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2022-03-31-accounts

pace ]

CONTENTS

Mission, Vision, Values 02
Trustees Report 05
SPACE Key Facts 2021-22 07
SPACE Studios 09
Artist Support 15
Building Creative Communities 25
Key Policies 33
Financial Review 35
Future Plans 39
Structure, Governance and Management 43
Statement of Trustee Responsibilities 48
Independent Auditor’s Report 51
Financial Statements 59
Reference & Administrative Details 81
Funders & Supporters 82

01

Mission

SPACE stands for S pace P rovision ( A rtistic C ultural and E ducational), and our mission is to make space for art.

We fulfil our mission:

Values

The following core values inform how we operate:

Vision

Our vision is to underpin a sustainable infrastructure for art and artists in the city, in perpetuity.

SPACE ANNUAL REPORT 2022

02

03

Trustees Report

The trustees present their annual report and the audited financial statements for the year ended 31 March 2022.

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).

The Reference & Administrative Details on page 81 form part of this report.

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05

SPACE Key Facts 2021—22

This was the second year set against a backdrop of the Covid-19 pandemic and related government lockdown measures and restrictions, which were only eased in the summer of 2021 and did not end until 1 April 2022. This had obvious consequences for our studio artists as well as our public programming. Despite the continued uncertainty, we kept our focus on our core priorities and our charitable goals. While there were significant effects on our finances for this year, our overall financial position remains healthy.

Continuing from last year, the trustees met more often to help steer the organisation through the pandemic. We expanded our Senior Management Team, and, following the departure of our CEO in August 2021, we appointed a new CEO starting January 2022.

The majority of staff continued working from home for the larger part of the year as per Government guidelines. Our public spaces at SPACE Ilford remained closed until September 2021, whilst the rest of our operations continued subject to regular review and risk assessment.

SPACE ANNUAL REPORT 2022

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06

SPACE Studios

OUR BUILDINGS

SPACE runs 21 artist studio buildings across 8 London boroughs and Colchester, with 310,000 sq. ft of premises providing an important infrastructure for sustainable creative communities. A 99% occupancy rate as at 31 March 2022 shows how much studio spaces remain in demand, and how valued they are by artists.

All our buildings remained open and accessible to artists this year, while following Covid safety guidelines, and subject to regular review and risk assessment.

We negotiated an agreement for lease, including the final lease and base specification for fit-out on a new studio building in Enfield, which is set to provide around 35 studios by 2025/26.

Property rent reviews on some of our properties concluded in early 2022 and stayed within our projections, putting our finances on more secure footing over the coming years.

OUR ARCHIVE

The Archive project, funded by Cockayne Trust, was completed at the end of July 2021, and our archive is now housed with the London Metropolitan Archives. A history timeline was compiled for the Our Story section of SPACE’s website. This is a living archive that will be continually updated and shared via social media on an ongoing basis.

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HIGHLIGHTS FROM SPACE STUDIO ARTISTS

Andrew Kenny — owner of The London Embroidery Studio, was one of the winners of the inaugural BFC Changemakers Prize by the British Fashion Council in partnership with Swarovski, September 2021

Blue Curry – Life Between Islands: Caribbean-British Art 1950s – Now at Tate Britain, 1 December 2021 – 3 April 2022

Chila Kumari Burman — won Dezeen Installation Design of the Year 2021 for Remembering a Brave New World , her neon façade on Tate Britain

Emma Hart — solo exhibition BIG MOUTH at Barakat Contemporary, Seoul, 24 November 2021 — 23 January 2022

Heather Phillipson — RUPTURE NO.1: blowtorching the bitten peach , Tate Britain Commission, unveiled 14 May 2021

Joe Duggan — solo exhibition Material at Swiss Cottage Gallery, London, 12 August — 1 October 2021

Kate Bickmore — in collaboration with Karen Millen, launch of second collection, December 2021

Kate Fahey — solo exhibition blubbing at Commonage Projects, London, 18 September – 13 November 2021

Lothar Götz — Masterpieces in Miniature: The 2021 Model Art Gallery at Pallant House Gallery, London, 28 September 2021 — 24 April 2022

Mark Entwisle — online exhibition Postcards at Long & Ryle Gallery, London, July 2021

Nika Neelova — Contemporary Sculpture Fulmer, 5th Edition, 15 May — 24 October 2021

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Paul Dash — Life Between Islands: Caribbean-British Art 1950s – Now at Tate Britain, 1 December 2021 – 3 April 2022

Rachel Jones — solo exhibition SMIIIILLLLEEEE at Thaddaeus Ropac, London, 9 December 2021 – 5 February 2022

Robert Phillips — Contemporary Sculpture Fulmer, 5th Edition, 15 May — 24 October 2021

Rose English — online exhibition The Pioneers Part II at Richard Saltoun gallery, July 2021

Sam Winston — Following the Breath , exhibition

in the Barbican Conservatory, Barbican Centre, 2022

Sikelela Owen — solo exhibition Steady Love at Taymour Grahne Projects gallery, Holland Park Space, 20 November 2021 — 8 January 2022

Vanessa da Silva — solo exhibition The Inner Rhythm of the Collective at The Lungley Gallery, 14 April — 22 May 2021

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Sam Winston in his SPACE studio at The Triangle, Mare Street
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Artist Support

COVID-19 SUPPORT

For the second year running, many of our studio artists faced uncertainty due to the pandemic, with commissions and exhibitions postponed or cancelled and freelance income curtailed.

