Charty registration number 1121606 Company registration number 06113689 (England and Wales) NANTGARW CHINA WORKS TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 NANTGARW CHINA WORKS TRUST CONTENTS Page Trustees, report Independent examinerfs report Statement of financial activities Balance sheet Notes to the financial statements 8-18 NANTGARW CHINA WORKS TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2025 The trustees present their report and financial ststements for the year ended 31 March 2025. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practi￿ applicable to charities preparing their accounts in accordance wth the Financial Reporting Standard applicable in the UK Republic of Ireland (FRS 102) (effective 1 January 2019)" Objectives and activities Our charity's purposes as set out in the objects contained in the company's memorandum of association are: 1. to preserve for the benefit of the citizens of Glamorgan. the Nation and all who recognise the importance of Nantgarw porcelain in the history of ceramic manufacture ("the beneficiaries"). the historical, architectural and constructional heritage that may exist in and around Nantgaw and Taff s Well ("the area of benefit") in buildings (including any structure or erection, and any part of a building as so defined) of particular beaLty or historical, architectural or constructional interest. 2. to promote interest in Nantgarw porcelain and its pla￿ in the history of the manufacture of ceramics and the manufacture of pottery at Nantgarw through the development of a museum, collecting and exhibiting examples of NantgaN porcelain and pottery and other relevant ceramics and artefacts. 3. to establish, maintain and manage Nantgarw China Works as a centre for the promotion, practice and exhibition of contemporary ceramics and allied arts and crafts for the public benefit Iwthout distinction on the grounds of disability, gender, race, religion or belief, or sexual orientation), offering opportunities for artists and craftspeople to work at the site and by providing classes. workshops and other educational activities and events, and in co-operation wth any local authority, statutory body, voluntary organisation, or individuals in furtherance of its objects ("the objects"). Our vision for the next decade is to transform where the world's finest porcelain was made into a vibrant centre for ceramic history and contemporary innovation. Ensuring our work delivers our aims Our activities to deliver our charitable objectives fall into three main areas. namely preserving the historic buildings, some scheduled, that comprise the site,. operating and developing the museum,. and ensuring the production and teaching of ceramic crafts and developing interest in contemporary work. These aspects are reflected in the more detailed reports below. Achievements and performance 2024-25 continued to see the impact of rising costs, particularly the cost of electricity which inyacted significantly on profitability. Nevertheless, activity on the whole remained steady and significant progress was made towards identifying necessary strategic developments and seeking funding towards implementing them. Preserving the historic buildings Following an Options Appraisal or Project Feasibility study undertaken in 2023-24 the Trustees decided that the future of the site and operation was best safeguarded by attempting to progress a strategic redevelopment which would include conseNing all the historic Scheduled structures and bringing many of them into beneficial use. Re- roofing several of the structures would not only conserve the increasingly fragile ruins but crucially help ensure the site's sustainability by enabling increased visitor access and the expansion of interpretation and workshop space,. this extensive work was costed in 2023 at £3.650,000 excluding VAT but with lead-in times and work extending over two or three years would, wth inflation. probably rise to nearer £6 million. The Trust appointed Tricolor Associates in May 2024 to help them develop and manage a major funding application to the National Lottery Heritage Fund and others. An Expression of Interest was approved by NLHF in August 2024 and work proceeded with a view to submitting a full application by the end of the financial year, but this had to be delayed because of issues related to car parking, which were beyond the Trust's control. Nevertheless. a huge amount of preparatory work was done. all essential for when an application is submitted. ## **NANTGARW CHINA WORKS TRUST** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_ ## **Operating and developing the Museum** Claire Bentley began work as Strategic Development Manager in January 2024 and progressed with rationalising operational activities. Unfortunately, she decided that she could not remain in post for personal reasons but remained working part-time for the Trust from July to September. Mari Lowe was subsequently appointed from a good field of applications for the re-advertised post and joined us in December 2024. She has a background that encompasses museums, stakeholder engagement and project management in the public and charity sectors. Two new trustees, Elizabeth Powell and Lisa Cannon, were appointed during the year, both bringing relevant expertise