THE MAGIC CIRCLE FOUNDATION LIMITED {fornierfy Centre For The Magic Arts Limitedl TRUSTEES. ANNUAL REPORT AND FINANCIAL STATEMENTS 31 MARCH 2023 Company No: 02155182 Registered Charity No: 297582 *ACIts¥A3* 2111212023 ce￿pANIEs HOUSE A25 #278 THE MAGIC CIRCLE FOUNDATION LIMITED Report and FIn￿CIal St*ements 31 March 2023 Ilormerty Certtfft for th* Magk Arts Llmh¥rfl Contents Chaiman's Statement.............. Cornpany Deiails....................................................................................... . Trustees Annual Report...... . .... Independent Examinerfs Report...................................................................... ............... 12 Statement of Financial Activities (incorporating income and expenditure account) .......... 13 Balance Sheet................................................................................................................. 14 Notes to the Finanaal Ststements....-...........-.................................................................. 15 THE MAGIC CIRCLE FOUNDATION LIMITED (fornierty Centre for the Alagi¢ Arts Limited) Report and Financial Statements 31 March 2023 Chairnian's Statement This financial year {2022-231 we are very ￿eaSed to have welcomed as new members of the Magic Circle Foundation Limited {the Foundalionl. 339 members of The Ma9￿ Circle ITMC}. This brings our total membership lo 342. Only three members of TMCF are not members of TMC. These are our three Independent Trustees, Marts'n Kaufman. Neil Pritchard. and me. It is the responsibilrty of members of the charity lo monilorthe progress of the charity Ihrough this annual report and a￿oUnts. to give realisli and implementable adV￿e to Ihe Ixiard and to help wherever prxtKal. Financial Results Trading conditions. in twms of overall sncome, have continued lo improve throughout 2022-23 following the impact of COVID -19 in 2020-21 and the gradual recovery in 2021-22. In 2022-23 we managed to maintain the same overall income as the previous year but without Ihe granl sUPPOrt received in that year. However. premises costs have more than (Joubled compared with 2021-22, the main ¢onlribuling factor being large increases in energy costs. This. t¢)gether 7Mlh other factors mentioned below. has led to a loss for the 2022-23 finanryal year. Our financial results are explained in more detail in the Trustees. Annual ReFrf)rt below, t￿1 highlights include (to the nearest hundred pounds).. An annual consolidated Ios5 of £800 This ￿presents a loss for TMCF of £23.400 combined with a trading profrt of £22.600. Combined reserves now stsnd at £388.050. Reserves are necessary to ensure that any emergency eonceming the viability of The Magic Circ headquarters al 12 Stephenson Way (our Headquarters) Can be ￿501¥ed promptly and that. should il ever be necessary. the Charity can be discontinued in an Order￿ way. Our wholly owned subsidiary, the Centre for Ihe Magic Arts (Trading) Lld ICMAT} is responsible for handling all the Irading aclivilies relating to shows, venue hire and bar and shop sale5. while the Foundation Ilhe parent charity) harKJles the upkeep of the Headquarters and slafflconlraclor employment (recharging a proportion of rts costs to CMAT). Al surpluses made by CMAT are transferred to the Foundation and l am pleased lo note that CMAT was able to generate a surplus in 2022-23. hawng been unable to achieve Ihts in 2021-22. HS2 We are swJnificanlly affected by the construction work relating lo HS2 a5 our Headquarters is in the heart of the conslruclion zone around Euston arKI a large part of i)ur income relie5 on use of our building for performances and corporate hires. Desptte reports that the central London element of HS2 is to be cancelled. construction work is likely lo have an impact on us for al least the next len years. In order lo protect our future business al our Headquarters. we have continued lo work effeclivety with the High Speed 2 railway company, HS2 Ltd, and their cjjrrenl contractor Mace Dragados both through the Stephenson Way Group (SWG) and. when appropriate. directly. We (individually and with SWG) have continued to be advised by our 5peciali5t adviser. Henry Clarke of Rail Estate. We are also advised by tsvo further indeper)dent consultants. Paul C W Danvers of PCC Propety Consultants Ltd and Stuart Hutchinson of Samuely Consulting Strtsclural Engineers. on matters relatir¥J to our party wall with the now demdished Wdtson House and land settlement risks in relation lo the piling activty to be undertaken for the building of the vent shaft. HS2 meet the professional cost$ of the Iwo latter advisers. HS2 also meet the costs of specialist solicitors, BDB Pitmans. whose advice we need in eonneclion wrth legal consultations relating lo HS2 and its works. In addition lo our profeSS￿nal ¢onsultsnls. we are indebted lo Centre Director, Darren Martin. Trustee, THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financial Statements 31 March 2023 (fwmerty Centre for th8 Al¥giG Arts Llfflrf•d) Garry Thomas. for their willingness to atterKI rewlar meelings and engage wth HS2 and their contractors. Managing a very Publ￿-facIng building during these drf￿1t times. induding in particular the demolition of the building adjacent to us. has been challenging, especially when ￿en￿d the satisfaction that comes from seeing TMC members meetsng with one anolher and the presence of regular visitors 2nd guests enjoying our facilities, exhibits