Report and Financial Statements for the year ended 31 March 2025
for
Arts Factory Ltd
Company registration number 02491685 Charity number 1178430
Arts Factory Ltd
Contents of the Financial Statements for the year ended 31 March 2025
| Page | |
|---|---|
| Charity and Company Information | 1 |
| Report of the Trustees | 2 - 4 |
| Independent Examiners' Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the financial statements | 8 - 12 |
Arts Factory Ltd
Charity Information for the year ended 31 March 2025
| Directors and Trustees | Mr M Bryan (Chair) | |
|---|---|---|
| Ms A Evans | ||
| Mr B Triggs | ||
| Mr L Moss | ||
| Mr R Lines | resigned 12 February 2025 | |
| Mr S Cranston | appointed 22 April 2024 | |
| Ms M Evans | appointed 22 April 2024 | |
| Charity Number | 1178430 | |
| Company Number | 2491685 | |
| Registered Office | Trerhondda | |
| The Strand | ||
| Ferndale | ||
| Rhondda Cynon Taff | ||
| CF43 4LY | ||
| Accountants and Independent | Arian Accountants Limited | |
| Examiners | 19 Sundew Close | |
| Cardiff | ||
| CF5 2SE | ||
| Bankers | Barclays Bank plc |
Page 1
Arts Factory Ltd
Report of the Trustees for the year ended 31 March 2025
The trustees are pleased to present their annual directors' report together with the financial statements of the charity for the year ended 31 March 2025 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes. 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 2015).
Objectives and activities
Objectives
The objects of the charity are to provide or assist in the provision of social welfare facilities for recreation or other leisure time occupation by individuals who have need of such facilities by reason of their youth, age, infirmity or disability, financial hardship, or social circumstances with the object of improving their conditions of life.
Activities
The charity operates a Health and Wellbeing Centre at Trerhondda Chapel in the town centre of Ferndale in the upper Rhondda Fach. The centre runs various courses, clubs, and groups for beneficiaries as well as several social business activities that both generate income and allow us to offer opportunities to people to train and upskill themselves through volunteering.
It also runs a garden project in partnership with Sunrise Community Garden called the Rhondda Fach Community Garden which allows volunteers to upskill themselves and improve their mental health and wellbeing in the outdoors.
Maerdy Community Centre is also operated by Arts Factory as a community resource. It is a facility for both the community and local businesses and will help regenerate the top of the Rhondda Fach. There are volunteer opportunities, community activities, a café and rental space available for long and short-term tenants.
The charity relies on earned income, grants, a service level agreement, and donations to cover its operating costs.
The Trustees endeavour to encourage all members of the community to engage in our activities and programmes and this should enable them to change their lives.
Achievements
Achievements and highlights of the year for Arts Factory include:
-
Two volunteer awards ceremonies were held, one at our summer BBQ and one at our Christmas Party, to recognise the good work they do for Arts Factory.
-
We celebrated World Mental Health Day & International Women’s Day within our Health & Wellbeing groups.
-
We had a CCTV system fitted at Maerdy to enhance the safety of staff, volunteers and the building.
-
Our annual volunteer BBQ was held at Maerdy and this year we also held a Halloween Volunteer Ball.
-
Maerdy is now a registered ‘Safe Space’.
-
We held a Welsh celebration event in Ferndale to celebrate the Eisteddfod.
-
Volunteers put up Christmas trees and lights along the main street in Maerdy. They held a community carol concert in Maerdy as well as a Christmas town centre event in Ferndale.
-
We have worked with partner organisations with the aim of making Maerdy Community Centre ‘green’ to both help save costs and improve the environment.
Page 2
Arts Factory Ltd
Report of the Trustees (continued)
-
The Rhondda Fach Community Garden had a ‘clean up teambuilding day’ for staff and volunteers to clear additional land given to us by our landlord.
-
Our CEO has been working with Cranfield Trust to develop a new business plan and BITC around building enterprise in the Valleys.
-
We were instrumental in planning and delivering Operation Bang (Fireworks) in partnership with Ferndale Community School and YEPS.
-
We held a staff planning session in January 2025 which set clear objectives for the coming year.
-
We operated Warm Hubs during the year which were well attended, we also gave out warm packs to people who needed them.
-
We delivered Christmas Hampers to local primary schools for families that were in need.
