Charlty registratlon number NIC106151 Company registratlon number N1024698 (Northern Ireland} ARGYLE BUSINESS CENTRE ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ARGYLE BUSINESS CENTRE LEGALAND ADMINISTRATIVE INFORMATION Trustees Mr Brian Kingston Mr James Mullan Mr William Ellison Lord Reg Empey Mrs Marie Hamill Pastor Stephen Reynolds Ms Michelle Manwaring Ms Lisa Byme Mr W G McAllister (Appointed 24 January 2024) Secretary Mr Brlan Kingston Charlty number NIC106151 Company number N1024698 Reglgtsred offlce 39 North Howard Street Belfast BT13 2AP Independent examlner Harbinson Mulholland Centrepoint 24 Ormeau Avenue Belfast Co. Antrim Northern I￿land BT2 8HS Bankers Ulster Bank 185-189 Shankill Road Belfast Antrim BT13 1FH ARGYLE BUSINESS CENTRE CONTENTS Page Trustees, report Independent examineffs report Statement of financlal activitles Statement of financial position Notes to the financial statements 7-15 ARGYLE BUSINESS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees present their annual report and financial ststements for the year ended 31 December 2023. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity'5 governing document, the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities" effective January 2015. This report provides information on Argyle Business Centre's activities and financial performance, it forms part of a range of public information designed to give an open account of our work. Objectlves and actlvlties The charity'5 objects are to advance economic regeneration and entrepreneurship, to engage wlth othar organisats'ons in the promotion of local economic development and promotion of relevant charitable objectives. The trustees have paid due regard to guidance issued by the Charlty Commlssion in declding what activities the charlty should undertake. The main area of activity is the rental of units to local businesses. Including the 10 new Business units completed In January 2022, in total there are 65 business units (totalling 82,OOOsq ft) and 1 other outside compound area. Phase1- 42 units rented, 1 unlt used byArgyle Phase 2 - 12 units rented Phase 3 - 10 Units rented Other- 1 compound area rented Achlevements and performance The company believes it achieved its goals of advising and promoting economic regeneration and entrepreneurship throughout the Greater Shankill area. Financlal revlew The results are set in full in the financial statements. The unrestricted reseNes of Argyle Business Centre have increased by £28,139. The directors have obtained funding for the near future Prlncipal FurKllng Sources The principal source of funding was the initial release of capital funding frorn Invest Nl, the Intsrnational Fund for Ireland, Belfast City Council and ERDF, along with current rental income from the property located on North Howard Street, Belfast. There have been Mo major capital investments in Argyle, £1.2M to open in 1992, of which £250k was a bank loan taken out by Argyle Directors £1.8M expansion in 2007, of which £250k was a bank loan taken out by Argyle Directors 80th these Bank Loans have been repaid in full. Argyle currently has no borrowings. £1.33m expansion in 2022, of which circa £400k was from Argyle r8serves. The directors retain funds in the charity in order to provide sufficient working capital to facilitate the ongoing trading activities, and project development. The minimum target for unrestricted fund reserves is six months expenseslcosts in cash at bank. The charity's surplus funds remain in deposit at bank. The trustees have assessed the major risks to which the charty is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. ARGYLE BUSINESS CENTRE TRUSTEES. REPORT {CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The charity wishes to have all units rented. The 10 new units, totalling an extra 9,OOOsq.ft of lettable workspace were handed over on 14th Jan 2022, providing in the region of 30 newjobs on site. The charity which now owns the former Shankill Road Mission building is re-thinking its major project to create a social economy 4 Stsr Hotel with a community base and a focus on training and up-skilling of local people. The worldwide Covid-19 pandemic hit the hospitality and tourism industry hard, and the Shankill Hotel Project is now being re-considered for build in a 'phased' manner, with an initial smaller build, which can be expanded as need arises and is proven, and with more of a focus on training for the devastated hospitality and tourism industry, which may in the short-term become more dependent on local custom. A late development proposed and agreed in December 2022 for the Shankill Mission Building was as a 'meanwhile' home for the Vault Artists Collective, who were having to relocate from their current building In East Belfast, which was due for demolition in June 2023. The plan to rehabilitate the Shankill Mission Building for occupalion after being vacant since July 2009, and enable 30 artist studios, and some large performance spaces to be accommodated in the premises, has been quite successful. TheArgyle Board funded £100k to refurbish the Shankill Mission building, make exterior and roof weatherproof, carry out interior building work and water services refurbishment, upgrade electrical systems, and upgrade Fire Alarm system to the level required by a new risk assessment, for intended occupation and public use in June 2023. The Vault Artists Collective contributed approximately £40k in Internal upgrades and fitting out for their purposes, and the equivalent of £30k in in-kind volunteer hours. Another late development in December 2022 was the linkup with ArtEZ University of the Arts, Arnhem, Netherlands. Argyle Business Centre agreed to be the host partner organization, and centre of operations facilitating cohorts of placement students, 10 BA Degree Students for 8 weeks in Febl March, and 10 IMAE {Internats'onal MasterArtist Educator) for 16 weeks from March to June 2023. These 20 students on residential placement attended classes facilitated in Argyle, and engaged on placement with local community groups in Shankill and North Belfast. The placemants recommenced in Feb 2024. ArtEZ has now been awarded a UNESCO Chair (for at least 4 years) in Issues Based Art Education for its work in Shankill, Morocco and Arnhem, and Argyle is looking forward to this continuing successful