V5.0 5 th June TH DRAFT/FINAL. Business Plan. The Wasps Trust. Wasps Creative Industries CIC

Transcription

1 V5.0 5 th June TH DRAFT/FINAL Business Plan The Wasps Trust Wasps Creative Industries CIC

2 Contents Executive Summary 1 Introduction 4 Mission and Vision 6 Context 7 Property Strategy 9 Arts Strategy 13 Business Development & New Income Streams 16 Marketing / Communications 17 Resources 18 Performance Management and Impact Measurement 20 Financials 21 Risk Management 35 Appendices 36 Appendix A: Studio Locations 37 Appendix B: Capital Investment Summary of Costs and Funding 38 Appendix C: Capital Investment Target Outcomes 39 Appendix D: Staff Resource Planning 40 Appendix E: Corporate Information 41 Appendix F: Staffing 41

3 1. Executive Summary Although Wasps Trust, Wasps Artists Studios (Wasps Ltd) and Wasps Creative Industries (Wasps CIC) are separate legal entities they have a very close business relationship. They share a common vision, have overlapping objectives, contract between themselves for provision of project development and project management services, have a landlord-tenant relationship for most Wasps properties, and have a number of common Trustees and Directors. The Trustees and Directors of all 3 companies recognise the interdependencies within these relationships and have agreed that this joint business plan for the five years, , represents the most appropriate approach to planning for the future development of the overall Wasps business. The overall Wasps mission is to Support creative practice across Scotland, offering space, time and opportunity to experiment, make and engage. This is reflected in 2 specific property development objectives which are common to all three Wasps companies, and 3 objectives which fall within the broader arts property remit of Wasps Ltd and Wasps Creative Industries CIC. These objectives are the foundation on which the programmes, projects and budgets detailed in the plan are built. After 5 years of sustained growth, and after the successful completion of the Five Cubed strategic partnership with Scottish Arts Council/Creative Scotland, Wasps has achieved financial sustainability, generating almost 100% of its income from its trading activities, and creating a life beyond grant dependency. Demand for Wasps product from artists remains very high and it has begun to build a tenant base in other areas of the creative arts. With several opportunities for new projects and with new potential funding streams becoming available, the outlook for the Wasps business is very much a positive one. Property Strategy Over the period Wasps will continue to focus on providing artist accommodation at the lowest rental possible after allowing for the repayment of any loans, any necessary investment in the maintenance of the estate, and meeting the overhead costs associated with running and developing the business. It will continue to expand studio provision across Scotland where property and funding opportunities present themselves, where projects are financially viable, and where there is a clear artistic demand and rationale. Wasps will also explore providing different types of space for new art forms, and will replicate the very successful mixed use development model of the South Block (Glasgow) in which low cost space for artists is subsidised by commercial space for other businesses in other creative sectors. While Wasps is already developing an ambitious forward development programme it recognises the need for flexibility of approach. New opportunities can emerge in many ways from suitable properties being gifted or made available either free or on very preferential terms, from new funding streams becoming available, and from new central/local governmental initiatives. Notwithstanding this, it is envisaged that over the period Wasps will: Invest 8.48million in new capital expenditure Complete the redevelopment of the Briggait by 2017

4 2. Deliver a minimum of 5 new capital projects in locations where there is either no, or a limited, Wasps presence as follows: o 2013/14 Skye o 2013/14 Nairn o 2014/15 Stromness o 2014/15 Perth o 2015/16 Inverness (new location) (replacement for a sub-standard rented property) (new location) (new location) (new location) Prepare full condition surveys, and implement a phased preventative maintenance programmes for all owned and tenanted properties prioritising buildings in the existing estate where there is a maintenance/repair backlog (such as West Park Place, Edinburgh and East Campbell Street, Glasgow) It is anticipated that by implementing these projects Wasps portfolio will: grow from 17 to a minimum of 20 properties increase floorspace by an estimated 58,000 gross square feet create studio spaces for over 80 artists and makers, raising the overall number of artists tenants to over 900 create an estimated 20 commercial spaces (a 50% increase) In total supporting over 100 additional jobs, taking total numbers supported across Scotland to an estimated 1,100 create new exhibition spaces in Perth and Inverness attracting 10,000 additional users per annum, including class participants [but excl. audiences] to the Briggait Arts Strategy Wasps Limited will continue to work with Creative Scotland and local arts agencies across Scotland in order to develop and implement programmes and projects which maintain Wasps position as Scotland s leading arts property company and consolidate its role as studio provider of choice for artists and arts organisations. It will create a distinct strand of activity to expand the ways in which it uses Wasps properties to supports its artist tenants including open days, trade events, exhibitions, and residencies. These will be developed with the active participation of tenant groups in Wasps properties. The programme will be funded by external grants, sponsorship and charitable donations, and contributions from Wasps CI CIC. Business development and new income streams In response to demands from other agencies Wasps Ltd will investigate how best to capitalise on the skills and experience gained in developing and managing cultural buildings through providing property advice, services and support. This will be provided on a commercial basis to other appropriate organisations and funding bodies. The surplus generated from this new business activity will contribute to the financial sustainability of Wasps Limited. Performance and Impact Measurement Through its Boards and Committee structures Wasps already measures its operational and business performance in terms of: Financial Performance and Management Accounting (against approved budgets)

5 3. Project Development and Management (against agreed programmes and project budgets) Management of the Property Portfolio (against agreed KPI s) However, Wasps work has a much wider impact in the communities across Scotland where it has a presence in terms of employment provided (both direct and indirect), property brought back into use, local services purchased, etc. Many funders are increasingly looking for evidence of these wider impacts when taking funding and investment decisions. Over the plan period, Wasps Ltd will develop ways of measuring its cultural, social, economic and environmental impacts. Resources To deliver the programmes and projects detailed in the Plan Wasps Ltd will gradually enhance its staffing levels over the plan period using both external (e.g. Commonwealth Jobs and Commonwealth Graduate Funds) and internal funding as finances permit. Over the plan period the property team will grow by 1.5 staff posts to develop and manage both the programmes proposed for new capital development programme and the enhanced planned and preventative maintenance programme on existing properties. Wasps Ltd will create a new post during the plan period to manage the arts programme. The post of Office Manager will be created later in the plan period. Despite these enhancements staff costs over the plan period will however remain broadly steady at an average of 20.5% of turnover during the plan period. Financials Over the 5 year period of this business plan: Turnover for the principal operating company (Wasps Artists Studios) is forecast to grow by 46% to 2.47m, driven by a 66% increase in rent roll of 704,000 to 1.77m Annual income from artists will grow from 62.8% of turnover to 71.6% of turnover Wasps Ltd will produce combined surpluses averaging 29,000 p.a., supporting growth in financial reserves (both cash and balance sheet) over the five year plan period to protect the company against operational risks Wasps Limited s balance sheet funds will grow by 86% to 316,000 As new properties are added to Wasps portfolio, The Wasps Trust s asset base will grow by 16.5% to 6m, and property income rises by 12% to 718,000 Wasps Trust remains consistently able to meet its loan obligations, with sufficient buffer against unanticipated increases in bank base rates Wasps Creative Industries CIC trading subsidiary will make a growing contribution to the sustainability of the whole Wasps enterprise, with its financial contribution (in rental and donated profits) rising from 152,000 in 2012/13 to 180,000 p.a. in 2013/14 and beyond

6 4. Introduction This business plan sets out the proposals for creative and business development for the three businesses which together make up Wasps Wasps Artists Studios, The Wasps Trust and Wasps Creative Industries CIC covering the five years from 2013/14 to 2017/18. Although the three companies are separate legal entities they have common origins and operate in a very close business relationship. They share a common vision, have overlapping objectives, contract between themselves for the provision of a range of property development and management services, and have a number of common Trustees and Directors (see Appendix E, p41). Wasps Artists Studios (Wasps Limited) was founded as a charity in Its objective is to promote, maintain, improve, and advance the work of artists in Scotland by: Establishing studio and workshop facilities for artists In Scotland Engaging with a practitioners across an extended range of the creative industries including music, dance, drama, the visual arts, film, video, sound Arranging exhibitions of all kinds The Wasps Trust was established as a charity in 1993 to hold the assets of the Wasps business. It has been the channel for much of the substantial capital development programme implemented in the last decade. Wasps Creative Industries Community Interest Company was created in 2010 as a wholly owned trading subsidiary of Wasps Artists Studios to develop spaces for the commercial creative industries. The company completed the redevelopment of South Block in 2011 and now generates a significant annual profit to fund Wasps Ltd s charitable work in the arts. Wasps has grown substantially over the last 36 years, and particularly rapidly over the last 5 years, and is believed to be the largest artist studio provider in the UK. It provides support to approaching 1,000 creative people at 17 urban, rural and island locations across Scotland. Wasps Artists Studios operates all sites. The Wasps Trust now owns 7 of these and holds 2 on long leasehold. 8 properties are leased by Wasps Artists Studios directly from private and public landlords. A full list is included at Appendix A, p38. The Business Plan sets out an ambitious vision and strategy for further growth of the Wasps business, aiming to make this sustainability more robust, creating new income streams, replicating successful initiatives and seeking to generate additional social and cultural impacts wherever it works. The plan will be delivered in a collaborative manner, through partnerships with a wide range of cultural organisations, social enterprises and local/national government departments and agencies.

