The Board of Trustees, who are the Directors of the British Music Experience (“the Charity”), present their report for the year ended 30 April 2024 under the Companies Act 2006 and the Charities Act 2011, together with the financial statements for the year. Comparatives are for the year ended 30 April 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Reference and Administrative Details
The charity is a registered charity (No. 1125752) and a registered company (No. 06364836) limited by guarantee and registered under the laws of England and Wales. Its registered office is as shown on the legal and administrative information page. As a registered company the Charity’s accounts are filed with the Registrar of Companies.
The present Trustees, who are the Directors of the Charity for Companies Act Purposes, are listed on the legal and administrative information page. The Charity carries out charitable activities in accordance with its stated objective. The liability of each of the Charity’s members is limited to an amount no greater than £1. If the Charity is wound up or dissolved and there remains any property, it shall not be paid to or distributed among members of the Charity, but shall be given or transferred to some other charity or charities having objects similar to the Objects of the Charity.
The purposes of the Charity are to advance the education of the public in the history, science and culture of British popular music from its origins to the present day by the:
Presentation of interactive learning displays and exhibitions, public events and concerts;
Acquisition (whether on loan, or lease, or by way of gift, purchase, recovery or otherwise), preservation, maintenance and exhibition of any artistic works, instruments, papers, interviews or artefacts;
Provision of research, sound recording, performance and archiving facilities; and
Such other charitable purposes under the law of England and Wales as the Trustees shall decide from time to time.
The Charity’s objectives are pursued primarily by the operation of an interactive exhibition known as the British Music Experience (the “Museum”).
The Charity is governed by a Memorandum and Articles of Association, which were originally adopted on 7th September 2007. The Memorandum and Articles of Association were amended on 1st September 2009 and 19th October 2015 under resolution.
Trustees are appointed in accordance with the Articles of Association of the Charity. The Trustees were selected foremost because of their charity and British music industry expertise, but also because of their knowledge of how music can benefit the public. The Trustees are familiar with the practical work of the Charity and many of them have been involved with BME since its inception. Trustees are encouraged to familiarise themselves with the Charity and the context within which it operates, as well as receiving guidance on their responsibilities as Trustees. The Trustees are also directed to the Charity Commission guide ‘the Essential Trustee’.
New trustees undergo an orientation meeting with the Chair and Principal Officers to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity. Trustees are encouraged to keep fully up to date with Charity Commission best practice.
Group Structure
The British Music Experience group consists of one legal entity:
The British Music Experience, which is a registered charity in England and a company incorporated under the laws of England and Wales.
Risk Management
The Charity uses a risk management process to assess business risks and implement risk management strategies.
The risk assessment is carried out at regular Operations meetings of management as well as at Trustee meetings and involves identifying the types of risks the Charity faces, prioritising them in terms of potential effect and likelihood of occurrence and identifying means of mitigating them. As part of this process, the adequacy of the Charity’s current internal controls is also reviewed. Procedures have been established for reporting failings immediately to appropriate levels of management and, where applicable, to the Trustees.
After reviewing the risks to the Charity at the year end, the Trustees concluded the Charity has taken all prudent and reasonable steps to minimise the overall risks to the organisation; that the current policies and procedures governing risk management are appropriate; and that the system of internal checks and balances they have put in place serves to safeguard the Charity sufficiently against the risks it might face.
The main objectives outlined in the previous reporting period were primarily objectives to increase footfall, agree the lease renewal with LCC and to implement a systematic technology improvement to the Museum’s interactive offering and continue to grow the Collection.
The Museum
The Charity’s primary charitable objective is the presentation and display of the British Music Experience’s collection of objects, instruments, stage outfits and digital archive charting the history of popular music from 1945 to present day. During the reporting period, BME was able to operate a normal seasonal opening schedule for the entire period.
Museum footfall during the reporting period was 52,046 (45,489 in 2023) comprised of a mix of domestic tourists, international tourists, individuals and families. The footfall figure represents a 14% increase year on year. The Museum saw a partial recovery in group visitation as well as cruise ships returning to dock at the same frequency as the pre-Covid period.
