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2023-03-31-accounts

Company No. 10175326 Charity No. 1169506

THE BOMB FACTORY ART FOUNDATION LTD (Company Limited by Guarantee without Share Capital)

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st MARCH 2023

THE BOMB FACTORY ART FOUNDATION LTD TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Table of Contents

Trustees’ Annual Report……………………………………………….2-14 Independent Examiner’s Report………………………………………..15 Statement of Financial Activities……………………………………….16 Balance Sheet………………………………………………………………17 Notes to the Financial Statements………………………………….18-29

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report together with the financial statements of the charity for the year ended 31st March 2023 and which have been prepared to also meet the requirements for a directors’ report and accounts for Companies Act purposes and have also been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Chair’s Report

During the 2022 to 2023 reporting year, The Bomb Factory Art Foundation Ltd (TBFAF or the Bomb Factory) consolidated and expanded its reach and charitable aims, following a further period of rapid growth that started at the end of the pandemic. Our operational model has substantially changed and our new ‘normal’ is now fully geared to the utilisation of "Meanwhile” spaces. This use of the empty buildings that now proliferate in London has many benefits for our organisation, as well as the artists we support, and the surrounding communities that we serve. Although this is a fairly new way of working for the charity, we have fully realised the potential of this model which has enabled us to thrive and grow during a period of national economic uncertainty.

With the addition of three new spaces across central London - Covent Garden, Marylebone, and Holborn - we have added three highly visible galleries to our portfolio and doubled the number of studio artists we support. This expansion in turn has enabled us to deliver a much improved and more diverse education and exhibition programme, strengthened our public engagement, and further allowed us to fulfil and deliver our core mission.

Thanks to our increased financial resources and careful budgetary management, we have been able to take on new key staff, thus creating a solid team to facilitate and grow the organisation, with the common goal of making the Bomb Factory an established community arts hub that delivers high-quality exhibitions, inclusive and worthwhile educational events and a supportive environment for its resident artists.

This growth in community engagement can be seen in our data and statistics which show that we doubled our public exhibitions from the previous year from 11 to 22. These included some memorable highlights, most notably in our new flagship gallery in Marylebone, including those that dealt with challenging issues around the Chinese diaspora "Lucky Number 8" group show, environmental politics "Firedreams" featuring Ben Okri and Rosemary Clunie, and austerity and poverty "The Other Side Of Paradise" group show. We received more press coverage than ever before and increased traffic to our website and our other social media platforms, doubling our Instagram followers to over 10,000 and our newsletter and website sign-ups by over a third.

This growth is also seen in our education programme; thanks to our increased number of sites and broader pool of artists to facilitate diverse public workshops, we doubled our output to 22 events and quadrupled our public participants to nearly 400 during the year.

From artists’ practices to community outreach, TBFAF continues to deliver its remit and create an environment in which artists can create challenging works in spaces that are safe and conducive to the fulfilment of their artistic expression. We offer support with the provision of artists’ critiques and exhibition and mentoring opportunities, with a solid community ethos. We have also been able to implement our free residency programme, allowing artists without financial means to have a free studio for two months with a public exhibition in one of our galleries at the end of tenure. They are also beneficiaries of free mentoring and professional practice advice, as well as promotion on our social media.

TBFAF ended the year continuing to innovate and consolidate its position as a charitable organisation with a stronger financial footing for its future. Although working in the Meanwhile sector can be challenging, we have learned how to negotiate the risks, manage our expansion, and be aware of and counteract the potential vulnerability of our model.

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

TBFAF continues to expand the spaces available to artists at an affordable price, thereby fulfilling another of our core purposes. Throughout the year we have nearly doubled the number of spaces available to artists which in turn has further secured our financial position. Now operating on five sites - Archway, Chelsea, Covent Garden, Marylebone and Holborn - is not without its logistical complexities, however, the vision and commitment of Director Pallas Citroen has ensured that all sites have been operating efficiently and at full capacity, with a studio waiting list of over 300.

In addition to the provision of spaces, TBFAF continued to deliver a diverse programme of activity that continued to cement its position within its local communities, working closely with councils, schools and community groups. The programme consisted of activities ranging from critical workshops to art exhibitions (many of which showcase the works of our community of artists), film screenings and discussions, socially aware art and culture talks, poetry, and performance events, music events and theatre. Our public programme continues to develop, flourish, and enhance our reputation with the remit of inclusivity and diversity at its core.