7 Five Year Vision Through its activities and advocacy, WASPS will contribute to Scotland's success as a country where artists and creative people are highly valued for their talent and skills, and Scotland is recognised internationally as an inspirational home for creative practice. By delivering its mission, Wasps will be a unified, forward looking and ethical organisation, viewed internationally as an exemplar of support to creative practice; a trusted provider of affordable workspace and services for creative practitioners in Scotland; a valued partner of a range of organisations, agencies and local communities. We will have a self-sustaining business model, generating income from sound asset management and multiple income streams, re-investing its profits to support the growth of creative practice, regeneration, and public engagement.

8 6. Mission and Vision Wasps Mission: Supporting creative practice across Scotland, offering space, time and opportunity to experiment, make and engage The mission and vision of Wasps reflect what each of the 3 companies is empowered to do within its respective constitution. Wasps Artists Studios and Wasps Creative Industries CIC have powers which go beyond the narrower property focus of the Wasps Trust and which allow it to engage in a wider set of activities to support the development and growth of its artist community. There are 2 elements of the vision which are common to the 3 companies: 1. Provide affordable workspace for artists, creative practitioners and arts charities in strategic locations throughout Scotland, within working environments in which creativity can flourish 2. Improve, develop and expand our studio network strategically across Scotland, responding to the changing needs of artists and other creative practitioners The remaining 3 elements of the vision fall outwith the core objectives of Wasps Trust but reflect the wider remit of Wasps Artists Studios and Wasps Creative Industries CIC: 3. Support artists across all creative disciplines by assisting other organisations to develop and manage facilities for making and presenting art 4. Harness our national network of cultural buildings to engage the general public with a breadth of artistic practice, and promote awareness and understanding through exhibitions, visits, tours, public and professional events, residencies, exchanges, public debate and publications, delivered with local, national and international partners 5. Support artists and other creative practitioners, particularly tenants, to grow their creative practice and abilities, business skills and economic viability, by forging partnerships with delivery agencies

9 7. Context Where we have been Wasps has grown substantially over the last 5 years, more than doubling turnover between 2008/09 and 2012/13. Following the completion of Briggait phase 1 in December 2009, four other developments have been completed, to expand at existing locations (Courtyard in Irvine; Meadow Mill in Dundee) or create new locations (Cannonwalls/Claverhouse in Kirkcudbright; South Block in Glasgow). These investments were delivered as part of Five Cubed, a strategic partnership with Scottish Arts Council (now Creative Scotland) to develop up to 5 buildings, in 5 communities, in 5 years. Alongside funding generated by Wasps itself, SAC/CS invested 3m into the programme, before specific projects had been identified. Although one further new project is being progressed to close the programme, the targets agreed at the outset have largely been met or exceeded. A key element of the Five Cubed strategy was achieving financial self-sustainability, and moving out of grant dependency. In 2012/13, for the first time in its 36 year history, Wasps as a whole broke even without external revenue grants, having increased income from non-public sources to 99.7%. ORIGINAL TARGETS OUTCOMES COMMENTS No. of buildings developed 4 to 5 5 COMPLETE Edinburgh/The Lothians or Meadow Mill, Dundee COMPLETE Dundee Glasgow South Block Studios, Glasgow COMPLETE Inverness Potential Small Cities Strategy In discussion Building locations Dumfries and Cannonwalls and Claverhouse, COMPLETE Galloway/ Borders Kirkcudbright Stirling Potential Small Cities Strategy In discussion - Courtyard Studios, Irvine COMPLETE - Old House Ollach, Skye IN PROGRESS Gross floorspace added (sqft) 55,596 66,640 20% above target Net lettable floorspace added (sqft) 46,500 48,401 4% above target No. of studios created Incl. bigger CIs & SE units No of artists supported (in new spaces) Smaller no. of larger spaces Arts organisations/cultural social enterprises supported 0 7 Not previously targeted Creative Industries companies 0 31 Not previously targeted Employment estimates Estimates Grow Rent roll by (2007/ /13) 81% 95% 14% above target Overall increase in turnover 85% 111% 26% above target Rent Roll figures (2007/ /13) 635,138 1,240,646 95% increase; Includes CIC lettings Turnover figures (2007/ /13) 864,388 1,822, % increase; incl. CIC / excl. inter-company + Trust Percentage of self-generated income 88% 99.7% Sustainability achieved Cut waiting lists by Up to one half 55% decline As expected Waiting list numbers Excl demand mapping data Five Cubed Capital spend 4,805,000 5,834,000 Every 1 SAC/CS invested generated a further 1.33 The creation of spaces for other artforms and creative industries (CIs) not anticipated at the outset of the Five Cubed programme has been an important shift. South Block s CI spaces are now returning substantial profits.

10 Where we are now 8. Artist demand and the impact of the recession: artist demand remains strong but studios are taking slightly longer to re-let than in the past, especially in the smaller towns. Demand may be becoming more price elastic than in the past. Increased competition in studio provision: in the last decade, around 40 new (mostly very small) studio providers have emerged in Glasgow, Edinburgh and Dundee. Other providers offer a slightly different proposition, involving exhibiting and other creative opportunities to which Wasps has to respond to remain attractive and competitive to new generations of artists. Increased competition for funding: with mainstream public sector funding declining and set to reduce further, securing grant funding is increasingly challenging. While Wasps now generates all of its operating budgets from its own trading activities it still relies on capital grants to deliver new developments. Funding is increasingly driven by demonstrable and measurable impacts. Rising costs, particularly energy: with pressure on prices and rising operating costs, margins are increasingly tight. In particular, energy costs are likely to continue to rise in the next five years. New Funding Streams: Lottery good cause capital funding is projected to rise. Other significant funding is available through HLF s Townscape Heritage Programme (building restoration), energy savings trusts (renewable energies), Creative Scotland (capital / arts programme) and the Scottish Cities Alliance (for new projects). Wasps will remain alert to new funding opportunities. Where we are going Maintaining artist demand / staying relevant to artists practice: artists practice constantly shifts as artists redefine what contemporary art is and how it is made, as well as creating new models of an economically sustainable practice. Increasingly, artform boundaries are blurring, and the processes of making and showing work are more integrated. This cultural hybridity has to be reacted to, if not led by, Wasps if it is to stay relevant to artists. The arts programme will become more intrinsic to our work as a differentiator and to compete for artists and funding. More mixed (artists space and creative industries) spaces: creating buildings with mixed artist/design users has been Wasps key response to this hybridity, and a key component of its growing financial sustainability, subsidising charitable work and helping to minimise artists rents. Generating more social impacts and measuring impacts better: having measurable cultural and social impacts will be essential if Wasps is to secure investment from government and many charitable trusts for future projects. Energy costs: Wasps will target environmental benefits and energy savings through consumption management, but also by investigating opportunities to become its own energy supplier. Managing Costs: Changes in the cost base will be closely aligned to financial performance, with Wasps Ltd staff costs forecast to remain broadly constant at around 20.5% of turnover Developing new income streams: In the current financial environment funders are increasingly looking to protect their investments. There is now a clear market opportunity for Wasps Ltd to build on its track record and expertise by selling development advice and project management support services to a range of other organisations, opening up a new source of income to support the charitable activities of the company. This opportunity will be explored further in the early stages of the plan.