and entertainrnenls. l extend the Trustees, heartfelt thanks lo Centre Director, Darren Martin. for his continued care of our building and ils contents and for the sterling efforts of him and the team as we continue to maintain, improve, and develop our programrne of events. Outlook lor 202>24 We anlicipale Ihe outcome for the current year 2023-24 to remain ehallenging for us with the continued combined impacts of HS2 and uncertain economic conditKJns. The energy market remains volatile but we have new contracts in [￿8¢e with suppliers arKI so our 2023-24 energy costs shjuld be less problemalic than for last year. Our overall results will depend on public appelrte for Iwe perfom)ances and corporate interest in venue hire. In this regard we will conlinue lo promote our venue for hiring and public events whilst acts.vely seeking new approaches lo ils use and promotion. Looking Forward The Board has been working to devdop a dear strategic direction for the Foundation. Led by Neil Pritchard and Martin Kaufman. the Board has revinved our mission. values and objectives. We have explored where we are as an organisalion. and how we feel the Foundation should develop. We have reached out to key Magic Cirde volunteers from the museum, library, archive, theatre team. public events team, YMC and TMC Coun¢il and Conducted a fa¢l-finding exercise. The work will soon be ready to share, and we intend this lo forrn the basis for a fund•raising strategy to help us expand and improve the impact of the Foundation. Young Magicians Club Since April 2019. the Foundation has been responsible for the Young Magicians Club IYMCI. TMC'S long-running youth Initiative. YMC is a key avenue for furtherance of the Foundation's educational objective which is a central aspect of our charitable slalus. In 2022, YMC Chair, Kevin Doig stepped down from his role. and I would like to thank him for his passion and commitment to the Club over the years. Kevin was replaced by tt¥o co£hairs. E¢thvard Hilsuffl arml Harry De Cruz. both of whom are former YMC members. I would like to congratulate them on their appoinlmenls. They have brought with them an energy and enthusiasm that is already invigorating the club. Goodbyes For the duration of this ￿pr￿tIng per￿. we have worked d05ely with TMC President. Megan Swann and TMC Vice President. Katherine Rhodes. each of whom have played important roles in supporting Ihe work of the Foundation. Katherine has contributed in several importanl and signifunt ways to the running of the F¢)undati¢)n. from photographing museum artefxts to leading on some key building issues. One of her notable contribulk)ns has been her role as producer of our flagship Christmas show. Megan, TMC'S first female president. and an ex Off￿10 Foundation Board member. has been instrumental in raising the profile of the whole organisation and acting as a role model for young aspiring magicians. As well as being an excellent President and conlribuling valuably as a Foundation Board member. she worked tirelessly lo bring the Club together in the posl-COVID era and played a pivotal role in developing the relationship betsveen TMC Council and the Foundation Board_ THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financial Statements 31 March 2023 ffornierly Centre for Ihe Magic Arts Limited) I thank Kathenne and Megan for their work and their support for the Foundation. During this period. we also said syjodbye to two trustees whose dedKalion to the Foundation has been exceptional. First. I would like to thank Dawd Cheeseman. who slwd dwi Off￿la11y as a trustee in 2021. but agreed lo slay on in a c¢>opled role lo provKJe continuity when new r￿n-magIcIan Iruslees were appointed. David had l)een on the 8owd sinee 2012 and provided essential expertise in partKular in HR related matters. We also said g￿dbye to Brian Sibley. who had been a trvslee Sir￿ 2014 ar￿ had previously served on the Board in 2011. Brian look on the role of interim trustee in 2020 and steered the organisalion through one of the most challenging penods in rts history. While the Arts"cles of Association allow a standing member of TMC lo Chair the Board in exceptional circumstances, Brian opted to sacrffjice his prized TMC membership for the sake of impartiality. Brian agreed to exlend his tenure lo enable new, non-magician trustees lo sethe into their roles. and only SI￿1 down al the 2022 AGM. I thank 8rian for his leadership and long-terrn dedution to TMCF. The current Board With Megan Swann standing down al TMC'S 2023 AGM, we warmly welcome the newly elected TMC president Marvin Berglas a5 an ex+officio member of the Foundation Board. Marvin is the founder and director of Marvin's Magic. the wodd's largest magiccompany. and his knowledge of business combined with his knowledge of the w(wld of magic wdl be a great asset to the Foundalion. The Foundation 8oard is currently made up of eight trustees.. Marvin Ber9las. Sarah Campbell. ma￿'n Kaufman, 82rry Harris ITreasurer}. Neil Pritchard. Stuart Scott (Secretary). Gary Thomas. and me, Wimal Tilakapala (Chairl. In the coming year. we will seek to apwint a ninth truslee. The Foundation is, as always, extremely gralefvl to members of TMC who give their ts.me and talent to pul on our fantastic shows, particularty the Christmas Show as wdl as the ever-popular regular "The Magic Cirde myster￿-. 'Monday Moming mag￿." "History and Mystery al The Magic Circle" and the "Close-up al The Magic Cirde" events. These shows consistenuy receive reports of high client salisfaclion. In a market place where we must compele wlh the latest blockbusler films and West End theatre on our d(Mirstep. we are proud to consistenlty f￿ld world class magical performers and lo sell out most of our public events. We rely ￿avIlY on a conlinualty sustained and renewed loyal band of volunteers who put in so much of their time lo run our public events and bring in much needed revenue. We also rely on volunteers to maintain our extensive and prize(I library and museum in our Headquarters. Once again. l offer a heartfelt "Thank You. lo you all. and lo my fellow Truslees, who are also. with me. volunteers. Your continued support and enthusiasm are essent￿1 to the success of our wonderful organisalion. Vimal Tilakapala Chair of the Board THE MAGIC CIRCLE FOUNDATION LIMITED Report and FSnancial Statements 31 March 2023 (fortrwfy C¢nty• for the Arts Llmiiedl Company Details Executive Committoe l Board of Trustees Member Appoint•d Changes Mr Marvin Berglas 0410912023 Ms Sarah Campbell Trustee 2310512018 Mr Barry Harris Treasurer & Tmstee 0211012017 Mr Martin Kaufman Independent Trustee Ms Megan Knowles-Bacon President of The MagK CKcle & Trusle 2711012021 1PJ0412021 (Acting) EX￿ff￿10 member of Board 1 ￿912021 (President) from 1810412021. first as Acting President, then as President from 1 ￿9/2021 until 0410912023 Mr Neil Pritchwd Independent Trustee 2711 or2021 Mr Brian Sibley 0611012014 ReswJned 1711112022 Mr Slu*t Scott Secretary & Tnistee 2510712018 Mr Gary Thomas Trustee 1710712017 Mr Vimal Tilakapala Chair & InLlependent Trustee 2711012021 Elected to Board at 2021 AGM Chair from 0110612022 THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financial Statements 31 March 2023 (form•rly C•ntr¢ for the Alagic Arts Llmited) Secretary and Registered Office MrSAScott 12 Stephenson Way. London. NW1 2HD Company Registration No. 02155182 Charity Registration No. 297582 Bankers Handelsbanken 86 Jermyn Street. Lon¢Jon SW1Y 6JD Independent Examiner , MrxKe Kingslon Smith LLP The Shipping Building The Old Vinyl Fad( BWI Road Hayes LO￿On U83 1 HA Solicitors Bond Dickinson LLP 4 More London fv'versKle London SE1 2AU THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financial Statements 31 MarGh 2023 (fwmerly Centre lor theAlaqicArts LllTrilEdJ Trustees, Annual Rewt The Trustees. who are also Directors and Member5 of The Magic Cirde Foundation Limited I"Ih8 companV'I for the purpose of company law. are responsible. through the Board of Trustees for overseeing the business of the charity and he￿bY present their reFM)rt and the indeperKlenlly examined finanaal statements for the year ended 31 March 2023. The financial statements cofflply with the Charities Act 2011 and the Accounting and Reporting by Ch3rilies'. Statement of Recommended Practice appliCa￿e to charilres preparing their a¢¢ounls in accordance with the Financial Reporting Standard appluble in the UK and Republic of Ireland IFRS 1021. Strudure, Govgrnanc• and Management The company 15 2 registered chafity Ino.2975821 limited by guarantee and is govemed by its Memorandum and Artdes ofAssocialion. The company was incorporated on 17 August 1987 and was established under a Memorandum of Assoeialion. which Mlentrf*s the object and powers of Ihe charitable cornpany. The cofflpany is govemed under ils Articles of Association. The Memorandum and Articles were brought up to date and approved by the members of the Centre for the Magic Arts Limited (the former name of The Magic Cirde Foundation Limited) al the AGM of 5 October 2015. In the event of the company being wwnd up. members of the company are required lo Contribute an amount not exceedirvJ £1. The Trustees of the company al the dale of the 2022-23 AGM. are: Mr ma￿1n Berglas. Ms SJ Campbell. Mr 8 Harris. Mr SA Scott. Mr G Thomas. Mr M Kauffman. Mr N Prttchard. Mr V Tilakapala We thank our very able a¢￿untant (Karen Butler) and bookkeeper (Sally Youwl for dealing with financial mallers so efficiently during this period. New Trustees a￿ appointed by the Board ofTruslees in Ihe short term and decled by the members at the fir51 available AGM according lo Article 57. Under the requiremenls of the Articles of Association the longest serving committee members al the lime of the AGM must retire and may offer themselves for re-declion. There are current￿ 410 Members of the company (including the Direclorsl each of whom pays a £1 annual subscription through their membership subscriplion lo The Magic Ci￿le ITMCI renewable in the Spring of each year and who are enlitled lo vote al the AGM. We require that each member of the company gives their consenl al each renewal of their TMC membership lo continue also lo be a membef ol the company. This is addressed with members by TMC at the ts.me of their renewal ofTMC membership. The member5 ofthe board are considered to be key management army do not receive any remuneration for their role as board memt)er. The Trustees hold regular board meetings to revthveompany perfomance and to establish and monitor aclions to fu￿11 Iheir responsibilities. Should there be a need for any urgent action then Ihe board communi¢alion system by e-mail arml Slack is considered quite Suff￿￿t. The subsidiary company. Centre for the Magic Arts Trading Ltd {CMAT Ltd) is registered al Companies House la private limited company incorporated 26 October 2011.. company number 078248031. The business of CMAT Ltd is reported and monitored through the t*Jard of trustees meeting. The Directors of CMAT Ltd are Mr Barry Harris. TreaSU￿r of TMCF, and Mr Darren Martin. the Centre Director. This combined management system Simplifies the administrative burden of the companies. The dear Separation belween the two companies can be seen al the financial accounts THE MAGIC CIRCLE FOLINDATION LIMITED Report and Flnancial Statornents 31 March 2023 (ronntrfy C¢ntr• Torth¢ M4gi¢ A￿ Limit¢#) level as reported below and in the annual repjrtfw CMAT Ltd. Unless olFthYise specified. in this annual report'lhe companK refers lo the charity TMCF Ltd and its subsidiary CMAT Ltd together. Objectives and Activities The main object of the charity, TMCF Ltd. is to promote the educa1￿)n of the publ￿ in the history and practice of the art of rnagic, by.. maintaining a library and museum of magic works arKI artefacts. promoting public lectures.. and providing or assisting in the provision of a ￿ntre for meetings. lectures. dasses and other forms of eduCat￿n for the benefit of the W￿le. Specrfically, there are morning enlertainmenls for families. lunchtime entertainments for inslilules, rotary clubs and like bodies all al a reduced rale when compared with the evening sessions.. there are also free enlertainrnenls for local schools and disadvantaged children offered to the local council.. and Ihe library is made available in the presence of a librarian free of charge to all of those conducting academic research. Speci21 charitable events are also organised as fund-raisers. and we afe very grateful lo all of those who gNe freely of I￿1r time lo organise and perforni al these events. The main objective of subsidiary. CMAT Lid. is to generate enough income through commercial activities lo be able to maintain our building and to fund charitable actNities. Achievements and Perfomiance Despite the on-going challenging trading conditions. the company generated rnore income compared with 2021-22, achieved through increased revenue from shows and venue hire. However. the cessalKin of Covid 19 related wvernment grants al the end of 2021-22 meant that the overall income for 2021- 22 and 2022-23 was very similar. This. combined with the effective doubling of premises costs in 2022- 23 has resulted in an overall loss for the financial year. The particular challenge being. of course. the large rise in energy costs. Corporate venue hire is an important element of our busirÈss strategy. althcNJgh in response to changes in the pre Covid-19 economic environment we had sought lo increase wr income from performances. The future for corkvale venue hire continues to be assessed. The company is, as aNvays. very grateful for the hard work of ils management team and thanks them very much. 11 also will continue lo rely very heavily on ils many volunteers who give freely of their lime lo help al public events. Wilhoul thi5 generous lime eornmilmenl. it would not be possible lo run these events. The Trustees are very grateful for this loyal support. which, although il cannot be quanlrfied in the aceounls, is exceptionally valuable and is much appreciated. Thank you alll The plans of the HS2 company. HS2 Ltd, lo re-construct Euston Station remain ongoing despite the Can￿latIOn of certain aspects of HS2. Plans are being shared with us through the Slephen50n Way Group of charilies ISWGI but access lo our tmjilding will continue to be reStr￿ted. although not totally dosed. The members of this group. WIK) all own premises around Stephenson Way, are The Royal College of General Practitioners. The Welcome Foundation. The Quaker House. The Wesley Hotel Ilnlernalional Methodists Cenlre). The Royal College of Ophthalmologists. and The Royal Asiatic Society. All these organisalions are charities. We are very grateful for ￿ contributions that these charrties make alOngs￿e us when working on HS2 matters. While the long-lerm impact of Covid-19. Brexit. and spiralling costs on Ihe ability of the trading Company lo generate income for the Foundation is not yel clear we will have to continue to adapt and find new ways of working. It is our intenlion lo reV￿W the longer-term suslainability of the trading company in Ihe coming months. We do expect the trading conditions lo continue to be challenging bul we have confKlence that we have sufficient ￿serveS lo sustain the FtyJndation in the short lo medium term. THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financial Statements 31 March 2023 (fvrnierty Cenfrr fvr the Magi¢ Arts Lhnli¢d) FinanGlal Review Since 2013 all trading activit￿$ and public performances have been ￿lUnted for in the books of CMAT, the wholly owned subsh￿￿*ry of TMCF. This has been done lo comply wlh the requirements of the Charity Commission. TMCF eontinues lo manage the building al 12 Step￿nsOn Way an(J to employ the stsff needed lo njn the charity and administer all the activilies of the ￿ companies. TMCF then charges an adminislralion and management fee to CMAT for its share of these c0515. Finally. CMAT remits all its profit for the year back lo TMCF by way of a charitable donation. A loss for the year of £23.394 is disappointing comp¥eii ￿th Ihe surplus xhieved on 2021-22. However. despite the On￿oing challenges during 2022-23 the trading ￿rnPany made a surplus of £22.585 compared with a loss in the previous ￿ years. It shoukl be noted that the eonsolidaled position of the iwo companres is an overall loss of £809. The Foundation was un8bfe to achieve an overall surplus as a direct result of Ihe large increases in costs. in particular energy costs. Oespile making a wofit in 2022-23 the trading company was unat4e to make a donation to TMCF as il is only able to distribute posits.ve reserve5. The trading company is required to make sufficient profit to counter the losses experience(I during the COVID pandemK before any profits can be distributed to TMCF. Prior lo the first I￿kdOWn in 2020 the trading company.had never made a loss since il started trading in 2013 The main components of the loss this year were.. £ (23,169) decrease in general income £ 1,603 increase in YMC income £ {11,216) increase in utility costs £ {20,261) increase in other operating eosts £ 5 839 devease in c051 due lo YMC ath"vikn"es 47 204 Total nel change The loss for the year combinwj with the surplus made by the trading cnmpany equates lo a loss of £809 taking the reserves of both companies together to £388,050 of which only £1,220 is reslricled. At the year*nd we haj cash at bank and in hand in bolh ￿PanIeS together of just over £419.000, an increase of £8.000 over the prevKJus ye¥ (lo the nearest thwsand pounds). Independent Examination Independent examination. an approach pemiitted by the Charity Commissh?n. is a sirnpler and less expensive form of external scrutiny than a full audrt. For fuiure year5 the Trustees wll consider which version of external scrutiny. independent exarninalK)n or audi(, they believe is in the best interests of the company. induding its subsKJiary. al the liffle. The two companies. TMCF and CMAT, are reviewed separalely. R•seThes Policy and Review The charitable company aims lo maintain reserves suffie*nl for ils effective operations and as a provision for refurbishment ￿$ts. normal maintenance and running costs. The Trustees regularly monitor and discuss the opw"rlunities available to the charitable company and the risks to which il is exkKJsed. The Trustees conS￿er and revtew the financial performance of the chantatAe company in terms of income generation from commercial actsvilies and events while controlling the costs of the mainlenance and upkeep of the building through the Centre Director and suprM)rt staff. THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financial Ststements 31 March 2023 (rornperty Centre for the Alagic Arts Liffli¢¢rfl The prospects for fulwe per￿1$ are con5idved al eath Trustees, Board Meetiro lo ensure thal the company can meet its obpth'ves and to ensure reserves are in place to enable the on-going success of the company. Plans for Future Perlods The Centre Director works with the Board of Trustee5 to find rew ways of improving and adapting the lyjsiness. The commercial activities of the subsidBry company afe seen as vital for maintaining the on-going success of the charty. Funds continue lo be required for a programme of maintenance and refurbishmenl of The Magic c￿￿e ixjilding. To this end we inlerKI lo ￿ntInue, with the help and SLtpport of members of The Magic Cirde. lo develop the events programme. We wll also continue to look al ways to maximise income from the corporate hire of the building. The current economic uncertainties will continue to keep trading conditions challenging. This will continue to be closely monrtored. Publlc Bgnefft The trustees are aware of the Chanty CommissK)n's guhlance on public benefit. Golng Concem The Board of Trustees is of the opinion that the charity has adequate reSOur￿S lo continue in operational existence for the short to medium temi. However, the ongoing uncertainty regarding the economic climate will require the Centre Director and the board to continuously ff￿nrtor and review the impact on the Foundation and the trading subsidiary. Fundraising As part of the Foundation's slralegy. the Board will be consmjering types of addith)nal fundraising that could be undertaken, and how this rn￿h1 be I￿ne arKt is aware of the code issued by the Fundraising Regulator. THE MAGIC CIRCLE FOUNDATION LIMITED Report and Finan¢lal Ststements 31 March 2023 ltherfy C¢fttr• for the Maglc Arts Llmil Risk Managem•nt The board conducts reviews ofthe maicff risks the company. which are re￿ded in a risk register. The eslablishmenl of syslems and contrds to miligale the risks Wjenlrf￿J.' and The implemenlalion of procedures designed to minimise any potential impact on the company should any of those risks malerialise. As with the managernent of financial reserves. emerging risks that the company faces are considered at committee meetings and stralegies. controls and systems developed lo help mitigate eath risk. While the current economic un¢ertsintie5 remain the Trustees are vnaNe lo predict the associated risks with a degree of eertainty. However. with the existing levels of reserves, the Trustees believe that the Foundation is well placed lo cope wsth these challetyes and an1￿1paleS emerging from the crisis in good shape. While the current economic. and geopolitical. Vr￿ertaIntseS rernain the Trustees are unable to pre¢Yicl the associated risks with a degree of certainty. However. with the existing levels of reserves. the TDJslees believe that the Foundation ￿ well placed to cope wth these challenges anticipates emerging from the crisis in good shape. Statement of Trustees Responsibilities The Trustees (Wt￿ are also members and directors of The mag￿ Cirde