The charity is in a stronger financial position than ever before, with a healthy reserve that offers a greater level of financial security. However, the Director is keen to seek diverse and new revenue streams that will strengthen our future viability going forward.

The Bomb Factory ended the year brightly having negotiated a successful period of expansion and increased activity. With the passion and foresight of Director Pallas Citroen and dedicated staff and Trustees, our commitment to the communities within which we operate and the creation of vibrant artistic and inclusive spaces can continue to grow.

Lastly, Anais Aguerre stepped down in May 2023 after seven years as a Trustee and Marc Sands in July 2023 after serving as Chair of the Trustees for three years. Francesca Filippini Pinto was appointed as Chair in October 2023. We thank Marc and Anais for their contribution toward the growth and success of the organisation over the course of their tenure.

Francesca Filippini Pinto

Chair of the Board of Trustees (appointed 17 October 2023)

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Objectives

Purpose and Mission

The Bomb Factory Art Foundation Ltd (TBFAF or the Bomb Factory) is a charity and was founded on the principle that art and artists offer value to society and that arts education is critical to support the creative industry ecosystem. The Bomb Factory offers a unique proposition to enhance the educational, arts and cultural offering currently available in this country.

The Bomb Factory runs contemporary arts hubs in five central London sites. Each hub has an extensive exhibition and education programme to benefit local communities and schools and give the public the chance to engage with all types of contemporary art through exhibitions, workshops, screenings, poetry evenings, performances, talks, and other cultural events. We are committed to developing inclusivity and accessibility in the arts by dismantling barriers to art, education and enrichment. To that end, our mission is to support artists and institutions by focusing our educational support to mainly, but not exclusively, young people in our local communities.

The main source of funding for the charity is revenue received from artists who rent affordable studios in the arts hubs. In turn our resident artists support the foundation's aims by providing tuition and support on our education programme and help facilitate the running of the spaces and the wide range of events for the local communities. This holistic model is centred around the arts hubs; by promoting a supportive network for artists where peer group critique is encouraged and by partnering our resident artists with other organisations we generate opportunities that allow culture and the contemporary arts to survive and thrive.

Public Benefit

The primary objects of the charity, as set out in the Articles of Association, are:

The board of Trustees has given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under section 17 of the Charities Act 2011 when reviewing the charity’s aims and objectives and in planning future activities. The board of Trustees considers that all the charity’s objectives deliver benefit to the public.

Strategies employed to achieve the charity’s aims and objectives:

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THE BOMB FACTORY ART FOUNDATION LTD TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Summary of the main activities, achievements and performance

During the reporting period 1 April 2022 to 31 March 2023, the Bomb Factory underwent its biggest and most rapid expansion to date. It expanded its arts hub portfolio by leasing a gallery and studio space at 99 Long Acre with its central London position opposite Covent Garden underground station. Further expansion took place in November 2022 into 206 Marylebone Road, Westminster, creating 17 artist studios and the use of a large, flagship gallery. Finally, in February 2023, the Bomb Factory took occupation of 103 Kingsway in Holborn, Camden, creating studio space for 31 artists along with a smaller gallery space. This significantly increased the number of artists within the Bomb Factory community and provided three new spaces to run free workshops, exhibitions and events in two new London boroughs. The new sites boosted the professional profile, reputation and reach of the charity.

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Free events and activities summary

With one full time and five part time staff and contractors, alongside the help of the resident artists, volunteers, and collaboration with local organisations, TBFAF delivered the following diverse free programme of events and activities for the public, offering a variety of opportunities for art education and engagement with the visual arts:

Type of Event 2023 2022
Workshops 22 12
Exhibitions 22 11
Artist critique events 3 3
Performance events 4 4
Film screening 1 1
Open studio 1 -
Talks - 2
2023 2022
Number of days activities were
running during year		 200 days 150 days
Number of visitors who
interacted with a Bomb Factory
event		 8,000 people 3,900 people
Number of workshop
participants		 370 100

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Events and Activities Highlights

Five workshops were run each for up to 10 young people during the Easter school holiday period in our Archway hub, alongside Islington Council. This included Zinemaking and T-Shirt customisation with artist Mia Maxwell, Ceramics with Noa Weintraub, Painting Emotions with Marcus Nelson, Cyanotype Printing with Ibrahim Azab, Lina Ivanova.

