CHARrrY NUMBER . 1045067 COMPANY NUMBER . 03011540 (England and Wales) ARTISTS STUDIO COMPANY REPORT AND FINANCIAL STATEMENTS (A company limited by guarantee) FOR THE YEAR ENDED 31 DECEMBER 2024
ARTISTS STUDIO COMPANY Contents Page Legal and administrative information Trustees, report Independent auditor's report Statement of financial activities Balance sheet 10 Cash flow statement 11 Notes to the financial statements 12-18
ARTISTS STUDIO COMPANY Legal and administrative information for the year ended 31 December 2024 Constitution Artists Studio Company IASCI 15 a company limited by guarantee and a registered charity governed by its memorandum and article5 of a550ciation. Charity number 1045067 Company number 03011540 (England and Wale51 Directors 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 collertively referred to as trustees. Trustees C Up50n J A Goode J Cassidv J L Hammond Secretary C Upson Chief Executive Officer P Flack Reglstered Office The Handbag Factory 3 Loughborough Street London SEII 5RB Website www.asc5tudi05.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 Solicitors Ramdens Solicitors LLP Oakley House l Hungerford Road Hudder5field HD3 3AL Auditor PK Audit LLP I Parkshot Richmond TW9 2RD
ARTISTS STUDIO COMPANY Trustees, report (Includlng Dlrertors, report) ft>r the year ended 31 December 2024 The trustees are pleased to present their annual report together with the financial statements of the Charity for the year ended 31 December 2024. The tinancial 5tstements have been prepad 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 (effective l January 20191. Aims and objertives The objettives ofthe Charity are= To advance the education of the public in arts; To relieve poverty by assisting un-estsblished arbsts to become self-supporting through their art,- and To promote and improve art and the production of objects and works of artistic merit. To furtherthe above objectives the Charity in brief: Provides or assists in the provision of accommodation, studio space. equipment and materia15 for artists of promise who by reason of their poverty are unable to provide such accommodation. studio space. equipment and materials unaided. Promotes, encourages sponsors, produces or maintains and assists in the promotion, encouragement, sponsoring. production or maintenance of educational exhibitions and performances in public open space5 and elsewhere of paintings, sculpture, photographs, lithographs. engraving5. etchings. bronzes, enamels. jewellery, gems, films, animations, plays. musical works. opera. dance. drama. poetry, literary works and other works or events of artlstic. musical or literary merit- Provides, maintains and improves or assists in the provision. maintenance and improvement of premises of every description for exhibitions and or performances of paintings. sculpture, photograph5, lithographs, engravings, etchin85, bronzes, enamels. jewellery, gems. films, animations, play5. musical works. opera. dance. drama, poetry, 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 subjects and matters of artistic, musical or literary merit. OrganisatFon The board of trustees currently numbers four but the board may froTn time to time register an increase of members. Powers to appoint trustees rests with the board of trustees. A chief executive is appointed by thg trustees to mana8e the day-to-day operations ofthe Charity. Investment powers The trustees have discretion as to the manner in which funds are invested. Professional advice in this regard is sought through a financial advisorlbroker. Trustee indurtion and tralnin£ Trustees are provided with an induction pack containing key documents such as the Charity Commissions. welcome leaflet, The Essential Trustee, and a summary of the Trustee Act. New trustees are encouraged to spend time on induction and meetin8 key employees. Publlc benefit statement The Trustees have complied with the duty in section 1715) of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. The activities mentioned above demonstrate the public benefit arising throu8h the Charity's activities.
