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2021-03-31-accounts

The Photographers’ Gallery Limited (Company limited by guarantee)

Annual Report and Consolidated Financial Statements

Year Ended

31 March 2021

Registered Number 00986208 Charity Number 262548

The Photographers’ Gallery Limited

Report and financial statements for the year ended 31 March 2021

Contents

Page:

The Photographers’ Gallery Limited

Reference and administrative information

for the year ended 31 March 2021

Constitution and objects

The Photographers’ Gallery Limited is a registered charity whose objects are to further advance photography as an art form, promote public knowledge, appreciation and understanding of the medium and organise public exhibitions and projects to these ends. The Photographers’ Gallery is a company limited by guarantee governed by its Memorandum and Articles of Association.

Trustees

Matthew Stephenson (Chair) Myfanwy Barrett (Chair of FGP) (resigned 21 June 2021) Jananne Al-Ani Rio Blake (resigned 15 March 2021) Deborah Botwood Smith (appointed 22 February 2022) Symon Elliot Alex Hess James Kelly (appointed 22 February 2021)

Montana Leigh Hall (appointed 1 March 2021) Mark Lewis (appointed 1 March 2021) Daniel Oudkerk Eileen Perrier (resigned 13 October 2021) Joe Phelan Jonathan Shaw Michelle Shuttleworth (appointed 1 March 2021) Elspeth Walker (appointed 15 March 2021) Kay Watson (appointed 1 January 2022)

Chief Executive

Brett Rogers

Secretary

Andrew Gault

Registered office

16-18 Ramillies St, London, W1F 7LW

Statutory Auditor

BDO LLP, 55 Baker Street, London, W1U 7EU

Bankers

National Westminster Bank plc, 2a Charing Cross Road, London, WC2H OPD

Solicitors

Swan Turton LLP, 3[rd] Floor, 8 Baltic St, London EC1Y0UP

Charity number

Type text here

262548

Company number 00986208

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The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report)

for the year ended 31 March 2021

About The Photographers' Gallery

The Gallery opened in 1971 at No 8 Great Newport Street, Covent Garden in London. Founded initially to provide free access for all to engage with the best of British and international photography, the Gallery played a seminal role from the 1970s in establishing the medium as a distinct art form whilst providing London with the only dedicated venue for photographers to show their work to the widest possible audience. The past five decades have seen photography evolve from the margins of institutional recognition to become one of the most influential and ubiquitous contemporary art forms.

We have played a significant role in this transformation, particularly in the UK, by exhibiting some of the world's most ground-breaking and celebrated photographers. At the same time, with the emergence of modern technologies and the phenomenon of social networking, the use of photography has become even more ubiquitous and democratized for people across the world as both a tool for creativity and communication. The Gallery is widely recognised as a pioneer in exhibiting, educating, and engaging people with the photographic medium and our place in the UK’s cultural history by promoting this art form both in the UK and around the world.

With the support of Arts Council England, the organisation purchased and relocated to a new Gallery building on Ramillies Street, in London’s west-end in 2012. The move opened major new possibilities for our programming ambitions, enabling the display of significant historical work, retrospectives by the world’s most important photographers and large-scale international touring shows. Education and access remain at the heart of who we are and informs everything we do. From an online experience, to visiting our gallery and our off-site projects, we encourage audiences to learn, contribute and share to widen dialogue, debate, and creativity. We are dedicated to supporting emergent talent and over the years have initiated a range of schemes and awards to exemplify this commitment.

Our Bookshop and Print Sales businesses additionally help to promote the publications and photographs of emerging and established practitioners, through book and product launches, the promotion and sale of selected photographers’ work at UK and international Art fairs, and by encouraging entry level sales of work to new art collectors. Photography and more broadly lens and screen-based media impacts every aspect of our contemporary lives: socially, politically, and culturally. In a world where we are bombarded with thousands of images every day; where technological, financial, and digital advancements have increasingly turned everyone into a photographer; and where a single image can effect change, the understanding, sharing, and decoding of images has never been more important to society.

Social inclusion and diversity are considered across all aspects of the Gallery’s activities, from audiences, public programming, to staffing and governance. One of the Gallery’s greatest assets are its employees and its dedicated trustees. The Gallery has a highly influential board of trustees and sub-committees steered by individuals with elevated levels of professional skill, a good mix of ages, gender, and ethnic diversity, all of which have been strengthened by the Chair Matthew Stephenson and Chair of Finance Michelle Shuttleworth. The expertise, commitment, skills, knowledge, networks and enthusiasm of both staff and trustees provide the driving force behind the success of the organisation, adherence to our charitable objectives and the success of our various business enterprises.

Fundraising Governance

The charity places immense importance on fundraising, governance and diversity and does not undertake any activity that could be classified as intrusive or persistent in its approach to individuals (vulnerable or otherwise), ensuring that it does not apply undue pressure to donors to support fundraising activities. The charity does not employ third party commercial participators or professional fundraisers to support the efforts of the in-house fundraising team. Any complaints regarding fundraising activities are referred to the Director and, during the year, no such complaints were received (2020-21: None). The Board also approved an Ethical Fundraising Policy which is now available under “Policies’ on our website. Trustees reviewed and updated the Gallery’s Equality, Diversity, and Inclusion policy in 2020 which commits us to specific goals and actions around cultivating the diversity of our staff, our board, and our audiences, is a key priority over the coming years.

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The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report)

for the year ended 31 March 2021 (continued)

Objectives and Activities

Public Benefit

The Photographers’ Gallery Limited is an incorporated registered charity whose objective is to further advance photography as an art form, promote public knowledge, appreciation and understanding of the medium and organise public exhibitions and projects to these ends. We fulfil this by:

The Photographers’ Gallery Limited is a company limited by guarantee governed by its Memorandum and Articles of Association. The Gallery incorporates a highly successful subsidiary, The Photographers' Gallery (Enterprises) Limited. In 2020-21 both entities had a consolidated annual income of £3,735,380 (2020 - £3,502,335) and made a surplus of £803,501 (2020 – deficit of £213,956).

Vision and Vision

Our mission:

Our vision:

Our aims:

Our Position:

Our Offer:

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Trustees’ report (incorporating a Directors’ Report) for the year ended 31 March 2021 (continued)

The Photographers’ Gallery Limited

Business Overview 2020-21

In 2020-21 the Covid-19 pandemic continued to have a profound impact on society, the economy, and the arts sector. Businesses from every sector have had to adapt and innovate, often relying on financial support from various government schemes. In the UK one of the sectors most affected by Government Covid restrictions was hospitality, which included arts and cultural venues. Without the unprecedented financial support from Government through the furlough scheme, through the Cultural Recovery Fund or by companies, foundations, and individuals, many arts organisations in the UK would have permanently closed. Trustees and staff would like to acknowledge this financial support that means the Gallery is in a relatively stable financial position as the sector reopens, audiences return, and society emerges from the impacts of the pandemic.

On March 19th, 2020, our trustees followed Government advice and closed the Gallery in response to the arrival of Covid-19 in the UK. Throughout the various Government lockdowns that followed, the Executive and staff made significant changes to the Gallery’s business operations, reducing expenditure, cancelling or postponed our exhibitions, furloughing staff, and moving parts of our programme online. While most staff were initially furloughed or worked part-time from home, a few members of staff from the operations, finance and business enterprise teams remained onsite, maintaining the building, providing IT/HR and administrative support to staff, and to fulfil online sales orders.

The Gallery reopened to the public in July 2020 following Covid-safe guidance, then closed again in November 2020 and remained closed until May 2021 when restrictions were gradually lifted. In total we were open to the public for four out of the twelve months, which had a devasting impacted on earned revenue from admissions, talks, gallery hires, and from our Bookshop and Café. Our fundraising team worked hard to maintain and garner support from members, patrons, trusts and foundations and Corporates. We protected staff jobs using the Government’s furlough scheme and by controlling costs. Arts Council England continued their regular NPO funding grants throughout the pandemic and awarded the Gallery two Covid support grants from the Cultural Recovery Fund. The Wolfson Foundation awarded a substantial Covid support grant, and the Deutsche Borse Foundation continued their exceptional sponsorship of the annual Photography Prize, signing a new three-year contract with the Gallery. Because of this financial support, the Gallery was able to stabilize our finances throughout the pandemic and meant we had sufficient cash reserves in place when we reopened to the public in May 2021. These covid support grants are now being used to support costs as Government schemes are withdrawn, people begin to return to arts venues, and to mitigate the continued impacts of the Omicron covid variant on footfall and revenue.

As society reopens post pandemic, and people come back into city centres, one of the primary legacy impacts of Covid-19 has been an acceleration of digital literacy. All areas of the economy have needed to adapt to lockdowns, with many of these changes becoming permanent, affecting the way people live/work and spend their free time. Over the past 18 months the Gallery took the opportunity to progress several key IT infrastructure and building upgrades, adapting to the ‘the new normal’. We completed a 3-year investment to update our IT infrastructure, CRM, POS, website, and e-commerce systems. This investment helped the Gallery rebuild and re-engage with our audiences and led to significant advances in the Gallery’s digital capabilities, developing online income streams, providing free services to audiences and patrons. We adapted our building and offices to be covid-safe spaces and installed new LED lighting throughout the gallery-reducing electricity usage by c 40%. We also updated the Gallery’s Plant and M&E systems, paving the way for us to borrow works from around the world with museum quality environmental control of individual gallery spaces. Currently, we are upgrading our ground floor area in response to a £3.2m investment by Westminster Council to semi-pedestrianise the area around the Gallery and launch The Soho Photography Quarter.