11 Property Strategy 9. Providing high quality affordable rental studio property is Wasps core business and its principal means of supporting artists. The key objectives of the property strategy for the next 5 years are: Strategic expansion and investment Expand our studio network to areas of Scotland where we are either not represented, or are under-represented, and where there is a clear artistic rationale for our investment Select potential new properties for artistic and strategic reasons, underpinned by sound property and financial rationales Expand the portfolio by owning rather than leasing wherever possible. Where ownership is not possible, acquire properties on long leaseholds at peppercorn or below-market rents Incorporate an element of commercial creative industries spaces within suitable developments to create rental surpluses (within the Wasps Creative Industries CIC subsidiary) to cross subsidise artists rents. This will be within new developments as part of a mixed-use approach with part artists studios and part creative industries spaces Develop our maintenance function from a reactive service towards a planned and preventive maintenance (PPM) system, prioritising buildings in the existing estate (such as West Park Place, Edinburgh and East Campbell St, Glasgow) where further investment is required. Pricing Review artists rents annually to ensure they keep pace with costs. The plan assumes that over the next five years artist rents will increase each year at the annual CPI inflation rate, although this will be reviewed each year during the annual budgeting process Optimise income from creative industries lets by leasing spaces at commercial rates Develop proposals to reduce, in real terms, the rental levels charged to artists Explore pricing models for artists exclusive of heat and light costs to encourage reduced energy consumption Energy Energy costs represent approximately 20% of studio expenditures (more than 40% of studio costs excluding rent). To cut annual energy bills, reduce upwards pressures on rents, improve our margins, and enhance Wasps financial sustainability it is proposed that during the plan period Wasps will: Partner with academic institutions and/or external consultants to conduct energy audits of all Wasps premises to inform an emerging strategy for energy cost reductions Reduce consumption by building users, exploring the potential for adding sub-metering & altering pricing structures, and by enhancing internal communication strategies to encourage more responsible energy use Invest in further insulation/energy efficiency measures Investigate investment in renewable energy, including biomass and solar energies, informed by the energy audits

12 10. Financial Turn Wasps break-even position into a more robust sustainability by building financial reserves appropriate to the risks faced across all 3 Wasps companies Increase operating margins by targeted cost savings, and by continuing to incorporate an appropriate level of creative industries lettings into buildings Continue to finance new developments through a mix of capital grants and loans, until loan balances are significantly paid down and sufficient cash resources are generated Maintain low ratio of loan finance to total project costs for each development Space types Implement the Small cities creative industries strategy delivering a controlled expansion into Scotland s smaller cities, enhancing our geographic spread, in support of the Scottish Government Cities strategy, the Scottish Cities Alliance, and the Scottish Towns Partnership Develop projects as mixed use spaces, including creative industries offices and workshops, to meet demand, using surpluses from commercial CI letting to subsidise artists studios Developing spaces for the performing arts (dance, circus, street arts, physical theatre) at Briggait, and respond to opportunities to support other artforms elsewhere Develop proposals for storage-only spaces for visual artists to offer a service to artists who do not want or need regular access to a fully operational studio Develop proposals for lower cost provision for new graduates, including shared spaces to position ourselves to serve demand from emergent artist collectives Projects Planned capital investment over the next five years totals 8.48m. Whilst acknowledging that the nature of arts capital property projects means that there will always be the need for a flexible approach, a number of projects are planned as follows: Project: Estimated project cost: Programmed for: Links School, Fishertown, Nairn Acquiring and refurbishing former school premises in Fishertown, Nairn to support local artist group who have been in temporary-let, poor quality space in the town for 17 years. Aiming to create strong links with Inverness and Moray Colleges to help retain emergent talent in the Highlands. 166, /14 Old House, Ollach, Braes, Skye Creating artists residency space to accommodate up to 3 artists at one time, with 3 working spaces in outbuildings. Working closely with local contemporary arts organisations, ATLAS and Aos, and developing links with Sabhal Mòr Ostaig Gaelic college, UHI and others. Further expanding Wasps service into the Highlands, and our first project in the Hebrides. 249,000 (including value of gifted property) 2013/14

13 11. Stromness Library, Stromness, Orkney Redeveloping under a very long lease the soon-to-be redundant library in the conservation area of Stromness to create artists studio space, developing links with local arts agencies including the Pier Centre. First development by Wasps on Orkney. 125, /15 Briggait Creation Centre, Glasgow A partnership with Y-Dance, Dance House, Indepen-Dance and Conflux to create Scotland s first Creation Centre. Following the 6.8m first phase development of Glasgow s iconic Grade A listed former fishmarket into 45 artists studios, 25 cultural offices, commercial shops, galleries and aerial rehearsal space, developing within the building s footprint and infilling a long-standing gap site. Creating a further 21,000 sqft of space to provide world class dance, circus and street arts rehearsal spaces. 4.55m Complete by 2017 Smaller Cities And Towns Creative Industries Strategy Expanding the network of Wasps facilities in partnership with the Scottish Cities Alliance, Cultural Enterprise Office and local authorities in Highland, Perth and Kinross and Stirling, and the Scottish Towns Partnership in areas such as the Borders to create a focal point in each city/town for the artist/creative sector, business skills development and public engagement. Proposed projects are outlined below /15 to 2017/18 St John s School, Perth (Small Cities 2) In partnership with Perth Contemporary Arts Trust and Perth and Kinross Council, acquiring under very long lease and developing former school premises in the city centre, to create contemporary art gallery, artists studios and creative industries/design workspaces. Developing links with Perth College. First venture into Perth and Kinross. 2.24m 2014/15 AI Welders building, Academy Street, Inverness (Small Cities 1) Acquisition and development of a grade B listed former foundry, currently a public house with vacant upper floors, as part of the proposed Inverness Townscape Heritage Initiative (THI) Project, for which this is the top priority. Working closely with local contemporary arts organisation, Inverness Old Town Arts (IOTA), HIE and Highland Council, to create a focus for the contemporary art, design and music scene in the capital of the Highlands. 1.15m 2015/16 TOTAL 8.48m Estimated A fuller description of each project is provided in the Business Plan Supplement. Further details of Projected Costs are included in Appendix B, p38. Targets Outcomes, in terms of the floorspace added, number of spaces, number of artists supported and estimated total employment for each of the capital projects are included at Appendix C, p39. Financing capital investment Many organisations provide loan and grant funding for property development, and the funding market is subject to considerable fluctuation in terms of project eligibility, application processes and decision making timescales. Wasps has a strong track record in fundraising and has raised more than 18.5million in capital grant and loan funding in the last decade (see Business Plan Supplement).

14 12. Based on the current funding programmes in place it is anticipated that the proposed programme will be funded from a mix of capital grants from a variety of sources and loan finance, as follows: A full breakdown by project of these estimated funding sources and amounts is included at Appendix B, p43. Project Development and Implementation The programme will be implemented through formal agreements between Wasps Trust and Wasps Ltd which defines the role of each company in each project. Subject to the provisions of charity law, and to commercial considerations, the general presumption in terms of delivering capital projects is that: Proposed projects at Stromness, Inverness, Nairn and Perth will be acquired by Wasps Trust, with fundraising, development project management, leasing and property management services provided by Wasps Ltd The proposed project at Skye (which was gifted to Wasps Ltd in 2012) will be financed, developed, operated and managed by Wasps Ltd For the Briggait Phase 2 development (already occupied on long leasehold by Wasps Trust), fundraising, development project management, leasing and property management services will be provided by Wasps Ltd. Fuller details of this project are available in the Business Plan Supplement and the Briggait Business Plan. Subject to the provisions of charity law, and to commercial considerations, the general presumption in terms of new projects is that: All project fundraising, project development and management will be carried out by Wasps Ltd New development projects will be leased or sub-leased by Wasps Ltd from Wasps Trust Wasps Ltd will let, manage, and maintain all studio developments under the terms of the leases or sub-leases A detailed chart showing the Project Development and Management Process including methodologies and personnel for each project stage is included in the Business Plan Supplement.

15 13. Arts Strategy Since it was established Wasps has had a recognised role in using its buildings to support artists (both tenants and other artists) and other arts agencies to widen access to, and encourage public involvement in the arts. This commitment to creative practitioners, the general public, and the wider communities within which Wasps buildings are located is reflected in the support Wasps has given to a wide number of initiatives including its own public exhibiting programme. Artists today expect more than space from studio providers. The opportunities available to exhibit, socialise and be part of a wider creative community are often a greater differentiator than price. Wasps Ltd will respond to these demands by developing new services for tenants to ensure it stays relevant and attractive to new generations of artists. Arts programme: Key stats 9 exhibiting spaces 47 exhibitions 251 artists 28 visiting artists 18,278 visitors (Year to Jan 13) This is reflected in the growing programmes of exhibitions within Wasps properties (9 exhibiting/project spaces at 7 locations), the increase in artist residency spaces (now 4 locations), and the growing level of collaboration with other arts organisations to create public events in Wasps properties. The national network of public spaces in Wasps properties needs to be professionally programmed and managed. The growing arts programme also allows Wasps to fulfill undertakings to funders who have invested in properties (particularly Creative Scotland and Heritage Lottery) and underpins the fundraising efforts for the future which require a focus on what Wasps buildings deliver in terms of cultural and social impacts, rather than on the buildings themselves. Opportunities for artists / public engagement This will be the principal focus of our arts programme over the business plan period. The current arts activities will be resourced effectively and we will seize the opportunities within our national network of properties and work with a range of local partners to devise and deliver a programme of artist support and public engagement across Scotland. Our arts programme will include exhibiting, open studios, artist residencies, talks, lectures, publications and other means of supporting artists careers and facilitating their engagement with the wider public. This activity will be funded from external grants, private giving, sponsorship and annual contributions from Wasps CIC. Opportunities to partner with large scale local and national events (e.g. cultural programme for Commonwealth Games 2014, Youth Olympics 2018, etc.) will be built into the programme. A full arts strategy is being developed by Wasps Ltd which will identify activities, audiences, resourcing, budget, and fundraising requirements. This will become a supplementary report to this business plan in due course.