In order to offer support where it was most needed, we managed to secure £294,000 funding from the Arts Council England’s Culture Recovery Fund, second round, for which we are enormously grateful.

We fully applied this to individual hardship rent relief, supporting 232 artists in need . In addition, we cancelled the annual rent increase on all our buildings for the second year, which we financed through our reserves. This was the single-largest factor contributing to our deficit over the year.

In addition to financial support, we continued to communicate regularly with studio artists through dedicated newsletters and signposted them to useful resources, grants and further advice.

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ARTIST PROFESSIONAL DEVELOPMENT

SPACE supports artists and creative businesses to run resilient and sustainable practices through free professional development programmes. During the pandemic, most of these moved online.

London Creative Network

SPACE leads London Creative Network, an important London-wide creative professional development partnership programme that started in 2016 with support from The European Regional Development Fund. 963 artists have been supported so far across the network.

Impact on artists in the programme:

SPACE Advice Bureau

Launched during the pandemic in 2020 in response to requests and suggestions from our studio artists, SPACE Advice Bureau offered free advice and guidance via 1-2-1 mentoring and workshops until October 2021. The pre-recorded webinars to support artists’ practice remain relevant, and were still regularly consulted online during this second year of the pandemic.

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Creative Practitioner Support Programme

SPACE Colchester’s Creative Practitioner Support Programme (CPSP) moved online during the pandemic, offering emerging and re-emerging artists the chance to gain advice and feedback through fortnightly peer-to-peer sessions. Because of the increased flexibility of online sessions, the programme was now able to include artists from other areas of the county, including other parts of Essex, Suffolk, Norfolk, and London.

Studio Bursaries

Studio bursaries provide artists with a year’s free studio space and mentoring support, relieving artists’ financial pressure to progress their practice. Studio bursary partners this year include Alumno with Goldsmiths, New Contemporaries, and the Valerie Beston Artist Trust with the Royal College of Art.

In 2021/22 the following were awarded:

SPACE has a track record of nurturing artists from graduation/early career. One such success story is Djofray Makumbu, a former SPACE bursary artist, who we commissioned to create the third SPACE Ilford billboard in February 2022. Djofray was also awarded the Video Archive Commission by Goldsmiths Exhibitions Hub & London Community and the Loewe Foundation/Studio Voltaire Award 2021.

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Michael Taiwo,
On the stool I wait
, Adoku Family, 2019, C-type Kodak metallic, 30 ✕ 21cm
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SPACE Artist Awards

Recognising that the art world can often be an exclusive territory for the privileged few, we launched the SPACE Artist Awards at the end of the previous year with funding from the Culture Recovery Fund to support artists who face inequality due to their race, gender, sexual orientation, disability or socio-economic background.

Twenty talented artists were selected in February 2021 and each awarded £5,000. During the course of 2021 they received 1-2-1 mentoring, inspirational talks, and practical group sessions. In addition, 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 SPACE Ilford to nine awardees, interview profiles on our website and Instagram takeovers. The programme concluded with a group exhibition at SPACE Ilford in March 2022.

Artists felt supported by SPACE and recognised (some for the first time) as professionals by the art world. The funding also gave them time and space to consider their priorities and allowed them to have the freedom to choose the next opportunity and afford better quality equipment and materials.

This is what some of the Awardees said:

I have been able to find balance with my free time and use it to my full advantage. It has made me more ambitious — the money was amazing.

I feel more optimistic, I still don’t have everything figured out but it’s great to know there are programmes like this out there.

More confidence and money has allowed me a freedom that I have never had in my life before. I have been struggling to be recognised as an artist in the art world.

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Digital Residencies

With the Cultural Recovery Funds (round one) support, SPACE created a micro website, where artists are invited to take up digital, online residencies, as well as create artworks digitally.

digitalart.spacestudios.org.uk

In 2021/22 twelve artists were paired up through our CPSP: Online Collaborative Residencies programme and offered the opportunity to collaboratively create new works, resulting in six online projects. Participants included SPACE studio artists from Colchester and London, alongside emerging artists from the CPSP.

The finished pieces from this project were displayed in a Digital Showcase on the micro website and launched with a special online presentation and artist discussion.

The residency artists commented that the micro website was very intuitive and easy to use, and that it helped them gain confidence in creating art and experiences for the web.

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Building Creative Communities

SPACE ILFORD

When we moved the heart of our public programming to Redbridge Town Hall in Ilford at the end of 2019, we could not foresee how the world would soon thereafter be shaped by a global pandemic that forced us to close our new space within four months of opening. It is therefore apt that ‘care’ was at the heart of SPACE’s public programme this year as we gradually started opening up again.

