Company number: 03589539 (England and Wales) Charity number: 1076251 Baltic Flour Mills Visual Arts Trust (A Company Llmlted by Guarantee) Raport and Flnanclal Statements For the Year Ended 31 March 2025 Ballic Flour Mllls Visual Arts Trust (A Company Limited by Guarantee) CONTENTS Page Trustees, Report including the Strategic Report Independent Auditors, Report 14-17 Consolidated Statement of Financial Activities 18 Consolldated Balance Sheet 19 Charitable Company Balance Sheet 20 Consolldated Cash Flow Statement 21 Notes to the Flnanclal Statements 22-45 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 March 2025 REFERENCE AND ADMINISTRATIVE DETAILS Charity number.. Company number.. Registered office: 1076251 03589539 Baltic Centre for Contemporary Art, Gateshead Quays, South Shore Road, Gateshead, Tyne & Wear, NE8 3BA Advlsors Auditors Bankers S&W Audit 17 Queens Lane, Newcastle upon Tyne. NE11 RN Virgin Money Northumberland Slreet, 132-134 Northumberland Street, Newcastle upon Tyne, NE17DG Trustees: A W Donaldson C Donovan J G Gambl6 KPLang M A Sealy T R Stirling Love K C Wexford Campbell P C Gentry TJGray J Clblc N J Catterall C S L Staehr V J Barron JPBe8r K J Femandes H P Kelly (Resigned 25 July 2025) (Resigned 25 July 2025) (Resigned 25 July 2025) Key Management Personnel: S Munro- Director l Aristizabel- Head of Curatorial and Public Practice K Gray- Director of Enterprise and Public Value (Resigned July 2025) Baltic Flour M511s Vlsual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 March 2025 The Trustees (who are also the Directors of the charity for the purposes of company law) present their annual report and audited financial statements of Baltic Flour Mills Vtsual Arts Trust for Ihe year ended 31 March 2025. BALTIC Annual Rgvlew, 2024125 BALTIC has spent the year delivering on our mission, vision, purpose and values, being guided by these as we navigate both the challenges and opportunities in a time of decreasing public funding. BALTIC continued to provide a fre8 inclusive public space, a beacon, which inspired and connected our communities and audiences through the best contemporary art and creativity, welcoming both locals & visitors throughout the year. We focused on enhancing new income streams and developing an endowment, whilst concurrently controlling our costs. Our Mlsslon We are a home for cr8atSvSty and curloslty we create new experienc8S Our Vlslon We believe in a world where art connects and empowers people, building empathy and klndness we are collaborativ8 Our Purpose Wg forge positive futures and grow belonging we generate value for all. Our Values Progressive.. A progressive organization is ethical and innovalive. Creative.. A creative organization is curious and courteous. Listening.. A listening organisation is relevant and responds. Accountability: An accountable organisation is Iransparent and rigorous. Courage: A courageous organisation is bold and takes risks. Equity: An equitable organisation values equality. inclusion. diversity and belonging. Sustainability: A sustainable organisation is resourceful and conscious Organisation Characteristics and aims. Clear Cause- we know and understand our shared cause. Collaborative model- everyone is linked through shared aims. Legitimacy through intersection of Community, Culture and Commerce. Creative Ambition - collaborative with the sector and growing cultural value. Access- collaborative with the public and growing social value. Sustainability - collaborative beyond the sector and growing economic value. Baltic Flour Mills Visual Arts Trust (A Cornpany Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Contlnued) FOR THE YEAR ENDED 31 March 2025 ORGANISATIONAL HIGHLIGHTS 2312024 Gallery of Sanctuary - awarded by City of Sanctuary UK in 2022 rt is now foundalional to the purpose of the centre. This recognises our Neighbourly programme which supports the social, communal, faith, language, and vocational lives of newly arrived communities across the borough. We share the resources and facilities available at our organisation, working collaboratively with artists in creative processes that bring people together. Our community co- produces a programme that includes an annual Open Iftar. Holi and Nowruz celebration, monthly Language Cafés and Creative Sessions, a weekly Internalional Art Club and regular volunteer and employment opportunlties. BXNU Secured our leading partnership in teaching and learning with Northumbria UniversSty, contlnulng a 3-year agreement with enhanced focus on Research. This collaboration hosted a major internatlonal conference. Front Room - Radical Hospitality and Kindness as practice. An improvised response to a financial ch8llenge that has led to innovative new practice and leadership for BALTIC across the wider sector. Front Room with its pay what you feel café and kind conversation space handed out over 60,000 cups of fr8e hot drinks over the year and saw an incr8ase of 100 % in uptake of CREW tours of the exhibition programme. Blrd8, Bees, Blkes and Trees - Between April 2024 and March 2025, thls prolect-a collaboration with North East Young Dads & Lads (NEYDL) and Newcastle University, funded by over £584,000 from The National Lottery Communlty Fund. The initiative empowers young fathers to develop new green skllls-beekeeplng, blke malntenance, horticulture, arboriculture-and share them publicly. By engaging 180 young men, 30,000 schoolchlldren, and 10,000 local resld8nts, the project creates a ripple effect in environmental awareness and action. Actlvlties Include guided bee-talks from Baltic's rooftop hives, kittiwake bird walks, climate clubs In the Front Room, cycling tours, artistic workshops, and "down-on-your-doorstep" tours tailored for families with prarns and mobility aids. The goal.. shift perceptions of young dads as climate role models and embed nalure into daily urban life. Cruclally, the programme includes the creation of a "Spaces for Nature Garden" at the front of the Baltlc bulldlng planned to be delivered in 2025. This green space transfoms the gallery entrance into a welcoming, biodiverse environment-featuring pollinator-friendly plants and gathering areas-bringing the project's ethos into the public realm and offering a tangible daily reminder of urban nature's value. Health and Safety Comprehenslve Tralnlng Programme Established an organisational wide, top to bottom, approach to ensuring best practice in Health and Safety on accredited courses continued with an emphasis on Health and Safety Culture throughout the organisation. The Baltic Endowment for Creatlve Futures - Baltic believes in the power of art and creativity to bring joy, build bridges and connect communities. This new restricted fund will support the creative spark of the North East in P8rp8tuity through annual investment income to form a lasting legacy. There is a target to raise £10,000,000 which will create income to contribute to. Baltic's UK & international leadership in contemporary art, supporting children and young people to participate in the arts, support our iconic building and connect communities through creative wellbeing. Baltlc Flour Mills Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 March 2025 Financial Review The financial statements for the year to 31 March 2025 report a surplus of £1,532,914 (2024- £70,879). Pr5nclple funding sources During the financial year 2024125, BALTIC received exceptional financial support arising from the reallocation of pension liabilities and the establishment of the BALTIC Endowment Fund. These items are non-recurring, specific to this reporting period, and are not related to the organisation's routine operational funding requirements. Economlc Impact We provide over 100 high quality jobs with an annual salaries investment in excess of £2.6m. Over the last two decades the exlstence of BALTIC has driven up propety value in Gateshead Quays, leading to Inward investment and regeneration and directly strengthened regional Identity and tourism appeal. BALTIC is an iconic brand for Gateshead, Newcastle and the region. For every £1 invested by Galeshead Council we generated £48. Uslng a conservative multiplier of 1.7, BALTIC generates an estimated £48.4 million annually in total economlc impact. Supporting wider jobs In hospitality. retail. and transport, stimulating local supply chains, and driving re- spending by employees, businesses and visitors connected to its operations. BALTIC place based impact is a vital cultural and economic engine for the region. Brand and Audlence Hlghlights From April 2024 to March 2025 BALTIC welcomed 362,852 vislts. In the 2024 (calendar year) Baltlc has been confirmed as being the second most visited free attraction (and the most visited gallery or museum) In 2024 In the North East In VlsltBritain's annual published report. On average, visits to Baltic last8d for 93 minutes in 2024125, with almost a thlrd (290/0) lasting two hours or more. The visits by origin profile remains consistent to the previous year with those from Tyne and Wear (43Y.) and the rest of the North East (22Yo) still accounting for almost two-thirds (65%) of all vlslts. The age profile of visitors sees the proportion of under 16s (21%) is at its highest level with 25-24 being the largest ratio at 32 /0 followed by 240/0 being 45-64. In 2024125 Families remained the largest visit mode at Baltic, increasing by 3-percentage points from 41 /0 in 2023124 to 44.￿. There has been a significant incr8ase in the proportion of Engaged families (from 6 % to 9°/0 in 2024125) - ￿presentIng a real terms increase of 6k Engaged family visits. In 2024125, the proportion of non-white elhnicity (black or people of colour) visits remained in line with the previous year at 10°h, which in real terms is 33k. slgnificantly higher proportionally than pre-covid figures at Baltic of 2 /0. 2024125 saw a slgnificant increase in visits identifying as Dldeaf, disabled or having a bng- term health problem, increasing from 60/0 to 10°k. In real term5 the number of Dldeaf visits has increased by 11k from 22k in 2023124 to 33k in 2024125. There has been an uplift in exhibition driven visils in 2024125, with just under 1 in 5 (18Yo) visits attracted by the exhibition programme. Overall, intentional visits remain at the high level of 73Yo. 250/0 of thosa on intentional visits came to Baltic for exhibition-specific reasons (significantly higher than the average 18 % ). Incidental visitors were more 'building-focused', more likely to como to Baltic for a general visit to the see the building {51YD vs 43¥.) or to see the views of NewcastlelGateshead {10°/o vs 7°A). Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 March 2025 From 2019120 to 2022123 Baltic's Net Promoter Score (NPS) was consistent, increased significantly to 82 in 2023124 and has been maintained at 82 for the second year running. Visitors on 940A of visits said they were either very likely (760/0) or quite Ilkely (18%) to visit again in the future, in line with the figure of 95% recorded last year. All exhibitions were rated highly, whilst the Frankl Raffles photography retrospective was the most highly rated exhibition, with 640/D rating it as 'very good, and a further 32Yo as 'quit6 good,, this was significantly higher for those with intellectual outcome (86 /0 'very good.). 79 /0 of visits to Baltic in this period included the Baltic Open Submission exhibition . 