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2023-03-31-accounts

Charity no. 290575

Design West Report and Audited Financial Statements 31 March 2023

Design West

Reference and administrative details

For the year ended 31 March 2023

Charity number 290575
Registered office and Architecture Centre
operational address 16 Narrow Quay
Bristol
BS1 4QA
Trustees The trustees who served during the year and up to the date of this report
were as follows:
N Childs Chair
G Eddy
N Fairham Appointed 21 July 2023
S Hilton
C Kwiatkowski
S Loyn
E Marco Burguete
C Mckeivor Secretary - Appointed 1 February 2023
D Murphy
T Russell Resigned 14 April 2023
H Salih
D Waterhouse
Bankers Natwest Bank plc
45 / 49 Broadmead
Bristol
BS1 3EU
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

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Design West

Report of the trustees

For the year ended 31 March 2023

The Board of Trustees presents its annual report and financial statements for Design West for the year ended 31 March 2023. The financial statements comply with current statutory requirements, the constitution and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

INTRODUCTION

Over the past year the charity has continued our growth trajectory and transformation programme. Following the renovation of our harbourside venue in 2021, in 2022, we completed work to the first and second floors. In Summer 2022 we worked with support from Vinci Foundation and Clothmakers Foundation to improve our education space and open up our venue for public programmes. We also began to use the café bar for education and public engagement.

The year saw the charity expand our regional work. We commenced Design Review services with Exeter City Council and Cornwall, worked in 14 regions and delivered our first public programme in Exeter.

In September 2022, the charity completed a significant milestone, after three years of planning, the charity commission approved our conversion to a Charitable Incorporated Organisation. This modernisation of our structure was followed by the Trustees voting to change the legal name of the charity from Bristol Centre for the Advancement of Architecture Limited to Design West.

In December 2022, we were named Best UK Non-Profit Organisation at the Thornton Education Trust Awards at the Building Centre in London. At the end of the financial year, we also set out to recruit a new chair of Trustees, following six years of loyal service from our current chair Nicholas Childs.

It is testament to our outstanding team, Board, collaborators, audiences, funders and supporters, that the charity again recorded a year of growth, increasing our impact on the world around us.

1) OBJECTIVES & ACTIVITIES

The design of our built and natural environment has a profound impact on all of our lives on a daily basis. Our health and wellbeing, our economy and our climate is all dependent on the design choices we make. Everyone in our society is impacted by the quality of the homes we live in, by the design of our commutes and our communities, by the design of our schools, hospitals, our blue and green spaces, and the public realm we share. Globally, it is estimated that the built environment is responsible for 40% of carbon emissions. In the context of a climate emergency, Design West has a key role to play in advocating for sustainable architecture and design.

Founded in 1996, Design West is a centre of excellence for design and placemaking. Our mission is to inspire the public, politicians and professionals across the built environment to design, better, healthier, places to live, work and relax. We learn from our heritage to build our future. Our objects are to advance education and research in, and to foster public appreciation of, architecture and its related disciplines. As a registered charity we put design and social value at our heart.

Our programmes inspire, inform and involve people in the design of the world around them. We work across sectors and society to innovate, co-design and challenge. We are international and local, bringing the best people together to shape better places. We are, collaborative, creative, expert, independent, open and visionary.

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Design West

Report of the trustees

For the year ended 31 March 2023

We seek to achieve our objectives through:

Our independent Design Review service supports local authorities and developers to shape better places across the South West. This service brings together the best international and national expertise to shape the design of developments for public benefit, raising the bar for architecture, landscape, and urban design, and promoting a culture of good design in the region.

We bring people together to co-design and vision great places. We collaborate with public and private sectors, engaging citizens with opportunities to influence the design of their place.

Public Engagement

• Strategy From housing to the climate crisis, we address the challenges of today, working with local government to translate ambition into deliverable visions.

2) ACHIEVEMENTS & PERFORMANCE

During the year our activities reached over 500,000 people.

Public Programme

Audiences began to return to our programmes post-pandemic:

Digital Audiences

Design & Policy Review

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Design West

Report of the trustees

For the year ended 31 March 2023

Placemaking

Our placemaking work saw:

Education, Young People & Volunteering

PROGRAMME

Design West is a place where design, discussion, culture and communities converge. As a worldleading centre for design and creative placemaking, we enable everyone to actively engage with the built environment and architecture around them. Throughout the year we showcase the world’s most inspiring thinkers and practitioners from home and abroad through our public programme. This year we continued to build back audiences post-covid. 3,505 people took part in our public programmes and workshops, with 2,082 people booking tickets for our core events programme.

National & International Talks Programme

In 2022/23 we featured keynote talks from national and international speakers addressing topics of global significance, from retrofit and designing for a climate emergency, to the future of travel, the impact of artificial intelligence and modern methods of construction on our built environment and how natureled design is transforming our planet. We also formally partnered with RIBA to deliver high profile public talks in Bristol and Exeter.

Highlights included:

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Design West

Report of the trustees

For the year ended 31 March 2023

Member for Transport (Bristol City Council) discussed with the audience how we design and adapt our cities in the face of changing travel behaviours, and the climate emergency.

“Massive congratulations on a great day. I was most privileged to be part of it & enjoyed it all hugely. Your work is a total triumph, and the ability to continue the conversation in The Architect Bar after events is truly inspired. I go around the country all the time & I have to say, hand on heart, I do not think any place in the UK has a better platform for growth than you.” Jackie Sadek, Urban Strategy

“Design West has done a brilliant job developing creative and artistic engagement with architecture over the last 20 years. It is an organisation that consistently challenges itself to innovate, excel and take artistic risks, combining a passion for design excellence with a great track record for bringing people and places together.”

Phil Gibby, Area Director, South West, Arts Council England

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Design West

Report of the trustees

For the year ended 31 March 2023

“The RIBA were delighted to collaborate with Design West to bring the 2022 Stirling Prize winners to speak in Exeter and Bristol. Despite a rail strike both speakers and audience made a heroic effort to be there in person, which reminded us all of the critical energy and intelligence provided by a room full of interested parties. The talks and conversation reached an audience not normally so well served and the whole event was well received and enjoyed. RIBA look forward to working with Design West in the future to help ensure that people in the South West are engaged and inspired by the very best architects and architecture”. Simon Allford, RIBA President (2021-23)

Design West remains the only place in the South West for inspiration, information, and debate about the design of our built environment, and the impact of design decisions on environment, economy, equality and health.

DESIGN & POLICY SERVICES

The South West of England is growing, with >100,000 new homes set to be built across the West of England Combined Authority alone by 2036.

Design West support local authorities, public sector bodies, councillors, and developers to design high quality and more sustainable places. We help to ensure that the pressure for growth, does not compromise quality, and provide support to authorities that are often under-resourced, whilst giving developers access to the best interdisciplinary advice on design and placemaking.

Building on a long history of bringing people together to shape better places, Design West runs an independent design review service across the South West. We now convene over 100 professionals that represent the best cross-sector talent in the region, with specialisms in design, housing, climate resilience and net zero, engineering, transport and active travel, landscape, heritage, accessibility, inclusive growth and placemaking. The expert panels provide independent guidance early in the planning process for significant development proposals. The Design Review process leads directly to design improvements for citizens and the environment whilst often adding value to projects.

Our design review and policy support services continued to be in high demand. In 2022, we signed new agreements with Exeter City Council and Cornwall Council to raise the bar for architecture and design. (This builds on the union with Creating Excellence in 2021).

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Design West

Report of the trustees

For the year ended 31 March 2023

In 2022/23, we conducted 93 Design Reviews, up from 71 in the previous year, and finished the year ahead of target. This included 58 in the ‘West of England’ area and 33 in the wider South West including Devon, Exeter, Swindon, Plymouth and Dorset.

