MOORE Kingston Smith THE MAGIC CIRCLE FOUNDATION LIMITED (fonnerty Centre For The Magic Arts Limite¢fj TRUSTEES, ANNUAL REPORT AND FINANCIAL STATEMENTS 31 MARCH 2022 Company No: 02155182 Registered Charity No: 297582 4A8IDJC8H* 0711212022 COMPANIES HOUSE *255 THE MAGIC CIRCLE FOUNDATION LIMITED Repr*rt and Financial Statements 31 March 2022 Iformerty Centr8 forllje Magic Art5 Lifftil¢dl Contents Chairman's Statement..................................................-................................. Company Details........................................... Trustees. Annual Report..................................................... . .... . . Independent Examinerfs Report........... . Statement of Financial Activities (incorporating income and expenditure account).......... 13 Balance Sheet.................................................................... 14 Notes to the finanoal slatements.....-.-.-...-......-.-....-..........-...........-.................................. 15 .23 12 Detailed Profit and Loss Account.... . . THE MAGIC CIRCLE FOUNDATION LIMJTED Report and Financial Statements 31 Ma￿h 2022 Chaim)an's Statement This financial year (2021-221 we are very pkased tt) have 4bekomed 336 M￿berS ofThe Magic Cirde as members ol The Magic Cirde Foundalion Limited. This brirYJs ￿ total membership to 341, five members of The Magic Cirde Foundatson LtLI a￿ not members ofThe Magic Qrde. These are our four Independent Trustees, Marbn Kaulman. Neil Pritchard. Brian Sib* aThJ me, and our one co-opted Board memter. David Cheeseman. It is the responsibility of member5 of the charity to monitor the progress of the charity thrwgh this annual report aThJ a￿nts. lo give realistic and IMPkn￿table advice to the board and lo help vtherevw pracb"¢al. Vlhile Ihe impact of COVI(>19 restrtdions thrcwtyh)ul 202Lk21 had a profrjund effect on the ability of the FotM)dats"on to generate In￿Me we are ab￿ to report an ¥nprovement in tradirYJ in 2021-22 and the continuation of a po￿￿'ve Surplus, achieved through carefijl o>)ntrol of Costs. reduced overheads. finantyal support received through 8ppli(2b"ons for Govemment COVD-19 business support grants. We continue to look to Use that surplvs fof charitable purposes and for the inueas&J improvement of ThB Magic Cirde Headquarters and its content fcy those pwposes. The financial results of the Ye￿ are expl*"r￿d in detsl in the Tnjstees. Anftu￿ Report belw but highlights indude {to the r￿areSt lh￿sand pwrKtsl: An annual sU￿1￿S of £23.810 Reser4es ntm stand at £499.185 Reserves are necessary io ensure that any emergwry ¢rxKeming the viability ol The Magic Cirde Headquarters at 12 SlepPenson Way can be resolved prcThptty arKI also that. shoukl il ever be necessary. the Charity can be disconthnLRd in a tidy way. The &)ard has agreed lo 12 months overhead In order lo protect our future bU￿r￿sS at The mag￿ Qrde Foundation. bu￿￿$$ that is essential to the future of our organisation. we have ContinL￿d to work effectively with the High Speed 2 raihvay company. HS2 Ltd. and their current contractor ma￿ Oragados both Ihrouth Ihe Stephenson Way Group ISWGI 8ThJ when apwowote. direclly. We lindividualty and with SWGI have Cortbn￿ lo be atfvised by our sr>ecialist adviser. Henry Clarke of Rail Estsle. We a￿ also advised by iwo further indeperKlent consultants. Paul C W Danver5 of PCC Propety Congjltants Lld and Stuart Hutchinson ol Samudy Ccmsutting Struclural Engirters. on matters relating to ow party wall wrth the nthv demdished Wottson House and land settlement risks in relation to Ihe pilling activity to be uTrJertaken for the buikJin9 of the vent shaft. HS2 meet the PrOfe￿Onal costs of the latter advisers. HS2 81s0 meet Ihe cxjsts of a speoalist soli¢itors, BDB Pitmans, whose advi￿ we need in connection legal consultslions TeLating lo HS2 and its works. In addition to our professional conwltants. we are lo c￿tre Oire¢tor. Darren Martin. Trustees, Brian Sibley and Garry Thomas. and past-Trustee. Tery WrighL for their willingness to attend regular meetings and engage HS2 aThl their contractors. Stephenson Way ard the Who￿ area arouryl ow Headquarters have been seriously impacted by the extreme disruption caused by the ccflslnKtiC￿ work arothd Euth. This is likety to have an Impact on The Magic Circle Foundation, and its tradir¥J company. 