ARTISTS STUDIO COMPANY Trustees, report (including Directors. report) for the year ended 31 December 2024 Icontinued) Strurture. governance and management New trustees are appointed through recommendation and inter4iew 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 managemenL which the board review i.e. quarterly internal accounting / finance, monitoring of income and expenditure, staff salaries, studio rent reviews. property rent reviews, public benefit, public exhibition5 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 by 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 power5 and responsibilities approved by the trustee5. None of the trustees receive remuneration from the Charity. Tru5teeslDlrertOf5 The trustees perform the role of the directors for the purpose of the company law. Those who Served during the year and up to the date of signature of the financial statements were as follows: C Upson (Chairperson, Secretary) J A Goode J Ca55idy J L Hammond The Charivs buildings: The Charity operates affordable workspace and exhibition space within 10 buildings located across Greater London. Its buildings are held under various leasehold and freehold terms. Al its buildings provide affordable workspace and exhibition space to artists. makers and not-for-profit arts or8anisations. Achievements, performance and public benefft during the year Over the period. the Charity managed 7 projert spaces across our buildings. These are free venues where its tenants can exhibit their work to the public and stage talks and community events. Within these Spaces the Charity 5UPPOrted 29 exhibltions and events 5UPPOrting 183 art15ts and maker5 and attractlWl8 2,751 vi51tDf5. The Charity manages 3 public art galleries within the Handbag Factory, Vauxhall. 2 Balleries are for hire and offered at discounted hire rates to organisations and groups in need of support, l 8311ery 15 a free 8allery with the aim of promoting emerging artists. During the period these galleries stsged 24 exhibitions supporting 232 artists and makers and attracting 4,011 visitors. The Charity sUPPOrt5 open studio events across all our buildin85. These events are an opportunity for artists and makers within our buildings to open up their studios to the public. Durin8 the period the charity SUPPOrted 6 open studio events attracting 1,400 visitors. The Charity continued to support its tenants through its showcasing programme. The programme involves the production and broadcast of short films and intervieV showcasing and promoting the work produced by selected tenants. During the period, the Charity provided 550 affordable workspaces and 84 affordable desk spaces. 5UPPOrting 730 artists, makers and arts organisations. The Charitys occupancy levels across all its buildings totalled 97.95%12023: 98.56%). During the period ASC successfully renewed the lease on its Thurlow Road Building due to expire over the period. The building is now secure for several more years and will continue to provide affordable workspace to 135 artists and makers together with space for Turps Art School. ASC has successfully renewed the lease on its Empson Street building which was due to expire during the period. The building will continue to provide affordable workspace to 55 artists and makers for a fijrther 15 years.
ARTISTS STUDIO COMPANY Trustees, rÈport (including Dlrertors, report) for the year ended 31 December 2024 {continuedl During the period. in partnership with Chiswick House and Gardens. the charity developed 19 affordable artist and maker workspaces across several grade I historic buildings. located within Chi5wick House and Gardens W4. The first phase of the project was opened by the Deputy Major for Culture & Creative Industries, Justine Simons 08E. in April 2025. Phase 2 is estimated to launch over 2026. In June 2025 ASC purchased a 999 year lease on a new build property, Watkin Road HA9. The purchase price was discounted by 50% from market price through $106 Planning Gain Agreement. The project will provide 23 affordable artists and makers Workspa$. The London Borough of Brent provided a substsntial grant to help towards the buildings fit out Costs. The fit out commenced in July 2025 with the projects launch estirnated in December 2025. Fundraising artivities The Charity had no fund raising artivite5 during the year and prior year. Future plans The Charity's business include5 the acquisition of new properties at below market price or rent. It will consider free- hold or long-leasehold building5 offered at discount from market price or rent through $106 Planning Gain Agreement or iemporary use buildings offered at low or peppercorn rent. During the period A5C continued to returbish 47c Streatham Hill. The charity leased the property tor many years until it purchased the freehold in 2019. ASC carried out extensive refurbishment works during the period. including a new insulated roof and frontage, a new project space, toilets. floorin& kitchen. doors and si8nage. Works are estimated to complete in August 2025. ASC is planning a launch event in partnership with the London Borough of Lambeth in September 2025. ASC continues to seek new buildings for use as affordable workspace and exhibition space for artists and makers. The charity aims to increase the number of its affordable workspaces significantly over the next five years. ASC is an organi5ation driving positive change which includes an ambition to achieve net-zero emissions. In response to to thi5 aim ASC is actively improving the energy performance of its existing long lease and freehold buildings and prioritizing the acqusition ot new high ener&y pertorming buildings. Our acquisition of Watkin Road will increase the number of our hi8h energy performing building5 to 4. Financial position: The trustees are pleased that the finanual statements show a net income. and increased 8r055 income and net assets. The Financial Statements show é net income for ihe y¢tii lotdllii1 £440.291 12023- E560,6601, and a gr05s Income for the year totallin8 £3.018,99612023.. £2.958.924. including grants). The