16 5. Fashion Foundry is a joint venture between Wasps Artists Studios and Cultural Enterprise Office ( offering space, mentoring and business skills development in conjunction with a leading designer and an industry expert, to a selected group of fashion/textile graduates for 18 months, supported by 120,000 investment from Creative Scotland and Scottish Textiles.

17 Other support to artists 15. Two other ancillary areas will be explored later in the plan period: Business development support for tenant practitioners, in partnership with organisations such as Cultural Enterprise Office, DSL Finance Ltd, and local authorities Other opportunities to support artists Wasps 1000 or so tenants represent a significant number of Scotland's practising artists and makers. Wasps is already developing opportunities to help improve the financial sustainability of their practice or businesses by facilitating access to targeted, sector-specific business support through strategic alliances with national, regional and local providers who specialise in providing business support to the sector, at no cost to Wasps. This work is already being piloted at South Block with the Cultural Enterprise Office through the Fashion Foundry project (see inset, previous page). Existing artist residency spaces will continue to be operated, and where opportunities arise, Wasps will partner with universities, colleges of art and other arts organisations to create CPD opportunities for artists, research projects, or training programmes focusing on technical skills, funded by external grants.

18 16. Business Development & New Income Streams Wasps was founded as a social enterprise long before the term was coined or came into mainstream use. From its inception, it has always raised its own money through trading (by leasing space to artists), developed skills, gained experience and capitalised on this acquired knowledge to generate money to cover its own costs and invest in the future of its service. Wasps is recognized nationally and internationally for its approach to supporting artists and in particular to its linking of property development & management with development support for artists, makers and designers. Over the business plan period, Wasps will explore how best to capitalise on its unique skills and experience to secure new income streams for the organisation to grow unrestricted reserves and for reinvestment back into core charitable work. This activity will be managed through the Business Development function within the Wasps staff team. Property services to cultural and third sector organisations Substantial opportunity exists to take the unique experience Wasps has gained and utilise it in support of many, many more artists and cultural organisations. Wasps Ltd has always advised artists and organisations on property issues usually informally and for no payment. Wasps Ltd has extensive expertise in both its staff and its board in briefing, design team assembly, fundraising and financial planning, and in managing projects through design and construction, as well as continuing maintenance, all allied to an inherent understanding of the creative process & mindset and the operational model of cultural organisations. With lottery funding back on the rise, demand for such advice from a trusted and approachable source is increasing. While Wasps is not aiming to establish a consultancy service, it will investigate contracting with large scale grant funders, for an agreed block of person days in return for a fixed fee, to support their investees. It will deliver this service by developing a small range of products to suit the needs of cultural organisations, and offer these to the grant funders. This has been discussed in outline with 2-3 funding bodies/investors and the appetite for this service is keen. Initial scoping work has been carried out on our behalf by social enterprise consultants, CEiS. This will need to be fully worked up with its own business plan. Exploring other income earning opportunities Potential exists to capitalise on Wasps experience in managing multi-occupancy buildings to target the social enterprise and third sector. Space for cultural social enterprises was set aside within the South Block development. As more cultural organisations self-identify as social enterprises, there may be scope to create further spaces within new buildings, or to create a building specifically for this sub-sector. Any such project will require a viable business case prior to implementation. Wasps will explore this further in Three of Wasps buildings currently have café spaces, the prime function of which are to create a social & cultural focal point for the larger buildings, rather than primarily to generate income. Wasps will explore the development of social enterprise cafes in the buildings, with a clear preference to secure cafés operated by third parties particularly charities who already have a track record in operating such facilities while employing and training individuals from marginalised groups.

19 17. Marketing / Communications Wasps has developed a strong brand based on its record as a good landlord and a dynamic developer of arts buildings, enhanced by the success of its building launches, collaborations with national regeneration agencies and other arts organisations, links with other arts property providers, its exhibition programmes, and its work to support artist tenants across the Wasps portfolio. It also has strong word of mouth endorsement from its many supporters. This profile has been achieved without significant resources, and marketing/communications budgets remain modest relative to the scale of the business. Over the Business Plan period, Wasps will focus its marketing on strengthening the connections with tenants (and prospective tenants), creating and enhancing a feeling of a mutually supportive community amongst the tenant groups and raising their perceptions of the organisation as a whole. During the plan period it will be increasingly important to market the work of the organisation to: Build stronger relationships with tenants, as we continue to grow Support the arts programme Support fundraising activities Resources will be sought to enhance our marketing, particularly our digital offering. Online Wasps Ltd already has a growing digital footprint, making extensive use of social media including very active Facebook and Twitter presences. Digital marketing will be developed further by extending the core online offering. This will be a cornerstone of the marketing approach going forwards, both for property work (e.g. lettings and artist communication) but also for marketing the public programmes. Social media is also much more cost effective than traditional marketing such as print. Wasps Ltd is the process of writing a Digital Strategy with the support of Culture Sparks (a publicly funded research and intelligence agency for the arts) which provides consultancy and advice for a set number of days per annum in return for a modest annual fee. Customer satisfaction Wasps currently has little quantified feedback on tenant satisfaction. During 2013/14 a tenant survey will be carried out to create a baseline for assessing the current satisfaction level. This work is also being supported by Culture Sparks. This survey, which will be repeated periodically, will inform the development of a communications strategy specifically aimed at increasing positive tenant perceptions of Wasps service over the business plan period.

20 18. Resources Current Staff resources Wasps Artists Studios currently employs 10 staff (9 full time equivalent posts). Details of the current staff team can be found at Appendix F, p41. The Wasps Trust employs a paid Secretary. Wasps Creative Industries CIC is managed by Wasps Artists Studios staff. Operational staff for reception and other duties are employed at the CIC s premises. Enhancing the staff resources Following a recent review, it is proposed to increase Wasps Ltd staff complement over the business plan period, subject to funding being available. Staffing levels for property maintenance and development management are too low and there are currently no staff assigned to manage the arts programme. The staff team will be reorganised into three principal sections: Property, Arts and Business Development, backed by an Admin and Support section. Staffing levels will rise from 9.0 to 12.7 (full time equivalent staff) during the period. The Admin & Support section will remain at 3.5 staff. The Property team will grow from 2.5 to 4.0, with the appointment of a Studios Administrator and a second Property Maintenance Officer during 2013/14. In 2013/14, a new Arts Development post will be created through an internal realignment to manage the development and implementation of the arts programme. A new post of Office Manager will also be added in 2015/16, to assist the management of the expanded staff team. Staff additions will be funded from Government Training and Recruitment Programmes, grants from national agencies, and from Wasps Ltd s own resources. Further details are included in Appendix D, p40.

21 19. Growth in staff numbers will be closely linked to the implementation of the property strategy, and the achievement of the financial outcomes detailed within this. This will ensure that while staff costs will rise they will remain broadly constant at an average of 20.5% of turnover over the business plan period. Wasps Limited: staff costs as a percentage of turnover 27.00% 26.00% 25.99% 26.21% 25.00% 24.00% 23.77% 23.52% 23.00% 22.00% 21.43% 22.33% 21.70% 21.67% 21.82% 21.00% 20.00% 19.00% 19.57% 19.60% 19.29% 20.74% 20.21% 19.87% 19.86% 18.00% 2002/ / / / / / / / / / / / / / / /18 All staff additions after 2013/14 will be subject to budgetary review at the start of each financial year. ICT resources The company s key business functions letting spaces and collecting rents are effectively managed. However, following the company s growth in recent years, further investment is proposed to upgrade and link the various databases currently operated to each other, and to the accounting software, to improve overall functionality. Further investment will be made from cash surpluses on an annual basis during the plan period to ensure that Wasps systems remain fit for purpose going forwards.

22 20. Performance Management and Impact Measurement Performance Management The Boards of the Wasps companies have recently revised their governance arrangements and are developing a more structured AME (Project Appraisal, Monitoring and Evaluation) framework to track the implementation and impact of the 5 year plan. Performance will be monitored by the Wasps Boards, and Board Sub Committees, through reporting of: Formal management accounting of income & expenditure, cashflow, and balance sheets for all 3 Wasps companies Progress against the approved capital programme project plans Performance against an agreed suite of Key Performance Indicators (KPI s) (fuller details are given in Business Plan Supplement) Cultural impacts Wasps already quantifies the cultural impact of its work in providing studio spaces for artists, by measuring key performance indicators, including number of spaces provided, artists supported during the year, occupancy rates etc. As the arts programme develops, Wasps will collect much more detailed statistics including the number of exhibitions, artists supported, audiences, days of opening, etc to ensure that it is correctly identifying the cultural impact of the programme, and is tracking progress over time. Social impacts Wasps will also look for opportunities to increase and maximise the social impacts of its work, using social-to-social partnering and social procurement wherever possible. For example, it will look to work with employability social enterprises who train young people in construction to lever out social impacts from routine spend. Other initiatives may emerge to build our social outputs over the plan period. Within the tenant survey, Wasps will engage Social Value Lab (a social sector research bureau) to help develop some simple questions to gauge tenants social impacts to allow us to aggregate these as part of our organisation-wide social impact assessment. Economic impacts Wasps believes that its work has significant measureable economic benefits, especially in supporting employment and self-employment. It will commission a baseline economic impact assessment of South Block to test against previous forecast impact studies (Scottish Enterprise commissioned a report showing that the development will produce 60m GVA over 20 years) and to allow tracking of impact over time. The tenant survey will also provide an opportunity to gain some insight into economic impacts across the artist population. Environmental impacts Wasps was an early complier with the Energy Performance Certification regime and already has elementary baseline information of each building s environmental performance. Wasps aims to achieve zero waste at our buildings, encourage 100% recycling of materials by the end of the business plan period, and set targets for energy use reduction annually. All investment decisions will take particular account of anticipated energy savings and projected payback periods.

