Creative United Annual Impact Report 2015/16

2015/2016

Annual Impact Report w w w.cre at i v euni t ed.org.uk

Photo courtesy of Kate Thornton

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Our Vision: To build a sustainable and resilient creative economy; and to make the arts accessible for all.

Our Mission: To provide a range of financial products and services designed to enable the growth and development of the UK’s cultural and creative industries Photo by Ed Sykes at the Bankside Gallery Creative United Annual IMPACT Report 2015/2016

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Contents 1. Our network

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2. Creative United and our impact

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2.1 Chairman’s introduction

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2.2 Executive Summary

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2.3 Our impact

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3. Our programmes

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3.1 Creative Industry Finance

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3.1.1 International partnership: Creative Enterprise Skills Exchange

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3.2 Own Art

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3.3 Take it away

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3.4 ArtsCard pilot project

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4. Concluding remarks

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5. Abbreviated accounts

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1. Our Network lending and credit partners

funders

business beneficiarieS

individual beneficiaries

creative united staff and board members

industry partners

international connections

Creative United Annual IMPACT Report 2015/2016

REGIONAL PARTNERS

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FUNders

lending and credit partners

Arts Council England Arts Council of Northern Ireland British Council Creative Scotland MAYOR OF LONDON

Arts Impact Fund Big Issue Invest Fredericks Foundation Hitachi Capital Consumer Finance London Small Business Centre RateSetter Responsible Finance THE Key Fund Triodos Bank V12 Retail Finance

business beneficiarieS Artist Studios and Workspaces Arts Organisations Contemporary Art Galleries Creative Businesses High Street Music Retailers MUSIC VENUES

individual beneficiaries artscard members creative industry finance clients own art customers take it away customers

staff and board members board of directors expert partners freelance business advisors staff team

industry partners

international connections Beijing Institute of Culture Innovation and Communication (China) Positive Solutions (Australia) HEVA FUND (KENYA) Community Arts Stabilisation Trust (USA)

REGIONAL PARTNERS BRISTOL MEDIA COVENTRY UNIVERSITY CREATIVE NETWORK SOUTH STOKE CITY COUNCIL 05

ABO (ASSOCIATION OF BRITISH ORCHESTRAS) AIF (ASSOCIATION OF INDEPENDENT FESTIVALS) AIM (ASSOCIATION OF INDEPENDENT MUSIC) ATTITUDE IS EVERYTHING BORN BPI (BRITISH PHONOGRAPHIC INDUSTRY) CRAFTS COUNCIL DESIGN COUNCIL ITC (INDEPENDENT THEATRE COUNCIL) MIA (MUSIC INDUSTRIES ASSOCIATION) MUSIC VENUE TRUST ONE DANCE UK PACT (PRODUCERS ALLIANCE FOR CINEMA AND TELEVISION) THEATRES TRUST UKFT (UK FASHION AND TEXTILES) UKIE (UK INTERACTIVE ENTERTAINMENT)

2. Creative United and Our Impact 2.1 Chairman’s Introduction Creative United was established as a Community Interest Company in 2012 with a mission to support the growth and sustainability of the UK’s arts and creative industries, making the arts accessible to all.

We started trading as a business in May 2013, and three and half years later our optimism with regard to the social and economic impact of our unique suite of programme activities, products and services is stronger than ever. The targets we set ourselves at the start of the year for our social and economic impact were surpassed with increased beneficiaries.

During the year, we supported 185 arts organisations and creative enterprises on our Creative Industry Finance programme, enabling them to develop and grow through the provision of specialist business advice and access to finance. A further 472 businesses in the visual arts and music retail sectors have been supported as members of our consumer credit schemes (Own Art and Take it away), generating an estimated £7.4m of incremental sales value for these enterprises.

We extended the scope of our services with the development and launch of ArtsCard, our new arts focused employee benefits programme, and piloted this in partnership with 52 organisations including theatres, cinemas, museums and arts centres across London and the South East.

We are delighted to report that this year more than 14,500 individuals across the UK have directly benefitted from our services. This includes an estimated 4,000

artists whose work has been sold under the Own Art scheme, as well as the 10,500 customers who have applied successfully for an Own Art or Take it away loan to help them finance the purchase of a work of art or musical instrument that they might otherwise have been unable to afford.

Creative United’s commitment to supporting the development of the sector has also been made real through an active role in research and knowledge sharing. In January 2016, in partnership with ArtTactic, we published our report on the UK contemporary art market. Following this, we initiated a research study looking at potential funding and finance solutions to ensure the provision of affordable studio space in a rapidly rising property market (published August 2016).

The findings and recommendations in these reports are being shared widely across the sector, and we hope will be influential in guiding policy development and investment into the arts and creative industries.

We are extremely grateful to Arts Council England for their continued support as our principle funder, and to Creative Scotland, the British Council and the Arts Council of Northern Ireland for supporting the development and delivery of our programmes and projects outside England.

David Gilbert Chairman “The targets we set for ourselves at the start of the year for our social and economic impact were surpassed with increased number of beneficiaries.”

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During the year we continued to focus on improving productivity and the market testing of new business streams to establish the optimum cost and income base for our business as a sustainable social enterprise.

All of our activities are conceived with the aim of enhancing our economic and social impact. As such, our approach for all of our schemes is to consider the type and balance of impacts being delivered at what cost and/or profit. These impacts are diverse, from the provision of first musical instruments to families on lower incomes, to helping arts organisations access the finance they need to support their plans for growth and development.

During the year, we invested in the development and testing of a number of new schemes that have the potential to deliver a combination of social and economic benefits. Significantly, this has included the

Our board: David Gilbert Chairman

Mary-Alice Stack Chief executive

Sarah Forster

Dr. Nick Henry

Fergus McNeill

Hilary Carty

Rikesh Shah

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market research, design and technical development of ‘ArtsCard’, an app-based marketing platform designed to increase access to and engagement in arts, culture and creativity as an employee benefit. This programme was launched in pilot phase in the autumn of 2015 in partnership with six major employers from across the public and private sectors.

We look forward to continuing to work in collaboration with our partners across the UK and internationally to take these and other initiatives forward successfully in the year ahead.

2.2 executive summary With our small and dedicated team, this report shows that throughout the year in review Creative United continued to deliver high quality and impactful programmes that benefit the diverse communities we serve across the UK. The Creative Industry Finance (CIF) programme supported 185 creative enterprises and enabled 22 of these to successfully secure a business development loan from one of our lending partners. As well as the clear economic benefit this has for these specific businesses, social impacts were also measured across all those that received the one-to-one business support – from improved confidence in business skills to job creation. Independent analysis of our data shows that for every £1 invested in business support, over £5 was generated in Social Return on Investment.

We were also delighted to have the opportunity to extend the value of our CIF programme beyond the UK by working in partnership with the HEVA Fund in Nairobi (Kenya) on a Creative Enterprise Skills Exchange, funded and supported by the British Council.

This provided a unique and enriching professional development opportunity and promoted cross-cultural knowledge sharing and collaboration.

Own Art continued its mission to enable more people to purchase contemporary arts and crafts, removing the financial barriers and generating incremental income for galleries, strengthening the overall arts economy.

Showing consistency from the previous year, 83% of Own Art customers told us they would not have been able to make their art purchase without the scheme.

That equates to around £3.5m of sales that wouldn’t have happened without us. Furthermore, we have increased the new and younger (35 and under) customer base using Own Art from 26% to 30%.

The introduction of two new products to the Own Art family (Own Art Plus and Own Art Twenty) has begun to provide more sustainable income into our business, and further stimulate the market for high quality contemporary art and craft.

Take it away generated an increase in the total value of loans for musical instruments for children and young people by £200k to £4.5m. Another increase from last year is in the percentage of people using the scheme to purchase instruments for children, up from 54% to 65%. We have also seen more of our customers pursue music as performers, with 73% saying they’re more likely to play to an audience with their new instrument.

The scheme has also proved invaluable to music retailers with an increase from 34% to 41% who have reported incremental sales income of at least £11k, delivering impacts for the high street as well as access to affordable musical instruments.

In addition to this, and inspired by the individual and social benefits of participating in arts and culture, we are proud to have innovated a brand new product within the employee benefits market. ArtsCard, the UK’s first employee benefits programme for focus exclusively on arts, culture and creativity, successfully launched in pilot phase in December 2015 in London and the South East. Early indications show significant potential for the further development of this programme which we hope to achieve in partnership with others.

Mary-Alice Stack Chief Executive “…inspired by the individual and social benefits of participating in arts and culture…”

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2.3 Our Impact What we do: Creative United provides a range of innovative finance products and services which support the development and growth of the UK’s cultural and creative industries.

Partnering with public funders and commercial organisations, Creative United remains committed to drive programmes which deliver financial returns for the businesses we work with and achieve meaningful social impact.

Our community of stakeholders includes creative businesses, social enterprises, charitable and other not-for-profit organisations operating within the wider arts and creative industries.

Our programmes of work are: Cr e at i v e Indu s t ry F in a nce – bu sines s s up p or t a nd ac ces s t o f in a nce for cre at i v e en t erp rises Fyodor Golan

Ow n A r t – in t eres t f r ee l oa ns for t he p urch ase of c on t emp or a ry a r t a nd cr a f t Harley Gallery

Ta k e i t away – in t er es t f ree l oa ns for t he p urch ase of mu sica l ins t rumen t s Photo by Alan Fletcher

Pilot project: A r t s C a r d – T he UK’S f irs t emp l oy ee benef i t s s cheme t o focu s e xclusi v ely on a r t s, cult ure a nd cre at i v i t y 09

Our Economic Impact in Numbers: Through our activities we support a diverse range of cultural and creative businesses and organisations to develop and grow.

I n 2 015/16, t h r o u g h i n v e s t i n g

£1.4 M

o f g r a n t i n c o m e f r o m o u r f u n d e r s w e fa c i l i tat e d o v e r

10,500 i n t e r e s t f r e e l o a n s e n a b l i n g t h e p u r c h a s e o f n e a r ly £8.8 M w o r t h o f c o n t e m p o r a ry w o r ks o f a r t a n d m u s i c a l i n s t r u m e n t s f r o m o u r r e ta i l n e t w o r k a c r o s s E n g l a n d, S c o t l a n d * a n d N o r t h e r n I r e l a n d .

1,200 h o u r s o f e x p e r t 1:1 b u s i n e s s a d v i c e t o 185 c r e at i v e a n d c u lt u r a l c o m pa n i e s a c r o s s t h e l e n g t h a n d b r e a d t h o f E n g l a n d, w i t h 22 b u s i n e s s e s a c c e s s i n g f i n a n c e t o ta l l i n g o v e r £350k We provided over

.

w e g r e w t h e m a r k e t f o r c o n t e m p o r a ry a r t, w i t h work of art for the first time;

23% o f O w n A r t c u s t o m e r s p u r c h a s i n g a c o n t e m p o r a ry

26% o f Ta k e i t away c u s t o m e r s u s e d t h e s c h e m e t o b u y a m u s i c a l i n s t r u m e n t

for the first time.

472 m e m b e r g a l l e r i e s a n d m u s i c r e ta i l e r s r e p o r t e d i n c r e a s e d c o n s u m e r i n t e r e s t t h r o u g h o u r s c h e m e s , a n d 35% e x p e r i e n c e d i n c r e m e n ta l s a l e s o f at l e a s t £11,000 A r o u n d t h r e e- q u a r t e r s o f o u r

t o t h e i r b u s i n e s s i n 2 015/2 016 .

I n 2 015/16, f o r e v e ry

£1 i n v e s t e d i n 1:1 b u s i n e s s s u p p o r t f o r c r e at i v e a n d c u lt u r a l e n t e r p r i s e s ,

£2 wa s a c c e s s e d i n l o a n f i n a n c e .

O f t h o s e C r e at i v e I n d u s t ry F i n a n c e b u s i n e s s e s t h at w e o f f e r e d 1:1 s u p p o r t t o,

83% h av e i m p r o v e d o r

s t r e n g t h e n e d t h e i r c o m pa n y ’ s c o m m e r c i a l p o t e n t i a l a n d i n c o m e g e n e r at i n g c a pa b i l i t i e s . *Ta k e i t away i s n o t ava i l a b l e i n S c o t l a n d . *TA K E I T AWAY I S N O T AVA I L A B L E I N S C O T L A N D

“Own Art is essential if we are to offer ordinary people the chance to own and appreciate the joy of owning original pieces of art. It is also crucial for the support and encouragement of new artists. It makes you purchase items that you maybe otherwise would consider too luxurious to buy.”

