the Companies Act 2006 and the Statement of Recommended Practice, 'Accounting and Reporting by Charities' (FRS 102 SORP)

Page 9

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Plans for future periods

The Trust’s new Forward Plan sets out its strategic goals and plan of action for the period until 2024 in order to achieve its charitable purposes and maintain its financial sustainability.

To successfully, sustainably and safely operate a nationally-recognised and fully accredited museum

Highly prudent financial management will continue to be critical as the Trustees consider that the effects of the pandemic will continue to be felt throughout 2022, with operations not returning to full or near pre-Covid levels until 2023.

The Trust will aim to

To advance learning, training and skills particularly history and heritage, and in science, technology and engineering, its past, present and future applications

The Trust will build on its learning and outreach programmes, developing its partnership with local universities, colleges, schools, industry and community organisations. The museum will aim to offer many more volunteering opportunities, especially for young people as a means of providing pathways into training and employment and engage with hard to reach audiences.

The Trust will aim to:

To conserve heritage and enhance the collections for present and future generation to experience, appreciate and enjoy

The Trust will continue the major review of its reserve collection, digitise and catalogue the museum’s nationallysignificant archive and make our collections increasingly accessible to the public.

The Trust will aim to:

Page 10

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditors

The auditors, Randall & Payne LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................

N Philippidis Trustee Date: 21 November 2022

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BRISTOL AERO COLLECTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRISTOL AERO COLLECTION TRUST

Opinion

We have audited the financial statements of Bristol Aero Collection Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to note 1.2 in the financial statements, which indicates that there is a material uncertainty in respect of going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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BRISTOL AERO COLLECTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRISTOL AERO COLLECTION TRUST (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 13

BRISTOL AERO COLLECTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRISTOL AERO COLLECTION TRUST (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our audit planning process gave consideration to the risk of material misstatement in the financial statements, using the calculated materiality level which itself factored in the nature of the Charity’s operations and the interpreted levels of inherent and control risk.

In assessing the risk of fraud we reviewed management’s own assessment of potential for fraud within the entity and reviewed judgements made by management to identify possible bias, in addition to any opportunity and incentive for fraud that are in inherent in the nature of the Charity’s operations. Our detailed testing included review of accounting estimates and judgements and validation of prime ledger entries.

We confirmed our knowledge of the legal and regulatory environment of the entity through discussions with management. We analysed all information available to us in respect of relevant laws and regulations, including the Companies Act 2006, Charities Act 2011 and relevant UK tax legislation and enquired with management as to any possible breached in the aforementioned.

We agreed the accuracy of the financial statements to the supporting management information provided by the client and tested individually on a sample basis the income and expenditure in the financial statements to consider the business rationale behind the transactions and the accuracy of the financial records.

Our audit testing did not identify any issues in respect of the matters listed above, including fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

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BRISTOL AERO COLLECTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRISTOL AERO COLLECTION TRUST (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Ryan Moore, CA (Senior Statutory Auditor) for and on behalf of Randall & Payne LLP Shurdington Road Cheltenham Gloucestershire GL51 4GA

Date:

Page 15

BRISTOL AERO COLLECTION TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note
Income from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
6
Total expenditure
Net (expenditure)/income
Transfers between funds
19
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2022
£
92,572
-
-
92,572
3,900
118,653
122,553
(29,981)
(287,248)
(317,229)
439,110
(317,229)
121,881		 Unrestricted
funds
2022
£
1,020,028
564,621
535,249
2,119,898
415,285
1,845,775
2,261,060
(141,162)
287,248
146,086
14,314,316
146,086
14,460,402		 Total
funds
2022
£
1,112,600
564,621
535,249
2,212,470
419,185
1,964,428
2,383,613
(171,143)
-
(171,143)
14,753,426
(171,143)
14,582,283		 Total
funds
2021
£
2,083,303
207,588
44,314
2,335,205
181,566
1,874,901
2,056,467
278,738
-
278,738
14,474,688
278,738
14,753,426

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 22 to 43 form part of these financial statements.

Page 16

BRISTOL AERO COLLECTION TRUST REGISTERED NUMBER: 02689238

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022

Note
Fixed assets
Tangible assets
11
Heritage assets
12
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
19
Unrestricted funds
19
Total funds		 41,496
569,368
524,973
1,135,837
(2,284,549)		 2022
£
16,426,836
234,992
16,661,828
(1,148,712)
15,513,116
(930,833)
14,582,283
14,582,283
121,882
14,460,401
14,582,283		 62,005
194,940
372,663
629,608
(1,659,935)		 2021
£
16,490,429
234,991
16,725,420
(1,030,327)
15,695,093
(941,667)
14,753,426
14,753,426
439,110
14,314,316
14,753,426

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

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BRISTOL AERO COLLECTION TRUST REGISTERED NUMBER: 02689238

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022

................................................