and a knowledge of the site and its activities with them. A number of new volunteers joined during the year, and several volunteer training sessions were held, including dementia awareness and anti-racism, the latter also involving an audit of our collections under the Welsh Government’s Anti-racist Wales Action Plan scheme. An audit of our work with children resulted in us signing up to the Kids in Museum manifesto and receiving a grant to address the recommendations of the audit by providing resources to make the museum much more family friendly. Sadly, our initial attempt at delivering on a grant from the Group for Education in Museums to trial visits from local primary schools did not yield the results we'd hoped, largely due to the cost of conveying children from school. Work on the collections continued. Sarah Brown of the Collections Trust was funded via a Museums Federation Cymru grant to develop documentation and acquisitions procedures essential for Museum Accreditation. A small joint exhibition of their work by resident ceramicists Sally Stubbins and Lupin Wright in August proved very popular. ## **Teaching ceramic and allied crafts and developing interest in contemporary work** Our successful workshops are delivered by our three resident ceramicists and others. In response to demand, the number of workshops offered was increased as well as the number of places for students on each course. The Contemporary Art Society of Wales chose Nantgarw as the first recipient of their Hibbard Prize. It was decided that the £5,000 prize should be used to purchase works for our collection from three young makers - Toni de Jesus, Naomi Palmer and Sophie Joe Edwards. This reinforces the Trust's commitment to be about the present and the future as well as the past. ## **Financial review** Grants were received totalling £36,429 (2024: £12,666) of which £1,620 (2024: £544) were from Welsh Government. Memberships and donations provided the Trust with a total of £4,930 (2024: £8,552). Workshops provided an income of £77,553 (2024: £64,006) while the shop, tearoom and group visits produced £32,984 (2024: £48,741). The charity reported a deficit of £12,795 during the year (2024: £4,507 deficit) consisting of an unrestricted deficit of £10,407 (2024: £2,450 surplus) and a restricted deficit of £2,388 (2024: £6,957 deficit). The total net assets of the trust at the year end are £87,440 (2024: £100,235). ## **Reserves policy** The Trustees have decided that a reserve of £30,000 should be maintained, which is equivalent to 6 months of overhead costs. The total free reserves at the year-end are £36,156 (2024: £46,564). - 2 - NANTGARW CHINA WORKS TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Structure, governance and management Governing document The NantgaN China Works Trust is a company limited by guarantee govemed by its Memorandum and Articles of Association dated 19 February 2007. It is a registered charity wth the Charity Commission. Its members agree to contribute £1 in the event of the charty's winding up. Appointment of trustees The board of trustees, which can have up to 15 members, administers the charity- Up lo three individuals may be appointed by outside bodies. One third of the trustees not appointed by outside bodies must retire at each Annual Meeting, those longest in office retiring first and the choice be￿een any of equal service being made by drawing lots. The trustees may at any time criopt any person duly qualified to be appointed as a trustee, but a c¢>opted trustee holds office only until the nextAnnual Meeting. When considering co-opting twstees, the Board has regard to the requirement for any specialist skills needed. Nominees appointed by National Museum Wales and Rhondda Cynon Taf County Borough Council are subject to the appointment processes of those bodies. Trustee training New trustees are briefed on their legal obligations under charity and company law and all trustees are encouraged to seek training that would contribute to their work at Nantgarw. NANTGARW CHINA WORKS TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Referenu administratlve detai R•gistsr¢d charity name Nantgarw ￿tna Works T￿￿t Charity numb•r 1121606 Company reglstrath)n nUM￿r 06113689 Registered office Nantga￿ House T>la Gvryn Nantgarw Carolff CF15 7TB Trustees Dr Euryryn Wllam - Chairman Michael Morris - Company Secretsry Andrew Renton Kathryn Morris- Treasurer Deborah 8arker- Memb8r8hip Seuetsry Stephen P8t•r8 Celia Hunt Lisa Cannon - appointed 13106r24 Elizabeth Powell - appointed 131c6r24 Independent examiners Azets Audit Senfices Chartered Accountants and StatUlory￿dltgrs TyDe Lime Tree Court Caithff Gate ￿sIneSS Park Car(hff CF23 8AB Bankers Barc18y8 121 Queen Street Carthff CF14XR The trustees, report w88 approved by the Board of Trustees. Dr EuThYyn Wiliam Trustee Dated.. 20 2ozr NANTGARW CHINA WORKS TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF NANTGARW CHINA WORKS TRUST I report to the trustees on my examination of the financial statements of Nantgarw China Works Trust (the charity) for the year ended 31 March 2025. Responsibilities and basis of report As the trustees of the charity {and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Ad 2006 (the 2006 Act). Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity's financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5){b) of the 2011 Act. Independent examiner's statement I have completed my examination. I confimi that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act., or the financial statements do not accord wth those records., or the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination- or the financial statements have not been prepared in accordance wth the methods and principles of the statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concems and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Craig Yearsley FCCA Azets Audit se￿ices TyDe Lime Tree Court Cardiff Gate Business Park Cardiff South Glamorgan CF23 8AB United Kingdom . Dec2rrkbet 21y25 Dated.. NANTGARW CHINA WORKS TRUST STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Unrestricted Restricted funds funds 2025 2025 Total Unrestricted Restricted funds funds 2024 2024 Total 2025 2024 Notes Donations and legacies Charitable activities Investments 4,930 135,537 643 4.930 146.966 643 7,327 112,747 446 1,225 12,666 8,552 125,413 446 11.429 Total income 141,110 11.429 152.539 120,520 13,891 134,411 Charitable activities 152.365 12.969 165.334 118,070 20,848 138.918 Net outgoing resources before transfers (11,255) (1.540) (12,795) 2,450 16,957) {4,507) Gross transfers between funds (848) Net expenditure for the yearl Net movement in funds (10.407) (2.388) (12.795) 2,450 (6,957) {4,507) Fund balances at 1 April 2024 75,802 24,433 100,235 73,352 31,390 104,742 Fund balances at 31 March 2025 65.395 22.045 87.440 75,802 24,433 100,235 The statement of financial activities indudes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. NANTGARW CHINA WORKS TRUST BALANCE SHEET AS AT31 MARCH 2025 2026 2024 Fixed assets Tangible assets Current assets Stocks Debtors Cash at bank and in harKI 11 43.328 48,082 13 12 9,618 307 38.834 8.864 47.332 48.759 57.157 cr￿ltors.. amounts falling due within on• yur 14 (4.647) (5.004) Net current assets 44,112 52,153 Total a55ets less current liabilities 87,440 100,235 Incomè funds Restrided fvnds Unrestricted funds 16 22,045 65,395 24,433 75,802 87,440 100,235 The company Is enlltled to the exenytson from the audlt requiremenl c<)ntsined in secticm 477 of the Companles Act 2006, for the year ended 31 Marth 2025. The dlrectors a¢kno￿ledge thelr responsiblltles for complykng the rewirements of the Companies Act 2006 with respect to a￿o￿ntIng records and the prepatatlon of financlal statements. The members have not required the CO￿￿anY to obtain an au(It of its financial statsments for the year in questlon in accordance with secoon 476. These financial slatements have been prepared in a¢Mrdance valh the provislons applicable to companie8 subject to the small corrpanles regime. 20 202 S The financial stalernents were approved by theTrustees ......................... Dr EuThvyn Wll Trustee Company RggistrAtion No. 06113689 NANTGARW CHINA WORKS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Charity information Nantgam China Works Trust is a private company limited by guarantee incorporated in England and ￿les. The registered office is Nantgatw House, Tyla Gwyn, NantgaNI, Cardiff, CF15 7TB. 1.1 Accounting convention The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 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) (effective 1 January 20191" The charity is a Public Benefit Entity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Updats Bulletin 1 not lo prepare a Statement of Cash Flows. The financial statements are prepared in sterling, vthich is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Going concern At the time of approving the financial statements, the tnjstees have a reasonable expectation that Ihe charity has adequate resources to continue in operational existen￿ for the foreseeable future. Thus the trustees continue to adopt the going concem basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in fvrtherance of their charitable objectives. Restricted funds are subject to speafic conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial ststements. 1.4 Income Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless perfomiance conditions require deferral of the amount. Income tax recoverable in relation to donations received under GiftAid is recognised at the time of the donation. In the case of performance related grarrts, income must only be recognised to the extent that the tharity has provided the specified goods or services as entitlement to the grant only occurs when the performan￿ related conditions are met. Unrestricted grants are recognised when re￿ived. Income from other charitable activities is recognised On￿ received. Income from investments is induded in the year in which it is receivable. NANTGARW CHINA WORKS TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinued) 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure on charitable activities includes all costs relating to the furtheran￿ of the charitvs objectives as stated in the trustees report and their associated support costs. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impaimient losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases= Equipment 1 OOA straight line Assets in the course of construction are not depreaated. The gain or loss arising on the disposal of an asset is determined as the difference be￿een the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. 