rtfll/lJ I REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2023 *ACFTFIYZ' 0711112023 CCWPANIES HOUSE A13 #170 Cockpit Arts (Limited by Guarantee) • Rew"stered Company NurT1￿r 02801969 • Registered Charity Number 1029643 CO(:41fi T Contents Page Reference and administrarive information Trustees, feport Independent auditorfs report 20 Statement of financial activities 23 Balance sheet 24 Ststement of cash flows 25 Note5 to the financial statements 26 Cockpit Arts (Limited by Guarantee) • Registered Company Number 02801969 • Registered Charity Number 1029643 COCKPtr ARTS REFERENCE ADMINISTIi4TIVE INFORMATION FOR THE PERIOD ENDED 31 MARCH 2023 ststus The organisatM)n is a charitable company limited by gu3rantee, incorporated on 19 March 1993 and registered as a charity on 2 De￿rnber 1993 in England and Wales. Goveming dcKument The company was established under a memorandum of a55OClation which established the objects and powers of the charitable company and is governed under its artrcles of associaiion. The original memorandum and articles of aswciation were replaced by special resolution on 10 December 2(M)9 by new articles of a551Xlation The articles of association were amended by special ie501uts.ons on 3 April 2019. on 16 Sep 2021 and on 22 Apr 2022. Company number 2801969 arity number 1029643 Registered offite and operational addre55es Cockpit Yard Northington Street London WCIN 2NP 18-22 Creekside Oeptford London SE8 3DZ Trustees Davina Mallinckrodt. (Chairl Pablo Lloyd (Deputy Chairl Bill Amberg Nishita Dewan Samuel Fry (Resigned ￿ptember 20221 Lee Gage Patricia Godfrey Clarissa Hulse Oavid Moore Mehul Naihwani Ben O'Neill (Resigned Juty 20231 Sarah Samuel Alisiair Scott (Resigned November 20221 Key management perS￿ne1 Annie Wèrburton, Chief Executive Hugo Godfrey. Financial Controller Fabienne O'Neill, Head of Operations David Crump. Head of Business Incubation Sandie Mattioli. Head of l)evelopment Bank Natwest Bank PIC PO Box 159. 332 HiBh Holborn. London WCIV 7P5 &)liat015 Russell Cooke 2 Putney Hill, London SW15 6A8. Auditor5 Haysmacintyre LLP lo Queen Street Plate Lon(knn EC4R IAG Cc£KP￿ ARTS TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2023 COCKPIT TRUSfEES' REPORT l April 2022- 31 March 2023 ABOUT COCKPIT~ Making a better world Cockpit is a centre of excellence rn contemporary craft. Bridging the gap between talent and opportunity. we equip emerging makers to succeed. creatively and commercially. Through funded workspa￿, training and careers support, we open pathway5 for new t31ent to glow thriving careers. Spanning every type of craft, Cockpit makers are united by their extraordinary skill and Imagination. For over 30 years. Cockpit has nurtured and supported craftspeople at the fragile early stages of their careers. Estsblished in 1986. we are the Uf5 lar8est, most dNerse cluster of makers and the country's only craft business incubator. In 2023, we were recognised. for the frfth consecutNe year. as one of the UK'S ICIJ top-performing social enterprises on the Natwest P￿neerS Post SEI(X) index 2023. Home to a community of 166 makers. practicing over 20 different crafts- from ceramics to fine jewellery. harhdweavin8 to bespoke tailorinE- we equip talented people with the tools to 5ucceed.' specialist studio space nd equipment, in-house business coaching and public showcase5. We work with hundreds fflore makers through careers programmes. outreach. training ènd consultancy in the UK 3nd internationally. Creativity, innovation and business success a￿ fuelled by dwersity. At Cockpit we foster an inclusive, 3mbilious culture where all aspects of diversity are seen as fundarnental to creative achievement. Reco8nising that talent is everywhere but opportunity is not. over three decade5 our fflission has been to break down and overcorne the economic and social barriers standing in the way of creatNe success. Each year we support 40 emerging pr3Ctitioners with awards and bursaries. offering free studio space for 12 months. professional development and trainin& and introductions to buyers and curators. Funded by City of London Livery Companies, trust5 and foundations. indmdual donors and corporate sponsors. these sought-after places provide a grounding for art15t1C success. Many artists. maker5 and designers who started out at Cockpit now enjoy a global reputation as leaders in their field. Cockpit is a destination for collectors, curators. stylists and interior ￿sIgnerS to spot new talent. We brin8 craftspeople's work to public audiences through showc35e5 and events. njn community outreach progr3mmes, and offer bespoke prograrnmes for schcx)Is. colleges and special Interest 8roups. As a social enterprise. we typically gener3te 80% of our income throu8h earned revenue. and raise the rest from patrons. trust5 and foundations. and sponsors_ (hjr annual impact report, The C(￿kPIt Effect, consistently demonstrates above 3verage economic and business outcomes for Cockpit makers. accompanied by rich social and cultural impact_ In 2022-3, we provided 2452 hours of support to 276 makers. generating a more than 3CK)% return on investment for the creatwe economy. A voice for making In all lis forms. Cockpit stands for the transformatNe power of craft to shape a better world. Craft brinES Ideas into reality. transforming raw materials into dazzling creations. We like to think we Shape things for the better irb just the same way.. with skill. Ca￿ and Imaginat￿n. C1XKP￿ ARTS TRUSTEES. REPORT FOR ThE PERIOD ENDED 31 MARCH 2023 OBJECTIVES AND AcfiviTIES Aims In accordance with our charitable objerts. Cockpivs aims a￿ ro.. Equip talented craftspeople with the space, training and 5UPPOrt to start and grow thriving businesses and 3rt15tic practices. Promote craft careers. training and educ3tion to protett the future of craft skills and open pathways for talent inro professional practice. Celebfate Jnd present contemporary craft and design to public audiences through exhibitions, publications, broadcasts and live events. ObjettNes In meetinE these aims, our objectives are to.. Provide subsiéised specialist studio space andlor equipment to craftspeople who would otherwise be unable to afford it. Offer creative, professional and business development coachine and training to enable maker5 to Set up and build successful practices and independent businesses. Reach and recruit makers from all backgrounds. dissolvin8 any barriers to accessing our services. Design Jnd host education and careers proBrammes to generate opportunities for children and young people to discover and develop craft skill5. Open Cockpit to specialist and public audiences as a place for discovering and learning about buyin& collecting, commissioning and experiencinB contempor3ry craft. Monitor and evaluate the Social, cultural and economic impact of our work and disseminate and share our findings with supporrers and peers. Operate as a sustainable. well-run and well-governed s(Kial enterprise. reinvesting any surpluses into delivering our charitable objects and social mission. Public Benefrt Cockpit pays due regard to the Charity Commission's public benefit guidance when reviewing our aims and objectives and in planning and making clecisions on our future activities. Th15 commitment to public benefit Is embedded in the charity's aims and objertwes and is evIder￿d in our attivities. including education an learning, community pro8rammes. public showcases. and our commitments to overcoming economic and social inequities in sustaining craft skills for the futu￿. COCKP￿ ARTS TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2023 Attivities April 2022- March 2023 Overview In 2022-23, Cockpit Erew our maker community to a record 166 buynesses. Of these. 40 makers We￿ supported by bursaries or Awards. In total. makers ￿CeiVed 2.4S2 hours of business and professional development support from our in-house team of specialists. an 19% increase compared to the previous 12 months We continued to expand delivery UK-wide through partnerships. supporting 276 makers in totsl, up 22% from last year. DLFring the year, we radically expanded our youth, careers and community programmes. reaching I,SC() In- person participants, including through delwery a5 partner in Lewisham's year as London Borough of Culture. Having secured capital funding to improve and extend our Deprford studios, capital works began in late 2022. This £3.24 mill￿n project will deliver additional studios. a new for-purpose wood hub, a welcomin8 new visitor entrance, a craft garden. and learning centre. The principal supporters and partners are STRIDE- Corporation of London, the Mayor of London's Good Growth Fund, and London Borough of Lewisham. Designed by Cooke Fawcett Architects. with landscaping by Seb3stian Cox Ltd., (he project will complete in autumn 2023. After making considerable investment in organisatKJnal development in 2020-22, thi5 year was one of consolidation. We upd3te¢J all policies and procedure5 ènd continued ro expand Duf use of digital tools to improve efficiency. We developed and implemented a comprehensrve new communications and marketing strategy. aimed at Erowing our profile and attracting lèrger. more diverse audiences for our work. Having set up a new committee