July 2022 saw our summer series of workshops in Chelsea that included daily classes of up to 30 young attendees per session. The Bomb Factory facilitated Recycle/Upcycle Fashion with artist Bleaq, Painting, Drawing and Sound with Andrew Hart and Serena Huang, and World-building Spoken Word with Rohan Ayinde.

We ran a portraiture workshop and abstract painting workshop at the secondary school, Hurlingham Academy, a regular collaborator in Chelsea, in November 2022. These were supported by our resident artists Hamit Ucok and Farnaz Gholami and attended by over 50 young people.

In November 2022, two Archway hub artists, Mark Wallinger and SDNA ran a series of workshops at Hackney Revealed Arts Festival. The work was co-created by twelve artists and over 250 local residents in a series of workshops, get-togethers and shoots around the borough of Hackney in October 2022. Artists documented, digitised and combined their artwork to create a series of inventive light projections and light installations of different scales that unite the unique identities of the local communities. 600 people came to visit the exhibits over two evenings.

The diverse range of artists newly moved into the Marylebone hub put on a group exhibition “Seventeen” in January 2023. This gave recent graduates within the Bomb Factory community, from all around the UK, the opportunity to showcase their work. The opening night was attended by 200 people and a further 100 visitors throughout the exhibition period. The Bomb Factory demonstrated that emerging artists have appeal with audiences in a professional art context and the exhibition raised the profile of the Charity’s work with its non-commercial gallery model.

To celebrate the Chinese New Year, the Bomb Factory curated “Lucky Number 8”, a show featuring seventeen artists from the Chinese diaspora currently based around the UK of ambitious artworks and supported by the Geoff Leong Foundation. The opening night drew over 100 visitors to the Marylebone gallery, particularly from Chinese communities in London and who were new to the Bomb Factory. The exhibition closed in February with a dance performance in the gallery by GIN Studio, Rocky Chu, and Natsumi Kuroda, followed by a featured artist Q&A. This created a meaningful dialogue around what it means to be Chinese living and working in the UK as an artist.

In March 2023 the Bomb Factory held a major group exhibition, “The Other side of Paradise” , with a mixture of eleven emerging and established artists from London and Leeds. The show’s theme explored the socio-political situation in the UK at the time, commenting on the perceived sense of apathy and gloom felt nationally. It brought together artists from a wide range of backgrounds and artistic practices to discuss this, through paintings, ambitious sculptures and installations. This event received significant press coverage, with features from 10 Magazine and The Face, and on the opening night saw over 200 people in attendance from both the local and the arts community. This was followed by a screening and director Q&A of Edem Kelman’s award winning short film “Princess” set in East London , which told the story of a black single mother. The focus of this event was for young filmmakers. Film clubs focusing on black cinema and local film schools were invited and the event attracted 80 guests.

Artist Harry Little held a solo exhibition in the Archway gallery in March 2023, titled “Don’t Leave”. This show discussed themes of male mental health and suicide. This was Harry’s debut exhibition and the opening night was attended by 130 people. This was followed by a poetry reading of Harry’s poems and a talk from the Julius Little foundation (a charity set up after his brother’s death) about the work it does for young mens’ mental health in Buckinghamshire. This event was attended by 50 people and created a supportive environment to share and raise awareness of male suicide.

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Reach and engagement

The Bomb Factory collects data, in line with the GDPR, from studio holders, exhibitions and workshops, as well as from our social media accounts and other online sources that host ticket allocations, event promotion and newsletter subscribers.

There were 576 new sign-ups to the Bomb Factory email newsletter during the reporting period, taking the total to over 3,000 at the end of the financial year. There was also a large increase in traffic to the Bomb Factory website. The current year saw average monthly visitors of 1,500, against an average in the prior year of 1,000 views per month. The number of site visits peaked in March 2023 at 3,000 thanks to the launch of the Marylebone gallery show which received press coverage.

Instagram remains our key social media platform seeing an increase from 5,000 to 10,000 followers during the period and increased levels of engagement. There were over 100 posts by the Bomb Factory inviting the public to exhibitions, workshops, sharing opportunities and featured press about the Charity and its resident artists. Most of the followers are from London and the rest of the UK. However, 3.3% are from the United States. Currently, around 65% of followers are female and 35% male and the largest number are in the 25-34 age range. However, we have a strong reach within all age ranges.

