Charity reglstratlon number 1149284 Company regl$lratlon number 6635326 {England and Wales MERCURIALARTS LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 JANUARY 2024
MERCURIALARTS LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trustees OJKScott R Hayhow C L Hegenbarth N Dodzo Secretary OJKScott Charlty number 1149284 Company number 6635326 Registered office Studio 11a Canal Warehouse Leicester Row Coventry CV14LH Independent examlner Azels Audit Services 3Mc Middlemarch Business Park Siskin Drive Coventry CV3 4FJ
MERCURIAL ARTS LIMITED CONTENTS Page Trustees report IrKJependenl examiner's report Slal&menl of financial activities Balance sheet Notes to the financial slalerllenls 7-13
MERCURIAL ARTS LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT FOR THE PERIOD ENDED 31 JANUARY2024 The trustees present their annual report and financial slalemenls for the period ended 31 January 2024. The financial slalemenls have been prepared In accordance with the accounting polici8s sel out in note 1 to the financial slalemenls and comply with the charity's governing document. the Companies Act 2006 and "Accounting and Reporting t>y Charities. Statèment of Recommended Practice applicable lo charities preparing their account5 in accordance wlh the Financial Reporting Standard applicable In the UK and Republic ol Ireland IFRS 1021 leffective 1 January 20191 Objectives and activitie5 In accordance with the Memorandum of Association of Mercurial Arts Limited the company's objectives are.. To promote, maintain, improve and advance education by the encouragement of the arts including, wilhoul Iimilalion, the arts of drama, mime, dance, singing and music. Mercurial Arts, current focus is primarily on enhancing the lives of Young People through the arts" as participants and 8udience5. We wotk with Young People who do not normally have aecess lo the arts and are from areas identified as suffering ftom socio - econornic deprivation. 11 To create ambitious perfo[rnan and art In a vanety ol sellings that mixes danc8 and technology, for and with young people 21 To advance practice." bringing Inspiration. challenge, confiden and a sense of achievement irrto the lives of the young people we work with 31 To develop and promote a physical space lor the making and presenting a programme of work 41 To lake an integrated, holis15C approach lo the development and opportunities we provide our benefi¢iaries 51 To grow the charity in 8 Sustainable & strategic way, placing our work on national & international plafforms The public benefits of the Company are the promotion. maintenance and advancerllenl of the arts. The public benefits directly relate lo the company's key tsbjeclives. No detriment or harm arises from the company providing the public benefits In shaping the objectives for the year and planning the charity's activit$. the trustees referred lo 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. AchlevÈmènts and performance The 2023-2024 accounts year represent a short year. moving the year end lo 31 st January 2024, In (wder to better synchronise our accounting periods with the majority of our projects. delivery and reporting. During this period. ongoing fundraising activities conb'nued and we were successful In gaining an Arts Council Project Grant loi EmbodyXR of £75.913. EmbodyXR is a digital health and wellbeing programrne of work in libraries and community ¢enlres, which builds on the Research and Development project we undertook last financial year It iq delivered wlh Ivlercurial Dance. Reporting for this project will be in the 2024-2025 financial year. Diversity and InGlusion. Across our programmes we have a highly diverse cohort of young people we support. and through our employment processes, we actively seek to create opportunitie5 for artists identifying as from ethnic minority backgrounds. Our work continues to champion our approaches lo working wilh underrepresented groups with our participants, collaborators and the narratives our work tells", including centering neurodivergent characters sloiies in work. and art151slcollaboralors from underiepre5enled backgrounds. The demographic profile ol our organisation is more diverse than the national average lor arts organisalions at board and company's core ladmin leaml. We continue to strive lo lead best practicè In this area and are well supported by our board of Iruslees and the expertise they bring. We serve young people from areas o150cio-economic deprivation.. all of the areas we worked in this year are in the lowest 10Qfi MDPI most deprived warols. We serve needs holistically, including food provision as necesrY, in recognition that the level of children's engagement Is dependent upon how their multitude ol needs e mel. Through anecdotal information, we are mindful that in some individual sitLJations our workshop spaces provide a safer, more Inclusive and nurturing environment for the children than their hDme5 do. 11 is a reminder that our work with vulnerablè cohorts doesn't exist in a vacuum and is most beneficial when working through partnerships that support, and see the potential of each child in the whole.
