Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C Registered number: 08117915 Charity number: 1149979 THE AUDIENCE AGENCY (A Company Limited by Guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) CONTENTS Page Reference and Administrative Details of the Charity. its Trustees and Advisers Trustees. Report Independent Auditor's Report on the Financial Statements 9-12 Consolidated Statement of Financial Activities 13 Consolidated Balance Sheet 14 Charity Balance Sheet 15 Consolidated Statement of Cash Flows 16 Notes to the Financial Statements 17-40
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 MARCH 2024 Trustees A Adewunmi O Brook (appointed 1 June 2023) L Crompton-Reid {resigned 31 March 2024) C Lawrence (resigned 15 May 2024) M Locke, Chair to 03 October 2024 Dr C Michaels {resigned 15 May 2024) S Parker, Vice Chair (resigned 1 April 2024) R Paterson, Acting Chair from 04 October 2024 A Singh (resigned 9 June 2023) E Casali (appointed 16 May 2024) B Keen (appointed 15 May 2024) K Parry (appointed 15 May 2024) Company registered number 08117915 Charity registered number 1149979 Registered office The Whitehouse Wilderspool Business Park Greenalls Avenue Stockton Heath Warrington WA4 6HL Independent auditor Cooper Parry Group Limited Statutory Auditor Cubo Birmingham Office 401 Two Chamberlain Square Birmingham B3 3AX Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Solicitors Primas Law The Whitehouse Wilderspool Business Park Greenalls Avenue Stockton Heath WA46HL Page 1
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 30 MARCH 2024 The Trustees are pleased to present their annual directors. report togelher with the consolidated financial statements of the charity and its subsidiary for the year ended 31 March 2024. These are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The financial statements comply wth the Charities Act 2011, Companies Act 2006, the Memorandum, and Articles of Association and Accounting and Reporting by Charities.. Statement of Recommended Practi applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS102 effective 1 January 2019). Mission, Purpose & Public Benefit The Audience Agency is an independent research and development organisation, committed to a world where everyone enjoys equal access to a rich cultural and creative life, and with a purpose to enable a thriving. people- centred cultural sector. We provide research, ServIS and insight which help our network of clients and stakeholders adapt for and with their communities. Our team is a collective of committed specialists with backgrounds in the cultural and creative sectors, research andlor data Scien who share a passion for arts and culture and its power to transform society. Our approach is insight-led and people-centred. This approach underpins a five-pillar programme of services: Audience Development and Participation, Creative Places, Digital Transformation, and Evaluation and Impact, Creative Economy supported by a suite of popular. reliable data-tools and our action learning programmes. TAA works across the UK and intemationally, with an extensive range of cultural and creative organisations, academic partners. local authorities. funding bodies and policy-makers. Values People-cenlred.. We champion a people-centred approach as researchers, advisers and employers. We listen to, and act on, the views of stakeholders, are respectful of differences, and embrace a diversity of voices. Connected: We are committed to sharing knowledge and using our unique position to bring people together to forge new conversations and collaborations. We thrive being at the intersection of relationships, both across the sector and between organisations. Trustworthy: We are transparent, rigorous, act with confidentiality. and are committed to quality in everything we do. We strive to build trust in all our stakeholder relationships. Beneficiaries of our service Our work directly supports cultural organisations. agencies and practitioners to engage more effectively with the general public, particularfy to reach new or less*ngaged groups. We also support community organisations with cultural strategy and work with local. national and intemational policymakers to improve the conditions for engagement. We provided a resour or service to over 1.200 cultural organisations in the period. We remain committed to being accessible to the widest variety of arts and cultural organisations and have developed our business model to enable us to provide to all a regular feed of current audience trends and information. We also use funds to subsidise affordable services to smaller charities and those with limited resources, while still making an impact on the largest cultural institutions in England with the biggest audience reach. We work with theatres. concert halls. arts ntres, perfomiing arts companies. galleries, orchestras, outdoor festivals and site-specific producers, participatory arts, museums, heritage organisations and local authorities. We continue to develop our work to support those at the forefront of the stand against inequality, those Page 2
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 30 MARCH 2024 promoting diversity and grassroots community initiatives. Our Activities & Impacts In 2023124 The Audience Agency generated its income from three main sources: Public (grant) funding. Funding from two main SoUrS (Creative Scotland and Arts Council Wales) plus some transition funding from Arts Council England enabled TAA to continue to develop Audience Answers, a national audience data and development plaffom, which collects and shares audience data from over 700 cultural organisations. and to provide a wrap-around customer service. It also enabled us to provide free vital. reliable intelligence (dats sets and insights from them) to help organisations with their re-opening plans and helping them make confident decisions in what remained uncertain times. This source of income made up about 27 % of the total Group income. Bespoke consultancy and research services. Our nationwide team of specialists developed and delivered a range of user-centred, research-infomied projects for and in conjunction with cultural sector organisations. This source of income made up about 48 % of the total Group income. Sales of a range of data products