Financial review
Members of the management committee meet quarterly to review the financial position of the charity. As a result of this information they are confident in realistically reviewing and adjusting budgets. During the year funding continued to be received for the charity's main activities. The Lottery supported several of the charity’s projects with funds totalling £37,714, WCVA (£13,717) and the Shared Prosperity Fund (£31,703) also continued their support. The charity also received a number of other grants and donations.
It is the policy of the charity that unrestricted liquid reserves held by the charity should be at least £30,000, representing approximately a quarter of ongoing annual overhead costs. At this level the trustees consider that they would be able to accommodate any fundamental funding changes. At the balance sheet date the charity's unrestricted general income fund reserves exceeded that amount, at £70,310. As always, future funding of the Arts Factory is an ongoing dialogue with all our funders.
Structure, governance and management
The charity is constituted as a company limited by guarantee and is also a registered charity. The directors serve also as the trustees of the charity. Reference and administrative details are shown in the company information page. The directors have the power to appoint additional trustees.
Trustees' responsibilities in relation to the financial statements
The charity trustees (who are also the directors of the Arts Factory Ltd for the purposes of company law) are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year 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 that period.
In preparing the financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
Page 3
Arts Factory Ltd
Report of the Trustees (continued)
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that 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 Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
In so far as the trustees are aware:
- there is no relevant information of which the charity's Independent Examiner is unaware; and
• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant information and to establish that the Independent Examiner is aware of that information.
Approval by order of the board of trustees
M Bryan
Director
Page 4
Independent Examiner's Report to the Trustees of Arts Factory Ltd ("the Company")
I report to the charity trustees on my examination of the accounts of Arts Factory Ltd for the year ended 31 March 2025.
Responsibilities and basis of report
As the charity's trustees of the Company (and also it's 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 the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, 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.
Andrea L Davies FCA
4 August 2025
Chartered Accountant
Arian Accountants Limited
19 Sundew Close Cardiff CF5 2SE
Page 5
Arts Factory Ltd
Statement of Financial Activities (incorporating the income and expenditure account) for the year ended 31 March 2025
| Note Income Donations and legacies 3 Income from charitable activities: Arts Factory operations 4 Investment income Total income Expenditure Expenditure on charitable activities: Arts Factory operations 5 Total expenditure Net (deficit)/income and net movement in funds for the year Reconciliation of funds Total funds brought forward Transfer between funds Total funds carried forward |
Restricted Funds £ - 197,187 - |
Unrestricted Funds £ 9,714 162,702 1,900 174,316 188,692 188,692 (14,376) 365,129 (124) 350,629 |
12 months to 31 March 2025 Total £ 9,714 359,889 1,900 371,503 437,494 437,494 (65,991) 459,745 - 393,754 |
15 months to 31 March 2024 Total £ 11,364 996,765 2,007 |
|---|---|---|---|---|
| 197,187 | 1,010,136 | |||
| 248,802 | 964,027 | |||
| 248,802 | 964,027 | |||
| (51,615) 94,616 124 |
46,109 413,636 - |
|||
| 43,125 | 459,745 |
The Statement of Financial Activities includes all gains and losses in the period and therefore a statement of total recognised gains and losses has not been prepared.
All income and expenditure derive from continuing activities.
The notes on pages 8 to 12 form part of these financial statements
Page 6
Arts Factory Ltd
Balance Sheet As at 31 March 2025
| Note Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at Bank and in hand Current Liabilities Creditors: Amounts falling due within one year 10 Net current (liabilities)/assets Total assets less current liabilities Creditors: Amounts falling due after more than one year 11 Net assets The funds of the charity: Unrestricted income funds Designated fund 12 General income fund Restricted income funds 13 Total charity funds |
£ £ 280,319 14,975 145,623 160,598 (24,625) 135,973 416,292 (22,538) 393,754 £ £ 280,319 70,310 350,629 43,125 393,754 2025 |
£ £ 280,466 32,209 201,909 234,118 (22,931) 211,187 491,653 (31,908) 459,745 £ £ 280,466 84,663 365,129 94,616 459,745 2024 |
£ £ 280,466 32,209 201,909 234,118 (22,931) 211,187 491,653 (31,908) 459,745 £ £ 280,466 84,663 365,129 94,616 459,745 2024 |
|---|---|---|---|
| 459,745 |
The directors consider that the company is entitled to exemption from the requirement to have an audit under the provisions of s.477 of the Companies Act 2006. Members have not required the company, under s.476 of the Companies Act 2006, to obtain an audit for the year ended 31 March 2025.
