## SPACE ANNUAL REPORT 2021 |**Trustees report**|03| |---|---| |The impact of SPACE in 2020-21|05| |Supporting artists|07| |Equality and diversity commitment|09| |Building creative communities|11| |SPACE Ilford|11| |Highlights from SPACE tenants|15| |Learning and participation|17| |Artist professional development|19| |Graduate studio bursaries|21| |Art + technology
Fundraising
Future plans
Financial review
**Financial statements**
Financial activities (year ending March 2021)
Funders and supporters|23
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27
29
33
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70| 01 rTr J TV ## **Trustees report** The trustees present their annual report and the audited financial statements for the year ended 31 March 2021. This has been an unprecedented year due to the Covid-19 pandemic, which forced us into lockdown in March 2020. Despite uncertainty across the year, we kept to our mission and goals throughout and focussed on our charitable goals. **SPACE exists to enable artists to make innovative and ambitious work. We have identified four routes to achieve this…** - Provide affordable studio spaces - Support a network of artists - Advocate for artists by being a good long-term neighbour - Be a generous voice for artists - **Vision** — to support resilience and sustainability of artists and to provide a supportive network in a changing urban environment. - • **Mission** — to provide space, resources and - **Mission** — to provide space, resources and platforms for professional visual artists to develop their creative practice, and to enable audiences adjacent to studio sites to benefit from encounters with professional artists. 03 +:>"" 4r• ## **The impact of SPACE in 2020-21** In response to the pandemic, the trustees increased the number of meetings during the year and established six specialist sub-committees to increase the effectiveness of their support, each chaired by a relevant trustee and convened by a member of SPACE’s senior management team. We were obliged to close our public spaces at SPACE Ilford and furlough a number of related staff, whilst the rest of our operations continued throughout the year subject to regular review and risk assessment. ## **Key achievements for the year:** - 19 out of 21 of our studio buildings remained open and accessible to artists throughout the pandemic, following Covid safety guidelines. 2 buildings which are shared with public facing organisations were temporarily closed by our landlords but were fully open within 6 months. - provided over 880 artists with creative workspace at 21 locations comprising over 310,000 sq ft - despite our public spaces at Ilford being closed during the year, we maintained our community engagement activities with remote and online programmes - specialist programmes supported a further 900+ artists to develop their potential and resilience, with our offer moving swiftly and successfully online - 99% occupancy of studios shows they were valued by artists more than ever - secured ACE Covid support funds which enabled us to offer hardship support to studio holders, as well as bursaries for up and coming artists 05 ## **Supporting artists** SPACE supports artists and creative small businesses by providing affordable studios, professional development and advocacy. At the start of the pandemic, many of our creative tenants faced an emergency, with commissions and exhibitions cancelled and freelance income curtailed. Home schooling, shielding and an inability to use public transport prevented some tenants from travelling to their studios. For others, the studio became a sanctuary where they could pursue their practice in isolation. We worked rapidly to quell anxiety, quickly putting into place an emergency rent relief fund and cancelling the planned annual rent uplift. We signposted tenants to useful resources, grants and further advice. We set up SPACE Advice Bureau to run online workshops to help artists through the challenging circumstances. We communicated regularly with tenants and conducted surveys to fully understand how they were affected. We applied successfully to the Arts Council Emergency Response Fund, GLA Creative Workspace Resilience Fund and Arts Council England Cultural Recovery Fund, which were vital in providing rent relief to studio tenants in financial hardship and replenishing reserves that had been committed to see us through the immediate emergency. We are enormously grateful for all their support. An additional 37 tenants who attended SPACE Advice Bureau sessions were awarded a grant of £250. An important priority with our Culture Recovery Fund grant was our commitment to equality and access in recovery, which we achieved through our new SPACE Artist Awards. Over 500 artists applied for these awards for artists within 10 years of higher education who face inequality as a result of their ethnicity, socio-economic background or disability, experiencing extreme financial hardship. Our selection panel, including trustee Dr Omar Kholeif and Deborah Smith, Director of Arts Council Collection, awarded 20 artists each £5,000 plus mentoring support, 07 three received a rent free studio for 12 months and four became Programme Associates for the year. We extended the programme further by offering short residencies at The Studio in Ilford to awardees. _To have funding accessible to produce [radical work] is really empowering for a young person. There should be more things like this, especially if we want to sustain the next generation of creatives, the individual voices or people on the fringes of the dominant art scene._ Gaby Sahhar _The SPACE award has given me infinite possibilities. It’s expanded my mind and the way I think about my work. I’m a frugal artist and I work sparingly with my materials, but this just allowed me to be really adventurous. I’ve bought new materials and I feel that’s impacted my making process._ Tobi Alexandra Falade Arts Council England Culture Recovery Funds also helped us expand our online resources and programme for reopening SPACE Ilford. SPACE Artist Award winner Gaby Sahhar SPACE ANNUAL REPORT 2021 08 ## EQUALITY AND DIVERSITY COMMITMENT As an organisation, SPACE works hard to ensure that equality, diversity and inclusion is embedded in everything we do – from the staff we employ, to the artists we commission, the contractors we work with, and the business development support we provide to the wider artist community. Recognising that the art world can often be an exclusive territory for the privileged few, we used the money awarded to us by Arts Council England Culture Recovery Fund to make 20 × £5,000 Artist Awards — a meaningful sum of money that we felt could help support artists who face inequality due to their race, gender, sexual orientation, disability or socioeconomic background. Since 1968, SPACE has worked with communities with low art provision, giving a voice and a platform to local people. The recent relocation of our gallery and event space to Ilford continues this pioneering spirit and we are working hard to build community engagement through partnerships with local schools, community and faith groups, young people and older groups. 09 SUPPORTING ARTISTS ## **Building creative communities** New studios at SPACE Ilford bring creative workspace to an outer London borough with little existing provision; over 60% of tenants are Redbridge residents. SPACE’s public programmes champion artist-led initiatives that support neighbours to our studio buildings, promoting artists and creativity at the heart of communities. ## SPACE ILFORD SPACE Ilford, supported by the Mayor of London’s regeneration plan for Ilford town centre, had to close its public spaces for the year, forcing an early closure on our first commissioned exhibition in the new gallery: _Regrets, I’ve Had a Few_ , created by Lindsey Mendick in collaboration with Redbridge over 65s. Sahra Hersi’s billboard commission at the new entrance, illustrating her childhood home in Ilford, remained in place throughout the year, giving visibility to an artist based in Redbridge. **During the height of the pandemic, SPACE provided remote creative learning workshops for members of the local community** April – July 2020 2 × 5 week artist-led projects that provided opportunities for Ilford-based over-65s during the first lockdown to work with artists to make art projects, learn new skills and socialise remotely from their homes. 