Foundation Limited for the purpose of company law} are reswnsible for preparing the Trustees, Annual Report and the financial statements in accordance vthh applicable law and Unrted Kingdom Accounting Standards IUnrf(ed Kingdom Generally Accepted Accounting PractKe). Company law requires the Trustees lo prepare financial statements for each financial year. which give a true and fair of the stale of affairs of the charitable company and of the incoming resources and application of resources. including income and expenditure. of the charitable company for that period. In preparing these financial statements. the TnJstees are required lo". select svilable accounting wlicies and then apply them consistenlly. observe the methods and principles in the Charilies SORP make judgements and accounting estimates that are reasonable and prudenl. state w￿ther applicable accounting standards have been followed. subject to any mater¢al departures disdosed and explained in the financial sfalements,- and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The Trustees are responsiile for keeping adequate accounting records that disclose with reasonable accuracy al any lime Ihe financial position of the company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assels of the charitable eompany and henee for taking reasonable steps for Ihe prevention and deteclion of fraud and other Irregularrties. In so far as the trustees *e aware" al there is no relevanl Informal￿)n of whth the charitable company's independent examiners are unaware., and bl the Trustees have taken all Ihe sleps that they ought to have taken lo make themselves aware of any relevant informats.on arKI to eslablish that the independent examiners are aware of that information. 10 31 M•rrh 2023 8m•ll C•n¥wby Ex•fflpUon 11 THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financial Staternents 31 March 2023 (fonnerty CentrB for the IlagK Arts Lunil¥dJ Independent Examine￿8 Report to the Trustees of The Magic Circle Foundation Limited I report to the charity Iruslees on my examination ofthe accounts ofthe Magr Cirde FoUndat￿n Limited for the year ended 31 March 2023. R•spon$ibiliti•s and basis of report As the charrty's trustees of the Company (and ils directors for Ihe purposes of company law) you are responsible for the preparalion of the accounts in accordance vAth the requirements of the Companies Act 2006 {'the 2W6 Act'}. Having satisfied myself that the accounts of the Company are not required to be audile(l under Part 16 of the 2006 Act and are eligible for independent eXaMinat￿n. I report in resped of my examination of your charity's accounls as carried out under secb.on 145 of the Charrties Act 2011 I'the 2011 Act'l. In carrying out my examination I have fdlowed the Directions given by the Chaftty Commission under section 145($1 (b) of the 2011 Act. The financial statements have been prepared in aecordanee wth the accounting policies set out in notes lo the aceounls and comply with the charity's goveming document. the Charities Act 2011 and Accounting and Reporting by Charities.. Stsiement of Recommended Practice applicable lo charities preparing their accounts in accordance wlh Ihe Fina￿la1 ReKyXing Standard for Smaller Enlilies published on 16 July 2014. Independent examinerfs statement I have completed my examination. I confirTn that rn matters have come lo my attention in connection with the examination giving me cause to believe". accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act., or 2. the accounts do not accord wlh those records., or 3. the accounts do not comply wth the accounD"ng requirements of seclion 396 of the 2006 Act other Ihan any requirement that the accounts gNe a 'true and fair v￿W which is not a matter considered as part of an independent examination". or 4. the accounts have not been ￿epared in a¢c(Kdance with the methods and principles of the Statement of Recommended Practice for accounting arKJ reporting by charities applicable lo charities prepariro Iheir accounts in a￿ance ¥￿th the Financial Reporb'ng Standard appluble in the UK and Republ￿ of Ireland IFRS 1021. I have no concems and have come across no 01￿ matters in connect￿n with the examination to which attention should be tjrawn in this reFM)rt in ty(ler lo enable a proper understanding of the accounts lo be reached. Jonathan Seymour For and behaff of Moore Kingston Smith LLP Chartered Accountants The Old Vinyl Factory. Blyth Road, London UB3 1 HA Date.. 12 THE MAGIC CIRCLE FOUNDATION LIMtTED Report and Financial Statements 31 March 2023 {fomi*rty Centrw for the Alagrc Arts Limiiedj ststement of Financial Actlvltles (incorporating income and expenditure account) for the year ended 31 March 2023 Unrestricted Restricted Funds Funds Total 2023 Total 2022 Incomo from: Donations and legacies Other trading acts"Vit￿s .Government grants Charitable aclivilies 2,200 153,430 11.638 133,741 34.054 7.562 153.430 9.799 T￿al incorne 165.429 165.429 186.995 Expendilure on: Raising funds Charitable actNities (187.293) {1.530) {187.293} 11,530} {155,8891 17,2961 Total expenditure 1188,823) {188.823} 1163.1851 Net movement in funds 123.394 (23,394) 23.810 Funds Brought Forward 497.96S 1.220 499.185 475.375 Funds Carried Forward 474,571 1,220 475,791 499.185 There are no othw recognised gains and losses other than those shown atrf>ve. Since 1 April 2013 trading activities and wjblic events have been managed by Centre for the Magic Arts Trading Ltd I"CMAfi. a wholly owned subsidiary of The Magic Circle Foundation Limited I'TMCF") Iformerly Centre for the mag￿ Arts Limiledl. Proffts generated by CMAT are paid lo TMCF by way of a charitable donaliw. 