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← County Hall Arts

2023-12-31-accounts

Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

REGISTERED CHARITY NUMBER: 1169698

GROUP REPORT OF THE TRUSTEES AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

FOR

COUNTY HALL ARTS

Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 8
Report of the Independent Auditors 9 to 12
Consolidated Statement of Financial Activities 13
Consolidated Statement of Financial Position 14
Charity Statement of Financial Position 15
Consolidated Statement of Cash Flows 16
Notes to the Consolidated Statement of Cash Flows 17
Notes to the Financial Statements 18 to 38

Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31ST DECEMBER 2023

TRUSTEES K Okamoto M Okamoto I Martinez M Takaori

PRINCIPAL ADDRESS Riverside Building County Hall Westminster Bridge Road London SE1 7PB

REGISTERED CHARITY NUMBER 1169698 AUDITORS Johnsons Chartered Accountant Statutory Auditor 1-2 Craven Road Ealing London W5 2UA

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

The trustees present their report with the financial statements of the charitable group for the year ended 31 December 2023. The trustees confirm that the annual report and financial statements comply with the current statutory requirements, the requirements of the governing document 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

County Hall Arts has been established for the benefit of the public for the following purposes:

To advance the education of people in the arts for the public benefit in particular the arts of drama, dance, music, motion pictures and the culinary arts, primarily but not exclusively, through the provision of financial assistance in the education, access and creation of arts and culture and, to establish and maintain an art gallery and/or museum and/or culinary art school for the public benefit.

Public benefit

The trustees have complied with the duty in section 4 of the Charities Act 2011 and have regard to the public benefit guidance as issued by the Charity Commission as shown in the objectives above.

We have referred to the guidance on public benefit when reviewing our aims and objectives and in planning our future activities in particular, the Trustees consider how planned activities will contribute to the aims and objectives that they have set.

This public benefit statement forms the basis for all judgements regarding operational reports to the Board meetings, in order to be reassured that the facilities and services currently managed by the charity continue to meet these criteria.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Sponsorship of emerging artistic talent

The number of individual sponsorships provided by the Charity in 2023 was ten, totalling £325k (2022: six, totalling £148k) which spanned the fine arts of filmmaking and animation, acting, painting, ceramics as well as music composition and performance. The emerging artists currently receiving sponsorship were selected by various means including the reviewing film graduate work, musical auditions and past concours entries. As a result of these sponsorships over 60 informative, educational and inspiring short films were produced and distributed for the public to view on the County Hall Arts website (www.countyhallarts.com). In 2023 the short films funded by County Hall Arts were viewed online more than 66,000 times.

County Hall Arts hosted a multimedia exhibition by various sponsored artists which included a series of Kyoto inspired paintings in April, a workshop for children in creating Paper Lantern lead by a sponsored artist in June, and numerous musical performances (including live online streamed concerts) by sponsored musicians throughout the year.

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COUNTY HALL ARTS

GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

County Hall Arts continued with its support of the art charity ‘Picture Hooks’ by providing a sponsorship grant of £100k to the charity which assists emerging children’s picture book illustrators through a range of mentoring schemes, masterclasses and competitions.

Motion Picture Artwork Funding

60 arts focused short films were produced and distributed in 2023 with charity expenditure of £175k (2022: £102k). County Hall Arts partially funded cinematic release of the feature film “Living” in 2022, which in 2023, was nominated for numerous industry awards including BAFTA & Academy Awards, achieved a worldwide cinema audience of 1.2 million, and was one of the most popular films available on the BFI Player service. The Trustees continued with the goal of creating, promoting and supporting the creation of truly original and independent cinema. This is an art form under 'existential threat' from declining cinema attendance, increasing costs of production/distribution and the deep-pocketed streamers whose motivations are purely commercial. Nevertheless, this art form is by far the most effective in bringing nuanced, intelligent and meaningful stories with important, mature themes to wide audiences. In 2023, the charity funded the treatment of feature length film concept and considered participating in several independently developed feature length film proposals, however after careful consideration by the trustees of County Hall Arts objectives, no suitable projects were approved for full or partial funding in the year.

Art Works Creation

In 2022, the charity began to offer competitions (concours) through its website, open to all and without entry fees, to inspire the creation of artwork. The first was a landscape painting concours with a winning prize of £10k and this year the £10k prize concours was for songwriting.

In 2023, the charity’s first classical music composition concours, titled “Symphony Kyoto” with a prize pool available of €100k (£84.3k), offered composers the opportunity to create a symphony inspired by and reflect the Japanese region of Kyoto’s history and culture. This concours attracted 97 entries from composers worldwide and based on their submitted “pitch document” six shortlisted composers were commissioned to deliver their symphony. The completed works were assessed, and an emerging composer was selected as winner for her composition titled “Pictures of Kyoto”. While a full orchestral performance has not been confirmed a reworking of the symphony for a quartet of musicians was completed by the composer and a number of concerts were scheduled to take place in 2024.

Building on the success of the first symphony concours the charity chose to honour the historic and unique city of San Sebastian, which will be the location of the planned arts & cultural centre to open in the former convent previously acquired by County Hall Arts. “Symphony San Sebastian”, offering a prize pool of €200k (circa £173k), opened for entry in August 2023 with the closing deadline in February 2024 with 47 entries received in 2023.

In 2023, the inaugural sculpture concours was introduced with a prize pool of €50k (circa £43k) and the theme of “Peace”. This concours attracted over 100 entrants and ultimately two winners were selected - one from Wales and the other from Morocco - who will share the prize money once the fabricated sculptures have been delivered. The charity has commissioned the production of the two sculptures, and they have been delivered subsequently to County Hall in 2024 and 2025, where they will be placed on display to the public. Two runners up prizes of €1.5k (£1.3k) each were also awarded. For the concours, the charity aims to be opened to all and in the case of the “Peace” sculpture concours, it had provided access support funding to one of the entrants.