As we emerge from the impacts of the pandemic, the arts sector, along with many other businesses, needs to reengage with visitors and continue to diversify, adapt, and innovate to remain relevant. Having experienced a resurgence of audience numbers to near pre-pandemic levels in early 2022, trustees and staff are cautiously optimistic about the opportunities our investments in the building, online and in staff will provide the Gallery over the next 12-24 months.

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The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report) for the year ended 31 March 2021 (continued)

Consolidated statement of financial activities 2020-21

The Gallery’s financial statements for 2020-21 show Income of £3,735,380 and Expenditure of £2,931,879 making a surplus of £803,501. The Gallery made several successful funding applications for Covid support during the year and was awarded £280,000 from the Arts Council Emergency Fund, £356,420 from the Cultural Recovery Fund, £120,000 from the Wolfson Foundation, and up to £71,672 from the Capital Kickstart Fund. The Deutsche Borse Photography Foundation continued their £190,000 pa sponsorship of our annual photography prize and our patrons and members continued to support the Gallery with £155,765 in donations even though we were closed for a lot of the year. We received most of this Covid support funding between October 2020 and March 2021 as the country went into its third and longest lockdown period; and only began to use these funds to support our activities post year-end. The Gallery reopened to the public in May 2021 operating strict capacity controls as audiences cautiously returned to the building. In December the Omicron variant once again significantly impacted earned income and the Gallery closed to the public. The Gallery is currently projecting an operational deficit for the current financial year 2021-22, and as we emerge again from the impacts of the pandemic, we are now entering a period of highinflation, wage pressures and economic uncertainty throughout Europe. Thanks to these Covid support grants the Gallery is in a stable financial position with sufficient cash reserves to proceed with our ambitious future programme, welcoming audiences back to our building in London’s West End.

The table below shows the distribution of income and expenditure in 2020-21. In 2019-20 government support through Arts Council England was just 26% of turnover. In 2020-21 government support through Arts Council England, Covid support grants and the furlough scheme accounted for 55% of turnover. Our income from our Business Enterprise dropped from 51% to 31%.

Income 2020-21 Percentage
of turnover
Income from our Business Enterprise 31% £1,170,522
Arts Council England NPO Grant 25% £918,867
Other Public Covid Support Grants 18% £681,625
Government Furlough Scheme 12% £437,398
Philanthropic Giving, Corporate, Trust and Foundations 7% £268,757
Admission Income and Membership Schemes 7% £235,723
Investment and other income - 22,488
Total Income 100% £3,735,380
Expenditure 2020-21
Enterprise Costs 33% £957,587
TPG Staff Costs 28% £824,393
Our Programme Costs 31% £873,705
Building, Admin, Overhead and Depreciation Costs 8% £276,194
Total Expenditure 100% £2,931,879

Earned Income 2020-21

The most dramatic financial impact of the pandemic was to earned income which dropped from £2,250,161 in 201920 to £1,406,245 in 2020-21. Our Business Enterprises businesses were significantly impacted by multiple lockdowns and saw turnover dropped by £609,594 on the previous year. Our Bookshop and Café were closed for much of the year. The Café made a loss of £41,706 the Bookshop a loss of £73,571, but our Print Sales business continued to thrive making a profit of £111,232, as their entire stock is available online, and clients had more disposable income during lockdowns. Ticketing income from our talks and events was just £23,461, and income from exhibitions admissions was £56,497 down from £299,534in 2019-20.

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The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report)

for the year ended 31 March 2021 (continued)

Fundraising, Membership and Trust and Foundation Income

The Gallery is immensely grateful for the continued support from individuals, patrons, foundations, and companies who supported the Gallery over many years and especially through the pandemic. The Gallery raised a total of £403,522 (2020: £464,807) of which £nil from individuals, £97,092 from trust/foundations, £150,665 from Corporates and £155,765 from various membership/other schemes. In addition, the team secured £190,000 for the DB Foundation Prize, reflected in Business Enterprises Income above.

Arts Council Funding:

The support from Arts Council England (ACE) has been pivotal in securing going concern for the Gallery, through this turbulent period for self-generated income. In 2020-21 we received £918,867 from National Portfolio Grant (2020: £902,265), £280,000 from the Covid Emergency Fund, £320,778 from the Cultural Recovery Fund (2020: £nil. These grants have been vital in stabilizing the Gallery’s finances during the pandemic compensating for the loss of earned income outlined above and supporting higher operational costs of reopening in a Covid safe environment with around 35% of our usual footfall over the summer 2021. Our Arts Council support has and remains critical to our success of the Gallery.

Building Valuation:

In August 2019 Knight Frank LLP revalued The Photographers Gallery building at 16-18 Ramillies St, London W1 to a freehold value of £11,000,000. The impact of Covid-19 on central London property prices has not yet been established, therefore Trustees will seek a further revaluation in 2022. The trustees have considered the valuation as shown in the accounts and do not consider the carrying value to be materially misstated. Depreciation of £160,239 has been applied during the financial year, but with new equipment and additions the Gallery recognises a fixed assets value of £10,903,992 (2020: £10,775,695).

Trustees and Staff:

Over the year, trustees and senior management were focused on the safety and wellbeing of staff, financial stability, and providing both an online and on-site programme for audiences. Trustees reviewed the organisation’s legal; risk management and other compliance polices to ensure effective governance and best practice were being followed. In response to BLM, trustees and staff begun a comprehensive review of our Equality, Diversity and inclusion polices, which is still underway. Reflecting on the increase in global awareness of issues around environmental sustainability, Gallery’s staff and trustees placed a greater emphasis on the organisation’s environmental footprint using ACE’s Julie Bicycles Toolkit to minimise waste, exhibition build and travel costs. Trustee meetings moved online, with additional meetings, robust monitoring of finances and support by trustees continuing throughout the pandemic. There were six appointments made to the board of trustees in 2020-21.

Trustees and Staff followed all government guidance throughout the pandemic, furloughing staff where appropriate and providing appropriate levels of support for staff across the organisation. The length of the pandemic and the stop-start-stop of lockdowns had a significant impact on staff morale and in some cases their mental wellbeing. Internal and external support mechanisms were put in place and investment in facilitating home working and a safe Covid workspace was introduced, with the executive and trustees remaining engaged with staff throughout the year. In April 2020 the executive negotiated through the Staff Forum several temporary changes contract of employment to reduce costs, secure jobs and financially support staff at all levels of the organisation. Some staff took a 20% reduction in pay which was reversed when the gallery secured various Covid support grants. In 2021 staff were awarded pay increases of between 1-3% and continued to pay the minimum of the London Living wage for all casual staff. As we emerge from the impacts of the pandemic the arts like many other sectors in the economy is beginning to experience staff shortages, higher levels of staff turnover, and requests for more flexible working. With UK RPI index running at 5% there will be further pressure on increasing pay levels for all staff throughout 2021/2022.

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The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report)

for the year ended 31 March 2021 (continued)

Summary of Exhibition Programme 2020-21

The Covid-19 pandemic has, to a considerable extent, paralysed the artworld and put the work of most cultural institutions on hold. Galleries closed and started moving some of their content online, opening-up opportunities to search out what alternative activities can – and are - taking place, as well as connecting the gallery to a new, more Global, audience.

International and Touring Programme

The Gallery’s FY2019-20 International programme looked at building, engaging and cultivating international audiences and highlighting British artists, working with the support of our partners to develop a unique content and digital engagement strategy. We had one exhibition touring this year- the Deutsche Borse Foundation Photography Prize 2019 in Frankfurt (June- September). Our Dave Heath was developed by Le Bal Paris where it was shown in winter 2018/19 and our Feast: Food for the Eyes was curated by Susan Bright and Denise Wolf, Aperture New York. Everest Pipkins’ digital commission was shown at the Chronus Art centre Shanghai in an exhibition “We Linked Sideways’. The Gallery is currently developing a number of projects with both international and UK partners for our 2020-24 programmes.

- Season 1 (Open for 11 weeks during period 21 Feb 2020 28 Sept 2020)

Audience 31,008

Deutsche Borse Foundation Photography Prize 2020: (Season 1)

The four artists shortlisted for the Deutsche Börse Photography Foundation Prize 2020 were Mohamed Bourouissa (AL) nominated for Free Trade at Rencontres d'Arles, France; Anton Kusters (BE) for the Blue Skies Project, which was exhibited at Fitzrovia Chapel, London; Mark Neville (UK) for Parade, published by the Centre d’Art GwinZegal, Guingamp, France, and Clare Strand (UK) for The Discrete Channel with Noise exhibited at PHotoESPAÑA, Madrid. The exhibition was planned to tour as usual to the DB headquarters in Frankfurt for the summer.

Jan Svoboda: Against the Light (Season 1)

The Jan Svoboda exhibition, the first retrospective show of the artist’s work in the UK and a collaboration with the Moravian Gallery in Brno was the largest show of original works by the artist outside of the Czech Republic. It involved public and private loans, and TPG was pleased to gain Immunity from Seizure Status from the DCMS for this show which will continue to be important going forward, increasing our ability to borrow works from international collections.

