2022-12-31-accounts

CHARITY P4UMBER . 1045067 COMPANY NUMBER . 03011540 (EllglAn(l and Wales) ARTISTS STUDIO COMPANY REPORT AND FINANCIAL STATEMENTS (A company limited by guarantee FOR THE YEAR ENDED 31 DECEMBER 2022

ARTISTS STUDIO COMPANY Contents Page Legal and administrative information Trustees, report Independent auditor's report Statement of financial activities Balance sheet io Cash flow statement li Notes to the financial statements 12-19

ARTISTSSTUDIO COMPANY Legal and administrative information for the year ended 31 December 2022 Constitution Artists Studio Cornpany is a company limited by guarantee and a registered charity governed by it5 memorandurn and articles of as50Clation. Charity number 1045067 Company nurrber 03011540 (England and Wales) Dlrectors and trustees The directors of the charitable company I'the Charity") are its trustees for the purpose of charity law and throughout this report are collectively referred to as trustees. Trustees J Cassidy l L Hammond C Upstsn l A Goode Secretsry C Upson Chief Executive Officer P Flack Registered Office The Chaplin Centre Taplow House Thurlow Road London, SE17 2DG Webslte www.ascstudios.co.uk bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill, West Malling Kent, ME19 4JQ Natwest Bank PO Box 35 10 Southwark Street London Depot Code 190 SEI ITJ Sollcltor Royds LLP 65 Carter Lane London, EC4V 5HF Audltor Silver Levene IUKI Limited Chaitered Certified Accountants 37 Warren Street London WIT6AD

ARTISTS STUDIO COMPANY Trustees, report lincludlng Dlrectors, report) for the year ended 31 December 2022 The trustees are pleased to present their annual report together with the financial statements of the Charity for the year ended 31 December 2022. The financial statements have been prepared in accordance with the accounting policies Set out in note I to the financial statements and comply with the Charity's memorandum and articles of association, the Companies Act 2006, the Charities Act 2011 and "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 Ireland IFRS1021 leffeetive l January 20191" Aims and objettivès The objectives of the Charity are'.- To advance the education of the public in arts,. To relieve poverty by assisting un-established artists to become self-supporting through their art,. and To promote and improve art and the production of objects and works of artistic merit. To further the above objectives the Charity in brief..- Provides or assists in the provision of accornmodation, studio space, equipment and materials for artists of promise who by rea50n of their poverty are unable to provide such accommodation, studio space, equipment and materia15 unaided., Promotes, entourages sponsors, produtes or maintains and assists in the promotion, encouragement, sponsorin production or maintenance of educational exhibitions and performances in public open spaces and elsewhere of paintings, sculpture, photographs, lithographs, engravings, etching5, bronze5, enarnels, jewellery, gems, films, anirnation5, play5, musical work5, opera, dance, drarna, poetry, literary works and other work5 Qr event5 of artistic, musical or literary merit,. Provides, maintains and improves or assists in the provision, maintenance and improvement of premises of everv description for exhibitions and or performances of paintin85, sculpture, photographs, lithographs, engraving5, etchings, bronzes, enamels, jewellery, gems, films, animations, plays, musical works, opera, dance, drama, poetrv, literary works and other works or events of artistic. musical or literary merit,. and Provides or assists in the provision of studios. workshops and other premises of every kind for the study and teaching of subject5 and matters of artistic, musical or literary merit. Organisation The board of trustees currently numbers four but the board may from tirne to time register an increase of members. Powers to appoint trustees rests with the board of trustees. A chief executive is appointed by the trustees to manage the day-to-day operations of the Charity. Investment powers The trustees have discretion as to the manner in which funds are invested. Professional advice in this reEard is sought through the Charity's financial advisor/broker. Trustee induction and trainin8 Trustees are provided with an induction pack containing key documents such as the Charity Commissions, welcome leaflet, 'The Essential Trustee, and a 5umrnary of the Trustee Act. New trustees are encouraged to spend time on induction and meeting key employees. Publlc benefft statemnet The Trustees have complied with the duty in section 17151 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. The activitie5 mentioned above demonstrate the public benefit arisin8 throu8h the Charity's activities.

