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2023-04-30-accounts

Charity registration number 1125752

Company registration number 06364836 (England and Wales)

THE BRITISH MUSIC EXPERIENCE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023

THE BRITISH MUSIC EXPERIENCE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees S Weil
H Goldsmith CBE
K Harris OBE
K McManus
Sir M Featherstone-Witty
S Galbraith
E Koravos
J Collins (Appointed 27 March 2023)
Secretary Broadway Secretaries Limited
Charity number 1125752
Company number 06364836
Principal address Cunard Building
Liverpool
Merseyside
L3 1DS
Registered office One Bartholomew Close
London
EC1A 7BL
Independent examiner Simon Evans FCA
Lewis Evans Partnership LLP
The Oaks
3 Village Road
West Kirby
Wirral
CH48 3JN
Bankers Barclays Bank Plc
1 Churchill Place
London
E14 5HP
Solicitors BDB Pitmans LLP
One Bartholomew Close
London
EC1A 7BL

THE BRITISH MUSIC EXPERIENCE

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent examiner's report 7
Statement of financial activities 8
Balance sheet 9
Statement of cash flows 10
Notes to the financial statements 11 - 20

THE BRITISH MUSIC EXPERIENCE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 APRIL 2023

The Board of Trustees, who are the Directors of the British Music Experience (“the Charity”), present their report for the year ended 30 April 2023 under the Companies Act 2006 and the Charities Act 2011, together with the financial statements for the year. Comparatives are for the year ended 30 April 2022.

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 governing document, 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 2019).

Reference and Administrative Details

The charity is a registered charity (No. 1125752) and a registered company (No. 06364836) limited by guarantee and registered under the laws of England and Wales. Its registered office is as shown on the legal and administrative information page. As a registered company the Charity’s accounts are filed with the Registrar of Companies.

The present Trustees, who are the Directors of the Charity for Companies Act Purposes, are listed on the legal and administrative information page. The Charity carries out charitable activities in accordance with its stated objective. The liability of each of the Charity’s members is limited to an amount no greater than £1. If the Charity is wound up or dissolved and there remains any property, it shall not be paid to or distributed among members of the Charity, but shall be given or transferred to some other charity or charities having objects similar to the Objects of the Charity.

Objectives and Principal Activities of the Charity

The purposes of the Charity are to advance the education of the public in the history, science and culture of British popular music from its origins to the present day by the:

The Charity’s objectives are pursued primarily by the operation of an interactive exhibition known as the British Music Experience (the “Museum”).

Structure, Governance and Management

The Charity is governed by a Memorandum and Articles of Association, which were originally adopted on 7[th] September 2007. The Memorandum and Articles of Association were amended on 1st September 2009 and 19th October 2015 under resolution.

Trustees are appointed in accordance with the Articles of Association of the Charity. The Trustees were selected foremost because of their charity and British music industry expertise, but also because of their knowledge of how music can benefit the public. The Trustees are familiar with the practical work of the Charity and many of them have been involved with BME since its inception. Trustees are encouraged to familiarise themselves with the Charity and the context within which it operates, as well as receiving guidance on their responsibilities as Trustees. The Trustees are also directed to the Charity Commission guide ‘the Essential Trustee’.

New trustees undergo an orientation meeting with the Chair and Principal Officers to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity. Trustees are encouraged to keep fully up to date with Charity Commission best practice.

Group Structure

The British Music Experience group consists of one legal entity:

THE BRITISH MUSIC EXPERIENCE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

Risk Management

The Charity uses a risk management process to assess business risks and implement risk management strategies.

The risk assessment is carried out at regular Operations meetings of management as well as at Trustee meetings and involves identifying the types of risks the Charity faces, prioritising them in terms of potential effect and likelihood of occurrence and identifying means of mitigating them. As part of this process, the adequacy of the Charity’s current internal controls is also reviewed. Procedures have been established for reporting failings immediately to appropriate levels of management and, where applicable, to the Trustees.

After reviewing the risks to the Charity at the year end, the Trustees concluded the Charity has taken all prudent and reasonable steps to minimise the overall risks to the organisation; that the current policies and procedures governing risk management are appropriate; and that the system of internal checks and balances they have put in place serves to safeguard the Charity sufficiently against the risks it might face.

