**Year ended 31 May 2023** Annual Report and Accounts
## **Studios are to artists what laboratories are to scientists, music rooms are to musicians and factories are to industrialists - without them cultural production simply cannot be pursued.**
If London is to survive as a creative capital, if the art schools that produced three generations of ground-breaking artists’ work are going to continue as places of innovation then we have to provide sustainable working spaces for artists at all stages of their careers.
Those artists best placed to maintain a vibrant cultural life in this city are now seeking working spaces and opportunities in Berlin, Barcelona and Brussels as well as leaving for Margate, Bristol and Brighton.
We must do what we can to stem this receding tide of talent and potential. Creative Land Trust can begin to help us find it once more.
**Sir Antony Gormley, OBE** Supporter of Creative Land Trust
**creativelandtrust.org** Creative Land Trust @creativelandtrust
@CreativeLandT
**2 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Introduction**
## **Why we're here**
Creative Land Trust was founded to tackle a long-standing problem for London, and indeed other global cities – to reverse the loss of long-term, affordable workspace for creatives.
London’s competitiveness as a global city is built on its vibrant creative sector. Our creative industries generate more than £52bn each year. One in six of the UK’s new jobs are in this sector. London is a cultural powerhouse, but its very success is pricing artists and makers out of our city.
The loss of affordable workspace, and consequent outflow of artists, presents a serious threat to the wellbeing and prosperity of a city so reliant on creativity for its success. According to (pre-COVID) research conducted for the Mayor of London, 24% of sites containing artists’ workspaces were at risk of closure.
Artists are unable to focus their time on their practice due to the instability inherent in relying on temporary workspace, and expert studio providers are displaced from their locations despite years of building social capital. London’s many excellent artists face growing difficulty in securing even “meanwhile” space.
Creative Land Trust is seeking to build a new financial and operating model to secure long term, affordable workspace that would otherwise be unattainable.
## **Our Vision**
London will always have space for artists to create, collaborate and inspire others.
## **Our Mission**
To build a portfolio that supports more than 1,000 artists across London: spaces that will be available to artists and makers over the long term and at affordable levels.
**3 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Introduction from co-chairs**
## **We are pleased to present the Creative Land Trust’s Annual Report and Accounts for the year ended 31st May 2023.**
The turbulent economic conditions, cost of living and energy crises through the past year have made the operating environment even more challenging for the creative communities our Trust was founded to support. However, Creative Land Trust have made significant progress on delivering our mission through 2022-23.
A definite highlight was the occupation and formal launch of our first studios at Wallis Road in Hackney Wick at the end of December 2022. The studios are aimed at a range of artistic practices including painting, sculpture, moving image, performance and photography and represent a vital step in providing affordable workspace for creatives in the capital. A lively celebration event in March 2023 heard from our Artist Ambassadors Adelaide Damoah and Haroon Mirza as well as Deputy Mayor for Culture and Creative Industries, Justine Simons OBE and Sir Nick Serota, Chair of Arts Council England, all championing the purpose and impact of the Trust.
Having acquired our second property, the Grade II listed Alice Billings House in Stratford, we have continued to work with the London Borough of Newham to give this historic building a new lease of life as a major creative hub and, despite escalating costs and challenging market conditions, fit-out works have begun on schedule in 2023. An open tender competition was also run to appoint a studio operating partner.
The Exec team, working with the Trustees on our Property Committee, are progressing two further acquisitions, which will enable the Trust to have stable platform of studios in operation across London. The first has been announced, and during 2024 we will open affordable workspace for artists in a new building at Friary Park in North Acton, working with our partners Mount Anvil. We are also exploring a range of ownership options to help accelerate the delivery of our mission of a London-wide portfolio supporting more than 1,000 artists. We remain keen to collaborate with developers through our paid advisory work around incorporating successful ground-floor creative uses into early-stage planning applications, as well as in longer-term partnerships and lease arrangements.
The Development Committee have made significant progress in finessing our pioneering financial model now we have the critical ‘proof of concept’ of an income-producing studio in operation. This innovation in targeting social impact investors is an exciting challenge despite the difficult market conditions and intensely competitive environment for broader philanthropic donations and grant funding. We are keen to meet with investors and philanthropists to discuss our innovative blend of funding and opportunities to work with us to generate financial and social returns by providing space for culture and creativity across London.
Our Finance, Audit and Risk Committee have balanced the need for investing in growth and innovation with managing costs appropriately to preserve our cash reserves and have a sustainable, long-term financial position.
**4 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Introduction from co-chairs** Continued…
We are enormously grateful to our Board of Trustees and Artist Ambassadors who each give their time, expertise and insights freely and extensively through the year to support the broad range of activities of the Trust across the property, arts and financial sectors. In particular, we would like to recognise the contribution of two Trustees who have stepped down in 2023; John Lewis, whose input to Property Committee has been particularly impactful, and Haroon Mirza, who remains a valued Artist Ambassador.
We are also thankful for the ongoing support of our founding partners and funders, Mayor of London, Arts Council England, Bloomberg Philanthropies and Outset Contemporary Art Fund who have enabled the Trust to grow beyond its initial concept phase and into an operating entity.
Our priority for the coming year is to raise further funding to allow us to accelerate the delivery of our studios into operation as we demonstrate the impact of a growing portfolio of buildings in reversing the global trend of artists being priced out of major creative hubs.
## **To keep in touch with what we’re doing, please visit our website and sign up for our newsletter – we really appreciate your support.**
**Alexandra Notay and Catherine Webster** Co-chairs
**5 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Trustees' report**
## **The Trustees present their report and the audited financial statements for the year ended 31st May 2023.**
Reference and administrative information set out on page 44 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice – Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
At our launch event at Wallis Road: From left to right – Haroon Mirza, Adelaide Damoah, Justine Simons (Greater London Authority), Gordon Seabright, Alexandra Notay, Sir Nicholas Serota (Arts Council England). Photograph: Dafydd Jones
**6 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Objectives, activities and plans for the future**
## **The charity’s objects are:**
To promote arts, crafts and craftsmanship for the public benefit, in particular, but not exclusively, by providing or facilitating access to affordable workspace for the production of arts and crafts to those in need.
## **Activities, achievements and performance**
Our current 2021-25 strategy (available on our website) sets out how we will achieve our objectives.