Our panel chairs for 2022/23 were as follows: Bristol, Cora Kwiatkowski (Dipl.-Ing. Arch RIBA) and Jane Fowles (BA(Hons) DipLA (Hons) MA UD CMLI); South Gloucestershire and BANES, Prof. Alex Wright (BSc Dip Arch MDesS ARB FHEA), North Somerset, Juliet Bidgood (MA Dip Arch RIBA), Exeter, Richard Rose Casemore (BA (Arch) Dip Arch (Dist) FRSA RIBA) and Yuli Cadney-Toh (BA (Arch) Hon Dip Arch RIBA), and Cornwall, Frazer Osment (MPhil UD BA (Hons) LA CMLI). We continue to refresh and diversify our panellists to bring new critical skills and experience and to improve gender balance and diversity. We thank our chairs and all of our valued expert panellists for their commitment and contribution to this charitable work.

“Design West has built relationships across the sector enabling them to form panels which act as a ‘critical friend’ to local authorities ensuring emerging plans and strategies meet the ambitions and needs of the communities they serve.” Sophie Camburn, Director, Arup

“There's not a scheme that's gone to Design West that hasn't improved as a result. These are professionals at the top of their game.” Chris Griggs, Principal Planning Officer, Bath & North East Somerset Council

“Design West acts as a critical friend to the council, providing design review on a regular basis alongside policy and strategy review. The panel members’ wide ranging expertise helps the council make robust and well balanced decisions and is an excellent resource for officers and members to draw on.” Cllr Nicola Beech, Cabinet Lead Spatial Planning and City Design – Bristol City Council

Design Review Highlights

Key schemes reviewed during the year included city centre sites Castle Park and The Galleries in Bristol, >2,000 homes and employment land at the new neighbourhood of Brabazon in South Gloucestershire, >2,000 homes in Cornwall, planned schools in North Somerset and Patchway, retirement villages, police stations, care homes, sheltered housing and over 7,000 student beds. The panels also helped shape plans for the new rugby stadium in Bath.

Notably the service has particularly supported developers to change their designs with practical interventions to create better, healthier places to live and work, through:

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Design West

Report of the trustees

For the year ended 31 March 2023

“Exeter City Council have found the Exeter Design Quality Group formed with Design West has helped drive up design standards in the city. The panellists convened by Design West combine local knowledge with national and international expertise. Working in collaboration with Exeter City Council, Design Reviews are pushing developers to deliver schemes that help the council deliver on its commitment to a Liveable Exeter.”

Ian Collinson, Head of Regeneration & Housing, Exeter City Council

“Can you share my appreciation to the panel for their time & constructive advice. I have attended a few of these over the years & I have to say the conduct & approach taken by the panel was by far the best. I would encourage anyone to come & share their ideas with you .”

Emma Geater, Associate Director, Crest Nicholson

PLACEMAKING

Our Placemaking work brings the public, politicians, and professionals together to shape better places.

West of England Placemaking Charter

In July 2022 we worked with the West of England Combined Authority (WECA) to launch the first Placemaking Charter for the West of England. Developed through the pandemic, with public and third sector stakeholders, council officers, politicians and the design and development sector, The Placemaking Charter provides a framework for developers, communities and public sector partners to create places that are: future-ready, connected, biodiverse, characterful, healthy and inclusive.

The charter represents a commitment to bring forward clean, inclusive growth and to create healthy, happy places that contribute to addressing the climate and ecological emergencies.

The launch was attended by, the Department for Levelling Up Homes and Communities including Chief Planner Joanna Averley, the CEO of WECA, and cross-sector/societal leads from AECOM, Arup, Atkins, the Black South West Network, Historic England, the Landscape Institute, Natural England, RIBA, Savilles, Sustrans, Visit West and WECIL.

Placemaking Strategies for Clevedon & Nailsea

Design West continued to work with public, professional and political stakeholders from Clevedon, Nailsea and North Somerset Council to develop Placemaking Strategies for the two towns.

Building on the visioning of local people, and young voices from the towns, Design West’s network of experts fed into the workshops to help visualise, and test proposals. Design West supported local people with feasibility and parking studies, landscape designs and more technical work at the request of each group as the projects progressed.

The draft strategies presented by the stakeholders launched in July 2023, with a stakeholder event at Design West followed by a talk on the ‘Rise of Towns’ at Arnolfini featuring Wayne Hemingway, and our team. North Somerset Council’s Alex Hearn (Assistant Director of Placemaking and Growth) spoke about the projects and his work in Weston-Super-Mare. We gave free tickets to people from the towns of Clevedon and Nailsea, putting on a coach for their visit, and enabling them to hear about successful design and culture-led regeneration of UK Towns.

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Design West

Report of the trustees

For the year ended 31 March 2023

Led by Design West, the project is run in partnership with Nailsea and Clevedon Town Councils, design agency Maya, Theatre Company Show of Strength, AHMM Architects, Studio Hive, Inner Circle, Weston College, North Somerset Council and the people of each town.

“I am writing to say how much I enjoyed attending the recent Two Towns Placemaking Celebration. The event was a wonderful opportunity to learn, in a very entertaining and informative way, about what has, and could be achieved under the umbrella of placemaking. Listening to Wayne, Pippa and Alex at the Public Talk was quite inspirational.

We are very positive about the future and the part that we have the potential to play in it. We appreciate the opportunities for networking and learning that your invitation to this event gave us.”

Adele Gardener, Clevedon & District Community Land Trust

“I just wanted to say well done and thank you for organising and hosting the events yesterday. A number of the participants said to me how much they had enjoyed it and how impressed they were with all the speakers. I think you achieved exactly what you set out to - celebrate achievements and stimulate people’s ambition and enthusiasm for making a real positive difference to their towns. The bus on the way back was full of chatter and I believe at least one group convened to the pub for further debate!”

Rachel Lewis, Regeneration Manager, North Somerset Council

Bath & North East Somerset Local Plan

In spring 2023, Design West were commissioned to support engagement work for Bath & North East Somerset Council on the developing Local Plan, ensuring that a range of voices inputted into the strategy. We ran workshops across the region to bring together seldom heard voices, including a session with young people from Chew Valley High School. The approach builds on the West of England Placemaking Charter.

Other Placemaking Projects run during the year included co-development of a Planning Charter for Exeter City Council, a Young People’s Strategy for Sidmouth, looking at infrastructure and architectural needs, the Lockleaze public realm contract with Bristol City Council and a brief for Clevedon Library (RIBA Stage 1) building on emerging needs from the Two Towns project.

EDUCATION PROGRAMME

Design West is a national leader in place-based education. We inspire young people of all ages in the built environment, and open-up career pathways, intervening to provide valuable opportunities which many young people would otherwise not have. We believe that successful places of the future need a diverse workforce to design them.

Our work is desperately needed by the sector. 1% of British Architects are black, 12% of UK Engineers are women, 5% of Construction Directors and Senior Managers are BAME. Only 7% of Directors, and 5% of Senior Directors in the Private Planning Sector are women.

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Design West

Report of the trustees

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Shape My City (15 – 18 yrs.)

Shape My City offers high quality careers development support aimed at girls and young people from BAME and lower socio-economic backgrounds, making a tangible impact on their lives, whilst working towards building a more diverse and representative built environment sector.

“Design West’s innovative Shape My City Programme is an essential initiative that empowers young people from diverse backgrounds to enter the built environment sector. Inspired by Stephen Lawrence, the programme is designed to tackle the lack of diversity in the sector, to identify and nurture young talent, so that in future our city is shaped by professionals who better represent the communities that they serve.

Built in partnership with Bristol’s schools, communities, world-class universities and companies, the programme builds confidence, skills and networks for young Bristolians. Designed for maximum impact, the programme gives young people a voice in live development happening across our city today, ensuring everyone can access the industry, and delivers two-way change in the companies that engage. As our city continues to grow and become more diverse, Bristol is proud to be home to this award-winning programme.”

