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2024-03-31-accounts

Creative Kernow Limited (Limited by Guarantee)

Trustees’ Annual Report and Financial Statements

For the year ended 31 March 2024

Company registration number 01727731 Charity registration number 292138

Creative Kernow Limited (Limited by Guarantee)

Contents

Page
Reference and administrative information 1
Trustees’ report 2 – 16
Statement of Trustees’ responsibilities 17
Independent auditor’s report 18 – 21
Consolidated statement of financial activities 22
Consolidation and company balance sheet 23
Consolidated statement of cashflows 24
Notes to the financial statements 25 – 50

Creative Kernow Limited (Limited by Guarantee)

Reference and administrative information

For the year ended 31 March 2024

Charity registration number 292138
Company registration number 01727731
Registered office and business Krowji
address West Park
REDRUTH
Cornwall
TR15 3AJ
Other names of the charity Arts Centre Trust, ACT, Creative Skills
Chief Executive Officer Fiona Wotton
Trustees Tamara Bedford
Amanda Berry
Jonathan Bray
Paul Brookes (appointed 15 May 2023)
Ajay Chhabra
Hannah Irwin
Eleanor Jubb (resigned 31 October 2023)
John Pulford (resigned 5 January 2024)
Charlotte Somers (resigned 7 September 2023)
James Sculthorp-Wright
Paul Springer
Claudia Alvila de Oldroyd (appointed 21 October 2024)
Sam Jones (appointed 21 October 2024)
Sovay Alice Berriman (appointed 21 October 2024)
Lisa Telfer Brunton (appointed 21 October 2024)
Secretary Fiona Wotton
Auditors RRL LLP
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
Bankers CAF Bank Limited
PO Box 289
WEST MALLING
Kent
M19 47A
Lloyds Bank Plc
7 Boscawen Street
TRURO
Cornwall
TR1 2QT
Solicitors Nalders
Farley house
Falmouth Road
TRURO
Cornwall
TR1 2HX

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

The Trustees, who are Directors for the purposes of company law, are pleased to present their group annual report and the audited financial statements for the year ended 31 March 2024. This report is a combined annual report containing a Directors' report as required by company law.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s Memorandum and Articles of Association, the Companies Act 2006 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)”.

Reference and Administrative information, set out on Page 1, forms part of this report.

Governance

Creative Kernow Limited is a charity registered in England and Wales (charity number 292138) and is a company limited by guarantee (company number 01727731). It has no share capital. On appointment as a trustee you are automatically made a member. Membership ends when you cease to be a trustee. The liability of each member in the event of winding-up is limited to £5. The governing documents are the Memorandum and Articles of Association.

The charity Trustees during the year, appointed since the year end and at the date of this report are:

Trustees

Tamara Bedford Amanda Berry Jonathan Bray Paul Brookes (appointed 15 May 2023) Ajay Chhabra Hannah Irwin Eleanor Jubb (resigned 31 October 2023) John Pulford (resigned 5 January 2024) Charlotte Somers (resigned 7 September 2023) James Sculthorp-Wright Paul Springer Claudia Alvila de Oldroyd (appointed 21 October 2024) Sam Jones (appointed 21 October 2024) Sovay Alice Berriman (appointed 21 October 2024) Lisa Telfer Brunton (appointed 21 October 2024)

All Directors of the company are also Trustees of the charity and there are no other Trustees. The Board has the power to appoint additional Trustees as it considers fit to do so. Although no specific training is required for new Trustees, they are made aware of the useful guidance offered by the Charity Commission and others. Policy decisions are made by the Board at regular meetings.

Organisational Structure

During 2023/24 Creative Kernow Limited had three wholly-owned subsidiary companies. Their activities during the year are covered as part of the report below.

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Krowji Ltd is a company limited by shares, number 05420248, and wholly owned by Creative Kernow. It has a board of Directors - Greg Oldrieve (Chair), Jonathan Bray, Anna Brown, Matthew Brown and Katie Tregidden (resigned 30 April 2024). It was established in 2005 and its main role is to operate the creative workspace cluster at Krowji in Redruth - the freehold of the property is held by Creative Kernow and Krowji Limited has a long leasehold interest.

Cornwall Arts Marketing Ltd is a company limited by shares, number 04346555, and wholly owned by Creative Kernow. It has a board of Directors – Paul Brookes (Chair) and Hannah Irwin. Its main role is to operate the Cornwall 365 What’s On listings service and printed guide, box office and consultancy services.

Screen Cornwall Ltd is a company limited by shares, number 11881973, and was wholly owned by Creative Kernow during the year. It has a board of Directors - Phillippa Giles (Chair), Simon Harvey, Mandy Berry, Amanda Pyne, Francesca Gilpin and Alex Smith. It has been set up to drive the development of the screen industries in Cornwall and the Isles of Scilly, working with incoming film & TV productions, businesses, and individual freelancers to build a strong and thriving production sector. This company was converted to a Community Interest Company on 3[rd] January 2025. On 11[th] March 2025, Creative Kernow sold a 86% share of the company and therefore it is no longer part of the group at the date of signing these accounts.

All three subsidiary companies were established in order to carry on activities which are directly in pursuit of Creative Kernow's charitable objects and so could legitimately be carried on by the charity itself, but which the Trustees judged to be more prudently carried on in a subsidiary company for reasons of financial efficiency and to reduce the risk to the charity's core assets.

Objectives and activities

The objectives of the charity are to provide exhibitions of the arts of dance and drama, to provide training in the arts and arts management and to further the public appreciation of the aforesaid. New charitable objectives were agreed by the Creative Kernow Board in May 2024 and were awaiting Charity Commission approval. The board resolved to adopt the Charity Commission model articles of association in March 2025.

Public benefit statement

The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

Summary

This group report covers the financial year from April 2023 to March 2024. It reviews our objectives, activities, and governance; our achievements and financial performance during the year; our work with other agencies and organisations; and our future plans for the organisation and its subsidiary companies.

Creative Kernow is the cultural and creative sector support organisation for Cornwall and the Isles of Scilly. We are a charity with a mission to champion creativity as a force for positive change in Cornwall and the Isles of Scilly. We do this though enriching and energising creative communities of place and practise through the production, distribution and promotion of artistic work, networks, and knowledge.

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Our core programmes deliver activity in three dynamically interdependent areas:

----- Start of picture text -----
Creative
Creative
Economy
Communities
and Skills
Creative Hubs
----- End of picture text -----

Creative Communities

Investing in high quality cultural and creative experiences which are accessible to all and which contribute to placemaking, confidence, connection and health. Our activity includes:

These programmes form our activity funded by Arts Council England

Creative Economy and Skills

Supporting creative businesses to grow and creating the conditions for the wider creative economy to flourish and succeed

Development of our trading companies in offering B2B services

Creative Hubs

Providing affordable professional workspace for the creative industries at Krowji in Redruth

Exploring options for expansion into other locations

Commercial consultancy services

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Our businesses

We extend the work of the charity and generate additional income through our three trading companies:

Cornwall Arts Marketing

Krowji

Screen Cornwall

Creative Kernow is a well-established charity and social enterprise with an experienced board of Trustees and a strong staff team. Our finances are broadly based with a variety of income sources including long-term grant support from Arts Council England and Cornwall Council. Following Brexit and the end of the European funding programmes we have succeeded in securing funding through the succession streams Community Renewal and the Shared Prosperity Fund. Earned income from commissions and contracts, box office income from events and rental income from our workspace cluster in Redruth are also significant revenue streams.

Creative Kernow contributes significantly to developing and delivering effective models for creative and cultural practice, sector, community and audience engagement, clusters and networks and leadership development in our rural region. We continually develop new projects and partnerships, seeking opportunities to enhance our sustainability as an organisation, supporting other initiatives and playing an active role in advocacy and leadership for the sector and for Cornwall. Creative Kernow has a good track record of developing innovative projects, investing in our staff, being willing to take risks and planning for the longer term.

Performance

This section provides a summary of activity between April 2023 and March 2024, and it is divided into our programme delivery strands: Creative Communities, Creative Enterprise, and Creative Hub Development.

Creative Communities

Feast

Over 90 projects received funding from FEAST in 23/24, receiving in total around £125,000, engaging with over 2,300 artists across the length and breadth of Cornwall. The combined live audience for FEAST-funded events was over 23,000. The FEAST team continues to provide important advice and guidance for those developing arts and cultural project in Cornwall, responding to a high volume of calls and emails. Offering over 600 engagements, enquiry response and advice sessions this year.

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Some highlights from funded projects include:

Overrated Cornwall , an exhibition of original artworks inspired by outrageous and hilarious 1-star TripAdvisor reviews of our beloved Cornish towns, villages and landmarks. Created by Sally Mitchell, artist, designer and photographer of Mevagissey, the artworks were installed boldly throughout Helston’s Museum of Cornish Life’s permanent displays from July to September. Visitors topped 3,000 people, and a video tour, narrated as a conversation between curator Tehmina Goskar and Sally Mitchell was shared online reaching a further 3,000 audiences.

Bal Maiden Musical , a brand new and original musical following the adventures of Merryn, a fictional bal maiden in the 1830s. Written by Lucetta Radcliffe, this community production was interspersed with 30 original songs played by a live orchestra and a community cast of 26 amateur actors. The production had a sell-out run at Princess Pavilion in Falmouth from 16[th] -18[th] November reaching 838 audience members.