This is broken into four primary workstreams:
## **1. Building our portfolio**
We acquire freehold or long-leasehold properties that will be operated by workspace providers. We aim to safeguard affordability and long-term stability for London’s creative practitioners. Through achieving good pricing, seizing innovative opportunities and fundraising success (see below) we have secured three properties to date and are working on further acquisitions and partnerships.
During 2022-23 we added to our existing portfolio of Wallis Road and Alice Billings House when we exchanged contracts for 4,600 square feet of space on the ground and mezzanine levels at The Verdean (Friary Park) in North Acton, Ealing. The space will provide for up to 30 individual occupants and will be our first building in West London.
In 2022 we helped to fund the fit out at Wallis Road (Hackney Wick) with support from the NESTA Arts and Culture Impact Fund. Wallis Road is a new build residential building in Hackney Wick; we have a 999-year lease for the ground and lower ground floors, providing approximately 30,000 square feet of lettable space.
During 2022-23 we also began preliminary work at Alice Billings House, a Grade 2 listed building in the centre of Stratford. Backed by funding from the Architectural Heritage Fund, the London Borough of Newham and the Greater London Authority, we have agreed a 25 year lease and will bring this empty property back to life, providing 6,000 square feet of workspace for up to 50 artists during 2023-24.
As well as these projects, we continue to develop a healthy pipeline of other property opportunities which are geographically diverse and range from industrial heritage buildings to brand new development sites. However, we will need to raise further funding to secure any new properties.
## **Main activities undertaken to further the charity's purposes for the public benefit**
Creative Land Trust exists to support the arts and creative sector as a whole.
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.
**7 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
**Wallis Road Studios** Opened 2022
Photographs: Sylvie Belbouab and Dafydd Jones ( top left only)
**8 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Summary of our properties to date:**
**----- Start of picture text -----**
Wallis Road Studios Alice Billings House Friary Park
Newbuild residential Heritage property Newbuild residential
Description
in Hackney Wick in central Stratford in North Acton
Tenure 999 year lease 25 year lease 999 year lease
Lettable area (sq. ft.) 30,000 6,000 4,600
Completed and CLT currently carrying Building handover
Status
occupied out capital works expected 2024
Cell Studios,
Tenants tbc tbc
Mainyard Studios
Number of Artists /
150 Estimated - 50 Estimated - 30
Makers supported
**----- End of picture text -----**
## **2. Managing the portfolio**
We welcomed the first artists to Wallis Road in December 2022. Most of the units were let prior to completion of the fit out works demonstrating the amount of demand.
Wallis Road is now at 100% occupancy. There is space for up to 150 artists and makers, and tenants are made up of painters, sculptors, photographers, installation artists, fashion designers, textile designers, ceramicists, wig makers, screen printers, set designers, perfumiers, musicians and recording artists.
Feedback from the artists so far has been extremely positive and we will be conducting further surveys and case studies this year.
We also began the tender process for finding a partner for Alice Billings House.
**I got very, very lucky with this space. It’s most definitely my favourite studio space of those I’ve ever had. Creative Land Trust has created spaces like this specifically for the artist community to make sure that we continue to have our practice and stay in London.**
**Lindsay Mapes,** Visual Artist, Wallis Road Studios
**9 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **3. Achieving financial sustainability**
Our aim is to achieve a sustainable model, that is where our properties fund themselves and our operating costs and we can build a small reserve.
We will finance acquisitions with a blend of repayable and philanthropic finance.
We assess all potential properties against financial benchmarks to ensure that the end rental cost to the artist will be affordable, while generating sufficient return to cover financing and central costs. We expect to make net losses while we are building the portfolio to reach our goal of space for 1,000 artists, as we are staffed for the growth phase to reach that scale.
We also model contingency plans so that if we are unsuccessful in raising future growth funding (either repayable or philanthropic), we can keep the existing properties running as a going concern.
During the last year we were awarded further grant money to support the Alice Billings House project. We have also advanced conversations with a number of social investors during the year.
In total, we have so far added over £2m of additional financing to our original £7.5m seed funding. (This does not include the £1.6m that we were awarded to distribute to studio providers as part of the Creative Workspace Resilience Fund in 2020).
## **4. Policy and campaigning work**
Creative spaces and communities have been shown to have a wider economic and social value, helping to regenerate areas by stimulating local business growth, attracting inward investment and infrastructure development including housing.
We want to ensure that this value is recognised, and that the artists that add this value gain long term security. We aim to provide evidence to developers and local authorities about the value of secure and affordable creative space so that it can be built into future planning opportunities.
We also work with studio providers and other creative industries to provide input into policies and initiatives and to collaborate to achieve our wider goals.
Some examples of this;
- We have a representative on the GLA’s Workspace Advisory Group.
- We contributed to the Arts Green Book (to produce sustainability guidelines
- for cultural spaces).
- We have provided financial and other advice to arts organisations who are trying to secure properties.
- We have shown various developers and public sector bodies around Wallis Road, helping them understand creative workspace and the benefits of providing it.
- We are frequently approached by developers, councils and colleagues outside London for advice on creative workspace.
**10 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Measuring our impact**
The activities listed previously describe some of our progress this year; however, we are mindful that these are mostly outputs rather than wider social outcomes.
During the year, we developed and put in place an evaluation framework to measure impact and we have started to collect data within it.
We look to measure our impact against the headings in our Social Impact Statement (published on our website).
## **Financial stability**
**Intention:** We expect that studio providers and artists will be able to grow and develop their businesses as a result of having secure and affordable workspace.
**Impact so far:** this needs to be measured over a longer period of time but initial data from surveys tells us that:
- 72% of respondents said one of the reasons for taking the space was that they needed more space to develop their practice
- 72% respondents said one of the reasons for the space was it was longer term
- over 90% of respondents agreed or strongly agreed that their space was affordable.
We also ensure that our business practices support financial stability; for example by working with artists and SMEs and ensuring they are paid fairly and promptly. During 2022-23 our average payment time was 11 days (2021-22: 14 days), and we paid 95% of invoices within 30 days. (2021-22: 88%)
We are also an accredited London Living Wage employer and during 2022-23 were recognised by the Mayor of London’s Microbusiness Good Work Standard.
## **Inspirational Environments**
**Intention:** We want our spaces to enhance a local sense of place, be a positive addition to cultural infrastructure and inspire users and passers by.