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

COUNTY HALL ARTS

Culinary Arts

The MOM Culinary Institute in Madrid, established by the charity in 2021, continued to provide education in the culinary arts to 60 students studying to complete 2-year Diplomas at the central Madrid school (Serrano) and 37 students at the El Pardo school. In addition, the Serrano school hosted 20 students from the MACC University (Madrid Culinary Campus). MOM Culinary Institute also worked with private gastronomy brands to provide individual sponsorships to reduce student fees, in 2023 there were 70 sponsored students. 44 Students graduated in 2023 and the quality training they received enabled them all to obtain working contracts, including for some of the most highly regarded restaurants in Spain.

During the year, €3m (£2.6m) loan funding & €575k (£501k) grant funding was released for the completion of the building refurbishment works at the El Pardo school along with loan funding of €440k (£382k) & €626k (£557k) grant funding for refurbishment, classroom expansion and operational expenditure for the Serrano school.

Creative Art Presentation

This year the charity continued to build its collection of art works on display to the general public within County Hall with the purchase of two paintings and the commissioning of a large sculpture titled “Doves of Peace” by an artist who was previously sponsored by the charity.

In 2023 the charity began its development of the spaces within County Hall by creating two outdoor performance and events camellia gardens, located within the buildings lightwells. These gardens hosted several musical performances in late 2023.

TRADING SUBSIDIARIES

County Hall Arts as a CIO operates commercial activities through its trading subsidiaries which directly support the charitable activities. County Hall Arts provides funding to Zen Arts Ltd to produce creative content and distribution services. County Hall Arts also provides funding to Agricooking Global SL, a company incorporated in Spain, which operates and manages the culinary arts education programme in Spain. La Tora Agroturismo SL was acquired in 2023 to expand the curriculum provision in the culinary arts.

The culinary arts school also operates a restaurant providing the students with practical training in a working environment, during the year the restaurant income contributed €877k (circa £763k) of surplus revenue to the school.

EXPANSION & INVESTMENT

County Hall Arts spent £105k in 2023 refurbishing two vacant lightwells to provide outdoor performance & event space in a garden setting within County Hall.

In 2023, County Hall Arts advanced £2.98m (€3.44m) to the Spanish culinary art education facilities located at Serrano Madrid and El Pardo Madrid for the completion of the refurbishment works. This work is expected to be completed during financial year 2024.

La Tora Agroturismo SL which owns a 512ha forest estate, located in Spain’s Caceres region, was acquired by the charity towards the end of 2023 for £3,816,794 (€4.4m), which will further extend the culinary arts training provided by the charity by integrating agricultural elements to the curriculum. The charity hopes to also begin R&D projects on agriculture & forestry technology in the coming years at this estate and it will benefit with income from cork harvesting in 2029 -2030.

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

FINANCIAL REVIEW

Results for the year 31[st] December 2023

Incoming resources for the group in the year were £10,654,744 (2022: £8,060,306): comprising £9,154,826 (2022: £6,344,496) of investment income and £1,499,918 (2022: £1,715,810) of trading income. None of the income resources were restricted.

A surplus of £2,767,525 (2022: £4,932,355) was made during the year. As at 31 December 2023, total consolidated funds were £52,307,135 (2022: £49,528,933) of which (£387,292) (2022: (£244,585)) is in relation to the non-controlling interests. All of the £52,694,427 (2022: £49,773,518) attributable to the charity relates to general unrestricted funds.

Investment powers, policy and objectives

As required in its articles of association in furtherance of its objects and for no other purposes, the Association has the power to invest the monies of the charity not immediately required for its purposes in or upon such investments, securities or property as may be thought fit, subject nevertheless to such conditions and such consents as may for the time being be imposed or required by law.

Reserves policy

The Trustees regularly review County Hall Arts Reserves policy. The Trustees have approved a reserves policy in line with the guidance issued by the Charity Commission. The purpose of these reserves is to safeguard both against significant loss in income and any unforeseen adverse circumstances and to facilitate the continuance of the deliverance of the charitable company’s stated objectives.

The Trustees are committed to maintaining a level of unrestricted funds as free reserves. The charity’s income is predominantly through rental and is subject to property market conditions which are reviewed by the Trustees at each board meeting. A prudent estimation of reserve cover, to allow the charity to fulfil its charitable objectives, is estimated to be the equivalent of approximately three years rental income. The reserves are maintained to allow the charity to take advantage of project opportunities and to continue to operate at its forecasted expenditure level for a period of three years, should a substantial fall in income occur. It is anticipated three years would allow sufficient time for market recovery.

At the end of the year the charity held reserves in the amount of £52,694,427 and there are no restricted funds.

The Trustees have earmarked future expenditure for the following projects over the next 3 years:

Providing sponsorship of individual artists to develop their craft and arts events. £1,650,000
Funding the production of short form & feature length films exploring artistic themes. £11,025,000
Holding regularly competitions (concours) to inspire the creation of art works. £1,500,000
Establishing & operating schools to provide education and training in the arts. £3,820,000
Establishing Arts & Culture Centre and Live Classic Music Concert Hall. £5,000,000
Developing areas within County Hall for creative arts purposes. £2,135,000
Total Expenditure £25,130,000

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

COUNTY HALL ARTS

Risks

The major risks to which the Charity could be exposed to have been reviewed and systems established to mitigate these risks, this includes developing a risk register which includes consideration of impact and remedial actions. The risk register is reviewed, and its appropriateness is reassessed at each board meeting.

The Charity has minimal exposure to currency risks, interest rate risks, price risks and market risks.

At each meeting, the Financial Controller lays the monthly financial statements together with the risk register for the Trustees to consider the past and present financial performance and highlight any financial concerns and any identified risks.

FUTURE PLANS

The charity will continue to work to deliver upon its charitable objectives in order to advance the education of people in the arts for the public benefit in particular the arts of drama, dance, music, motion pictures and the culinary arts, primarily but not exclusively, through the provision of financial assistance in the education, access and creation of arts and culture and, to establish and maintain an art gallery and/or museum and/or culinary art school for the public benefit.