ARTISTS STUDIO COMPANY Trustees, report lin¢ludin8 Directors, report) for the year endeil 31 December 2022 Icontinued) structure, governance and management New trustee% are appointed through recommendation and interview with the full board. The trustees manage the Charity. The tull board meets every quarter. The tull board ot trustees is concerned with policy matters and agrees board strategies and areas of activity for the Charity. The Chief Executive Officer and the Financial Controller advise the full board on more detailed management, which the board review i.e. quarterly internal ccounting / finance, monitoiing of income and expenditure, staff salarie5, Studio rent reviews, property rerit reviews, public benefit, public exhibitions and events. risk management. future planning and other issues deemed appropriate. When important matters arise in between meeting cycles the key staff and full board communicate with each other bv phone or email in order to reach a decision. In some cases it is felt appropriate to hold a special meeting, for example, when a new property is acquired and heads of terms require agreement. The responsibilities for day-to-day management of the Charity lies with the Chief Executive Officer, who has the powers and responsibilities approved by the trustees. None of the trustees receive remuneration from the Charitv. TrusteeslDirectors The trustees perform the role of the director5 for the purpose of the company law. Those who served during the year nd up to the date of signature of the financial statements were as follows.. J Cassidv J L Hammond Ichairmanl C Upson Isecretaryl J A Goode lappointed on I September 20221 Achievements. performance and public benefit during the year Despite Covid 19 pandemic issues at the beginning of the period, the Charity managed 7 project spaces across our building5. These are free venues where our tenant5 can exhibit their work to the public and Stage talk5 and cornmunitv events. Within these spaces the Charity SUPPOrted 9 exhibitions and events supportinÉ 59 artists and makers and attracting 1,243 visitors. The Charity manages 3 public art gallery, the "ASC Gallery" The gallery aims to promote emerging artists along side those more established. Over the period the ASC Gallery staged 9 exhibitions supporting 109 artists and makers and attracting 2,420 visitors. The Charity supports open studio events within all our buildings. These events are an opportunity for artists and makers within our buildings to open up their studios to the public. Over the period the Charity supported 3 open studio events attracting 900 visitors. Over the period the Charity provided 517 affordable workspaces, supporting 760 artists. makers and arts organisations. The Charity supported our tenants suffering severe financial hardship with monthly payments plans. As on 31 December 2022 occupancy levels aeross all our buildings totalled 98.79% 12021.. 98.52Yol. This level of occupancy is consistent with pre-pandemic level and was in part achieved because of the support the Charity provided our tenant5 suffering severe financial hardship and by encouraging graduates to take up workspace with rent discounts. During the period the Charity carried out improvement works on all it5 buildings. These works included irnprovements to enerEy performance and the Installation of a new roof. communal kitchen and project space at 47c Streatham Hill. Fundralslng actl¥ltles The Charity has no fund raising activites during the year and prior year.

