Charity Registration No. 1153464 SARABANDE ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 SARABANDE LEGAL AND ADMINISTRATIVE INFORMATION Trustees G Jackson D S Glick C Lowther OBE D Bradfield (Appointed 8 October 20201 (Appointed 25 November 20201 Charity number 1153464 Prlnclpal address 22 Hertford Road London N15SH Auditor TC Group 76 New Cavendish Street London W1G 9TB Solicitors Baker McKenzie LLP 100 New Bridge Street London EC4V 6JA SARABANDE CONTENTS Page Trustees, report Independent audilorfs report 18-20 ststement of financial activities 21 statement of financial position 22-23 Statement of cash flows 24 Notes lo the financial ststements 25-42 SARABANDE TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees present their report and consolidated accounts for the year ended 31 December 2020. The financial stslemenls have been prepared in accordance with the accounting policies sel out in note 1 10 the financial statements and comply with the Charitable Incorporated Organisation's goveming document, the Charities Act 2011 and "Accounting and Reporting by Charities.. Stslemenl of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" las amended for accounting periods commencing from 1 January 20161. About Sarabande Sarabande Foundation {"Sarabande' or"Foundation"l is a leading Arts and Cultural organisation and creative business accelerator. It was established by the late designer Lee Alexander McQueen to support exceptional creative talent through the provision of subsidised studios for the advancement of the arts, grant-making for the relief of financial strain, and the progression of education for the general public through an accessible programme of talks and workshops that develop essential creative and business skills over multiple creative disciplines. its three main strands of support include.. Granl-giving lo cover living costs and study fees to exceptional London universities these are given to those who would struggle financially wilhoul the support. Sarabande also awards final year bursaries to creatively focused endeavours.. grants are given to students via Central Sl Martins, University of the Arts London and Slade School of Fine Art, University College London. The provision of high-quality affordable artist studios to London's global creative community, offered with bespoke business and career mentoring. A pioneering and financially accessible public programme of educational on-site talks and skills workshops for the general public and an online educational programme that is available to the worldwide community through our digital platforms. The support offered by Sarabande is not limited by art form, medium or discipline but cenlres around the founding principles of uniqueness of vision, craft, quality, creativity and passion. The Foundation fulfils a pressing need for financial and business SUPFlOrt for art and design entrepreneurs from all over the world and from any economic background. This is what builds our diverse community. The Sarabande building and alumni reflect the multicultural and diverse backbone of those living in the UK. 600/0 of the artists supported lo date are British-bom but hail from a diverse range of cultural and economic backgrounds, with the remaining 400/. hailing from 25 different nationalities, bring a vast degree of experience and ranging approaches to their art. Financial Review Net income in the year ended 31 December 2020 was £1,490,134 12019-. £428,985). Income included, inter alia, donations of £221,226 12019.. £280,026), legacy income of £1,000,000 12019.. £40,626), income from events of £nil 12019.. £253,684) and rental income of £16,635 12019,. £19,582). Grants of £64,537 12019: £126,823) were made. The declines in these amounts in the majority of cases compared to the previous year generally reflect the impact of COVID-19 on so many aspects of the Foundation's operations. Reserves Pollcy The Trustees have formally adopted a reserves policy. This recognises that income does not arise evenly year on year and to enable the Charity lo plan its activities il is prudent to hold reserves. The policy also recognises that the restricted funds of the Charity are not freely available and are thus to be distinguished from free resetves. 11 is the policy of the Charity that restricted reserves should be held al a minimum level. Unrestricted reserves as al the balance sheet dale amounted lo £13,410,207 12019.. £11,920,073) and il is the intention of the Trustees to ensure that these reserves are for the continuance of the Charity's operations in the future. SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Covid-19 The Trustees have Continued lo tske into account realistic and prudent projections of the impact of COVID-19 on the financial position. This impact includes a level of overhead cost that is modestly higher than would otherwise have been anticipated, and, MO￿ significantly, a reduction in the level of sponsorship, donations, event income and other sources of incoming funds over the short and medium term. These impacts are continuing into 2021. Nonetheless, the Charity and ils subsidiaries continue to maintain a substantial level of cash and other realisable investments, coupled with only a very modest level of Committed expenditures. In the opinion of the Trustees, these factors are sufficient to ensure that the Charity will relain sufficient sources of funding lo support operations for the foreseeable future. structure, Govarnance and Management The Charitable Incorporated Organisalion was estsblished by a charitable trust deed on 4 June 2013 and was registered at the Charity Commission on 19 August 2013. The charity is led from its governing documents, staling the aims and objectives. The Trustees who served during the year were.. G Jackson D S Glick T Verkade N Mulholland C Lowlher OBE D Bradfield (Resigned 30 September 20201 (Resigned 21 October 20201 (Appointed 8 October 20201 (Appointed 25 November 20201 The appointment of Trustees is governed by the Trust Deed, which requires that that all new appointments be made by a resolution of Ihe Trustees passed at a Trustees, meeting. The board of Trustees has the power to appoint new Trustees and to make and hold investments using the funds of the Charity. The day lo day management of the Charity is carried out by the Chief Execub've Officer, Trino Verkade and her team. The Trustees meet al least three times a year to discuss mid and long-term funding strategies and the aims and objectives of the Foundation. They also monitor the best pra¢li¢es and guidelines sel out by the Charity Commission. Quarterly Reports are distributed on the Foundation's activities throughout the year. The Trustees ensure Complian￿ with the Charity Commission and have a range of skills that benefit the Foundation, such as accounting facilities and compliance. Sarabande and ils Trustees are aware of and are following measures to adopt the Charity Governance Code and bring in a diverse Board of Trustees that better reflects the demographics of those supported by the Foundation, as well as having the professional skill sets to support the Chief Executive Officer and her team. Consistent with this policy, two long standing Trustees, Nick Mulholland and Trino Verkade, stood down in 2020, then being replaced respectively by Camilla Lowther OBE and Damian Bradfield. No further resignations are currently envisaged for 2021, given the critical Importan￿ of maintaining a certain level of continuity during the exceptional Circumstan￿ Df the ongoing pandemic,. but this will be revisited in 2022. In addition, we aim lo continue lo follow the aim of creating a larger and more diverse Board, as we believe that this will be in the best interests of the Charity as well as being consistent with current best practice. To this end, further Trustee appointments are anticipated over the coming months and into 2022. SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Objectives and activities Sarabande provides a network of support and opportunity for thousands of people in the creative industries. This is done by enabling a¢￿$$ lo education, fostering connections and networks, and by providing professional opportunities to present creative work and initiate paid commercial relationships. Impact Sarabande has directly and financially supported 104 artists since ils inception through giving scholarships lo those financially in need, or through a heavily subsidised studio workspace. All those supported are f￿e lo make use of benefiis such as bespoke mentoring, affiliated facilities, and Sarabande's event space for exhibitions, presenlalions, or any activity that is ne￿SSary to support their professional, creative. or business development. In addition to this, a wider neh￿ork of over 18,000 people have been supported Sin￿ 2017 through subsidised in-person access to our business and creative tslks and education programme. These talks are held in our gallery space and encourage a community lo come together with shared experiences to gain advice and insight into a range of skills. Over 80,000 people across the globe accessed the educational talks during an exclusive three-month free release on Sarabande's website in 2020. Scholarships Sarabande has been providing university ￿holarshIps, living subsistence and covering fees since 2012,. this programme is one of the core principles of the Foundation's work. The grants specifically provide access lo education and relief from poverty based on need and merit. Lee Alexander M¢Queen was only able to attend Central Sl Martins due lo financial support from his aunt, and Il was his direct wish that others from financially disadvantaged backgrounds should also have access lo education and opportunity through generous grants of money. Sarabande's current partner universities are Central Saint Martins at UAL and Slade School of Fine Art at UCL, both of which have an eX￿pIlOnal reputslion for a high standard of arts education and rank in the top five arts universities in the UK. Both colleges and the Courses supported were preferred by Lee Alexander McQueen. Potential scholars are initially assessed for finan￿al need and shortlisted by the universities. To ensure scholarships are allocated to 8 diverse range of applicants, recipients are chosen by a different guest judge each year. The judges are highly respected and accomplished experts in their creative field and may only select one year of university intske. Guest judges have included Sarah Burton OBE, Andrew Bolton, Nick Knight OBE and Shaun Leane., gallerisls Sadie Coles and Hannah Barry,. co-founder of Frieze Art Fair Matthew Slolover,. plus artists Matthew Stono, Jake Chapman and Hugo Wilson. Additional experts from fashion include stylist Katy England and designers Craig Green, Thom Browne, Kim Jones, Giles Deacon, Todd Lynn and journalist Tim Blanks. As of 2020, Sarabande has awarded 37 scholarships. Nine of these students are currently in full time study, with an additional scholar in a placement year. The scholarships are open to applicants from all countries, regardless of age or culture, fostering a diverse and multicultural environment. For all scholarship recipients, a¢cess lo further education would have been financially impossible without the grant. The Sarabande CSM Scholarship for MA Fashion Design provides full relief from cost of domestic fees and a living grant to help with the cost of living in London a lolal of £23,100 for the 15-monlh course. This was the course that Lee Alexander McQueen studied and was his entry into the fashion industry. Sarabande also supports the BA Fashion Design at CSM, which is currently the only existing annual scholarship supporting three to four years of study. Each student receives an annual living stipend of £6,000 whilst in study which lolals a maximum of £24,000 across three to four years depending on the ¢hosen length of their course. With social distancing and limitations on travel, the 2020 selection processes were taken online, enabling international judges to make the final selection. CSM'S 2020 MA fashion scholarships were chosen by Iris Von Herpen, the Dutch designer who crosses innovation in technology and fashion, and the BA Scholarship was selected by the American Creative Director of Givenchy, and founder of Alyx, Matthew Williams. SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Having seen how