13 THE MAGIC CIRCLE FOUNDATIOM LNTrv Report ajd Flnan¢lal Stat•ments 31 March 2023 Balance Sheet as at 31 Marth 2023 22 Flx•d aslets Tanglbte fixed assets 1279 5.452 assets 386,884 132,600 418.343 127,651 Cash at bonk ard in h￿d 519,484 545.994 Cr•dltots. amounts f•lllng due wlthln one year (22.809) (18.327) Net C&wT¢n* Assets 496.675 527.667 Crndltots. amounls laifing dug after on• y•ar 123,163) 133.934) N•t Ass•ls 475,791 499.185 Represefited by: Reslricted fund$ Unrestricled fu￿15 1,220 474,571 1,220 497.965 475,791 499.185 For Ihe fiff #ncial year in question Ihe company was enlitted w eXerr￿tion under section 477 of Ihe Companies Acl 2006 rel*ing to smam CoMp￿tes. No members hav6 requ￿ed the company lo obl8in an audbt of its aee¢unts for th• year in questi￿ in a¢ttYdance ¥Mth seL1ion 476 of Ihe Companies Aci 2006. The diractors acknowledge their rosponsibilty for complying *iththe rBwYemenls oftr$8 Ac* vilh re$p8ct to 8rxounts.ng re￿rdS and forthe weparation oTac(xJunts. These accounts have been prepared in aCtxxd8n￿ Tmth thepro¥?wns applc*bla to eomFAnie5 subi•d lo Ihe sm811 c Unrestricted funds Unrestricted funds are donations and other income receive(l or generaled for the charitable purposes as the Executive Cornm￿ee thinks frt. e) Voluntary Income Voluntary income is receNed by way of granls, donations, gratuities and gtfts and is included in full in the Sialement of Financial Activities when received. Grants, where enlittemenl is not conditional on the delivery of a specrfic perforniance by the charty. are recognised when the tharity becomes unconditionally entitled lo the grant. Hiring and public events income Hiring and public events income is recognised vA)en Ihe entitled to the income and the amount can be reasonably quantrfied wtih reasonatAe accuracy. Amounts received relaling to future events are recognised as deferred income. g) Bar and retail incomo Bar and retail income is recognised on the date when the sales transaction is eornpleled. h) Government grants Government grants are recogni5ed when Ihere is evidence of entitlement to the grant. receipt is probable, and its amounl can be measured reltably. •) Investment income Investment ir￿rne is induded when recer¥able. Jl Cash and cash equivalents Cash and cash equivalents indude cash and short lemi highty liquid investments with short term maturity of three months or less frorn the date of acquisition or opening of the deposit or similar account. 15 THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financlal Siatements 31 March 2023 (romRrty C•ntr¥ for th• Arts Lirnilvdj kl Fixed ass•ts All fixed assets are held at cost less deprects*h?n. Expenditure in relation lo fixed assets is capilalised where an rtem is expected to remain in the business for 3 years or m(we and is of a value of £500 or more. Depreciation is calculated to *Tite off the cost of tangible fixed assets in instalments al the following annual rates.. Library books Fixtures, fittings and equipment Young Mag￿lan$ equipment IT equipment 25% straighl line 25% Straight line 25% straight line 33% straight lir l) Expenditure Expenditure is reeognised on an accruals basis as a liability is incurred. Expenditure includes any VAT that cannot be recovered. Costs of generating funds a￿ those costs incurred in attr&ting voluntary income, and those incurred in trading aclNlties that raise funds. Charitable activities include expenditure associated wth magic p¥formances and shows and include t)oth the diwl costs and support cosls relating to these act￿llIeS. Governance costs include those incurred in the govemance of the charity and ils assets and are primarily associated with consb"lutional and slattjlory requirements. Support costs include central function5 and have been allocated to activity cost categor￿S on a basis consistent with the use of the resource. m) Liabilitios Liabilities a￿ recognised when the charity has an oL4wJalK)n to make a payment to a third party. n} Creditors and provisions Credrtors and provisions are reccsnised where Ihe charty has a present obligation resulting from a past event that will probably result in the transfer of fun(Js to a Ihird party and Ihe amount due to settle the obligation can be measured or estimated reliabty- Creditors and provisions are normally recognised al their settlement amount after allowng for any trade discounts due. ol Estimates and judgemènts Eslimales and judgements a￿ continually evaluated arml are based on historical experience and other factors. including expeelalions of future events that are believed to be reasonable under the Circumstar￿S. Alhough these eslimales are based on the trustee's best knowledge of the amount. evenls or actions, actual results ultimately drffer from these ests"mate5. The trustees do not consider there to t)e any eslimales and judgements. 16 THE MAGIC CIRCLE FOUNDATION LIMITED (form•rly Ctntre for lh• Alogl¢ Arts Llmii¢dJ Report and Flnanclal Statemonts 31 March 2023 2 Expenditure Tradiny Cent a¢tlvit*s arKI lknagernont 1¢ •v¢nts T(*tal 2023 Total 2022 Costs alloca¢ed directly to activities: Ind8psnd8nt examinat 4.4x1 4.450 Young Magic3an's Club 1.419 1.419 7296 Support co#ts for ¥c¢ivities.