ARTISTS STUDIO COMPANY Trustee5' report (includin8 Dirertors, report) for the year ended 31 December 2022 Icontinued) Future plans The Charity's business plan is based on acquiring new properties at below market value or rent. It will tonsider meanwhile and permanent property. It defines permanent property as property held on long leasehold lover 99 year terms) or freehold. It is focused on aquiring buildings at discounts via s106 Planning Gain Agreement. The Charity acquired a lease on a new building over 2023. Thi5 building will provide atlordable desk space tor not-for- profit arts oraganisations and start-up creative businesses. The Charity is planning to relocate its main office and the Charity Gallery to this building and to launch a large hire gallery, focused on promoting the work of graduate and post graduate artlsts and designers. The cost of livin8 crisis and especially increasing interest rates, construction and energy costs are a major concern to the Charity Board and management. The Charity is focused on mitigating these Costs through a number of measures. These include metering workspaces and making our buildings more energy efficient. We are also makine early mortage repayments on two of our properties to reduce interest repayments. From l April 2027 commercial propertie5 are set to have minimum EPC ratings of 'C' or above to be let out. The Charity's Board and management have recognised thi5 as a financial and operational risk. The Charity ha5 8 EPC rating certificates across 6 buildings showing ratings 'A' to 'C' and 4 EPC ratinE certificates across 4 buildings showing ratings at'D' to'E' The Charity is taking appropriate actions and all its buildings should be EPC rated above'c, by April 2027. The board of trustees recognise that it is beneficial to increase the size of the Board to five or six members and thev are actively seekin8 new members with the relevant experience and skill set. A new Board member was appointed in September 2022. Financial position.. This year the Financial Staternents Show a surplus for the year totalling £441,700 with a suiplus for the pieviou5 year totallin@ £1,904.800 includinE fair value gain of £1,336,323 on investment properties. The financial statements show a gross income for the year totalling £2,574,486 compared to the previous year totalling £2,661,818 lincluding grantsl. The Charity ha5 improved its financial position in term5 of net assets. Reserves policy and risk management As at 31 December 2022 the Charity recorded funds totalling £4,002,481 including fair value gain of £1,336,323. The Charity's free reserves include £332,577 returnable woikspace deposits that rnay legally be used as working capital. The trustees have agreed a minimum free reserve totalling £450,000, including £332,577 returnable workspace deposits. This is the sum the trustees agree is a reasonable sum to safeguard against the Charity's identified risks. The trustee5 agree that within the total free reserve5 UP to £2,206,170 may be used to acquire new buildings, for building improvements or early repayments of Loans. The Chief Executive Maintains a Major Risks Report detailing the risks the Charity is exposed to. The trustees are sat15fied that the systems are in place to mitigate exposure to the major risks. The Charity continues to maintain and implement strict financial controls in order to safeguard the Charity's a55et5. The trustees review the financial controls periodically to ensure they meet the Charity's need5. Investment Policy The Charity's investments are safeguarded in accordance with the Charity's governing document and havine regard to the Trustee Act 2000. All the Charity's investments are held in low risk bank accounts.

ARnsTS STUDIO COMPANY Trustees. report Ilncludlng DlrectOfS' report) for th• y•ar ended 31 Decomb•r 2022 (contlnuedj Trusteeg responslbllSUe$ statement The trustees. who are also the directors of Artists Studio Company ftsr the purposes of company law, are responslble for preparing the Trustees, Report and the linancial Statements in attordance with applicable law and re8ulations. Company law requlres the trustees to prepare flnancial statements for each financial year. Under that law the trustees must prepare the fSnancial statements in accordance with United Kingdom Generally Accepted Accouting Practice (united Kingdom Accountin8 Stsndards and applicable lawl. Under cornpany law the trustee5 rnU5t not approve the financial statements uThless they are satlsfied that they give a true and fair view of the state of affalrs of the charitable company and of the incorning resource5 and application of resourtes. includlng the income and expenditure, of the charitable company for thai period. In preparin8 these financial statements, the trustees are Tequired to.. select 5Ultable accounting policies and then applythem consistentlv,. obsekve the methods and principles in the Charities SORP,. make judgments and estimates that are reasonable and prudent.. State whether applicable UK Accounting Standards have been followed, subject to any material departure5 di5c105ed and explained in the financial statements,. and prepare the financial statements on the goin8 concern basis unless it Is inappropTiats to presume that the charitable company will contlnue to operate. The trustees are re5pon5ible for keeping adequète attountfjng reeords that are sufficient to show and explain the charitable companls transactions and disclose wlth reasonable accuracy at any time the financial position of the charitable tompany and enable them to ensure that the financial staternents compty wrth the Companies Act 2006. They are also responsible for safe8uaTdin8 the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitie5. Di5¢1osure of inforrnbon to auditor The trustees confSrm that so far as they are aware, there is no relevant audit information las defined by sertron 418131 of the Companies Act 2¢X161 of which the charitable companVs auditor5 are unaware. They have taken all the steps that they ought to have taken as trustees in order to make them5elve5 aware of any relevant audit information and to Èstablish that the chafttable company's audkors are aware of that Information. Audltor In accordance with the company's article5. a resolution proposlng that Silver Levene IUKI Limited be reappointed as auditor of the company will be put at a Geneial MeetinR. Small companies emefflption This report has been prepared in accordance with the provisions applicable to companies entr(led to the small companie5 exemption. Thls report was apyoved bythe board of trustees on OS September 2023 and 51¥ned on its ￿half by: C Upson J Ca55Jdy