and tools, including population profiles, bespoke surveys, Audience Spectrum (TAA'S segmentation tool) mapping and profiling and touring reports. This source of income made up about 10 % of the total income. In addition, through the wholly owned subsidiary, The Audience Agency Services, we delivered innovative research and development work internationally, in Berlin and Sweden, using our Audience Finder platform. This income generated 80/0 of the total income. A merger with Culture 24 during the year also generated income of 7Q/o of the total income. We enable organisations to engage larger and more diverse audiences and to improve their impact and resilience. The ultimate objective to widen public access and increase the nation's participation in the arts and other cultural activities. Our activities help organisations and policyTnakers tackle a wide variety of barriers to the arts and culture - such as the lack of relevance, affordability, user-v01 and other factors linked to social inequality. We also support organisations to develop their engagement skills and capacity to connect more effectively - including digital leadership. data informed decision-making. the latest consumer research, a range of action research projects, often promoting an audience- or participant-centred design approach. Achievements and Perfomiance At the start of 23124, The Audien Agency adopted a revised business plan as a result of the disinvestment from Arts Council England. The three strategic options being considered were: To actively pursue external private investment andlor further international sales to continue to develop the Audience Finder Platform for both the UK and the intemational market. To adapt the free Audience Finder service into a new paid for (commercial) service, with an enhanced Page 3
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 30 MARCH 2024 range of tools and ServIS to support the sector. To reduce in size and scope and move to a consultancy and research organisation only. The Board had agreed that 2023124 would be a transition year for The Audience Agency (TAA), with the aim that by the end of the year, the organisation would have a clear strategy for the future. with an appropriate business model and organisational structure to support that. Therefore the first quarter of the year enabled TAA to embark on a "Strategic Enquirf to allow for the exploration of new avenues and opportunities. We wanted to understand where our assets could bring most benefit to our beneficiaries, which gaps they need to fill. and how they should be configured to do so. Our aim was to look to prioritise activities where we could have an exponential effect as well as extend our advocacy role through participation in policy work. During the first half of the year, we recognised that we were not going to be successful in attracting the necessary level of investment to pursue the development of Audience Finder for the international market at this stage. We therefore reduced the scale and scope of product development to enable us to focus the TAA resources on completion of the UK paid-for product. We were able to launch a comprehensive, completely redesigned "Audience Answers" a subscription-based offer (with some free services) to replace Audience Finder. The bespoke consultancy and research offer adapted to changes in positioning and pipeline. By the end of 23124, we had developed more differentiated offers for the UK market, built around five 'pillars': Audience Development and Participation Evaluation and Impact Creative Economy Creative Places Digital Transformation Some Highlights of the year are: We delivered 36 free events (webinars and training sessions. and TEA Break (Thinking Evidence and Audience events). attracting almost 2,000 attendees. Our Summer 2023 wave of the 'Cultural Participation Monitorf provided the sector with new. original knowledge on range of factors affecting if and how aUdIenS interact with live cultural event venues. including their social and environmental values. behavioural expectations. cost of living concerns, and comfort with online screening options. We were commissioned to deliver 196 research and consultsncy projects in 2023124. These included numerous project commissions for National Lottery Heritage Fund Development Framework for evaluation. Historic England commissioned two projects" Knowing the Sector and the Taxonomy of Cultural and Heritage Capital Services. For the British Library, we were commissioned to deliver evaluation for the exhibition Fantasy and Black British Music, and for UNESCO we secured Local to Global an audien development and stakeholder mapping programme. In addition we continued our work with Brilish Council across four projects, evaluation of their Creative Commissions programme and the Spotlight on Culture UKIFrance 2024; began work on supporting the arts learning programme for a festival of learning and continues our work on inclusive growth through a services of essays. The Audience Agency is collaborating with The University of Leicester on an Artificial Intelligen project funded through Innovate UK'S Knowledge Transfer Partnership P) scheme. This partnership involves the Institute for Digital Culture and the University of Leicester School of Business. Page 4
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 30 MARCH 2024 We also continued Ihe foundation partner of the Centre for Cuttural Value at University of Leeds (a project funded by AHRC, Arts Council England and Paul Hamlyn Foundation. There were also a number of changes in year to the structure and shape of TAA. This model was strengthened through a merger in year with Culture 24. Like TAA, they were an independent charity and a Sector Support Organisation until April 2023 and lost their Arts Council England funding at the same time as TAA. This merger supported the strategy by helping develop a more distinctive °digital offerf. our training capacity, and general credibility. TAA also acquired assets both tangible (products and reserves) and intangible (replicable methods of delivery, partnerships). As a result of the merger. 