Charity registration number 27378S
Company reglstratlon number 01310070 IEngland and Wales)
NEWLYN ART GALLERY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

NEWLYN ART GALLERY LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustses
MRBird
N Scott
G Buenfeld-murley
H Buckingham
J Bulman
N Williams
J Faram
A Ghadiali
Acosma
O Owczarek
J Twomlow
(Appointed 25 November 20241
(Appointed 25 November 20241
(Appointed 25 November 20241
(Appointed 25 November 20241
(Appointed 25 Novèmkr 20241
Secretary
N Scott
Charty nurnber
273785
Company number
01310070
Registorad offic
The Exchange
Princes Street
Penzance
Cornwall
United Kingdom
TR182NL
Audltor
Azels Audit Services
Woodlands Court
Truro Business Park
Truro
Cornwall
United Kingdom
TR4 9NH
Gallery Director
J Green
Observgrs
M Jivram, Arts Coun¢il England

NEWLYN ART GALLERY LIMITED
CONTENTS
Page
Trustees, report
Stslemenl of trustees. responsibilities
Independent auditorfs report
Statement of financial activities
14-15
Balance sheet
16
Stslemenl of cash flows
Notes lo the financial statements
18-39

NEWLYN ART GALLERY LIMITED
TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT)
FOR THE YEAR ENDED 31 MARCH 2024
The trustees present their annual report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the
financial slalements and comply with the Companies Act 2006 and Accounting and Reporting by Charities..
Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the
Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191"
Objectives and activities
ObJgCtlv&s and alms
The company is an edu¢alional charity wrth the object of advancing edu¢alion in visual art. This object is mel by the
maintenance of Newlyn Art Gallery & The Exchange for the public exhibition of visual art, multi-year education
programmes, the provision of lectures, classes, and conferences calculated to advan￿ education in visual art.
Slgnlflcanl actlvllles
Through a programme of exhibitions and ambitious education projects, exploring the role of arts in social change,
Newlyn Art Gallery Ltd promotes the understanding and appreciation of contemporary art. In the course Df the
programme the gallery collaborates with other organisalions in the area and nationally to promote visual art. This
core activity has not changed during the year.
How our main activities deliver public benefit
Our main activities are described below. Our charitable activities focus on providing an ambitious programme of
exhibitions, le8tning projects and other activities undertaken lo further our charitable purposes for the public benefit.

NEWLYN ART GALLERY LIMITED
TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Achievements and perforniance
Revlew of the Year
The year to 31 March 2024 continued lo reflect a growing ambition in our gallery-based programming. building on
important collaborative initiatives, with existing partners such as the Arts Council Collection, as well as wmpletely
new ones, for example our partnership with Focal Point Gallery, Southend-on-sea. Our activities in our community
remained a priority, with great energy being directed to new school partnerships and fundraising to bring these to
fruition.
The financial year opened wth the continuing run of We Are Floating in Space, a group exhibi(ion of artists who
made work in Cornwall and Devon, using ideas of the coast, or the materials of the shoreline, lo ¢￿ale their work.
However, the exhibition looked beyond the tradition of seascapes to showcase artists who used the Coast as a
metsphor or as inspiration to explore issues around grieving. gender idenb'ty, the queer body, childlessness not by
choice, the search for one's tribe, or the growing climate crisis.
The exhibition also included artists who used and transforrned the materials of the coastline for their work,. an oak
stool from the submerged ancient woodland of Mount's Bay, a silver spoon Cast from a rock pool, sculptural hybrids,
and chemigrams soaked In seawater, amongst others.
The lower gallery al Newlyn hosted an exhibilion-within-the-exhibition, curated by Fran Rowse, expanding on her
Ma￿S project and featuring other young female artists who explore the lived experien￿$ of growing up in small
coastal towns.
Over the summer we presented I Chose This, a celebration of our knyear outreach project Think, Talk, Make Art.
I Chose This brought together more than 50 artworks, which had been loaned lo nine primary schools across Vvesl
Cornwall and the Isles of Scilly through Think, T&lk, Make Art, a major schools and teachers, project.
The works on display were selected by children al each of the nine participating schools from the Arts Council
Collection and Cornwall Council Schools Art Collection lo create in-s¢hool galleries. The children involved in
choosing the works made their choices Collaboratively. through ¢areful consideration and lively di￿￿$s1on. ArhNorks
selected spanned the 20th and 21st centuries and encompassed painting, print and sculpture. Artists featured
include Bryan Pearce, Barbara Hepworth, Wilhelmina Barns-Graham, Jeffrey Steele, Alan Lowndes, Victor
Passmore, Richard Bell, Georgia Hayes, Laura Godfrey-lsaacs, Estelle Thompson, Des Hughes and Sue Smith
alongside many others

NEWLYN ART GALLERY LIMITED
TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Of the organisalions who participated, the five mainland schools were Ludgvan, Nancledra, Ne￿Yn, Pensans, and
St Hilary Primary Schools, and on the Isles of Scilly, Sl Agnes, Sl Martins, Sl Mary's, and Tresco Primary Bases.
The satellite in-school galleries were the inspiration for a programme of live and digital CPDL led by artists and
lilera¢y experts. Think, Talk, niake Art was a tw￿year project in partnership with Newlyn Art Gallery & The
Exchange ftjnded by the Paul Hamlyn Foundation Teacher Development Fund.
After the shows extended run, we presented Storm Waming.. What Does Climate Change Mean for Coastal
Communities?
Stomi W&ming was a collaboration between Newlyn Art Gallery & The Exchange, and Focal Point Gallery,
Soulhend-on-sea, which sought to raise awareness of the impact of the climate crisis on coastal communities in
Mount's Bay, and South Essex.
11 includes innovative athorks and engagement projects by Angela ￿ Chan, Rebecca Chesney with Lubaina
Himid, Joey Holder. Andre Kong, Harun Morrison, Ellie Robinson-carter, Something & Son. Heloise Tunstall-
Behrens, and David Vvatkins. New commissions are presented simultaneously at each venue, exploring issues
facing the two coastlines, alongside research into nature-based solutions that are relevant locally and resonate
more widely.
As we moved into 2024, we added a display of A5 artworks by young people from Cape Comwall School and
Penwilh College who were invited lo reflect on the question al the heart of this exhibition.. Whal does climate change
mean for coast31 communities? Presented alongside their work was a di
ital calalo
ue of athorks sent lo Focal
Point Gallery by students in their Essex community. who were asked the same question.
The scale of the climate crisis and the change that needs to happen to counteract its impact often seem
overwhelming and out of reach to individuals, so each gallery presented a diverse range of artworks and resources
that aim lo Inform and inspire. The two galleries shared the ambition lo discover the local impact of climate change
and highlight ways in which we can all take action lo protect our environment.
Newlyn Art Gallery & The Exchange and Focal Point Gallery are each located in coastsl towns ¥hrith important
marine environments, and with dual economies of tourism and fishing. They each serve communities living through
the Cost-of-living Crisis, alongside the pending threat of rising sea levels and unpredictable weather pallems. Part of
this initiative was to highlight work already taking place in Cornwall by environmental organisations such as Clean
Ocean Sailing, Cornwall Imldlife Trust, Cornwall Climate Care, the Environment Agency, Mounts Bay Marine Group.
Plastic Free Penzan￿, and Surfers Against Sewage.
The ambitious project was made possible thanks lo the generous support of the Art Fund through their Reimagine
programme.
Midway through the year we took the decision to redu￿ our main gallery programme cycle from three to
seasons, lo reflect a reduction in available funds, as core costs rose. This shift does not seem lo have had a
negative impact on visitor numbers or expectations and has enabled us lo explore more deeply the themes in our
shows and opportunities lo make links wth local partner organisations.
Through the year we Instigated a drive lo develop new partnerships with trusts and foundations to support our
continuing ambitions around offsite programming and our strategic work in schools. That investment of lime is now
beginning to bear fruit, wth successful awards from the FoOe Foundation, Headley Trust and a number of smaller
funds now having been agreed. These will directly support the retention of staff in learning and digitsl support roles,
with positive impacts on our programming expected to result in the year ahead.
During the year we attracted 40,998 gallery visits, evenly spread across both our sites. This is a 229￿ increase on
the prior year, and reflects a return lo pre-pandemic attendances, which is a very positive sign.
We have seen a positive increase In our social media reach this year (Facebook up by 75.9% and Instagram up by
22.90k compared to the previous yearl. Some of the biggest spikes in reach were due lo announcing a new pop up
café business in our gallery garden at Ne￿yn and another high spike was linked lo launching our new Walking
Tours event using boosted paid advertising.