N Philippidis

Trustee Date: 21 November 2022

The notes on pages 22 to 43 form part of these financial statements.

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BRISTOL AERO COLLECTION TRUST REGISTERED NUMBER: 02689238

CHARITY BALANCE SHEET AS AT 31 MARCH 2022

Note
Fixed assets
Tangible assets
11
Heritage assets
12
Investments
13
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
19
Unrestricted funds
19
Total funds		 536,287
254,445
790,732
(1,975,498)		 2022
£
16,422,786
234,992
1
16,657,779
(1,184,766)
15,473,013
(930,833)
14,542,180
14,542,180
121,882
14,420,298
14,542,180		 271,991
290,476
562,467
(1,590,235)		 2021
£
16,487,023
234,991
1
16,722,015
(1,027,768)
15,694,247
(941,667)
14,752,580
14,752,580
439,110
14,313,470
14,752,580

The Charity's net movement in funds for the year was £ (210,399) (2021 - £280,762) .

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Page 19

BRISTOL AERO COLLECTION TRUST REGISTERED NUMBER: 02689238

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022

................................................

N Philippidis

Trustee Date: 21 November 2022

The notes on pages 22 to 43 form part of these financial statements.

Page 20

BRISTOL AERO COLLECTION TRUST

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Decrease in capital debtors
Incoming capital grants (per SoFA)
Increase/(decrease) in fixed asset creditors
Net cash used in investing activities
Cash flows from financing activities
Increase/(repaid) on bank overdraft
Incerease / (repayments) of borrowing
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2022
£
247,746
(311,977)
-
-
-
(311,977)
86,474
130,067
216,541
152,310
372,663
524,973		 2021
£
404,467
(360,641)
140,120
392,242
(261,450)
(89,729)
97,232
(96,734)
498
315,236
57,427
372,663

The notes on pages 22 to 43 form part of these financial statements

Page 21

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Bristol Aero Collection Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

1.2 Going concern

The Trustees believe the Charity is a going concern and the financial statements have been prepared on this basis.

The overdraft facility has been renewed for a further year until 30 November 2023 and is guaranteed by BAE Systems. The £1m loan capital and interest repayments to South Gloucestershire Council were deferred initially until March 2022 and the Trust has since agreed the repayment profile on this loan, with £50,000 (reduced from £100,000) repayable in the next 12 months.

Following the pandemic and since re-opening the museum in May 2021, visitor admissions have been steady, school and group bookings are encouraging and there has been a positive return of the museum's events and hospitality business. Despite the potential threat of reduced consumer and business confidence and the impact of the current economic uncertainty, it is expected that overall income levels will soon reutrn to near pre-pandemic levels, coupled with reduced operating costs which have been driven over the last eighteen months.

In the last 18 months, the Trust has been successful in obtaining a number of funding grants. The monies recieved are being, and will be, carefully monitored by the Trust's Finance team to ensure that they are used in the best way possible to ensure the Trust remains a going concern.

Based on the above and positive results from our 2023/24 forecasts, the financial statements are prepared on the assumption that the entity is a going concern.

However, the Trustees recognise that the recovery profile of the Trust is likely to be longer than initially anticipated, with economic uncertainty, the cost of living crisis and the rising costs of running the museum potentially impacting the volume of admissions and surplus forecasted. These factors are impacting the entire sector and are not unique to the Trust. As at 31 March 2022, the Trust has negative free funds of £2.2m and accordingly, the Trustees recognise that there remains a material uncertainty in respect of going concern.

Page 22

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

1.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 23

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.5 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

The lease of the site is for 150 years ending December 2166. Leasehold land and buildings are reviewed annually by the Trustees for any indication of impairment.

Only assets costing more than £1,000 are capitalised.

1.6 Heritage assets

Where heritage assets have been acquired and there are records available, these are recognised at cost together with direct restoration costs. Where no such records are available, the heritage assets are not recognised on the balance sheet on the grounds that the cost of obtaining this information would outweigh the benefit in doing so.

The heritage assets acquired are considered to have indefinite lives by the Trustees and therefore are not depreciated. Annually at the reporting date, the heritage assets are reviewed by the Trustees for indications of impairment.