81 least the next ten years. This yearfs finanaal resuR refiect5 the cffj-goNIg drffiujtt trading c¥y)dilicms throughout 2021-22. both pandemic and HS2 related. This p￿ClI of disrupb.on aThJ if￿nVenience has highlyhted to us the Importan￿ ol maintaining relationships wlh our cJJstomers and suppliers to ensure their c(Jnb'nued support. We rely on the contiNation of our existiThJ revenue generators to maintsin our small annual gJWus. The outcrKne for Ihe curTenl year 2022-2023 is anticipaled to ranarn thalknging for the F1￿n￿a￿.0n with the continued combined impacts of HS2, knxit and rigry ￿$1 of living prices, in particular energy )sts. Results will depend on publi¢ appetite for Itve perforMan￿S and o)rporate interest in venue hire. THE MAGIC CIRCLE FOUNDAnON LI￿TED Report and Financlal Statements 31 March 2022 We will continue to Ffomcle for and events VthI￿ seeking nert approaches to its use arKI prO￿on. While our annual Su￿1￿$ will Continue to be athersely affected by current events, l am reminded Ihal in 2011 Ihe Foundation had an annual defirit of £120.747 arK1 1 am very proud that over the past ni year5 we have proven our ability to 8dapl lo chan9ing O￿￿M$1anceS and imwove ¢JJr processes so tuming Ihat defi¢il nlo a substantsal reseTrE and annual surplus. Our work and suts*ss deper*d greatly M tr* orYJoing suppNt of volunteers. who have been active even 81 the heKJht of the COVID-19 uisis. Managrng a very public-faaThJ buildiThJ during a pandemic and while coping with the fcffces of HS2 a5 r( demolishes ts building adja￿nI lo our own has been an enormous challenge especially when deni8J the 5ab"sfactw that (Jjnes from seeing The Magic Circle members meebng wth one anolher and Ihe presence of regular visitors and guests enjoying our facilities. exhibrts and enlertairrfnents. l exter¥J the Board's hewttelt thanks to Centre Director, Darren Martin, for his cc¥)ts'nued care of our buiklirKJ and its conlents and for the renewed effcffts of him and hi5 team as The Magi¢ Circle moves towards reiurning lo its usual wc*Jramme of events. OUT wholly owned sub5ith8ry. ￿ Cenlre Magic kn (Trading) Ltd {c￿T} is respon5ilAe for handling all the trading type actiwty to do with sh(Ms. venue hire and bar ar#J shop sales, while The Magic Circle Foundation Ltd (the parenl tharity) handles the upkeep of The Magic circ￿ Headquarters al 12 Slephenw Way and staff or contractor employTrent aTrJ rer*arges a proF<>rtion of tts costs to the subsidiary trading company. gjrpluses made by C￿T are transferred lo TMCF Lkl. Howevei, as a result of the on•ing chall￿9ftg trading WKlitions ¢￿T has been unable to generate a surplus. The day-loQay accounting is handled by a p8rt-tvme ae¢ountsnL and a part-time bookkeeper, prowde the wessary accounts services indudir¥J maInlenan￿ of the accounling record5, billirvJ 8nd payments, prepafalion of quarterty financial reports. subffl1s51¢￿ of VAT r8tums, and preparab'on of draft annual accoun15. This w¢xk 15 carrEd oul uThJer the Supwish￿ of the Treasurer. We also continue lo use a third-party agency to deal with payTc41. &n¢e April 2019 TMCF has be￿ respon&ble for Ihe Young Magicians aub IYMC), The Magic Circle's l¢)ng-rwtning youth initiative. This has represented a worKlerful ¢¥rrtytunity for TMCF to widen its chari18ble work. In Juty 2021, the YMC re￿ted hamng 30) ￿￿mberS, and has been active with running successful (x)4ine worksh)ps Ihfough)Jt 2020-21 and a well•atter*Jed on-line J￿10￿-D￿Y event for member5 in October 2021. The 8oar(1 ackno•*led9es ￿ hard of long-standiro YMC Chair Kevin Dcrfg and his team. In September 2021. the Board officially app￿￿ted Alan Rogers as ils Safeguarding offi￿r, who will work dosely wilh Kevin Doig. who is also The Magic Cirde's Child PrOtect￿n Officer. Following her elects.on as President of The Ma9￿ Cirde in Seplember 2021. Megan Swann also assumed Ihe presidency olthe YMC, mOStfitt￿gIySITrL, asa fumerYMC member, tr* dub ¢onlributed to her success in magic and her subsequent outslwdiry C$￿1￿￿J11Ons lo ￿AgiC Cirde as its Seuetary. Vic* President and now President. In the repth"NJ penr*J. we have had a number of chaThJes to Ihe ￿n￿ti0ft of the Board. Noel