The charity will continue increasing the number of creative arts sponsorships to provide more opportunities for artists to develop their craft which they otherwise may not have.

The charity will continue to increase the number of varying artistic concours to generate the creation of artwork.

The charity will assist artists in expanding their reach through exhibitions and performances at County Hall, as well as in locations in Spain and Japan.

The charity will continue exploring and assessing motion picture projects through commissioning treatments, screenplays and potential third-party film projects with artistic merit aligned to the charitable objectives of the charity.

As the culinary art schools expand, the charity will continue to fully support the success and development of its culinary art schools, integrating agricultural training as well as expanding to open a new school in Kyoto, providing education & training in traditional Japanese cuisine.

The former convent in San Sebastian, acquired by the charity in 2022, will be developed into a Live Classic Music Concert Hall and multi-purpose Arts & Culture centre to house a sculpture museum, hold exhibitions, artist in residences and masterclasses.

The creation of artist apartments within County Hall to host visiting artists involved in furthering the charity’s objectives.

The creation and opening of a County Hall Pottery School will educate & preserve the skill of pottery art. Complimenting the pottery school a pottery Gallery will be opened which will exhibit pottery artwork and hold curated exhibitions for the public.

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

In addition, the trustees will look to further develop the rental space within their property assets in order to generate additional rental income. The object being that future rent yields will continue to positively contribute to the charity’s long-term existence and delivery of its charitable objectives for public benefit.

The Trustees expect the overall expenditure to significantly increase year on year as they embark on their ambitious plans to deliver on the charitable objectives and expand the public benefit that County Hall Arts provides.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing documentation being the constitution of a charitable incorporated organisation and the Charitable Incorporated Organisations (General) Regulations 2012.

Organisational structure

County Hall Arts is a charitable incorporated organisation with CIO no. 1169698. Zen Arts Ltd (Company number: 07596404) is a 90% owned subsidiary of the parent organisation, County Hall Arts. Agricooking Global SL (Company number: B42801324) incorporated in Spain is an 82.5% owned subsidiary of the parent organisation, County Hall Arts. La Tora Agroturismo SL (Company number: B10267060) incorporated in Spain is a 100% owned subsidiary of the parent organisation, County Hall Arts. The subsidiaries operate to deliver County Hall Arts charitable objectives.

The charity trustees manage the affairs of the charitable incorporation organisation and may for that purpose exercise all the powers of the CIO.

Recruitment and appointment of new trustees

Every trustee is appointed for an indefinite term by a resolution passed at a properly convened meeting of the charity trustees. In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO.

As stated in the constitution, the maximum number of trustees is twelve and there must be at least three charity trustees. If the number falls below this minimum, the remaining trustee or trustees may act to call a meeting of the charity trustees or appoint a new charity trustee.

The Trustees are actively searching for suitable individuals with the right experience, knowledge, empathy and understanding to become trustees to assist in the furthering of the charitable objectives. One such individual with a distinguished music career and long history of involvement in social welfare activities was identified and appointed prior to the reporting date.

The Trustees who served during the year and to the date of this report are:

Induction and training of new trustees

The charity trustees will make available to each new charity trustee, on or before his or her first appointment, a copy of the current version of the constitution and a copy of the latest trustee’s annual report and statement of accounts.

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COUNTY HALL ARTS

GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023

Conflict of Interest

The Charity maintains a register of each of the trustees’ interests and regularly assesses whether there is potential for a conflict of interest. At the Trustee Meetings each trustee is required to declare any interests relating to the items discussed. If there is an item which could result in a potential conflict of interest the Trustee(s) will recuse themselves from voting on that item.

Related parties

The charitable group is related to the group of companies headed by London Sky Garden Ltd (company no. 10480894) and Miso Investments Ltd (company no. 11687530) via the trustees’ directorships and / or shareholdings in the aforementioned group, all of which operate out of the Riverside Building at County Hall.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare consolidated financial statements for each financial year which give a true and fair view of the state of affairs of the charitable group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing those consolidated financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on 21 March 2025 and signed on its behalf by:

............................................. K Okamoto - Trustee

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF COUNTY HALL ARTS

Opinion

We have audited the financial statements of County Hall Arts (the ‘charity’) and its subsidiary (together “the Group”) for the year ended 31 December 2023 which comprise Consolidated Statement of Financial Activities, Consolidated and Charity’s statement of financial position, the Consolidated Statement of Cash Flows and notes to the consolidated financial statements, including significant accounting policies. The financial 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 Ireland (United Kingdom Generally Accepted Accounting Practice) and Charities SORP.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast a significant doubt on the charity’s ability to continue as a going concern for the period of at least twelve months when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF COUNTY HALL ARTS

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF COUNTY HALL ARTS

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identification and assessment of potential risks

In identifying and assessing potential risks related to irregularities in identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we conducted:

Risks arising from legal and regulatory frameworks

We are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks in which the charity operates, focusing on provisions of those areas that had a direct effect on the determination of material amounts and disclosures in the financial statements.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF COUNTY HALL ARTS

We did not identify any material audit matters related to the potential risk of fraud or non-compliance with laws and regulations from our work:

We also communicated our assessment of the relevant laws and regulations and potential fraud risks to all engagement team members including internal specialists and significant component audit teams, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-foraudit.aspx. This description forms part of our auditor’s report.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Edmund Cartwright FCCA MAAT (Senior Statutory Auditor) for and on behalf of Johnsons, Chartered Accountants Statutory Auditor Ground Floor 1 - 2 Craven Road Ealing London