MERCURIAL ARTS LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE PERIOD ENDED 31 JANUARY2024 Financial rgviow During the current period the charity has returned a surplus of £72,380 12023.. £28.052 defl¢ill. This reflects the new project funding re¢ognised in the peiiod and which will be spent over the subsequent period as the project develops. 11 is the policy of the charity that unre51ricted funds which have not been designated for a specific use shoul¢J be mainlained at a level equivalent to between three and six month's expenditure. The trustees considers that reserves al this lovel will 8nsure that, in thè event of a significant drop in fLJnding, they will be able to continue the charity's current activities while Consideration is given lo ways in which additional funds may be raised. The Iruslees acknowledge that the charity has not yel reached this position and are Gonlinuing eff(Yls lo meet this policy. As of the 31 January 2024. the charity had nel assets of £70,768. This ¢omprises the deficit on the unrestricted funds of £4.736 and the balance of £75,504 on the restricted funds. As detailed elsewhere in the financial statements the charity benefits from cashflow sUPPOrt from Mercurial Dance Ltd and the main charity liabilits'es are owed lo this creditor. Due to the close relationship beèn the charity and Mercurial Dance, the creditor will no demand iepaymenls of the loan amount until the charity has SLJffi¢ient reserves lo enable il lo do SO. The Board is aware ol ils responsibility lo identify and review the major risks lo which the cotnpany is expDsed and to implement systems to mitigate Ihose ii5ks. The funding received dLJnng the year has helpèd to develop the charity and part of this has been to strengthen the charity's systems and pro¢e(Jures. Mercurial Arts. business model of projact based working and freelance 8mploymenl structure5, mean the Iruslees consider that the organi5alion is viable 90ing for¢rfard. Mer¢urial Arts rernalns resilient and resourceful in responding to the needs and challenges our audiences. participants. pariners and fundéis face as we emerge from this period and wè will conlinLJe lo lake an innovative approach lo delivering our work. Stru¢turo, governan¢e and management The chaiity is controlled by ils governing document, a deed of Irusl, and conslilules a limited company, limited by guarantee. as defined by the Companies Act 2006. Mercurial Arts Limited is a charitsble company limited by guarantee, incorporated on the 1st July 2008. The company is governed by a Memorandum and Articles of AssoGialion. 11 registered as a charity with the Charity Commission on the 11th October 2012 and on this dale the chanty took over the asse15 and liabilities ol the limited company called MerGurial Arts Limited al this date. In the event DI the company being wound up. all mewbers present and 12 months pa51 are required to conirlbule an amount not exceeding £10. The trustèès. who are alsts the directors for the purpose ol company18w, and who served during the period and up lo the date of signature of the financial statemen15 were.. OJKScoll R Hayhow C L Hegenbarth N Dodzo The directors of the company are also charity ITustees lor the purposes of charify law and Ljnder the company's Articles are known as members. Under the requirements of the Memorandum and Articles ol Association members are appointed by applying for admission in writing lo the Board of Direclors who will decide whelher to aijmit or rèject the appliGanl. The number of direcfors shall not be less than three. At every subsequent AGM, one third ol the directors musl retire. The direclors lo retire by rolalion are those who have been longèst in office since their last appointment or re-appoinlmenl.
MERCURIALARTS LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS. REPORTI (CONTINUED) FOR THE PERIOD ENDED 31 JANUARY 2024 Leadorship, Govornance and Managern•nt The charity structures its delivery by drawing together, coordinating and contracting teams of freelance individuals and sma11 bLJsiness to deliver the specific projects, needs. This brings agility, responsiveness and minimises financial risks associated with the projecl-based funding model in the arts sector. We develop relalion3hips with our teams across projects, drawing In and benefiting from expertis& they bring to our work. O Scott works with the board ol Iruslees to develop the leadership approach and articulate the programme. Through the partnerships we develop with key organisations, we extend the charity's reach and impact. benefiting from in-kind support, goodwill and inlangibles thal further advance the oharilies mission. There is a material link with MerGuri81 Dance Limited, owned by trustee O. Scott. His trustee role is entirely voluntary, and as with all ol the board, he brings in-kind and intangible benefits to the charity in terms of donoted time, expertise and leadership. The charity benefits from cash flow support from Mercurial Dance, detailed in the balance sheet loan of £6,839 owed at thè yèar ènd. This relates Its invoices deferred to SLJPPOrt the cashflow management against financial end point paymènt rèlèases, where active projècts cross the financial year. and ensLJres that our team DI contractors are paid prompuy while funders conclude their evaluation processes. Fees lo Mer¢uTial Dance rèlate to artistic direction. choreography and project leadership by O. SGott. Fees scale year lo year according to OLJtPLJts. This approach is reviewed annually by the board. The trusl sre rt was approved by the Board of Trugtèes. N Dodzo Trustee Date".
MERCURIAL ARTS LIMITED INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MERCURIAL ARTS LIMITED I report lo the Iruslees on my examination of the financial statements of Mercunal Arts Limited (the chaiilyl for the Perw)d ended 31 January 2024. Responslbllities and basls of report As the Iruslees of the charity18nd also ils directors for the purposes of Company lawl you are responsible for the preparation ol the financial statements in accordance with the requirements of the Companies Act 2006 Ilhe 2006 Acll Having satisfied myself that the finanaal ststemenls of the charity are not required lo b& audited under Part le of the 2Q06 Act and are eligible for independent exarninatlDn, I report in respect of my èxamination of the charity's financial statements carTiecS out under section 145 of the Charities Act 2011 (the 2011 Act) In carrying out rny examination I have followed all the applicable Directions given by the Charity Commission under sectron 14515llbl ol the 2011 Act. Independent examlnèrfs statement I have completed my examination. I confirm that no mattels have come to my attention in connection with the examinatlon giving me cause to believe that in any material respect.. accounting records were not kept in respect of the charity a5 required by section 386 of the 2006 Act., or thè financial stslement5 do not accord with those records,. or the financial slalements itho 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 considwed as part of an independent examination", or the financial statements have not been prepared in accordance with the methods and prinuples of the Statement of RecotHrnended Practice for accounting and reporting by charities applicable lo charities preparing their accounts In accordan¢e wlh the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. I have no concerns and have come across no other matters in connection wth the examination lo which attention should be drawn in this report In_()rderffiable a proper understanding ol the financial statements lo be reached_ Robert Anderson FCA Azels Audit Servi$ 3Mc Middlemarch Business Park Siskin Drive Coventry CV3 4FJ Dated .Zl..-/i.-?Ir. .
MERCURIAL ARTS LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE PERIOD ENDED 31 JANUARY2024 Unrestricted Restricted funds funds 2024 2024 Total Unrestrlcted Restricted funds funds 2023 2023 Total 2024 2023 Notes Income from.. Donations and legacies 75,913 75,913 6,880 6.680 Ex ndi Charitable activities 3,533 3.533 34.732 34,732 Net incominglloutgoingl resources before transfers 72,380 72.380 128.0521 128.0521 Gross transfers befvveen funds 3,960 13,gSO) 6.483 16.4831 Net incownellexponditurol for thè Pèriodl Net movement in funds 3,960 68.420 72,380 6.483 134,5351 128,0521 Fund balances at 1 August 2023 18,6961 7.084 {1,6121 115.1791 41,619 26,440 Fund balances at 31 January 2024 14,7361 75,504 70,768 18,6961 7,084 11,6121 The slalemenl ol financial activiti8s includes all gains and losses recognised in the Period. All income and expenditure derive from continuing aclivilies. The statement of financial aclivtties also complies with the requirements for an income and expenditure account under the Companie5Acl 2006.
