Reglstratlon No. 262548 Ctynpary ReO5rratlon No. (Y)986208 IEngland and Wales) THE PHOTOGRAPHERS. GALLERY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 THE PHOTOGRAPHERS, GALLERY LIMITED LEGALAND ADMINI￿RATIVE INFORMATION Trustees M Hall J Phelan M Shulllewonh E Walker K Watson P Baines A Gray (Appointed 10 August 20221 (Appointed 18 March 20241 Setretary A fjault Ch•rlty number 262548 Company number C(886208 Re8i#ered offlce 1&18 Ramilliesstreet London WIF 7LW Audltor HW Fisher LLP Acre House 11-15 Williom Road London MWI 3ER Llrlited Kingdorn THE PHOTOGRAPHERS, GALLERY LIMITED CONTENTS Tru5tee5' report 1-17 Statement of trustees, re5pon5ib"Itties Independent auditor's report 19-21 Consolldated statement of financial activities 22-23 Consolldated and charity balance sheets 24 Consolidated statement of cash flows 25 Notes to thefinan¢ièl St*t￿nts 26-41 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** ## Legal Structure: The Gallery operates as a company limited by guarantee and is registered as a charitable organisation. It also has one subsidiary, The Photographers' Gallery (Enterprises) Limited, which operates as a company limited by shares. ## Trustees and Governance Principles: The Trustees, who also serve as directors for legal purposes, play a pivotal role in overseeing the Gallery's affairs. They adhere to the Charity Commission's Governance Code, which is grounded in seven core principles: Organizational Purpose, Leadership, Integrity, Decision-making, Risk and Control, Board Effectiveness, Diversity, 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. 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. ## 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 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-bycase basis. ## Statement of Trustees' Responsibilities: The Trustees, also serving as directors, are responsible for preparing the Trustees' Report and financial statements in compliance with applicable laws 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: 1 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** - select suitable accounting policies and then apply them consistently. - observe the methods and principles in the charities SORP. - make judgments and accounting estimates that are reasonable and prudent. - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain 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: - the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. ## Recognition The Gallery would like to thank Matthew Stephenson who retired at Chair of trustees in December 2023 and to welcome Amanda Gray who was appointed Chair of trustees in March 2024. Trustees and staff would also like to thank Michelle Shuttleworth for stepping in as Acting Chair of trustees from December 2023 to March 2024. The Chair and Staff would like to extend their appreciation to all trustees current and past for their time and commitment to supporting them and the Director in achieving the organization s goals and maintaining good governance and financial stability. ## The following individuals served as Trustees during the year: - Amanda Gray (Chair appointed 18[th] March 2024) - Michelle Shuttleworth (Chair of FGP) - Elspeth Walker - Kay Watson - Polly Barnes - Montana Hall - Joe Phelan ## Trustees and Directors who stepped down: - Matthew Stephenson (Chair) (resigned 4 December 2023) - Brett Rogers (Director resigned 18 December 2022) - Jananne Al-Ani (resigned 4 December 2023) - Deborah Botwood-Smith (resigned 4 December 2023) - James Kelly (resigned 4 December 2023) 2 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** - Mark Lewis (resigned 4 December 2023) - Daniel Oudkerk (resigned 4 December 2023) ## Management Structure: The Gallery's day-to-day operations were overseen by Director Brett Rogers until December 2022 and then by Director Shoair Mavlian from January 2023. Directors are appointed by the Trustees and serve as a director of both the charity and its subsidiary. In addition, there are 7 senior managers referred to as Team Leaders, who run departments and support the Director. - Director: Ms Shoair Mavlian - Director Finance, Operations and Business Enterprises: Mr Andrew Gault - Head of Development: Mr Sam Newman - Head of Communications: Ms Emma Dixon - Head of Exhibitions: Ms Clare Grafik - Head of Education & Public Events: Ms Janice McLaren - Senior Gallery Manager: Mr Jason Welling ## Arrangement for setting the pay and remuneration. Staff pay and remuneration are reviewed annually by members of the Finance and General Purposes committee appraisals, with any adjustments or changes to staff terms and conditions of employment 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. set directly by Trustees. The Gallery is committed to supporting the London Living Wage as a minimum for all employees, casual staff and in agreements with annual service contractors ## About The Photographers Gallery from exhibitions, talks, workshops and digital platforms to the galleries, bookshop, and cafe all explore the beauty, complexity, and future of photography. Right outside the Gallery, the best of contemporary photography is shown for free, day and night, in Soho Photography Quarter. On the borders of busy Oxford Street and vibrant Soho, the Gallery is home to photography experts, novices and the photo-curious; artists and students; tourists and passers-by; and an enthusiastic and committed staff team. 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. At the heart of the Gallery's values lie the principles of diversity, social inclusion, audience engagement, education, and thoughtful programme curation, all underscored by a commitment to good governance and financial responsibility. 3 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** In 2012, the Gallery made a significant move to a new location on Ramillies Street in London's Soho, this relocation expanded the Gallery's capabilities, enabling the display of historical works, retrospectives by renowned photographers, and for the first time the ability to exhibit large-scale international exhibitions. Education and accessibility have remained central to our mission, with ongoing efforts to engage audiences through gallery visits, online experiences, and projects around the UK. The Gallery continues to actively support emerging talent through commissioned work, educational initiatives, and an annual photography award. A recent collaboration with Arts Council England and Westminster City Council has injected fresh energy into our mission and visibility by extending the Gallery exhibition programme into the public realm in the streets around the Gallery, with the area being renamed The Soho Photography Quarter. Launched in 2022, the project transformed the streets around the Gallery, introduced public seating, restricted street traffic, and created a vibrant public art space. Key features include an art frieze, a nighttime street projection, and prominent cross street banners highlighting photography from international artists. These milestones have firmly established The Photographers' Gallery as a prominent and influential organisation within London's dynamic cultural landscape. various trusts, foundations, corporations, patrons, and members, as well as the success of our commercial Enterprises Ltd. Leading the Gallery is a distinguished team of devoted trustees and employees, including notable figures, Director Shoair Mavlian, Chair of Trustees f the Finance & General Purposes Committee, Michelle Shuttleworth. Together, they help craft the Gallery's vision and mission, ensuring its continued significance in the world of photography and contemporary art both in the UK and Internationally. ## Objectives and Activities ## Public Benefit enhancing public awareness and understanding of the medium. We operate under the guidance of the Charity Commission, Arts Council England, professional advisors, committed staff and trustees to define our charitable objectives. These include: - Curating exhibitions and projects that show the rich history, practice, and evolution of photography, emphasizing its societal significance. - Highlighting the work of both emerging and established photographers, as well as exploring new media and technology that respond to the ever-changing landscape of photography. - Organising an array of talks, events, courses, and workshops designed to support photographic practice, facilitate knowledge sharing, and cultivate a deeper appreciation for the art form. - Preserving our valuable assets, including archival materials, and ensuring their accessibility to the public, thereby contributing to the preservation of photographic heritage. We continue to develop our commitment to increasing diversity and accessibility, we provide year-round affordable and free access to our exhibition and education programmes, both in-person and online. Our commercial activities promote the sale of artists' work, photography-related publications, and merchandise, and serve as a cultural hub for practitioners and the public to engage with the medium. All 4 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** profits generated through these activities are dedicated to fulfilling our charitable objectives. It is worth noting that our Trustees serve without any remuneration or benefits and have no professional affiliations with the artists or exhibitors engaged by the charity. These measures underscore our commitment to ethical, independent governance and transparency. ## Mission and Vision ## Our Purpose: We aim to be the home for next generation photography. Exploring how photography is connecting, captivating and radically changing our world today. ## Our Values: - Expose a fuller picture. - Develop future creators. - Be one social space. ## What We Offer: Our programme encompasses rich history, diverse practices, and contemporary experimentation. We are compelling storytellers, revealing narratives that go beyond the frame, where photography is the beginning, not the end of the story. Our commitment to education through photography extends to people of all ages, backgrounds, and economic circumstances. We provide a wide array of activities and strategies to enhance visual literacy. We are dedicated to nurturing artists and new audiences to create a more diverse and representative visual culture. We are a place for sharing and collaboration, joining up everything we do to create a fuller experience both virtually and in Soho. - Our Audience: We aim to expand our audience base and develop an audience first approach. We are home to photography experts, novices and the photo-curious; artists and students; tourists and passers-by. - Our Organisation: We are an enthusiastic and committed staff team with the aim to be a diverse, professional, forward-thinking organization. As responsible employers, we prioritise transparency, fairness, and equality within our team. Our financial