As the shows were due to end in June 2020, the loan of works, in particular the archival works of Svoboda, had to be renegotiated as lockdown continued. Regrettably the tour to Frankfurt had to be cancelled as the DB headquarters remained closed for much of 2020. The exhibitions reopened from 9th July 2020 until 20th September 2020. The DBPFP’20 prize giving ceremony was successfully moved from May to early 14th Sept as a hybrid event, with Mohamed Bourouissa awarded the 2020 award. The planned summer shows - Helen Cammock and Helen Levitt – were negotiated into the 2021 programme with agreement from Touchstones in Rochdale, Film and Video Umbrella and the Albertina in Vienna.

Print Sales Gallery Exhibition Programme (Season 1)

The Gallery Print Sales programme moved online showing work by Shirley Baker, Wolfgang Suchitzky: Sage Sohier, Daniel Naude. In September we opened our first physical show in Print Sales with work by Julie Cockburn renowned for re-imagining and re-configuring found objects and vintage photographs into meticulously constructed and unique contemporary artworks. The new works on display in Balancing Act - Cockburn’s third solo show a rich in landscape, domesticity, and the human form, altered by her playful language of abstraction and intervention.

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The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report)

for the year ended 31 March 2021 (continued)

Digital Programme (Season 1)

The Digital Team were under immense pressure following lockdown in March 2020 as all TPG’s activities either ceased or changed to an online format. Unthinking. photography continued to commission new, innovative texts and projects for publication on the website throughout lockdown.

The Media Wall commissions were created under the Data/Set/Match annual theme, but the team also worked hard to adapt these projects so they could operate both on the Media Wall and online with accompanying texts and reflection on the unthinking.photography website.

Anna Ridler: Laws of Ordered Form had opened on the 2 February 2020. Ridler’s project creates a “historic” ImageNet using labels and photographs from Victorian and Edwardian encyclopaedias to show how the echoes of historic taxonomies and beliefs can still be heard in modern implementations of machine learning. It was reopened in July and extended until the end of the month but also adapted online. Philipp Schmitt: Declassifier screened through August on the Wall. Schmitt’s work uses a computer algorithm trained on an image dataset developed by Microsoft. His work exposes the myth of magically intelligent machines; The data by which machine learning algorithms learn to make predictions is hardly ever shown, let alone credited.

– Season 2 (Open for 6 weeks during 10 October 2020 31 May 2021)

Audience 19,797

From Here to Eternity: Sunil Gupta. A Retrospective (Season 2)

The Sunil Gupta exhibition was a collaboration with Autograph ABP and Ryerson Image Centre, Toronto. As Gupta’s (b New Delhi, 1953) career runs in parallel to the 50 years of TPG, Gupta was the ideal artist to celebrate alongside the 50th anniversary. His work has addressed key issues around the representation of gay culture and identity politics. From early work involving street scenes in late 70s London shown in dialogue with more conceptual series’ including From Here to Eternity, this was an opportunity to reexamine and reintroduce a key figure to new and younger audiences.

Print Sales Gallery Exhibition Programme (Season 2)

Evgenia Arbugaeva: Hyperborea - Stories from the Russian Arctic. Documentary photographer, Evgenia Arbugaeva (Russia, 1985) creates magical realist compositions which are steeped in fairytale and fable and use fleeting traces of the Arctic polar nights to create a heightened sense of space and perspective. Her work enabled TPG to discuss important themes such as climate change as well as the opportunity for a curated display tracing the roots of print sales at the Gallery throughout our 50-year history and to sell prints (Arbugaeva is represented by Print Sales). The exhibition succeeded both critically (securing excellent coverage both nationally & internally) as well as commercially with strong sales of the work through Print Sales.

Digital Programme (Season 2)

Xtine Burroughs & Sabrina Starnaman: A Kitchen of One's Own - a speculative remix that confronts ‘Epic Kitchens’, a dataset of first-person cooking videos, with quotes from articles and social media posts on sexual harassment in professional and domestic kitchens, podcasts about the kitchen as a political space, and reflective texts by women authors about food and cooking.

A collaboration with Fotomuseum Winterthur, the Digital team initiated a new series entitled Screen Walks. Screen Walks is a series of live-streamed artist/researcher-led explorations of online spaces and artistic strategies designed to illuminate a thriving – often overlooked – digital cultural scene. Screen Walks takes visitors on a rare journey behind-the-scenes and screens of a range of artist projects and uncovers new, current and forgotten digital spaces. The Screen Walks programme has grown large and faithful online, international audiences since its inception and has included ground-breaking presentations, discussions and performances with artists including Penelope Umbrico, Mishka Henner, Roc Herms, Joana Moll, Alan Butler and The Dazzle Club.

In addition, the Digital Programme launched its new annual theme Imagining Networks - a year-long programme exploring the social, political, technological and environmental changes that enable human and machine interactions using images. It continued Documenting Digital Art, funded by the UK’s Arts & Humanities Research

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The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report) for the year ended 31 March 2021 (continued)

Council, the project is a collaboration between University of Exeter, LIMA, The Centre for the Study of the Networked Image, London South Bank University and The Photographers’ Gallery. Over three years, the project will analyse how digital art has been documented from the 1970s to the present day in museums and art galleries, looking at existing practices while also developing novel strategies for documenting, exhibiting and preserving digital art.

Curating Photography in the Networked Image Economy, is a partnership with Lucerne University of Applied Arts and Social Sciences (CH), Fotomuseum Winterthur (CH) and Foto Colectania (ES) with support from the Centre for the Study of the Networked Image, London South Bank University (UK) and the Computational Culture Lab, Australian National University. The project focuses on the problem of image curation in network culture, and how photographic institutions, social media users and computer scientists seek to address the problem of photographic ubiquity and its value. As such, it seeks to connect the previously disconnected fields of institutional photo curating, social media curating and computational curating.

Education and Public Programme 2020-21:

The education programme also pivoted online in response to Covid-19. Staff quickly focussed on three areas: developing online content for general audiences; supporting photographers and artists and continuing a careers programme with and for young people. Within several months, additional programmes included those for teachers and for people with visual impairments went live, alongside a successful bi-weekly programme led by the digital team (Screen Walks).

Our 50th anniversary provided a focus for 2021 programmes and dedicated website pages. Initially free of charge (with a request for donation), we subsequently moved to a ‘pay-what-you-can’ ticketing model following the introduction of our new Gamma POS system. We were grateful to continue to receive funding for Develop Program, our important teachers’ programmes, from the Vision Foundation and John Lyons Trust. This meant that we were able to support (schools/teachers/students?) with access to learning materials.

Programme highlights:

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The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report)

for the year ended 31 March 2021 (continued)

Communications: Brand, Audiences and Digital 2020-21

Our communications strategy had to be rapidly recalibrated throughout FY2020-21 due to Covid, and governmentimposed lockdowns. Pre-Covid our key ‘exchange’ with audiences across all main activities was focused on ‘in real life’ (IRL)/building based activity, with priority communications’ to drive footfall to the building. From March 2020, this switched to driving visitors online through digital content ensuring we remained visible and active for our core audiences - and as important to reach new audiences. We pivoted our messaging from reopening to further lockdowns, to reopening again this meant not only reassuring return visitors that we had appropriate Covid safe building but also ensuring that our offer felt relevant and enticing enough to reach new communities beyond our core and loyal audience groups. A key challenge has been how to balance a ‘hybrid’ experience, ensuring we continue to deliver a dynamic and engaging IRL experience. The three pillars of the Communications strategy during FY2020-2021 remained as follows:

1. Brand: Profile & Influence

The team worked hard and reactively to ensure that the Gallery received a steady level of positive media attention over the course of the year. During the first lockdown the focus was on generating coverage for responsive online programmes, which reflected an agile and topical response to global events. We shifted back to our live exhibition programme in July 2020 and secured positive reviews over all media platforms. We achieved strong coverage for the Print Sales Gallery programme and offsite Kings Cross open-air festival. The Deutsche Borse Photography Foundation Prize Award Night, Sunil Gupta and Evgenia Arbugaeva gave us further opportunities to attract high quality media coverage.

2. Audiences: Footfall & Cultivation

The Gallery building was only open to the public for 4 months in 2020-21 which severely curtailed or visitors’ numbers from 206,741 in 2019-20 to 50,805 in 2020-21.

Footfall: April 2020 – March 2021 Visitor Figures

----- Start of picture text -----
Main Galleries Gallery Daily Average Total period in Total days
Visitors YTD Visitors days 2020/21 open in 2020/21
Spring/ Summer 2020 31,008 393 213 79
DBPFPrize 2020
Jan Svoboda
Autumn 2020-21 19,797 396 235 50
Evgenia Arbugaeva
Sunil Gupta
Total 50,805 789 448 129
----- End of picture text -----

3. Data Capture & Cultivation:

We began the year as usual working with The Audience Agency , to gather data, however, our usual face-to-face method of gathering audience data was halted and we had to refocus not only our data collection, but also the insights we needed to inform our procedures and activities.

Physical Audiences: Key Demographics 2020-21

Demographic survey questions evolve each year; the table below cannot show a direct comparison but does give an indication.