NEWLYN ART GALLERY LIMITED
TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
We contlnue to seek to reduce our envlronmentsl Impact
We remain strongly committed to reducing our carbon footprint, this year, for the first time, using our public
programme to support wder discussion and action on the climate emergency, through a new partnership with Focal
Point Gallery, Soulhend-on-sea and the Art Fund. Afull description of our exhibition Storm Waming is sel out earlier
in this report.
Our Green Team, its membership comprising of a diagonal slice through our organisalion, including board and
volunteer representslion, has been actively involved in the drive lo include reflections on the climate emergency in
our exhibitions programme. They also Continue to set the agenda in this area, regularly reviewing and updating our
Carbon Reduction A¢lion Plan and monitoring, challenging and ¢elebraling progress when il is made. Our action
plan is a public document, available on our website.
We have continued to take action lo reduce the volume of waste produced through our exhibitions programming,
and developed innovative new approaches to exhibition design, with materials waste reduction In mind.
Whilst a number of exhibitions that look place in 2023124 continued to include loans from the Arts Council
Collection, we have seen a modest reduction in energy consumption, compared to the prior year (see the data
below).
Newlyn Art Gallery & The Exchange combined..
Energy 64 tonnes C02e120131141
Energy 19 lonnes C02e120181191
Energy 39 lonnes C02e120201211
Energy 67 lonne5 C02e120211221
Energy 54 lonnes C02e120221231
Energy 52 Tonnes C02e120231241
The heating system at The Exchange is now at the end of its life. We are currently exploring an electric powered
replacement heating solLJtion, which we expect to have in place from October 2024.
Infrastructure
Much of our work 15 delivered from our two buildings, Newlyn Art Gallery in Newlyn and The Exchange in Penzance.
Both are historic buildings dating from 1895 and the 19308 land significantly extended in the 1950sl respectively.
Both buildings were substantially altered in 2006, as part of major capitsl works linked lo the organisalion's relaunch
in 2007. 16 years on, both buildings now require modest investment to avoid the need for major works in the future,
and to ensure we remain able to respond to the changing needs of our aUdien￿S.
Over the coming rnonlhs, we will develop funding bids lo help us address other Priority works to both builds.
safeguarding these assets for the future.
Health & Safety
The gallery regularly reviews Health & Safety issues across our activities. Health & Safety is a standing item al both
our weekly stsff meeting and regular Board Meetings. We contract the services of Peninsula, who provide expert
advice and conduct an annual site visit to both galleries, developing an action plan of works to be addressed.
Stsffing
The gallery has a team averaging 26 employees during the year, both full and part-time, and is supported by an
expert team of around 45 volunteer5, who are the first point of contact for many of our visitors.
In January 2024 we undertook a restructure of the senior management tier of the organisalion, lo reduce our overall
payroll Costs. This resulted in a 100h reduction in hours for the Dire¢lor and Deputy Director Commercial &
Operations and the post of Deputy Director Programme Curator being made redundant.

NEWLYN ART GALLERY LIMITED
TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
In March 2024 we secured funding from the Foyle Foundation to create two part-lime posts lo support digital
aclivilies. Xavia Smith has joined as Digitsl Marketing Producer, focusing on social media, managing thè gallery's
accounts and creating engaging Content lo promote the gallery's varied activities to a growing online audience.
Adam Goodwn has joined as Digitsl Producer, creating new digital content induding short films, podcasts, and
interpretslion materials for the gallery's exhibitions and events. Both positions are ftjnded for an initial 12-monlh
period.
In April 2024 we secured funding from the Headley Trust. This will enable us to retain Rebecca English in her part-
time role as Programme Curator. Funding ¥MII cover her salary costs for the next three years.
In February 2024, Hall for Comwall gave us notice that they would not be able lo continue to provide contracted
senior financial support lo the organisation beyond July 2024. lan Abrahams has provided excellent support to the
gallery in this role, helping lo strengthen our financial reporting and intemal systems, improve the frequency of our
Museum and Exhibition Tax Relief daims and has provided invaluable mentoring support to Treen Bolton. our in-
house Finance Officer.
Trustees would like to extend thanks to lan, Julien Boast, Chief Executive & Creative Director, Hall for Cornwall, and
the rest of his team for their invaluable Support.
A reciuilment process has been undertaken to appoint an experien¢ed Senior Finance Manager and a strong pool
of applications was received. This rolè has now been filled.
Trustees would like lo thank the staff and volunteers for their eX￿ptIonal work over the period of this report. 11 has
been a very difficult year for the gallery, but everyone has responded with energy and creativity. finding solutions al
every turn.

NEWLYN ART GALLERY LIMITED
TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Financial review
Bulldlng a stsble foundatlon to weather challenges ahead
Over re￿nt years we have managed lo eliminate our historic deficit and build free reserves. in line wf(h our
Reserves Policy. However, as for many organisations, 2023124 has been a challenging year, with increasing costs,
a difficult trading environment and greater competition for funding from all grant awarding bodies. Our response was
swft and repealed throughout the year.
In earfy summer we instigated a reduction in our programme cycle from three seasons lo two seasons each year,
with the change being implemented immediately, resulting in in-year savings. Across th& staffing teams, we
intrOdU￿d a greater emphasis on income generating work, extending their involvement in bid writing, and piloting
inilialives to generate new earned income streams from events and aclivilies, wilhoul compromising our continuing
commitment to removing barriers to engagement for all in our community. We closed our in-house Café operation al
Newlyn, and secured a partnership with a successful, independent café operator, 'Pickle On The Prom, lo lake on
the service for the remainder of the year. This resulted in the elimination of costs associated wth a loss-making
strand of the business, generation of a new stream of income through a lease agreement with the external service
provider, whilst also attracting new audiences lo our core business.
However, these measures were not sufficient in themselves lo correct our course, so in January 2024 we undertook
a restructure lo achieve a reduction in our payroll commitments over the period ahead. This enabled us lo sel an
extremely Cautious budget for 24125, that projects a slabilisalion of our position for the year ahead.
Whilst we believe our financial position has now stabilised, our free reserves have been eroded, which is likely lo
take a number of years to correct.
The National Picture
The sector view is that in spite of the change in government followng the July General Election, the future economic
landscape will remain lesling, wth no increases in funding from govemmenlal sour￿$ anticipated until well into
2026 al the earliest.
Competition for funding from trusts and foundations is likely to remain intense for the foreseeable future, and whilst
inflation rates are returning lo more typical levels, real household disposable income IRHDII per person fell 2.2 per
cent in 2022-23- the largest year-on-year drop in living standards Sin￿ records began in the 1950s The Office for
Budget Responsibility eslimales that RHDI per person grew a modest 0.8 pèr cent in 202>24, but forecast Il lo tske
until 2025-26 to regain ils prè-pandemic peak.
Arts Council England recognises that the next few years will pose challenges for many arts organisalions, including
those in the National Portfolio. They therefore are realisti¢ about the output funded organisalions ¢an be expected
to deliver during this period. Helpfully, in January 2024, Arts Council England announced their commitment to
extend the current NPO funding agreement for a further fourth year, through a simple application process that will
open in Autumn 2024. This will help funded organisations with their medium-lerm financial planning, bringing some
certainly around a significant source of income, through to March 2027.