sustainability is paramount, and we maintain transparent governance structures. - Our Building: We are continuously enhancing our premises to be welcoming and accessible. Situated on the boarders of busy Oxford Street and vibrant Soho our space fosters social interaction, intellectual exploration, and artistic innovation, creating an environment that inspires both visitors and creators alike. ## Summary of activity and programme highlights: opportunities for growth following two years of disruption by the covid-19 pandemic on the UK arts sector. The challenges were primarily driven by the lingering effects on public confidence post-pandemic, the completion of a large capital investment in our building and the significant change to the public realm around the gallery. Inflation during the period reached a high of 11%, with the resulting cost of living crisis driving higher than usual staff turnover. Amidst these challenges the Gallery proactively seized 5 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** opportunities arising from a society eager to reconnect with physical cultural spaces, an exhibition programme specifically designed to drive audiences back to the building and increase earned revenue from visitors through enhanced onsite commercial activities. We also focused on digital advertising, widening global access, and reaching diverse audiences by creating engaging online content, including videos, trailers and TikTok interviews which boosted social media followers and website performance. Our integrated approach included various marketing strategies and site improvements, resulting in increased global website engagement in our programme. During our autumn/winter 2022 season, visitor numbers reached pre-pandemic levels at c.212,539 visitors for the year 2022-23 (an increase from 111,556 in 2021-22), further establishing the Gallery's reputation as the premier venue and social hub for the photography community in the UK. With the appointment of a new Director in January 2023, alongside a significant reduction in inflationary pressures and growing future. Since the year end, visitor numbers to our programme and building have continued to increase, and by the end of the 2023-24 the gallery welcomed over c261,000 visitors to the building, the highest it has been since 2012 when we moved to our new building on Ramillies St. Concurrently, our earned income from commercial activities experienced substantial growth, mirroring these exceptional visitor numbers. This surge in revenue has proven instrumental in navigating the financial challenges of high inflationary impacts on costs over the past year, helping to maintain our unrestricted cash reserves and ensuring financial stability well into 2024. ## Soho Photography Quarter and Ground floor building improvements: One of the standout achievements of the year was the successful culmination of a two-year collaboration with Westminster City Council, which made a substantial investment in revitalising the streets surrounding the Gallery, known as The Soho Photography Quarter (SPQ). The development of SPQ, involved the semipedestrianisation of the streets around the Gallery, including benches, plants, and restricting traffic during the day. It included the installation of a 40m public Art Freeze, large-scale cross street banners, and a large projector with sound, highlighting moving images after dark. These changes have created a new unique outdoor exhibition space, turning the area into a fresh cultural landmark West End, while elevating and appeal to visitors exploring Soho. Additionally, the Gallery undertook significant upgrades to its ground floor and public entrance area. These improvements have fostered a seamless connection with the Café, Bookshop, and other commercial activities, improving the overall experience of visiting the area with TPG at its heart. The SPQ project was fully launched in autumn 2022, with inaugural work by Australian photographer Christian Thompson, and is currently showing work by UK photographer Siân Davey. This has, undoubtedly played a pivotal role in driving the steady rise in visitor numbers to the Gallery throughout 2023-24. ## Arts Council funding 2024-26: As with many Arts Council England (ACE) funded organisations the Gallery received exceptional financial support during the pandemic through regular National Portfolio Organisational (NPO) funding and through the Cultural Recovery Fund. In early 2022, ACE confirmed a oneadditional time for organisations to apply for 2023-25 funding. Initial discussions with ACE highlighted a investment priorities. TPG were exceptionally grateful to receive a stand-still grant of £2,756,601 from Arts ding has remained unchanged since 2011, 6 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** resulting in a gradual erosion of its real value due to inflation. In December 2023, ACE announced a further one-year extension to the NPO funding through to 2026. We deeply appreciate Arts Council England, especially the London branch, for their unwavering financial support and recognition of our gallery's enduring contribution to the visual arts landscape in the United Kingdom. ## Exhibition Programme: In 2022-23, our exhibition programmed was specifically aimed at re-engaging and attracting visitors back to the building post-pandemic, to remain responsive to the demands for contemporary and vintage photography and to cultivate lasting relationships and collaborations with photographers, curators, artists, and other cultural organisations. Post-Brexit rules on movement of goods and people lead to extraordinary inflationary pressures on costs and additional customs paperwork, leading to works not arriving on-time for exhibitions and restricting the ability of artists to visit or work in the UK. Notable exhibitions throughout the year included the _Deutsche Börse Photography Foundation Prize_ , _For the Record: Photography & the Art of the Album Cover_ , _How to Win at Photography_ , and in autumn 2022 the _Alternative History of Photography_ , and a _Chris Killip_ retrospective. The Chris Killip exhibition proved successful, both in terms of visitor numbers and income generation, and toured to the Baltic Centre for Contemporary Art in Gateshead, as well as forthcoming venues in Frankfurt and The Hague. Our touring programme also featured Sunil Gupta's exhibition, _From Here to Eternity_ , which delighted audiences in Toronto and the _Deutsche Borse Photography Foundation Prize_ in Frankfurt. Additionally, we proudly presented _Radical Imagination_ , a compelling public art project in Kings Cross, London. The Gallery is dedicated to promoting diversity and collaboration within the art world, partnering with UK and international galleries, collections, and individuals. In spring 2022, the introduction of SPQ, enabled the gallery to expand its cultural footprint. The gallery took this opportunity to highlight a diverse array of artists and practitioners who are well suited to larger scale outdoor impact, including Christian Thompson's Being Human a collaboration with PHOTO22 Australia), Gideon Mendel's climate change-related portraits, and works by international photographers like Anastasia Samoylova, Deana Lawson, Gilles Peress, and Jo Ractliffe. Additionally, we commissioned seven women photographers for an outdoor exhibit in King's Cross and hosted Sunil Gupta's exhibition on queer diasporic identities, which also travelled to the Ryerson Image Centre in Toronto. Our Digital Programme initiated a year-long artist's augmented reality commission and various onsite and online projects with digital artists _Keiken & Gabriel Massan and Josèfa Ntjam_ . The Print Sales Gallery had a successful year working with emerging and established artists such as _Manuel Alvarez Bravo,_ UK-based _Nicholas Hughes, Evgenia Arbugaeva_ and a tribute to _Sabine Weiss,_ who died in 2021, on solo exhibitions of their work. In addition, a dynamic partnership with _Magnum Photos_ on a produced Before stepping down in December 2022 Director Brett Rogers and the programming team put in place a draft sixteen-month programme of exhibitions for 2023-24 that continued to focus on the strategy of driving footfall to the building and increasing income from our commercial activities. New Director Shoair Mavlian complemented this programme by injecting a fresh perspective and adding an exhibition by renowned photographer and broadcaster _Johnny Pitts_ to the summer 2023 season, helping to drive new audiences. Shoair and the exhibitions team have continued to develop a new programme for 2024-25 based around refreshed organisational values and a new Strategic Plan Which will take effect from the FY2024-25. 7 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** ## Education and Talks Programme. Our education team utilised our exhibition programme as both the foundation and main resource for initiating projects. Highlights over the year include: - Developing our youth careers programme: For young people aged 16-24. - : Our January online Teach-Meet about teaching GCSE Photography had around - 150 teachers in attendance from across the UK and beyond. - Teen Tours: Two public tours per exhibition were offered on Saturday afternoons. Participating audiences stated that they found the tours both engaging and inspiring. - Extended Project Qualification in Photography: Year 1 of our EPQ programme saw 11 young people progress to completing their projects, receiving 100% pass rates with 85% being A*-C in August 2022. - Sewing with Photography (25 Jun 2022) Photographer Jenny Matthews explored memory and history, inviting participants to use a piece of cloth, pre-printed with one of their own, personal photographs, and transform it into a form of textile art using transfer techniques and embroidery. - Portfolio Reviews (monthly): Where we invite photographers to show their work to the public, and our curatorial staff. Photographers have conversations and are given feedback from visitors on their work. We host 8-12 photographers on the first Friday of each month on our educational floor. - Power Game by Liliane Lijn (2 Sep 2022) _Power Game_ is based on the classic card game Chemin de Fer. Using word cards created by the artist, the performance investigates the politics and misconceptions of power through spectacle and play. This event was part of a special TPG Late to celebrate the exhibition _How to Win at Photography_ . Artist Talk: Danielle Udogaranya and Danielle Brathwaite-Shirley (14 Sep 2022) A livestreamed, in-game event discussing virtual worlds, and the speculative possibilities digital spaces offer for the queer imaginary while playing co-operative worldbuilding games on Roblox. - Audience response cards (Oct 2022 to Feb 2023): For each of our exhibitions, we invite visitors to share their responses with a simple ask. For the Chris Killip, retrospective, we asked visitors to choose a photograph in the