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The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report)

for the year ended 31 March 2021 (continued)

----- Start of picture text -----
2020/21
Audience Statistics (Based on 400+ Audience Statistics 2019/20
questionaries)
Under 18 1% Young People 16-24 36%
5% 24%
18-24 Adults 25-34
16% 15%
25-34 Adults 35-44
24% 21%
35-50 Adults 45-64
51% 5%
Over 50 65 and Older
50% 41%
Male Male
46% 57%
Female Female
White White 77%
84%
Mixed: Multiple ethnic Mixed: Multiple ethnic 7%
4%
background background
Asian or Asian British Asian or Asian British 10%
8%
Black or Black British Black or Black British 2%
3%
Other Other 4%
1%
----- End of picture text -----

Digital: Engagement and Transactions

Gallery Website, Social Media and Digital Marketing:

Lockdowns brought a distinct set of challenges and opportunities to our digital output; key was the shift in all activities online with a renewed focus on e-commerce driven through online sales. Just prior to the first lockdown In March 2020, Print Sales Gallery went live with a new purpose-built commercial sale and viewing platform, Artlogic. This platform facilitated much smoother enquiry-to-conversion transactions for most works and for our exclusive Gallery Editions, and for the first time allowed people to’ click and buy’ works online. The area where we can reflect and evidence growth is across our social media channels, especially across the platforms (Instagram and YouTube) where we developed new or increased activity:

----- Start of picture text -----
Digital Statistics 2020/21 2019/20
Sessions 563,414 694,345
Unique Web Visitors 407,795 498,599
Page Views 1,632,865 1,843,739
Average Page Views per session 2.90 2.66
Average Time on Site 1:46min 1:42min
Twitter Followers 77,061 69,600
Facebook Fans 68,976 68,000
YouTube video views 53,700 30,611
Instagram 249,501 221,078
----- End of picture text -----

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The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report)

for the year ended 31 March 2021 (continued)

Diversity and Access 2020-21

Our chair, Matthew Stephenson, and Trustee Board continued to demonstrate their commitment to enhancing both the skills and diversity of our leadership. As three Board members were coming to the end of their terms in late 2021, the Nominations Committee, agreed that the focus should be on succession planning. For the first time we worked with a Board recruitment firm specialising in the charity sector (Nurole) on this recruitment and appointed two new Youth Trustees at the same time. As a result of these changes, our Board in March 2021 reflected a 50/50 female/male mix with 25% of the Board coming from diverse backgrounds. Our staff represent a broad ethnic, age, social-economic and sexual orientation demographic, that is reflective of London and the UK’s diverse population. Following a full review of our Equality, Diversity, and Inclusion (EDI) Policy in late 2020, we have updated our Staff Handbook and established a staff taskforce to consider how to improve our EDI performance across recruitment, communications, programming and organisational culture.

The Gallery’s audience data traditionally shows we clearly attract a young and diverse audience. Whilst the fact that lockdown meant the Gallery was closed for a large part of the year, preventing us from running our usual audience questionnaires, we estimate that the content of our vast online and IRL programmes would have appealed to diverse audiences and that 20-25% of the gallery’s visitors would have identified themselves as non-white. The Gallery’s programme continued to demonstrate our commitment to representing artists, speakers and course leaders drawn from a broad range of ethnic, cultural, and social backgrounds. Several free bursary places were offered on the Develop programme as well as on our general Gallery workshops and courses to those demonstrating financial need. We commissioned and worked in partnership with both UK and international galleries, collections, and individuals to exhibit substantial solo exhibitions of non-western practitioners, commissioned artists, speakers and run courses, workshops and online. In the absence of any IRL events during most of this financial year, our education programme actively sought to engage with and offered free access, tours, and workshops to young people through the Develop programme, Teen Tours and other programmes.

Business Outlook

As we emerge from the pandemic the arts sector will need to continue to diversify and innovate in the ways it engages with audiences. Although digital platforms have allowed us to continue to deliver content to audiences, we also need to provide safe physical spaces and social hubs where people can meet, discuss and engage with others remains important to the wellbeing of individuals and society. As a destination venue, based in central London, the Gallery primarily relies on fundraising, grants and generating earned income from physical visitors to the building. As we experienced from Covid restrictions this is at times a risky strategy, therefore we sought to diversify our offer - through new digital platforms/programmes and with the creation of the Soho Photography Quarter a free external public Art Space. Following the end of the financial year in review, the Gallery experienced a steady increase in visitor numbers with footfall retuning back at 65-70% of pre-pandemic levels, until the arrival of the Omicron variant in late 2021. We remain focused on developing our online offer, growing earned income, improving our audience reach, and providing greater resilience to future business disruption. Despite this, driving footfall into the Gallery building (thereby generating earned income through our Enterprise activities) is the only way the Gallery remains financially viable in the midterm.

One of our key strategies to achieve this, has been to work with Westminster City Council and number of key office/retail partners on a £3.2 million scheme to transform the public realm around the Gallery into a free-to-view Photography Gallery space called Soho Photography Quarter (SPQ). The streets around the Gallery will be semipedestrianised creating an inviting social space and we will programme two seasons of exhibitions within the public realm. Together with modest changes to the ground floor the project will transform the Gallery’s visibility and will enable us to attract more visitors off Oxford and Great Marlborough St increasing footfall, profile, and income. It is hoped that with higher visibility and the central London location, it will allow us to attract more commercial sponsorship and support for our programme. Construction work commenced in March 2021 and will be complete in April 2022.

The Trustees have considered the impact of the Ukrainian conflict on the charity and consider the impacts on the business to be additional inflationary pressures on energy and transport costs.

12

The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report)

for the year ended 31 March 2021 (continued)

Key Financial Goals 2022+

Going Concern:

Trustees have assessed the major risks to the Gallery, our programme, staff, operations, investments, and its finances. Trustees believe that they have established effective systems to mitigate those risks by ensuring that controls exist over key financial systems and by examining the operational and business risks through a risk register. Trustees confirm that they are satisfied that The Gallery and Enterprises Ltd businesses are both going concerns, although there is significant uncertainty in respect of normal business operations as the economy and the cultural sector reopens post pandemic, we do not believe this to be a material uncertainty. We received significant financial support from both public and private sources throughout 2020-22, that has mitigated most of the financial impact which Covid and has re-inflated the Gallery’s cash reserves to comply with our stated reserves policy. Our assumption is also based on a good record of financial governance by trustees and the executive, and a conservative budget forecast for 2022-23. The Gallery has several diverse income streams and is not usually over-reliant on any one of these sources of income and has secure NPO grant agreement in place until 2023 with Arts Council England and will make an application for further 4 years of NPO funding by May 2022. Trustees also own the freehold of the building, which was valued at £10,721,466 on 31 March 2021 and £1,859,809 is held as cash at 31[st] March 2021.

Risk Management:

Key to the financial stability of the Gallery is having reasonable cash reserves, and a robust Risk Management system which is regularly reviewed by trustees. The Gallery’s Risk register continues to be influenced by the negative impacts of Covid-19, Brexit and inflationary pressures on public sector budgets, a challenging fundraising environment. Trustees and Executive continue to use several effective business management strategies to set and monitor our annual objectives and to assist in mitigating ongoing operational and financial risks. Key risks we have identified for 2022-23. These are continually reviewed by trustees and assessed against the Gallery’s cash-flow and KPI’s.

Key Risks for 2022-23

13

The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report)

for the year ended 31 March 2021 (continued)

Updated Reserves Policy:

The trustees of the Gallery believe in the long-term sustainability of the organisation, to ensure adequate provision to absorb unforeseen financial circumstances and to take advantage of opportunities as they arise. The Gallery reserves policy statement is.

The finance sub-committee considers the most appropriate level of free reserves for the Gallery based on the projected turnover for the year and level of organizational risk. As part of calculating the current provision the committee considers the following:

Trustees have therefore increased the level minimum cash free reserves to c £800,000 or approximately 20% of annual operating income (2022-23 turnover). Total cash-in-hand on 31 March 2021 stood at £1,859,809 (2020: £591,067) and additional overdraft facilities of £250,000 are available with our bank, NatWest. The Gallery has an outstanding bank loan of £429,093 as of 31 March 2021 (2020: £461,355).

Structure, Governance and Management

The Gallery is a company limited by guarantee, and a registered charity. It has one owned subsidiary, The Photographers' Gallery (Enterprises) Limited, which is a company limited by shares. The Trustees are aware of the Charity Commission’s Governance Code for Larger Charities (published July 2017). The Code is based on seven principles of good governance: Organizational Purpose; Leadership; Integrity; Decision- making, Risk and Control; Board Effectiveness; Diversity, and Openness and Accountability.

Directors and Trustees:

The directors of the charitable company (the Charity) are its trustees for the purpose of Charity law and throughout this report are collectively referred to as the Trustees. As set out in the Articles of Association, the members of the Charity nominate the Chair of the Trustees. The Board of Trustees meets at least once every three months and govern all aspects of the Charity. Trustees are elected at the Annual General Meeting, at which one-third of those who have been longest in office can retire. Trustees may be re-elected to the Board by members and have the power to co-opt further members to fill specialist roles within the Trustees. In 2018 we made our first appointment of a Youth Trustee to the Board for a term of two years. There are sub-committees covering Finance and Nominations on which at least one trustee resides along with other independent advisers. The Director of the Charity is appointed by the Trustees to manage the day-to-day operations of the charity and to appoint the Executive team.

