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2023-08-31-accounts

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Company Registration Number: 00883234 (England & Wales) Registered Charity Number in England & Wales: 305992

D&AD

(A Company Limited by Guarantee)

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

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CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

Page
Report of the Trustees
-
Legal and Administrative Information		 1
-
Structure, Governance, Management		 3
-
Objectives and Activities		 6
-
Achievements and Performance		 8
-
Financial Review		 9
-
Plan for future periods		 10
Statement of Trustee’s Responsibilities 11
Report of the Independent Auditors 12
Consolidated Statement of Financial Activities 15
Balance Sheets - Group and Charity 16
Consolidated Cash Flow Statement 17
Notes to the Financial Statements 18

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D&AD REPORT OF THE TRUSTEES

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2023. The Trustees have adopted the provisions of the 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 issued in July 2014 (The FRS102 Charities SORP).

1. Legal and Administrative Information

Trustees, Members and Directors

Jack Renwick (President)

Richard Brim (Ex President)

Resigned 11 April 2024

Liza Enebeis

Ravi Amarantuga Hitchcock

Fura Johannesdottir

Hannah Kelly

Jonathan Kneebone

Russie Miessi

Kwamena Taylor-Hayford

Rebecca Wright

Chairman

Timothy Lindsay

Company Secretary

Dara Lynch

Key Management Personnel

The senior staff members to whom the day to day management of the charity is delegated are listed below:

Jo Jackson Chief Executive Officer Dara Lynch Chief Operating Officer Paul Drake Foundation Director Pippa Irvine Digital Director Donal Keenan Awards Director Laura Kelly (resigned October 2023) Marketing Director Sammi Vaughan Director of Partnerships

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D&AD REPORT OF THE TRUSTEES

Registered Office

D&AD Ltd, 64 Cheshire St, London,

E2 6EH

Auditor

Moore Kingston Smith LLP, Chartered Accountants

6th Floor 9 Appold Street London

EC2A 2AP

Solicitors

Lewis Silkin

5 Chancery Lane Clifford’s Inn

London

EC4A 1BL

Bankers

The Royal Bank of Scotland plc

London Drummonds 49 Charing Cross Admiralty Arch London SW1A 2DX

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D&AD REPORT OF THE TRUSTEES

2. Structure, Governance and Management

Background

The charity was formed as a company limited by guarantee in 1962. The company registration number is 00883234. The Charity Commission registration number is 305992.

Objects

The Charity’s objects are specifically restricted to the following:

To advance the education of the community by encouraging the understanding, application and commission of good design and advertising in communications media of all kinds by providing, presenting, organising and managing exhibitions, publications, tours of various British and foreign cities, classes, lecturers, seminars, tutorials and other educational activities.

Appointment of trustees

Any person who is willing to act as a Trustee who is permitted by law to do so, and who is eligible to become a Trustee in accordance with any rules or by-laws made in accordance with the Articles of Association adopted by special resolution in 2017, may be appointed to be a trustee by a resolution of the Trustees.

Powers

The Board of Trustees has overall responsibility for the strategic leadership, governance and appropriate management control of D&AD.

It has three primary functions:

Members of the Board of Trustees are also Directors of the charity for the purposes of company law.

Each year vacancies for new members of the Board of Trustees arise as existing members retire. These vacancies are available to creative practitioners in advertising companies, design companies, other creative companies, business, museums and galleries, and freelance respectively. The candidates who stand for the vacant positions will represent one of these industries. Successful candidates who fill the vacancies for each Industry sector are elected to serve as trustees on the charity’s Board with effect from the conclusion of the September meeting of the Trustees and hold office for three years (or four years in the case of a Trustee who has held the position of Deputy President in the third year of office). The Articles of Association also provide that the trustees may appoint a member, who has not been elected in the prescribed manner, to fill a vacancy that has arisen on the Board of Trustees. The continuation of such an appointment must be approved by the members at the September meeting of the Trustees. The charity’s President and Deputy President are appointed from the serving Trustees and take office for a period of one year from the conclusion of the September meeting of the Trustees. The office of President alternates between the six fields of creativity described above and is determined by the serving Trustees.

Trustee induction and training

New Trustees undergo an orientation session to brief them on decision making processes, the business plan and recent financial performances of the charity. During the induction session they meet key employees and other Trustees. On-going training needs are identified as appropriate and addressed through a variety of means, including Board papers, leadership days and seminars.

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D&AD REPORT OF THE TRUSTEES

Remuneration policy for Key Management Personnel

The Trustees and the senior management team comprise the key management personnel of the Charity in charge of running and operating the organisation on a day-to-day basis. Details of all Trustee expenses and related party transactions are disclosed in note 16 and note 27 to the accounts.

In order to recruit and retain the best staff to safeguard the services provided to our beneficiaries, the Trustees consider that it is important to offer a competitive salary package, as benchmarked with similar sized charitable organisations.