exhibition to draw and share and received thousands of responses. - Inside Out: The Workings of a Photography Gallery (Thursdays, 2 Feb to 30 Mar 2023) Spanning eight weeks, this course gave a behind-the-scenes look at the different areas of work of The the ways photography is engaged with and presented today. ## TPG Archive: The digitization of our Archive continued throughout the year, preserving our programme and institutional history, which launched online in early 2024. Fundraising for our education and talks programme remained challenging in this economic environment and came from a wide range of sources including event ticket sales, Trusts and Foundations, and individual giving. We have successfully run an Extended Project Qualification in Photography programme since 2022, we are planning to further develop the EPQ in Photography as an ambitious two-year programme. The aim is to create a new model for how arts 8 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** organisations can support schools to co-deliver EPQs. In autumn 2023 the gallery launched its new online archive of past exhibition and educational programmes and links to the history of the organisation. , or other archival information visit our website https://thephotographersgallery.org.uk/whats-on/past programme. ## Talking to our Audience: ## In 2022- gaining insights into audience behaviour post-pandemic. The year saw our audience numbers more than double on the previous year to 212,539 and website visitors grow by over 40%. Throughout the year, a return to in-person work and increased tourism in central London contributed to visitor numbers returning to pre-pandemic levels by autumn 2022. Various strategies around audience development were tested including organising curated Free-Friday-Lates events, book-launches, promotional discounts on admissions, and other free projects and activities. Data collection took place both on-site and online through the Audience Finder platform, and the Gallery saw a notable increase in visitors aged under 35 and from diverse backgrounds. **----- Start of picture text -----**
Audience statistics 2022/23 2021/22
Young people 16-24 13% 2%
Adults 25-34 18% 8%
Adults 35-44 10% 10%
Adults 45-64 43% 54%
65 and older 16% 26%
100% 100%
Male 51% 44%
Female 49% 56%
100% 100%
Non-binary 2% 1%
White 87% 92%
Mixed: multiple ethnic background 4% 4%
Asian or Asian British 5% 2%
Black or Black British 2% 1%
100% 100%
**----- End of picture text -----**
To support these higher costs trustees and the executive focused on increasing revenue from fundraising and our commercial activities. In September 2023, the Gallery welcomed its new auditors, HW Fisher LLP. Through this audit, trustees have considered updates to income recognition principles, asset valuation and the approach to digitisation in financial records. This has provided an opportunity for fresh perspective of 9 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** the financial frameworks governing both TPG and TPGE businesses and supporting a robust foundation for continued growth and success. ## Building Valuation: During this year's audit, it was identified that the Ramillies Street, Soho assumed that the property was held within a Special Purpose Vehicle. The valuations on 31st March 2022 and 1st April 2021 have been restated to reflect the fact that this is not the case. A prior year adjustment has been made to decrease the valuation as at 1 April 2021 by £521,466 and to decrease valuation as at 1 April 2022 by £700,000. The gallery building has a value of £9,700,000 as of 31st March 2023. The restated value reflects the adjusted valuation index outlined above and the impact of the pandemic on central London property prices, outweighing continued investment by trustees and Westminster Council in the building and surroundings. ## Financial Performance Summary The Gallery's financial statements for the 2022-23 period show overall growth in income of 13% as the business emerged from the impacts of the pandemic and controlled expenditure, resulting in a small operational deficit, before factoring in property revaluation/ depreciation. The net deficit reported reflects our proactive approach to navigate the ever-changing landscape of the arts sector, demonstrating our commitment to adapt and thrive. ## Sources of Income 2022-23: **----- Start of picture text -----**
Percentage
Income 2022-23 of turnover
Turnover from Enterprises 45% £1,950,996
Arts Council England 23% £999,500
Fundraising, (Individuals, Corporates, Membership, T&F, Other public, Earned income) 19% £831,926
Ticketing (Exhibition and lectures) 13% £541,226
Total Income 100% £4,323,648
Expenditure 2023-23
Cost of Enterprises (Inc TPGE staff costs) 38% £1,682,098
TPG Staff Costs (TPG only) 25% £1,096,281
Programme Costs 29% £1,317,660
Depreciation, Professional Fees, and Other Costs 8% £341,204
Total Expenditure 100% £4,437,243
**----- End of picture text -----**
The consolidated accounts for the TPG and TPGE show financial performance for the 2022-23 fiscal year is as follows: - Total Income: £4,323,648 - Total Expenditures: £4,437,243 - Operational Deficit: -£113,595 10 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** This operational deficit of -£113,595 contrasts with the surplus of £77,632 recorded in the previous financial year. Included in the operational deficit figure is a fixed asset depreciation cost (excluding building) of £84,220, and a bad and doubtful debt provision for our Bookshop and Print Sales businesses of £53,582. In addition to the operational deficit of -£113,595 an additional -£603,496 revaluation charge against tangible fixed assets has been applied following valuation changes to our building arising from the revaluation by our external valuer. Therefore, the consolidated Net movement of funds shows a deficit of - £717,091 for the year ending 2022-23. Summary of income 2022-23: - Earned Income TPGE: Overall turnover from Enterprises increased from £1,540,477 in 2021-22 to £1,950,996 in 2022-23. The Café had a turnover of £223,335, the Bookshop £815,317, and our Print Sales Gallery £912,344. - Arts Council Funding: Arts Council England extended our NPO grant of £918,867 for the year and received £80,633 from cultural recovery fund and Kickstart capital grants. The Gallery was awarded a standstill National Portfolio Grant (NPO) in November 2022 of £2,756,601 over three year (202326). ACE support remains essential in supporting the costs of delivering a balanced and accessible programme by the Gallery. - Fundraising Income: The fundraising team raised a total of £750,311 for the year. Donations and gifts £128,622, membership fees £175,757, sponsorship £65,850 Westminster City Council, £247,430 to support the Art Infrastructure costs and programme of the Soho Photography Quarter (SPQ) and T&F plus other earned income £132,833. £8 for general admission. The Gallery free entry for all visitors from 5-8pm on Friday evening. The increase in the admissions charge combined with strong visitor numbers saw earned income from admissions of £541,226 for the year, up £206,032 from pre-pandemic levels 2019-20 and have supported the significant increase in programme and overhead costs in 2022-23. Fundraising: As a charity, our ability to fulfil our mission hinges on the generous support of various stakeholders, including individual donors, corporate businesses, grant-making trusts, and foundations, as well as statutory funders. We are committed to a respectful and non-intrusive approach towards all individuals, avoiding any undue pressure on donors. As we look to the future, our commitment to creativity, engagement, and artistic innovation remains. We express our gratitude for the continued support of donors and members at all levels. We exclusively rely on our in-house fundraising team, refraining from engaging third-party commercial participators or professional fundraisers. We carefully monitor the approach to fundraising taken by the team are proud to report zero complaints in the 2022-23 period. Our Board has endorsed an accessible Ethical Fundraising Policy, which guides our ethical fundraising practices and is available to view on our website. The fundraising team plays a vital role in securing contributions from diverse sources, adhering strictly to established fundraising guidelines and practices. In 2022-23, we were fortunate to secure £370,048 in 11 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** voluntary income, consisting of contributions from diverse sources: £7,500 from individuals, £16,747 from Trusts/Foundations, £170,225 from Corporates, and £175,576 from Memberships and other schemes. Additionally, we received a substantial 3-year NPO grant of £2,756,601 from Arts Council England. In 2022-23 our Membership and Patron schemes, generated £175,576 in revenue and played a pivotal role programme, and activities. Income from grant-making trusts and foundations enabled us to finance specific projects, including exhibitions and educational programmes. We are particularly thankful for the support we received for our international collaboration with the Australian Government (DFAT) and our partnership with the Deutsche Börse Photography Foundation for our annual photography Prize and exhibition. Our relationships with corporate members and programme sponsors have proven invaluable, leading to successful collaborations such as our agreement with Westminster Council to enhance the art infrastructure in the Soho Photography Quarter SPQ. ## Commercial Enterprises: Faced with stagnant public funding, a competitive philanthropic funding environment, and significant inflationary pressures affecting organisational costs, in June 2022 trustees engaged a retail consultant to conduct a thorough review of the Gallery's commercial operations. Recommendations from the report involved revitalising displays, introducing gallery own-merchandise, enhancing customer communication, and exploring potential merchandise collaborations with other organisations, artists from the public programme and the Print Sales Gallery. To attract more customers, we increased spend on strategic marketing, promotions, and use of on-site media screens and on-line digital advertising. As a result of these initiatives, and the concerted focus of the enterprise management teams, our commercial business had an excellent year with turnover increasing by 18% to £1,950,996 in the fiscal year 2022-23, resulting in a profit after management charge of £282,834. ## Summary of Expenditure: - Inflation: All areas of the TPG and TPGE experienced inflationary pressures of 5-11% in 2022-23. The cost of goods, food, energy, materials, and shipping costs all increased significantly alongside pressure on staff costs. - Costs TPGE: Enterprises costs increased by £67,628 to £1,682,098 in 2022-23 this was primary disruption. - TPG Staff costs: increased by £157,218 to £1,096,281 in 2022-23 due to more staff being employed as we reopened after the previous year's covid disruption, higher salaries for inexperienced staff, additional cost of living and percentage increases to staff salaries due to inflationary pressures. - Programme Costs: Increased by £769,357 to £1,317,660 and reflects the return to a full programme of activities in 2022-23 after the previous year's covid lockdowns and description. Impacts of new controls from Brexit and shipping costs all increased significantly also impacted overheads and irrecoverable VAT costs. 12 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** - Depreciation, Professional fees, and Other Costs: Depreciation fees were down £17,691 to £227,826 in 2022-23. Fundraising costs were up marginally to £33,378 and professional/legal/Audit fees were up £17,545 on 2022 due to the increased audit fees. As all capital and SPQ works were completed by spring 2022 and with UK interest rates rising significantly to 6-7%+ in 2023 trustees approved the repayment of £100,000 in June 2022 of its £362,873 bank loan (March 31st, 2022) and has repaid all the loan in June 2023 from its free reserves. ## Consolidated balance sheet, we observe these trends: Net Current Assets: decreased by £207,367, to £1,359,883, partly due to the loan repayment made in the financial year. Furthermore, the General fund carried forward at the year-end amounted to £1,764,223, compared to £1,781,314 in the previous year. ## Going Concern Assessment ## Overview: The trustees maintain a consistent focus on evaluating the financial performance, operational efficiency, and risks to the organisation, monitored and reported regularly to them through a detailed management account, cash-flows, and an operational risk register. Day to day execution of the strategy is delegated to the Executive Management Team. The Group held cash reserves of £1,350,587 on 31[st] March 2023 and had no period falling below the reserve policy during the financial period. The trustees are satisfied that the strategy and reserves held by the gallery are robust and sufficient to support its going concern, despite the deficit reported for the current financial year. ## Business Outlook Considering the current UK economic outlook and the return of tourists to London, the Gallery stands poised for continued success, driven by a robust financial strategy and a commitment to innovation and adaptation. Here is a breakdown of the key factors contributing to the gallery's outlook: - Income Stability: The gallery's strategic approach to income diversification has positioned it favorably amidst economic uncertainties. By reducing reliance on singular revenue streams, the Gallery has fortified its financial resilience, ensuring stability in the face of shifting funding landscapes. - Art Council NPO Grant: Securing the Arts Council National Portfolio Organization (NPO) grant for an additional three-year term from April 2023 to March 2026 underscores the Gallery's sustained achievements and provides a solid foundation for continued operations. In January 2024 Arts Council announced a further 1-year extension to March 2024 for all currently funded NPO . - Visitor Engagement and Ticketing Income: With visitor engagement in the central London location returning to pre-pandemic levels and projected to remain strong, the Gallery anticipates steady ticketing income. Trustees are considering a strategic review of admission charges to further optimize revenue while ensuring continued audience accessibility. 13 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** - Commercial Activities and Online Sales: Income from commercial activities within TPGE, including online sales through the Bookshop, Print Sales Gallery, Café, and Talks program, is closely tied to visitor numbers. The Gallery's focus on product range diversification and brand merchandise introduction enhances revenue potential. - Fundraising and Sponsorship: While fundraising for exhibitions remains challenging, the Gallery's education program has a history of success in securing funds from trusts and foundations. Additionally, renewed sponsorship agreements, such as the recent contract with the Deutsch Börse Photography Foundation, contribute to financial stability. - Inflationary Pressures and Financial Outlook: Despite inflationary pressures on costs, which are expected to decline to 3-4% in 2024, the overall economic outlook suggests stability, with a recession in Europe unlikely. The gallery aims to generate additional income through earned activities, confident in its ability to meet financial targets within the optimistic financial forecast. ## Review and Risk management In January 2023, The Gallery welcomed a new Director, Shoair Mavlian, signalling a review of the organisation and a strategic directional shift in activities and programming over the next five years and with consideration for ACE principles. The Gallery is actively developing a new three-year business plan to that stem from the broader economic environment and geopolitical events, it is the Trustees view that the Gallery presents its accounts on a going concern basis, supported by an established track record of sound financial governance, overseen by dedicated trustees and an experienced Executive team. Risk is regularly reviewed and monitored, with a clear set of key performance indicators allowing for early sight of emerging issues. The Gallery prides itself on diversified income streams, mitigating over-reliance on any single revenue source. The Gallery's ownership of the freehold of its building, valued at £9.7m as of 31 March 2023, coupled with approximately £1.3m in cash reserves as of the same date, further supports an ability to manage through periods of financial risk. The G risk register continues to be influenced by the longer-term impact of the pandemic on operations, Brexit on movement of artwork and people, inflationary pressures on overheads, and 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. These are continually reviewed by trustees and assessed against the -flow and organisational objectives. ## Principal Risks: - Macroeconomic Vulnerability. Fluctuations in the broader economy can directly impact visitor/customer spending at the Gallery, thereby affecting revenue streams. - Earned Income Dependency: The Gallery's heavy reliance on strong visitor numbers restricts its programming flexibility and content diversity, posing a potential threat to long-term sustainability. 14 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** - Cybersecurity and Technology: Increasing digitization exposes the Gallery to heightened risks of technology failures and cybercrime, necessitating robust mitigation measures to safeguard against potential disruptions. - Fundraising and Cash Reserves Challenges: Economic downturns in the UK may impede fundraising efforts, making it challenging to maintain cash reserves at policy levels. Shortfalls in financial targets could limit the Gallery's financial flexibility. - Inflationary Pressure: Continued inflationary pressures on overheads and staff costs significantly impact profit margins within our business enterprises and increase overall gallery costs. Ongoing global tensions, such as conflicts in Europe and the Middle East, as well as upcoming elections in the UK and US, may exacerbate economic uncertainties. - Staff Turnover and Knowledge loss: Inflationary pressures on staff pay rates may elevate turnover rates, leading to the loss of organizational knowledge and expertise, potentially disrupting operational continuity. - Funding Shortfall: The inability to generate additional income to offset funding reductions could hinder the Gallery's ability to achieve its strategic objectives and maintain operational effectiveness. - Regulatory and Environmental Factors: Evolving regulations and mounting environmental concerns may necessitate the Gallery to adapt its practices, potentially impacting operational costs and resource allocation. - Competition and Market Saturation: Increasing competition from other cultural institutions, entertainment venues, or online platforms may intensify, leading to challenges in attracting and retaining visitors, sponsors, or donors, and exerting downward pressure on ticket sales and donations. - Legal and Regulatory Changes: Evolving legal and regulatory landscapes, including changes in tax laws, data protection regulations, or cultural heritage preservation requirements, may necessitate costly compliance measures or operational adjustments, impacting the Gallery's bottom line and resource allocation. - Climate Change and Environmental Risk: The growing impact of climate change, including extreme weather events, rising sea levels, or environmental degradation, could pose physical risks to gallery facilities, disrupt travel patterns, and necessitate costly adaptations or mitigation efforts. ## Reserves Policy The trustees of the Gallery work to support sustainability of the organization, to ensure adequate provision to absorb unforeseen financial circumstances and to take advantage of opportunities as they arise. We define reserves as being the part of our income that is freely available to expend on general purposes at the Board's discretion and in the furtherance of our vision and objectives, once our commitments and planned expenditure have been met. Our aim is Gallery operating costs calculated and reviewed annually and aim to build our cash reserves when small surpluses are made. 15 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** It is anticipated that these funds will be placed on deposit or otherwise invested on the advice of the trustees and our approach will be reviewed annually. 