access lo subsidised higher education is vital for those from lower-income backgrounds, Sarabande increased this early-stage scholarship to two recipients in 2020. The final course supported by Sarabande is the Fine Art Masters al Slade School of Fine Art, University College London - a course that Lee had planned lo study. The Slade Scholarship was chosen by artist Marina Abramovich from upstate New York. Each student awarded this scholarship receives financial relief of £39,150 to cover the higher fees set by this course and includes the same living stipend as our CSM students. We have previously granl8d additional smaller awards lo Slade students to enable an ambitious final year project. With so many scholars deciding lo defer their studies and the cancellation of the final year exhibition due to COVID-19, we decided in consullalion with Slade lo cary these awards over lo another year. Sarabande has committed lo paying any awards and fees for deferred students when they return to study, and these will be charged and paid when they arise in Sarabande's accounts. Case study l.. Davide Carrano (CSM BA womenswear designer) was chosen by Kaly England. He initially requested our help 2018 to find a placement in Italy lo be clos& to his grandmother. Although the colleg& did not have any suitable connections, Sarabande managed to place him at Jil Sander, where he developed the Shibori print for their 2020 resort collection. Staying in close contact, when facing his final year, he spent valuable lim8 discussing his collection with both stylist Katy England and the Sarabande team. We were able to give Davide the main exhibition spac8 lo complete making his final year collection - this aid was invaluable given he was sm211, shared accommodation with no workspace. He was also able to use the Sarabande space and our professional filming equipment to shoot his graduate film, capturing the mood of the collection. Davide, as an Italian nalNonal, was unable to trevel during 2020. In addition lo this, his family have a small motel that received no income during lockdowns, and without Sarabande's support both emotional and financial throughout each year, he would have certainly had to leave the Gourse. 'There was support as soon as I needed it, everyone at Sarabande reacted promptly to help me in this difficult time, so I was lucky and grateful this happened., Davide Carrano Valua beyond tha Financial Sarabande has a reputation for continued extended support." students are invited into our HQ lo meet the CEO and the team once they accept the scholarship, and we are in regular touch with all the scholars during their course. Scholars are encouraged to utilise the Sarabande facilities, and we provide additional help throughout their course by finding internships, sourcing material sponsorships, emotional and practical mentoring, and assisting where we can with connections. Slade allowed students to defer if remote learning would not satisfy their educational experience. After tslking through con￿rnS with Slade MA students, Ruby Wroe, Rosie Kennedy and Jamie Hammill, Sarabande was able to support their choices.. all paused their study due to the lack of on-site leaming, with Sarabande agreeing to carry forward their scholarship lo a later year. This meant a lower than budgeted scholarship payment of around £40,000 in the accounts. which will be added to fees due in 2021. The scholarship programme is continuously reviewed and discussed to ensure that the money awarded continues lo have maximum impact al the most essential stsge of a student's creative development. Although several scholars paused their studies, the following scholarship students did graduate in 2020.. Sarah Mccormack.. MA CSM, chosen by Thom Browne, Winner of the L'oreal Prize James Crewe.. MA CSM, chosen by Kaly England Davide Carrano.. BA CSM, Chosen by Katy England Alice Burnhope.. textiles at Loughborough, chosen by Todd Lynn Rebe¢¢a M¢Ballantine'. Loughborough, chosen by Katy England Clara Courtney.. BA Fashion at Manchester University, chosen by Kaly England Ed Lawrenson.. MA Fine Art Northumbria University, chosen by Sadie Coles SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 'Having just handed in my final project I wanted to... say thank you 50 much for supporting me through my MA. It rgally wouldny have been possible without the funding received from tho organisation...l am really so. so grateful and happy for everything you have done. 'As well as this, I wanted to say thank you for all the additional support and wamith. Everyone has been so amazingly helpfvl and welcoming. It's been so greatl Thank you again x 1.000,000., Sarah Mccormack CSM MA 2018-2020 Th8 impact of the scholarships can be measured by the skills and experience that chosen scholars can use for a career in the creative industries. It is important to allow access to higher education for those from disadvantaged financial backgrounds, and this is integral to Sarabande's support pillars. Not only this, but Sarabande welcomes and encourages alumni's continued involvement in the Foundation, using il for support and mentoring at pivotal stages throughout Iheir career. Sludios Sarabande's 15 artist studios are housed beneath the office and event spsce in ils East London HQ- a Grade 11 listed 9,000 sq. ft converted Victorian stable block. The building is located on Kingsland Basin off Regents Canal in the heart of De Beauvoir. Resident artists have access to their studios 24 hours a day, which are in a prime location with easy aC￿sS to cafés, restaurants and pubs. Easily accessible via numerous Transport for London links, the area is the Creative hub of East London. As part of Sarabande's charitable objectives, the studios are heavily subsidised in response lo the desperate need for creative development spaces in London. This affordable rent assists in the advancement of the high- level production of art, design, traditional and contemporary craft. Sarabande's studios are the best value in London. They cost £1 per sq. ft. with studios ranging from the smallest at 56 sq. ft, which costs £56 per month. to the largest al 176 sq. ft, which costs £176 per month. The rent has remained the same Sin￿ 2015, with payments being temporarily suspended at times in 2020 and also 202110 further alleviate financial stress during COVID-19. 1000/0 of former residents considei the studios as exceptional value for money. In addition to the subsidised rent, the studios are healed and well-maintained with free access to Wi-Fi. There are no additional charges for rates, utilities, shared facilities or the professional bi-weekly cleaning service. Sarabande Studios is an accelerator programme for those who wish to lake a step lo the next level of their practice and are in a position lo make the most of every opportunity provided by the Foundation. The studio r8sid8nts ar8 chosen purposefully from numerous creative disciplin8s to form a diverse community of artists, eX￿pIlOnal in their output and focused on an individual goal. The extensive opportunities offered through the studio residency programme include a vast amount of'money can't buy, support which is detailed below. It is estimated Ihat the value of financial relief and in-house support available to each creative is approximately £35,000 - £40,000 per year. Artists who wish lo be considered for the studio residency do so by completing an application form online. All applications are reviewed and then a selection is invited to be interviewed by bNO of the Sarabande team. Successful artists will have a unique vision and dedication to their craft, usually with some experience working in their industry and a clear understanding of what exact support they need from Sarabande beyond subsidised rent. 11 is not necesssry lo have a form81 education., dedication lo their craft- be that traditional or new technologies and a unique vision are more important. Sarabande's curated artist studios house a plethora of art, fashion, craft, and digitsl disciplines, and foster an environment that breaks down the elitism of the art worfd. Many of our artists, work reflects this sentiment by addressing social issues. In 2020, many studios closed their doors, preventing artists and young businesses from continuing their work. To ensure Sarabande businesses could safely continue, a dedicated Sarabande stsff member checked and forwarded any post weekly and became the artist's sludiolbusiness coordinator for whatever was required lo keep them operational. Sarabande studios are self-contained and once stay at home orders were relaxed, we were able to socially distsnce and operate a responsible community in a safe environment. Rents and all costs during lockdown periods have been waived removing financial pressLJres from residents. SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Studio residencies typically last one year focusing on a particular goal in their professional or creative development. This timeframe ensures the Foundation Can continue lo support as many people as possible. The support at Sarabande is specific and is most beneficial at early pivotal points in career development when we can offer the most assistance. Therefore, creatives may apply two or three times before they are accepted onlo the programme. Extensions beyond one year are allowed if this would make a positive and significant impact to a small business or individual's practice. 2020 welcomed a selection of new disciplines in the studios. These included artists working with sculptural paper, and 8mbroiéering canvasses using traditional techniques., an artist who uses folklore-inspired sculptures lo highlight women's roles in s(Iciely,' and two jewellers from opposing ends of the aesthetic spectrum one whose macabre pieces are molded from skin textur8, and another who gels the cham of nostalgia with wil and craftsmanship. Sarabande's walls have seen painters using philosophy lo inform their work, or reflecting how social media has become a vehicle for class and privilege. In the same vein, the Foundation has also welcomed a photographer that addresses our obsession with the perfect body, and instead distorts and inverts the beauty of flesh. Further disciplines include a fashion menswear label, a digitsl performance artist, and an artist using his experience as a breakdancer to transfer moments of movement into sculpture. We have a multidisciplinary artist creating contemporary pantomime and theatre. and an architect- lumed-artist using her art practice lo elevate others who Creates community, street and fine art projects. Sarabande also houses two filmmakers using animation and illustration, who share their studio with an artist working between culture and sculpture. These join the existing artists with an innovative and forward-looking digital fashion duo, and an alternative and sustainable bridalwear brand. Sarabande promotes a multiwcullural and multi-disciplinary environment., one that allows ideas lo flow and be supported. The community of creatives that are chosen for residency complement each other in both their practice and their working hours. By housing multiple disciplines alongside one another, individuals can build ne￿orkS of peer-lo-peer support and draw inspiration that will remain with them for a lifetime. The combination of multiple disciplines in an active community helps lo merge ideas and encourage growth in their practices. 