Date: 21 March 2025

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31ST DECEMBER 2023

Note
INCOME AND ENDOWMENTS FROM
Investment income
3
Trading income
4
TOTAL
EXPENDITURE ON
Raising Funds
5
Charitable activities
6
Direct charitable expenditure
Other resources expended
Governance costs
Tax expense/(credit)
7
Total
NET INCOME
RECONCILLIATION OF FUNDS
Total Funds brought forward
Owners of parent
Non-controlling Interests
Total Funds before translation
Foreign currency translation
TOTAL FUNDS CARRIED FORWARD		 31/12/2023
31/12/2022
Restated
9,154,826
6,344,496
1,499,918
1,715,810
10,654,744
8,060,306
563,153
509,798
223,901
1,389,106
7,067,685
1,223,455
21,500
14,207
7,876,239
3,136,566
10,980
(8,615)
7,887,219
3,127,951
2,767,525
4,932,355
49,528,933
44,596,578
2,910,232
5,048,534
(142,707)
(116,179)
52,296,458
49,528,933
10,677
-
52,307,135
49,528,933

The financial statements were approved by the Board of Trustees on 21 March 2025 and were signed on its behalf by:

==> picture [73 x 37] intentionally omitted <==

............................................. K Okamoto - Trustee

The notes form part of these financial statements

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COUNTY HALL ARTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31ST DECEMBER 2023

Note
NON-CURRENT ASSETS
Intangible Assets
13
Tangible Assets
14
Heritage Assets
15
Biological Asset
16
CURRENT ASSETS
Debtors
18
Cash at bank
CREDITORS
Amount falling due within one year
19
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
PROVISION FOR LIABILITIES
NET ASSETS
FUNDS
Unrestricted funds
20
Non-controlling Interest
21
TOTAL FUNDS		 31/12/2023
31/12/2022
Restated
9,000
3,037,000
17,191,589
12,958,147
291,756
167,250
1,250,159
-
18,742,504
16,162,397
14,256,395
13,298,107
23,070,912
23,907,062
37,327,307
37,205,169
(3,762,676)
(3,849,613)
33,564,631
33,355,556
52,307,135
49,517,953
-
10,980
52,307,135
49,528,933
52,694,427
49,773,518
(387,292)
(244,585)
52,307,135
49,528,933

The financial statements were approved by the Board of Trustees on 21 March 2025 and were signed on its behalf by:

.............................................

K Okamoto - Trustee

The notes form part of these financial statements

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COUNTY HALL ARTS

CHARITY STATEMENT OF FINANCIAL POSITION AT 31ST DECEMBER 2023

Note
FIXED ASSETS
Intangible Assets
13
Tangible Assets
14
Heritage Assets
15
Investments
17
CURRENT ASSETS
Debtors
18
Cash at bank
CREDITORS
Amount falling due within one year
19
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
Unrestricted funds
TOTAL FUNDS		 31/12/2023
31/12/2022
Restated
9,000
3,037,000
10,930,444
10,805,892
291,756
167,250
4,028,017
211,747
15,259,217
14,221,889
18,528,346
14,999,847
22,955,336
23,855,769
41,483,682
38,855,616
(2,188,756)
(2,219,914)
39,294,926
36,635,702
54,554,143
50,857,591
54,554,143
50,857,591
54,554,143
50,857,591
54,554,143
50,857,591

As permitted by Charities Act 2011, the charity has elected not to present its own statement of financial activities for the period. The charity has reported a profit for the financial year ended 31 December 2023 of £ 3,696,552 (2022: £ 5,311,940)

The financial statements were approved by the Board of Trustees on 21 March 2025 and were signed on its behalf by:

==> picture [73 x 37] intentionally omitted <==

….......................................... K Okamoto – Trustee

The notes form part of these financial statements

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COUNTY HALL ARTS

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31[ST] DECEMBER 2023


Notes
Cash flows from operating activities:
Cash generated from operations
1
Net cash generated by operating activities
Cash flows from investing activities:
Purchase of fixed assets
Purchase of shares in Subsidiary accounted as
assets acquisition (Note 14, 16)
Net cash used in investing activities
Cash flows from financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at the beginning of
the reporting period
Foreign Exchange gain/loss
Cash and cash equivalents at the end of the
reporting period

The notes form part of these financial statements

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31[ST] DECEMBER 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES


Net income for the reporting period (as per the consolidated
statement of financial activities)
Adjustments for:
Decrease/(Increase) in deferred tax provision
Impairment of Intangible assets
Depreciation and amortisation charges
Provision for bad and doubtful debt
Interest received (Notional interest)
Impact of restatement prior to 2022
(Increase)/Decrease in debtors
(Decrease)/Increase in creditors
Net cash generated from operating activities		 31/12/23
£
2,767,525
10,980
1,545,607
1,888,626
(27,603)
(311,048)
-
(630,619)
(75,957)
5,167,511		 31/12/22
Restated
£
4,932,355
(8,615)
-
243,861
-
(268,066)
(2,668,654)
3,455,345
1,091,609
6,777,835

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank
Total		 At 31/12/22
£
23,907,062
23,907,062		 Cash flow
At 31/12/23
£
£
(836,150) 23,070,912
(836,150) 23,070,912

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

1. STATUTORY INFORMATION

County Hall Arts is a charitable incorporated organisation, registered as a charity in England and Wales. The charity registration number and principal address can be found within the reference and administrative details on page 1.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable incorporated organisation, which is a public benefit entity, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Going Concern

The trustees have assessed that the use of the going concern basis is appropriate. As part of their assessment, no possible events or conditions have been identified that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements, with the trustees, in particular, taking into consideration the latest available cash flow forecasts for the charity for the period to 31 March 2026 and any pressures on income. The charity has cash funds on deposit of £23,046,412 and unrestricted fund balance of 52,694,427 attributable to charity as at 31 December 2023. After making enquiries, and taking into account all other considerations, the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. As such the charity is expected to be able to meet its liabilities as they fall due in the period of at least 12 months from the date of approval of these accounts. On this basis, the trustees have concluded that the charity is a going concern.