11 ## **Project 1** ## _Making in Isolation, Together:_ ## _Confinement, Solidarity and Survival_ Led by artist Nicole Morris, the group explored batik and textile making. The resulting batiks were displayed at The Exchange shopping centre in Ilford from October — December 2020 and are now on permanent display at Age UK HQ in Redbridge. The project was captured in an online booklet on SPACE’s website. ## **Project 2** ## _Making in Isolation, Together: Recollections on Cloth_ Led by artist Lara Hailey, the group learnt embroidery stitches and the processes of appliqué. Lara then added the pieces to a collective quilt, which was put on display in The Exchange shopping centre in Ilford from October — December 2020. ## **MyZine** May – June 2020 SPACE Ilford bursary artist Tamu Nkiwane led a remote creative learning project for a group of young people in Redbridge. The result is a 180 page publication containing drawings, paintings, poems and stories from 11 – 18 year olds who are members of the Redbridge Youth Council, the Youth Service, as well as Child Friendly Redbridge Ambassadors. View an online version of _MyZine_ here. SPACE ANNUAL REPORT 2021 12 r￿4 ## HIGHLIGHTS FROM SPACE TENANTS ## **Alex Dordoy** _Ruin is Rune_ , Grimm Gallery, New York ## **Caroline Walker** _Janet,_ Ingleby Gallery, London; _Everyday Heroes_ , South Bank, London ## **Chila Kumari Singh Burman** Commission on the facade of Tate Britain; _Midnight’s Family: 70 Years of Indian Artists in Britain_ , online exhibition at Ben Uri Gallery ## **Emma Cousin** Solo exhibition at Goldsmiths Centre for Contemporary Art ## **Hannah Brown** Selected for the John Moores Painting Prize 2020 exhibition ## **Heather Phillipson** Tate Britain Commission; unveiled _The End,_ Fourth Plinth commission for Trafalgar Square ## **Hugh Mendes** _A Portrait of Legacy_ , online at Townsend Gallery, New York ## **Lothar Götz** _In Private,_ Petra Rinck Galerie, Düsseldorf, Germany ## **Olivia Bax** Won the Mark Tanner Sculpture Award (MTSA). _Off Grid_ , MTSA touring show ## **Walid Siti** _Right to Climb_ public art installation at 31 Oval Road, Camden as part of The London Festival of Architecture; _Everywhere is Somewhere_ , Duhok Gallery, Iraq BUILDING CREATIVE COMMUNITIES 15 ## LEARNING & PARTICIPATION SPACE creative learning projects engage schools, young people and communities to improve the lives of people local to our studio sites. In Ilford, SPACE Artist Award winner Alaa Alsaraji worked with Redbridge Youth Services to co-create a Nature Guide for the local area. You can download a copy **here** . We participated in New Creatives, a partnership with the ICA, BBC Arts and Arts Council England, providing mentoring and professional industry support for young emerging talent to create interactive and film works. ## **The Creative Space Arlington** SPACE provides artist-led creative activities for homeless people at Arlington and Camden Pathways (St. Mungo’s and Women at the Well). During the pandemic, these sessions moved online. Led by artists Brian Baderman, Federico Gallo and Crestina Velia Forcina, the group were able to continue creating artwork via weekly online meet-ups, sharing their progress and getting peer feedback via a dedicated WhatsApp group. As a result of an organisational restructure in the summer of 2020, the following colleagues left SPACE, Persilia Caton, Fiona Fieber and Jane Leighton. We would like to thank them for their contribution to SPACE and to programming. In February 2021 a new Head of Community Engagement Programmes was appointed. BUILDING CREATIVE COMMUNITIES 17 ## **Artist professional development** SPACE supports artists and creative businesses to run resilient and sustainable practices through funded residencies, studio bursaries and free professional development programmes. _It is a brilliant programme – well thought out, inclusive and valuable. Thank you._ South East Creatives workshop participant ## **SPACE Advice Bureau** Launched during the pandemic in 2020 in response to requests and suggestions from our tenants, SPACE Advice Bureau offers free advice and guidance to all members of the SPACE community. The programme includes one-to-one mentoring, webinars, coaching and peer-to-peer sessions to support artists’ practice. ## **South East Creatives** As the main provider for South East Creatives, SPACE supported over 300 artists and creatives across East Sussex, Essex and Kent, offering workshops across various cultural venues including Creative Folkestone, De La Warr Pavilion, Resort Studios, Towner Eastbourne. The programme was seamlessly moved online to offer webinars, talks and group sessions. Mentoring was also available to businesses who attended a minimum of 12hrs of workshops both on and offline. This tailored mentoring matched each business with an industry expert to address the most pressing topics of their business. _I have a clearer and more confident vision of how to promote my business and what I need to concentrate on. I’ve begun production of two new bodies of work. One is more experimental, the other a portrait-based exploration of my local community. It’s early days but I’m about as optimistic as I’ve ever been. Thank you!_ South East Creatives workshop participant 19 ## **London Creative Network** SPACE leads London Creative Network, an important London-wide creative professional development partnership programme now in its fourth year. 840 artists have been supported so far across the network. ## **Impact on artists in the programme:** - Average earnings uplift of 29% - 56% felt the programme helped them plan successfully for the future - 41% found the programme had a very positive impact on promoting their work - 83% felt LCN enabled them to find collaborators - LCN facilitated a supportive peer network giving artists the opportunity to experiment with new techniques and develop new work London Creative Network participant, artist Yukako Shibata SPACE ANNUAL REPORT 2021 20 ## GRADUATE STUDIO BURSARIES Graduate studio bursaries provide emerging artists with a year’s free studio space and mentoring support. Bursaries were awarded to talented recent graduates, relieving artists’ financial pressure to progress their studio practice. SPACE Patrons and Friends graduate bursary artists were selected in partnership with widening participation tutors at Goldsmiths and Chelsea to ensure our programme benefits the most talented and deserving artists. Studio bursary partners include Alumno, Royal College of Art, Valerie Beston Artist Trust, Matts Gallery/David Troostwyk Award and New Contemporaries. Tamu Nkiwane was the first recipient of the SPACE Ilford Patrons and Friends Studio Bursary 2019 – 2020. Tamu had access to a year’s free studio at our new venue in Ilford. In addition, Tamu was supported through mentoring and other professional development opportunities throughout the year. _I’m delighted to get a studio with SPACE as it allows me to work without the fear of studio fees. I’m excited to do more socially engaged work within the North East and East London communities and this studio gives me the platform to work towards that project._ Tamu Nkiwane During the first lockdown in March 2020, Tamu led a remote project for young people in Redbridge to express their feelings and thoughts in a collaborative zine. Former bursary artist Djofray Makumbu has been commissioned to produce a SPACE Ilford Billboard in 2022. He was also awarded the Video Archive Commission by Goldsmiths Exhibitions Hub & London Community and Loewe Foundation/Studio Voltaire Award 2021. 21 ARTIST PROFESSIONAL DEVELOPMENT ## ART+TECHNOLOGY SPACE Art + Technology supports artists whose work engages with emergent technologies in a unique residency programme providing a test ground and critical exchange platform. Artists received free studio space, tailored mentoring and 1-2-1 support. In the final rounds of the programme: - 8 artists looked at how AI is shaping what it means to be human in the digital age - 8 artists looked at the cost of our gamified experiences and how play can be used to explore our relationship with nature and ourselves - Our international residency partnership continued with the Finnish Cultural Institute and Saastamoinen Foundation - Workshops enabled residency artists to share their research with wider audiences - _Deep Play_ , the final exhibition showcase, was presented online alongside live streamed talks and events ARTIST PROFESSIONAL DEVELOPMENT 23 ## **Fundraising** Fundraising, development and partnership working make a vital contribution to our income and impact. Our dedicated Patrons and Friends support studio bursaries for recent graduates, and we are very grateful for their generosity. By recruiting more Patrons and Friends we increase the number of studio bursaries offered, which make an enormous difference to talented recent graduates who can least afford a studio. We have complied throughout the year with industry fundraising standards. Fundraising activities were monitored at monthly senior management meetings and quarterly trustee meetings. No fundraising complaints have been received. SPACE operates a safeguarding policy, which is reviewed and updated annually with staff receiving appropriate training. This policy forms the basis by which we protect vulnerable people and others from our fundraising activities. 25 ## **Future plans** Building on a review of our vision and goals we have continued to refocus and outline how SPACE can best deliver its core mission of supporting artists and being good neighbours, particularly in the light of Covid-19 and the innovative thinking required to continue to flourish. We will continue to participate in Change Creation as we refocus. Despite the challenges of building audiences for our new programme during the exceptional Covid-19 year, SPACE’s partnership with London Borough of Redbridge at SPACE Ilford and our work with the Redbridge Cultural Consortium and a wide range of community organisations are beginning to have a positive impact on diversifying our audiences. A key priority is to build funds for new property acquisition for sustainable affordable studios and potential dilapidations liabilities at lease ends. We will continue our rolling maintenance programme on our studio sites and upgrade wherever resources permit to reduce our environmental impact. A new partnership, Who Cares?, will enable SPACE to exchange ideas and skills with our European partners, through the Creative Europe programme. With support from The European Regional Development Fund we will continue to lead delivery of the London Creative Network, however with Brexit the programme delivery is due to end in 2021/22. 27 ## **Income/expenditure snapshot** **----- Start of picture text -----**