23 21. Financials Commentary The following 14 pages set out forecast income and expenditure, balances sheets and cashflow for each of the three entities. Key points for each entity in turn are: Wasps Artists Studios (pages 23-26) The company will generate small surpluses in 2013/14 and beyond after a period of growth during which reserves were run down, due particularly to several buildings being off stream for redevelopment A surplus of 32,000 is forecast for 2013/14, with improved performance over the prior year arising from four principal drivers: o Improved lettings within the existing property estate, with spaces unlet at the start of 2012/13 now let out o Increased donations from Wasps Creative Industries CIC with South Block commercial spaces now let, subsidising the company s charitable work and underpinning the sustainability of the whole of Wasps o An uplift (for 2013/14 only) in grant from The Wasps Trust, followed by a reduction in 2014/15 and each year thereafter o Contracting with Third Sector investors to support their capital investees, producing an estimated 20,000 in 2013/14, and 50,000 p.a. thereafter Modest surpluses averaging 29,213 p.a. over the five years Arts programmes to grow substantially during the period, largely funded by external grants but latterly (in 2016/17 and 2017/18) through modest contributions from overall resources, to develop an exit strategy from grant funding for this activity A new staff post, with fundraising responsibilities for the arts programme, will be created to manage this activity in 2013/14 2 staff will be recruited in 2013/14 to bolster the property team currently under-resourced Staff costs will rise over the period to address in these key areas; posts to be funded from the operations (after receipt of initial government employment support grants) Staff costs as a percentage of turnover will be broadly constant at c.20.5% (see graph on p19) Inflation is estimated for most income and expenditure at current CPI levels, with staff salary rises assumed to be below CPI inflation (1.0% for 2013/14 and 2.0% p.a. thereafter) Overheads and other central costs within Wasps Ltd will remain tightly controlled but some elements of overhead cost will grow over the period where these are related to activity level / volume Turnover is forecast to grow by 46% to 2.47m This will be driven by a 66% increase in rent roll, estimated to grow by 704,000 to 1.77m The balance sheet will grow steadily over the period as surpluses are earned, rising from a very low base by 86% to 316,000 by the end of the plan period A budget for 2013/14 analysed into quarters is included within the Business Plan Supplement, and detailed of the income and expenditure for each studio property is available as an addendum to this plan

24 22. The Wasps Trust (pages 27-30) Properties in Stromness, Nairn, Perth and Inverness are added to the portfolio during the plan period As a result, property rentals received from Wasps Limited grow by 12% to 718,000 The trust produces surpluses averaging 115,229 p.a. during the plan period The trust s asset base increases by 16.5% to 6m Bank base rates are assumed to rise from 0.5% to 1.0% in December 2013 and 2.0% by April 2017, with a very modest impact on the trust s variable loans New loans are assumed to incorporate fixed interest rates to take advantage of historically low rates and to eliminate interest rate volatility for new projects Throughout the period, the trust retains sufficient cash balances to meet its loan obligations and administrative costs A budget for 2013/14 analysed into quarters is included within the Business Plan Supplement Wasps Creative Industries CIC (pages 31-32) The CIC donates its profits to Wasps Limited, its parent company Following its first full year of operation in 2012/13, lettings at the CIC s South Block premises have increased substantially The CIC produced a (forecast) net contribution to Wasps during 2012/13 of 152,000 ( 84,000 in donated profits and 68,000 in rental) This is set to rise to 180,000 in 2013/14, increasing annually thereafter, but reducing slightly in 2016/17 and the following 4 years until Risk Capital is fully repaid Risk Capital (loan with five year s interest written off if social objectives are met) secured from the Scottish Investment Fund to complete the South Block development in 2011, will be repaid over the five years from 2016/17 to 2020/21 and will incur interest from April 2016 The CIC retains a small cash balance to cover its operations, and in particular the fluctuations in its service charge recovery during the period A budget for 2013/14 analysed into quarters is included within the Business Plan Supplement

25 23. Wasps Artists Studios Forecast Income and Expenditure Actual to 2013/ / / / /18 Mar 13 INCOME Studio Rental Income 1 1,066,924 1,158,457 1,229,111 1,381,832 1,495,337 1,770,534 Grant from Wasps Trust 472, , , , , ,000 Donations from Wasps Creative Industries CIC 84, , , , , ,250 Arts Programme - income 4 39,729 76, ,769 83,700 80,500 94,750 Other revenue grants 3 32, Other Income 9 2,543 22,750 52,824 52,901 52,979 53,059 TOTAL INCOME 1,698,231 1,870,197 2,069,205 2,090,432 2,189,316 2,472,593 EXPENDITURE Studio Expenditures 1,143,973 1,228,079 1,231,050 1,368,208 1,435,496 1,693,269 Cyclical & Safety Expenditure 2, Studio Expenditures 2 1,145,973 1,228,079 1,231,050 1,368,208 1,435,496 1,693,269 Arts Programme - expenditure 5 34,241 75, ,969 84,799 84, ,936 Staff Costs 6 359, , , , , ,826 Overheads 7 77,848 63,510 65,671 68,701 70,549 77,941 Interest & Bank Charges 8 24,961 25,562 29,660 27,322 24,816 22,128 Depreciation 52,088 58,200 62,100 49,900 43,900 37,900 TOTAL EXPENDITURE 1,694,747 1,838,522 2,044,716 2,075,080 2,145,363 2,442,001 SURPLUS / (DEFICIT) FOR PERIOD 3,484 31,676 24,489 15,352 43,953 30,593 Surplus as a percentage of expenditure 1.7% 1.2% 0.7% 2.0% 1.3% Forecast Balance Sheets Actual to 2013/ / / / /18 Mar 13 Gross Cost 1,318,818 1,576,240 1,753,846 1,753,846 1,753,846 1,753,846 Capital Grants (646,239) (866,161) (951,161) (951,161) (951,161) (951,161) Accumulated Depreciation (223,608) (281,808) (343,908) (393,808) (437,708) (475,608) Fixed Assets 448, , , , , ,077 Prepayments 59,120 59,120 59,120 59,120 59,120 59,120 Other assets 22,339 22,339 22,339 22,339 22,339 22,339 Cash 369, , , , , ,457 TOTAL ASSETS 899, , , , , ,994 Trade Creditors 85,575 85,575 85,575 85,575 85,575 85,575 Accruals 90,360 90,360 90,360 90,360 90,360 90,360 Grants received in advance 152,070 30,000 30,000 30,000 30,000 30,000 Tenants deposits (client funds) 84,344 91,580 93,886 96,254 98, ,452 Loans due within one year 10 22,730 32,334 34,672 37,178 39,866 42,553 Long Term Liabilities , , , , , ,029 TOTAL LIABILITIES 729, , , , , ,969 NET ASSETS 169, , , , , ,025 General Funds 169, , , , , ,025 TOTAL FUNDS 169, , , , , ,025

26 24. Forecast Cashflows Charitable Activities 2013/ / / / /18 Studio Income 1,158,457 1,229,111 1,381,832 1,495,337 1,770,534 Grant from Wasps Trust 500, , , , ,000 Studio Expense (1,228,079) (1,231,050) (1,368,208) (1,435,496) (1,693,269) Other Operational Activities 430, , , , ,265 Income 99, , , , ,809 Expenditure (529,181) (724,406) (632,150) (643,651) (691,203) Servicing of Finance (429,941) (452,813) (495,549) (510,172) (543,394) Interest payments (23,062) (27,160) (24,822) (22,316) (19,628) (23,062) (27,160) (24,822) (22,316) (19,628) Net Operational Cash Flow (22,624) (31,911) (56,748) (27,647) (40,757) Capital Expenditure 2013/ / / / /18 Capital Funding 219,923 85, Loan draw down 25,000 84, Capital Expenditure (257,423) (177,606) Analysis of Capital Expenditure Old House, Ollach, Skye (12,500) (8,106) Capital Funding 219, Loan draw down 25, Capital Expenditure (244,923) Energy investment Capital Funding - 85, Loan draw down - 84, Capital Expenditure - (169,606) IT & Office Expenditure - (106) Capital Funding Loan draw down Capital Expenditure (12,500) (8,000) Loan Repayments (12,500) (8,000) Meadow Mill, Dundee (22,732) (24,376) (26,138) (28,027) (30,054) Old House, Ollach, Skye (1,636) (1,908) (2,046) (2,194) (2,353) Energy investment - saving - (6,050) (6,487) (6,956) (7,459) (24,368) (32,334) (34,672) (37,178) (39,866) Donations from Wasps Creative Industries CIC 112, , , , ,250 Decrease / Increase in debtors Increase / Decrease in Creditors (114,834) 2,306 2,368 2,700 2,498 Net Cash Flow (61,827) 48,455 32,949 53,375 31,125 Tenants deposits (client funds) 84,344 91,580 93,886 96,254 98, ,452 Grants paid in advance 152,070 30,000 30,000 30,000 30,000 30,000 Available funds 132, , , , , ,005 Forecast Cash Balance 369, , , , , ,457