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Cecilia Charlton textile workshop during the
Mammoth Loop
exhibition, photo by David Mirzoeff
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In June 2021 we unveiled our second open air billboard commission at our entrance, created by local Redbridge artist Yasmin Falahat . With hands touching and the sharing of food, this billboard celebrated our reconnection with friends and family and care for each other as we emerged from lockdown.

Over the summer our Community Engagement team began facilitating a series of textile-themed workshops for various Redbridge organisations, supported by SPACE Artist Awardees. The works created subsequently went on show as part of the next two exhibitions in the gallery.

On Saturday 4 September 2021 we finally reopened SPACE Ilford to the public with a free Family Fun Day to launch Reflections of Care . The community exhibition brought together artworks created during the Covid-period with various local residents and key community groups, and reflected on how we care for ourselves and each other. Visitors at the launch were able to take part in a drop-in textile workshop, create their own artwork and meet the artists.

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On 9 October 2021 Cecilia Charlton’s exhibition Mammoth Loop opened, an exhibition of textiles co-created with local over-55s and exploring Ilford’s rich history. Supported by Mercer’s Charitable Foundation, the community works were united into large-scale quilted artworks as a physical manifestation of the social connections made during the time sewing together.

Sometimes we just need that encouragement to come and meet others in a very safe environment and feel part of the whole community.

Cecilia Charlton project participant

Also in October 2021 we hosted a symposium looking at audience development and participation in the context of care. It formed part of our Creative Europe funded project Who Cares? which is made up of five organisations dedicated to artistic production from different latitudes in Europe: Idensitat (Barcelona, Spain), SPACE (London, United Kingdom), Rupert (Vilnius, Lithuania), Grey Area (Korčula, Croatia) and Centro Huarte (Navarre, Spain).

Djofray Makumbu worked with Redbridge Youth Services on the third SPACE billboard commission Out of this world , which was installed outside the gallery in February 2022.

In March 2022 we opened the SPACE Artist Awards exhibition, offering a snapshot of the evolution of an artist’s practice during an especially challenging year.

We need more spaces for art in this community, so this is good to see.

Exhibition visitor

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photo by David Mirzoeff
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Since reopening to the public we see high local demand for our programme. We are working hard to build community engagement and actively seek new partnerships to support local projects and establish new opportunities for artists.

We supported Vision (Redbridge Culture and Leisure) in their successful application for CPP funding, and we continue to work with them. In the programming year 2021/22 we established a new teacher’s network and built relationships and instigated projects with disability and D/deaf groups (One Place East, Empowering the Deaf Society), HIV awareness-raising and prevention services (Positive East), and voluntary community groups (Barkingside Arts Club, Redbridge Youth Services, Redbridge Leaving Care Team, Park Rangers, and Age UK), among others.

Coming here made me realise art isn’t all about being good at art — you can enjoy it too. It’s more about having a creative mind than actually being able to draw.

Student exhibition visitor

THE CREATIVE SPACE AT ARLINGTON

Our artist-led creative programme for homeless people in partnership with The Charitable Services Team of One Housing at Arlington House in Camden continued this year via weekly online meet-ups and a dedicated Whatsapp group where participants were able to share their progress and get peer feedback.

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Photo by David Mirzoeff
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URBAN VOICES

Urban Voices is a leading SPACE project that supports 11-16 year olds in Pupil Referral Units (PRUs) who have been excluded from mainstream education. The artist-led project aims to provide these young people with a platform to feel inspired, explore their thoughts and feelings through art, while also developing technical and social skills and finding their public voice within the community.

In 2021/22 SPACE delivered two projects, in partnership with Hackney PRU at New Regent’s College, with the support of Ironmongers, and LEAP in Bow supported by Action for Bow.

OPEN STUDIOS

Due to the pandemic-related restrictions, there were no Open Studio events this year in any of our buildings.

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Key Policies

EQUALITY, DIVERSITY & INCLUSION

SPACE is committed to promoting diversity, inclusion and equality of access and opportunity to all staff, artists, suppliers, participants and partners – from all backgrounds and all sectors of society – ensuring they are part of our community, valued for their contribution and are able to flourish and succeed. We aim to identify barriers to progress, tackle inequality and act to address underrepresentation of diversity in governance, employment, our support for artists, widening participation and developing audiences.

Our full Equality, Diversity and Inclusion Policy is available online .

SUSTAINABILITY & ENVIRONMENT

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Sam Winston,
Following the Breath
, Barbican Conservatory, 2022
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SPACE has a genuine concern for the environment, and we recognise that climate change is one of the defining global challenges of our time. We therefore firmly believe that embracing green best practices is our social and moral responsibility. We strive to continually assess and reduce our overall environmental impact and are committed to making environmental responsibility an integral part of our operations and activities, while maintaining long-term affordability for artists.

Our full Sustainability & Environmental Policy is available online .

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Analysis of income for 2021-2022

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2022 2021
£4m
£3m
£2m
£1m
£0
Rents receivableProject-specific grantsCore programmes grantsOther income Exceptional income
(covid grants/other)
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Analysis of expenditure for 2021-2022

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£5m 2022 2021
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£4m
£3m
£2m
£1m
£0
Studios Programmes Admin & operations Fundraising
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Financial Review

Income/expenditure

This was an exceptional funding year due to Arts Council England’s COVID-related Culture Recovery Fund-2, which we passed on in full to our studio artists in the form of individual hardship rent relief. In addition, in light of the pandemic, we agreed a second year of rent freeze for all studio artists, which curtailed our rental income by an estimated 4% .