95 /0 of studio residents say they have made life-long friends through Sarabande and 89 /0 of residents have collaborated with another studio artist either during their tenancy or afterwards. This is a teslamenl to the camaraderie that Sarabande fosters. Exhibition space Resident artists also have access and use of the 2,000 sq. ft event space - the 'Main Space,. This room can be exclusively booked for a maximum period of five days via a shared calendar. Activities held in Sarabande's Main Space includ8 public exhibitions and fashion presentslions, workshops, a photography studio for artwork documentation or product shoots, large scale experiments, dance rehearsals, talks and client meetings. The majority of artists will use the Main Space at least once during or after their residency period, and it is not uncommon for the main space lo be used by multiple artists al the same time. This division of space is informally agreed between the artists when prepping larger works, praclicing, shooting photography, or even short-lerm warehousing for the brands who are rotating stock lo clients. For more intimate meetings, the artists also have the free use of three meeting rooms in the office area. Sarabande's Main Space is considered a vital part of the support offered by the Foundation. In London, there is a severe lack of physical Spa￿ lo create freely and exhibit with minimal or no financial risk. Artists that use the Main spa￿ to develop work use as showrooms or photo studios, have meetings or exhibitions save themselves the industry standard venue rate of £1,500 - £3,000 per day. The impact of the global pandemic has been devastating for the creative industries. Only businesses and sole traders with a Ihree-year record of business accounts were eligible for government support, which omilled many Sarabande businesses and artists who were in early stages of trading. Having a safe and flexible exhibition Spa￿ for no cost, especially when many other buildings were closed, allowed many of the artists to carry on their creative activities, either throLJgh digitsl means or within government guidelines. The group show 'Flesh' for International Wornen's Day in early March was one of the last public events Sarabande hosted before the first national lockdown. SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 'Flesh' featured three female artists whose practices meryed science and the body. As well as this, the show held drawing workshops and a talk ￿nterIng on 'Brutality and the Female Body, which provoked a conversation about how the female fom is seen in the art world. Sarabande supported this event by securing a media partner and covering the costs of a professional curator. Ordinarily Sarabande would host around len annual artist-led exhibitions. These are supported by Sarabande's outreach to press and industry professionals, in addition lo our sourcing sponsorships, commercial partners, curatorial consultancy and production. This was severely inhibited due to intermittent lockdown periods and uncertainty in lh8 art worfd. As such, our artists in residence preferreé lo focus on the Sarabande hosted annual Group Summer Show. An exhibition opportunity for all praclicing artists in the Foundation, this show is a free public event and a chance for emerging artists to p¥es8nt th8ir works lo the public. Co-produced and curated by the artists, the show is often artists, first opportunity lo co-curate a display. Supported by the Foundation, concerns surrounding marketing and production costs are eliminated, meaning that the artists can realise their vision wilhoul reslrainl. The show usually lasls for three weeks, but due lo COVID-19 rules we altered the fomat.. Sarabande's Main Space received a constant flow of visitors in small groups over the three weeks- a model that proved equally successful and encouraging. Artists were invited lo host specific days, which meant that invitees, attention could be focused on the most relevant works. The 2020 Sarabande Group Summer Show welcomed a total of 350 allendees from the professional art wodd and the public. Its Suc￿sS means we will repeat this formula again in 2021. Industry connections Since the building opened in 2015, Sarabande has quickly gained a reputation for per￿pI1Ve1Y identifying creative ideas from all over the world our aid reaches an inclusive 25 different nalionalilies. For this reason, there is a huge interest in visiting the London-based studios lo hear about the Foundation and meet those currently in-residence. The studio tour can lake two hours per visit and is led by someone from the Sarabande team, all of whom support the artists in the presentation of their worf(. These visits lead to collaborations, press features, sales and commissions for the resident artists. Due lo the restrictlDns on human contact, COVID-19 heavily impeded these vital physical introductions to the artist studios, meaning that artists in residence were unable lo benefit from the professional advice and inlervenlion. To lessen the impact, the Foundation worked tirelessly to provide support and mentoring in the first few months of the year and continued lo mentor on business issues ￿motelY during the lockdown period. This helped artists to navigate the effects of the pandemic on their business models and brands. We had to change and eMbra￿d the digital world during this period. Sarabande commissioned a 3D scan of the premises showing the artists, working areas and practices to ensure that a tour of the studios could be ac￿SSed via our website from anywhere in the world. The Foundation also committed to 3D scans of all exhibitions held in 2020 and 2021 to mitigate the effect on travel restrictions and a¢￿ssIbl11ty. Casg Study 11: Slefan Cooke is a menswear design duo. Starting their brand in 201 T, they built a fftpulalion for m&nswear with unique silhouettes and innovative fabric manipulation distributed in key stores internationally. They took up a ￿SIdencY in Sarabande studios from October 2019 to February 2021. Following meetings with Sarabande s team, the duo focused on all elements of their business.. production, sales, cashflow and range plan. They improved their deliveries which, in turn, increased sales across Sto￿$. With an additional focus on product development and e-commerce channels, their busNness doubled during their tirne al Sarabande. Sy using the Sarabande facilities for all maA(eling activities, they el8valed their visual language, renegotiated agreements with third parties lo increase margins, and ran a more eflicient company with more control. Ultimately, Stefan Cooke was able lo leave Sarabande for a new studio space with financial stability. 'The business d￿{s1on$ we have made in the last year have been mode with more Confidence because we have busiTness advice upstairs- it's advice we really trust., 'Sarabande at its heart wants you to Succeed as much as possible., SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 'The business side of the brand has really benefifted from the advice of the Sarabande team that has been so consiTStent and reliable.. Stefan Cooke Case study 111: C&slro Smith left his 'wothing from home, envNronmenl for Sar&bandg in 2017. A highly-skilled craftsman, he had spent the previous year in Japan honing his skills. It was there that, under the Supe￿iS1on of a master engraver, he was awarded the Winston Churchill award. Joining Sarabandes community of artists and creators allowed Castro to see himself as a creative brand, not solely an engraver. Working closely with the Sarabande t8am, he grew his business from one lo si¥ people over three years. Castro focused on d&veloping his pricing, sales, streamlining production and developing a CRM system to log and treck customer activity and interest for futu￿ sales. Improving on these areas of the business has resulted in Castro Smith having a six-monlh waiting list forhis handmade orders. The Sarabande business mentoring and facilities allowed Castro to develop his brand injage and message a way that is completely ￿flectIVe of his business ethos. Led by craft and oreativity but entwined with traditional artistry, Castro has created a rare successful brand th81 values craftsmanship and refined methodologies in equal measure- a duet that Sarabande's multidisciplinary appmach embraces. 'Without thg SUPPOrt of Sarabande, we would not be where we are today with the business., 'Thg ongoing support during our timg and gven since we left has bgen incredible., 'We have been blown away by the press features that Sarabande has achieved for the busiTness as these have been Instrumental In the bulldlng of our brand Image. We are so grateful for the guldance and encouragementl, Castro Smith Cultural collaborations Throughout the year, Sarabande synchronised with the global calendar to strengthen ils cultural lou¢h points and promote the work of ils alumni to a wider audience. Sarabande supports a plethora of artists whose work problematises and deslablises contemporary societal, political and economic issues. Among other concerns, our artists, practices advocate for equality, diversity and protecting the planet's resources. To support these visions, Sarabande helped produce a group exhibition for Inlemational Women's Day by organising a curator, securing sponsorship for the artists and orchestrating a series of talks which were open lo the public. For Fashion Revolution Week - which re¢ognizes and places stress on the Importan￿ of sustainability and transparency in fashion - we released a digital series of films which cast a spollighl on th8 successful r8localion of designers from high-cosl big cili8s to cheaper areas in the UK. This illuminated the positive effects of allowing space and technology lo aid their praCti￿S. In addition to this, Sarabande produced a film and coordinated a talk centering on the positiv8 effects of touch and grounding on mental health. Sarabande offers the Spa￿ and opportunity for our artists lo discuss these essential bul complex issues with the wider public.. offering a platfom for their work ensures a greater impact that is beneficial to both the artists as individuals and lo advance progressive societal conversations. It is Sarabande's professional network and Lee's legacy that enables us to partner with eX￿ptIOnal organisations and amplify our alumni's work across the world. This exposure is vital in the advancement of a creative practice to achieve a solid business structure. Case study IV: Krislina Walsh was a studio resident b8lween 2018 and 2020. During this period, the Foundation supported Krislina's Iw(Fyear project which explored how 'freedom' is defined through multi4isciplinary, disabled and non-disabled female artists. Inspired by civil and soci81 rights movements, Kristina Grealed a series of designs body accessories, installations. and prosthetics legs for perfom]ance to respond lo the multiple ways in which personal independence is built. SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Sarabande's support included press exposure (including a video and written article for the B8C), mentoring, budgeting 2nd funding proposals, as well as facilitating meetings with the team involved. Further than this, Sarabande fvnded and distribut&d a 3D scan of h&r exhibition to ensure it was seen by 8 large audience during the COVID-19 lockdowns. Finally, we connected her to paid work opportunities with Nicholas Kirkwood and John Alexander Skellon lo support herself financially throughout the project. 'The resources here at Sarabande were really plyotal In maklng thls project happen.. 'It was great to be able to work wlth one of the brands that got me Interested In footwear In the first place, it was special., '1 had the opportunity to collaborate with really interesting artists and designers as a result of being 01 Sarabande., Kristina Walsh Busin&ss skills development Provision of business skills and pra¢lical advice is a component of Safftbande's support. This aid includes, but is not limited to, daily advice on all business-related matters, helping with range plans, public relations and social media advice, pricing guidance, overseeing contracts and agreements, and helping artists lo navigate commercial agreements. Sarabande programmes one-lo-one and small mentoring groups for the resident artists with professionals from law, accountsncy, e-commerce and established business owners. In February 2020, reputable jeweller Alex Monroe lead a round table discussing pricing mechanisms and production for our jewellers and makers. This provided invaluable industry-level advice on how to navigate the more pra¢li¢al elements of jewellery making and distribution. Upon the enforcement of lockdown measures in March, we kept in regular contact with all artists working from home. In addilion to the Sarabande team being available to help individual alumni prepare business plans, budgets and apply for COVID-19 funding, the Foundation also coordinated an online workshop for 20 alumni on how to write and submit s￿￿eSsful funding applications. '1 managed to get Creative Scotland fundingf It was definitely due to the talk on funding that clarified a lot... I probably wouldn't have got it otherwisej, Sarah Mccormack. Fashion Design Scholar at CSM Sarabande events Sarabande's advice aid reaches beyond our artists, scholars and alumni. The educational and inspirational events programme remains an essential part of the Foundation's charitable objectives. This ensures that Sarabande extends support for business skills and education lo Ihe general public, as w811 as individual opportunities to ils resident artists and scholars. Our Inspiration Series has an emphasis on learning new skills through hearing the journeys of successful artists, designers, Curators, photographers and jewellers. As part of this series in the past, Sarabande has orchestrated talks with 8 variety of leading thinkers and creators from around the world including designer Samuel Ross from A-COLD-WALL" Simone Rocha., jeweller and scientist Giovanni Corvaja,. the world's first ullra-realislic robot artist Ai-Da interviewed by Tim Madow OBE,. S8r8bande's ambassadorAndrew Bolton,. and artists Yinka Shonibare OBE, Grayson Perry CBE, Martin Parr and Juno Calypso. Speakers for the Inspiration Series are invited lo speak because they are at the lop of their game and famous world-wide for their creative practice- their advi￿ is unparalleled. Sarabande is responsive lo the needs of its alumni network. The Foundation keeps its advi￿ relevant lo real- lime issues that our artists are facing by deliberately programming tslks that directly inform artists with business-related problems and respond to wider issues in the creative industries in London and elsewhere. Speakers are asked to tslk frankly and wilhoul agenda to ensure that genuine, tangible advice can be put into practice and advance artists, careers. The business talks and creative workshops leach the key skills for building a SUC￿SSfUl business model. These programmes include advice on fundraising, hidden production costs, building an e-commerce site, trademarking and employment ¢ontra¢ls, among other counsel. SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 All Sarabande events are publicly available through Evenlbrite with lickels for the practical talks priced at £3. The cost is subsidised to ensure equal opportunity lo access vital information for people from any so¢io- e¢onomic background. Sarabande also offers free tickets lo students on specific university courses that the Foundation believes would benefit from the talk. Each panel is curated by Sarabande with a variety of businesses represented. This ensures that information given is not biased by one company and holds no agenda. All presentations with relevant links and tske away information are circulated via email to attendees after the talks. Fashion practical includes.. The Critical Path (from design lo sampling and production) Logistics of shipping worfdwide Product development Merchandising Trademarking Working with agencies and showrooms Compiling your fashion portfolio Iworkshopl General practical inclLJdes'. Employment contracts Writing a bLJsiness plan Profil and Loss vs. Cash flow Selling up a business sole trader, limited company Building a website and social media presence Selling up for e-commer Fundraising investment, grants funding, loans Visual merchandising (i"ewelleryl Product photography Protecting your intellectual property11P1 How to get hashtagged Sustsinable futures Art practical includes". Pricing and editioning Writing an artist slalemenl Public funding applications Critical writing Curating your solo show Life drawing, clay, and collage art classes Iworkshopsl Gallery representstion Digital practical includes= Film pre-produ¢tion Applying lo film festivals Using Adobe after-effects Iworf(shopl Portrait photography In 2020, Sarabande had a full year of infomative tslks and events planned.11 began in February with pr801ical advice on 'Firsl Steps to Being an Artist, hosted by gallerisl and artist mentor Marisa Bellani. This was followed by Tumer Prize winner Tai Shani offering advice about the realities of making a living as an artist, and a further Inspirational Talk with artist Polly Morgan. Additional practical advice on the 'Logistics of Setting up a Business, was organised in partnership with law firm Baker McKenzie and accounlanls ABG. A lolal of 283 allended in person to receive advi￿ directly from specialists and meet others with shared experiences. But by late March, Sarabande had lo ¢an¢el all projected in-person talks including three scheduled talks on expanding business with social marketing skills- due to lockdown measures. 10- SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Despite holding 41 events with a collective attendan￿ of over 5,000 people in 2019, 2020's Unpre￿dented circumstan￿S meant that Sarabande was largely reliant on digital events. With this in mind, we decided all new content should focus on practical advice and adapting to the issues of lockdown for creatives in the eady stsges of their career. Sarabandg $e$sions.' Education with a global reach To expand the reach of our educational tslks and events, Februsry saw Sarabande in early discussions with global partners and regional independent cinemas. Our vision was that an extended platform would increase a¢cessibilily of advice and education for creatives in physical venues across the UK. This would reduce barriers to infomiation access, provide a space for peer support and connections, and facilitate a continuous revenue stream lo help fund the Foundation. Regrettsbly, with slay-at-home orders issued in March, these activities were cancelled. To combat the hurdles posed by lockdown measures, Sarabande reacted quickly to release pre-filmed talks Vla Sarab8nde Sessions lo continue their support of Creatives and young businesses during COVID-19. These were offered to the public as a free online resource via the Sarabande website and spanned an impressive 18 weeks through lo the end of June. Sarabande Sessions included 38 individu81 videos of inspirational and educational talks and informative workshops. Sarabande Sessions online talks were deliberately chosen to reflect the range of disciplines supported by the Foundation and included essential advice on business and financial management, advice on fundraising, career development, how to drive digital engagement, IP protection and e-commerce. The Sarabande digital team worked overtime editing footage to a professional ready-t￿VieW standard to ensure timely daily releases of tslks. The response was global with 74,000 visitors lo the Sarabande website in search of advice and inspiration over the launch period. Sarabande Sessions primary audience joined from the UK, Russia, and the USA. Following the positive response lo the release of pre-recorded content, Sarabande began production of new digital conlenl that specifically addressed issues surfacing during the ongoing lockdown. The focus was a range of workshops led by experts in their field leaching creative skills that can be explored at home, a week- long e-commer￿ series that gave people the tools lo build their own sile without external help, and the development of important business skills including writing press releases and managing cash flow. These workshops were all freely available lo respond lo immediate and desperate needs of small creative businesses who need to refine their business models and upgrade their commercial skills. Workshops and talks included, but were not limited to= Bookbinding at Home with Paloma Tendero Draw wilh Adobe Illustrator wilh Berke Yazicioglu Reclaiming the Gaze Iself-portrail workshopl with Shannon Bono Technical Drawing for Jewellery with Benjamin Hawkins At Home Ceramics with Camilla Hanney Writing Your Press Release with PR Specialist Managing Your Cash Flow with ABG A¢countancy Japanese Shibori with Davide Carrano and Hiroyuki Murase E-commerce Workshop Session 1.. Preparation and Planning E-commerce Workshop 2.. Setting Up Your Store and Catalogue E-commerce Workshop 3.. Editing in Lightroom with Adobe E-commerce Workshop 4.. Customisation and Themes E-Commer¢e Workshop 5.. Processing for Ordering Press aboLJt the free Sarabande Sessions and workshops reached 20 million global readers via.. Harper's Bazaar Another Man SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Vogue Gree Vogue Italy Vogue HK Dazed Highxtar Manchester's Finest V Magazine GQ L'officiel Pro Fashion Pause Magazine Vogue Netherfands HLN British Vogue Lecture in Progress It's Nice That The DolsGood2b GCN Vice Eco Age Amsterdam Fashion Week FT- How lo Spend It Red Time Out All in London High Snobiety Noise Icon Glam Observer Graduate Fashion Week Collater Elle Russia Glass Magazine A Little Bird Man in Town "Insanely good and bmlally honest talk so rare and funl Thank youllj hank you for sharing knowledge to the world.. 'Love every event I've been at so far. All very informalivel Thank you.. "Love these events - think they have a g￿at atmosphere and intimacy and like the fact that you focus on the individuals and not watching them through a $c￿en. "Great evening, I look fO￿ard to your upcoming events on communications and tackling other business issues. Thankyou very much foryour work.. Fundraising Sarabande was initially dependent on the financial legacy of ils founder Lee Alexander McQueen, but since the eslale's closing, that is no longer an infinitely available support for the Foundation. Our objective is lo cover Sarabande's annual costs and operations through various fundraising activities and revenue streams. To date, this has been achieved through a combination of commercial activities, corporate sponsorships, investment dividends and private donors, and has been facililaled by alternating small and 12- SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 annual fundraising events. This has allowed us to nurture a wider sUPPOrting network without exhausting the support of our existing 'friends of the Foundation,. Following a large fundraiser in 2019, we planned to pepper a series of smaller events and dinners throughout 2020. These events would introduce the Foundation lo a new cohort of private donors and corporate partnerships., however, all these fundraising events were cancelled due to COVID-19. The corporate partnerships that Sarabande rely UFX)n for monetary aid have also been financially wounded by COVID-19. This has resulted in the cancellation of additional activities and has had a d8lrimenlal impact on Sarabande's funding. Physical access to the artists and studios is integral to the Foundation's operations and funding.. Sarabande's benefit to the creative arts is best understood by potential donors through physical visits to our headquarters. This has been impossible during COVID-19 and has had a severe impact on our funding. Additional cuts lo revenue have occurred because of inhibition to on-site educational events, Offi￿ desk rental, and studio rent collections- which have been waived during UK lockdowns. Fortunately, existing contracts with our main sponsors and donors were honoured throughout the year. Yel, this coincides with the expiration of our long-term sponsorship with founding partner Ketel One Vodka. With the current ban on large-scale entertaining and events, opportunities lo secure a replacement sponsor have been made difficult for the foreseeable future. In an effort to sustain the Foundation and our artists financially, Sarabande had lo generate new, alternative commercial opportunities and thus was born the Sarabande Manifesto and House of Bandits. Sarabande Manifeslo The Sarabande Manifesto is an annual, printed bible that commemorates and champions the work of the charity over the previous year. The publication also celebrates our artists, works and is launched to Coincide with and promote the Sarabande Group Summer Show. The development material of the Manifesto enabled us to connect with luxury goods companies lo bolster interest in supporting Sarabande and they were then offered the chance lo advertise. This support has helped bring a continuous and ￿venue stream into the Foundation, as well as introduce an audience of art galleries, digital and fashion houses lo the worf( of the Foundation. House of Bandlts Sarabande approached Burberry lo secure a pop up gallery, House of Bandits, for eight weeks in their flagship store on Regent Street. The spac8 allowed Sarabande alumni and artists opportunili8s lo both 8xhibil ané sell their work while art galleries and stores had been closed cutting off channels of much-needed income. The suspension of activities in the physical worfd during COVID-19 was detrimental to the commercial activilies of the arts communities.. the lack of future activilies meant a lack of focus, not to mention reductions in exposure and sales. House of Bandits helped to gently alleviate this stssis by providing a shared activity for the Sarabande artists to work towards. The House of Bandits space allowed the public to connect with emerging artists divorced from the hierarchy of a gallery art, fashion, craft and digitsl pieces were exhibited alongside one another. Over the 39 days that the space was open, 1450 visitors attended either to view artwork or meet the artists who were on sile. Sarabande used the location lo introduce artists in the context of their craft, allowing the public to view their work with a deeper understanding of their individual process. Esna Su presented her woven wearable sculptures to shed light on the displacement that is caused by war or famine. Emma Witter created a unique bone sculpture highlighting the critical issue of fo￿ waste. Castro Smith installed his studio exhibiting his hand engraving skills. Stephen Doherty illuslraled intricate red petals lo raise funds for and honour World Aids Day. The opportunity for our artists to discuss work with collectors, curators and potential clients positively affected 13- SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 their mental wellbeing- il provided focus and impetus for their creativity. Sarabande was able to offer financial support to the majority of our 47 exhibiting artists through negolialing sales of work on their behalf, from which over £65,000 was paid lo those artists in vttal revenue. 