**Impact so far:** We will look to measure this via artist survey and/or case studies and (in later years) through community base assessment.
In the meantime, we look for ways to build links between our properties and the communities in which they are located. Following the initial Paint the Change community art project last year we have received further funding from the GLA’s High Streets for All Fund to promote cultural activities in Stratford High Street, linked with Alice Billings House. We will be working with our partners to assess engagement with the programmes.
**11 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
**Alice Billings Connect – Cultural programme in Stratford** Launch event
Photographs: Monika Sorelle
**12 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
**Alice Billings Connect – Cultural programme in Stratford** Moving exhibition by Artist Eve De Haan
**----- Start of picture text -----**
Photographs: Monika Sorelle
**----- End of picture text -----**
**13 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Sustainability**
**Intention:** Net Zero by 2025
**Impact so far:** See the Carbon Reporting section of this report.
## **Accessibility**
**Intention:** We want to create accessible spaces, both physically and socially, which reflect the communities they serve. We will monitor this in partnership with our tenants.
**Impact so far:** We will be collecting demographic data directly from artists later in 2023. From initial survey data we know that the vast majority of tenants are from London, mostly from East or North London postcodes, and 68% live within 3 miles of the studios.
We also design spaces to ensure physical accessibility that meets all needs. Our first two buildings meet “Approved Document M” requirements, the standard for accessible buildings.
## **Systemic change**
**Intention:** We are seeking to;
– Build a sustainable and replicable model for ownership of affordable workspace and – Convince key players to place more value on creative space than the purely financial.
**Impact so far:** Our activities have promoted both these intentions. We have been successful in unlocking new sources of finance and attracting interest in our financial model, which we hope will provide new sources of funds to grow the portfolio.
As a result of our work, we have reached new audiences - for example, we recently gave a presentation to a team from a government department, who had not previously considered the role of creative workspace in mixed use developments. And we are working with an investment manager who had never previously considered creative workspace as an investment class before talking to us.
We continue to meet frequently with property owners, developers and local planning authorities.
Members of our team are increasingly invited to speak at real estate and other events to promote the benefits of creative workspace, such as Homes 2023 and Henley Business School/Reading Real Estate Foundation helping us to reach new and impactful audiences.
**CLT's visionary approach to affordable creative spaces resonates deeply with me. Their commitment acknowledges the indispensable role artists play in shaping the cultural landscape of cities like London and beyond. The romanticized notion of artists toiling away in precarious conditions is not a sustainable reality. True innovation thrives when artists are offered continuity, safety, and comfort within their creative havens..**
**Adelaide Damoah,** Artist Ambassador, Creative Land Trust
**14 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
**Carbon Reporting and Sustainability**
In September 2020 Creative Land Trust declared a climate emergency and adopted a sustainability policy and action plan. We review this annually. As part of this we measure and report our carbon emissions even though it is not required for an organisation of our size.
## **Carbon Reporting**
We have voluntarily adopted the Greenhouse Gas Protocol for measuring and reporting our carbon emissions, including scope 3 emissions where we can measure them.
During the year ended 31st May 2023 we reviewed our methodology, identifying further scope 3 emissions and some more up to date ways to measure some emissions.
||**YE May**
**2023**
**YE May**
**2022**
**CO2e**
**CO2e**|
|---|---|
|Travel|0.33
**0.18**
0.54
**0.37**
0.17
**0.17**|
||**1.04**
**0.72**|
The figures above are gross, that is before any offsets are considered. The increase year on year reflects the fact that our activities have increased during YE May 2023 and are likely to increase again in the future. However, it is still a very small figure absolutely and relatively. To ensure that carbon emissions continue to stay low, we have set a carbon budget for the future.
We actively seek information about the green credentials of all our potential partners, and we include questions about sustainability and carbon footprints in our procurement exercises.
All of our business processes are paperless. We are committed to active travel, with employees walking or cycling wherever possible and using public transport where not.
We were also able to use funding from NESTA to help our tenants at Wallis Road fit out to a higher standard, achieving BREEAM Very Good. For the Alice Billings project, we are specifying materials and processes that Improve energy efficiency.
At present tenant emissions are not included in the above reporting as activities have only just begun, however we will be looking to measure these and work with tenants to ensure our buildings are as sustainable as possible.
Initial surveys show that 96% of survey respondents get to the studios by walking, cycling or public transport.
**15 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Financial Review**
## **Key financial performance indicators**
During the year we received income of £936,000 (prior year £2,687,000). This was predominantly grant income that had already been awarded to us, including £556,000 from GLA. However, we also began to receive rental income for the first time, shown as part of “income from charitable activities”.
We had expenditure of £631,000 (prior year £514,000), which includes £72,000 of property and financing costs for the first time. With these items taken out, our expenditure has been fairly consistent with previous years.
Not included in expenditure in the Statement of Financial Activities are capital additions of £878,000, which includes £586,000 of fit out support at Wallis Road, as well as professional fees and preliminary works for Alice Billings House and Friary Park.
The surplus of £305,000 in 2022-23 predominantly reflects the fact that grant income towards capital purchases is accounted for within income in the SOFA, but the capital purchase itself is accounted for as an asset. To clarify this in our reporting, the Trustees have designated an asset reserve to reflect the value of our capital properties (and loans used against them)
We have a net cash outflow of £676,000 because of our ongoing capital investments.
## **Going concern**
The Trustees have reviewed our five year financial plan and also a more detailed cashflow forecast for the next 18 months to determine whether the charity has adequate resources to continue. The cashflow forecast takes a prudent view of the future, including all known commitments but excluding potential sources of income. The five year plan and 18 month cash flow is reviewed at least every quarter and whenever a major decision is to be taken to ensure that the charity does not over commit its resources.
As a result of these reviews, the Trustees have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, we continue to adopt the going concern basis in preparing the financial statements.
## **Reserves Policy**
One of our overarching aims is to provide financial stability to the sector. This means ensuring that we do not enter into commitments that we cannot fund, as noted above, and also that we have sufficient reserves to day-to-day operations on a much reduced basis should it be decided that the organisation should not continue. For this reason, the charity aims to have at least three months’ running costs in reserve plus some additional contingencies. This means a target reserve level of approximately £240,000.