14

The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report)

for the year ended 31 March 2021 (continued)

Recruitment, Induction and Training of Trustees:

New Trustees are recruited according to the Trustees' and Director's on-going assessments of the overall skills required to be represented on the Board of Trustees and what additional skills are needed to complete the required portfolio. Prospective new Trustees are recommended to the Nominations Committee who will assess the candidates and decide, in consultation with the Director, whether to propose their appointment. The Trustees will then decide on whether to accept the Nominations Committee’s proposal. Newly appointed Trustees receive briefings from the Chairman, Director and Company Secretary and are provided with relevant Charity Commission guidance. Training is considered by the Chairman on a case-by-case basis.

The Trustees and committee advisors serving during the year, and changes since year end, were as follows:

The strategic management of the Gallery and the board of trustees (who are also directors of the charity) continued to benefit from the strong Chairmanship of Mr Matthew Stephenson, embedding comprehensive risk management processes and best governance practice.

Trustees and staff would like to thank those Trustees who are stepping down for their hard work and commitment to the Gallery over their terms of office and welcome our new members of the Trustee board.

Management structure

The day-to-day activities of the Gallery are controlled by the current Director Brett Rogers who is directly appointed by the Trustees and is an appointed Director of both the charity and is subsidiary company. In addition, there are 6 senior managers referred to as Team Leaders, who run departments and support the Director.

Arrangements for setting the pay and remuneration

Staff pay and remuneration are reviewed annually by members of the Finance and general purposes committee with recommendations made to the board annually. The Gallery’s Executive hold annual staff appraisals once a year, with any adjustments or changes to staff terms and conditions of employment or pay is recommended to the board by the Director. All pay levels and terms of conditions of employment are benchmarked against other London based arts organisations every 2-3 years. The Director’s pay and terms of employment are set directly by trustees.

15

The Photographers’ Gallery Limited

Trustees’ report (incorporating a Directors’ Report) for the year ended 31 March 2021 (continued)

Statement of Trustees’ responsibilities

The Trustees (who are also directors for the purpose of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the situation of the charitable company and the results of the charitable company for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and 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.

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 legislations in other jurisdictions.

As far as the Trustees are aware:

Auditors

A resolution concerning the appointment of BDO as auditor to the company, will be proposed at the Annual General Meeting.

Small company provision

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

Approved by the Board of Trustees on …………………………….. and signed on its behalf by:

Matthew Stephenson

16

The Photographers’ Gallery Limited

Independent auditor’s report to the members of The Photographers’ Gallery Limited

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of The Photographers’ Gallery Limited (“the Parent Charitable Company”) and its subsidiary (“the Group”) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities (incorporating income and expenditure accounts), Consolidated and Charity Balance Sheets, Consolidated 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Group and Parent 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.

Conclusions related 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 Group and the Parent Charitable Company'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 Trustees are responsible for the other information. The other information comprises the information included in the Trustees Report, other than the financial statements and our auditor’s report thereon. 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 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.

17

The Photographers’ Gallery Limited

Independent auditor’s report to the members of The Photographers’ Gallery Limited (continued)

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Trustees Report by the Board.

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;

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, 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 determines 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’s and the Parent 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 Group or the Parent Charitable Company 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 the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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

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:

18

The Photographers’ Gallery Limited

Independent auditor’s report to the members of The Photographers’ Gallery Limited (continued)

Based on our understanding of the Group, the Parent Charitable Company and the industry in which it operates, we identified that the principal laws and regulation that directly affect the financial statements to be the Companies Act 2006, the Charities Act 2011, Charities SORP and relevant Tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

In addition the Group and Parent Charitable Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: Employment Law, Data Protection and Health and Safety Legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence if any.

Audit procedures capable of detecting irregularities including fraud performed by the engagement team included:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://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.

Heather Wheelhouse (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Chartered Accountant and Statutory Auditor London, UK

Date:

BDO LLP is a limited liability partnership registered in England & Wales (with number OC305127)

19

The Photographers’ Gallery Limited

Consolidated statement of financial activities (incorporating an income & expenditure account) for the year ended 31 March 2021

Note
Unrestricted
funds
Designated
funds
£
£
Income from:
Donations and legacies
4
120,100
176,765
Other trading activities
13
1,170,522
-
Investments
5
238
-
Charitable activities - exhibitions
6a
998,825
59,057
Charitable activities – Covid grants
6b
1,119,023
-
Other income
22,250
-
___
___
Total income
3,430,958
235,822
___
___
Expenditure on:
Raising funds
17,776
-
Trading activities
13
957,587
-
Charitable activities - exhibitions
7
1,400,459
258,072
Charitable activities – depreciation
7
69,146
160,239
___
___
Total expenditure
2,444,968
418,311
___
___
Net income/(expenditure)
985,990
(182,489)
___
___
Net movement in funds
985,990
(182,489)
Fund balances brought forward at
1 April 2020
18
614,447
10,840,111
___
___
Fund balances carried forward at
31 March 2021
18
1,600,437
10,657,622

 Restricted
funds
£
30,565
-
-
38,035
-
-
___
68,600
___
-
-
68,600
-
___
68,600
___
-
___
-
-
___
-
 2021
total
funds
£
327,430
1,170,522
238
1,095,917
1,119,023
22,250
___
3,735,380
___
17,776
957,587
1,727,131
229,385
___
2,931,879
___
803,501
___
803,501
11,454,558
___
12,258,059
 2020
total
funds
£
384,603
1,784,758
888
1,310,269
-
21,817
_
3,502,335
_
56,617
1,328,960
2,105,202
225,512
_
3,716,291
_
(213,956)
_
(213,956)
11,668,514
_
11,454,558

All amounts relate to continuing activities.

All gains and losses recognised n the year are included in the statement of financial activities.

The notes on pages 24 to 45 form part of these accounts.

20

The Photographers’ Gallery Limited

Consolidated balance sheet

at 31 March 2021

Company number 00986208
Note
Fixed assets
Intangible fixed assets
11
Tangible fixed assets
12
Current assets
Stock
14
Debtors
15
Cash at bank and in hand
23
Creditors: amounts falling due within one year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after one year – bank loan
17
Net assets
19
Unrestricted funds
Operating fund
18
Designated funds
18
Total unrestricted funds
Restricted funds
18
Total funds		 2021
£
85,267
10,775,695
___
10,860,962
___
135,877
567,147
1,859,809
___
2,562,833
(781,427)
___
1,781,406
___
12,642,368
___
(384,309)
___
12,258,059
___
1,536,593
10,721,466
___
12,258,059
___
-
___
12,258,059
 2020
£
112,092
10,903,992
_
11,016,084
_
148,280
535,018
591,067
_
1,274,365
(389,539)
_
884,826
_
11,900,910
_
(446,352)
_
11,454,558
_
614,447
10,840,111
_
11,454,558
_
-
___
11,454,558

The financial statements have been prepared in accordance with the provisions applicable to small companies within Part 15 of the Companies Act 2006.

These financial statements were approved by the Board of Trustees on and authorised for issue and were signed on its behalf by:

Matthew Stephenson

Chairman

The notes on pages 24 to 45 form part of these accounts.

21

The Photographers’ Gallery Limited

Charity balance sheet

at 31 March 2021

Company number 00986208
Note
Fixed assets
Intangible fixed assets
11
Tangible fixed assets
12
Investments
13
Current assets
Debtors
15
Cash at bank and in hand
23
Creditors: amounts falling due within one year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after one year – bank loan
17
Net assets
19
Unrestricted funds
Operating fund
18
Designated funds
18
Total unrestricted funds
Restricted funds
18
Total funds		 2021
£
85,267
10,775,695
2
___
10,860,964
___
514,633
1,516,737
___
2,031,370
(440,361)
___
1,591,009
___
12,451,973
___
(384,309)
___
12,067,664
___
1,346,198
10,721,466
___
12,067,664
-
___
12,067,664
 2020
£
112,092
10,903,992
2
_
11,016,086
_
476,093
327,599
_
803,692
(224,104)
_
579,588
_
11,595,674
_
(446,352)
_
11,149,322
_
309,211
10,840,111
_
11,149,322
-
_
11,149,322

The financial statements have been prepared in accordance with the provisions applicable to small companies within Part 15 of the Companies Act 2006.

The charity has taken advantage of the exemption under Section 408 of the Companies Act 2006 not to publish its own Income and Expenditure account. The gross income of the charity alone was £2,892,634 (2020 - £2,220,037) and the net movement in funds was a surplus of £918,342 (2020 – deficit of £161,277).

These financial statements were approved by the Board of Trustees on issue and were signed on its behalf by:

and authorised for

Matthew Stephenson Chairman

The notes on pages 24 to 45 form part of these accounts.

22

The Photographers’ Gallery Limited

Consolidated and charity statement of cash flows for the year ended 31 March 2021

Net movement in funds
Depreciation and amortisation
Interest income
Interest payable
Foreign exchange loss on cash balances
Decrease/(increase) in stock
Increase in debtors
Increase/(decrease) in creditors
Cash generated/(used in) operating activities
Interest income
Purchase of intangible fixed assets
Purchase of tangible fixed assets
Cash used in investing activities
Interest paid on bank loan
Repayment of borrowing
Cash used in financing activities
Increase/(decrease) in cash and cash equivalents in the year
Cash equivalents at the beginning of the year
23
Movement on revaluation of foreign cash
Cash and cash equivalents at the end of the year
23,24		 Group
2021
£
803,501
229,385
(238)
12,521
8,500
12,403
(32,129)
362,107
___
1,396,050
238
(23,675)
(50,588)
___
(74,025)
___
(12,521)
(32,262)
___
(44,783)
___
1,277,242
591,067
(8,500)
___
1,859,809
 Group
2020
£
(213,956)
225,512
(888)
15,593
-
(22,529)
(95,417)
(81,014)
_
(172,699)
888
(25,379)
(18,877)
_
(43,368)
_
(15,593)
(30,508)
_
(46,101)
_
(262,168)
853,235
-
_
591,067

The notes on pages 24 to 45 form part of these accounts.