Other income
Exceptional income
Programmes core grants
Exceptional Covid-19 grants
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Income 2020 2021
Admin & operational costs
Fundraising
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Expenditure 2020 2021
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Other income Exceptional income Programmes core grants Exceptional Covid-19 grants Grants — project specific Rents receivable SPACE ANNUAL REPORT 2021 28 ## **Financial review** Income from studios represented **51%** of SPACE’s revenue, with occupancy in the studios continuing at over **95%** . Grants represented **26%** of income while exceptional income and other income represented **23%** . This was an exceptional funding year due to Covid emergency grants, a large proportion of which went directly to our artist tenants in the form of rent relief. In addition to grants received which were restricted to specific projects, Arts Council England continued to recognise the work of SPACE by providing National Portfolio core funding totalling **£225,292** towards our programme. ## **Income/expenditure snapshot** **----- Start of picture text -----**
Income 2021 (£) 2020 (£) +/-
Rents receivable 3,844,172 4,030,386 -5%
Grants —Project specific 982,199 521,685 88%
Exceptional Covid-19 grants 791,315 - n/a
Programmes core grants 225,292 251,221 -10%
Exceptional income 1,658,404 - n/a
Other income 105,862 389,905 -73%
Total income 7,607,244 5,202,197 -
Expenditure 2021 (£) 2020 (£) +/-
Studios 4,007,059 3,919,577 2%
Programmes 1,265,970 756,757 67%
Fundraising 39,275 75,930 -48%
Admin & operational costs 235,746 337,240 -30%
Total expenditure 5,548,050 5,089,504 -
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29 The charity achieved a surplus of **£2,059,194** for the year. This is an exceptional result, made possible by the receipt of large Covid-19 related grants and the receipt of **£1.6 million** for a settlement relating to a property transaction on one of our freeholds. This exceptional income has been ring fenced for future acquisition or redevelopment of our existing freehold. The positive result enables us to continue the essential programme of maintenance and upgrades on our current portfolio and build a fund for future developments which are recognised in our three-year plan as essential to our sustainability. ## **Reserves Policy** SPACE generated a total unrestricted funds of **£7,394,494** as at 31 March 2021. Within the total unrestricted funds, **£2,796,365** has been set aside as funds tied up in the buildings while a further **£1,650,000** has been designated, to be utilised in potential new freehold acquisition or long leasehold developments requiring significant investment. The unrestricted funds are net of significant provisions made in the account to cover potential essential upgrades and repair works needed to meet obligations under Health and Safety legislation; and dilapidations responsibilities under current property leases. These address our minimum obligations as a landlord, whilst ensuring that we keep rents to artists as low as possible. To ensure resilience, the Trustees have set a minimum free reserve target of three months’ worth of total operating costs, being the appropriate level necessary for the Charity to continue its normal activities in the event of a significant drop in income. On the basis of past and current costs data, the required minimum target range is **£1,100,000** to **£1,300,000** , with actual free reserve position being **£1,869,034** at 31 March 2021. SPACE ANNUAL REPORT 2021 30 The trustees consider that SPACE is a going concern, based on having a robust business plan in place, excellent management ensuring the studios occupancy levels remain high, and that debtors and creditors are effectively managed. The cash flow, monthly management accounts, up to date and review of studio occupancy levels are monitored on a monthly basis by senior management and trustees and swift action taken if there are major concerns. We are satisfied that we have sufficient reserves in place to withstand any challenges in the year ahead despite Covid-19 uncertainty. ## **Investment Policy** The Charity’s investments are managed in accordance with the Trust’s governing document, having regard to the Trustee Act 2000. Funds not immediately required for the activities of the Charity were held in low risk cash deposits throughout the year. 31 FINANCIAL REVIEW BREffEB; .. **Art Services Grants Limited (SPACE) Financial statements for the year ended 31 March 2021** The financial statements comply with current statutory requirements, the memorandum and articles of association and Accounting and Reporting by Charities: Statement of Recommended Practice Accounting applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Ireland (the FRS 102 Charities SORP published on July 2014). 33 ## 1. REFERENCE AND ADMINISTRATIVE DETAILS **COMPANY No.** #1157240 **REGISTERED CHARITY No.** #267021 ## **BOARD OF TRUSTEES** Phil Clark Treasurer Caroline Cole Chair Christopher Currell Mary Evans Dr Omar Kholeif Imogen Willetts (April 2020 – January 2021) Lise Molgaard Frandsen (Appointed February 2020) Paulette Mizrahi (Appointed February 2020) **SECRETARY** Anna Harding **CHIEF EXECUTIVE** Anna Harding **REGISTERED OFFICE** The Triangle **& BUSINESS ADDRESS** 129-131 Mare Street London E8 3RH **INDEPENDENT AUDITORS** Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG **SOLICITORS** Clyde & Co Solicitors The St Botolph Building 138 Houndsditch London EC3A 7AR 34 SPACE ANNUAL REPORT 2021 **BANKERS** Natwest Bank Plc 140 Victoria Street London SW1E 5LF COIF Charities Deposit Fund St Alphage House 2 Fore Street London EC2Y 5AQ Triodos Bank Deanery Road Bristol BS1 5AS ## 2. STRUCTURE, GOVERNANCE AND MANAGEMENT Art Services Grants Ltd (SPACE) was set up in 1968. In 1974 it was formally registered as a Charity and incorporated as a company limited by guarantee, which does not have a share capital. The company is established under a memorandum of association and is governed by its articles of association. The Members of the company are: - trustees - any studio licence holder (excluding any sub-licensee) - any salaried employee who has successfully completed their probation period, and any person who has been employed by the charity on a contract of at least three months. The Trustees are the directors of the company. They do not have any financial interest in the company nor are there any significant contracts in which any Trustee has a material interest. FINANCIAL STATEMENTS 35 ## **Organisational Structure and Board of Trustees** The charity is managed by the Board of Trustees who may serve up to six years retiring for re-election on a triennial basis. Trustees may co-opt further advisors and also Patrons. The Trustees are responsible for the strategic direction and policy of the charity and meet quarterly. The Trustees appoint the Chief Executive to whom the day to day running of the Charity is devolved. The Board has had a full complement of Trustees throughout the year. New trustees are appointed based on a regular skills audit of key competencies required by the trustee board. New Trustees meet with the Chair, Chief Executive and other key staff as part of an induction process, and are provided with a full induction pack covering constitutional, policy and financial background, and Trustee responsibilities. On-going training is provided to Trustees throughout the year. No Trustee expenses have been incurred. During the year, the Property Working Group and Development Advisors Group supported the Trustee board. Both advisory groups include co-opted experts and report to the Trustee board. The Trustees are grateful for generous support from its Property Working Group members: Claire Bennie, Chris Currell (Trustee), Alan Leibowitz at Dorrington Plc (Chair), Selina Mason, Rory Brooke at Savills and would like to thank Toni Lodeiro of Dalton Warner Davis, our property advisors who acted on our behalf throughout the year. SPACE established an Equality and Diversity Advisory Group to oversee diversity across the organisation. We developed a diversity strategy and action plan with a staff team headed by the appointed trustee to guide the change process. We had a particular emphasis on engaging women and BAME artists, as well as focusing on dyslexia support. Additional expert committees that advise the Board of Trustees include the Finance and Remuneration committee responsible for approving salaries and the annual financial audit. SPACE ANNUAL