27 25. Notes to the forecasts Actual to 2013/ / / / /18 Mar Studio Rental Income - summary Existing estate 1,066,924 1,148,238 1,177,408 1,207,366 1,241,525 1,273,123 Briggait phase 2 - additional income - 9,122 69, ,545 Links School, Nairn - 3,277 13,654 14,143 14,355 14,570 Old House, Ollach, Skye - 6,943 8,156 8,360 8,360 8,569 AI Welders Building, Academy Street, Inverness ,192 50,536 51,294 St John's School, Perth , , , ,258 Stromness Library, Orkney - - 4,594 8,450 8,808 9,176 1,066,924 1,158,457 1,229,111 1,381,832 1,495,337 1,770, Studio Expenditure - summary Existing estate 1,144,418 1,218,941 1,218,276 1,248,487 1,248,918 1,265,152 Briggait phase 2 - additional expenditure - 12,660 72, ,074 Links School, Nairn - 5,388 13,557 13,640 13,724 13,810 Old House, Ollach, Skye 1,554 3,750 4,613 4,728 4,846 4,967 AI Welders Building, Academy Street, Inverness ,250 39,539 39,832 St John's School, Perth ,000 92,500 93,288 94,087 Stromness Library, Orkney - - 5,288 7,626 7,703 8,031 Energy investment - saving - - (44,683) (44,683) (44,683) (44,683) 1,145,973 1,228,079 1,231,050 1,368,208 1,435,496 1,693,269 New Properties - surpluses / (losses) Links School, Nairn - (2,111) Old House, Ollach, Skye (1,554) 3,193 3,543 3,632 3,514 3,601 AI Welders Building, Academy Street, Inverness (58) 10,997 11,462 St John's School, Perth - - (8,700) 8,699 9,429 10,171 Stromness Library, Orkney - - (694) 824 1,106 1,145 (1,554) 1,082 (5,754) 13,600 25,677 27, Other Revenue Grants Creative Scotland 28, Glasgow city Council / Glasgow Life 3, , Arts Programme - income Open Studios Weekend 1,500 7,500 8,500 8,750 6,750 6,750 Dusseldorf Exchange 500 1,500 2,600 2,700 3,000 1,500 New Graduate Prize Kirkcudbright Residency 10,500 13,590 3, Fashion Foundry 18,491 4, Heritage Projects - 13,500 14,500 7,500 7,500 7,500 Glasgow , , Briggait phase 2 fundraising income - 5, Exhibition Spaces Meadow Mill, Dundee - 1,000 6,750 4,250 4,250 10,500 South Block, Glasgow 1,523 4,000 6,000 6,500 6,000 9,500 Briggait, Glasgow 4,115 5,500 54,500 35,000 35,000 40,000 Hanson Street, Glasgow 3,100 2,000 2,300 6,500 5,000 6,000 The Steeple, Newburgh ,000 9,000 7,500 Patriothall, Edinburgh ,500 4,000 5,500 39,729 76, ,769 83,700 80,500 94,750

28 26. Notes to the forecasts - continued Actual to 2013/ / / / /18 Mar Arts Programme - expenditure Open Studios Weekend 1,760 8,250 8,250 8,700 8,200 10,000 Dusseldorf Exchange 2,459 2,500 2,500 2,700 3,000 3,000 New Graduate Prize Kirkcudbright Residency 8,321 12,416 3, Fashion Foundry 13, Heritage Projects 2,000 14,500 14,500 7,500 7,500 7,500 Glasgow , , Events Briggait phase 2 fundraising costs - 5, Exhibition Spaces Meadow Mill, Dundee 52 2,930 6,794 4,442 4,442 12,900 South Block, Glasgow - 4,920 5,990 6,530 6,340 12,500 Briggait, Glasgow 5,557 9,004 57,699 36,075 35,917 46,325 Hanson Street, Glasgow - 3,006 2,468 6,022 5,670 8,583 The Steeple, Newburgh ,000 9,000 7,500 Patriothall, Edinburgh ,830 4,830 5,628 34,241 75, ,969 84,799 84, , Staff Costs Salaries 334, , , , , ,943 Pension 23,686 33,151 36,810 39,296 40,082 40,884 Other staff costs 776 3,000 1,500 1,500 1,500 2,000 Training 1,089 3,000 3,000 3,000 3,000 4,000 Employment grants - (17,656) (8,219) Creative Scotland - Briggait phase 2 grant - (12,600) , , , , , , Overheads Marketing / Communications (254) 10,000 10,270 10,547 10,832 11,125 IT Support costs 8,790 8,808 9,546 10,304 10,582 10,868 Print, post & Stationery 3,172 3,276 3,604 3,701 3,801 3,904 Subscriptions & Publications 2,241 1,996 2,050 2,106 2,163 2,221 Telephone 3,757 4,056 4,462 4,582 4,706 4,833 Insurance 5,665 6,721 6,902 7,088 7,280 7,476 Travel Expenses 7,017 7,711 9,000 9,500 9,750 10,000 Legal & Professional fees 15,054 10,000 10,270 10,547 10,832 16,125 Bad & Doubtful debts 4,794 2,500 2,568 2,637 2,708 2,781 Capital Project costs 22,407 2, Other expenses 5,206 5,842 6,999 7,688 7,896 8,609 77,848 63,510 65,671 68,701 70,549 77, Interest & Bank charges Bank interest and charges 2,736 2,500 2,500 2,500 2,500 2,500 Meadow Mill loan interest 22,225 21,505 19,862 18,099 16,210 14,184 Old House loan interest - 1,557 1,575 1,437 1,289 1,131 Energy investment loan - - 5,723 5,286 4,817 4,314 24,961 25,562 29,660 27,322 24,816 22, Other Income Interest / various 2,543 2,750 2,824 2,901 2,979 3,059 Contracts with cultural investors & third sector - 20,000 50,000 50,000 50,000 50,000 2,543 22,750 52,824 52,901 52,979 53, Loan balances Meadow Mill, Dundee 317, , , , , ,173 Old House, Ollach, Skye - 23,364 21,456 19,410 17,216 14,863 Energy investment ,450 71,963 65,006 57, , , , , , ,582

29 27. The Wasps Trust The Wasps Trust Forecast Income and Expenditure Actual to Mar / / / / /18 INCOME Rentals receivable 1 642, , , , , ,384 Other income Other grant funding Interest Receivable TOTAL INCOME 642, , , , , ,419 EXPENDITURE Audit fee 3,200 3,300 3,389 3,481 3,575 3,671 Loan interest 2 38,379 40,563 54,443 68,591 65,866 62,443 Capital project expenses Bank Charges/fees Secretary fees 6,840 15,000 15,405 15,821 16,248 16,687 Legal and Professional fees 18,438 3,000 3,081 3,164 3,250 3,337 Variable head rent to GCC - 34,534 34,957 35,532 36,111 36,844 Other expenses - 4,000 4,108 4,219 4,333 4,450 66, , , , , ,482 GRANT to Wasps Ltd 3 472, , , , , ,000 TOTAL EXPENDITURE 539, , , , , ,482 SURPLUS / (DEFICIT) 102,952 50, , , , ,937 Surplus as a percentage of expenditure 19.1% 8.4% 18.5% 22.6% 25.0% 25.5% Forecast Balance Sheets Actual to Mar / / / / /18 Fixed Assets 4 5,160,000 5,386,095 5,809,860 5,809,860 6,009,860 6,009,860 Other assets 47,347 2,347 2,347 2,347 2,347 2,347 Cash 32,218 55,512 51,724 40,721 41,342 38,905 TOTAL ASSETS 5,239,564 5,443,954 5,863,931 5,852,928 6,053,549 6,051,112 Current Liabilities 2,200 36,734 37,157 37,732 38,311 39,044 Loans due within one year 5 93,886 99, , , , ,650 Long Term Liabilities 5 1,301,640 1,257,683 1,582,143 1,438,580 1,289,474 1,134,823 TOTAL LIABILITIES 1,397,726 1,393,851 1,758,035 1,619,875 1,476,891 1,328,518 NET ASSETS 3,841,838 4,050,103 4,105,895 4,233,054 4,576,658 4,722,594 Unrestricted funds 413, , , , , ,911 Designated funds 3,383,075 3,479,175 3,376,585 3,532,684 3,732,684 3,732,684 Restricted funds 45, , , TOTAL FUNDS 3,841,838 4,050,103 4,105,895 4,233,054 4,576,658 4,722,594

