OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-12-31-accounts

TRUSTEES REPORT & FINANCIAL STATEMENTS

FOR THE YEAR ENDING 31 DECEMBER 2021 Charity Registration Number: 1182328 (England & Wales)

CONTENTS

Trustees’ Report
Objectives & Activities 3
Financial Review 7
Plans for Future Periods 9
Structure, Governance & Management 10
Trustees’ Responsibilities Statement 11
Reference & Administration 12
Independent Auditor’s Report 14
Financial Statements 21

SAATCHI GALLERY I Page 2

OBJECTIVES & ACTIVITIES

Since 1985, Saatchi Gallery has provided an innovative platform for contemporary art, presenting work by largely unseen young artists or by international artists whose work has been rarely exhibited in the UK. The Gallery has attracted millions of visitors to its London premises, hosts thousands of school & community visitors each year and has built a social media following of millions worldwide.

It would be impossible to discuss 2021 without addressing the extraordinary impact of the COVID-19 pandemic and the extensive closures that followed due to government restrictions, this being our third financial year of being impacted by COVID-19. During August 2020 we re-opened for the first time with a series of small exhibitions but were forced to close again a few months later – this government enforced closure lasted until June 2021 when we re-opened with our critically acclaimed JR: CHRONICLES main exhibition. We are pleased to report that since then, we have remained open and continued to provide an exciting and diverse mix of programming and events receiving widespread public and critical praise.

During the entire period of closures (from March 2020 to August 2020, and November 2020 to June 2021) we worked hard to meet our learning and charity objectives by moving them online to ensure we continued to deliver a wide range of activities to community groups and schools.

Key virtual initiatives included the extremely popular #SaatchiTakeover and Saatchi Art Club which focused on developing a creative platform for artists and audiences to engage online. Through Saatchi Takeover we hosted a series of weekly art challenges and artist talks and reached millions of social media followers worldwide. Through Saatchi Art Club our Learning Department kept delivering virtual activities to students and community groups. Since re-opening in June 2021, we have returned to on site activations and digital activations enabling us to maintain our core educational goals.

On-site workshop with community group Accumulate were participants enjoyed a hands-on photography workshop and learned about portraiture through the work of JR.

SAATCHI GALLERY I Page 3

OBJECTIVES & ACTIVITIES

The Gallery’s objective is to provide access to contemporary art to all and share with our local, regional and national communities the opportunity to explore, learn and engage with art. In 2019, Saatchi Gallery became a registered charity in order to further expand our commitment to supporting living artists and further expand access to contemporary art. Since then, the Gallery’s funding has come from our corporate patrons, sponsors & donors, and our commercial activities.

The core activity of Saatchi Gallery, over its 38-year history, focus on offering unwavering support to emerging contemporary artists, with a strong commitment to supporting young British artists. Saatchi Gallery has an extremely high recognition factor amongst the British population and a strong reputation overseas, as supported by our highly popular online and social media following. For over 12 years in its current Chelsea premises, Saatchi Gallery has become a pivotal hub for local, city, national and international audiences, welcoming visitors of all ages to engage with contemporary art. We have an especially strong appeal to visitors between the ages of 16-30. By diversifying our annual programming, to include an exhibition such as Tutankhamun: Treasures of he Golden Pharaoh, we were able to reach a new senior and family demographic of visitors with whom we aim to engage on an on-going basis through our future exhibitions.

The Gallery is committed to developing opportunities for deeper engagement with schools, colleges, and universities by providing free or subsidised access to our exhibitions as well as talks, tours and creative workshops. We are proud partners of a wide variety of community groups from across the United Kingdom, typically delivering over 200 dedicated workshops a year to further expand access to contemporary art and creativity to vulnerable and hard-to-reach audiences. The Gallery’s learning programmes are designed to reveal the possibilities of artistic expression, encourage fresh thought, and stimulate innovation in visitors of all ages and background.

Saatchi Gallery therefore complies fully with the Charity Commission’s guidance on public benefit and its legal obligations.

The Charity’s strategy for achieving its stated aims and objectives is to maximise income from multiple revenue streams in order to invest in exhibition programming, educational projects and outreach initiatives.