Own Art Customer Creative United Annual IMPACT Report 2015/2016

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Our Social Impact in Numbers: Through our activities, we are making the arts more accessible to a wide audience.

Alongside our support for a sustainable and diverse cultural and creative economy, we are removing financial barriers to owning contemporary art and musical instruments.

L at e s t d ata f r o m t h e C r e at i v e I n d u s t ry F i n a n c e p r o g r a m m e h a s s h o w n t h at f o r e v e ry business advice,

£1 i n v e s t e d i n 1:1

£5.22 wa s g e n e r at e d i n S o c i a l R e t u r n o n I n v e s t m e n t ( S R O I ).

O f t h e l o a n s m a d e u s i n g Ta k e i t away,

65% ( a n i n c r e a s e o f 8 % f r o m l a s t y e a r ) w e r e u s e d t o p u r c h a s e

a n i n s t r u m e n t f o r a c h i l d o r yo u n g p e r s o n u n d e r t h e a g e o f 18 .

I m p o r ta n t ly,

82% o f O w n A r t c u s t o m e r s a n d 79% o f Ta k e i t away c u s t o m e r s s tat e d t h at o u r

s c h e m e s m a d e t h e i r p u r c h a s e o f a c o n t e m p o r a ry w o r k o f a r t o r m u s i c a l i n s t r u m e n t p o s s i b l e .

C r e at i v e I n d u s t ry F i n a n c e h a s p r o v i d e d o p p o r t u n i t i e s t o l o w i n c o m e e n t r e p r e n e u r s w h o a r e g r o w i n g t h e i r businesses.

30%

o f a p p l i c a n t s s tat e d t h e y c u r r e n t ly e a r n e d l e s s t h a n

£15 k ,

c o m pa r e d t o

n at i o n a l ly w h e r e 10 % a r e w i t h i n t h i s e a r n i n g s b r a c k e t*.

C u r r e n t ly j u s t o v e r

1 4% ( u p 3 % f r o m l a s t y e a r ) o f Ta k e I t Away c u s t o m e r s a n d 5% o f O w n A r t

c u s t o m e r s c o m e f r o m B M E b a c kg r o u n d s .

11% o f j o b s i n t h e c r e at i v e e c o n o m y a r e f i l l e d by B M E w o r k e r s . C r e at i v e I n d u s t ry F i n a n c e h a s e n g a g e d w i t h a g r e at e r p e r c e n ta g e o f B M E c r e at i v e e n t r e p r e n e u r s - 24% R e s e a r c h h a s s h o w n t h at

d e m o n s t r at i n g i t s d i v e r s e r e a c h .

I n t o ta l

24% o f O w n A r t c u s t o m e r s a n d 54% o f Ta k e i t away c u s t o m e r s i n t h e l a s t y e a r e a r n e d

l e s s t h a n t h e n at i o n a l av e r a g e i n c o m e o f £ 2 5, 0 0 0 p e r a n n u m *. *A C C O R D I N G T O T H E O F F I C E O F N AT I O N A L S TAT I S T I C S

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“The support we had from our Business Advisor Remi was invaluable; she gave us some great guidance… It was a proud day when we told her our business had been approved for a loan.”

Creative Industry Finance Client

Kuona Trust, Nairobi, Kenya

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3. Our Programmes 3.1 CREATIVE INDUSTRY FINANCE The Creative Industry Finance programme (CIF) enables the growth and development of creative and cultural enterprises, unlocking the routes to viable business models and loan finance for entrepreneurs and organisations.

Since its launch in September 2014 CIF has provided free, one-to-one business advice and guidance to companies across England, large and small, from a range of creative sectors.

Business support for creative sectors delivered across the country In the financial year 2015/16 we invested over £170,000 in business support ranging from expert-led workshops, webinars and masterclasses to 1:1 advice. As a result of this support 22 creative enterprises applied and got approved for loan finance totalling over £350,000.

Around 51% of our supported businesses were based in London, and 49% from the England regions. This indicates a broader reach for the programme in

2015/16 compared to 2014/15, when only around 30% of supported businesses were based outside London.