The salary and other rewards (annual leave and pension contribution) of the Chief Executive are benchmarked and approved by the Trustees on appointment and are reviewed annually by the Trustees in accordance with the contract of employment.

All other staff roles, including the senior management team, are evaluated against a number of criteria, including responsibilities, skills and expertise required. These determine on which band each role lies within the pay scales.

Normally, members of the senior management team are recruited to their assigned salary band. Occasionally, the Trustees will determine if the rate of pay needs to be amended to take account of significant external factors affecting recruitment to a specific role. Staff receive a range of enhanced benefits e.g. sick pay, maternity/paternity pay as well as annual leave and pension contributions.

Organisation

During the year the charity operated from its offices located within Shoreditch. Staff have continued both home based and hybrid working. The Board of Trustees develops all of the charity’s objectives. Strategies to deliver the objectives are developed by the charity’s Chief Executive and Management Team. Implementation lies with the Team Directors and their colleagues: Awards, Education and Professional Development, Partnerships and Members, Marketing, Digital and Information Systems and Finance and Operations. A non-executive Chairman also provides advice and assistance to both the Trustees and the Charity’s Management. The Board of Trustees meets 10 to 12 times a year.

Subsidiary Companies

The charity has the following wholly owned subsidiaries:

Risk management

As part of its business planning and review procedures the trustees have implemented a risk management strategy, which comprises:

Key risks identified include: loss of key staff through resignation, the charity lacks direction, strategy and forward planning, Board of Trustees dominated by one or two individuals, Trustees are benefiting from charity (e.g. remuneration), competition, event cancellation, budgetary control & financial planning, fraud and error and significant global events.

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The level of risk to the charity’s incoming resources

The trustees recognise that the charity’s income sources are heavily dependent on funding from the creative industries, the media sectors and the business community and that the levels of income from these sources are highly sensitive to global and national economic and political conditions. Consequently, the trustees are of the opinion that reserves should be generated to a sufficient level to protect the charity from adverse economic conditions and any consequential material decline in income.

Unrestricted funds are needed

Reserves policy

The trustees have considered the possible effects of adverse economic conditions on the activities of the charity and at this time are of the opinion that the charity should aim to maintain unrestricted reserves for the following purposes:

Free unrestricted reserves total £5,826,737 (2022: £5,873,833).

The reserves policy is reviewed and agreed by trustees on an ongoing basis. In recognition of global economic risk, the trustees consider a risk based reserves model to be a more appropriate method of safeguarding future financial sustainability, and a policy to this effect will be developed within the coming financial year.

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3. Objectives, activities and public benefit statement

Summary of the objectives of the charity

The main objective of the charity is to advance the education of the community by encouraging the understanding, appreciation and commission of good design and advertising in communications media of all kinds by providing, presenting, organising and managing exhibitions, publications, tours of various British and foreign cities, classes, lecturers, seminars, tutorials and other educational activities.

The charity’s mission is:

The charity’s strategic aims are to:

Objectives for the year

In 2022/23 the charity’s principal objectives for the year were:

Strategies for achieving objectives and significant activities

The charity encourages regional and international participation in its activities by communication with the creative community in those areas through its various programmes, exhibitions and publications.

The charity continuously researches, reviews and assesses its activities and ensures that it is developing and delivering relevant programmes by way of its knowledge management system and working with its participants and beneficiaries.

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Public Benefit Statement

The charity’s benefits are as in accordance with its aims:

The benefits are delivered in the following ways:

During the year the charity continued initiatives aimed to benefit graduate employment and involve the public in the creative processes and the best in creative work:

Achievements made by the provision of the benefits:

The public benefit statement has been prepared in accordance with the Charity Commission’s guidelines.

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D&AD REPORT OF THE TRUSTEES

4. Achievements and performance

Despite adverse global events and economic uncertainties, D&AD has demonstrated resilience and adaptability in continuing to successfully deliver its educational and awards programmes. We have seamlessly transitioned back to in-person events while maintaining and enhancing our digital services and applications. This dual approach has enabled us to deliver a cohesive and accessible programme of events and initiatives, effectively reaching an ever-growing and increasingly diverse global community.

Global awareness of the charity has continued to rise, significantly enhancing our impact and reach. The development of the D&AD archive, the Digital Annual, and other digital content continues to progress, positioning these resources as major sources of creative reference. This ongoing evolution ensures that our materials remain relevant and valuable to our audience, further solidifying D&AD's role as a leader in the creative education sector.

