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2020-12-31-accounts

Charity Registration No. 295020

Company Registration No. 00790136 (England and Wales)

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED DIRECTORS' REPORT AND CONSOLIDATED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Directors

John Nicoll - Chairman Andrea Rose CMG OBE Desmond Shawe-Taylor LVO Anna Starling Simon Swynfen Jervis FSA Dr Paul Williamson OBE FSA Dr Alison Wright

Secretary

Andrew Dunn

Charity number Company number

Charity number 295020 Company number 00790136 Registered office 14/16 Duke's Road London WC1H 9SZ Auditors TC Group The Courtyard Shoreham Road Upper Beeding Steyning West Sussex BN44 3TN Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Handelsbanken London Holborn Branch 2[nd] Floor, 1 Kingsway London WC2B 6AN CCLA Fund Managers Limited Senator House 85 Queen Victoria Street London EC4V 4ET Natwest Bank PLC 135 Bishopsgate London EC2M 3UR

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

CONTENTS

Page
Group directors' report 1 – 3
Statement of directors' responsibilities 4
Independent auditors' report 5 – 7
Statement of financial activities 8
Group balance sheet 9
Charity balance sheet 10
Group cash flow statement 11
Notes to the accounts 12 - 22

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

GROUP DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The directors present their report and accounts for the year ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with 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).

Structure, governance and management

The charity is a company limited by shares, number 00790136 and is a registered charity in the United Kingdom, number 295020. Its registered office is at 14-16 Duke's Road, London, WC1H 9SZ.

The company's Memorandum and Articles of Association (as amended by Special Resolution on 17 July 1986) are the company’s and charities governing documents.

The directors who served during the year were:

Dylan Armbrust - Managing Director (resigned on 14 December 2020) Simon Swynfen Jervis FSA Richard Mansell-Jones (retired on 23 April 2020) John Nicoll - Chairman Professor Sir Christopher White CVO FBA (retired on 22 June 2020) Dr Alison Wright Dr Paul Williamson OBE FSA Desmond Shawe-Taylor LVO Andrea Rose CMG OBE

The Board meets three times each year and new directors are voted on to the Board at an appropriate meeting. On appointment each director will meet with the Board and staff to receive more information about the organisation.

Throughout 2020, The Board devolved some specific duties to sub-committees, including The Nominations Committee, The Audit, Risk and Remunerations Committee and The Editorial Policy Committee.

Under the Memorandum and Articles of Association, the Charity has the power to make any investments which the directors see fit.

There are no restrictions on the Charity's power to invest.

The Burlington Magazine Publications Limited is owned jointly by The Burlington Magazine Foundation CIO, a charity registered in England and Wales, and by The Burlington Magazine Foundation Inc., a charity registered in the State of New York, United States of America. The Burlington Magazine Publications Limited owns a trading subsidiary, The Burlington House Fair Limited, which transfers its profits to the Burlington Magazine Publications Limited.

Risk Assessment

The directors have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to manage exposure to major risks.

Risk assessments of various areas of the business are made on an ongoing basis and examine potential risks, their possible impact and the mitigation of any such impact. Key areas that undergo risk assessment are IT infrastructure, threats to revenue, and staff-related risks. IT infrastructure risk assessment covers key databases, such as our subscriber and advertiser databases, and there are plans in place, such as on-going data back-up protocols, to recover and restore lost data, should any loss occur. Threats to revenue, such as declining advertising and subscription sales, are continually monitored and evaluated, and business policy and action, such as marketing and pricing activity, is revised to adapt to changing business conditions. Staff risks relate to the retention of key members of staff and staff policies, such as salary changes, are adapted as best as practicable and affordable to address situations that may arise.

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

GROUP DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

Objectives and activities

The objectives of the company, as expressed in its Memorandum, are:

The Memorandum gives the company wide powers in furtherance of these objectives.

The Directors have had regard to the Charity Commission's guidance and the need to disclose how the Charity is providing benefit to the public. The principal purpose of The Burlington Magazine and its associated websites is to publish academic research carried out by art historians working in public institutions and universities, and independently. Public access to The Burlington Magazine is provided through libraries, JSTOR and via its associated websites www.burlington.org.uk & contemporary.burlington.org.uk.