structure in 2022, thi5 year we began a review process. using the Governance Code. We reaffirmed our active commitment io equity. diversity and inclusion. On the strength of our work in this area, we were commissioned to deliver a national pilot project to broaden entry routes and Improve prospects for rbew entrants into craft. Along with improving the environmental 5UStainability of our practices. equity. diversity and inclusion remains an underpinning theme running through all aspects of our work. MakerSupFrt Our missR)n is to overcome the financial and practical barriers standing in the way of (￿atIve success. In the face of rising Inflation this year our bursaries and Awards have nevei been more vital. especBlly for those in the fragile early stages of their tareer. Cockprt direct￿ subsidises these bu￿arleS We receive additional fundinE from City ol London Livery CompanEs. trusts. foundation5. individual donors and corporate partners. Wlthout whose Benerous support we could not offer these opportunities. During the year, we supported 40 practitionefs with bursaries and awards. These provide free or heavily sub5idi5ed Studio space for 12 months. profe55ional development and trainin& one-ro-one coaching, and introductions to buyers and curators. Some, including the Clothworkers. Award and Leatherse11e￿ Award, offer multi-year support. as well as studio equipment. io prowde as strong a ground os possible for creats've ancl commercial success. YheAwordis without ts doubt the only reoson l om oble to continue my work 05 o w(wen textile designer ond ortist. I would not be oble to offord o loom of my own. let olone the spoce orjd bLAsiness support. By bosing myself in o spoce with other business owners l om oble ro leorn ond growfrom their odvice and support." Lara Pain. Clothworkers, Awardee cC￿P￿ ARTS TRUSTEES. REPORT FOR THE PERIOD ENDED 31 MARCH 2023 We welcomed 22 new studio holders during the period. This brought U5 to our highest ever number of studio holders. 166 practitioners and maker businesses are now based at Cockpit Demand for studK) Space continued at a high level There were more than 7 applicants for every place offered. with 3 total of 166 applKations received during the year. "Hoving o Stud￿ spoce ot Cockpit hos been Ancredibleformy ortistic progress professionol bu5ines5 development. Having myown spoce to do work hos been hugely inspiring ond liberoting. I hGve olso become much more confident myproctice over the lost yeor. Since being or Cockpit my business hos gmwn greotty[...J. being in such o creorNe envimnment gove me a much moreprofessioncil opprooch to whot I wos doing ond elevated itfrom being o studentproject to being o recognised cruftspers0ft7.- Lulu Horrison. gloss moker Through our expanded business Incubation programme for makers UK-WiLle. we supported a total of 276 makers in the period. This is a 22% increase from the 227 supported in the previous 12 month5. Business Support DelNery During the 12 months to March 2023. our business incubation team delivered 93 training workshops and 541 one-to-one coaching se55ions. This was an increase of 19% compared with the previou5 12 months and represenrs a total 012,452 hours of busine55 SUPPOrt. All makers have access to a year-rovnd programme of professional developrnent and business development trainin& accompanied by one-to-one specialist coaching. This year. In addIt￿n io Make It Count, our standard busines5 incubation programme for awardees and new studio holders, our team developed and Introduced an advanced proBramme, Step It Up, fore5tablished makers_ -From the offset. my mindset chonged completely being ot Cockpit. The initiol serie5 of Moke It Count workshop5 tought me not only new woys to morrymy croft with o strategic business plan. but to toke skills l olreody hod ondfocu5 them to ochieve results. Being ot Cockpit ht7s openeddoor5 thot moy otherwise hove roken longerto open. It hos given credibility to my work thot 15 priceless. Not justfrom being ot Cockpit but olso becouse I work olong5ide Some of the fflost creotive. bright minds in the croft world." Cad Fo& marquetry artist. Beyond our core. In-house programmes, we reached makers based outside our studios in London and UK-wide, through partnerships with QEST. Clèft ￿O￿and. Yorkshire Artspa￿. UnNersity of the Arts London. and the British Council. hi5 Aword hos been o huge help to my developrnenttinso mony woys. Irhos helpedme let7m networking Skills. occounting, time m¢ynogement. how to set reolistic gools, even just smoll thAngs like how to work in 0 5horedenvironment or W0￿shoP sofety meosure5. Thi5 experience hos pushed me to o ploce where l in 50 much more confident in my proctice ond thot hos been rnosswefor me becouse I reolly needed help with thot when Ifirst got here.- Lilty Eris. stained glass artist cc(Kp￿ ARTS TRUSTEES. REPORT FOR THE PERIOD ENDED 31 MARCH 2023 Youth, Careers and Community Prc*drammes Our youth and careers programme aims to open up a broader range of routes into the creatwe industries and attract a larger and more dwerse intake of talent. Our cornmunity programmes bring the joy of craft to wider audiences. Including families, local people. and community groups. This year, we reached 1,450 chlldren. young people and community Participants throu8h careers day5. school and university visits to our studios. a partnership with Arts 4 Dementia, workshops io develop the new publ artwork for Cockpit Deptfofd. and London Borough of Culture 2022. Cockpit hosted the final CreatNe Challenge for Lewsham's London Bor¢)U8h of Cultvre programme 2022. Over 200 participants took part in 11 creaiive workshops, and our acts'vities reached a further 11,OtK) participants online. The project culminated in an insiall3tion created by artists Annika Cox and Alice Burnhope. Both artists are neufodivergent and the final installatK)n. 'Murmuration'. was created with neurodwergent akjdiences and participants in mind. achieved through changes to the lighting. inclusion of braille. wearable art pieces and soundscat*s. so in Lewi5ham. we h05led 3 further ten community and schcM)Is Wofkshops in print, weavin& marbling and drawing to Contribute to artist Amber Khokharfs final design for the Heud. Heort. Hond mural al Cockpit Deptford. "I work to supporr occe55for those living Wlth dementio. Usuolly with these types of workshops the members with dementio ieftd £0 be ouiie di5engoged. However. ¥vith the workshop5 todoy they reolly got stuck in, they understood what to do ondreolly enjoyedit. They were intrigued by the process ond genuinefyproud of the work they produced. There ore veryAew octivffties I ve seen thofve gornered such enthuSAosmfrorn our member5.~_ Attendee. Public Art Workshop In Bloomsbury. we ran open access workshops during our open stijdios events with local partners Knots Arts, Holborn Community Association Make and Mend. Kids Oub for the Tybald and 8ourne Estates. During the year. we also deliVe￿d a series workshops for individuals wrth dementia and their cafers, In partnership with Arts 4 Dementia. We were invited to join a consortium io deliverthe next two years of Discoverl Creotive Coreer5. the national coreeis initiative for the creative industries, backed by the Department for Culture, Media and Sport. Planning began In autumn 2022 and delivery continues to 2024. Discoverl produce5 careers materials for young peDple anL4 their teachers. parents an¢J guardians. and offers workshops, talks and caieers visits to highliEht the career opportunities in craft, making and design. We welcomed three new makers onto our youth-fcKused business start-up programme. Moke It. targeted at makers aged 25 or under who are currently unemployed or underemployed. Yhe Aword hos given me the opportunity roprogress my creotive practicepost unAversity ond reoch new oudiences. More specificolly. through theAword ond its credibility. It s opened up mojorctsreer opportunitie5 rhot hove occeleroted my coreerfrom 0 2020 groduote ro on emerging instollotion Grtist. I'm incredibly groteful to Cockpit ond the Moke It'Aword. Nt h05 tron5formed my creotNe prospects Thonk youfor enobling young cre(3tives to seek out theif dreoms ond be the 5UPPQrt we so desperotely need." Alice Burnhope. textile artist ccrKP￿ ARTS TRUSTEES. REPORT FOR THE PERIOD ENDED 31 MARCH 2023 Within our team, we hosted work placements from Inspire Lewisham. London Borough of Camden IKick5tart- equivalent prograrnmel, Goldsmiths University. and Westminster Kingsway College. We have been able to offer continued employment to two people on placements. Lwe Events Following cancelled events during the pandemic. we were delighted to wekome record numbers of visitors to our Open Studios events, winter 2022. We developed a fresh marketing and communications plan, focused on building new public audiences, incltjding through building press coverage. improving our digital presence, and partnerships Wlth organisations and bodies such as London Craft Week and London DeSlEn Festival. Research and Policy We continued to foster a range of local and national pannerships with cultural, education and enterprise or8anisations. We contributed to development of creative industries policy through membership of sector bodie5, including SDcial