30 28. The Wasps Trust Forecast cashflows Actual to Mar / / / / /18 Charitable Activities Income Grants to Wasps Ltd (472,750) (500,000) (450,000) (450,000) (445,000) (445,000) (472,750) (500,000) (450,000) (450,000) (445,000) (445,000) Other Operational Activities - Income Expenditure (30,445) (25,350) (26,033) (26,735) (27,455) (28,195) (30,405) (25,319) (25,998) (26,700) (27,420) (28,160) Investment - Rental Income 642, , , , , ,384 Head Rent - (34,534) (34,957) (35,532) (36,111) (36,844) 642, , , , , ,540 Servicing of Finance - Interest payments (38,379) (40,563) (54,443) (68,591) (65,866) (62,443) (38,379) (40,563) (54,443) (68,591) (65,866) (62,443) - Net Operational Cash Flow 101,032 50, , , , ,937 Capital Expenditure Capital Funding 18, ,955 2,085, ,511 4,550,597 - Loan draw down - 57, , Capital Expenditure (14,104) (282,495) (2,557,855) (843,402) (4,550,597) - 4,646 (11,040) 4,679 (3,891) - - Analysis of Capital Expenditure Stromness Library, Orkney Capital Funding - 96, Loan draw down - 27, Capital Expenditure (7,140) (117,720) (7,140) 6, Links School, Nairn Capital Funding 107, Loan draw down 57, Capital Expenditure (166,400) (1,400) AI Welders Building, Academy Street, Inverness Capital Funding - 159, , Loan draw down - 150, Capital Expenditure (2,500) (309,989) (843,402) - - (2,500) - (3,891) - - St John's School, Perth Capital Funding 106,455 1,828, Loan draw down - 300, Capital Expenditure (106,455) (2,130,146) (1,601) Briggait, Phase 2 Capital Funding ,550,597 - Loan draw down Capital Expenditure (4,550,597) Loan Repayments Eagle House, Aberdeen (1,598) (1,600) (1,601) (1,625) (1,658) (1,700) Patriothall, Edinburgh (17,936) (18,046) (18,184) (18,539) (18,994) (19,558) Cannonwalls & Claverhouse, Kirkcudbright (5,391) (5,583) (5,782) (5,987) (6,196) (6,444) The Briggait, Glasgow (38,810) (39,097) (39,062) (39,597) (40,336) (41,289) The Steeple, Newburgh (1,966) (1,970) (1,974) (2,006) (2,049) (2,103) South Block, Glasgow (23,619) (27,588) (28,569) (29,585) (30,331) (31,248) Stromness Library, Orkney - - (1,366) (2,154) (2,287) (2,428) Links School, Nairn - (2,023) (4,263) (4,571) (4,902) (5,256) AI Welders Building, Inverness - - (5,561) (11,634) (12,351) (13,113) St John's School, Perth - - (7,378) (23,037) (24,458) (25,966) (89,321) (95,907) (113,739) (138,736) (143,563) (149,106) Decrease / Increase in debtors 45,000 Increase / Decrease in Creditors 34, Net Cash Flow 16,357 23,295 (3,788) (11,002) 621 (2,437) Cash Balance Brough Forward 15,861 32,218 55,512 51,724 40,721 41,342 Forecast Cash Balance 32,218 55,512 51,724 40,721 41,342 38,905

31 29. The Wasps Trust Notes to the Forecasts Actual to Mar / / / / /18 1. Rentals receivable Hanson St, Glasgow 135, , , , , ,000 East Campbell Street, Glasgow 30,000 30,000 30,000 30,000 30,000 30,000 Langstane Place, Aberdeen 45,000 45,000 45,000 45,000 45,000 45,000 Eagle House, Aberdeen 7,500 7,500 7,500 7,500 7,500 7,500 Patriothall, Edinburgh 162, , , , , ,000 Cannonwalls & Claverhouse, Kirkcudbright 19,500 19,500 19,500 19,500 19,500 19,500 Courtyard Studios, Irvine 18,000 18,000 18,000 18,000 18,000 18,000 The Briggait, Glasgow 85,000 89,534 89,657 89,782 89,911 90,044 The Steeple, Newburgh 3,000 3,000 3,000 3,000 3,000 3,000 South Block, Glasgow 137, , , , , ,565 Stromness Library, Orkney - - 1,500 2,500 2,500 2,750 Links School, Nairn - 4,025 8,025 8,025 8,025 8,025 AI Welders Building, Inverness ,000 20,000 20,000 St John's School, Perth ,500 40,000 40,000 40, , , , , , , Loan interest Eagle House, Aberdeen Patriothall, Edinburgh 2,119 2,226 2,430 2,264 1,997 1,624 Cannonwalls & Claverhouse, Kirkcudbright 1,728 1,537 1,338 1, The Briggait, Glasgow 16,980 17,358 18,905 19,415 19,733 19,848 The Steeple, Newburgh South Block, Glasgow 16,969 16,824 15,843 14,827 14,816 14,642 Stromness Library, Orkney - - 1,076 1,509 1,377 1,236 Links School, Nairn - 1,983 3,748 3,440 3,110 2,755 AI Welders Building, Inverness - - 4,431 8,350 7,632 6,871 St John's School, Perth - - 5,945 16,931 15,510 14,001 38,379 40,563 54,443 68,591 65,866 62, Grant to Wasps Ltd Unallocated 137,750 27, Hanson St, Glasgow 90, , , , , ,000 East Campbell Street, Glasgow 18,500 30,000 30,000 30,000 30,000 30,000 Langstane Place, Aberdeen 30,500 45,000 45,000 45,000 45,000 45,000 Eagle House, Aberdeen 4,500 5,500 5,500 5,500 5,500 5,500 Patriothall, Edinburgh 126, , , , , ,000 Cannonwalls & Claverhouse, Kirkcudbright 11,500 11,500 11,500 11,500 11,500 11,500 Courtyard Studios, Irvine 9,000 18,000 18,000 18,000 18,000 18,000 South Block, Glasgow 45,000 60,000 60,000 60,000 60,000 60,000 The Briggait, Glasgow - 28,000 28,000 28,000 28,000 28, , , , , , , Fixed Assets Hanson St, Glasgow 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000 East Campbell Street, Glasgow 225, , , , , ,000 Langstane Place, Aberdeen 400, , , , , ,000 Eagle House, Aberdeen 90,000 90,000 90,000 90,000 90,000 90,000 Patriothall, Edinburgh 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Cannonwalls & Claverhouse, Kirkcudbright 220, , , , , ,000 Courtyard Studios, Irvine 150, , , , , ,000 The Briggait, Glasgow 1,200,000 1,200,000 1,200,000 1,200,000 1,400,000 1,400,000 The Steeple, Newburgh 125, , , , , ,000 South Block, Glasgow 590, , , , , ,000 Stromness Library, Orkney - 7, , , , ,860 Links School, Nairn - 110, , , , ,000 AI Welders Building, Inverness - 2, , , , ,000 St John's School, Perth - 106, , , , ,000 5,160,000 5,386,095 5,809,860 5,809,860 6,009,860 6,009, Loan balances Eagle House, Aberdeen 17,788 16,188 14,587 12,962 11,304 9,604 Patriothall, Edinburgh 136, , ,209 81,670 62,676 43,118 Cannonwalls & Claverhouse, Kirkcudbright 46,449 40,865 35,084 29,097 22,900 16,456 The Briggait, Glasgow 698, , , , , ,733 The Steeple, Newburgh 20,354 18,384 16,410 14,404 12,356 10,253 South Block, Glasgow 476, , , , , ,058 Stromness Library, Orkney - 26,134 23,980 21,692 19,264 Links School, Nairn 55,477 51,214 46,643 41,741 36,485 AI Welders Building, Inverness - 144, , , ,341 St John's School, Perth - 292, , , ,162 1,395,524 1,357,117 1,720,878 1,582,143 1,438,580 1,289,474