Substantially reduced-rate subscriptions are provided to academics and students. In addition, travel and study scholarships are awarded to post-graduate students and/or independent scholars for the purposes of research.

Financial review, achievements and performance

The net surplus in the Statement of Financial Activities for the year is £5,603 (vs deficit in 2019: £76,743). Total income increased by nearly 4.42% compared to the previous year (2020: £1,039,573, 2019: £995,606). Grants and donations to the charity were £222,973 (2019: £49,712). Total revenues from sales of the magazine in the UK and overseas decreased by 3.64% during the year (2020: £450,680, 2019: £467,718). Advertising revenue decreased nearly 19.20% (2020: £267,668, 2019: £331,275). Both these revenue decreases were primarily a result of the adverse impact from the Covid19 crisis.

In 2020 The Burlington Magazine Publications Limited published 12 issues, covering a broad range of topics across the fine and decorative arts, including new discoveries, extensive reviews of exhibitions worldwide, obituaries of notable contributors to the field of art history, and whole issues devoted to Sculpture, Architecture and Northern European art.

Reserves policy

BMPL is currently dependent on the Burlington Magazine Foundation CIO (BMF CIO) and Burlington Magazine Foundation Inc. (BMF Inc.) to sustain its activities, as earned income alone would not allow BMPL to continue operating.

To avoid closure if funding difficulties were to be encountered the BMF (BMF CIO & BMF Inc) Board of Trustees has agreed to keep a certain level of financial reserves to ensure that main operations can continue for a period of 12 months or longer if required. The main concerns of the board are to ensure:

The reserves are built up from the unrestricted income of the BMF CIO and BMF Inc. invested funds. The level of reserves is calculated and monitored every 12 months by the Managing Director and the Finance Manager.

This policy should be reviewed yearly and whenever there are significant changes in the organisation’s staff structure or finances.

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

GROUP DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

Senior staff remuneration policy

The directors consider the board of directors and the senior management team to comprise the key management personnel of the charity in charge of directing and controlling the organisation. The senior management team is comprised of two persons, the managing director and the editor. Together they run and operate the organisation on a day-to-day basis. The managing director has full executive authority. All non-executive directors give of their time freely and none received remuneration in the year.

Details of non-executive directors’ expenses and related party transactions are disclosed in note 8 to the accounts. Details of the executive directors’ pay and benefits can also be found in note 8.

The pay of the managing director is reviewed annually by the remuneration committee, which is comprised of two nonexecutive directors. The pay of all other staff is reviewed by the managing director. Salary rises are normally in accordance with the annual inflation index published by the Bank of England. Leeway is given for rises above inflation for outstanding contribution or performance in the business, and for purposes of staff retention.

Disclosure of information to auditors

In so far as the directors are aware at the time of approving our directors’ annual report: there is no relevant audit information of which the auditor is unaware. Each of the directors have confirmed that they have taken all steps that they ought to have taken as directors, in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

This report has been prepared in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities (FRS 102) and has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

On behalf of the board of directors

.................................... John Nicoll Chairman

Dated: 30 June 2021

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors (who are also the Trustees for the purposes of charity law) are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the Financial Statements in accordance with United Kingdom GAAP (UK Accounting Standards and applicable law). Under company law the directors 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 company and of the profit or loss of the company for that period.

In preparing those financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

Opinion

We have audited the financial statements of The Burlington Magazine Publications Limited (the ‘charitable company’) for the year ended 31 December 2020 on pages 8 to 22. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF THE BURLINGTON MAGAZINE PUBLICATIONS 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 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 4, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standardsand-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

Our approach was as follows:

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

Use of our report

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

Mark Cummins FCCA (Senior Statutory Auditor)

for and on behalf of TC Group Statutory Auditors Office: Steyning, West Sussex

Dated: 22 July 2021

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(INCLUDING THE INCOME & EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Income from:
Donations & legacies
3
Trading subsidiary income
14
Investment income
4
Income from charitable activities
Magazine publications
5
Total income
Expenditure on:
Costs of raising funds
Trading subsidiary expenditure
14
Net incoming resources available
Charitable activities
Magazine publications
Total expenditure
6
Net income/(expenditure)
Fund balances at 1 January 2020
Fund balances at 31 December 2020		 2020
£
222,973
47,664
2,191
272,828
766,745
1,039,573
13,248
1,026,325
1,020,722
1,033,970
5,603
33,618
39,221		 2019
£
49,712
66,944
2,418
119,074
876,532
995,606
29,997
965,609
1,042,352
1,072,349
(76,743)
110,361
33,618

All activities in the current year and prior year are unrestricted funds.

All activities are classified as continuing. There are no recognised gains or losses other than those reported on the Statement of Financial Activities.

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

GROUP BALANCE SHEET

AS AT 31 DECEMBER 2020

2020
Notes
£
Fixed assets
Intangible assets
12
Tangible assets
13
Investments
14
Current assets
Stocks
1,124
Debtors
15
138,027
Cash at bank and in hand
1,234,889
1,374,040
Creditors: amounts falling due within
one year
16
(1,364,709)
Net current assets

Total assets less current liabilities
Income funds
Unrestricted funds
Share capital
17
100
Share Premium
21,560
Unrestricted income funds
39,221		 2019
£
£
46,687
3,888
975
51,550
1,124
99,095
1,426,446
1,526,665
(1,561,840)
9,331
60,881
100
21,560
33,618
60,881
60,881		 £
85,248
4,230
975
90,453
(35,175)
55,278
55,278
55,278

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

The accounts were approved by the Board on 30 June 2021

John Nicoll - Chairman Director

Dr Paul Williamson OBE FSA –Treasurer Director

Company Registration No. 00790136

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

CHARITY BALANCE SHEET

AS AT 31 DECEMBER 2020

2020
Notes
£
Fixed assets
Intangible assets
12
Tangible assets
13
Investments
14
Current assets
Stocks
1,124
Debtors
15
138,027
Cash at bank and in hand
1,234,889
1,374,040
Creditors: amounts falling due within
one year
16
(1,364,711)
Net current (liabilities) / assets
Total assets less current liabilities
Income funds
Unrestricted funds
Share capital
17
100
Share Premium
21,560
Unrestricted income funds
39,221		 2019
£
£
46,687
3,888
977
51,552
1,124
99,095
1,426,446
1,526,665
(1,561,842)
9,326
60,881
100
21,560
33,618
60,881
60,881		 £
85,248
4,230
977
90,455
(35,177)
55,278
55,278
55,278

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

The accounts were approved by the Board on 30 June 2021

John Nicoll - Chairman Director

Dr Paul Williamson OBE FSA –Treasurer Director

Company Registration No. 00790136

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2020

2020
Notes
£
£
Net cash used in operating activities
20
(191,892)
Cashflows from investing activities
Investment income
4
2,191
Purchase of intangible fixed assets
12
-
Purchase of tangible fixed assets
13
(1,856)
Cash provided by/(used in) investing
activities
335
Increase/(decrease) in cash
(191,557)
Cash and cash equivalents at the beginning of the year
1,426,446
Cash and cash equivalents at the end of the year
1,234,889		 2020
Notes
£
£
Net cash used in operating activities
20
(191,892)
Cashflows from investing activities
Investment income
4
2,191
Purchase of intangible fixed assets
12
-
Purchase of tangible fixed assets
13
(1,856)
Cash provided by/(used in) investing
activities
335
Increase/(decrease) in cash
(191,557)
Cash and cash equivalents at the beginning of the year
1,426,446
Cash and cash equivalents at the end of the year
1,234,889		 2019
£
£
1,047,416
2,418
(27,825)
(5,225)
(30,632)
1,016,784
409,662
1,426,446		 2019
£
£
1,047,416
2,418
(27,825)
(5,225)
(30,632)
1,016,784
409,662
1,426,446
(191,557)
1,426,446		 1,016,784
409,662
1,234,889 1,426,446

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Statutory information

The Burlington Magazine Publications Limited is a charitable company, limited by shares, registered in England and Wales. The charitable company’s registered number and registered office address can be found in the Directors’ Report.