Marvin Rees, Mayor of Bristol

“ Being part of Shape My City makes me believe I can have a real effect on our city, should I really try.” Shape My City Graduate

In Summer 2022 our reinvigorated programme saw exceptional outcomes: Over 85% of participants reported growth in:

Some of the student voices are captured below.

“ Being part of Shape My City makes me believe I can gain the skills I need to get the career I want.”

“ Being part of Shape My City makes me believe I can work well with a diverse range of people and work in collaboration with others to create a collective outcome.”

“ The best thing about Shape My City was going to live development sites and learning about different companies!”

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Design West

Report of the trustees

For the year ended 31 March 2023

In Autumn 2022 we took on a new cohort of students, the charity went into school assemblies to further increase and diversify our intake. 50 young people applied, with 29 students accepted from 13 schools, 63% of the students identify as BAME and 60% are female (this beats our 60% target). In Winter 2022 Shankari Raj returned from maternity leave to lead the programme from Rebecca Nixon (AHMM secondment).

“Shape My City lifts the lid on a number of key disciples that help shape the places we live, work and play. Seeing the various cohorts engage with, question, and understand these complex topics helps to show that they have a role to play in the future of our cities.”

Jason Ramlugon, Senior Architect, AHMM

In December 2022 the programme was awarded a special commendation in the category of ‘Long Term Youth Programme’ at the Thornton Education Trust Awards at the Building Centre in London.

We thank the organisations who signed up to take part in the academic year, namely AHMM, Arup, AWW, Bristol City Council, Churchman Thornhill Finch, Dandara, English Heritage, FCB Studios, Purcell, Ramboll and Stantec. We extend our thanks to all the volunteer professional inspirers, young people and university students who give their energy, enthusiasm and skills to the transformative programme.

“The Shape My City programme is truly a guiding light in inspiring and empowering future generations, especially in providing invaluable opportunities to talented young individuals who might otherwise lack access, notably those from underrepresented socio-economic groups.”

Victoria Thornton OBE, Thornton Education Trust

Architecture Anonymous (18 – 23 yrs)

In partnership with students from UWE Bristol, we developed a peer-to-peer monthly event for students to build confidence in presenting their work, pitching and sharing ideas. Termed Architecture Anonymous, the event grew from a series of conversations with students who identified the need to develop confidence, and to do this in a safe and nurturing space. Design West offered space and audio visual facilities in the ground floor café-bar supporting the students with the concept, marketing and production of the event series.

3) FINANCIAL REVIEW

2022/23 saw Design West again report the highest turnover on record as the organisation continued to grow and build impact, whilst finalising the capital project on the first and second floors.

Turnover grew to £1.1M, a 32% increase on the previous year (£825K), reflecting another step forward for the charity. The Trustees are pleased to report a quadrupling in income since 2018, under the leadership of the current director and team, which represents the advances made by the organisation with respect to delivering key services, generating demand from larger audiences and forging stronger valued partnerships.

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Design West

Report of the trustees

For the year ended 31 March 2023

The year was particularly strong for our charitable services, Design Services and Placemaking. Design Services grew by 40% from £315K 2021/22 to £442K in 2022/23, as we partnered with more Local Planning Authorities to deliver Design and Policy Review work across the South West. Under times of austerity, LPAs see real value in working with a strong third sector organisation, to drive up the design quality of developments, to meet social, economic and environmental agendas. In the year, our Director and Heads of Design and Planning Services worked to deliver two new contracts with Exeter and Cornwall City Councils, expanding our services to the South Western tip of the UK, in addition to retaining contracts across WECA and North Somerset. Placemaking revenue increased to £198K from £140K in 2021/22, as Design West continued to develop the Placemaking offer, with major projects in North Somerset, and smaller projects in Bath, Bristol and Sidmouth.

The Design Services work drives up architectural and design quality, promoting understanding of design with local authorities, and amongst developers and elected members, whilst improving the quality of the built environment for the public. Income is raised from both local authorities and the development and planning sector. Placemaking services sees the charity bring together politicians, professionals and a broad cross-section of the public to inspire and support these stakeholders to co-design and vision great places (centering great design and architecture in social, health and economic benefits). This work is primarily won through competitive tenders, and sometimes through direct commissions linked to existing service level agreements. Design West overperformed in these areas against the starting budget for the year, and prioritised these opportunities through the year.

Public programmes performed well in a UK context of challenging economic circumstances. Audiences continued to return to live talks and events, demonstrating the value of the activities, although event box office income remains at 50% of pre-pandemic levels, whilst production costs escalate with inflation. The Shape My City education programme was fully sponsored for the first time, as we collaborated with more top companies in the Built Environment Sector. Public Funding for programme continues to be difficult to secure, and with Bristol City Council’s repeated deferral of cultural funding programmes, we finished behind target on grant income. The wider sector report that fundraising and development roles are themselves difficult to sustain financially, we made the decision to discontinue our development role mid-year, and will re-structure development in the next financial year. Note that there was no Bristol Open Doors event in 2022, as the charity moves to a more sustainable model of delivering public engagement with architecture.

Design West is a lean, efficient and dynamic charity. Public programme always requires an element of public subsidy but in the context of austerity, and reduced public funding, the charity took the decision to prioritise driving the growth of services, where income is more stable, over investing a large amount of resource into risk-heavy charitable bid-writing, in order to cross-subsidise our programme. The charity will always seek to develop a healthy range of income sources and to think effectively about where to invest the team resource for maximum return.

In September 2022 as planned, the charity financially separated café bar activity (The Architect) into a wholly owned trading subsidiary ‘Design West Trading’. This separation of accounting and administrative function, will enable better financial control, and minimize risk to the parent charity. The end of year figures for the Trading Arm show an in-year loss of £30K for Sept – Mar, as the financial data only includes the winter months, we anticipate better figures for 2023/24 when a full year of trading through summer and winter is reported. As a new business, The Architect is building trade, but the board recognizes the challenging environment for hospitality businesses (high cost of consumables, energy and wages, and customers facing a ‘cost of living crisis’) and is taking advice from the best hospitality advisors to drive up trade whilst keeping costs low, aiming to return a strong surplus position by year three.

The Board recognises that several benefits of The Architect are not captured in the finances. In 2022/23 Design West had over 60,000 visitors to our venue, with the vast majority of this footfall driven by The

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Design West

Report of the trustees

For the year ended 31 March 2023

Architect; the space plays a key role in hosting public programme, public debates, learning sessions with UWE students (Architecture Anonymous), exhibitions and book events through the year, and is a meeting place, enabling knowledge exchange in architecture and design; the Design West Trading team service charitable activity (managing the logistics of design review sessions, space hires, and catering for partner programmes) for the parent charity. As a new Trading Arm, the Board are working to accurately capture this relationship financially, whilst continuing to drive sales, and have the current model under review.

Expenditure for the year was £983K. Careful cost control, meant that the charity is pleased to report an in-year surplus (£109K before investment gains of £112K), enabling the Trustees to invest in some critical designated funds for the future, and allowing the charity to build reserves commensurate with our size. Design West seeks to obtain value for money across all areas of our work, with regular cost reviews, and careful procurement, whilst being a fair employer.

Design West frequently receives scam emails, and requests, which the organisation is careful to prevent through tight processes, and regular briefings. In Sept 22, Design West was subject to a fraudulent transaction for £9,600, due to human error. Thankfully, through quick and diligent action by the charity, this transaction was later returned by the bank. Design West undertook a full review, strengthened our processes, and the finance administrator undertook training in the increasingly elaborate methods of scammers, which was shared with the team.