Conservation costs are written off each year as an expense.

1.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

Investments in subsidiaries are valued at cost less provision for impairment.

1.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 24

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

1.12 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.13 Pensions

1.14 Fund accounting

General funds (free funds) are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 25

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Income from donations and legacies

Donations and grants
Sponsorship
Donations in kind		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
92,572
941,354
-
78,674
-
-
92,572
1,020,028		 Total
funds
2022
£
1,033,926
78,674
-
1,112,600		 Total
funds
2021
£
1,740,303
100,000
243,000
2,083,303

3. Income from charitable activities

Unrestricted
funds
2022
£
Visitor admissions
561,443
Filming
3,178
Total 2022
564,621
4.
Income from other trading activities
Income from fundraising events		 Total
funds
2022
£
561,443
3,178
564,621		 Total
funds
2021
£
204,638
2,950
207,588
Unrestricted
funds
2022
£
Fundraising events
250
Trust incidental trading
34,954
Management charge - BAC Trading Ltd
145,258
Other - Miscellaneous Income
5,000
BAC Trading Limited
495,045
Inter-group activity
(145,258)
Total 2022
535,249		 Total
funds
2022
£
250
34,954
145,258
5,000
495,045
(145,258)
535,249		 Total
funds
2021
£
80
7,538
6,643
24
36,672
(6,643)
44,314

Page 26

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

4. Income from other trading activities (continued)

Income from fundraising events (continued)

The Trust's commercial operations are carried out through its trading subsidiary, BAC Trading Limited. During the year BAC Trading Limited had sales of £495,045 (2021: £36,672). The principal activity of the company is to carry out events, retail and catering activities at the museum, Aerospace Bristol.

5. Expenditure on raising funds

Costs of raising voluntary income

Cost of generating donated income
Costs of raising voluntary income - wages and
salaries
Costs of raising voluntary income - NI
Costs of raising voluntary income - pension
costs		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
3,900
37,010
-
61,381
-
5,153
-
1,210
3,900
104,754		 Total
funds
2022
£
40,910
61,381
5,153
1,210
108,654		 Total
funds
2021
£
66,762
75,010
6,192
1,550
149,514

Other trading expenses

Unrestricted
funds
2022
£
Cost of sales - operatios of BAC Trading Limited
455,789
Intergroup activity
(145,258)
310,531		 Total
funds
2022
£
455,789
(145,258)
310,531		 Total
funds
2021
£
38,695
(6,643)
32,052

Page 27

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

6. Analysis of expenditure on charitable activities

Summary by fund type

Visitor services
Learning and volunteering
Museum facilities management and
development costs
Collection conservation and management
Governance costs		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
54,915
467,198
5,386
129,982
48,170
1,054,957
10,182
193,638
-
-
118,653
1,845,775		 Total
2022
£
522,113
135,368
1,103,127
203,820
-
1,964,428		 Total
2021
£
627,736
163,876
843,960
228,473
10,856
1,874,901

7. Analysis of expenditure by activities

Visitor services
Learning and volunteering
Museum and facilities management and
development costs
Collection conservation and management
Governance costs		 Activities
undertaken
directly
2022
£
270,978
72,626
593,929
109,350
-
1,046,883		 Support
costs
2022
£
251,136
62,742
509,198
94,469
-
917,545		 Total
funds
2022
£
522,114
135,368
1,103,127
203,819
-
1,964,428		 Total
funds
2021
£
627,736
163,876
843,960
228,473
10,856
1,874,901

Page 28

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Other direct costs		 Visitor
services
2022
£
242,758
28,220
270,978		 Learning and
volunteering
2022
£
71,668
958
72,626		 Museum and
facilities
management and
developent costs
2022
£
144,933
448,996
593,929		 Collection
conservation and
management
2022
£
99,100
10,251
109,351		 Total
funds
2022
£
558,459
488,425
1,046,884

Prior year analysis of Direct Costs

Total staff costs for 2021 were £571,231 Other direct costs for 2021 were £217,224

Analysis of support costs

Staff costs
Other support
costs
Governance
costs		 Visitor
services
2022
£
73,374
161,758
16,004
251,136		 Learning and
volunteering
2022
£
19,580
43,162
-
62,742		 Museum and
facilities
management and
development costs
2022
£
160,116
349,082
-
509,198		 Collection
conservation and
management
2022
£
29,480
64,989
-
94,469		 Total
funds
2022
£
282,550
618,991
16,004
917,545