Basis of consolidation

The consolidated financial statements comprise the financial statements of the Charity and the entities controlled by the group (its subsidiaries) as at 31 December 2023. Control is achieved when the Charity:

The Charity reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the period are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

When the company has less than a majority of the voting rights of an investee, it considers that it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Charity considers all relevant facts and circumstances in assessing whether or not the company's voting rights in an investee are sufficient to give it power, including:

Profit or loss and each component of other comprehensive income are attributed to the Charity and to the non-controlling interests.

Total comprehensive income of the subsidiaries is attributed to the Charity and to the noncontrolling interests even if this results in the non-controlling interests having a deficit balance.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with the group's accounting policies.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the group are eliminated on consolidation.

Non-controlling interests in subsidiaries are identified separately from the group's equity therein. Those interests of non-controlling shareholders that are present ownership interests entitling their holders to a proportionate share of net assets upon liquidation may initially be measured at fair value or at the noncontrolling interests' proportionate share of the fair value of the acquiree's identifiable net assets. The choice of measurement is made on an acquisition-by-acquisition basis. Other non-controlling interests are initially measured at fair value. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests' share of subsequent changes in equity. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the group's interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amount of the group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the group.

When the group loses control of a subsidiary, the gain or loss on disposal recognised in profit or loss is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), less liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting, the costs on initial recognition of an investment in an associate or a joint venture.

Business combinations

The Group classify acquisition as a business combination if it involves the acquisition of an integrated set of activities and assets capable of generating outputs. If the acquisition does not meet the definition of a business, it is treated as an asset acquisition. The Group perform optional concentration test where required to assess whether substantially all the fair value of the acquired assets is concentrated in a single asset or group of similar assets.

Under asset acquisition accounting, the asset is recognised as sum of the consideration transferred and costs directly attributable to the acquisition. The cost of acquisition is allocated to individual identifiable assets and liabilities based on their relative fair values on the acquisition date. No goodwill is recognised on acquisition. The assets acquired is depreciated over the useful life estimated on the date of acquisition.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.

- Rental income

Rental income from operating leases is recognised on a straight-line basis over the term of the lease. Initial direct costs incurred in negotiating and arranging an operating lease are taken to the statement of financial activities in the year in which they are incurred.

Rental income invoiced in advance of the period to which it relates and is shown as deferred income within liabilities on the statement of financial position until the revenue recognition criteria is satisfied.

- Interest income

Interest income is recognised when it is probable that the economic benefit will flow to the entity and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principle outstanding and at the effective

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Trading income is recognised when goods have been delivered and services supplied to customers such that risks and rewards of ownership have transferred to them.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the yearend date are noted as a commitment but not accrued as expenditure. The prize money announced for the competition is recognised as expense on payment.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. No depreciation is charged on freehold land.

Long leasehold - 50 years straight line and over the life of the lease Fixtures and fittings - 20% on cost

Biological Asset

Biological assets comprise of bearer plants related to Cork Oak and Cork. These assets have long life and takes 9-10 years for harvesting. As per FRS 102, the group has selected to apply cost model to determine the value of biological assets and its related agricultural produce.

Since these assets have long lives and takes longer for harvesting, trustees have estimated the economic useful life has been assessed as 20 years which is equals to two harvesting seasons and has been amortised over straight line basis.

Heritage assets

The heritage assets held by the charity relate to various pieces of artwork. Heritage assets have been recognised at cost. No depreciation is provided on heritage assets due to the indefinite useful life of the assets. These assets are regularly inspected for any sign of impairment due to deterioration, physical damage, other factors.

Intangible Assets:

Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, Intangible assets are carried at cost less accumulated amortisation and

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

accumulated impairment losses, if any. The intangible asset comprises of Film production costs, distribution and related rights. The cost of film production is amortised based on sales in graded manner.

The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

The management have assessed the estimated useful life of film rights based on the pattern of the expected future economic benefits and accordingly, cost of such rights is amortized the over a period over which film is expected to generate revenue.

Fixed asset investments

Fixed asset investments are stated at cost less and provision for diminution in value.

Cash at Bank and in hand

Cash at bank and 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.

Tax

The charity is exempt from tax on its charitable activities.

The subsidiary is subject to tax at the applicable rates. Tax for the year comprises current and deferred tax. Tax is recognised in the Statement of Financial Activities, except to the extent that it relates to items recognised in other comprehensive income or directly in funds.

Current or deferred tax assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity.

Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

All funds are unrestricted as at the period end date.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the statement of financial activities in the period to which they relate.

Financial Instruments

County Hall Arts only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. The charity does not acquire, or use put options, derivatives or other complex financial instruments.

Basic financial instruments are initially recognised at the transaction price unless the arrangement constitutes a financing transaction where it is recognised at the present value of the future payments discounted at market rate of interest for a similar debt instrument

If there is objective evidence of impairment, an impairment loss is recognised in the profit or less immediately. Any reversals of impairment are recognised in the SOFA immediately, to the extent that the reversals do not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

Judgements in applying accounting policies and key estimation uncertainty

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires trustees to exercise its judgement in the process of applying the group’s accounting policies.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

The critical accounting estimates or judgements relevant to the financial statements are disclosed below and relevant notes to the financial statements:

Useful Economic Lives of Tangible Fixed Assets and Biological Assets :

The useful economic lives used by the group in respect of tangible fixed assets and biological assets are set out in the respective section of accounting policies. These estimates are the best estimate based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate.

Valuation of Investment:

Trustees determines whether an impairment provision is required against the investment in subsidiaries. Management’s assessment is based on the financial position and performance of the entities, including the ability of the subsidiaries to generate profits. Basis their assessment, they are satisfied that there is no impairment required in relation to investment in subsidiaries.

Valuation of amount owned by group undertakings:

Trustees determines whether impairment provision is required against amounts due from group companies based on their ability to generate profits and cash. The trustees are satisfied that there is no impairment required in relation to amounts due from group companies.