Charity has improved its financial position in terms of net assets to £5,543,43212023'. £5.103,1411. Reserves policy and risk management As at 31 December 2024 the Charity recorded funds totalling £5,543,432 includin8 fair value gain of £1,876,323. The Charity's free reserves include £425,123 returnable workspace deposits that may legally be used as working capital. The trustees have agreed a minimum free reseNe totalling £450,(K(). including £425,123 returnable workspace deposits. This is the Sum the trustees agree is a reasonable sum to safeguard against the Charity's identified risks. The trustee3 agree that within the total free re3eThe3 UP to £3.217.110 may be used to •cquire new buildi1i85, for building improvements or early repayments of Loans. The Chief Executive maintain5 a Major Risks Report detailing the risks the Charity is exposed to. The trustees are satisfied 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 assets. The trustees review the financial controls periodically to ensufe they meet the Charitvs needs. Investment Policy Tho Chariws investments are safeguarded in accordance with the Charity's governing document and havin8 regard to the Trustee Act 21)00. All the Charity's investments are held in low risk bank accounts.
ARTISTS STUDIO COMPANY Trustees, report (Including Dlrectors. report) for the year ended 31 Dember 20241continued) Trustee< responsibilities statement The trustee5, who are also the dirertors of Artists Studio Company for the purposes of company law, are responsible for preparing the Trustee5' Report and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees must prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Stsndards and applicable lawl. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming reSoUrS and application of resources. including the income and expenditure, of the charitable company for that period. In preparin6 these ftnariiidl statements. the trusrees are required to: select Suitable accounting policies and then apply them con5iStentiy; observp_ th• m@thods and principles in the Charities SORP- make judgments and estimates that are asonable and prudent: State whether applicable UK Accounting Standards have been followed, subjert to any material departures disdosed and explained in the financial ststements,. and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue to operate. The trustees are responsible for keeping adequate attounting records that are sufficient to show and explain the charitable companws transactions and disdose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial ststements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for takin8 reasonable steps for the prevention and detection of fraud and other irregularities. Dlsdosure of Informatlon to auditor The trustees confirm that so far as they are aware, there 15 no relevant audit information las defined by section 418131 of the Companies Act 20061 of which the charitable companvs auditors are unaware. They have taken all the steps that they ought to have taken as trustee5 in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. Audltor In accordance with the companvs articles. a resolution proposing that PK Audit LLP be reappointed as auditor of the company will be put at a General Meeting. Thls report was approved by the board of trustees and slgned on its behalf by. oode Trustee Date: 09 September 2025
INDEPENDENT AUDfTOR'S REPORT TO THE MEMBERS OF ARTISTS STUDIO COMPANY Opinion We have audited the *inancial ststements of Artists Studio Company Ithe'ASCI for the v@ar ended 31 December 2024 which comprise the statement of financial activities. the balance sheet, the statement of cash flows and notes to the financial statemer¢ts. including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Finonciol Reporting 5tondord opplicable in the UK (Jnd Republic of Irelond (United Kingdom Generally Accepted Accounting Prattl). In our opinion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 December 2024 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 requirements of the Companies Act 2LNJ6. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing IUKI IISAS IUK}l and applicable law. Our responsibilitie5 under those standards are further described in the Auditor's respon5ibilitie5 for the audit of the fint7ncial statements section of our report. We are independent of the ASC in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the FRCS Ethical Stsndard, 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 relating to going concern In auditin8 the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relatin8 to events or condition5 that, individually or collectively. may cast significant doubt on the company's ability to continue as a going 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 80ing concern are described in the relevant sections of this report. Other Infomiation The other information comprises the infomiation included in the annual report other than the financial statements 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, except to the extent otherwise explicitly stated in our report. we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit. or otherwise appears to be materially mlsstated. If we identify such material inconsistencies or apparent material mi55tatements. we are required to determine whether this gives rise to a material mi55tatement in the financial statements themselves. If, based on the work we have performed, we condude that there is a material misststement of this other info We have nothing to report in this regard. Oplnions on other matters prescribed by the Companies Art 2(#)6 In our opinion, ba3ed on the work undertaken in the course of the audtt". the information 8iven in the trustees, report for the financial year for which the financial statements are prepared, which includes the dirertors. report prepared for the purposes of company law, is consistent with the financial statements; and the directors, report included within the trustees, report has been prepared in accordance with applicable legal requirements.
INDEPENDINTAUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ARTISTS STUDIO COMPANY Matters on which we are required to report by exception In the light of the knowledge and understandin8 of the ASC and its environment obtained in the course of the audit, we have not identified material misstatements in the directors. report included within the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Art 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept. or retums adequate for our audit have not been received from branches not visited bv us.. or the financial statements are not in 38reement with the accounting records and returns- or certain disclosures of trustees, remuneration specified by law are not made- or we have not received all the information and explanations we require for our audit,. or the trustees were not entitled to prepare the financial statements in accordance with the Small companies regime and take advantage ofthe small companies, exemptions in preparin8 the trustees, report and from the requirement to prepare a strategic report. Responsibilities of trustees cxplaincd morc fully in thc ststcmcnt of tru5tces' responsibilities. the trustees, who are also the dTrreetors of the ASC for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of firbancial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements. the trustees are responsible for a5se55ing the ASCS ability to continue as a RoinR concern, disclosinE. as applicable. matters related to going conrn 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. Auditorfs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an audttor's report that includes our opinion. Reasonable assurance is a high level of assuran but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misststements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detectin8 irregularities. includin8 fraud, is detailed below. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations. our procedures included the following.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; we identified the laws and re8ulations applicable to the company throu8h discussions with directors and other management. and frorn our knowledge and experience ofthe sertor- we focused on specific laws and regulations which we considered may have a direct material effect on the financial Statements or the operations of the company. including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation,. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspectin8 legal correspondence. and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the companws financial ststernents to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of mana8ement as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud- and con3iderin6 the internal controls in place to mitisate risks of fraud and non-compliance with laws and resulations.
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ARTISTS STUDIO COMPANY To addre55 the risk of fraud through management bias and override of controls. we: performed analytical procedures to identify any unusual or unexpected relationships: tested journal entries to identify unusual transactions- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bia5: and investigated the rationale behind significant or unusual transaCtion5. In response to the risk of irregularities and non-compliance with law5 and regulations. we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation.. reading the minutes of meetings of those charged with governance- and enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedure5 described above. The more removed that laws and regulations are from the financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the tru5tee5 and other management and the inspection of regulatory and legal correspondence. if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or Collusion. A further description of our responsibilities is available on the Financial Reporting Council's web51te at: https:/lwww.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report 15 made solely to the charitable companws members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work ha5 been undertaken so that we might state to the charitable company's members those matters we are required to State to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable compan5 members as a body. for our audit work. for this report. or for the opinions we have formed. ¢E kqJart LLf Annle Lee {Senior Statutory Auditor} For and on behal* of PK Audit LLP. Statutory Auditor Chartered Accountants I Parkshot Richmond Surrey TW9 2RD Date..
ARTIST5 STUDIO COMPANY STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024 Notes Total Funds Total Funds 2024 2023 Re5toted INCOME Income from charitable activities Studio licence fees Other incoming resources Inv@£tmg_nt Incomo Grant income 2,976.189 25.048 17.759 2.746.661 21,332 io,gii 180,000 14 TOTAL INCOME 3.018.996 2,958,924 EXPENDITURE Charitable activities 2.578,705 2,398.264 TOTAL EXPENDITURE 2.578.705 2.398,264 INCOME 440,291 560.660 Transfer of funds NET MOVEMENTS IN FUNDS 440,291 SGO.660 Total funds brou8ht forward 5.103.141 4.542.481 TOTAL FUNDS CARRIED FORWARD io 5.543,432 5.103.141 Total funds held by the Charity are all unrestricted funds. The notes on pages 12 to 18 form part of the financial statements.
