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2022-03-31-accounts

Company Registration No. 02328810 Charity Registration No. 801637

JUNCTION CDC LIMITED

(t/a Cambridge Junction)

Trustees’ Report and Financial Statements

Year ended 31 March 2022

JUNCTION CDC LIMITED (t/a Cambridge Junction)

ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

CONTENTS
Page
Reference and administration details 1
Trustees’ Report 2
Auditor’s Report 11
Consolidated statement of financial activities 14
Consolidated balance sheet 15
Charity balance sheet 16
Statement of cash flows 17
Notes to the financial statements 18

JUNCTION CDC LIMITED (t/a Cambridge Junction)

ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

REFERENCE AND ADMINISTRATION DETAILS

TRUSTEES

Richard Arnold Dr Othman Cole Nicola Buckley, Chair Dr Lucy Mills (appointed 18 July 2022) Jonathan Payne, Treasurer (resigned 26 Sep 2022) Mark Reddy, Treasurer (appointed 18 July 2022) Dr Merav Rosenfeld Godric Smith (resigned 26 Sep 2022) Julius Stobbs (resigned 26 Sep 2022) Gabrielle Sumner Zoe Svendsen

COMPANY REGISTERED NUMBER

02328810

CHARITY REGISTERED NUMBER

801637

REGISTERED OFFICE

Clifton Way Cambridge CB1 7GX

BANKERS

HSBC Bank plc Vitrium St John’s Innovation Park Cambridge CB4 0DS

AUDITOR

Price Bailey Chartered Accountants Tennyson House Cambridge Business Park Cambridge CB4 0WZ

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TRUSTEES’ REPORT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

OUR PURPOSE AND ACTIVITIES

Cambridge Junction is the trading name of Junction CDC Ltd.

Our purpose is to share the power of live performance and creativity.

To do this we provide & encourage:

Our vision is to:

We do this by:

Our cornerstones are:

The goals of Cambridge Junction are to:

At Cambridge Junction we are:

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ACHIEVEMENTS AND PERFORMANCE

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning their future activities. This section of the Trustees’ Report identifies and explains the various activities undertaken.

For these financial statements, the activities of Cambridge Junction may be classified as:

Throughout 2021/22, the business and activities of Cambridge Junction continued to be impacted on significantly by the COVID-19 pandemic and necessary restrictions on activities. For at least a third of the year, public performances at full capacity were not possible, cancellations and rescheduling of performances and tours continued due to a combination of artist illness, travel restrictions, and lack of audience confidence in returning to live performances (leading to low sales nationally and the cancellation of tours), and new COVID variants (notably Omicron in November 2021 – January 2022) led to further cancellations and disruption.

In the context of these ongoing and significant challenges, the achievements this year, in producing and presenting a high-quality, engaging and entertaining programme, delivering a series of projects for communities and young people with complex needs, attracting audiences of nearly 70,000, and delivering a surplus on unrestricted funds at year-end are testament to a resilient and dynamic business model, excellent financial management, the strength and professionalism of our teams, the loyalty of our audiences and the ongoing support of our stakeholders.

Cambridge Junction has maintained strong relationships with its key funders and stakeholders, Arts Council England and Cambridge City Council.

We were successful in two large applications to Arts Council England. Firstly, for an extension to our National Portfolio Organisation funding for £649,146 to cover the year 2022/23 (2021/22 £649,146), and to their Capital Investment Fund (£461,678) to support new AV equipment (specifically a complete overhaul of sound systems in J1 and J2), and improvements to the accessibility of the building for community use.

We continue to be grateful for the vital support offered by Arts Council England, HM Revenue and Customs, and the Culture Recovery Fund, which allowed Cambridge Junction to continue operating and replace income lost due to our closure to the public (between April-July 2021) and cancellations due to ongoing impacts including through Omicron in December 2021 – January 2022). Covering periods in 2021/22, we received funding in rounds two and three of the Culture Recovery Fund, with awards of £248,083 and £115,631 respectively.

In addition to funding from statutory organisations, we continue to grow income from private sources, from Trusts & Foundations, individuals and companies. In 2021/22, we secured the largest gift from a Trust in our history, with an award of £176,000 from the Paul Hamlyn Foundation to support a three-year Creative Learning project – Take Two – through which we will work with four education settings and deliver a programme of creative workshops, skills & employability work and engagement with young people with complex needs. We also secured funding from the following Trusts & Foundations, other statutory/project and international funds; Red Hill Trust, Cambridgeshire Community Foundation - Warwick & Dominey Fund, Cambridgeshire Community Foundation - Arm Community Fund, Children in Need, Norfolk and Norwich Festival Bridge, Cambridgeshire Music, and the Canadian High Commission.

We have grown our individual giving with 490 members, supporters and patrons as of 31 March 2022. This is a strong position for a scheme that has only been in operation for five years, and we are in the process of further developing this work to ensure ongoing engagement with members through a year-round programme of events (including

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ACHIEVEMENTS AND PERFORMANCE (CONTINUED)

cultivation opportunities, season launches and press nights) and will in future years launch corporate, community and youth membership schemes to continue to build on the loyalty and ownership of audiences, participants and supporters.

Programming

Our presentation programmes returned to full strength from the end of July 2021. The rescheduling and postponement of tours from the previous two years required Cambridge Junction’s teams to operate at full capacity, with a large volume of activity particularly February – March 2022. This programme was particularly strong with nationally and internationally acclaimed bands and companies, artists, performers, and musicians bringing highquality, engaging and entertaining new work to Cambridge and for audiences from the city, county and region.

In 2021/22 we presented 443 performances (2019/20: 681), with 79 of these for children, young people, and families. 69,206 people attended events (2019/20: 93,878), with 4,443 people attending family shows (2019/20: 9,568). 2019/20 figures used for comparison as due to the pandemic, we presented only 5 physical/live performances with a total in-person audience of 233 in 2020/21.

Highlights of the Popular Culture programme included standout comedy performances from Sarah Millican, Sofie Hagen, Rich Hall, Ahir Shah, and Bill Bailey. Our diverse music programme continues from strength to strength with many big events selling out in record time. Highlights included Tom Jones, Beabadoobee, Declan McKenna, The Vaccines, John Grant, DJ Marky, Grace Petrie, Cavetown, Nick Cope, Black Midi, shame, Trials of Cato, Carl Barat, Andy C, and Warmduscher.

We continue to commission, produce and deliver a distinctive, contemporary Arts programme, which foregrounds artists who experience racism, and LGBTQIA+ and Disabled artists. To ensure access to this disruptive and lingering work, created by local, national and international artists, we offer tickets on a Pay What You Feel model with tickets from £2.50. It is worthy of note that in 2021/22, the average price paid per ticket was £6.51, an increase of 20% on 2018/2019 when tickets were offered at fixed prices.

Arts programme highlights included Ontroerend Goed and Rhiannon Faith – as online/digital presentations during lockdown – Anna Brownsted, METIS, Figs in Wigs, New Art Club, Emma Frankland, Sh!t Theatre, Symone, Complicite & Fehinti Balogun, Emma Spearing, Charmaine Childs, Urban Foxes, Bertrand Lasca & Nasi Voutsas, Dan Daw, Luca Rutherford, Club Urania (collaboration with Wysing Arts Centre and local independent producers and curators), and Pagrav Dance.