Salary Costs finished the year below budget (as the charity chose to postpone recruitment of some key posts) but increased from £280K in 21/22 to £352K (of which the Trading Arm is £72K) as the core team expanded as planned, and the café bar opened on Mondays. Like all organisations postpandemic, the charity is experiencing pressure to recruit and retain talented staff in the midst of a costof-living crisis and high inflation. In 2022/23, the charity implemented two 3% salary rises to staff, in April and September (4.5% across the year) to help with the cost of living, and trialled a small performance-related bonus scheme to help retain and reward talented staff, something the Trustees will develop further in 2023/24.

We finished the year in a strong and stable financial position. Restricted reserves are at £42,414 this includes £14,206 left in the three-year Creating Excellence Fund for regional work, £20,000 held for a commission at Temple Church once English Heritage site repairs are finished and small amounts for Placemaking commissions to be spent in 2023/2024. The final instalment (£25,000) for the covid-hit Unlocking Resilience project for Bristol Open Doors 2021 was successfully drawn down with a glowing review from the Heritage Fund in 2022.

Unrestricted reserves total £1,374,896 which includes designated funds including the leasehold property (£870,097), designated cash funds of £160K and a general fund of £344,799. The general fund contains our unrestricted net current assets of approximately £233,781 (up £18K from £216K in the previous year) and tangible fixed assets of £111,018.

The Trustees have designated funds for projects where future spend is needed. This includes setting aside funds for building renovation following the main capital project that finished this year (£40K), as the roof, rear render and lift have a limited lifespan and may soon need investment. Funds have also been set aside for education (£10K) to safeguard Shape My City, as sponsorship may dip in the predicted recession. The Trustees have designated funding for Public Programme, which always requires subsidy, and the charity is developing plans for more regular programme at Design West, and a reimagining of Bristol Open Doors. The need to strengthen the Design West core team is a top priority for the next three years. The Trustees have thus also set aside a designated fund for Organisational Development to help subsidise the early phase of this growth.

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Design West

Report of the trustees

For the year ended 31 March 2023

During the preparation of these accounts, Design West had our building revalued. This followed two and a half years of renovation work. The valuation described an increase in the value of the leasehold asset from £531K in 2016/17 to £1.1M in November 2023. The Trustees have recalculated the valuation of the property as £950K at 31 Mar 2022, this value has been restated in the accounts. The property continues to be split as 25% leasehold property and 75% investment property for accounting purposes.

The Trustees are pleased to report a responsible reserves position leading into 2023/24, and a strong mix of income streams now supporting our activities. With clear leadership and the support of new and existing clients for our impactful work, we are confident in our sustainable future.

Risk Management

The Board of Trustees has considered the major risks to which Design West is exposed, and have developed a plan to mitigate exposure. These are reviewed quarterly, with escalation of any major changes between meetings. The Board hold a live risk register to track and mitigate exposure to risks, and to take action. The team regularly discuss risk mitigation and feed into the register.

The principal risks identified include, financial pressures on local government and the impact of recession on the built environment sector and design review. Design West mitigate this through maintaining quality of service, value for money, networking and increased involvement on a national level with the Design Network. The client base is geographically large, the charity has developed a range of income streams and has built strong reserves to help the charity weather short-to-medium term impacts of recession.

Finally the Trustees recognise the need to invest in operational stability in a growing charity, creating new senior roles to manage growth, and retain existing talent. This will be addressed through a new three-year business plan, and operational review, alongside the development of appropriate staff benefits, training and performance packages.

Design West has stringent financial processes. Budgets and cashflow positions are carefully monitored throughout the year to ensure any risks are identified and mitigated at an early stage. Overhead and administration costs are reviewed annually to ensure maximum cost efficiency and value for money. We continually look for ways to maximise income and make efficiency savings without compromising public benefit or the quality of the offer.

Reserves Policy

Design West’s reserves form part of the organisation’s strategic planning process informing business planning, budget and risk management, ensuring that the organisation remains sustainable, has the capacity to manage unforeseen financial circumstances and is able to invest in its future.

The Trustees have reviewed the reserves policy to a risk-based assessment which takes into account our income certainties and sources of income, compared to our fixed and committed expenditure. Following this review, the Trustees' agree that in order to weather variations in cash flow our free reserves should reach six months expenditure (£345,000) as a general reserve. In addition to this, the Board have assigned designated reserves funds. At the end of March 2023 the Board are pleased to report significant progress against our business plan. Unrestricted free reserves increased to £233,781 in the general unrestricted reserve fund, and £160,000 in the designated funds described above. The Trustees will continue to balance holding strong reserves for the organisation, with the ongoing business risks, including Covid-19, recession, and the cost of living crisis.

The Trustees believe that the current business plan make the business a going concern and are confident of a mixed income stream over the next 3 years. The organisation has a 125-year lease asset

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Report of the trustees

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that will be used to generate increased revenue and has demonstrated valuable service provision increasing our earned income through our Design Review and Placemaking Services.

4) STRUCTURE, GOVERNANCE & MANAGEMENT

Constitution, Organisational Structure & Name Change

Design West is a charitable incorporated organisation (CIO), the constitution is the primary governing document of the charity.

The charity operates with a Board of Trustees who are non-executive and unpaid, and who meet quarterly. Over the past three years, Director Dr Anna Rutherford has been working with the Chair and the Board to make sustainable strategic change across the organisation, including developing the structure, finance and impact model, and the policies and processes of the organisation.

During the year the Board completed the process to modernise the structure of the charity, supported by the highly regarded legal firm Counterculture LLP, and the Director. Originally constituted in 1984 as a company limited by shares (no dividends paid to the founding shareholders) and a registered charity, the organisation has spent the past three years preparing to adopt a more appropriate structure. Over the past two years the charity has tracked down the founding shareholders, working with them and the Trustees to convert to a CIO.

Following a General Meeting in April, on 26 August 2022, fifteen of the original shareholders voted to adopt a new constitution, and convert to a charitable incorporated organisation (association model), a unanimous decision. On 22 September 2022, the Charity Commission accepted the conversion process. The parent charity was de-registered with Companies House and is now solely regulated by the Charity Commission. This careful process enabled the same registered charity number to be kept, maintaining the strong history of the organisation.

At the October 2022 Board meeting, as planned the Trustees voted to remove the original shareholders by a special resolution to make the Trustees the sole voting members and governing entity for the CIO. On 14 October 2022, the Trustees also held a general meeting to change the name from ‘Bristol Centre to the Advancement of Architecture Limited’, to the charity’s trading name ‘Design West’ as a more relevant and practical title for the charity, which recognised the growth of the charities area of operation from Bristol into the wider South West. This name change followed a period of consultation with key stakeholders from 2019 – 2022, and was accepted by the Charity Commission on 9 November 2022.

These structural and governance developments represented a significant piece of operations and administrative work for the charity. All contracts, service providers and key documents needed to be updated to reflect the change. Although the charity remains the same organisation, the technical changes required new accounts across HMRC and our Pension providers, we were also required to switch to new charity bank accounts, something previously not permitted due to our structure.

Establishment of a Trading Arm

As reported in 2022, part of the structural development plan, was to establish a trading arm to manage the Café Bar function. This development was managed in parallel with the planned changes to the parent charity, and on 14 April 2022, we set up Design West Trading in preparation for the change. The trading company was established in good time, as since the pandemic, the charity has experienced very long delays with any banking changes to accounts at the major banks. In August 2022, the charity was finally able to open an account for the trading arm.

15

Design West

Report of the trustees

For the year ended 31 March 2023

Following the successful conversion of the parent charity, and the set-up of banking, payment, payroll and accounting systems, the trading arm began to trade in September 2022 and operate independently as a company. All suppliers and systems went through a planned switch over from the main charity in Autumn/Winter 2022. The trading arm is run day-to-day by the General Manager, Leon Etchells. A new Board of Directors was set up for the trading arm, consisting of hospitality-specific expertise, a Trustee from the parent charity and the Director of the main charity. The Design West Trading is bound by a Deed of Gift, a legal obligation to transfer all profits to the parent charity, Design West.