Percentage of businesses supported from range of creative sectors included in the programme Architecture

Design

Digital media and web

Fashion

Music

Visual arts and photography

1%

11%

8%

21%

10%

10%

Film, TV and radio

Festivals and events

Performing arts

crafts

Games

Publishing and literature

10%

5%

7%

12%

1%

4%

Compared to the previous financial year, we recorded significant increases for the number of businesses from Music (increase of 5%), Visual Arts and Photography (increase of 4%) and Film, TV and Radio (increase of 3%).

We organised or participated in more than 20 different workshops, conferences, panels and seminars across

the country, reaching an estimated total audience of 600 creative entrepreneurs and arts leaders. Many of these events were promoted in conjunction with regional partners including Coventry University, Bristol Media and Stoke City Council, or industry partners such as Music Venue Trust, Theatres Trust or Crafts Council.

“Creative Industry Finance has been enormously supportive and helpful to me.

Without their help I doubt I would still be in business, let alone growing at the rate I have been.”

Creative Industry Finance Client 13

Supporting the development and growth of creative and cultural enterprises: The Creative Industry Finance programme has been a lifeline to small businesses facing the challenges of cashflow and capacity, whilst offering established arts organisations the expertise to explore alternative finance options for largescale projects. The bespoke mix of one-to-one sessions, workshops and advice surgeries via Creative United’s network of expert freelance business advisors has allowed the supported organisations and enterprises to learn and develop at their own pace, fitting in with their own work demands.

Whether it’s understanding financial documentation, or finding the time and space to evolve ‘big thinking’ into organisational strategy, the outcomes have been transformational for our CIF community. In a recent survey 85.7% of CIF businesses agreed that, following their involvement on the programme, they now had an improved or strengthened strategy for their company, with a clear vision, mission and set of goals. 92.9% told us their business plan was stronger after working with their advisor, while 83.3% had developed a better understanding of their business’s commercial or growth potential.

It’s not just improved business practice and documentation that our supported organisations achieved. One major outcome for the individuals involved was confidence in their own business skills (88.1% agreed) – a legacy they can take with them throughout their professional lives. Also, in a recent study of CIF businesses, it was calculated that for every £1 spent on providing business advice, over £5 was gained in Social Return on Investment (SROI).

Our plans for the future: We are committed to evolving and shaping our business support services for the creative and cultural sectors. From listening, understanding and responding to the very real challenges

facing organisations today, we will continue to offer a range of business development solutions – be it one to one advice, workshops, international collaborations or access to finance – which

will make the difference; the step-change; the springboard to a more resilient and prosperous future for creative and cultural enterprises.

Madia and Matilda

“The programme has been excellent and Nigel Rust (the business advisor) made it so, his support and knowledge have been key to the development of my company. Nigel was always available to answer questions and offer advice and give examples which has made such a difference to me and my company.”

Creative Industry Finance Client Creative United Annual IMPACT Report 2015/2016

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3.1.1 International partnership: Creative Enterprise Skills Exchange In 2015, after connecting with a Kenya based creative business support organisation, HEVA Fund, an opportunity was identified to develop an international exchange project, enabling cross border knowledge sharing, with the aims of: • delivering an enriching and unique business skills and career development opportunity

to Creative Industry Finance supported businesses and HEVA Fund supported creative enterprises; • gaining insights into alternative finance models to develop more funding solutions for

home-grown creative enterprise, and; • increasing the national and international recognition for Creative United’s mission

to support the UK’s creative and cultural industries to grow and become self-sufficient

though exploring new markets and collaboration.

The Creative Enterprise Skills Exchange was devised

by Creative United in partnership with HEVA Fund (Kenya), with funding from the British Council. The first leg of the exchange, between 29 February and 5 March 2016, saw members of the Creative Industry Finance team, two of its business advisors and two of its supported creative business owners travel to Nairobi, Kenya. Whilst there, the delegation met with 6 HEVA Fund-supported creative businesses to learn about

the challenges and successes of growing a company in Kenya, and to share expertise and knowledge. We also delivered 6 talks and workshops, attended by around 80 individuals (business owners and artists) over three days, giving first-hand accounts of running and scaling up a creative business and share skills such as business planning, setting goals and strategies and how to increase profits.

In a survey, our UK creative business delegates strongly agreed that the experience enabled them to learn something new or different about growing their businesses, and all agreed they came away with new ideas for products or services.