23

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021

1 Legal status

The Photographers’ Gallery Limited is a company limited by guarantee and has no share capital. It is a charitable company registered in England (company number 00986208, charity number 262548). The registered office is 16-18 Ramillies Street, London, W1F 7LW. On winding up, each person who is a member at the date of winding up or who ceased to be a member during the year prior to that date is liable to contribute a sum not exceeding £1 towards the assets of the company. As at 31 March 2021 the company has 16 members (2020 - 16 members).

2 Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the group and charity’s financial statements.

Basis of preparation and assessment of going concern

The financial statements have been prepared in accordance with the Charities SORP 2[nd] Edition (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.

These financial statements are presented in pounds sterling (GBP), as that is the currency in which the majority of the group’s transactions are denominated. They comprise the financial statements of the group for the year ended 31 March 2021 to the nearest pound.

The Photographers’ Gallery Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements have been drawn up on a going concern basis which assumes the group will continue in operational existence for the foreseeable future. In doing this, the directors have given due consideration to the working capital and cash flow requirements of the group for at least 12 months from the date of signature of the accounts.

Trustees have assessed the major risks to the Gallery, our programme, staff, operations, investments, and its finances. Trustees believe that they have established effective systems to mitigate those risks by ensuring that controls exist over key financial systems and by examining the operational and business risks through a risk register. Trustees confirm that they are satisfied that The Gallery and Enterprises Ltd businesses are both going concerns, although there is significant uncertainty in respect of normal business operations as the economy and the cultural sector reopens post pandemic, we do not believe this to be a material uncertainty. We received significant financial support from both public and private sources throughout 2020-22, that has mitigated most of the financial impact which Covid and has re-inflated the Gallery’s cash reserves to comply with our stated reserves policy. Our assumption is also based on a good record of financial governance by trustees and the executive, and a conservative budget forecast for 2022-23. The Gallery has several diverse income streams and is not usually over-reliant on any one of these sources of income and has secure NPO grant agreement in place until 2023 with Arts Council England and will make an application for further 4 years of NPO funding by May 2022. Trustees also own the freehold of the building, which was valued at £10,721,466 on 31 March 2021 and £1,859,809 is held as cash at 31[st] March 2021.

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

24

The Photographers’ Gallery Limited

Notes forming part of the financial statements for the year ended 31 March 2021 (continued)

2 Accounting policies (continued)

Basis of consolidation

These consolidated financial statements include the financial statements of the charity and its subsidiary undertaking for the period. The results and balance sheet of The Photographers’ Gallery (Enterprises) Limited are consolidated into these accounts, on a line-by-line basis. No subsidiary undertakings have been excluded from the consolidation. In accordance with Section 408 of the Companies Act 2006, a separate statement of financial activities dealing with the results of the charity has not been presented.

The results of the subsidiary undertaking for the year are disclosed in note 13 of the accounts.

FRS102 allows qualifying entities certain disclosure exemptions. The charity only, has taken advantage of the exemptions for the following disclosure requirements:

Income recognition

Income has been recognised in the financial statements as follows:

25

The Photographers’ Gallery Limited

Notes forming part of the financial statements for the year ended 31 March 2021 (continued)

2 Accounting policies (continued)

Expenditure recognition

Expenditure has been charged to the statement of financial activities on an accruals basis. Costs are shown exclusive of any related irrecoverable value added tax.

These costs represent the fundraising costs of the Gallery.

Intangible assets and amortisation – CRM database

Significant expenditure on the CRM database is capitalised as an intangible asset and stated at cost. The design and content development costs have been capitalised only to the extent that they lead to the creation of an enduring asset delivering future economic benefits at least as great as the amount capitalised. Where intangibles are ready for use, amortisation is charged on a straight line basis over a 5 year period and is included within expenditure on charitable activities. No amortisation is charged where the asset is not yet ready for use. The carrying value of the asset will be subject to annual impairment reviews.

Tangible fixed assets and depreciation

Freehold property is stated at its revalued amount, being the fair value on the basis of its open market value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Land is not depreciated. Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair values at the reporting date. Any revaluation increase arising on the revaluation of such land and buildings is credited to the Statement of Financial Activities.

Tangible fixed assets other than freehold property are carried at cost or deemed cost, net of depreciation and any provision for impairment. Depreciation is provided by the charity to write off the cost or deemed cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives as follows:

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses, where applicable, are recognised in the Statement of Financial Activities.

Investment in subsidiary

Investments in subsidiaries are stated at cost less impairment. Impairment reviews are carried out as required.

26

The Photographers’ Gallery Limited

Notes forming part of the financial statements for the year ended 31 March 2021 (continued)

2 Accounting policies (continued)

Stock

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Foreign currencies

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date and the gains or losses on translation are included in the statement of financial activities.

Leases

All of the charity’s leases are ‘operating leases’ and the rental amounts are charged to the statement of financial activities over of the period of the leases.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities, including trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial instruments are initially measured at transaction price, unless the arrangement constitutes a financing transaction, which includes transaction costs for financial instruments not subsequently measured at fair value. A financing transaction is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of income and retained earnings. The impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are only offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and balances with banks. Cash and cash equivalents are measured at fair value.

Fund accounting

Unrestricted funds comprise general funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity, together with certain designated funds. The aim and use of each designated fund is identified by the Trustees and communicated to funders where appropriate, and these are set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific instructions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising or administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

27

The Photographers’ Gallery Limited

Notes forming part of the financial statements for the year ended 31 March 2021 (continued)

2 Accounting policies (continued)

Pension scheme

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Staff receive 5% (2020 - 5%) of their annual salary paid into a defined contribution personal pension plan of their own choice. Contributions by the Gallery are recognised in the SoFA in the period to which they relate.

Distributed profits under gift aid

Taxable profits are paid to The Photographers’ Gallery Limited, a registered charity, from the subsidiary. These amounts are recognised when the company has paid the funds to the parent.

.

Significant judgements and estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires trustees to exercise their judgement in the process of applying the accounting policies. Use of available information and application of judgement are inherent in the formation of estimates. Actual outcomes in the future could differ from such estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements:

- Property valuation

The charity carries its freehold properties at fair value, with changes in fair value being recognised in other comprehensive income. The charity engaged an independent valuation specialist to determine the fair value at 31 March 2019 on an existing use basis. Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair values at the reporting date. Further detail can be found in Note 12.

The useful economic life of intangible assets represents an estimated based on the expected usual life of that element of the computer software. If there is an indication that there has been a significant change in the useful economic life, the amortisation will be revised prospectively.

28

The Photographers’ Gallery Limited

Notes forming part of the financial statements for the year ended 31 March 2021 (continued)

3 Financial performance of the charity

The consolidated statement of financial activities includes the results of the charity’s wholly owned subsidiary, which operates a café, bookshop and a print sales gallery. The summary financial performance of the charity alone is:

Income
Gift Aid from subsidiary company
Expenditure on charitable activities
Expenditure on raising funds
Net income/(expenditure)
Total funds brought forward
Total funds carried forward
Unrestricted funds:
Designated property fund
Free reserves
Income from donations and legacies
Unrestricted
Designated
£
£
Corporate
120,100
-
Membership and patrons
-
155,765
Other
-
21,000
___
___
120,100
176,765

 2021
£
2,591,836
300,798
___
2,892,634
(1,956,516)
(17,776)
___
918,342
11,149,322
___
12,067,664
___
10,721,466
1,346,198
___
12,067,664
___
Restricted
£
30,565
-
-
___
30,565
 2020
£
1,872,577
347,460
_
2,220,037
(2,324,647)
(56,617)
_
(161,227)
11,310,549
_
11,149,322
_
10,840,111
309,211
_
11,149,322
_
Total 2021
£
150,665
155,765
21,000
___
327,430

4 Income from donations and legacies

29

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

4 Income from donations and legacies (continued)

Unrestricted
Designated
£
£
Corporate
102,835
-
Membership and patrons
170,511
-
Individuals
291
82,700
Other
28,266
-
_
_
301,903
82,700
_
_
Investment income
Bank interest		 Restricted
£
-
-
-
-
_
-
_
2021
£
238
 Total 2020
£
102,835
170,511
82,991
28,266
_
384,603
_
2020
£
888

5 Investment income

All interest received was fully unrestricted in the current and previous year.

All of the group’s investment income arose from money held in interest bearing accounts in 2021 and 2020.