The charity currently has free reserves of £89,000, up from £15,000 at the start of the year. We are not yet at our target – however, this does not impact on our assessment of going concern because we are also able to use some of our restricted funding to run our organisation during this start up phase of our activity. However, over time, we would expect to hold our target level of reserves in unrestricted funds as rental income increases.
**16 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Principal risks and uncertainties**
The charity maintains a risk register which is reviewed by Trustees every quarter. The main risks to our business (and mitigations) are as follows:
## **Increased risk in securing future funding**
The cost of living crisis and high interest rates make it more challenging for us to raise money both from donations and from potential investors. We plan to mitigate this by reallocating our resources towards fundraising and investigating new sources of financing.
## **Increased risk to financial stability of studio providers**
As reported last year, Covid has continued to bring further pressures on existing reserves, and we altered our business plan to anticipate providing support with fit-out costs. The increase in energy costs presents a further challenge and our mitigation will be to explore on-site generation options wherever possible.
## **Increased fit out costs**
Building materials and labour costs have increased significantly in the last year and are expected to remain high, at least in the short term. Our mitigation is to assume higher costs for fit out and be cautious about committing funding to new projects to ensure we have sufficient funds to complete our current ones.
## **Fundraising**
We are signed up to the Code of Fundraising Practice and have internal policies around donation acceptance. We do not use third-party fundraisers.
Our fundraising strategy is focused on major donors, corporate partners and legacies. We have received no complaints about our fundraising activity.
**17 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Structure, governance and management**
## **Constitution**
The charity is registered as a charitable company limited by guarantee (charity number 1182876) and was set up by a Memorandum and Articles of Association on 25 March 2019. The Articles of Association have subsequently been amended on 30th September 2021.
## **Method of appointment or election of Trustees**
The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. We have two Artist Trustees at any time. Other board members are recruited through an open recruitment process and Trustee vacancies are posted on our website.
Trustees are provided with an induction pack, and we aim to run a trustee training session at least once a year.
## **Organisational structure and decision making**
The Board of Trustees governs the charity. The Board meets at least four times a year.
The Board has three sub-committees, set up to consider issues in detail. These are;
- Finance, Audit and Risk Committee
- Property Committee
- Development Committee
The organisation is run by a Chief Executive and four other permanent members of staff. This executive team makes day-to-day operational decisions, within a scheme of delegation from the Board.
Executive pay is governed by a remuneration policy, which, among other things, sets out that pay will be reviewed annually and that the Trustees are responsible for reviewing pay levels.
**18 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Statement of responsibilities of the Trustees**
## **The Trustees (who are also directors of Creative Land Trust for the purposes of company law) are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).**
Company law requires the Trustees to prepare financial statements for each financial 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 these 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 and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
- There is no relevant audit information of which the charitable company’s auditor is unaware, and
- The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
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.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.
The Trustees’ report has been prepared in accordance with the special provisions applicable to companies subject to the small companies’ regime.
The Trustees’ annual report has been approved by the Trustees on 5th October 2023 and signed on their behalf by:
Trustee and Co-chair
**Alexandra Notay**
**19 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Independent Auditor’s Report to members of Creative Land Trust**
## **Opinion**
We have audited the financial statements of Creative Land Trust (the ‘charitable company’) for the year ended 31 May 2023 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
_In our opinion, the financial statements:_
- Give a true and fair view of the state of the charitable company’s affairs as at 31 May 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Companies Act 2006
## **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 charitable 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.
## **Conclusions relating to going concern**
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. 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 significant doubt on the Creative Land Trust's ability to continue as a going concern for a period of at least twelve months from 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._
## **Other Information**
The other information comprises the information included in the trustees’ 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. 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
**20 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
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._
## **Opinions on other matters prescribed by the Companies Act 2006**
_In our opinion, based on the work undertaken in the course of the audit:_
- The information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- The trustees’ annual report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- The financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of trustees’ remuneration specified by law are not made; or
- We have not received all the information and explanations we require for our audit; or
- The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.
**21 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Auditor’s responsibilities for the audit of the financial statements**
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 are set out below.
## **Capability of the audit in detecting irregularities**
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
We enquired of management and the finance, audit and risk committee, which included obtaining and reviewing supporting documentation, concerning the Trust’s policies and procedures relating to:
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the Trust operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the Trust from our professional and sector experience
- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit
- We reviewed any reports made to regulators.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls,we tested the appropriateness of journal entries and other adjustments,assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
**22 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
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: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
## **Fleur Holden**
## **Date: 16 October 2023**
Senior Statutory Auditor _for and on behalf of_
Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, London, EC1Y 0TL
**23 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Statement of Financial Activities**
## **(incorporating the Income and Expenditure account)**
Year ended 31 May 2023
|Note
**Income From**
Donations
2
Investment income
Charitable activities
3
Other trading income
**Total Income**
**Expenditure on**
Raising Funds
Charitable Activities
**Total Expenditure**
4
**Net Income /**
**(expenditure) for the year**
Transfers between funds
10
Net income / (expenditure)
before other recognised
gains and losses
**Gains on revaluation**
**of fixed assets**
7
**Net movement in Funds**
**Reconciliation of Funds**
Total Funds Brought
Forward
**Total Funds carried**
**forward**|**Restricted**
**Funds**
**Designated**
**Funds**
**Unrestricted**
**Funds**
**Total Funds**
**2023**
**2023**
**2023**
**2023**
**£**
**£**
**£**
**£**
754,633
-
1,000
**755,633**
21,074
-
613
**21,687**
-
-
159,064
**159,064**
-
-
-
**-**
**775,707**
**-**
**160,677**
**936,384**
159,019
-
-
**159,019**
374,895
9,847
87,143
**471,885**
**533,914**
**9,847**
**87,143**
**630,904**
**241,793**
**(9,847)**
**73,534**
**305,480**
(291,844)
291,844
-
**-**|Total
Funds
2022
£
2,678,040
2,244
-
7,000
**2,687,284**
153,477
360,551
**514,028**
**2,173,256**
-
**2,173,256**
497,878
**2,671,134**
3,472,305
**6,143,439**|
|---|---|---|
||**(50,051)**
**281,997**
**73,534**
**305,480**||
||-
-
-
**-**
**(50,051)**
**281,997**
**73,534**
**305,480**
1,357,483
4,770,859
15,097
**6,143,439**
**1,307,432**
**5,052,856**
**88,631**
**6,448,919**||
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 10 to the financial statements.