Social media commentary, press reviews and visitor feedback remained excellent with consistent reference made to the excellent staff interaction with 4.5* - 5* reviews achieved across our three visitor feedback platforms. BME received its seventh consecutive Trip Advisor Certificate of Excellence.
Operations
BME had previously introduced the 12-month unlimited entry model which has been continued and has widely been praised by visitors, especially local residents as excellent value. The admissions model has benefited BME by allowing the organisation to better achieve its charitable objectives by increasing the accessibility to local residents or any visitor who can now return and learn about the collection and content as many times as they would like across a 12-month period. BME further benefits by receiving 25p for each £1 which has created an important revenue stream to support the organisational resilience and content growth and development. To further develop this element the Museum introduced Gift Aid declarations online at the point of ticket sales. This was supplemented with ongoing staff training and daily reporting on Gift Aid declarations. These adjustments have resulted in a 26% increase in Gift Aid revenues in 2024 over revenues received in 2023.
The Museum carefully adjusted its ticketing strategy during the reporting period to an online lead adult ticket price of £17 and a walk-up price of £19. We continued the online discount and in-venue pricing to encourage pre-booking and improve accessibility for those who seek out a lesser ticket price. The ticket strategy along with the increase in annual footfall saw a 32% increase in general admission revenue.
BME sustained its partnership with the organisations Strawberry Fields, Steps to Work Programme. In the reporting period have placed one individual with disabilities into supported work experience. After 6 months in the supported placement, the individual is now employed at the Museum part-time.
Temporary Exhibitions, Acquisitions and Loans
The Museum updated its interactive called Atlantic Crossing. Additionally, BME introduced the audio guide feature through Spotify allowing visitors to listen to a guided tour free of charge on their own devices. BME applied to the V&A for a long-term loan of a stage worn Mick Jagger jumpsuit to go on display with a number of other loans sought for this show case.
There were two temporary exhibitions hosted in the reporting period. Firstly, Epiphone 150: Featuring the Guitars of Noel Gallagher. The exhibition looked at the history of oldest guitar brand, Epiphone as it celebrated its 150th anniversary and why artists today still like the guitar. Our second temporary exhibition was Girl Power! Spice Girls at 30 which looked at the rise of the beloved girl group the Spice Girls through the collection of superfan Liz West.
The temporary exhibitions are free with general admissions.
Education Programme
The Education programme experienced a small increase in visitation. BME welcomed 2,792 (2,549 in 2023) students on school field trips in the period.
Public Programmes
The Museum’s roster of Public Programmes aims to complement the Museum, Temporary Exhibitions, the Education Programme and seasonal/local events. In 2024 we welcomed 1,590 attendees (1,393 in 2023) to our programmes.
The Gibson Brand Interactive Studio
The Gibson Studio continues to be one of the most popular parts of the BME. It provides interactive tutorials from beginning, intermediate and advanced skill levels. The studio offers a range of high-end Gibson guitars (electric and acoustic), bass guitars, drums, keyboards and a vocal booth. Staffed with a musician, the studio offers a music-making experience to all its visitors. The Museum’s partnership with Gibson continued to develop with maintained and new instruments added especially around the temporary exhibition celebrating Epiphone. However, since the reporting period, BME is no longer exclusively stocking Gibson instruments in the studio and will be de-branding the space in order to stock a better variety of instruments for visitors to enjoy.
Objectives
The Charity’s objectives over the next reporting period from 01 May 2024 to 30 April 2025 are formulated recognising the sector has mostly recovered from Covid 19. The objectives include:
Increase general admission revenue by a minimum of 6%
Finalise Lease Renewal
Programme of interactive updates and projector replacements
To develop and further the acquisition of content, objects and artefacts to place on display
Improve accessibility for more audiences and allow more people access to heritage assets.
To measure success, the Trustees will set the following KPI’s:
Increase footfall to with a target of 55,168 by the end of the reporting period
Increase the in-venue lead ticket price to £20, maintain online ticket price at £17.
Curate and install at least one temporary exhibition
Install a new vocal booth, new projectors, a new showcase.