REPORT 2021 36 ## **Remuneration policy** When setting remuneration for its staff SPACE takes account of market rates and other relevant data relating to charities of a similar size, operational activity and work place location. The remuneration of the Senior Management team is the responsibility of the Trustees and is set in the light of the skills and competencies required for particular roles and within the constraints of affordability. ## **Risk Management** Risk management takes place at all levels. Operational risks are passed up for review and approval; organisation level risks are communicated down. Risk is addressed in the appraisal stages of project development. Each staff member and SPACE Trustee is responsible for managing risks. SPACE acknowledges the need to tolerate a level of risk, with risks clearly identified in financial and artistic programme planning, with practices in place to manage them as below. Our core mission of providing for artists’ production needs drives our risk profile in a cost-effective and artist-focused way. Additional programmes are provided as and when funds are available and when they enhance the organisation’s mission strategically. ## **Risk Management Practices** - SPACE has a business continuity plan to cover all potential operational considerations. - annual review of priorities ensures we meet objectives effectively. - lease agreements are negotiated to ensure that our obligations are not onerous. - artist tenancy agreements allow us to give one month’s notice. FINANCIAL STATEMENTS 37 **Risk Management Practices (contd.)** - Income generation targets are reviewed monthly and appropriate action taken. - Risk is an agenda item at all Trustee meetings - SPACE evaluates and responds to risk at regular meetings including: - Quarterly trustee meetings - Monthly senior management team meetings - Monthly studios management meetings - Monthly programmes meetings - Monthly finance & administration meetings - Monthly full staff meetings - Quarterly property working group meetings ## **Keys risks identified** - Reduced operating margins within the existing property portfolio due to some substantial rent increases at rent reviews and lease renewals - Potential loss of income with fundraising uncertainty, pressure on funding bodies, limited affordable long-term leaseholds and freeholds available to add to current portfolio - Fire and security risks within all our properties SPACE ANNUAL REPORT 2021 38 - Increase in studio costs threatening affordability of studios - Safeguarding becoming an increased risk for all charities - New Redbridge premises creating split office sites - Impact of Covid-19 on tenants’ ability to meet their rent obligation, potentially leading to voids, increased arrears and bad debts - Impact of Covid-19 on the ability to effectively manage new lettings and deliver programme - General economic uncertainty resulting from the pandemic and its long term effect on organisational resilience - Threat to programmes fundraising resulting from the pandemic as funders change their funding priorities. ## **Statement of trustees responsibilities** The trustees (who are also directors of Art Services Grants Limited for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires trustees to prepare financial statements for each financial year, which give a true and fair view of the state of the affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustees are required to: FINANCIAL STATEMENTS 39 - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: - there is no relevant audit information of which the charity’s auditor is unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions. SPACE ANNUAL REPORT 2021 40 ## **Small company rules** These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. ## **Auditors** Haysmacintyre LLP were the appointed auditors during the year and are deemed to be reappointed under section 487(2) of the Companies Act 2006. On behalf of the Board **Chair:** Caroline Cole **Date:** 08 December 2021 41 FINANCIAL STATEMENTS 42 SPACE ANNUAL REPORT 2021 ## Independent auditor’s report to the members of Art Services Grants Limited ## **Opinion** We have audited the consolidated financial statements of Art Services Grants Limited for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 March 2021 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. FINANCIAL STATEMENTS 43 We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially SPACE ANNUAL REPORT 2021 44 misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees’ Report (which includes the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors’ report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements. **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the directors’ report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: FINANCIAL STATEMENTS 45 - adequate accounting records have not been kept by the charitable company; or - the charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemption from the requirement to prepare a strategic report. **Responsibilities of trustees for the financial statements** As explained more fully in the trustees’ responsibilities statement set out on page 39, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. SPACE ANNUAL REPORT 2021 46 ## **Auditor’s responsibilities for the audit** ## **of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to health and safety requirements, GDPR, employment law, company and charity law and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and Companies Act 2006 and consider other factors such as payroll tax. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the improper 47 FINANCIAL STATEMENTS recognition of revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included: - Inspecting correspondence with regulators and tax authorities; - Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Evaluating management’s controls designed to prevent and detect irregularities; - Identifying and testing journals, in particular journal entries posted at the year end; and - Challenging assumptions and judgements made by management in their critical accounting estimates. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report. SPACE ANNUAL REPORT 2021 48 ## **Use of our report** This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed. **Richard Weaver** (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor 10 Queen Street Place, London, EC4R 1AG **Date:** 08 December 2021 49 FINANCIAL STATEMENTS so SPACE ANNUAL REPORT 2021 ## Statement of financial activities for the year ended 31 March 2021 **----- Start of picture text -----**
Unrestricted Restricted Restricted
revenue funds revenue funds capital funds Total 2021 Total 2020
(£) (£) (£) (£) (£)
Income from
Donations [ 2] 6,800 - - 6,800 259,696
Investments [ 3] 6,516 - - 6,516 11,794
Charitable activities [ 4] 4,860,779 982,199 - 5,842,978 4,803,293
Other trading activities [5] 1,682,649 68,301 - 1,750,950 127,414
Total income 6,556,744 1,050,500 - 7,607,244 5,202,197
Expenditure on
Hires and Fundraising [ 6] 41,717 - - 41,717 75,930
Charitable activities [6] 4,205,526 1,152,145 148,662 5,506,333 5,013,574
Total expenditure 4,247,243 1,152,145 148,662 5,548,050 5,089,504
Net income/(expenditure) 2,309,501 (101,645) (148,662) 2,059,194 112,693
Transfer between funds [15 ] (90,497) 90,497 - - -
Net movement in funds 2,219,004 (11,148) (148,662) 2,059,194 112,693
Fund balances at 5,175,490 5,520 1,286,233 6,467,243 6,354,550
01 April 2020
Fund balances at 7,394,494 (5,628) 1,137,571 8,526,437 6,467,243
31 March 2021 [ 15]
**----- End of picture text -----**
There were no other recognised gains or losses during the two financial years. Within total funds, the amount tied up in artists studios and other operational buildings, after deducting loan financing, is £3,853,923 within general funds and £1,137,571 within restricted funds. The notes on pages 54 — 73 form part of these financial statements. 51 FINANCIAL ACTIVITIES ## Balance sheet as at 31 March 2021 **----- Start of picture text -----**
2021 2021 2020 2020
(£) (£) (£) (£)
Fixed Assets
Tangible assets [10] 8,187,773 8,518,209
Current Assets
Debtors [11] 1,015,588 956,318
Cash on short term deposit at bank and in hand 5,371,605 2,155,385
Subtotal 6,387,193 3,111,703
Creditors: amounts falling due within one year [12] (2,985,098) (2,092,528)
Net Current Assets 3,402,095 1,019,175
Total Assets Less Current Liabilities 11,589,868 9,537,383
Creditors: amounts falling due (3,063,431) (3,070,140)
after more than one year [13]
Total Net Assets 8,526,437 6,467,243
Funds
Unrestricted Funds [15] 6,336,936 4,090,431
Revaluation Reserve [15] 1,057,558 1,085,059
Restricted Funds [15] 1,131,943 1,291,753
Total Funds 8,526,437 6,467,243
**----- End of picture text -----**
The notes on pages 54 — 73 form part of these financial statements. The accounts are prepared in accordance with the special provisions of part 15 of Companies Act 2006 relating to small entities. Approved by the Board of Directors and authorised for issue 08 December 2021. Chair: Caroline Cole Date: 08 December 2021, Company #1157240 SPACE ANNUAL REPORT 2021 52 ## Statement of cash flows for year ended 31 March 2021 **----- Start of picture text -----**
2021 2020
(£) (£)