**24 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Balance Sheet**
As at 31 May 2023
|Note
**Fixed Assets**
Tangible Fixed Assets
7
**Current Assets**
Debtors
8
Short term deposits
Cash at bank and in hand
Creditors: Amounts falling
due within one year
9
**Net current assets**
**Total assets less**
**current liabilities**
Creditors: amounts falling due
in more than one year
9
**Total Net Assets**
**Charity Funds**
Restricted Funds
10
Designated funds:
10
General Funds
10|114,473
85,000
1,359,045|**2023**
**£**
5,639,338|69,999
-
2,120,506|**2022**
**£**
4,770,859|
|---|---|---|---|---|
|||5,639,338
**1,509,581**
**7,148,919**||4,770,859
**2,072,580**
**6,843,439**|
||1,558,518
(48,937)||2,190,505
(117,924)||
||||||
|||(700,000)||(700,000)|
||||||
|||**6,448,919**||**6,143,439**|
|||1,307,432
5,052,856
88,631||1,357,483
4,770,859
15,097|
|||**6,448,919**||**6,143,439**|
Approved by the trustees on: 5th October 2023
and signed on their behalf by **A Notay** Trustee and Co-chair:
Registered Company No: 11367824
**25 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Statement of Cash flows**
Year ended 31 May 2023
|Note
**Cash flows from operating activities**
Net income for the reporting period
Depreciation
7
Interest earned
Increase in debtors
8
(Decrease) / increase in creditors
9
**Net cash flows provided by operating activities**
**Cash flows from investing activities**
Purchase of fixed assets
7
Interest received
**Net cash used in investing activities**
**Cashflows from financing activities**
New borrowing
**Net cash provided by financing activities**
**Change in cash and cash equivalents in year**
Cash and cash equivalents at the start of the year
**Cash and cash equivalents at the end of the year**
**At 1 June 2022**
Cash at bank and in hand
2,120,506
Short term deposits
-
**Total cash and cash equivalents**
**2,120,506**
Loans falling due within one year
-
Loans falling due after more than one year
(700,000)
**Cash and cash equivalents less net debt**
**1,420,506**
**nalysis of cash and cash equivalents and of net debt**|Note
**Cash flows from operating activities**
Net income for the reporting period
Depreciation
7
Interest earned
Increase in debtors
8
(Decrease) / increase in creditors
9
**Net cash flows provided by operating activities**
**Cash flows from investing activities**
Purchase of fixed assets
7
Interest received
**Net cash used in investing activities**
**Cashflows from financing activities**
New borrowing
**Net cash provided by financing activities**
**Change in cash and cash equivalents in year**
Cash and cash equivalents at the start of the year
**Cash and cash equivalents at the end of the year**
**At 1 June 2022**
Cash at bank and in hand
2,120,506
Short term deposits
-
**Total cash and cash equivalents**
**2,120,506**
Loans falling due within one year
-
Loans falling due after more than one year
(700,000)
**Cash and cash equivalents less net debt**
**1,420,506**
**nalysis of cash and cash equivalents and of net debt**|**2023**
**£**
305,480
9,847
(21,687)
(44,474)
(68,988)|||**2022**
**£**
2,173,256
400
(2,244)
(47,030)
49,267|
|---|---|---|---|---|---|
|||**180,178**|||**2,173,649**|
|||(878,326)
21,687|||(3,833,554)
2,244|
|||**(856,639)**|||**(3,831,310)**|
|||-|||700,000|
|||**-**|||**700,000**|
|||**(676,461)**
2,120,506|||**(957,661)**
3,078,167|
|||**1,444,045**|||**2,120,506**|
|||**Cashflows**
(761,461)
85,000
**(676,461)**
-
-
**(676,461)**||**At 1 May 2023**
1,359,045
85,000||
||**2,120,506**|||**1,444,045**||
|Loans falling due within one year
Loans falling due after more than one year
**Cash and cash equivalents less net debt**|-
(700,000)|||-
(700,000)||
||**1,420,506**|||**(744,045)**||
## **Analysis of cash and cash equivalents and of net debt**
**26 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Notes to the accounts**
## **1. Accounting Policies**
## **a) Statutory information**
Creative Land Trust is a charitable company limited by guarantee and is incorporated in England.
_The registered office address is:_
Invicta House, 108-114 Golden Lane, London EC1Y 0TL
## **b) 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), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. 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 nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
## **c) Public benefit entity**
The charity meets the definition of a public benefit entity under FRS 102.
## **d) Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The approach to the going concern assessment has been explained in the Trustees’ annual report.
## **e) Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Rental income is recognised when it is due from the tenants.
**27 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
**1. Accounting Policies** Continued…
## **f) Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
## **g) Fund Accounting**
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
## **h) Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Expenditure is classified under the following activity headings:
- Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose. This includes bid-writing and other efforts to secure grants, and also activities relating to securing repayable finance.
- Expenditure on charitable activities includes the costs of managing property and undertaking policy and campaign work to further the purposes of the charity.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **i) Allocation of support costs**
Resources expended are allocated to the particular activity where the cost relates directly to that activity. The cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned based on the proportion of direct expenses attributable to those activities.
Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.
## **j) Operating leases (as a lessee)**
Rental charges are charged on a straight-line basis over the term of the lease.
## **k) Tangible Fixed assets**
Expenditure on properties is recognised as an asset at the point where we are legally committed to purchase the property and if there are no outstanding conditions. Prior to this, deposit and associated acquisition costs are recognised as an asset under construction in the balance sheet and is not depreciated until the asset is brought into use.
Properties are treated as tangible fixed assets, not investment properties, as they are held in order to pursue our charitable objects.
Land and buildings are revalued on a regular basis and gains and losses on revaluation are recognised in the Statement of Financial Activities and in a revaluation reserve in the Balance Sheet.
**28 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
**1. Accounting Policies** Continued…
Items of equipment are capitalised where the purchase price exceeds £1,000 and where the economic benefit will last for more than one year.
Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.
Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.
The depreciation rates in use are as follows:
Leasehold Improvements Over the remaining life of the lease Computer Equipment 3 years Plant and Machinery 10-20 years
## **l) Debtors**
Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **m) Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **n) Short term deposits**
Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.