Arthur’s Club , an inclusive, live storytelling show aimed at children aged 2-9 and their families. Key word signing was woven into the storytelling, so story, spoken word and sign were all intrinsically linked. Performed by Makaton teacher Rebecca Hulbert and Directed by Mydd Pharo (Wildworks), Arthur’s Club toured indoor and outdoor venues including The Minack Theatre, Trebah Gardens, Sterts Theatre, libraries, community spaces and primary schools across Cornwall, with an audience of 1,815 people.

Experience Newquay Commissioning

This year FEAST led the commissioning process for Experience Newquay, a project promoting sustainable year-round tourism whilst connecting local Cornish communities and visitors with Newquay’s unique identity via cultural activities and programming. Two types of grants were available: One for cultural activities (workshops, exhibitions, events, performances) with an element that has a lasting legacy, multiple grants of up to £7,500; and a second for permanent installations in Newquay town centre, two grants of up to £30,000. FEAST team worked with the Newquay community to develop the funding criteria and select projects.

Arts Lab

Arts Lab, the collaborative project between Creative Kernow, Arts Well and Headstart Kernow, continued to work with young people across Cornwall to deliver bespoke projects co-designed by young people and artists. In 2023/24 Arts Lab worked with 38 young people’s settings, including primary schools, secondary schools, alternative provisions, SEND schools, Children and Adolescent Mental Health Services and youth groups.

Delivering the second year of Arts Lab demonstrated the continued need for creative wellbeing projects for young people who are experiencing many forms of challenges that affect their mental and emotional wellbeing and, crucially, showcased the power of the arts as a tool for ALL young people to regulate, articulate and cooperate, regardless of their identities and experiences.

Over the three academic years between 2022 and 2024, Arts Lab will engage with over 2,900 young people from 86 settings, with over 300 teachers, support staff and youth workers supporting projects delivered by over 100 artists. Over 5,000 community members will have experienced the quality of what young people can achieve. 44% of projects have taken place in areas in the 1st to 3rd decile in the index of multiple deprivation in the UK.

All Arts Lab projects are carefully evaluated. 100% of teachers and youth workers feeding back report a positive impact on young people’s wellbeing as a consequence of the Arts Lab project.

Funding applications to continue Arts Lab after July 2025 are underway.

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Carn to Cove

Carn to Cove delivered two successful seasons. The Autumn/Winter season ran from September to December with 35 performances and Spring/Summer February to June season had 46 performances. The programme worked with 227 artists, producing work in 53 venues across Cornwall and the Isles of Scilly. There were over 4,400 live audience members for Carn to Cove events, as well as ways to engage digitally through online dance workshops and training sessions for community promoters. A survey in the final quarter of 2023/24 indicated that 30% of the audience were first time Carn to Cove attendees. The performances supported income generation for village halls where performances took place £9,000, as well as generating some earned income for the charity £24,000.

The programme supported local artists: Bike by Bodkin Theatre for a near sell out tour, Chippy written by Henry Darke and produced locally, Common Ground: Greenham by feminist theatre company Scary Little Girls. We’ve made a conscious effort to support more work for young people and families and were delighted to use Shared Prosperity funding to programme a performance of I Piano for 100 children and parents at Calstock Primary School which was both free for the school and for all the pupils attending.

FLAMM

Over one weekend in October 2023, Redruth was bustling with energy. A new contemporary art festival, Flamm, made its debut. Work by over 40 artists in 26 exhibitions, installations, workshops and performances was presented at a range of formal and informal venues across the town. That weekend saw 11675 visits to Flamm events and an estimated 1354 individual visitors. The number may not seem significant when compared to festivals in large urban centres, but it’s significant for Redruth – the cafés, bars and shops were buzzing and we were met with overwhelming positive feedback from the visitors and the community. FLAMM is funded by the Extraordinary Art in Everyday Places Shared Prosperity Fund project which aims to invigorate community festivals in Cornwall.

C Fylm

Between April 2023 – March 2024, C Fylm held 279 community cinema events in 32 venues across Cornwall, to an audience of 6,000 people.

Some highlights this year have included:

To celebrate C Fylm’s 10th birthday and Screen Cornwall’s Launching a Cornish Public Service Media programme, we invited our community cinemas and other non-theatrical and theatrical exhibitors to take part in Kernow Kino, funded by the BFI Film Audience Network and UK Shared Prosperity Fund. Kernow Kino is a celebration of authentic representation of Cornwall on screen, and includes a programme of Cornish features and short films. Our mission is to connect broader audiences to content produced by local filmmakers that reflect the rich diversity of Cornwall’s language, culture, heritage and communities.

With funding from the BFI’s FAN Exhibition Fund, we continued to screen cultural cinema to audiences across Cornwall. Volunteer organisers hosted food and film nights, surf films, and family film screenings in school holidays.

A programme of films in the Krowji café, collaborating with Krowji-based artists to curate wrap-around activities rooted in sustainable fashion. In September we screened The Nettle Dress, a documentary about Allan Brown, who creates a dress by hand from foraged nettles over seven years. Seasalt Cornwall donated fabric and materials which Vicki used in a stitch workshop, Aneta Staciwa demonstrated how to make pasta from foraged nettles, and Olga Owczarek facilitated the creation of a communal loom piece. Stones Café provided hot soup, and we held a clothes swap before the screening.

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

In June, we collaborated with Bosena and Cornish Mining World Heritage Sites to produce three special screenings of BAFTA award-winning Cornish filmmakers Mark Jenkin’s Enys Men. These took place in three CMWHS venues, followed by a panel discussion and Q&A hosted by Enys Men producer & Bosena founder Denzil Monk.

Monthly Zoom catch ups with volunteers are continuing to provide space for connectivity, sharing ideas and skills, and in November we held our first in-person meet up since before the pandemic.

Creative Economy and Skills

Screen Cornwall

In the 2023/24 financial year Screen Cornwall experienced significant activity funded through the UK Shared Prosperity Fund. This has strengthened industry partnerships, elevated discussions on minority languages in media and continued to develop opportunities for local talent in the screen sector. Screen Cornwall has championed Cornish language projects, with Kernewek named as a minority language in the media bill for the first time, and thanks to an additional investment from the Devolution Deal for Cornwall launched the largest ever commissioning round, including Cornish language feature film development strands.

Screen Cornwall grew the crew data base to 305 and recorded more than 75 new freelance opportunities for local crew. The First Break initiative led to 11 placements for those with little or no experience in the industry to gain a valuable first experience. In early 2024, 4 experienced crew freelancers delivered four workshops for early-stage crew participants in partnership with Screen Cornwall.

Screen Cornwall has continued to support local writers, Directors and producers to develop their skills and credits. Screen Cornwall programmes provided 57 hours of one-to-one support, seven networking & skills events, engaging 150 people. Three graduate short films were commissioned.

Work to develop a Kernow Public Service Media provision continues, through work funded by Share Prosperity Fund. This year, Screen Cornwall commissioned two short Cornish Language Films. Working with CFylm, a collection Cornish-made films were screened in film clubs and cinemas across the region. There were 15 screenings and over 250 audience members. There were 11 nominations for the Celtic Media Festival (CMF) in June 2023. Screen Cornwall has now joined the CMF Board and has secured the 2025 festival to take place in Newquay. Screen Cornwall secured funding from the devolution deal to commission four feature films in Kernewek and a co-production between Cornwall and Brittany.

Screen Cornwall continues to deliver the BFI Film Academy, in collaboration with Falmouth University and this year welcomed 15 participants, aged between 16 and 19. Since September 2023, Screen Cornwall has been working with six charities and community organisations across Cornwall to engage 83 individuals in introductory filmmaking workshops, enabling participants to share their stories.

In partnership with Cornwall Games and Software Cornwall, Screen Cornwall delivered a second ‘Imagination Unleashed’ event in March 2024. Over 160 school students attended, alongside over 60 industry attendees.

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Cornwall 365 Network / What’s On

The Cornwall 365 team delivered four What’s On print guides during 2023/24 as well as a range of other services from online listings to promotional partnerships. Advertising income fell slightly in comparison with the previous financial year reflecting the impact of the planned price increase implemented this year.

Activity funded through the Good Growth programme saw the inception of the What’s On App an exciting digital solution to enable users to discover events and access Cornwall’s rich cultural and heritage scene. The app is built on the following user journey: Discover > Book > Feed Back

Alongside the development of the app the new Cornwall 365 box office was launched. This facility is supporting small scale cultural events producers following the end of the longstanding Cornish Riviera Box Office (CRBO) and most of their client base has moved over. Income was behind target which reflected numerous delays in getting the financial infrastructure set up to receive payments.

The C365 team continued to deliver skills training sessions for Experience Newquay and the Festivals Network – both programmes focusing on digital marketing and promotional skills to help cultural producers reach new audiences and be more sustainable.

Open Studios Cornwall continued to be a challenge to manage with the project running at a loss and failing to fully meet the needs of the artistic community.

Cultivator

It was with great sadness that we brought the hugely successful and highly regarded Cultivator Creative Business Development programme to a close in December 2023. Our attempts to secure continuation funding through the Shared Prosperity Fund were unsuccessful and the team brought activity to an end in line with the two different funding strands:

The ERDF-funded Business component of Cultivator completed activity on 30 June, with financial end date (the date by which all spend on the project completed) on 31 August. The final claim was submitted to DLUHC on 15 September ahead of the practical end date, as required.

The ESF-funded Skills component of Cultivator continued activity until 31[st] October, with a financial & practical end date of 31 December. The penultimate ESF claim was submitted on 11 October with the final submitted in February 2024.

We said farewell to our team of Creative Business Advisors and one administrator at the end of July, and only a skeleton administrative team continued until the end of December in order to complete the ESF project.

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Over the course of Cultivator Phase 2 the programme achieved the following outputs and outcomes:

The Trustees wish to record their thanks to all the Cultivator team for their dedication to creative business support and for making the programme such a success in meeting the demands of the enterprises in Cornwall and the Isles of Scilly.

Creative Hubs

Krowji

Occupancy and income

Despite the highly challenging economic climate, we have far exceeded the occupancy levels predicted for this year and achieved an average of 98% occupancy in 2023/24. The increase in calibre of practitioners and businesses applying for our studios is having a notable impact on Krowji’s growing reputation for creative excellence and adding another draw for both emerging and established practitioners to make Krowji their first choice.

Tenants were notified of a 5% blanket increase across all studios with a further increase for studios inclusive of electricity from April 2024. The overall increase was capped at 10% this financial year to support the tenants and maintain good occupancy levels. With the electricity tariff increasing by approximately 130%, 50p per sq ft was added to all studios inclusive of electricity and tenants were advised of a further significant increase in April 2024.

The team had planned for and anticipated large studio vacancies and prioritised marketing and communications around promoting available spaces as well as exploring alternative uses for these large studios. Some studio rent was also lost due to roof leaks and tenants needing to be moved to alternative studios and compensated. Building maintenance and repairs continued onsite, despite delays from the previous year due to fire damage related repairs and work. The Yard site operated at 100% occupancy.

Events and outreach

Krowji continued to support tenants in developing Micro Markets to boost retail opportunities for artists.

The October Fun Palace event offered a range of creative activities , craft workshops and technical demonstrations led by Krowji tenants and showcasing the work of partners including CAMP, Queer Kernow and UPG.

Christmas Open Studios welcomed over 300 members of the public to the site. The studio manager Emma Wood and administrator Hannah Andrews ran the event and invited members of the public, especially young people, to make Christmas decorations to hang on a tree to be then gifted to a local family supported by St Petrocs. A Shoebox Appeal was also organised with Krowji as a drop-off point, and Vocal Presence Choir gave a performance with the proceeds going to the Foodbank.

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Phase 3 capital project

With £382,819 secured from the Shared Prosperity Fund and funds in place from the insurance settlement of £606,035 received in the prior year by the charity, the board and Krowji team moved forwards with plans for a small scale capital project to deliver additional studios to replace those lost in the 2021 fire. Working with architects Artel21, designs for a container complex were granted planning permission in January 2024 and the studios are expected to be ready for tenant use in April 2025. The programme of funded activity also includes reviewing sustainability and accessibility across the Krowji site.

Partnership activities and other projects

Creative Kernow plays a key part in innumerable partnership projects across Cornwall and further afield, often going far beyond what is formally required or expected by our funders. All our projects involve working in partnership with others and this is one of the most rewarding aspects of our role.

Highlighted partnership working:

Our Arts Lab partnership project with Arts Well CiC and Headstart Kernow has supported much needed creative interventions to support mental wellbeing for young people and extended our knowledge in the field of creative health allowing increased commission and professional development opportunities for artists.

Screen Cornwall has led a consortium of creative organisations supporting the development of creative careers resources and infrastructure. The partnership which includes Hall for Cornwall, Asone and Creative Kernow is funded through Cornwall Council’s Creative Investment Programme Talent Development package. Work in 23/24 included the second edition Imagination Unleashed Createch Showcase attended by 160 schools and college students and 60 industry contacts.

Krowji have continued to offer advice to other emerging creative hubs and workspaces in different parts of Cornwall. Partnership in this area supports the connectivity between hubs which benefits tenants, staff and the wider sector. It is, however, a service that Krowji will be looking monetise as a future revenue stream.

Our links with projects in Redruth remained a priority. Creative Kernow has continued to co-ordinate activity around the legacy of the Redruth Unlimited cultural programme as part of High Street Heritage Action Zone (HSHAZ) funded by Historic England.

Our staff were as always involved in a wide variety of other local and regional initiatives, sometimes in a work capacity and sometimes personally. These included the boards or steering groups for CIOS LEP Creative Industries Sector Board, Kernow Education Arts Partnership, Miracle Theatre, Cornwall Wildlife Trust, Cornwall Media Resource, Cornwall Digital Skills Partnership, Cornwall Film Festival, Goldentree, Cousin Jacks, The Tin Coast Partnership, Leach Pottery, Scary Little Girls and O-Region as well as a number of strategy review bodies. This is a key aspect of Creative Kernow’s work which is hard to quantify, but which is highly valued by our funders.

Financial Review

The Creative Kernow group made a deficit of £80,853 in the year to 31 March 2024 (2023: surplus of £451,600). This was largely as a result of 2023/24 being the last year of ESIF funding, the Cultivator Programme, producing reduced income in the year. Trustees agreed to some spending from reserves to capitalise on the legacy of the Cultivator programme and the development of a new business support offer. As a result of the reduced funding, other sources of income were explored including a new fundraising function but which only started to generate income towards the end of the year.

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

The group’s reserves as at 31 March 2024 totalled £4,826,574 (2023: £4,907,427). Of these reserves £1,129,873 were unrestricted (2023: £1,164,173) with £792,589 (2023: £502,674) classed as free reserves. The Trustees designated £67,000 of unrestricted reserves as a fund to ensure that, should the charity cease to continue to operate, the amounts to pay its staff their final salary payments and redundancy costs were set aside.

The charity’s policy on the level of reserves is that they should provide at least three months’ operating costs for Creative Kernow’s core team; the reserves continue to be adequate for that purpose. In light of recent analysis of likely costs and the uncertain public funding landscape Trustees have recommended the formation of a designated fund for closure to include estimated staff redundancies, as discussed above. A change to the reserves policy to provide at least six months operating costs for the core team to reflect the complexity of the task of a major restructure, merger or closure of the charity is also being considered.

Trustees, and in particular the finance committee are closely monitoring our 24/25 forecast and budgets in development for 2025/26. These show an improving financial picture with all programmes and subsidiaries contributing to the operational budget and identifying areas of expenditure which can be lowered. Further cost savings are being considered in relation to staffing and group structure which would reduce costs and enable a surplus position to rebuild reserves.

Financial performance of our subsidiary companies

Krowji Ltd

Krowji made a loss after tax for the year of £2,823 (2023: profit of £58,397). The company has seen slow growth in income as it recovers from the fire in 2021 and parts of the building are unable to be let. Work to repair the buildings has been undertaken after the year end and will be completed by the end of March 2025 ensuring maximise space is available for let. Retained earnings carried forward at 31 March 2024 were negative reserves of £43,078 (2023: negative reserves of £40,255). The charity is prepared to continue to support the company and look for ways to ensure it can achieve positive net assets, reduce exposure to corporation tax liabilities and start to contribute to the charity through gift-aiding profits.

Cornwall Arts Marketing Ltd

The loss after tax for the year for Cornwall Arts Marketing Limited was £26,761 (2023: profit of £23,194). Whilst the company has seen growth in income, increased costs have meant that the company has made a loss this year. The results for 2024/25 look more promising and the budget for 2025/26 look to be profitable. Retained earnings carried forward at 31 March 2024 were negative reserves of £46,410 (2023: negative reserves of £19,649). The charity is prepared to continue to support the company and ensure that the current year loss is a one off and ensure future years are profitable and can return to a positive net asset position.

Screen Cornwall Ltd

Screen Cornwall Limited made a profit after tax for the year of £33,140 (2023: loss of £9,384). Retained earnings for carried forward at 31 March 2024 were reserves of £54,937 (2023: £21,797). In December 2024 the taxable profits for the year ended 31 March 2024 were gifted to the charity.

12

Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Pay policy for senior staff

The board of Directors, who are the charity’s Trustees, and the CEO comprise the key management personnel of the charity in charge of directing and controlling, running and operating Creative Kernow on a day to day basis. All Directors give of their time freely and no director received remuneration in the year, including the Directors of the subsidiary companies. Details of any related party transactions are disclosed in the notes to the accounts.

The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings, as is the pay of other staff. A recent benchmarking exercise identified senior leadership and entry level roles within the Creative Kernow group as being behind the Cornwall average. In April 2024, the board agreed to the implementation of a new Pay Policy. This means that now all staff are paid at least the National Living Wage. The pay scales are now more transparent for existing and prospective staff.

Fundraising Policy

Creative Kernow Limited’s fundraising from voluntary donations is very small scale and currently not an active part of our income generating strategies. As a result of this the charity is not a member of any fundraising regulator. There were no complaints in the year (2023: nil) relating to fundraising activity.

Risk Management

The Trustees have a risk management strategy which comprises:

In terms of risks relating to our activities and our built environment, close attention is always given to office-based activity and the safety of our premises at Krowji, with strong and regularly reviewed policies and procedures in respect of health and safety, fire and other such risks. Key staff undertake appropriate training and awareness raising across these operational areas. The Directors and senior staff continue to believe that the Creative Kernow group is operating safely and with appropriate measures in place.

Assessment of Going Concern

The financial statements have been prepared on a going concern basis.