Accounting treatment for purchase of La Tora Agroturismo SL

During the year, the charity acquired La Tora Agrotuismo SL (“La Tora”) for a total consideration of £3.8m (Euro 4.4m). This entity owns a 512ha estate located in Spain’s Caceres region which has cork mineral assets. The trustees have accounted for the purchase of La Tora as an acquisition of assets rather than as a business combination on the basis that the purchase of La Tora does not represent a business under the requirements of IFRS3. In substance, La Tora represented an entity with biological assets, land and buildings and other assets at the time of acquisition. The acquisition has been recognised as asset addition within tangible fixed assets of £2.5m (note 14) and biological assets of £1.3m (Note 16).

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COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

3. INVESTMENT INCOME

Rent received*
Interest Received
Investment Income **		 31/12/2023
31/12/2022
£
£
Restated
6,239,379
6,076,430
311,048
268,066
2,604,399
-
9,154,826
6,344,496

Rental income represents rental earned from sub-leasing agreements with the tenants by charity. *Investment income represents the revenue earned from the charity's investment in "Living” Film.

No goods or services were donated to the charity during the year.

4. TRADING INCOME

Income generated from trading activities
of subsidiaries in Spain		 31/12/2023
31/12/2022
£
£
Restated
1,499,918
1,715,810
1,499,918
1,715,810

The trading income of the Spanish subsidiaries is generated from three main sources: i. revenue from the Culinary School through courses and workshops, ii. Restaurant Income from food and beverage sales, and iii. Events Income from hosting festivals, private functions, and corporate events.

5. RAISING FUNDS

Rents payable
Rates
Legal fees
Consultancy and Design Fees		 31/12/2023 31/12/2022
£
£
Restated
429,130
244,656
12,821
-
1,012
83,233
120,190
181,909
563,153
509,798

The charity is not the owner of the properties. The charity has entered into the rental agreements with the landlord and has agreed to pay 4% of the global turnover computed in accordance with the agreement.

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FOR THE YEAR ENDED 31ST DECEMBER 2023

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

6. CHARITABLE ACTIVITIES COSTS

Direct costs
Grant
funding of
activities
(See Note 8)
Support Costs
(See Note 9)
£
£
£
Direct charitable
expenditure
11,440
198,713
13,748
Other resources
expended
-
-
7,067,685
Governance costs
-
-
21,500
11,440
198,713
7,102,933
TAXATION
Current Tax
Deferred tax
- Recognition of deferred tax assets
- Reversal of deferred tax asset
Total Deferred Tax
Tax expense included in theprofit or loss		 Direct costs
Grant
funding of
activities
(See Note 8)
Support Costs
(See Note 9)
£
£
£

11,440
198,713
13,748
-
-
7,067,685
-
-
21,500		 31/12/2023
31/12/2022
£
Restated
£
223,901
1,389,106
7,067,685
1,223,455
21,500
14,207
7,313,086
2,626,768
31/12/2023
31/12/2022
£
£
-
-
(8,615)
10,980
11,440
198,713
7,102,933
Deferred tax asset
31/12/2023
£
Deferred tax
Accelerated capital allowances
-
Tax losses carried forward
-
At 1st January 2023
Reversal during the year
Balance at 31 December 2023
The charity is exempt from corporation tax.

7. TAXATION

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

8. GRANTS PAYABLE


Direct charitable expenditure (refer note 6)
The total grants awarded during the year was as follows:

NFTS
Picture Hooks
Agricooking S.L.
Concours Prizes		 Year Ended
Year Ended
31/12/23
31/12/22
£
£
198,713
175,795
Year Ended
Year Ended
31/12/23
31/12/22
£
£
-
14,613
100,000
-
-
149,182
98,713
12,000
198,713
175,795

9. SUPPORT COSTS

Direct charitable
expenditure
(Refer Note 6)
Other resources
expended
Governance costs		 Management
Finance
Other
Governance
Totals
Costs*
£
£
£
£
£
-
-
13,478
-
13,748
1,635,780
14,412
5,417,493
-
7,067,685
-
-
-
21,500
21,500
1,635,780
14,412
5,430,971
21,500
7,102,933

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or expenses paid for the year ended 31st December 2023 (2022: nil).

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

11. STAFF COSTS

STAFF COSTS
Wages
Social Security
Pension		 Year ended
Year ended
31/12/2023
31/12/2022
£
£
1,326,912
930,238
301,776
225,654
7,092
3,008
1,635,780
1,158,900

No employees received emoluments in excess of £60,000 (2022: £60,000)

The average number of employees during the year was 73 (2022: 32)

12. IMPACT OF RESTATEMENT Group

31/12/2022 Adjustment 31/12/2022
Previously
Note presented As restated
£ £ £
Statement of Financial Activities
Investment Income 3 10,481 257,585 268,066
Trading Income 4 1,804,480 (88,670) 1,715,810
Charitable Costs 6 2,670,679 (43,911) 2,626,768
Total Funds brought forward 47,265,232 (2,668,654) 44,596,578
Non-controlling Interest (108,314) (7,865) (116,179)
Statement of financial position
Intangible assets 13 - 3,037,000 3,037,000
Heritage Assets 15 176,250 (9,000) 167,250
Tangible Assets 14 12,891,626 66,521 12,958,147
Inventory 3,028,000 (3,028,000) -
Debtors 18 15,398,033 (2,099,926) 13,298,107
Creditors 19 3,427,010 422,603 3,849,613
Unrestricted Funds 19 51,984,941 (2,456,008) 49,528,933

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COUNTY HALL ARTS Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31ST DECEMBER 2023

Charity

ty
31/12/2022 Adjustment 31/12/2022
Previously
Note presented As restated
£ £ £
Statement of financial position
Intangible assets 13 - 3,037,000 3,037,000
Heritage Assets 15 176,250 (9,000) 167,250
Inventory 3,028,000 (3,028,000) -
Debtors 18 17,206,729 (2,206,882) 14,999,847
Unrestricted Funds 53,064,473 (2,206,882) 50,857,591

Explanation of changes to previously reported account balances and equity are primary due to:

13. Intangible assets Group and Charity

COST
At 1 January 2023
Prior year restatement
At 1 January 2023 and 31 December 2023
AMORTISATIONS AND IMPAIRMENT
At 1 January 2023
Charge for year
Impairment for the year
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 01 January 2023 (Restated)		 Intangible Assets
9,000
3,028,000
3,037,000
-
-
1,482,393
1,545,607
3,028,000
9,000
3,037,000

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COUNTY HALL ARTS Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

This page has been left intentionally blank

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

14.