## **o) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **p) Financial instruments**
The charity 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 measured at their settlement value.
## **q) Pensions**
The charity operates one defined contribution scheme and makes contributions to another. The pension charge represents the amounts payable by the charity to the schemes in respect of the year. The assets of the schemes are held separately from those of the charity in independently administered funds.
**29 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **2. Income from donations**
|**Donations**
**Grants From**
Arts Council England
Greater London Authority
Architectural Heritage Fund
Transport for London
**Total Funds**
**Prior Year**
**Donations**
**Grants From**
Arts Council England
Greater London Authority
Architectural Heritage Fund
**Total Funds**||**Restricted**
**Funds**
**Unrestricted**
**Funds**
**Total**
**2023**
**2023**
**2023**
**£**
**£**
**£**
-
1,000
**1,000**
146,625
-
**146,625**
555,303
-
**555,303**|
|---|---|---|
|||27,705
-
**27,705**
25,000
-
**25,000**|
|||**754,633**
**1,000**
**755,633**|
|||**Restricted**
**Funds**
**Unrestricted**
**Funds**
**Total**
**2022**
**2022**
**2022**
**£**
**£**
**£**
10,110
-
**1,000**
1,435,250
-
**1,435,250**
1,153,031
-
**1,153,031**
79,649
-
**79,649**|
|||**2,678,040**
**-**
**2,678,040**|
GLA (Main programme), Arts Council England and Bloomberg Philanthropies funding makes up the original seed funding for Creative Land Trust.
**30 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **3. Income from charitable activities**
||**Unrestricted**
**Funds**
**Total**
**2023**
**2023**
**£**
**£**|
|---|---|
|Rental income|92,651
**92,651**
43,913
**43,913**
22,500
**22,500**|
||**159,064**
**159,064**|
There was no income from charitable activities in the previous year. All income relates to "building our portfolio" activity.
**31 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **4a. Analysis of Expenditure - Current Year**
|Salary Costs (Note 6)
Property Running Costs
Financing
Legal and professional fees
Other
Allocation of Support Costs
Allocation of Governance Costs
**Total Expenditure 2023**
Total Expenditure 2022|**Charitable Activities**
**Raising**
**Funds**
**Building**
**our**
**Portfolio**
**Policy and**
**Campaign**
**Creative**
**Workspace**
**Resilience**
**Fund**
**Support**
**Costs**
**Governance**
**Costs**
**2023 Total**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
105,802
134,158
10,147
-
75,245
38,762
**364,114**
-
50,981
-
-
-
-
**50,981**
-
21,345
-
-
-
-
**21,345**
98
105,905
11,425
-
1,989
13,920
**133,337**
10,389
10,757
62
418
38,920
582
**61,127**|**Charitable Activities**
**Raising**
**Funds**
**Building**
**our**
**Portfolio**
**Policy and**
**Campaign**
**Creative**
**Workspace**
**Resilience**
**Fund**
**Support**
**Costs**
**Governance**
**Costs**
**2023 Total**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
105,802
134,158
10,147
-
75,245
38,762
**364,114**
-
50,981
-
-
-
-
**50,981**
-
21,345
-
-
-
-
**21,345**
98
105,905
11,425
-
1,989
13,920
**133,337**
10,389
10,757
62
418
38,920
582
**61,127**|**Charitable Activities**
**Raising**
**Funds**
**Building**
**our**
**Portfolio**
**Policy and**
**Campaign**
**Creative**
**Workspace**
**Resilience**
**Fund**
**Support**
**Costs**
**Governance**
**Costs**
**2023 Total**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
105,802
134,158
10,147
-
75,245
38,762
**364,114**
-
50,981
-
-
-
-
**50,981**
-
21,345
-
-
-
-
**21,345**
98
105,905
11,425
-
1,989
13,920
**133,337**
10,389
10,757
62
418
38,920
582
**61,127**|2022 Total
352,227
-
-
114,881
46,919|
|---|---|---|---|---|
||**116,289**
29,296
13,434|**323,146**
**21,634**
**418**
81,408
5,450
-
37,331
2,499
-|**116,154**
**53,264**
**630,904**
(116,154)
-
**-**
-
(53,264)
**-**|514,028
-
-|
||**159,019**|**441,885**
**29,583**
**418**|**-**
**-**
**630,904**||
||153,477
319,666
40,390
495
-
-||||
||153,477|319,666
40,390
495||514,028|
**32 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2022
## **4b. Analysis of Expenditure - Prior Year**
|Salary Costs
Legal and professional fees
Other
Allocation of Support Costs
Allocation of Governance Costs
**Total Expenditure 2022**|**Charitable Activities**
**Raising**
**Funds**
**Building**
**our**
**Portfolio**
**Policy and**
**Campaign**
**Creative**
**Workspace**
**Resilience**
**Fund**
**Support**
**Costs**
**Governance**
**Costs**
**2022 Total**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
88,295
133,394
8,275
112
83,914
38,238
**352,227**
9,901
69,804
19,786
-
3,270
12,120
**114,881**
8,832
19,724
105
383
14,972
2,904
**46,919**|**Charitable Activities**
**Raising**
**Funds**
**Building**
**our**
**Portfolio**
**Policy and**
**Campaign**
**Creative**
**Workspace**
**Resilience**
**Fund**
**Support**
**Costs**
**Governance**
**Costs**
**2022 Total**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
88,295
133,394
8,275
112
83,914
38,238
**352,227**
9,901
69,804
19,786
-
3,270
12,120
**114,881**
8,832
19,724
105
383
14,972
2,904
**46,919**|**Charitable Activities**
**Raising**
**Funds**
**Building**
**our**
**Portfolio**
**Policy and**
**Campaign**
**Creative**
**Workspace**
**Resilience**
**Fund**
**Support**
**Costs**
**Governance**
**Costs**
**2022 Total**
**£**
**£**
**£**
**£**
**£**
**£**
**£**
88,295
133,394
8,275
112
83,914
38,238
**352,227**
9,901
69,804
19,786
-
3,270
12,120
**114,881**
8,832
19,724
105
383
14,972
2,904
**46,919**|
|---|---|---|---|
||**107,028**
30,531
15,918|**222,922**
**28,166**
**495**
63,590
8,035
-
33,154
4,189
-|**102,156**
**53,262**
**514,028**
(102,156)
-
**-**
-
(53,262)
**-**|
||**153,477**|**319,666**
**40,390**
**495**|**-**
**-**
**514,028**|
**33 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2022
## **5. Net expenditure for the year**
|This is stated after charging:|This is stated after charging:|**2023**
**£**|**2022**
**£**|
|---|---|---|---|
|Depreciation||9,847|400|
|Auditor's Remuneration:||||
|Audit fee
Other services||11,600
1,700|10,100
1,825|
**34 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **6. Staff costs and numbers, and trustee remuneration**
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|£|£|
|Wages and Salaries|320,106|306,385|
|National Insurance Costs|34,538|36,692|
|Pension Contributions|9,470|9,150|
|Total Staff costs|364,114|352,227|
**----- End of picture text -----**
The average number of people employed by the charity during the year was as follows:
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|Total|5.0|5.0|
**----- End of picture text -----**
The following number of employees received employee benefits (excluding employer pension costs and employer’s national insurance) during the year between:
**----- Start of picture text -----**
||||
|---|---|---|
|2023|2022|
|£120,000-£129,999|1|1|
|£60,000-£69,999|1|-|
**----- End of picture text -----**
The charity considers its key management personnel to be the Chief Executive and the Trustees. The total employment benefits of the Chief Executive including National Insurance and pension were £139,482 (2022: £139,165).