The charity’s performance against its objectives over the past year is as follows:

Objective in 2022-23 Achievements in 2022-23
To maintain reserves at levels
determined by the charity’s
reserves policy.		 The group reported reserves of £6.5m (2022: £6.0m) of which free
unrestricted reserves are £5.8m (2022: £5.9m).
To continue to develop a fully
integrated brand communications
and marketing strategy across
programmes.		 Increased international involvement especially with growing our
awards programme and also increasing our education and
learning programmes across Masterclasses and New Blood
including our New Blood Awards, festival and exhibition, New
Blood Academy and New Blood Shift, globally in London, New
York, Sydney, Berlin and San Paola.
To continue to invest in the digital
strategy to deliver an online offer to
D&AD’s stakeholders, thereby
building D&AD’s community.		 Continued investment and delivery in the charity’s digital activities
including the freely available Digital Annual (in place of a physical
Annual), and the digital delivery of selected programmes including
Education and Masterclasses amongst others.
To review and extend markets and
audience beyond UK and Europe
post Brexit.		 Continued to achieve worldwide media coverage to extend beyond
the UK and Europe, with appointed international representatives in
USA, Japan, Australia, India and Brazil.
To continually develop the
redefined professional
development strategy.		 Establishment of a clear and coherent voice across all
communication platforms and continuing to raise the company
profile, both UK and internationally.
To continue to build international
awareness in key cities.		 Senior management of the charity has and will continue to visit
appropriate locations and meet with key contacts to develop this
objective. Appointments of international reps are in place across
key locations in India, Australia, Brazil, USA, China & Japan.
To continue the development of our
diversity, equality, equity and
inclusion both within D&AD and
within the industry, communities
and society we are a part of.		 D&AD have an established diversity, equality, equity and inclusion
policy which is applied and underpins activities, processes and
culture in every aspect of the organisation.
To establish an appropriate
environmental sustainability policy
and framework.		 D&AD has appointed a head of sustainability alongside working
with external consultants to develop a sustainability plan, measure
carbon emissions and to publish this plan and the associated data.
To fully utilise D&AD head office in
Shoreditch.		 Events are now happening more regularly, building relations with
the wider creative community and saving on external costs.

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D&AD REPORT OF THE TRUSTEES

5. Financial review

A standard program of income generation resulted in incoming resources being £1.1m higher than the previous twelve-month period, which incorporated increases in Professional Development of £148,000, Professional Awards of £560,000, Partnerships of £126,000, and New Blood of £274,000 reflecting significant sponsorship for the New Blood Shift programme.

A return to physical events incurred significant venue and associated costs, which, together with higher inflationary pressures, resulted in costs increasing by £2.3m against the previous twelve months.

The effect of this was a group net funds inflow of £526,000 (2022: £1,713,000) for the twelve months ended 31[ st ] August 2023.

Principal funding sources

Entry income for the professional awards scheme was higher by £560,000 compared to the previous year, mainly as a result of an increased number of entries from the larger networks.

Funds

Group funds at 31 August 2023 amounted to £6,490,195 (2022: £5,964,376) of which £nil were restricted (2022: £nil). There was a surplus of unrestricted funds of £6,490,195 (2022: £5,964,376). The charity will continue its programme of cost control and income enhancement in order to increase the unrestricted fund balance. It is anticipated that this programme will deliver material surpluses in future years due to investment in streamlined systems and automation.

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D&AD REPORT OF THE TRUSTEES

6. Future plans and subsequent events

The charity’s key strategic policies as stated in these statements remain as relevant for 2022/23. In addition, the increase in unrestricted funds to a level both consistent with the charity’s reserve policy will continue as a major objective.

D&AD is exploring opportunities to transform the business by using digital technologies that add value to its existing customer base and create new markets to explore. A 4-year program of iterative transformation has been agreed upon to launch new innovation and redevelop existing technology and functionality to transform the business going forward .

Objective for 2023-24
and beyond		 Target
To maintain reserves at levels
determined by the charity’s
reserves policy.		 Continuance of the financial review and identification of costs
savings and new income streams enhanced by more effective
management of existing programmes.
To continue to develop a fully
integrated brand communications
and marketing strategy across
programmes.		 Continue to develop a clear and coherent voice across all
communication platforms to raise the company profile, both UK
and internationally.
To continue to invest in the digital
strategy to deliver an online offer to
D&AD stakeholders, thereby
building D&AD’s community.		 To significantly progress the significant review and redesign of
D&AD’s digital architecture across all platforms.
To review and extend markets and
audience beyond the UK and
Europe.		 To continue to reach diverse audiences who represent the breadth
of commercial creative community. Focus on segments which we
can penetrate effectively; likely to be design & production
agencies, in-house creative & design teams and consultancies.
To continue to reach larger audiences outside London and the UK.
Focus on growth cities which we can penetrate most effectively.
Potentially focussing on the USA, considering the feasibility of
establishing a physical personnel presence and resource on the
ground.
To continually develop the
redefined professional
development strategy.		 To continually review strategy to ensure it is relevant to the needs
of the present and future by developing the model into a
comprehensive, technically flavoured series of training modules
targeting both the creative and client communities with the
ultimate objective of the creation of an E-Learning series to scale
the enterprise and enhance the development of careers in creative
fields through Continuous Professional Development (CPD)
scheme.
Focussing on larger corporations and contracts with more global
reach to achieve a greater outreach.
To continue to build international
awareness in key cities.		 Senior management of the charity has and will continue to visit
appropriate locations and meet with key contacts to develop this
objective. Appointments of international reps are already in place
across key locations in Germany, India, Australia, Brazil, USA,
China & Japan.