'After lockdown we all struggled to get Into our normal Ilves but belng In thls beautlful space allowed us to get back to normality.'Esna Su Not only did the House of Bandits allow us to reconnect with existing supporters, bul il also intrOdU￿d the commercial and artistic sides of the Foundation to a new audienc8. Both our current and new networks could directly support the creative arts by Purchasing artists, work exhibited al House of Bandits. Despite Sarabande's structure making us ineligible for most govemmenl aid schemes during the pandemic, we Continued to fund our operations and support to artists and young creative businesses by digitising galleries, exhibitions and studio experiences. This incurred a significant additional cost to the Foundation. Studio rents were waived during initial lockdown periods, and this loss of rent was generously covered by a grant from The Creative Land Trust. Staffing Sarabande has traditionally employed a small, core, full-time team. The Foundation allocates budget for experienced freelancers and ¢onsullanls in specialist departments to ensure th81 all skills, expertise and relevant industry contscls required by the Foundation's multi-disciplinary activities are accessible. These personnel are employed on an ad hoc basis lo dovetsil with Sarabande's permanent team. Sarabande is reliant on interns and volunteers lo support our regular activities- a combination of support that allows us to bring scholars and recent graduates into our busy digital team. This arrangement allows young people lo experien￿ and learn from a fast-pa￿d creative environment, and bolsters their employment rale following inlemships at the Foundation. Volunteers are typically experienced professionals fr()m the fashion or arts industries who are involved on a project-focused basis or for a short period during a career break, enabling them to remain active in their industry via the Foundation. Sarabande is fortunate enough also lo have aC￿sS lo a volunteer bookkeeper, and a long-term finance and accounting volunteer who also assists on operating roles. We benefit from pro bono accountancy support from one of our Trustees and his lesm at ABG, alongside pro bono legal advi￿ from Baker McKenzie on IP and propety leases. Finally, we take advice from two architects who help by overseeing all space planning and building matters. With social distancing rules reducing office capacity, we were unable to lean on our normal support system for most of the year. The additional workload was shared across the core team. While 2020 made building networks to help supporl the annual costs of the Foundation impossible, our Trustees graciously recognised that, as a young entity, the Foundation is still in the prO￿sS of building ils reputation as a vital supporter of the arts. Because our Trustees share our focus on finding unique ways to support the arts and young creatives, they understand that this underpins any of our fundraising activities and events. The Foundation has legacy funds that it can allocate to operational costs if budgets are not met. Investment policy and ESG factors The Foundation currently holds liquid assets valued at approaching £9 million lin addition to monies in regular bank current accounts). These funds are available for investment. A revised investment policy and strategy ststement, on which MJ Hudson advised the Trustees, was adopted in December 2019, and implemented through 2020. Our aim is to produce the best financial relum consistent with an ac￿p1a￿le level of risk., specifically, the objective is one of long-lem capital preservation and moderate growth, with a risk tolerance calegorised as Moderate. Funds will be well diversified over several asset classes, typically including equities, bonds, ¢ash and possibly others. Some investments may have limited liquidity but a key obje¢live will always be to cover annual outgoings and investment required for the Foundation's growth, to be provided in part by dividend and interest income from the invested funds. 14- SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 A key element of the policy relates to environmentsl, social and govemance I'ESG'I factors, coupled with the best approach to ethical investing and long-term sustainability considerations. The Trustees believe that ESG factors may have a material impact on investment risk and return outcomes. The Trustees also recognise that long-term sustainability issues, such as climate change, present risk and opportunities that increasingly may require explicit consideration. The Trustees have not set any formal investment restrictions on the appointed investment managers in relation to particular products or aclivilies, but continue lo emphasise ESG in ils evaluation of investments and managers. The Trustees have given th8 appointed investment managers full discretion when evaluating ESG issues, including climate change considerations, and in exercising voting rights and stewardship obligations attached lo the Foundation's investments in accordanc8 with ils own corporate governance policies and current best practice, including the UK Corporate Govemance Code and UK Stewardship Code. Relying on advice from their Investment Consultants, the Trustees consider how ESG is inlegraled within investment and risk management prO￿$se$ in appointing new investment managers and monitoring existing investment manager5. Monitoring is undertaken on a regular basis. Over the last year, many of the investment managers in the portfolio have increased their focus and made material pr(￿resS in integrating ESG and sustainability into their investment activities. The overall ESG rating of the portfolio has increased by over 250/ the past year, both through the improvements made by the managers of the funds in the portfolio and in the selection of new managers and funds with enhanced ESG focus. The latter included switching lo a more ESG- aligned fund with the same manager, specifically the Trojan Ethical Income Fund managed by Troy Asset Management. The Trustees continue to emphasise ESG and sustsinabilily in ils evaluations of investment managers, and will explore the possibility of including more focused impact investments as well as switching lo more explicitly ESG-aligned funds in the portfolio in future. Risk managemenl The Trustees ale responsible for monitoring the Foundation's ongoing activities. Sarabande's aim is lo provide support across multiple creative disciplines this requires a wide range of expert skill sets for mentoring, advice, and support. Sarabande continues lo support ils artists after their scholarship or studio residency has finished. 11 is important that Sarabande is a place that any alumnus can return lo at any stage in their career to benefit from mentoring or facilities. As the Foundation ages and accrues beneficiaries, an ever-increasing level of support is required from our network. The Foundation attracts industry professionals via our existing network and through our growing reputation both as a charity and within creative educalion. We are constantly expanding our networks to allow the support and mentoring lo meet growing demand. With such a small team, the Foundation is left exposed when employees leave, especially when those employees have taken on multiple roles. Sarabande has hired an external HR company to ensure we are compliant with best practices, and so career objectives can be discussed and mel oveT lime. Training of junior and part-time staff will afford us a pool of employees who can cover and fill positions. We intend lo look at better data capture, systems and lemplales lo promote consistency in our work and redu￿ dependence on individual staffing. Sarabande hopes that this will allow Iransilions of stsff lo have a less disruptive impact. Ownership of Sarabande's current building has allowed our annual running costs lo remain low; this helps lo sustain the longevity of the Foundation and ils studios. Ownership of the Sarabande building also ensures that we can sympathetically develop the studios lo be fit for creative purpose within its listed parameters, as well as maintain il for public events. 15- SARABANDE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 The Foundation has plans lo expand the Sarabande studio offering. The current Spa￿ is inflexible for growing businesses and is not suitable for certain practI￿S. Feedback infoms us those creative businesses in their early years would benefit from more than one year of direct Sarabande support- this challenges our wish lo support a wide and growing range of creatives within our current spa￿. Purchase of a further property would satisfy our growth requirements bul puls pressure lo fundraise, as this would eat into reserves. We will build upon our fund-raising strategy, bring on patrons and supporters and develop revenue streams that can be relied upon. In parallel lo raising our fundraising activiles, we are in conversations with partners who will offer Sarabande long-term favourable terms on properties that may be suitsbl8 for expanding the studios. The following key risks pose possible threals to reaching fundraising goals.. Insufficient investment returns perforrnance of individual funds Fundraising activities being can￿lled Economic situation negatively effecting corporate and patron budgets such returns may be dependent on the economy andlor the Sarabande relies finan¢ially on ils project partnerships with major corporate companies. Vvhile this benefits the Foundation by bringing expertise and exposure, it also subjects us to company changes in direction and teams. This can have potential negative impacts on the timeline of these projects. Sarabande recognises that it will be difficult for some of our corporate sponsors lo continue al their current level, and that marketing objectives and marketing budgets are subject to change. The Foundation understands that, particularly in the Context of COVID-19, applications to publi¢ and private funding will be seriously oversubscribed. Social distancing prohibited, and will likely continue lo limit, the fundraising dinners and events that Sarabande planned for 2020 and 2021. Sarabande continued to grow the reputation of the Foundation in this time., we have expanded our range of supported disciplines by including creative and digital innovation. We have lowered our expectstions of individual and corporate support for the upcoming years due lo the economic dimale, bul intend lo bridge this gap by appealing to a greater range of patrons and benefactors. The advent of Sarabande's Customer Relationship Management system will allow us lo retsin and attract smaller patrons who are aligned with our work. We hope that this injection will help plug the gap created by the effecis of COVID-19. Plans for the future London is home lo a dynamic, world-leading creative community it is a magnet that attracts leaders and visionaries from the creative arts. Sarabande plans to remain responsive lo their needs and focus directly on industry demands. To do this, we will continue lo promise unparalleled support to global artists in whatever capacity is necessary- be il financially, emotionally or practically. Ovr vision for 2021 is to expand our studio offering and open our counsel to the international art scene. This will be achieved by offering bespoke projects with leading partners, releasing further informative digital conlenl, nourishing artisls, careers through helping with sales and exposure, and continuing lo offer professional advice and mentoring, alongside flexible facility access. We hope that by identifying expert individuals who Can offer skills and advice on an annual basis, we may formalise our mentoring programme and continue bolstering artists, commercial skills so that they may sustsin their Creative career. By providing creative spaces - both physically and digitally we hope lo bring industry led opportunities for our artists, scholars and alumni to amplify their voices. Sarabande's wish is to continue to provide an environment lo creatives where all disciplines from a diversity of backgrounds can form a community and be inspired. 16- SARABANDE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Statèmènt of Trust8*s' r•sponslblllll&s The Trustees ar& responsible lor preparing lh8 Trust88s' Raport and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accountsng Pracllcel. The law applicable to ch8ritie8 in Engl8nd and Wale3 requires the Tru3tees to prepare gccounl3 for eech financial yeo1 which glve 8 true and fabr vlew of the slate of affairs of the Charll8ble Incorporated Organlsallon Bnd of th¢ incoming resources and appll¢allon of resourc0s of the Ch8rllable Incorporated Organisalion lor that year. In pr8parfng these aGcounls. the Trustees are requlred to.. sel$¢l suilablg a￿O￿nting pollcies and then apply them conslslgnlly., observe the methods and principles in the Charities SORP., make judg8ments and esllmales Ihal are reasonable and piudenl., slate whether applicable accounting standards have been followed. subject lo any malerlal departures disclosed and explained in the accounts., and prepare the accounts on the golng concern basis unless il Is Inappropriate lo presume that the charity wlll continue in operation. Tlie Truslv(*s are respoiisible lor k¥¢pliiu sulficltri)t aL¢ovT)Ili)y r¥¢ordb Ihat dls¢lose wlll) rvasonable ac¢ura¢y al any Ilme the flnanclal posillon of the CharStable Incorporated OrganSsalSon and enable them lo ensure Ihat the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and th$ provlsions of the trust deed. Th&y are also responslble for safeguarding Ihts assets Of the charity and hence for lakSng reasonable steps for Ihe preventlon and detèctlon of fraud Bnd other irregularilles. The Trustees, report was approved by the BoBrd of Trustees. G Jackson Trustee Dated.. 7 Séptèmber 2021 17- SARABANDE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF SARABANDE Opinion We have audited the consolidated and parent's financial statements of Sarabande Ilhe 'Charilable Incorporated Organisation'l for the year ended 31 De￿mber 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes lo the accounts, including a summary of significant accounting policies. The financi81 reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ir8land (United Kingdom Generally Accepted 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 companls affairs as at 31 De￿mber 2020 and of the group's incoming resources and application of resources, for the year then ended., have been properly prepared in accordan￿ with United Kingdom Generally Accepted Accounting PraCtI￿- and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audrt in accordance with Inlemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalemenls section of our report. We are independent of the Charitable Incorporated Organisalion in accordan￿ with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Stsndard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the aLJdit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Trustees. use of the going concern basis of accounting in the preparation of the financial ststements is appropriate. Based on the work we have performed, w8 have not identified any material unc8rtainlies relating lo ev8nts or conditions that, individually or collectively, may cast significant doubl on the Charitable Incorporated Organisation's ability to continue as a going ¢oncem for a period of at leasl twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concem are described in the relevant sections of this report. Other Informatlon The other information comprises the inform8lion included in the annual report other than the financial slalemenls and OLJr aLJditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial slalemenls or our knowledge obtained in the course of the audit, or otherwise appears to be materially misststed. If we identify such material inconsistencies or apparent material misslalemenls, we are required lo determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misslalemenl of this other information, we are required to report that fact. We have nothing to report in this regard. 18- SARABANDE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SARABANDE Matters on which we are required to report by exception We have nothing to report in respect of the following mallers in relation lo which the Charities IAccounls and Reports) Regulations 2008 require us lo report lo you if, in our opinion.. the information given in the financial ststements is inconsistent in any material respect with the Trustees, report- or sufficient accounting records have not been kept., or the financial statements are not in agreement with the accounting records,. or we have not received all the infomiation and explanations we require for our audit. Responsibilities of Trustees As explained more fully in the Ststement of Trustees, Responsibilities, the Trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of accounts that are free from material misstalemenl. whether due lo fraud or error. In preparing the accounts, the Trustees are responsible for assessing the Charitable Incorporated Organisalion's ability lo wnlinue as a going cOn￿rn, disclosing, as applicable, mallers related lo going concern and using the going concern basis of accounting unless the Trustees either intend to cease operations, or have no realistic alternative but to do so. Audltorfs responslbllltles for the audlt of the flnanclal statements We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made under section 154 of that Act. Our objectives are lo obtain reasonable assuran￿ about whether the financial stslemenls as a whole are free fr()m material misslalemenl, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assuran￿ bul is not a guarantee thal an audit Conducted in accordance with ISAS IUKI will always detect a material misstalemenl when il exists. Misslalemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users tsken on the basis of these financial ststemenls. Irregularities, including fraud, are instances of non-complian￿ with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delect material misslalemenls in respect of irregularities, including fraud. The extent lo which our procedures are capable of detecting irregularities, including fraud, is detailed below. 19- SARABANDE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SARABANDE Extent to which the audit was considered capable of detecting irregularities. including fraud The objectives of our audit, in resped lo fraud, are.. lo identify and assess the risks of material misststement of the financial slalemenls due to fraud,. to obtain sufficient appropriate audit evidence regarding the assessed risks of malerial misslalemenl due lo fraud, through designing and implemenling appropriate responses,. and lo respond appropriately lo fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests wilh both those charged with governance of Ihe entily and its management. Our approach w8s as follows.. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the trustees and other management las required by auditing stsndardsl, and discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations., We considered the legal and regulatory frameworks directly applicable to the financial slalemenls reporting framework IFRS 102 and the Charities Act 20111 and the relevant tsx wmplIan￿ regulations in the UK., We considered the nature of the industry, the control environment and business performance, including the key driver3 for management's remuneration., We communicated identified laws and regulations throughout our team and remained alert to any indications of non-cornpliance throughout the audit., We considered the procedures and controls that the charity has established to address risks identified, or that otherwise prevent, deter and detect fraud., and how senior management monitors those programmes and controls. Based on this understanding we designed our audit prO￿dureS to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit prO￿d￿re$ lo adéress each identified fraud risk. These prO￿dureS included.. testing manual joumals., reviewing the financial statement disclosures and 18sting lo supporting documenlalion,. performing analytical procedures.. and enquiring of management, and were designed to provide reasonable assuran￿ that the financial statements were free from fraud or error. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misststements in the financial stalemenls, even though we have properly planned and performed our audit in a¢¢ordan¢e with auditing standards. For example, the further removed non-complian￿ with laws and regulations lirregularitiesl is from the events and transactions reflected in the financial slatemenls, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater reg8rding ir￿guIantles occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to delecl non-compliance with all laws and regulations. Use ofour report This report is made solely to the Charity's Truslees, as a body, in accordance wilh part 4 of Ihe Charities IAccounls and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate lo the charity's Trustees those matters we are required to state to them in an auditors. report and for no other purpose. To the fullest extent permilled by law, we do not accept or assume responsibility lo anyone other than the ¢harily and the charity's Trustees as a body, for our audit work, for this report, or for the opinions we have formed. TC Group Statutory Auditor Office- London Date: 09 September 2021 TC Group is eligible for appointment as auditor of the Charitable Incorporated Organisation by virtue of ils eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. -20- SARABANDE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 Consolidated SOFA Unrestricted Endowment funds funds Total 2020 Total 2019 Notes Donations, legacies and sponsorships Product sales Income from fundraising and events Investments Other income 1,363,226 102,876 1,363,226 102,876 470,652 9,571 253,711 59,901 32,182 22,418 54,691 22,418 54,691 Total Income and endowments 1,543,211 1,543,211 826,017 Event costs Non charitable trading costs Cost of product sales 2,550 88,945 74,187 2,550 88,945 74,187 108,691 50,663 14,499 165,682 165,682 173,853 Charitable activities 417,442 417,442 550,449 Total axponditura 583,124 583,124 724,302 Net gainslllosses} on investments 14 530,047 530,047 327,270 Net Income for the yearl Net movement in funds 1,490,134 1,490,134 428,985 Fund balances al 1 January 2020 11,920,073 10 11,920,083 11,491,098 Fund balances at 31 December 2020 13,410,207 10 13,410,217 11,920,083 The ststement of financial adivilies includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 21 8ARABANbE STATENENT OF HNANCJAL POSfflON ASAT31 DECEMBER 2020 COm￿.1DAyE Ftsed lnIang￿l0 a53ets ra￿￿bfe?Sstts Inv86tthents 15 46 iy 1.455 2.457,870 9,840.528 4,221 2,475.011 4,089,243 12,2&0,B51 6,fj68,47 19 9,210 93.583 5.475,422 64,763 1.253. a¥h akbankand In hand 1.328.486 5.578.195 CrndStovs: •mo￿￿￿ fallthg du*wlthln ttrne ye8r 1218.099) (228,587) Ngt rjjrrnnl assets 1,110,368 5.351,6ts8 Yolal asse1$ 105$ ￿bIlItIeS 13,470,217 11.920,083 EhdowmeThtffiJnd¥~ gener•1 In￿me fund 10 10 11410207 11,920,073 13.410,217 11.920,Q83 W8Te appmved by the on DSGlkk TTh8tee O Br¥dr￿￿ Tru&ts Thist49 SARABANDE STATEMENT OF FINANCIAL POSITION (CONTINUED} ASAT31 OECEM8ER2020 2019 COMPANYONLY Flxed ?