Our Christmas show is a highlight of our year and often a young audience member’s first experience of theatre. We co-produced our Christmas show again with New International Encounter this year, completing The Snow Queen and the work begun as a digital project in 2020. The show was delivered in the most challenging of circumstances, with one review describing it as ‘ the cleverest children’s play I’ve seen in decades’ . Sales were down on target due to the pandemic. However, against the odds we successfully presented the majority of the run with only the last five shows being cancelled due to cast illness. With many shows being cancelled before Christmas this was fantastic luck and testament to safe working and commitment from both NIE and our team.

We also filmed and produced a live digital recording of the show which was viewed by many people who couldn’t make it to the theatre, including NHS staff and patients, school groups who watched from their classrooms and nursing home residents, for which we received positive feedback.

Creative Learning

We continue to work to become a centre of excellence for our work with young people with complex needs. In 2021/22, our Creative Learning programme and projects engaged 4,329 children and young people, many of whom have complex needs.

Our Creative Learning programme is comprised of Open Access, Targeted and Skills & Employability projects. Open Access projects include Junction Young Company, Total Arts and Total Arts Mini-Bytes, and our new Contemporary Youth Choir. Targeted projects focus on work with young people with complex needs, and marginalised young people, and include Paul Hamlyn Foundation funded multi-year projects Act One (which was completed in 2021/22) and Take Two (for which we made a successful application to PHF in 2021 that will run until 2024). Skills & Employability

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projects include our Apprenticeships, Industry Days and intensive workshops such as Big Bang Theory (developing sound engineering skills for 14+ year olds).

In 2021, our youth theatre, Junction Young Company (JYC) created the Impossible Show working with Breach Theatre, under lockdown restrictions and filmed in an evocatively empty building https://www.junction.co.uk/impossibleshow. Breach Theatre continued to work with JYC through 2021/22 to create a new show that premiered in April 2022.

Total Arts met online throughout lockdowns and we welcomed this longstanding group of Disabled young creatives back to the building in September 2021. Our provision of workshops and activities online was invaluable to participants, many noting the importance to their mental health, confidence and well-being. In autumn 2021, we launched a new project - Total Arts Mini-bytes – for children aged 9+, with this project being fundraised for by Total Arts participants themselves led by long-term member Irving McCormack.

Contemporary Youth Choir, led by local musician Yvonne Hercules, was established at the beginning of 2022 with funding from Children in Need and Cambridgeshire Community Foundation. This project is inclusive of disabled and non-disabled young people, free to participants and open to people with no previous singing experience. The project has been one of our most popular with parents/guardians/carers and young people and is already noted for its positive impact on the confidence and well-being of participants.

My Illness – a film supported as part of Paul Hamlyn Foundation funded project Act One, was released to mark Mental Health Awareness week and to support a call for more resources for young people and mental health. This was made just prior to lockdown in 2020 but only released in 2021 and was made by theatremaker Gavin Dent and filmmaker Pete Harmer, and young people at the Darwin Centre / Pilgrim PRU. https://vimeo.com/542106463

Also as part of Act One in 2021/22 we worked with Red Balloon, with the project led by spoken word artist Desree, and with Olive AP Academy, led by HighRise Theatre. Through these projects we developed our creative relationship with young people, building skills and confidence, and improving mental health and well-being, created high-quality, professionally produced films, and grew our partnerships with Red Balloon and Olive AP towards our bigger, more ambitious multi-year project Take Two, for which we were awarded funding by PHF in November 2021.

With support from Festival Bridge’s Digital R&D fund, our Creative developed our first virtual industry days, building on the success of our in-person Industry Days and delivering vital creative industries skills & employability work for schools. These were successful in finding innovative solutions to a range of technical issues and in ensuring access for young people for whom in-person activities were at that stage restricted. A digital/remote delivery approach allowed us to share the breadth of opportunities for young people to access and follow careers in the arts and creative industries. These included virtual tours of the building with a specially commissioned spoken word narration from Desree, with film made by Peter Harmer, short introductory workshops from artists and our technical team, virtual lighting workshops and spoken word masterclasses.

Community

Cambridge Junction received £55,000 from Cambridge City Council’s Community Fund to deliver community projects in six neighbouring wards – Coleridge, Queen Edith, Trumpington, Cherry Hinton, Romsey and Petersfield. Each of these projects responded to community need and sought to tackle inequality, across the UK’s most unequal city. We worked with artists including Hunt & Darton, HighRise Theatre, Unfinished Business and Luca Rutherford and worked with marginalised young people to create high-quality film work, gave new visibility to progressive and radical women across the city through a series of large-scale photography portraits, delivered sourdough baking workshops, and hosted a TV chat show on the streets of Queen Edith as part of their Skip Day. We were also successful in a further application to Cambridge City Council’s Community Fund for £50,000 to support the continuation of this community programme in 2022/23.

As part of our Community programme, and delivered by our Creative Learning team, Cambridge Junction, in partnership with HighRise Theatre and Romsey Mill, worked with young people at risk of exclusion or excluded from education and employment in Trumpington. Detached work unearthed a thirst for music provision in the area, creating the project, Beats, Trials and Tribulations, which enabled young people to work with industry professionals to unlock their lyrical, production and filmmaking talents. It provided a safe space for them to express themselves,

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explore their creativity, and to learn new skills and grow in confidence. It also brought together a supportive community and led to ten incredible music videos/freestyles being created based on their experiences.

Artist & Producer Development

We continue to provide a regional leading role on artist development. Our artist development network Troop (which currently has 67 members) received training, workshops, advice sessions, mentoring, work-in-progress opportunities and space and time in our building to make work. In 2021/22 we commissioned and supported the development of 21 new pieces of work and offered 45 weeks of residency time across the building.

Artists and companies supported with residencies in the building have included Anna Brownsted, METIS, Collusion, Josie Dale-Jones, Menagerie, Sam Plumb, Figs in Wigs, Luca Rutherford & Lizzie Klotz, Louise Orwin, Emma Spearing, Urban Foxes, New Art Club, Fatt Projects, Yshee Black, Vijay Patel, Katy Baird, Harry Clayton-Wright, Subira Joy, Bar Groisman, Dan Daw, Pink Suits, Anna Malender and Frozen Light.

Commissions were awarded to Tamara Micner, Josie Dale-Jones, Subira Wahogo, New Queers on the Block, Rising Tide, Marisa Carnesky, Harry Clayton-Wright, Chanje Kunda, Luca Rutherford, Dais Hale / Spaces of Joy, Action Hero, Yewande 103, Fatt Projects, Liz Counsell & Linda Rocco (I’m Here Where Are You?), H2 Dance (Fest en Fest), Alice Holland (Powerhouse), Sam Ross, Krishna Zivraj-Nair, Hester Stefan Chillingworth, Rachel Mars and Selina Thompson

We also began a collaboration with Producer Gathering, that brought together theatre, dance, live art and cabaret producers from across the UK to discuss issues around the state of the sector, equity, inclusivity, precarity and career development.