NEWLYN ART GALLERY LIMITED
TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Key figures and movement of funds
Incoming resources at £776,57612023". £814,744) fell by £38,168.
Total expenditure decreased by £220,223 from £1,224,738 12023110 £1,004,515 in the 2024 year. The total
decrease is represented by an increase lo unreslricled spending of £38,030 and a decrease lo restricted spending
of £258.253. The decrease lo restricted spending refleds the liming of restricted resources that were booked lo
income in previous years on an entitlement to receive basis and that were then deployed in accordance with
restrictions in the following years. The spending of restricted funds contributed to the in-year deficit of £227,939 and
was the key reason for the deficit in the prior year of £409,994. The deficit of £227,939 is split bebNeen an
operational lunreslrictedl deficit of £105,619 before fund transfers, while the deficit relating to reslricled expenditure
against funds held was £122,320.
Reserves policy
The gallery had a cumulative surplus al 31 March 2024 of £72,46312023.' £135,497>. This figure is known as free
reserves and the calculation is shown al note 29. The calculation lakes the total ftjnds and removes the amount that
is either restricted or tied LJP in propety lo arrive al the sum that is freely available tg support the gallery's adivilies.
It also shows the movement in free reserves between years- this year a decrease of £63,034 bebNeen March 2023
and March 202412023.. increase of £5,678).
Whilst the free reserves decreased by £63,034 in the year ended 31 March 2024, the operational deficit on
unrestricted funds was £67,542.
Currently the level of free reserves required to ¢over running costs for 3 to 6 months is £202.834 - £405.668, based
on unrestrided expenditure within unreslrided funds in the period. The gallery ¢urrenlly holds free reserves below
this target level. In order to ensure the organisalion builds sufficient reserves to meet its policy requirements, the
Gallery Director and Trustees are developing a recovery plan as part of its future financial planning. This wll include
undertaking a review of the target free reserves figure. 11 is anticipated that il may lake 3 to 5 years lo rebuild
reserves lo the required levels, so a mulli-yeai plan is needed. The Director and Trustees wll revisit the reserves
policy in the coming year.
Principal funding sources
The gallery's largest single Sour￿ of funding was from Arts Council England, who provided funding In respect of
core cost5. Similady, Cornwall Council currently piovides revenue funding of £18,750, under the existing agreement.
The other two main sources of income are received from trusts and foundations and from earned income sources,
including ticketed entry and lickeled events, cafè and shop revenue, and commercial and private hires of spaces
and equipment.
As reported above, we have been very successful in securing additional, mulli-year restricted funding from other
trusts and foundations. Individual philanthropy remains an important part of the organisalion's income however, the
economic impact of the Covid-19 pandemic continues lo make fundraising generally more challenging.
Risk management
The trustees have a duty lo identify and review the risks to which the charity is exposed and to ensure appropriate
controls are In place lo provide reasonable assurance against fraud and error.
The trustees have conducted a review of the major risks lo which the charity is exposed and systems have been
established lo mitigate those risks. Assessment is reviewed on a regular basis.

NEWLYN ART GALLERY LIMITED
TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Plans for future periods
FUTURE PLANS
The gallery's vision, mission and values. remain rouled in the organisalion's history and the principles of its founder,
the philanlhropisl John Passmore Edwards.
He saw culture as 'a ladder the poor might climb,, to help them rise out of deprivation and override a prevailing
dearth of ambition in a place such as Newlyn at the end of the 19th ￿ntUry.
Our intention is lo reactivate these founding principles, contributing to debate among contemporary arts
organisalions and curators as lo how art and the art institution can perfomi both a societal and civic function and be
relevant lo prevailing social and political issues.
The following values. vision and mission emerged from these processes..
Values:
Change-making
Rooted In place
Part of a global art conversation
Vlslon..
We believe that art can inspire and drive change.
Mission:
To connect Cornwall with visual arts internationally, for the benefit of the community and development of artists.
The impact of the Covid-19 pandemic on communf(ies across Cornwall and further afield, has been huge. The
murder of George Floyd and rise of the Black Lives Maller movement, has also profoundly affected may of thè
communities we work with and support. Our sland in supporting our Immediate communities now seems more
important than ever.
Over the next 12 months our gallery and off-site programmes will continue support four thematic areas of
investigation..
Arts Education
Well-Being
Activism
The Hyper-Local and the Inlernalionally Connected
Our off-site programme will focus on our continuing work in schools across Cornwall, aiming lo achieve strategic
change in the way arts subjects are taught, particularly at primary level. We will present ambitious gallery
programmes by artists including Hew Locke, Chantal Joffe and Abigail Reynolds, often lo offer audiences insights
into unexpected or hidden facets of Cornwall's landscape, and it's contemporary soaal and cultural life.
structure. governance and management
Governing document
The charity is controlled by ils goveming document, the memorandum and articles of association, and consbtules a
limited company, limited by guarantee, as defined by the Companies Act 2006.

NEWLYN ART GALLERY LIMITED
TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The trustees, who are also the directors for the purpose of company law, and who served during the year and up lo
thè dale of signature of the financial stslemenls were".
MRBird
N Scoti
M Barrett
V Button
B Naughton-Rumbo
L Tail
G Buenfeld-murley
H Buckingham
J Bulman
N Wlliams
J Faram
A Ghadiali
A C05ma
O Owczarek
J Twomlow
(Resigned 25 November 20241
(Resigned 25 November 20241
IResigned 25 November 20241
(Resigned 25 November 20241
(Appointed 25 November 2024}
IAppDinted 25 November 2024}
(Appointed 25 November 2024}
(Appointed 25 November 2024)
(Appointed 25 November 2024}
Recruitment and appointment of new trustees
The Board administers the charity and meets bi-monthly or as required. The Finance Committee meets regularly
with the Director and Senior Finan￿ Manager. Other working groups, such as a Public Programme Group meet as
required. Their membership is drawn from the board. Members of the Board a￿ elected al the Annual General
Mèeting and retire by rotation every three years. Eleded members of the Board are Iruslees and d1￿ClorS of the
charity.
Induction and training of new trustees
New Iruslees are providèd with a tour of the organisalion's two siles. where they have an opportunty to meet the
gallery staff and volunteers. They also meet with the Chair and Gallery Director and are briefed on the history and
the future plans ol the organisation. New board members are also required lo sign a Stslemenl of Director's
Obligations and Code of Condud, which helps lo clarify their individual and Collective responsibilities to the
company.
Auditor
In accordance with the company's articles, a resolution proposing that Azels Audf( Services be reappointed as
auditor of the company will be pul al a General Meeting.
Disclosure of infomiation to auditor
Each of the trustees has confirmed that there is no information of which they are aware which is relevant lo the
audit. bul of which the auditor is unaware. They have further confirmed that they have taken appropriate steps lo
identify such relevant information and lo establish that the auditor is aware of such information.
The trustees, report was approved by the Board of Trustees.
Ll Bird IDec 4, 2024 12..42 GMT)
MRBird
Trustee
Date..
0411212024