Enterprise UK. Craft UK, the Kings Cross Knowledge Quarter, the Creatwe Industries Policy and Evidence Centre Iwhere we are an appoin(ed indvsiry champion) and Creative UK, where our CEO is a member of the UKCouncil. We worked with The Clothworkets. Compary and De Montfort Unwersity to inform the scopin& feasibility and development of a new graduate incubator in Leicester. speciali5ing in innovation ané digital textiles. Property Bloomsbtsry Cockpit ha5 been based at Cockpit Yard. Bloomsbury for 37 years, since 1986. The charity take5 It5 name from the yard that 15 our original home. We are irb negotiations with our landloid. London Borough of Camden, and are seeking to secure a 15-year lease at Cockpit Yard. Negotiations are Set to complete in September 2023. Deptford Enabling works for the expansion and ￿furbi$hrnent of Cockprfs Deptford Studios began in autumn 2022, with the main contractor starting on site in January 2023. The project is on track to complete in September 2023 with 3 grand re-openinE in December. The £3.24 million capital project is designe(I by Cooke Fawcett Architects with landscaping by Sebastian Cox Ltd.. new public artwork by Amber Khokhar. It 15.project managed by New Stages LtLI. Principal funders are STRIDE Icorporation of London). the Mayor of London's Good Growth Fund, and London Borou8h of Lew15ham. We have also received SiBnific3nt funding from Garfield Weston Foundation, Foyle Foundation, City Bridge Trust, and C(Kkayne- Grants for the Arts. Other funders are Thames Water, The Turners. Company. Mila Charitable Foundation. The Leothefsellers, Company, The Clothworkers. Company. The Drapers, Company and The Haberdashers, Compary. The projert is the re31isation of 3 long-term. strategic goal to invest in our Deptford property to improve our asset and unlock unused space to maximise the social and cultural value it deltvers. We a￿ creating a thriving hub for craft in the heart of the Creative Enterprise Zone with additional affordable studios, a for-purpose wood-working hub. craft 83rden, foyer and café. and new learning centre_ It will enable Cockpit to support more makers. improving access. enable us to open to the public year-round, and offer a rich community progfamme of workshops. events, and education. ccKKp￿ ARTS TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2023 PERFORMANCEAND IMPACT The impact of our Work saw us recognised for the frfth consecutive year a5 one of the top-performinB UK social enterprises, listed on the Natwest SEICO Index 2023. We were finalists in four categories at the VK Social Enterprise Awards 2022.. Prove It.. Social Impact Award. Social Enterprise Team of ihe Year. arKI Education. Training & lobs Social Enterprise Award," our CEO was a finalist for the Women in Social Enterprise Award. Monltorlng and Evaluati We monitor and evaluate our economic. social and cultural impart. presenting results in an annual impact report The Cockpit Effect, published online and disseminated to suptM)rters. partners and beneficiarie5. Organisatiorb-wide key performance indicators IKPlsl are set at the ￿gInnIng of each finantial year. Each target is set In relation lo a benchmark and is owned by a named member of the team. KPIS are monitored quarterly and reported to the 803rd of Trustees. Our annual Partnership Reviews with ￿nefICiarIeS involve in-depth, one-to-one session5 that monitor key indicators. We complement tjuantitative data with qualitative analysis and beneficiary case studies. Including detailed six- and 12-monthly reports on Awardees and Bursary-holders, disseminated to funders. These in- depth reports are complernented by surveys that deliver iust-in-time data enabling us to enable us to be truly user-centreij, understanding what works and adapting to meet beneficiary needs. Impact Cockpit delivers public benefit ihrough education. training and employment support. as well as through Inlroducing contemporary craft to public audiences through showcases and events. We are home to 166 independent creative busine55es. Of those. 19% are on s￿n￿red places, supported by awarcls ènd bursèries piowding studio spa￿. business coaching and. in sorne cases, equipment for one to three vears. Maker5 at Cockpit practice 21 Llrfferent craft disciplines. with concentrations Current￿ in jewellery130%1. textiles114%1 and ceramics 110%). -cockpit hos helped me overcome chollenges byproviding studio 5poce ond toking hugefiftonciol pressure off rny shoulder5.... [Itl rneL7ns the chonce of eorning o decent livingfmm my work.~ Oalia James, weaver. In Spacesfor Growth. the 2023 Cockpit Effect report. anatysis shows that totsl annual sale5 for Cockpit makers vielded £7.6 million. Makers. turnover increased by 12%year-on-year ènd average profits were up by 4%. with a total Gross Value Added IGVAI of £3.7m. This is a social and financial return on investment multiplier of 3.7, meanin8 that every £1 invested in Cockpit yields more than £3 for the creative ecorK)my. With our svpport. our makers stepped up their digital reach during the year." online sales contnbuted to 34% of their turnover. Exports for Cockpit maker5 remain robust. despite the continuing challenge5 to exporting ensuing from Britain's exit from the European Union.. 56% of Cockpit businesses exported during the year, generating revenues for those makers of £628.(XXJ. Top export regions remain Europe la rnarket for 62% of exporting makers- down from 84% last yearl and North Arnerica1S1% of exporting makers- down from 68%). Despite the compound challenges of the cost-of-living Cr￿ls. post-pandemK recovery, and exports being hit by increased bureaucracy, our research shows that Cockpits maker community remained resilient through the COCKP￿ ARTS TRUSTEES. REPORT FOR THE PERIOD ENDED 31 MARCH 2023 year. The healthy financial perfom)ance was a ￿sUIt of makers, resilience and adaptabilty. as well as the support they receive from Cockpit through affordable workspace, and continual professional and business development. "I hove hod the most excellent troining and odvicefrom the business cooches [...] It s mode everything Possible. I doubtl would hove ochieved o renth of rhe things I've ochieved were it no£Aor Cockpit ond The Worship[ul Compony. [8eing ot Cockpit husj mode o HUGE differencel Amozing, Amoling. Amozinglll All of it-from stort toAintsh. I'm so very groteful to everyone. I'm blown owoy by the kindness ond unwovering support. You reolly do wont us creotives to shifte our brightest ond you do everyihAng withtn yourpower to lrft us up." Lsa Atkin. basketmaker Equty, Diversity and Inclusion C(Kkpit is committed to inclusion, dNersity and eouity in all our activitEs. recognising that C￿ativity and innovation are fuelled by dwersity. We foster an inclusive culture where oll aspects Df diversity are celebrared and seen as key to succe55 and flourishing. With active policies in Pla￿ to overcome barrier5 to participatK)n, Cockpirfs community 15 dNerse. compared to the wider craft sector. A5 a result of our work in this a￿a. 23% of Cockpit makers are from a Global Majority backBround, compared to 4% in craft as a whole (Crafts Council, 2016- the most recent available datal. We are committed to tackling systemic injustices in order to cultivate an even more diverse community- makers. team. 8oard. and partners- creating an environment where anyone. from any background. can develop their tslents. do their best work and realise their full potential_ Ouring 2022-23. Cockpit reaffirmed its existing commitment to Equity, Oiver5ity and Inclusion IEDII. We aim to.. Open up access to starting a suc￿SSful profesS￿)nal career in craft to everyone with tslent Actively address structural bamers. including systemic racism, inequality of access to educaDon and training, and SOCK)-economic barriers Promote and celebrate the diver51ty of the community of fflakers at Cockpit Continually deepen our learning and evolve our understsnding of diversity and inclUs￿n 8uild a more diverse, inclusive and cohesive community.. makers. team, Trustees. partners Our EDI poliry is comprehensive, going well beyond our legal duties. It addresses all protected char3cteri5tics. with 3 focus on addressing structural ineouities relating to race. disability and socio-economic background. To achieve these aims. a detsiled delivery plan set5 Out 30 specific obiectNes covering all areas of our 3rtivities." 