Ensuring Cambridge Junction’s resilience, now and in the future, remains a priority, particularly considering the impacts of COVID-19, gas and electricity prices and cost of living increases. In 2021/2022 we increased our free reserves to £186,260 (2021: £162,774) and established a designated fund to mitigate against increases in utility costs. We continue to operate as a social enterprise with surplus reinvested into our charitable activity. [ KPI5 ]

FINANCIAL REVIEW

Overall, the group had net expenditure for the year of £136,202 (2021: net income £285), including net surplus of £92,289 (2021: £208,982) on unrestricted funds.

The net expenditure on restricted funds in the year was £228,491 (2021: £208,697).

Included within the group’s results are those of the charity’s wholly owned trading subsidiary, The Junction Promotions Limited, which earned £122,625 profit for the year (2021: loss £11,333), £113,560 of which was giftaided to the charity. [KPI15]

We continue to maintain excellent relationships with our principal funding bodies, Arts Council England and Cambridge City Council. Arts Council England supports our core activity with annual funding of £649,146 (2021: £649,146) through its National Portfolio funding programme. We received project funding of £55,000 (2021: £27,500) from Cambridge City Council to support our community engagement programme during the pandemic. [ KPI5 ]

The Charity understands its duty to protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate but does not currently fundraise from the public or use any internal fundraisers or external fundraising agencies for either telephone or face to face campaigns and received no fundraising complaints during the year. The charity is registered as a small charity with the Fundraising Regulator.

RESERVES POLICY

Cambridge Junction carries out a diverse range of activities, including short term, externally funded projects and longterm business development. The trustees have examined the requirement for free reserves, i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the scale of the organisation and the nature of its work, the level of free reserves should be approximately £230,000 at any one time.

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RESERVES POLICY (CONTINUED)

The trustees are of the opinion that this provides:

In determining the reserves policy, the trustees have considered the fixed costs required to maintain the Company for three months stands at approximately £230,000. The trustees have also considered the impact of any funding loss and the timescale in which this might occur.

The balance sheet shows total funds of £2,462,353 at 31 March 2022 (2021: £2,598,555).

These funds included restricted funds of £1,780,201 (2021: £2,028,009). This comprises grants and other income and assets subject to donor-imposed conditions. The restricted funds include a Tickets in Advance Reserve of £120,000, which is a reserve equivalent to a prudent value of tickets sold in advance of events. Full details of restricted funds can be found in note 17 to the financial statements together with an analysis of movements in the year. The trustees note that the Tickets in Advance Reserve provides risk mitigation around ticket sales.

Unrestricted funds of the organisation at 31 March 2022 were £682,152 (2021: £570,546). These funds include £119,475 (2021: £81,975) relating to designated funds for a repair and renewal contingency, £50,088 (2021: £28,393) relating to designated funds for remuneration contingency, £21,000 (2021: £12,000) relating to designated funds for website optimisation, £43,855 (2021: £43,855) relating to designated funds for philanthropy and development, £40,000 (2021: nil) relating to designated funds for international projects delayed due to COVID-19, £40,000 relating to designated funds to mitigate against increased utility costs. The free reserves of the group are £186,260 (2021: £162,774) after taking out fixed assets of £181,474 (2021: £169,390).

At 31 March 2022, the free reserves fell short of the desired level as set out in the reserves policy, above.

PLANS FOR FUTURE PERIODS

While necessary restrictions due to the pandemic have been lifted on activities, the pandemic is not over and continues to impact on our programmes and lives, through staff, artist and audience illness and audience confidence to attend public spaces. We will continue to work to develop audiences and programmes and identify new sources of income (both donated and earned) to ensure we increase attendance, grow income, are dynamic in our development of strategy and actions, and further strengthen our resilience to this ongoing situation and similar challenges in the future.

Supply chain issues as a result of Brexit and the ongoing Russian invasion of Ukraine, have impacted on lead times for upgrading our AV equipment and vital repairs, such as to the lift in J2. The dramatic and unforeseen increases to energy prices are affecting our operations on a day-to-day basis and we have created a designated fund to counter this in the short term. Energy prices, inflation and the crisis in cost of living is and will further impact on our staff and all those with whom we work, and will require action on pay or balancing cost-of-living payments. We will explore with our Board how best to manage salaries and payments to ensure we maintain our financial sustainability while considering the needs of our teams.

We continue to be concerned about the future of public funding of the arts and will continue to lobby central government to properly support both local government and Arts Council England effectively. The recent cuts to arts provision in Higher Education are of great concern and it does not bode well for future government decisions on funding for the sector. It is vital that central government understands the huge range of benefits as well as the significant economic impact, both locally and nationally, that the arts and cultural sector provide. We are one of the UK’s largest industrial sectors returning billions to the Treasury each year. The sector has made this argument long and hard and we will continue to do so.

In May 2022, we submitted our application to Arts Council England’s National Portfolio, for funding for the years 2023-26. The Board and whole organisation were included in this process and gave valuable input and guidance. Our application clearly represents the embedding and implementation of Arts Council England’s Let’s Create strategy

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PLANS FOR FUTURE PERIODS (CONTINUED)

2020-2030 and responds fully to its new Investment Principles and gives a detailed action plan to deliver to Let’s Create Outcomes. We will hear whether our application was successful in October 2022.

The capital redevelopment of the site we currently lease from Cambridge City Council remains an urgent concern and major ambition for Cambridge Junction’s senior leadership and Board. Since 2014, we have worked with our partners at Cambridge City Council on a series of feasibility studies and proposals, including writing the brief and procurement of a lead design team in November 2019. Cambridge Junction’s senior leadership and Board were deeply disappointed by Cambridge City Council’s decision to cancel the planned project in October 2021, albeit in the difficult post-pandemic context. We seek to work with them and local partners to develop a proposal that can succeed in this changed context.

The business case for the development of our site - to provide Cambridge Junction and the city with a significant cultural complex - has been fully detailed in previous studies. These will be reviewed as the local and wider economic, political, social and cultural operating context becomes more clearly defined. Our need for far greater capacity is brought into ever sharper relief by the first release of data from Census 2021 which shows that Cambridge’s population has increased by 43% since we opened in 1990 and will have increased by 54% by 2031. Arts Council England have identified delivery of capital plans and delayed engagement with key partners on the project as currently the greatest risk to our plans and success. In the meantime, we are delivering smaller capital improvements for which we have gained support from Arts Council England and other funders. This smaller programme of access and facility improvements will be delivered in 2023 with the larger capital project becoming our priority for the medium and longer term.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The trustees constitute directors of the charitable company for the purpose of the Companies Act 2006.

The trustees serving during the year and since the year end, are shown on page 1.

Governing document

Cambridge Junction is incorporated as a company limited by guarantee with no share capital, registered in England and Wales (Company registration no. 02328810), and is set up as a registered Charity (Charity registration no. 801637).

Cambridge Junction’s Memorandum and Articles of Association were incorporated on 15 December 1988 and amended by special resolution on 23 May 1989; 31 March 1998; 6 March 2000; 10 May 2000 and 22 February 2006.

