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2021-03-31-accounts

Company number 4421812 Charity number England & Wales 1094936 Charity number Scotland SC049324

LUX

(Limited by Guarantee)

Report and Financial Statements for the year ended 31 March 2021

Breckman & Company Ltd Chartered Certified Accountants 49 South Molton Street London W1K 5LH

LUX

(Limited by Guarantee)

Contents

Page
Reference and Administrative Details 1
Trustees' Report 2 - 7
Auditors' Report 8 - 10
Statement of Financial Activities (including Income and Expenditure Account) 11 - 17
Balance Sheet 18
Cash Flow Statement 19
Notes to the Financial Statements 20 - 31

LUX

(Limited by Guarantee)

Reference and Administrative Details

Constitution

The company is a private company limited by guarantee registered in EW - England & Wales, company number 4421812, incorporated under the Companies Act, and its governing document is its Memorandum and Articles of Association. The company is a registered charity in England & Wales, number 1094936, and in Scotland, number SC049324.

Directors and trustees

The directors of the charitable company ("the charity") are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.

As set out in the Articles of Association the trustees are appointed as follows:

The subscribers to the memorandum and such other persons as are admitted to membership in accordance with the articles shall be members of the company. Subject to Article 7, every person who wishes to become a member shall deliver to the company an application for membership in such form as the trustees require signed by him or her.

Policies and procedures adopted for the induction and training of trustees are ongoing and incorporated indirectly into the regular trustees meetings.

The trustees during the year and since the year end, were:

Deborah Bourne resigned 19 February 2021 Jemma Desai Elke Finkenauer appointed 15 June 2021 Andrea Francke appointed 9 June 2021 Dr So Mayer appointed 25 June 2021 Tessa Norton Alia Syed Rehana Zaman (Chair)

Chief executive/day to day management

Benjamin Cook

Auditors

Breckman & Company Ltd, Chartered Certified Accountants, 49 South Molton Street, London W1K 5LH.

Bankers

The Co-operative Bank, PO Box 200, Skelmersdale WN8 6GH. Triodos Bank, Deanery Road, Bristol BS1 5AS. Cater Allen Private Bank, 2 Triton Square, Regent's Place, London NW1 3AN.

Registered office and operation address

Waterlow Park Centre, Dartmouth Park Hill, London N19 5JF.

1

LUX

(Limited by Guarantee)

Trustees' Report

The trustees present their annual report together with the financial statements of the charity for the year ended 31 March 2021 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

The reference and administrative details set out on page 1 form part of this report. The financial statements comply with Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Objectives and activities for the public benefit

The purpose of the charity is:

To promote, maintain, improve and advance education in the arts particularly the arts of film and video making and other moving image arts for the public benefit.

The charity has three main aims in reference to its objectives which are advocacy for moving image arts, providing access to moving image arts and supporting moving image arts. These aims and objectives are achieved through the following strategies:

Advocacy

Access

Support

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit : running a charity (PB2).

2

LUX

(Limited by Guarantee)

Trustees' Report

Organisational structure

A board of trustees of up to 12 members, who meet quarterly, administers the charity. Trustees are appointed by the board of trustees. A Chief Executive, Benjamin Cook is appointed by the trustees to manage the day-to-day operations of the charity.

Policies and procedures adopted for the induction and training of trustees

Responsibility for the induction of new trustees rests with the current trustees. The induction procedure consists of an introduction to current trustees, all members of staff, to the charities work and projects and a visit to the charity's offices and selected projects. Ongoing training needs of trustees are monitored and acted upon through a regular, pro-active process of board development.

Pay policy for senior staff

Staff pay/remuneration is reviewed on a yearly basis by the board of trustees through a benchmarking process with a network of other small scale not-for-profit visual arts organisations in London.

Achievements and Performance 2020/21

LUX is a national arts agency that exists to support and promote artists working with the moving image through distribution, exhibition, publishing, education and research. It has a public programme of exhibitions, screenings and publishing both in the UK and overseas, but the major part of its work is as a service umbrella network for artists' and artists organisations (representing artists' works, providing specialist advice and services to institutions and arts professionals) as well as the care, promotion and development of the UK's only significant collection of artists' film and video.