2

Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

2.1 Basis of preparation and going concern

The accounts have been prepared in accordance with Accounting & 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 2015) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Burlington Magazine Publications Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). There are no material uncertainties about The Burlington Magazine Publications Limited ability to continue as a going concern.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £

After making appropriate enquiries, the trustees have a reasonable expectation that the charity (and its subsidiary) has adequate resources to continue in operational existence for the foreseeable future. This includes taking into account any known impact of the COVID-19 pandemic, which is further detailed in the trustees report.

For this reason they continue to adopt the going concern basis in preparing the financial statements.

2.2 Group financial statements

These financial statements consolidate the results of the charity and its wholly owned subsidiary Burlington House Fair Limited. A separate Statement of Financial Activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006 and the SORP 2015 (FRS 102).

2.3 Income

Grants and donations received are recognised in the Statement of Financial Activities in accordance with the terms attached to the grant or donation.

Incoming resources from charitable activities include subscriptions, sales of magazines and advertising space which are stated, on a receivable basis, after deduction of trade discounts and commission and excluding VAT.

2.4 Expenditure

Expenditure has been accounted for on an accruals basis and has been classified under headings that aggregate costs related to each category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.

Resources expended include the direct and indirect costs of publishing The Burlington Magazine and governance costs which are incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements. It also includes expenditure in relation to Burlington House Fair Limited.

2.5 Intangible fixed assets and amortisation

Intangible fixed assets are stated at cost less amortisation. Amortisation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Website 3 years straight line

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

2 Accounting policies (continued)

2.6 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. The capitalisation policy is for items costing over £500. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixtures, fittings & equipment

3 years straight line

2.7 Leasing and hire purchase commitments

Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.

2.8 Investments

Fixed assets investments are stated at fair value, except investments in subsidiary undertakings and Etchings, which are stated at cost. Current asset investments are stated at fair value.

Gains and losses on disposal and revaluation of investments are charged or credited to the Statement of Financial Activities.

2.9 Stock

Stock comprises the cost of materials used in the production of The Burlington Magazine and all the direct third party costs of the finished magazines to be issued in the following month. Stock is valued at the lower of cost and net realisable value, which is the price at which stock can be sold in the normal course of business.

2.10 Pensions

The charity operates a defined contribution pension scheme for its employees. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.

2.11 Foreign currency translation

Transactions denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the beginning of the month in which the transaction takes place.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Foreign exchange differences arising on transactions and on yearend translation are taken to the statement of financial activities in the year in which they arise.

2.12 Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Financial Activities, except to the extent that it relates to items recognised in other comprehensive income.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

2.13 Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

2.14 Debtors

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

2.15 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments. The directors seek to use short and medium term deposits where possible to maximise the return on monies held at the bank and to manage cash flow.

2.16 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

2.17 Fund accounting

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts.

Unrestricted funds comprise funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

2.18 Critical accounting estimates and judgements

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The trustees do not consider that there are any critical estimates or areas of judgement that need to be brought to the attention of the readers of the financial statements.

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

3
Donations & legacies
Donations and gifts
BMF CIO grant
BMF Inc grant
4
Investment income
Interest receivable
5
Magazine publications
Subscription income
Advertising
Other magazine income		 Charity
2020
£
22,973
100,000
100,000
222,973
Charity
2020
£
2,191
2,191
Charity
2020
£
450,680
267,668
48,397
766,745		 Charity
2019
£
49,712
-
-
49,712
Charity
2019
£
2,418
2,418
Charity
2019
£
467,718
331,275
77,539
876,532

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

6 Total expenditure

Costs of raising funds
Trading subsidiary expenditure
Charitable activities
Magazine publications
Activities undertaken directly		 Staff Depreciation
costs
£
£
-
-
670,626
40,759
670,626
40,759		 Other
Total
Total
costs
2020
2019
£
£
£
13,248
13,248
29,997
309,337
1,020,722
1,042,352
322,585
1,033,970
1,072,349

Other charitable activity costs include fees to the auditors of £9,000 (2019: £8,320) for audit and accountancy fees. Other charitable activity costs also include £1,839 (2019: £3,039) relating to operating lease payments and £20,617 relating to foreign exchange gains (2019: loss of £34,182). Operating leases are on rolling one year contracts.

Included within the trading subsidiary expenditure is £1,850 (2019: £1,750) payable to the auditors for audit and accountancy fees.

7 Activities undertaken directly

Other costs relating to Magazine publications comprise:
Printing costs
Editorial costs
Distribution costs
Other staff costs
Travel
Advertising and promotion
Barter advertising costs
PPS and telephone
Other office costs
Financial costs
Exchange differences
Bad debts
Legal fees
Audit fees		 2020
£
56,103
44,594
42,378
69,583
1,321
2,534
48,800
16,128
35,985
8,252
(20,617)
(4,790)
66
9,000
309,337		 2019
£
64,370
36,426
33,804
43,487
5,825
12,845
42,393
36,058
35,506
8,060
34,182
(12,979)
-
8,320
348,297

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

8 Directors

During the year members of the Board, with the exception of the Managing Director, did not receive any fees or reimbursement for expenses.

The Managing Director received emoluments of £132,934 (2019: £126,841), this includes pension contributions of £15,663 (2019: £14,857), employers national insurance of £13,131 (2019: £12,478) and benefits in kind of £457 (2019: £457) in the year for his work carried out as the Managing Director.

9 Taxation

The company is a Registered Charity (number 295020). All activities are undertaken to fulfil the primary objectives of the charity and are therefore exempt under Part 11 of the Corporation Tax Act 2010.

10 Employees

Number of employees

The monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
12
2020
£
550,879
57,498
62,252
670,626		 2019
Number
12
2019
£
542,445
58,280
61,969
662,694

The Editor received emoluments of £101,501 (2019: £99,467), this includes pension contributions of £11,903 (2019: £11,728), employers national insurance of £9,764 (2019: £9,599) and benefits in kind of £457 (2019: £457) in the year for his work.

Other than the directors, who are considered to be the senior management personnel of the charity and whose emoluments are disclosed in note 8, two (2019: two) of the company’s employees received emoluments that exceeded £60,000. Total emoluments for these employees were between £70,000 and £80,000 (2019: £70,000 and £80,000).

Burlington House Fair Limited has no employees or employment costs.

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

11 Comparative funds – Statement of financial activities

All income and expenditure incurred during the 2020 period was unrestricted and is shown on page 8.

12 Intangible fixed assets
Website
£
Cost
At 1 January 2020 and 31 December 2020 115,683
Depreciation
At 1 January 2020 30,435
Charge for the year 38,561
At 31 December 2020 68,996
Net book value
At 31 December 2020 46,687
At 31 December 2019 85,248
13 Tangible fixed assets
Equipment
£
Cost
At 1 January 2020 45,875
Additions 1,856
At 31 December 2020 47,731
Depreciation
At 1 January 2020 41,645
Charge for the year 2,198
At 31 December 2020 43,843
Net book value
At 31 December 2020 3,888
At 31 December 2019 4,230

All of the above fixed assets are held for the parent company's own use, primarily for direct charitable activities.

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

14
Fixed asset investments
Group
Fair value at 1 January 2020 and at 31 December 2020
Historical cost:
At 31 December 2020
At 31 December 2019
Charity
Fair value at 1 January 2020 and at 31 December 2020
The investment assets are all held in the UK.
Historical cost:
At 31 December 2020
At 31 December 2019		 £
975
975
975
£
977
977
977

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

14 Fixed asset investments (continued)

Etchings were purchased in 1989 and 1998 at costs of £750 and £225 respectively. These have been recognised as fixed asset investments in the financial statements and are valued at fair value which, in the opinion of the directors, is the same as their original cost.

The charity also owns a £2 share in its wholly owned subsidiary Burlington House Fair Limited (BHF). Two of the directors of the company sit on the board of BHF. BHF pays all its profits to The Burlington Magazine Publications Limited ("BMPL") by donation. Its principal activity during the year was to engage or assist in the organisation, publication or promotion of fine arts events and activities.