600/0 rated lh8 exhibition as 'very good,, with a further 35Yo rating it as 'quite good,. The significant uplift in front of house stafflBaltic Crew being the most enjoyed element of a visit in 2023124 (52Yo) has been maintained and improved upon in 2024125 (56Yo). The exhibition programme, in terms of affording the opportunity lo see work visilors couldn't see elsewhere (54Y.) and the exhibiting artists (530A) were also standout elements for the majority of vlsitors. Programme Hlghllghts 24-25 Over the course of April 2024 to March 2025, BALTIC maintained a vibrant balance across its curatorial prOgramM￿SUpportIng activist histories, environmental narratives, local talent, and interactive engagement. From Franki Raffles, urgent social-documentary to Mani Kambo's spiritual textiles, from community-led marketplaces to playful interactive installations, the gallery demonstrated deep commitment to indusion, reflection, and sustainability. This layering of plural voices and experimental practices underlines BALTIC'S ongoing role as a regionally rooted yet globally relevant institution, offering intellectually rich experiences for broad audiences through 2024-25. From April 2024 to March 2025, BALTIC delivered a compelling and wide-ranging exhibition programme, engaging visitors with diverse voices-spanning activism, environmental reflection, material innovation, and playful communlty 18d experiences. Baltlc Open Submisslon, In assoclatlon wlth Fenwlck 16 March- 01 September 2024 A regional creative showcase featuring up to 100 WOrks￿alntlng, sculpture. photography, video-submitted by self- taught and emerging artists from the North East, alongside contributions from established practitioners. Highlights included photography by Phyllis Christopher, immersive underground-inspired sculpture by Holly Hendry, and a new unseen painting by comedy legend-cum-artist Vic Reeves (Jim Moir). This democratic plafform graced Baltic's Ground Floor gallery, nurturing local talents and promoting cultural parlicipation. Franki Raffles: Photographyi Activlsm, Campalgn Works 11 May 2024- 16 March 2025 A major retrospective spotlighting the radical work of feminist activist-photographer Franki Raffles (1955-1994). The exhibition encompasses around 300 previously unprinted images-drawn from an archive of 40,000 negatives- covering her 1984-94 period across the UK, USSR. China, Zimbabwe, Israel, and Palestine. The Guardian praised the powerful documentation of women's resilience in induslrial, poverty-stricken and politically tumultuous settings. Visual documentation of low-paid, often invisible women's labour. Archival campaign work, like domestic-violence posters and globally-resonant activist narratives. Baltic Flour Mllls Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 March 2025 Joanne Coates: The Vasseur Baltlc Artists, Award (aka Middle of Somewhere) 11 May- 17 November 2024 Emerging photographer Joanne Coates portrayed young, Iow4ncome women in remote rural UK locations like the Orkney Islands and Yorkshire Dales. The show combined portraits and landscapes with film and audio, evoking Issues of rural poverty, climat8 anxiety, and precarious livelihoods. Coates connected with Franki Raffles, documentary lineage, highlighting rural class and gender inequality In evocatlve visual form. Hannah Perry: Manual Labour 22 June 2024- 14 January 2025 A Level 4 gallery commission from Llverpool-bom artist Hannah Perry, explorlng th8mes of labour, class, gender, and mental health through industrial materials-sheet metal, car lacquers. hydraulics and body wrap. A dynamic sculpture and film work dissect the emotional toll of precarity and the strains of working-class life. Notable aspects included a visceral, material translation of personal and regional Identity and a critique of capitalism's impact on working-class physical and mental landscape Leap Than Look: Play, Interact, Explorn 12 October 2024- 1 Jun8 2025 An interactive, tactile, and sculptural installation brimming with colour and engagement-appealing to all ages. Thls exhibition invited dlrect visltor interaction, blurring lines between art and play. It created a playful space for sensory discovery, social interaction, and Inclusive participation. We All Came Here From Somewhere 23 November 2024 - 9 February 2025 A collaboration with the learning department thls was a community-focused showcase developed with Baltic's Neighbourly programme. It foregrounded collaborative contributions from migrant and refugee groups, presenting objects. artwork, and stories highlighting inclusivity and place-making. This was an important display I the heart of Baltic which called for social integration and cultural div8rsity. reflecting Baltic's civic mission. Manl Kambo: Ax'is Mun-di 7 December 2024 - 1 June 2025 New commlssion from Newcastle-based mullidisciplinary artist Mani Kambo. Rooted in her Sikh heritage and superstition, the show featured imagery through textiles, printmaking, dyeing, and p8rfomiative process. It dealt with ritual, reincarnation, caste m8mori8s, and mysticism Kambo began herjourney to be an artist through Baltic's Young People's programmes and navigates ancestral histories, spiritual symbolism-offering a poetic meditation on identity. Heartwood (Sycamore Gap) 23 OGtober 2024- 26 January 2025 Printmaker Shona Branigan's creation. featuring bespoke prints derived from cross-sections of the famed Sycamore Gap felled tree on Hadrian's Wall. Balllc Flour Mills Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Con¢lnued) FOR THE YEAR ENDED 31 March 2025 Photo-S8nsitive 20 November 2024- 23 March 2025 A new lightbox commission conceived by Baltic's Young Producers, focusing on photographic and light-based artwork. Showcased youth-led curatorial development in large-scale public displays. Mlchael Rakowilz: The Waiting Gardens of the North Until 26 May 2024 This living installation revitalised Baltic's Level 4 with edible and aromatic plants. herbs, and trees a Northern reimaglnlng of the Hanging Gardens of Babylon-shaped by local migrant communities and centred on a new commlssloned artwork. Supported by a grant from the Imperial War Museum the impact of the project was to combine ecological and cultural symbolism. sensory-engaged and community-rooted. Stepplng Softly on the Earth Until 14 April 2024 An environmentally-themed survey thatjolned together over 20 non-western and Indigenous artists to challenge human-centric worldviews. Sourced with sustainability at its core reused materials, local AV. mlnimised travel. Supported by the British Council this project positioned Baltic as a model for eco-aware exhibition-making, with ethically driven practices. Ev8nt8 & Pop-Up8 Proj8Ct Art Works: Residential (S8pt 2023-Feb 2024), staged residencies and neurodivergent P8er collaborations. Reveal - Fine Art 2025 (May), Northumbria University fine art graduates presenting at Baltlc. As part of the Artists Development Programme we initiated long-term collaborations with Sue Loughlin - a local artist, NewBridge studio holder and Baltic f￿elance artist- who is developing a project, MOTHEROTHER, that seeks to support artists and curators who have caring responsibilities., and the Making Time group, which is a virtual group for neurodivergent artists, writers and researchers in performance I visual arts set up by Grace Denton. We also hosted a networking event for the artists participating in Hinterlands. Learning & Clvlc Engagement Hlghllghts BALTIC'S learning programmes provide opportunilies for all visitors to discover new ways of seeing, thinklng and learning through contemporary art. Beyond our gallery. targeted community programmes seek to expand and exchange creative participation. increase community and clvic engagement, and create new social connections. BALTIC'S Leaming and Civic Engagement initiatives include Independent or facilitated sessions, visiting Learning Lounge or Sensory Space and engaging in Baltic's digital leamlng offer. BALTIC did not host a Play led exhibition in the y8ar but attendances of families remained high but pre pandemic levels of attendanco are returning, over the 5 days BALTIC open. Overall 81,058 visitors actively took part in the Leaming and Civic Engagement Programme both within BALTIC and offsite. This number is 430h increase on last years total of 55.453. Of this. there wer8 1,227 engagements offsite. This includes activity in schools, community spaces and at festivals. Of this activity 71 % of these sessions happened in Gateshead. Overall. 105.488 people engaged with BALTIC Learning and Civic Engagement by taking part in independent or facilitated sessions andlor visiting tha Library or engagement through our digital content. Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES. REPORT INCLUDING THE STRATEGIC REPORT (Contlnued) FOR THE YEAR ENDED 31 March 2025 128,139 people visited The Learning Lounge, BALTIC'S Learning Space. 35,189 children and their families took part in our family learning programme engaging in large-scale family events, with artist workshops, toddler workshops, accessible sessions. and gallery resources. All these participants took part in these sessions for free. Attendance for our large-scale family events, Big Days Out was attended by 15,928 visitors who engaged In 50 organized activities. As part of our pre-school offer, there were 292 engagements where Baltic Crew led Wonder & Wander sessions for early years audiences. Young People made up 1,931 engagements. This included attending weekly Art Mix and Young Producer sessions, artist workshops, summer schools, trips and tours. and work experience placements and residencies. There were 16,975 engagements across our large-scale community events such as Holi Festlval, Open Iftar, Nowruz, Refugee Week and Language Café events. 6,059 individuals took part in short. informal tours provided by BALTIC Crew across 829 individual sessions. These included Exhibition Spotlight tours, Quayside tours, Behind the Scenes Tours, walking Tours and Wander & Wander activity sessions. There were 11,138 learning engagements in Front Room, tsking advantage of its everyday offerslhospitality, weekly eventslactlvlties and larger-scale events and talks. Flnanclal Sustalnablllty hlghllghts New values led Incorne generating opportunities were achieved across departments to safeguard Baltic's financial sustainability and resilience. In Fundraising Following the Summer 2023 launch of Baltic's donatlons campaign Keep Baltic Free. donations have risen by 90h from 23-24 against a footfall decrease of 10%. Corporate Spon8orshiplPhilanthropy.' Highlights include Fenwlck supporting the blennlal 'Open SubmSsslon' exhibition. 