The directors acknowledge their responsibilities for:
(a) ensuring that the company keeps accounting records which comply with Sections 386 &387 of the Companies Act 2006 and
(b) preparing financial statements which give a true and fair view of the state of the affairs of the company as at 31 March 2025 and of its surplus or deficit for the year then ended in accordance with the requirements of ss.394 & 395, and which otherwise comply with the requirements of the Act, relating to the financial statements, so far as applicable to the company.
These financial statements, which have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 applicable to small companies were approved by the Trustees on 4 August 2025 and signed on its behalf. M Bryan
……………………..
M Bryan
Director
The notes on pages 8 to 12 form part of these financial statements
Page 7
Arts Factory Ltd
Notes to the financial statements for the year ended 31 March 2025
Accounting policies
Basis of preparation
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.
Arts Factory Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
Income
(i) donations and similar income
Donations and similar income are recognised when received.
(ii) revenue grants
Revenue grants are generally recognised in the period in which they are received.
(iii) capital grants
Capital grants are recognised as the corresponding expense is incurred.
(iv) other income
All other income is recognised in the period to which it relates.
Expenditure and irrecoverable VAT
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:
• Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
- Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the strategic management of the charity.
Tangible fixed assets
Fixed assets are generally stated in the balance sheet at cost less depreciation.
Depreciation is provided in order to write off the cost of fixed assets over their estimated useful lives in equal annual instalments, as follows :
| Motor Vehicles | 25% on cost |
|---|---|
| Computer equipment | 25% on cost |
| Tools and equipment | 25% on cost |
Pension costs
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised in the statement of financial activities when due.
Page 8
Arts Factory Ltd
Notes to the financial statements (continued) for the year ended 31 March 2025
1 Accounting policies cont'd
Fund accounting
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor.
2 Legal status
The Arts Factory is a company limited by guarantee and has no share capital.
3 Donations and legacies
| Cash Donations Income from charitable activities Sales income Graphic design Room rental Book Factory Café Other sundry income Support from sponsors and local authorities: Social Services Learning Disibility SLA Comic Relief cost of living grant Welsh Government Grant Rhondda Cynon Taff Council grants WCVA grants Lottery Fund Shared Prosperity Fund Other grants received Analysis of expenditure on charitable activities On charitable activities: Purchases and other direct costs Employee costs Premises costs General office expenses Interest paid On governance costs: Accountancy fees Other professional costs |
Restricted £ - - Restricted £ - - - - - - 64,389 - - 5,600 13,717 37,714 31,703 44,064 197,187 Restricted £ 14,323 188,753 2,759 42,717 - 248,552 - 250 248,802 |
Unrestricted £ 9,714 |
2025 £ 9,714 |
2024 £ 11,364 |
|---|---|---|---|---|
| 9,714 | 9,714 | 11,364 | ||
| Unrestricted £ 100,209 37,126 7,423 2,078 866 |
2025 £ 100,209 37,126 7,423 2,078 866 |
2024 £ 229,670 57,991 13,652 - 2835 |
||
| 147,702 - - - - - - - 15,000 |
147,702 64,389 - - 5,600 13,717 37,714 31,703 59,064 |
304,148 62,411 18,385 259,119 56,607 41,394 165,102 38,626 50,973 |
||
| 162,702 | 359,889 | 996,765 | ||
| Unrestricted £ 61,398 44,780 59,782 12,235 2,848 |
2025 £ 75,721 233,533 62,541 54,952 2,848 |
2024 £ 510,402 268,539 122,227 49,198 4,324 |
||
| 181,043 2,925 4,724 |
429,595 2,925 4,974 |
954,690 1,950 7,387 |
||
| 188,692 | 437,494 | 964,027 |
4 Income from charitable activities
5 Analysis of expenditure on charitable activities
Page 9
Arts Factory Ltd
Notes to the financial statements (continued) for the year ended 31 March 2025
6 Net income for the period
The net income for the period/( year) is stated after charging:
| Depreciation of tangible fixed assets: owned by the charity Accountancy fees |
2025 £ 1,897 2,925 |
2024 £ 1,824 1,950 |
|---|---|---|
- 7 Staffing and trustee remuneration
| Staff costs Wages and salaries Social Security costs Pension costs |
2025 £ 209,204 12,151 9,538 230,893 |
2024 £ 238,960 13,991 10,700 |
|---|---|---|
| 263,651 |
During the period the average number of employees was 12 (2024: 10). No employee received employee benefits in excess of £60,000 (2024: Nil).