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D&AD REPORT OF THE TRUSTEES

Objective for 2023-24
and beyond		 Target
To continue the development of
our diversity, equality, equity and
inclusion both within D&AD and
within the industry, communities
and society we are a part of.		 To continue development of the D&AD strategy through our three
established pillars:
●
Creating a culture where everyone feels welcome, belongs
and is able to be themselves.
●
Creating a more diverse industry through our programmes &
platforms.
●
Ensuring representation within D&AD to reflect the rich
diversity of the London working society, including at senior
levels.
To establish an appropriate
environmental sustainability policy
and framework		 D&AD has appointed a head of sustainability alongside working
with external consultants to develop a sustainability plan, measure
its carbon emissions and to publish this plan and the associated
data.
D&AD
is
currently
measuring
its carbon emission both
operationally and also in relation to its external events with a view
to reducing its carbon emission and an ambition of decarbonising
all its activities, within a time frame to be confirmed, but looking
towards 2030 to be a carbon free organisation and employer.
This
includes
reducing
energy
consumption
and
waste,
incorporating sustainability into its procurement practices and
processes, prioritising suppliers and service providers that share
D&AD's value toward carbon neutrality.
To fully utilise D&AD head office in
Shoreditch.		 To further utilise the space to enhance and build relations within
the wider community and serve the creative community.

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D&AD REPORT OF THE TRUSTEES

Statement of Trustees’ Responsibilities

The trustees (who are the directors of the charity for the purposes of company law), are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland.”

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

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Small Companies Exemption

This report has been prepared in accordance with the special provisions relating to small companies within part 15 of the Companies Act 2006.

The trustees of the Charity approve the Trustees’ Annual Report.

Auditors

Moore Kingston Smith LLP has indicated their willingness to continue in office for the ensuing year.

5/30/2024

Signed on behalf of the Trustees on ……………………

……………………………………………...

Dara Lynch Secretary

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF D&AD LIMITED

Opinion

We have audited the financial statements of (D&AD) (the ’parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2023 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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

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

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

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

Other information

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

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

We have nothing to report in this regard.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF D&AD 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 the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require 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 11, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s Responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF D&AD LIMITED

involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of 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 to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF D&AD LIMITED

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 and, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which 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 any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed.

Date: 5/30/2024 Andrew Stickland (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 9 Appold Street London EC2A 2AP

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

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D&AD

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating an income and expenditure account) FOR THE YEAR ENDED 31 AUGUST 2023

Note
Income from
Trading income from subsidiary
4
Charitable activities:
5
Awards
Partnerships
Professional Development
New Blood
Total charitable activities
Investment income and interest
6
Other income
6
Total income
Expenditure on
Raising funds
7
Trading subsidiary costs
8
Charitable activities:
9
Awards
Partnerships
Professional Development
New Blood
Total charitable activities
Toal expenditure
Net income / (expenditure)
Transfer between funds
23
Total funds brought forward
22, 23
Total funds carried forward		 Unrestricted
Total
Total
2023
2023
2022
£
£
£
591,827
591,827
440,720
5,495,781
5,495,781
4,935,555
180,333
180,333
54,675
382,870
382,870
386,051
1,584,721
1,584,721
1,311,023
7,643,705
7,643,705
6,687,304
46,101
46,101
3,008
3,468
3,468
21,526
8,285,101
8,285,101
7,152,558
2,169,285
2,169,285
1,871,767
237,432
237,432
151,074
2,406,717
2,406,717
2,022,841
3,159,223
3,159,223
1,859,614
463,887
463,887
428,139
534,364
534,364
367,764
1,195,091
1,195,091
761,240
5,352,565
5,352,565
3,416,757
7,759,282
7,759,282
5,439,598
525,819
525,819
1,712,960
-
-
-
5,964,376
5,964,376
4,251,416
6,490,195
6,490,195
5,964,376

The Charity has no recognised gains or losses for the year other than as detailed above.

The net movements in the Charity's funds for the year arise from the Charity's continuing activities.