Achievements and Performance

The main objectives outlined in the previous reporting period were primarily objectives to increase footfall, develop the Museum’s business plan ahead of lease renewal, to seek additional funding opportunities and to continue to grow the Collection.

The Museum

The Charity’s primary charitable objective is the presentation and display of the British Music Experience’s collection of objects, instruments, stage outfits and digital archive charting the history of popular music from 1945 to present day. During the reporting period, BME was not impacted from Covid-19 closures and was able to revert to a normal operating schedule for the entire period.

Museum footfall during the reporting period was 45,489 (31,398 in 2022) comprised of a mix of domestic tourists, international tourists, individuals and families. The Museum has recovered to pre-Covid levels in most areas although there remains a failure of groups and especially student groups returning to pre-Covid levels.

The Museum celebrated again winning Small Visitor Attraction of the Year at the Liverpool Regional Tourism Awards. Social media commentary, press reviews and visitor feedback remained excellent with consistent reference made to the excellent staff interaction with 4.5 - 5 reviews achieved across our three visitor feedback platforms. BME received its sixth consecutive Trip Advisor Certificate of Excellence. The Museum is also on the InProcess List for Accreditation through Arts Council England, a process that can take up to three years. It will improve our conservation skills and collection management policies, ultimately allowing the Charity to apply for Arts Council funding only available to accredited museums.

Operations

The BME continued to develop its business plan focusing on increasing revenues and taking concrete steps to ensure a smooth lease renewal.

BME had previously introduced the 12-month unlimited entry model which has been continued and has widely been praised by visitors, especially local residents as excellent value. The admissions model has benefited BME by allowing the organisation to better achieve its charitable objectives by increasing the accessibility to local residents or any visitor who can now return and learn about the collection and content as many times as they would like across a 12 month period. BME further benefits by receiving 25p for each £1 which has created an important revenue stream to support the organisational resilience and content growth and development. To further develop this element the Museum introduced Gift Aid declarations online at the point of ticket sales. This was supplemented with ongoing staff training and daily reporting on Gift Aid declarations.

Aligned with the Museum’s ticketing strategy, BME increased the lead adult ticket price in the reporting period to £17. Additionally, we introduced an online discount and in-venue pricing to encourage pre-booking. The Museum has seen a 15% increase in Average Ticket Price during the reporting period.

BME sustained its partnership with the organisations Strawberry Fields and in the reporting period have placed three individuals with disabilities into supported work experience.

THE BRITISH MUSIC EXPERIENCE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

Notably, the Eurovision Song Contest announced Liverpool as its host city for May 2023. During this reporting period, the focus shifted with the entire city to embrace this opportunity and showcase Liverpool and the Museum on a worldwide stage. Five months of this reporting period saw management and programme focus on re-planning to embrace this relevant opportunity. BME featured as the location when Liverpool was announced as host city and featured as press event space 3 more times in the reporting period.

Temporary Exhibitions, Acquisitions and Loans

The Museum updated the digital content for the 2022 timeline and the BRITs pavilion. There were two temporary exhibitions hosted in the reporting period. Firstly, Don’t You Forget About Me: Celebrating Scottish Rock and Pop. Secondly, 70 Years of the Official Singles Chart which looked at The Official Charts through memorable singles which have been a central part of British popular culture for 70 years and counting. The BME also accepted two Loans to the Collection; Midge Ure’s trench coat from music video ‘Vienna’ and the coat worn on stage during the opening of Live Aid 1985 by Midge Ure, Ultravox.

The temporary exhibitions are free with general admissions.

Education Programme

The Education programme experience additional recovery following Covid 19 during the reporting period. BME welcomed 2,549 students on school field trips in the period. BME developed and launched a new workshop EuroPop Culture aimed at Key Stages 3 and 4.

Public Programmes

The Museum’s roster of Public Programmes aims to complement the Museum, Temporary Exhibitions, the Education Programme and seasonal/local events. In 2022-23 we welcomed 1,393 attendees to our programmes.

The Gibson Brand Interactive Studio

The Gibson Studio continues to be one of the most popular parts of the BME. It provides interactive tutorials from beginning, intermediate and advanced skill levels. The studio offers a range of high-end Gibson guitars (electric and acoustic), bass guitars, drums, keyboards and a vocal booth. Staffed with a musician, the studio offers a musicmaking experience to all its visitors. The Museum’s partnership with Gibson continued to develop with maintained and new instruments added. Additionally, the Museum is planning a new temp exhibition with Gibson celebrating 150 Years of Epiphone. While planning began in the reporting period, the temporary exhibition is to occur in the next reporting period.