In pursuit of our diversity and inclusion aims, efforts were made to engage with audiences who may not ordinarily interact with the arts or who are not digitally enabled. This included reaching out directly to schools, local Councils, collaborating with other charities as well as artists using word of mouth. The Bomb Factory is also mindful in the selection process of artists for studios of nationality, stage of career, age and gender to ensure that a vibrant mix and variety of creativity is represented in our exhibitions and workshop offerings by those artists. We also support and help facilitate local organisations by offering our gallery for free, whenever possible, as well as advice, tutoring and volunteering support to help enable their projects.

Cooperation with other organisations

A list of partners, past and present, is included in the table below in alphabetical order:

Acland Burghley School
Archway Town Center Group
Archway Library
ARTiculation (National initiative
& charitable org.)
Arts Council (The)
Bad Art
Better Archway Association
Bridge School (The)
Bleaq Fashion collective
Canonbury Primary School
Celebrating Age
Central Saint Martins, MA, BA,
Foundation programmes
Camden Council
Chelsea Arts Club (The)
Chelsea School of Art
Creative Schools Symposium
Cripplegate Foundation
Culture 24 (Emerge Festival)
Duncombe Primary School		 Elthorne Community Group
Faboo TV
Film Video Umbrella
Five Years Group
Friends of Fairbridge
community
Geoff Leong Foundation
Guts Gallery
Hurlingham Academy (The)
Habibi Collective (The)
Hackney Council
Hargrave Park School
Islington
Council,
Education
Department
Julius Little Foundation (The)
Justin Hammond
Kensington & Chelsea Council
Kensington and Chelsea
Festival (The)		 Kozmik Workspace
Laureston House Youth group
London Irish Centre (The)
London Mosaic School (The)
Mary Ward Centre (The)
New River College
Royal School of Art and Design
(The)
Sacred Heart Primary School
Shape Arts
SDNA
The Roundhouse, Camden
University of the Arts London
The Us Programme
VOID
Wellcome collection (The)
Westminster Council
Whittington Hospital

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Staffing and Volunteers

Activity was facilitated by the full time Managing Director who is responsible for planning and running the exhibition, education and events programme as well as strategising the Bomb Factory’s expansion and sustainability, in support of the charitable aims. There were two part time staff who worked very closely with the Managing Director for the first part of the year and from November 2022 there was a total of four part time employees who were taken on to manage the buildings, co-curate exhibitions and run the education offer to translate the spirit of the first Archway hub and model it across the new sites.

To ensure our base salaries meet the everyday needs of our staff we are an accredited Living Wage employer. When setting remuneration, market rates and other relevant data relating to arts charities of a similar scale and operation are taken into account.

Many of our events and workshops are made possible with the active volunteering programme that TBFAF is proud to pioneer. What makes TBFAF’s operating model unique is that each artist who rents a studio is asked to contribute at least two weeks of voluntary work throughout the year, enabling us to help run the organisation. This can include running and devising workshops for the public and education programme, invigilating exhibitions, teaching workshops, general cleaning, painting and maintenance of the building, as well as contributing creative input to the public programme.

During the financial year we were able to continue the Bomb Factory’s internship programme for two people. We reciprocated their time with payment of travel and lunch expenses, as well as in-kind practical advice and mentoring. This scheme offers a good introduction into the workings of the contemporary art gallery and the business of art studio provision and supporting our programme by developing graphic content, writing press releases, and researching potential artists for future exhibitions.

Future Plans

We have managed not only to sustain but grow our organisation during the year. We have expanded across three new sites, gained new audiences and stabilised our revenue whilst offering a greater number of workshops and exhibitions and events for the public. We have created a broader and more diverse audience by engaging the full range of artists practising under the Bomb Factory umbrella, and by looking at what is popular or successful helps us build on and formulate our future programme, both in terms of our exhibition and cultural events as well as our education programme. We are open to supporting the community educationally in whatever way is deemed necessary, facilitating the discourse between contemporary art and current affairs, and for young people fulfilling the creative gaps in their education. We continue to work with local schools and organisations with young people as their focus and intend to build on these relationships. The Bomb Factory will continue to develop special events and workshops that enable people of any age or background to participate and explore their creative abilities, especially those who are deemed to be disadvantaged or marginalised in society.

For future programming we plan to stabilise the number of events put on by the Bomb Factory and instead extend the time of exhibitions to make event management more efficient with the resources available and to deepen the level of engagement with all stakeholders. One of the core strategies of the charity - to work with emerging and established artists - will remain at the heart of programming.