Prior year analysis of Support Costs

Total staff costs for 2021 were £276,071 Other direct costs for 2021 were £799,519 Governance costs for 2021 were £10,856

Page 29

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

8. Auditors' remuneration

2022 2021
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts (all services) 15,664 10,856
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above 4,455 8,025

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2022
£
830,209
63,501
15,045
908,755		 Group
2021
£
855,159
60,234
14,661
930,054		 Charity
2022
£
830,209
63,501
15,045
908,755		 Charity
2021
£
855,159
60,234
14,661
930,054

No redundancy payments were made during the year ended 31 March 2022 (2021: £11,548 relating to 3 employees). All amounts were recognised within expenditure during the year with no amounts outstanding at the year end.

The average number of persons employed by the Charity during the year was as follows:

Group Group
2022 2021
No. No.
Employees 48 58

The average number of employees (headcount) during the year was 48 (2021 - 58). The employees of te Group are employed by the Charity, a charge of employee time that is utilised by the trading subsidiary is invoiced to BAC Trading Limted as a management charge.

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2022 2021
No. No.
In the band £70,001 - £80,000 1 1

The total aggregate employment benefits, including employer pension costs and employer's national insurance contributions, received by key management personnel were £359,561 (2021 - £335,312)

Page 30

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

10. Trustees' remuneration and expenses

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity for their work as Trustees. However, the Executive Director, Lloyd Burnell, who was also a Trustee during the year, did receive remuneration and out of pocket expenses in fulfilling his full time management role. Remuneration of a Trustee is permitted under the governing document and with an order from the Charity Commission. The value of Trustees' remuneration and other benefits was as follows:

2022 2021
£ £
L Burnell Remuneration 78,060 79,845
Pension contributions paid 1,320 1,313

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL) .

Page 31

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

11. Tangible fixed assets

Group

Cost or valuation
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Long-term
leasehold
property
£
13,602,825
211,864
13,814,689
303,937
91,408
395,345
13,419,344
13,298,888		 Plant and
machinery
£
34,776
-
34,776
16,764
4,968
21,732
13,044
18,012		 Fixtures and
fittings
£
684,563
6,785
691,348
358,419
98,024
456,443
234,905
326,144		 Office
equipment
£
1,011
-
1,011
433
144
577
434
578		 Computer
equipment
£
50,887
93,328
144,215
19,665
10,432
30,097
114,118
31,222		 Other fixed
assets
£
3,411,847
-
3,411,847
596,263
170,592
766,855
2,644,992
2,815,585		 Total
£
17,785,909
311,977
18,097,886
1,295,481
375,568
1,671,049
16,426,837
16,490,429

Page 32

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

11. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Long-term
leasehold
property
£
13,602,825
211,864
13,814,689
303,937
91,408
395,345
13,419,344
13,298,888		 Plant and
machinery
£
34,776
-
34,776
16,764
4,968
21,732
13,044
18,012		 Fixtures and
fittings
£
681,068
5,385
686,453
357,296
97,425
454,721
231,732
323,772		 Office
equipment
£
1,011
-
1,011
433
144
577
434
578		 Computer
equipment
£
49,801
93,328
143,129
19,613
10,277
29,890
113,239
30,188		 Other fixed
assets
£
3,411,847
-
3,411,847
596,263
170,592
766,855
2,644,992
2,815,585		 Total
£
17,781,328
310,577
18,091,905
1,294,306
374,814
1,669,120
16,422,785
16,487,023

Page 33

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

11. Tangible fixed assets (continued)

Charity (continued)

The National Heritage Memorial Fund has a £4,682,000 legal charge over the assets in the event of a sale. See note 20 for additional details.

South Gloucestershire Council has a £1 million floating legal charge over the assets of the Trust in relation to their outstanding loan.

12. Heritage assets

Group and Charity

Assets recognised at cost

Heritage assets Total 2022 2022 £ £ Carrying value at 1 April 2021 and 31 March 2022 234,992 234,992 234,992 234,992

Page 34

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13. Fixed asset investments

Charity
Cost or valuation
At 1 April 2021
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Investments
in
subsidiary
companies
£
1
1
1
1

Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name Country Principal activity Class of Holding
shares
BAC Trading Limited England and To carry out retail, Ordinary 100%
Wales events and catering
activities within
facilities provided by
Bristol Aero Collection
Trust.