Reconciliation of net income/(expenditure)
to net cash flow from operating activities
Net income/ (expenditure) (as per the statement of financial 2,059,193 112,693
activities) [SOFA]
Adjustments for:
Depreciation charges [ 10] 537,196 498,579
Investment income (6,516) (11,794)
Interest cost 92,256 103,495
(Increase)/decrease in debtors [ 11] (59,268) (94,102)
Increase/(decrease) in creditors [ 12] 885,859 416,650
Net cash provided by/(used in) operating activities 3,508,720 1,025,521
Cash flows from investing activites
Interest income 6,516 11,794
Purchase of property, plant and equipment [ 10] (206,760) (95,444)
Net cash provided by/(used in) investing activities (200,244) (83,650)
Cash flows from financing activites
Repayments of borrowing - (201,623)
Cash inflow from new borrowing - -
Interest cost (92,256) (103,495)
Net cash provided by/(used in) investing activities (92,256) (305,118)
Change in cash and cash equivalents in the reporting period 3,216,220 636,753
Cash and cash equivalents at the beginning of the reporting period 2,155,385 1,518,632
Cash and cash equvalents at the end of the reporting period 5,371,605 2,155,385
Analysis of cash and cash equivalents
Cash in hand 5,371,605 2,155,385
Total cash and cash equivalents 5,371,605 2,155,385
**----- End of picture text -----**
FINANCIAL ACTIVITIES 53 ## Notes to the financial statements for year ended 31 March 2020 ## **1. Accounting policies** **a) Accounting convention, basis of preparation:** the financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound. **b) Going concern basis:** the trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular, the trustees have carefully reviewed the charity's strategy and its accompanying budgets and cash flow projections and are confident of its ability to generate future surpluses and sufficient cash flow for operational sustainability. The trustees have therefore concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements. SPACE ANNUAL REPORT 2021 54 In terms of future cashflow and operating capacity, since the year end, Covid-19 has impacted on the artists' livelihoods. SPACE has dealt with this uncertainty by setting up a rent relief fund, providing emergency support webinars and mentoring and successfully applying to Arts Council England and Greater London Authority for emergency funds to ensure resilience of SPACE and artist tenants. The public gallery and event spaces were temporarily closed with programmes moving online where possible and the charity made use of the furlough scheme to reduce costs. In addition, the charity received a settlement relating to a property transaction. All these developments have reinforced the viability of the charity as a going concern. **c) Fixed assets:** all fixed assets, except Deborah House freehold property which has been stated at revalued amount, are recorded at cost. Amounts incurred on capital items over £500 are capitalised. Depreciation rates and possible impairment are reviewed on an annual basis. Tangible fixed assets are depreciated at annual rates to write off the cost of the assets over their estimated useful lives using the following methods and rates: ||% per annum|Method| |---|---|---| |Equipment|33%|Straight line| |Motor vehicle|25%|Straight line| |Computer software|50%|Straight line| |Freehold buildings|4%|Straight line| Depreciation for development costs relating to leasehold buildings is on straightline basis over the remaining lease period. Major external paintings required by leasehold contract are treated as dilapidation costs, capitalised and depreciated between 5-7 years, depending on the painting cycles as stipulated in the leasehold contract. 55 FINANCIAL ACTIVITIES **d) Incoming resources:** rental income and donations are recognised when there is evidence of entitlement, the receipt is probable and the amount can be measured reliably. Grants, where entitlement is conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. **e) Expenditure and its basis of allocation:** all expenditure is dealt with on the accruals basis and includes value added tax where appropriate. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services. It includes direct costs of activities and those costs of an indirect nature necessary to support those activities, allocated between expenditure categories on an appropriate basis. Support costs have been allocated to activities on the basis of time spent for staff costs, floor area for property costs and activity levels for all other costs, in accordance with the Statement of Recommended Practice. Fundraising costs incurred are comprised of costs of generating income from donations and legacies, short term hire of spaces and marketing and publicity. Governance costs which are included within support costs are those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. **f) Dilapidation costs:** provision is made in the accounts for dilapidation costs of leased properties with funds designated to this aim. Such costs are arrived at based on yearly internal assessment of probability of costs materialising at the balance sheet date. SPACE ANNUAL REPORT 2021 56 **g) Operating leases:** all payments under operating leases are charged to the statement of financial activities in the year in which they fall due. **h) Pension policy:** the company provides a defined contribution pension scheme for its employees and contributions payable for the year are charged to the Statement of Financial Activities as incurred. **i) Fund accounting:** the unrestricted funds are rent and other income receivable or generated for the objectives of the charity without further specified purpose, and are available as general funds. The restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. **j) Critical accounting estimates and areas of judgement:** in preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have the most significant effect on amounts recognised in the financial statements. The annual depreciation charge for property, plant and equipment is sensitive to change in useful economic life and residual values of assets. These are reassessed annually and an impairment review is performed. Within the creditors balance are estimates of provisions for potential future expenditure on properties. These judgements are based on the likelihood of such expenditure occurring. 57 FINANCIAL ACTIVITIES **k) Employee benefits:** the costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. **l) Financial instruments:** **Cash and cash equivalents:** cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less. **Basic financial instruments:** the charity only holds basic financial instruments as defined by FRS 102. Financial instruments receivable or payable within one year of the reporting date are carried at their at transaction price and subsequently at amortised cost. SPACE ANNUAL REPORT 2021 58 S9 FINANCIAL ACTIVITIES **----- Start of picture text -----**
Unrestricted Restricted Total
funds funds
(£) (£) (£)
2. Income from donations
Year to 31 March 2021
Donations 6,800 - 6,800
6,800 - 6,800
Year to 31 March 2020
Donations 259,696 - 259,696
259,696 - 259,696
3. Income from investments
Year to 31 March 2021
Bank interest 6,516 - 6,516
6,516 - 6,516
Year to 31 March 2020
Bank interest 11,794 - 11,794
11,794 - 11,794
4.(a) Income from charitable activities
Year to 31 March 2021
Grants (4b) 1,016,607 982,198 1,998,805
Rental income 3,844,172 - 3,844,172
Total 4,860,779 982,198 5,842,977
4.(b) Grants
ACE: NPO core funding programme 225,292 - 225,292
ACE: emergency funding 565,000 - 565,000
ACE: Cultural Recovery Fund - 588,278 588,278
Academy of Fine Arts, Helsinki - 10,000 10,000
Covid-19 Job Retention Scheme 73,715 - 73,715
Covid-19: Retail, Hospitality & Leisure Grant 25,000 - 25,000
European Regional Development Fund - 121,284 121,284
GLA: Creative Workspace Resilience Fund 127,600 - 127,600
Thurrock Council (ERDF) - 257,937 257,937
Other (individual grants less than £10,000) - 4,700 4,700
Total 1,016,607 982,199 1,998,806
**----- End of picture text -----**
SPACE ANNUAL REPORT 2021 60 **----- Start of picture text -----**
Unrestricted Restricted Total
funds funds 2021
(£) (£) (£)
4.(c) Income from charitable activities
Year to 31 March 2020
Grants 4 (d) 251,221 521,685 772,906
Rental income 4,030,386 - 4,030,386
Total 4,281,607 521,685 4,803,292
4.(d) Grants
Year to 31 March 2020
ACE: NPO core funding programme 221,221 - 221,221
Academy of Fine Arts, Helsinki - 10,000 10,000
Bloomberg Philanthropies 30,000 - 30,000
Action for Bow - 11,120 11,120
European Regional Development Fund - 137,210 137,210
Institute of Contemporary Arts - 35,372 35,372
London Community Foundation, Cockayne Trust - 15,000 15,000
The Mercers’ Company - 15,538 15,538
Thurrock Council (ERDF) - 287,805 287,805
Other (individual grants less than £10,000) - 9,640 9,640
Total 251,221 521,685 772,906
5. Other trading activities
Year to 31 March 2021
Management fees - 43,481 43,481
Other income:
Venue hire 9,858 - 9,858
Workshop fees - - -
Bursary studios - 5,000 5,000
Transaction settlement 1,658,404 - 1,658,404
Other 14,387 19,820 34,207
Total 1,682,649 68,301 1,750,950
**----- End of picture text -----**
FINANCIAL ACTIVITIES 61 |||Unrestricted
funds
(£)|Restricted
funds
(£)|Total
(£)
67,671