NEWLYN ART GALLERY LIMITED
STATEMENT OF TRUSTEES, RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2024
The trustees, who are also the directors of Newlyn Art Gallery Limited for the purpose of company law, are
responsible for preparing the Trustees, Report and the financial slalements In accordance with applicable law and
United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel.
Company Law requires the Iruslees lo prepare financial statements for each financial year which give a true and fair
view of the stsle of affairs of the Charity and of the in¢oming resources and application of resour￿$, induding the
income and expenditure, of the charitable ¢ompany for that year.
In preparing these financial statements, the trustees are required to..
select suitable accounting policies and then apply them consistently",
observe the methods and principles in the Charities SORP",
make judgements and eslimales that are reasonable and prudent.,
state whether applicable UK Accounting Standards have been followed, subject to any material departures
disdosed and explained in the financial statements,. and
prepare the financial slalements on the going concern basis unless il is inappropriate lo presume that the charity
will continue in operation.
The trustees are responsible for keeping adequate accounting records that disdose with reasonable accuracy al
any lime the financial position of the charity and enable them lo ensure that the fi'nancial 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.
10-

NEWLYN ART GALLERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF NEWLYN ART GALLERY LIMITED
Opinion
We have audited the financial stslemenls of Newlyn Art Gallery Limited Ilhe 'charity'l for the year ended 31 March
2024 which comprise the stslemenl of financial activities, the balance sheet. the stslemenl of cash flows and notes
1 to 30 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 the UK and Republic of
I￿land (United Kingdom Generally Accepted Accounting Praclicel.
In our opinion, the financial slatemenls..
give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of Its
incoming resources and application of resources, including r(s income and expenditure, for the year then
ended.,
have been properly prepared in accordance wth 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 Stsndards on Auditing IUKI IISAS IUKII and applicable
law. Our responsibilities under those standards are further described in the Audilorts ￿spOnsibl11t￿es for the audit of
the financial statements section of our report. We are independent of the charity 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 wth these requirements. We believe
that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial stalemenls, we have concluded that the Iruslees, use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
Based on the worf( we have performed, we have not identified any material Ljncertainties relating to events or
conditions that. individually Dr collectively, may cast significant doubl on the charity's ability to continue as a going
concern for a period of at least bNelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilibes of the ttuslees wth respect lo going concern are described in the
relevant sedions of this report.
Other inforniation
The other information comprises the information included in the annual report other than the financial slalements
and our audilorfs report Ihereon. The Iruslees are responsible for the other information contained within the annual
report. Our opinion on the financial statements does not cover the other infomiation and. except to the extent
otherwise explicitly slated in our report, we do not express any fomi of assuran￿ conclusion thereon. Our
responsibility is to read the Other information and, in doing so, consider whether the other information is materially
inconsislenl wth the finanaal slalements or our knowledge obtained in the course of the audit, or otherwise appears
to be materially misstated. If we identify such material inconsistencies or apparent m8leri81 misstslemenls, we are
required to determine whether this gives rise to 8 material misstatement in the financial statements themselves. If,
based on the work we have performed, we conclude that there is a material misslatemenl of this other information,
we are required lo report that fact.
We have nothing lo report in this regard.
Oplnlons on other matters prescrlbed by the Companles Act 2006
In our opinion, based on the work undertaken in the course of our audit..
the information given in the Iruslees, report for the financial year for which the financial slalements are
prepared, which includes the directors, report prepared for the purposes of company law, is consistent with the
financial slalements., and
the directors. report included within the trustees. report has been prepared in accordance with applicable legal
requirements.

NEWLYN ART GALLERY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF NEWLYN ART GALLERY LIMITED
Matters on which are required to report by exception
In the light of the knowledge and understsnding of the charity and its environment obtained in the course of the
audit. we have not identified material misststemenls in the directors, report included wthin the Iruslees, report.
We have nothing lo report in respect of the following matters in relation to which the Companies Act 2006 requires
us to report lo you if, in our opinion..
adequate accounting records have not been kept, or returns adequate for our audit have not been re￿iVed
from branches not visited by us,. or
the financial slalements 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 Iruslees were not entitled lo prepare the financial slalements in accordance with the small Companies
regime and take advantage of the small companies, exemptions in preparing the trustees, report and from the
requirement lo prepare a strategic report.
Respon$lbllltles of tru$tee$
As explained more fully in the statement of Iruslees. responsibilities, the trustees, who are also the directors of the
charity for the purpose of company law, are responsible for the preparation of the financial slalemenls and for being
satisfied that they give a true and fair view, and for such intemal control as the Iruslees determine 15 necessary lo
enable the preparation of financial slalemenls that are free from material misslalement, whether due lo fraud or
error. In preparing the financial slatemenls, the trustees are responsible for assessing the charity's ability lo
continue as a going Concern, disclosing, as applicable, matters related lo 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 altemative but to do so.
Audltorfs rasponslbllltles for tho audlt of the flnanclal statoments
Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from
material misslalemenl, whether due to fraud or error, and to issue an audilorfs report that includes our opinion.
Reasonable assurance is a high level of assurance bul is not a guarantee that an audit conducted in accordance
with ISAS IUKI will always detect a material misstslemenl when il exists. Misslalemenls can arise from fraud or
error and are considered material if. individually or in the aggregate, they could reasonably be expected lo influence
the e¢onomi¢ decisions of users taken on the basis of these financial slatemenls.
A further description of our responsibilities is available on the Financial Reporting Council's website al.. htlps'.11
www.frc.org.uklaudilorsresponsibilities. This description forms part of our auditor's report.
12-

NEWLYN ART GALLERY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF NEWLYN ART GALLERY LIMITED
Extent to which the audit was considered capable of detecting irregularities, including fraud
Itregularilies, Induding fraud, are Instances of non-compliance with laws and regulations. We design procedures in
line wth our responsibilities, outlined above and on the Financial Reporting Council's website, lo delect material
misslalements in respect of irregularities, including fraud.
We obtain and update our understsnding of the entity. ils aclivilies. ils control environment. and likely future
developments, including in relation to the legal and regulatory framework applicable and how the entity is complying
with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes
consideration of the risk of acts by the entity that were contrary lo applicable laws and regulations, in¢luding fraud.
In response to the risk of irregularities and non-complian￿ with laws and regulations, including fraud, we designed
procedures which induded..
Enquiry of management and those charged with govemance around actual and potential litigation and
claims as well as actual, suspected and alleged fraud.,
Reviewng minutes of meetings of those charged with governance.,
Assessing the extent of compliance with the laws and regulations considered to have a direct material
effect on the financial stslemenls or the operations of the enlily through enquiry and inspection,"
Reviewing financial stslemenl disclosures and testing lo supporting documentation lo assess compliance
with applicable laws and regulations.,
Performing audit work over the risk of management bias and override of controls, including lesling of
journal entries and other adjustments for appropriateness. evaluating the business rationale of signifi¢anl
transactions outside the normal course of business and reviewng accounting estimates for indicators of
potential bias.
Because of the Inherent limitations of an audit, there is a risk that we will not detect all irregularities, including thosè
leading to a matèrial missl8temenl in the financi81 slalements or non-compliance wf(h regulation. This risk
increases the more that compliance with a law or regulation is removed from the events and transactions reflècted
in the financial slalements. as we will be less likely lo become aware of instances of non-compliance. The risk of
not detecting a material misslatemenl resulting from fraud is higher than for one resulting from error. as fraud may
involve collusion, forgery. intentional omissions, misrepresentslions, or the override of internal control.
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 stale to the charitable company's
members those matters we are required lo stsle to them in an auditorfs 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.
Matthew Ivebb (Dec 10. 2024 16..36 GIITI
Matthew Webb Isenior Statutory Auditor)
for and on behalf of Azets Audit Services
1011212024
Chartered Accountants
Statutory Auditor
Woodlands Court
Truro Business Park
Truro
Cornwall
United Kingdom
TR4 9NH
13-