Appointment of Trustees

There can be up to 17 trustees, elected to the Board. Each trustee is elected for a term of three years and can be reelected for consecutive periods not exceeding nine years. After serving for nine years, a board member is not eligible for re-election until one year after retirement. New trustees are identified through personal recommendation, local networks and recruitment advertising. The trustees undertake a regular skills audit to ensure a suitable balance of skills and experience is achieved.

Trustee induction and training

On appointment, new trustees meet with the chair of the board and with senior management. These meetings include in-depth discussions regarding the structure, management and aims of the organisation and the responsibilities of the board as a whole and of individual trustees. New trustees are provided with a pack of relevant policies and other background information (including copies of budgets and financial statements) and are informed about the general information available on the Charity Commission website.

Group structure

The charity’s wholly owned trading subsidiary, The Junction Promotions Limited, which is incorporated in the United Kingdom and registered in England and Wales, pays all its profits to the charity by gift aid, under a deed of covenant. The Junction Promotions Limited operates the bars, refreshments and all commercial trading operations carried out at Cambridge Junction. The charity owns the entire issued share capital of 2 ordinary shares of £1 each.

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STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

The Board of trustees has overall control of the charity and is responsible for ensuring it fulfils its charitable aims and objectives. The Board appoints the CEO who in turn appoints the staff team responsible for the day to day running of the charity and trading subsidiary.

Related parties and co-operation with other organisations

Cambridge Junction had no formal partnership agreements in place during 2021/22.

Key management personnel

Matt Burman is the Artistic Director and Chief Executive Officer. Helen Chamberlain is the General Manager.

Pay policy for senior staff

Pay levels are agreed annually by the Board. All pay levels, including those of senior staff, are based on an understanding of fair and equitable pay within the arts sector and within peer National Portfolio Organisations.

Cambridge Junction is committed to pay all permanent staff the Living Wage (as set by the Living Wage Foundation) or better. All casual staff are paid the National Minimum Wage for 23+ or better. The organisation aspires to pay all staff the Living Wage or better.

Cambridge Junction does not pay performance related bonuses.

Risk management

The trustees have assessed the major risks to which Cambridge Junction is exposed, in particular those related to the strategic, business, operations and finances of Cambridge Junction, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

Key risks and the trustees’ approach to mitigating these risks are outlined in Cambridge Junction’s business plan. However, the primary risks remain the failure to achieve audience levels/income (particularly in J1) and the reduction/cessation of ongoing financial support from Arts Council England and/or Cambridge City Council. COVID19 has and will have a major and negative impact on audience levels, income and our funding relationships with Arts Council England and Cambridge City Council.

The trustees’ approach to mitigating these risks is to: reforecast budgets at quarterly intervals and to ensure the budget reflects actual trading and funding outcomes; revise budgets to reduce core costs; and, where necessary, to draw on the free reserves. Additionally we will work closely with funders and lobby for additional financial support from government to support our continued operation across 2022/23.

TRUSTEES’ QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The company has granted an indemnity to one or more of its trustees against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity provision remains in force as at the date of approving the Trustees’ report.

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TRUSTEES’ RESPONSIBILITIES STATEMENT

The trustees (who are also directors of Junction CDC Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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

AUDITOR

Each of the persons who is a trustee at the date of approval of this annual report confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Price Bailey has expressed its willingness to continue in office as auditor and reappointment as auditor will be considered at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

Approved by the Board of Directors and signed on behalf of the Board

Jon Pa ne y

Jon Payne (Oct 7, 2022, 12:51pm)J Payne J Payne

Trustee

Date: 26 September 20227 October 2022. 07 Oct 2022

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JUNCTION CDC LIMITED (t/a Cambridge Junction)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JUNCTION CDC LIMITED

Opinion

We have audited the financial statements of Junction CDC Limited (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the statement of consolidated cash flows 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JUNCTION CDC LIMITED

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 its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also the directors of the parent 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 auditor under the Companies Act 2006 and report in accordance with this Act.

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

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

We gained an understanding of the legal and regulatory framework applicable to the group and charitable company and how it operates and considered the risk of the group and charitable company not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements. In relation to the group and charitable company this included data protection, health and safety, employment law, licences to run venues and bar licences and financial reporting.

12

JUNCTION CDC LIMITED (t/a Cambridge Junction)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JUNCTION CDC LIMITED

The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

Helena Wilkinson BSc FCA DChA (Senior Statutory Auditor) for and on behalf of Price Bailey LLP

Chartered Accountants Statutory Auditors

Tennyson House Cambridge Business Park Cambridge CB4 0WZ

Date: 19 October 2022

13

JUNCTION CDC LIMITED (t/a Cambridge Junction)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including consolidated income and expenditure account) Year ended 31 March 2022

Note
INCOME:
Donations and legacies
3
Income from charitable activities:
Main projects and participation programme
4
Projects including arts development
Other Income:
Coronavirus Job Retention Scheme
Income from other trading activities:
Commercial trading operations
5
Investments – bank interest
6
Total income
EXPENDITURE:
Costs of raising funds:
Commercial trading operations
5
Expenditure on charitable activities:
Main projects and participation programme
7
Projects, including arts development
7
Total expenditure
Net income/(expenditure)
Transfer between funds
17
Net movement in funds in the year
Total funds brought forward
17
TOTAL FUNDS CARRIED FORWARD
17		 Unrestricted
funds
2022
£
1,200,190
836,378
-
119,994
378,138
455
2,535,155
255,513
2,067,359
119,994
2,442,866
92,289
19,317
111,606
570,546
682,152		 Restricted
funds
2022
£
Total funds
2022
£
137,416
1,337,606
-
836,378
-
-
119,994
-
378,138
-
455
137,416
2,672,571
-
255,513
55,000
2,122,359
310,907
430,901
365,907
2,808,773
(228,491)
(136,202)
(19,317)
-
(247,808)
(136,202)
2,028,009
2,598,555
1,780,201
2,462,353		 Total funds
2021
£
1,298,259
41,418
7,995
559,172
815
584
1,908,243
12,148
1,043,458
852,352
1,907,958
285
-
285
2,598,270
2,598,555

There were no other items of comprehensive income other than those listed above and the net income for the year. All income and expenditure derive from continuing activities.

The deficit of the parent charity for the year for Companies Act purposes is £136,202 (2021: surplus £285). As permitted by Section 408 of the Companies Act 2006, no separate Statement of Financial Activities is presented in respect of the parent charity.

See note 17 for comparative Consolidated Statement of Financial Activities analysed by funds.

The notes on pages 18 to 35 form part of these financial statements.

14

JUNCTION CDC LIMITED (t/a Cambridge Junction)

CONSOLIDATED BALANCE SHEET Year ended 31 March 2022

Note
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Stocks
13
Debtors
14
Cash at bank and in hand
CREDITORS: amounts falling due
within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
CHARITY FUNDS
Restricted funds
17
Unrestricted funds
17
TOTAL FUNDS		 2022
£
1,768,481
23,707
149,916
1,133,738
1,307,361
(613,489)
693,872
2,462,353
2,462,353
1,780,201
682,152
2,462,353		 2021
£
1,980,563
6,170
146,318
907,839
1,060,327
(442,335)
617,992
2,598,555
2,598,555
2,028,009
570,546
2,598,555

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. The notes on pages 18 to 36 form part of these financial statements.