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D&AD BALANCE SHEETS - GROUP AND CHARITY AS AT 31 AUGUST 2023

Note
Fixed assets
Intangible assets
17
Tangible assets
18
Investments
19
Current assets
Debtors
20
Cash at bank and in hand
Current liabilities
Creditors falling due within one year
21
Net current assets
Total assets less current liabilities
Net assets
Accumulated funds
Unrestricted funds
22, 23
Total accumulated funds		 Group
Group
Charity
Charity
2023
2022
2023
2022
£
£
£
£
604,730
12,576
604,730
12,576
58,728
77,967
58,728
77,967
-
-
1,000
1,000
663,458
90,543
664,458
91,543
807,040
1,007,801
807,040
1,007,801
6,747,278
6,670,454
6,736,552
6,659,693
7,554,318
7,678,255
7,543,592
7,667,494
(1,727,581)
(1,804,422)
(2,074,715)
(2,086,771)
5,826,737
5,873,833
5,468,877
5,580,723
6,490,195
5,964,376
6,133,335
5,672,266
6,490,195
5,964,376
6,133,335
5,672,266
6,490,195
5,964,376
6,133,335
5,672,266
6,490,195
5,964,376
6,133,335
5,672,266

As permitted by s408 Companies Act 2006, the company has not presented its own statement of financial activities and

5/30/2024

The financial statements were approved by the trustees on ........................................... and signed on their behalf by:

.................................................................. Trustee Company registration number 00883234

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD CONSOLIDATED STATEMENT OF CASH FLOWS AS AT 31 AUGUST 2023

Cash inflow from operating activities
Net cash provided by operating activities
Cash flow from investing activities
Investment income and interest received
Payments to acquire tangible and intangible fixed assets
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at close of year		 2023
2022
£
£
753,773
1,967,519
46,101
3,008
(723,050)
(34,035)
(676,949)
(31,027)
76,824
1,936,492
6,670,454
4,733,962
6,747,278
6,670,454
Net income / (deficit) for the reporting period
Adjustments for:
Depreciation charges
Investment income
(Increase) / decrease in debtors
Increase in creditors
Net cash provided by operating activities
Analysis of cash and cash equivalents
Cash at bank and in hand
Reconciliation of net income / (expenditure) to cash flow from operating activities		 2023
2022
£
£
525,819
1,712,960
150,135
183,135
(46,101)
(3,008)
200,761
(271,938)
(76,841)
346,370
753,773
1,967,519
6,747,278
6,670,454

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

1. ACCOUNTING POLICIES

a) Basis of preparation

The financial statements comprise the charity and its wholly-owned subsidiary D&AD Trading Limited on a line-by-line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

These financial statements are prepared under the historical cost convention.

The financial statements are prepared in sterling which is the functional currency of the charitable group. Monetary amounts within these financial statements are rounded to the nearest pound.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company and its subsidiaries are a public benefit group for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.

b) Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable group to continue as a going concern. The trustees have considered forecasts for a period of at least one year from the date of approval of the financial statements taking these steps in to account. On the basis of these projections and the reserves available to the charity, the trustees have concluded that there is a reasonable expectation that the charitable group has adequate resources to continue in operational existence for the foreseeable future. The charitable group therefore continues to adopt the going concern basis in preparing its financial statements.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

c) Incoming resources

All income is recognised in the statement of financial activities when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. Where a claim for repayment of income tax has or will be made, such income is grossed up for the tax recoverable.

d) Allocation of costs

The charity's operating costs include staff costs, rent and other related costs. Such costs are allocated between the charity's educational programmes, activities for raising funds, and management and administration. Staff costs are allocated according to the costs of staff working directly in the relevant teams or on the appropriate projects. Where costs are not directly attributable to any project or team, they have been apportioned according to the total of all other costs relating to each team or project.

e) Costs of raising funds

The costs of raising funds represent expenditure in relation to staff members and consultants who are directly engaged in fundraising and publicity, and the related costs of the fundraising and publicity department.

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

f) Charitable expenditure

Charitable expenditure includes all expenditure directly related to the objects of the charity and comprises:

Costs of activities in furtherance of the charity's objects - comprising the costs of the educational and professional awards programmes undertaken by the charity and is accounted for when payable.

Support costs - representing the staffing and associated costs of supporting, mentoring and evaluation the operational programmes for which the charity is responsible.

Governance costs - which are part of support costs representing expenditure on governance infrastructure that allows the charity to operate and to generate the information required for public accountability. They include the strategic planning processes that contribute to future development of the charity.

g) Fund accounting

The charity maintains various types of funds as follows:

Restricted funds - representing grants, donations and sponsorship received which are stipulated to be applied for specific projects by either the nature of the fundraising appeal or the grant/sponsorship agreement.

Unrestricted funds - representing funds that are expendable at the discretion of the trustees in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment.

h) Pension costs

The charity operates a defined contribution scheme that is open to all employees. The charity's contributions to the scheme are charged to the statement of financial activities in the year to which they relate.

i) Intangible fixed assets

Intangible fixed assets are stated at cost less amortisation. Amortisation on intangible fixed assets is provided at rates to write off the cost or valuation, less estimated residual value, of each asset on a straight line basis over its expected useful life as follows:

Software and website - over 5 years straight line

j) Tangible fixed assets

Tangible fixed assets of a value of £1,000 and over are capitalised, and are stated at cost less accumulated depreciation. Depreciation on tangible fixed assets is provided at rates to write off the cost or valuation, less estimated residual value, of each asset on a straight line basis over its expected useful life as follows:

- Leasehold improvements over 5 years straight line - Computer equipment over 3 years straight line - Office equipment over 4 years straight line

At the end of each reporting period, the residual values and useful lives of assets are reviewed and adjusted if necessary. In addition, if events or change in circumstances indicate that the carrying value may not be recoverable then the carrying values of tangible and intangible fixed assets are reviewed for impairment.

k) Financial instruments

1. Cash and cash equivalents

Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.