INDEPENDENT AUDITOR'S REPORTTOTHE TRUSTEESOF ARTISTSSTUDIO COMPANY OpSnlon we nave auuitea ine rinanciai statements or Artists Stuuits iompany ror the year enaea si Liecember 2U22 Whicn comprise the statement of financial activities, the balance sheet, the cash flow statement and notes to the financial 5tatment5, including a summary of significant accounitng policie5. The financial reporting fiamework that has been applied in their preparation is applicable law and United Kingdom AccountinE Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accountin8 Practice). In our opinion the financial statements.. eive a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.. and have been prepared in accordance with the requirement5 of the Charitie5 Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial 5tutements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, includinE the FRC'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. Concluslons relatlng to golng concern In auditing the financial statements, we have concluded that the trustees use of the goine concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a goinE concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this repDrt. Other information The other information comprises the information included in the annual report other than the financial staternent5 and our auditor's 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 we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doin8 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 stat8ment5 thernselve5. If, based on the work we h3ve perforrned, 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. Matters on whlch we are requlred to report by exceptlon In the IiEht of the 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 the Charities (Accounts and Reports) Regulations 2008 require u5 to report to you if, in our opinion.. the information given in the trustees. report is inconsistent in any material respert with the Trustees. Report- or sufficient accountlnE retoids have not been kept- or the financial statements are not in agreement with the accounting records,. or we have not received all the information and explanations we require for our audit.

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ARTISTS STUDIO COMPANY Icontlnuedl Responslbllltles of trustees As explained more fully in the trustees, responsibilities statement set out on page 5, the trustees (who are also the directors of the charitable cornpany for the purposes of company lawl are responsible for the preparation of the financial staternent5 and for being satisfied that they give a true and fair view, and for such internal control as the trustee5 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 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 charitable company or to cease operations, or have no realistic alternative but to do so. Audltorfs responslblllt5es for the audlt of the flnanclal statements We have been appointed a5 auditor under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objective5 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 auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not guarantee that an audit conducted in accordance with ISA5 IUKI 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 agEregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and re8ulation5 that could be expected to have a material irnpact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shaied with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity: Those laws and regulations considered to have a direct effect on the financial statements include the Charities SORP. Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdorr Generally Accepted Accounting Practice), Charities Act 2011, the Companies Act 2016, Employment Law, Health and Safety legislation, General Data Protection Regulation, Tax and Perisions legislation. It is considered that other than Charities Act 2011. there are no laws and regulations for which non compliance may be fundarnental to the operating aspects of the business. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non- compliance with law5 and regulations) cornprised of.. inquiries of management and those charged with governance a5 to whether the entity complies with such laws and regulations,. enquiries with the same concerning any actual or potential litigation or claims,. inspection of relevant legal correspondence,. review of board minutes,. testing the appropriateness of entries in the nominal ledger, including journal entries,. reviewing transactions around the end of the reporting period,. and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectivenes5 of the entity's controls, and the nature, timing and extent of the audit procedure5 performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISA5 IUKI. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. https'.//www.frc.org.uklauditorsresponsibilities. This description forms part of our auditorfs report.

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ARTISTS STUDIO COMPANY Icontlnuedl Use of our report This report is made solely to the Charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work ha5 been undertaken so that we might state to the Charity's trustees 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 Charity and the Charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Silver Levene IUKI Limited Statutory Auditor Chartered Certified Accountants 37 Warren Street London WIT6AD Date 0510912023 Silver Levene IUKI Limited 15 eligible for appointment as auditor of the Charity by virtue of its eligibility for ppointment as auditor of a company under section 1212 of the Companies Act 2006

ARTISTS STUDIO COMPANY STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNTI FOR THEYEAR ENDED 31 DECEMBER 2022 Notes Unrestricted Restricted Funds Funds Total Funds Total Fund5 2022 2022 2022 2021 As restoted INCOME Income from charitable activities Studio licence fee5 Other incoming resources Grant income 2,498,101 27,335 29,050 2,498,101 27,335 49,050 2,336,356 17,330 308,132 14 20,000 TOTAL INCOME 2,S54,486 20,000 2,574,486 2,661,818 EXPENDITURE Charitable activities 2,122,774 10,012 2,132,786 2,093,341 TOTAL EXPENDITURE 2,122,774 10,012 2,132.786 2,093,341 NET INCOME 431.712 9,988 441.700 568.477 OTHER RECOGNISED GAINSIILOSSESI: Gains and105ses on revaluation of fixed assets for the Charity's own use 1,336,323 NET MOVEMENTS IN FUNDS 431,712 9,988 441,700 1,904,800 RECONCILIATION OF FUNDS Total funds brought forward At I january 2022 3,560,781 3,560.781 1.655,981 TOTAL FUNDS CARRIED FORWARD AT 31 DECEMBER 2022 io 3,992,493 9.988 4.002,481 3,560,781 The notes on pages 12 to 19 form part of the financial statements.

ST55TUIXO COMPANY eAiAPICESIIEET A5 ATJI DÉCEM•ER201Z ZD zi FINEDASSEfS Tan8ible assets 7547,675 7,516.029 7547,675 7,516.029 CURREiifASSEts Debtors Cash &tbank and in hèrtd 312,861 603.902 407.349 1,025.3 1.432 705 UIEDITOAS: AmouniifMini due Ilhln thEy•• 1239 519 489,124 FIETCURRE14fASSETy¢UABILmESI 1322,7561 943,581 TOTALASSEfs LESSCURRENfuABILmES 7.224.919 459.610 OJTORS:AMOulltshlllw after moreth•nonEl4r 13.222,4381 I4￿98,819) NET ASSETS 4.Lk12MI FiINDS Unrestrfctedfunds Restritted funds Surplus fortheyèar Unre5rriCtedfund5 Re5thLtEdfunds Revaluation rEserves 214.458 L655,981 431,712 9.988 1.336,323 568.477 1,336,323 TOTALFVND5 4.OQ2MI Thesefinan¢il statements ha¥ been prepared In accordance with the wovislonsapplKab￿t0￿rnplnles 5ubjectto thE sm•1 umpanies rewme. ThÈ T¢utt4es a￿ sattsfied that the compan¥ Is entftled to exernptlon from the requirement to obtain an aud(( under SECtion 477 d the Companie5 Act 21K. HoweveT. theTruttee$4re s•tlsFed th•n aydlt 5$ requlred undertheCharknesArt ?011. Tnthe5' resppn5ibllttlÉs'. - The members have req￿red tr￿ cornpany to obtaln an audr( of Its fftn¥nclal statements ye¥r1ty quethon In attordanc wlth 5Ecbon 476 ofthe Campanie5 Att 2￿6,. -TheTrustees 3ckTrowledge thelr responslb11￿es for¢0mptyl￿ wlth Ihe WUir¢me4ts olthe •rtwlth rÉsp￿t0 accoundn8 records andthe preparatlon statÈmÈnts. Appv•ved b¥th¢ Iru5te¢soTh05 S*rnber Z023 aThd SIV￿QntheIrbehll11bV.. Trujtse Cilps•n Truiteè J Cassidv

ARTISTS STUDIO COMPANY CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Cash flows from operating activities Cash generated from operations 820,971 453,613 Invèsting activities Purchase of tangible fixed as5et5 Net cash used In Investlng actlv5tles 1122,4811 122,481 11,902,184) 1,902,184 Financin8 activities Proceeds from bank loans 1,426,OOC> 1213,8971 1,212,103 Repayment of bank loans (including interest) Net cash Iu5ed inllfrom financin8 activities 11,119,944) 11,119,944) Net decrease in cash and ￿$h equivalent5 Cash and cash equivalents at beginning of period Cash and cash equivalents at the end of period 1421,4541 1,025,356 603,902 1236,4681 1.261,824 1,025,356 Cash and cash equivalents at the end of period comprise.. Cash at bank and in hand 603,902 1,025,356