The Charity will generate revenue from the following activities:

SAATCHI GALLERY I Page 4

OBJECTIVES & ACTIVITIES

The Charity measures the success of its programming and educational initiatives by recording attendance figures and using varying methods of feedback to assess the demographic profiles of its audiences. Qualitatively, the Gallery also measures the depth of engagement and satisfaction levels amongst visitors and participants of its learning programmes. Revenue, margin, and profit contribution for all revenue streams are monitored closely.

During the pandemic period, only a year after the formation of the charity, the focus was on dealing with the huge impacts of the COVID-19 pandemic and creating a viable and stable future for Saatchi Gallery postpandemic, this continues to be a core priority. The organisation consolidated its activities and streamlined its teams, including the Senior Management team and placed the majority of the team on furlough for parts of the year 2020 and 2021. Saatchi Gallery also took this opportunity to review the external contracts and to mothball certain areas of the building prior to their re-opening in June 2021 as soon as government restrictions were relaxed. Strategies for each organisational department were reviewed and aligned to the strategic goals of the Charity in accordance with the expected impact of the COVID-19 pandemic.

The year 2021, only our third of full operations as a charitable entity, involved huge disruption and residual impacts from it are likely to be felt for the next four years at least. The COVID-19 pandemic has led to not just seismic changes in the way the industry operates but has had a huge impact on the art world, artists, and all associated stakeholders. The pandemic, with associated economic issues, is likely to lead to long lasting structural changes to the industry. However, Saatchi Gallery, as a result of its funding structure; swift action in controlling and cutting costs; extensive and wide-ranging stakeholder support; strong brand name; and a business model that does not rely on any one funding stream extensively, is uniquely positioned to thrive in the post-pandemic world. It is likely 2022 and parts of 2023 will be again heavily disrupted, but Saatchi Gallery has a pipeline of exhibitions and is already seeing the impacts of appointments to the team made in 2020 and 2021.

Fundraising is a revenue stream utilised by Saatchi Gallery, both from organisations and individuals. Small scale fundraising takes place through donations in the premises and online, the average size donation is £4. Large scale fundraising, primarily targeting businesses and organisations, it is led by our senior management team with all aspects handled internally.

In-house policies and controls are used rather than external regulation schemes. Fundraising initiatives are discussed and reviewed on a weekly basis by Saatchi Gallery’s senior management team. Saatchi Gallery has never received any complaints regarding its fundraising activities and does not target members of the public or vulnerable parties for any sizeable donations.

SAATCHI GALLERY I Page 5

JR.. CHRONICLES (2027) gm •v•vr

FINANCIAL REVIEW

The end of year Balance Sheet reflects the nature of the business operations and the significant and ongoing impact of COVID-19 on Saatchi Gallery. All cash reserves are held in Saatchi Gallery’s current account, this policy is reviewed on an annual basis by the Trustees. The impact of COVID-19 on Saatchi Gallery and the industry has been well publicised and is clear from the financial performance of the organisation which has resulted from the premises being closed for the majority of 2020 and half of 2021. Further disruption to 2022 revenue has been experienced and will continue to impact through 2022, Saatchi Gallery responded swiftly in reducing costs, measures included:

We scheduled weekly COVID-19 meetings to monitor the impact of the global pandemic and discuss the financial implications of government regulations. COVID-19 and the economic recovery are seen as the key risk to Saatchi Gallery’s financial future, but plans have been put in place to ensure the organisation can emerge from the pandemic stronger than ever.

Reserves Policy

A reserves policy has been considered and will be updated after the pandemic, once the accumulated deficits of £5.3 million have been erased, which is the initial objective.

Going Concern

As expected, the group has incurred significant losses in the year, due to the significant impact of the ongoing Coronavirus pandemic and resulting government enforced closures from March 2020 onwards. Some restrictions have continued into 2022 and international tourism continues to be heavily affected. The losses generated have resulted in a net liabilities position at the balance sheet date of £5,296,100. The group has reduced costs wherever possible, made redundancies, deferred payments, entered into re-negotiations with key suppliers and used relevant government support schemes such as the Coronavirus Job Retention Scheme. It is also in negotiations with the landlord and is expecting to re-gear and extend the lease (which represents the largest single cost to the group) whilst restructuring the historic liabilities from March 2020.