The financial statements of Junction CDC Limited, registered number 02328810 were approved by the Board of Trustees and authorised for issue on _______. 26 September 20227 October 2022. 07 Oct 2022

Signed on behalf of the Trustees

Jon Pa ne y

J Payne Jon Payne (Oct 7, 2022, 12:51pm) J Payne Trustee

15

JUNCTION CDC LIMITED (t/a Cambridge Junction)

CHARITY BALANCE SHEET Year ended 31 March 2022

Note
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Debtors
14
Cash at bank and in hand
CREDITORS: amounts falling due
within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
CHARITY FUNDS
Restricted funds
17
Unrestricted funds
17
TOTAL FUNDS		 2022
£
1,768,481
2
1,768,483
746,765
530,255
1,277,020
(583,150)
693,870
2,462,353
2,462,353
1,780,201
682,152
2,462,353		 2021
£
1,980,563
2
1,980,565
538,271
526,668
1,064,939
(437,884)
627,055
2,607,620
2,607,620
2,028,009
579,611
2,607,620

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. The notes on pages 18 to 36 form part of these financial statements.

The financial statements of Junction CDC Limited, registered number 02328810 were approved by the Board of Trustees and authorised for issue on _______. 26 September 20227 October 2022. 07 Oct 2022

Signed on behalf of the Trustees

Jon Pa ne y J PayneJ Payne Jon Payne (Oct 7, 2022, 12:51pm)

Trustee

.

16

JUNCTION CDC LIMITED (t/a Cambridge Junction)

STATEMENT OF CONSOLIDATED CASH FLOWS

Year ended 31 March 2022

Note
Cash generated from operating activities
22
Cash flows from investing activities
Interest income
Purchase of tangible fixed assets

Cash flows used in investing activities
Increase in cash and cash equivalents in the year
Cash and cash equivalents at beginning of the year
Total cash and cash equivalents at the end of the year		 2022
£
251,551
455
(26,107)
225,899
225,899
907,839
1,133,738		 2021
£
266,372
584
(7,781)
259,175
259,175
648,664
907,839
2021
£
259,175
648,664
907,839
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
Note
Increase in cash in the year being
movement in net funds in the year
23
Net funds at 1 April
Net funds at 31 March		 2022
£
225,899
907,839
1,133,738

The notes on pages 18 to 35 form part of these financial statements.

17

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

1. ACCOUNTING POLICIES

Company and charitable status

Junction CDC Limited meets the definition of a public benefit entity under FRS102 and is incorporated in the United Kingdom and registered in England and Wales as a company limited by guarantee not having a share capital. There are currently eight (2021: nine) Trustees who are also the members of the company. Each member has undertaken to contribute to the assets in the event of winding up a sum not exceeding £1. The charity is a registered charity. The registered office is given on page 1.

General information and basis of accounting

The financial statements are prepared under the historical cost convention, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2019)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), effective 1 September 2018; and the Companies Act 2006.

The financial statements are presented in Sterling and are rounded to the nearest £.

The principal accounting policies are set out below .

Preparation of financial statements - going concern basis

Cambridge Junction’s activities, together with the factors likely to affect its future development, performance and position are set out in the Trustees’ Report. The Trustees’ Report also describes the financial position of Cambridge Junction; its risk management objectives and policies; its free reserves policy and statutory funding position.

The trustees have prepared forecasts which show that Cambridge Junction will be able to meet its liabilities as they fall due, for a period of at least 12 months from the date of approval of these financial statements.

The trustees have a reasonable expectation that Cambridge Junction has adequate resources to continue in operational existence for the foreseeable future and, therefore, continue to adopt the going concern basis in preparing these financial statements.

Basis of consolidation

Group financial statements have been prepared in respect of the Charity and its wholly owned subsidiary undertaking Junction Promotions Limited. These financial statements have been consolidated on a line-byline basis and the results of the subsidiary undertaking are disclosed in note 5.

Income

Income is recognised when the Group and Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income relating to events including ticket sales, bar income and cloakroom income is recognised at the date of performance.

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

18

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

1. ACCOUNTING POLICIES (CONTINUED)

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Expenditure on raising funds includes the costs incurred in commercial trading operations.

Expenditure on charitable activities includes the costs of performances and other educational activities undertaken to further the purposes of the charity and their associated support costs.

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Trust’s artistic programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. Irrecoverable VAT is charged as an expense and shown within support costs

The bases on which support costs have been allocated are set out in note 8.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds subject to specific restrictions imposed by the funding authorities and donors. These funds are not available for the Trustees to apply at their discretion. The purpose and use of the restricted funds is set out in the notes to the financial statements.

Taxation

The parent company is a registered charity and has no liability to corporation tax on its charitable activities under the Corporation Tax Act 2010 (chapters 2 and 3 of part ii, section 466 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applied to its charitable purposes.

Current tax for the subsidiary company, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. No corporation tax is payable (or receivable) for the current or previous financial year.

Tangible fixed assets

Fixtures and equipment are stated at cost less accumulated depreciation and any recognised impairment loss.

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Long term leasehold property Period of lease Fixtures and fittings 20-33%

Residual value is calculated on prices prevailing at the date of acquisition. Useful lives and residual values are reviewed at the end of every reporting period.

Investments

In the parent charity balance sheet, investments in subsidiary undertakings are measured at cost less impairment.

19

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

1. ACCOUNTING POLICIES (CONTINUED)

Stock

Stocks are stated at the lower of cost and net realisable value. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and costs to be incurred in marketing, selling and distribution. Cost is based on the cost of purchase on a first in, first out basis. Provision is made for obsolete, slow-moving or defective items where appropriate.

Leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Financial instruments

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs).

The charity and group only have financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Fixed assets are recorded at depreciated historical cost and all other assets and liabilities are recorded at costs which is their fair value.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Pensions

For defined contribution schemes the amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, which are described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Trustees do not consider there are any critical accounting judgements or key sources of estimation uncertainty requiring disclosure.