We have increased the diversity of our events, bringing in new audiences. These support the charity in non-pecuniary ways and will help us define our objectives in looking at potential sources of funding. The organisation continues to look at new sources of funding, with a view to further supporting our existing programme as well as helping to develop new and interesting activities that will enable the organisation to further achieve its charitable aims.

Exploration has begun into offering a number of free residencies, based on merit and financial need and selected by a panel of three staff, to artists without means across all sites with the aim of offering special exhibitions and associated events that are free to the public.

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

We have established a model of working to deal with “meanwhile” spaces such as Marylebone and Covent Garden. A period of consolidation will follow, to solidify the foundations of the organisation following a period of growth in arts hubs, in preparedness for exploring grant and fundraising opportunities and diversifying income. There will also be a focus on building the public-facing presence of the Bomb Factory with support from the Trustees, and a continuation of the search for a longer-term arts hub to invest in the charity’s future and to manage the anticipated departure from the flagship Marylebone building.

The charity continues to focus its resources in London while it establishes a sustainable income. The wait list for studios in London demonstrates that there is more to be achieved. The cost of living in the capital city is a significant inhibitor to being a practising artist and this is where the Bomb Factory can play an important role.

Financial Review

In the year to 31st March 2023, total incoming resources were £381,040 (2022: £246,425), an increase of 55.6% with a net surplus of £92,756 (2022: £87,526), an increase of 5.9%.

The company’s business model remains strong and flexible, as the revenue received from artists who rent the studios across our four sites during the financial year ended 31 March 2023 at discounted affordable rates provided a regular and reliable income to cover overhead expenses.

The organisation currently relies heavily on volunteers to manage and operate its public programme and the resident artists as part of their contract are required to support the charity with their time and skills. This arrangement supports the charitable activities and public offer of free programmes. TBFAF will continue to develop new funding streams such as hiring out gallery spaces, auctions, chargeable events, donations and will be looking for grants available through local and central government, as well as from charitable Trusts and Foundations.

Reserves Policy

The purpose of the reserves policy is to ensure that the charity is able to meet its contractual obligations and finance future expansion of the organisation. The level of free reserves (excluding restricted funds) is reviewed annually by the Trustees. In the current economic climate, the Directors consider that the most appropriate level of free reserves is between six to eight months budgeted future operating expenditure to be able to withstand any unexpected drop in funding and to help fund operations where funding is paid in arrears. Budgeted expenditure for 2023-24 is £410,000, giving a reserves target of £273,000 for eight months cover. The unrestricted surplus generated in this financial year was £103,569, so with reserves of £132,275 brought forward from 2021-22, TBFAF had unrestricted reserves of £235,844 at the end of the 2023 financial year. This means that we are in our target range of six to eight months of budgeted operating costs.

Principal Funding Sources

The main source of funding is the revenue received from artists who rent studios in Archway and Chelsea. During the 2022/2023 financial year 98% of total revenue came from Bomb Factory charitable activities including rental income, space rental and leaseholders’ contributions. The Bomb Factory received a grant of £2,883 from The Royal Borough of Kensington and Chelsea to support workshops through the Summer in 2022.

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Donated Facilities

The Charity occupied four ‘meanwhile’ premises for the whole or part of the financial year, within which, it carried out its charitable activities. The Trustees consider the commercial value of these premises to be the de minimis rent charged by the respective landlords. Factors that the Trustees took into account included the distressed state of the buildings, the reduction of property holding costs for the landlords as a result of the Charity’s occupation, and the nature of the short term leases that were without security of tenure on 28 days notice or less.

Pricing Policy

Our pricing policy reflects our strategy of being of public benefit, by enabling as many people as possible in our local communities to participate in our varied programmes at either no cost or low cost. We feel that we must maintain our events at a low cost to realise our charitable aims. We are also dedicated to providing more artists with affordable studios, this is particularly relevant now not only due to the post pandemic climate, but also if many artists have lost a portion of their income. We are in a London area at times of regeneration, and we must be aware that we must maintain TBFAF as a resource for our artists who mainly live locally.