2. Financial assets and liabilities

Basic Financial Instruments, as defined by FRS102, are recognised initially at their transaction price and subsequently at settlement value. Financial assets and liabilities that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

l) Leases

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the Statement of Financial Activities over the relevant period. The capital element of the future payments is treated as a liability.

Rentals of assets held under operating leases are charged to the statement of financial activities in equal amounts over the lease term.

m) Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

n) Foreign Exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the statement of financial activities for the period.

o) Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements.

Tangible and intangible assets

The annual depreciation and amortisation charge for fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 17 and 18 for the carrying amount of the property, plant and equipment and intangible assets.

2. LEGAL STATUS OF THE CHARITY

The Charity is a company limited by guarantee and has no share capital. The members of the charity are the trustees listed on page 1. In accordance with the Memorandum of Association, every Member is liable to contribute a sum of £25 in the event of the charity being wound up.

3. FINANCIAL ACTIVITIES OF THE CHARITY

The financial activities shown in the consolidated statement includes those of D&AD and its wholly owned trading subsidiary D&AD Trading Limited. The subsidiary donates all of its profits to the charity under Gift Aid. A summary of the trading results of the subsidiary is shown at Note 19.

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD
NOTES TO THE FINANCIAL STATEMENTS
AS AT 31 AUGUST 2023
4. TRADING SUBSIDIARY INCOME
Income generated in D&AD Trading Limited
5. INCOME FROM CHARITABLE ACTIVITIES
Awards
Partnerships
Professional Development
New Blood
Total income from charitable activities
6. INVESTMENT INCOME, INTEREST AND OTHER INCOME
Bank deposit interest
Rental income from subleased premises
Other income
7. COST OF RAISING FUNDS
Fund raising costs
8. TRADING SUBSIDIARY COSTS
Costs incurred by D&AD Trading Limited
9. COSTS OF ACTIVITIES IN FURTHERANCE OF THE CHARITY'S OBJECTIVES
Awards
Partnerships
Professional Development
New Blood
Total expenditure on charitable activities		 Unrestricted
Unrestricted
2023
2022
£
£
591,827
440,720
591,827
440,720
5,495,781
4,935,555
180,333
54,675
382,870
386,051
1,584,721
1,311,023
7,643,705
6,687,304
46,101
3,008
-
16,839
3,468
4,687
49,569
24,534
2,169,285
1,871,767
2,169,285
1,871,767
237,432
151,074
237,432
151,074
3,159,223
1,859,614
463,887
428,139
534,364
367,764
1,195,091
761,240
5,352,565
3,416,757

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD

NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

10. ANALYSIS OF TOTAL RESOURCES EXPENDED

Direct staff Other direct Support & Total
costs costs Governance
costs
£ £ £ £
Year to 31 August 2023
Costs of activities in furtherance of the charity's objectives
Awards 895,451 1,570,256 693,516 3,159,223
Partnerships 297,143 73,428 93,316 463,887
Professional Development 187,774 260,479 86,111 534,364
New Blood 395,414 565,029 234,648 1,195,091
1,775,782 2,469,192 1,107,591 5,352,565
Other expenditure
Cost of raising funds 895,534 932,482 341,269 2,169,285
Trading costs - 237,432 - 237,432
895,534 1,169,914 341,269 2,406,717
Total 2,671,316 3,639,106 1,448,860 7,759,282
Year to 31 August 2022
Costs of activities in furtherance of the charity's objectives
Awards 722,851 562,233 574,530 1,859,614
Partnerships 267,599 43,994 116,546 428,139
Professional Development 126,669 171,172 69,923 367,764
New Blood 243,812 354,885 162,543 761,240
1,360,931 1,132,284 923,542 3,416,757
Other expenditure
Cost of raising funds 687,103 802,760 381,904 1,871,767
Trading costs - 151,074 - 151,074
687,103 953,834 381,904 2,022,841
Total 2,048,034 2,086,118 1,305,446 5,439,598

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

11. SUPPORT AND GOVERNANCE COSTS
Staff and related costs
Depreciation
Total support costs
Governance
Salaries
Audit fees
Other legal and professional fees
Total governance costs
Total
12. NET OUTGOING RESOURCES
Support
Other support costs		 Unrestricted
Unrestricted
2023
2022
£
£
199,568
208,100
56,075
183,134
693,815
591,899
949,458
983,133
439,348
234,576
24,500
26,313
35,554
61,424
499,402
322,313
1,448,860
1,305,446