ARTISTS STUDIO COMPANY BAiANCE SHEET AS AT 31 DECEMBER 2024 21r24 20Z3 FD(EO ASSETS Tangible a55ets 8.145.Wl 8.171,269 8.145.OJ) 8.171.269 CURRENT ASSETS Debtors Cash at bank and In hand 275.305 737,334 288.367 564,324 1,012.639 852.691 CREDITO1. Amounts l¥llly du tlthln one year {259,3061 13.304.183) NEf CURRENT A5SEfsi(UABILITIESI 753.333 12,45L4921 TOTAL ASSETS LESS CURRENT LIA8ILTfiES 8,898.333 5,719,777 CREDITORS: Amounts falllng due after more than one year {3.354,9011 1616,6361 NÉT ASSETS 5,543,432 5.103,141 FUNDS UnStrIcted funds N@t intom• for the yoar Revaluallon reseNes Revaluation reSerS (Prior year adjustment) 3,226,818 440,291 L876,323 2,666.158 560,6f) 1,336.323 540.C TOTAL FUNDS s,431 5,103,141 The finandal statements were •pproved by the ljoard oltrustee5 and s18Ded on Its behall by. de Trustee Date: 09 September 2025 Company number 03011540 {En8land and Wales) 10
ARTISTS STUDIO COMPANY CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Notes Cash flows from operating activities Cash generated from operations 15 697,844 780,043 Investing activities Interest received 17,759 10,931 Purchase of tangible fixed assets Net cash used in investlng artivities 139,3171 121,5581 1180,0031 1169,0721 Financing artivities Cash inflows from new loan5 3,078.300 Repayment of loans (including interest) Net cash {us@d in)/from financlng artlvities 3,581,576) 1503,2761 1650,5491 1650,5491 Net increasel(decreasel in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at the end of period 173.010 139.5781 603,902 564,324 564.324 737,334 Cash and cash equivalents at the end of period comprise: Cash at bank and in hand 737,334 564,324 li
ARTISTS STUDIO COMPANY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 I. ACCOUNTING POLICIES Charlty Information Artists Studio Company is a private company limited by guarantee incorporated in England and Wales. The registered office is The Handbag Fattory. 3 Loughborough Street, London. SEII 5RB. 1.1 Basis ol prepar•tion The financial statements have been prepared in accordance with the Charity's memorandum and article of association, the Charrties Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their account5 in accordance with the Financial Reporting Standard applicable the UK and Republic of Ireland IFRS 1021 leffertive l January 20191. The financial statements are prepared in sterlin& which is the functional currency of the Chartty- Monetary amounts in these financial statements are rounded to the nearest £. The Charity meets the definitson of a public benefit entity under FRS 102. The financial statement have been prepared under the historical cost convention, modrfied to include the revaluation of properties at fair value. The principal accoLtnting policies adopted are set out below. 1.2 Judgements and key source5 of estirnatitin uncertainty In preparing the financial statements. the trustees make judgments. estimates and assumptions that affect the amounts reported for assets and liabilities. The estimates and associated assumptions are based on historical experience and other factors that are conSided to be relevant. Actual results may differ from these estimates. The estllTldLeJ diid uiider lyirig d55urrryLiuvJs orE WEViEwed un ¢lll ongoin8 ba515. Flev151on5 to accountlng estlmates are recognlsed in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. One key area of estimation is the valuation Df properties. The determination of the fair value Of carrying value of property for financial reF)Orting purposes reqlbires the use of professional judgment and involves consideration of a wide range of factors including location. condition. rental income. market trends, and legal circumstances. Property values represent a significant portion of the companrfs assets and have a material impart on the financial Statements. including net assets and related ratios As at 31 December 2024. the properties have been ststed at a valuation of £7.812.44212023: £7.812.442. reststedl. 1.3 Going Concern At the time of approving the financial statements, the trustees have a reasonable expertation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Charity continues to adopt the going concern basis of atcounting in preparing the financial statements. 1.4 Income recognition Income Is recognised when the Charrry is legally entr(led to after any perfonnance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Income from studio linCe fees Is recognised on a 5trai8ht line basis. Other income, services recharged and miscellanous income. are recognised in the period in which they are receivable. Bank interest is recoEnised at the time the investment income is rÈcèived_ Grants and donations are only included in the SOFA when the general income recognitlon criteria are met. In the case of performance related grants. income must only be recognised 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. 1.5 Expenditure and irrecoverable VAT Expenditure is recognised in the financial statements as soon as there 15 a legal or contrartual obligation committing the Charitv to that expenditure. it 15 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 is charged as a tost aeainst the cateEOry of expenditure for which it was incurred. 12
ARTISTS STUDIO COMPANY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 I. ACCOUNTING POUCIES (CONTINUED) 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Fixed assets costing more than £1,000 are capitalised. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases- Freehold & Long-term leasehold property - Over the lease period Leasehold improvements Over the lease period or grant period Motor Vehicle 25% reducing balance Fixtures & fittings 25% reducing balance Equipment 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 Activities. 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 incomel(expenditurel or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in net income/lexpenditurel for the year. 1.7 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). 1.8 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. 1.9 Financial instruments The Charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther 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. rEI Idi ILlt11 dllu EldOlllIt¢> 41 e IJIISVI WIIII LI1¥ II¢L dlllLlUllI) yi f>viiL¢U 111 Lllf IIII•IIL101 )L01riiiriiu. wiirii li Iri ¥ IJ o Iv¥diiy 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 liabilitv 5imultaneouslv. 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 15 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 indicator5 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 flow5 discounted at the asseys original effertive interest rate. The impairment loss is recognised in net income/lexpenditurel for the year. 13
ARTISTS STUDIO COMPANY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 I. ACCOUNTING POLICIES (coKfiNUED) 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 15 recognised in net income/lexpenditurel 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 reward5 of ownership are retained but control of the a55et ha5 transferred to another party that is able to sell the asset in its entirety to an unrelated third party. Basic financial liabilities Basic financial liabiliiies, including creditors and bank loans a initially recognised at transaction price unles5 the arrangement constitutes a financin8 transartion. 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 obli8ations 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 a3 non-current liabilities. Trade creditor5 are re£osni5ed initially al transaLLiun pi li< drid subsequently rneasured at amortised cost using the effective interest method. Derecognition of financlal liabilities Financial liabilities are derecognised when the Chariws contractual obligations expire or are discharged or cancelled. 1.10 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 a5 an expense when the Charity is demonstrably committed to temiinate the employment of an employee or to provide termination benefits. 1.11 Retlrement benefrts 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. 1.12 Government grants Government grants are recognised at the fair value of the asset received or re1vable when there is reasonable assurance that the grant conditions will be met and the grants will be reived. A grant that specifies performance conditions is recognised in income when the performance conditior15 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 5atlsfied is recognised as a liability. 1.13 Operating Leases Rentals payable under operating leases. including any lease incentive received. are char8ed to the Statement of Financial Activitie5 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. 1.14 Fund Accounting Funds held by the Charity are all unrestrirted funds which can be used in accordance with the charitable objects at the discretion of the triJ5tees. There are no restrirted fund5. 1.15 Taxation The registered charity is exempt from income and corporation tsx in respect of the charitable artivities. 14