Britten MIMC res*Jned as Presidenl of The MagK Qrde in April 2021 as in ¢SJing so, cEased to be an ex officio membef ol the Board. Noel brw9ht a drive and determinab'on to his role as trustee as well as insights into The Magic Qrde performarw. l thank him fu his work for ts Fcymtlalion. In Juty 2021. kne Board devek)wJ a nert and mLYe transparent prC(￿ to recruit P*Jard members, before ￿)d￿lIng a recruitrnent campaign. Arlides of AsS￿latiOn sts"pulale that no more than half the Board can be non-membws of The Ma9￿ Cirde. At this lime. il was determined that the &)ard vnjld benefit most frown ￿￿-meMberS as they would be impartial to The Magic &'rde inlemal issues and they would bring SF*afic skills that the Board requwed. The 8oard's intentim was to find suitable irKlividuals who had skills in fiJrKI raisTh3. law arnl human resources. Al the 2021 AGM. three r￿¥ independent INstees were elected. These ind￿Je￿ ￿ Martr Kautman. speoalist in tharitabie fLThfraisiryJ with a wealth of expwW￿e i￿UdIr￿j work with the National Trust, THE MAGIC CIRCLE FOUNDATION LIMTED Report and Financial Statem•nts 31 March 2022 Hackrw Enipire Tratre and the Museum of LmdI￿. and Mr Nwl Prilchard, the CFO of a cyber technology oJmpany with a strcry track rec￿￿ in busirw Iransformation, property management and human resources. l am the third of the apwnled trustees. I have ovef 30 yeaTS' experience as Cty solicitor Wth one of the leg￿ worfd's 'magK orde. law fimis, arKI have experience with HR, financial management matters and mediab"on. It was.also at the 2021 AGM that Mr David CIEesernan stepped down as a trustee. David has been L the Board Since 2012 and provided e¥perb"se in HR and the transport sector. In recent years. David has provided essential supwrt in dealing with a difficult HR issue and has provided additional support throughoul the COVID Ic(kdown period. Dav*J also agreed kindty to stay on ihe Board in a co-opted postion lo further support the newly appointed trustees during th￿1 transtion periDd. Oavid will be formally stepping down frfm the &)ard al tr* 2022 AGM. I woukl like to thank David f(x his long-lem dedication to the wcrfk of the Foundaticn. During Ihe rewling period. Mr Brian Si￿eY has been intwim Chair. Brian has a trHghly respected member of The Magic Cirde many years, iaking on 8 Nmber of foles induding beiThJ Chair of Council. Brian iine(J the Board of Trustees in 2012. when Peter KWe stepped down as Chair of the Foundation in 2020, Brian agreed to take on Ihe role for ￿ interim per￿. While our Artjcles of Associalion allow a standing member of The Magic Circle to chair the Board. it is more usual for the role to be held by an inderendenl truslee. In Ihe interests of impartiality, Brian dec4ded to re&gn from The Magic Circle in order take cffl the rde of Chair of the Foundation. As interim Chair, Brian successfulty led the organisation ihrough of Ihe COVID lockdown peri¢>J. He also extended his tenure in ¢yder to facilitate the recruitment of ne•V trustees. Brian stood tjown as Chair in June 2022 aNJ will step down as a truslee at the 2022 AGM. l thank 8n.an for his leadership and dedution to the FOur￿abOn. and for the support he has offefed to me and my fellow newly apptynled trustees. The Board 1$ uJThenlty made ￿ of nine trustees: Sarah Campbell. Marb'n Kaufrnan. Megan Krthiles Bacon. Barry Harris (Treasuwl. Neil Pritchard. Stuart Scott Iseuetaryl, Brian Sibley. Garry Thomas. and me, Virnal Tilakapala {Chaw). The Foundab"on is.. as a￿ys. very grateful lo membws of The Magic Cirde who give thwr lime aThJ . lalent to put on our fantastic shows. particularty the Christma5 Show as well as the ever-popular regular °The Magic Circle ltysteries PA41¢ Cirdes Secrets". 'M￿daY Moming Magic.. "History and Mystery at The Magi¢ Cirde" and the"ClostrUp at The MagK Cirde. events. These sh¢y4¥S consislentty receive reports of high client sats"sfaCt￿, and we k)ok forward to a time when we can be fully up arxl runnitV3 agarn with these splendid events. The etsnp8ny ￿lieS he8vily on a (x)ntinualty sustained and renewed loyal band of volthleers who pul in so much of iheir time lo run our public evwts and bring in mLxh needed revenue. These activities have been svJnificanlly scaled down in this year but. or￿e again, l offer a hewttelt °Thank You. to you all, and lo my fellow Trustees. are also, wilh me. voluntews. Your conb"nLhed support aThJ enthusiasm is essential to the ￿j￿SS of this enterpnse. Vimal Tikkapala Cttair of t￿ Board <,y THE MAGIC CIRCLE FOUNDATION LlhlTED Report and Financial Ststemonts 31 March 2022 Company Details Ex•¢utive Committee l Board of Trusts•s M•rnber Chang0S Mr Noel Britt President of The M8gic Citle & Tnistee Ms Sarah Campbell Trustee 02A)9r2019 Reswed 10KMr2021 2W2018 Mr David Cheeseman Independent Truslee /coWedn￿mbef 2W05r2012 Resigned 27110r2021 but CO• 27110r2021 ICtr￿ted) opted to Board (To sland down at 2022 AGMI Mr Bary Harris Treasurer & Trustee 02110r2017 Mr Marlin Kaufman Independent Trnstee 27110r2021 Elected to Board 8t 2021 AGM Ms Megan Knowtes-8acon Presldent of Tb8 IAa9ic c￿de & Trust8e 18104r2021 {Acting) Ex-officio member of Board 1>0912021 {Pl￿dent) from 1e40412021. first as Acting PresvJenL then as Prestdent from 1m12021 Mr Neil Pritchard Independent Trustee Mr Brian O Sibley Interim Chair & Independenl Trustee 27110r2021 Elected to Boafd at 2021 AGM 0611012014 Chair 091012020 until 0110612022 (To stand dovm at 2022 AGM) Mr Stuart Scott seL¥et￿ & Trustee Mr Gary Thomas Tmslee 25107r2018 17107r2017 Mr Vimal Tilakapala Chair & Independent Truthe 27110r2021 Elected to Board al 2021 AGM Chair frcffn 0110612022 THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financlal Statements 31 March 2022 Secretary and Registered Office MrSAScott 12 Slephen$￿ Way. London. NW12HD Company Registration No. 02155182 Charlty Registration No. 297582 Bankers Handelsbanken 86 Jerrn￿ Street. L(ThI￿ SW1Y 6JD Independent Examiner . Moore Kj'ngston Smith LLP The Shipping Buikdirvj The Okl Vinyl Factryy ylh Road Hayes Lcvidon UB3 1HA Solicitors 8ond tXd(inson LLP 4 More Londi>n Rivers'de LorKlon SE1 2AU THE MAGIC CIRCLE FOUNDATION LIMtTED Report and Financlal Statements 31 March 2022 Trustees. Annual Report The Trustee5, 7th0 are also Oireclors and Members of The Ma￿C Circle Foundation Limited(Yhe compan￿) for the purpose of ccffjpany Liw, are ￿SpOrts￿le, throLoh the Board of Trustee5 for overseeing the bu￿neSS ofthe charity and l*reby p￿sent tt)w"r report an¢J the indepeTrJenlly examine(J financial slalements for the year ended 31 Marth 2022. The firwnrjal ststements compty the charih.es Acl 2011 aTrJ the A￿untIng and Reporbng by Charities.. Statement of Recommended Practtt applirable to charilies preparing their &counts in a¢Ctydar￿e ￿ Ihe Finanaal Rep(￿t1Thj Standard applicable in Ihe UK and Rewblic ol I[e￿nd IFRS 1021. Structure. Gov¢rTr•n￿ and Manag•m•nl The company is a register&J charity Ir¥)_2975821 limited by guarantee and is govemed by its Memorandum arKJ Articles ofAsso¢ob"on. Tr ￿MpanY was incorpcTrted on 17 August 1987 artl was established under a Memorandum of Assouab"on. which identifie5 the object and powers of the Charitab￿ company. The company is goVer￿d urnler rts Arb"des of AsxKiab"on. The Memorandum and A￿"￿e$ we brought up to date and approved by Ihe members of the Centre for the Magic Arts Limile(I Ilhe former name of The Magic Cirde Foundalion ￿Mited} at the AGM of 5 October 2015. In Ihe event of the company being w0￿j up, membws of the e4)mpany are r&]uired lo contribute amount not exceedirKJ £1. The Trustees of the compwy al the date oftr* 2021-22 AGM. a￿. Ms S J Campbell. ￿ D S Cheeseman, Mr B Harris. Ms M Knowle5-Bacon. Mr B D Sibloy. Mr SA ScotL Mr G Thryna5, M Kathan, Mr N Pn"tchard. ￿ M Tilakapala We thank our very able a¢¢wntsnt (K2ren Pdjder) and b)okkeeper {Sally Young) for dealing with matters finartual so effi¢ienUy d￿l¥j this p￿. Ne•4 Trustees are appoinleij by the Board of Trustees in the short term and elected by the members at the first available AGM according to Artide 57. Under the requirements of the Artides of Assocjation the longest serving c(Jnmitlee members al the time of the AGM musl rebre and may offer themselves for re-election. There are cJJrTenlJy 369 V2mbers ofthe c(¥npany (including Dire¢ttysl eath ofwhcfn pay5 a £1 annual subscripts.on thrwh their membership sth¢riptM)n to The Magic Cirde (TMCI newable in the Spring of each year and who are enliyed to vole at the AGM. We require that each member of the company gives their consent at each rerwal of ￿.rTmc membership to CC￿tsnUe also to be a member ol the o)mpany. This is addressed with members by TMC ai the bme of their r￿eWa1 of TMC membership. The members of Ihe board are considered to be key management aTrJ do mt receiveany remunwation for their role as board member. The Truslees meet at a monthty TnJ5tees' board meeting to revithv cg)mpany perfomiance and to establish arKI monitor aCt￿￿S to lulfil Iheir responybiliti"es. Shoukj the￿ be a need for any urgent action then Ihe board communi¢alw)n SySt￿n by e-mail arKI %a¢* is considered quik sufficienL The subsidiary cornpany. Centre for IIÈ Magic Arts TradiNJ Lld ICMAT Ltd) is registered at CLJmpanie5 House {a private limited company incorporated 26 O¢tc*•er 2011: company number 078248031. buSi￿S of CMAT Ltd is reported and monitored through the board of Iruslees meeting. The tsyo Dire¢tors of CMAT Ltd are Mr Bary Harris. Treaswer of TMCF. Mr Darren Martin. Ihe Centre 'rector. This e£mbined management system simplifies the administrative burden of the companies. The clear separntion betvleen the companies can be seen al the financial accounts level as reported bek)w and in the annual reportfor CMAT Lkl. Unlessolherwise specif￿. in Ihis annual rei*Nt Ihe COM￿Y' refers to the dianty TMCF Ltd and its s￿sidraY CMAT Lld together. THE MAGIC CIRCLE FOUNDATION LIIATED Report and Financial Statemerrts 31 March 2022 Objectives and Activities The main object of the charity. TMCF Ltd. 1$ to prcrfnote the eduCat￿n of the public in the history and practice of the art of magic. wi parti￿lar by: mainlainirKJ a library and museLm of Ma9￿ ths and artefact> promotin9 publ￿ lectures". and providing or assisling in the provision of a ￿tre for meeb'ngs. le(*ures. dasses and other forms of educalN)n for the benefit of the publK. Specifically. there are moming entertainments ￿ families. I￿time enlertainmenls for instiiutes. rotary clubs and like bodies all at a redLK*d rale when compared with the eveniro sessions.. there are also free entertainments for local sthwls and disadvanlaged children offere(I to Ihe local council.. aNI Ihe library is made awdilable in the presence of a librarian free of charge to all of those condu¢ling a¢zdemic research. Sp￿131 tharilatle events are also organiwj as fiJnd4aisers. and we are very graleful to all of those who gwe freely of their time to c¥ganise and perform at Ihese events. Th¢ main objective of Ihe Subsidiary. CMAT Ltd. is to genwate wh ifKome through c4Jmmercial adivities to be abb ¢0 maintain our buikling a￿1 to dwrilabl8 acbvrties. Achievements and Perforniancè Despite the on-going challenging trading ¢w￿l￿On$, the company 9eneraled an improved surplus cornpared with 2020-21, ach￿¥8¢1 through a combin8ts.on of In￿ased revenue from shows and venue hire. gO￿j ¢¢￿trc4 ofcosts. and goNemment Cothd-19 related business doswe grants totalling £34.054. Corporate venije hire is an important eknienlofour Pwsiness strate9y, aluiough in response to chan in the pre Covid-19 ecorLJmi¢ envirorwnent we had sought to increase OLK income from performances. The luture for corporate Ven￿ Imre wll r*ed to be assessed in Com1r￿ rTh)nlhs. The ¢>)mpany is. as a￿aYS. very gratslul the har41 wtyk of its management team and thanks them very muth. It also will continue to rely very heavily on its many volunteers who give freely of their time to help al public events. Withwl Ihis generous time (*mmitr)enL it would rh)I be wssible to run these events. The Tnjstees are very gratefvl for this loyal support. t*hith. although it carmt be quantified in the accounts, is exceptionally valuable and is much appre￿8￿. Thank you all! The plans of tt)e HS2 company. HS2 Ltd, to re•ConStr￿1 Eustm Ststion. HS2 Ltd are ongoing. The building on the east side of 12 Step￿Th$on Way Iwotfson House) tss been demdished, thus exposing the party wall. They are presently conslnJcting a vent shaft to serve ts Northern Line Underground fai￿aY {￿plaC￿g the current vent shaft in Mehon Street at the side of Euston Station). Plans are being shared us through the Stephenson Way Group of charilies ISWGI but access to our building will continue to be restricted, alth￿gh not totally dosed. and there ¢ontinues to be Ix)n t ction disturba To this end we attend r ular Mc￿thI meetin s with HS2 where we ar briefed on prc•Jre55. We ihank the other members ol the SWG for their partnerthips as we move forward. The rrwibers of thi8 group. who all premises arourvj stephens￿ Way, are The Royal Colle9e of General Practitioners. The Welcome FourKlatiM. The Quaker House. The We5* Hotel llnlemab.onal Mellyxlists Centrel, The Royal College ol Ophthal￿￿iSts. and The Royal Ag"ats¢ Society. All these organisations are ¢harities. We are very graleful fcf the conlributicffis that Ihese tharities make aIt￿gsK1e us when wtrking HS2 matters. While Ihe long-tenn impact of CNd-19. Bre￿1. and spirallir¥J costs on Ihe ability of the irading rLJmpany to generate income fty the Foundabm is not yel dear we will have to CA)nb"nue to adapt and find rthv ways ol working during 2022-23. It is our intention to review the longef-term sustainability of the trading company in the corn1r￿ months.. We do expecl the trading ￿nd￿lonS to conb.nue to be challenging but we have Confidence that we have suffi¢xnl reserves to gjstain ihe FrAJftdati￿ in the short to medium term. THE MAGIC CIRCLE FOUNDATION LIMITED Raport and Financial Statement5 31 March 2022 Financial Rovl•w Since 2013 all trading ath"wlies armj public Ferfomiances have been arLounted for in the books of CMAT. the wholly owrEd subs*Jiary of TMCF. This has been in lyder to compty ￿1h the requirements of the Charity Commission. TMCF ¢ontsnues lo manage the building al 12 Stephenson Way and lo employ Ihe staff needed lo run Ihe tharity and administer 811 the ath"vib"es of the tsvo cffl)panies. TMCF then Charges an ￿minIstration and management fee to CMAT for its share of these Costs. Finally. CMAT remit5 811 its profft fry Ihe year back to TMCF by way of a tharrtable donation. A surplus for the year of £23,810 is sl9nrf￿nUY h￿her Ihan last yearfs surplus of £2.863. an increase of £20.947. The on-going challen¢Je5 durirrfJ 2021-22 resulted in the trading company making a los5.for second u)nsecutive year. 2020-21 was the first time ihis happened ￿rKe Ihe company started trading in 2013. The Foundation was able to skn.ll make a modest surplus as a result of an inuease(1 (*arge lo the Magic Cirde for use of Ihe buildirvJ. donations. and wvemment u)vid relat￿ grants. The rnain components ol the rise in gjrplus this yEar we￿. £ 45,630 increase in general income £ 15,0551 decrease in YMC irKome 4.200 decrease in HS2 related ￿$ts £ 129.626) increase in othef cyerating costs 5 798 d￿rease in o)st due lo YMC aclivib'es 0 947 Total nel in¢￿se in SLKpIus The yjrplus for the year Combined wlh the loss made by Ihe tradir¥J company takes the reserves of both cornpanies tcoether to £499,185 of vthith only £1,220 is ￿StrIc￿ed. At the yeor-end we had cath at bank and in hand in both c(¥npar¥es tcoelher of just over £411.(MJ). an increase of £15.CQO over Ihe previous year {lo Ihe newest t￿&$and Independ•nt Exomlnalion Independent examination. an approath Fermitted by the Charity COMMI￿￿, is a simpler and less expensive f(*m of exlemal ￿¥Ub"nY than a fvll audit. For future years Ihe Trustee5 will cnnsder wtich version of extemal suub"ny, independent examination cr audit. they believe is in the best Inte￿$ts of the company, in¢ludirYJ its subydiary. at Ihe b"me. Tr* two crxmpanies. TMCF and ￿T. are reviewed separately. Re$erve$ Poll¢y and Revlew The charitsble company aims to maintain reserves sufvient fty its effeclive wab'ons and as prowsi¢Jn for refijrbishment ¢J)sts. nomal Maintenar￿ a￿1 funning costs. The Trustees regularfy Mc￿lI0r and discuss the oppowbmbes available to the charitsble company and risks lo whith it is exposed. The Tru51ee5 consider and revTrew the finan¢ial perftyrnartr of the charitable o)mpany in terms of kicome gen￿tiOn from ￿nMe1claI activities and publ￿ events while contrdling Ihe (x)sts of the maintenance and upkeep of the buikling thrOl￿ the Centre Cmector and suppyt staff. The prospects f¢Y fvture peri¢xls are ￿nsidered at eath TTUStees' Boarf ￿ts"n9 to ensure that the company can meet its obiecbves aTrJ to ensure reserves a￿ li pkce lo ￿ats18 Ihe £￿-gOIng success of the company. Plans for Future Period$ The Director ofthe Centreworks the Board ofTrustees lo find newways of improvffvj and adapting ihe business. THE MAGIC CIRCLE FOUNDATION LIMrrED Report and Financi•l Stat•ments 31 IAarch 2022 The ccwnmer¢ial actiwties of the subsidiary ￿rnpanY are seen as vital flx maintaining on-going success of Ihe tharity. Funds ￿tinue to be required for a prosyamme of mainlenance and refurbishment ofThe Magic Qrde buikjing. To this erKI we intend to continue, with the help and support of members of The Magic Cirde. lo develop Ihe events programme. We will also conts'nue lo lod( at ways to maxiiiiise in¢ome from the corp(nte hire of the building. The current ewnomic uncertainties 11 conb'nue to keep tradirvj conditions thallenging. This Mll Cp)nb"nue to be closely monitored. Publ1¢ Benefrt The InJstee$ are awafe of Ihe Charity C(xnmisSi￿'S gUIdar￿ on publ￿ ber*fiL Golng Concern The Boafd of Twslees Is of the opinion that the charity has adequaie resourcés to coniinue In operational existen￿ for the short lo medium temi. However, ￿ ongoing uncertainty regarding Ihe global parKiemic ￿11 require the Centre Director and the board lo c&w)thnuwsly monitor and review the impact on the Foundation and Ihe tradiThJ subsidiary. Fundrolsing As part of the F￿ndati￿'S strategy, the Board bbill be eonsdering types of additKm81 ftJrKlraising that Could be undertaken. arrtl hthv this might be ¢Jone *id is aware of ts ￿￿Je isSL￿d by the FLmdraising Regulator. THE MAGIC CIRCLE FOUNDATION LIMITED R•port and Financlal Statements 31 March 2022 RSsk M•n•gement The board ¢))nducts reviews ofthe maffjr risks taur#J the company. arereccKded n a ii%k regisler. The establishment of sy5tem5 and ￿ntr￿S to mrtj.gate the risks idenbfied: and The implementation of procedures de5wJ￿ tr) rninirnise any [￿lIentral impact on the ￿Mpary should any of those maleitalise. As with the management of financial reseryes. emerging risks that the C￿panY faces are considered at ojmmiltee meetings 8rM1 strategies. ¢￿trOl$ and systems develcyed to help mitigate each risk. As reviv14ed above one ofthe majcy risk5 fortr* r*ar [Ulu￿ ccmtinues to be the pLgns to develop Euston Ststion as part of the proposed HS2 Huh Speed train link. which woukl briThJ the new staticffj premises rmmedialely next to our building al the eastem side. Tr Magic Circle Counul and The Magic Circle Foundation L*nit¢d are workirvJ wilh Ihe HS2 team and an extemal eonsultant on an hoc basis to address our need for distwbance to be mirumised and our need to continue in business. an¢J also to ensure that we do not miss any opportLThties. WhFle th8 current econ¢Jnic. and geopolilical, uncertainties omain Ihe Trustees are wbable to predtct the associat8J risks with a degree of ￿rtalIty. HtY•ve¥er. wth the existing levels of reserves. the Trustees believe Ihat Ihe FoLmdation is well pkced to cope wilh these c*allenges and antscipates emergiry from the uisis in g¢X￿ shape. Stat•m•nt of Truslees Reswsibilities The Tiustees {who are also members and drectors of The Ma9￿ Cyde Four¥Jatth Linited for the purpose of company lawl are responsible fw prepamg the Trvstees. Annual Report and financial statement5 in acccydance with applicabk l• a￿1 United ltingdom Standards (United Kingdom Generally Accepted Accwnb'ro Pr￿Llee). Company law requires the Trustees to prepare ￿ary￿al statefflents for ea(* finarnial year. wlith give 8 true and fair wew of the stale of affairs of ￿ o*aritable compary aTrJ ol Ihe incoming resour¢es and application of reS￿ree5, irtduding In￿Me arml expendiiure. of ihe Cl￿n[able company for ihat Pe￿d. In preparing Ihe$8 financaal slalements. the TnJstees are required to.. select witable aco)￿ting polues arKI then appty rmystenty. observe the metI￿)dS and prinaples in the Charities SORP make judgements a￿1 a{￿Un￿"n9 estimates Ihat are reasonable pvudenl. stste whe￿[ applicable accounlng standards have been fdkhyed, subJe(I to any material deparbjfes disdos&J and explair￿d in the finanoal ststemwts." arKI prepare the ffinancial Slat￿nents on the going concem ba￿S Un￿ it is inappropriate to presume that ts ¢￿panY wll con11r￿￿ n b￿1￿$. The Trustees are respongble for keeping adequate accounting reoyds Ihat disclose with reasonable accwacy at any time ￿ financial position of Ihe r￿MpanY and enable them lo ensure that the financial statements c￿nplYwllh the COMpan￿$A¢1 21x16. Ttsy are also responsible for safeguarding the assets of the charitsble company and for taknng reasonab￿ steps the pyevenlion and detects.