3 members of staff were transferred into TAA under TUPE regulations. This transition to a new Business Model unsurprisingly had an impact on our financial performance. Reduced income expectations required TAA to make in-year savings, largely in staff. Altogether 16 posts were taken out of the structure, through a mixture of redundancy and natural turnover. In addition, we became an entirely remote organisation during the year, moving out of both our London and Manchester offiS. Plans for the future During the first quarter of 24125. a new tK)tential model is emerging, a "virtuous circle" in which TAA delivers mission-critical independent research which is augmented and amplified through networks, partnerships, "in- field" application through projects and servIs. and TAA'S data tools. We are working towards seeking fonnal IRO (Independent Research Organisation) status. which will allow us to apply independently for academic funding (eg UKRI, Horizon Europe). This, alongside the sale of client research and strengthened data tools will enhan that model. *pOiEd rth (reIty 24125 is the first year where TAA'S business model with less than 10% regular funding. The organisation has to balance the need for caution in the short term with making strategic decisions which move TAA towards its longer-term goal. Financial review For the financial period 2023124. the total group income was £2.65m, an approximale 22 /0 decrease over the previous financial year. This reduction in income was matched by a reduction in expenditure to £3.12m. This was a 18 % reduction over the previous year. The deficit in year was therefore £474k. Page 5
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 30 MARCH 2024 Some of the deficit was due to the reduction of Arts Council Funding but eamed income for both consultancy and sales of products was also reduced. We also restructured during the year. Product development activity and some associated staff were moved from the subsidiary (TAAS) into the charity (TAA) with effect from 1 April 2023. The AFG asset was bought by TAA from TAAS on 31 August 2023 at a value of £138k. The Group reserves at the end of March 2024 were £466k. Reserves policy The Board's policy on reserves is to target a reserve level which is equal to three to six months, projected fixed costs (fixed costs being rent, rates and other running, but not activity costs). This target level of reserves should be free reserves, or money readily realisable, and therefore should not include fixed assets. Where the target level of reserves has been reached. the Board would seek to reinvest those surplus funds in the following financial year. to support the development of our Servi to the sector. At the period end, total unrestricted reserves were £466k which included £209k of fixed assets. Free reserves were therefore £257k. Our most recent calculation is that three months, running costs is approximately £600k. The aim is to build these reserves back up to previous levels. Risk Management The Board regularly reviews and assesses the risks to which TAA may be exposed. A risk register identifies those risks and actions agreed to mitigate them. Each Board meeting highlights the key issues and risks facing each of the Business Units and for TAA as a whole. The current identified high-level risks.. RISK Weak Cash flow Data products and tools doesny generate (sufficient) income to support continued develo ment Uncertain environment Insufficient capacity or capabilitylloss of skills MITIGATION Weekl cash review Sales capacity increased with a clear sales strategy and priorities. cultural and creative sector Close monitoring marketing strategyl focused business develo ment Continuous review of priorities Flexible resourcing options Focus on wellbein and flexible workin ractices Structure, Governance and Management Governing Document The Audience Agency is a company limited by guarantee, established on 25 June 2012, and was registered as a charity on 29 November 2012. It is govemed by its Memorandum and Articles of Association. The companls object is the promotion of the arts for public benefit by the provision of advi, support and information. and the provision of support ServiS. The governing body is the Board whose members are non-executive and unpaid. They meet regularly and retain full and effective control over the Company and monitor the Executive team. The Board is involved in major strategic decisions and has ultimate responsibility for the conduct and financial stability of TAA. Page 6
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 30 MARCH 2024 Recruitment and Appointment of Trustees As set out in the Memorandum and Articles of Association. the Board shall consist of not less than three and not more than fifteen people. As of 31 March 2024, the Board comprised seven people. We are currently in the process of recruiting new Trustees and a new Chair. and have advertised the roles publicly. Induction and Training of Trustees Information packs are provided to all Trustees detailing our work and their roles. responsibilities and obligations as a Trustee and as a director. Each prospective new Trustee attends a Board meeting prior to appointment in order for them to understand how TAA is managed and govemed. Other documents provided to new Trustees include previous accounts, the Business Plan and Charity Commission guidance. New Truslees are also partnered with one of the Executive team so that they can get a rn0 detailed understanding of the organisation and its activities. On an ongoing basis, Trustees are encouraged to attend appropriate extemal training courses and events. The annual Board away day provides an opportunity for development and throughout the year mini-Board workshops are run on issues of strategic importance. Organisational Structure The organisational structure is reviewed regularly. The Board delegates full control to the Chief Executive Officer and the Executive Team for the delivery of the agreed plans. The Board monitors and reviews the quality. timeliness and relevance of the information provided to the Board meetings by members of the Executive Team. The Board has estsblished a Finance Sub-committee, which meets Iwo weeks before each Board meeting, to review the financial position and provide advi and support to the Executive Team. Related Parties The organisation maintains a register of interests for Board members and members of the Senior Management Team. Board members are required to declare any conflicts of interest before each Board meeting. The Audience Agency servIs is a wholly owned subsidiary of the company and was established originally to manage a print distribution service in the North West of England. Remuneration Policy for Key Personnel The Board sets the remuneration for the Chief Executive and other key personnel. Pay rates are determined by reference to an internal evaluation scheme and external market review. Statement of Trustees. Responsibilities The trustees (who are also directors of The Audien Agency for the purposes of company law) are responsible for preparing the trustees, annual report and the financial statements in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these Page 7