- Stsff salarie$ & tax 47.797 24.622 72,419 77,521 Premises costs 58.393 32.643 91.036 57.283 Office costs 4,051 11.915 8,797 Depreciation 2.929 4.438 6,543 Bank charges & interest 1,447 3.146 2,244 Total •xp•nditur• 119.849 63,675 5299 185,590 163,185 Support Costs are allocated to each actr¥ty cost category as above according to the proportion of Ihe year for whrch the centre was used for each source of income. The lolal amount r￿harged to the trading subsidiary CMAT for administration aThJ management costs ￿lating lo CMAT trading activities was £118,430 (2022.. £98,741). Tradlng xtivityes and putyic events (recharged to CMATI Centre IAwwernent Total 2022 Costs allocated dIr￿tlY to 4ctivities'. Indwndent examinatK)n 3.500 Youry Magicians aub 7,296 7.296 Support costs for a¢tivltl•s.' Stsff salaii&s & tsx 51.165 26.3 77,521 Premises costs 36.420 57,283 orfice cost5 2.991 8.797 Oepreciation 4.318 2225 Bank & inter 1,032 606 2.244 Totsl exp¢nditure 98.741 53.042 4.106 163,185 17 THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financlal Statomants 31 March 2023 (formtrty c￿tr¥ forfh• Alaglc Arts Lknii•d) 3 Staff costs 2023 2022 S￿￿ costs: Contracted staff Wages and saLgries Social security costs 15.79J 55,000 1.669 13,8S9 59.000 4.662 72,419 77.521 2023 2022 A¥¢r4ge monthty number ole1ry1o￿, by fun¢tl¢)n: Centre Diiector No em￿oyee receNed emoluments in excess of £60.000 p.a. (2022.. r￿ne1. No directors received any rernUnerat￿n for the year12022 - £nil)- Expenses reimbursed lo directors aggregated to £nil {2022 - £nil). The members of the board are key management and do not receive any remuneralion12022= £nil} 4 Tangible Fixod Assets Librny •quipn*nt Fixtu￿. fftlin99 and •quipmgnt Computer equipment Totsl Cost- As al 1 Aprl 2022 Addtltons 6,59) 227,916 266 23.331 257,837 1.265 A¥ at 31 March 2023 6,5￿) 228,182 24.330 259.102 Deprecration= As at 1 April 2022 Charge lorthe year 223.627 3,875 22,168 252.385 4.438 As at 31 March 2023 6.59) 227.502 22.731 256.823 Net book value: As at 31 March 2023 2,279 As at 1 April 2022 4.289 1.163 5,452 18 THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financial Statements 31 March 2023 (fomierty C¢ntr• tsr the Alagic Arts Limited) 5 Debtors 2023 2022 Amounts thje from sUb￿diary company Prepayments and accrued itKome Other debto 363,994 20.613 2.277 393.236 20.659 4.448 386.884 418.343 6 Creditors, amounts falling due within one year 2023 2022 Accruals and dèfèlred inco Other C￿ltorS Covid Recovery Bounce Back Loan Scheme 3,794 8,627 10.388 3.793 4,527 10.007 22.B09 18,327 7 Creditors, amounts falling due after one year 2023 2022 Covld Recovery B0￿ce Bad( Loan Scheme 23,163 33.934 23.163 33.934 19 THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financlal Statements 31 March 2023 {fomi¢rly Cerrtre fr)r the Alawc Arts Lunltedj 8 Movement in Funds Asat1WI 2022 Total Incom• Total expendlture Asat31 March 2023 Restricted funds: Youn9 Magi¢i3ns EquikMNnt MusoLNn 1,137 1.137 1.220 1,220 un￿￿trIcted fvnds: General Funds brou9ht forward 497.￿5 165,429 1188,823) 474,571 499.185 165.429 (188.8231 475,791 As at 1 Awil 2021 Total Total eM￿nditUre Asat31 March 2022 R•strict•d fvnds: Young Magictans EquiprTEnt Museum 83 1.137 1.137 1.220 1.220 Unrestrtcted funds: General fvnd brought foMar(J 474.155 186.9)5 {163.185) 497.965 475.375 186.995 1163.18S1 499,185 20 THE MAGIC CIRCLE FOUNDATION LIMITED Réport and Financial Statements 31 March 2023 (lO￿erty Centre for the Idaglc kn Llrnit¢d) 9 Analysis of Net Assets between Fund$ Tangibl• Net ¢urronl Liabilrti•s due >1 year Total 2023 Res¢rbcted funds: Young M4ician Equipment Museum 83 1.137 1,137 1.22ri 1.220 Uftr•striet•d fund* 2.279 495.454 123,1631 474.571 2.279 496,674 123.1631 47S.791 Tanglble ffijted assets N•t Current assets Uablliit•s due>1y Total 2022 Restrict•d funds: YouryJ Magiaans Equiprnent mU￿￿m 1.137 1.137 1.220 1,220 Unrostrictsd fvnds 5.452 526,447 (33,934) 497,965 5,542 527.667 133.934} 499.185 General Fund". Funds are held available for ordinary wrposes of the company. Young Maglclans Equipment and Museum: These funds are used to purchase equipment. 10 Limited by Guarantee The company is limited by guarantee. each member having guaranteed lo pay a maximum of £1 should the company be wound up. Al presenl. there are 342 membefs, including three indeperthnt Trustees. 11 Relaled Parties During the year the company Charged The Magic Cirde £35,000 {2022." £35,000) for the use of 12 Stephenson Way. M.Kno￿e5-Bac0n. who was a trustee of The Magic Circle Foundatson 'rniled during Ihe year. is also a member of Councl of The Magtc Cirde. The Magic Circle granted The Magic Cirde Foundats"on Ltd Ifomledy the Centre for the Magic Arts Limited) an 80-year lease of the premises at 12 Stephenson Way in 1998 at a rent of 20% of the company's tumover in excess of £250.000 (indexed}. 21 THE MAGIC CIRCLE FOUNDATION LIMITED Report and Financial Statemènts 31 March 2023 flonnwly Centr8 for Ihemaqic Arts Limited) 12 Subsldiary Undertaking The ￿rnpanY has incorporated a subsidiary.. Centre for the Magic Arts Trading Limited I'CMAT"). The company owns 100% of the ordinary share caprtal of CMAT. comprising one share with par value of £1_ Since 1 April 2013 tradiNJ activit￿5 and events have been managed by CMAT. Profrt5 ger￿ated by CMAT are paKJ lo the company by way of a charttable donation when there are sufficient reserves. The subsidiary generated a net profft of £22.$85 (2022.. net loss £27.198) in the year. 22