Net outgoing resources for the year are stated after charging:

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Auditors remuneration 27,500 28,831 24,500 26,313
Depreciation / amortisation:
Owned assets (tangible and intangible) 150,135 183,135 150,135 183,135
Rentals under operating leases: land and 145,531 221,344 145,531 221,344
buildings

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

13. ANALYSIS OF STAFF COSTS

Staff costs comprise:
Wages and salaries
Social security costs
Pension costs
Recruitment and training
Total staff costs
Redundancy and termination payments		 2023
2022
£
£
2,745,347
2,027,129
297,912
231,492
245,587
198,280
42,011
19,637
21,389
33,810
3,352,246
2,510,348

The number of employees whose emoluments (salaries and benefits in kind) excluding pensions fell within the following

£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£100,001 - £110,000
£110,001 - £120,000
£130,001 - £140,000
£140,001 - £150,000		 -
1
3
2
1
2
2
-
1
-
-
1
-
-
1
1
8
7

Where no employee falls into a salary banding above, this banding has been excluded.

The number of employees earning more than £60,000 for whom pension contributions have been paid in the year is 11 (2022: 6). The total pension contributions paid by the charity during the year for employees earning more than £60,000 was £118,086 (2022: £62,398)

14. STAFF NUMBERS

The average number of employees including temporary and short-term contract staff analysed by function was:

Charitable activities
Income generation
Administration and support		 2022
2022
number
number
36
30
14
13
6
5
56
48

15. TRUSTEES AND KEY MANAGEMENT PERSONNEL

During the year £nil was paid to trustees in respect of expenses incurred on behalf of the charity (2022: £nil)

The charity purchased trustee indemnity insurance costing £2,223 (2022: £776) to protect the charity from loss arising from neglect or default of its trustees and employees.

Key management personnel include the Trustees, Chief Executive, and senior staff reporting directly to the Chief Executive. The total employee benefits of the charity's key management personnel were £1,065,605 (2022: £719,026)

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

16. TAXATION

The company is a registered charity and no provision is considered necessary for taxation as the charity is exempt from tax on its charitable income and to the extent that it is applied to charitable purposes.

17. INTANGIBLE FIXED ASSETS - GROUP AND CHARITY

Cost or valuation
As at 1 September 2022
Additions
Disposals
As at 31 August 2023
Amortisation
As at 1 September 2022
Charge for the year
Eliminated on disposal
As at 31 August 2023
Net book value
As at 31 August 2023
As at 31 August 2022		 Website and
software
£
373,003
673,823
(373,003)
673,823
360,427
81,669
(373,003)
69,093
604,730
12,576

18. TANGIBLE FIXED ASSETS - GROUP AND CHARITY

Cost or valuation
As at 1 September 2022
Additions
Disposals
As at 31 August 2023
Depreciation
As at 1 September 2022
Charge for the year
Eliminated on disposal
As at 31 August 2023
Net book value
As at 31 August 2023
As at 31 August 2022		 Leasehold
Office
improvements
equipment
Total
£
£
£
1,122,715
522,762
1,645,477
-
49,227
49,227
-
(174,286)
(174,286)
1,122,715
397,703
1,520,418
1,081,138
486,372
1,567,510
41,577
26,889
68,466
-
(174,286)
(174,286)
1,122,715
338,975
1,461,690
-
58,728
58,728
41,577
36,390
77,967

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

19. INVESTMENTS IN SUBSIDIARIES

The charity has an investment in the following subsidiary undertakings:

Registered office Status % Ownership
D&AD Trading Limited 64 Cheshire Street, London E2 6EH Trading 100%
D&AD Limited Suite 1201, Tower 2, The Gateway, Non-trading 100%
D&AD USA Inc. Frankfurt Kurnit Klein and Selz, P.C. Non-trading 100%
2023 2022
£ £
Cost at the beginning and end of the year 1,000 1,000

D&AD Limited Hong Kong and D&AD USA Inc. have been excluded from consolidation for the reason they are dormant nontrading organisations and have no material effect on the surplus or net assets of the group.

The financial activities shown in the consolidated statement includes those of D&AD and its wholly owned trading subsidiary D&AD Trading Limited. The subsidiary donates all of its profits to the charity under Gift Aid. A summary of the trading results is shown below.