Hire a new management position focussing on Curation and Collections
Launch a new volunteer programme
Completed Lease Agreement
At the point in time of approval of this report, the Trustees are of the opinion that the Charity will be able to meet any current and future obligations as they fall due for at least twelve months from the date of approval of these financial statements. These financial statements have therefore been prepared on a going concern basis.
Creditor payment policy
The Charity’s policy, in relation to all its suppliers, is to settle the terms of payment when agreeing the terms of the transaction and to abide by those terms provided that it is satisfied that the supplier has provided the goods or services in accordance with the agreed terms and conditions. The Charity does not follow any code or standard on payment practice.
Employees
Applications for employment of disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of staff becoming disabled, every effort is made to ensure that their employment with the company continues and that appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.
The charity places considerable value on the involvement of its employees and has continued its practice of keeping them informed of matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings. Employees are consulted regularly on a wide range of matters affecting their current and future interests.
The Statement on Financial Activities set out on page 8, shows the following results for the year.
Income Generation
Income generated by the Charity during the year ended 30 April 2024 was £984,180 (2023: £775,014).
Resources Expended
Total resources expended by the Charity during the year ended 30 April 2024 amounted to £963,165 (2023: £865,469).
Reserves
The Trustees do not have a formal reserves policy at this time. The total reserves of the Charity were £332,922 (2023: £311,907) at the end of the year. The reserves held by the Charity are for the purposes of supporting the Museum in meeting its operational needs, updated content and providing a cash flow reserve for operating expenses.
Public Benefit Declaration
The Trustees confirm that they have had regard to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and setting goals for the year.
In particular, those benefitting from the Charity’s work are:
The general visiting public – all those for whom the overall history and specific examples of British popular music are of interest and/or educational value;
Those in formal education and their teacher(s)
Artists and others working in the music industry
The local community – particularly disadvantaged young people
Young professionals and higher education students who participate in internships and work experience opportunities
International tourists who learn about the UK through Popular Music
The staff of the Museum and the wider opportunities in the arts and cultural sector BME’s employment offers.
In response to the needs of these groups we have developed the education and public programmes both of which foster links with the music, education and museum sectors, inspiring interest and engagement with the industry.
The trustees' report was approved by the Board of Trustees.
The Trustees, who are also the directors of The British Music Experience for the purpose of company law, are responsible for preparing the Trustees' 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 which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report to the Trustees on my examination of the financial statements of The British Music Experience (the Charity) for the year ended 30 April 2024.
As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The British Music Experience is a registered charity and private company limited by guarantee incorporated in England and Wales. The registered office is One Bartholomew Close, London, EC1A 7BL.
The financial statements have been prepared in accordance with the Charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The lease renewal process is ongoing with agreed heads of terms. The Trustees are confident that this will be completed in 2025, and the expected lease costs have been factored into the 2025-26 budget. The Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Income from government grants and contracts is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants and contracts have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income from ticketing sales and events is recognised at the fair value of the consideration received or receivable and is shown net of VAT.
Income from catering and retail represents the value of goods sold net of VAT.
Liabilities are recognised as expenditure once there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated to the charitable activity in the statement of financial activities.
Governance costs include those costs incurred in the governance of the charity's assets and are primarily associated with constitutional and statutory requirements.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:
Heritage assets, primarily the music related exhibitions, are not included in the accounts of The British Music Experience at any value. This is in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), which specifies that assets held in furtherance of the objects of the charity for long term preservation and for which reliable cost information is not available and conventional valuation approaches lack sufficient reliability, can be excluded from the balance sheet.
At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Stocks are stated at the lower of cost and estimated selling price less costs to sell.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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 classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The trustees do not believe there to be any judgements or estimates that would be considered critical to the financial statements.
Café income
Shop income
Raising funds
Trading costs
Event expenses
Trading costs
Storage
Exhibition costs
Income consultancy expenses
Advertising and promotional
Credit card charges
E Koravos, the Executive Director of the charity, was appointed as a Trustee in January 2022. Remuneration as a Trustee was £36,135 (2023: £35,440).
None of the other Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The bank loan is unsecured and is on a term of 6 years, repayable in monthly instalments from November 2021. Interest is at a fixed rate of 2.5%.
At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: