Interim Spaces Cio
REPORT AND FINANCIAL STATEMENTS
31st March 2023
CHARITY REGISTRATION NUMBER 1165694
Frank S Lachman 16b North End Road Golders Green London NW11 7PH
Interim Spaces Cio
Legal and Administrative Information
31st March 2023
Registered Charity Number 1165694 Registered Office 41 Whitcomb Street London WC2H 7DT Directors and Trustees Marcus Warry Rachel Fletcher Resigned 19th July 2022 Joshua Neicho Natalie Scott Examiner Frank S Lachman Chartered Accountant 16B North End Road London NW11 7PH
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Interim Spaces Cio
DIRECTORS' AND TRUSTEES' REPORT
The trustees, who are also directors for the purposes of the Companies Act, have pleasure in presenting their report and the financial statements of charity for the year ending 31st March 2023.
DIRECTORS' RESPONSIBILITIES
Company Law which is also applicable to charitable companies in England and Wales requires the directors, who are also trustees of the company, to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the results of the company for that period.
In preparing those financial statements, the directors/trustees are required to:
select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP make judgements and estimates that are reasonable and prudent
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors/trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PRINCIPAL ACTIVITY AND CHARITABLE OBJECTIVE
The charity provides low cost work and development space for artists, entrepreneurs, non-profit and creative organisations.Establishing creative hubs and facilitating learning and networking.
ORGANISATION AND CONSTITUTION
CIO - Foundation Registered 23 Feb 2016
The company is limited by guarantee and has no share capital. The guarantees of individual members are limited to £1.
The company is a registered charity, number 1165694.
The directors of the company form its Committee of Management and Governing Body and are empowered to act as necessary in order for the company to fulfil its objectives. Directors may be appointed by the members of the company or fellow directors at any time.
Registered Office: 41 Whitcomb Street, London WC2H 7DT
PUBLIC BENEFIT
The Trustees confirm that in compiling this report they have had due regard to the guidance on public benefit issued by the Charity Commission in compliance with the duty set out in section 4 of the Charities Act 2006.
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Interim Spaces CIO
REVIEW OF DEVELOPMENTS, ACTIVITIES AND ACHIEVEMENTS
Summary
During the period March 2022 to March 2023, the charity provided affordable work and development space to 128 members across its projects. The charity continued into its fourth year operating its affordable workspace project PopHub Leicester Square on Whitcomb Street, and brought to a close Church Street Studios which operated as a low-cost artist studio facility off Edgware Road. During the period the charity also began preparing for its first regional project outside of London, applying for funding to buy and renovate 10 Market Place in the historic town of Shepton Mallet, Somerset, for use as a retail incubator, affordable hire space, and the charity’s West Country headquarters.
Church Street Studios
Church Street Studios at 382-386 Edgware Road, which was leased to us by Westminster City Council and which operated between April 2021 to January 2023, was forced to close following consultation with the users of the space due to significant increases (around 400%) in energy costs brought on largely by the Ukraine/Russia war. Church Street demonstrated to the charity that low-cost space must be subsidised by higher rate tiers of hire in order to ringfence against unpredictable changes in market forces such as seismic fluctuations in energy costs, a particular risk in the current climate given escalating international conflicts.
The project was a considerable success during its operation, and since its closure most of its former eight members have taken up studios with other providers.
PopHub Leicester Square
Having successfully navigated the covid pandemic, PopHub emerged into 2022 having preserved its member base and with its businesses resuming growth.
The PopHub workspace comprises desk-based membership plans on Floor 1, and allocations of studio spaces on Floor 2. Situated on Floor 1 is the reception lobby for the premises, two meeting rooms and a fully equipped AV Studio, all of which can be booked at no cost for up to three hours a day by PopHub members. The facility also comprises a workshop, print room, staff offices and a large studio (Studio 1) which has become very popular as a low-cost facility for rehearsal and casting hires, workshops and classes, wellbeing, and other creative and professional development activities.
The focus of the PopHub model is to provide, as part of the charity’s activities, truly affordable and flexible workspace to freelancers, micro-businesses, social enterprises, charities and other such creative people and organisations who would otherwise have no other option than to work from home or unsuitable or unsafe premises that could hinder or halt their work, as a result of the significant absence of general market workspace plans that are truly flexible and affordable.
Over the period, there were a total of 120 memberships of which 44% were studio based and 56% were desk based. Of the total memberships, 10 were UNLTD Plan Work Exchange plans, providing Front Desk staffing and some general help in exchange for unlimited use of the desks, and one studio member on the exchange plan. In total, 26,194 check-in hours were registered during the period – equivalent to around 3,400 working days, and approximately 2,500 visitors, 1,204 of whom were registered visitors.
The charity offers up to four Sponsored UNLTD Plans (Unlimited hotdesking on the first floor coworking section) to groups or individuals it determines are in particular need and/or are non-profit ventures that focus on activities aligned with the charity’s objects. Four memberships were the sponsored over the period and included ShowerBox, a CIC startup providing homeless people with free and secure shower space and Nyheke Lambert, an entrepreneur in fashion and textile design.
Three of the many positive feedback responses gained via the biannual surveys between 2022-2023:
“Being at PopHub has had an enormous impact on my productivity and given me a real sense of purpose, direction, community, stability, and optimism” – David Worswick, The Violin School
“I totally value and cherish this space, it has everything I need - my business as a milliner is growing as a result of being in central London.” – Sahar Freemantle, owner, Sahar Millinery
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“PopHub provides a fantastic community and location for creatives in an otherwise unaffordable area. Studio/rehearsal/workshop spaces are an overlooked yet vital part of the urban ecology and should be integral to an area with high numbers of galleries, theatres and shops. Interim Spaces is one of the few organisations providing truly affordable workspace in the centre of London and I hope it continues to get the support it needs to do so” – Georgia de Grey, Theatre set designer
10 Market Place
In September 2022, the charity began a conversation with the landlord of several buildings in the centre of Shepton Mallet, Somerset – a rural town well-connected to other towns and cities in the region and with a growing population of artists, makers, creatives and small businesses. The surge in living costs, particularly rent, in larger cities such as London and Bristol, but also affecting other regional locales such as Frome and Wells, appears to be resulting in migration to areas typical to Shepton Mallet, aided by improvements in technology, a shift towards hybrid and remote working, and a desire for community and higher living standards.
The landlord expressed interest in selling 10 Market Place to the charity – a historic building in the town centre which was falling into dereliction and untenanted for around two years. Following this conversation, the charity began a period of research and consultation which resulted in applications being made to the Community Ownership Fund and the Somerset Community Foundation for £264,000 to buy and renovate 10 Market Place and fund the first year of operations as a retail incubator and hire space, comprising a £120,000 capital grant and £24,000 revenue grant from the Community Ownership Fund, match-funded by £120,000 from the Somerset Community Foundation split into a £40,000 grant and an £80,000 loan, repayable over a five year term.
The objective of the charity is to transform the property into a retail incubator offering rent/bill free use of the retail unit on three-month licences, up to a maximum of nine months, supported with a £1,500 capital grant and mentorship; and a second floor space hired at low or no cost to local facilitators to programme in regular classes in music and wellbeing.
Social Impact Reporting
The charity publishes an in-depth Social Impact Report every April for the previous calendar year, which include case studies, site maps and graphically presented statistical data. The reports are available upon request.
Advisory Board
Adrian Judge a chartered surveyor joined in July 2021, and Paul Whalan, former Head of Estates at Soho Estates, joined in November 2021.
ACCOUNTANTS
A resolution proposing the re-appointment of Frank S Lachman as Independant Examiner will be submitted at the Annual General Meeting.
DIRECTORS/TRUSTEES
The directors/trustees set out below have held office during the whole year of this report unless otherwise stated:
Joshua Neicho Marcus Warry Natalie Scott Rachel Fletcher Resigned 19th July 2022
RESERVES POLICY
The company endeavours to maintain a level of reserves that will enable it, if the situation arises that funding is curtailed, to carry on its activities whilst alternative sources of funding are obtained. The unrestricted reserves as at 31st March 2023 were £25,250 surplus ( 2022 £20,589) The movement in reserves is shown in note 8 to the accounts.
RELATED PARTIES
The charity has relationships with other charities on a project-by-project basis.
The charity owns 100% of it's trading subsidiary Interim Spaces Trading Limited.
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GOING CONCERN
The directors confirm that:
A going concern basis is appropriate for these accounts.
The company has sufficient reserves to continue for at least 12 months after the date of signing these accounts.
RISK MANAGEMENT
The company undertakes periodic reviews for different areas of risk including insurance cover,health and safety policies in the workplace and whilst performing, working with young children,financial affairs; personnel practices; ICT technology.
This report has been prepared in accordance with the provisions in Section 419(2) of the Companies Act 2006 applicable to companies subject to the small companies regime.
This report was approved by the board on
and signed on its behalf by Marcus Warry
18/01/2024
Trustee
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ACCOUNTANTS REPORT
Independent Examiner's Report on the Accounts
I report to the charity trustees on my examination of the accounts of the company for the year ended 31st March 2023 which are set out on pages 7 to 12 .
Responsibilities and basis of report
As the charity’s trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (the ‘2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's report
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
(1) accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
(2) the accounts do not accord with those accounting records; or
(3) the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination; or
(4) the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Frank S Lachman FCA Member Institute of Chartered Accountants in England and Wales Chartered Accountant Independent Examiner
16b North End Road London NW11 7PH Dated:
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Statement of Financial Activities For the Year Ended 31st March 2023
| Unrestricted | Total | Unrestricted | Total | ||
|---|---|---|---|---|---|
| Funds | Funds | Funds | Funds | ||
| Notes | 2023 | 2022 | |||
| Income from: | |||||
| Donations and Legacies | 2 | - | - | 30,000 | 30,000 |
| Charitable activities | 3 | 105,263 | 105,263 | 89,798 | 89,798 |
| Total income | 105,263 | 105,263 | 119,798 | 119,798 | |
| Expenditure on: | |||||
| Charitable Activity Costs | 4 | 100,602 | 100,602 | 108,926 | 108,926 |
| Total expenditure | 100,602 | 100,602 | 108,926 | 108,926 | |
| Net income for year | 4,661 | 4,661 | 10,872 | 10,872 | |
| Funds brought forward | 20,589 | 20,589 | 9,717 | 9,717 | |
| Funds carried forward | 9 | 25,250 | 25,250 | 20,589 | 20,589 |
The statement of Financial Activities reflects the results of continuing activities for the year. There were no recognised gains or losses other than the net outgoing resources for the year. The net outgoing resources for the year have been calculated on the historical cost basis. The notes on pages 9 to 12 form part of these accounts.
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Interim Spaces Cio Balance Sheet at 31st March 2023
| Notes 2023 2022 £ £ £ £ Fixed assets Investment in subsidiary 1 1 Office equipment 5 10,383 14,406 Current assets Debtors 6 1,650 1,300 Cash at bank and in hand 13,216 14,718 Total current assets 14,866 16,018 Creditors falling due within one year 7 - 1,440 Net current assets 14,866 14,578 Creditors falling due after one year 8 - 8,396 Net assets 25,250 20,589 The Funds of the Charity Unrestricted Funds 10 25,250 20,589 Total Charity Funds 25,250 20,589 |
Notes 2023 2022 £ £ £ £ Fixed assets Investment in subsidiary 1 1 Office equipment 5 10,383 14,406 Current assets Debtors 6 1,650 1,300 Cash at bank and in hand 13,216 14,718 Total current assets 14,866 16,018 Creditors falling due within one year 7 - 1,440 Net current assets 14,866 14,578 Creditors falling due after one year 8 - 8,396 Net assets 25,250 20,589 The Funds of the Charity Unrestricted Funds 10 25,250 20,589 Total Charity Funds 25,250 20,589 |
Notes 2023 2022 £ £ £ £ Fixed assets Investment in subsidiary 1 1 Office equipment 5 10,383 14,406 Current assets Debtors 6 1,650 1,300 Cash at bank and in hand 13,216 14,718 Total current assets 14,866 16,018 Creditors falling due within one year 7 - 1,440 Net current assets 14,866 14,578 Creditors falling due after one year 8 - 8,396 Net assets 25,250 20,589 The Funds of the Charity Unrestricted Funds 10 25,250 20,589 Total Charity Funds 25,250 20,589 |
Notes 2023 2022 £ £ £ £ Fixed assets Investment in subsidiary 1 1 Office equipment 5 10,383 14,406 Current assets Debtors 6 1,650 1,300 Cash at bank and in hand 13,216 14,718 Total current assets 14,866 16,018 Creditors falling due within one year 7 - 1,440 Net current assets 14,866 14,578 Creditors falling due after one year 8 - 8,396 Net assets 25,250 20,589 The Funds of the Charity Unrestricted Funds 10 25,250 20,589 Total Charity Funds 25,250 20,589 |
|---|---|---|---|
| 16,018 1,440 |
|||
| 25,250 | 20,589 | ||
| 25,250 | 20,589 | ||
| 25,250 | 20,589 |
a) For the year ended 31 March 2023 the company was entitled to exemption under section 477(2) of the Companies Act 2006.
(b) No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.
(c) The directors acknowledge their responsibility for:
i. ensuring the company keeps accounting records which comply with section 386; and
ii. preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit and loss for the financial year in accordance with the section 393, and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company.
(d) The accounts have been prepared in accordance with the special provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime, and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the . company
Approved by the directors on
, and signed on their behalf by Marcus Warry
- Trustee
18/01/24
The notes on pages 9 to 12 form part of these accounts.
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Notes to the Financial Statements For the Year Ended 31st March 2023
1 Accounting Polices
(a) The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2022) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Interim Spaces Cio meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
(b) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income from grants, whether capital or revenue grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants has been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
(c) Expenditure
All expenditure is accounted for on an accruals basis. Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. It is probable that settlement will be required and the amount of the obligation can be measured reliably.
Costs are allocated to a category either because such costs are directly incurred in relation to such category, or because they are support costs in respect of which an apportionment has been made between the categories.
Support costs consist of infrastructure costs for salaries, premises, office administration. Such costs are apportioned on a reasonable and consistent basis to the various categories with a view to determining, as accurately as possible, the total resources expended for each category. The basis of apportionment used is either a function of staff time applied to a given activity, or an estimate of the proportion of costs associated with the same, or a combination of both.
Direct and Support costs are separately shown by natural classification in Note 5 to these accounts for each category of cost.
(d) Taxation
The company as a registered charity ( number 1165694 ) is exempt from taxation on most investment income insofar as it is applied for charitable purposes. The company is also exempt from taxation on capital gains.
(e) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
(f) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
(g) Depreciation
The rates of depreciation of asset class are:
Office equipment 20% straight line
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Notes to the Financial Statements For the Year Ended 31st March 2023
| 2 | Donations and legacies | ||||||
|---|---|---|---|---|---|---|---|
| Unrestricted | Unrestricted | ||||||
| Funds | 2023 | Funds | 2022 | ||||
| Grants for General Running Costs | |||||||
| Arts Council England | - | - | 30,000 | 30,000 | |||
| Donations | |||||||
| Interim Spaces Trading Limited | - | - | - | - | |||
| - | - | 30,000 | 30,000 | ||||
| 3 | Charitable activity | ||||||
| Unrestricted | Unrestricted | ||||||
| Funds | 2023 | Funds | 2022 | ||||
| Space hire | 100,313 | 100,313 | 89,798 | 89,798 | |||
| Sundry income and recharges | 4,950 | 4,950 | - | - | |||
| 105,263 | 105,263 | 89,798 | 89,798 | ||||
| 4 | Charitable activity costs | ||||||
| Support | Charitable | Support | |||||
| Costs and | Activity | Costs and | Charitable | Total | |||
| Governance | Costs | Total 2023 | Governance | Activity Costs | 2022 | ||
| Unrestricted | Unrestricted | Unrestricted | Unrestricted | ||||
| Charitable Activity Costs | |||||||
| Advertising & Marketing | 907 | - | 907 | 825 | - | 825 | |
| Audit & Accountancy fees | 1,000 | - | 1,000 | 1,000 | - | 1,000 | |
| Bank Fees | - | 75 | 75 | 32 | - | 32 | |
| Business rates | - | - | - | - | 8,968 | 8,968 | |
| Consumables | - | 1,623 | 1,623 | - | 2,407 | 2,407 | |
| Direct labour | - | 39,767 | 39,767 | - | 34,190 | 34,190 | |
| General Expenses | - | 3,510 | 3,510 | - | 8,950 | 8,950 | |
| Insurance | - | 668 | 668 | - | 532 | 532 | |
| IT Software and Consumables | 363 | - | 363 | 4,452 | - | 4,452 | |
| Light, Power, Heating etc | - | 16,976 | 16,976 | - | 13,210 | 13,210 | |
| Cleaning and waste | - | 6,853 | 6,853 | - | 7,260 | 7,260 | |
| Printing & Stationery | 431 | - | 431 | 395 | - | 395 | |
| Professional services | 4,860 | - | 4,860 | 1,323 | - | 1,323 | |
| Repairs & Maintenance | - | 4,553 | 4,553 | - | 9,054 | 9,054 | |
| Security Software & Infrastructure | - | 4,639 | 4,639 | - | 144 | 144 | |
| Subscriptions & memberships | 1,911 | - | 1,911 | 2,568 | - | 2,568 | |
| Telephone & Internet | 3,632 | - | 3,632 | 3,110 | - | 3,110 | |
| Travel - National | 2,770 | - | 2,770 | 3,904 | - | 3,904 | |
| Volunteer Expense | 1,484 | - | 1,484 | 2,161 | - | 2,161 | |
| Depreciation | 4,580 | - | 4,580 | 4,441 | - | 4,441 | |
| Total | 21,938 | 78,664 | 100,602 | 24,211 | 84,715 | 108,926 |
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Notes to the Financial Statements For the Year Ended 31st March 2023
5 Fixed Assets
| 5 Fixed Assets | ||
|---|---|---|
| Cost As at 1st April 2022 Additions in year As at 31.3.2023 Depreciation As at 1st April 2022 Charge for year As at 31.3.2023 Net Book Value 31st March 2023 31st March 2022 6 Debtors Loan to Subsidiary company 7 Creditors due within one year Accruals Bank loan 8 Creditors falling due after one year Bank Loan 9 Reconciliation of movement of funds The above funds comprise: Unrestricted Funds |
Funds at 1st April 2022 20,589 |
Fixtures Fittings & Office Equipment 22,343 557 22,900 7,937 4,580 12,517 14,406 10,383 2023 2022 1,650 1,300 1,650 1,300 2023 2022 - - - 1,440 - 1,440 2023 2022 - 8,396 - 8,396 Income Expenses Funds at 31st March 2023 105,263 100,602 25,250 |
| 20,589 | 105,263 100,602 25,250 |
|
General Fund: are moneys which can be used by the Trustees at their discretion for any purpose and which have not been designated by them previously
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Notes to the Financial Statements For the Year Ended 31st March 2023
10 Analasys of assets over funds
| Unrestricted Funds: | Fixed Assets Net Assets Total 2023 Total 2022 10,384 14,866 25,250 20,589 |
|---|---|
| 10,384 14,866 25,250 20,589 |
11 Trustees
During the year, none of the trustees received any remuneration from the trust and no expenses were reimbursed to any of them.
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