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 30 MARCH 2024 financial statements. the trustees are required to- Select suitable accounting policies and then apply them consistently Observe the methods and principles in the Charities SORP Make judgements and estimates that are reasonable and prudent State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements Prepare the financial statements on the going conrn basis unless it is inappropriate to presume that the charity will continue in operation The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitsble group 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. As far as the trustees are aware there is no relevant audit infomiation of which the charitable company's auditors are unaware. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable companrfs website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in otherjurisdictions. Auditors Cooper Parry Group Limited continued as the charitable companls auditors in 2023124. This report has been prepared in accordance with the provisions applicable to companies subject to the small companies, regime of the Companies Act 2006. The trustees, annual report has been approved by the trustees and signed on their behalf by: Siyned by.. 52B5E5A636FD49D.. R Paterson Chair of Trustees Date:20 December 2024 Page 8
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY Opinion We have audited the financial statements of The Audience Agency (the 'parent charitable company'l and its subsidiary {the 'group') for the year ended 30 March 2024 which comprise the Consolidated Statemenl of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheel, the Consolidated Statemenl of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounling Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (Uniled Kingdom Generally ACpted Accounting Practice). In our opinion the financial statements- give a true and fair view of the state of the Group's and of the parent charitable companys affairs as at 30 March 2024 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act2011. Basis for opinion We conducted our audit in accordance with Intemational Stsndards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial ststements, we have concluded that the Trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions thal. individually or collectively. may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Page 9
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY (CONTINUED) Other information The other information comprises the information included in the Annual Report other than the financial statements and our Auditorfs Report thereon. The Trustees are responsible for the other information conlained within the Annual Report. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiation and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we idenlify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have perfomied. we conclude thal there is a material misstatement of this other infomation, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the infomation given in the Trustees. Report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustees, Report has been prepared in accordan with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: the parent charitable company has not kept adequate and sufficient accounting records, or retums adequate for our audit have not been reiVed from branches not visited by us,. or the parent charitable company financial statements are not in agreement with the accounting records and returns- or certain disclosures of Trustees, remuneration specified by law are not made; or we have not received all the infomiation and explanations we require for our audit- or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies. exemptions in preparing the Trustees, Report and from the requirement to prepare a Strategic Report. Page 10
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY (CONTINUED) Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Slaternent, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or emr. In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable companWs abilily lo continue as a going concern, disclosing, as applicable, matlers related to going concem and using the going concem basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to ase operations. or have no realistic altemative but to do so. Auditorfs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Audito¢s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below- Our assessment focussed on key laws and regulations the Group and parent charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included bul were not limited to compliance with the Companies Act 2006, Charities Act 2011, taxation legislation, data protection, anti-bribery and employment legislation. We are not responsible for preventing irregularities, including fraud. Our approach to detecting irregularities. including fraud. included, but was not limited to. the following- obtaining an understanding of the legal and regulatory framework applicable to the Group and parent charitable company and how the Group and parent charitable company are complying with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence,. obtaining an understanding of the Group and parent charitable companls control environment and how the Group and parent charitable company have applied relevant control procedures, through discussions with management and by perfomiing walkthrough testing over key areas., obtaining an understanding of the Group and parent charitable companls risk assessment process, including the risk of fraud. reviewing meeting minutes of those charged with g0Veman throughout the year., and performing audit testing to address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection of fraud based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error. Page11