'Baltic Stars. (SEND Schools programmes) supported by locally headquartered international insurer Northstandard. Individual Giving is maintained with a major gift to launch the Baltic Endowmenl Campaign from Sting. Trusts & Foundations Together with continued support from Foundation, Foundation and Lottery Communlty Fund and new partnerships with John Ellerman, Foyle Foundation. An Innovative User Experience project was undertaking to support in house donations. This led to 9Vo increase in donations in the first month of implementation. New partn8rships including activations of the North Wall generated £70,000 (100Yo increase). Baltic Summer Sizzler which focus, on the Art Car Boot Fair returned and was the major attraction. Footfall was up 10 /0 year on year. The Riverside Kitchen was refurbished to allow for increased in house catering for events and hires. Envlronmental Sustalnablllty Hlghllghts Focused work in this area is producing results with a focus on three key areas; Reduce energy use. Reduce waste going to landfill and increase recycling. Reduce staff travel. Baltic Flour Mllls Vlsual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Contlnued) FOR THE YEAR ENDED 31 March 2025 A detalled waste Management Plan has been completed with 920/0 of waste being diverted from landfill. Regeneration fitted to refurbished lifts reduced energy consumption by 520/•. Cycling buddy system introduced for staff. Completed year of Going Green Together, North Easl cohort working towards Bronze accreditation. Working towards ISO-14001 Audit continues and is now included in Head of Facilities role. Th8 Environment Commitlae meets regularly Chairéd by the Director of Enterprise and Public Value and has representation from all departments including a Green Champion from the Twst Board. The action plan is reviewed and updated regularly by this group. Risk Management BALTIC has adopted a risk manag8ment strategy. Thls forms part of BALTIC'S overall internal control structure and corporate governance arrangements. The Strategy provides definitions of relevant terminology and details responsibility and accountability within BALTIC. The strategy also describes the management process, including the identification and measuremenl of risk and the main reporting arrangements. Risk appetlte is th8 term used to determine the amount of risk Ihat is appropriate for BALTIC. Risks are consldered on an individual basis using a risk modellregister to determine the impact and likelihood of a polential risk. The Risk Register Is report8d to the Finance and Audit Committee quarterly. The Risk Register Is reported to the Trust and Audit Committee as appropriate. The significant risks Identlfied are: Loss of stakeholder income as Arts Council England's largesl visual arts National Portfollo Organisation BALTIC is particularly exposed to changes in govemment policy for arts funding. Whilst BALTIC has been successful in minimising he impact of possible reductions in stakeholder funding, it remains a significant risk. The general economic climate remains a risk to BALTIC in terms of achieving appropriate and adequate levels of earne(t income, through its subsidiary Baltic Contemporary Visual Arts Trading Limited, to deliver planned levels of charitable activily. Reserves Pollcy BALTIC maintains a formal r8serv8s policy in accordance with Charity Commission guidance. wlth the objective of holding unrestrict8d resarves equivalent to at least three months of operating costs. This approach supports financial resilience and ensures the continuity of our charitable activities. In line with our commitment to long-term sustainability, we are working to build reserves gradually and responsibly, without compromlslng operational delivery and while addresslng our deficit budget. The Trustees have considered the Reserves policy they wish to follow with regard lo BALTIC (inclusive of its subsidiary BALTIC Trading Company Ltd), in compliance with relevant legal. regulatory. tax and accounting rules e.g. in regard to use of endowments or other restricted funds. Generally, BALTIC also recognises that funds can be used only for the specific or broad purposes indicated at the time of fundraising. BALTIC expects lo receive gifts, donations, legacies and bequests from philanthropists, trusts and the general public in addition to regular funding from Arts Council of England and Gateshead Council. Typically, receipts will be in cash but where a donation or gift is in another form, such as shares. propety or arlworks, Baltic may choose lo donate or liquidate rather than hold the asset, subject to any conditions of the donor. The funds thus held and accumulated by Baltic are represented in its balance sheet as reserves. BALTIC may pool, for banking or investment purposes, any or all monies held in reserves, whether restricted or unrestricted reserves. Any investment income or capital gainsllosses, whether r8alised or unrealised, will be apportioned pro-rata across all the reserves within the pooled investment. In the case of capital endowment5. income and capital elements will be accounted for separately. Where a capital endowment has boen depleted due to investment losses. there is assumed to be no obligation to reinstate the original capital balance. Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 March 2025 BALTIC will hold both restricted and unrestricted resep4es. Restricted reserves are subject to conditions and limitations on the use of the funds, usually due to specific conditions imposed by the donorlgrant giver or general expectations set in fundraising campaigns. Unrestricted reserves are receipts thal are unencumbered by conditions and may be utilised as BALTIC sees fit, in line with its Objects. BALTIC may choosa lo designate (and un- designate) portions of its unrestricted resorves for particular purposes. creating 'unrestricted designated reserves. as opposed to "unrestricted general reserves" BALTIC determines the correct categorisation of funds at the time of receipt or designation. Mlnlmum "unrestricted general r8S8rves" In order to provide cover for unforeseen emergencies, including unexpected expenditure or loss of income or unforeseen winding up of the organisation the Truslees consider that they should hold in the balance sheet an unencumbered minimum cash res8Ne equal to three months of Ihe normal operating cost base (exclusive of programmelmarketing costs) plus any liabilities to penslon andlor bond andlor deposits or a minimum of £750,000. It Is accepted that this level may fluctuate and temporarily drop when the reserve is ut11I5ed. The target lev81 of reserves will b8 calculated annually based on the year's budg8t8d expendilure. Capltal Project deslgnated reserve In addition to general reserves, BALT5C seeks to hold deslgnated funds for capitsl expenditure contlngencies (usually 10% ) for any capital works undertaken. This provision is essential In light of rising reactive rnaintenance costs and the significant investment required to preserve and secure the future of our iconic historic building. Revlew of Policy The Board of Trustees is ultimately responsible for the management of reserves and will revlew the reserves policy annually. The accountlng policies used in preparing the financial statements are unchanged from the prior year. Flnanclal Rlsk and management pollcy The Trust's principal financial instruments comprise cash and cash equlvalents. Olher financlal assets and liabilities, such as trade creditors and trade debtors, aris8 directly from the Trust's operating activities. The main risks associated with the Trust's financial assets and liabilities are set out below. The Trust does not undertake any hedging activity and any significant financial risks are addressed on a case-by-case basis. Interest Rate Rlsk The Trust invests surplus cash in floating rate interest yielding bank accounts, therefore financial assets, interest income and cash flows can be affected by movements in interest rates. However, the Trustees do not consider there to be any significant exposure. The Trust has no bank borrowings. Price Risk There is no significant exposure to changes in the carying value of financlal liabilities. Credlt Risk The Trust's policy is aimed at minimising such losses. Individual exposure and overdue debts are monitored with customers to ensure the Trust's exposure to bad debts is not significant. Liquldlty Risk The Trust aims to mitigate liquidity risk by managing cash generated by its operations. Flexibility is maintained by retaining surplus cash in readily accessible bank dep051t accounts. Limits on spending authority are in place. Baltic Flour Mllls Vlsual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Contlnued) FOR THE YEAR ENDED 31 March 2025 Foreign Currency Risk There are minimal transaction in foreign currency. As a result, no hedging activity is undertaken to mitigate this risk. Investment Pollcy The Trust ensures that any investment strategy it adopts does not put at adverse risk any of the assets it is responsible for. Funds are placed on deposit at the highest possible interest rates, consistent with cash flow requirements. Strateglc Objectlves Strategic Objectivg l.. Develop and enhance BALTIC'S reputstion as an outstanding international art space, commissioning producing and presenting innovative work by a diverse range of artists that is conceptually rigorous, insplred by new perspectives and practices, has relevance and meaning for a wid8 range of audi8nc8s, and has the power to inspire ways of understanding the world. StrateglG Objectlve 2., Deep8n engagement, appreciation and enloym8nt of Internatlonal contemporary art, continuing to develop BALTIC'S position as an international leader not only in contemporary art production and presentation, but in creating innovative approaches that deepen engagement with diverse audiences and communities across all of our activities. Strategic Objective 3.. Increase BALTIC'S resilience and deliver positive financial results. Str8t8gic ObjectlV8 4.. Advance 8ALTIC's sectoral18adershlp. strategic Objective 5.. Enhance the capacity for children and young people from diverse backgrounds to engage with and affect their world through their involvement with BALTIC'S programmes. The Trust's strategy for achlevlng the strateglc objectlves Deliver and monltor the organlsational Business Plan in line with Arts Councll England's National Portfollo funding agreement Maintain open and regular communication with Gateshead Council, Arts Councll England and Northumbria Unlversity as a basis for ensuring mutually supportive and beneficial relationships. Further strengthen the artistic programme by working with significant and internationally acclaimed artists and be establishing relationships with major intemational institutions. Ensure that financial resources are used as effectively as possible and strive for greater efficiency across the organisation. Maximisg self-generated income across trading activities, trusts and foundations. individual giving and corporate and strategic partnerships thereby making the organisation more resilient to fluctuations in public funding. Develop the Environmental Action Plan to ensure that the organisation's impact on the environment is monitored and minimised. Continue to promote and prioritise equality and diversity across all areas of BALTIC'S activities an operations by implementing and monitoring effective action plans. Continue to deliver leaming and engagement programmes thal create demonstrable impact with individuals and communities. Continue to build intelligence on audience motivations. expectations and needs to inform the implementation of BALTIC'S audience development strategy. Provide a consistent and excellent service for all visitors and users of BALTIC.10 Baltlc Flour Mills Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES. REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 March 2025 Fundralslng The charity is required to report how it deals with fundraising from the public. The charity does not use a professional fundraiser or commercial participator to raise funds. Any monies raised direct from the public follows all guidelines set out by Ihe Charity Commission and UK law in every respect. We respect the privacy and contact preferences of all public donors. STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng documents The Trust is a charitable company limited by guarantee and was incorporated on 29 June 1998. It Is governed by Memorandum and Articles of Association as amended and adopted on 15 July 2013. Appointment of Trustees From time to time It is necessary for the Trust to recrult new Trustees to replace those that have either resigned during their term of offic8, or by way of anticipating planned retirements after the completion of either a slngl8 t8rm of three years, or a maxlmum perlod of six years, being Iwo terms of three years. It Is the Trust's normal practice to place regional and national advertisements which invite interested and suilably experienced people to apply to be a Trustee, alongside making informal approaches to individuals who are already known to the Trust and who appear to have the necessary qualities and interest in what we do. Although not strictly a public appointment. when setting out the essential requiremenis of potential Trustees, the Trust chooses to make it known that it expects appointees to follow the seven principles of public life as defined by the Committee on standards in Publlc Life. Short-listed applicants are interviewed and assessed by a panel of existing Trustees chaired by the Chair of the Board. Appointments are subsequently recommended to the Board and approved by members of the company at the next General Meeting. Inductlon and tralnlng of Trustees The induction and training of Trustees is the responsibility of the Chair and is arranged on an individual or collective basis as appropriate. The Board of Trustees has IntrodU￿d fomal training sessions for the Board as a whole as and when appropriate. All Trustees, as well as certain senior staff and the dlrectors of the trading company, are required to declare, and maintain as continuing to be accurate, a declarats'on of interests. The Audit Committee review the Register of Interesls on an annual basis. Arrangements for setling key management personnel remuneration The board, who give their time freely and no trustees received remuneration in the year, have consid8r8d who the Key Management Personnel (KMP) of the charity are. as noted in the reference and administration section. Togelher with the board, these KMP are those in charge of directing and controlling, running and operating the activities of the charity on a day to day basis. The pay of the KMP is reviewed annually and potentially increased in accordance with pay proposals considered by the trustoos for the salary structure of the whole organisation. The trustees benchmark against pay levels of other charities and similar organisations within tho sector and the region. Pay levels are set using this information together with budget and forecast information, ensuring that the charity can afford any proposed increases. The board then agree any uplifl to remuneration. Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Contlnued) FOR THE YEAR ENDED 31 March 2025 Organisational structure BALTIC is governed by a Board of Trustees. The Chair of the Board is selected by a recruitment process led by the Director (Chief Executive) and Chair of the Recruitment subcommittee of the Board. In determining its organisational structure, BALTIC has distinct duties for the Chair. Board of Trustees, and Director (who is the Chief Executive). The Board meets four times a year, or as required to deal with any specific issues. Issues concerning finance, including financial ragulations, premises, ass8t management. the letting of significant contracts are scrutinized and overseen by the Financ8 and Audit Committee which meets four times a year or more frequently as required. The Finance and Audit committee shall elect a chalr who shall not be the Chair of the board. The Flnance and Audit Committee membership Is requi￿d, as set out in the tems of reference, to be made up of a combination of the Board of Trustees, and members independent of management of the TnJ5t and any subsidiaries. Trustee members, however. will always remain in the majority of this Committee. BALTIC has a wholly owned trading subsidiary, independent of th8 Board of Trustees to oversee and scrutinize the management of commercial enterprises. Relatlonshlps wlth rolatod partles The Trust has a wholly owned subsidiary company, Baltic Contemporary Visual Arts Trading Limited, the principal actlvlty of which Is the provision of catering, retsil, corporate sponsorship and room hire services. The surplus generated by the company Is glfted to the Trust (see note 25 to the financial statements). Going Concern The Chaity's forecasts and projections for the next twelve months show that the charity should be able to continue In operational existence for that period, considering reasonably possible changes in trading performance. This also considers the effectiveness of available measures to assist in mitigating the impact. The charity and Its trading subsidiaries have strong positive cash balances and is forecasting for this to continue to be the case. The Trustees have stress tested their forecasts, considering various scenarios and remain confident that the uncertainties do not cast significant doubt on the company's ability to continue as a going concern. Auditors In accordance with the Companles Act 2006 a resolution proposing the appointment of S&W Audit as auditor for the year ending 31 March 2026 will be put to the members. 12 BaltlG Flour Mills Visual Arts Trust IA Company Limited by Guarantee) TRUSTEES, REPORT INCLUDING THE STRATEGIC REPORT (Continued) FOR THE YEAR ENDED 31 March 2025 STATEfvIENT OF TRUSTEES RESPONSIBILITIES The Trustees (who are also Directors of Baltlc Flour Mills Visual Arts Trust for the purpose of company law) are responsible for preparing the Trustees Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (Unit8d Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare the financial statements for each financlal year which give a true and fair view of the state of affairs of the charitable company and the group and the incoming resources and application of resources, including the net Sncome or expenditure, of the charity and the group for the year. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently., obseNe the melhods and principles In the Charilies SORP 2015 (FRS 102); make judgements and estimates that are reasonable and prudent,. state wheth8r applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on a going concern basls unless It is Inappropriate to assume that the charitable company will continue in operation. The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any tlme the financial position of the charilable company and the group and to enablg them to ensure that th6 financlal statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and henc8 for taklng reasonable steps for the prevention and detection of fraud or other Irregularities. In so far as the Trustees are aware: there is no relevant audit information of which the charity's auditors are unaware. and the Trustees have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the auditor is aware of that information. Approved by the Trustees on 26.11.25 and signed on their behalf by: K Lang Chair and Trustee 13 Baltlc Flour Mills Visual Arts Trust (A Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF BALTIC FLOUR MILLS VISUAL ARTS TRUST FOR THE YEAR ENDED 31 March 2025 Opinion We have audited the financial statements of Baltic Flour Mills Visual Arts Trust (the 'charitable company,) and its subsidiaries (Ihe 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Charitable Company Balance Sheet. the Consolidated Cash Flow Statement and notes to the financial slatements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard appliGable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: glve a true and fair vlew of the state of the group's and charitable company'5 affairs as at 31 March 2025, and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended. have been properly prepared in accordance with United Klngdom Generally Accept8d Accounting Practlc8,' and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and appllcable law. Our responsibilities under those standards are further described In the Auditorfs responsibilitie5 for the audit of the financial slatements section of our report. We are independent of the group and charitable company in accordance wlth the ethical requirements that aro relevant to our audit of the financial statements in the UK, Includlng 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 going concern basls 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 charitable 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 Trsponsibilities of the trustees with respect to going concern are described in the relgvant sections of this report. Other Information The trustees are responsible for the other information. The other infonnation comprises the information included In the trustees. annual report, other than the financial slatements and our auditor's report thereon. Our opinion on the financial statements does not cover the other infomation and. except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 14 Baltic Flour Mllls Visual Arts Trust (A Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF BALTIC FLOUR MILLS VISUAL ARTS TRUST (Contlnuedj FOR THE YEAR ENDED 31 March 2025 In connection with our audit of the financial statements. our responslbility is to read the other information and, in doing so, consider whether Ihe other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify 5tJch material inconsistencies or apparent material misstatemonts, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If. based on the work we have performed, we conclude that there is a material misstatemenl of this other information, we are required to report that fact. We have nothlng to report In thls regard. Oplnlons on other matters prescribed by the Companies Act 2006 In our oplnion, based on the work undertaken in the course of the audit: the information given in the trustees, report (incorporatlng the stratoglc r8POrt and the dlr8Ctors' report) for the financial year for which the financial statements are prepared is consistent with the financial statements- and the strategic report and the directors. report have been prepared in accordance with applicable legal requirements. Matter5 on whlch we are requlred to report by exceptlon In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, r8POrt. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requlres us to report to you if, In our opinion: adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audlt have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and retums. or certain disclosures of directors. remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement set out on page 13, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a tru8 and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparlng the financlal statements, the trustees are responsible for assessing Ihe group's and parent charitable company's ability to continue as a going concem, 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 lo do so. 15 Baltlc Flour Mills Visual Arts Trust (A Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF BALTIC FLOUR MILLS VISUAL ARTS TRUST (Contlnued) FOR THE YEAR ENDED 31 March 2025 Auditor's responslbilitles for the audlt of the financial statements We have been appointed auditor under the companies Acl 2006 and we report in accordance with this Act. Our objectives are to obtain reasonable assurance about wh8ther the financial statements as a whole are free from material misstatemenl, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatament when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, Including fraud, are instances of non-compliance with laws and regulations. We design procedures in line wlth our responsibilities, outlined abov8, to detect material misstatam9nts in resp8ct of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud. Is detailed below. We obtalned a general understanding of the company's legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity's policies and procedures regarding compliance, and how they identify, evaluate and account for litigatlon claims. We also drew on our existing understanding of the company's industry and regulation. We understand that the company complies wlth the framework through: Engaging external legal professionals as required and making changes to Internal procedures and controls as necessary. The directors, close Involvement in the day404ay running of the business, meaning that any litigatlon or claims would come to their attention directly. Monitoring of updates made by regulatory bodies. In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the companls ability to conduct its business, and where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of signifiGance in the contexi of the company: The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of Ihe financial statements. Th8 Charities Act 20118nd the Charities: Slatement of Recommended Practice in respect of the preparation and presentation of the financial statements. We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above: Making enquires of trustees and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud; Obtaining an understanding of the internal controls established to mitigate risks related to fraud or non- compliance with laws and regulations", Reviewing the minutes of meetings of those charged with govemance; 16 Ballic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF BALTIC FLOUR MILLS VISUAL ARTS TRUST (Contlnu8d) FOR THE YEAR ENDED 31 March 2025 The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceplibility of the entity's financial slatements to material misstatement, including how fraud might occur. The areas identified in this discussion were: Manipulation of the financial statements via and management overriding controls. The incorrect recognition of grants and donations resulting in the income being recognlsed In the Incorrect accounting period. The incorrect recognition of trading income ￿SuItIng in the income being recognised in the Incorrect accounting period. These areas were communicated to the other members of the engagement team not present at the discusslon. The procedures we carried out to gain evidence in the above areas included.. Performed data analytics on the general ledger against client specific criteria Obtained third paty evidence for a sampl8 of donations and grants, to ensure that It was appropriate to recognise the income in the financial statements in accordance with the principles of the SORP. Selected a sample of sales transactions, agreeing the revenue to supporting documentation and through to the bank statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uldauditor5responsibilities. This description forms part of our auditorfs report. Use of our report This report is mad8 sol8ly to th8 charltabl8 company's members, as a body, In accordance wlth Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, w8 do not accept or assume responsibility to anyone oth8r than th8 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Craig Henderson (Senlor Statutory Audltor) for and on behalf of S&W Audit Chartered Accountants and Statutory Auditor 17 Queens Lane Newcastle upon Tyne NE1 1RN 17 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTivrriES (including con5011dated Income and expenditure account) FOR THE YEAR ENDED 31 Mar¢h 2025 Unrestrlcted Designated Restricted funds funds fund5 Total 2025 Total 2024 Notes Income from: Donations and legacies Charitable activities other trading activities Other income 3,332,746 28,427 1,974,326 540,457 945,197 4,277,943 28,427 1,974,326 540,457 3,747,436 63,649 2,069,101 395,838 Total Income 5,875,956 945.197 6,821,153 6,276,024 Expondlture on: Costs of raising funds CharitabSe activities 1,586,970 4,453,859 1,586,970 259,410 4.713.269 1,371,856 4,780,289 Total expendlture 6,040,829 259,410 6,300,239 6,152,145 Net movement before transfèrs and other galns { 164,873) 685,787 520,914 123,879 Gain on settlement of defined benefit p@nsion obligation 8123 1,012,000 1,012,000 Transf8rs between funds 25 { 915,312) 1.000,000 (84,688) Other comprehenslve expendlture Actuarial loss on defined benefit pension schemes (53,000) Net movement In funds (68,185) 1,000,000 601,099 1.532.914 70,879 Reconclllatlon of funds Total funds brought forward 2,969,191 418,594 719.179 4,106,964 4,036,085 Total funds carried forward 2.901,CM)6 1,418.594 1,320,278 5,639,878 4,106,964 The Stat8m8nt of Financial Activities includes all galns and losses recognised in the year. 18 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) CONSOLIDATED BALANCE SHEET AS A T 31 March 2025 2025 2024 Notes Fixed assets Tangible assets 16 1,705,741 1.620,611 1,705,741 1,620,611 Current assets stock Debtors Cash at bank and in hand 18 19 86,102 1,147,200 3,434,799 107,718 751,385 2,477,681 4,668,101 3,336.784 Credltors: amounts falllng due wlthln one year 20 (733,964) (850.431 ) Net current assets Penslon scheme assetl(liability) 3,934,137 2,486,353 23 Net assets 5,639,878 4,106,964 Funds Unrestricted funds Designated funds Restricted funds 2,901,006 1,418,594 1,320,278 2.969,191 418,594 719,179 25 5,639,878 4,106,964 The notes on pages 22 to 45 form part of Ihese financial statements. The financial statements were approved by the Trustees on . 26.11 .25 and signed on their behalf by: K Lang Chair and Trustee Company Number.. 03589539 19 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) CHARITABLE COMPANY BALANCE SHEET AS A T 31 March 2025 2025 2024 Notes Fixed assets Tangible assets Investments 16 17 1,316,042 1,193,668 1,316,044 1,193,670 Current assets Debtors Cash at bank and in hand 19 1,074,096 2,802,593 1,638,907 1,306,568 3.876,689 2,945,475 Credltors: amounts falllng due wlthln one year 20 (519,883) (626,107) Net current assets 3,356,806 2,319,368 Net asset8 4,672,850 3,513,038 Funds Unrestrlcted funds Designated funds Restricted funds 1,933,978 1,418,594 1.320,278 2,375,265 418,594 719,179 25 4,672,850 3,513,038 The notes on pages 22 to 45 form part of these financial statements. The financial statements were approved by the Trustees on 26.11.25 and signed on their behaff by,. K Lang Chair and Trustee Company Number.. 03589539 20 Baltlc Flour Mills Visual Arts Trust (A Company Limited by Guarantee) CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 March 2025 2025 2024 Note Net Gash provid8d by operatlng activities 29 1,189,240 24,910 Cash flows from Investlng actlvltles Purchase of tangible assets (232,122) (463,579) Net cash flow from investlng actlvltl8S (232,122) 1463.579) Net (decrease)lincrease In cash and cash equlvalents 957,118 (438,669) Cash and cash equlvalents at the beginnlng of the year 2,477,681 2,916,350 Cash and cash equlvalants at the end of th6 yoar 3,434.799 2,477,681 Cash and cash equlvalents conslst of: Cash at bank and in hand 3,434,799 2,477,681 21 Baltlc Flour Mllls Vlsual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2025 Accounting policies 1.1 Basis of preparatlon of flnanclal statements The financial statements have been prepared in accordance with Accounting and Reporting by Charities- Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice. Baltic Flour Mills Visual Arts Trust meets the definitton of a public benefit entity under FRS 102. The financial statements are prepared under the historical cost convention or transaction value unless olherwise staled in the relevant accounting policy note(s). The financial statements are prepared in Sterling which is the functional currency of the charity and round8d to th8 nearest £. The significant accounting policies applied in the preparation of Ihese financial statements are set out below. These policies have been consistently applied to all years presented unless otherwlse staled. 1.2 Basls of consolldatlon The financial statements consolidate the results of Baltic Flour Mills Visual Arts Trust and its wholly own8d subsidiaries Baltic Contemporary Visual Arts Trading Limited on a lina-by-line basis. A separate statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because Baltic Flour Mills Visual Arts Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. 1.3 Golng concern The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including operating performance of the group, the annual budget, rolling financial forecasts and future cash flows in making their assessment. 22 Baltic Flour Mllls Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Conlinued) FOR THE YEAR ENDED 31 March 2025 1.4 Funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of Baltic Flour Mills Visual Arts Trust and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by Baltic Flour Mills Visual Arts Trust for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund Is set out in the notes to the financial statements. 1.5 Income All incoming resources are included in the Statement of Financial Activities when the Group has entitlement to the funds, any performance conditions have been m8t, the amounl can be measured reliably and it is probable Ihat the income will be received. Donations from individuals and charStable Trusts are recognised when notification of payment Is received, unless there are specific conditions attached. No amount Is Sncluded within the financial statements for volunteer time in line wlth the SORP (FRS 102). Further detail is given in the Trustees Report. Investment income is earned through holding assets for Investment purposes such as cash held on deposit and property. It includes Interest and rent. Interest income is recognised when recelvable and rental incorne is recognised as TAP'S right to receive payment Is established. 1.6 Expendlture and Irrecov8rable VAT All expenditure is accounted for on an accruals basis and is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings: Costs of raising funds Includes all costs incurred in the running of the trading subsidlary; and Expenditure on charitable activities includes all dlrect and support costs incurred in the management of the charity. Irr6COVgrable VAT is charged as a cost against the expenditure when incurred. 1.7 Support cost allocation Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, govemance costs and administrative payroll costs. They are incurred dlrectly in support of expenditure on the objecls of the charity. 23 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 March 2025 1.8 Tangible fixed assets Tangible fixed assets are stated at cost (or deemed cost) or valualion less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Fixtures, fittings and equipment over 5 to 10 years straight line Individual fixed assets costing £5,000 or more are initially recorded at cost. 1.9 Investment8 Investments In subsidiary undertakings are held at cost less itnpaimient. 1.10 stock Stock is valued at the lower of cost and nat realisable value. 