3wards and applications. communicatM)ns, buildings. traTnin& outreach, HR. and governance. These objecttves have named owners and every team member has an EDI objectwe in their annual workplan. We review progre55 against objectives quarrerly. On the strength of our work in EDI. City & Guilds Foundation commissioned us in 2022 to research and deliver a pilot project on equity, diversity and Inclusion in the UK craft workforce. Following an initial phase of evidence gathering. we worked in depth with fNe small craft businesses around the UK on their organisational culture and practices. The success of the pilot led to development of a proposal for a multi-year project to support a step change in EDI. In particular for new entfants. All Cockprt studio bursaries and awards are designed to removing barriers to starting LJP in practice, especially socio-economic barriers. In addition. we have several awards that tackle other structural inequities. This year, CCcKP￿ ARTS TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2023 we continued to support two makers on the New Craft Award. aimed at individua15 from backgrounds culrentlv underrepresented in craft. This award is Informed and guided by a ten-strong group of ambassadors from Global Majority backgrounds. This year. we secured funding for. and devek)ped. the Bogri Award lo address the underrepresentation of makers from Asian backgrounds. Two Cockprt makers, both former Awardees, made and raffle(J a unique, handmade knife to raise funds for another new award. the Grant-Turnstone Award, aimed at female practitioners praclicin8 in traditionalty male-dominated craft field5. he Cockpit community is o wonderful creatNe hub thot I'm lucky to be o port of. As oformer Cockplt owordee. I con honestly soy rhor rhe oword hos helped myproctice thrive ontl become o sustoinoble business in on industry where there are toofewAsion mokers." Majeda aarke, textile artist. Equity. Diversity and Inclusion work is led by the Head of Operations and CEO and is overseen by the People Committee of the Board ofTru5tees. A5 With all our activities and governance, we review and are Buided by the Charity Governance Code. EnVir￿ment With its roots in materials and provenan￿. craft praCt￿e makes a distinctive contribution towards environmental sustainability. Many Cockpit makers have been in the vanguard of aLfopting circular economy principles and zero waste techniques. Jnd championing the use of recycled. renewable and non-extractive materials. These includes strategie5 such as using rerycled and Fairtrade precious metals, wood from sustainable sources, natural dyes. and de3dstock waste from the fashion and textiles industries_ We set an annual environmental strategy and action plan. the aims of which are to.. l. Reach net zero emissions from all our operations by 2030 2. Maximise the energy efficiency of our buildinBs 3. Minimise the generation of waste and maximise reuse and recycling 4. Provide training and knowledge exchange for makers on environmental responsibility 5. Be a voice and champion far craft's contribution to environmental responsibility Detailed objectives to deliver these aims are set In the following areas- building5, operations. tiaininB. behaviour. procurement. advocacy. Pro8ress a8ainst these objective5 3re monitored annually. For the past four years. staff have completed an annual carbon footprint calculator, with 3 new advanced and more comprehensive tool adopted In 2023. This Is now being extended to the community of makers. Over the four calendar year5 2019- 2022, average Imeanl staff carbon footprint fell by 37%. In addition. the Deprford redevelopment has afforded an opportunity to improve areas of buildin￿S environmental perforrnante, including through installation of air source heat pumps. io COCKP￿ ARTS TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2023 Financial Resilience and Fundraising Performance Through careful financial management, cost control and good fundraising performance. we 5UStained the harity's resilience, ending the year with a small SLtrplus_ We achieved this result whilst maintaining delwery, growing our offer in some areas, and producing strong impact. We have a positwe cash flow for 24 months and rese￿e5 are above our target of th￿ months, Un￿Str￿ed expenditure. On expenditure. we continued careful cost control. keeping c105e watch on inflabon. Having fixed energy rates with our provider for three years in 2021. we were somewhat cushioned from the direct Irnpact of hikes in energy prices ensuing from the war in Ukraine. Conscious of the impact of inllaiion on our beneficiaries, we kept licence fee increa5e5 5ignificantty150%1 below inflation. On fundraising. this year we developed a new, four-year Oevelopment Strategy 2023-27 to to support Cockpit to achieve its ambitions and Brow activity and Impact. The strategy sets out how we plan to Erow multi-year funding to above 73%, Increase unrestricted funding taking a full c05t recovery approach. and draw on the talents of the full team and Trustees to deliver our fundrai￿￿8 activities across trusts and foundation5. individual donors and patron5. and coiporate philanthropic partners. We are registered with the Fundraising Regulator and abide by the Regulatorfs Code of Conduct. We achieved 103% of the fundraisinE target set at the beginning of the period. Implementing a strategy focused on long-term. multi-year and unrestricted fundin& by the end of the current period we had secured 38% of our target for 2023-4. We achieved this dunng a penod in which all fvnders reported unprecedented levels of demand for supwrt. In this challenging fundraising context. we ère espeoally grateftjl to all the funders who continued their support of our bursaries. awards and ywng people's programrnes_ This enabled us to supsx)rt 40 makers durin8 the year, of whom 20 joined Cockpit during this financial period. In total. since 201S. we have provided the equivalent of 135 ye3rs of free studio support to emergin8 makers. Support for our youth anLI community programmes enabled us to reach more than 1,5(X) participant5 during the year. Individtjal donor income remained c105e to target. as lèst year. As our development strategy evolves in response lo the climate, cultivating individual phi13llthropic giving and corporate partnerships are prioritie5 for the coming year. Alongside revenue fundraisin& we continued our capital fundrai￿ng campaign for the Deptford development. To d3te, we have raised £2,757,127 towards the project (with more than 85% of this figure hawng being raised in previous financial periodsl. The Deptford project Is central to our bng-term financial resil*nce strategy. Bringing previou￿¥ unused space into operation. It will increase our capacity for earned revenue and grow our charitable imp3ct to support more makers and radically transform our leainin& education and family offer. c￿er the year. we have also developeLI strategies to further grow othef revenue stfeams.. buikling audiences for open studios events and implementing plèns to increase tours and venue hire income through improved marketing_ li CIXKPIT ARTS TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2023 FUTURE PLANS Our three priorities for 2023-24 a￿.. Gro￿ng Spaces, Growing Communities and Growing Audiences. Growing Spaces- Expand and improve our two 5tLtdio 51tes to accommodate more makers and support their growth. Explore potential for a third Cockpit space. Growin8 Communrties.. Extend our community and youth programmes to reach more. and more dwerse, people. Enrich our offer to makers and cultivate a strong maker community at Cockpit and beyond our studios. GrowireAudiences- Grow and diveisify digital èudiences. increase visitor nurnbers to our events. and build Cockpit's profile as a leading national centre for contemporary craft. We will deliver these in 2023-24 through the folkjwing actions.. l. Craft a long-ran8e strategic plan We will design a new. five-year Strateg￿ plan, con501idating and building on successes to date. We will appraise our business model, continuing to consolidaie existing revenue streams and diver51fy into new areas of business to optimise our economic, culttJr31 and s(Kial Impact_ 2. Empower more makers We will expand our consultancy offer by gJ5taining existing partnerships and attracting new to continue to extend our service5 ancl reach a wider range of makers, at Cockpit and UK-wide. We will develop our digital bu5ines5 5UPPOrt model to reach and sUPPOrt more makers UK-¥wde and 8lobally with business coachin& training and professKJnal development. We will continue to subsidise studios and sustain our Bursaries and Awards programme. focusing on redressing the greatest structural Inequities. We will attract makers working in wider range of practices, Including collecty'ble craft, experimental work. ecologicalty sustainable practices. an(J socially engaged pracknces. 3. Encourage future makers Creation of the new learning centre at Deptford will enable us to radically step up the growth of our young people'5 programmes to open routes into craft careers. In 20234. we wi11 launch a new Saturday aub for Craft & Making at Deptford. as the central pillar of our youth and community programme. This will be the fir51 Saturday Club to be hosted by working maker studios- giving young people an opportunity to learn about ent￿preneur$hip as well as about craft. design and rnaking. As a formal partner in the national Discover! Creorwe Coreers programme, we will continue to host immersive careers events for local school student5. and offer online talks and virtual visits to re3ch students nation-wide. With funding confirmed for three year5. we will support six emer8ing makeis on Moke It, our start-up programme for makers aged under 26. continuing a programme that has already supported over 40 under- and unemployed young people into business. 