1.7 Impairment of fixed assets At each reporting end date. the charity reviews the carying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such Ind￿atIOn exists, the recoverable amount of the asset is estimated in order to determine the extent of the impaimient loss {if any). 1.8 Stocks stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. 1.9 Cash and cash equivalents Cash and cash equivalents indude cash in hand. deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafls. 1.10 Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset. with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. NANTGARW CHINA WORKS TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinued) Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity. or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another paty that is able to sell the asset in its entirety to an unrelated third party. Basic financial liabilities Basic financial liabilities, induding creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Derecognition of financial liabilities Financial liabilities are derecognised vthen the charity's contractual obligations expire or are discharged or cancelled. 1.11 Taxation As a registered charity, NanIga￿ China INorks Trust is entitled to the exemption from taxation in respect of income and capital gains received with sections 478489 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects purposes only. Critical accounting estimates and judgements In the application of the charity's accounting policies. the trustees are required to make judgements, estimates and assumptions about the Carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumpb'ons 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 cnly that period, or in the period of the revision and future periods where the revision affects both current and future periods. 10- NANTGARW CHINA WORKS TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Charitable activities 2025 2024 Workshops Shop, tea room and group visits Grants 77,553 32,984 36,429 64,006 48,741 12,666 146,966 125,413 Analysis by fund Unrestricted funds Restricted funds 135,537 11,429 112,747 12,666 146,966 125,413 Perforniance related grants Museums Federation Cymru Architectural Heritage Fund Interlink RCT Welsh Government- Cadw Association of Independent Museums Group for Education in Museums Welsh Govemment {Anti Racism Vvales Action Plan) Kids in Museums Contemporary Art Society of Wales Postcode Community Trust 2,709 5,712 4,810 1,000 544 600 100 1,500 1,620 500 5,000 25,000 36,429 12,666 Donations and legacies un￿tricted funds Unrestricted Restricted funds funds Total 2025 2024 2024 2024 Donations and gifts 4.930 7.327 1,225 8.552 11 NANTGARW CHINA WORKS TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Investments Unrestricted Unrestricted funds funds 2025 2024 Interest receivable 643 446 6 Charitable activities 2025 2024 Staff Costs Depreciation Project expenditure Workshop costs Shop, tea room and group visits Project costs Sundry Insurance Website costs Telephone Printing, postage and stationery Subscripiions Electricity Repairs Advertising Water rates 22,176 4,754 3,470 42,002 11,566 50,345 3,967 1,081 387 507 544 420 15,075 5,977 5,749 4,754 8,197 33,007 18,899 33.658 3.765 1.141 277 641 527 289 15,396 7,938 654 666 162,925 135,348 Share of governance costs (see note 7) 2,409 3,570 165,334 138.918 Analysis by fund Unrestricted funds Restricted funds 152,365 12,969 118,070 20,848 165,334 138,918 12- NANTGARW CHINA WORKS TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Support costs Support Governance costs costs 2025Support costs Governance costs 2024 Independent examination fees Legal and professional 2,340 69 2,340 69 2,040 1,530 2,040 1,530 2,409 2,409 3,570 3,570 Analysed be￿een Charitable activities 2,409 2,409 3,570 3,570 Governan￿ costs includes payments to the independent examiners of £2,340 (2024 independent examination fees. £2,040) for Trustees None of the trustees (or any persons connected wth them) re￿iVed any remuneration or benefits from the charity during the year. Paid Staff The average monthly number of paid staff during the year was: 2025 Number 2024 Number Employment costs 2025 2024 Vwdges and salaries 22,176 5,749 There were no employees whose annual remuneration was more than £60,000. 10 Taxation The charity is exempt from tax on income and gains falling wthin 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. 13- NANTGARW CHINA WORKS TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 11 Tangible fixed assets Equipment Cost At 1 April 2024 63,706 At 31 March 2025 63,706 Depreciation and impaimient At l April 2024 Depreciation charged in the year 15,624 4,754 At 31 March 2025 20,378 Carrying amount At 31 March 2025 43.328 At 31 March 2024 48.082 12 Debtors 2025 2024 Amounts falling due within one year: Prepayments 307 961 13 Stocks 2025 2024 Finished goods and goods for resale 9,618 8,864 14 Creditors: amounts falling due within one year 2025 2024 Other taxation and social security Other creditors Accruals 422 250 3,975 467 4,537 4,647 5,004 14- t3) 0 (O 00 -00 coo (WOOr o (w ￿ c¥) o) co* or400 (i1<￿¥[L￿CLL)<