The financial results of the subsidiary for the year were:

Name Income Expenditure Profit/(Loss) Net assets
£ £ for the year £
£
BAC Trading Limited 495,046 455,788 39,258 40,104

Page 35

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

14. Stocks

Finished goods and goods for resale
15.
Debtors
Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Gift aid recoverable		 Group
2022
£
106,041
-
339,385
123,942
-
569,368		 Group
2021
£
13,343
-
20,284
161,300
13
194,940		 Group
2022
£
41,496
Charity
2022
£
91,022
-
333,972
111,293
-
536,287		 Group
2021
£
62,005
Charity
2021
£
11,854
93,145
6,052
160,927
13
271,991

16. Creditors: Amounts falling due within one year

Group
2022
£
Bank overdrafts
1,196,460
Covid 19 'Bounce Back' loan
10,000
Council loan
50,000
Trade creditors
257,424
Other taxation and social security
341,760
Other creditors
93,658
Accruals and deferred income
335,247
2,284,549
17.
Creditors: Amounts falling due after more than one year
Group
2022
£
Covid 19 'Bounce Back' loan
30,833		 Group
2021
£
1,109,986
8,333
-
166
14,077
340,766
186,607
1,659,935
Group
2021
£
41,667		 Charity
2022
£
1,196,460
10,000
50,000
171,457
341,760
93,659
112,162
1,975,498
Charity
2022
£
30,833		 Charity
2021
£
1,109,986
8,333
-
-
14,077
340,766
117,073
1,590,235
Charity
2021
£
41,667

Page 36

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

17. Creditors: Amounts falling due after more than one year (continued)

Council loan Group
2022
£
900,000
930,833		 Group
2021
£
900,000
941,667		 Charity
2022
£
900,000
930,833		 Charity
2021
£
900,000
941,667

A bank loan with capital totalling £1,000,000 from Lloyds Bank was due for repayments on 30 April 2019 but was converted to an overdraft by the bank. The overdraft is guaranteed by BAE Systems who have an indemnity agreement with the Charity. This facility is extended until 30 November 2023 and, as an overdraft, is repayable on demand. The total facility available as at 31 March 2022 is £1,350,000.

The council loan from South Gloucestershire Council is secured by a floating legal charge on the Charity's assets and was due for repayment on 30 March 2019. The the year the loan was renegotiated and interest repayments have commenced.

18. Financial instruments

Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
Financial assets
Financial assets measured at fair value
through income and expenditure 524,973 372,663 254,445 290,476

Financial assets measured at fair value through income and expenditure comprise cash at bank and in hand.

Page 37

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

19. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Fixed asset fund
General funds
General Funds
Share capital
Reserves (BAC Trading
Limited)
Total Unrestricted funds
Restricted funds
Aerospace Bristol fund
Restoration fund
Physcial and Digital
Infrastructure fund
Other restricted funds
Total of funds		 Balance at 1
April 2021
£
16,722,015
(2,408,546)
1
846
(2,407,699)
14,314,316
132,660
22,083
244,000
40,367
439,110
14,753,426		 Income
£
-
1,624,851
-
495,046
2,119,897
2,119,897
-
-
-
92,572
92,572
2,212,469		 Expenditure
£
(374,814)
(1,430,458)
-
(455,788)
(1,886,246)
(2,261,060)
(10,128)
(2,795)
(50,685)
(58,944)
(122,552)
(2,383,612)		 Transfers
in/out
£
310,576
(23,328)
-
-
(23,328)
287,248
(97,805)
-
(174,513)
(14,930)
(287,248)
-		 Balance at
31 March
2022
£
16,657,777
(2,237,481)
1
40,104
(2,197,376)
14,460,401
24,727
19,288
18,802
59,065
121,882
14,582,283

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BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Fixed asset fund
General funds
General Funds
BAC Trading Limited Funds
Total Unrestricted funds
Restricted funds
Aerospace Bristol fund
Restoration fund
Physcial and Digital
Infrastructure fund
Other restricted funds
Total of funds		 Balance at
1 April 2020
£
16,732,206
(2,628,660)
2,874
(2,625,786)
14,106,420
341,591
22,083
-
4,600
368,274
14,474,694		 Income
£
-
1,870,353
36,671
1,907,024
1,907,024
148,242
-
244,000
42,580
434,822
2,341,846		 Expenditure
£
(369,747)
(1,647,858)
(38,696)
(1,686,554)
(2,056,301)
-
-
-
(6,813)
(6,813)
(2,063,114)		 Transfers
in/out
£
359,555
(2,382)
-
(2,382)
357,173
(357,173)
-
-
-
(357,173)
-		 Balance at
31 March
2021
£
16,722,014
(2,408,547)
849
(2,407,698)
14,314,316
132,660
22,083
244,000
40,367
439,110
14,753,426