The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

The Trustees believe that the group is well-placed to make the most of the opportunities and challenges that lie ahead and will continue to take a lead amongst their partners in Cornwall in helping the sector to go forward.

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Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Grant funding has been secured until March 2026, with applications for further funding currently ongoing. At the year-end, the group held unrestricted reserves of £1,129,873. Of these £792,589 were free reserves and available for use as Trustees wish. This is sufficient to cover expected Working Capital movements, as well as any additional unexpected costs not budgeted for.

The Trustees are therefore satisfied that the charity and group will be able to operate within their available facilities and continue as a going concern for the foreseeable future, being a period no less than 12 months from the date of approval of these financial statements.

Looking ahead

Public funding beyond March 2025 remains uncertain. The 2024 election delivered a change in government and the Autumn Budget statement confirmed a 4[th] year of Shared Prosperity but at a reduced level to previous years and much reduced in comparison to the previous European Funding. We are in close dialogue with the Cornwall MPs to raise this uncertainty as a barrier not only to Creative Kernow’s sustainability but to the continued growth of the creative sector. Our Arts Council NPO funding agreement remains in place until March 2026. We are awaiting confirmation of a one year extension to this funding to 2027 and will submit our proposals to rejoin the national portfolio for the period 2027-30 in July 2025.

Creative Kernow’s unrestricted reserves have been reduced following a deficit year in 2023/24 as a result of a challenging funding environment and the redundancy costs of the Cultivator team. 2024/25 has continued to be difficult with a further deficit expected further reducing unrestricted reserves. The reasons for our continued deficit are broadly twofold: rising operational costs in line with the prevailing economic conditions and the growing complexity of the group bringing additional regulatory obligations. The profits of the programmes and the subsidiary companies are not generating sufficient income to meet these costs

We continue to believe that we are an efficient and cost-effective organisation – operational costs account for approximately 20% of turnover. Financial modelling and an options appraisal are currently underway to determine a scheme of work to reduce costs whilst we await public funding announcements and grow commercial activity to the required levels.

The Board feels confident that Creative Kernow’s 40 year track record of impactful activity, managing large scale public funding programmes and aligning our work with evolving government policy will provide a strong foundation on which to make our case for further support.

We have numerous pipeline projects which provide further evidence of our potential to grow and adapt:

14

Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Our current budget for 2025/26 looks more promising and it seeks to exceed to provide a break even position and start to rebuild reserves.

Screen Cornwall ‘spin out’

In December 2024 it was agreed that Screen Cornwall Limited should leave the Creative Kernow group and operate as an independent community interest company. Screen Cornwall Limited as relied on grant income and has been unable to develop commercial income stands to cover operational costs and generate sustained profits to benefit the charity. The director of travel for Screen Cornwall through the establishment of private investor screen equity fund was not deemed to be in the charity’s best interests. The sale of 86% of equity in Screen Cornwall Limited was completed on 11[th] March 2025.

Board Development

Trustees elected a new Chair to the Creative Kernow Board in July 2023 as a successor to John Pulford. Paul Brookes is the former Chief Executive of The Box Plymouth where he oversaw the transformative capital development project and brings a wealth of experience and knowledge from a career in arts and creative industries management. In November 2023 the board and senior management team came together to refresh our vision and review our strategic direction to enable a united and confident presentation of our future plans to stakeholders and funders. This phase of work was concluded in June 2024 with the development of a Brand Book.

The board have recruited four new Trustees who joined the board at the October 2024 meeting. Each member of the board has been given an established board member to support them through their induction. They have received some finance training and other training needs are currently being identified.

The Board is firmly committed to the principles of public benefit, widening access, diversity and equal opportunities. We have worked closely with our funders – especially Arts Council England – on issues of governance, diversity and transparency as part of our funding agreements. The Directors and staff will regularly monitor the charity’s actions on equal opportunities and their impact on staff, partner organisations and the public.

Trustees have considered the Charity Commission’s guidance on public benefit and the importance of demonstrating that Creative Kernow fulfils its charitable purposes for the wider good of society. They believe that this report shows clearly that the charity offers a very wide range of support, activities and services to all the communities of Cornwall.

15

Creative Kernow Limited (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2024

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The Trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

This report was approved by the Trustees, on 20 March 2025 and signed on their behalf by:

By order of the Board

Krowji West Park REDRUTH Cornwall TR15 3AJ

Paul Brookes Trustee

16

Creative Kernow Limited (Limited by Guarantee)

Statement of Trustees’ Responsibilities

The Trustees (who are also the Directors of Creative Kernow Limited for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and irregularities.

In so far as the Trustees are aware:

Approved by the Trustees of the charity on 20 March 2025 and signed on its behalf by:

Paul Brookes Trustee

17

Creative Kernow Limited (Limited by Guarantee)

Independent auditors’ report to the members of Creative Kernow Limited

Opinion

We have audited the financial statements of Creative Kernow Limited (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2024 which comprise the consolidated statement of financial activities, consolidated and company balance sheet, consolidated statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustees’ annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contain. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

18

Creative Kernow Limited (Limited by Guarantee)

Independent auditors’ report to the members of Creative Kernow Limited

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 17, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

19

Creative Kernow Limited (Limited by Guarantee)

Independent auditors’ report to the members of Creative Kernow Limited

As part of our audit work, we obtained an understanding of the legal and regulatory frameworks applicable to the group and the sector in which they operate. We determined that the laws and regulations most significant to the group, as well as the laws and regulations that have a direct impact on the preparation of the financial statements are: employment legislation, General Data Protection Regulation, health and safety legislation, safeguarding legislation, landlord and tenant rights and compliance with the Charities Act 2011, the Companies Act 2006 and with the Charities Statement of Recommended Practice.

The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

We also communicate relevant identified laws and regulations and potential fraud risk to all engagement team members and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit approach also considered the opportunities and incentives that may exist within the group for fraud and identified the greatest potential for fraud being in respect of cut off and completion risk around revenue recognition. Under ISA (UK) we are also required to undertake procedures to respond to the risk of management override of controls. Our procedures included the following:

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

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

20

Creative Kernow Limited (Limited by Guarantee)

Independent auditors’ report to the members of Creative Kernow Limited

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Josh Stevens ACA (Senior Statutory Auditor)

For and on behalf of RRL LLP Statutory Auditors Peat House Newham Road TRURO Cornwall TR1 2DP

27 March 2025

21

Creative Kernow Limited (Limited by Guarantee)

Consolidated statement of financial activities (incorporating income and expenditure account)

For the year ended 31 March 2024

Unrestricted Restricted Total Total
Fund funds funds funds
2024 2023
As restated
Notes £ £ £ £
Income from:
Donations and legacies 3 255,158 1,496,559 1,751,717 2,004,629
Commercial trading operations 541,146 537,692 1,078,838 871,695
Investment income 4 15,660 1,527 17,187 5,221
Charitable activities 5 71,162 2,662 73,824 95,963
Other income 6 151,130 - 151,130 606,035
__ __ __ __
Total income 1,034,256 2,038,440 3,072,696 3,583,543
__ __ __ __
Expenditure on:
Commercial trading activities 664,155 450,101 1,114,256 872,085
Charitable activities 7 444,528 1,594,765 2,039,293 2,259,858
__ __ __ __
Total expenditure 1,108,683 2,044,866 3,153,549 3,131,943
__ __ __ __
Net expenditure before transfers (74,427) (6,426) (80,853) 451,600
Transfers between funds 40,127 (40,127) - -
__ __ __ __
Net movement in funds (34,300) (46,553) (80,853) 451,600
__ __ __ __
Total funds brought forward 1,164,173 3,743,254 4,907,427 4,455,827
__ __ __ __
Total funds carried forward 1,129,873 3,696,701 4,826,574 4,907,427

The notes on pages 25 to 50 form part of these financial statements.

22

Creative Kernow Limited (Limited by Guarantee)

Consolidated and company balance sheet

As at 31 March 2024

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
14
Cash at bank and in hand
15
Creditors: amounts falling due
within one year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Provisions
18
Net assets
22
Charity funds
Restricted funds
21
Designated funds
Unrestricted funds
Total funds
Charity only (deficit)/surplus for the
financial year
30		 The Group
2024
2023
As restated
£
£
4,926,348
5,060,688
-
-
__
_
4,926,348
5,060,688
__
_
460,659
668,453
1,126,431
974,161
__
_
1,587,090
1,642,614
(402,826)
(865,410)
__
_
1,184,264
777,204
__
_
6,110,612
5,837,892
(1,228,538)
(879,635)
__
_
(55,500)
(50,830)
__
_
4,826,574
4,907,427
3,696,701
3,743,254
67,000
-
1,062,873
1,164,173
__
_
4,826,574
4,907,427		 The Charity
2024
2023
As restated
£
£
275,290
279,983
201
201
__
_
275,491
280,184
__
_
844,681
1,074,838
701,889
714,809
__
_
1,546,570
1,789,647
(126,050)
(196,769)
__
_
1,420,520
1,592,878
__
_
1,696,011
1,873,062
(442,022)
(447,073)
__
_
-
-
__
_
1,253,989
1,425,989
89,556
171,880
67,000
-
1,097,433
1,254,109
__
_
1,253,989
1,425,989
(172,000)
471,095

The financial statements have been prepared in accordance with the special provisions applicable to companies subject to the small companies regimes.

These financial statements were approved and authorised for the issue of the Trustees on 20 March 2025 and signed on their behalf by:

Paul Brookes

Trustee

The notes on pages 25 to 50 form part of these financial statements.

Company registration number: 01727731

23

Creative Kernow Limited (Limited by Guarantee)

Consolidated statement of cash flows

For the year ended 31 March 2024

2024 2023
£ £
Note
Cash flows from operating activities
Net cash generated by operating activities 1 184,304 279,171
__ __
Cash flows from investing activities
Interest received and similar income 14,460 4,021
Rental income 2,727 1,200
Purchase of tangible fixed assets (2,081) (10,884)
__ __
Net cash flows from/(used by) investing activities 15,106 (5,663)
__ __
Cash flows from financing activities
Issue of new loans 400,000 -
Repayment of loans and borrowings (447,140) (49,029)
__ __
Net cash flows from/(used by) investing activities (47,140) (49,029)
__ __
Net increase in cash and cash equivalents 152,270 224,479
__ __
Cash and cash equivalents brought forward 974,161 749,682
__ __
Cash and cash equivalents carried forward 1,126,431 974,161

1 Reconciliation of net movement in funds to net cash flow from operating activities

2024 2023
As restated
£ £
Net movement in funds (80,853) 451,600
Adjustment for:
Depreciation charges 136,421 137,620
Investment income (17,187) (5,221)
Decrease/(increase) in debtors 207,794 (116,679)
Decrease in creditors (66,541) (221,107)
Increase in provisions 4,670 32,958
__ __
Cash generated by operating activities 184,304 279,171

24

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

1 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Creative Kernow Limited 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 notes. The figures in the financial statements have been rounded to the nearest pound sterling.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the charity and its three wholly owned subsidiary undertakings, Krowji Limited, Cornwall Arts Marketing Limited and Screen Cornwall Limited, on a line by line basis, drawn up to 31 March 2024.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006.

A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition In the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

Fund structure

Unrestricted income funds are available for use at the discretion of the Trustees in furtherance of the general activities of the charity.

Restricted income funds are subjected to restrictions on their expenditure imposed by the donor.

25

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

Going concern

The financial statements have been prepared on a going concern basis.

The Trustees assess whether the ongoing use of going concern is appropriate i.e. whether there are any material uncertainties relating to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

The Trustees believe Creative Kernow is well placed to make the most of the opportunities and challenges which lie ahead and will continue to take a lead amongst their partners in Cornwall In helping the cultural and creative sectors to thrive and grow.

Funding has been secured for the next three years which provides sufficient time to research and implement new income generation strategies. At the year end the group held unrestricted reserves of £1,129,873 and cash of £1,126,431. Of these reserves, £792,589 were free reserves and available for use as Trustees wish. This is sufficient to cover expected working capital movements as well as any additional costs not budgeted for.

The Trustees are therefore satisfied that the group will be able to operate within their available facilities and continue as a going concern for the foreseeable future, being 12 months from the date of approval of these financial statements.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be receive and the amount of income receivable can be measured reliably.

Donations and legacies

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature are recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Grants receivable

Grants, including government grants, are recognised when the group has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which it has been received. Such income is only deferred when:

Investment income

Investment income is included when receivable.

Charitable activities

Income from charitable activities includes income recognised as earned (as the related goods or services are provided) under contract.

26

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. Expenditure includes any VAT which cannot be recovered, and is reported as part of the expenditure to which it relates:-

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of Income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Expenditure on tangible fixed assets is capitalised. The costs of minor additions or those below £500 are not capitalised. Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Own labour costs which are considered to be directly attributable to the construction of the property are included in the cost of construction.

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rare
Freehold buildings Straight line basis over 50 years
Equipment Straight line basis over 4 years
Plant and machinery Straight line basis over 10 years
Leasehold land and buildings Straight line over the life of the lease, apart from
Percy Williams Building (phase 1 & 2) which are
depreciated over 50 years from dates of
completion

No provision is made in respect of freehold land.

27

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

Impairment of fixed assets

Intangible and tangible fixed assets are reviewed for impairment when changes in circumstances or events indicate that the carrying value of the fixed assets may not be recoverable. An Impairment loss is recognised where the recoverable amount is less than the carrying value.

Recoverable amount is the higher of fair value less costs to sell, value in use and replacement cost.

Debtors

Trade and other debtors are recognised initially at the settlement amount due. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Prepayments are valued at the amount prepaid.

Cash and cash equivalents

Cash at bank and in hand includes cash and short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Creditors and provisions

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price.

Provisions are recognised when the charity has an obligation at the reporting date as a result of a past event, it Is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leased assets

Rental income from operating leases Is recognised on a straight line basis over the term of the lease.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interestbearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Pensions and other post-retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

28

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

Employee benefits

The cost of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Financial instruments

Classification

Financial assets are classified into either basic or other financial assets. Financial liabilities are classified into either basic or other financial liabilities. These classifications depend on certain criteria determined at the time of recognition.

The charity holds only basic financial instruments.

Recognition and measurement

Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the charity's obligations are discharged, expire or are cancelled.

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is initially measured at the present value of the future receipts discounted at a market rate of interest and subsequently held at amortised cost.

Basic financial liabilities, including trade and other payables are initially measured at transaction price, unless the arrangement constitutes a financing transaction where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. They are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition.

Impairment

Basic financial assets are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the statement of financial activities.

29

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

2 Charity status

The charity is a charity limited by guarantee and consequently does not have share capital. Each of the Trustees is liable to contribute an amount not exceeding £5 towards the assets of the charity in the event of liquidation.

The charity is incorporated in England and Wales. The address of its registered office is: Krowji

West Park REDRUTH Cornwall TR15 3AJ

3 Income from donations and legacies

Unrestricted
funds
£
Grants:
Arts Council
216,588
British Film Institute
-
Cornwall Council
27,500
Cultivator
-
ESF
-
Shared Prosperity Fund
-
Other
5,000
Donations:
Other
6,070
__
Total donations and legacies
255,158
Total 2023
333,077		 Restricted
funds
£
-
-
56,925
1,116,303
-
161,597
157,734
4,000
__
1,496,559
1,671,552		 Total
2024
£
216,588
-
84,425
1,116,303
-
161,597
162,734
10,070
__
1,751,717
2,004,629		 Total
2023
£
221,632
4,971
277,060
1,379,678
41,208
-
77,187
2,893
__
2,004,629

30

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

4 Investment income

Unrestricted
funds
£
Interest received on bank deposits
14,460
Rent receivable
1,200
_
Total investment income
15,660
Total 2023
5,221
5
Income from charitable activities
Unrestricted
funds
£
FEAST
-
Carn to Cove
48,294
Miscellaneous
22,868
_
Total income from charitable activities
71,162
Total 2023
80,083
6
Other income
Unrestricted
funds
£
Insurance proceeds
139,122
Feed In Tariff
12,008
__
Total other income
151,130
Total 2023
606,035		 Restricted
funds
£
-
1,527
_
1,527
-
Restricted
funds
£
2,662
-
-
_
2,662
15,880
Restricted
funds
£
-
-
__
-
-		 Total
2024
£
14,460
2,727
__
17,187
5,221
Total
2024
£
2,662
48,294
22,868
__
73,824
95,963
Total
2024
£
139,122
12,008
__
151,130
606,035		 Total
2023
£
4,021
1,200
_
5,221
Total
2023
£
-
59,503
36,460
_
95,963
Total
2023
£
606,035
-
__
606,035

31

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

7 Expenditure on charitable activities

Basis of FEAST Carn to Shared Cultivator Other Governance 2024 2023
allocation Cove Prosperity Projects Total Total
Fund
Direct Costs
Staff costs Direct 10,166 38,304 27,673 300,852 266,400 - 643,395 758,645
Other costs Direct 142,622 61,708 123,556 819,555 73,134 - 1,220,575 1,328,083
Publicity Direct - - 36 - 161 - 197 2,265
Recruitment Direct - - - - 13,998 - 13,998 -
Travel Direct 388 1,495 2,130 7,965 3,885 - 15,863 16,682
Auditors’ remuneration Direct - - - - - 25,364 25,364 35,202
__ __ __ __ __ __ __ __
Total direct costs 153,176 101,507 153,395 1,128,372 357,578 25,364 1,919,392 2,140,877
__ __ __ __ __ __ __ __
Support costs
Premises Floor area 8,512 1,151 - 4,476 9,473 - 23,612 23,284
Legal and professional Usage - - 2,225 - 26,985 - 29,210 3,692
Consultancy Usage 2,550 - 4,000 - 7,268 - 13,818 25,725
Office expenses Usage 829 3,145 5,068 6,884 31,946 - 47,872 60,557
Bank charges and interest Usage - 296 - - 400 - 696 1,342
Depreciation Usage - - - - 4,693 - 4,693 4,381
__ __ __ __ __ __ __ __
Total support costs 11,891 4,592 11,293 11,360 80,765 - 119,901 118,981
__ __ __ __ __ __ __ __
165,067 106,099 164,688 1,139,732 438,343 25,364 2,039,293 2,259,858

32

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

8 Government grants

Government grants recognised in the financial statements are made up of funds from European Regional Development Fund, Cornwall Council, The British Film Institute, Historic England and Kickstarter grants supported by the government.

The amount of grants recognised in the financial statements was £1,362,325 (2023: £1,844,474).

Additional government grants of £342,475 (2023: £94,437) are recognised in the consolidated financial statements, received by trading subsidiaries.

9 Net incoming/outgoing resources

Net outgoing/(incoming) resources for the year include:

2024 2023
£ £
Operating lease rentals 513 513
Auditors’ remuneration 21,750 21,390
Other accountancy services 16,850 33,213
Depreciation of fixed assets 136,421 137,260

10 Trustees’ remuneration and expenses

No Trustees, nor any persons connected with them, have received any remuneration from the group during the year.

No Trustees have received any reimbursed expenses or any other benefits from the charity during the year.

See note 26 for details of other related party transactions during the period.

11 Group staff costs

Group staff costs
2024 2023
£ £
Wages and salaries 864,650 922,756
Social security costs 61,639 73,855
Pension costs 21,807 25,764
Other staff costs - 279
__ __
948,096 1,022,654

Included in the above wages and salaries costs is £93,894 in relation to termination costs (2023: £nil).

The monthly average number of persons (including senior management team) employed by the group during the year was as follows:

2024 2023
Commercial trading activities 13 -
Charitable activities 23 37
__ __
36 37

33

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

11 Group staff costs (continued)

No employee received remuneration amounting to more than £60,000 in either year.

The key management personnel of Creative Kernow Limited comprise of the Chief Executive Officer only. The total employee benefits of the key management personnel of the Charity were £59,480 (2023: £56,397).

12 Tangible fixed assets

Group
Leasehold land
& buildings
Freehold
property
Plant
and
machinery
Equipment
£
£
£
Cost
At 1 April 2023
50,000
5,551,268
196,133
126,064
Additions
-
-
-
2,081
_
_
_
_
At 31 March 2024
50,000
5,551,268
196,133
128,145

Depreciation
At 1 April 2023
4,539
645,917
153,856
58,465
Charge for the year
510
105,866
19,560
10,485
_
_
_
_
At 31 March 2024
5,049
751,783
173,416
68,950
Net book value
At 31 March 2024
44,951
4,799,485
22,717
59,195
_
_
_
_
At 31 March 2023
45,461
4,905,351
42,277
67,599		 Total
£
5,923,465
2,081
__
5,925,546
862,777
136,421
__
999,198
4,926,348
__
5,060,688

34

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

12 Tangible fixed assets (continued)

Charity
Freehold
property
Equipment
£
£
Cost
At 1 April 2023 and 31 March 2024
303,142
50,539
Depreciation
At 1 April 2023
32,696
41,002
Charge for the year
865
3,828
_
_
At 31 March 2024
33,561
44,830
Net book value
At 31 March 2024
269,581
5,709
_
_
At 31 March 2023
270,446
9,537		 Total
£
353,681
73,698
4,693
__
78,391
275,290
__
279,983

All freehold property, with a carrying value of £269,581 (2023: £270,446) is pledged as security for the bank loan that Krowji Limited have in place. Further details at Note 16.

35

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

13 Fixed asset investments

Details of undertakings

Details of the investments in which the group holds 20% or more of the nominal value of any class or chare capital are as follows:

Undertaking Country of Holding Proportion of Principal activity incorporation voting rights and shears held

Subsidiary undertakings

Krowji Limited United Kingdom Ordinary 100% Receives rental income from a property that it leases from the Charity Cornwall Arts United Kingdom Ordinary 100% Receives income from the Marketing Limited publishing of website and magazine listings within Cornwall Screen Cornwall United Kingdom Ordinary 100% To develop the screen Limited industries in Cornwall to build a strong and thriving production sector

Subsidiaries

The loss for the financial period of Krowji Limited was £2,823 (2023: profit of £58,397) and the aggregate amount of capital and reserves at the end of the period was (£43,077) (2023: (£40,254).

The loss for the financial period of Cornwall Arts Marketing Limited was £26,761 (2023: profit of £23,294) and the aggregate amount of capital and reserves at the end of the period was (£46,310) (2023: (£19,549).

The profit for the financial period of Screen Cornwall Limited was £33,140 (2023: loss of £9,384) and the aggregate amount of capital and reserves at the end of the period was £55,037 (2023: £21,897).

The address of the registered office for all subsidiaries is: Krowji, West Park, REDRUTH, Cornwall, TR15 3AJ.

Charity

harity
2024 2023
£ £
Shares in group undertakings and participating interests 201 201

36

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

14 Debtors

Group Charity
2024 2023 2024 2023
£ £ £ £
Trade debtors 108,673 50,252 67,001 31,830
Grants receivable 247,081 510,984 182,861 510,984
Due from group undertakings - - 575,021 515,633
Prepayments 91,056 56,206 19,563 13,036
Other debtors 13,849 51,011 235 3,355
__ __ __ __
460,659 668,453 844,681 1,074,838

15 Cash and cash equivalents

Balances held by the charity that are not available for use by the charity

During the year, the Charity received funds of £nil (2023: £386,249) on behalf of other delivery partners within the Cultivator project. The Charity paid £nil (2023: £408,823) of these funds to the delivery partners before the year end. The balance of funds held as agent at the year-end was £nil (2023: £Nil).

16 Creditors: amounts falling due within one year

Group Charity
2024 2023 2024 2023
As restated
£ £ £ £
Bank loans 52,986 49,029 - -
Other loans - 400,000 - -
Trade creditors 132,095 100,227 78,451 66,312
Corporation tax 986 - - -
Other taxation and social security 11,744 45,737 6,004 12,998
Accruals 81,816 116,219 26,813 46,566
Deferred income 58,344 110,778 11,884 65,207
Other creditors 64,855 43,420 2,898 5,686
__ __ __ __
402,826 865,410 126,050 196,769

Creditors due within one year includes the following liabilities on which security has been given by the Group:

Group Charity
2024 2023 2024 2023
£ £ £ £
Bank loans 52,986 49,029 - -
Other loans - 400,000 - -
__ __ __ __
52,986 449,029 - -

37

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

16 Creditors: amounts falling due within one year (continued)

The bank loan is secured by means of a first legal mortgage over the land at Krowji Limited and Creative Kernow Limited and a first fixed charge on all land and properties owned by Krowji Limited and Creative Kernow Limited. It is also secured by means of a first fixed charge on all present and future goodwill of any business carried out by or on behalf of Creative Kernow Limited on the mortgaged property.

The other loan was secured by means of a second legal mortgage over the leasehold land and property of Krowji Limited.

Creative Kernow Limited acts as guarantor on these bank loans.

Deferred income

Deferred income
Group Charity
As restated
£ £
Deferred income at 1 April 2023 110,778 512,280
Resources deferred during the year 58,344 11,884
Amounts released from previous years (110,778) (70,258)
__ __
Deferred income as at 31 March 2024 58,344 453,906

Deferred income primarily comprises of rental income received in advance and ticket sales for activities due to take place in the following year.

17 Creditors: amounts falling due after one year

Group Charity
2024 2023 2024 2023
As restated
£ £ £ £
Bank loans 1,228,538 879,635 - -
Deferred income - - 442,022 447,073
__ __ __ __
1,228,538 879,635 442,022 447,073

Creditors amounts falling due after more than one year includes the following liabilities on which security has been given by the group:

Group Charity
2024 2023 2024 2023
£ £ £ £
Bank loans 1,228,538 879,635 - -

38

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

17 Creditors: amounts falling due after one year (continued)

Group

Included in the creditors are the following amounts due after more than five years:

2024 2023
£ £
After more than five years by instalments 969,529 634,488

Borrowings due after five years

The amounts due after more than five years by instalments relate to the bank loans. The bank loans are made up of three separate loans with Triodos Bank. Two of the bank loans have a nominal interest rate of 2.5% over the UK base rate, and the final instalments are due on 7 July 2036. The carrying amount at year end of these two loans is £886,680 (2023: £928,664). The third bank loan has a nominal interest rate of 2.5% over the UK base rate and the final instalment is due on 21 July 2043. The carrying amount at year end is £394,844 (2023: £nil). Repayments are made monthly.

18 Provisions

Group
At 1 April 2023
Charged to the statement of recognised gains and losses
At 31 March 2024		 Deferred
Taxation
£
50,830
4,670
__
55,500
 Total
£
50,830
4,670
__
55,500

Provisions are made up of deferred taxation, provided for at 25% (2023: 25%). The deferred tax liability set out above relates to accelerated capital allowances.

19 Obligations under leases and hire purchase contracts – Operating lease commitments

Total future minimum lease payments under non-cancellable leases are as follows:

Land and buildings
Within one year
Between one and five years
Other
Within one year
Between one and five years
2024
£
3,500
-
__
3,500
256
-
__
256
 Group
2023
£
12,000
4,333
_
16,333
513
256
_
769		 2024
£
-
-
__
-
256
-
__
256		 Charity
2023
£
-
-
_
-
513
256
_
769

39

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

20 Capital commitments

Group

Amounts contracted for but not provided in the financial statements:

Costs in relation to the acquisition of tangible fixed assets
21 Funds
Group
Balance as
at 1 April
2023
As restated
Income
Expenditure
£
£
£
Designated funds
-
-
-
_
_
_
Unrestricted funds
1,164,173
1,034,256
(1,108,683)
_
_
_
Restricted funds
3,743,254
2,038,440
(2,044,866)
_
_
_
Total of funds
4,907,427
3,072,696
(3,153,549)
Balance as
at 1 April
2022
As restated
Income
As restated
Expenditure
As restated
£
£
£
Unrestricted funds
437,918
1,654,906
(934,794)
_
_
_
Restricted funds
4,017,909
1,928,637
(2,197,149)
_
_
__
Total of funds
4,455,827
3,583,543
(3,131,943)		 2024
£
23,920
Transfers
£
67,000
_
(26,873)
_
(40,127)
_
-

Transfers
£
6,143
_
(6,143)
__
-		 2023
£
-
Balance as
at 31 March
2024
£
67,000
__
1,062,873
__
3,696,701
__
4,826,574
Balance as
at 31 March
2023
As restated
£
1,164,173
__
3,743,254
__
4,907,427

40

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

21 Funds (continued)

Charity Balance as Income Expenditure Transfers Balance as Income Expenditure Transfers Balance as
at 1 April As restated at 1 April at 1 April
2022 2023 2024
As restated As restated
£ £ £ £ £ £ £ £ £
Designated funds - - - - - - - 67,000 67,000
__ __ __ __ __ __ __ __ __
Unrestricted funds 600,941 1,052,063 (405,038) 6,143 1,254,109 390,795 (468,778) (78,693) 1,097,433
__ __ __ __ __ __ __ __ __
Restricted funds
Carn to Cove Locomotor 3,009 - (3,009) - - - - - -
Carn to Cove Villages in Action –
Headley Trust Donation 5,000 - (5,000) - - - - - -
Piano Go Round 2,316 (956) (1,360) - - - - - -
Inn Crowd 1,814 1,690 (3,504) - - - - - -
Jaw Jaw 150 - (150) - - - - - -
C-Fylm – Cultivator 476 - (476) - - - - - -
C-Fylm – International Women 926 - (926) - - - - - -
C2C C-Fylm Watershed FAN Fund - 4,971 (4,971) - - - - - -
C2C Symphony of the Countryside 1,777 - (1,777) - - - - - -
C2C Culture Recovery Grant 7,728 5,044 (12,772) - - - - - -
C2C – C-Fylm Crowdfunder 3,330 - (3,330) - - - - - -
C2C Kickstart 716 - (716) - - - - - -
C2C – C-Fylm Green Week 4,054 1,000 (5,054) - - - - - -
C2C – Cobweb – Redruth 1,049 - (1,049) - - - - - -
C2C – TK Music Lab 20,000 (1,648) (18,352) - - - - - -
British Film Institute – Cinema
Equipment Package 56 - (56) - - - - - -
FEAST 90,400 63,237 (86,751) 19,852 86,738 46,125 (150,769) 17,906 -
FEAST Bright Sparks 4,347 - - (4,347) - - - - -
FEAST Gamechanger 10,609 41,208 (51,453) - 364 - (147) (217) -
FEAST Bill’s Attic 258 6,105 (11,086) - (4,723) 2,902 (9,216) 11,037 -
FEAST Cornwall Community
Foundation COVID Emergency Fund 6,405 10,000 (6,546) 110 9,969 - (2,185) (7,784) -
Balance carried forward 164,420 130,651 (218,338) 15,615 92,348 49,027 (162,317) 20,942 -

41

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

21 Funds (continued)

Charity (continued) Balance as Income Expenditure Transfers Balance as Income Expenditure Transfers Balance as
at 1 April As restated at 1 April at 1 April
2022 2023 2024
As restated As restated
£ £ £ £ £ £ £ £ £
Balance brought forward 164,420 130,651 (218,338) 15,615 92,348 49,027 (162,317) 20,942 -
FEAST Cornwall Community
Foundation 160 - (50) (110) - - - - -
FEAST Redruth HSHAZ 2,084 - - - 2,084 - - (2,084) -
FEAST Kresen Kernow
Commissioning 2,500 - - (2,500) - - - - -
FEAST Redruth Unlimited 27,883 14,182 (26,079) (10,000) 5,986 20,818 - (26,804) -
FEAST Shout LOUDER 5,005 - (2,000) (3,005) - - - - -
FEAST Fun Palaces - 5,780 (3,954) - 1,826 2,287 (450) (3,663) -
FEAST Consultancy - - - - - 10,800 (2,300) - 8,500
Arts Lab 52,787 118,949 (141,287) - 30,449 139,916 (125,277) - 45,088
Good Growth Creative Communities - - - - - 161,597 (164,688) - (3,091)
Cultivator - 1,299,899 (1,299,771) - 128 1,116,303 (1,139,733) 23,302 -
NFASP 23,843 - (2,784) - 21,059 - - - 21,059
The Tamara Project Commission
22/23 - 1,651 (1,651) - - - - - -
G7 40,832 - (22,832) - 18,000 - - - 18,000
Krowji Fire – Phoenix Fund 34,439 - (34,439) - - - - - -
Tresorys Kernow - 116,920 (110,777) (6,143) - - - - -
__ __ __ __ __ __ __ __ __
353,953 1,688,032 (1,863,962) (6,143) 171,880 1,500,748 (1,594,765) 11,693 89,556
__ __ __ __ __ __ __ __ __
Total of funds 954,894 2,740,095 (2,269,000) - 1,425,989 1,891,543 (2,063,543) - 1,253,989

42

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

21 Funds (continued)

The specific purposes for which the funds are to be applied are as follows:

The Locomotor/Villages in Action project has been set up to secure the future of the rural touring network in South Devon and co-ordinate International touring companies in the South West region. It will also explore new ways of delivering activity in rural venues, including developing new partnerships and digital innovations.

The C-Fylm Cultivator grant is a capital grant to buy new film equipment for the community film club project.

Piano Go Round is a fund-raising project to enable the purchase of a concert grand piano and lift to allow for touring to Carn to Cove venues around Cornwall. A one off concert was programmed to launch the project and it will be developed further in the future.

Inn Crowd - we are a delivery partner for a project to enable pubs and licensed premises to put on live, professional performances. This will develop audiences and provide support for publicans who are interested in expanding their offer to customers.

International women Is a series of films programmed in partnership with Cornwall Women’s Centre to develop audiences in hard to reach groups with a season of female focussed films.

C-Fylm Green Week - we received a grant from the British Film Institute to run a week of film screenings to raise awareness of climate emergency.

Carn to Cove Cobweb, Redruth - Cobweb Tours providing support for C2C shows in Redruth.

FEAST is a substantial ongoing programme commissioning and distributing a wide range of great art to villages and towns across Cornwall.

The Bright Sparks fund is designed to encourage collaborations between artists and museums in order to build museums' audiences and volunteer base.

Game Changer is an ESF, Big Lottery funded programme to help people aged 15-25 not in education, employment or training to access one of these options. Creative Kernow co-ordinates opportunities for young people with artist led workshops and with other creative sector businesses.

Bill's Attic is a unique artist residency and cultural meeting space at Krowji, which holds the collections of Bill Mitchell as a source of creative inspiration. Funds to date have been raised from the public and future income will be raised from hire of the space.

Cornwall Community Foundation has granted FEAST additional funds to add to the total FEAST grants pot. Every £1 of CCF grant Is matched by FEAST and put towards supporting a creative project in the community.

Redruth Unlimited - Redruth Unlimited is funded by Historic England as part of the High Street Heritage Action Zone in partnership with Cornwall Council (who receive the grant from Historic England). Projects can apply to FEAST for projects that bring culture to Redruth high street areas.

Shout Louder - a specific grants round for artists to respond to climate emergency and 'shout louder' to decision makers at COP26. in Glasgow.

Arts Lab - commissioning artists to deliver art projects in schools and alternative education settings to tackle mental wellbeing. Funding from Headstart programme via Cornwall Council.

Good Growth Creative Communities (Shared Prosperity Funding) – this is the EAEP programme supporting the creative communities programme through a festivals network and community skills development and training.

43

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

21 Funds (continued)

Cultivator - a programme of skills and business support for Cornwall's creative and cultural sectors, supporting small businesses, sole traders and freelancers. Funded by the European Regional Development Fund, the European Social Fund, Arts Council England and Cornwall Council.

The NFASP funds relate to a Legacy Fund Agreement arising from the winding up of the National Federation of Artists' Studio Providers Ltd in January 2018. The remaining company funds were transferred to Creative Kernow to be managed as a restricted fund so that some of NFASP's sector support role could continue.

G7 - funding from Cornwall Council to deliver the G7 summit cultural legacy programme. Included grants to artists and film screening equipment supplied to community centres.

Krowji Fire Phoenix Fund - fund to support post-fire recovery. Includes donations from individuals, Real Ideas Organisation and Cornwall Community Foundation. The Arts Council also provided an emergency grant of £35k towards this.

All other restricted funds have been received for specific activities and projects and have been expended on the activities for which they were received.

Designated funds represent potential closure costs should the charity cease to operate.

22 Analysis of net assets between funds

Group – current year

Unrestricted Restricted Total
funds funds funds
2024
£ £ £
Tangible fixed assets 1,498,822 3,427,526 4,926,348
Net current assets 915,089 269,175 1,184,264
Creditors due in more than one year (1,228,538) - (1,228,538)
Provisions (55,500) - (55,500)
__ __ __
1,129,873 3,696,701 4,826,574

Group – prior year

Unrestricted Restricted Total
funds funds funds
As restated As restated 2023
As
restated
£ £ £
Tangible fixed assets 1,541,134 3,519,554 5,060,688
Net current assets 553,504 223,700 777,204
Creditors due in more than one year (879,635) - (879,635)
Provisions (50,830) - (50,830)
__ __ __
1,164,173 3,743,254 4,907,427

44

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

23 Charges

A first fixed charge is held by Triodos Bank over the assets of the Group in respect of a mortgage and loan in place with Krowji Limited for which security has been given. The total amount of borrowings at 31 March 2024 is £1,281,524 (2023: £928,664).