1.11 Debtors Trade and other debtors are recognised at the settlement amount due after any Irade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 1.12 Cash at bank and In hand Cash at bank and cash in hand includes cash and short term highly liquid investments wlth a short maturity of three months or less from the date of acquisition or opening of the d8posIt or simllar account. 1.13 Credltors and provl8lon8 Creditors and provisions are recognised where the charity has a present obligation resultlng from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement after allowing for any trade discounts due. 1.14 Deflnad beneflt penslon plan The company recognised a defined net benefit pension asset or liability in the statement of financial posilion as the net total of the present value of its obligations and the fair value of plan assets out of which the obligations are to be sett18d. Changes in the net defined benefit asset or liability arising from employee service are recognised In income or 8xpenditure as current service cost where it relates to services in the current period and as a past service cost where it relates to servicas in prior periods. Costs relating to plan introductions, benefit changes, curtailments and settlements are recognised in income or expendituro in the period in which they occur, 24 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 March 2025 .15 Penslons Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. 1.16 Flnanclal Instruments Baltic Flour Mills Visual Arts Trust only has financlal assets and financial liabilities of a kind that quallfy as basic financial instruments. Basic financial instruments are initially re¢ognisod at transaction value and subsequent5y measured at thelr settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effectlve Interest method. 1.17 Judgements and key sources of estimatlon uncertalnty In the application of the charitable company's accounting policies, the Trustees are required to rnake judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised 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 perlods where the revlslon affects both current and future periods. There are considered to be no significant judgements. Legal status Baltic Flour Mllls Visual Arts Trust is a company limited by guarantee. registered in England and Wal@s, (number 03589539) and not having a share capital. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per mernber of the charity. 25 Baltic Flour Mllls Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 March 2025 Statement of financial actlvltles from the prior year as restated As restated Total 2023 Unrestricted Designated Restrlcted funds funds funds Total 2024 Notes Incom8 from: Donations and legacies Charftable activities Other trading actlvities Investment income Other income 3,438,947 63,649 2,069,101 308,489 3,747,436 63,649 2,069.101 4.487,630 63,991 1,333,079 1,694 225,499 395.838 395,838 Total Income 5,967,535 308.489 6,276,024 6,111.893 Expendlture on: Costs of raising funds Charitable activities 1,371,856 4,208,640 1,371,856 523,149 4,780,289 751,415 4.709,379 48,500 Total expendlture 5,580,496 48.500 523,149 6,152,145 5,460,794 Net movement before transfers 387,039 (48,500) (214,660) 123,879 651,099 Transfers beknveen funds 25 317,719 (328,568) 10,849 other comprehenslve oxpendlture Actuarial loss on defined benefit pension schemes { 53,000) (53,000) (52,000) Net movement In funds 651,758 (377,068) (203,811 ) 70,879 599.099 Reconciliation of funds Total funds brought forward 2,317,433 795,662 922.990 4,036,085 3.436.986 Total funds carrled forward 2,969,191 418,594 719.179 4,106,964 4,036,085 26 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 March 2025 Income from donations 2025 2024 Donations Grants 706.058 3,571,885 74,557 3,672,879 4,277,943 3,747,436 Charltable actlvlty Incomg 2025 2024 Chsritable activity income 28,427 63,649 28.427 63,649 Income from other tradlng actlvltles 2025 2024 Sales of goods and services Sponsorship income Other Income 1,717.631 256,695 1,887,924 166,083 15,094 1,974,326 2,069,101 Other Income 2025 2024 MGETR tax relief 540,457 395.838 540,457 395,838 Galn on settlement of defined benefit penslon obligatlon 2025 2024 Gain on seltlement of defined benefit pension obligation 1.012,000 1,012,000 27 Baltic Flour Mills Vlsual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 March 2025 Analysls of expenditur8 on charitable activities Actlvltles undertaken directly Support costs Total 2025 Total 2024 Arts Programme Learning Programme Governance 1,003,334 788,334 1,621,817 1,274,284 25,500 2,625,151 2,062,618 25,500 2,662,709 2,092,129 25.451 1,791,668 2,921.601 4,713,269 4,780,289 10. Support costs Governance costs Learnlng Programma Total 2025 Programme IT costs Staff costs Premises costs Depreci8tlon other support costs Governanc8 65,618 574.924 615,546 82,316 283,413 51,557 451,726 483,644 64,676 222,681 117,175 1,026,650 1.099,190 146,992 506,094 25,500 25.500 25,500 1,621,817 1,274,284 2,921,601 11. Governance costs 2025 2024 Audit fees Other costs 18.400 8,000 17,500 7,951 25,500 25,451 28 Baltic Flour Mills Vlsual Arts Trust IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 March 2025 12. Net income for the year Net income is stated after charging; 2025 2024 Depreciation Operating lease costs Audit fees 146.992 5.370 18,400 147,180 5,370 17,500 13. Audltors remuneration The auditors remuneration amounts to an audit fee of £18,400 {2024- £17,500) and non-audit fees of £15,000 (2024- £16,450). 14. Flnanclal performance of the charltable company The Consolidated Statement of Financial Activities includes the results of the wholly owned subsidiaries. The summary financial performance of the charity alone is; 2025 2024 Income Expendilure Other comprehensive Incom81(expenditure) 5,902,042 4,722,017 (4,742,230 } (4,732,503 ) (53,000) Net surplusl(deflclt) 1,159,812 (63,486) 29 Baltlc Flour Mills Visual Arts Trust IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlnuedj FOR THE YEAR ENDED 31 March 2025 15. Analysls of staff costs, Trustee remuneratlon and 8xpens8s, and the cost of key manag8m8nt P8rsonnel The total staff costs and employees benefits were as follows: 2025 2024 Wages and salaries Soclal security costs other pension costs 2,326,846 213,327 133.506 2,072,348 188,469 108,014 2,673,679 2,368,831 The average number of employees during the year was as follows: 2025 2024 Administrative staff 89 78 89 78 The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows: Number 2025 Number 2024 In the band £60,001- £70,000 In the band £70,001- £80.000 In the band £80,001- £90,000 In the band £90,001- £100,000 In the band £100,001- £110,000 30 Baltlc Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 March 2025 q5. Analysis of staff costs, Trustee remuneration and expenses, and the cost of key manag8m8nt P8rsonn81 expenses (contlnued) The Trustee5 were not paid or received any other benefits from employment in the year (2024 £nil). No Trustee received payment for professional or other services supplied to the charity (2024 - £nil). The key management personnel of the charity are identified in the Reference and Administrative detalls section of the Trust&8s Report. The total employee benefits of th8 key management personnel of the charlty were £180,327 (2024- £224,223). 16. Tangible fixed assets Consolldated Flxtures, flttlngs and equipment Total Cost At 1 April 2024 Additions Disposals 2,209,948 232,122 2,209,948 232,122 At 31 March 2025 2,442,070 2,442,070 Depreciation At 1 April 2024 Charge for the year Elimination on disposal 589.337 146,992 589,337 146,992 At 31 March 2025 736,329 736,329 Net book value At 31 March 2025 1,705,741 1,705,741 At 31 M8rch 2024 1,620,611 1,620,611 31 Ballic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlnuedj FOR THE YEAR ENDED 31 March 2025 16. Tangible fixed assets (contlnued) Charitablè company Flxtures, fittings and equipment Total Cost At 1 April 2024 Additions 1.636.644 232,122 1,636,644 232,122 At 31 March 2025 1,868.766 1,868,766 Depreclatlon At 1 April 2024 Charge for the year 442.976 109,748 442,976 109,748 At 31 March 2025 552.724 552,724 Net book value At 31 March 2025 1,316,042 1,316,042 At 31 March 2024 1,193,668 1,193,668 32 Baltic Flour Mills Vlsual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlnu8dJ FOR THE YEAR ENDED 31 March 2025 17. Investments Shares In Subsidiary Undertakings (Charitable Company) 2025 2024 Cost and Net Book Value At 1 April 2023 At 31 March 2025 33 Baltlc Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 March 2025 17. Investments {Contlnued) Percentage Shareholding Company Baltic Contemporary Visual Arts Trading Limited Country DesGription England and Wales 1000 Ordinary The provision of catering, retail, business sponsorship and room hire services. The results and summary of assets and Ilabllities of the company are as follows: 2025 2024 Turnover Cost of sales Administrative expenses 1,967,287 2,082,536 (785.624) (1,019,186) { 801,346) (428,985) Profit for the year 380,317 634,365 Distribution to Trust 7,215 500,000 2025 2024 Total assets Total Ilabilities 1,187,544 1.732,968 (220,514) (1,139,040) Shareholders, funds 967,030 593,928 18. Stock Group 2025 Charltabla Company 2025 2024 2024 Flnished goods 86.102 107,718 86.102 107.718 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlnued) FOR THE YEAR ENDED 31 March 2025 19. Debtors Group 2025 Charltabl8 Company 2025 2024 2024 Trade debtors Prepayments and accrued income Recoverable VAT Amounts due from group undertakings 119,586 960.034 67,580 56.731 635,513 59,141 45,124 954.959 67,580 6,433 39,869 625,181 59,141 914,716 1,147,200 751,385 1,074,096 1,638,907 20. Crodltors.. amounts falllng due wlthln one year Group Charltable Company 2025 2024 2025 2024 Trade creditors Social Security and taxes Accruals and d8ferred income Other creditors 448,801 31,597 253,566 549,884 38,956 245.490 16,101 334,271 446,431 185,612 163,575 16,101 733,964 850.431 519,883 626,107 21. Deferred Income Deferred income comprises fee income relating to future periods: Balance at 1 April 2023 Amounts released to income eamed from charitable activities Amounts deferred in the year 109,349 (109.349) 5,850 Balance at 31 March 2025 5,850 22. Operatlng leases The future minlmum lease payments under non-cancellable operating leases are as follows., 2025 2024 Not later than one year Later than one and not later than five years 7,898 6,712 7,898 14,610 14,610 22,508 35 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 March 2025 23. Pension and other schemes Defined contrlbution penslon Scheme The group operates a defined contribution pension scheme. The penslon cost charge for the year represents contributions payable by the group for the scheme and amounted to £133,506 (2024- £108,014). Contributions totslling £nll (2024 - £17.468) were payable to the scheme al the end of the year and are Included in creditors. Defined benefit pension schemes Tyne & Wear Pension Fund During the year, the Charitable Company settled their defined benefit pension obligations, with a third party. Due to the position of the Scheme being in a net asset position. £1.012,000 of cash was received by the Charity in respect of this. As the carrying value of the pension scheme was nll. this full amount has been recognised as a gain in the Statement of Financial Activities. Tha Tyne & Wear Pension Fund is a funded defined benefit scheme, wlth the assets held in separate Trustee- administered funds. The charity Is an approved employer of the Tyne & Wear Pension fund. The total conlributions made for the year end8d 31 March 2025 was £nll (2024 - £14,000) of which employers contrlbutions totalled £nil (2024- £12,000) and employees, contributions totalled £nll (2024 - £2,000). Reconclllatlon of scheme assets and Ilabilities to assets and Ilabllltles recognlsed The amounts recognised in the statement of financial position are as follows: 2025 2024 Fair value of scheme assets Present value of defined benefit obligation 2,625,000 { 1.457,000 ) 1,168,000 (1,168,000 ) Pension asset value not recognlsed (as per FRS 102 para 28.22) Defined benefit pension scheme surplus In the year ended 31 March 2024 the actuarial valuation for FRS102 showed a surplus over liabilities at that date of £1,168,000. In accordance with FRS 102 paragraph 28.22, a pension scheme asset is recognised only to the extent that is able lo recover the surplus either through reduced contributions in the future or through refunds from the plan. This condition was not met at the balance sheet date and therefore the surplus was not recognised. 