ARTISTS STUDIO COMPANY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 ICONTINUEDI 2. LEGAL STATUS of the Charity The Charity is a company limtted by guarantee and incorporated in En8land and Wales. Its giSted office is The H3ndba8 Factory, 3 Loy8hborough Street, London, SEII 5RB. The mefflbers of the company are the trustees narned on pa8e 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 Chaiity. 3. CHARITABLE EXPENDITURE Basls Charitabje 2024 Total 202J Tot•1 Rent Rates Building insurances Light and heat Repairs and maintenance Leasehold amortisation Salaries Social seturity costs Pension costs stsff welfareltraininglrÈcruitment Travelling expenses Motor expenses Printin& postage and staiionery Telephone costs Computer & website expen5e5 8ank, card and othèr tharges Insurance Gallery expenses Sundry expense5 Le8al and profe5sior4al Auditors, remuTheration Bank loan iiterest 816,& 173.401 9S.101 2W),309 140.805 61.677 5Q3,710 47.757 23.735 7.630 6.837 5.441 2.049 30.959 11889 422 11.026 3.187 9.698 106.755 10.8 215.105 2.698 2.241 1.668 816,805 173.401 95.101 2,3( 140,805 61.677 5LVJ.710 47,757 23,735 7.630 6.837 5,441 2,049 30.959 12.889 422 11.026 3.187 9,698 I(.755 10.8 215,105 2,698 2.241 1,668 2.578 705 840,042 163,389 76.040 245,664 119,864 89,338 394,611 34.798 17,766 IL245 6.745 8,674 1,721 30.489 7,6 322 16.113 2.656 6,075 79.654 Direct Dirert (irect th.re fhre Staff time Staff time threct Oirett "rert Oire tmrert Dirert "re 227,7 8ad debts Oepreciatron on motorvehicle Depreciation on fixture5 & frttings Crect "rect 2,988 4,083 2 398 264 Salaries of key staff members are allocated to support costs based on their tirne spent on managÈment and adminisiration. The support costs for the year wa5 £189,30312023.. £155.7321 4. STAFF COSTS No remuneration wa5 paid to the trusiee5 in the year. nor were any expenses reimbursed to them. ZOZ3 The stsff costs were.. Wages and salaries Social security ¢05ts Pension costs 509,710 47,757 23,735 581.202 394.611 34,798 17,766 447.175 The average number of full time equivalent employees during the year wa5 as follow5: Other staff Administrative li The number of employees whgse remunerntion fell within the followin8 bands: £tsO,(Qi. £140.to) The number of employees for whom retirement beneffts are accruing under a money purchase scheme totslled 13 12023- 81. 15
ART15f5 STUDIO COMPANY NOTES TO THE FINANCIAL STATEME1475 FOR TrIE YEAR ENDED 31 DECEMBER 2024 IcopmNUEOI MOVEME14T IN TOTAL FUNDS FOR THE YEAR 1024 2023 This is stated aftef char8in8'. Operin8 leases- land & buildings Depreciation of tangible fixed assets Auditor's remuneration for audit serwces 816.805 65,586 10.8 840.04Z 96.409 TANGI8LÉ FIXED ASSÉT5 Freehold Land and bulklirys Leasehold Land and bulldings FL¥tures, BuildlnÉs ffttin8S. Impro¥ements equipment & motor¥ehkbÈ Totsl Cost orvalu•tlon At l January 2024 Prior year adjustment (Fairvalue changes) Restated at l January 2024 Additn5 Dtsposals 1.882.441 540.IX() 2.421441 s.3.(KIl 1.059.255 41,370 8.373.067 $40,000 .913.067 39,317 115.2921 S3.(1)1 1,059.255 38,171 41.370 1,146 115,2921 At 310ec4mbgr 2024 2012041 SA90mi 1.097,426 27.224 S,937,?2 Depre¢i•iwJn At l Jarsuary 2024 Charge for the year Oisp05a15 711,061 61,677 30,737 3,XJ9 115,2921 741,798 65,586 115.2921 At 31 December 2024 772.738 19,354 792.092 Net 8ook Value At 31 Oecember 20Z4 2A12A41 sa.1 ?70 8.145.OQO At 31 DecembeT 2023 fRestotedJ .