12 CCaPTh ARTS TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2023 4. Build public audiences Implementing a new marketin& communications and digital strategy. we will grow audiences and bring contemporary craft to more people through a rich programme of events. talks, publications and exhibitions. We will harness the unique opportunity of the Grarhd Re-opening to the public at Deptford In December 2023, and our 21° birthday In Deptford. to reach and attract laiger and more diverse local and national audiences. We will create new cultural, education and commercial partnerships and consolidate our position as a leading voice for contemporary craft. to reach new audiences and generate opportunities for makers. 5. Measure and communicate impact We wi15 continue our commitment to impact mea5urement- complementing rigorous quantitatyve dota with case studies that reveal the rich stories tr￿h1nd our work. We will share our social. economic and art15tic results through events. publications. and online. 6. Invest in organisational devdopment We will build on the or8anisational development programme that we inits'ated in 2020. with 3 focus this year on staff development. Board development to sustain an ambitious. healthy, happy, motivated, 3nd well-functioning organisation. We will co-create a community social charter formally describing the culture we seek to foster. 7. Secure long-temi resilience We will coMp￿te our Deptforé capital development project In September 2023, brin8inE online a new studio block. and indoor and ould(x)r community and public spaces. with a grand re-opening to the public in December 2023. In 81oomsbury. we will negotiale a new, long-terrn lease with London Borough of Camden. We will step up activity to research and secure a third studio site. We will irnplement our long-term fundraising and revenue generation strategy. maintaining our strong relationships with charitable trusts and foundations. We will diversify our funding base. growing corporate social responsibility Partnerships and philanthropic givin& to further strengthen Cockpivs resilience and our abilfy to deliver our social and cultural mission. 13 COCKPIT ARTS TRUSTEE> REPORT FOR THE PERIOD ENDED 31 WRCH 2023 LEGAL sfRucfuRE. GOVERNANCE AND MANAGEMENT Governing d¢xument Cockpit was establisheé as a charitable company limited by guarantee In 1993. The company was established under a Memorandum of Association. statin8 the objects and powers of the charitsble company, and is governed and administered in accordance with its Articles of Association. Members of the charity Euarantee to contribute an amount not ex￿eding £1 to the assets of the charity In the event of winding up. The total number of such guaraniees ai 31 March 2023 was 1112022." 131. The Trustees are member5 of the charity." this entrtles them onty to voting rights. A trading arm. coCk￿t Arts & Exhibitions LtLI. is a dormant limited company with no accounting transaction5 at present. As a result, the trading ami ha5 not been consolidated in these financial statements. Trustee recruf(ment. appointment and induction The Board of Trustees comprises individuals who are both trustees and nonexecutive diiectors of the company. Trustees serve for three years and are eli8ible for re-election for up to two further terms of three years each. All members of the 8oard serve in an Individual capacity with a duty to support Cockpit rather than to act as representative5 of a particu13r interest group. Trustees are recruited through an open process. Vacancies are advert15ed widely, with an em￿13915 on recruiting from a diverse range of bockgrounds to meet the organisation's skills and knowled8e needs. Application5 are shortlisted by the Nominations Committee, which comprises the Chair. two Trustees and the CEO. Following inrerview of shortlisted candidates. recommendations for appointment are proposed to the fvll Board for their consideration and approval. Ouring the period. two Trtjstees, Alistair Scott and Samuel Fry. stepped Llown from the Board. On appointment, Trustee5 receive an induction pack comprising the governing documents, most recent annual report, recent performance reports. Strategic planning documents, cortx)rate policies. Impaci reports and any other relevant materials. They are also Provided with upt041ate materials on charity governance, Including Charity Commission guidance, the Charity Governance Code. and Cultvral Governance Alliance gLJidance. New Trustees meet with staff to understand their role5 in the organi5ation and are invited to attend Cockpit events. All Trustees take part in an annual Away Day as well as quarter￿ Board meetings. Opportunitie5 forTru5tee training are provided. including a full, annual governan￿ briefing and update from Russell-cooke solicitors. The charity formalty reviews and assesses rts perfofmarKe and conduct in relation to The Governance Code. with input from all Trustees and senior executive staff. The review 15 discu55ed annuèlW by the Board. Management and de0sion•ma￿ng Trustees are responsible for making decisions on Cock￿'S long-term direction and activities, and for ensurin8 that all Board responsibilities delegated to stsff are carned out An annual business plan sets out how the chartty's activities will deliver its aims and objectives, within the context of a longer-range, five-year 5tr3tegic plan. 14 c(￿P￿ ARTS TRUSTEES. REPORT FOR THE PERIOD ENOED 31 MARCH 2023 Trustee su￿CoMMIttee5 provide detarled analysis and recommendations on specTrfic activity areas The committees are the Audit & Risk Committee Iquarterlyl, Development Committee Iquarrerlyl. Finance and 8usiness Committee Iquartertyl. People Corrhrnittee (three tirne5 a yearl. Nominations Committee (meeting as required), and Property Committee Imonthlyl. Other subiommittees and working groups are convened where required. Committee members are nominate¢J by the Chair of the Board of Trusiees and approved by the Board. Executive team The Board appoints a Chief Execufive to shape Cockpifs strategic direction and lead the organisation. The Chief Executive formally reports on progress to the full 803rd every quarter. as well as to Board subcommittee5. Staff remuneration is subjert to an annual inflationary ￿vIeW. with any additional pay increase dependent on change of role scope or responsibility. Recommendations on remuneration made by the Finance & Business Committee are subject to approv31 by the full 8oard of Trustees. We are an accredited London Living Wage Employer. RISK MANAGEMENT The Tfustees meet regularty to review the financial position and to ensure that effertwe management and controls are in place. The Aud¢t and Risk Committee and the Board of Trustees each review the charitrfs risk register quarterly. Attending to all risk categories Istrate8ic. operational. le8al, reputationall, they monitor risk status (probability, Impact and proximity) and take action to manage each risk as appropriate (mitigate, transfer, ccept. avoid or exploit). Principal risks identified in ￿latIon to the chariws finances are generating suffKient fundraising income Icapltal and revenue) and the risk of premises in Camden becoming unaflordable. Trustees have ensured that there are sufPicient reserves to meet all the thariws imme(liate liabilities and to continue to do so in the short term. Oespite an Increasing￿ competitwe environmenL revenue fundraising perfomiance was strong during the period, drawng on senior executive ream ext*rtise and building on SErong track record of successfully delivering programme5 to rneet funders. objectNes. To mrtigate the risk of any potential fundraising shortfall in the future, the charity has succe55fully diversified earned and traded Income. Implemented a rbew fundraising Strategy. and actNely cultivated new funding sources. The charity invested in add¥tional Fundraising resource to 5UPPOrt our c3mpai8n to raise the final 20% of tapit31 funds for the DeptFord project, and this 20% is underwritten by mortgage loan of £7SO.(X)O from Natwest Bank. This was subject to rigorous affordability tests before approval. Cockpit is registered wrth the Fundraising ReEulator and abides by the Regulatorfs Code of Fundrèising Practice. Fundraising is carried out by the CEO and the Head of Development. During the year. the charity h35 re￿iVed expert advice on VAT t￿atment of donations. We received no complaints about fundraising activrty. The charity is in regular commUn￿at￿n wtth property officers at Camden Council to negotiate an affordable. longer-tenn lease on our 81oomsbury premises, with increased space to meet growing demand for studios. The charity is recewing advice from an external agerit to support the rEgotiations. This yeaf, we reassessed cyber security risk5 in response to heightened ryber threats globally. All staff re￿1ve regular cyber security training and a55e55ments. with quartety refreshers. Addrtional security measures and two factor authentication have been implemented. The charity is protected by cyber insurance. 