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 organisational risk. As part of calculating the current provision the committee considers the following: - Continued investment in the building, staff, and programme. - Mitigation of risk from unforeseen building, staff, or programme costs. - Impacts of a recession or further disruption to normal business activity on earned income. - Impact of Brexit and high inflationary pressures on overheads. Our minimum cash free reserves target is £800,000 or approximately 19% of annual operating income (2022-23 turnover). Total cash-in-hand on 31 March 2023 stood at £1,350,587 with our bank, NatWest. The Gallery has an outstanding bank loan of £268,707 as of 31 March 2023 which it fully repaid in June 2023. ## Equality, Diversity & Inclusion 2024-25 The Gallery is committed to providing a diverse and inclusive experience, with the support of an executive and nonaudience. We continued to offer a wide array of exhibitions, events, and resources to engage and be relevant to a broad demographic of individuals and groups. The Gallery established an Equality, Diversity and Inclusion (EDI) taskforce in 2021. This taskforce meets regularly, focusing on five key areas: employment & recruitment, communications, programming, audience development, and organisational culture. Staff members collaborate in smaller teams to discuss, propose, and implement EDI actions. They also convene as a larger group to propose and execute various EDI initiatives. In addition, the taskforce prioritizes staff development, with a particular emphasis on LGBTQI+ awareness in 2023-25, aligned with an upcoming exhibition. They are also working on guidelines for Alt-Text descriptions of images shared online for increased accessibility and inclusivity. ## Accessible and Inclusive Space: The Gallery is dedicated to creating a welcoming and memorable experience for our visitors. To achieve this, we offered affordable and free access to our programs and maintained an inclusive space for ideas, learning, and conversations. We are also committed to staff training to ensure we have an awareness of ## Environmental Policy. The Gallery's environmental statement serves as the guiding principle for all its operations, encompassing various areas such as procurement practices, travel arrangements, choice of cleaning products, and management of energy and water consumption. The Gallery has an environmental task force of key staff members and a prioritises sustainability by sourcing electricity from renewable suppliers, employing Green IT practices, recycling waste, and favouring recycled and environmentally friendly products whenever feasible. Additionally, the Gallery is actively transitioning towards reducing office waste and reusing exhibition builds over multiple seasons to minimise construction waste. In collaboration with suppliers, we are committed to obtaining comprehensive data on resource consumption to facilitate ongoing monitoring and future reductions. Through partnerships with organisations like Julie's Bicycle and 16 ## **THE PHOTOGRAPHERS' GALLERY LIMITED** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** ## **FOR THE YEAR ENDED 31 MARCH 2023** the Gallery Climate Coalition, we aim to share best practices and leverage collective expertise to drive meaningful action towards environmental sustainability. I would like to thank all trustees for their time and expertise, and staff for their commitment to the continued success of the Gallery. ## Auditor In accordance with the company's articles, a resolution proposing that HW Fisher LLP be reappointed as auditor of the company will be put at a General Meeting. ## Disclosure of information to auditor Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The trustees' report was approved by the Board of Trustees on Ms Amanda Gray Chair of Trustees 17 THE PHOTOGRAPHERS, GALLERY LIMITED ATEMENT OF TRU5TEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2023 The trustees, who are 31so the directors ol The PhotO8raphers' Gallery ￿ffi1ted for the purpose ol cornpany law. are re5ponwble for prep3rin8 the Tru5tee5' Report and the financial Statements in ac(x)Tdarbce with appliGI￿e law and United Kingdom Accountin8 Standard5 (United Kingdorn Generally Accepted Accounting Pracbcel. A combinatiori of Company Law and Charity Lèw requires the trustÈès to prÈparÈ financial ttatements for Èach financial year which 8lVÈ a true and fair VIÈW of the state of affèirs of the group and the parent Charity and of the intomin8 resources and èpplication of resources, includin8 the intome ènd expenditure, of the8roup for that ￿al. In preparing these financial ststements, the trustees are required lo". - selett suStèble accounting pollcSes and then apply them consSstently. - observe the methods and prinuples in the CharitiesSORP; - make judgements and estimates that are reasonable and prudent: - state whether applicable UK AccountinB Standwds been followed. subject to aThy material departures di5c105ed and e¥plained in the financial statements. and prepare the finoncial statements on the 8oin8 concern bay5 unle55 it 15 inappropriale to pre5vrne that the charity will continue in operation. The trustees I￿ responsible for keepifig adequate •¢ewntin8 re¢ords th•t dlKlose with reasonable •t¢uraty * anv tlme the financial po&ition of the group and enable thern to ensure that the financial statemefits comply with the Cornpanies Act 2rKJ6 and the Charities Att 2011. Thty ale also iesponsibk for sale8uardiNd the assets of 8roup heffi￿ for tskin8 reasonable steps for the prevention ènd detettion of fraud ènd other irie8ularities. 18- THE PHOTOGRAPHERS, GALLERY LIMITED INDEPENOENT AUDITOR'S REPORT TO THE MEMBERS OF THE PHOTOGRAPHERS, GALLERY LIMITED Oplnlon We have audited the financial statements olThe PhotOEraph*s' Gallery bmited Ithe'parent charity'l and Its subsidiary Ithe'Eroup'l for the year ended 31 March 2023 which comprise the consdidated statement of financial actwitie5. the consolidared and charity balance sheers. the consolidated statement of cash flows and the notes to rhe financial statements. including significant accounting policies. The financi81 reporting framework thar has been applied in their preparation is applicable law and United Kingdom Accounting Stsndird5, including 102 The Ftn(¥nciol Reporring Stondurd oppltcoble in the UK ond Republic of Irelond Iunited Kingdom Gener311y Accepted Accounting Practice). In our opinion, the financi31 ststements.. Eive a true and fair view ef the state of the Rroup's and parent charivs affairs a5 at 31 March 2023 and of the group's incoming resources and application ol resources. including its income and expenditure. for the year then ended., hève been preperly prepared in accordantÈ with United Kingdtsm GÈnerally Attepted Attountln8 PratticÈ', and have been prepared in accordance with the requirements olthe CompaniesAct 2LK6 and the CharitiesAct 2011. Èa51s fw pplnlon We conducted our audlt in accordance with Internatknnal standards on Audltlng IUKI 1154s IUKII and appllcèble law. Our responsibilities under those standards are furth￿ described in the Auditors resportsibilifies fvr the oudir ol rhefinonciol starements sectien of Ouf report. We are independent of the 8roup in accordartce with the ethical requirements that are relevant to our audlt of the financial statements In the UK. Including the FRC'S Ethical Standard. and we hawe fulfilled our other ethical responsibilities In accordance with these requirements. We ￿lIeve that the audit vlidence we have obtained 15 sufficient and appropriate to provide a basis for our opinion. Concluslons retstln8 IQ 8oln8wcern In auditin8 the financial statements, we have concluded that the irustses, use of the wng con￿rn basls of accountlng in the prepèratlon ef the financial ststements isapproprSaie. Based en the work we have performed. we have identified material uncertaint￿5 relatln8 to events or conditlons that, individually or collectively, may cast s18nlncant doubt on ihe 8roup's and parent charitrfs a￿lity to continue as a goln8 concern for perled of at least tWe￿e monthsfrom when thefinancial State￿￿tsare authorSsed forlssue. Our responsibilities and the responsih"lit*s olthe trustees %Wth resFe£t to 8oin8concern are described In the relewant sectlens of thls report. Other Inforrnallon The other information comprises the information included in the annual re[￿ other than the financial stètements ènd our auditor's report thereon. The trustees are responsible for the other informal￿n contsined within the ènnuèl report. Our opinion on the flnanclèl st*ements does not cover the othei Information and. except to the extent otherwise eiplicitly stèted in our report. we do not express any form ef assurance conclusion thereon. Ovr responsibility is to read the other information ènd. in doing so, consider whether the other Information is materialty inconysteni wilh ihe financial statements or our knowledge obtained In the course of the audit. or otherwise appears to be materially misststed_ If we identify such material inconsistencies or apparent material missiatements. we are required to deterrnine wherher this gi¥es rise io a material mi55tatement in the financi31 ststements themselves. If. based on the work we have performed. we conclude that there 15 a matenal rnisststement of th15 Other Information, we are required to report that tsct. We have nothin8 to report in thi5 re8ard. Oplnlons on other matters pre5crlbed bythe Cornpanle5 Art2rM16 In our opinion, based on the work undertaken in ihe course of our audit". the inforrnatioll given in the tru5tee5' report, which iTrtludes the director5. report prepared for the purpD5e5 of company law, for the financial yearfor which the finaniial 5taternent5 are prepared 15 COll5i5tent with the financial 5tatements,' and the director5, report induded within thetru5tees' report has been pwared in accordance with applicable legal requirements. Matterson whlch we are requlred to report by exceptlon In the light of the knowledge and understèn¢Jing ef the group and parent tharity and its environment obtained in the ceurse of the udit. we have not identified material misstatements in the dire£tors' report induded within the trustees, report. 19- THE PHOTOGRAPHERS, GALLERY LIMITED INDEPENOENT AUDITOR'S REPORT {CONTINUEDI TO THE MEMBERS OF THE PHOTOGRAPHERS, GALLERY LIMITED We have nothing to report in respect of the following matters in relatw to which the Companie5 Act 2Tr)6 require5 U5 to report to you if, in our opinion.. adeouate accountSng records ha¥e noi been kept by the parent charity. or reiurns adequate for our audSt have not been retrived from branches not visited b¥ us." or thè parent tharity's financial thtÈmÈnts are not in agreemènt with the accountingfÈtords and ￿tUM$,. or certsin disclosures of trustees. remuneration spwfied by laware not made; or we not re£elved all the inlormètSon and explanationswe require forour audit. Responslbllltles of trtsstees A5 explained more fully in the ststement of trustees. respDnsibilitie5. the tru5tee5. who are also the director5 Df the charity for the purpose of company law, are re5pon5ible for the preparation of the financial 5tatement5 and for being satislied that they give a true and tsir view, and for such intÈrnal toritrol a5 thè tru5tÈÈ5 dÈtÈrrnine 15 n¢¢essary to en3b￿ the preparation of financial statements that are free from materièl misstaterThenL whdher due to fraud or error. In preparing thè financial statements, the trustÈÈs are responsible for èssessin8 the 8roup's ènd parent charity's ability to £ontiiiiie as 3 goin8 ton£ern, disclosing, as applitable, matters related to going concern ènd using goin8 concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic ahernative but to do so. Atsdltoi's rv4onslbllltlesforth* •udll olthellnanthl statements Our objertiwe5 are to obtain reasonable assurance about whether the finaThcial statements as o whole are free from rnaterial rnisstatement, whether due to froud ly error, and to i55ue an avdi¢or'5 report that include5 our opinion. Reasonable assurance 15 hi8h level of a55ur4nce but 15 not 4 guarantee that an oudit condurted in accordance with ISAS IUKI