TANGIBLE FIXED ASSETS

14. TANGIBLE FIXED ASSETS
COST
At 01 January 2023(restated)
Prioryear restatement		 Group
Freehold
Long Leasehold
Office
Equipment
Furniture &
Fixtures
Plant and
Machinery
Vehicles
Total
£
£
£
£
£
£
£
10,023,399
2,406,910
60,101
302,912
585,329
-
13,378,651
-
9,027
-
8,396
52,554
-
69,977
At 01 January 2023
Forex impact
Additions
Purchase of La Tora Assets
Disposals
At 31 December 2023
DEPRECIATION
At 01 January 2023(restated)
Prioryear restatement		 10,023,399
2,415,937
60,101
311,308
637,883
-
13,448,628
-
(31,197)
-
(5,837)
(11,576)
-
(48,610)
-
1,652,397
72,135
125,672
228,740
-
2,078,944
216,863
2,279,371
-
-
26,316
64,911
2,587,460
-
-
-
-
-
-
10,240,262
6,316,508
132,236
431,143
881,363
64,911
18,066,423
-
304,782
58,395
30,646
93,202
-
487,026
-
-
-
707
2,749
-
3,456
At 01 January 2023
Forex impact
Charge for the year
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 01 January 2023		 -
304,782
58,395
31,353
95,951
490,481
-
(3,977)
-
(454)
(1,843)
(6,274)
-
268,438
4,192
32,446
83,950
1,601
390,627
-
569,243
62,587
63,345
178,058
1,601
874,834
10,240,262
5,747,265
69,649
367,798
703,305
63,310
17,191,589
10,023,399
2,111,155
1,706
279,955
541,932
-
12,958,147

Page 31

Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

14. TANGIBLE FIXED ASSETS - continued

Charity

COST
At 01 January 2023
Additions
At 31 December 2023
DEPRECIATION
At 01 January 2023
Charge for the year
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 01 January 2023		 Freehold
Leasehold
Music Equipment
Total
£
£
£
£
10,023,399
886,197
-
10,909,596
-
104,998
44,278
149,276
10,023,399
991,195
44,278
11,058,872
-
103,704
103,704
-
24,724
24,724
-
128,428
-
128,428
10,023,399
862,767
44,278
10,930,444
10,023,399
782,493
-
10,805,892

Page 32

Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

15.
HERITAGE ASSETS
Group and Charity
COST
At 01 January 2023
Additions
Disposals
At 31 December 2023
DEPRECIATION
At 01 January 2023
Charge for the year
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 01 January 2023		 Total
£
167,250
124,506
-
291,756
-
-
-
291,756
167,250

Heritage assets include Sculpture and paintings available for public display.

16.
BIOLOGICAL ASSETS
Group
COST
At 01 January 2023
Additions
Purchase of La Tora Assets
Disposals
At 31 December 2023
DEPRECIATION
At 01 January 2023
Charge for the year
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 01 January 2023		 Total
£
-
-
1,265,765
-
1,265,765
-
15,606
15,606
1,250,159
-

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

17. FIXED ASSET INVESTMENTS

Charity

Investment in subsidiaries

Market value
At 01st January 2023
Foreign Exchange revaluations
Additions
At 31st December 2023
Net book value
At 31st December 2023
At 01st January 2023		 £
211,747
(524)
3,816,794
4,028,017
4,028,017
211,747

The charity’s investments at the Statement of Financial Position date in the share capital of companies include the following:

==> picture [439 x 273] intentionally omitted <==

----- Start of picture text -----
Subsidiaries Nature of business Share capital
Zen Arts Ltd Specialised design Class of shares: Holding
Registered office: County Hall, Riverside activities Ordinary: 90.00%
Buildings, Westminster Bridge, London, (2022: 90%)
SE1 7PB
Company number: 07596404
Agricooking Global SL Cookery school Class of shares: Holding
Registered office: Calle Serrano, 95, Ordinary: 82.50%
Madrid 28006 (2022: 82.50%)
Company number: B42801324
Agricooking SL Cookery school Class of shares: Holding
Registered office: Calle Serrano, 95, Ordinary: 82.50%
Madrid 28006 (2022: 82.50%)
Company number: B42801324
Agricooking El Pardo SL Cookery school Class of shares: Holding
Registered office: Calle Serrano, 95, Ordinary: 82.50%
Madrid 28006 (2022: 82.50%)
Company number: B44594224
La Tora Agroturismo SL. Agriculture related Class of shares: Holding
La Tora, Valencia De Alcantara activities Ordinary: 100.00% (2022: Nil)
----- End of picture text -----

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

18. DEBTORS

Trade Debtors
Deferred tax
Other
Debtors
Amounts due
from group
undertakings		 Group
Charity
31/12/2023
31/12/2022
31/12/2023
31/12/2022
£
£
£
£
Restated
Restated
13,029,284
11,411,688
11,207,647
11,257,298
-
10,980
-
-
1,227,111
1,875439
1,469,087
1,094,921
-
-
5,851,612
2,647,628
14,256,395
13,298,107
18,528,346
14,999,847

Amounts receivable from group undertakings are unsecured and interest free. Trade Debtors include receivable from Ozu Limited (related party) £10,544,527 (2022: £10,280,322) which is unsecured and interest free and is repayable by 2030.