The group will continue to need stakeholder support during the recovery phase as lockdown is eased and normal operations can resume. However, current projections for 2022 onwards show a strong calendar of world class exhibitions which the organisation is confident will achieve strong public interest and allow a return to pre-Covid financial performance. The trustees note the material uncertainty arising as a result of the factors referred to above but have a reasonable expectation that the group will continue operating for the foreseeable future and at least twelve months from the date of approval of the financial statements. SAATCHI GALLERY I Page 7

Chelsea Flower Show commission by artist Dan Rawlings (2021)

----- Start of picture text -----
SAATCHI GALLERY I Page 8
----- End of picture text -----

PLANS FOR FUTURE PERIODS

Fundraising objectives and activities were significantly impacted by both the closures of the Gallery and the budget cuts made by key commercial brands in response to COVID-19. In 2021, the Gallery maintained close communication with current patrons and focused on these key activities:

In 2021, the Gallery confirmed the renewals of key corporate patrons and ensured patrons enjoyed virtual benefits while the Gallery remained closed, including: online artist talks, virtual workshops and dedicated social media activations. The Gallery confirmed art foundation Art Explora as headline supporter for the muchdelayed JR: Chronicles exhibition and developed new strategies to secure exhibition sponsorships.

Our key corporate patrons in 2021 included: M&C Saatchi (Principal Patron), CHANEL, Fondation Carmignac, Eversheds-Sutherland, Euronews, Champagne Pommery and Robert Walters Group.

SAATCHI GALLERY I Page 9

STRUCTURE, GOVERNANCE & MANAGEMENT

Saatchi Gallery continues to adhere to its governing documents.

No new trustees are envisaged at the time of writing nor any changes to the Trustee Board. However, should that change the senior management team would work with the Trustees to form a Recruitment Panel that would oversee the recruitment process. A detailed induction and training program would then be implemented by the senior management team. This induction program would mirror the existing program of ensuring Trustees are fully up to date on the organisation’s status, financial performance, and charitable goals.

As a result of COVID-19, the Trustees have implemented a pay freeze on all salary levels, excluding any that are required to increase due to statutory regulations. This policy is under ad hoc review due to the increases in wage inflation. All pay levels are in line with market rates with any senior management pay change being subject to approval by the Trustees.

The charitable entity owns 100% of a subsidiary called Saatchi Gallery, London Limited. No other subsidiaries exist.

SAATCHI GALLERY I Page 10

TRUSTEES’ RESPONSIBILITIES STATEMENT

The Trustees of The Saatchi Gallery, London 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), including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

Charity law requires the trustees to prepare financial statements for each year that give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources of the charitable group for that period. In preparing the financial statements, the trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and the group, to enable them to ensure that the financial statements comply with the Charities Act 2011. 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 charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Johan Eliasch, Trustee, visits a school workshop exploring the JR: Chronicles exhibition.

SAATCHI GALLERY I Page 11

REFERENCE & ADMINISTRATION

Registered Address Saatchi Gallery Duke of York’s HQ King’s Road London SW3 4RY United Kingdom Charity registration number 1182328 Bankers HSBC UK Bank plc 1 Centenary Square Birmingham, B1 1HQ Solicitors Bryan Cave Leighton Paisner LLP Adelaide House London EC4R 9HA Auditors Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

The charity trustees delegated daily management of the charity to Paul Foster (Gallery Director). Contact Details : paul@saatchigallery.com

Saatchi Gallery has two Trustees, Johan Eliasch, who acts as Chairman, and Maynard McLaren, both of whom have been Trustees since the charity was formed. Neither receive any remuneration for their time.