ARTISTS STUDIO COMPANY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 I. ACCOUNTING POLICIES Charity information Artists Studio Company 15 a private cornpany limited by guarantee incorporated in England and Wales. The registered office is The Chaplin Centre, Taplow House, Thurlow Road, London, SE17 20G. 1.1 Basls of preparatlon The financial st3tements have been prepared in 3ccord3nce with the Charity's memor3ndum and article of association, the Charities Act 2011 and 'Accounting and Reporting by Charitie5'. St3terMent of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFR5 1021 leffertive l January 20191 The financial statements are prepared in sterlin& which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statement have been prepared under the historical cost convention, modified to include the revaluation of properties at fair value. The principal accounting policies adopted are Set out below. 1.2 Going Concern At the tirne ol approving the financial statements, the trustees have a reasonable expectation that the Charity ha5 adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of 8ccounting in prep3ring the financial statements. 1.3 Income recognltion Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Income from studio licence f&es is recognised on 8 straight line basi5. Grants and donations are only included in the SOFA when the general income recogTTrition criteria are met. In the case of performance related grants, incotme tMU5t only be recogni5ed to the extent that the charity has provided the specified goods or services as entitlement to the grant only occurs when the performance related conditions are Met. 1.4 Expendlture and Irre¢overable VAT Expenditure is recognised in the financial statements a5 soon a5 there is a legal or contractual obligation comrmitting the Charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. Irrecoverable VAT 15 charged as a cost against the category of expenditure for which it was incurred. 1.5 Tangible fixed assets T8ngible fixed assets are initially measur&d at cost and subsequ&ntly measured at cost or valu8tion. net of depreciation and any impairment105se5. Fixed assets costing more than £1,000 are capitalised. Depreciatlon 15 recognised so as to write off the c05t or valuation of assets les5 their residual values over their useful live5 on the following bases.. Leasehold improvernents Motor Vehicle Fixtures & fittings Equipment Over the lease period or grant period 25% reducing b31ance 25% reducing balance 33.3% straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to resource expended in the Statement of Financial Activitie5.

ARTISTS STUDIO COMPANY

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

1. ACCOUNTING POLICIES (CONTINUED)

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other recognised gains and losses and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in net income/(expenditure) or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in net income/(expenditure) for the year.

1.6 Impairment of fixed assets.

At each reporting date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of the impairment loss (if any).

1.7 Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

1.8 Financial instruments

The Charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transactions price including transaction costs and subsequently carried at amortised cost using the effective interest method, less any impairment unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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ARTISTS STUDIO COMPANY

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

1. ACCOUNTING POLICIES (CONTINUED)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

The Charity has a defined contribution pension scheme. The cost of contributions made by the Charity to the scheme are charged as an expenditure as they fall due.

1.11 Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.12 Operating Leases

Rentals payable under operating leases, including any lease incentive received, are charged to the Statement of Financial Activities on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the term pattern in which economic benefits from the lease asset are consumed.

1.13 Fund Accounting

Funds held by the Charity are unrestricted general funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financila statements.

1.14 Taxation

The registered charity is exempt from income and corporation tax in respect of the charitable activities.

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ARTISTS STUDIO COMPANY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)

2. LEGAL STATUS OF the Charity

The Charity is a company limited by guarantee. The members of the company are the trustees named on page 3. In the event of the Charity being wound up, the liabilities in respect of the guarantee is limited to £1 per member of the Charity.