Profit & Loss Account
Turnover
Cost of sales
Gross profit
Administration expenses
Profit on ordinary activities
Balance sheet
Current assets
Creditors: amounts falling due within one year
Total net assets
Called up share capital
Retained profit
Shareholders' funds		 2023
2022
£
£
591,827
440,720
(230,258)
(147,988)
361,569
292,732
(8,674)
(4,586)
352,895
288,146
460,260
442,270
(102,400)
(149,160)
357,860
293,110
1,000
1,000
356,860
292,110
357,860
293,110

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD

NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

20. DEBTORS
Trade debtors
Other debtors
Prepayments and accrued income
21. CREDITORS
Trade creditors
Other creditors
Taxation and social security
Accrued expenses
Deferred income
Owed to subsidiary undertakings		 Group
Group
Charity
Charity
2023
2022
2023
2022
£
£
£
£
541,211
607,756
541,211
607,756
88,865
123,469
88,865
123,469
176,964
276,576
176,964
276,576
807,040
1,007,801
807,040
1,007,801
371,689
337,104
371,689
337,104
41,288
59,452
41,288
59,452
94,524
78,742
94,524
78,742
502,163
391,625
499,163
388,895
717,917
937,499
618,517
791,069
-
-
449,534
431,509
1,727,581
1,804,422
2,074,715
2,086,771

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

22. ANALYSIS OF CHARITABLE FUNDS

Analysis of unrestricted fund movements

General fund
General fund		 Balance
Income
Expenditure
Transfer to
Balance
01-Sep
gains and
restricted
31-Aug
2022
losses
funds
2023
£
£
£
£
£
5,964,376
8,285,101
(7,759,282)
-
6,490,195
Balance
Income
Expenditure
Transfer to
Balance
01-Sep
gains and
restricted
31-Aug
2021
losses
funds
2022
£
£
£
£
£
4,116,147
7,152,558
(5,304,329)
-
5,964,376

Unrestricted funds realised by the subsidiary company and included in the above amounts: £nil (2022: £nil)

Analysis of restricted fund movements

EU Bridging the Creativity Gap
EU Bridging the Creativity Gap		 Balance
Income
Expenditure
Transfer
Balance
01-Sep
general
31-Aug
2022
funds
2023
£
£
£
£
£
-
-
-
-
-
-
-
-
-
-
Balance
Income
Expenditure
Transfer
Balance
01-Sep
general
31-Aug
2021
funds
2022
£
£
£
£
£
135,269
-
(135,269)
-
-
135,269
-
(135,269)
-
-

Income for restricted funds originates from sponsorship grants or donations to a particular project or event and are expensed as required, with unspent funds carried forward to be used against future expenditure.

Restricted funds represent:

EU Bridging the Creativity Gap

Funding to address the gap between the changing needs of the creative sector against the availability of a highly skilled workforce at EU level.

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

23. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

As at 31 August 2023
Fixed assets
Intangible assets
Tangible assets for use by the charity
Investment in subsidiary
Current assets
Debtors
Cash at bank and in hand
Current liabilities
Long term liabilities
As at 31 August 2022
Fixed assets
Intangible assets
Tangible assets for use by the charity
Investment in subsidiary
Current assets
Debtors
Cash at bank and in hand
Current liabilities
Long term liabilities		 Unrestricted
Total
£
£
604,730
604,730
58,728
58,728
-
-
-
807,040
807,040
6,747,278
6,747,278
(1,727,581)
(1,727,581)
-
-
6,490,195
6,490,195
12,576
12,576
77,967
77,967
-
-
-
1,007,801
1,007,801
6,670,454
6,670,454
(1,804,422)
(1,804,422)
-
-
5,964,376
5,964,376

24. OPERATING LEASE COMMITMENTS

As at the reporting date, the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall dues as follows:

Within one year
Between two and five years		 Charity and
Charity and
Group
Group
2023
2022
£
£
213,955
125,000
798,677
1,375,000
1,012,632
1,500,000

DocuSign Envelope ID: 4EC695B2-0921-4345-B076-6DC617CF82CA

D&AD NOTES TO THE FINANCIAL STATEMENTS AS AT 31 AUGUST 2023

25. PENSIONS AND OTHER POST-RETIREMENT BENEFIT COMMITMENTS

The Charitable Group operates a defined contribution scheme which is administered independently of the Group. The cost to the Group for the year was £245,587 (2022: £198,280). At the Balance Sheet date , the amount due to the pension scheme administrators was £20,376 (2022: £16,030). The expected cost to the charity in the coming year, if all staff take up their pension option, is approximately £229,000 (2022: £216,000).

26. RELATED PARTY TRANSACTIONS

During the year the following related party transactions were carried out:

Sales of £4,423 (2022: £3,370) were made to Pentagram Design Limited where Naresh Ramchandani is a director. Naresh is also a director of D&AD.

Sales of £238,932 (2022: £152,574) and purchases of £617,827 (2022: £440,720) were made to D&AD Trading Limited, a wholly owned subsidiary of D&AD. At the balance sheet date there was an amount owed to the subsidiary of £449,534 (2022: £431,509).

No amounts are outstanding in respect of these transactions and no amounts have been written off or provided for in relation to these balances during the year.

27. ULTIMATE CONTROLLING PARTY

The charitable company is under the control of its members. No one member has sufficient voting rights to control the charitable company.