The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £nil).
Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £48 (2022: £nil) incurred by one (2022: zero) member relating to meeting expenses.
**35 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **7. Tangible Fixed Assets**
|(Long
**Cost/Valuation**
Brought forward
as at 1 Jun 2022
Additions in year|Buildings
Leaseholds)
Leasehold
Improvements
Assets under
construction
Plant and
Machinery
Computer
Equipment
**Total**
£
£
£
£
£
**£**
4,650,000
-
120,492
-
1,200
**4,771,692**
13,328
533,247
278,155
53,596
-
**878,326**|
|---|---|
|**As at 31 May 2023**|**4,663,328**
**533,247**
**398,647**
**53,596**
**1,200**
**5,650,018**|
|**Depreciation**
Brought forward
as at 1 Jun 2022
Charge in year|-
-
-
-
833
**833**
-
7,932
-
1,549
367
**9,847**|
|**As at 31 May 2023**|**-**
**7,932**
**-**
**1,549**
**1,200**
**10,680**|
|**Net Book Value**||
|**As at 31 May 2023**|**4,663,328**
**525,315**
**398,647**
**52,047**
**-**
**5,639,338**|
|||
|As at 31 May 2022|4,650,000
-
120,492
-
367
**4,770,859**|
All of the above assets are used for charitable purposes. Buildings are on a 999 year lease. The historic cost of Buildings is £4,138,328.
**36 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **8. Debtors**
|**Due within one year**
Trade debtors
VAT Debtor
Prepayments
Accrued income
**Total debtors**|2023
2022
£
£
27,060
-
-
500
3,300
5,383
84,113
64,116
**114,473**
**69,999**|
|---|---|
## **9. VAT Creditor**
|**Creditors due within one year**
Trade creditors
Other creditors
VAT creditor
Accruals
**Total Creditors due within one year**
**Creditors due in more than one year**
Long term loan|2023
2022
£
£
26,991
108,939
919
905
14,027
-
7,000
8,080|
|---|---|
||**48,937**
**117,924**|
||700,000
700,000|
||**700,000**
**700,000**|
The long term loan represents financing from NESTA's Arts and Culture Impact Fund. The loan is for a period of 8 years at a fixed interest rate of 3%. Capital repayments will begin in June 2024. It is secured on Block A of Wallis Road.
|2024. It is secured on Block A of Wallis Road.||
|---|---|
|Repayments due within 1-5 years
Repayments due in more than 5 years|2023
2022
£
£
452,553
334,280
247,447
365,720|
||**700,000**
**700,000**|
**37 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **10a. Movement in Funds (Current year)**
|**Unrestricted Funds**
**General Funds**
**Designated Funds**
Historic Cost
Revaluation Reserve
**Total Designated**
**Restricted Funds**
Main Programme
Funding
Creative
Workspace
Resilience Fund
GLA - other grants
TfL Feasibility
Architectural
Heritage Fund
**Total Restricted**
**Total Funds**|**Balance at**
**1 Jun 2022**
**Income Expenditure**
**Transfers Revaluation**
**Balance at**
**31 May 2023**
**£**
**£**
**£**
**£**|
|---|---|
||**15,097**
**160,677**
**(87,143)**
**-**
**-**
**88,631**|
||4,272,981
-
(9,847)
291,844
-
4,554,978
497,878
-
-
-
-
497,878|
||**4,770,859**
**-**
**(9,847)**
**291,844**
**-**
**5,052,856**|
||
1,253,255
657,870
(439,198)
(191,959)
-
1,279,968
2,337
-
(417)
-
-
1,920
29,594
65,132
(69,183)
-
-
25,543
-
25,000
(25,115)
115
-
-
72,295
27,705
-
(100,000)
-
-|
||**1,357,483**
**775,707**
**(533,914)**
**(291,844)**
**-**
**1,307,432**|
|||
||**6,143,439**
**936,384**
**(630,904)**
**-**
**-**
**6,448,919**|
## **Purpose of restricted funds:**
_Main Programme Funding:_ Seed funding granted to acquire buildings and support the operations of Creative Land Trust before it becomes self-sufficient.
_Creative Workspace Resilience Fund –_ fund to provide financial support for studio providers experiencing financial difficulties due to COVID-19. Residual expenditure is to store and retrieve reporting data.
_Architectural Heritage Fund:_ Project funding towards restoring a heritage building.
_GLA Other grants –_ High Streets for All and money towards a feasibility study.
_TfL feasibility –_ grant to carry out feasibility work at a potential site.
## **Purpose of designated funds**
Funds are designated to match the value of assets less outstanding liability on loans funding those assets.
Transfers out of restricted funds and into designated funds represent the purchase of assets with grant funding.