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE AUDIENCE AGENCY (CONTINUED) Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that Complian with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-cotnpliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment, forgery. collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.o .ukJauditorsres onsibililies. This description forms part of our Auditor's Report. Use of our report This report is made solely to the charitable companws members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable companls trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable companys members those matters we are required to state to them in an Auditor's Reporl and for no other purpose. To the fullest extent pemitted by law. we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. Glen Bott FCA (Senior Statutory Auditor) for and on behalf of Cooper Parry Group Limited Statutory Auditor Cubo Birmingham Office 401 Two Chamberlain Square Binningham B3 3AX Date:20 December 2024 Page 12
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 MARCH 2024 Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Total fvnds 2023 Note Income from: Donations and legacies Charitable activities Other trading activities Investments 178.378 1,830,700 209.878 824 178,378 2,261,970 209,878 824 431,270 3,000,693 280,627 1,091 118,988 other income 22 22 Total income 2.219.802 431.270 2.651,072 3,401,399 Expenditure on: Raising funds Charitable activities 208.472 2,349,511 208,472 2,917,227 1,085,393 2,738, 157 567,716 Total expenditure 2,557,983 567,716 3,125,699 3,823,550 Net expenditure Transfers between funds {338,181) {136.446) {136,446) 136,446 (474,627) (422, 151) 21 Net movement in funds {474.627) (474,627) (422, 151) Reconciliation of funds: Total funds brought fOard Net movement in funds 940.800 {474.627) 940,800 (474,627) 1,362,951 (422, 151) Total funds carried forward 466.173 466,173 940, 800 The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 17 to 40 fonm part of these financial statements. Page13
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) REGISTERED NUMBER: 08117915 CONSOLIDATED BALANCE SHEET AS AT 30 MARCH 2024 2024 2023 Note Fixed assets Intangible assets Tangible assets 14 197,223 11,686 250,000 18,426 15 208,909 268,426 Current assets Debtors 17 457.960 350.371 733, 801 675,393 Cash at bank and in hand 808.331 1,409, 194 Creditors.. amounts due within one year 18 (551,067) (731, 595) Net current assets 257,264 677,599 Total assets less current liabilities 466,173 946,025 Creditors: amounts due after one year 19 (5,225) Total net assets 466,173 940,800 Charity funds Unrestricted funds 21 466.173 940,800 Total funds 466,173 940,800 The Trustees acknowledge their responsibilities for complwng with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordan with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by- R Paterson Chair of Trustees Date: 52B5E£A636FD¢SD 20 December 2024 The notes on pages 17 to 40 fonm part of these financial statements. Page 14
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) REGISTERED NUMBER: 08117915 CHARITY BALANCE SHEET AS AT 30 MARCH 2024 2024 2023 Note Fixed assets Intangible assets Tangible assets Investments 14 197,223 9,812 15 14,458 250,001 16 207,036 264,459 Current assets Debtors 17 448.706 235,408 657,971 597, 762 Cash at bank and in hand 684.114 1,255, 733 Creditors.. amounts due within one year 18 (470,879) (519, 686) Net current assets 213,235 736,047 Total assets less current liabilities 420,271 1,000,506 Creditors" amounts due after one year 19 (5,225) Total net assets 420,271 995,281 Charity funds Unrestricted funds 21 420,271 995,281 Total funds 420.271 995,281 The Charity's net movement in funds for the year was (£575.010) (2023- (£143,967)). The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordan with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: SvJTrEdtrf. R Paterson Chair of Trustees Date: 5285E5A636FD490 20 December 2024 The notes on pages 17 to 40 form part of these financial slatements. Page15
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 MARCH 2024 2024 2023 Nole Cash flows from operating activities Net cash provided by operating activities 23 (68,890) 235, 769 Cash flows from investing activities Net purchaselsales of intangible assets Purchase of tangible fixed assets 14 (187,860) (4,088) (359, 161) (9,819) 15 Net cash used in investing activities (191,948) {368,980) Cash flows from financing activities Repayments of borrowing (64,184) (55,591) Net cash used in financing activities (64,184) (55,591) Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year (325,022) {188,802) 675,393 864, 195 Cash and cash equivalents at the end of the year 24 350,371 675,393 The notes on pages 17 to 40 fonm part of these financial statements Page 16
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 General information The Audience Agency is a private company, limited by guarantee, incorporated in England and Wales (08117915). The principal address of the group is The Whitehouse, Wilderspool Business Park. Greenalls Avenue, Stockton Heath, Warrington. W A4 6HL. Accounting policies 2.1 Basis of preparation of financial statements The financial statements are prepared in Sterling (£) which is the functional currency of the Charity. The financial statments are for the year ended 30 March 2024 (2023: year ended 30 March 2023). The financial statements have been prepared in accordance with the Charities SORP (FRS 102) 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Audience Agency meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise slated in the relevant accounting policy. The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements. The parent charity made a deficit of £575.010. 2.2 Going concem At the time of approving these accounts. the Board have considered revised financial forecasts for the current and proceeding financial year. They have considered the risks and opportunities for the Group's trading. They recognise there are current funding shortfalls but consider that the action being taken by The Audience Agency will be sufficient to continue trading for at least twelve months. On that basis. the trustees have prepared these financial statements on a going concern basis. Page 17