15 ARTS TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2023 FINANaAL REMEW Income Total Income for the period l April 2022 to 31 March 2023 was E2.648.938. compared with £1,904.444 In the previous 18-month period l October 2020 to 31 March 2022. (ln 2021-22 Cockpit moved its financial year end from 30 September to 31 March, and so comparative figures are for an 18-month perK)dl. The income for the current per￿d includes £1.432.762 in capital funds. During the pEriod. £85,451 was received from the Europe3n Region31 Development Fund IERDFI for the London Creative Network Programme. M3naged by SPACE. with Cockpit. Four Corners and Photofusion as de5ivery partners, the programme funded bu5ine55 5UPPOrt provi510n to resident studio holders and external makers. The first edifion of the programme began in January 2016. After three edityons. the programme concluded In March 2023 with the cessation of UK eligibility for EROF grants. Cockpit was commissioned by QEST Ithe Queen Elizabeth Scholarship Trustl to deliver professional ané business development programmes for QEST Scholars. We also delivered bespoke professional development programmes for the Craft Scotland. Yorkshire Artspace. the Worshipful Company of Basketmakers and The Basketm3kers' Association. The City & Guild5 Foundatson commissioned Cockpit to research equity. diversity an inclusion in the UK craft workforce. Total revenue from consultancy was £49,303. Reflecting high occupancy at both studio sites. licence fee income foi the period remainecl bou¥ant Income froffl venue hire. tours. and open studios events continued to recover slowly post-pandemic. Cockpit again received generous support from charitable trusts and foundations, enabling us to offer bursaries and aw3rds to talented craftspeople to develop their careers, and support of education programmes. We are grèteful to The Art5 Society. The Arts Society GLA. Br¢xlerers' Charitable TfUSt, The Clothworkeis, Companv. Curriers Company Charitsble Fund. The Haberdashers. Cornpany. Harriet's Trust, The Leathersellers, Company, London Borough of Camden, London Cornmunity Foundation. Newby Trust, Radcliffe Trust. SHA Charitable Trust, The Worshipful Company of Dyers, The Worshipful Company gf Basketmakers, The Worshipful Company of Glass Sellers. The Worshipful Company of Turners. and the Trusthouse Charitable Foundation. We are grateful to two resident makers. Holty Loftus and Daisy Tempest. for raising funds for a new specialist scholarship for emerging craftswomen. the Giant-Turnstone Award. We thank Prue McLeod for her generous support of our business sièrt-up programme. Make It, for maker5 aged 25 and under. We are grateful to Adrian Swire Charitable Foundation and Marsh Charitable Trust for their contribution5 towards core costs. We thank our corporate sponsors Clear Irhsvrance Management Ltd. for their continued support of the Cockpit Clear Bursary, and Deutsche 83nk for their contribution to the Jill Humphrey Springboard Prize. We are also grateful to our many individual donors. our Patrons. Champions and Friends, who gave generously in support of our work. Cockpit is registered with the Fundraising Regulator anij abides by the Regulatorfs Code of Fundrat5ing Practice. 16 cC￿PIT ARTS TRUSTEES, REPORT FOR THE PERIOD ENDED 31 MARCH 2023 Expenditure Total expenditu￿ in the year was £1,186,599 compared with expendrture of El,634.972 In the 18-month period 2020-22. Funds spent on business support progrèmmes in the 12-month period were £518.420, compared with £662,397 in the previous l&month period_ Movement in funds Net income was £1.462.339 fof the period ended 31 March 2023. There is a surplu5 for the year on unrestricted funds of £1.415. RESERVES POUCY The charity's reserves policy is to hold free reseThes equivalent to three months. running costs. Free re5erve5 at 31 March 2023 are £263.774 and three months of unrestricted expenditure at 31 March 2023 is £239,512. At 31" March 2023. the charity held the following reserves.. General unrestricted funds Restricted funds 631.094 2.668.755 3,299,853 17 CCKKPIT ARTS TRUSTEES. REPORT FOR THE PERIOD ENDED 31 MARCH 2023 STATEMENT OF TRUSTEES RESPONSIBILITIES The trustees who served during the period were.. Davina Mallinckrodt. (Chairl Pablo Lloyd Ioeputy Chaifl Bill Amberg Nishita Dewan Samuel Fry (Re￿ened september 20221 Lee Gage Patricia Godfrev Clarissa Hulse David Moore Mehul Nathwani Ben O'Neill (Resigned July 20231 Sarah Samuel Alistair Scott (Resigned November 20221 The trustees, who are also directors of CcKkpit for the t)urposes of company law. are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom General￿ Accepted Accountin8 Practice). Comp3ny law requires the trustees to prepare financièl statements for each financial year that give a true and fair view of the state of the affairs of the charitable company and of the income ané application of resources. including the income and expenditure. of the charitable company for that period. In preparing these financial statements the trustees are required to- select 5Ultable zccountinB policie5 arhd apply them Consistent￿.. observe methods and principles in the Charities SORP." make judgements and estimètes that a￿ reasonable and prudent.. state whether applicable UK Accounting Standards have been followed. subject to any material departures disclosed and explained in the financial statements." prepare the financial statements on the going concern basis unless it is inappropriate to èssume that the charitable company will continue in operation. The trustees are also responsbble for keeping prot*r accounting records that disclose with rea5Dnable accuraLry at any time the financial position of the charitabse tompany and enable them to ensure that the financial statements comply with the Companies Act 2(X)6. They are a150 ￿S￿nsIble for safeguarding the assets of the charitable company and hence for taking reasonable sfrps for the prevention and detection of fraud and other irregularities. 18 TRUSTEES. REPORT FOR THE PERIOD ENDED 31 MARCH 2023 STATEMENTOF TRUSfEES RESPONSI8ILmES ICont} So far as the trustees are aware.. lal there is no relevant audit information of which the Compan(s auditors a￿ unaware. and Ibl they have taken all the steps that they ought to have taken as trustees in older to make thern5elves aware of any relevant audrt informatiort and to establish that the Compan(s auditors are aware of that information. Approved by the trustees on 26 September 2023 and signe(J on their behalf by= Davina Mallinckro(ft. Chair of Trustee5 19 CCUPIT ARTS INDEPENDENT AUDITOR'S REPORT FOR THE PERIOD ENDED 31 MARCH 2023 Independentauditorfs reportto rnernbers of Co¢WAr1S Opinion We have audited thefinantial statements of CotkpitArts forthÈ ended 31 March 2023 which compiise the Ststement of Financial Actwities, The Balance Sheet. the Cash Fk)wSratementand notestothe financial statements. Includin8 a summary of signrficant accounting pOI￿leS. The financial reporting fvamework that h35 been appl*d In their preparation Is applicable law and United Kin8dom Accountin8 Standard5. includin8 F￿anCIal Re￿rtIn8 StaThlard 102 T1￿ FinonC￿Rep0rt1nY Stondord opplicoble in the UKond Republsc ollrelondlunited Kingdom Genera1tyAc￿Wed Accountin8 Practrel. In our opinion, rhe financhil statements.. give a true and fair view of the state of the Charitsb￿ Company's affairs as at 31 March 2023 and of the charitable company's net rnovernent in funds. inclvding the incorne and exFEnditure. for the year then ended,. have been properly prepa￿d in èccordance with Untted Kingdom Generally AC￿pted Accounting Practice.. and have been prepared in accordance with the requirements of Companies Act 2fA)6. 8asis foroplnion We conducted our audit in accordènce with Internaiional Siandards on Auditing IUKI IISA5 IUKII and 3pplic3ble law. Our responsibilities under those standards are further described in the Audrtorfs ￿s￿)nSIbIlItieS for the audit of the financial statements section of our report. We are Inder￿￿￿ent of the charity In accordance with the ethical requirements that a relevant toour auditof the financial siatements In the UK, irflwjing the FRCsEthical Standard. and we have fulfilled ourother ethical responsibilities in accordance with these reouirements. We beleve rhat the audit evidence we have obtained 15 sufficEnt and appropriate to pr(wKle a IK45i5 for our oiMnK)n. Condusiort rtlating to eolng concem In 3uditin8 the financial ststements. we have concluded thatthe truste￿ use of the going concern basis of aCco￿ting in the preparation ol the financial sratemenrs Is appropriate. Based on thework we have performed, we have Th)t identified any material uncertainties ￿latingtO evenrs or condition5 that. ind￿IdUal￿ or collectwely. may csst signrfic3nt doubt on the charitable company'5 ability to continue as a Eoing concern for a period of èt least twelve months from when the financial statements are authori5ed for issue. Our responsibilit￿Sand the iesponsibilitiesofthe t1ustees￿th respecttogoingconcern a￿ described in the ￿levant sections ofthis re￿. Other Inforrnation The trustees are respon51ble for the other information. The other inforfflation Cofnprises the infomiatv)n included In the Trustees. Report. Our opinion on the financial siaiements does not cover the other information and, except to the extent otherwsse explKitly stated in our ieport. we do not express ary form of 3ssurnn￿ conclusion thereon_ In connection with our audit of the financial statements, our reSponsi￿'11ty 15 to read the other information and, In doing 50. onsider wheikEr the other information Is materially inconsstent with the financial statements or our knowledBe obtained in the audit or otherwise appears to be materialty m15Stated. If we Klentfy such material inconsistencies ￿ apparent material misstatements. we are required to derermine whether there [5 a material m15Staternent in the fin8nci31 statements or a material misstatement of ihe other info¥mation If, based on the work we hève perFormed, we conclude that there is a material mi5Statementof thisother information. we are required to reportthatfact. We have nothing to report in this regard. Oplnions on other matters prescribed ￿ the Companies kn2C(6 In our opinion, based on the work undert3ken in the course of the audit- the information eThfen in the Trvstees. Report Iwhich includes the strategic report and the direttors. report prepared for the purp05e5 olcompany lawl for the finantsal year for which the Pinancial statements are prepared is consistent with the financ131 statements.. aw the straiegic feFM)rt and the directors. report inclLxled within the Tru5tees' Report have been Prepared in atcordance wrth applicable legal requ1￿Ments. 