NEWLYN ART GALLERY LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
Current financial year
Unrestrlcted Endowment Restrlcted
funds
funds
funds
deslgnated
2024
Total
Totsl
2024
2024
2024
2023
Notes
Income from:
Donations and legacies
Charitable adivities
Other trading activities
Investments
62,732
455,350
188,962
671
4,343
62,953
3,565
67,075
518.303
190.527
671
67,888
557,275
186.370
3,211
Total income
705,715
70,861
776,576
814,744
Ex
endlture on:
Raising funds
167,300
13
167,313
164,270
Charitable activities
644,034
193,168
837,202
1,060,468
Total expenditure
811,334
193,181
1,004,515
1,224,738
Net outgolng resources before transfe
1105,6191
1122,3201 1227,939} 1409,9941
Gross transfers between funds
25
38,077
138,0771
Net expenditure for the yearl
Net movement in funds
{67,5421
1160,3971 1227,939} 1409,9941
Fund balances al 1 April 2023
2,628,444
527,373
931,890
4,087,707
4,497,701
Fund balances at 31 March 2024
2,560,902
527,373
771,493
3,859,768
4,087,707
The ststemenl of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing aclivilie5.
The statement of financial activities also complies with the requirements for an income and expenditure account
under the Companies Act 2006.
14-

NEWLYN ART GALLERY LIMITED
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
Prior financial year
Unrestrlcted Endowment Re$trlcted
funds
funds
funds
deslgnated
2023
Totsl
2023
2023
2023
Notes
Income from:
Donations and legacies
Charitable adivities
Other trading activities
Investments
66,960
453,760
182,381
3,211
928
103.515
3.989
67,888
557,275
186.370
3,211
Total income
706,312
108,432
814,744
Ex
endlture on:
Raising funds
163,058
1,212
164,270
Charitable activities
610,246
450,222
1,060,468
Total expenditure
773,304
451,434
1,224,738
Net outgoing resources before transfers
166,9921
1343,002} 1409,9941
Gross transfers be￿een ftjnds
2S
123,352
1123,352}
Net expenditure for the yearl
Net movement in funds
56,360
1466,354) 1409,9941
Fund balances at 1 April 2022
2,572,084
527,373
1,398,244
4,497,701
Fund balances at 31 March 2023
2,628,444
527,373
931.890 4,087,707
15-

NEWLYN ART GALLERY LIMITED
BALANCE SHEET
ASAT31 MARCH 2024
2024
2023
Notes
Flxed assets
Tangible assets
Heritage assets
Investments
3,247,496
527,373
82,117
3,342,765
527,373
82,117
14
3,856,986
3,952,255
Current assets
Stocks
Debtors
Cash at bank and in hand
16
17
26,000
96,367
66,638
32,750
182,163
109,163
189,005
324,076
Credltors: amounts falllng due wlthln
one year
18
194,7181
180,6831
Net current assets
94,287
243,393
Total assets leys current liabilities
3,951,273
4,195,648
Creditors- amounts falling due after
more than one year
19
191,5051
1107,9411
Net assets
3,859,768
4,087,707
Income funds
Restricted funds
Endowment funds- designated
Unrestrided funds
25
771,493
527,373
2,560.902
931,890
527,373
2.628,444
3,859.768
4,087,707
These financial slalements have been prepared in accordance with the provisions applicable lo companies subject
to the small companies regime.
The financial statements were approved by the Trustees on
0411212024
ird.IDec 4,2024 12..42 GMT)
o 4, 2024 17..26 GMT)
MRBird
Trustee
N Scoti
Trustee
Company Registration No. 01310070
16-