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 Accounting policies (continued) 2.3 Income All income is recognised once Ihe Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Consolidated Statement of Financial Activities on a re1vable basis. The balance of income reiVed for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is ceived in advance of entitlement of receipt. its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in setllement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs. including support costs involved in undertaking each activity. Direct costs atlributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of reSoUrs. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the assel's use. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 Donated services and facilities Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipl of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised. refer to the trustees, annual report for more information about their contribution. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services and facilities of equivalent economic benefit on the open market- a corresponding amount is then recognised in expenditure in the period of receipt. 2.6 Government grants Government grants relating to langible fixed assets are credited to the Consolidated Slatement of Financial Activities and held in reserves, depreciation is charged over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated Stalemenl of Financial Activities as the related expenditure is incurred. Page 18
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 Accounting policies (continued) 2.7 Intangible assets and amortisation Intangible assets are capitalised and recognised when future economic benefits are probable and the asset can be measured reliably. Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for wriling off goodwill is three years. Provision is made for any impaimient. Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life. Amortisation is provided on the following bases- Data assets Computer software 33° 33° 2.8 Tangible fixed assets and depreciation Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model. tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. using the straight-line method. Depreciation is provided on the following basis- Office equipment Computer equipment 20°/0 33°/0 2.9 Investments Programme related investment is an amount equal to the capital contribution provided to the trading subsidiary to develop an intangible asset to further the charitable purposes of the charity. The Investment is written down in line with the value of the asset in the trading subsidiary. At the year end this asset has been transferred to the charity. Investments in subsidiaries are valued at cost less provision for impairment. Page19
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 Accounting policies (continued) 2.10 Debtors Trade and other debtors are recognised at the settlernent amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.11 Cash at bank and in hand Cash at bank and in hand includes cash and short-temi highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.12 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost. 2.13 Financial instruments The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 2.14 Operating leases Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight line basis over the lease temi. 2.15 Pensions The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year. Page 20
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 Accounting policies (continued) 2.16 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtheran of the general objectives of the Group and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 2.17 Redundancy I temination payments All redundancy and termination payments are recognised within the year. Critical accounting estimates and areas of judgment The Trustees make estimates and assumptions conceming the future. They are also required to exercise judgement in the process of applyng the Group's accounting policies. Estimates and judgements are continually evalualed and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. 3.1 Impairment of fixed assets The Group assesses the impairment of tangible fixed assets and intangible assets subject lo amortisation or depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important that could trigger an impaimient review include the following- Significant Underperforman relative to historical or projected future operating results- Significant changes in the manner of the use of the acquired assets or the strategy for the overall business., and Significant negative industry or economic trends. 3.2 Depreciation, amortisalion and residual values The Trustees have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded Ihat asset lives and residual values are appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Page 21
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 Income from donations and legacies Unrestricted funds 2024 Total funds 2024 Total funds 2023 Donations 178,378 178,378 Income from charitable activities Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Major stakeholders and funders Arts Council England Arts Council Wales 431,270 431,270 79,608 200,075 763,800 79,608 249,968 79,608 200,075 Creative Scotland Subtotal for major stakeholders and funders Bespoke Services Consultancy and Research 279,683 431,270 710,953 1,093,376 1.277,243 1,277,243 1,541.443 Subtotsl for bespoke services Packagelprogramme income Audience spectrum licensing Enhanced dashboards 1.277,243 1,277,243 1,541.443 93,538 93,538 46,975 115,631 88,095 102,008 13,165 Package services other services - groups Showstats 135,033 38.668 6,535 135,033 38,668 6,535 Subtotal for packagelprogramme income 273,774 273,774 365,874 1.830,700 431,270 2,261,970 3,000, 693 Total 2023 2,236,893 763, 800 3,000, 693 There was an additional £136,466 received from Arts Council England which was recognised in The Audience Agency Services Limited (2023: £nil). Page 22