18,495
1,941
5,556
33,751
127,414| |---|---|---|---|---| |**5. Other trading activities (contd.)**
**Year to 31 March 2020**
Management fees
Other income:
Venue hire
Workshop fees
Bursary studios
Other
**Total**||-|67,671

-
-

5,556
25,325
98,552|| |||||| SPACE ANNUAL REPORT 2021 62 **----- Start of picture text -----**
Costs of
Studio Programme generating Support Total
costs costs funds costs 2021
(£) (£) (£) (£) (£)
6. Total resources expended
Year to 31 March 2021
Staff costs (see note 8) 276,635 409,637 20,204 133,530 840,006
Other staff related costs 17,971 16,769 731 9,199 44,670
Rent, rates, maintenance and 2,989,009 319,357 - 6,506 3,314,872
other property costs
General office expenses 76,213 3,958 - 5,816 85,987
Publicity and marketing 18 69,035 6,026 - 75,079
Print, post, stationery 343 319 8 1,717 2,387
Information systems & 2,161 13,111 1,860 48,807 65,939
equipment
Bad debts 8,117 - - - 8,117
Legal and professional 11,314 27,568 - 713 39,595
Depreciation 528,965 - - 8,232 537,197
Bank charges and interest 88,030 210 - 4,016 92,256
Other programmes costs 8,283 406,007 10,446 376 425,112
Governance costs - - - 16,833 16,833
4,007,059 1,265,971 39,275 235,745 5,548,050
Allocation of support costs 175,083 58,220 2,442 (235,745) -
Total 4,182,142 1,324,191 41,717 - 5,548,050
**----- End of picture text -----**
Expenditure in total was £5,548,050 (2020: £5,098,204) of which £4,247,243 was unrestricted (2020: £4,286,563) and £1,300,807 was restricted (2020: £802,641). 63 FINANCIAL ACTIVITIES **----- Start of picture text -----**
Costs of
Studio Programme generating Support Total
costs costs funds costs 2020
(£) (£) (£) (£) (£)
6. Total resources expended (contd.)
Year to 31 March 2020
Staff costs (see note 8) 262,217 408,319 25,227 138,980 834,743
Other staff related costs 5,666 26,428 6,708 16,604 55,406
Rent, rates, maintenance and 2,882,475 20,212 108 72,468 2,975,263
other property costs
General office expenses 51,852 2,940 217 15,170 70,179
Publicity and marketing 2,717 26,518 18,219 - 47,454
Print, post, stationery 282 990 29 7,904 9,205
Information systems and 6,059 29,883 2,751 52,514 91,207
equipment
Bad debts - - - - -
Legal and professional 101,390 7,618 70 - 109,078
Depreciation 490,620 - - 7,959 498,579
Bank charges and interest 98,654 272 - 4,569 103,495
Other programmes costs 17,345 233,577 22,601 4,787 278,610
Governance costs - - - 16,285 16,285
3,919,577 756,757 75,930 337,240 5,089,504
Allocation of support costs 242,345 81,614 13,281 (337,240) -
Total 4,161,922 838,371 89,211 - 5,089,504
**----- End of picture text -----**
SPACE ANNUAL REPORT 2021 64 **----- Start of picture text -----**
2021 (£) 2020 (£)
7. Net incoming resources
Net incoming resources stated after charging:
Auditors’ remuneration 15,000 15,000
Depreciation 537,196 498,579
Rentals paid under operating leases – property 1,764,316 1,686,915
8. Staff costs
Wages and salaries 741,791 737,600
Pensions 29,958 30,774
Social security costs 68,257 66,369
Total 840,006 834,743
**----- End of picture text -----**
There was no employee during the year whose emoluments, excluding pension costs, fell between the range of £60,000 — £70,000 (2019: 1) No emoluments or expenses were paid to the trustee directors during the year (2020: 0). The total cost of staff redundancy for the year was £13,575 (2020: 0) The average weekly number of employees during the year was: |Studios
Programmes
Cost of generating funds
Support
**Total**|No.
9
11
2
4
26|
No.
8
11