will always detect a rn4terial isstatement when it exists. Mi5ststement$ arise from fraud or wror and are considered fflaterial if, individually or in the 88re8ate, they Could reasonably bÈ expetted t<$ infiuen¢e the e¢onomi¢ deCI￿n$ of users taken on the basi$ of these finan¢ial ststements. Irre8ularities, includin8 fraud, are instsn£es of non-wmplièn£e with lèws and regulations. We design procedures in line with our responsibilities, outlined above, to detect materièl misstatements in respect ol irregulèrities, includin8 frèud. The extent to which our procedures ère capable of detecting irre8ularities, Intludingfraud. isdetsiled below. As part of our planning process., We enquired of management the systems and controls the company has in place. the areas of the financial ststements that are most susceptible to the risk of irregularities and fraud. and whether there wès any known, suspected or alle8ed fraud. The cempany did not inform us of any known. suspected or alle8ed fraud. We obtalned an understandin8 of the le8al and re8ulatory frameworks appllcable io the company. We determlned that the follewing were most relevant". FRS 102. The com￿n￿$ Act 2(￿ and The tharrties Act 2011. We considered the Incent￿e$ and opportuniiies ihat exist in rhe company. including the e¥tent of management blas, whlch present a poiential for Irregularities and fraud ro be perpeiuated. and tailored our risk assessment accordin8lv U5inE our knowledge of the company. rogether with the di%u95ions held with the compary at the planning st3ge, we formed a conclusion on the risk of misststement due to irregularities including fraud and tsilored our procedure5 according to thi5 risk as5es5ment. The key procedure5 ¥ve undertook to detert irregularities includin8fraud duringthe course of the audit included.. Identifying and te5tin8 journal entrie5 and the overall accountin8 record5, in partirular those that were Significant and unusual. Reviewing the financial statement disclosures and deterrnining whether accounting PDlicie5 have been appropriately applied. Reviewing and challen8lll8the a55umptiOll5 and judgetnents used by management in their 5iBnrficant estimate5. A5SÈ5sing the extent of tompliantÈ. or latkof, with the relevant lèw5 and regulation5. A5sÈ5sing the vèlidity of the classtficati¢)n of incomÈ, Èxk*nd1tU￿. assets and liabilities between un￿StrIcted, desi8natÈd nd restricted funds. Performing 2 physical verification of key ass￿$ and stock Ttems. Obtainingthird-p3rtycenfirm*ion of material bank balances. Documenting3nd verifyinE all significant related party land consolidated) balances ènd transactions. Reviewing documentation such asthe charity board minutesfor discussions ol iireguhrities indudinghud Testing all material consolidation adjustments -20- THE PHOTOGRAPHERS, GALLERY LIMITED INDEPENOENT AUDITOR'S REPORT {CONTINUEDI TO THE MEMBERS OF THE PHOTOGRAPHERS, GALLERY LIMITED Owing to the inherent lirnitations of an a￿lt. there 15 an unavoidable risk th* we may not have deterted some material isstatements in the financial Statements even thou8h we have PToperfy planned and performed our audit in accordance with auditln8 Stand3rd5. The primary re5POll5ibility for the prevention and detertion of irre8ularities and fraud rest5 Wlth the those charged with governance of theeritty. A furthèr dÈscription of our responsibilities is 3vèilèblÈ OTh the Finantial Reportin8 Council's website at.. https..Ilwww.frc.or8.uk/ 3uditorsresponsibilities. This description foTms part of ouf auditOT'S report. Use of our report Thi5 report is rnade 501ely to the charitableccmpaThVs members. as a t￿y. in acCordance￿th Chapter 3 of Part 16 of the Companies Act 2006. Our audit work ha5 been undertaken so that we mi8ht state to the charitable company s mernber5 those matters we are required to state to them in an auditor5. rewrt and for no other purpose. To the ful￿St extent permitted by law, we do not accept or a$5ume re5pon5ibility to anyone other than the rharitable rornpany and the charitable company'5 membpr5 a5 a body, for our audit work, for thi5 report, or forthe opinion5we have frymed. rfiLdk orSt*tutffj Audt¢rl for and on tse￿lf of HW Flsher LLP Chartered Accountants Statutory Auditor Arre House 11-15 WS11iam Road London NWI 3eR United Kingdom 30 Apr 2024 21 THE PHOTOGRAPHERS, GALLERY LIMITED CONSOLIDATED STATEMENT OF FINANCIAL AcfivmE5 INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023 Currentfinanclal year uNes￿￿e0 Unresrrlrted Resrrftted lunds nd5 funds general des*nated 2023 2023 Tthl Total 2023 2023 2022 as restated Income from.. Donation5 and leEacie5 1.369.Y8 541,226 1.950,996 1,369,548 1.538,458 541,226 206,388 1,950,996 1,65?,226 135 Other trading activities Investments Other income 214.448 247,430 461,878 128,428 Total br￿¢m4 4.076.218 247,430 4,323,648 3,530,635 endlture thi.. Fundrèisin8 and publSclty Trading COSt5 33,378 1.682.188 33,378 28,505 1,682,098 1,614,470 1.715,476 1,715,476 1,642,975 2.341,613 132,724 247,430 2,721,767 1,810,028 Tolal resou￿e$ expended 4.057. 132,724 247,430 4,437,243 3,453,003 Net Incomlng resources before tTrnsler5 19.129 1132.7241 1113,5951 7?,632 Gloss transfers between funds 136.2201 36,220 Net lou¢8oln8l/lncomln8 resowces 117.0911 196,5041 1113,5951 7?,632 Other reco￿0$ed ylns and losses Revaluation of tangible fixed assets 1603,4961 1603,4961 166,763 Net movtmert In funds 117.0911 170J.C#)JI 1717,0911 244,395 Fund balance5 at l *pril 2022 As originally rÈportÈd Prior year adjustment 1,781,314 11.ILi7.LTrII (7(K),{￿l 12,881,314 12,45B,385 IM,IWI 1521,4661 restated 1.781,314 lo,4￿,[ 12,181,314 11,936,919 Fund balancesat 31 March 2023 1.764,223 9.7rxi.iJJi 11,464,223 12,181,314 The st*ement of financial activities includes all ￿InS and losses reco8nised in theyear. All income and expenditure derive frorn continuin¥ activitie5. The st3tement of financi31 acbvitses a150 complie5 with the requirements for an irbcome and expenditure account under the Companie5 Act 2￿6. -22_ THE PHOTOGRAPHERS, GALLERY LIMITED CONSOLIDATED STATEMENT OF FINANCIAL AcnvmE5 {CONTINUED} INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023 Prfor financial year ReArftted funds Tthl lund5 general 2022 fund5 desl8nated 2022 2022 2022 •s reststed Income and endowrnents Irorn- Donation5 and legacie5 1.271.470 2C6,388 1,657,226 135 266,988 1.538,458 206,388 1,65?,226 135 Other trading activities Investments Other income 128,428 128,428 Total br￿¢m4 3,263,647 266,988 3,530,635 endlture thi.. Fundrèisin8 and publSclty Trading COSt5 28,505 1,614,470 28,505 1,614,470 1,642.975 1,642,975 1,509,645 131,291 169,092 1,810,028 Tolal resou￿e$ expended 3,152,620 131.291 169,092 3,453,003 Net Incomlng resources before tTrnsler5 111,027 1131.2911 97,896 7?,632 Gloss transfers between funds 166,6321 164.528 197,8961 Net lou¢8oln8l/lncomln8 resowces 44,395 33.237 7?,632 Other reco￿0$ed ylns and losses Revaluation of tangible fixed assets 166.763 166,763 Net movemerrt In lufids Fund balances at l April 2021 44,395 2(￿.[th) 244,395 A5 originally reported Prior year adjustment 1.736.919 10,721,466 1521.4661 12,458,385 1521.4661 restated 1.736.919 lo.2￿.(￿) 11,936,919 Fund balancesat JI Marth 2022 1,781,314 10,4(M).fXM) 12,181,314 The st*ement of financial activities includes all ￿InS and losses reco8nised in theyear. All income and expenditure derive frorn continuin¥ activitie5. The st3tement of financi31 acbvitses a150 complie5 with the requirements for an irbcome and expenditure account under the Companie5 Act 2￿6. -23- THE PHOTOGRAPHERS, GALLERY LIMITED CONSOLIDATED AND CHARITY BALANCE 5HEErs ASAT31 MARCH2023 Charlty 2023 2023 2022 2022 a5 restated a5 restated Flxed a55et5 Intangible assets Tangible 355et5 Investments 20.535 10,3tr3,186 31,417 10.945.520 20.535 10.309,186 31,417 10,945,520 10,329.721 10.976,937 10,329,723 10,976,939 Current as¥ets Stocks Debtor5 Cash it bank and In hand 16 17 144.769 395,792 1.350.587 123,757 497,976 1,702.905 591,887 1,024,441 574,607 1,452,010 1,891.148 1531,265 2,324,638 1757,388 1.616,328 1266,9491 2,026,617 1463,8071 Credltors.. amounts lallln8 dtse wbthln anÈ 19 Net current assets 1,359,883 1.567,250 1,349,379 1,562,810 Total assets le55 current Ilabllllles 11.689.604 12,544.187 11,679.102 12,539,749 Credltor5'. amount5 lalllng due after morethan one year 1225.3811 I362￿73) 1225,3811 1362,8731 Net ass*$ 11.464,223 12.181,314 11,453,721 12,176,876 Income lumds Unrestricted fund5- designated lincludin8 9.7(M),IXXI 1.764.223 lo.4cK).￿ 1.781,314 9.7CK),(KJO 1.753.721 10,400,(KJO 1,776,876 Unrestrirted funds general 11.464.223 12.181.314 11.453,721 12,176,876 The charr£able company's netexpenditure fortheyear was £723.15512022.' net intome of £244.3951. The financi31 statements were approved by the Tru5tee5an.31JAw.2024 Trustee Amanda Gray Company Re815tratlon No. cl)￿09 -24_ THE PHOTOGRAPHERS, GALLERY LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Noies Cash flowsfrom operavni Cash 8enerètÈd from opèrations 26 50.635 275,332 InvestlnÉ att1￿1￿e$ Purchase of tangible fixed assets Investment Income received 1184.1061 1502,9651 135 Net ash used In Irwe5tln8 artlthles 1502,8301 Flnan¢ln8 art1￿11e$ Repayment of bank loans and overdraft 1127.4361 132,9501 Net f45h used In Ilnandni aaibftles 1127,4361 132,9501 Net de¢rea5e In ush al￿ (ash eq￿Valents 1260.9)71 1260,4481 Cash ond cash equlvalent5 at be￿nnIng0f year Effect of foreS8n exchange rates 1.611.494 1,859,809 12,133 C•sh and rJsh eqUI¥aleThts￿ end olyear 1,350,587 1,611,494 Rdatln8 to.. Cèsh ai bank and in hand Bank over(Jrafts included in creditors payable within one year 1.350.587 1,702,905 -25- THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs FOR THE YEAR ENDED 31 MARCH 2023 Ac¢ounting poll¢ie5 Charity irTrlormation The Photographers, Gallery bmited 15 a prwate compan¥ limrted by gUar￿lee incorporated in England and Wales. The rewstered office is 16-18 Rami11￿5 Street. London. WIF 7LW. On winding up. each person who is a member at the date of winding up or ceased to be a member during the year prior to that date is liable to contribute 3 sum not exceeding £1 towards the assets of the company. As 0131 March 2023the cornpony ha5 12 rnembeTS12022.. 13 member51. 1.1 A¢¢ourrtln8conventlon The financial statements hawe been yepared in accwdance with the Companies Act 20￿. rhe Charities Art 2011, and "Accounting and Reporting by Charities.. Statement of Recommended Prartice applicable to charities preparing their accounts in accordance with the Financial ReportinRStandard applicable in the UK and Republicof Ireland IFRS 1021 (effective I january 20191 The charity is i Public Benefit Entytyas defined by FRS 102. The finbncial 5tatement5 are yepared in sterlir￿ whith 15 the funcbonal currency of the charity. Monetary 3mount5 in these financial 5tatement5 Jre rounded to the nearest £. The financial statements hwe been prepared under the hi5tori¢al Cost ¢on¥ehtion. modified to in¢lude the revtylvation of freÈhold propeTties. The p¢in¢ipal ¥tountin8 polities atloptsd are setout below. The group financial ststemefits refiect the ￿$￿Its and tombined fifianci31 position of The PhotO8rèphers' Gallery Llmlted and The PhotO8r3phers' Gallery IEnteryisesl Limited. As permitted by $408 of the Companles Ad 2DJ6, the parent charitèble company has not presented its own income and expenditureaccount and relèted notes. 1.2 Goln8 concern At the time of appr¢vin8 the finan¢ial ststements, the Trustees h•¥e •ssessed income and expenditure in ￿th the charlty and it$ 5ub5idiary and based on bud8ets and tiadin8 ltye¢asts h•¥e ￿1$1)￿#bIt Èxpettstion thot the tharity and group ha5 adequate resources to continue in operational exislence for the ffftseeable hjture. Thus the trustees continue to adopt the 80ing ton¢ern basis of èctountin8 in preparin8 the fifiancial statements. 1.3 c￿rI￿ble lund5 Unrestricted funds are avallable lor use atthe dlscretion of the trustees in furtherance ol iheircharitable objectlve5, Oesignated funds comprise funds %*thith h￿e been set asideat the discretion of the trustees for specific purposes. Restrirted funds are svbjert to Specific conditions by don¢)rs a5 to how they may be used. The purp05e5 ond u5e5 of the restricted fund5 are set out in the notes to the financial 51atements. 1.4 Income Inceme is rÈ£o8ni5Èd when the 8roup is le83lly entitled to it after any perf￿Mafi￿ CO￿rtIOnS have been met, the amounts can be measured reliably, and it is probable th* income will be re£ei¥ed. Cash donations are recognised on receipt. Other donatiOll5 are recogni5ed once the group has been notified of the donation. unless performance conditions require deferral of the arnount. Incorne tax rec￿erable in relation to donations received under Gift Aid ordeed50f covenant is recognised at thetime ofthp donation. Art5 Council England provide annual revenue lurmling forthe Gallery based on threwear contraLts. The annu31 grant award 15 reco8nised in the accounts on an accrual's basi5. Income from other tTadinE aCtI￿tieS ￿￿ents the income from café Sales. bookshop sales and print sales and is recogni5ed in the period in which thesale takes place. -26- THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting pulicie5 Icontinuedl Income from trusts and foundations include5 income for exhitr*ti"or￿ (hjnations ITh knnd and Sponsorship income. Such income 15 recognised in the period in which the related event occurs. Membership income 15 recoBnised at the d*e amounts are paid unle55 where there are clear benefits to the member in re13tion to amounts paid these are reroBni5ed in the period over which the benefits relateto. 1.5 Expendlture ExpÈnditure has been chèrged to the ststement ol fin3ncial attivities ￿ an atcrual's bals. Costs are shown excluslve Df anv related irrecoverable value èdded tax. Expenditure on raising fund5 represent5 Costs incurred in relation to the 5tsff members who are en8a8ed dirertly in fundraising and also include 3ny a5swiated costs. Expenditure on charitable acbwties represent the costs of presenting the programme of actiwties includinB exhibitions and preject5. Included 15 3113ttributable 5taifin& marketin& operational and adrnini5trative expenditure ènd 5pon50rship in kind. 1.6 1Trtt8n4lble fixed assetsother than10￿11 Intangible èssets art rÈtognised ai cost and a￿ subsequently measured at ¢OS¢ less a¢¢umulated amortisation and ac¢umulated impairment losses. SS8nificant expenditure on the CRM databèse is tèpitalised ès an intanwble asset ènd stated at cost. The desi8n and content development costs have been capitalised only to the extent that they lead to the creation of èn enduring èsset deliverlng future econemic benefits at least a$ 8reai as the amount capitslised. Where Intan8ible are re￿V for use, amortisation Is charged on a stral6ht Ilne bèsls over a S year peflod and is included within expenditure on charitable actlTrAtles. The carrySn8 value of the asset w511 be subjectedioaTrnual impaSrment reviews. 1.7 Tin8lble flxed assets Tangible fixed a55ets are initially measured at cost and 5ub5eqvently mea5vred at C05t or Yaluation, net of depredatlon and any irnpairrnent1055e5. Freehold land and bvildin85 are held at fair value (onlderations made at the end of each year to ensure their valuotion materially refiects their fair value. Depreciation is recognlsed 50 as to write off c05t or valvatiw ol assets less their re￿dl4al value5 over their useful lives on the followin8 bases.. Freehold buildlngs (excluding landl Fixture5 and fittin85 Computer equipment SO ￿ar$ 10 ￿ar$ 5years The 8ain or loss arisin8 on the dispos31 of an èsset is determined as the differen￿ botween the sale proceeds and the carrying value of the asset, ènd is recognised in net incomellexpendTturel fortheyear. 1.8 lrnpalrment dfixed a55e15 At each reporting end date. the group reviews the carrying amounts of its tsngible and intsnEible assets to determine whether there is any Indication that those assets have suffered an impairment loss. If any such indication exists. the recoverable amount of the asset 15 estimated ir• order to determinethe extent of Ihe impairment1055 lif anvl. -27_ THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting pulicie5 Icontinuedl 1.9 siocks Stotks are ststed at thÈ lowÈr of tost and estim*ed sÈllin8 price less tosts to cOMp￿te and sell. Cost Comprises dirett materials and, where applicable. dirert labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held distribution * no or nominal cot)sideration ère measured the lower of replacement cost and cost. Net realisable value is the estimated sellin8 price less all e5timaied costs of completlon and costs to be Incurred in marketln& sellin6 and distributyon. 1.10 Cash and (ash equlvalents Cèsh and cèsh equivalents include Cash In hand, deposits held * Cèll with banks, other short-term Ilquld Investments wlth ori8lnal mèturlties of thiee months or less. and bank overdrafts. Bank overdrafts are shown %Ylthln borrowln8s in current 1.11 Flnanclal Instrumeffts The tharity has elÈtted to apply thÈ yovlslons of Sertiw 11 Wsi¢ Finan¢ial Instruments, I￿) 5ettion 12 '0ther Flnanclèl Instruments Issues, of FRS 102 to all of its fit)antial instruments. Flnèncial Snstruments are recognlsed the youp's balance sheet when the charity becomes party to the tontrèctuèl previsions of the instrument. FSnancial assets and liabi1Sties are offset. wth the nei amounts preset)tsd it) the financial statements, when there 55 a le8allv enforceable dght to set off the iecognised amountsand there is an intention io settle on a net basis orto reallse the èsset and settle the liability 51multaneously. Bo51cAlnonclolossets Basic financial assets, which include debtors and £ash and bank bala￿es, are initially measured at transaction price includin8 trènsartion costs ènd are subsequently carried at amortised cost using the effertNe interest method unless the èrrèn8ement constitutes a finèncin8 trènsaction, where the trènsartion is meèsured at the present value of the future receipts discounted at a market rate of interest. Flnancial èssetsclassified as feceivablewithin oneyear are not amortlsed. 8osfcfinttnclolllubllltles Basic financial liabilitie5, includin8 treditors and bank loans initially reto8nisÈd at transattion pritÈ unless the arrèn8èmènt ton5titutes è financin8 trènsaction, Whe￿ the debt instrumerrt is ffleasured bt the present vèlue of the future payments discounted at a market rate of interest. Financial liabilrties dassthed as ptyable within one yeèr are not èmortised. Oebt instruments are subsequÈntty carried at amortised cost, u*n8theeffective interest rate method. Trade creditors are ebli8atiens to ptyfor 8oods or services that have been acquired in the ordinary course ef operations from suppllers. Amounts payable are classified ès current Iiabilrties rf paymert is ¢Jue within one year or less. If not, they ère presented as nen-current liabilities. Trade s. Revi5i0ns to accounting e$tirnate5 are recognised in the perlod in which the estimate is revised ¥¥here the revision tyfferts only th* period, or in the ppriod of the revi51on and future pÈriods where the revision afferts both turrent and futuo periods. The trustees have mède the following sW)if￿nt accountlll8estimates in pre￿rIngthe fifiancial st3tements'. Key sources of e#1Ma￿an uncertalnty PrOpertyvalua￿OTh The Gallery carries its freÈhtsld property at lair valuè, with thanges in fair value ￿irt8 fet¢)gnisÈd in other tomprÈhÈnsi intorne. The Gallery en8a8ed an independent valuation 5peciali5t. Knight Frbnk, to determine the fair value at 31 March 2023 on an existing use basi5. Revaluations are performed 5Uth th* the tarryin8 brnount materially ￿e£t5 the assets fair value the ￿portingdate. Further detail tan befound in Note 14. Tan8lble flxed assets Tangible Fixed A55ets are depreciated ¢)ver their useful live5. 115efvl li¥es are based on the management'5 estimate5 of the periods within which the assets will generate revenue and whith are periodically reviewed for continued appropriateness. Change5 to judgements can resuk in 5ignrficant vaTiations in the carrying value and amounts charged to the Statement of Financial Activftie5. -29- THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Donations and le￿1¢5 Unrestsirted Unre5triited Restrirted Total fvnd5 8*neftl 2013 funds general 2022 as restated fund5 2022 as restated 2022 as restated Donations and gifts Membership fees Donètions from publlc bodles Other 128.622 175,576 23,204 268,847 861,557 117.862 53,204 268,84? 1,098,545 117,862 236,988 65.850 1.369.548 1.271.470 266,988 1,538,458 Charltsble art￿￿e5 Un￿$trItted Unrestrlcted funds funds 2023 2022 s rettated Tl¢ketlng, exhibitlon Ind lectures 541,226 2Q6,388 Other tradlni •rtl%ltles Unresthtted funds 8eneral 2023 Unrestrlcted funds general 2022 Trading by The Photographer5 Gallery (Enterprises) timi 1,950,996 1,657,226 Inv￿ments Tgtsl funds general 20Z3 2022 Investment income 135 THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Otherlncorne Unrestsirted Restricted Totsl Unrestricted fvnd5 8*neftl 2013 funds funds general 2022 2023 2023 Government Erant5 Other publit funding Corporate income Gèllery hire income Covid support 8rants other Income 247,430 247.430 193,340 1,990 14,650 77,886 23,644 2,842 356 23,7(Kl 193.340 14.650 4,468 214.448 247.430 461.878 128,428 Ra1￿￿8 funds Unrestrirted lunds fjeneral 2023 Unrestrlcted fun(Js 8eneral 2022 as restated FundraI￿n Sèekin8 donation5, grants and Iwties 33,378 28,505 Tradin Tr3ding by The Photographers, Gallery IEnterpri5e51 limited 1,682,098 1,614,470 1,715,476 1,642,975 31 THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Cth•rltsbleactkntJes PfO8rammin8. exhibition5 and events ogramming, exhibitionsand event5 102Y 2022 as ￿$tated Staff cost5 Depreciation and impairment Direct pro8rèmmin8 Costs Bank and interest costs 1,096,281 227.826 1,317,660 939,063 245.517 548,303 14,690 2,641,767 1,747,573 Share gf 8overnan¢e Costs lsee note 101 62,455 2,721,767 1,810,028 alysls by lund Unrestricte(J funds- Bener•l Unrestrlcted funds- desS8nated Restrirted funds 2,341,613 132,724 247,430 1,509,645 131,291 169,092 2,721,767 1,810,028 10 GO￿rn4n￿ ws¢s 202J 2022 Audit fee5 Lesèl and professlonal 30,OCKJ 32,455 80,LX)O 62.455 Analysed betsveen Charitsble activities 80,CIX) 62,455 Governance costs include payments to the auditors 01 £80,IXA)12022.. £30.(Th)I coverin8 Statutory audit fee5. Addition31 fees paid to the auditor5 for non-audit 5ervice5 tolaled £3.1K￿l(lO22.. £6,7501. In 2022 governance costs also included legal and professional cost5 of E32,355. li Trn#ees None of the trustees lor any persons conneued with them) receNed any remut)erabon or benefits from the charity durinÉ the vear. -32_ THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Employees The average monthty nurnbet of er￿p10￿e5 duringtheyear was= 2023 Number 2022 Number 30 16 31 13 Total 46 All staff are employed dSrectly bytheGallery wSth total gross salaries presented In the Gallery's finandèl statements. Those Individuals rhat carry out rhe actiwty of the subsidiary are shown above. Costs relatin8 to these individuals are rechar8ed by the Gallery to the subsidiary. Employment Costs 2023 2022 Wages and salarles So¢iol security c05ts Other pensien costs 1.301,480 119,176 70,133 1,108,005 104,858 67,158 1,490,789 1,280,021 The number of eMplo￿eS whose annual remuneration was £60.￿￿Or morewere.. 2023 Number 2022 Number 60,Wl. 70,C 80,WI. 90.1YJO Durlngthe year, contribLrtions of E3,87512Q2.. £8.3481 were paid it)to the penshjn schemeon behalf of the above employee. The key management personnel of the 8roup. Ihe Gallery, comprise the Trustees. the tmrectors and the senlor mana8ement team. The total employee remuneratSon of the key manaBement wrsonnel of the Galkry were £269.47112022 £364,286). NoTrustees received any rernuneration duringthe¥ear12022.. Énill. norclaimed aDye¥pen5e$12022.. £nill. THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Intsngible fixed assets Group and chaylty Softwarede¥eloFNhent Cost At l Aprll 2022 ènd 31 March 2023 269,248 AmortI￿lI￿n and Impalrnient At l April 2022 Amort15ation char8ed forthe year 237,831 10,882 At 31 Marth 2023 248,713 C•rryln8 •mount At 31 March 2023 20,535 At 31 March 2022 31.417 14 T•n8lble flxed I￿15 Group •nd (￿lIty Freehohl FIXt￿leS￿nd Cornp￿er eq￿1pMent Cost or ￿l￿albon A5 restated at l Aprll 2022 Additions Rev3lu3tlon i0.4￿.(￿J) 36,220 1736,2201 594.493 140,108 162,903 7,778 11,157,396 184,106 1736,2201 Al 31 March 2023 9,7(D,(4)J 734.601 170,681 10,605,282 Deprec￿lIon and Imp•lrme As restated at l April 2022 Depreciation tharged ifi theyear Revaluatlon 89.441 68.784 122.435 15,436 211,876 216,944 1132,7241 132,724 1132,7241 At 31 Marth 2023 158.225 137,871 296,096 rryln8 amount At 31 March 2023 9,7LX),(iXJ 576.376 32,810 10,309,186 At 31 March 2022 lo.4￿.{ 505.052 40.468 10.945.520 THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 14 Tangible fixed a55et5 Icontinuedl If the property had remained atdeemed cost. the net book valueat 31 March 2023 would be £9.129.40412022'. £9.219.0141. The freehold property was valued as at 31 March 2023 by an external valuer. Knight Frank LLP, a ￿gulated firm of Chartered V3luation Surveyors. The valuation wa5 undertaken on a fair value basis. The value of the freehold property is held in a desi8nated PToperty fvnd, theref￿ all change5 in value of the property are harged to this designated fund. The Arts Council has a second char8e ¢wer 1&18 Ramillie5 Street for £3.Sm e9ual to the bward made to the Gallery by Lottèry Fundin8. This le8è1 Cha￿ redu£es o¥tr a 25yÈèr period in fi¥ÈyÈèr inttèmènts and feduces to E2.8m from May 2018. 15 Subsldlarles Details of the charity's subsidlarSesat 31 March 2023 are asfollows.. N•me of underta*l Re8fjAered offitt N•iure ol buslness aass ol shires hÈld % Meld Dlrèct Indlrett The PhotO8raphers' Gallery (Enterpflsesl Llmlted England and Wales Cale. bookswe and printgallery Ordit)èry ioo.DJ The net assets of The PhotO8raphefs' Galler¥ IEnteiprlse51 LlmSted at ihe year end are É10,50612022.. £10,5C61. Durln8 the year The PhotO8raphers' Gallery IEnterprlses1 Limrted made an operating profit prior to distribution of glft aid of £282,834 12022.. £289.8321 16 Stocks Group 2023 2022 FlnSshed Boods and Eoods for resale 144,769 123,757 17 Debt￿$ Group Cha￿ty Z023 2022 2013 2022 asre5tated a5 reststed AmountsfalllnE due wlthln one)*ar: Trade debtor5 Amounts owed bysu￿￿13ry undertakinqs Other debtors Prepayments and accrued income 174.119 216,269 6,686 389,610 76,125 119,466 2,714 302,264 112,110 157.519 84,669 137,(WJ4 108,813 172.894 395.792 497.976 591.887 574.607 THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 LoonsaThd 9￿rdIa￿S 2013 2022 Bank overdr3fts Bank loan5 91,411 396,143 268,707 268,707 487,554 Payable within one year Payable after one year 43,326 225,381 124,681 362,873 The bank loan is secured byway of afir5t ¢h¥8ti)verthe Galleryat 16-18 R•mill*s Slreet. Lond¢n, WIF 7LW. The loan bears Interest •t • fixed rote of 2.7% over 8amk ol Englafid b•se rate. The loan Is reptyable in 180 wnsetutive monthly instslmentscommencin8 May 2017. 19 Crediiors: amounts lallln8due wbihln one yew Grwp 2023 Charlty 1023 2012 8ank loèns ènd overdrafts Other ta¥ation and soclal s￿￿rity Trade creditors Other creditors Accruals and deferred income 43,326 72,118 14Z,305 40,311 233,205 124,681 so,oio 353,402 1S,l72 214,123 43,326 29,611 62,979 1,902 129,131 124,681 31,200 199,844 15,172 92,910 531,265 757,388 266,949 463,807 Totsi deferred income at the year Ènd for group amounted to £124,63812022.. £106,526). This amount represents income received from donors and sponsc4swhich are swto conditions %¥thich pthent their use until a later date. io Crediiofs: amountslalllne due after morethan ￿e¥ear rxoup and tharlty 2023 2022 Bank loans 225,381 362,873 21 Retirement benefit sthemEs Defined torfiib￿l0rt sthemes The ch3rity operates a defined contribution pension scheme for all qualrfw"n8 ern￿0vee5. The as*ts of the scheme 3re held separately from those of the charity in an independeThttyadmini5teied fijnd. The chargeto profrt or1055 in respprtof defined contribubon ￿herneS wa5 £70.13312022-. £67.1581. THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Restrlrted fvnds The income funds of the chartty include Testricted lund5 cornpri5in8 the fDllowng unexppnded balances of donation5 and 8rant5 held on tru5tfor specific purw)ses'. Group and (harlty Mo%*mtnt Im lunds Movtmert In funds Incoming Resources 8alJnce at resources eyended 31 Marth 2023 1￿cO￿l lA￿￿2Z Exhibitions and educational projects 266,988 1169,1821 197.8%) 247,430 1247,4301 -37_ OOM r4 r4 T5 CJ r4 Ly r4 In THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Related partytransactiry Durin8 the year The PhotO8raphers' GaI￿ry IEntefPTi5e51 limited ITPGEI paid a managemerit charge to The PhotO8rapher5' Gallery Limited ITPGI of f170k 12022.. f165kl. In addition, TPGE paid it'5 distributable profit5 to TPG by way of a 8ift aid pèyrnent which ¥vas recogni5ed as è don*ion in TPG'S ffinantièl staternents for £282,83412022.. £289,832). Wa8es and salaries are paid by TPG with èmounts of É394,$0812022.. £340.9581 being charged to TPGE to co¥Èr those individuèls that continuè the activity of TPGE during the year. These £h3rges afe recognised as Income in TPG financlal statements and a cost In TPGE'S flnanclal statements. At the year end amounts owed to TPG by TPGE amwt)ted 10 £389.61012022'. £302.2641. 26 Cash ienemed from operatlons 2021 1022 (Delcltllsurpus for theyear 1113,5951 77,632 Adlustments for.. Investment inteme re¢o8nised in st•temehtolfin•h¢ial •rtivities Ferelgn exchange differences IGèinl/loss on disposèl of t3n8iblÈ fixed assets Depreciation and ifflpairrnent of tsnwble fixed o5sets 1,536 245,517 227,826 Movernent5 in workin8copitsI.. Ilncreaselldecrease In stocks De¢rea5e in debtor5 IDecreasel in creditor5 121,0121 102,184 1144,7681 12,120 69,171 IIL8,3761 C•sh generated from operatlons 50,635 275,332 27 A￿ly51$ 01 th4n8es In net fvrbd5 Cash t￿¥ At31 M•Kh 2023 Cash at bank and in hand Bank overdrèfts 1.702.915 191,4111 1352,3181 91.411 1,350,587 1.611.494 1260,9071 1,350,587 Loan5kllim8 due within one year Loans falling due after More than one >*ar 133,2701 1362.8731 110,0561 137,492 143,3261 1225,3811 1.215.351 1133.4711 1,081,880 -40- THE PHOTOGRAPHERS, GALLERY LIMITED NOTES TO THE FINANCIAL ￿ATEmENTs (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Prlor perlod adjustment Change5 to the balance Sheet At 31 Marth 2011 As pre¥lou51y Adlusiment reported As restated Flxed assets Tangible 355et5 11,645,520 I70D,1￿01 10,945,520 Income funds.. Oe5ignated lund5 ii,i(M),( 170D,CKIDI 10,400,OCKJ An adjustment has been made to the valuation of land and buildinBS after it has been agreed the valuation In the prior year wa5 based on incorrectiudgements. This h35 resulted in an adiu5ted decrease in value at l April 2021 of £521k and an adjusted decrease in v31ue at l Aprll 2022 of E7LI*. In aLWition. depreciation has therefore reduced in the ye3r ended 31 March 2022 by £33,178. Ch•nBes to the st•tefflent of th￿n(lI1 •dl¥bll•s Perlod ended 31 M•th 2012 As prt¥lou51y Adlustmemt reptsrted As rèststed Rai5in8funds 1,302,017 1,184,164 340,958 1374,1361 1,642,975 1,810,028 Revalualon of flxed assets 378,475 166,763 Net movement in funds 422,929 1178,5341 Z44,395 In addition, prier year adjustments ha¥e been made in the chaiitsble compan(s o%w) finantl81 statÈmÈnts which have no effect on the consolidated finèn£ial 5tatemÈnts. Firstly, any profrts made by a subsidiary, The Photo8rarthers' Gallery (Entsrprisesl knmitsd, are distributed to the charity under a 81ft aid arran8ement. A deed of covenant estsblishes ihe amount to be transferred as a liability of the subsidièry at each year end. In prior years the existence of this deed of covenani was t)ot kno%vn and each Year's distribution wès reflected in the next accounting period. An adjustment has been mède to reflect each yeèr's distribution in the year in vlhich the proflts were made. The effect of Lhis has been io increase unresEricted reserves in the £harity itself at l Aw412021 by £185,957 and £289.832 at l April ZO22. Secondly it has now been established that a bw* ￿COUnt prwously reAerted ir* this subsidiary's finanoal statements is actually owned by the charity. The balance on the ￿)Unt at 31 Marth 2022 was £142,679, this amount has now been transferred through the intercompany account. The presentation of income and expenditure amountshas now been TeconsideTed for the yearended 31 March 2022. In doing SO 3mounts received from the Arts Council England which were previously shown within charitable activities have now been recla55ified to donations & legacie5 for a total of £lm. In addition. wage5 and salaries relating to trading artivities have been reanalysed frorn charitable actwitie5 to rai5ingfund5.' the amount beingE340,958. 41