REGISTERED NUMBER: |
SAATCHI GALLERY, LONDON LIMITED |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
REGISTERED NUMBER: |
SAATCHI GALLERY, LONDON LIMITED |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
SAATCHI GALLERY, LONDON LIMITED (REGISTERED NUMBER: 11712394) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
SAATCHI GALLERY, LONDON LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Second Floor |
34 Lime Street |
London |
EC3M 7AT |
SAATCHI GALLERY, LONDON LIMITED (REGISTERED NUMBER: 11712394) |
BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
) |
CREDITORS |
Amounts falling due after more than one year | 8 |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 10 |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered. |
The financial statements were approved by the director and authorised for issue on |
SAATCHI GALLERY, LONDON LIMITED (REGISTERED NUMBER: 11712394) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Saatchi Gallery, London Limited is a |
The financial statements are presented in Pound Sterling (£) which is the functional currency of the company and rounded to the nearest £. |
The significant accounting policies applied in the preparation of these financial statements are set out below.These policies have been consistently applied to all years presented unless otherwise stated. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
At the year end the company had net liabilities of £1,610,935 (2022: £2,432,835). As expected, the company has performed well despite the overall economic challenges that face the industry as a whole. The company continues to reduce its deficit, from £2,432,835 in 2022 to £1,610,935 in 2023. Visitor numbers started strongly with the blockbuster 'Beyond The Streets' exhibition but declined in the latter part of the year as the cost of living crisis continued to hit disposable income. Of particular note is the decline in partnerships income which is an industry wide issue but particularly effected the later part of the year. Partnerships revenue plays a key aspect in the quality of exhibitions the organisation can hold, this in turn has an impact on visitor numbers, ticket sales, retail revenue etc. As such, in 2024 and 2025, a special emphasis has, and will, be placed on recruiting a team that can drive this key revenue line. In addition, costs will be carefully considered and adjusted to suit the lower revenue projections from our partnerships team. Saatchi Gallery continues to have strong support from its key stakeholders, including those that form the bulk of the costs for the organisation, and is in regular contact with those stakeholders to discuss any issues the organisation may face. |
Moving into 2024 and 2025, Saatchi Gallery has a wide range of outstanding exhibitions to be held which will, we hope, achieve both commercial and critical success. |
Based on the factors referred to above, the director has reasonable expectation that the gallery will continue to operate for the foreseeable future and at least twelve months from the date of approval of these financial statements. As a result, the financial statements have been prepared on a going concern basis. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Accounting estimates and assumptions |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below. |
(a) Useful economic lives of assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets. |
(b) Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
SAATCHI GALLERY, LONDON LIMITED (REGISTERED NUMBER: 11712394) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover represents income from sponsorships, events, ticket sales, and sales of books and merchandise. Sponsorship income is recognised on a straight line basis over the length of the contract to reflect the services provided. Events income is recognised on the date the event takes place. Sales of tickets, books, and merchandise are recognised when the goods are provided to the buyer to reflect the transfer of the significant risks and rewards of ownership. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Long leasehold | - |
Fixtures and fittings | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
SAATCHI GALLERY, LONDON LIMITED (REGISTERED NUMBER: 11712394) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets |
Basic financial assets, including trade and other debtors, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the assets expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Financial liabilities |
Basic financial liabilities, including trade and other creditors are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 |
AMORTISATION |
At 1st January 2023 |
Charge for year |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
SAATCHI GALLERY, LONDON LIMITED (REGISTERED NUMBER: 11712394) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
5. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
Additions |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Taxation and social security |
Other creditors |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Other creditors |
Other creditors less than one year and more than one year include balance owed of £4,834,379 in respect of rent arrears. This amount is being repaid through monthly repayments in the value of 12% of the company's turnover. |
SAATCHI GALLERY, LONDON LIMITED (REGISTERED NUMBER: 11712394) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
9. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
10. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 1 | 1 |
11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
The company has made a profit for the year ended 31 December 2023 of £821,900. The net liabilities position at the balance sheet date is £1,610,935 (2022: £2,432,835 ). The company has put measures in place to cut costs and drive revenue and has continued to reduce its deficit from £2,432,835 in 2022 to £1,610,935 in 2023. |
The company will continue to need support from its key stakeholders, including those that form the majority of the costs for the organisation. |
These factors, together with the other matters referred to in note 1 to the financial statements, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
12. | CAPITAL COMMITMENTS |
At the Balance Sheet date, the company had capital commitments relating to property improvement work which was completed in 2024. These commitments were contracted for but not yet incurred as of 31 December 2023. The amount incurred and settled post Balance Sheet date was £168,382. |
13. | RELATED PARTY DISCLOSURES |
During the year, the company made payments of £217,008 (2022: £177,750) to Jet Support Services Limited, a company involved in some aspects of providing management and oversight services to the parent company, The Saatchi Gallery, London, a charity registered in England and Wales. |
The total amount of key management personnel benefits received by key management personnel for their services was £140,000 (2022: £122,500). |
SAATCHI GALLERY, LONDON LIMITED (REGISTERED NUMBER: 11712394) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
14. | ULTIMATE PARENT COMPANY |
Saatchi Gallery, London Limited is a wholly-owned subsidiary of The Saatchi Gallery, London, a charity registered in England and Wales. |
The charity's registered office address is The Saatchi Gallery, Duke of York's HQ, King's Road, London, SW3 4RY. |
15. | POST BALANCE SHEET |
No other matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations or the state of affairs of the company and its subsidiary company in the financial year subsequent to the financial year ended 31st December 2023. |