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 Income from other trading activities Income from non charitable trading activities Unrestricted funds 2024 Total funds 2024 Total funds 2023 Consultancy services Other income Arts Council England 71,494 1,938 136,446 71,494 1,938 136,446 264,381 16,246 209,878 209,878 280,627 All income from other trading activities in the prior year was unrestricted. Other incoming resources Unrestricted funds 2024 Total funds 2024 Total funds 2023 Research and development tax credit 22 22 118,988 All income from other incoming resources in the prior year was unrestricted. Page 23
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 Expenditure on raising funds Trading subsidiary expenses Unrestricted funds 2024 Total funds 2024 Total funds 2023 Cost of sales 6,005 62,625 139,842 6,005 62,625 139,842 144, 125 615,087 326,181 Administration expenses Staff costs 208,472 208,472 1,085,393 Analysis of expenditure by activities Activities undertaken directly 2024 Total funds 2024 Total funds 2023 Advice and assistan 2,917,227 2,917,227 2, 738, 157 Page 24
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 Analysis of expenditure by activities (continued) Analysis of direct costs Advice & assistance 2024 Total funds 2024 Total funds 2023 Staff costs 2,090,313 53,504 331,587 327,093 57,025 25,871 18,000 13,834 2.090,313 53,504 331,587 327,093 57,025 25,871 18,000 13,834 1, 797,343 7,940 280,318 397, 784 83,071 73,718 14,800 83,183 Depreciation and amortisation Programme cost Bespoke overheads Offi, travel and training costs Rent and rates Governance Website and IT 2,917,227 2,917,227 2, 738, 157 Total 2023 2,738, 757 2,738, 157 The above expenditure is split £567,716 {2023: £763.800) restricted expenditure and £2.349,511 (2023.. £1,974,357) unrestricted expenditure. G0Veman costs include audit remuneration of £18,000 (2023.. Governance costs include audit remuneration of £14.800. 10. Auditorfs remuneration 2024 2023 Fees payable to the Charitys auditor for the audit of the Charitys annual accounts 18,000 14,800 Page 25
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 11. Net income Net income is stated after charging: 2024 2023 Depreciation of tangible fixed assets Amortisation of intangible fixed assets Auditor's remuneration 10,828 101,533 18,000 139,104 9,837 314,392 14,800 259,451 14,077 Impairment of intangible assets Operating lease rentals Impairment loss is included within charitable activities. The impairment charge is due to the Soare being transferred between the entities or the value that the remaining contract was expected to generate. 12. Staff costs Group 2024 Group 2023 Charity 2024 Charity 2023 Wages and salaries Social security costs Pension cost 1,958,060 209.929 62.166 1,852, 106 214,837 56,581 1,845,251 189,689 55,373 1.566, 176 184,410 46,757 2,230.155 2, 123,524 2,090,313 1,797,343 During the year. 7 employees received statutory redundancy payments totalling £22.112 (2023: 1 employee received £1.235). The average number of persons employed by the Charity during the year was as follows: Group 2024 Group 2023 Administrative staff 56 60 Page 26
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 12. Staff costs (continued) The number of employees whose employee benefits (exciuding employer pension costs) exceeded £60,000 was: Group 2024 Group 2023 In the band £60,001- £70,000 In the band £70,001- £80,000 The total employee benefits of the key management personnel of the charity were £473,861 {7 people) (2023.. £508,249 (8 people)). Page 27
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 13. Trustees. remuneration and expenses During the year, no Trustees received any remuneration or other benefits (2023 - £NIL). During the year ended 30 March 2024. expenses totalling £nil were reimbursed or paid directly to no Trustees (2023 - £nil to no Trustees). 14. Intangible assets Group Computer software Data assets Total Cost At 31 March 2023 338.360 1,382,735 187,860 1,721,095 187,860 Additions At 30 March 2024 338.360 1,570,595 1,908,955 Amortisation At 31 March 2023 338,360 1,132,735 101,533 139,104 1,471.095 101,533 139.104 Charge for the year Impairment charge At 30 March 2024 338.360 1,373,372 1,711,732 Net book value At 30 March 2024 197,223 197,223 At 30 March 2023 250, 000 250,000 Page 28
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 14. Intangible assets {continued) Charity Computer software Data assets Total Cost At 31 March 2023 338,360 338,360 241,993 Additions 241,993 At 30 March 2024 338,360 241,993 580,353 Amortisation At 31 March 2023 338.360 338,360 44,770 Charge for the year 44,770 At 30 March 2024 338.360 44,770 383,130 Net book value At 30 March 2024 197,223 197,223 At 30 March 2023 Page 29
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 15. Tangible fixed assets Group Office equipment Computer equipment Total Cost or valuation At 31 March 2023 34.173 111,431 4,088 145,604 4,088 Additions At 30 March 2024 34.173 115,519 149,692 Depreciation At 31 March 2023 30.205 2.094 96,973 8,734 127,178 10,828 Charge for the year At 30 March 2024 32.299 105,707 138,006 Net book value At 30 March 2024 1.874 9,812 11,686 At 30 March 2023 3,968 14,458 18,426 Page 30
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 15. Tangible fixed assets (continued) Charity Office equipment Computer equipment Total Cost or valuation At 31 March 2023 27.888 111,431 4,088 139,319 4,088 Additions At 30 March 2024 27.888 115,519 143,407 Depreciation At 31 March 2023 27.888 96,973 8,734 124,861 8,734 Charge for the year At 30 March 2024 27.888 105,707 133,595 Net book value At 30 March 2024 9,812 9,812 At 30 March 2023 14,458 74,458 Page 31
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 16. Fixed asset investments Investments in subsidiary Programme companies investment Total Charity Cost or valuation At 31 March 2023 1,382,776 1,382,777 (1,382,776) (1,382,776) Disposals At 30 March 2024 At 31 March 2023 1,132,776 1,132,776 52,084 52,084 (1,184,860) (1,184,860) Charge for the year Impairment on disposals Net book value At 30 March 2024 At 30 March 2023 250, 000 250,001 Principal subsidiaries The following were subsidiary undertakings of the Charity: Names Company number Holding Included in consolidation The Audience Agency Services Limited 06994989 100°/o Yes The financial results of the subsidiaries for the year were- Names Income Expenditure Loss for the year The Audience Agency Services Limited 207,962 (357,579) (149,617) The Audience Agency Services Limited had net assets of £45.903 at 31 March 2024. Page 32