Objectives

The Charity’s objectives over the next reporting period from 01 May 2023 to 30 April 2024 are formulated recognising the sector has mostly recovered from Covid 19. The objectives include:

To measure success, the Trustees will set the following KPI’s:

THE BRITISH MUSIC EXPERIENCE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

At the point in time of approval of this report, the Trustees are of the opinion that the Charity will be able to meet any current and future obligations as they fall due for at least twelve months from the date of approval of these financial statements. These financial statements have therefore been prepared on a going concern basis.

Creditor payment policy

The Charity’s policy, in relation to all its suppliers, is to settle the terms of payment when agreeing the terms of the transaction and to abide by those terms provided that it is satisfied that the supplier has provided the goods or services in accordance with the agreed terms and conditions. The Charity does not follow any code or standard on payment practice.

Employees

Applications for employment of disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of staff becoming disabled, every effort is made to ensure that their employment with the company continues and that appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.

The charity places considerable value on the involvement of its employees and has continued its practice of keeping them informed of matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings. Employees are consulted regularly on a wide range of matters affecting their current and future interests.

Financial Review and Results for the year

The Statement on Financial Activities set out on page 8, shows the following results for the year.

Income Generation

Income generated by the Charity during the year ended 30 April 2023 was £775,014 (2022: £723,384).

Resources Expended

Total resources expended by the Charity during the year ended 30 April 2023 amounted to £865,469 (2022: £689,256).

Reserves

The Trustees do not have a formal reserves policy at this time. The Charity will utilise reserves to stabilise and recover the operation. The total reserves of the Charity were £311,907 (2022: £402,362) at the end of the year. The reserves held by the Charity are for the purposes of supporting the Museum and providing a cash flow reserve for operating expenses.

Public Benefit Declaration

The Trustees confirm that they have had regard to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and setting goals for the year.

In particular, those benefitting from the Charity’s work are:

In response to the needs of these groups we have developed the education and public programmes both of which foster links with the music, education and museum sectors, inspiring interest and engagement with the industry.

THE BRITISH MUSIC EXPERIENCE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

The trustees' report was approved by the Board of Trustees.

Harvey Goldsmith

Harvey Goldsmith (Jan 22, 2024 18:06 GMT)

..............................

H Goldsmith CBE Trustee 22/01/2024 Date: .............................................

THE BRITISH MUSIC EXPERIENCE

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 30 APRIL 2023

The Trustees, who are also the directors of The British Music Experience for the purpose 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 Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE BRITISH MUSIC EXPERIENCE

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE BRITISH MUSIC EXPERIENCE

I report to the Trustees on my examination of the financial statements of The British Music Experience (the Charity) for the year ended 30 April 2023.

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 Act 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

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns 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.

Simon Evans (Jan 22, 2024 18:08 GMT)

Simon Evans FCA Lewis Evans Partnership LLP

The Oaks 3 Village Road West Kirby Wirral CH48 3JN

22/01/2024 Dated: .........................

THE BRITISH MUSIC EXPERIENCE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 APRIL 2023

Unrestricted
Unrestricted
Restricted
funds
funds
funds
2023
2022
2022
Notes
£
£
£
Income from:
Donations and legacies
3
500
64,218
157,010
Charitable activities
4
504,508
364,829
-
Other trading activities
5
270,006
137,327
-
Total income
775,014
566,374
157,010
Expenditure on:
Raising funds
6
236,308
130,195
27,371
Charitable activities
7
629,161
402,051
129,639
Total expenditure
865,469
532,246
157,010
Net income/(expenditure) and movement in
funds
(90,455)
34,128
-
Reconciliation of funds:
Fund balances at 1 May 2022
402,362
368,234
-
Fund balances at 30 April 2023
311,907
402,362
-		 Total
2022
£
221,228
364,829
137,327
723,384
157,566
531,690
689,256
34,128
368,234
402,362

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

THE BRITISH MUSIC EXPERIENCE

BALANCE SHEET

AS AT 30 APRIL 2023

Notes
Fixed assets
Tangible assets
12
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
17
Net assets
The funds of the Charity
Unrestricted funds		 2023
£
11,649
50,557
278,266
340,472
114,340		 £
110,775
226,132
336,907
(25,000)
311,907
311,907
311,907		 2022
£
11,049
37,262
236,869
285,180
80,174		 £
232,356
205,006
437,362
(35,000)
402,362
402,362
402,362

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 April 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

22/01/2024

The financial statements were approved by the Trustees on .........................