•22.441 S.390.001 348.194 10,633 5,171,2Sg National Westminister Bank PIC hasthe 1st legal charge on the larKI and bulldings and Its ass(Kiated assetsto the amount of £3.022yS. The fair value of the properties has been arrlved at on a basis of è yaluai1L by JLL Chartered 5ur¥eyors who are not connected 10 the cornpany on 23 July 2021. The valuations We ¥nade on an open rnarket value and fair value basis by refence to Tvarket ewidernce of transaction prices for similar properties ènd lenCing increased demand in the markeL The trustees consSder that the carryin8 value is not sign+ficart* different from £urreDt rnarket value at the end of the reportin8 pertod. Prlor ye•r adjwiment A prSor year adjustment has been made to fixed assets and revaluation reserve of £540,IX¥). Oue to a rnathematical mistake further adjystmeftts affecting prior yeafs have been made to the carrwng value of the properties in ihe tarygible fixed assets, whsch in turn affe£ted the ton6ible fixed assets End total funds brought forwafd for prior years. The adjustmerts had the following effect on the balance sheet as shown on the balance sheet arbd in note 6 to the accounts. The has been no impacl on the net income for the prioryear. 11 the propertie5 were stated on an historical cost bays rather than a froir value basis. the amounts would have been included as fo51ows= 2024 21)23 Cost Accumulated deptcciation Ca¥rying amouni 5.936.119 5,936.119 5,936.119 S.936.119 7 DEBTORS 2021 2023 Due within year Trade debtors Prepayments Other dcbtors 1.133 240,082 24.090 265,30S 3.608 252,157 278,367 re after more than ont year Other debtors io.c#y) io.ooo Totsl Debtors 175305 288.367 16
ARTISTS STUDIO COMPANY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (COlNUE0) 8 CREDITORS: AMOUNT5 FALUNG DUE WITHIN ONE YEAR 2024 2023 Bank loans Deposits held on account Trade creditors Social security and other taxes Other creditors Accruals 81,538 7,062 40.519 3,064.034 900 67,081 12,853 17,535 141,780 3,304,183 25,388 104,799 259,306 CREDITORS . AMourS FALUNG DUE AER MORE THAN ONE YEAR 2024 2023 Bank loans Deposits held on account 2.936,840 418,061 3.354,901 242,515 374,121 616,636 Creditors which fall due after five years are as follows: 2024 2023 Payable by instalments 2,230,611 184,019 The bank loans are secured by fixed and floating charges over the properties and undertakin8 Ot the Charity. 10 FUNDS Analysis of fund movements Balance at l Jan 24 (Restated) Income Expendlture Balance at 31 Dec 24 Unrestricted funds Revaluation reserves 3,226.818 1.876.323 5,103,141 3.018.996 12.578,7051 3,667,109 1,876,323 5,543,432 3x118,996 2,578,705 Unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitable objects. These funds are represented by. 2024 2023 Restated Unrestricted 8.171,269 842,691 13.304,183) 10,000 1616,636} 5.103.141 Unrestricted 8.145,000 1.002,639 1259,3061 io,¢xrfJ 13,354,901) S.$43.432 Tangible assets Current assets Current liabilities Non current assets Long term liabilities 11 OPERATING LEASE COMMITMENT5 At 31 December 2024 the Charity had outstandin8 financial commitments for future minimum lease payments under non- cancellable operating leases in respert of land and buildings as follows: Expirydate: 2024 2023 Within one year Between two and five years In over five years 671,381 1.062,785 743,488 2,477.654 629,479 1,094,125 306,202 2,029,806 17
ARTISTS STUDIO COMPANY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 (CONTINUED) 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 £23.735 12023- £17,766). 13 RELATED PARTY TRANSACTION During the year the Charity: received £4,176 as coworking membership fee from David Le Lay Ltd represented by a trustee. received £51,290 as Studio fee from Bainbridge Print represented by the spouse of the CEO. paid £11,250 as consultancy fee for Gallery Hire to BainbridRe Print represented by the spouse of the CEO. All transctions were condurted on nomial commercial terms. There were no amounts outstanding at the year end12023- £nill. The key management personnel of the Charity comprise the trustees and the Chief Executive Officer of the Charity. Remuneration of Key management personnel 2024 1023 Ag8re8ate remuneration 132,504 128,836 2024 2023 14 GRANT INCOME Council grant 180,000 180.000 15 CASH GENEI(ATED FROM OPf IIATIONS 2024 2023 Net Income for the year Adjustments for: Depreciation Interest payable Interest received Movements in working capital: Decreasellincreasel in debtors Increase/ldecreasel in creditors Cash generated from operatsons 440.291 560,660 65.586 215,105 {17.7591 96,409 227,797 110,931) 13,062 118,4411 by I.IS44 24,494 1118,3861 1110,043 16 NET DEBT RECONCILIATION 01 Jan 24 Cash flows 31 Dec 24 Cash at bank and in hand Loan due within one year Loan due more than one year 564,324 {3.064.0341 1242,5151 12,742225) 173,010 2,982,496 2,694,325) 461,181 737,334 181,5381 12.936,840 (2,281,044 18