6a Income from charitable activities - exhibitions

Unrestricted
Designated
£
£
Arts Council
918,867
-
Trusts and Foundations
-
59,057
Ticketing, exhibition and lectures
79,958
-
___
___
998,825
59,057
_
_
Unrestricted
Designated
£
£
Arts Council
902,265
-
Trusts and Foundations
-
104,970
Ticketing, exhibition and lectures
299,534
-
_
_
1,201,799
104,970

 Restricted
£
-
38,035
-
___
38,035
_
Restricted
£
-
3,500
-
_
3,500
 Total 2021
£
918,867
97,092
79,958
___
1,095,917
_
Total 2020
£
902,265
108,470
299,534
_
1,310,269

30

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

6b Income from charitable activities – COVID grants

Unrestricted
Designated
£
£
Government grants for furloughed
employees
437,398
-
Covid support grants
681,625
-
___
___
1,119,023
-
_
_
Total 2020
-
-
_
_
Expenditure from charitable activities
Unrestricted
Designated
£
£
Programme: staff costs
824,393
-
Programme: direct costs (see note
7a)
533,149
258,072
Programme: bank and interest
costs
13,884
-
Depreciation
69,146
160,239
Governance:
Audit and accountancy
25,000
-
Legal and professional
4,033
-
___
___
1,469,605
418,311
_
_
Unrestricted
Designated
£
£
Programme: staff costs
1,006,673
-
Programme: direct costs (see note
7a)
846,039
187,670
Programme: bank and interest
costs
20,713
-
Depreciation
65,623
159,889
Governance:
Audit and accountancy
25,000
-
Legal and professional
15,607
-
_
_
1,979,655
347,559

 Restricted
£
-
-
___
-
_
-
_
Restricted
£
-
68,600
-
-
-
-
___
68,600
_
Restricted
£
-
3,500
-
-
-
-
_
3,500
 Total 2021
£
437,398
681,625
___
1,119,023
_
-
_
Total 2021
£
824,393
859,821
13,884
229,385
25,000
4,033
___
1,956,516
_
Total 2020
£
1,006,673
1,037,209
20,713
225,512
25,000
15,607
_
2,330,714

7 Expenditure from charitable activities

31

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

7a Programme: direct costs

7a
Programme: direct costs
Exhibitions
Education
Communications
Administration and overhead costs
8
Net income/(expenditure) for the year
This is stated after charging:
Auditor’s remuneration
- Audit fee
- Non-audit services
- Other tax and consultancy services
Depreciation
- Freehold buildings
- Other
Amortisation of intangible assets
Interest payable
- Bank interest
Operating leases - equipment
Foreign exchange loss/(gain)
9
Staff numbers and costs
Wages and salaries
Social security costs
Pension costs
Total staff costs		 _
 2021
£
221,976
58,772
104,142
474,931
__
859,821
__
2021
£
25,000
3,331
1,900
160,239
18,646
50,500
12,521
4,529
8,766
___
2021
£
981,080
86,816
51,605
___
1,119,501
 2020
£
386,114
111,292
173,414
366,389
_
1,037,209
_
2020
£
25,000
2,500
1,900
159,889
19,146
46,477
15,593
5,700
(4,642)
_
2020
£
1,217,744
110,812
50,519
_
1,379,075
_ _

The pension costs above relate to a defined contribution scheme and were all charged to unrestricted expenditure. The Gallery received a grant of £437,398 (2020 - £Nil) from the UK governments furlough scheme to support the costs of salaries (see note 6).

32

The Photographers’ Gallery Limited

Notes forming part of the financial statements for the year ended 31 March 2021 (continued)

9 Staff numbers and costs (continued)

The average number of persons employed by the group during the year analysed by entity was:

Gallery
Subsidiary
Total		 2021
£
27
12
___
39
 2020
£
28
13
___
41

The employees of the subsidiary are engaged as sale staff for the Gallery's subsidiary, The Photographers' Gallery (Enterprises) Limited. Their contract of employment remains with the Gallery, but their salary costs are charged in full to the subsidiary under a licensing and service agreement.

The number of employees earning over £60,000:

£60,000 - £70,000
£70,001 - £80,000		 2021
Number
1
-
 2020
Number
1
1

During the year, contributions of £4,391 (2020 - £8,018) were paid into a pension scheme on behalf of the above employees.

The key management personnel of the group, the Gallery, comprise the trustees, the directors, and the senior management team. The total employee benefits of the key management personnel of the Gallery were £281,976 (2020 - £427,764), excluding pension contributions.

Included in the total KMP remuneration is £72,369 (2020 - £79,637) in respect of payments made to one Director, which includes £4,391 (2020 - £4,391) for contributions to a defined contribution pension scheme.

No trustees received any remuneration during the year (2020 - £Nil), nor claimed any expenses (2020 - £Nil).

10 Taxation

The charitable company is a registered charity, and as such is entitled to exemptions on income and gains properly applied for its charitable purposes.

33

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

11 Intangible fixed assets
Software
Group and Charity development
£
Cost
At 1 April 2020 245,573
Additions 23,675
___
At 31 March 2021
269,248
___
Amortisation
At 1 April 2020 133,481
Charge for year 50,500
___
At 31 March 2021 183,981
___
Net book value
At 31 March 2021 85,267
___
At 31 March 2020 112,092
___

The Gallery has invested in a new CRM and accounts system and the development of a new website. Items will be amortised over a five year period.

34

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

12 Tangible fixed assets

Group and Charity
Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
land and
buildings
£
11,000,000
41,594
_
11,041,594
_
159,889
160,239
_
320,128
_
10,721,466
___
10,840,111
 Fixtures,
fittings,
tools and
equipment
£
60,032
-
_
60,032
_
36,293
5,938
_
42,231
_
17,801
___
23,739
 Computer
equipment
£
159,784
8,994
_
168,778
_
119,642
12,708
_
132,350
_
36,428
___
40,142
 Total
£
11,219,816
50,588
_
11,270,404
_
315,824
178,885
_
494,709
_
10,775,695
___
10,903,992

If the property had remained at deemed cost, the net book value, including additions to date, at 31 March 2021 would be £9,182,581 (2020: £9,266,093).

Depreciation on the freehold building will continue to be charged annually and included within expenditure on charitable activities. The gain or loss on the revaluation of the property at each year end is included within revaluation of fixed assets before the net movement in funds. The value of the freehold property is held in a designated property fund, therefore all changes in the value of the property are charged to this designated fund. The Trustees have reviewed the valuation of the building at the year end using a published property index and are confident that the value is a true and fair reflection of the current market value.

35

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

13 Investments

Shares in subsidiary undertaking
Cost at beginning and end of year		 2021
£
2
 2020
£
2

The wholly owned trading subsidiary The Photographers’ Gallery (Enterprises) Limited is incorporated in the United Kingdom (company number 2893731) and pays all of its profits to the charity under the gift aid scheme. It operates a café, bookshop and a print sales gallery carried on at the charity’s premises. A summary of the trading results is shown below.

Results of subsidiary
Turnover
Income for furloughed employees
Cost of sales and administration costs
Amounts charged by the charity
Net profit
Amount gift aided to the charity
Retained earnings brought forward
Retained in the subsidiary
Share capital
Aggregate share capital and reserves
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
Net assets		 2021
£
1,170,522
129,522
(957,587)
(156,500)
___
185,957
(300,798)
311,302
___
196,461
2
___
196,463
___
663,376
(466,913)
___
196,463
 2020
£
1,784,758
-
(1,328,960)
(155,000)
_
300,798
(347,459)
357,963
_
311,302
2
_
311,304
_
587,725
(276,421)
___
311,304

Included in the results of The Photographers’ Gallery (Enterprises) Limited is a management charge of £156,500 (2020 - £155,000) paid to the parent charity, The Photographers’ Gallery Limited. In addition, a gift aid donation of £300,798 (2020 - £347,459) was made to the parent in the year. At the year end, £163,711 was due from the subsidiary to the parent and is included within the Gallery debtors (2020 - £117,636 due from the subsidiary to the parent).

The investment represents a 100% holding in the ordinary share capital of The Photographers’ Gallery (Enterprises) Limited, a company involved in the sale of photographic books and prints and the running of a cafe. The company is registered in England and Wales (number 2893731).

36

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

14 Stock

Group
Group
2021
2020
£
£
Books
127,312
109,492
Prints
2,974
33,197
Cafe
5,591
5,591
___
_
135,877
148,280
_
_
15
Debtors
Group
Group
2021
2020
£
£
Trade debtors
177,390
123,704
Other debtors
185,978
100,275
Prepayments and accrued income
77,575
264,418
Amounts owed by subsidiary
undertaking
-
-
VAT recoverable
126,204
46,621
___
_
567,147
535,018
_
_
Amounts owed by subsidiary undertaking are in respect of trading activities.		 Charity
2021
£
-
-
-
___
-
_
Charity
2021
£
1,200
156,806
66,712
163,711
126,204
___
514,633
_		 Charity
2020
£
-
-
-
_
-
_
Charity
2020
£
10,685
57,333
243,818
117,636
46,621
_
476,093
_

16 Creditors: amounts falling due within one year

Bank loan due within one year
(note 17)
Trade creditors
Other creditors
Other taxes and social security
Accruals
Deferred income		 Group
2021
£
44,784
276,543
7,353
186,171
50,407
216,169
___
781,427
 Group
2020
£
15,003
51,737
4,087
102,072
47,517
169,123
___
389,539
 Charity
2021
£
44,784
194,360
7,353
20,629
44,340
128,895
___
440,361
 Charity
2020
£
15,003
51,737
4,087
29,978
41,450
81,849
___
224,104

37

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

16 Creditors: amounts falling due within one year (continued)

Analysis of movement in deferred income

Balance at 1 April 2020
Released in year:
Patrons and benefactors
Deutsche Borse
Other
Arising in year:
Patrons and benefactors
Deutsche Borse
Other
Balance at 31 March 2021		 Group
2021
£
169,123
(29,893)
(87,274)
(10,700)
17,482
87,274
70,157
___
216,169
 Group
2020
£
212,619
(25,040)
(87,273)
(80,300)
29,893
87,274
31,950
___
169,123
 Charity
2021
£
81,849
(29,893)
-
(10,700)
17,482
-
70,157
___
128,895
 Charity
2020
£
125,346
(25,040)
-
(80,300)
29,893
-
31,950
___
81,849

Deferred income relates to income received from donors and sponsors which is subject to conditions which prevent their use until a later date.