We have been able to maintain our public policy and education programme free of charge as following:

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Structure, Governance and Management

Governing Document

The organisation is a company limited by guarantee, incorporated on 11 May 2016. The company was established under a Memorandum of Association which established the objects and powers of the company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

Recruitment and Appointment of Trustees

Under the company’s Articles, there shall be at least three trustees. TBFAF currently has six Trustees including the newly appointed Chair of the Board Francesca Filippini Pinto. This also includes Treasurer Fraser Jopp and a communications expert and those that have suitable experience in both arts and education organisations. Trustees are recruited based on the skills and expertise needed in order to ensure the long-term sustainability and growth of the organisation. The recruitment process involves preparing a job description that is approved by the Board of Trustees and advertised via a range of formal and informal channels in order to reach a diverse pool of potential applicants. Any person willing to act as a Trustee, and who would not be disqualified from acting under the provisions of Article 27, may be appointed to be a Trustee by a decision of the Trustees. New trustees receive an induction tailored to their needs, to quickly give them a detailed understanding of the organisation. This includes meeting with other Trustees and management and providing background materials on governance and management information.

Organisational Structure

The daily operations and programming of the events and education programme were run by the Managing Director, Pallas Citroen. During the period, the organisational structure grew from the Managing Director with one part time assistant to four part time staff by March 2023.

We have a Board of Trustees, who are all dedicated to the TBFAF cause and support the charity according to their experience. The Trustees meet quarterly and are responsive to emails from staff at all times. They are responsible for the governance and compliance of TBFAF as a charity and a company, ensuring the organisation carries out its charitable purposes, complies with its governing document and the law and manages its resources responsibly. They also advise on funding opportunities for the continuance and longevity of the Bomb Factory.

Risk Management

The Board of Trustees undertakes regular reviews of the major risks to which the charity is exposed. Where appropriate, systems or procedures have been established to mitigate the risks the company faces. Procedures are in place to ensure compliance with the health and safety of staff, volunteers and participants.

Related Parties

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into the charity during the year (2022: NONE).

Going Concern

The trustees consider the charity to be a going concern and the financial statements are prepared on that basis.

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THE BOMB FACTORY ART FOUNDATION LTD TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Reference and Administrative Details

Charity registration number: 1169506 Company registration number: 10175326 Registered office: Unit 2, 9 – 15 Elthorne Road, London, N19 4AJ

Directors and Trustees

The Board of Trustees constitutes directors of the company for the purpose of company law and trustees for the purpose of charity law. The trustees serving during the period and since the period end were as follows:

Anais Aguerre (resigned 22.05.2023)

Mark Hudson

Fraser Jopp Megan O’Shea Francesca Filippini Pinto (appointed 17.10.2023)

Martine Rouleau Marc Sands (resigned 03.07.2023)

Deana Vanagan

No trustee received any remuneration for services during the period, nor did they have any beneficial interest in any contract with the charity.

Managing Director: Pallas Citroen Independent Examiner: Narges Cyroos BSc FCA Sterling Partners Limited, Chartered Accountants 2[nd] Floor, Grove House, 774-780 Wilmslow Road Didsbury, Manchester M20 2 DR

Bankers:

Santander, 2 Triton Square, Regents Place, London NW1 3AN

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Statement of the Trustees’ Responsibilities

The trustees (who are also directors of The Bomb Factory Art Foundation Ltd for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the financial period. In preparing these financial statements, the trustees are required to:

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

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

On behalf of the board

Francesca Filippini Pinto

Chair of the Board of Trustees

Date: 25 January 2024

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THE BOMB FACTORY ART FOUNDATION LTD

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Independent examiner’s report to the trustees of The Bomb Factory Art Foundation Ltd (‘the Company’)

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st March 2023.

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 statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.

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

  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 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.

______Narges Cyroos BSc (Hons) FCA Sterling Partners Limited Chartered Accountants 2nd Floor, Grove House 774-780 Wilmslow Road Didsbury, Manchester M20 2DR

Date: 29 January 2024

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THE BOMB FACTORY ART FOUNDATION LTD

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2023

Notes
Income and endowments from:
Donations and legacies
2
Charitable activities
3
Investments
Total income and endowments
Expenditure on:
Charitable activities
4
Total expenditure
Net income/(expenditure)
Net movement of funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
10		 Restricted
Unrestricted
Funds
Funds
2023
2023
£
£
2,883
2,528
-
375,520
-
109
2,883
378,157
13,696
274,588
13,696
274,588
(10,813)
103,569
(10,813)
103,569
10,813
132,275
-
235,844		 Total
Funds
2023
£
5,411
375,520
109
381,040
288,284
288,284
92,756
92,756
143,088
235,844		 Total
Funds
2022
£
40,537
205,888
1
246,425
158,899
158,899
87,526
87,526
55,562
143,088