Liz Temperley, owner of CIF supported business Blank Inside who joined us in Kenya, said: “It was a deeply rewarding experience not just professionally but personally too. The Kenyans I met had a very refreshing way of looking at business….which was a very welcome lesson! I saw how beneficial being immersed in a different culture can inspire, shake things up in my brain and nurture a desire to travel and experience something new. This will, and actually already has, influenced my work and productivity”.

Ciara McGarrity, owner of Waffle Design, who was also part of our delegation, was keen to collaborate and exchange ideas further. She said: “I really enjoyed meeting our hosts and particularly learning about potential sourcing opportunities in Kenya.”

Katchy Kollections, Kenya.

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3.2 OWN ART Own Art is a consumer credit programme that removes the upfront financial barrier to owning original works of contemporary art by enabling interest free finance for the art buyer. In this way we encourage increased engagement with high quality visual arts for a wide cross section of society.

Customers can apply for a loan up to £2,500 repayable over 10 months with no deposit via one of our member galleries.

Own Art contributes to the UK’s creative economy by enabling visual arts venues and galleries to broaden their audiences and generate incremental income from sales made using the scheme. The wider visual

arts economy also benefits, as Own Art supports contemporary artists by increasing sales of their work across a breadth of practice.

More people engaging in the arts: In the financial year 2015/16, the Own Art scheme provided 4,741 loans totalling over £4.2m in value.

That means that the average value of an Own Art loan was £856, up 8% on the previous year.

We have worked hard with our finance partner Hitachi Capital Consumer Finance to ensure that their credit scoring allows as many people as possible to use the scheme, whilst ensuring that credit is offered to only those who can afford the repayments.

We know that the Own Art scheme plays a crucial role in enabling access to owning original works of art particularly for those earning less than the national average income. From the responses to our end of year survey, 83% of customers told us that the Own Art scheme enabled them to make their purchase. 24% of Own Art customers in the last year earned less than the national average income of £25,000 per annum.

Own Art is helping create new, young and sustainable audiences for the arts sector with 30% of customers in the last year aged 35 and under. In addition, 27% of Own Art customers told us that they bought a work of art for the first time using the scheme and 99% of Own Art customers who used the scheme last year intend to purchase more works in the future.

Own Art encourages many customers to expand their engagement with the arts. 28% of customers told us that they would be more likely to attend an arts based event such as an exhibition or installation in the future having used the scheme.

Supporting and developing the visual arts sector: Own Art is available to all UK residents over the age of 18 through a network of 240 member galleries* across England, Scotland and Northern Ireland offering a range of art, from paintings and prints to sculptures and ceramics. This includes:

13%

Arts Council England National Portfolio Organisations

70%

Commercial galleries

8%

Galleries funded by their Local Authority

13%

OTHER

* note some galleries fall in two or more categories

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All galleries must display and provide evidence of high level of customer service before they are accepted into our scheme.

What our galleries sell and the Percentage that offer this type of artwork paintings

Ceramics

Original Prints

Glassware

Sculpture

Hand Crafted Furniture

Moving Image

82%

75%

81%

54%

72%

20%

7%

Jewellery

New Media

Textiles

Photography

Wood/MetalworK

Drawing

Other

58%

8%

30%

40%

41%

55%

3%

The scheme connects the community with arts venues and galleries near to them. 67% of Own Art customers used the scheme in gallery in their part of the country.

In addition, 37% said that they used the scheme in their town.

Greater income for galleries and artists: Our galleries say that Own Art is helping them make more sales. 28% of our member galleries stated they experienced at least ÂŁ11k worth of incremental sales.

Of those galleries that are publicly funded, 85% experienced incremental sales because of the scheme.

This figure rises to 95% for commercial galleries.

Our plans for the future: With the introduction of Own Art Plus and Own Art Twenty in 2015/16 supporting the core Own Art subsidised product, we will ensure as many people as possible in England, Scotland and Northern Ireland are offered the ability to own a piece of contemporary art via interest free finance. We will continue to work closely

with our network of galleries and our customer base to further develop our reach across our audience including diverse ethnic backgrounds and socio-economic profiles.

sales having a higher price point than that covered through Own Art. This will help those collectors who have outgrown the original scheme and are now looking to invest in and collect higher priced art.