36 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlnued) FOR THE YEAR ENDED 31 March 2025 Defined benefit obllgatlon Changes in the defined benefit obligation are as follows: 2025 Present value at start of year Current service cost Interest cost Actuarial gains and losses Benefits pald Contrlbulions by scheme particlpants Present value at end of year Falr value of sch8me assets Changes in the fair value of scheme assets are as follows: 2025 Fair value at start of year Int8rest income Remeasurement on assets Ernployer contributions Benefits pald Present value at end of year Analy81s of assets The major categories of scheme assets are as folloyrfs: 2025 2024 Equities Property Government bonds Corporate bonds Multi-asset Credit Cash other 1,328,000 273,000 34,000 512,000 121,000 18,000 339,000 2,625,000 Return on scheme assets 2025 2024 41,000 37 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlnued) FOR THE YEAR ENDED 31 March 2025 Prlnclpal actuarlal assumptlons The principal actuarial assumptions at the statement of financial position date are as follows: 2025 2024 Discount rate CPI inflation Penslon Increases Pension accounls revaluation rate Salary increases 4.80 2.60 2.60 2.60 4.10 Post retlrement mortallty assumptlons 2025 Years 2024 Years 21.00 24.20 22.30 25.60 Current UK pensioners at retirement age - male Current UK pensioners at retirement age - female Future UK pensioners at retirement age- male Future UK pensloners at retlrement age- female These are assumptions used purely for the calculations of the pension deficit and do not reflect the 8cluallty of historical pay rises. Contributions to the scheme are charges to Ihe profit and loss account so as to spread the cost of the pension over employees. working lives with the company. A qualified actuary, on the basis of triennial valuations, using the projected unit method, detemiines the contributions. In addStlon, as many unrelated employers participate in the Tyne and Wear Pension fund there is an orphan liability risk where employers leave the fund but with insufficient assets to cover their pension obligatlons so that the difference may fall on the remaining employers. This liability no longer exists as the Gompany has left the scheme. All the risks above may also benefit the employer e.g. higher than expected investment returns or employers leaving the fund with excess assets which eventually get inherited by the remainlng employers. 38 Baltic Flour Mills Vlsual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlnued) FOR THE YEAR ENDED 31 March 2025 25. Fund reconclllatlon Year ended 31 March 2025 Balance at 1 Aprll 2024 Balance at 31 March 2025 Transfers Galnsl (losses) Income Expenditure Unrestrlcted fund8 General fund 2,969,191 6,916.917 (6,069,790) (915,312) 2,901,006 Designated funds Capitsl replacement & renewal Novated funds - income Generation 1,000,000 1,000,000 418,594 418,594 Total reslricted funds 3.387,785 6,916,917 (6,069.790) 84,688 4.319.600 Restrlcted funds The Baltic Endowment for Creative Futures ACE Capital Expenditure The Virgin Money Foundation Big Lottery Fund #twill fund 836 B.Local Birtley 650 20 Babies 1,371 Inspired by 147 Icp 6,167 National Lottery Fund 47,009 National Art Collection CVAN 44,714 CVAN (1,438 } North East Artist Fund Saelia Aparicio Paul Mellon The Art Fund Estonian AA Development Centre The Headley Trust Warm Spaces Laidlaw Trust IWM Capital repair reserves account 625,000 625,000 15,048 (15,048 ) (836) (650) { 1,371 ) {147) (11,132 ) (173,177) (2,968 ) 6,053 195.604 (1,088) 69,436 41,746 1.438 16.000 8,000 7,000 5,000 3,000 31,500 1.640 6,400 40,000 (698 ) 15,302 8,000 (7,000) (5,000) (3,000) (14,559) { 1,640) (6,400) (30,832) 16,941 9,168 604,675 (69.990) 534,685 Total restricted funds 719,179 945,197 (259.410) (84,688) 1.320,278 Total funds 4.106,964 7.862,114 (6.329.200) 5.639.878 39 Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlnued) FOR THE YEAR ENDED 31 March 2025 25. Fund reconciliation (Conflnued) Year ended 31 March 2024 Balance at 1 April 2023 Balance at 31 March 2024 Transfers Galnsl (losses) Income Expenditure Unrestrlcted funds General fund 2,317,433 5,996,064 (5,609,025) 317,719 (53,000 ) 2,969,191 Deslgnated funds Capital replacement & renewal Novated funds- Income Generation 173,256 (48,500) (124,756 ) 622,406 (203,812 ) 418,594 Total restricted funds 3,113,095 5,996,064 (5,657,525) (10,849 ) (53,000) 3,387,785 Restrlcted funds ACE Capital Expenditure The Virgin Money Foundation Big Lottery Fund #iwill fund B.Local Birtley Neighbourly Project: Anonymous Trust 20 Babies Inspired by Icp IWM Commisslon Bloomberg National Lottery Fund National Art Collection CVAN CVAN Capital repair reserves account 16,129 { 1,081 ) 15,048 7,267 { 6,431 ) 836 650 650 20 8,751 7,955 (8,771 ) (6,584) 1,371 147 6,167 147 25,020 46,203 25,000 82,470 45,000 23,755 (18,853) (208,119) { 137,370 } (35,461 } (286) (100.193) 92,240 111,186 69,676 1,184 47,009 44,714 (1,438) 75,000 702,618 37,068 (135.011 ) 604,675 Total reslriGted funds 922,990 308,489 (523,149) 10,849 719,179 Total funds 4,036,085 6,304.553 (6,180,674) (53,000) 4,106,964 The transfer from restricted funds relatos to capital assets purchased. Th8 rastriction lifts when the purchases are made. Baltic Flour Mills Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 March 2025 25. Fund reconciliation (Continued) Capltal replacement and renewal For Ihe purpose of maintaining the fabric of the BALTIC buikling. Capital expenditure This fund represents the element if funding received from the Arts Council that is restricted for the capital expenditure. The Vlrgln Money Foundation #lwill Tak6 Actlon Fund Is a Jolnt Investment from the Big Lottery Fund and the Virgin Money Foundation. The #iwill Take Actlon Fund supported a 3-year programme at Baltic called Creating Change. Creating Change ran from 2017-2020 and aimed to embed social action in three Gateshead secondary schools: Cardinal Hume, Heworth Grange and Grace College (Formerly Joseph Swan). The grant was predominantly used to pay for a freelance producer to co-ordinate the project. the delivery of artist workshops. materials. trips. events and public art commisslons B Local Blrtley relates to the funding recelved for the Art Lab programme which launched in May 2019 which Is an ongolng holiday programme offering artist led activities. trips and lunches for families. The offer is developed with and for families living in Birtley and particularly families who usually access free school meals during term time. Following the success of Art Lab august 2020 took a blended approach to offer activitles and meals for thr8e weeks of the school summer holidays. This approach was developed after listening to local famllies, our partners at the Birtley Hub Resource Centre, and other service providers and finding there was an appetite for In person activities, Birtley families were offered COVID-19 safe artist led workshops In person, take away activities and lunches as well as delivered creativity packs for those unable to attend In person. Nelghbourly Project: Anonymous trust supports the communal falth, language and vocatlonal Ilves of newly arrlved communllles across the borough. 11 engages refugees and people seeking asylum. taking steps lo understand people's, 8ddress their concerns and support their ideas through a series of onsite and offsite programmes, collaborations and events. Programming includes hosting an annual open Iftar, ESOL at BALTIC, digital conservation sessions, a monthly language café, international Art Clubs in two local schools and skills matched volunteer and employment opportunities. The structure, aims and values of Neighbourly have been developed to explore the ways in which BALTIC can create long tem and sustainable relationships with refugee and asylum-seeking communities, ensuring they have equitable access to BALTIC'S resources. A guiding question for Neighbourly is how can BALTIC be a 'good neighbour, and how can we best support people to feel happy, settled and at home in the North East? Partners include Gateshead Council Resettlement T88m, Bast of Bonsham, WERS, JET , th8 Angelou Centre, Comfrey Proj8Ct and Ramadan Tent Project. Language Café relates to funding received for the Language Café which at BATLIC happens the first Saturday of each month in BALTIC Front Room. This is a free, fun, friendly and informal opportunity to meet new people and practice English speaking and listening. Drop-in from 2:30prn until 5pm. Free tea and coffee, soft drinks and snacks will be provided. Sessions are farnily friendly and include artist-led creative sessions for adults and children to keep us busy while we chat. We we'll also have special guests to meet and chat with to cover topic like community resources that might be useful, skills, opportunities and employability. We welcome and encourage participation from people with refugee and asylum seeking backgrounds as well as confident and native English Speakers. 41 Balllc Flour Mills Vlsual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Contlnued) FOR THE YEAR ENDED 31 March 2025 20 Bables relates to funding received for the .20 Babies. project. As a response to lockdown experiences triggered by the COVID-19 pandemic, the '20 babies. project was formed. 