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

16

THE BOMB FACTORY ART FOUNDATION LTD

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Restricted
Unrestricted
Funds
Funds
2023
2023
£
£
Fixed assets
6
-
Current assets
Debtors
7
33,146
Cash at bank and in hand
-
267,079
-
300,225
Creditors: amounts falling
due within one year
8
(64,381)
Net current assets/(liabilities)
-
235,844
Net assets
-
235,844
Charity funds
Total charity funds
10
-
235,844		 Total
Funds
2023
£
-
33,146
267,079
300,225
(64,381)
235,844
235,844
235,844		 Total
Funds
2022
£
-
26,814
164,482
191,296
(48,208)
143,088
143,088
143,088

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st March 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to charitable small companies. The financial statements were approved by the Board of Trustees on 25 January 2024 and were signed on its behalf by:

..................................................... Fraser Jopp

Trustee

17

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1.0 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

1.1 General information and basis of preparation

The Bomb Factory Art Foundation is a company limited by guarantee incorporated in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The registered office is: Unit 2, 9 – 15 Elthorne Road, London, N19 4AJ

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 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

1.2 Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Unrestricted funds are donations and other income received or generated for the objects of the charity without further specified purpose and are available as general funds.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Restricted funds are subject to restrictions on their expenditure imposed by the donor.

1.3 Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Interest income is recognised when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

18

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

1.4 Expenditure recognition

Expenditure is recognised on an accrual basis where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

1.5 Support costs allocation

Support costs are those functions that assist the work of the charity but do not directly represent charitable activities and include premises overheads, office, finance and governance costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

1.6 Operating leases

Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

1.7 Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On the receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

1.8 Tangible fixed assets

Tangible fixed assets which have a useful life greater than one year are capitalised at cost and depreciated over their estimated useful economic lives on a straight-line basis as follows:

stimated useful economic lives on a straight-line basis as follows:
Office equipment & Equipment (Large) 4 years
Computer equipment 3 years
Equipment (Small) 2 years

Leasehold improvements costs incurred in the premises with a lease duration no more than 2 years are expensed in the first year due to the short length of the contract and uncertainty of the duration of the lease.

1.9 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.

19

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

1.10 Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.11 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.

1.12 Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

1.13 Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expenses when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

2.0 Income from Donations and Legacies

Donations
Grants		 Restricted
2023
£
-
2,883
2,883		 Unrestricted
2023
£
2,528
-
2,578		 Total
2023
£
2,528
2,883
5,411		 Total
2022
£
-
40,537
40,537

The Bomb Factory received a grant of £2,883 (2022: NIL) from The Royal Borough of Kensington and Chelsea to support workshops through the Summer in 2022.

20

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

________________

3.0 Income from Charitable Activities

Restricted
Unrestricted
2023
2023
£
£
Income from licence fees and rents
-
375,520
4.0
Analysis of Expenditure on Charitable Activities
Restricted
Unrestricted
2023
2023
£
£
Direct Costs
11,531
238,599
Support Costs
2,165
14,215
Governance Costs
-
15,182
13,696
267,996
Project Work Costs
-
6,592
13,696
274,588		 Total
2023
£
375,520
Total
2023
£
250,130
16,380
15,182
281,692
6,592
288,284		 Total
2022
£
205,888
Total
2022
£
138,815
13,765
4,230
156,810
2,089
158,899

21

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

____________

4.1 Direct Cost

Bad Debts
Cleaning & recycling
Contractors
Equipment rental
Payroll costs
Premises costs – Insurance & rates
Premises rental
Utility Costs		 Restricted
2023
£
-
-
8,035
-
-
338
3,158
-
11,531		 Unrestricted
2023
£
2,752
333
56,835
942
69,195
15,334
42,017
51,191		 Total
2023
£
2,752
333
64,870
942
69,195
15,672
45,175
51,191		 Total
2022
£
7,087
657
13,689
-
38,120
3,629
42,043
33,591
238,599 250,130 138,815

4.2 Project Work Costs

Administration Project
Artist Fee
Materials		 Restricted
Unrestricted
2023
2023
£
£
-
2,633
-
3,219
-
740		 Restricted
Unrestricted
2023
2023
£
£
-
2,633
-
3,219
-
740		 Total
2023
£
2,633
3,219
740		 Total
2022
£
22
1,373
694
- 6,592 6,592 2,089