We will also be reaching out to galleries not currently participating in the core scheme due to their

“I think this is a great scheme. I would not have been able to afford the art I have bought without Own Art, and it makes me happy every day. It has brought art into our house and made us go to an art gallery as a family. Thank you very much.�

Own Art Customer 17

3.3 TAKE IT AWAY Take it away enables more children and young people under the age of 26 to own a musical instrument.

The scheme makes purchasing a musical instrument more affordable, particularly for families and young adults on lower incomes, by removing the upfront financial barrier through an interest free finance offer. Customers can apply for a loan through one of our member retailers.

Helping more young people to own a musical instrument: In the 2015/16 financial year, 5,770 loans were made on the Take it away scheme worth a value of over £4.5m. The average value of a Take it away loan was £780, up 2% on the previous year. Of the loans made using the scheme in England, 65% were used to purchase an instrument for a child under the age of 18. The remaining 35% were taken out by young musicians aged 18-25.

Take it away enables people who would otherwise have faced financial barriers to buy a musical instrument affordably. 79% of customers who responded to our end of year evaluation stated that the scheme enabled them to make their purchase. In addition, 54% of Take it away customers in the last year earnt less than the national average income of £25,000 per annum.

Take it away loans are used to support the purchase of a number of instruments, including pianos and keyboards (37% of customers – increased 3% from last year) and guitars (31% of customers – increased 2% from last year). Take it away has made it possible for musicians to own the right instrument for their musical aspirations.

Creative United Annual IMPACT Report 2015/2016

We know the scheme has a lasting impact on our customers’ participation in the arts. A total of 98% (an increase of 20% from last year) said that the recipient of the instrument purchased through the scheme would play music for their own pleasure more. In addition, 73% (an increase of 4% from last year) told us that the recipient would be more likely to play music to an audience.

Take it away contributes to the music retail industry by delivering a competitive interest free consumer credit offer. Our aim is that this creates incremental income and drives customer interest for our member retailers whilst encouraging people to make use of their local music retailer.

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Supporting a network of High Street Music Retailers: Take it away is available to UK residents between the ages of 18-25 purchasing for themselves and customers over the age of 18 purchasing for someone under the age of 18 via 235 high street music retailers in England.

The scheme is also available in Northern Ireland via 6

high street retailers to residents over the age of 18.

Like our Own Art member galleries, Take it away retailers must show a high level of customer service and a broad provision across different instrument types.

Breakdown of our Take it away member retailers

46% 4% 7% 4%

General music outlet

19%

Specialist piano/keyboard outlet

11%

Specialist guitar outlet

9%

other

Specialist woodwind outlet

Specialist percussion outlet Specialist strings outlet

Whilst the Take it away scheme is currently only available through shops in England and Northern Ireland, eligible customers from anywhere in the UK can use the scheme.

Through Take it away, we provide a mechanism to get more customers into high street music shops. 98% of Take it away customers told us that they would consider using the scheme again, and 100% said that they would recommend the scheme to others.

Our member retailers value the Take it away scheme for the business it generates for their shops. From our end of year evaluation, a total of 66% of retailers stated that the scheme was important to them, with 68% stating that the scheme had increased customer interest in their business. 41% (an increase of 7% from last year) stated that the scheme had generated incremental income of at least ÂŁ11k in the last year.

Our plans for the future: Take it away is at an exciting stage of growth and opportunity. The next year will see the team working closely with Music Education Hubs across England to strengthen our ties with music education providers as well as developing the promotion of Take it away as one of the prime methods for assisting people to reach their musical potential.

Going forward, Take it away will continue to support young people from lower income backgrounds across some of the most deprived

areas in the UK, providing access to new instruments and offering Take it away incentives via our strong relationships with partner music organisations.

We will also be working with new industry partners and music events across a range of music genres to place the scheme at the forefront of professional music development, specifically within the 18-25 age bracket. We will expand our network of musical instrument retailers to support specialist

outlets aiming to ensure all instrument types are represented, with a focus on instruments that represent the diverse make up of society and musical traditions from across the world.

It is an aspiration of ours to develop the scheme further and enable more retailers to offer the scheme in other parts of the UK. We will do this by engaging with Creative Scotland, Arts Council of Wales and industry bodies to support this objective.