3. CHARITABLE EXPENDITURE

Basis Rent Direct Rates Direct Building insurances Direct Light and heat Direct Repairs and maintenance Direct Leasehold amortisation Direct Salaries Staff time Social security costs Staff time Pension costs Direct Legal and professional Direct Bank loan interest Direct Auditors' remuneration Direct Printing, postage and stationery Direct Telephone costs Direct Computer & website expenses Direct Bank, card and other charges Direct Travelling expenses Direct Motor expenses Direct Sundry office expenses Direct Provision for bad debts Direct Depreciation on motor vehicle Direct Depreciation on fixtures & fittings Direct Staff welfare/training/recruitment Direct Insurance Direct Gallery expenses Direct Grants disbursed to artists Direct	2022 Unrestricted Restricted Total £ £ £ 825,582 825,582 100,612 100,612 68,858 68,858 200,639 200,639 109,125 109,125 68,437 10,012 78,449 379,974 379,974 26,702 26,702 18,235 18,235 48,348 48,348 160,299 160,299 9,300 9,300 5,417 5,417 27,513 27,513 17,791 17,791 315 315 4,718 4,718 8,381 8,381 6,611 6,611 - - 3,984 3,984 8,402 8,402 9,197 9,197 10,745 10,745 3,589 3,589 - - 2,122,774 10,012 2,132,786	2021 Total £ 840,810 102,963 64,196 167,740 116,322 67,969 396,783 40,677 26,753 21,828 78,683 14,354 2,625 24,559 2,647 110 5,231 7,910 4,675 7,234 1,063 4,407 6,837 8,981 1,904 76,080 2,093,341

Salaries of key staff members are allocated to governance costs based on their time spent on management and administration.

4. STAFF COSTS

No remuneration was paid to the trustees in the year, nor were any expenses reimbursed to them.

The staff costs were: Wages and salaries Social security costs Pension costs Other staff Administrative The number of employees whose remuneration fell within the following bands: £90,000 - £100,000 The average number of full time equivalent employees during the year was as follows:	2022 £ 379,974 26,702 18,235 424,911 9 2 1	2021 £ 396,783 40,677 26,753 464,213 9 2 1

The number of employees for whom retirement benefits are accruing under a money purchase scheme totalled 9 (2021 - 9).

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ARTISTS STUDIO COMPANY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)

5. MOVEMENT IN TOTAL FUNDS FOR THE YEAR This is stated after charging: Operating leases - land & buildings Depreciation of tangible fixed assets Auditor's remuneration for audit services 6. TANGIBLE FIXED ASSETS Cost or valuation At 1 January 2022 Prior year adjustments (see note below) Restated at 1 January 2022 Additions At 31 December 2022 Depreciation At 1 January 2022 Prior year adjustments (see note below) Restated at 1 January 2022 Charge for the year At 31 December 2022 Carrying amount At 31 December 2022 At 31 December 2021	2022 £ 825,582 90,835 9,300 Leasehold land and bulidings Leasehold improvements Fixtures, fittings, equipment & motor vehicle £ £ £ - 872,985 33,365 7,272,442 (108,209) - 7,272,442 764,776 33,365 - 114,476 8,005 7,272,442 879,252 41,370 - 651,483 11,280 - (108,209) - - 543,274 11,280 - 78,449 12,386 - 621,723 23,666 7,272,442 257,529 17,704 7,272,442 113,293 22,085	2021 £ 840,810 73,439 14,354 Total £ 906,350 7,164,233 8,070,583 122,481 8,193,064 662,763 (108,209) 554,554 90,835 645,389 7,547,675 7,407,820

National Westminister Bank Plc has the 1st legal charge on the land and building and its associated assets.

The fair value of the leasehold properties has been arrived at on a basis of a valuation by JLL, Chartered Surveyors who are not connected to the company on 23 July 2021. The valuations were made on an open market value and fair value basis by reference to market evidence of transaction prices for similar properties and referencing increased demand in the market. The trustees consider that the carrying value is not significantly different from current market value at the end of the reporting period.

Investment Properties At 1 January 2022 Prior year adjustment (see note below) Fair value changes on investment properties At 31 December 2022	2022 £ 7,272,442 (7,272,442) - -	2021 £ 4,053,678 1,882,441 1,336,323 7,272,442

Prior year adjustments

In prior years, the additions to leasehold land and buildings were incorrectly classified as investment properties. These properties are used by the Charity to provide services for its charitable activities. Therefore, it should be accounted for within tangible fixed assets. Revaluation gains and losses are recognised in other recognised gains and losses and accumulated in equity in revaluation reserves. Adjustments have been made accordingly.