#s Inlanglbte asset8 Tanglble 8&8el8 Investment8 15 18 17 1.243 2.457.870 9,84D,628 4,221 2,475,011 4.089,243 12,299.641 8,5e8,475 ciimntagsets Stocks Dbbt Cash al ar￿ in horrfl 9,210 347,251 5,216,804 375,724 893.21k4 1368,927 5,573.265 Cyodltor*' •nwntsfalllng du• wSthln year 21 114F.51SI (221.6S7) Net curyent as88t 1,122,111 5,381,808 rotwl ¥s¥gts ewYr•nt IlaknAIt 13,422.092 11,g20.OB3 ¢apllèt lund$ Endowmeht f&tyKI?. gener 10 lo Un￿1rf￿tEd lunds 13,422,042 11,920.073 13.422.052 11,920,003 counts approv￿ by IheTnJ D S Gll¢k TnJ8ta8 D 8[a￿￿E1d Tr￿￿0 Tru¥tQg 23- SARABANDE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 2020 2019 Notes Cash flows from operating activities Cash generated from operations 29 1,513.302 419,145 Investing activilies Purchase of intangible assets Purchase of tangible fixed assets Investments - nel movement Investment income (220) 15,843) 15,751,283> 22,418 12,6561 1359,3301 59,901 Not cash used in invosting activities 15,734.9281 1302,0851 Net cash used In financlng actlvltles Net (decrease}lincrease in cash and cash equivalents 14,221,626) 117,060 Cash and cash equivalents at beginning of year 5,475,422 5,358,362 Cash and cash equivalents at end of year 1,253,796 5,475,422 -24- SARABANDE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies Charity information Sarabande is a Charitable Incorporated Organisalion registered in England and Wales. The registered address is 22 Hertford Road, Haggerston, London, N1 SSH. 1.1 Accounting convention The accounts have been prepared in accordance with the Charitable IncorFX)raled Organisalion's conslilulion, th8 Charili&s Act 2011 and "Accounting and Reporting by Charities.. Ststement of Recommended Practi￿ applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" las amended for acwunting periods commencing from 1 January 20161. The Charitable Incorporated Organisalion is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the Charitable Incorporated Organisalion. Monetary amounts in these financial statements are rounded lo the nearest £. The financial ststements have been prepared under the historical cost convention. modified lo include the revaluation of certain financial instruments al fair value. The principal accounting policies adopted are sel out below. 1.2 Golng concern At the lime of approving Ihe financial stslemenls, the Trustees have a reasonable expe¢lalion Ihal the Charitable Incorporated Organisalion has adequate resources to continue in operational existen￿ for the foreseeable future. Thus the Trustees Continue to adopt the going ¢on¢em basis of accounting in preparing the financial slalemenls. In Teaching this ¢onclusion that il remains appropriate lo adopt the going concern basis of accounting, the Trustees have taken into account realistic and prudent projections of the impact of COVID-19 on the financial position. This impact is likely lo include a level of overhead cost that is higher than would otherwise have been anticipated, and more significantly, a reduction in the level of sponsorship, donations and other sources of incoming funds over the short and medium term. Nonetheless, the charity and its subsidiaries continue lo maintain a substsnlial level of cash and other realisable investments, coupled with only a very modest level of committed expenditures. In the opinion of the Trustees, these factors are sufficient lo ensure that the charity will retain sufficient sources of funding to support operations for the foreseeable future. 1.3 Charltable funds Unrestricted funds are available for use al the discretion of the Trustees in furtherance of their Charitable objectives. Endowment funds are subjecl to specific conditions by donors that the capitsl must be maintained by the Charitable Incorporated Organisation. 1.4 Incoming resources Income is recognised when the Charitable Incorporated Organisation is legally entitled to it after any performance conditions have been met, the amounts can be meaSU￿d ￿lIablY, and il is probable that income will be received. Cash donations are recognised on receipl. Other donations are r8cognised once the Charitable Incorporated Organisalion has been notified of the donation, unless performan￿ conditions require deferral of the amount. -25- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies (Continued) Legacies are recognised on receipt or otherwise if the Charitable Incorporated Organisation has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is Irealed as a contingent asset. Sarabande is the residuary legatee of the late Lee Alexander McQueen's estate, which al 31 December 2020 was still in the process of being administered. £1,000,000 12019.. £40,626) has been recognised during the period. The value of further assets that will be re￿iVed from the Estate cannot be eskn'mated with reasonable certainty. 1.5 Resources expended Resources expended are recognised in the period in which they are incurred and accounted for on an accruals basis. Governan￿ Costs are those incurred in wnnection with administration of the charity and ¢omplian¢e with constitutional and ststutory requirements, including legal, audit fees and the costs of board meetings. Where possible costs are 8llocaled directly to the a¢livities to which they relate. Support Costs are allocated between charitable activities based on the apportionment of direct costs. Grant expenditure is recognised when commilled. 1.6 Intangible fixed assets other than goodwill Intangible assets acquired separately from a business are recognised at cost and are subsequently measured al cost less accumulated amortisation and accumulated impairment losses. Intsngible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset Can be measured reliably,. the intangible asset arises from contractual or other legal rights,. and the intangible asset is separable from the entity. Amortisalion is recognised so as lo write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Trademarks 20010 Straight line basis 1.7 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calcLJlated to write off the ¢ost less eslimaled residu81 value of each asset over ils expected useful life. Land and buildings Plant and machinery Fixtures, fittings & equipment 250 years straight line over the term of the lease 25010 Straight line basis 25,/0 Straight line basis The gain or loss arising on the disposal of an asset is determined as the differen￿ bebNeen the sale proceeds and the carrying value of the asset, and is recognised in nel incomellexpendilurel for the year. -26- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies (Continued) 1.8 Fixed asset investments Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured al fair value at each reporting dale. Changes in fair value are recognised in nel incomellexpenditurel for the year. Transaction costs are expensed as incurred. A subsidiary is an entity controlled by the Charitable Incorporated Organisalion. Control is the power to govem the financial and operating policies of the entity so as lo obtsin benefits from ils activits'es. Fixed asset investments are stated at market value. 1.9 Impairment of fixed assets At each reporting end date, the Charitable Incorporated Organisation reviews the carrying amounts of its tsngible and intsngible assets lo delemine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to delemine the extent of the impairment loss lif any}. Recoverable amount is th8 higher of fair valu8 less costs lo sell and value in use. In assessing value in use, the estimated futu￿ cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessmenis of the lime value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of sn asset is estimated lo be less than ils carrying amount, the carrying amount of the asset is ￿dUCed to its recoverable amount. An impairment loss is recognised immediately in incomel lexpenditurel for the year, unless the relevant asset is carried al a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have Ceased lo apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased lo the revised estimate of ils recoverable amount, bul so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in al a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. 1.10 Stocks Stocks are slated al the lower of cost and estimated selling Pri￿ less costs lo complete and sell. Cost comprises direct materials and. where applicable, direct labour costs and those overheads Ihat have been incurred in bringing the stocks to their present location and condition. Items held for distribution al no or nominal Consideration are measured the lower of repla￿ment Cost and cost. Nel realisable value is the eslimaled selling pri￿ less all eslimaled costs of completion and costs to be incurred in marketing, selling and dislribulion. 1.11 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held al call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. -27- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies (Continued) 1.12 Financial instruments The Charitable Incorporated Organisation has elected to apply the provisions of Section 11 'Basic Financial Inslrumenls, and Section 12 '01her Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are re￿nised in the Charitable Incorporated Organisalion's balance sheet when the Charitable Incorporated Organisalion becomes paty to the conlraclual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial slalements, when there is a legally enforceable right lo set off the recognised amounts and there is an intention lo settle on a nel basis or lo realise the asset and sellle the liability simultaneously. Ba$1¢ financial asset$ Basic financial assets, which include debtors and cash and bank balances, are initially measured al transa¢lion price including transaction costs and are subsequenuy Carried at amortised cost using the effective interest method unless the arrangement constilules a financing Iransaclion. where the transaction is measured at the present value of the future receipts discounted at a market rale of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors are initially recognised al transaction price unless the arrangement constilules a financing transaction, where the debt instrument is measured al the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations lo pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-curr8nt liabilities. Trade creditors are recognised initially at transaction price and subsequently measured al amortised cost using the effective Interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the Charitsble Incorporated Organisalion's contractual obligations expire or are discharged or cancelled. 1.13 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are re￿ived. Temiination benefits are re¢ognised immediately as an expense when the Charitable Inwrporated Organisalion is demonstrably committed lo terminate the employment of an employee or to provide termination benefits. 