“A wonderful scheme that helps children and young people get hold of a decent instrument and start their adventures in music. It was a fuss free process, and I would highly recommend it. Thank you!�

Take it away Customer 19

3.4 ARTSCARD PILOT PROJECT In 2015, we invested in the development and launch of a brand new programme: ArtsCard. The UK’s first employee benefits programme to focus exclusively on the promotion of arts, culture and creativity, our aim was to explore the potential to drive new audiences for the arts by introducing staff to a wide range of exclusive discounts and opportunities from theatre and dance to live music and festivals, delivered via the ArtsCard app.

Following the technical development of the ArtsCard app and web platform, the programme launched in pilot phase in December 2015 in partnership with a network of leading arts organisations in the London and South East regions, and a group of 6 employer partners including Kent County Council, Imperial College Healthcare Charity and Home Retail Group.

53

Arts Partners

6

Employer Partners

2195

Signed up employees

262

Arts/cultural offers promoted

666

click throughs to bookings

83

More than 2,000 employees signed up for the ArtsCard programme during its initial pilot phase, which concluded at end September 2016. We are now reviewing the results of the pilot with a view to taking this initiative forward into its next phase of development in 2017/18.

employer enquiries to join the scheme The ArtsCard app developed in partnership with Kodime Ltd.

“Thank you for enabling us to be part of the pilot and bring a wider breadth of benefits to our staff.... It’s a great initiative.”

Imperial College Healthcare Charity, Employer Partner Creative United Annual IMPACT Report 2015/2016

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4. Concluding Remarks Creative United has continued to grow our reach and impact in 2015/16. We successfully evidenced the ways in which we create real economic and social impact through our existing programmes of work, and introduced new products, programmes and activities. These increased opportunities for engagement in arts and culture and started to generate a return for us as a company to enable reinvestment in the growth of our core programmes.

The team:

Funders:

Lending and Credit Partners:

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5. ABBREVIATED ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2016 FOR CREATIVE SECTOR SERVICES C.I.C. TRADING AS CREATIVE UNITED DIRECTORS:

H Carty Bing-Pappoe S J Forster D Gilbert (Chairman) N D Henry W D F McNeill R Shah M-A Stack

REGISTERED OFFICE:

10 Queen Street Place London EC4R 1BE

REGISTERED NUMBER:

08280539 (England and Wales)

ACCOUNTANTS:

Alexandra Anthony Limited 47 Church Street Great Baddow Chelmsford Essex CM2 7JA

ABBREVIATED BALANCE SHEET: 31.3.16 NOTES FIXED ASSETS Tangible assets CURRENT ASSETS Debtors Cash at bank

£

2

31.3.15 £

£

9,769

11,948

54,169 194,757

35,180 475,339

248,926

510,519

131,678

402,470

CREDITORS Amounts falling due within one year

£

NET CURRENT ASSETS

117,248

108,049

TOTAL ASSETS LESS CURRENT LIABILITIES

127,017

119,997

-

2,390

PROVISIONS FOR LIABILITIES RESERVES Income and expenditure account

127,017

117,607 127,017 127,017

117,607 119,997

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2015.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2015 in accordance with Section 476 of the Companies Act 2006.

Creative United Annual IMPACT Report 2015/2016

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The directors acknowledge their responsibilities for: (a)

(b)

ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The abbreviated accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 29 September 2016 and were signed on its behalf by: D Gilbert - Chairman

NOTES TO THE ABBREVIATED ACCOUNTS: 1.

ACCOUNTING POLICIES

Accounting convention The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

Turnover Turnover represents net invoiced sales of goods, excluding value added tax.

Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc -

Deferred tax Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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 the profit and loss account in the period to which they relate.

2.

TANGIBLE FIXED ASSET

33% on cost and 25% on cost

TOTAL COST At 1 April 2015 Additions

£26,029 £8,282

At 31 March 2016

£34,311

DEPRECIATION At 1 April 2015 Charge for year

£14,081 £10,461

At 31 March 2016

£24,542

NET BOOK VALUE At 31 March 2016 At 31 March 2015

£9,769 £11,948

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For more information, or to get in contact with any of the team please contact: Creative United Somerset House Strand London WC2R 1LA info @ c reat i veunited .org.uk 020 7759 1111

Creative United is a registered trademark of Creative Sector Services CIC, a Community Interest Company registered in England and Wales under number 08280539. Registered office: 10 Queen Street Place, London EC4R 1BE. Authorised and regulated by the Financial Conduct Authority

Creative United Annual IMPACT Report 2015/2016

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