3
5

27| |---|---|---| ## **Key management personnel:** Key management personnel include the Trustees, Chief Executive and senior management reporting directly to the Chief Executive, including Finance Director, Head of Grants, Properties Director, Studios Director, Operations Director, Strategic Development Director and Programmes Development Manager. The total employee benefits, including pension costs, of the charity’s key management personnel were £341,345 (2020: £293,319). FINANCIAL ACTIVITIES 65 ## **9. Taxation** The company was registered as a charity in February 1974 and consequently no corporation tax is payable on the results for the year. **----- Start of picture text -----**
Freehold Leasehold Office Motor Total
properties properties equipment vehicles
(£) (£) (£) (£) (£)
10. Tangible fixed assets
Costs:
At 1 April 2020 9,133,045 3,439,611 182,041 2,800 12,757,497
Additions 2,833 194,727 - 9,200 206,760
Disposals - - - - -
at 31 March 2021 9,135,878 3,634,338 182,041 12,000 12,964,257
Depreciation:
at 1 April 2020 1,856,158 2,223,180 157,150 2,800 4,239,288
Charge for year 267,713 253,047 14,136 2,300 537,196
Disposals - - - - -
at 31 March 2021 2,123,871 2,476,227 171,286 5,100 4,776,484
Net book value:
As at 31 March 2021 7,012,007 1,158,111 10,755 6,900 8,187,773
as at 31 March 2020 7,276,887 1,216,431 24,891 - 8,518,209
**----- End of picture text -----**
The Mayor and Burgesses of The London Borough of Hackney holds a fixed charge over certain leasehold buildings. Arts Council England holds a fixed charge over our freehold properties and a floating charge over the Charity assets and undertakings. ||2021 (£)|2020 (£)

140,824
117,981
443,083
254,430
956,318| |---|---|---| |**11. Debtors**
Rental debtors (including electricity costs recharged to tenants)
Other debtors
Prepayments
Accrued income
**Total**|154,126
42,978
509,217
309,267
1,015,588|| SPACE ANNUAL REPORT 2021 66 2021 (£) 2020 (£) ## **12. Creditors: amounts falling due within one year** |Tenant deposits held on account
Rental creditors
Other taxes and social security costs
Bank loan
Trade creditors
Other creditors
Accruals and deferred income
**Total**
**Analysis of deferred income:**
Balance as at 1 April 2020
Amount received in the year
Amount released in the year
**Balance as at 31 March 2021**|120,026
124,028
21,859
132,851
370,584
16,250
2,199,500
2,985,098
13,464
65,560
1,176
77,848|
119,083
60,249

21,879

126,137

159,195

6,006

1,599,979

2,092,528
-
14,640


1,176
13,464| |---|---|---| ## **13. Creditors: falling due after one year** |Bank loans
Amounts falling due:
Between one to two years
Between two to five years
Over five years
**Total**|136,551
432,896
2,493,984
3,063,431|
132,851

421,167

2,516,122

3,070,140| |---|---|---| The long term creditors relate to mortgages used to fund the purchase of artists studios and improvements to existing artist studios, programme space and office buildings. The bank loans are secured by fixed charges over the related freehold properties. Triodos Bank also holds various fixed and floating charges over the Charity assets and undertakings. The loans are repayable under various terms of length. Interest is charged at a minimum rate of 2.75% p.a. dependent upon the terms stated at the outset of each loan. ## **14. Share capital** The company is limited by guarantee and has no share capital. Under the terms of clause 9 of the Memorandum of Association, every member is liable to contribute a sum not exceeding £1 in the event of the Charity being wound up during the time that he or she is a member or for one year thereafter. 67 FINANCIAL ACTIVITIES **----- Start of picture text -----**
At Incoming Resources Transfers Total at
01 Apr 2020 resources expended 31 Mar 2021
(£) (£) (£) (£) (£)
15. Reserves
Year to 31 March 2021
Unrestricted Funds
General reserve 1,115,979 6,556,744 (4,247,243) (1,559,909) 1,865,571
Designated funds:
1. property funds for assets 2,974,452 - - (178,087) 2,796,365
funded internally
2. Building acquisition/ - - - 1,650,000 1,650,000
development fund
3. Designated - - - 25,000 25,000
programmes budget
4. Revaluation reserve 1,085,059 - - (27,501) 1,057,558
Total unrestricted funds 5,175,490 6,556,744 (4,247,243) (90,497) 7,394,494
Restricted Funds:
5. Restricted programme - 164,775 (255,272) 90,497 -
funds — LCN project
6. Restricted programme 5,520 885,725 (896,873) - (5,628)
funds — other
Total restricted 5,520 1,050,500 (1,152,145) 90,497 (5,628)
programme funds
7. Restricted property funds
Redbridge Town Hall 50,898 - (13,764) - 37,134
ACE Capital Works fund 695,546 - (47,363) - 648,183
Triangle fund 393,184 - (65,531) - 327,653
Sarah Lane fund 27,513 - (13,756) - 13,757
Bridget Riley Studios fund 4,192 - (1,048) - 3,144
Haymerle Road fund 114,900 - (7,200) - 107,700
Total restricted 1,286,233 - (148,662) - 1,137,571
property funds
Total restricted funds 1,291,753 1,050,500 (1,300,807) 90,497 1,131,943
Total funds 6,467,243 7,607,244 (5,548,050) - 8,526,437
**----- End of picture text -----**
68 SPACE ANNUAL REPORT 2021 **----- Start of picture text -----**
At Incoming Resources Transfers Total at
01 Apr 2019 resources expended 31 Mar 2020
(£) (£) (£) (£) (£)
15. Reserves
Year to 31 March 2020
Unrestricted Funds
General reserve 828,129 4,592,953 (4,286,863) (18,240) 1,115,979
Designated funds:
1. property funds for assets 2,974,452 - - - 2,974,452
funded internally
Revaluation reserve 1,112,560 - - (27,501) 1,085,059
Total unrestricted funds 4,915,141 4,592,953 (4,286,863) (45,741) 5,175,490
Restricted Funds:
2. Restricted Programme - 204,881 (250,622) 45,741 -
funds - NCM project
3. Restricted Programme 2,976 404,364 (401,820) - 5,520
funds - other
Total restricted 2,976 609,245 (652,442) 45,741 5,520
programme funds
7. Restricted property funds
Redbridge Town Hall 64,663 - (13,765) - 50,898
ACE Capital Works fund 742,909 - (47,363) - 695,546
Triangle fund 460,252 - (67,068) - 393,184
Sarah Lane fund 41,269 - (13,756) - 27,513
Bridget Riley Studios fund 5,240 - (1,048) - 4,192
Haymerle Road fund 122,100 - (7,200) - 114,900
Total restricted 1,436,433 - ( 150,200) - 1,286,233
property funds
Total restricted funds 1,439,409 609,245 (802,642) 45,741 1,291,753
Total funds 6,354,550 5,202,198 (5,089,505) - 6,467,243
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For an explanation of these funds, see the narrative on the description to the funds on p 70 69 FINANCIAL ACTIVITIES ## **15. Reserves (see previous spread)** **1.** This relates to the NBV of fixed assets less restricted property funds and total outstanding balance of bank loan for freehold acquisition and re-fitting. Transfer from general reserve is to more accurately reflect the net book value of the buildings and the related mortgages. **2.** Settlement for a property transaction ring fenced for either future acquisition or redevelopment of existing freeholds. **3.** Covid-19 related grant from the government earmarked for Colchester programmes. **4.** Fund relates to the excess of market value over net book value of Deborah House freehold property. The transfer to general fund relates to the yearly amortisation. **5.** LCN project funds reflect expenditure incurred against grant funding received from The Greater London Authority in 2020-21. The transfer from general reserve is in line with matched funding agreement. **6.** Restricted programme funds of which grants are yet to be received albeit costs have been incurred in relation to undertaken activities as per terms of the funding agreement. **7.** Restricted property funds are held in respect of capital acquisition and development projects for studio properties which have been funded by restricted capital grants. The cost of such acquisitions/developments is depreciated over the useful life of the capitalised assets. **----- Start of picture text -----**
General Designated Designated Total
funds funds funds 2020
(£) (£) (£) (£)
16. Analysis of net assets between funds
Fund balances at 31 March 2021 are
represented by:
Tangible fixed assets 1,057,555 5,992,647 1,137,571 8,187,773
Net current assets/liabilities 1,869,034 1,542,149 (5,629) 3,405,554
Long term liabilities - (3,063,431) - (3,063,431)
Total net assets 2,926,038 4,471,365 1,131,943 8,529,896
General Designated Designated Total
funds funds funds 2019
(£) (£) (£) (£)
Fund balances at 31 March 2020
are represented by:
Tangible fixed assets 1,061,246 6,170,729 1,286,233 8,518,209
Net current assets/liabilities 1,139,792 (126,137) 5,520 1,019,175
Long term liabilities - (3,070,140) - (3,070,140)
Total net assets 2,201,038 2,974,452 1,291,753 6,467,243
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70 SPACE ANNUAL REPORT 2021 ## **17. Contingent liabilities and other financial commitments** There were no contingent liabilities as at 31 March 2021 (2020:0). At 31 March 2021, there were total commitments under non-cancellable operating leases as follows: |**Operating leases which expire**
Within one year
Between two to five years
Over five years
**Total**|2021
Equipment
(£)
30,662
-
-
30,662|2020
Equipment
(£)

22,996

30,662

-

61,324|2021 Land &
buildings
(£)

-

7,007,031

5,312,450

12,319,481|2020 Land &
buildings
(£)

-

6,883,307

6,761,825

13,645,132| |---|---|---|---|---| ## **18. Related party transactions** There were no related party transactions during the year 2021 (2020:£0). ||2021
(£)|2020
(£)

513,235
470,670| |---|---|---| |**19. Financial instruments**
The financial statements include the following in respect of items held
at amortised cost at 31 March:
Financial assets measured at amortised cost
(trade and other debtors and accrued income)
506,371
Financial liabilities measured at amortised cost (trade and
other creditors, accruals and bank loans)
763,739||| 71 FINANCIAL ACTIVITIES ## **Funders and supporters** Thank you to all SPACE supporters ## **Programme Supporters** Action for Bow Alumno Arlington / One Housing Group BBC Children in Need Bridget Riley Art Foundation Channel 4 Cockayne - The London Community Foundation David Troostwyk Bursary / Matt’s Gallery Essex County Council GLA Creative Workspace Resilience Fund GreatArt The Ironmonger’s Company The Mercers’ Company Saastamoinen Foundation Uniarts Helsinki’s Academy of Fine Art The Valerie Beston Artists’ Trust ## **Partners** Age UK Redbridge, Barking & Dagenham and Havering Alumno BBC Arts Chisenhale Gallery Cockpit Arts Colchester Borough Council DACS DAZED Media East Sussex County Council Essex County Council Four Corners ICA Kent County Council Kingston School of Art LEAP Mayor of London Medway Council New Contemporaries NTS Radio One Housing Group Peabody Photofusion London Borough of Redbridge Southend-on-Sea Council Thurrock Council University of Essex Werkflow SPACE ANNUAL REPORT 2021 72 ## **Property Working Group** Alan Leibowitz, Dorrington Christopher Currell Claire Bennie, Municipal Rory Brooke, Savills Selina Mason, Lendlease Toni Lodeiro, DWD ## **Patrons & Friends** Patrons & Friends provide essential support for SPACE’s innovative artist professional development programme, such as studio bursaries for emerging artists; the learning and participation programme where schoolchildren are inspired by artists and their practices, as well as SPACE’s core commitment to providing affordable artist studios in London. ## **Trustees** Phil Clark, Treasurer Caroline Cole, Chair Christopher Currell Mary Evans Dr Omar Kholeif Imogen Willetts (April 2020 – January 2021) Lise Molgaard Frandsen (Appointed February 2020) Paulette Mizrahi (Appointed February 2020) Chief Executive, Anna Harding For more information, please visit **spacestudios.org.uk/support-space** or email **development@spacestudios.org.uk** ## **Honorary Patrons** Bridget Riley C.H, C.B.E. Peter Sedgley ## **Corporate Patrons** Sadie Coles HQ Stanton Williams Architects Young Turks ## **Patrons** Alan Leibowitz Christopher and Anne Currell Alison Myners Bridget Riley John Pawson Julian Burgess Karen Knorr Maria Sukkar Maureen Paley Paulette Mizrahi ## **Friends** Eva Woloshyn Lew Hodges Tuck Muntarbhorn And those who wish to remain anonymous. HQ & Studios Office 129–131 Mare Street, Hackney London, E8 3RH United Kingdom SPACE Ilford Art Gallery & Event Space 10 Oakfield Road (rear of Redbridge Town Hall) Ilford IG1 1ZJ spacestudios.org.uk mail@spacestudios.org.uk 020 8525 4330 @SPACEstudios @SPACEarttech @LCNLondon @SPACEStudiosLondon @37queenst @LondonCreativeNetwork @S.E.Creatives @space_studios_london @lcn_london @s.e.creatives 73 FUNDERS AND SUPPORTERS