MERCURIALARTS LIMITED BALANCE SHEET ASAT31 JANUARY2024 2024 2023 Notes Current assÈt$ Debtors Cash at bank and in hand 75.913 8,927 9.259 84,840 9,259 Creditors.. amounts falling due within one year 114,0721 110,8711 Net current assetsllli8bililiesl 70,768 11,6121 Incomg funds Restricted funds Unrestricted funds 10 75.504 14,7361 7.084 18,6961 7Q,768 11,6121 The company is entitled to the exemption from the audit requiremènt ¢ontsined in section 477 of the Companies Act 2006, for the period ended 31 January 2024. The directors acknowledge their respon3ibililies for complying with the requirements ol the Companies Act 2006 with respect lo accounting records and the prèpaolion of financial slatemenls. The members have not required the company lo obtain an audit of ils finanaal Slalemenls for the period in question in accordance with sectv)n 476. These financial slalemenls havè prepared in accordance with the provisions applicable tD companies subject to the small cornpanies regime. The financi slalements wère approved by the Trustees on .?1/1/ N Dodzo Trustee Company registralion number 6635326
MERCURIAL ARTS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 JANUARY 2024 Accounting policios Charity Ènformation Mercurial Arts Limited is a private company limited by guarantee incorporated in England and Wales. The registere(5 office is Studio 11 a Canal Warehouse, Leicester Row, Coventry. CV1 4LH. United Kingdom. 1.1 Rèporting pèriod The accounting period has been shortened to 31 January 2024 from 31 July 2024 in order to better synchronise the accounting period with the charity's proje¢l delivery and reporting timelines. Accordingly the comparative amounts presented in the financial slalements are not entirely comparable. 1.2 AGeounting convéntion The financial statements have been prepared in accordantÈ with thè charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities." Statement of Recommended PracliGe applicable to charities preparing their aGGounls In a¢cordancè with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191. The charity is a Public Benefit Enlily as defined by FRS 102. The charity has taken advantage ol the provisions in the SORP for charities applying FRS 102 Update BLJlletin 1 not to pr8pare a Statement ol Cash Flows. The financial slalemenls are prepared ill sterling. which is the functional currency of the charity. Monetary amounts in these financial slalements are rounded to the nèarèst £. The financial statements have been prepared under the historical ¢osl convention. The principal accounting policies adopted are sel out below. 1.3 Golng concern At the time of approving the financial statements. the trustees have a reasonable expectation that the charlty has adequate resource5 to wnlinue in operational existence lor the foreseeable future. Thus the Iruslee5 continue lo adopt the going concern basis of accounting in preparing the financial slalements. 1.4 Charitable funds Unrestricted funds are available for use al the discretion of the Iruslees in furtherance of their charitable objectives. Reslricled funds are Subje lo specific conditions by donors as to how they may be used. The purposes and uses of the re51ricled funds sre sel out in the noles to the financial statem&nls. Endowment funds are subject to specific conditions by donors that the Capital must be maintained by the charity. 1.5 Income Income is recognised when the charily is legally enlilled lo it after any performanGe Gondilions havè been met, the amounts can be measured reliably, and il is probable that income will be rèceived. Cash donations are recognised on receipl. Other donations ale recogni5ed once the Gharity has been notified of Ihe donation, unless performance conditions require deferral of the amount. InGome tax recoverable in relation to donations received under Gift Aid or dèèds of covenant is recognised at the lime of the donation. Legacies are rècognised c>n receipt Dr otherwise il the charity has been notified of an irnpending distribution, the amount is known, and receipt is expected. 11 the amount Is not known, the legacy is treated as a contingent asset.
MERCURIAL ARTS LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE PERIOD ENDED 31 JANUARY 2024 Accounting pollcles Icontinuedl Lega¢ie5 are recognised on receipt or otherwise if the charity has been notified of an impending dislribulion. the amount is known, and receipt is expeGted. If the amount is not known, the legacy is treated as a contingent asset. 1.6 Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, il is probable that a Iranslei ol economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accoLJnted for on an accruals basis and has been classified under heacsings that agggate all cost related lo the category. Where costs cannot be directly attributed lo particular heading5 they have been allocated lo activities on a bas18 COnSlStent with the use of resources. 1.7 Tangible fixed assets Tangible fixed assets are initially me8sured at cost and subsequently measured at eost or valuation, nel of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less th&r resal values over their seful lives on the followin9 bas88' Plant and machinery Fixtures, fittings & equipment 20°A on cost 330/0 on cost The gain or loss arising on the disposal of an asset is determined as the difference beeen the sale proceeds and the carrying value of the asset. and is recognised in the statement of financial activities 1.8 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposrts held al call with banks, other short-term liquid investments with original maluiities ol three month5 or less, and bank overdrafts Bank overdrafts are shown within borrowings in CLJrrent liabilities. 1.9 Financial instruments The charity has elected lo apply the provisions of Section 11 'Basi¢ Finanaal Instruments. and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of Its financial inslrumenl5. Financial instruments are recognised in the charity's balance sheet when thè charity becomes party lo the contractual provisions of the inslrumenl. Financial asset5 and liabilities are offset. with the nel amounts presented in the financial slalements. when there is a legally enforceable right to SEt Dff the recognised amoLJnts and there Is an inteniion to settle on a nel basis or to realise the asset and settle the liability simultaneously. Baslc flnancial assets Basic financial assets, which include debtors an(J cash and bank balances, are Initially measured at transaction price including Iransa¢tion Costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction. where the Iran5aclion is measured at the present value of the future receipts discounted al a market rate of interest. Financial assets classified a5 receivable within one year are not arnortised.