20

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

3. ANALYSIS OF INCOME FROM DONATIONS AND GRANTS

Donations:
Rent and rates in kind
Individual Donations
Corporate Sponsorship
Trusts & Foundations
Grants:
Cambridge City Council1
Canadian Commission2
Arts Council England3
Arts Council England – Cultural Recovery Fund4
Cambridgeshire County Council5
Future Arts Centres6
Arts Admin7
Arts Council England – Ambition For Excellence8
National Heritage Lottery Grant9
BBC Children in Need10
Paul Hamlyn Foundation (Take Two)11		 2022
£
Unrestricted
Funds
105,840
70,480
5,853
-
182,173
-
-
649,146
368,871
-
-
-
-
-
-
-
1,018,017
1,200,190		 2022
£
Restricted
Funds
-
-
-
14,999
14,999
55,000
417
-
-
4,750
-
-
-
-
4,500
57,750
122,417
137,416		 2022
£
Total
Funds
105,840
70,480
5,853
14,999
197,172
55,000
417
649,146
368,871
4,750
-
-
-
-
4,500
57,750
1,140,434
1,337,606		 2021
£
105,840
46,906
3,510
31,137
187,393
27,500
-
649,146
358,613
2,165
12,000
29,188
24,091
2,663
5,500
-
1,110,866
1,298,259

  1. Community grant which supports the community and creative learning programmes. The grant is awarded annually.

  2. Grant to support marketing costs for Tamara Micner's Old Friends

  3. National Portfolio Organisation triannual funding awarded up to 2023.

  4. Cultural Recovery Fund grant to support cultural organisations during COVID-19 pandemic.

  5. Grant to support youth music initiatives.

  6. Grant to support commissioning of Here and Now -by Scottee and Friends

  7. Grant to support commissioning of Love Letters to a Liveable Future by Metis

  8. Strategic fund to support Diverse Actions, a three-year initiative championing BAME artists and arts workers.

  9. Grant to support Cambridge Junction 30[th] year celebrations.

  10. Grant to support creative learning activity.

  11. Grant to support creative learning activity.

2021 figures include restricted funds of £103,988 consisting of £42,069 restricted donations and £61,919 restricted grants.

There are no unfulfilled conditions or other contingencies relating to the above grants.

21

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

4. ANALYSIS OF INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
funds
2022
£
Earned income from performance, classes and public events:
Ticket sales
555,775
Event hire fees
140,201
Cloakroom sales
8,861
Creative learning sales
9,540
Other sales
122,001
Total
836,378		 Total
2022
£
555,775
140,201
8,861
9,540
122,001
836,378
2021– Comparative
Unrestricted
funds
2021
£
Earned income from performance, classes and public events:
Ticket sales
22,542
Event hire fees
7,275
Cloakroom sales
Creative learning sales
510
Other sales
11,091
Total
41,418		 Total
2021
£
22,542
7,275
510
11,091
41,418

22

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

5. ANALYSIS OF INCOME AND EXPENDITURE ON RAISING FUNDS

The wholly owned trading subsidiary, The Junction Promotions Limited, is incorporated in the United Kingdom (company number 03437774) and pays all of its profits to the charity under a deed of covenant. The Junction Promotions Limited operates the bars at the Cambridge Junction premises. A summary of the trading results is shown below:

Turnover
Cost of sales
Staff costs
Support costs (note 8)
Net Profit
Retained earnings at the beginning of the year
Deed of covenant/gift aid
Retained in subsidiary
SUMMARY BALANCE SHEET
CURRENT ASSETS
Stocks
Debtors
Cash at bank and in hand
CREDITORS: amounts falling due
within one year
NET CURRENT ASSETS
NET ASSETS
CAPITAL
Share capital
Retained earnings
SHAREHOLDERS’ FUNDS		 2022
£
378,138
(176,402)
(25,339)
(53,772)
122,625
(9,065)
(113,560)
-
2022
£
23,707
1,082
603,484
628,273
(628,271)
2
2
2
-
2		 2021
£
815
(4,398)
-
(7,750)
(11,333)
-
(11,333)
2021
£
6,170
2,412
381,171
389,753
(398,816)
(9,063)
(9,063)
2
(9,065)
(9,063)

.

23

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

6. ANALYSIS OF INCOME FROM INVESTMENTS

2022 2021
£ £
Bank interest 455 584

7. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Cost of main performance and participation programme
Costs of projects, including arts development
Total
Cost of main performance and participation programme
Artists’ fees and commissions
Licences
Security costs
Technical costs
Box Office Costs
Marketing costs
Property costs
Salaries
National insurance
Depreciation
Support costs (note 8)
Costs of projects, including arts development
Pru Project/Total Arts Film Festival
Staff Costs/Job Retention Scheme
Access The Arts Fund
PHF: Take Two
Canadian Commission re Old Friends
BBC CiN Act One
Other:
Building depreciation		 Unrestricted
funds
2022
£
Restricted
funds
2022
£
2,067,359
55,000
119,994
310,907
2,187,353
365,907
560,796
26,486
22,964
-
79,855
-
69,906
-
29,646
-
44,034
600
311,558
-
431,936
26,751
42,506
1,163
14,022
-
460,135
-
2,067,358
55,000
-
52,103
119,994
-
-
10,932
-
13,288
-
417
-
10,000
-
224,167
119,994
310,907		 Total
2022
£
2,122,359
430,901
2,553,260
587,282
22,964
79,855
69,906
29,646
44,634
311,558
458,687
43,669
14,022
460,135
2,122,358
52,103
119,994
10,932
13,288
417
10,000
224,167
430,901

24

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

7. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES (continued)

2021 – Comparative

Cost of main performance and participation programme
Costs of projects, including arts development
Total
Cost of main performance and participation programme
Artists’ fees and commissions
Licences
Security costs
Technical costs
Marketing costs
Property costs
Salaries
National insurance
Depreciation
Support costs (note 8)
Costs of projects, including arts development
Pru Project/Total Arts Film Festival
Staff Costs/Job Retention Scheme
Arts Council England Diverse Actions
National Lottery 30thbirthday celebrations
Other:
Building depreciation		 Unrestricted
funds
2021
£
Restricted
funds
2021
£
1,015,958
27,500
559,172
293,180
1,575,130
320,680
245,714
16,378
9
-
(190)
-
1,537
-
14,469
-
251,122
-
155,579
10,644
26,093
478
8,388
-
313,237
-
1,015,958
27,500
-
26,413
559,172
-
-
39,937
-
2,663
-
224,167
559,172
293,180		 Total
2021
£
1,043,458
852,352
1,895,810
262,092
9
(190)
1,537
14,469
251,122
166,223
26,571
8,388
313,237
1,043,458
26,413
559,172
39,937
2,663
224,167
852,352

25

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

8. ANALYSIS OF SUPPORT COSTS

Support costs:
Recruitment
Staff training
Staff welfare
Travel and subsistence
General administration
Legal fees
Consultancy fees
Bank and credit card charges
Irrecoverable VAT
Bad and doubtful debts
Exchange rate variance
Wages and salaries
National insurance
Pension
Governance costs:
Auditor’s remuneration		 Main
performance
and
participation
programme
2022
£
824
5,501
8,033
4,511
83,061
4,070
8,055
24,326
98,872
3,393
(36)
146,180
15,067
45,848
12,430
460,135		 Commercial
trading
operations
2022
£
-
35
265
-
9,979
555
1,098
11,867
-
-
-
21,557
2,843
1,673
3,900
53,772		 Total
2022
£
824
5,536
8,298
4,511
93,040
4,625
9,153
36,193
98,872
3,393
(36)
167,737
17,910
47,521
16,330
513,907

Governance and support costs are allocated to the different activities on the basis of a department allocation and the functions for which the resources are used.