Investment in trading subsidiary

The parent charity, The Burlington Magazine Publications Limited, has taken advantage of section 408 Companies Act 2006 not to produce an individual statement of financial activities for the year, and has contributed the following to the consolidated results:

Gross Income £991,909 (2019: £928,662) Gross Expenditure £1,020,722 (2019: £1,042,353) Deficit for the year £28,813 (2019: £113,691).

The wholly-owned trading subsidiary, The Burlington House Fair Limited, which is incorporated in England and Wales (company number 2018534), engages and assists in the organisation, publication or promotion of fine arts and events and activities. The charity owns the entire issued share capital of 2 Ordinary £1 shares. A summary of the trading results for the year ended 31st December 2020 is shown below:

Turnover £47,664 (2019: £66,944) Cost of sales and administrative expenses £13,248 (2019: £29,997) Donation to Burlington Magazine Publications Limited £34,416 (2019: £36,947) Net profit/(loss) retained in the subsidiary £nil (2019: £nil)

Current assets £1,852 (2019: £1,752) Creditors: amounts falling due within one year £1,850 (2019: £1,750) Total net assets £2 (2019: £2)

15
Debtors
Trade debtors
Other debtors
Prepayments and accrued income		 Group
2020
2019
£
£
101,321
49,685
32,431
46,304
4,275
3,106
138,027
99,095		 Charity
2020
2019
£
£
101,321
49,685
32,431
46,304
4,275
3,106
138,027
99,095		 Charity
2020
2019
£
£
101,321
49,685
32,431
46,304
4,275
3,106
138,027
99,095
99,095

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

16 Creditors: amounts falling due within one year

Group Charity
2020 2019 2020 2019
£ £ £ £
Trade creditors 29,132 44,051 29,132 44,051
Amounts due to related undertakings 888,428
1,091,799		 890,280 1,093,550
Taxes and social security costs 20,518 17,413 20,518 17,413
Other creditors 32,598 14,652 32,598 14,652
Accruals 13,910 11,842 12,060 10,093
Deferred income 380,123 382,083 380,123 382,083
1,364,709
1,561,840		 1,364,711 1,561,842

Deferred income comprises income from subscriptions which relate to future years.

Group Charity
2020 2019 2020 2019
£ £ £ £
Balance at 1 January 2020 382,083 381,151 382,083 381,151
Amount released to income (382,083) (381,151) (382,083) (381,151)
Amount deferred 380,123 382,083 380,123 382,083
Balance at 31 December 2020 380,123 382,083 380,123 382,083
Share capital
2020 2019
£ £
ssued share capital 100 100

17 Share capital

Issued share capital

The authorised, allotted and fully paid up share capital of the company is comprised of 50 "A" ordinary shares of £1 each and 50 "B" ordinary shares of £1 each. "A" class shares have 75% of the voting rights and "B" class shares have 25% of the voting rights.

18 Pension and other post-retirement benefit commitments

During the year the group made employer's pension contributions totalling £62,252 (2019: £61,419). Contributions outstanding at the year end totalled £6,856 (2019: £5,600).

THE BURLINGTON MAGAZINE PUBLICATIONS LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

19 Ultimate parent companies

The beneficial ownership of the company rests in equal parts with the Trustees of The Burlington Magazine Foundation (CIO), a charitable trust established in the United Kingdom, charity number 1187286, which controls 75% of the voting rights, and The Burlington Magazine Foundation Inc., a not for profit corporation established under laws of the State of New York, United States of America which has 25% of the voting rights.

The company’s board can consist of no fewer than three and no more than nine directors.

20
Net cash (outflow)/inflow from operating activities
Note
Reconciliation to changes in resources
Net movement in funds
Depreciation of tangible fixed assets13
Amortisation of intangible fixed assets12
Increase/(Decrease) in creditors16
(Increase)/decrease in debtors15
Investment income4		 2020
£
5,603
2,198
38,561
(197,130)
(38,933)
(2,191)
(191,892)		 2019
£
(76,743)
1,620
29,741
997,529
97,687
(2,418)
1,047,416

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