Harvey Goldsmith

Harvey Goldsmith (Jan 22, 2024 18:06 GMT) .............................. H Goldsmith CBE

Trustee

Company registration number 06364836 (England and Wales)

THE BRITISH MUSIC EXPERIENCE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 APRIL 2023

Notes
Cash flows from operating activities
Cash generated from operations
20
Investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
(999)
(9,647)		 £
52,043
(999)
(9,647)
41,397
236,869
278,266		 2022
£
(1,317)
(5,000)		 £
154,288
(1,317)
(5,000)
147,971
88,898
236,869

THE BRITISH MUSIC EXPERIENCE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023

1 Accounting policies

Charity information

The British Music Experience is a registered charity and private company limited by guarantee incorporated in England and Wales. The registered office is One Bartholomew Close, London, EC1A 7BL.

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, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which 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 Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The lease renewal process is ongoing but the Trustees are confident that this will be completed in 2023-24, and expected lease costs have been factored into the 2024-25 budget. The Trustees continue to adopt the going concern 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 furtherance of their charitable objectives.

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

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.

Income from government grants and contracts is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants and contracts have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income from ticketing sales and events is recognised at the fair value of the consideration received or receivable and is shown net of VAT.

Income from catering and retail represents the value of goods sold net of VAT.

THE BRITISH MUSIC EXPERIENCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Liabilities are recognised as expenditure once there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated to the charitable activity in the statement of financial activities.

Governance costs include those costs incurred in the governance of the charity's assets and are primarily associated with constitutional and statutory requirements.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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 basis:

Computers 20% straight line Exhibition asset Over the 7 year lease

1.7 Heritage assets

Heritage assets, primarily the music related exhibitions, are not included in the accounts of The British Music Experience at any value. This is in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), which specifies that assets held in furtherance of the objects of the charity for long term preservation and for which reliable cost information is not available and conventional valuation approaches lack sufficient reliability, can be excluded from the balance sheet.

1.8 Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

THE BRITISH MUSIC EXPERIENCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

1 Accounting policies

(Continued)

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11 Financial instruments

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

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

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at 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.

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

1.12 Employee benefits

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

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

THE BRITISH MUSIC EXPERIENCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

1 Accounting policies

(Continued)

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 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 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 periods where the revision affects both current and future periods.

The trustees do not believe there to be any judgements or estimates that would be considered critical to the financial statements.

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
500
-
Grant income
-
-
500
-
Grants receivable for core activities
Coronavirus job retention
scheme grant funding
-
-
Liverpool City Council -
Covid-19 support grants
-
-
The National Lottery
Heritage Fund - Culture
Recovery Fund for
Heritage
-
-
Kickstart scheme funding
-
-
-
-		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
500
-
-
-
64,218
157,010
500
64,218
157,010
-
-
64,098
-
49,218
-
-
15,000
79,200
-
-
13,712
-
64,218
157,010		 Total
2022
£
-
221,228
221,228
64,098
49,218
94,200
13,712
221,228

THE BRITISH MUSIC EXPERIENCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2023

4 Charitable activities
2023 2022
£ £
General admission and ticketing income 504,508 364,829

5 Other trading activities

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Café income 151,789 69,367
Shop income 82,407 54,565
Event income 35,810 13,395
Other trading activities 270,006 137,327

6 Raising funds

Unrestricted
Unrestricted
Restricted
funds
funds
funds
2023
2022
2022
£
£
£
Trading costs
Cost of goods sold in shop and cafés
99,217
46,340
-
Event expenses
5,293
3,434
-
Staff costs
131,798
80,421
27,371
Trading costs
236,308
130,195
27,371
236,308
130,195
27,371		 Total
2022
£
46,340
3,434
107,792
157,566
157,566