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade
Creditors
Taxation and
social security
Accruals and
Deferred
Income
Deferred
Income		 Group
Charity
31/12/2023
31/12/2022
31/12/2023
31/12/2022
£
£
£
£
Restated
387,663
843,899
19,321
27,677
65,557
35,412
262,493
299,047
950,011
992,364
1,906,942
1,893,190
2,359,444
1,977,938
-
-
3,762,676
3,849,613
2,188,756
2,219,914

Deferred income pertains to rental income received in advance from tenants as per agreement and student fee received for the diploma courses by subsidiaries.

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

20. CONSOLIDATED MOVEMENT IN FUNDS

UNRESTRICTED
FUNDS
General fund
Designated funds
Sub-total
Non-controlling
interest
Total Funds		 At
1.1.2023
Net
movement
in funds
Transfer
between
funds
Foreign
exchange
translation
reserve
At
31.12.2023
£
£
£
£
£
Restated
35,273,518
2,910,232
(10,630,000)
10,677
27,564,427
14,500,000
-
10,630,000
25,130,000
49,773,518
2,910,232
-
10,677
52,694,427
(244,585)
(142,707)
-
-
(387,292)
49,528,933
2,767,525
-
10,677
52,307,135

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Non-controlling interests
Total Funds		 Incoming
resources
Resources
expended
Movement
in funds
£
£
£
10,159,502 7,249,270
2,910,232
495,242
637,949
(142,707)
10,654,744
7,887,219
2,767,525

Purpose of funds

Designated funds are earmarked as such by the recommendation of the trustees for use in performing future charitable activities. As of 31 December 2023, funds have been designated for future charitable activities including various film projects, sponsorships & concours prizes to be made by the charity and for the establishment of an arts & culture centre and new culinary art schools. The trustees believe these earmarked funds to total £25,130,000.

21. NON-CONTROLLING INTERESTS

NON-CONTROLLING INTERESTS
On acquisition
Share of results
Closing non-controlling interests		 31/12/2023
31/12/2022
£
£
Restated
23,257
23,257
(410,549)
(267,842)
(387,292)
(244,585)

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

22. RELATED PARTY DISCLOSURES

Group :

At the financial reporting date an amount of £10,544,528 (2022: £10,280,322) was receivable from Ozu Ltd, a company connected to County Hall Arts through the trustees' involvement in the company.

The benefit of the repayment of the loan was donated to the charity by a third party via a deed of assignment in 2020. The loan was originally provided as interest free and unsecured by the third party to its subsidiary company, OZU Ltd at the time.

During the year, the transactions with Ozu Limited amounted to £229,665 (2022: 225,641), a company connected to County Hall Arts through the trustee’s involvement in the company towards payment of rental charges. The charity also made advance payments towards the rent amounting to £175,160 (2022: Nil) which is outstanding as at year end.

During the year County Hall Arts received no donations from related parties (2022: nil).

Charity:

At the financial reporting date an amount of £3,164,731 (2022: £2,647,628) was receivable from Agricooking SL and £2,686,881 was receivable from Agricooking El Pardo, a company forming part of the group. The loan was provided at the market rate of interest.

At the financial reporting date an amount of £10,544,528 (2022: £10,280,322) was receivable from Ozu Ltd, a company connected to County Hall Arts through the trustees' involvement in the company.

The charity has given sponsorship to the subsidiaries during the year as follows: Agricooking SL: £544,585 (2022: nil)

Agricooking El Pardo: £562,455 (2022: nil)

During the year, the charity has not received any donations from related parties (2022: nil).

Charity has taken exemption from disclosing the transactions with wholly owned subsidiaries as per provisions of para 33.1A of FRS 102.

23. LEASING AGREEMENTS

The charity has a rental commitment to Shirayama Shokusan Company Limited, the landlord of the property allocated to County Hall Arts. Under the agreement, the charity is obligated to pay 4% of the global turnover which is £429,130 (2022: £318,750) and contingent upon the revenue generated by the group.

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Docusign Envelope ID: 5A0744D5-757D-40EA-B4B7-9F6C422F2A23

COUNTY HALL ARTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31ST DECEMBER 2023

24. CAPITAL COMMITMENTS

Below are other commitments related to art works for which the company has not created any provision as at 31 December 2023:

31/12/2023
£
Art work creation prizes
Symphony San Sebastian 173,000
Sculpture Concours 43,000
Purchase of Sculpture Concours 18,476

25. CONTINGENT LIABILITY

The Group may be liable for penalties under Spanish law due to the late filing of financial statements of La Tora Agroturismo SL for the past three years, with a potential penalty of £1,040 (€1,200) per year, totalling £3,123 (€3,600).

As of the reporting date, no formal demand has been received from the Spanish authorities. However, based on the applicable regulations, there is a possible obligation that could result in an outflow of economic resources. The final assessment and enforceability of the penalty remain uncertain.

26. EVENTS AFTER REPORTING DATE

A receivable balance of £12m from Ozu Limited was assigned to County Hall Arts in 2020, with repayment originally scheduled for 2030. Under the current terms, the loan is unsecured, interestfree, and not due for repayment until 2030. On 6th December 2024, the term of the agreement is amended the repayment terms to include the annual repayments to £0.5m starting from 31 December 2024.

The charity established a new subsidiary, County Hall Arts Pottery Limited, with its registered office at Riverside Building, County Hall, Westminster Bridge Road, London, England, SE1 7PB, on 17th February 2024. The subsidiary will primarily operate a public gallery and a pottery studio school in line with the charitable objectives of County Hall Arts.

The trustees have approved the conversion of the £3.03m (EUR 3.5m) loan to Agricooking SL and the £2.6m (EUR 3m) loan to Agricooking EL Pardo into equity as an additional investment on 8 October 2024.

Page 38