22

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

____________

4.3 Support Costs

Administration
Bank fees
Depreciation
Information technology software
Marketing
Printing, Postage and Stationery
Telephone
Travel - Transportation
4.4
Governance Costs
Accountancy Fees
Employer Accreditation
Independent Examiner review		 Restricted
2023
£
1,487
-
-
-
-
166
-
512		 Unrestricted
2023
£
5,618
3,709
-
1,560
25
377
2,803
123		 Total
2023
£
7,105
3,709
-
1,560
25
543
2,803
635		 Total
2022
£
5,091
2,989
1,059
2,095
348
202
1,284
697
14,215
Unrestricted
2023
£
14,030
72
1,080
15,182		 16,380
Total
2023
£
14,030
72
1,080
15,182		 13,765
Total
2022
£
3,350
-
880
4,230

The fees in respect of the Independent Examination for the year is £1,080 (2022: £880).

23

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

____________

5.0 Analysis of Staff Costs

Wages and salaries
Social security
Pension		 2023
£
67,427
1,596
172		 2022
£
38,120
-
-
69,195 38,120

No employees received total employee benefits (excluding employers’ pension contributions) of more than £60,000 (2022: NONE).

The trustees consider Ms Y Harrison (Pallas Citroen) as the key management personnel. The total employee benefits paid to key management personnel was £40,000 (2022: £35,000).

The average number of employees during the year was as follow:

Average number of employees 2023
5		 2022
2

24

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

____________

6.0 Fixed Asset

Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
7.0
Debtors
Trade debtors
Other debtors		 Equipment
£
3,607
-
3,607
3,607
-
3,607
-
-
2023
£
27,692
5,454
33,146		 Total
£
3,607
-
3,607
3,607
-
3,607
-
-
2022
£
20,800
6,014
26,814

25

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

____________

8.0 Creditors

Trade creditors
Accruals
Other creditors
Deferred Income
8.1
Summary of movement in year of deferred income
Balance at 1 April 2022
Movements released to SOFA
Balance at 31 March 2023		 2023
£
4,848
4,484
42,661
12,388
64,381
9,703
2,685
12,388		 2022
£
8,359
3,082
27,065
9,703
48,208

26

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

____________

9.0 Analysis of Charitable Funds

Restricted Funds
Restricted Funds
Total restricted funds
Total unrestricted funds
Total funds
Total restricted funds
Total unrestricted funds
Total funds		 2022
£
10,813
10,813
132,274
143,088
2021
£
1,925
53,637
55,562		 Income
Expenditure
£
£
2,883
(13,696)
2,883
(13,696)
378,157
(274,588)
381,040
(288,284)
Income
Expenditure
£
£
36,700
(27,812)
209,725
(131,088)
246,425
(158,900)		 2023
£
-
-
235,844		 2023
£
-
-
235,844
235,844
2022
£
10,813
132,274		 2022
£
10,813
143,088

Restricted Funds in FY 2023:

27

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

____________

10.0 Analysis of Net Assets Between Funds

Fixed assets
Current assets
Current liabilities
Net assets at 31 March 2023		 Restricted
Unrestricted
£
£
-
-
-
300,225
-
(64,361)
-
235,844		 Total
£
-
300,225
(64,381)
235,844

11.0 Trustees’ Remuneration and Expenses

The trustees were not paid any remuneration or received any other benefits during the year (2022: NIL). There were no travel costs reimbursed to any member of the Board of Trustees (2022: NIL).

12.0 Taxation

As a charity, The Bomb Factory Art Foundation is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity.

13.0 Capital

The company is limited by guarantee and has no share capital. Upon appointment, trustees automatically become members of the company, and each member has undertaken to contribute up to £1 in the event of the company being wound up.

28

THE BOMB FACTORY ART FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2023

____________

14.0 Operating Lease Commitments

The charity has the following total commitments in respect of its rent:

Total commitments due within 1 year
Total commitments due over 1 year
Total commitments over the term of the lease		 2023
£
42,167
0
42,167		 2022
£
42,250
42,167
84,417

The Bomb Factory Art Foundation signed a two-year lease extension with Elthorne Properties in January 2022 with an increase of £4,500 per year.

The Bomb Factory holds short term leases for a number of properties which operate under a management agreement with Avire (UK) LLP and a reverse premium agreement with the property landlords. There is no financial obligation arising to the Charity which is not covered by these agreements. The leases have short notice periods of under one month which can be served by the landlord or by the TBFAF. The properties are used to meet charitable objectives of providing affordable artist studios and arts hubs through exhibitions, workshops and performances.

15.0 Subsequent Events

There were no post balance sheet events to report.

29