20 cC￿P￿ ARTS INDEPENDENT AUDITOR'S REPORT FOR THE PERIOD ENDED 31 MARCH 2023 Matters on whrrh we are required to rewt ￿ èxceob)n In the light of the knowledge and understanding of the charrtable cornpany and ils env1roj￿ent obtsined In the course of the 3udit. we have not ￿entrf￿d material misstslemenrs in the Trustees. RepNt IwhKh incorwate5 the strategic rèport and the directors. report). We have nothing to report in re¥Ect of the fdlowire matters in ￿latiOn to whKh the Companies Act 2LK16 requi￿5 u5 to report toyou if, in our opinion.. adequate accounting record5 have noi been kept by the chaiitable tompany. or return5 adequate for our audit have not been received from branches ry)t visited by us.. or the charitable company finarKial statements are not in a@￿ement with the accounting records and retvrns.. or certain disclosures of trustee5' remuneration specitied by law are not made." or we have not received all the information and eXp￿nationS we require lor Ouf audit., or the tiusrees were nor entitled toprepare the linantial statements In accordance with small companies. regime and take advantage ol the small companie5. eXeMpt￿n5 in preparing the trustÈÈ< rèport and from the requirement to prepare a Strategic ￿pOrt. Responsibilities of trustetsfof the finartrdl ststements A5 explained more lully in ihe trus*es' responsibilities sraiemeni Iset out on pa8e 17-181. the Irustees (who S￿ èls0 th directors of the charitable company for the purposes of company lawl are responsible lor the preparation of the financu41 starement5 and for being sarisfiecj ihar they8we a true and fair wew, and for svch internal conrrol as the irusree5 determine Is neces5arytoenable the prepafatlon of financial staternents thatare free from materi31 rnisstatement, whetherdue to fraud orerror. In preparing the financial 5tstements. the trustees are responsible for 35se551ng the charitable compan(s abilrty to continue asa 8oin8 corrern, disclosing. as appI￿able, maiters re&red ro80in8 concern and usingthe goin8 concern basis of accountinB unless the trustees either Inrend to liquKlate the chariiable company or to cease operations, or have no re3li5tsc alternative ttod050. A￿lit0￿$ responsibilitiesforfv ¥uditof fj*financral 5tstements Our objectives are to obtain reasonable assurance atr￿vt whether the financial statements as a whole are free from material misstatement, whetherdue tofraud or error. and to i55ue an auditorf5TepDrt that indude5 our opinivn. Reasonable assurance 15 a high level of assurance, but Is not a guarantee that an audit conducted in accordance with ISA5 IUKI will 31w3ys detect a rnateiial misstatement when It exists. M155tatemenrs can arise from fraud or error ancj are considered material if, indivmlually or in the agg￿gate. they covld ￿asOnab￿ be expected to Influen￿ the economic decisions of users taken on the basis of these financial statements. l¥re8ularifies. includin8 fraud, are in5tsnces ￿ Th)n-com w¢(h laws and regulatrons. We desgn procedure5 in line with our responsibilities, Ou￿1ned at￿ve, to detect rnaterial mL5Statemenls in ￿spect of IrrE8vL3rlt￿s, incI￿ling fraud. The extenr to which our procedures are Capab￿ ol ￿tecting Irregularities. I￿￿JdirS fraud is detailed below". Based on our undersianding of the charIta￿e company and the environment In which it operates. we identified that the printip31 risks ol non-cornpliantt with laws and ￿gUlat￿l￿5 related to non-compliance with the Ch3Tlties Act, Companies Act and Health and Safety ￿g￿￿tion. and we c￿side￿d the extent to wh￿h non-compliènce might have a material effect on the financial ststements. We also considered those laws and regulat￿￿$ that have a direct impatt on the weparatw of the financial statements such a5 the Companps Act 21J16 and the Chanties Act 2011. payroll tax and 5ale5 tax. 21 ClxKP￿ ARTS INDEPENDENT AUDITO￿5 REPORT FOR THE PERIOD ENDEO 31 MARCH 2023 We evaluated management's incentNes and Oppr*￿n￿e5 forfraudulent manipukity.on of the financial ststements (including the risk of override of controls), and determined that the W1￿1paI risks were ￿lated to recognising Income in the incorrect finèncial period Audrt procedufes perfomied by the engage￿nt team i￿lUdeLI.. Inspectin8 corresporKlence with regulators and tax authorilies.. scussions with mènagement including Cons￿eratIon of known or suspected irbstance5 of non-cornpliance with laws and regulation and fraJd." Evaluaknng management's conirols designed to prevent ènd detect irregulafitie5. Substantrve test of detsil on Ir￿orne transact10115 aThl review ol income transactions arouThJ the financial year end. and Identifying and testing journals. in particular journal entres posted with unusual account cornbination5. POStin8S by unusual users or with urxJsual descfiptions. 8ecause of the inherent limr(ations of an audit. thefe is a risk that we will not detect all Irregularities, including those leading to è material misstaternent in the financkBI statements of non-complian￿ with re8ulation Thts r￿k increases the more that compliance with a law or regulation is removed frorn the events and tran5action5 reflecied in the Pinanci315taternent5, as we will be less likely to become aware of Instances ol nonO s.cK)o 8.500 1,000 S.QKJO 4.650 7,759 8,623 Ii,CKK) 12,txK) 8.500 1.000 5,000 4.650 7.759 1,000 44.211 44.211 248.483 71.211 319.694 31 C￿KP￿ ARTS NOTES TO THE FINANCIAL STATEMENTS (continued} FOR THE PERIOD ENDED 31 MARCH 2023 4. BUSINESS SUPPORT PROGRAMMES Restricted Funds Unrestrirted Funds Total 2022 Prioryear comparative European Regional Development Fund IERDFI Clear Insurance Management Ltd The Haberdashers. Company John S Cohen Foundation The Worshipful Company of Leathersellers The Clothworkers, Foundation Jill Humphrey Springboard Prize The Arts Society NewbyTru5t Drapers Charitable Foundation Radcliffe Trust Worshipful Company of Basketmakers Texselect Worshipful Company of Turners Worshipful Company of Needlemakers Harriet's Trust CAPITB Trust SHA Trust The New Craftsmen Worshipful Company of Tin Plate Workers Worshipful Company of Gla55 Sellers Worshipful Company of Curriers Golon5COtt Foundation Consultancy Incorne and Fee5 Charged 115.879 2.5 10,000 5.OtKJ 115,879 2.500 10,000 5,000 46.4CKJ 44.334 46,400 44,334 1.000 3.000 8.000 11,264 9,614 11.264 9.614 2.167 2,￿0 4,167 5,000 7.000 4,000 5,000 4.000 2.716 2,716 2.716 2,716 49,303 49,303 295,590 53,303 348.893 32 COCKP￿ ARTS NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE PERIOD ENDED 31 MARCH 2023 TOTAL EXPENDITURE Business SYPPDrt programmes Fundraising expenses Marketin8 & events ProvIs￿n of W0￿SpaCe Support Staff costs (note 61 Rent and rates Repairs and maintenance 14.306 28.611 210,144 114.420 39,682 21.830 6.156 157,362 104.885 36,375 20.010 S.642 100.139 Insurance Bad debts Oepreciation Legal and professional fees 8ank interest Audit fees Project expen5e5 General expenses Office expenses-general - Statior￿ry - Sundryadmin Unreclaimoble VAT 513 1,026 3.591 31.015 398 796 4.773 4,375 2,784 33.973 3.382 2,978 176 665 922 2,349 20,289 17.868 1,058 3.989 5.532 80,986 18,599 16,378 970 3,656 5,070 1.691 1,489 88 332 461 11,836 10,423 617 2,327 3,227 Carried forward 19.278 72.529 484,113 454,308 134,944 33 COCKP￿ ARTS NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THE PERIOD ENDED 31 MARCH 2023 5 TOTAL EXPENDITURE Icontinuedl Business 5UPPOrt Pr￿rammeS Fundraising Marketing & Provision of Support Brought forward 19.278 72.529 484,113 454.308 134,944 Split stjpport costs 7.819 12.510 71.930 64.112 1134,9441 27.097 85,039 556.043 518.420 Costs split Support costs split 36% 46% 33% 41% 21% -loo% 5% 34 COCKPIT ARTS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2023 TOTAL EXPENorruRE Icontinuedl Prior year comport7tive Business support programmes Fundrasi expenses Marketin8 & events Provision of workspace Support Staff costs (note 61 Rent and rates Repairs and maintenance 18.597 37,193 261,638 158.162 78,750 34,504 9.162 151 46.523 204.564 144,982 72,188 31,629 8.398 130,177 Insurance Bad debts Depreciation Legal and professional fees 8ank interest Audit fees Project expenses General expenses Office expenses- general - Stationery - Sundryadmin Unreclaimable VAT 764 1,527 5,345 1.205 2.410 14,459 582 13.255 