Income from studios represented 83% of SPACE’s revenue, with occupancy in the studios continuing at over 95% . Grants represented 9% of income while exceptional income and other income represented 8% .

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 £225,291 towards our programme.

The charity incurred a loss of £396,387 for the year. Given the stringent times resulting from COVID, and with the exceptional grants, we were pleased to be able to curb our losses while offering our artists not inconsiderable support in line with our charitable aims. Despite this deficit, we are able to continue with 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.

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Income/expenditure snapshot

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Income 2022 (£) 2021 (£) +/-
Rents receivable 3,910,867 3,844,172 2%
Project-specific grants 213,763 393,921 -46%
Core programmes grants 226,208 225,292 0%
Other income 104,322 105,862 -1%
Exceptional restricted Covid grants 294,000 588,278 -50%
Exceptional unrestricted Covid grants n/a 791,315 -
Exceptional income n/a 1,658,404 -
Total income 4,749,160 7,607,244 -
Expenditure 2022 (£) 2021 (£) +/-
Studios 4,366,533 4,007,059 9%
Programmes 451,399 1,265,971 -64%
Admin & operational costs 303,942 235,746 29%
Fundraising 23,673 39,275 -40%
Total expenditure 5,145,547 5,548,051 -
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is £1,100,000 to £1,300,000 , with actual free reserve position being £1,631,900 at 31 March 2022. While the current level of free reserves is above the target level, the excess is being used to cover planned deficits in the short term.

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 handled. 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 SPACE has sufficient reserves in place to withstand any challenges in the year ahead.

Investment Policy

Reserves Policy

SPACE held total unrestricted funds of £7,134,376 as at 31 March 2022. Within the total unrestricted funds, £2,924,826 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 potential 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

The charity’s investments are managed in accordance with its 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.

Fundraising

Fundraising, development and partnership working make a vital contribution to our income and impact. As an Arts Council National Portfolio Organisation we deliver place-based projects with our partners in Camden (Arlington), Colchester and Redbridge.

Our dedicated Patrons and Friends support a bursary studio for recent graduates in Ilford, and we are very grateful for their generosity.

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.

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Layla Curtis,
United Kingdom + European Union,
collage, 2021
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Future Plans

KEEPING ARTISTS IN THE CITY

A key priority is to maintain a resilient portfolio of freehold and long leasehold property for affordable studios to underpin our support for artist production and public benefit in perpetuity. For this purpose we are building up funds for new property acquisition, while continuing to explore partnerships on properties that offer added value with local authorities, developers, and other partners.

We will continue our rolling maintenance programme on our studio sites and upgrade wherever resources permit to reduce our environmental impact.

HARNESSING A COLLECTIVE VOICE

Together with Second Floor Studios & Arts and Artists Studio Company (ASC), SPACE is one of the founding members of the London Affordable Artist Studio Network (LAASN). With experience spanning over half a century, LAASN members currently collectively represent 1 million square foot of studio space, hosting 1 in 3 artists in London. We share best practice, define affordability, and, harnessing our collective voice, we advocate for artists’ economic and cultural contribution to the city’s ecology, to protect the territory for artists to operate.

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SUPPORTING ASPIRATIONS AND RESILIENCE

We aim to continue to provide space, resources and platforms for professional visual artists to develop their creative practice and build resilience. This has become particularly pressing in the aftermath of Covid-19 and in light of the current economic climate. We will continue with SPACE Advice Bureau, our artist support programme, and are actively looking for new partnership opportunities once the London Creative Network comes to an end next year.

A HOLISTIC APPROACH

Since reopening our public site at SPACE Ilford, once Covid-19 restrictions were eased, we are steadily building a trusted local audience for what we are programming, led by the needs of our community. We take time to reflect, and adapt where we can improve, in order to create a unique public programme which is built with and embraced by our new audiences and fully reflects Ilford’s diversity.

In addition, we are continuing our highly valued place-based partnerships in Arlington and Colchester, and will build on the successful delivery of Urban Voices and expand its reach to more young people around London.

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Structure, Governance and Management

Art Services Grants Limited (t/a 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 SPACE are:

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.

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. 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.

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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. Ongoing training is provided to trustees throughout the year.

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 workplace 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

During the year, the Property Working Group supported the Board of Trustees, addressing in particular how to increase the number of studios (location, type, tenure etc.) and to improve the sustainability of SPACE through long leasehold or freehold purchases. The Property Working Group includes co-opted experts and reports to the trustee board. The trustees are grateful for generous support from its Property Working Group members: Alan Leibowitz (Chair), Claire Bennie, Chris Currell (Trustee), Rory Brooke, Selina Mason, and Toni Lodeiro. We also thank our property advisors at Dalton Warner Davis, who acted on our behalf throughout the year.

SPACE has an Equality, Diversity and Inclusion 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.

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. 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.