No remuneration was paid to any trustees during the period nor any expenses reimbursed (2024: £Nil).
| 8 Tangible fixed assets COST As at 1 April 2024 Additions Disposals At 31 March 2025 DEPRECIATION As at 1 April 2024 Charge for period On Disposals At 31 March 2025 NET BOOK VALUE At 31 March 2025 At 31 March 2024 |
Land & buildings £ 399,703 - - 399,703 121,153 - - 121,153 278,550 278,550 |
Tools & equipment £ 2,567 1,750 - 4,317 2,083 1,079 - 3,162 1,155 484 |
Motor vehicles £ 7,350 - - 7,350 7,350 - - 7,350 - - |
Computer equipment £ 109,089 - - 109,089 107,657 818 - 108,475 614 1,432 |
Total |
|---|---|---|---|---|---|
| £ 518,709 1,750 - |
|||||
| 520,459 | |||||
| 238,243 1,897 - |
|||||
| 240,140 | |||||
| 280,319 | |||||
| 280,466 |
Page 10
Arts Factory Ltd
Notes to the financial statements (continued) for the year ended 31 March 2025
9 Debtors
| Trade debtors Other debtors and prepayments Creditors: amounts falling due within one year Bank loans and overdrafts Trade creditors Taxes and social security Other creditors Accruals & deferred income Creditors: amounts falling due after more than one year Bank loans Other creditors |
2025 £ 13,635 1,340 14,975 2025 £ 8,000 9,774 3,067 1,534 2,250 24,625 2025 £ 22,538 - 22,538 |
2024 £ 24,626 7,583 |
|---|---|---|
| 32,209 | ||
| 2024 £ 6,500 9,745 3,169 1,267 2,250 |
||
| 22,931 | ||
| 2024 £ 31,908 - |
||
| 31,908 |
10 Creditors: amounts falling due within one year
11 Creditors: amounts falling due after more than one year
12 Designated funds
| Tangible Fixed Assets fund | Balance at New beginning designations of year £ £ 280,466 1,750 |
Utilised/ released £ (1,897) |
Transfer t/f capital grant funds £ - |
Balance at end of year £ 280,319 |
|---|---|---|---|---|
The tangible fixed assets fund represents the net book value of the charity's unrestricted tangible fixed assets. The fund has been created to recognise the fact that the tangible fixed assets are required for the day to day operations of the charity and are not available for other purposes or for general reserves.
Page 11
Arts Factory Ltd
Notes to the financial statements (continued) for the year ended 31 March 2025
13 Restricted income funds
| Social Services Learning Disability SLA CFW Principality MCC retrofit fund Friends of the Earth grant fund Lottery Fund:Bringing Villages together Lottery Fund: Cost of Living grant Lottery Fund: Youth Pen y Cymoedd Windfarm Grant RCT: Dementia grant RCT: Winter Hardship Grant WCVA: Volunteering Wales Grant Shared Prosperity Fund Trivallis cost of living grant Other small grants Total funds |
Balance at beginning of period £ - - - 4,637 49,187 20,000 - - - 3,997 14,149 415 2,231 94,616 |
Income in period £ 64,389 13,464 7,600 37,714 - - 13,000 2,000 4,000 13,717 31,703 - 9,600 197,187 |
Expenditure in period £ 64,389 - 3,240 38,203 49,231 3,242 10,413 1,998 4,058 17,714 45,878 413 10,023 248,802 |
Transfer t/f unrestricted funds £ - - - - 44 - - (2) 58 - 26 (2) - 124 |
Balance at end of period £ - 13,464 4,360 4,148 - 16,758 2,587 - - - - - 1,808 |
|---|---|---|---|---|---|
| 43,125 |
14 Analysis of net assets between funds
| Unrestricted funds Designated funds General income fund Restricted income funds Total funds |
Tangible fixed assets £ 280,319 - - 280,319 |
Net current assets £ - 92,848 43,125 135,973 |
Long term liabilities £ - (22,538) - (22,538) |
Total £ 280,319 70,310 43,125 |
|---|---|---|---|---|
| 393,754 |
Page 12