￿ of fraud and other irregularities. In so far as the trustees a￿ awwe". a) Ihere is no relevant informat1￿ of whKth the dWritab￿ companys independent examiners are unaware.. and b) Ihe Trustees have taken all the steps that they tyjghl lo have laken lo make themselves aware ol any re￿vant informaiion and to establish tst the independenl examirws are aware of Ihat infomats"on. 10 THE MAGIC CIRCLE FOUNDATK)N uMfTUI 31 Much 2022 <7.Y 11 THE MAGIC CIRCLE FOUNDATION LIMTED Report and Financ¢al Statements 31 UaTch 2022 Independ•nt Examinerfs Report to the Trustees of The Magic Circle Foundation Limited I reF(At to the rknrity trL&*te45 ￿ my of tr* ￿L￿nts of the Cith Fouwwjaion Limited fc*th8 yw ended 31 Mach 2022. R•SpOn￿bIllIO•S and basls of r•port As the thanty's trustees of thg C￿￿party laThJ its for Ihe of crynpany ￿) you are r85pJn5ible fcr the preparatson of the a¢￿￿rtS in accordafi￿ vrith wuirements of the Ccrnpan*s Ad 2006 1.the 2006 Act'l. HaviThJ satisf￿￿ mysdf Ihai the actojnts of 1￿c￿npanY ar8 Mt required to be under Part 16of ￿ 2006 Act and are eI￿rbIe for independent exzrninab"on, I reput Mi ￿pea of my examination of your chanty'5 ac£ounts as OLrt under seLIM)n 145 of the Charities P£t 2011 1.the 2011 AAY'I. In carrying out my examination I have fomowed the Direc1K￿$ 9iw by the Charrty ￿￿er 145151 (blol the 2011 Ad. The fin￿￿1￿ statements have teen prepared in the a¢court1￿ polici85 set out in notes to the accounts and ccfflptywith the tharrtls governiNJ douJmenL the Chaiities AL* 2071 and Actountiny and Repornng by Chanti&. Ststem&)t of Rec£mm￿ded Prth applKat4e io charrties prwng t￿"1 *¢0￿￿ in ac¢xtythnce 7with ¢he Finanoa RetK)iting Standwd tr sM￿￿T Entrt*5 w￿ls1￿d ￿ 16 Juty 2014. Independent examlnef$ ¥tstemert I have C(￿pIde(l nry examinknn. I rzrfffinn that rn mattets h￿t ecme to my.atartKJn Sn connedion vAlh the gxwninatth me catse ￿ behwe". coJnling r￿OrdS were wt n resp￿1 ofts cry1p￿ as r￿u¥e￿ 386 d the 2006 hd.. aa￿unts ¢J) rM)t *£ord 7Mih I￿)se Ihe accounts ¢* nc4 cwipty vthh ￿ w)untsr¥J r4urern•ts of Sedw)n 396 cl Ihe 3(￿ Ad dher than any ￿ul￿rnent that Ihe arxounts give a Irue and far 15 nL* a matter conSKIe￿ as part of an l￿epen1> Total 2022 R•strict•d funds: Your¥J M&JirAar6 Equipment Museum 1.137 1,137 Unrestrfthd funds 526.447 {33.934) 499,185 527.667 {33,9341 499,185 Tan9lbl• Llabllllles due >1 yèar Total 2021 R•stricted fund5: YOUNJ Magioar6 Eq￿prnenI Museum 1.137 1.137 1.220 Unrestrl¢t¢d fu 10.055 )8.267 144.167) 474,155 10,055 9)9.487 144.16n 475.375 G•n•ral Fund: Funds a￿ hehj available for cydinary ofthe company. Young Maglcians Equlpment and Akneum: TW furbts we used to purthase ￿uIpment. 10 Llmlted by Guarant•• The company is limited by guarantee, eath member hawng guaranteed to pay a maximun of£1 should the ctynpany be wouThJ up. At prewc thwe ¥e 371 rn￿nbers. 11 Related Parti8s thjring the year Ihe company charged The Magic Cirde £35.1￿oI2021.' £25,(VJO) for the use of 12 Stephenson Way. M.KnovAes-BaLY)n, vkno is a trusteeofThe Mag'ccirde F0uThjat￿ Limited. is also a mwnber of the Council of The Magic Cirde. The Magic Circle granted The M89ic C4rde FourKlation Lld {fomerfy the Centre for the Magic Arts Limited) an 80-year lease of the premises at 12 Stephenson Way in 1998 al a rent of 20% of the cc¥npany's turn0￿ in exeess of £250.0fy) finderf. Induded ￿ other debtors at the year end is £0 (2021". £2961 due from Tr Magic Circle. Ind￿je￿ in olher Cf&Jitors ai the year PJKI is £012021.. £9451 due to The Magic Cirde. 21 THE MAGIC CIRCLE FOUNDATION LIPATED Rqport and Fina￿la1 Statements 31 March 2022 12 Subsldlary Undertaklng The company has a sub>diary: Centre for Ihe Magic Art5 Trading Limrted {"CMAT">. The Company owns 100% of Ihe ordinary share capital of CMAT, uynwgng one share with par value of £1. &nce 1 April 2013 trading activities and public events have been rnanag￿ by CMAT. Profits generated by CMAT are paid lo the cunpany by way of a charrtable donab"on. The subsKlory werated a net k>ss of È27.198 (2021.. net1055 £83.1291 in Ihe year. 22