SPACE has a business continuity plan to cover all potential operational considerations, and an annual review of priorities ensures we meet objectives effectively. SPACE evaluates and responds to risk at regular internal meetings including at monthly studios management meetings, and maintains a risk register which is reviewed by trustees every quarter.

Additional expert committees that advise the Board of Trustees include the Finance and Remuneration committee responsible for approving salaries and the annual financial audit.

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Current Key Risks and Uncertainties

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SPACE artist, Tony Hill,
Orbal
, 1970
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Statement of Trustee 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 the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of 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:

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

Small Companies’ Regime

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Auditors

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.

Haysmacintyre LLP were the appointed auditors during the year and are deemed to be reappointed under section 487(2) of the Companies Act 2006.

The Trustees’ Report has been approved by the Board of Trustees on 22 November 2022 and is signed on behalf of the Board by the Chair.

Chair: Caroline Cole

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Independent Auditor’s Report to the Members of Art Services Grants Limited

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Opinion

We have audited the consolidated financial statements of Art Services Grants Limited for the year ended 31 March 2022 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 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.

SPACE ANNUAL REPORT 2022

53 INDEPENDENT AUDITOR’S REPORT

52

Opinions on other matters prescribed by the Companies Act 2006

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

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:

• 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 48, 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.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

SPACE ANNUAL REPORT 2022

55 INDEPENDENT AUDITOR’S REPORT

54

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 recognition of revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities 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.

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.

Date: 22 November 2022

Richard Weaver (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor 10 Queen Street Place, London, EC4R 1AG

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events

SPACE ANNUAL REPORT 2022

57 INDEPENDENT AUDITOR’S REPORT

56

Art Services Grants Limited (SPACE) Financial Statements for the year ended 31 March 2022 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).

SPACE ANNUAL REPORT 2022

58

59

Statement of Financial Activities for the year ended 31 March 2022

----- Start of picture text -----
Unrestricted Restricted Restricted
revenue funds revenue funds capital funds Total 2022 Total 2021
(£) (£) (£) (£) (£)
Income from
Donations [ 2] 6,660 - - 6,660 6,800
Investments [ 3] 4,121 - - 4,121 6,516
Charitable activities [ 4] 4,377,074 267,764 - 4,644,838 5,842,978
Other trading activities [5] 20,992 72,549 - 93,541 1,750,950
Total income 4,408,847 340,313 - 4,749,160 7,607,244
Expenditure on
Hires and Fundraising [ 6] 26,155 - - 26,155 41,717
Charitable activities [6] 4,581,273 389,456 148,663 5,119,392 5,506,333
Total expenditure 4,607,428 389,456 148,663 5,145,547 5,548,050
Net income/(expenditure) (198,581) (49,143) (148,663) (396,387) 2,059,194
Transfer between funds [15 ] (61,537) 61,537 - - -
Net movement in funds (260,118) 12,394 (148,663) (396,387) 2,059,194
Fund balances at 7,394,494 (5,628) 1,137,571 8,526,437 6,467,243
01 April 2021
Fund balances at 7,134,376 6,766 988,908 8,130,050 8,526,437
31 March 2022 [ 15]
----- End of picture text -----

Balance Sheet as at 31 March 2022

----- Start of picture text -----
2022 2022 2021 2021
(£) (£) (£) (£)
Fixed Assets
Tangible assets [10] 7,879,813 8,187,773
Current Assets
Debtors [11] 902,919 1,015,588
Cash on short term deposit at bank and in hand 5,464,578 5,371,605
Subtotal 6,367,497 6,387,193
Creditors: amounts falling due within one year [12] (3,181,238) (2,985,098)
Net Current Assets 3,186,259 3,402,095
Total Assets Less Current Liabilities 11,066,072 11,589,868
Creditors: amounts falling due (2,936,022) (3,063,431)
after more than one year [13]
Total Net Assets 8,130,050 8,526,437
Funds
Unrestricted Funds [15] 6,104,319 6,336,936
Revaluation Reserve [15] 1,030,057 1,057,558
Restricted Funds [15] 995,674 1,131,943
Total Funds 8,130,050 8,526,437
----- End of picture text -----

Approved by the Board of Directors and authorised for issue on 22 November 2022, and signed on their behalf by the Chair.

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 £3,954,883 within general funds and £988,908 within restricted funds.

The notes on pages 63 — 79 form part of these financial statements.

Chair: Caroline Cole Registered Company No. 1157240

SPACE ANNUAL REPORT 2022

61 FINANCIAL STATEMENTS

60

Statement of Cash Flows for the year ended 31 March 2022

----- Start of picture text -----
2022 2021
(£) (£)
Reconciliation of net income/(expenditure)
to net cash flow from operating activities
Net income/ (expenditure) (as per the statement of financial (396,387) 2,059,193
activities) [SOFA]
Adjustments for:
Depreciation charges [ 10] 574,521 537,196
Investment income (4,121) (6,516)
Interest cost 90,972 92,256
(Increase)/decrease in debtors [ 11] 112,669 (59,268)
Increase in creditors [ 12] 201,584 885,859
Net cash provided by operating activities 579,238 3,508,720
----- End of picture text -----

Cash flows from investing activites
Interest income
Purchase of property, plant and equipment10
Net cash used in investing activities
Cash flows from financing activites
Repayments of borrowing
Interest cost
Net cash used in investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equvalents at the end of the reporting period
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 4,121
(266,561)
(262,440)
(132,853)
(90,972)
(223,825)
92,973
5,371,605
5,464,578
5,464,578
5,464,578		 6,516
(206,760)
(200,244)
-
(92,256)
(92,256)
3,216,220
2,155,385
5,371,605
5,371,605
5,371,605

Notes to the Financial Statements for the year ended 31 March 2022

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. Taking this into account together with the level of cash currently held, 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 2022

63 FINANCIAL STATEMENTS

62

The financial impact of COVID-19 on the artists and the

resulting uncertainty about SPACE’s finances was managed by granting further relief, partly funded through Arts Council England grants and SPACE’s reserves. Although such measures have contributed to the year’s deficit, it has prevented the wholesale loss of tenants and the ripple effects it would have had on SPACE’s operation. While the rising cost of living for our artists is considered a challenge, SPACE has sufficient reserves to mitigate any potential impacts in the short to medium term.

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.

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: a 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 2022

65 FINANCIAL STATEMENTS

64

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.

k) Employee benefits: the costs of short-term employee benefits are recognised as a liability and an expense.

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:

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.

1) 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.

2) 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.

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.

SPACE ANNUAL REPORT 2022

FINANCIAL STATEMENTS

66

67

Unrestricted Restricted Total funds funds (£) (£) (£)

2. Income from donations

Year to 31 March 2022
Donations
Year to 31 March 2021
Donations
3. Income from investments
Year to 31 March 2022
Bank interest
Year to 31 March 2021
Bank interest		 6,660
6,800
4,121
6,516
-

-

-

-
6,660

6,800

4,121

6,516

4.(a) Income from charitable activities

Year to 31 March 2022

Unrestricted Restricted Total funds funds (£) (£) (£)

4.(c) Income from charitable activities

Year to 31 March 2021

Grants 4 (d)
Rental income

Total

4.(d) Grants
Year to 31 March 2021
ACE: NPO core funding programme
ACE: Emergency Funding
ACE: Cultural Recovery Fund
Academy of Fine Arts, Helsinki
COVID-19 Job Retention Scheme
COVID-19 Response:Retail, Hospitality & Leisure Grant
European Regional Development Fund
GLA: Creative Workspace Resilience Fund
Thurrock Council (ERDF)
Other (individual grants less than £10,000)
Total		 1,016,607
3,844,172
4,860,779
225,292
565,000
-
-
73,715
25,000
-
127,600
-
-
1,016,607
982,198

-

982,198

-

-

588,278

10,000

-

-
121,284

-
257,937
4,700
982,199		 1,998,805

3,844,172

5,842,977

225,292

565,000

588,278

10,000

73,715

25,000

121,284
127,600
257,937
4,700
1,998,806
Grants (4b)
Rental income
Total

4.(b) Grants
Year to 31 March 2022
ACE: NPO core funding programme
ACE: Cultural Recovery Fund
Action for Bow
Institute of Contemporary Arts
Mercers Philanthropy
European Regional Development Fund
Other (individual grants less than £10,000)
Total		 226,208
3,910,867
4,137,075
225,291
-
-
-
-
-
917
226,208
507,763

-

507,763

-
294,000

11,120
20,000

15,538

139,862

27,243

507,763		 733,971

3,910,867

4,644,838

225,291

294,000

11,120

20,000

15,538

139,862
28,160

733,971

ACE = Arts Council England

68 SPACE ANNUAL REPORT 2022

69 FINANCIAL STATEMENTS

----- Start of picture text -----
Unrestricted Restricted Total
funds funds
(£) (£) (£)
5. Other trading activities
Year to 31 March 2022
Management fees - 50,808 50,808
Other income:
Venue hire 13,573 - 13,573
Bursary studios - 5,500 5,500
Other 7,418 16,242 23,660
Total 20,991 72,550 93,541
Year to 31 March 2021
Management fees - 43,481 43,481
Other income:
Venue hire 9,858 - 9,858
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 -----

----- Start of picture text -----
Costs of
Studio Programme generating Support Total
costs costs funds costs
(£) (£) (£) (£) (£)
6. Total resources expended
Year to 31 March 2022
Staff costs (see note 8) 318,138 307,051 8,510 163,640 797,339
Other staff related costs 7,748 6,395 - 27,032 41,175
Rent, rates, maintenance 3,143,160 11,718 - 20,395 3,175,273
& other property costs
General office expenses 79,921 2,313 - 10,467 92,701
Publicity & marketing - 7,558 12,940 - 20,498
Print, post, stationery 81 1,217 - 2,627 3,925
Information systems & 1,308 5,907 2,004 45,306 54,525
equipment
Bad debts 1,631 - - - 1,631
Legal & professional 150,733 4,920 - - 155,653
Depreciation 566,470 - - 8,051 574,521
Bank charges & interest 86,399 149 - 4,424 90,972
Other programmes costs 10,944 104,171 219 1,567 116,901
Governance costs - - - 20,433 20,433
4,366,533 451,399 23,673 303,942 5,145,547
Allocation of support costs 266,968 34,492 2,482 (303,942) -
Total 4,633,501 485,891 26,155 - 5,145,547
----- End of picture text -----

Expenditure in total was £5,145,547 (2021: £5,548,050) of which £4,607,428 was unrestricted (2021: £4,247,243) and £538,119 was restricted (2021: £1,300,807).

SPACE ANNUAL REPORT 2022

FINANCIAL STATEMENTS

70

71

Costs of Studio Programme generating Support Total costs costs funds costs (£) (£) (£) (£) (£)

6. Total resources expended (contd.)

Year to 31 March 2021

Staff costs (see note 8)
Other staff related costs
Rent, rates, maintenance
& other property costs
General office expenses
Publicity & marketing
Print, post, stationery
Information systems &
equipment
Bad debts
Legal & professional
Depreciation
Bank charges & interest
Other programmes costs
Governance costs
Allocation of support costs
Total		 276,635
17,971
2,989,009
76,213
18
343
2,161
8,117
11,314
528,965
88,030
8,283
-
4,007,059
175,083
4,182,142
409,637

16,769
319,357
3,958
69,035
319
13,111
-
27,568
-
210
406,007

-
1,265,971
58,220

1,324,191		 20,204
731
-
-
6,026
8
1,860
-
-
-
-
10,446

-
39,275
2,442

41,717		 133,530
9,199
6,506
5,816
-
1,717
48,807
-
713
8,232
4,016
376

16,833
235,745
(235,745)
-		 840,006
44,670
3,314,872
85,987
75,079
2,387
65,939
8,117
39,595
537,197
92,256
425,112
16,833
5,548,050
-

5,548,050

----- Start of picture text -----
2022 (£) 2021 (£)
7. Net incoming resources
Net incoming resources stated after charging:
Auditors’ remuneration 15,000 15,000
Depreciation 574,521 537,196
Rentals paid under operating leases – property 1,928,959 1,764,316
8. Staff costs
Wages and salaries 701,404 741,791
Pensions 28,411 29,958
Social security costs 67,524 68,257
Total 797,339 840,006
----- End of picture text -----

There were no employees during the year whose emoluments, excluding pension costs, exceeded £60,000 (2021: 0)

No emoluments or expenses were paid to the trustee directors during the year (2021: 0). There was no staff redundancy cost during the year (2021: £13,575)

The average weekly number of employees during the year was:

Studios
Programmes
Cost of generating funds
Support
Total		 No.
8
10
2
4
24
No.
9
11

2
4
26

Key management personnel:

Key management personnel include the Trustees, Chief Executive and senior management reporting directly to the Chief Executive, including Finance Director, Properties Director, Studios Director, Operations Director, Strategic Development Director and Communications Director. The total employee benefits, including pension costs, of the charity’s key management personnel were £320,675 (2021: £341,345).

SPACE ANNUAL REPORT 2022

FINANCIAL STATEMENTS

72

73

2022 (£) 2021 (£)

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 2021 9,135,878 3,634,338 182,041 12,000 12,964,257
Additions 106,989 149,001 6,964 3,607 266,561
Disposals - - - - -
at 31 March 2022 9,242,867 3,783,339 189,005 15,607 13,230,818
Depreciation:
at 1 April 2021 2,123,871 2,476,227 171,286 5,100 4,776,484
Charge for year 271,993 290,796 8,530 3,202 574,521
Disposals - - - - -
at 31 March 2022 2,395,864 2,767,023 179,816 8,302 5,351,005
Net book value:
As at 31 March 2022 6,847,003 1,016,316 9,189 7,305 7,879,813
as at 31 March 2021 7,012,007 1,158,111 10,755 6,900 8,187,773
----- End of picture text -----

The Mayor and Burgesses of The London Borough of Hackney hold 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.

2022 (£) 2021 (£)

154,126

42,978

509,217

309,267

1,015,588
11. Debtors
Rental debtors (including electricity costs recharged to tenants)
Other debtors
Prepayments
Accrued income
Total		 136,013
21,450
456,339
289,117
902,919

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 2021
Amount received in the year
Amount released in the year
Balance as at 31 March 2022		 121,550
116,230
23,013
127,407
410,637
9,637
2,372,764
3,181,238
45,360
25,338
33,141
37,557
120,026

124,028

21,859

132,851

370,584

16,250

2,199,500

2,985,098

13,464

33,072


1,176
45,360

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		 129,278
405,924
2,400,820
2,936,022
136,551

432,896

2,493,984

3,063,431

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 the rate of 2% p.a. above the prevailing base rate.

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.