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 17. Debtors Group 2024 Group 2023 Charity 2024 Charity 2023 Due within one year Trade debtors 346.849 397,433 346,849 372,232 147,777 62,516 75,446 Amounts owed by group undertakings Other debtors Prepayments and accrued income 56.371 54.740 260,922 75,446 47,117 54,740 457.960 733,801 448,706 657,971 Page 33
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 18. Creditors: Amounts falling due within one year Group 2024 Group 2023 Charity 2024 Charity 2023 Unsecured bank loan Trade creditors 5.225 123.427 125,640 16.666 54,018 226.091 64,184 181,929 114,160 9, 629 52,032 309, 661 5,225 120,947 125,640 16,666 53,762 148,639 64,184 131,875 114,160 9,629 39, 124 160,714 Other taxation and social security Other creditors Accruals Deferred income 551.067 731,595 470,879 519,686 Group 2024 Group 2023 Charity 2024 Charity 2023 Deferred income at 31 March 2023 Resources defeed during the year Amounts released from previous periods 309,661 226.091 (309,661) 392,893 160,714 309, 661 148,639 (392,893) (160,714) 300,285 160,714 (300,285) 226.091 309, 661 148,639 160,714 Deferred income relates to income reiVed for projects not yet completed. 19. Creditors: Amounts falling due after more than one year Group 2024 Group 2023 Charity 2024 Charity 2023 Unsecured bank loan 5,225 5,225 Page 34
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 20. Financial instruments Group 2024 Group 2023 Charity 2024 Charity 2023 Financial assets Financial assets measured at fair value through income and expenditure 350.371 675,393 235,408 597, 762 Group 2024 Group 2023 Charity 2024 Charity 2023 Financial liabilities Financial liabilities measured at fair value through income and expenditure 5,225 69,409 5,225 69,409 Financial assets measured at fair value through income and expenditure comprise cash at bank and in hand. Other financial liabilities measured at fair value through income and expenditure comprise unsecured bank loan. Page 35
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 21. Statement of funds Statement of funds - current year Balance at 31 March 2023 Balance at 30 March 2024 Transfers inlout Income Expenditure Unrestricted funds Charity funds Subsidiary reserves 995.281 (54.481) 2.011,840 207.962 (2,450,404) (107,579) (136,446) 420,271 45,902 940.800 2.219.802 (2,557,983) (136.446) 466,173 Restricted funds Arts Council England 431,270 (567,716) 136,446 Total of funds 940.800 2.651,072 (3,125,699) 466,173 Arts Council England this is money received from Arts Council England to deliver the Transition Fund activity- Page 36
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 21. Statement of funds {continued) Statement of funds - prior year Balance at 30 March 2022 Balance at 30 March 2023 Income Expenditure Unrestricted funds Charity funds Subsidiary reserves 1. 139,309 223, 642 2, 254,230 383,369 (2,398,258) (661,492) 995, 281 (54,481) 1,362,951 2, 637,599 (3,059, 750) 940, 800 Restricted funds Arts Council England 763,800 (763,800) Total of funds 1,362,951 3,401,399 (3,823,550) 940, 800 22. Analysis of net assets between funds Analysis of net assets between funds - current period Unrestricted funds 2024 Total funds 2024 Tangible fixed assets Intangible fixed assets Current assets 11,686 11,686 197.223 197,223 808,331 808,331 (551.067) {551,067) Creditors due within one year Total 466.173 466,173 Page 37
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 22. Analysis of net assets between funds (continued) Analysis of net assets between funds - prior period Unrestricted funds 2023 Total funds 2023 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 18,426 250, 000 1,409, 194 (731, 595) (5, 225) 18,426 250,000 1,409, 794 (731,595) (5, 225) Total 940, 800 940, 800 23. Reconciliation of net movement in funds to net cash flow from operating activities Group 2024 Group 2023 Net expenditure for the period (as per Statement of Finanaal Activities) (474,627) (422, 751) Adjustments for: Depreciation charges Amortisation charges Impairment charges Decrease in debtors 10,828 101,533 139,104 275,841 (121,569) 9,837 314,392 259,451 179,279 (105,039) Decrease in creditors Net cash provided byl(used in) operating activities (68,890) 235, 769 Page 38
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 24. Analysis of cash and cash equivalents Group 2024 Group 2023 Cash in hand 350,371 675,393 Total cash and cash equivalents 350,371 675,393 25. Analysis of changes in net debt Other non- cash At 30 March changes 2024 At 30 March 2023 Cash flows Cash at bank and in hand 675,393 (64,184) (5.225) (325,022) 64,184 350,371 (5,225) Debt due within 1 year Debt due after 1 year (5,225) 5.225 605,984 (260,838) 345,146 26. Pension commitments The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and £9,522 (2023 - £10,062) was payable to the fund at the balance sheet date and are included in creditors. Page 39
Docusign Envelope ID.. 40EDEOF5-6E6440FE-A7A9-8647A6EDDA2C THE AUDIENCE AGENCY {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2024 27. Related party transactions There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties. No trustee or other person related to the charity had any personal interest in any contract of transaction entered into by the charity, including guarantees, during the year (2023- £nil). During the year the charity recharged The Audience Agency Services £10,003 {2023.. £150,000) in respect of admin and support costs. At the year end the charity was due £nil (2023.. the charity owed £147,777). On the 31 August 2023 The Audience Agency purchased the intangible asset (software) from The Audience Agency Services limited for £138,000. Trustees are appointed to the board primarily for the skills, experience and knowledge thal they bring to the organisation. Such individuals are likely to hold other directorships or work within the sector for organisations that may have links with The Audience Agency or its subsidiary The Audien Agency Services Limited. Page 40