**38 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **10b. Movement in funds (prior year)**
|**Unrestricted Funds**
**General Funds**
**Designated Funds**
Historic Cost
Revaluation Reserve
**Total Designated**
**Restricted Funds**
Main Programme
Funding
Creative
Workspace
Resilience Fund
GLA - other grants
Architectural
Heritage Fund
**Total Restricted**
**Total Funds**|**Balance at**
**31 May 2021**
**Income Expenditure**
**Transfers Revaluation**
**Balance at**
**31 May 2022**
**£**
**£**
**£**
**£**|
|---|---|
||**13,770**
**7,013**
**(5,686)**
**-**
**-**
**15,097**|
||-
-
-
4,272,981
-
4,272,981
-
-
-
-
497,878
497,878|
||**-**
**-**
**-**
**4,272,981**
**497,878**
**4,770,859**|
||
3,455,703
2,566,622
(496,088)
(4,272,981)
-
1,253,255
2,832
-
(495)
-
-
2,337
-
34,000
(4,406)
-
-
29,594
-
79,649
(7,354)
-
-
72,295|
||**3,458,535**
**2,680,271**
**(508,342)**
**(4,272,981)**
**-**
**1,357,483**|
|||
||**3,472,305**
**2,687,284**
**(514,028)**
**-**
**497,878**
**6,143,439**|
**39 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **11. Analysis of net assets between funds**
## **Current year:**
|Tangible Fixed Assets
Current Assets
Current liabilities
Long term liabilities
**Total**
**ear:**
Tangible Fixed Assets
Current Assets
Current liabilities
Long term liabilities
**Total**|**Restricted**
**Designated**
**Unrestricted**
**Total**
**2023**
**2023**
**2023**
**2023**
**£**
**£**
**£**
**£**
-
5,639,338
-
5,639,338
1,356,369
-
202,149
1,558,518
(48,937)
-
-
(48,937)
-
(586,482)
(113,518)
(700,000)|
|---|---|
||**1,307,432**
**5,052,856**
**88,631**
**6,448,919**|
||**Restricted**
**Designated**
**Unrestricted**
**Total**
**2022**
**2022**
**2022**
**2022**
**£**
**£**
**£**
**£**
-
4,770,859
-
4,770,859
1,475,408
-
715,097
2,190,505
(117,924)
-
-
(117,924)
-
-
(700,000)
(700,000)|
||**1,357,483**
**4,770,859**
**15,097**
**6,143,439**|
## **Prior year:**
**40 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **12. Prior Year Statement of Financial Activities**
|**Income From**
Donations and Legacies
Investment income
Other trading income
**Total Income**
**Expenditure on**
Raising Funds
Charitable Activities
**Total Expenditure**
**Net Income for the year**
Transfers between funds
Net income / (expenditure)
before other recognised
gains and losses
**Gains on revaluation**
**of fixed assets**
**Net movement in Funds**
**Reconciliation of Funds**
Total Funds Brought Forward
**Total Funds carried forward**|**Restricted**
**Funds**
**Designated**
**Funds**
**General Funds**
**Total Funds**
**2022**
**2022**
**2022**
**2022**
**£**
**£**
**£**
**£**
2,678,040
-
-
**2,678,040**
2,231
-
13
**2,244**
-
-
7,000
**7,000**|
|---|---|
||**2,680,271**
**-**
**7,013**
**2,687,284**|
||153,477
-
-
**153,477**
354,865
-
5,686
**360,551**|
||**508,342**
**-**
**5,686**
**514,028**|
||**2,171,929**
**-**
**1,327**
**2,173,256**|
||(4,272,981)
4,272,981
-
**-**|
||**(2,101,052)**
**4,272,981**
**1,327**
**2,173,256**|
||-
497,878
-
**497,878**|
||**(2,101,052)**
**4,770,859**
**1,327**
**2,671,134**|
||3,458,535
-
13,770
**3,472,305**|
||**1,357,483**
**4,770,859**
**15,097**
**6,143,439**|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.
**41 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **13. Operating lease commitments receivable as a lessor**
Amounts receivable under non-cancellable operating leases are as follows for each of the following periods:
|Less than one year
One to five years|**2023**
**2022**
**£**
**£**
162,666
86,269
459,551
622,217|
|---|---|
||**622,217**
**708,486**|
Lease amounts are calculated up to the first break clause.
**42 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **14. Related Party Transactions**
During the year we contracted Outset Contemporary Arts to organise an event for us, paying a fee of £10,000 on an arm’s length basis to cover staff time and other costs. Candida Gertler is one of our trustees and is also a co-founder and director of Outset Contemporary Arts. Candida Gertler was not involved in the decision to use Outset, which was taken after reviewing other options to determine value for money.
There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.
## **15. Taxation**
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
## **16. Capital Commitments**
There were no capital commitments at the balance sheet date.
## **17. Legal position of the charity**
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
**43 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
## **Administrative and Reference Information**
**Company number** 11367824 **Country of incorporation** United Kingdom **Charity number** 1182876 **Country of registration** England & Wales **Registered office:** Invicta House 108-114 Golden Lane London EC1Y 0TL
**Please note:** the best way to contact us is to email info@creativelandtrust.org
## **Trustees**
(all in place during the year and up to the date of this report unless otherwise stated)
Catherine Webster (Co-Chair) Alex Notay (Co-Chair) Malene Oddershede Bach Philip Bier Natalie Carter James Cooksey Michael Davis Candida Gertler OBE Sue-Lin Heng John Lewis (resigned 5th July 2023) Alice Millest Pawan Sharma Krupa Thakrar Daniel Silver Haroon Mirza (from 7th July 2022, resigned 30th July 2023)
## **Artist Ambassadors:**
Emmanuel Unaji Adelaide Damoah Yinka Shonibare CBE
## **Key management:**
Gordon Seabright, Chief Executive Officer
## **Bankers:**
The Co-operative Bank P.O. Box 101, 1 Balloon Street, Manchester M60 4EP
## **Auditor:**
Sayer Vincent LLP Chartered Accountant and Statutory Auditor Invicta House 108-114 Golden Lane London EC1Y 0TL
## **Solicitors**
Burges SalmonLLP One Glass Wharf, Bristol, BS2 0ZX
Russell Cooke LLP 8 Bedford Row, London WC1R 4BX
Dechert LLP 160 Queen Victoria St, London EC4V 4QQ Bates, Wells and Braithwate London LLP 10 Queen St Pl, London EC4R 1BE
**44 — Creative Land Trust** — Annual Report and Accounts - Year ended 31 May 2023
Creative
Land Trust
Making Space for Art