The Trustees’ Report was approved and authorised by the trustees on 1 February 2022 and signed on their behalf by:

Johan Eliasch Trustee

SAATCHI GALLERY I Page 12

London Grads Now II artist Ronan Porter (2021)

----- Start of picture text -----
London Grads Now, 2020
----- End of picture text -----

SAATCHI GALLERY I Page 13

INDEPENDENT AUDITOR’S REPORT

Qualified opinion on financial statements

We have audited the financial statements of The Saatchi Gallery, London (the ’charity’) for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charity Balance Sheets and Statement of Cash Flows, and notes to the financial statements including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matters described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

With respect to stock having a carrying amount of £120,090 the audit evidence available to us was limited because we were unable to observe the counting of the physical stock as at 31 December 2021. Owing to the nature of the company’s records, we were unable to obtain sufficient appropriate audit evidence regarding the stock quantities by using other audit procedures.

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 company 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.

Material uncertainty related to going concern

The group has incurred a loss for the year ended 31 December 2021 of £1,817,153 and has incurred further losses subsequent to the year end. The group’s results and activities have been significantly impacted by the ongoing Coronavirus pandemic and resulting government enforced closures from March 2020 onwards.

SAATCHI GALLERY I Page 14

INDEPENDENT AUDITOR’S REPORT

The losses generated have resulted in a net liabilities position at the balance sheet date of £5,296,100. The group has reduced costs and deferred payments wherever possible and also taken advantage of relevant government assistance programmes such as the Coronavirus Job Retention Scheme. The charity is also in advanced negotiations with the landlord to re-gear and extend the lease (which represents the largest single cost to the group) whilst reducing and restructuring the historic liabilities from March 2020. Whilst there can be no certainty in this respect the trustees are confident that these negotiations will be able to be successfully concluded.

The group will continue to need stakeholder support during the ongoing process of recovery from the effects of the pandemic.

These factors, together with the other matters referred to in note 1.2 to the financial statements, indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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

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

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. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

SAATCHI GALLERY I Page 15

INDEPENDENT AUDITOR’S REPORT

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires 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 group and parent 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 group or parent charity or to cease operations, or have no realistic alternative but to do so.

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 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.

SAATCHI GALLERY I Page 16

INDEPENDENT AUDITOR’S REPORT

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

SAATCHI GALLERY I Page 17

INDEPENDENT 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.

SAATCHI GALLERY I Page 18

INDEPENDENT AUDITOR’S REPORT

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. 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 any party other than the charity and charity’s trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Date: 26 September 2022

Senior Statutory Auditor

for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

The Shipping Building The Old Vinyl Factory Blyth Road Hayes London UB3 1HA

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

SAATCHI GALLERY I Page 19

Work presented by artist Tom Parker for London Grads Now II (2021)

London Grads Now., 2020

SAATCHI GALLERY I Page 20

FINANCIAL STATEMENTS

The Saatchi Gallery, London

Consolidated Statement of Financial Activities For the year ended 31 December 2021

Note
Income from:
Charitable activities:
Exhibitions
Donations and legacies
3
Other trading activities
4
Total income
Expenditure on:
Charitable activities
Raising funds:
Other trading activities
Total resources expended
5
Net movement in funds
Reconciliation of funds
Total funds brought forward at 1 January 2021
Total funds carried forward at 31 December 2021		 Unrestricted
Funds
2021
£
1,879,084
106,199
905,615
2,890,898
3,694,906
1,013,145
4,708,051
(1,817,153)
(3,478,947)
(5,296,100)		 Unrestricted
Funds
2020
£
1,559,697
348,827
418,318
2,326,842
3,101,579
1,692,913
4,794,492
(2,467,650)
(1,011,297)
(3,478,947)

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes form part of these accounts.

SAATCHI GALLERY I Page 21

FINANCIAL STATEMENTS

The Saatchi Gallery, London

Consolidated and Charity Balance Sheets As at 31 December 2021

Notes
Fixed assets
Intangible assets
9
Tangible assets
10
Investments
11
Total Fixed assets
Current assets
Stock
Debtors
12
Cash at bank and in hand
Total Current assets
Liabilities
Creditors: amounts falling due within one year
13
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
Total assets less total liabilities
Funds of the charity:
Unrestricted funds:
Total funds		 Group
2021
£
12,250
51,064
-
63,314
120,090
1,906,723
2,911,153
4,937,966
(10,297,380)
(5,359,414)
(5,296,100)
-
(5,296,100)
(5,296,100)
(5,296,100)		 Group
2020
£
-
48,059
-
48,059
137,861
1,920,210
1,203,423
3,261,494
(6,788,500)
(3,527,006)
(3,478,947)
-
(3,478,947)
(3,478,947)
(3,478,947)		 Charity
2021
£
-
-
1
1
-
186,434
-
186,434
(1)
186,433
186,434
-
186,434
184,934
184,934		 Charity
2020
£
-
-
1
1
-
184,934
-
184,934
(1)
184,933
184,934
-
184,934
184,934
184,934

Approved and authorised by the trustees on: ……………………………………

Johan Eliasch Trustee

The notes form part of these accounts.