THE BRITISH MUSIC EXPERIENCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

7 Charitable activities

Staff costs
Depreciation
Storage
Exhibition costs
Income consultancy expenses
Advertising and promotional
Credit card charges
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds
8
Support costs allocated to activities
Professional costs
Other costs
Secondment and exhibition support
Insurances
Licences and royalties
IT software and consumables
Rent and rates
Cleaning and maintenance
Accountancy
Other support costs
Governance costs
Analysed between:
Charitable activities		 2023
£
252,511
122,580
1,600
28,474
16,363
4,995
15,301
441,824
182,724
4,613
629,161
629,161
-
2023
£
-
454
265
8,516
46,124
10,507
83,042
18,706
5,245
9,865
4,613
187,337
187,337		 2022
£
246,346
122,287
1,300
27,421
7,392
3,107
8,819
416,672
111,213
3,805
531,690
402,051
129,639
2022
£
7,200
594
512
8,073
32,523
10,007
21,858
11,834
8,023
10,589
3,805
115,018
115,018		 2022
£
246,346
122,287
1,300
27,421
7,392
3,107
8,819
416,672
111,213
3,805
531,690
402,051
129,639

THE BRITISH MUSIC EXPERIENCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

8
Support costs allocated to activities
Governance costs comprise:
Legal and professional
Independent examination fees		 (Continued)
2023
2022
£
£
363
305
4,250
3,500
4,613
3,805		 (Continued)
2023
2022
£
£
363
305
4,250
3,500
4,613
3,805
3,805

9 Trustees

E Koravos, the Executive Director of the charity, was appointed as a Trustee in January 2022. Remuneration as a Trustee was £35,440 (2022: £10,238 as Trustee, and total remuneration of £29,485).

None of the other Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.

10 Employees

The average monthly number of employees during the year was:

Full time staff
Part time casual staff
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
11
8
19
2023
£
353,453
23,473
7,383
384,309		 2022
Number
14
5
19
2022
£
335,031
12,728
6,379
354,138

There were no employees whose annual remuneration was more than £60,000.

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

THE BRITISH MUSIC EXPERIENCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

12
Tangible fixed assets
Computers
£
Cost
At 1 May 2022
2,622
Additions
999
At 30 April 2023
3,621
Depreciation and impairment
At 1 May 2022
1,327
Depreciation charged in the year
724
At 30 April 2023
2,051
Carrying amount
At 30 April 2023
1,570
At 30 April 2022
1,295
13
Stocks
Finished goods and goods for resale
14
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
15
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year		 Exhibition
asset
£
852,336
-
852,336
621,275
121,856
743,131
109,205
231,061
2023
£
11,649
2023
£
5,405
12,321
32,831
50,557
2023
£
35,353
10,353
25,000		 Total
£
854,958
999
855,957
622,602
122,580
745,182
110,775
232,356
2022
£
11,049
2022
£
6,688
8,478
22,096
37,262
2022
£
45,000
10,000
35,000

THE BRITISH MUSIC EXPERIENCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 APRIL 2023

15 Loans and overdrafts

(Continued)

The bank loan is unsecured and is on a term of 6 years, repayable in monthly instalments from November 2021. Interest is at a fixed rate of 2.5%, which is also applicable from November 2021 as the UK Government covered the interest due under the loan for the first 12 months. No repayment of capital was required during the first 12 months of the loan.

16 Creditors: amounts falling due within one year

Notes
Bank loans
15
Other taxation and social security
Deferred income
Trade creditors
Other creditors
Accruals
Creditors: amounts falling due after more than one year
Notes
Bank loans
15		 2023
£
10,353
30,866
4,942
57,889
5,890
4,400
114,340
2023
£
25,000		 2022
£
10,000
18,589
5,811
33,335
2,822
9,617
80,174
2022
£
35,000

17 Creditors: amounts falling due after more than one year

Lessee

At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2023
£
95,667
4,426
100,093		 2022
£
121,847
97,993
219,840

THE BRITISH MUSIC EXPERIENCE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2023

19
Analysis of changes in net funds
At 1
Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year
20
Cash generated from operations
(Deficit)/surplus for the year
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
(Decrease) in deferred income
Cash generated from operations		 May 2022
Cash flows At 30 April 2023
£
£
£
236,869
41,397
278,266
(10,000)
(353)
(10,353)
(35,000)
10,000
(25,000)
191,869
51,044
242,913
2023
2022
£
£
(90,455)
34,128
122,580
122,287
(600)
(6,943)
(13,295)
41,509
34,682
(10,504)
(869)
(26,189)
52,043
154,288