20. Summary of funds

Page 39

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Summary of funds (continued)

Summary of funds - current year

Designated funds
General funds
Restricted funds		 Balance at 1
April 2021
£
16,722,015
(2,407,699)
439,110
14,753,426		 Income
£
-
2,119,897
92,572
2,212,469		 Expenditure
£
(374,814)
(1,886,246)
(122,552)
(2,383,612)		 Transfers
in/out
£
310,576
(23,328)
(287,248)
-		 Balance at
31 March
2022
£
16,657,777
(2,197,376)
121,882
14,582,283

Free funds (General Funds)

The free funds of the Charity are used in line with its purposes at the discretion of the Trustees. The free funds of the Charity are in deficit at the year-end. Usually the creation of a designated fund cannot result in a negative general funds position. However, the Trustees have chosen to show the net book value of the tangible fixed assets and heritage assets as a designated fund in order to clearly show the negative free reserves position of the Charity.

Fixed asset fund (Designated Funds)

This fund, designated by the Trustees, is set aside at the net book value of the charitable fixed assets and heritage assets.

Restricted Funds

Aerospace Bristol fund

The fund incorporates all the restricted funds received specifically relating to creating Aerospace Bristol less related overhead costs and capital transfers to the Fixed asset fund. The remaining restricted funds are held to complete outstanding building work relating to building 16M.

Restoration fund

Previously, individual funds were established for the restoration of a Bolingbroke aircraft, a Bristol Fighter F2B aircraft and additionally, in 2017, funds were established for the acquisition of the Bristol Freighter. The funds relating to the Bristol Fighter and Bristol Freighter were fully utilised in 2018 and prior years. This, therefore leaves funds specifically restricted for the restoration of the Bolingbroke aircraft.

Physical and Digital Infrastructure fund

This fund is to ensure that the charity can react and make critical adaptations to the museum space and digital infrastructure. It has enabled the charity to reopen the museum safely in May 2021 and restart its charitable activities with added breadth.

Other Restricted funds

This includes a number of grants received for specific short term projects and activities.

Page 40

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Summary of funds (continued)

Summary of funds - prior year

Designated funds
General funds
Restricted funds		 Balance at
1 April 2020
£
16,732,206
(2,625,786)
368,274
14,474,694		 Income
£
-
1,907,024
434,822
2,341,846		 Expenditure
£
(369,747)
(1,686,554)
(6,813)
(2,063,114)		 Transfers
in/out
£
359,555
(2,382)
(357,173)
-		 Balance at
31 March
2021
£
16,722,014
(2,407,698)
439,110
14,753,426

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Heritage assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
-
16,426,837
-
234,992
121,882
1,013,954
-
(2,284,549)
-
(930,833)
121,882
14,460,401		 Total
funds
2022
£
16,426,837
234,992
1,135,837
(2,284,549)
(930,833)
14,582,283

Page 41

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

21. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Heritage assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2021
£
-
-
439,110
-
-
439,110		 Unrestricted
funds
2021
£
16,490,429
234,991
190,498
(1,659,935)
(941,667)
14,314,316		 Total
funds
2021
£
16,490,429
234,991
629,608
(1,659,935)
(941,667)
14,753,426

22. Contingent liabilities

In the event of the sale of the property, the National Lottery Heritage Fund have the right to receive £4,682,000 for a period of 20 years from the completion and opening of the museum which occured in October 2017. No provision has been made in respect of the grant as the conditions are deemed unlikely to occur.

23. Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £15,045 (2021 - £14,661)

24. Operating lease commitments

At 31 March 2022 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2022
£
324
-
324		 Group
2021
£
2,547
681
3,228		 Charity
2022
£
324
-
324		 Charity
2021
£
2,547
681
3,228

Page 42

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

25. Related party transactions

BAC Trading Limited is the trading subsdiary of Bristol Aero Collection Trust. In the financial year ended 31 March 2022 BAC Trading Limited made a gift aid donation of £nil (2021 : £nil) to Bristol Aero Collection Trust. In addition to this, BAC Trading Limited paid management charges of £145,258 (2021: £6,643) to the Charity in respect of rent and overheads. At the year end, £nil was due to the Charity (2021: £85,173) from the subsidiary in respect of short-term intercompany loans. There were no other related party transactions other than those disclosed in the accounts.

Page 43