NEWLYN ART GALLERY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
2024
2023
Notes
Cash flows from operatlng actlvltles
Cash absorbed by operalions
21
121,9631
1344,624}
Invgstlng actlvltl&s
Purchase of tangible fixed assets
Interest received
{11,1891
671
166,0141
3,211
Net cash used in investing activities
{10,5181
162,8031
Financing activities
Repayment of bank loans
110,0441
110,0251
Net cash used in financing activities
{10,0441
110,0251
Net decrease in cash and cash equivalents
{42,5251
1417,452)
Cash and cash equivalents at beginning of year
109,163
526,615
Cash and ¢a$h 9qulvalents al ond of yoar
66,638
109.163
17-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Accounting policies
Charity inforniation
Newlyn Art Gallery Limited is a charitable company limited by guarantee incorporated in England and Wdles.
The registered office is The Exchange, Princes Street. Penzance, Cornwall, TR18 2NL, United Kingdom.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Companies Act 2006 and 'A¢counting
and Reporting by Charities.. Slalement of Recommended Practice applicable to charities preparing their
accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland
{FRS 1021 leffeclive 1 January 20191". The charity is a Public Benefit Entity as defined by FRS 102.
The finanaal statements are prepared in sterfing, which is the functional currency of the charity. Monetary
amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention, modified to indude
investments at fair value and heritage assets al valuation. The prinupal accounting policies adopted are set
out below.
1.2 Going concern
The financial slalements have been prepared on the going concern basis. The Board has considered a period
of twelve months from the dale of approval of the financial slalemenls and has a reasonable expectation that
the charitable ￿MpanY has adequate resour￿$ lo continue in operational existen￿ for the foreseeable
future. There are no material uncertainties which may create significant doubl over the Charitable company's
ability to continue as a going concern. The Board however recognises that the charity enters a period of
some economic uncertainly with a low level of free reserves, and that it is important to increase income and
continue to actively manage Costs.
1.3 Charltable funds
Unrestricted funds are available for Ljse at the discretion of the trustees in furtherance of their charitable
objectives.
Reslricled funds are subject to specific conditions by donors as lo how they may be used. The purposes and
uses of the restricted funds are sel out in the notes to the financial slatemenls.
Endowment ftjnds, Comprising a collection of paintings and artefacts held for the benefit of the charity, are
subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charty is legally enlilled to il after any performance conditions have been mel,
the amounts can be measured reliably. and il is probable that income will be received.
Cash donations are recognised on re￿ipt. Other donations are recognised once the charity has been notified
of the donation, unless perfomiance conditions require deferral of the amount. Income tax recoverable in
relation to donations received under GiftAid or deeds of covenant is recognised at the lime of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending dislribulion,
the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a
ntingent asset.
18-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
Accountlng pollcles
Icontlnuedl
Income from govemmenl and other grants is recognised when the charity has enlillemenl lo the funds, any
perfomiance conditions attached lo the grant have been mel, il is probable that the income will be received
and the amount can be measured reliably and is not deferred.
Income from other charitable activities is recognised when the goods or services have been provided.
Interest income is recognised using the effective interest rale method.
Trading income is recognised when the goods have been provided, typically al the point of sale, or as
services are performed. Rentsl income is recognised on a straight line basis over the temi of the rentsl
agreement.
1.5 Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the
charity lo that expendV(ure, il is probable that a transfer of economic benefits will be required in selllemenl and
the amount of the obligation can be measured reliably. Expenditure is accounted for on an a¢cruals basis and
has been classified under headings that aggregate all cost related to the category. INhere costs cannot be
direcuy attributed to particular headings they have been allocated to activities on a basis consistent with the
use of resources.
Costs of raising funds are the costs of trading for fundraising purposes.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and
services for its beneficiaries. 11 includes both costs that can be allocated directly to such activities and those
costs of an indirect nature necessary lo support them.
Support costs comprise the costs of governan￿ including audit fees and finance costs. These are wholly
allocated to charitable activities on the basis that they are incurred in support of the charitable company's
pursuance of ils charitable activities.
1.6 Tanglble flxed assets
Tangible fixed assets are initially measured al Cost and subsequently measured al Cost, nel of depreciation
and any impairment losses.
Depreciation Is recognised so as lo write off the cost of assets less their residual values over their useful lives
on the following bases".
Freehold propety
Leasehold land and buildings
Tools and equipment
Computer equipment
20A on cost
2% oncost
100A on cost
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale
proceeds antl the carrying value of the asset, and is recognised in the statement of financial activities.
19-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
Accountlng pollcles
Icontlnuedl
1.7 Herltage assets
Heritage assets are measured at valuation and comprise the collection of arbNorks held in support of the
Gallery's primary Dbjective of increasing knowledge, understanding and appreciation of art. These are
primarily paintings and drawings, with some prints and medals.
The majority are housed at The Exchange, Princes Street, Penzance TR18 2NL and the remainder al Penlee
House Gallery and Museum, Morrab Road, Penzance, TR18 4HE. These works are not for sale and comprise
the Pemianenl Collection. Langley Medals and all rtems on loan to Penlee House Gallery and Museum.
The trustees consider the Heritage assets to have indetemiinate lives and a high residual value, hence the
trustees do not Consider it necessary to charge depreciatlDn.
1.8 Fixed asset investments
The Gallery holds two collections of works as investments, the Reuss Collection and Reserve Collection.
These are available for sale and held primarily for investment gain or income generation and thus cannot be
classified as heritage assets. These investments are measured at fair value.
1.9 Impairment of fixed assets
Al each reporting end dale, the charity reviews the carrying amounts of ils tangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment
loss lif any).
1.10 Stocks
Stocks are slated at the lower of cost and eslimaled selling price less costs to complete and sell.
1.11 Cash and cash equlvalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid
investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown
thin borrowngs in current Iiabililies.
1.12 Financial instruments
The charity has elected lo apply the provisions of Section 11 'Basic Financial Instruments, and Sedion 12
'Olher Financial Instruments Issues, of FRS 102 to all of ils finanaal inslrumenls.
Financial instruments are recognised in the charity's balan￿ sheet when the Charity becomes party to the
contractual provisions of the inslrumenl.
Financial assets and liabilities are offset, with the net amounts presented in the financial stalemenls, when
there is a legally enforceable right lo sel off the recognised amounts and there is an intention lo settle on a
nel basis or to realise the asset and settle the liability simultaneously.
BasiTC financial assots
Basic financial assets, which include debtors and cash and bank balances, are initially measured at
transaction pri￿ including Iransa¢lion costs and are subsequently carried al amortised cost using the
effective interest method unless the arrangement constilules a financing transaction, where the transaction is
measured at the present value of the future receipts discounted at a market rate of interest. Financial assets
classified as receivable within one year are not amortised.
-20-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
Accountlng pollcles
Icontlnuedl
Basic financial liabilities
Basic finanaal liabilities, including creditors and bank loans are initially recognised at transaction price unless
the arrangement constitutes a financing transaction, where the debt instrument is measured al the present
value of the future payments discounted at a market rale of interest. Financial Iiabililies dassilied as payable
thin one year are not amortised.
Debt instruments are subsequently carried al amortised cost, using the effective interest rale method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of
operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one
year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at
transaction price and subsequenuy measured al amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial Iiabililies are derecognised when the charity's contractual obligations expire or are discharged or
cancelled.
1.13 Taxation
The charity is exempt from corporation tax on its charitsble activities.
1.14 Employee beneflts
The cost of any Ljnused holiday entitlement is rewgnised in the period in which the employee's services are
received.
Temiination benefits are recognised immediately as an expense when the charity is demonstrably committed
lo lerminale the employment of an employee or to piovide lerminalion benefits.
1.15 Retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable lo the
charitsble company's pension scheme are charged to the Statement of Financial Activities in the period lo
which they relate. Differences be￿een contributions payable in the year and contributions actually paid are
show wthin creditors in the balan￿ sheet.
The charitable company also makes payments to a defined benefit scheme, the Pension Scheme for
Administralion and Technical Staff in the Arts I'the Scheme"), which has ceased to accrue pension benefits
bul which has a deficit in its fund. The charitable company remains liable for ils portion of the deficit in the
Scheme funds. The assets of the Scheme are administered by a trustee, in a fund independent from those of
the charitable company.
The Scheme is a mulli-employer scheme and the charitable company is unable to identify ils share of the
undedying assets and liabilities. There is a funding agreement in place lo eliminate that element of the deficit
in the Scheme which is relative to the charitsble company. The funding liability is reassessed based on
triennial aduarial valuations, with the last one being 2022.
A liability has been recognised in the balance sheet equal lo the nel present value of the future deficit
reduction payments. The payments are discounted to present value using the rnarket yield on high quality
corporate bonds which currently equates lo 4.7°k 12023.. 4.9°hl. The pension costs charged to profit or loss
are the finance costs representing the unwinding of the discount. Further details relating to the pension
schemes are sel out in note 24.
1.16 Lease5
Rentals payable under operating leases, including any lease incentives received, are charged as an expense
on a straight line basis over the term of the relevant lease.
21

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
Critical accounting estimates and judgements
In the application of the charitable Company's accounting policies, the Iruslees are required lo make
judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not
readily apparent from other sources. The eslimales and associated assumptions are based on historical
experience and other factors that are considered lo be relevant. Actual results may differ from these
eslimales.
The eslimales and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimale is revised where the revision affects only that
period, or in the period of the revision and future periods where the revision affects both current and future
periods.
The eslimales and assumptions which have a significant risk of causing a material adjustment to the
Carrying amount of assets and liabilities include the Inputs and eslimales used in determining the fair value
of investments and heritage assets and the estimates used in determining the carrying amount of the defined
benefit scheme liability, including discount rate.
Donatlons and legacles
Unrestricted Restricted
funds
funds
Total Unrestii¢ted Rèstricted
funds
funds
Total
2024
2024
2024
2023
2023
2023
Donations induding
admissions
Subsciiptions
60,776
1,956
4,343
65,119
1,956
64,534
2,426
928
65,462
2,426
62,732
4,343
67,075
66,960
928
67,888
-22-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
Charitable activitie5
Charltsble Charltable
Actlvltles
Actlvltles
2024
2023
Perf0rrnan￿ related grants
Other income
450,593
67,710
496.438
60,837
518,303
557,275
Analysis by fund
Unrestricted funds
Restricted funds
455,350
62,953
453,760
103,515
518,303
557,275
Perfomiance related grants
Arts Council of England
Other grant income
Cornwall Council
Trusts and Foundations Project grants
Trusts and Foundations Capital Works grants
Trusts and Foundations Revenue Grants Receivable
368,417
19,903
18,750
43,400
368,435
89,827
28,750
4,426
5,000
123
450,593
496,438
Other tradlng actlvltles
Unrestrlcted Restrlcted
funds
funds
Total Unrestrl¢ted Restrl¢ted
funds
funds
Total
2024
2024
2024
2023
2023
2023
Fundraising events
Shop and café income
Rental and other trading
income
2,970
154,701
3,565
6,535
154,701
386
161,025
4,020
4,406
161,025
29,291
29,291
20,970
1311
20,939
Other trading activities
186,962
3,565
190.527
182.381
3.989
186,370
-23-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
Investments
Unrestricted Unrestricted
funds
funds
2024
2023
Interest receivable
671
3,211
Ral$lng fund$
Unrestrlcted Restrlcted
funds
funds
Total Unrestricted
funds
Restricted
nds
Total
2024
2024
2024
2023
2023
2023
Trading costs
Purchases
stock movement
Cleaning
Utilities and property
maintenance
Consumables
Equipment hire
staff costs
71,465
6,750
14,755
71,478
6,750
14,755
90,185
13,0061
473
1381
90,147
{3,0061
473
776
4,552
3,040
65,962
776
4,552
3,040
65,962
1,466
7,720
1,969
64,251
1,466
8,970
1,969
64,251
1,250
Trading costs
167,300
13
167.313
163.058
1,212
164,270
167,300
167,313
163,058
1,212
164,270
-24-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
Charitable activitie5
Charitable Charitable
Activities
Activities
2024
2023
Stsff costs '
Depreciation and impaimienl
Telephone
Postage
Advertising
Utilities and property maintenance
Repairs and renewals
Event costs, (excluding stsff costs)
Education ' lexduding staff costs)
Exhibitions ' lexcluding staff costs)
Sundry expenditure
Travel and subsistence
Consultsncy, legal and professional
Bank charges
Irrecoverable VAT
Hire of equipment
Insurance
Olhei charitable expenditure
477,883
106,456
4,331
3,387
10,017
38,886
23,155
7,299
29,400
39,868
5,620
10,976
5,284
4,236
10,829
4,130
10,039
1,117
512,126
106,091
4,826
2,649
28,063
66,210
52,625
17,089
52,208
107,961
821
11,603
17,035
5.794
20,807
3,904
13,764
240
792,513 1,023,816
Share of support costs (see note 91
Share of governance costs (see note 91
3,035
41,654
2,580
34,072
837,202 1,060,468
Analysis by fund
Unrestricted funds
Restricted funds
644,034
193,168
610,246
450,222
837,202 1,060,468
Included within staff costs are the following..
Events stsff costs
Gallery & exhibition staff and technicians Costs
Education staff and technicians costs
Other staff costs
£26,695
£92.218
£59,287
£299,483
12023. £41,502)
12023.. £123.1481
12023.. £51,8261
12023.. £295.6501
Totsl staff costs
£477.683
12023: £512.1261
-25-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
Support costs
Support Governanco
Costs
Costs
2024Support costs Govemance
costs
2023
Interest payable
3,035
3,035
2,580
2,580
Auditor's remuneration
Auditor's remuneration
for non-audil work
Legal and professional
17,900
17,900
12,750
12,750
5,652
18,102
5,852
18,102
7,324
13.998
7,324
13,998
3,035
41,654
44,689
2,580
34,072
36,652
Analysed between
Charitsble activits'es
3,035
41,654
44,889
2,580
34,072
36,652
10 Tru$lg9$
None of the trustees lor any persons connected with them) received any remuneration or benefits from the
charity during the year nor for the year ended 31 March 2023.
During the year no trustees were reimbursed for expenditure12023.' £nill.
11
Employees
The average monthly number of employees during the year was".
2024
Number
2023
Number
Employees
26
31
Employment costs
2024
2023
Wages and salaries
Social security costs
Olhei pènsion costs
477,793
32,071
33,781
475,419
31,142
69,816
543,645
576,377
The pension costs include £nil12023." £46,432) relating lo an increase in the defined benefrt scheme liability
following the most recent triennial valuation (see note 231.
-26-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
11 Employees
Icontlnuedl
The number of employees whose annual remuneration was more than £60,000
is as follows..
2024
Number
2023
Number
£60,001 to £70,000
12 Taxatlon
The charity is exempl from lax on income and gains falling within section 505 of the Taxes Act 1988 or section
252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied lo ils charitable objects.
13 Tangible fixed assets
Freehold
property
Leasehold
land and
buildings
Tools and
equipment
Computer
equipment
Totsl
Cost
Al 1 April 2023
Additions
2,738,404 1,961,127
95,255
11,189
88,960
4,883,746
11,189
Al 31 March 2024
2,738,404 1,961,127
106,444
88,960
4,894,935
Depreclatlon and Impalment
Al 1 April 2023
Depreciation charged in the year
775,136
54,877
627,322
39,222
65,176
5,665
73,347
6,694
1,540,981
106,458
Al 31 March 2024
830,013
666,544
70,841
80,041
1,647,439
Carrying amount
Al 31 March 2024
1,908,391
1,294,583
35,603
8,919
3,247,496
Al 31 March 2023
1,%3,268 1,333,805
30,079
15,613
3,342,765
Contained wthin Freehold Property is The Engine Room. The Engine Room is a redeveloprnenl of
educational and hire space with The Exchange gallery allO￿nn9 a multi-purpose facility with up-to-date IT
communications equipment lo further enhance the educational aims of the charity while also generating
additional streams of earnèd income from workshops and hires. The Engine Room was funded with generous
support from Arts Council England, The Garfield Weston Foundation and the Bernard Sunley Foundation.
The lease held on Newlyn Art Gallery was renegolialed in 2006. The revised lease term is 99 years. The
freehold of The Exchange Building was purchased in July 2006 with ftjnds secured from a number of grant
making bodies. The principal funders were ERDF Objective 1 and Arts Council England.
-27-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
14 Heritage assets
At 1 April 2023 and at 31 March 2024
527,373
In 1979, John Halkes, then Director of Newlyn Art Gallery, initiated the first serious review of Newlyn School
painting between 1880 and 1900. By 1985 his work had resulted in a major showng al the Barbican Art
Gallery in London, while in Ne￿yn a second survey show dea￿ wth 1900 10 1930. Halkes sel out lo begin a
collection, attracting gifts from collectors and heirs and soliciting bequests from the Gallery's supporters.
The Gallery was built in 1895 and has been showing work by artists attracted to West Cornwall ever since
then.. under Halkes, Directorship il was established as a publicly ftjnded Contemporary art gallery. It has
since achieved a high reputation for its programme of exhibitions and education work but the idea of building
a collection was IDSt along the way. It proved an impossible task with extremely limited staff and resources,
and while a concentration upon current work was a condition of revenue funding.
The small group of art works John Halkes acquired are now on loan to the Penlee House Museum & Art
Gallery in Penzance, where a specialisalion in Ne￿yn School and related art has developed, and where this
work is almost always on view. Other works given or bequeathed over the years have induded works on
paper by Charles Breaker and Bryan Wnler.
The Gallery's external valLJer, David Lay FRICS, carried out a full valuation of the collection of artworks as at
31 March 2020. The valuation was based on commercial markets, including recent transaction information
from auctions where similar types of paintings are regularly being purchased. The trustees are of the
opinion that there was no material changè In fair value during the year to 31 March 2024.
This valuation represents a significant estimate and the estimation uncertainties inherent in this valuation
have a significant risk of resulting in a material adjuslmenl to the carrying amount of these assets in a future
period.
16 Flxed asset Investments
Other
investments
Valuatlon
Al 1 April 2023 & 31 March 2024
82,117
Carrying amount
Al 31 March 2024
82,117
Al 31 March 2023
82,117
16 Stocks
2024
2023
Stock
26,000
32,750
-28-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
17 Debtors
2024
2023
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
2,388
2,964
7,903
171,296
93,979
96,367
182,163
18 Credltors: amounts falllng due wlthln one year
2024
2023
Notes
Bank loans
Other tsxation and social security
Trade creditors
Other creditors
Accruals and deferred income
20
10,045
9.295
13,562
16,326
45,490
10,025
8,055
33,418
9,393
19,792
94,718
80,683
Included in Other Creditors is the current element of the net present value of the future pension deficit
reduction payments £11,14812023.' £9,447) as required by FRS 102. (See note 241.
19 Creditors: amounts falling due after more than one year
2024
2023
Notes
Bank loans
Other Creditors
20
28,349
63,156
38,413
69,528
91,505
107,941
Other creditors represents the non-current portion of the net present value of future pension deficit reduction
payments as required by FRS 102. (See note 241.
20 Loan$ and ovgrdrafts
2024
2023
Bank loans
38,394
48,438
Payable within one year
Payable after One year
10.045
28,349
10,025
38,413
-29-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
20 Loans and overdrafts
Icontlnuedl
Lloyds Bank pl¢ holds a first legal charge over the freehold land and buildings at The Exchange, Princes
Street, Penzance.
In addition to the charge disclosed above, the Arts Council England holds a debenture secLJring £1,200.000
and all other monies due or to become due from the charitable company to the Art Council England. This is
secured by a charge over the freehold property in PenZan￿ and the leasehold property in Newlyn.
The loan is repayable in 120 consecutive monthly installmenls represenb'ng principal and interest.
The rale of interest payable on the loan during the Capped Rate Period, which ran until 3 July 2022, was the
lower of..
813.600h over Base Rate per annum, and
bl the Capped Rate. being 4.950h.
Following the end of the Capped Rale Period, the rate of interest payable is 3.10% over Base Rale per
annum.
21 Cash generated from operations
2024
2023
Deficit for the year
1227,9391
1409,9941
Adjustments for..
Investment income recognised in statement of financial aclivi(ies
Depreciation and impairment of tangible fixed assets
16711
106,458
13,2111
106.091
Movements in working capital..
Decreasellincreasel in stocks
Decreasellincreasel in debtors
Increaselldecreasel in creditors
6,750
85,796
7,643
{3,0051
122,0021
112,5031
Cash absorbed by operatlons
121,9631
1344,6241
22 Analysis of changes in net funds
At 1 April 2023
Cash flowsAt 31 MarGh 2024
Cash al bank and in hand
109,163
142,5251
66,638
Loans falling due within one year
Loans falling due after more than one year
110,0251
138,4131
1201
10,064
110.0451
128,3491
60,725
132,4811
28,244
30-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
23 Retirement benefit schemes
Defined contribution schemes
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the
scheme are held separately from those of the charty in an independently administered fund.
The charge to profil or loss in respect of defined contribution schemes was £25,13412023". 21,9681.
Al the end of the year the amount outstanding for pension contributions wa5 £2,98912023". £nill.
Defined benefit scheme
The charitable company contributed to a defined benefit scheme., the"Pension Scheme for Administration and
Technical Staff in the Arts up lo 14 December 2012 when the scheme was closed ID future accrual. The
charitable company remains liable for ils portion of the deficit in the scheme funds. The assets of the scheme
are administered by a Iruslee, in a fund indèpendent from those of the ¢haril8ble company.
The scheme is a mulli-employer scheme and the charitable company is unable to identify ils share of the
undedying assets and liabilities. As noted in the Accounting Policies there is a funding agreement in place lo
eliminate that element of the deficit in the scheme which is relative to the charitable company.
The scheme is classified as a 'last-person standing arrangement.. Therefore, the company is potentially liable
for other participating employers, obligations if those employers are unable lo meet their share of the scheme
deficit following withdrawal trom the scheme. Participating employers are legally required to meet their share
of the scheme deficit on an annuity purchase basis on withdrawal from the Scheme.
The triennial valuation as al 31 March 2022 was agreed on 23 June 2023 and eslimaled a funding shortfall of
£2.947.000 12019 valuation.. £2.299.0001. An updated recovery plan was approved at the same time lo
a￿OUnt for the updated valuation as well as a decrease in the number of remaining participating employers.
Under the updated recovery plan Ne￿yn Art Gallery. as one of several employers responsible for funding this
shortfall, has agreed lo pay monthly contributions of £1,220 from 1 July 2023 to 31 March 2031 Iprevious
plan.. £779 from 1 July 2017 10 31 May 20271.
A liability has been recognised in the balance sheet equal to the nel present value of these future deficit
reduction payments. The payments are discounted lo present value using a yield curve dèrived from AA rated
bonds in the iBoxx sterling corporate bond index. this gave a rale of 4.70h12023." 4.9%). The nel present value
of the sum of the remaining monthly wntributions as at 31 Mar¢h 2024 is £74,304 12023.. £78.9751 and this
has been recorded as a liability in the balance sheet with £11,14812023'. £9.4471 in creditors falling due within
one year and £83,15612022'. £69,528) in creditors falling due after one year.
31