24 Guarantees

Creative Kernow Limited has provided a guarantee to Triodos Bank on the legal mortgage taken out by its subsidiary, Krowji Limited. If Krowji Limited were to default on the mortgage repayments, Creative Kernow Limited would be liable to pay the amounts on the subsidiary’s behalf.

25 Operating lease with subsidiary

Creative Kernow Limited has leased land and property to its subsidiary, Krowji Limited, under a long leasehold agreement in October 2013. The lease is for 99 years. The lease was issued with a lease premium of £500,000 to be paid, and annual peppercorn rent.

26 Related party transactions

Dr F C Wotton

(the company secretary of Krowjl Limited)

Dr F C Wotton had power of attorney for Krowji Limited during the year for the sole purpose of executing underleases and tenancies of parts of the property of Krowji Limited. At the balance sheet date the amount due to/from Dr F C Wotton was £NII (2023: £Nil).

Mrs E A Harris

(key employee of Krowji Limited)

Mrs E A Harris had power of attorney for Krowji Limited during the year for the sole purpose of executing underleases and tenancies of parts of the property of Krowji Limited. At the balance sheet date the amount due to/from Mrs EA Harris was £NII (2023: £Nil).

Mr S P Harvey

(director of Screen Cornwall Limited)

Mr S P Harvey received honorarium for services provided in the year totalling £nil (2023: £75) in accordance with the provisions of the governing document of the company. At the balance sheet date the amount due to/from Mr S P Harvey was £NII (2023: £Nil).

Charity

During the year the charity made the following related party transactions:

Krowji Limited

(subsidiary of Creative Kernow Limited)

Rent payable to Krowji Limited for the use of property during the year, total amount paid during the year of £16,957 (2023: £18,357).

Hire of meeting rooms payable to Krowji for the use of rooms on an ad hoc basis during the year, total amount paid during the year of £293 (2023: £7,221).

Supply of labour and materials from Krowji for remedial repair works carried out during the year, total amount paid during the year of £Nil (2023: £1,872). Rent receivable from Krowji Limited for the lease of property, total amount received during the year of £100 (2023: £100).

Management charges of £5,000 (2023: £nil) were charged by the charity to Krowji for back office services provided during the year.

Creative Kernow Limited has provided a loan to Krowjl Limited. Interest is charged on the loan, total interest receivable during the year of £28,964 (2023: £18,397). The loan amount outstanding from Krowji Limited at the balance sheet date is included in the intercompany balances within creditors due under one year.

45

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

26 Related party transactions (continued)

At the balance sheet date the amount due from Krowji Limited was £559,855 (2023: £501,651) of which £383,000 (2023: £383,000) related to the loan.

Cornwall Arts Marketing Limited

(subsidiary of Creative Kernow Limited)

Cornwall Arts Marketing Limited provided advertising services throughout the year. Total amount paid during the year of £6,971 (2023: £2,099).

Management charges of £4,500 (2023: £nil) were charged by the charity to Cornwall Arts Marketing Limited for back office services provided during the year.

At the balance sheet date the amount due from Cornwall Arts Marketing Limited was £6,708 (2023: £13,982).

Screen Cornwall Limited

(subsidiary of Creative Kernow Limited)

The charity provided Screen Cornwall Limited with the provision of services throughout the year totalling £7,000 (2023: £5,100).

Management charges of £6,000 (2023: £nil) were charged by the charity to Screen Cornwall Limited for back office services provided during the year.

At the balance sheet date the amount due from Screen Cornwall Limited was £8,458 (2023: £Nil).

27 Control

The group was controlled by the Trustees who are also the Directors throughout the current year.

28 Non adjusting events after the financial period

Group

Screen Cornwall Limited converted to a Community Interest Company and changed its name to Screen Cornwall CIC on 3[rd] January 2025. On 11[th] March 2025, the charity sold 86% of its shares in Screen Cornwall CIC to two Directors, L Giles and P Giles, and to K McClory, Company Secretary and employee. Creative Kernow no longer holds a significant interest in this company.

Charity

Since the year end it has been agreed that the charity will pay compensation of £606,386 to its subsidiary, Krowji Limited, in relation to fire damage sustained to properties used by the company in May 2021.

29 Auditor’s liability limitation agreement

For the year ended 31 March 2024, the charity entered into a liability limitation agreement with its auditors, the principal terms of which limit the liability of the auditors to £5,000,000 in relation to their responsibilities as auditors of the charity. The date this was agreed by the charity was 22 May 2024.

46

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

30 Charity statement of financial activities (incorporating income and expenditure account)

Income from:
Donations and legacies
Investment income
Charitable activities
Insurance proceeds
Other income
Total income
Expenditure on:
Charitable activities
Total expenditure
Net (expenditure)/income before transfers
Transfers between funds
Net movement in funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Fund
Restricted
funds
£
£
255,158
1,496,559
48,975
1,527
71,162
2,662
-
-
15,500
-
_
_
390,795
1,500,748
_
_
468,778
1,594,765
_
_
468,778
1,594,765
_
_
(77,983)
(94,107)
(11,693)
11,693
_
_
(89,676)
(82,234)
_
_
1,254,109
171,880
_
_
1,164,433
89,556
 Total
funds
2024
£
1,751,717
50,502
73,824
-
15,500
__
1,891,543
__
2,063,543
__
2,063,543
__
(172,000)
-
__
(172,000)
__
1,425,989
__
1,253,989		 Total
funds
2023
As
restated
£
2,009,129
28,368
96,563
606,035
-
_
2,740,095
_
2,269,000
_
2,269,000
_
471,095
-
_
471,095
_
954,894
__
1,425,989

All of the charity’s activities derive from continuing operations during the above two periods.

47

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements)

31 Prior period adjustment

The accounts for the year ended 31 March 2024 contain two prior year adjustments; one which impacts the group position only and the other which impacts both the group and charity only figures reported.

Prior period adjustment 1 – Government grants (group only)

One of the trading subsidiaries of the group received government grants in a previous year in relation to capital assets which have been accounted for under the accruals model. As at 31 March 2023, the group accounts included deferred income totalling £3,519,554 in relation to this, with £92,028 recognised as government grant income in the year to 31 March 2023. Under the Charities SORP, the accruals model for government grants is not permitted, therefore, the accounts have been restated to recognise that this income should have been recognised in full on receipt and then held as a restricted fund.

Prior period adjustment 2 – Restricted expenditure (group and charity)

It was identified by the charity Trustees during the year, that expenditure totalling £84,694 had been classified in the accounts for the year ended 31 March 2023 as unrestricted but it was in relation to restricted funds. The accounts have been restated to recognise this material error.

Group

Reconciliation of changes in reserves

Unrestricted
fund
Restricted
funds
£
£
Reserves as previously reported at 31 March 2022
437,918
406,327
Prior year adjustment – recognition of government
grants in prior periods
-
3,611,582
_
_
Reserves as restated at 31 March 2022
437,918
4,017,909
Reserves as previously reported at 31 March 2023
1,079,479
308,394
Prior year adjustment – recognition of government
grants in prior periods
-
3,519,554
Prior year adjustment – restricted expenditure not
allocated correctly
84,694
(84,694)
_
_
Reserves as restated at 31 March 2023
1,164,173
3,743,254		 Total
funds
£
844,245
3,611,582
__
4,455,827
1,387,873
3,519,554
-
__
4,907,427

48

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements

31 Prior period adjustment (continued)

Reconciliation of changes in the balance sheet

As previously
reported
Prior
year
adjustment
£
£
Creditors: amounts falling due within one year
Deferred income
202,806
(92,028)
Creditors: amounts falling due within more than one
year
Deferred income
3,427,526
(3,427,526)
Reserves
Unrestricted reserves
1,079,479
84,694
Restricted reserves
308,394
3,434,860
Reconciliation of changes in surplus for the previous financial year
Surplus as previously reported for the year ended 31 March 2023
Prior year adjustment – recognition of government grants in prior periods
Surplus as restated for the year ended 31 March 2023
Charity
Reconciliation of changes in reserves
Unrestricted
fund
Restricted
funds
£
£
Reserves as previously reported at 31 March 2023
1,169,415
256,574
Prior year adjustment – restricted expenditure not
allocated correctly
84,694
(84,694)
_
_
Reserves as restated at 31 March 2023
1,254,109
171,880		 As
restated
at 31
March
2023
£
110,778
-
1,164,173
3,743,254
Total
funds
£
543,628
(92,028)
__
451,600
Total
funds
£
1,425,989
-
__
1,425,989

49

Creative Kernow Limited (Limited by Guarantee)

Notes

(forming part of the financial statements

31 Prior period adjustment (continued)

Reconciliation of changes in the balance sheet

As previously Prior
year		 As
reported adjustment restated
at 31
March
2023
£ £ £
Reserves
Unrestricted reserves 1,169,415 84,694 1,254,109
Restricted reserves 256,574 (84,694) 171,880

Reconciliation of changes in surplus for the previous financial year

Total
funds
£
Surplus as previously reported for the year ended 31 March 2023 471,095
Prior year adjustment -
__
Surplus as restated for the year ended 31 March 2023 471,095

50