17 Creditors: amounts falling due after one year

The Gallery entered into a loan agreement with Natwest for £525,000. Interest will be paid on the loan at 2.7% per annum over Base Rate. The loan has been provided for a period of 180 months.

Bank loan Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Bank loan due within one year
(note 16) 44,784 15,003 44,784 15,003
___ ___ ___ ___
44,784 15,003 44,784 15,003
___ ___ ___ ___
Bank loan due within two to five years 384,309 446,352 384,309 446,352
___ ___ ___ ___
429,093 461,355 429,093 461,355
___ ___ ___ ___

The bank loan is secured by way of a first legal charge over the Gallery at 16-18 Ramillies Street, London W1F 7LW.

38

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

18 Group statement of funds – 2021

Unrestricted
funds
Operating fund
Total
unrestricted
funds
Designated
funds:
Freehold property
Designated
exhibitions
projects
Total designated
funds
Total
unrestricted and
designated funds
Restricted funds:
Exhibitions and
educational
projects
Total		 1 April
2020
£
614,447
_
614,447
10,840,111
-
_
10,840,111
11,454,558
-
___
11,454,558
 Other
recognised
gains/
Income
Expenditure
transfers
£
£
£
3,430,958
(2,284,729)
(224,083)
_
_
_
3,430,958
(2,284,729)
(224,083)
-
(160,239)
41,594
235,822
(418,311)
182,489
_
_
_
235,822
(578,550)
224,083
3,666,780
(2,863,279)
-
68,600
(68,600)
-
_
_
___
3,735,380
(2,931,879)
-


 31 March
2021
£
1,536,593
_
1,536,593
10,721,466
-
_
10,721,466
12,258,059
-
___
12,258,059

39

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

18 Group statement of funds – 2020

Unrestricted
funds
Operating fund
Designated
funds:
Freehold property
Designated
exhibitions
projects
Total
unrestricted and
designated funds
Restricted funds:
Exhibitions and
educational
projects
Total		 1 April
2019
£
668,514
_
668,514
11,000,000
-
_
11,668,514
-
___
11,668,514
 Other
recognised
gains/
Income
Expenditure
transfers
£
£
£
3,311,165
(3,365,232)
-
_
_
_
3,311,165
(3,365,232)
-
-
(159,889)
-
187,670
(187,670)
-
_
_
_
3,498,835
(3,712,791)
-
3,500
(3,500)
-
_
_
___
3,502,335
(3,716,291)
-


 31 March
2020
£
614,447
_
614,447
10,840,111
-
_
11,454,558
-
___
11,454,558

Designated funds

The purpose of the freehold property fund is to set aside the net book value of the Gallery building as these are not distributable. The freehold property fund includes the revaluation reserve of £1,538,885 (2020: £1,574,318).

Unrestricted funds

The operating fund represents the funds available for general expenditure in accordance with the Charity’s aims and objectives.

40

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

18 Charity statement of funds – 2021

Unrestricted
funds
Operating fund
Designated
funds:
Freehold
property
Designated
exhibitions
projects
Total
unrestricted
and designated
funds
Restricted
funds:
Exhibitions and
educational
projects
Total funds		 1 April
2020
£
309,211
_
309,211
10,840,111
-
_
11,149,322
-
___
11,149,322
 Other
recognised
gains/
Income
Expenditure
transfers
£
£
£
2,588,212
(1,327,142)
(224,083)
_
_
_
2,588,212
(1,327,142)
(224,083)
-
(160,239)
41,594
235,822
(418,311)
182,489
_
_
_
2,824,034
(1,905,692)
-
68,600
(68,600)
-
_
_
___
2,892,634
(1,974,292)
-


 31 March
2021
£
1,346,198
_
1,346,198
10,721,466
-
_
12,067,664
-
___
12,067,664

41

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

18 Charity statement of funds – 2020

1 April
2019
£
Unrestricted
funds
Operating fund
310,549
_
310,549
Designated
funds:
Freehold property
11,000,000
Designated
exhibitions
projects
-
_
Total
unrestricted and
designated funds
11,310,549
Restricted funds:
Exhibitions and
educational
projects
-
_
Total funds
11,310,549
_
19
Net assets between funds
Group – current year
Intangible fixed assets
Tangible fixed assets
Stock
Debtors
Cash
Creditors due within one year
Creditors due after one year		 Other
recognised
gains/
Income
Expenditure
transfers
£
£
£
2,028,867
(2,030,205)
-
_
_
_
2,028,867
(2,030,205)
-
-
(159,889)
-
187,670
(187,670)
-
_
_
_
2,216,537
(2,377,764)
-
3,500
(3,500)
-
_
_
_
2,220,037
(2,381,264)
-
_
_
_
General
funds and
designated
Restricted
funds
funds
£
£
85,267
-
10,775,695
-
135,877
-
567,147
-
1,859,809
-
(781,427)
-
(384,309)
-
___
___
12,258,059
-

 31 March
2020
£
309,211
_
309,211
10,840,111
-
_
11,149,322
-
_
11,149,322
_
Total
funds
£
85,267
10,775,695
135,877
535,350
1,859,809
(781,427)
(384,309)
___
12,258,059
_

42

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

19 Net assets between funds (continued)

Group – prior year
General
funds and
designated
funds
£
Intangible fixed assets
112,092
Tangible fixed assets
10,903,992
Stock
148,280
Debtors
535,018
Cash
591,067
Creditors due within one year
(389,539)
Creditors due after one year
(446,352)
_
11,454,558
_
Charity – current year
General
funds and
designated
funds
£
Intangible fixed assets
85,267
Tangible fixed assets
10,775,695
Investments
2
Debtors
514,633
Cash
1,516,737
Creditors due within one year
(440,361)
Creditors due after one year
(384,309)
___
12,067,664
_
Charity – prior year
General
funds and
designated
funds
£
Intangible fixed assets
112,092
Tangible fixed assets
10,903,992
Investments
2
Debtors
476,093
Cash
327,599
Creditors due within one year
(224,104)
Creditors due after one year
(446,352)
_
11,149,322
 Restricted
funds
£
-
-
-
-
-
-
-
_
-
_
Restricted
funds
£
-
-
-
-
-
-
-
___
-
_
Restricted
funds
£
-
-
-
-
-
-
-
_
-
 Total
funds
£
112,092
10,903,992
148,280
535,018
591,067
(389,539)
(446,352)
_
11,454,558
_
Total
funds
£
85,267
10,775,695
2
514,633
1,516,737
(440,361)
(384,309)
___
12,067,664
_
Total
funds
£
112,092
10,903,992
2
476,093
327,599
(224,104)
(446,352)
_
11,149,322

43

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

20 Related party transactions

A trustee of the Charity, Alexandra Hess purchased prints to the value of £Nil (2020 - £1,500) from the gallery in the year. Alexandra Hess (Trustee) is also a “TPG Council” patron and has paid £Nil (2020 - £10,000) membership during the year, of which £Nil (2020 - £9,150) is the donated element. At the year end a balance of £Nil (2020 - £9,782) was outstanding in debtors.

A trustee of the Charity, Symon Elliot purchased prints to the value of £372 (2020 - £3,072) from the gallery in the year. No balance was outstanding at the year end (2020 - £Nil).

The Photographers’ Gallery (Enterprises) Limited is the wholly owned subsidiary of The Photographers’ Gallery limited. Details of the transactions between the parent and its subsidiary have been given in Note 13.

21 Commitments and charges

The Arts Council has a second legal charge over 16-18 Ramillies Street for £3,500,000, equal to the award made to the Gallery by Lottery funding. This legal charge reduces over a 25 year period in five year increments and reduced to £2,800,000 from May 2018.

22 Commitments under operating leases

At 31 March 2021 the Photographers’ Gallery had total commitments under non-cancellable operating leases as set out below.

Amounts due:
Within one year
Within two to five years
23
Cash and cash equivalents
Cash at bank and in hand		 Group
2021
£
1,859,809
 Group
2020
£
591,067
 2021
£
6,840
15,390
___
22,230
___
Charity
2021
£
1,516,737
 2020
£
2,540
-
_
2,540
_
Charity
2020
£
327,599

44

The Photographers’ Gallery Limited

Notes forming part of the financial statements

for the year ended 31 March 2021 (continued)

24 Analysis of changes in net debt

1 April
2020
Cash flows
£
£
Cash and cash equivalents
591,067
1,268,742
Bank loan falling due within one year
(15,003)
32,262
Bank loan falling due after more then
one year
(446,352)
-
_
___
129,712
1,301,004
_
___
25
Financial instruments
Group and Charity
Liabilities held at FV through profit or loss (bank loan)		 Non-cash
movement
£
-
(62,043)
62,043
___
-
___
2021
£
429,093
 31 March
2021
£
1,859,809
(44,784)
(384,309)
___
1,430,716
___
2020
£
461,355

45