collaboration. Following the passing of founding Director Baroness May Blood, the Argyle Board felt that a fitting legacy would be the setting up of the 'Baroness May Blood Third-Level education Bursaries, to help local student overcome some of the financial barriers of conlinuing education. For academic year 2023124 the Bursary Scheme, fully funded by Argyle. awarded £21,000 to 24 Shankill students, {£1.000 for full-tlme courses. £500 for part-time courses. For 2024125 the scheme will be expanded with extra local sponsors. structure, governance and management The charity is a company limited by guarantee, incorporated on 3 January 1990 and was registered a5 a charity on 28 September 2011. The company was established under a Memorandum of Association. The Board of Directors ofArgyle were dealt severe blows with the passing on 21 October 2022 of one of its founding Directors, Baroness May Blood at age 84 years, and the passing only a few months later on 27 March 2023, of John Simpson, a Director of 10 years standing, and noted as a regular contributor to local newspapers and BBC Television.on Nl economic matters. May and John were very strong advocates and supporters of the economic regeneration work Ca￿led out by Argyle, and will be sorely missed by fellow Directors and the whole Argyle family. Th8 trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were.. Mr Brian Kingston Mr James Mullan ARGYLE BUSINESS CENTRE TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 Mr David Sims Mr Wlliam Ellison Lord Reg Empey Mrs Marie Hamill Pastor Stephen Reynolds Ms Michelle Manwaring Ms Lisa Byme Mr John Simpson Mr W G McAllister (Resigned 24 July 2023) (Resigned 27 March 2023) (Appointed 24 January 2024) Under the requirements of the Memorandum and Articles of Associatlon the directors, subject to artide 38, hold office until the next Annual General Meeting and are eligible for re-election. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up. The directors of the company are also charity trustees for the purposes of charity law. Under the requirements of the Memorandum and Articles of Association the directors, subject to Article 38, hold office until the next annual general meeting and are eligible for re-election. Individuals are invited to serve as directors on the basis of their abilltles and background so as to achieve a balance betsveen those from the business, voluntary and charity sectors. Most directors are already aware of the activities of the charity prior to appointment. INhen invited to serve they are provided with the charity's objectives and its day to day operations. At present Argyle Business Centre has a Board of Directors of 9 members who meet regularfy and are responsible for the strategic direction and policy of the charity. From the Board of Directors there are fomied occasional sub-committee or working groups, who work on the policies and structures within the organisation, and also on particular projects to expand the facilities and scope of Argyle Business Centre. The director's review major risks to the company on an ongoing basis. Where approprlate, systems or procedures have been established to mitigate the risks the charity faces. Intemal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers, clients and visitors to the premises. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity. The trustl s, /epért was approved by the Board of Trustees. Mr William Ellison Trustee ARGYLE BUSINESS CENTRE INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ARGYLE BUSINESS CENTRE We report on the accounts of the charity for the year ended 31 December 2023, which are set out on pages 5 to 15. Respectlve responsibllltles of trustees and examlner As the charity trustees land also its directors for the purposes of company law), you are responsible for the preparation of the accounts in accordance wilh the requirements of the Companies Act 2006 (the 2006 Act). We are satisfied that the accounts of the charity are not requlred to be audited under Part 16 of the 2006 Act and are eligible fof independent examlnation. we report in respect of our examination of the charily's accounts carried out under section 65 of the Charities Act. In carrying out our examination we have followed all the applicable Directions given by the Charity Commission for Northern Ireland under section 65(9)(b) of the Charities Act. Basls of Independent examiner's report We are satisfied that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination. we report in respect of our examination of the charity's accounts carried out under section 85 of the Charities Act. In carrying out our examination we have followed all the applicable Dlrections given by the Charity Commisslon for Northern Ireland under section 65(9) (211) (34,286) 632 34,286 704,041 229,112 (41,831) 891,522 34,286 {71,596) 854,222 The SIF funding relates to costs associated with phase 3 of the development. The associated costs have been capitalised and the depreciation on the asset will be charged against this fund. 16 Unrestrfctod funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. At31 December 2023 At 1 January 2023 Incomlng resources Resources expended General funds 1,670,547 368,570 (340,431) 1,698,686 14- ARGYLE BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 15 Unrestrlcted funds (Contlnued Previous year: At 1 January 2022 Incoming resourGe8 Resources expended At31 December 2022 General funds 1,631,185 333,529 (294,417) 1,670,297 16 Analys18 of net assets between funds Unfestrlcted funds 2023 Restrlcted funds 2023 Total 2023 Fund balances at 31 December 2023 are represented by: Tangible assets Investments Current assetsllliabilities) 1,265,114 853,922 2,119,036 433,571 300 433,871 1,898,686 854,222 2,552,908 Unrostrlcted funds 2022 Restrlcted funds 2022 Total 2022 Fund balances at 31 December 2022 are represented by: Tangible assets Investments Current assetsllllabilities) 1,133,993 891,222 2,025,215 536,303 300 536,803 1,870,297 891,522 2,561,819 17 Ralated party transactlons There were no disclosable related party transactions during the year (2022 - none). 18 Subsldlarles Details of the charity's subsidiaries at 31 December 2023 are as follows: Name of undertaklng Reglstered office Nature of business Class of Yo Held Shares held Direct Indlrect Argyle Business Trust Northern Ireland Domiant Ordinary 100.00 15-