1.14 Retiremenl benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. -28- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accounting policies (Continued) 1.15 Basis of consolidation The financial statements consolidate the results of Sarabande and its wholly-owned subsidiaries Suture Inc Limited and Sarabande Trading Limited on a line by line b8SIS. A separate slalemenl of the financial activities and Income and Expenditure accounts are not presented for the charity itself following the exemptions permitted by paragraph 397 of the SORP. The lolal incoming resources for the charity for the year ended 31 De￿mber 2020 was £1,501,969 12019.. £566,229) with positive movements in funds being £1,490,13412019.. £332,836). Critical accounting estimates and judgements In the application of the Charitable Incorporated Organisalion's accounting policies, the Trustees are required lo make judgements, estimates and 8ssumptions about the carrying amount of assets and liabilities that are not readily apparent from other SoUr￿s. The estimates and associated assumptions are based on historical experience and other factors that a￿ considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Donations. legacies and sponsorships 2020 2019 Donations Legacies receivable Sponsorship 221.226 1.000,000 142,000 280,026 40,626 150,000 1,363,226 470,652 Product sales 2020 2019 Product sales 102,876 9,571 102,876 9,571 -29- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Income from fundraising and events 2020 2019 Ticketed sales Other events Fundraising event 19,822 6,205 227,684 253,711 Investment income Unrestrlcted funds Totsl 2020 2019 Interest and other investment income 22,418 59,901 Other Income 2020 2019 Advertising Rental income Other income 30,490 16,635 7,566 8,600 19,582 4,000 54,691 32,182 Other costs 2020 2019 Event costs Non - charitable trading costs Cost of Product sales 2,550 88,945 74,187 108,691 50,663 14,499 165,682 173,853 30- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Charitable activities Scholarships Subsidised Events and Studios Workshops Total 2020 Total 2019 Support costs Staff costs Deprecialion Premises expenses Accounting and professional fees offi￿ running costs Travel and events Bank charges and exchange movement 10,909 1,298 2,818 54,110 43,636 12,981 45,065 54,110 15,005 54.545 11,683 8,450 27,054 6,430 3,476 109,090 25,962 56,333 135,274 21,435 6,951 66,292 52,891 82,122 187,610 19,976 14,549 3,475 17131 {7131 17141 12,1401 186 71,897 170,084 110,924 352,905 423,626 Grant funding of activities (see note 10) 64,537 64,537 126,823 136,018 174,241 107,183 417,442 550,449 Analysed by fund Unrestricted funds 136,018 165,927 107,183 417,442 136,018 174,241 107,183 417,442 For the yearended 31 December 2019 Unrestricted funds 232,844 197,785 119,820 550,449 232,844 197,785 119,820 550,449 31 SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 10 Grants payable 2020 2019 Grants to institutions.. University of the Arts London Manchester Metropolitan University Loughborough University Central Saint Martins Northumbria University Slade School of Fine Art 8,640 9,500 18,000 34,450 10,083 46,150 65,355 18181 64,537 126,823 In 2020 courses of study for students supported by the Charity at the Slade School of Fine Art were generally deferred for a year because of the impact of the COVID-19 pandemic. As a consequence, the associated financial support from the Charity has likewise been deferred into 2021. 11 Auditor's remuneration In the year ended 31 December 2020 the auditors fees were £10,43312019.' £9,627). 12 Trustees None of the Trustees have been paid any remuneration or received any other benefits from an employment with the charity or a related entity. In respect of payments to related parties. please see Note 26. During the year expenses were reimbursed to the Trustees amounting to £91412019.. £1,304) in respect of Iravelling, subsistence, ststionery and subscription expenses. 32- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 13 Employees Number ofemployees The average monthly number of employees during the year was.. 2020 Numbor 2019 Number Adminislralion Employment costs 2020 2019 Wages and salaries Social security costs Other pension costs 117,567 8,800 1,974 71,757 3,660 2,573 128,341 77,990 There were no employees whose annual remuneration was £60,000 or more. 14 Net gainslllosses) on investments Totsl Totsl 2020 2019 Unrealised gainslllossesl on investments Realised Ilossesygains on investments 561,883 131,8361 308,101 25,970 530,047 334,071 Other costs- investment management fee 16,8011 530,047 327,270 33- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 15 Intangible fixed assets Group Trademarks Cost At 1 January 2020 Additions 20,072 220 At 31 December2020 20,292 Amortisation and impairment Al 1 January 2020 Amortisalion charged for th8 year 15,851 2.986 At 31 December 2020 18,837 Carrying amount At 31 December 2020 1,455 At 31 December 2019 4,221 Intangible fixed assèts Parent Tradèmarks Cost At 1 January 2020 and 31 December 2020 20,072 Amortisation and impairment At 1 January 2020 Amortisalion charged for the year 15,851 2,978 At 31 December 2020 18,829 Carrylng amount At 31 December 2020 1,243 At 31 December2019 4,221 34- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 16 Tangible fixed assets Group and Parent Land anil buildings Plant and machinery Fixtures. fittings & equipment Total Cost At 1 January 2020 Additions 2,494,406 15,977 2,704 164,093 3,139 2,674,476 5,843 At 31 December2020 2,494,406 18,681 167,232 2,680,319 Depreciation and impairment At 1 January 2020 Depreciation Charged in the year 42,398 9,978 14,762 1,629 142,305 11,377 199,465 22,984 At 31 December 2020 52,376 16,391 153,682 222,449 Carrying amount At 31 December2020 2,442,030 2,290 13,550 2,457,870 At 31 December 2019 2,452,008 1.215 21,788 2,475,011 35- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 17 Fixed asset investments Group and Parent Listed Unlisted investments investments Cash in portfolio Totsl Cost or valuation At 1 January 2020 las restated) Additions Disposals Valuation changes Transfers Other movements 3,570,971 4,462,122 1514,8691 530.047 30,434 8,583 1,000,000 509,689 4,089,243 5,462,122 1514.8691 530,047 130,434) 273,985 273,985 At 31 December2020 8,078,705 1,008,583 753,240 9,840,528 Carrying amount At 31 December 2020 8.078,705 1,008,583 753,240 9.840,528 At 31 De¢ember 2019 las ￿Stated) 3,570,971 8,583 509,689 4,089,243 The Unlisted Investments addition of £1,000,000 represents the valuation of an art collection bequested from the Eslale of the late Lee Alexander McQueen. Other movements lof cashl represent cash paid into the investment portfolio bul not yet invested into securities. Parent Investment in subsidiaries Cost At 1 January 2020 Movement Carrylng amount At 31 December 2020 At 31 December2019 36- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 18 Subsidiaries The company holds more than 20 /0 of the share capital of the following companies.. Details of the Charitable Incorporated Organisalion's subsidiaries at 31 December 2020 are as follows.. Name of undertaking Registered office Nature of business Class of °A Held shares held Direct Suture Inc Limited Sarabande Trading Limited United Kingdom Trading Company United Kingdom Trading Company Ordinary Ordinary 100.00 100.00 The aggregate capital and reserves and the result for the year of subsidiaries included in the consolidation were as follows.. Name of undertaking ProfiVILossl Capital and Reserves Suture Inc Limited Sarabande Trading Limited {11,8361 111,8351 19 Stocks Group 2020 2019 Finished goods and goods for resale 9,906 9,210 Stocks Parent 2020 2019 Finished goods and goods for resale 9,210 20 Debtors 2020 2019 Group Amounts falling due within one year: Trade debtors Olher debtors and accrued income Prepayments 44,044 16,847 3,872 85,484 3,974 4,105 64,763 93,563 37- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 20 Debtors (Continued) 2020 2019 Parent Amounts falllng due wlthln one year: Trade debtors Amounts due from subsidiary undertakings Other debtors and accrued income Prepayments 18,000 337,005 16,847 3,872 73,801 265,371 3,974 4,105 375,724 347,251 21 Creditors.. amounts falling due within one year Group 2020 2019 Other tsxation and social security Trade creditors Other creditors and deferred income Accruals 86,896 9,910 58,416 62,877 56,555 40,889 62,797 66,346 218,099 226,587 Parent 2020 2019 other taxation and social security Trade creditors Other creditors and deferred income Accruals 71,518 3,301 30,531 41,166 56,555 40,889 60,027 64,186 146,516 221,657 22 Retiremenl benefit $cheme$ The Charitable Incorporated Organisalion operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charitable Incorporated Organisalion in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £1,97412019.. £2,573). 38- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 23 Endowment tunds Endowment funds represent assets which musl be held permanently by the Charitable Incorporated Organisalion. Income arising on the endowment funds can be used in accordan￿ with the objects of the Charitable Incorporated Organisation and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund. Movement in funds Balance at 1 Incoming Resources Balance at 31 January resources expended December 2020 2020 Permanent endowments Original settlement 10 10 39- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 24 Analysis ot net assets between funds Group Unrestricted Endowment funds funds Total Fund balances al 31 December 2020 are represented by.. Intangible fixed assets Tangible assets Investments Current asselsllliabililiesl 1,455 2,457,870 9,840,526 1,110,356 1,455 2,457,870 9,840,526 1,110,366 10 13,410,207 10 13,410,217 Group Unrestricted Endowment funds frjnds Total Fund balances al 31 De￿mber 2019 are represented by.. Intangible fixed assets Tangible assets Investments Current asselsllliabililiesl 4,221 2,475,011 4,089,243 5,351,598 4,221 2,475,011 4,089,243 5,351,608 10 11,920,073 10 11,920,083 Parent Unrestricted Endowment funds funds Total Fund balances al 31 December 2020 are represented by.. Intangible fixed assets Tangible assets Investments Current asselsllliabililiesl 1,243 2,457,870 9,840,528 1,122,401 1,243 2,457,870 9,840,528 1,122,411 10 13,422,1)42 10 13,422,052 Parent Unrestricted Endowment funds funds Total Fund balances at 31 December 2019 are represented by.. Intangible fixed assets Tangible assets Investments Current asselsllliabililiesl 4,221 2,475,011 4,089,243 5,351,598 4,221 2,475,011 4,089,243 5,351,608 10 11,920,073 10 11,920,083 -40- SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 25 Related party transactions During the year consultancy fees of £88,50012019'. £131,500) was paid to Verkade Consulting Limited in respect of consultancy services relating lo business planning, operational structure and policies and procedures provided to the charity, pursuant lo a consultancy agreement between the charity and the company. Trino Verkade was a Iruslee of the charity vnlil 30 September 2020 and the sole director and shareholder of Verkade Consulting Limited. During the year a loan of £16,832 was made lo the Lee Alexander McQueen Healhfield Trust I'the TrusV'I. At the time the loan was made, Sarabande and the Trust had certain trustees in common. SubseqLJenUy the trustees of the Trust resigned in favour of sutu￿ Inc Limited, a wholly owned subsidiary of Sarabande. The loan is repayable on the sale of a property. 26 Commitmants At the year end the Charity had committed {either wntractually or by promises) to fund scholarships totslling £642,240 12019.. £139,000). The increase reflects an increased willingness to commit for longer periods. The indicated liming of these scholarships commitments is as follows.. within one year £155,710 one to two years £131,560 two lo five years £326,970 over five years £ 28,000 These timings may nonetheless be varied by mutual consent, as for instsnce was the case in 2020 when the Slade School of Fine Art decided to defer all courses of study by one year be￿uSe of Ihe pandemic. It was then agreed between Slade and the Charity that scholarship funding should likewise be deferred by one year. There are no other material Commitments. 27 Control There is no ultimate controlling party. 28 Conllngent Ilabllltles The Charity has submitted a claim to HMRC for repayment of net amounts of VAT relating lo the acquisition and subsequent building work on the Charity's premises at 22, Hertford Road, London N1 SSH. This claim has not lo dale been accepted by HMRC and is the subject of ongoing discussion. No recovery of this claim, either in part or in whole, has been anlicipaled in the financial stalemenls. The Trustees believe that it is not currently possible to predict the eventual outcome. In the event of an Unsu¢￿$$fUl outcome, ￿rtain ¢os15 might be incurred bul in the opinion of the Trustees these would be unlikely to be of a material amount. 41 SARABANDE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 29 Cash generated from operations 2020 2019 Surplus for the year 1,490,134 428,985 Adjustments for.. Investment income recognised in slalemenl of financial activities Amortisalion and impairment of intangible assets Depreciation and impairment of tangible fixed assets 122,4181 2.986 22.984 159,9011 4,014 48,876 Movements in working capital.. Ilncreasel in stocks Decreasellincreasel in debtors (Decreasellincrease in creditors 16961 28,800 18.4881 19,2101 171,6691 78,050 Cash generated from operations 1,513.302 419,145 30 Analysis of Changes in net funds The Charitsble Incorporated Organisation had no debt during the year. -42-