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NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
28 Operating lease commitments
Al the reporting end dale the charity had oulslanding commitments for future minimum lease payments under
non-cancellable operating leases, which fall due as follows..
2024
2023
Ilhin one year
Be￿een two and five years
4,240
5,503
2,707
4,657
9,743
7,364
37-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
29 Free reserves
01 funds held al the year end, £2,560,90212023'. £2,628,444) were unreslricled. Reslri¢led funds comprise
£771,493 12023.. £931,890) consisting of the funds disclosed in note 25. Free reserves are that part of the
charity's unrestricted funds that are freely available to spend on any of the charity's purposes. At 31 March
2024 the charity's free reserves were in surplus by £72,46312023.' £135,497).
Free reserves are calculated as follows..
2024
2023
Total funds al 31 March
3,859,768
4,087,707
Less. endowment ftjnds
Less.. Freehold property
Less. Leasehold propety
Less.. Tools and equipment
Less. Computer equipment
Less.. Tea, Cake & Art reslricled fund
Less.. Jerwood reslrided fund
Less. Arts Council Collection restricted fund
Less.. Weston Culture restricted fund
Less.. National Portrait Gallery Project
Less.. Kickstarter grant
Less.. JAFMO
Less. Paul Hamlyn
Less. Peer lo Peer
Less.. ACC Workforce Development Grant
1527,3731
11,908.3911
11,294,583)
135.6031
18,9191
112,4361
1527,3731
{1,963,2681
{1,333,8051
130,0791
115,6131
6,535
112,4561
25,694
{11,0911
110,2921
289
146,1671
13.2931
131,3091
72,463
135,497
As the Arts Council reslricled ftjnds of £759,05712023'. £849,817) relate lo the freehold and
leasehold properties that have been deducted in arriving al the free reserves above, this restrided
fund has not been separately exduded in the analysis above.
Movement in Free Reserves-
2024
2023
Balance at start of year
135,497
129,819
Fixed asset additions
Fixed asset depreciation in the year
Surplus I (Deficill for the year
Less. revaluation of heritage assets
Decreasellincreasel in restricted funds lexcl. propetyl
111,1891
106.458
{227,9391
166,0141
106,091
1409,9941
69,636
375,595
Balan￿ at end of year
72,463
135,497
38-

NEWLYN ART GALLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS {CONTINUED}
FOR THE YEAR ENDED 31 MARCH 2024
30 Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
Aggregate compensation
173,637
144,745
39-