SPACE ANNUAL REPORT 2022

FINANCIAL STATEMENTS

74

75

----- Start of picture text -----
At Incoming Resources Transfers Total at
01 Apr 2021 resources expended 31 Mar 2022
(£) (£) (£) (£) (£)
15. Reserves
Year to 31 March 2022
Unrestricted Funds
General reserve 1,865,571 4,408,847 (4,607,428) (162,497) 1,504,493
Designated funds:
1. property funds for assets 2,796,365 - - 128,461 2,924,826
funded internally
2. Building acquisition/ 1,650,000 - - - 1,650,000
development fund
3. Designated 25,000 - - - 25,000
programmes budget
4. Revaluation reserve 1,057,558 - - (27,501) 1,030,057
Total unrestricted funds 7,394,494 4,408,847 (4,607,428) (61,537) 7,134,376
Restricted Funds:
5. Restricted programme - 190,954 (243,941) 52,987 -
funds — LCN project
6. Restricted programme (5,628) 149,359 (145,515) 8,550 6,766
funds — other
Total restricted (5,628) 340,313 (389,456) 61,537 6,766
programme funds
7. Restricted property funds
Redbridge Town Hall 37,134 - (13,764) - 23,370
ACE Capital Works fund 648,183 - (47,363) - 600,820
Triangle fund 327,653 - (65,531) - 262,122
Sarah Lane fund 13,757 - (13,757) - -
Bridget Riley Studios fund 3,144 - (1,048) - 2,096
Haymerle Road fund 107,700 - (7,200) - 100,500
Total restricted 1,137,571 - (148,663) - 988,908
property funds
Total restricted funds 1,131,943 340,313 (538,119) 61,537 995,674
Total funds 8,526,437 4,749,160 (5,145,547) - 8,130,050
----- End of picture text -----

----- 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 -----

For an explanation of these funds, see the narrative on the description to the funds on p78

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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 2021-22. 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 2022
(£) (£) (£) (£)
16. Analysis of net assets between funds
Fund balances at 31 March 2022 are represented by:
Tangible fixed assets 902,650 5,988,255 988,908 7,879,813
Net current assets/liabilities 1,631,900 1,547,593 6,766 3,186,259
Long term liabilities - (2,936,022) - (2,936,022)
Total net assets 2,534,550 4,599,826 995,674 8,130,050
General Designated Designated Total
funds funds funds 2021
(£) (£) (£) (£)
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 1,865,574 1,542,149 (5,628) 3,402,095
Long term liabilities - (3,063,431) - (3,063,431)
Total net assets 2,923,129 4,471,365 1,131,943 8,526,437
----- End of picture text -----

17. Contingent liabilities and other financial commitments

There were no contingent liabilities as at 31 March 2022 (2021:0). At 31 March, 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		 2022
Equipment
(£)
-
-
-
-		 2021
Equipment
(£)

30,662

-

-

30,662		 2022 Land &
buildings
(£)

28,500

5,307,277

5,312,450

10,648,227		 2021 Land &
buildings
(£)

-

7,007,031

5,312,450

12,319,481

18. Related party transactions

There were no related party transactions during the year 2022 (2021: £0).

2022
(£)		 2021
(£)

506,371
763,739
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)
Financial liabilities measured at amortised cost
(trade and other creditors, accruals and bank loans)		 446,580
785,461

78 SPACE ANNUAL REPORT 2022

79 FINANCIAL STATEMENTS

Reference & 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 Paulette Mizrahi Lise Molgaard Frandsen

Chief Executive Anna Harding (until August 2021) Eline van der Vlist (from January 2022) Secretary Anna Harding / Eline van der Vlist Registered Office The Triangle, 129-131 Mare Street & Business Address London E8 3RH Independent Auditors Haysmacintyre LLP, 10 Queen Street Place London EC4R 1AG Solicitors Clyde & Co Solicitors, The St Botolph Bldg 138 Houndsditch, London EC3A 7AR

Bankers Natwest Bank Plc, 140 Victoria Street London SW1E 5LF

COIF Charities Deposit Fund, St Alphage House

2 Fore St, London EC2Y 5AQ Triodos Bank, Deanery Rd, Bristol BS1 5AS

80 SPACE ANNUAL REPORT 2022

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Funders & Supporters

Major Supporters

Honorary Patrons Bridget Riley C.H, C.B.E. Peter Sedgley

Patrons & Friends

Alan Leibowitz Karen Knorr Lew Hodges Paulette Mizrahi Sadie Coles HQ Selina Mason Young Turks

Programme Supporters

Action for Bow A New Direction BBC Children in Need Bridget Riley Art Foundation Cockayne: The London Community Foundation Fluxus Hackney Council ICA The Ironmongers’ Company The Mercers’ Company ReNu

Partners

Age UK Redbridge, Barking & Dagenham and Havering Alumno Cockpit Arts Colchester Borough Council Essex County Council Four Corners Mayor of London New Contemporaries The Charitable Services Team of One Housing Peabody Photofusion LEAP London Borough of Redbridge Saastamoinen Foundation Uniarts Helsinki’s Academy of Fine Art The Valerie Beston Artists’ Trust

And those who wish to remain anonymous.

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Registered Office 129–131 Mare Street, Hackney London E8 3RH

SPACE Ilford

Art Gallery & Event Space 10 Oakfield Road (rear of Redbridge Town Hall) Ilford IG1 1ZJ

spacestudios.org.uk

@space_studios_london

mail@spacestudios.org.uk 020 8525 4330

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