Future Development

Following the successful changes to the structure and name of the charity. In 2023/24 the Board of Trustees plan to work with the new Chair and team to update the objects of the organisation (drafted 1984), to better reflect the needs of society today. The charity also recognises the need to expand the core team, and invest in organisational development over the next three years to consolidate and plan for continued growth.

Board of Trustees

Design West operates with a Board of Trustees who meet on a quarterly basis and have overall responsibility for:

The Director and the Chair of Trustees meet on a monthly basis, to discuss progress, and work on strategic development. Project Working Groups are drawn from the Board of Trustees, and meet as required.

The Trustees regularly review the composition of the Board to ensure is has the skills and diversity necessary for continued good management and the financial success of the organisation. Trustee roles are advertised through relevant networks, and potential Trustees go through an interview and induction process. The Chair role is always advertised widely. In 2023/24 we will draft our next business plan with the new Chair of Trustees, and go through another round of Board development to update our skillset and networks in line with the plan.

A new chair of Trustees, Nick Fairham (Chief Executive of BDP) was recruited in Spring 2023 in a public recruitment process, supported by Moon Executive Search. He started in the role in July 2023.

The Trustees would like to thank outgoing Chair of Trustees Nicholas Childs for his 7 years of service. Nick steered an exceptional period of growth, including renovation of the Design West venue, and key structural changes to the charity which leave Design West in a healthy resilient position for the future.

16

Design West

Report of the trustees

For the year ended 31 March 2023

Senior Team

The Trustees delegate their powers to the Director for day-to-day management of the organisation, with support from the newly formed Senior Leadership Team. The Senior Leadership Team also maintain and implement the policies of the organisation. During the year the Senior Leadership Team was:

Dr Anna Rutherford (Director) Pippa Goldfinger (Head of Design) Leon Etchells (General Manager, Design West Trading) Julie Tanner (Head of Design & Planning Services)

Since the year end, two new senior roles have been created in the form of: Jenny Hayes (Head of Marketing & Communications), Sept 2023 Victoria Bentley (Head of Partnerships), Sept 2023

All staff roles are assessed and paid in relation to responsibility, skills and capabilities required. Roles are regularly benchmarked. In 2022/23 we introduced a new system of performance targets and reviews with the Board of Trustees.

Trading Arm

The Board of the Trading Arm meet quarterly and have responsibility for:

Networks & Memberships

Design West is a key member of the Design Network. The Director served on the Bristol Culture Board. During the year the charity also became a member of the National Council for Voluntary Organisations.

Public Benefit

Design West has complied with the duty in Section 17(5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

Statement of responsibilities of the trustees

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with 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).

The law applicable to charities in England and Wales 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 the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. In preparing those financial statements the trustees are required to:

17

Design West

Report of the trustees

For the year ended 31 March 2023

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constitution. The trustees 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.

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 financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditors

Godfrey Wilson Limited were appointed as auditors to the charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 23 January 2024 and signed on their behalf by

Nick Fairham - Trustee

18

Independent auditors' report

To the members of

Design West

Opinion

We have audited the financial statements of Design West (the 'parent charity') and its subsidiary (the 'group') for the year ended 31 March 2023 which comprise the consolidated statement of financial activities, consolidated and parent charity balance sheets, consolidated statement of cash flows and the related 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 the 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 group and parent 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 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 charity'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 annual report other than the group and parent charity financial statements and our auditor’s report thereon. Our opinion on the group and parent charity 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.

19

Independent auditors' report

To the members of

Design West

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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Other matters

The financial statements for the year ended 31 March 2022 were not audited because the charity was below the statutory audit threshold.

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees 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 they 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

20

Independent auditors' report

To the members of

Design West

Our 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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

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 non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

21

Independent auditors' report

To the members of

Design West

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charityʼs trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charityʼs trustees those matters we are required to state to them in an auditorʼs 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 charityʼs trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Godfrey Wilson Limited

Date: 24 January 2024

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

22

Design West

Consolidated statement of financial activities

For the year ended 31 March 2023

Restricted
Unrestricted
Note
£
£
Income from:
Donations and legacies
4
11,377
22,216
Charitable activities
5
Design services
-
442,166
Placemaking
4,999
193,338
Public programme
25,000
71,681
Other charitable activities
-
-
Other trading activities
6
-
285,125
Investments
-
36,259
Total income
41,376
1,050,785
Expenditure on:
Raising funds
-
351,897
Charitable activities
Design services
7,230
363,274
Placemaking
16,171
154,441
Public programme
-
90,169
Other charitable activities
-
-
Total expenditure
8
23,401
959,781
Net gains on investments
13
-
112,500
Net income and net movement in funds
9
17,975
203,504
Reconciliation of funds:
Total funds brought forward
24,439
1,171,392
Total funds carried forward
42,414
1,374,896		 2023
Total
£
33,593
442,166
198,337
96,681
-
285,125
36,259
1,092,161
351,897
370,504
170,612
90,169
-
983,182
112,500
221,479
1,195,831
1,417,310		 Restated
2022
Total
£
108,576
314,834
139,595
56,733
8,715
152,162
44,182
824,797
230,137
255,728
146,720
189,646
8,397
830,628
314,152
308,321
887,510
1,195,831

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 21 to the accounts.

The prior period has been restated to include the gain on revaluation of the investment property, more detail is provided in note 2 to the accounts.

23

Design West

Consolidated balance sheets

As at 31 March 2023

Note
Fixed assets
Tangible assets
12
Investments
13, 14
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year 18
Net current assets
Net assets
20
Funds
21
Restricted funds
Unrestricted funds
Designated funds
General funds
Share capital
Total charity funds		 The group
2023
£
156,115
825,000
981,115
7,371
118,837
517,609
643,817
(207,622)
436,195
1,417,310
42,414
1,030,097
344,799
-
1,417,310		 The group The charity
2022
2023
£
£
179,994
156,115
712,500
825,001
892,494
981,116
8,633
-
159,850
161,164
302,379
503,604
470,862
664,768
(167,525)
(202,754)
303,337
462,014
1,195,831
1,443,130
24,439
42,414
818,659
1,030,097
349,993
370,619
2,740
-
1,195,831
1,443,130		 Restated
The charity
2022
£
179,994
712,500
892,494
8,633
159,850
302,379
470,862
(167,525)
303,337
1,195,831
24,439
818,659
349,993
2,740
1,195,831

Approved by the trustees on 23 January 2024 and signed on their behalf by

Nick Fairham - Trustee

24

Design West

Consolidated statement of cash flows

For the year ended 31 March 2023

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
Gains on investments
Dividends, interest and rents from investments
Decrease / (increase) in stock
Decrease / (increase) in debtors
Increase in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Net cash provided by / (used in) investing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2023
£
221,479
42,805
(112,500)
(36,259)
1,262
41,013
40,097
197,897
36,259
(18,926)
17,333
215,230
302,379
517,609		 Restated
2022
£
308,321
24,083
(314,152)
(44,182)
(8,633)
(86,640)
93,210
(27,993)
44,182
(152,059)
(107,877)
(135,870)
438,249
302,379

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

25

Design West

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies

a) Basis of preparation

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

Design West meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Group accounts

These financial statements consolidate the results of the charity and its wholly-owned (controlled) subsidiary on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate Statement of Financial Activities for the charity is not presented as the charity has taken advantage of the provisions of section 24 of the SORP.

c) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

d) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of provision of design services is deferred until criteria for income recognition are met.

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

f) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particularly areas of the charity's work or for specific projects being undertaken by the charity.

26

Design West

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies (continued)

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities based on the proportion of staff time as follows:

2023 2022
Raising funds 44.3% 24.0%
Charitable activities
Design services 33.8% 37.2%
Placemaking 9.7% 9.0%
Public programme 12.2% 27.7%
Other charitable activities 0.0% 2.1%

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Leasehold property 125 years
Office equipment 3 years
Fixtures and fittings
Bespoke fixtures 5 years
Other fixtures and fittings 3 years
Leasehold improvements 10 years

Items of equipment are capitalised where the purchase price exceeds £1,000.

j) Investment in subsidiaries

The charity has one wholly owned subsidiary, Design West Trading Ltd, (registered company number 14049103). The subsidiary is used for non-primary purpose trading activities. The subsidiary undertaking is valued at cost less any cumulative impairment losses in the charity's accounts.

27

Design West

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies (continued)

k) Investment property

Investment property is property (land or a building, or both) held to earn rentals.

Investment property is initially measured at cost, including transaction costs. Investment property is subsequently measured at fair value at the reporting date. This method of valuation applies to all the charity’s investment properties.

Gains or losses arising from changes in the fair value of investment property are included in net profit or loss on the face of the Statement of Financial Activities for the period in which they arise.

l) Stock

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

o) Creditors

Creditors and provisions are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

p) Financial instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

q) Pension costs

The charity operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

r) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

28

Design West

Notes to the financial statements

For the year ended 31 March 2023

r) Accounting estimates and key judgements (continued)

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are: depreciation (see accounting policy 1i), the split of the property between tangible fixed assets and investments (see note 12) and the valuation of investment property see (accounting policy 1k).

2. Prior period restatement

The prior year investment property balance has been restated to reflect a revised trustees' valuation of the mixed use property as at the year ended 31 March 2022. The result of this restatement is to increase unrestricted funds by the revaluation figure of £314,152.

3. Prior period comparatives: statement of financial activities

Income from:
Donations and legacies
Charitable activities
Design services
Placemaking
Public programme
Other charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Design services
Placemaking
Public programme
Other charitable activities
Total expenditure
Net gains on investments
Net income / (expenditure) and net
movement in funds		 Restricted
£
£
36,118
72,458
-
314,834
3,000
136,595
10,000
46,733
-
8,715
-
152,162
-
44,182
49,118
775,679
-
230,137
-
255,728
2,707
144,013
95,718
93,928
-
8,397
98,425
732,203
-
314,152
(49,307)
357,628
Unrestricted		 Restated
2022
Total
£
108,576
314,834
139,595
56,733
8,715
152,162
44,182
824,797
230,137
255,728
146,720
189,646
8,397
830,628
314,152
308,321

29

Design West

Notes to the financial statements

For the year ended 31 March 2023

4. Income from donations and legacies

4.
Income from donations and legacies
Donations
Grants
Total income from donations and legacies
Prior period comparative:
Donations
Grants
Total income from donations and legacies
5.
Income from charitable activities
Design services
Service provision
Placemaking
Grants
Service provision
Public programme
Grants
Service provision
Sponsorship
Memberships
Events
Total income from charitable activities		 Restricted
£
£
-
2,216
11,377
20,000
11,377
22,216
Restricted
£
£
-
35,093
36,118
37,365
36,118
72,458
Restricted
£
£
-
442,166
4,999
-
-
193,338
4,999
193,338
25,000
-
-
5,488
-
34,250
-
20,743
-
11,200
25,000
71,681
29,999
707,185
Unrestricted
Unrestricted
Unrestricted		 2023
Total
£
2,216
31,377
33,593
2022
Total
£
35,093
73,483
108,576
2023
Total
£
442,166
4,999
193,338
198,337
25,000
5,488
34,250
20,743
11,200
96,681
737,184

30

Design West

Notes to the financial statements

For the year ended 31 March 2023

5.
Income from charitable activities (continued)
Prior period comparative:
Restricted
£
£
Design services
Service provision
-
314,834
Placemaking
Grants
3,000
1,500
Service provision
-
135,095
3,000
136,595
Public programme
Grants
10,000
500
Service provision
-
6,163
Space hire
-
560
Events
-
39,510
10,000
46,733
Other charitable activities
Service provision
-
60
Membership
-
8,415
Space hire
-
240
-
8,715
Total income from charitable activities
13,000
506,877
6.
Income from other trading activities
2023
Restricted
Total
£
£
£
Café/bar sales
-
256,194
256,194
Sponsorship
-
250
250
Space hire
-
21,218
21,218
Service provision
-
7,463
7,463
-
285,125
285,125
Unrestricted
Unrestricted
Total income from
other trading activities		 2022
Total
£
314,834
4,500
135,095
139,595
10,500
6,163
560
39,510
56,733
60
8,415
240
8,715
519,877
2022
Total
£
127,299
22,400
2,070
393
152,162

All income from other trading activities in the prior year was unrestricted.

7. Government grants

The charity receives government grants, defined as funding from Bristol City Council (2022: Coronavirus Job Retention Scheme, Bath and North East Somerset Council, Arts Council England and Bristol City Council) to fund charitable activities. The total value of such grants in the period ending 31 March 2023 was £4,999 (2022: £53,483). There are no unfulfilled conditions or contingencies attaching to these grants in 2022/23.

31

Design West

Notes to the financial statements

For the year ended 31 March 2023

8. Total expenditure

Total expenditure
£
Staff costs (note 10)
141,358
Recruitment and training
-
Cost of goods sold
75,061
Production
49,210
Consumables
4,303
Marketing and communications
1,501
Building costs
6,292
Office and admin
216
Finance and legal
1,619
Organisational development
645
Depreciation
-
Sub-total
280,205
Allocation of support and governance costs
71,692
Total expenditure
351,897
Raising funds		 £
107,837
-
-
207,520
-
456
-
-
-
-
-
315,813
54,691
370,504
Design
services		 £
30,857
-
-
120,927
-
3,179
-
-
-
-
-
154,963
15,649
170,612
Placemaking		 £
38,761
-
-
17,756
-
11,869
-
2,125
-
-
-
70,511
19,658
90,169
Public
programme		 £
33,099
6,457
(1,916)
843
-
4,680
31,956
24,498
15,677
3,591
42,805
161,690
(161,690)
-
Support and
governance
costs		 2023 Total
£
351,912
6,457
73,145
396,256
4,303
21,685
38,248
26,839
17,296
4,236
42,805
983,182
-
983,182

Total governance costs were £10,117 (2022: £9,224)

32

Design West

Notes to the financial statements

For the year ended 31 March 2023

8. Total expenditure (continued) Prior period comparative

Prior period comparative
£
Staff costs (note 10)
59,022
Recruitment and training
-
Cost of goods sold
51,191
Production
2,674
Engagement and evaluation
-
Marketing and communications
2,198
Repairs and maintenance
72,666
Building costs
5,250
Office and admin
-
Finance and legal
-
Organisational development
2,169
Depreciation
-
Sub-total
195,170
Allocation of support and governance costs
34,967
Total expenditure
230,137
Raising funds		 £
91,367
-
-
109,976
-
255
-
-
-
-
-
-
201,598
54,130
255,728
Design
services		 £
22,094
-
-
107,149
483
3,904
-
-
-
-
-
-
133,630
13,090
146,720
Placemaking		 £
67,917
390
-
35,541
3,873
29,974
11,806
-
-
-
(92)
-
149,409
40,237
189,646
Public
programme		 £
5,273
-
-
-
-
-
-
-
-
-
-
-
5,273
3,124
8,397
Other
charitable
activities		 £
34,367
2,797
-
7,496
-
3,313
16,105
25,182
18,617
11,971
1,617
24,083
145,548
(145,548)
-
Support and
governance
costs		 2022 Total
£
280,040
3,187
51,191
262,836
4,356
39,644
100,577
30,432
18,617
11,971
3,694
24,083
830,628
-
830,628

33

Design West

Notes to the financial statements

For the year ended 31 March 2023

9. Net movement in funds

This is stated after charging:

Net movement in funds
This is stated after charging:
2023 2022
£ £
Depreciation 42,805 24,083
Trustees' remuneration Nil Nil
Trustees' reimbursed expenses 281 125
Auditors' / Independent examiner's remuneration:
Statutory audit / independent examination (excluding VAT) 7,500 3,000
Other services 1,844 1,000

In the current year three trustees were reimbursed for travel and certification costs (2022: one).

10. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs
Freelance staff		 2023
£
319,765
23,813
8,334
351,912
112,022
463,934		 2022
£
258,101
16,091
5,848
280,040
118,805
398,845

No employee earned more than £60,000 during the year.

The key management personnel of the charity comprise the Trustees, Director, General Manager, and Head of Design. The total employee benefits of the key management personnel were £128,833 (2022: £94,680).

Average number of employees (full-time equivalent) 2023
No.
12		 2022
No.
14

11. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The subsidiary company distributes any profits to the charity and therefore no corporation tax is payable.

34

Design West

Notes to the financial statements

For the year ended 31 March 2023

12.
Tangible fixed assets
Group and charity
Leasehold
property
£
Cost
At 1 April 2022
132,783
Additions in year
-
Transfers
-
Disposals
-
At 31 March 2023
132,783
Depreciation
At 1 April 2022
86,624
Charge for the year
1,062
Disposals
-
At 31 March 2023
87,686
Net book value
At 31 March 2023
45,097
At 31 March 2022
46,159
13.
Investments
Group and charity
Investment property
Design West Trading Limited
Market value at 31 March 2023
Investment property:
Market value at the start of the year
Revaluation gains
Market value at the end of the year		 Office
equipment
Fixtures
and fittings
Total
£
£
£
£
18,835
106,437
38,150
296,205
9,499
1,538
7,889
18,926
-
15,522
(15,522)
-
(1,844)
-
-
(1,844)
26,490
123,497
30,517
313,287
10,975
16,200
2,412
116,211
5,793
31,901
4,049
42,805
(1,844)
-
-
(1,844)
14,924
48,101
6,461
157,172
11,566
75,396
24,056
156,115
7,860
90,237
35,738
179,994
Restated
Restated
2023
2022
2023
2022
£
£
£
£
825,000
712,500
825,000
712,500
-
-
1
-
825,000
712,500
825,001
712,500
Restated
Restated
2023
2022
2023
2022
£
£
£
£
712,500
398,348
712,500
398,348
112,500
314,152
112,500
314,152
825,000
712,500
825,000
712,500
Leasehold
improvement
The group
The charity
The group
The charity		 Total
£
296,205
18,926
-
(1,844)
313,287
116,211
42,805
(1,844)
157,172
156,115
179,994
712,500

35

Design West

Notes to the financial statements

For the year ended 31 March 2023

13. Investments(continued)

Investments in subsidiaries

The investment represents 100% of the ordinary share capital of Design West Trading Limited (company number 14049103), whose principal activity is to carry out trading activities in support of the charity. A summary of the financial results and position of trading subsidiary is given in note 14.

Investment property

16 Narrow Quay, Bristol was transferred to the charity on 24 June 1997. The property was held as a tangible fixed asset and depreciated over the 125 year leasehold term. At this time, the building was used fully by Design West for operational use. In the year ended 31 March 2017 the building became a mixed use investment property. At this date 75% of building was transferred to investment property and is held at fair value, with the remaining 25% held as a tangible fixed asset and depreciated over the 125 year leasehold term. The tangible fixed asset portion represents the portion of the building occupied by Design West for operational use.

An external valuation of the residential properties was carried out by Alder King LLP, chartered surveyors, as at 31 March 2023 on a fair value basis at £1,100,000. Unless advised to the contrary, the valuers assume that no work would is required to any building by a prospective owner or occupier to comply with regulatory requirements. Prior year valuations have been provided by the trustees.

The trustees are satisfied that the valuation provided by Alder King Property Consultants was carried out by experts with sufficient relevant qualifications, and recent experience in the location and class of the property being valued.

36

Design West

Notes to the financial statements

For the year ended 31 March 2023

14. Subsidiary undertakings

Design West Trading Limited

The charity owns the whole of the issued share capital (1 ordinary £1 share) of Design West Trading Limited, a company newly registered in England and Wales on 14 April 2022. The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are donated to the charity. A summary of the results of the subsidiary is shown below:

Turnover
Cost of sales
Gross profit
Administrative expenses
Loss on ordinary activities
Corporation tax
Loss for financial period
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds		 2023
£
119,110
(50,183)
68,927
(98,647)
(29,720)
-
(29,720)
2023
£
21,528
(51,247)
(29,719)

37

Design West

Notes to the financial statements

For the year ended 31 March 2023

15. Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

Gross income
Results for the year
16.
Stock
Café and bar stock
17.
Debtors
Trade debtors
Prepayments and accrued income
Amounts due from group undertakings
18.
Creditors : amounts due within 1 year
Trade creditors
Accruals
Deferred income (see note 19)
Other taxation and social security
VAT
Other creditors		 2023
2022
£
£
7,371
8,633
2023
2022
£
£
110,389
144,263
8,448
15,587
-
-
118,837
159,850
2023
2022
£
£
41,579
78,759
25,579
16,589
96,767
45,979
9,941
5,643
31,690
18,720
2,066
1,835
207,622
167,525
The group
The group
The group		 2023
2022
£
£
1,105,302
824,797
247,299
308,321
2023
2022
£
£
-
8,633
2023
2022
£
£
110,239
144,263
8,448
15,587
42,477
-
161,164
159,850
2023
2022
£
£
44,846
78,759
24,379
16,589
96,767
45,979
7,255
5,643
27,441
18,720
2,066
1,835
202,754
167,525
The charity
The charity
The charity		 2022
£
824,797
308,321
167,525

38

Design West

Notes to the financial statements

For the year ended 31 March 2023

19. Deferred income

At 1 April 2022
Deferred during the year
Released during the year
At 31 March 2023		 2023
2022
£
£
45,979
29,497
96,767
45,979
(45,979)
(29,497)
96,767
45,979
The group		 2023
2022
£
£
45,979
29,497
96,767
45,979
(45,979)
(29,497)
96,767
45,979
The charity		 2023
2022
£
£
45,979
29,497
96,767
45,979
(45,979)
(29,497)
96,767
45,979
The charity
45,979

Deferred income relates to services paid for in advance of provision.

20. Analysis of net assets between funds

Tangible fixed assets
Investments
Current assets
Current liabilities
Net assets at 31 March 2023
Tangible fixed assets
Investments
Current assets
Current liabilities
Net assets at 31 March 2022
Prior year comparative
(restated)		 £
-
-
42,414
-
42,414
£
-
-
24,439
-
24,439
Restricted
funds
Restricted
funds		 £
45,097
825,000
160,000
-
1,030,097
£
46,159
712,500
59,999
-
818,659
Designated
funds
Designated
funds		 £
111,018
-
441,403
(207,622)
344,799
£
133,835
-
383,683
(167,525)
349,993
General
funds
General
funds		 Share
capital
£
-
-
-
-
-
Share
capital
£
-
-
2,740
-
2,740		 Total
funds
£
156,115
825,000
643,817
(207,622)
1,417,310
Total
funds
£
179,994
712,500
470,862
(167,525)
1,195,831

39

Design West

Notes to the financial statements

For the year ended 31 March 2023

21. Movements in funds

Movements in funds
Restricted funds
BCC Lockleaze
BCC CIL
Temple Commission
Unlocking Resilience
Education & Inspiration Fund
Total restricted funds
Designated funds:
Building renovation
Property
Education
Programme
Organisational development
Total designated funds
General funds
Share capital
Total unrestricted funds
Total funds
Creating Excellence
Regional Fund
Unrestricted funds		 At 1 April
2022
£
7,695
2,744
20,000
(25,000)
19,000
-		 Income
£
4,999
-
-
25,000
-
11,377		 £
£
(6,630)
-
(600)
-
-
-
-
-
(4,794)
-
(11,377)
-
(23,401)
-
-
-
(1,062)
112,500
-
-
-
-
-
-
(1,062)
112,500
(958,719)
-
-
-
(959,781)
112,500
(983,182)
112,500
Expenditure
Revaluation
gains		 £
-
-
-
-
-
-
-
15,000
-
-
25,000
60,000
100,000
(97,260)
(2,740)
-
-
Transfers
between
funds		 £
6,064
2,144
20,000
-
14,206
-
At 31
March
2023
24,439 41,376 (23,401) - 42,414
25,000
758,659
10,000
25,000
-		 -
-
-
-
-		 -
(1,062)
-
-
-		 -
112,500
-
-
-		 40,000
870,097
10,000
50,000
60,000
818,659 - (1,062) 112,500 1,030,097
349,993
2,740		 1,050,785
-		 (958,719)
-		 -
-		 344,799
-
1,171,392 1,050,785 (959,781) 112,500 1,374,896
1,195,831 1,092,161 (983,182) 112,500 1,417,310

Purposes of restricted funds

BCC Lockleaze

Bristol City Council partnership funding for a small Placemaking project for community co-design in Lockleaze, Bristol.

BCC CIL

Bristol City Council, Community Infrastructure Levy fund towards The Green Way, a series of infrastructure, cycling and tree planting improvements across three sites (St Pauls Learning Centre, St Pauls Adventure Playground, Halston Drive Community Room) and a ‘green’ route through St Pauls.

Temple Commission

Funding for public art commission in the area of Temple Church (Cubex) to be deployed when conservation works are finished and the site is open.

40

Design West

Notes to the financial statements

For the year ended 31 March 2023

21. Movements in funds (continued)

Purposes of restricted funds (continued)

Unlocking Resilience

Heritage Fund project to introduce more resilient models and a CRM to underpin our heritage programme including Bristol Open Doors. Although severely impacted by Covid-19 the project was completed in 21/22 and the final £25K was received in 22/23.

Creating Excellence Regional Fund

Funding from Creating Excellence to develop regional working, promoting design and placemaking into the South West.

Education & Inspiration Fund

Funding towards the refurbishment and kit-out of our first floor Education and talks/workshop spaces. Includes the provision of audio visual equipment and acoustic panelling to make the spaces usable. Clothworkers and Vinci Foundation contributed to this fund in 22/23.

Purpose of designated funds

Building renovation

Following the planned capital transformation in 21/22 the trustees have created a building fund to secure funds for future capital work and repairs. This will cover critical future work including repairing the render on the rear of the building and the roof etc.

Property

The property fund represents the net book value of the investment and leasehold property held at the year end.

Education

The Trustees have designated a fund towards the development and safeguarding of our education work with diverse young people. We anticipate that this work may be impacted by recession.

Programme

Our public programmes, including Bristol Open Doors are reliant on a dwindling pool of public subsidy. In light of austerity and the current funding climate the trustees have put aside a fund for supporting public tours and events in 2023 and for developing ideas for 2024.

Organisational development

The charity has been through a period of rapid growth. Over the past year, the trustees have planned to expand the core team of the organisation, investing in new SLT roles to reflect our new size and gear us up for future growth. This investment will be loss-making in the short term, thus a fund is set aside for 2023-2025 to pay for this investment.

Share capital

As at 1 April 2022, Design West was a charitable company with share capital. During the year ended 31 March 2023 Design West has converted to a Charitable Incorporated Organisation (CIO). The share capital has been transferred to general funds on conversion to CIO status.

Transfers

The transfer to designated funds represents an amount the trustees deem reasonable to allocate for a specific project.

41

Design West

Notes to the financial statements

For the year ended 31 March 2023

21. Movements in funds (continued)
Prior year comparative
(restated)
At 1 April
2021
£
Restricted funds
BCC Lockleaze
8,002
BCC CIL
4,844
Temple Commission
20,000
Green Horizons
13,500
Placemaking
2,400
Unlocking Resilience
25,000
Creating Excellence
Regional Fund
-
CRF2 Designing
Creative Recovery
-
Total restricted funds
73,746
Designated funds:
Capital Transformation
228,195
Property
445,569
Education
10,000
Programme
-
Total designated funds
683,764
General funds
127,260
Share capital
2,740
Total unrestricted funds
813,764
Total funds
887,510
Unrestricted funds		 21. Movements in funds (continued)
Prior year comparative
(restated)
At 1 April
2021
£
Restricted funds
BCC Lockleaze
8,002
BCC CIL
4,844
Temple Commission
20,000
Green Horizons
13,500
Placemaking
2,400
Unlocking Resilience
25,000
Creating Excellence
Regional Fund
-
CRF2 Designing
Creative Recovery
-
Total restricted funds
73,746
Designated funds:
Capital Transformation
228,195
Property
445,569
Education
10,000
Programme
-
Total designated funds
683,764
General funds
127,260
Share capital
2,740
Total unrestricted funds
813,764
Total funds
887,510
Unrestricted funds		 Income
£
-
-
-
-
-
-
19,000
30,118		 £
£
(307)
-
(2,100)
-
-
-
(13,500)
-
(2,400)
-
(50,000)
-
-
-
(30,118)
-
(98,425)
-
(203,195)
-
(1,062)
314,152
-
-
-
-
(204,257)
314,152
(527,946)
-
-
-
(732,203)
314,152
(830,628)
314,152
Expenditure
Revaluation
gains		 £
£
(307)
-
(2,100)
-
-
-
(13,500)
-
(2,400)
-
(50,000)
-
-
-
(30,118)
-
(98,425)
-
(203,195)
-
(1,062)
314,152
-
-
-
-
(204,257)
314,152
(527,946)
-
-
-
(732,203)
314,152
(830,628)
314,152
Expenditure
Revaluation
gains		 £
£
-
7,695
-
2,744
-
20,000
-
-
-
-
-
(25,000)
-
19,000
-
-
-
24,439
-
25,000
-
758,659
-
10,000
25,000
25,000
25,000
818,659
(25,000)
349,993
-
2,740
-
1,171,392
-
1,195,831
Transfers
between
funds
At 31
March 2022		 £
£
-
7,695
-
2,744
-
20,000
-
-
-
-
-
(25,000)
-
19,000
-
-
-
24,439
-
25,000
-
758,659
-
10,000
25,000
25,000
25,000
818,659
(25,000)
349,993
-
2,740
-
1,171,392
-
1,195,831
Transfers
between
funds
At 31
March 2022
73,746 49,118 (98,425) - 24,439
228,195
445,569
10,000
-		 -
-
-
-		 (203,195)
(1,062)
-
-		 -
314,152
-
-		 25,000
758,659
10,000
25,000
683,764 - (204,257) 314,152 818,659
127,260
2,740		 775,679
-		 (527,946)
-		 -
-		 349,993
2,740
813,764 775,679 (732,203) 314,152 1,171,392
887,510 824,797 (830,628) 314,152 1,195,831

42

Design West

Notes to the financial statements

For the year ended 31 March 2023

22. Related party transactions

During the year, C Kwiatkowski, a trustee, was paid for design services by the charity totalling £3,581 (2022: £2,200).

The charity paid £4,740 (2022: £nil) to Creating Excellence for Design Review Services. This entity is connected through Dominic Murphy who is a trustee of Design West and was director of Creating Excellence until it was dissolved on 3 January 2024. No amounts were outstanding at the year end (2022: £nil).

Design West Trading Limited (wholly owned subsidiary of Design West)

Design West Trading Limited was incorporated in the year and is a wholly owed subsidiary of Design West. At 31 March 2023, Design West Trading Limited owed Design West £42,477.

43