20 babies has been designed and facilitated by BALTIC centre for contemporary Art and funded by Mayborn Group with research undertakan by Newcastle University. Starting in September 2021. the project worked with 20 families from Newcastle and Gateshead who had a baby during the first Covid-19 lockdown in 2020 (March-July 2020). He families attended weekly creative workshops that gave the caregivers a chance to explore their experience of the pandemic. Insplred by Relates to funding recelved for the Inspired project. The Inspired by project is led by BALTIC and a Freelance Artist. We applied to work with Hawthom Primary on a project that would develop staff CPD In sculpture and inspire the pupils to get involved with creating a permanent sculpture in their grounds. The Artist has led 5 sessions with the school's art lambassadors: a mixed group of pupils from Reception to Year 6. In these sessions, they explored different types of sculpture. developed their vocabulary around it and tested some differgnt ways of making. The AA'S designed Iwo ideas for final piece and the school vot8d on what they would like to see in place. The final piece will see the entrance to the school come to life with an installation of rainbows, butterflies and mirrored stars suspended from the trees and stretching across to the school bulldlng as a way of welcoming visitors to school and sharing the school core values. The piece will be installed In August for a return to school unveiling in early September. On th8 15th July the Freelance Artists(s) will lead a whole school sculpture day for pupils and their parents, which will 8e8 them creatlng elements of th8 flnal Installation and experience making sculptures together. CAVN relates to funding received from the Arts Councll England and the Art Fund, for 8 national art programme titled Fair and Equitable. led by CVAN Contemporary visual Arts Network, to bring colleagues together across the country to develop a dynamlc network and Invest In organisational development. CVAN Is part of Baltic and is national network for contemporary art that supports and advocates for the sector. Capltal Repalr Reserves Account relates to funding agreed from Gateshead Council in respect of capital expenditure. These monies are represented by monies which are included in the charity's bank balance and shown on the balance sheet but are held by Galeshead Council on behalf of the charity. Novated Funds - Income generatlon The motivated funds were transferred from Galeshead Council are the remaining sum of the original Arts Council of England funding awarded to BALTIC which was agreed to be an endowment held in Gateshead Council's accounts. These funds were novated from Galeshead Council to BALTIC to support an agreement income generation plan to support the recovery and future resilience of BALTIC in the post COVlD-19 recovery. Agreed investments include feasibility studies, new areas of trading and capital investmenl in spaces, which are income generating (for hospitality) or cost savings. This is an ongoing programme of investments which will be made between 2022 and 2025. Bloomborg Baltic successfully received funds of £150.000 from Bloomberg Philanthropies - as Bloomberg Tech Fellow for the next year to 18 months. The project commencing January 2023 includes a newly developed single sign-on for ww.baltic.at, developmenl of CRM (salesforce) syslem and usage across the organisation, a re- d8velopm8nt of tho inling archive Baltic+ and establishing a now naturelwellbeing user generate platform site to encourag8 creativity entitled Nature & Nurture. The strategic objectives of this suite of projects include Baltic Flour Mllls Visual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continuedj FOR THE YEAR ENDED 31 March 2025 assisting in the sustainability of the organisation by increasing self-generated income and becoming more efficient, to invest in infrastructure and training to oplimize insights, and to extend reach and relevance to regional. national and international audiences through building communities of knowledge and engagement. It is anticipated the projects come to condusion and fruition by NovemberlDecember 2023. IWM The IWM 14-18 NOW Legacy Fund is a national partnership programme of over 20 artist commissions inspired by the heritage of conflict. Led by Imperial War Museums, th8 IWM 14-18 NOW Legacy Fund was created following the success of 14-18 NOW. the official UK arts programme for the First World War centenary. The £2.5 million commissioning programme has been made possible thanks to the success of Peter Jackson's critically acclaimed film They Shall Not Grow Old, co-commissioned by IWM and 14-18 NOW Icp The R&D project titled Cosmovisions on Land and Entangled Futures proposed to create space and time to build collaboration and in-depth co-creation of ideas relaling to th8 Interdependence and de-hierarchlsation between human and nature. It offered a platform to connect local, territorial and social struggles with pressing global concerns to imagine other possible realities that respond to more sustainable futures. The project included an artist residency at La Escocesa, Barcelona: a research grant., two artists, commissions. a two-day event in Pivo and Sao Paulo; and four Research Labs to be developed by the partner organisations. Cosmovisions on Land and Entangled Futures was a partnership between Baltic Centre for Contemporary Art (UK), Capc Bordeaux (FR). La Escocesa ES), Mas Arte Mas Accion (COL) and Plvo (BR). It was funded by British Council's International Collaboration Grants, Whlch are designed to support UK and overseas organisations lo collaborate on International projects. North East Artlst Fund The North East Artists, Fund Is an Art Network North East initiative which brings together visual arts organisations and local authorities to support visual arts practitioners wilh micro-bursaries of up to £500. The bursaries are designed to enable 8rt15ts to address what otherwise might be barriers to their practice, from travel and r8search costs to those of materials. studio equipment or framing costs, for instance. The strateglc aims are, firstly, to increase retention of artists in the North East; secondly, to demonstrate publicly that the region supports its own creative communities,. and lastly, to further local authorities, understanding of the challenges that visual arts practitioners face. The bursaries are simple to apply for and are based around outcomes, not outputs. Applicants tell us that they value the relatively lightweight application process. the ability to make small capital purchases in particular, and the trust that is placed in them to best know theSr needs. Paul Mellon This grant was to support th8 first substantial monograph on thè work of Jewish feminist, activist, social documentary photographer Franki Raffles {1955- 1994). comprising an expanded introduction by Sarah Munro and scholarly texts by Alistair Scott and Catherine Spence, all authorities on Raffles, work. The publication accompanied Raffles, first major relrospective exhibition orgarsised by Baltic, which will be presented in Gateshead in May 2024. The monograph itself explored Raffles, relationship to the societal issues of the 1980s190s particularly in relation to conversations around class, gendered labour, domestic violence, community organising and women's liberation. Baltlc Flour Mllls Vlsual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continuedj FOR THE YEAR ENDED 31 March 2025 The Art Fund Reimagine Grants Programme is designed to inspire creativity and increase stability for museums and galleries, supporting organisations to develop or refresh their work in response to their current situation. Funding from the Reimagine Grants Programme enabled Baltic to establish a year-long Creative Palhway programme with three distinct strands, serving a5 clear stepping stones for lifelong engagement with our communities. Baltic's Prograrnme and Learning toams r6imagin8d engagement with young people, omgrging artists and mid-career practitioners in the North East. The Gateway strand of this programme aimed to help young people understand the creative and cultural possibilities open to them, enhance confidence, skllls, and wellbeing, and encourage first tentative steps into the creative industries. The Platfomi strand focused on glving diverse young people their first taste of working and commissionlng in Ihe creative seclor in a professional context. Finally, the Launch Pad strand endeavoured to support artlsts in maintalning sustalnable practices in the North East. Estonlan AA Development Centre Is a funder of the The Balticlstates Residency Exchange Programme which enables artlsts and curators research and professional development through a series of supported residencies. studio visits, curator study visits and commissions at Baltic, Gateshead and partner venues in the Baltic region. The programme builds relationships through cross-cultural exchange connecting artists, arts professionals and institutions. Baltic Centre for Contemporary Art, named after the Baltic Sea, was a former flour mill housing grain from the Baltic region, and the North East has long established trading routes with Baltic countries. Participants 8re invited to respond to the current shlfting geopolltical landscape In Europe and develop work that explores borders, Identity, cltizenshlp, and sustalnable futures. They are also encouraged to find points of connection between the Baltic region and the North East of England, building nehvorks with the artistic communities and creating dialogue that transcends borders and geographies at a time of rapid social and political change. The Headley Trust Funds a wide range of projects, due to the differing expertise and interests of thelr Trustees. In relatlon to Arts 8nd Heritage, the Trust prioritises regional museums and galleries, funding curators., acquisitions; display, study. acquisition of British ceramics,. industrial, maritime, built heritage conservation., archaeology., arts education digitisation and outreach. The Headley Trust awarded Baltic a granl towards the salary of an Assistant Curator over three years, from 2024 - 2027. The funding has enabled Baltic to structurally embed an entry-level curatorial opportunity and address the well-reported lack of diversity in creative industries. Warm Spaces Small Grants programme is delivered by Gateshead Council. Warm Spaces began as a crisis response to keep people warm through the winter but has blossomed inlo a movement to reconnect individuals and communities across the country all year round. This funding has supported Baltic's own Warm Space, Front Room. In particular, th8 grant programmo onablod Front Room to dovelop relationships within the Warm Space network, continue the provision of mental health drop-in 58ssions and host visits from partngr organisations to increase the wellbeing of users. Baltic Flour Mills Vlsual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continuedj FOR THE YEAR ENDED 31 March 2025 26. Analysis of net assets between funds Year ended 31 March 2025 Unreslrlcted Funds Deslgnated Funds Restrlcted Funds Total 2024 Tangible assets Net current assetsl(liabilities) 1,705.741 1,195.265 1,705,741 3,934,137 1,418,594 1.320,278 Total net assets 2,901,006 1,418,594 1,320,278 5,639,878 Year e March 2024 Unr8Strlcted Funds Deslgnatod Funds Restrlcted Funds Total 2024 Tanglble assets Net current assetsl(liabilitles) 1.620,611 1,348,580 1,620,611 2,486,353 418,594 719,179 Total net assets 2,969,191 418,594 719,179 4.106,964 27. Related Party Transactlons Group: Durlng the year the group made the following related party transactions: Baltlc Contemporary Vlsual Arts Tradlng Llmlted During the year. th& charity made sales relating to management fees of £28,961 (2024 £28,529) and received a gift aid distribution of £507,215 {2023 £481.838). At the balance sheet date the amount due from Baltic Contemporary Visual Arts Trading Limited was £6,433 (2024 - £914,716). BaltiG Flour Mllls Vlsual Arts Trust (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS (Continuedj FOR THE YEAR ENDED 31 March 2025 28. Reconciliatlon of net income to net cash flow from operating activities 2025 2024 Net surplusl(deficit) for the year Depreciation on tangible assets (Increaseydecrease In debtors Decrease in creditors Decreasel(Increase) in stock 1,532,914 146,992 (395.815) { 116,467) 21,616 70,879 147,180 163,559 (351,023 ) (5,685) Net cash flow from operating activities 1,189,240 24,910