LUX's distribution service works to promote and support the work of approximately 1,500 artists annually - making artists work available to exhibitors on a national and international basis, providing pastoral care, professional advice and negotiating artists' fees to enable artists to develop a sustainable practice - this has expanded by 12 artists and 130 new works in the 2020/21. We organise and host LUX artists' forum groups around the country which enable artists to explore ideas and professional issues with LUX and their peers as well as connect with other LUX groups around the UK and Ireland, currenting supporting groups in London, Cornwall, Glasgow, Nottingham, Belfast and Dublin, all of which switched to online in 2020/21. We offer one-on-one advice sessions for artists in the UK and during the Covid19 pandemic have increased this to weekly sessions, supporting over 200 artists from around the UK. We also convened a new artists working group to support the programme of our curatorial fellow Cairo Clarke, members of the group are Ebun Sodipo, Kumbirai Makumbe, Rebecca Bellantoni, Isaac Kariuki and Tamar Clarke Brown.

LUX has a large and diverse international network ranging from artist-run spaces to major museums, we work with these partners to present UK artists work overseas and collaborate on the staging of screenings and exhibitions. LUX also works with international organisations and artists to present and make available their work in the UK both through distribution and public programming. LUX is invited to present its work and UK artists every month throughout the year at international screenings, galleries, festivals and biennials. We regularly work with the British Council and other national cultural agencies in terms of cultural exchange through exhibition exchanges, residencies and co-productions. LUX is part of a number of international networks to extend the reach of our work and access new markets for UK work.

3

LUX

(Limited by Guarantee)

Trustees' Report

LUX aims to advocate for and make accessible artists' moving image work to the general public and enable them to have their own creative experiences. As an agency we achieve this by annually supporting a large number of exhibitions, screenings and events on a local, national and international basis through our collection and distribution service with a wide range of partner organisations. We also organise touring projects which provide access to pre-curated selections of work which are presented in context with supporting materials for venues which may not have the capacity to develop projects themselves. Most of this work was conducted online in the past year. We continued to collaborate with the British Council on our major 2 year tour of British work called We Are Here, including a series of presentations around the world and a special project supporting partners in the Western Balkans, including LUX delivering an online curatorial workshop for organisations in the region and a series of creative workshops exploring arts and ecology. We work with a range of partners to develop contextual event and engagement programmes responding to their core programme or special events and themes and continued to do this online during the pandemic through partner websites . We usually organise our own public programme at our home bases in London and Glasgow and with host partners which take a range of forms from exhibitions to events to workshops appropriate to the artists and work we are presenting which again moved to online.

LUX aims to increase visitors to the LUX website, events and subscribers annually and saw a significant increase in traffic and audiences over the past year as we shifted to online.

Year on year we have increased the reach and number of our audiences through distribution, partner programming and our own public projects and this year saw strong audiences online.

As a small committed organisation with a strong public ethos we pay close attention to these qualitative and experiential aspects of our work. We are an artist-centred organisation which works very closely with numerous artists on a long-term basis throughout their career. From day to day support of distribution artists, close working with commissioning and producing artists projects to our open emergent artist opportunities including one-on-one working with young artists and our peer-led groups we offer a bespoke attentive experience for the artists. In terms of our public programme we are deeply invested in our work and advocacy for artists, works and high-quality presentation are key aims. We work closely on a personal level with all of our programme development - we carefully plan the appropriateness of each event, its staging and presentation, we work closely with the artists and each project is personally mediated by LUX staff. We pay attention to framing and interpretation so all activities include artists/curator talks, opportunities for audiences to discuss, as well as contextual material to explore works and themes in more detail.

LUX was unable to open to the public for much of 2020/21 due to pandemic restrictions, however due to the nature of our work we were able to quickly pivot to an online programme of exhibitions, talks and screenings which attracted large audiences from around the world. Highlights of the programme included:

4

LUX

(Limited by Guarantee)

Trustees' Report

Commissions:

New Publications:

In the past year we have made some significant staff restructures to better support the work of the organisation. We now employ the regular services of a freelance bookkeeper and accountant to support our Director of Operations, we have expanded our Distribution/Collection team with the appointment of a Distribution Assistant. We have expanded the role of our Events and Marketing Manager to support education and public events and continue to develop our 18-month long curatorial fellowship programme to bring new perspectives to our public programme.

Plans for Future Periods

General aims and objectives 2021/22

5

LUX

(Limited by Guarantee)

Trustees' Report

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.

Financial Review and Reserves Policy

The charity is aiming to maintain a level of free reserves i.e. those not invested in tangible fixed assets, that would sustain its operations over a 6-month period should its revenue grants and income generating activities be temporarily curtailed. This figure is currently £217,052 which includes a designated fund of £76,000. The designated funds are to support Brexit mitigation, new space development, staff training, software upgrades, building improvements, fundraising consultancy, and a reserve for LUX Scotland projects and All designated funds commitments will be completed by end of March 2021. Restricted funds of £152,717 were held at the year-end.

Major Risks

The major strategic, business and operational risks which the charity faces are examined on a yearly basis as part of the forward planning process and systems established to lessen the risks. The major risks to the charity are that its revenue funding from Arts Council England would be withdrawn; as ACE has accepted LUX into their next funding portfolio for four years to 2023 the trustees have all confidence that this support will continue. Also, Creative Scotland have supported LUX Scotland on an annual basis for the past 6 years and based on our ongoing conversations we believe this support will continue. The second risk is that the organisation would not meet its self-generated income targets; all indications are that the income targets will be easily met; however the yearly budget also contains a degree of flexibility to allow for fluctuations. During the past year despite the pandemic LUX's earned income was better than expected because of a general shift on online presentations. This has shown that there is a good amount of robustness in our business model. The lease for our building is up for renewal at the end of 2022, early conversations with our landlord Camden have been positive and the unusual location and D2 planning use give us confidence that results will be positive. The final major risk we have previously noted was posed by the impact of Brexit, as a significant part of LUX's earned income comes from loaning UK works overseas. At the point of writing this has not significantly impacted our business particularly as the majority of our work is now conducted digitally, avoiding import and export of material objects.

Statement of Trustees Responsibilities

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

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to:

6

LUX

(Limited by Guarantee)

Trustees' Report

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware at the time of approving our trustees' annual report:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Small company exemptions

This report is prepared in accordance with the provisions of the Companies Act 2006 relating to small companies.

This report was approved by the Board of Trustees on 16 November 2021 and signed on its behalf by:

Rehana Zaman (Nov 22, 2021 13:11 GMT)

Rehana Zaman (Chair) Trustee

7

Independent Auditors' Report to the Members of LUX

Opinion

We have audited the financial statements of LUX (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including 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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees' annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, 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 misstatement of this other information, we are required to report that fact.

8

Independent Auditors' Report to the Members of LUX

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement set out on pages 6 and 7, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor's responsibilities for the audit of the financial statements

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

9

Independent Auditors' Report to the Members of LUX

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 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, we do not accept or assume responsibility to anyone other than the 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.

Mr Graham Berry FCCA (Senior Statutory Auditor) For and on behalf of Breckman & Company Ltd Statutory Auditors Chartered Certified Accountants

49 South Molton Street London W1K 5LH

16 November 2021

10

LUX

(Limited by Guarantee)

Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 March 2021

Unrestricted
Restricted
funds
funds
Notes
£
£
Income and endowments from:
2
Donations and legacies - page 12
238,092
-
Charitable activities
Artistic income - pages 12 - 13
283,171
150,259
Investments
493
-
Other - Museums & Galleries Exhibition Tax Relief
10,435
-
Total
532,191
150,259
Expenditure on:
Charitable activities:
Artistic programme - pages 14 - 15
495,297
195,473
Total
495,297
195,473
Net income/(expenditure)
3
36,894
)
(45,214
Transfers between funds
15, 16
3,218
)
(3,218
Net movement in funds:
40,112
)
(48,432
Reconciliation of funds:
Total funds brought forward
181,121
201,149
Total funds carried forward
15, 16
221,233
152,717		 2021
Unrestricted
Restricted
Total
funds
funds
£
£
£
238,092
202,899
-
433,430
282,839
243,965
493
1,308
-
10,435
-
-
682,450
487,046
243,965
690,770
483,548
238,413
690,770
483,548
238,413
)
(8,320
3,498
5,552
-
3,336
)
(3,336
)
(8,320
6,834
2,216
382,270
174,287
198,933
373,950
181,121
201,149		 2020
Total
£
202,899
526,804
1,308
-
731,011
721,961
721,961
9,050
-
9,050
373,220
382,270

The notes on pages 20 to 31 form an integral part of these financial statements.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.