26

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

8. ANALYSIS OF SUPPORT COSTS (continued)

2021 – Comparative

Support costs:
Recruitment
Staff training
Staff welfare
Travel and subsistence
General administration
Legal fees
Consultancy fees
Bank and credit card charges
Irrecoverable VAT
Bad and doubtful debts
Exchange rate variance
Wages and salaries
National insurance
Pension
Governance costs:
Auditor’s remuneration		 Main
performance
and
participation
programme
2021
£
-
3,937
1,664
184
48,253
4,208
225
7,618
40,613
(1,947)
(137)
139,868
14,437
45,814
8,500
313,237		 Commercial
trading
operations
2021
£
-
-
-
-
3,985
-
-
520
-
-
-
-
-
-
3,245
7,750		 Total
2021
£
-
3,937
1,664
184
52,238
4,208
225
8,138
40,613
(1,947)
(137)
139,868
14,437
45,814
11,745
320,987

Governance and support costs are allocated to the different activities on the basis of a department allocation and the functions for which the resources are used.

9. NET EXPENDITURE FOR THE YEAR

2022 2021
£ £
This is stated after charging:
Depreciation of tangible fixed assets:
Owned 238,189 232,554
Fees payable to the charity’s auditor for audit 12,430 8,500
Fees payable to the charity’s auditor for other services to the
group:
The audit of the charity’s subsidiary 3,900 3,245

27

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

10. STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL

The average monthly number of employees was:
Commercial trading
Main performance and participation programme
Projects including arts development
Support
The aggregate staff costs were as follows:
Wages and salaries
Social security costs
Pension costs		 2022
No
9
62
-
2
73
970,466
62,530
47,521
1,080,517		 2021
No
-
65
1
2
68
£
875,731
55,514
46,159
977,404

No Group employees had emoluments, excluding pension contributions but including benefits in kind, that were in excess of £60,000 in either the current year or preceding year.

The key management personnel of the parent Charity and its wholly owned subsidiary, The Junction Promotions Ltd are listed on page 11. The total remuneration (including pension contributions and employer’s NI) of the key management personnel for the year totalled £114,727 (2021: £111,406).

Trustees’ Remuneration

No trustees received remuneration or travel and subsistence expenses during the current or prior year. The Group holds Charity Management Liability Insurance at a cost of £1,234 (2021: £2,200) plus 12% Insurance Premium Tax making £1,383 (2021: £2,464) in total.

28

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

11. TANGIBLE FIXED ASSETS

Group and charity
Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
12.
FIXED ASSET INVESTMENTS
Charity
Shares in subsidiary undertakings
At 1 April 2021 and 31 March 2022		 Long term
leasehold
property
£
Fixtures and
fittings
£
5,738,137
593,902
-
26,107
5,738,137
620,009
3,772,055
579,421
224,167
14,022
3,996,222
593,443
1,741,915
26,566
1,966,082
14,481		 Total
£
6,332,039
26,107
6,358,146
4,351,476
238,189
4,589,665
1,768,481
1,980,563
£
2

The fixed asset investment comprises 100% of the issued ordinary share capital of The Junction Promotions Limited, a company incorporated in the United Kingdom and registered in England and Wales. The Junction Promotions Limited (Company Registration No. 03437774) is the main trading arm, in support of the Charity. See balance sheet at note 5.

13. STOCKS
Group 2022 2021
£ £
Bar and catering stock 23,707 6,170

There is no material difference between the balance sheet value of stocks and their replacement cost.

29

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

14. DEBTORS

Debtors falling due within one year:
Trade debtors
Amounts due from subsidiary undertakings
Prepayments and accrued income		 Group
2022
£
2021
£
38,386
6,854
-
-
111,530
139,464
149,916
146,318		 Charity
2022
£
2021
£
38,386
5,524
597,930
394,365
110,449
138,382
746,765
538,271		 Charity
2022
£
2021
£
38,386
5,524
597,930
394,365
110,449
138,382
746,765
538,271
538,271

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Other taxation and social security
Deferred ticket income
Other creditors
Accruals and deferred income		 Group
2022
£
2021
£
129,539
122,092
42,665
13,811
297,537
248,981
27,755
12,892
115,993
44,559
613,489
442,335		 Charity
2022
£
2021
£
106,661
121,060
42,665
13,811
297,537
248,981
27,755
12,892
108,532
41,140
583,150
437,884		 Charity
2022
£
2021
£
106,661
121,060
42,665
13,811
297,537
248,981
27,755
12,892
108,532
41,140
583,150
437,884
437,884

16. DEFERRED TICKET INCOME RECONCILIATION

Balance at 1 April 2021
Amount deferred in the year
Amount released in the year
Balance as at 31 March 2022		 2022
£
248,981
970,427
(921,871)
297,537		 2021
£
184,133
121,127
(56,279)
248,981

30

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

17. MOVEMENTS OF FUNDS

4


Unrestricted funds:
General reserves
Unrestricted funds total
Designated funds:
Repair and renewal fund
Remuneration contingency
Website Optimisation Fund
International Projects
Philanthropy Fund
Utilities Reserve
Cultural Recovery Fund
Designated funds total
Unrestricted and designated funds total
Restricted funds:
Building redevelopment
Tickets in advance reserve
Cambridge City Council
Canadian Commission
Access The Arts Fund
Paul Hamlyn Foundation (Take Two)
Red Hill
BBC Children in Need
Total Arts
Restricted funds total
TOTAL FUNDS		 At 1 April
2021
£
332,164
332,164
81,975
28,398
12,000
-
43,855
-
72,154
238,382
570,546
1,811,174
120,000
-
-
10,932
-
-
5,500
80,403
2,028,009
2,598,555		 Income
£
Expenditure
£
2,535,155
(2,442,866)
2,535,155
(2,442,866)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,535,155
(2,442,866)
-
(224,167)
-
-
55,000
(55,000)
417
(417)
-
(10,932)
57,750
(8,288)
5,000
(5,000)
4,500
(10,000)
14,749
(52,103)
137,416
(365,907)
2,672,571
(2,808,773)		 Transfers
£
At 31 March
2022
£
(56,719)
367,734
(56,719)
367,734
37,500
119,475
21,690
50,088
9,000
21,000
40,000
40,000
-
43,855
40,000
40,000
(72,154)
-
76,036
314,418
19,317
682,152
-
1,587,007
-
120,000
-
-
-
-
-
-
-
49,462
-
-
-
-
(19,317)
23,732
(19,317)
1,780,201
-
2,462,533

Transfers between funds represent reallocation of income or expenditure to funds, while remaining consistent with any restriction in relation to these funds. The transfer of £19,317 out of Total Arts is for costs previously unallocated in the year.

General funds represent the funds generated from voluntary, charitable and trading operations of the charity to support the charity on a day-to-day basis and to fulfil the objectives of the charity.

Designated funds:

Repair and renewal fund represents the amount allocated for small capital repair, replacement, and renewal. Remuneration contingency represents an amount allocated for salary and wage increases. Website Optimisation Fund represents an amount allocated to redesign the company’s website International Projects represents an amount allocated to international projects (UK-Australia) delayed due to COVID-19

Philanthropy Fund represents an amount allocated for Development department salaries. Utilities Reserve represents an amount allocated to mitigate the impact of increasing utilities costs Cultural Recovery Fund represents a fund to support cultural organisations forced to restrict activities because of COVID-19.

31

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

17. MOVEMENTS OF FUNDS (continued)

Restricted funds:

Building Redevelopment represents grants and costs related to the redevelopment of the Cambridge Junction site.