8.435 55,887 1.137 2,813 144 94,(X)7 6.823 16,87S 865 3.602 9.438 76.330 6,253 15,468 793 3.302 8.651 3,979 9,844 504 2,101 5,506 1.406 72 3(X) 787 1,573 Carried forward 23,699 103.284 735.385 585,813 165,891 35 COCKP￿ ART5 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2023 TOTAL EXPENorruRE Icontsnuedl Prior year comporotive Business 51JPPOrt prc8rammes Fundraisir expenses Marketing & events Provision of workspace Support Brought forward 23,699 103.284 735,385 585,813 165,891 Split support Costs 9.340 14.943 85,924 76.584 1165,8911 33.039 118.227 821.3C8 662,397 Costs split Support costs split 3% 36% 46% 33% 41% 21% -loo% 8% 36 cc[KP￿ ARTS NOTE5 TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2023 NET INCOME/IEXPENDITURE) 2023 2022 This is stated after charging: Interest payable Depreciation Trustees. indemnity insurance Trustees, remuneration Trustees. reimbursed expenses Auditors, remuneration.. audit additional work Operating lease rentals.. property 5,008 31,015 1.443 582 46,523 1,316 15.000 13,000 2(X).000 261.500 STAFF COSTS AND NUMBERS 2023 2022 Staff costs were as follows= Salaries and wages Employer national insurance Pension contributions Redundancy payments Contract staff 440.250 42,820 15.967 14,392 1,902 580.146 53,741 21,784 2.697 515.331 658.368 One employee eorned more than £80,000 (excluding employer pension costs) during the year ended 31 March 2023118 months ended 31 March 2022 £110,(KJOI. These higher paid employee5 are accruing retirement benefits under the defined contribution scheme. Contributions during the year ended 31 March 2023 totalled £5,647118 months ended 31 March 2022.. £7.6101. No. No. The average weekly number of employees durin8 the year was as follows.. Fundraising and publicitv Provision of workspace Business support programmes Support Management and administration 13 Full time. 9 Part timel No trustee received remuneration during the year12022.. Nil). No expenses were reimbursed to Trustees in the year12022.. Nill. The a88regate remuneration of the chariVs key management personnel amounted to £282,034 for the year ended 31 March 2023118 months to 31 March 2022= £306.1411. 37 ARTS NOTESTO ThE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENOED 31 MARCH 2023 8. TA￿TION The charitable company 15 exempt from corporation tax as all its income is charitable and is applied for charitable purposes. TANGIBLE FIXED ASSErs Leasehold Irryovements Property Equipment Total At 31 March 2022 2.049.267 140,236 93.037 2.282,540 Additions 1.072.619 1.072,619 31 March 2023 3.121.886 140.236 93,037 3,355,159 Depreciation At 31 March 2022 Charge for the year 634.766 31.015 140.236 93,037 868,039 31,015 At 31 March 2023 665.781 140.236 93,037 899,054 Net 8ookValue At 31 March 2023 2,456.105 2,456,105 At 30 Mafch 2022 1.414,501 1.414,501 The charity had capital commitments at 31 March 2023 for property of £1.410,94512022 Enill. IQ. DEBTORS: amounts due within one year 2023 2022 Due fiom licensees Due from funders Prepayments and accrued income Taxation and ￿cial security Other debtor5 373 403,124 88,532 I28,8￿) 145 1,91S 213,438 145 621,064 215,498 38 cC￿KP￿ ARTS NOTES TO THE FINANCIAL STATEMENTS (continued} FOR THE PERIOD ENDED 31 MARCH 2023 11. CREDITORS.. amounts due within one year 2023 2022 Bank loans Trade creditors Taxation and social security Accruals and deferred income Deposits held on behalf of licensees Other creditors 8,002 485,147 12.271 124,646 68.224 5.499 5,100 61.206 10,393 108.489 70,101 5.274 703.789 260.563 DEFERRED INCOME Movements on deferred income balances included wrthin accruals and deferred income above.. Balance as at l April 2022 Released in the year Amounts deferred in the year 4,970 14,9701 5.6 12.907 112,9071 4,970 Balance as at 31 March 2023 5.600 4,970 12. CREDITORS.. amounts due after more than one year 2023 2022 Bank loa 340,886 42.361 340,886 42.361 The charity also has a loan under the Bounce Back Loan Scheme. Interest is charged at 2.5% per annum with no interest charged for the first 12 months. Capital repayments are to be made in 108 equal instalments that commenced in October 2021. The charity has a charge secured on the property at Deptford from the bank loan repaid in November 2022. 39 c(￿KP￿ ARTS NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 WRCH 2023 12. CREDITORS: amounts due after more than one year Icontinuedl The loans are repayable as follows-. 2023 2022 Within I year Between 2- 5 years More than 5 years 8.Ct)2 50,121 290.765 5. 100 21.709 20,652 348.888 47.461 13. ANALYSIS OF ASSEfs 8￿EEN FUNDS Restritted Unrestricted Funds Funds Totsl Funds Tangible fixed a55ets Net current assetsllliabilities} Creditors: amounts falling due after more than one year 2,088,781 579.974 367,324 604.660 2,4S6.105 1,184,634 1340,8861 1340,8861 2.668.755 631.098 3.299.853 13. ANALYSIS OF ASSEfs BEPIVEEN FUNDS Prior year comporotive: Restricted Fund5 Unrestrictsd FuTrYs Totsl Funds Tangible fixed assets Net current assetsllliabilitiesl Creditors." amounts falling due after more than one year 1.034.429 173.402 380,072 291.972 1,414.501 465.374 142,3611 142,3611 1.207.831 629,683 1,837,514 40 C¢XKPIT ARTS NOTES TO THE FINANCIAL STATEMENTS {tontinued) FOR THE PERIOD ENDED 31 MARCH 2023 14. MOVEMENT IN FUNDS Atthe stsrt of the peric#l At the end of the period Income Expenditure Aestrirted fijnds: Deptford capital funds General grant5 Bugness sUPPOrt progr3rnme 1.034.437 50,fm 123.394 1.432.762 8,230 248.483 118,2671 18.2301 1202,0541 2,448,932 50.000 169.823 Totsl re5trirted funds 1.207.831 1,689,475 1228.5511 2.668.755 Unrestritted funds: General funcls 629.683 959,463 1958.0481 631.098 Total fur 1.837.514 2.648,938 11.186,5991 3,299,853 Prior yeor comparotive 14. MOVEMENTIN FUNDS Atthe start of the year At the end of the year Income Expenditure Restricted funds.. DeptfDrd capital funds General grants Business support prograrnme Fundraisin 928.ICt> 22.007 79.723 133,738 295.667 295,SgJ 127,4011 1267,6741 1251.9191 1,034.437 50,0(X) 123.394 Total restricted fvnds 1,029,830 724,995 1546,9941 1,207,831 Unrestricted funds: General fijnds 538.212 1,179,449 11,087,978) 629.683 Total funds 1.568.042 1,904,444 11,634,972) 1,837,514 41 COCKP￿ ARTS NOTESTO ThE FINANaAL STATEMENTS (continued) FOR ThE PERIOD ENDED 31 MARCH 2023 Purposes of restricted funds Deptford capital funds Net book value of the Deptford property in 21K)3 funded by grant5 from London (kvelopment Agency ILDAI Cluster Fund, London jrough of Lewisham and SRB Silw(K)d. DepreciaD"on will be charged to this fund over So years. Expansion and refurbishment of Oeptroid Studi05 funded by grants primari￿ from STRIDE (Corporation of Lonéonl, the Mayor of London's Good Growth Fund. and London 8orough of Lewisham. General grants Funding receNed towards the running costs of Cockpit Arts during the COVID-19 pandemK. Business supporr programme Funding received towards the running costs of the business support programmes. 15. OPERAMNG LEASE COMMrrMENTS 2023 2022 The charity ha5 future lease payments at the year end under operatin8 leases for each of the followin8 periods. Less than one year 1-Syears The charity had a commitment under its current lease up to the date of expiry at 24 December 2020. 16. RELATED PARTY TRAN￿CnONs During the year Cockpit Arts had no related party transactions. 17. ANALYSIS OF CHANGES IN NET DEBT As at l April 2022 Non-ca5h Asat31 Cashllows movements March 2023 Cash at bank Loans due within one year Loans due after one year 510.439 15,IIA)I 142.3611 756,920 6.133 1307.$601 1.267,359 18.CK)21 1340,8861 19.0351 9.035 Total 462.978 455.493 918,471 42 C[K](P￿ ARTS NOTES TO THE FINANaAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2023 18. SUBSIDIARY COMPANY Cockpit Arts has a wholly owned trading subsidiary. Cockpit Arts & Exhibition5 Limited, company nurnber 0341833. It has no assets other than its £2 share capital. The company is dormant and has not traded in 2023 or 2022. The reElStered office of the company is Cockpit Yard, Northington Street, London WCIN 2NP. Pablo Lloyd became the sole director of this subsidiary company during the year. There were no inter-company transactions in 2023 or 2022. 19. COMPAFLATIVE STATEMENT OF FINANCIAL AcfiviTIY Notes Restricted Unrestricted funds Funds Totsl 2022 Total 2020 Income and Expenditure Income from.. t￿not￿nS Fundraisin8 Marketing ènd events General 8rant5 Government grants 40.514 39.437 40.514 39,437 303,667 22.284 18.425 39,455 92,426 67.853 295.667 22,284 Charitoble octivitses Provision of workspace Business support programmes Capital project 1.015.823 53,303 1.015,823 348,893 133,738 513.593 172.349 295,590 133.738 Investmentinrome 88 88 585 Tcrtal income 724.995 1.179.449 I,g)4.444 904,686 Expenditure on.. Raisingfvnd5 Fvndraising Marketing and events Choritoble actNitie5 Provision ol workspace 8usine55 WPPOrt programmes 33.039 92,538 33,039 118.227 21,014 58.608 25.689 269.386 2SI.919 551,923 410.478 821.309 662.397 397,505 361,155 Total expendtture 546.994 1.087,978 1.634.972 838.282 Net inc0mellexpendrtu￿I and rr#Jvement in funds 178.001 91,471 269.472 66,404 Reconciliation of funds Total fund5 brought forward 1.029.830 538.212 1,568,042 1.501,638 Total funds carried forward 1,207.831 629.683 1,837,514 1,568,042 43