11

LUX

(Limited by Guarantee)

Year ended 31 March 2021
2021
£
Income from donations and legacies
Grants
COVID-19 Emergency funding
ACE Culture Recovery Fund
10,000
HMRC Coronavirus Job Retention Scheme
21,090
Arts Council England
NPO funding
205,841
Donations
Sundry
1,161
238,092
Income from charitable activities
Artistic income
Distribution hires
127,324
Edition sales
17,500
Commissions
67,500
Publication sales
11,533
Distribution charges
13,746
Production services
2,470
Programming
21,195
Project income
10,615
Educational partnerships
9,010
Other income
2,278
283,171		 2020
£
-
-
202,122
777
202,899
163,022
8,625
30,000
11,294
24,589
10,541
4,054
6,261
15,080
9,373
282,839

12

LUX

(Limited by Guarantee)

Year ended 31 March 2021

Project specific funding
Grants/project income
Art Fund
British Council
Creative Scotland
Film Hub Scotland
Goethe-Institut Glasgow
The Paul Mellon Centre for Studies in British Art		 2021
£
6,000
-
134,059
4,200
-
6,000
150,259		 2020
£
3,600
1,460
233,200
5,000
705
-
243,965

13

LUX

(Limited by Guarantee)

Year ended 31 March 2021

Expenditure on charitable activities
Artistic programme
Artistic salaries
Project salaries
Social security costs
Staff pension costs
Print publicity/catalogue
Website
Education
Programming
Artistic projects
Project administration
Balance carried forward		 2021
£
82,288
91,624
13,238
8,115
2,835
4,764
85,645
13,584
71,953
6,269
380,315		 2020
£
88,964
86,234
14,876
8,439
618
696
4,097
50,297
86,753
29,166
370,140

14

LUX

(Limited by Guarantee)

Year ended 31 March 2021

Balance brought forward
Distribution costs
Opening stock
Closing stock
Salaries
Social security costs
Staff pension costs
Royalties
Edition expenses
Collection
Publication expenses
Distribution expenses
Production services
Touring
Sundry
Support costs - page 16
Governance costs - page 17		 2021
£
765
)
(622
76,909
5,877
3,846
65,828
6,783
2,797
-
5,239
2,692
10,150
5,270		 £
380,315
185,534
103,111
21,810
690,770		 2020
£
799
)
(765
81,146
7,031
4,058
96,448
2,437
5,356
5,010
12,609
8,037
11,634
4,482		 £
370,140
238,282
106,401
7,138
721,961

15

LUX

(Limited by Guarantee)

Year ended 31 March 2021

Support and governance costs
Support costs
Office overheads
Rent/rates
Services
Insurance
Amortisation of short leasehold
Depreciation of equipment
Depreciation of website
Administration costs
Salaries
Fees
Social security costs
Staff pension costs
Staff training/recruitment/welfare
Office supplies/courier/duty
IT
Business development
Sundry
Balance carried forward		 2021
£
31,259
7,350
4,582
5,658
3,256
4,685
28,814
2,232
1,968
1,293
5,406
1,787
4,412
30
379		 £
56,790
46,321
103,111		 2020
£
31,260
6,776
4,562
5,642
3,745
5,369
34,923
-
465
2,751
2,394
1,997
5,710
704
103		 £
57,354
49,047
106,401

16

LUX

(Limited by Guarantee)

Year ended 31 March 2021

Balance brought forward
Governance costs
Legal/professional
Bookkeeper fees
Accountancy/consultancy
Audit
Board meetings		 2021
£
6,945
7,765
2,500
3,750
850		 £
103,111
21,810
124,921		 2020
£
-
-
2,500
3,750
888		 £
106,401
7,138
113,539

17

LUX

(Limited by Guarantee)

Balance Sheet 31 March 2021

Notes
Fixed assets
Tangible assets
9
Current assets
Stocks
10
Debtors
11
Cash at bank and in hand
Liabilities
Creditors: amounts falling
due within one year
12
Net current assets
Total assets less current
liabilities
The funds of the charity:
Unrestricted funds
15
- General fund
- Designated funds
Restricted funds
16
Total charity funds		 2021
£
622
50,261
482,055
532,938
)
(166,126		 £
7,138
366,812
373,950
145,233
76,000
221,233
152,717
373,950		 2020
£
765
65,347
409,251
475,363
)
(112,812		 £
19,719
362,551
382,270
105,121
76,000
181,121
201,149
382,270

The trustees have prepared these accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The accounts were approved by the Board of Trustees on 16 November 2021 and signed on its behalf by

Rehana Zaman (Nov 22, 2021 13:11 GMT) Rehana Zaman (Chair) Trustee

alia syed alia syed (Nov 24, 2021 11:46 GMT)

Alia Syed Trustee

The notes on pages 20 to 31 form an integral part of these financial statements.

18

LUX

(Limited by Guarantee)

Cash Flow Statement for the year ended 31 March 2021

Notes
Cash flows from operating activities
21
Cash flows from investing activities:
20
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Net cash provided by investment activities
Change in cash at bank and in hand in the reporting
period
Cash at bank and in hand at the beginning of the
reporting period
Cash at bank and in hand at the end of the
reporting period		 2021
£
73,329
493
)
(1,018
)
(525
72,804
409,251
482,055		 2020
£
1,838
1,308
)
(10,245
)
(8,937
)
(7,099
416,350
409,251

19

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

1. Accounting policies

1.1. Basis of preparing the financial statements

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

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

1.2. Going Concern

The charity is dependent on the continued support of grant aiding bodies. The trustees believe that the charity will continue to receive this support and accordingly consider that it is appropriate to prepare the financial statements on the going concern basis.

1.3. Incoming resources

All incoming resources are included in the Statement of Financial Activities when:

- Donations and legacies

Grants/donations are recognised in incoming resources in the year in which they are receivable, except as follows:

- Charitable activities

Artistic income - income from hires, screenings, projects and sundry other artistic income is included in incoming resources in the period in which the relevant activity takes place.

Project specific funding - when donors specify that donations and grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

20

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

- Donated services and facilities

Donated services or facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

- Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.4. Expenditure

All expenditure is included on an accruals basis inclusive of any VAT which cannot be recovered and is recognised when:

- Charitable activities

Costs incurred in the touring and presentation of events, exhibitions and the production and distribution of artists film and video.

- Support costs

The administrative and overhead costs associated with running the office from which the company operates as well as governance costs. Support costs are wholly attributable to the artistic programme.

- Governance costs

Costs associated with the constitutional and statutory requirements of the charity.

1.5. Pensions

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised as expenditure when due.

1.6. Fund accounting

Funds held by the charity are either:

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

21

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

1.7. Tangible fixed assets and depreciation

Individual fixed assets costing £1,000 or more are capitalised at cost.

Depreciation is provided at annual rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

1.8. Stock

Stock is valued at the lower of cost and net realisable value.

1.9. Debtors

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

1.10. Cash at bank and in hand

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

1.11. Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting 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 normally recognised at their settlement amount after allowing for any trade discounts due.

1.12. Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value, and subsequently measured at their settlement value.

1.13. Significant Accounting Estimates and Judgements

In determining the carrying amounts of certain assets and liabilities, the charity makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The charity's estimates and assumptions are based on historical experience and expectation of future events and are reviewed annually.

2. Incoming resources

22

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

3. Net income for the year is

Net income for the year is
stated after charging: 2021 2020
£ £
Depreciation of tangible fixed assets 13,599 14,756
Operating lease rentals
- land/buildings 30,000 30,000
Auditors' remuneration
- external audit 3,750 3,750
- other services 2,500 2,500

4. Trustees' emoluments and reimbursed expenses

The trustees received no remuneration during the year (2020 - £nil).

The aggregated amount reimbursed to trustees during the year was £nil (2020 - £94). This related to travel expenses for one trustee.

5. Transactions with trustees

Royalty payments of £nil (2020 - £221) were paid in the year to trustee Erika Balsom.

Royalty payments of £25 (2020 - £830) and workshop fees of £150 (2020 - £nil) were paid in the year to trustee Alia Syed.

Royalty payments of £1,063 (2020 - £200) and workshop fees of £nil (2020 - £325) were paid in the year to trustee Rehana Zaman.

Workshop fees of £nil (2020 - £225) were paid in the year to trustee Jemma Desai.

23

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

6. Staff costs and numbers

Staff costs
Salaries and wages
Social security costs
Pension costs		 2021
£
279,635
21,083
13,254
313,972		 2020
£
291,267
22,372
15,248
328,887

No employee earned £60,000 or more during the year (2020 - nil).

The key management personnel of the charity comprise the Trustees and the Senior Management team. The total employee benefits of the key management personnel of the charity were £87,019 (2020 - £52,985).

Staff numbers

The average numbers of full-time equivalent employees (including casual and part time staff) during the year was made up as follows:


Artistic
Distribution
Administration
Projects		 2021
Number

3
3
1
4
11		 2020
Number
3
3
2
4
12

7. Pension costs

The company operates a defined contribution pension scheme in respect of its employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £13,254 (2020 - £15,248).

8. Corporation taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

24

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

9.
Fixed assets - tangible assets
Short
leasehold
property
Equipment
Website
£
£
£
Cost
1 April 2020
23,254
169,948
21,475
Additions
-
1,018
-
31 March 2021
23,254
170,966
21,475
Depreciation
1 April 2020
11,109
167,059
16,790
Charge for year
5,658
3,256
4,685
31 March 2021
16,767
170,315
21,475
Net book values
31 March 2021
6,487
651
-
31 March 2020
12,145
2,889
4,685
10.
Stocks
2021
£
Stocks
622
11.
Debtors
2021
£
Trade debtors
42,761
Other debtors
-
Prepayments and accrued income
7,500
50,261		 Total
£
214,677
1,018
215,695
194,958
13,599
208,557
7,138
19,719
2020
£
765
2020
£
49,743
604
15,000
65,347

25

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

12.
Creditors: amounts falling due
within one year
Trade creditors
Royalties payable
Other taxation/social security
Other creditors
Accruals
Deferred income (note 13)
13.
Deferred income
Balance at 1 April 2020
Amount deferred in the year
Balance at 31 March 2021		 2021
£
6,625
50,840
3,152
25,199
9,460
70,850
166,126		 2020
£
4,585
88,091
-
12,386
7,750
-
112,812
£
-
70,850
70,850

Deferred income relates to grant and hire income received in advance.

14. Limited by guarantee

The company is limited by guarantee and does not have a share capital. Each member gives a guarantee to contribute a sum, not exceeding £1, to the company should it be wound up. At 31 March 2021 there were 4 members.

26

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

15. Unrestricted funds Brought Incoming Outgoing Transfers Carried
forward resources resources forward
£ £ £ £ £
General fund 105,121 532,191 )
(495,297		 3,218 145,233
Designated funds:
Brexit mitigation 30,000 - - - 30,000
New space development 5,000 - - - 5,000
Staff fund 11,000 - - - 11,000
Systems software 5,000 - - - 5,000
upgrade
Building improvment 15,000 - - - 15,000
Fundraising consultancy 5,000 - - - 5,000
LUX Scotland reserve 5,000 - - - 5,000
fund
181,121 532,191 )
(495,297		 3,218 221,233

Brexit mitigation

To mitigate potential financial impact of No-deal Brexit and impact on LUX trading activity with EU states.

New space development

This fund was set up for new space development.

Staff fund

Training allowance and staff handover.

Systems software upgrade

This represents funding for the cost of internal system upgrades.

Building improvment

New air-conditioning system for archive, edit suite and public exhibition spaces.

Fundraising consultancy

Consultants hired to develop a new fundraising strategy for the development of the new LUX space.

LUX Scotland reserve fund

Reserve of LUX Scotland projects for transitional period and contingency.

27

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

16. Restricted funds Brought Incoming Outgoing Transfers Carried
forward resources resources forward
£ £ £ £ £
Aberdeen 2018 177 - - - 177
AMICN 3,600 - - - 3,600
AMIF - 23,700 )
(11,790		 - 11,910
Common Practice 4,576 - )
(2,119		 - 2,457
Enderby 6,323 - )
(5,586		 - 737
Fireworks - 6,000 - - 6,000
Receiver - 6,000 )
(4,825		 - 1,175
LUX Scotland 137,809 88,559 )
(128,148		 - 98,220
Margaret Tait Award 38,010 1,000 )
(17,535		 - 21,475
Margaret Tait Centenary 190 - )
(190		 - -
Marquiss 3,689 - )
(280		 - 3,409
Now & Next - 25,000 )
(25,000		 - -
Women & the Law 600 - - - 600
Collective
New
premises		 capital 6,175 - - )
(3,218		 2,957
expenditure fund
201,149 150,259 )
(195,473		 )
(3,218		 152,717

Aberdeen 2018

Pilot programme of screenings, workshops and other professional development activity to grow AMI engagement in Aberdeen.

AMICN

Grant from Art Fund for Artists' Moving Image Collection Network project.

AMIF

Annual artists' Moving Image Festival taking place at Tramway, Glasgow.

Common Practice

To support a Visual Arts Advocacy group, funds to be held by LUX.

Enderby

Publication related to Stephen Sutcliffe & Graham Eatough exhibition No End to Enderby.

Fireworks

New Annabel Nicolson publication project.

Receiver

Project exploring access in artists’ moving image.

28

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

LUX Scotland

Grant from Creative Scotland to support initiative for a LUX base in Scotland: exploring ideas around artists moving image practice through exhibition, distribution, publishing, education and research.

Margaret Tait Award

Annual award for a Scotland-based artist to produce an ambitious new film work.

Margaret Tait Centenary

Public programme celebrating 100 years since the birth of Scottish filmmaker Margaret Tait.

Marquiss

Creative Scotland grant for development of Duncan Marquiss film project.

Now & Next

Commisioning and professional development project in partnership with BBC Arts and Creative Scotland.

Women & the Law Collective

Exhibition project at LUX organised by Cinenova.

New premises capital expenditure fund

Funding from Cinenova to support the fit out of LUX and Cinenova's new premises in Waterlow Park.

The balance at 31 March 2021 is attributable to:
£
Tangible fixed assets
2,957
17.
Analysis of net assets between funds
General
Designated
Restricted
funds
funds
funds
£
£
£
Fund balances at 31 March 2021
are represented by:
Tangible fixed assets
4,181
-
2,957
Net current assets
141,052
76,000
149,760
145,233
76,000
152,717		 Total
£
7,138
366,812
373,950

29

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

18. Financial commitments

At 31 March 2021 the company had future minimum lease payments under non-cancellable operating leases, with payments falling due as follows:

Due:
Within one year
Between one and five years		 Land/buildings
2021
2020
£
£
30,000
30,000
22,500
52,500
52,500
82,500		 Land/buildings
2021
2020
£
£
30,000
30,000
22,500
52,500
52,500
82,500
82,500

19. Related party transactions

The company had no related party transactions that required disclosure during the year other than those included in notes 4 and 5.

20. Gross Cash Flows

Returns on investments and servicing of finance
Interest received
Capital expenditure
Payments to acquire tangible assets		 2021
£
493
)
(1,018		 2020
£
1,308
)
(10,245

30

LUX

(Limited by Guarantee)

Notes to the Financial Statements for the year ended 31 March 2021

21. Reconciliation of net income/(expenditure) to net cashflow from operating activities

Net income for the reporting period (as per the
statement of financial activities)
Depreciation/amortisation
Dividends, interest and rents from investments
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash inflow from operating activities		 2021
£
)
(8,320
13,599
)
(493
143
15,086
53,314
73,329		 2020
£
9,050
14,756
)
(1,308
34
)
(10,770
)
(9,924
1,838

31