SAATCHI GALLERY I Page 22

FINANCIAL STATEMENTS

The Saatchi Gallery, London

Statement of Cash Flows and Consolidated Statement of Cash Flows For the year ended 31 December 2021

Note
Cash flows from operating activities:
Cash provided by / (used in) operating activities
17
Cash flows from financing activities:
Cash inflows from new borrowing
Purchase of tangible fixed assets
Purchase of intangible fixed assets
Increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year		 Group
2021
£
1,739,465
-
(16,735)
(15,000)
1,707,730
1,203,423
2,911,153		 Group
2020
£
600,578
1,641,285
-
-
2,241,863
-
2,241,863

SAATCHI GALLERY I Page 23

FINANCIAL STATEMENTS

The Saatchi Gallery, London

Notes to the Financial Statements

For the year ended 31 December 2021

1 Statement of Accounting Policies

The Saatchi Gallery, London is a charitable incorporated organisation registered with the Charity Commission in England and Wales (Charity No. 1182328).

1.1 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) (Charities SORP (FRS 102)), and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Saatchi Gallery, London Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost of transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest pound.

1.2 Going Concern

As expected, the group has incurred significant losses in the year, due to the significant impact of the ongoing Coronavirus pandemic and resulting government enforced closures from March 2020 onwards. Some restrictions have continued into 2022 and international tourism continues to be heavily affected.

The losses generated have resulted in a net liabilities position at the balance sheet date of £5,296,100. The group has reduced costs wherever possible, made redundancies, deferred payments, entered into re-negotiations with key suppliers and used relevant government support schemes such as the Coronavirus Job Retention Scheme. It is also in negotiations with the landlord and is expecting to regear and extend the lease (which represents the largest single cost to the group) whilst restructuring the historic liabilities from March 2020. Whilst there can be no certainty in this respect the trustees are confident that these negotiations will be able to be successfully concluded.

The group will continue to need stakeholder support during the ongoing process of recovery from the effects of the pandemic. However, current projections for 2022 onwards show a strong calendar of world class exhibitions which the organisation is confident will achieve strong public interest and allow a return to pre-Covid financial performance.

The trustees note the material uncertainty arising as a result of the factors referred to above but have a reasonable expectation that the group will continue operating for the foreseeable future and at least twelve months from the date of approval of the financial statements. As a result, the financial statements have been prepared on a going concern basis.

1.3 Group financial statements

The trustees have prepared group accounts in accordance with section 138 of the Charities Act 2011. The financial statements consolidate the results of the charity and its whole owned subsidiary Saatchi Gallery, London Limited on a line-by-line basis.

All income in the Statement of Financial Activities is shown gross of the associated costs and is accounted for where there is entitlement to the income, it is probable that the benefits associated with it will flow to the charity and it can be reliably measured.

Government grants (relating to the Coronavirus Job Retention Scheme) are included in the Statement of Financial Activities on a receivable basis when there is entitlement to the income.

1.5 Expenditure

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

Expenditure on raising funds

Direct and support costs associated with generating funds for the charity.

Expenditure on charitable activities

These costs include expenditure associated with the delivery of the objects of the charity and include both the direct costs and support costs relating to these activities.

Governance costs

Those costs incurred in connection with the management of the group's assets, organisational administration and compliance with constitutional and statutory requirements.

SAATCHI GALLERY I Page 24

FINANCIAL STATEMENTS

The Saatchi Gallery, London

Notes to the Financial Statements (continued) For the year ended 31 December 2021

1 Statement of Accounting Policies (continued)

1.6 Intangible fixed assets

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software

5 years straight line

1.7 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements 5 years straight line Fixtures and fittings 6 years straight line Computers 3 years straight line

1.8 Stock

Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

The group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently carried at amortised cost using the effective interest method.

2.1 Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

1.11 Foreign exchange

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the Statement of Financial Activities for the period.

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

In the view of the trustees in applying the accounting policies adopted, no critical judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any critical estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

SAATCHI GALLERY I Page 25

FINANCIAL STATEMENTS

The Saatchi Gallery, London

Notes to the Financial Statements (continued) For the year ended 31 December 2021

__________________

3
Income from donations and legacies
Donations
Government grant		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
1,500
184,934
104,699
163,893
106,199
348,827

SAATCHI GALLERY I Page 26

FINANCIAL STATEMENTS

The Saatchi Gallery, London

Notes to the Financial Statements (continued) For the year ended 31 December 2021

4
Income from other trading activities
Exhibitions and sponsorship
Commercial trading
Other		 Unrestricted
funds
2021
£
164,407
682,082
59,126
905,615		 Unrestricted
funds
2020
£
118,556
209,348
90,414
418,318
Expenditure on charitable activities
Incoming resources for the year is stated after charging:
Depreciation
Auditor's remuneration:
Audit fees
Fees in resect of prior years
Other fees
Support costs
Basis of allocation
Staff costs
Staff time
Rent
Use of premises
Other premises costs
Use of premises
Promotions and exhibitions
Staff time
Other office costs
Staff time
Finance costs
Staff time
Legal and professional fees
Staff time
Bad debt expense
Staff time
Governance
Staff time
Expenditure on raising funds		 Direct
costs
£
407,893
-
407,893
Raising
funds
115,830
85,612
54,284
83,768
67,268
19,732
23,332
138,036
14,640
602,502		 Support
costs
£
605,252
3,694,906
4,300,158
Charitable
activities
656,367
1,626,635
1,031,400
53,557
201,803
12,615
14,917
88,253
9,360
3,694,906		 Total
2021
£
1,013,145
3,694,906
4,708,051
2021
£
13,730
15,500
5,255
3,245
Total
2021
£
772,197
1,712,247
1,085,684
137,325
269,070
32,347
38,249
226,289
24,000
4,297,408		 Total
2020
£
1,692,913
3,101,579
4,794,492
2020
£
9,952
14,500
8,000
5,500
Total
2020
£
880,761
1,902,048
1,082,397
58,140
236,902
67,940
27,662
433,084
28,000
4,716,934

6 Support costs

7 Trustees and key management personnel

No trustee received any remuneration nor were they reimbursed any expenses in the year or in the prior period.

The total amount of key management personnel benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services was £87,301 (2020: £167,067).

SAATCHI GALLERY I Page 27

FINANCIAL STATEMENTS

The Saatchi Gallery, London

Notes to the Financial Statements (continued) For the year ended 31 December 2021

8 Employees

The average monthly number of employees during the year was:
Staff costs during the period were:
Wages and salaries
Social security costs
Pension contributions
Temporary staff
Other staff costs		 2021
No.
26
2021
£
677,691
58,196
19,571
14,236
2,503
772,197		 2020
No.
29
2020
£
779,608
65,838
21,905
11,282
2,128
880,761

The number of employees whose annual employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
9
Intangible Fixed Assets
Cost
At 1 January 2021
Additions
At 31 December 2021
Depreciation
At 1 January 2021
Charged in year
At 31 December 2021
Net book values
At 31 December 2021
At 31 December 2020		 Group
Computer
Software
£
-
15,000
15,000
-
2,750
2,750
12,250
-		 2021
No.
-
1
1
-
Group
Total
Assets
£
-
15,000
15,000
-
2,750
2,750
12,250
-		 2020
No.
1
1
-
1
Charity
Total
Assets
£
-
-
-
-
-
-
-
-

SAATCHI GALLERY I Page 28

FINANCIAL STATEMENTS

The Saatchi Gallery, London

Notes to the Financial Statements (continued) For the year ended 31 December 2021

10
Tangible Fixed Assets
Cost
At 1 January 2021
Additions
At 31 December 2021
Depreciation
At 1 January 2021
Charged in year
At 31 December 2021
Net book values
At 31 December 2021
At 31 December 2020		 Group
Leasehold
Improvements
£
58,011
-
58,011
9,952
11,602
21,554
36,457
48,059		 Group
Computer
Equipment
£
-
2,801
2,801
-
773
773
2,028
-		 Group
Fixtures &
Fittings
£
-
13,934
13,934
-
1,355
1,355
12,579
-		 Group
Total
Assets
£
58,011
16,735
74,746
9,952
13,730
23,682
51,064
48,059		 Charity
Total
Assets
£
-
-
-
-
-
-
-
-
11
Investments
Shares in group undertakings
Cost or valuation
At 1 January 2021
Additions
At 1 January 2021 and at 31 December 2021
Carrying amount
At 31 December 2021		 Charity
2021
£
1
-
1
1		 Charity
2020
£
1
-
1
1

The charity holds 100% of the share capital of Saatchi Gallery, London Limited, a company registered in England and Wales (registration number 11712394)

A summary of the results of the subsidiary is shown below:

Sales
Cost of sales
Gross profit
Administrative expenses
Trading loss
Interest payable
Corporation tax
Retained profit/(loss) after tax		 Year to
31-Dec-21
£
2,889,398
(407,893)
2,481,505
(4,267,811)
(1,786,306)
(32,347)
-
(1,818,653)		 Year to
31-Dec-20
£
2,141,908
(77,558)
2,064,350
(4,648,994)
(2,584,644)
(67,940)
-
(2,652,584)

SAATCHI GALLERY I Page 29

FINANCIAL STATEMENTS

The Saatchi Gallery, London

Notes to the Financial Statements (continued) For the year ended 31 December 2021

12 Debtors

Trade debtors
Amounts owed by subsidiary
Prepayments and accrued income
VAT repayable
Other debtors
Creditors: Amounts falling due within one year
Trade creditors
Taxation and social security
Other creditors
Accruals and deferred income
Other borrowings
Deferred income brought forward
Released from previous years
Resources deferred in the year
Deferred income carried forward
Other borrowings represent an unsecured loan.		 Group
2021
£
242,574
-
664,148
-
1,000,001
1,906,723
Group
2021
£
6,601,643
226,081
97,269
3,372,387
-
10,297,380
960,513
(960,513)
3,072,521
3,072,521		 Group
2020
£
178,074
-
654,959
87,177
1,000,000
1,920,210
Group
2020
£
3,363,898
180,221
187,473
1,415,623
1,641,285
6,788,500
613,333
(613,333)
960,513
960,513		 Charity
2021
£
-
186,434
-
-
-
186,434
Charity
2021
£
-
-
1
-
-
1
-
-
-
-		 Charity
2020
£
-
184,934
-
-
-
184,934
Charity
2020
£
-
-
1
-
-
1
-
-
-
-

13 Creditors: Amounts falling due within one year

Deferred income represents amounts received in advance for services performed after the balance sheet date.

14 Operating lease commitments

Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Land and buildings:
Due in less than one year
Due in 2 to 5 years		 Group
2021
£
1,712,246
2,665,114
4,377,360		 Group
2020
£
1,712,246
2,665,114
4,377,360		 Charity
2021
£
-
-		 Charity
2020
£
-
-

15 Members' Liability

If the charity is wound up, the members of the charity have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.

16 Related Party Transactions

During the year and prior period there were no related party transactions.

SAATCHI GALLERY I Page 30

FINANCIAL STATEMENTS

The Saatchi Gallery, London

Notes to the Financial Statements (continued) For the year ended 31 December 2021

17 Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net movement in funds
Amortisation (note 9)
Depreciation (note 10)
(Increase)/Decrease in stocks
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Net cash provided by / (used in) operating activities		 Group
2021
£
(1,817,153)
2,750
13,730
17,771
13,487
3,508,880
1,739,465		 Group
2020
£
(2,467,650)
-
9,952
(20,811)
15,730
3,063,357
600,578

SAATCHI GALLERY I Page 31

JR.. CHRONICLES (2027)

SAATCHI GALLERY