In prior year, the cost and depreciation of the disposal of leasehold improvements were netted off in cost and depreciation charge respectively. Adjustments have been made accordingly.

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ARTISTS STUDIO COMPANY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)

7 DEBTORS Trade debtors Prepayments Other debtors 8 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Bank loans Trade creditors Social security and other taxes Other creditors Accruals Government grants	2022 £ 8,478 268,148 36,235 312,861 2022 £ 999,440 55,131 1,451 20,247 143,250 20,000 1,239,519	2021 £ 18,173 275,820 113,356
		407,349 2021 £ As restated 258,561 61,053 13,451 19,489 116,570 20,000
		489,124

In the previous year, included in government grant was an amount of £180,000 relating to deferred income more than one year. A reclassification adjustment to creditors amounts falling due more than one year has been made. The amount of the correction did not affect the statment of financial activities.

9 CREDITORS : AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans Deposits held on account Government grants Creditors which fall due after five years are as follows: Payable by instalments FUNDS Analysis of fund movements Unrestricted funds Restricted funds The bank loans are secured by fixed and floating charges ov	2022 £ 2,729,861 332,577 160,000 3,222,438 2022 £ 415,042 Balance at Income Expenditure 1 Jan 22 £ £ £ 3,560,781 2,554,486 (2,122,774) - 20,000 (10,012) 3,560,781 2,574,486 (2,132,786) er the properties and undertaking of the Charity.	2021 £ As restated 4,430,385 288,444 180,000
		4,898,829 2021 £ 1,050,200 Balance at 31 Dec 22 £ 3,992,493 9,988
		4,002,481

10 FUNDS

General funds comprise those funds which the trustees are free to use in accordance with the charitable objects.

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ARTISTS STUDIO COMPANY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)

These funds are represented by: Tangible fixed assets Current assets Current liabilities Long term liabilities	2022 £ 7,547,675 916,763 (1,239,519) (3,222,438) 4,002,481	2021 £ 7,516,029 1,432,705 (489,124) (4,898,829)
		3,560,781

11 OPERATING LEASE COMMITMENTS

At 31 December 2022 the Charity had outstanding financial commitments for future minimum lease payments under non-cancellable operating leases in respect of land and buildings as follows:

Expiry date: Within one year Between two and five years In over fiver years	2022 2021 £ £ 771,214 757,977 1,629,388 2,288,595 400,418 494,634 2,801,020 3,541,206

12 PENSIONS

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost represents contributions payable by the Charity to the fund and amounted to £18,235 (2021 - £26,753).

13 RELATED PARTIES

The Charity trustees were not paid or in receipt of any other benefits from the Charity in the year neither were they reimbursed expenses during the year. No charity trustees received payment for professional or other services supplied to the Charity.

The key management personnel of the Charity comprise the trustees and the Chief Executive Officer of the Charity.

Remuneration of Key management personnel

Remuneration of Key management personnel
Aggregate remuneration 14 GRANT INCOME HMRC CJRS grant & Council grant Artists hardship grant	2022 £ 96,410 2022 £ 49,050 - 49,050	2021 £ 96,410 2021 £ 170,833 137,299
		308,132

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ARTISTS STUDIO COMPANY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)

15 CASH GENERATED FROM OPERATIONS Surplus for the year Adjustments for: Depreciation Provision for bad debts Interest Fair value gain on investment properties Movements in working capital: Decrease/(increase) in debtors Increase/(decrease) in creditors Cash generated from operations 16 NET DEBT RECONCILIATION Cash at bank and in hand Current bank borrowings 17 EVENT AFTER THE REPORTING PERIOD	1 Jan 22 £ 1,025,356 (4,688,946) (3,663,590)	2022 £ 441,700 90,835 - 160,299 - 94,488 33,649 820,971 Cash flows £ (421,454) 959,645 538,191	2021 £ 1,904,800 73,439 7,234 78,949 (1,336,323) (69,078) (205,408)
			453,613 31 Dec 22 £ 603,902 (3,729,301)
			(3,125,399)

On 31 May 2023, the Charity entered into a new property lease agreeement for 5 years to provide affordable spaces to the creative sector.

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