Tickets in advance reserve represents a grant from Arts Council England to reimburse ticket purchasers due to event cancellations, postponements or other unforeseen events.

Cambridge City Council represents funds received from Cambridge City Council to support the community engagement programmes.

Canadian Commission represents funds received towards artistic projects.

Access The Arts Fund represents funds raised by Total Arts participants to support cultural access for young people with complex needs.

Paul Hamlyn Foundation (Take Two) represents a multi-year grant supporting projects with young people

BBC Children in Need represents a grant towards costs of a project supporting local young people. Red Hill represents a grant towards costs of a project supporting local young people . Total Arts represents funds received to support work for and by disabled young people.

Analysis of movement in free reserves

At 1 April
2021
£
Unrestricted funds
570,546
Less - tangible fixed assets
(169,390)
Less - designated funds:
Repair and renewal fund
(81,975)
Remuneration contingency
(28,398)
Website Optimisation Redesign
(12,000)
Philanthropy Fund
(43,855)
International Projects
-
Utilities Fund
-
Cultural Recovery Fund 1
(72,154)
Free reserves
162,774		 Income
£
2,535,155
-

-
-
-
-
-
-
-
2,535,155		 Expenditure
£
Transfers
£
(2,442,866)
19,317
(12,084)
-
-
(37,500)
-
(21,690)
-
(9,000)
-
-
-
(40,000)
-
(40,000)
-
72,154
(2,442,866)
(56,719)		 At 31
March
2022
£
682,152
(181,474)
(119,475)
(50,088)
(21,000)
(43,855)
(40,000)
(40,000)
-
186,260

32

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

17. MOVEMENT OF FUNDS (continued)

2021 - Comparative

At 1 April At 31 March
2020 Income Expenditure Transfers 2021
£ £ £ £ £
Unrestricted funds:
General reserves 193,521
1,237,088
(1,028,106)		 (70,339) 332,164
Unrestricted funds total 193,521
1,237,088
(1,028,106)		 (70,339) 332,164
Designated funds:
Repair and renewal fund 61,975 - - 20,000 81,975
Remuneration contingency 16,398 - - 12,000 28,398
Website Optimisation Fund 12,000 - - - 12,000
Philanthropy Fund 43,855 - - - 43,855
Job Retention Scheme -
559,172
(559,172)		 - -
Cultural Recovery Fund 1 - - - 72,154 72,154
Designated funds total 134,228
559,172
(559,172)		 104,154 238,382
Restricted funds:
Building redevelopment 2,035,340 -
(224,167)		 - 1,811,174
Tickets in advance reserve 120,000 - - - 120,000
Cambridge City Council -
27,500
(27,500)		 - -
Heritage Lottery 30thbirthday project -
2,663
(2,663)		 - -
BBC Children in Need -
5,500		 - - 5,500
ACE Catalyst Evolve 33,816 - - (33,815) -
Access The Arts Fund -
10,932		 - - 10,932
Total Arts 73,514
33,302
(26,413)		 - 80,403
ACE Diverse Actions 7,851
32,086
(39,937)		 - -
Restricted funds total 2,270,521
111,983
(320,680)		 (33,815) 2,028,009
TOTAL FUNDS 2,598,270
1,908,243
(1,907,958)		 - 2,598,555
of movements in free reserves
At 1 April At 31 Mar
2020 Income Expenditure Transfers 2021
£ £ £ £ £
Unrestricted funds 327,749 1,796,260 (1,587,278) 33,815 570,546
Less - tangible fixed assets (169,997) - 607 - (169,390)
Less - designated funds:
Repair and renewal fund (61,975) - - (20,000) (81,975)
Remuneration contingency (16,398) - - (12,000) (28,398)
Website Optimisation Redesign (12,000) - - - (12,000)
Philanthropy Fund (43,855) - - - (43,885)
Job Retention Scheme - 559,172 (559,172) - -
Cultural Recovery Fund 1 - - - (72,154) (72,154)
Free reserves 23,524 2,355,432 (2,145,843) (73,969) 162,774

Analysis of movements in free reserves

33

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

18. ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

Group
Unrestricted
funds
£
Designated
funds
£
Tangible fixed assets
181,474
Current assets
799,749
314,418
Current liabilities
(613,489)
At 31 March 2022
367,734
314,418
2021– Comparative
Group
Unrestricted
funds
£
Designated
funds
£
Tangible fixed assets
169,390
-
Current assets
673,273
166,228
Current liabilities
(442,335)
-
At 31 March 2021
400,328
166,228		 Restricted
funds
£
1,587,007
193,194
1,780,201
Restricted
funds
£
1,811,174
216,836
-
2,028,010		 Total
2022
£
1,768,481
1,307,361
(613,489)
2,462,533
Total
2021
£
1,980,564
1,056,337
(442,335)
2,598,556

19. EMPLOYEE RETIREMENT BENEFITS

The group operates a defined contribution retirement benefit scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable to the scheme in the year and amounted to £45,848 (2021: £46,159). Contributions totalling £4,381 (2021: £3,887) were payable to the scheme at the balance sheet date and are included in creditors.

20. FINANCIAL COMMITMENTS

Operating lease commitments

The estimated annual value of rent and rates waived by Cambridge City Council in respect of the Cambridge Junction site is £105,840 (2021: £105,840), which is included in donations income and property costs.

21. RELATED PARTY TRANSACTIONS

Other related party transactions

In the year ended 31 March 2022, trustees and associated companies made payments totalling £22,447 (2021: £1,693) to Cambridge Junction for donations, corporate memberships and sponsorship.

The total remuneration for key management personnel for the period is set out in note 10. The company has taken advantage of the exemption in section 33 of FRS 102 ‘Reduced disclosure framework’ not to disclose transactions and balances with its wholly owned subsidiary, The Junction Promotions Limited. There are no other related party transactions.

34

JUNCTION CDC LIMITED (t/a Cambridge Junction)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022

22. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net(expenditure)/income for the year
Adjustments for:
Depreciation charge
Interest income
Operating cash flow before movement in working
capital
(Increase)/decrease in stock
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities		 Group
2022
£
2021
£
(136,202)
285
238,189
232,555
(455)
(584)
101,532
232,255
(17,537)
4,668
(4,929)
15,396
172,485
14,052
251,551
266,372		 Group
2022
£
2021
£
(136,202)
285
238,189
232,555
(455)
(584)
101,532
232,255
(17,537)
4,668
(4,929)
15,396
172,485
14,052
251,551
266,372
232,255
4,668
15,396
14,052
266,372

23. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand
Net funds		 31 March
2021
£
907,839
907,839		 Cash flow
£
225,899
225,899		 31 March
2022
£
1,133,738
1,133,738

24. OPERATING LEASE COMMITMENTS

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

Expiry date:
Not later than 1 year
Later than 1 but not later than 5 years		 2022
£
210
-
210		 2021
£
2,152
210
2,362

25. CONTINGENT LIABILITY

The company is part of a group VAT registration and therefore is potentially liable for VAT liabilities of its trading subsidiary. As at 31 March 2022 the company had a creditor relating to value added tax of £22,503 (2021- £743).

35