MERCURIALARTS LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 JANUARY2024 Accounting policies (Continued) Basic financial liabilities Basic financial liabilities. including creditors and bank loans are initially recognised at transaction price unless the arrangemenl constilules a financing transaction, where the dèbt Instrument Is measured al the present valLJe of the future payments discounted at a market rate of interest. Financial liabilities dassified as payable within one year are not amortised. Debt instruments are subsequently carned al amortised ¢osl, using the effective interest rale method. Trade Creditors are obligations lo pay for goods or services that have been acquired in the ordinary ¢ourse of operations from Suppliers. Amounts payable are classified as current liabililies if payment is due within one year or less. If not. they are presented a5 non-currenl liabilities. Trade creditors are recogn15ed initially al transaction price and subsequently measured at amortised cost u&ng the effective int8rest m8thod. Derecognitlon of financial liabilities Financial liabilities are derecD9nised when the ch8rty's ¢onlra¢lual obligations expire or are discharged or cancelled. Donatlons and legacles Restrlctèd funds Restricted funds 2024 2023 Grants ie¢eivable Donated goods and services 75.913 1,500 5.180 Grants receivable for core actlvltles Arts CouncAI 75.913 1,500 75.913 1,500 Donated goods and services Donated goods and services represents the costs of rehearsal space hire.
MERCURIAL ARTS LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 JANUARY2024 Charitable actlvitie5 2024 2023 Consultancy and project management Artists and performance costs Sundries 12,240 1fj,198 1,663 1,400 854 2,254 30.101 Share of support costs (see note 41 Share of govemance costs (see note 4} 331 948 3,045 1.586 3,533 34,732 Support costs Support Governance costs costs 2024 Support Governance costs costs 2023 Rent Insurance 2,247 798 2,247 798 331 331 Legal and professional Accountancy Clerical assistance 80 840 28 80 840 28 1,44C) 146 1,440 14e 331 948 1,279 3,045 1,586 4,631 Analysed between Charitable aclivslies 331 1.279 3,045 1.586 4,631 Governance costs includes payments lo the accounlanls £1.4QO 12023- £2,100) for the independent examination. Truste89 None of the Iruslees lor any persons connected with them) received any remuneration or benefits from the charity during the Period. Employees The average monthly number of employees during the Period was. 2024 Number 2023 Numbèr Total
MERCURIAL ARTS LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 JANUARY2024 Employees Icontinuedl There were no employees whose annual remuneration was more than £60,000. Taxation The charity is exempl from lax on income and gains falling within Section 505 of the Taxes Act 1988 or section 252 01 the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. Debtor5 2024 2023 Amounts falling due within one year- Trade debtors 75,913 CreditoTr- amounts falllng duè within one year 2024 2023 Trade creditors Other creditors Aecruals and deferred income 2,592 9.200 2,280 2,592 6,839 1,440 14,072 10,871
CO U) )0 co c w c o c o
MERCURIAL ARTS LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 JANUARY2024 11 Analysis of net assets bÈtsveen funds Unrestrlcted Restricted 2024 2024 Total Unrestricted Restrl¢ted 2024 2023 2023 Total 2023 Fund balances al 31 January 2024 are represented by". Current assetsllliabilitiesl 18.6961 79.464 70,768 110,4961 8,884 11,6121 18,6961 79,484 70,768 110,4961 8,884 11.6121 12 Relatèd party transactions Transactions with related partles During the penod the charity entered into the following transactions with related parties.. During the year the charity paid fees ol £012023 - £17,3661 to Mercuri81 Dance Limited, a company Df which O Scott is a direcior and shareholder. Al the balance sheet dale £2,592 12023 - £2.5921 was owed In trade debts to Mercurial Dance Limited Al the balance sheet dale a loan balance of £9,200 12023 £6,839) was owed to Mercurial Dance Limited. This will not be demanded for repayment until the charty has sufficienls funds lo ensure all other liabilities are settled. 13