32 30. The Wasps Trust Notes to the forecasts - continued Actual to Mar / / / / /18 6. Fixed Assets - Gross Cost Hanson St, Glasgow 1,233,468 1,233,468 1,233,468 1,233,468 1,233,468 1,233,468 East Campbell Street, Glasgow 156, , , , , ,400 Langstane Place, Aberdeen 688, , , , , ,528 Eagle House, Aberdeen 78,525 78,525 78,525 78,525 78,525 78,525 Patriothall, Edinburgh 1,332,505 1,332,505 1,332,505 1,332,505 1,332,505 1,332,505 Cannonwalls & Claverhouse, Kirkcudbright 440, , , , , ,785 Courtyard Studios, Irvine 240, , , , , ,437 The Briggait, Glasgow 6,970,720 6,970,720 6,970,720 6,970,720 11,521,317 11,521,317 The Steeple, Newburgh 457, , , , , ,895 South Block, Glasgow 739, , , , , ,188 Stromness Library, Orkney - 7, , , , ,860 Links School, Nairn - 166, , , , ,400 AI Welders Building, Inverness - 2, ,489 1,155,891 1,155,891 1,155,891 St John's School, Perth - 106,455 2,236,601 2,236,601 2,236,601 2,236,601 12,338,451 12,620,946 15,178,801 16,022,203 20,572,800 20,572, Fixed Assets - Revaluation Hanson St, Glasgow (73,468) (73,468) (73,468) (73,468) (73,468) (73,468) East Campbell Street, Glasgow 68,600 68,600 68,600 68,600 68,600 68,600 Langstane Place, Aberdeen (288,528) (288,528) (288,528) (288,528) (288,528) (288,528) Eagle House, Aberdeen 11,475 11,475 11,475 11,475 11,475 11,475 Patriothall, Edinburgh (332,505) (332,505) (332,505) (332,505) (332,505) (332,505) Cannonwalls & Claverhouse, Kirkcudbright (220,785) (220,785) (220,785) (220,785) (220,785) (220,785) Courtyard Studios, Irvine (90,437) (90,437) (90,437) (90,437) (90,437) (90,437) The Briggait, Glasgow (5,770,720) (5,770,720) (5,770,720) (5,770,720) (10,121,317) (10,121,317) The Steeple, Newburgh (332,895) (332,895) (332,895) (332,895) (332,895) (332,895) South Block, Glasgow (149,188) (149,188) (149,188) (149,188) (149,188) (149,188) Stromness Library, Orkney Links School, Nairn - (56,400) (56,400) (56,400) (56,400) (56,400) AI Welders Building, Inverness - - (67,489) (910,891) (910,891) (910,891) St John's School, Perth - - (2,066,601) (2,066,601) (2,066,601) (2,066,601) (7,178,451) (7,234,851) (9,368,941) (10,212,343) (14,562,940) (14,562,940) 8. Fixed Assets - Mvmvt in Revaluation Reserve Hanson St, Glasgow East Campbell Street, Glasgow Langstane Place, Aberdeen Eagle House, Aberdeen Patriothall, Edinburgh Cannonwalls & Claverhouse, Kirkcudbright Courtyard Studios, Irvine The Briggait, Glasgow (4,350,597) - The Steeple, Newburgh South Block, Glasgow Stromness Library, Orkney Links School, Nairn (56,400) AI Welders Building, Inverness - (67,489) (843,402) - - St John's School, Perth - (2,066,601) (56,400) (2,134,090) (843,402) (4,350,597) - 9. Reconciliation of movement in Net Assets Opening Balance 3,841,840 4,050,103 4,105,895 4,233,054 4,576,658 Surplus from I&E 50, , , , ,937 Capital Funding 213,955 2,085, ,511 4,550,597 - Revaluation (56,400) (2,134,090) (843,402) (4,350,597) - Closing Balance 4,050,103 4,105,895 4,233,054 4,576,658 4,722,594

33 31. Wasps Creative Industries CIC Wasps Creative Industries CIC Forecast Profit and Loss Actual to Mar / / / / /18 INCOME Rental income 174, , , , , ,000 Service charge recoverable 107, , , , , ,000 Bank Interest TOTAL INCOME 282, , , , , ,150 EXPENDITURE Bank Charges ,968 6,643 Depreciation - 5,000 5,000 5,000 5,000 5,000 Overhead 4,468 4,655 4,240 4,828 4,918 5,009 Interim donations to Wasps Ltd 84, , , , , ,250 Rent to Wasps Ltd 67,855 67,855 67,855 67,855 71,248 71,248 Admin costs 156, , , , , ,150 Heat & Light 26,102 27,000 27,729 28,478 29,247 30,036 Rates and Water charges 5,209 5,200 5,340 5,485 5,633 5,785 Insurance 3,920 4,107 4,218 4,332 4,449 4,569 Cleaning 30,459 27,583 28,328 29,093 29,878 30,685 Repairs 8,406 2,527 2,595 2,665 2,737 2,811 Phone 5,131 4,578 4,702 4,829 4,959 5,093 Other service charges 46,986 46,676 47,937 49,231 50,560 51,925 Service charges available for recovery 126, , , , , ,904 TOTAL EXPENDITURE 282, , , , , ,054 PROFIT / (LOSS) prior to final donations 6 2, ,096 Forecast Balance Sheets Actual to Mar 2013/ / / / / Fixed Assets 56,382 95,000 90,000 85,000 80,000 75,000 Other assets 38,119 38,119 38,119 38,119 38,119 38,119 Cash 70,502 34,072 39,478 44,534 37,008 34,116 TOTAL ASSETS 165, , , , , ,234 Trade Creditors 30,820 30,820 30,820 30,820 30,820 30,820 Tenants deposits (client funds) 34,077 34,077 34,077 34,077 34,077 34,077 Loans due within one year ,581 17,988 19,481 Long Term Liabilities 100, , ,000 87,419 69,431 49,950 TOTAL LIABILITIES 164, , , , , ,328 NET ASSETS 106 2,294 2,700 2,756 2,810 12,906 Retained Profits 6 2,194 2,600 2,656 2,710 12,806 Share capital TOTAL FUNDS 106 2,294 2,700 2,756 2,810 12,906

34 32. Wasps Creative Industries CIC Forecast Cashflows 2013/ / / / /18 Operational Activities Income Expenditure (122,607) (125,388) (129,239) (132,680) (136,213) (122,457) (125,239) (129,089) (132,530) (136,063) Investment Rental Income 310, , , , ,000 Rent to Wasps Ltd (67,855) (67,855) (67,855) (71,248) (71,248) 242, , , , ,752 Servicing of Finance Interest payments (5,668) (6,343) Net Operational Cash Flow 119, , , , ,346 Capital Expenditure South Block (43,618) Loan Repayments South Block Loan (12,581) (17,988) Gift Aid Donations to Wasps Ltd (112,500) (118,500) (122,000) (115,500) (109,250) Decrease / Increase in debtors Increase / Decrease in Creditors Net Cash Flow (36,430) 5,406 5,056 (7,526) (2,893) Tenants deposits (client funds) 34,077 34,077 34,077 34,077 34,077 34,077 Grants received in advance 43,618 Available Funds (7,193) (5) 5,401 10,457 2, Forecast Cash Balance 70,502 34,072 39,478 44,534 37,008 34,116

35 33. Principal Financial Assumptions Rental levels head rents During the plan period, rent reviews due under the leases held by Wasps Artists Studios to head landlords (including from Wasps Ltd to The Wasps Trust) do not result in uplift in rental value, due to prevailing property market conditions Rents paid by Wasps Artists Studios to Wasps Trust in 12 equal monthly instalments Wasps Trust commences paying variable head rent (15% of commercial rents) on Briggait and South Block to City Property Glasgow with effect from 1 st April 2013; This accrues over the relevant financial year but under the lease terms only becomes due and payable 8 weeks after the relevant financial year end (i.e. on 26 th April 2014 for 2013/14, etc) Wasps Trust grant Grants paid by Wasps Trust to Wasps Artists Studios in 12 equal monthly instalments Wasps Trust grant to Wasps Artists Studios is set at a level which facilitates sustainability for each organisation Wasps Trust grant allocated to studio provision in the accounts of both entities Loan finance (For variable interest rate loans): Bank of England base rates remain at 0.5% until July 2013, rising to 1.0% in December 2013 and to 2.0% by April 2017 Loans for new projects are taken out at fixed interest rates of 6.0% or (7.0% fixed for existing SIF/SIS facility, linked to SIF grants/risk capital received in prior years) Wasps Creative Industries CIC repays the risk capital element of SIF funding for South Block over a 5 year period from 2016/17 onwards, incurring interest fixed at 8.0% per annum New projects Briggait Phase 2 (owned by The Wasps Trust) to be project managed, leased and operated by Wasps Artists Studios Briggait phase 2 improvements do not give rise to any increase in net head rent payable to Wasps Trust as a result of additional income being matched by additional expenditure and therefore there being no uplift in net income Proposed project at Skye is acquired, financed, developed, operated and managed by Wasps Artists Studios Proposed projects at Stromness, Inverness, Nairn, and Perth are acquired and financed through Wasps Trust, and developed, operated, and managed by Wasps Limited. Rental Income Artist studio rentals rise by 2.7% per annum each April Artist studio occupation rises from currently low 96% to 97% for 2013/14 onwards (below long term average) Creative Industries rental levels, reviewable in accordance with leases of 1, 3 and 5 years duration, have nil uplift during the first 3 years of the plan and growth averaged at 2.0% annually for 2016/17 and 2017/18 Creative industries occupancy at South Block is 92.5% throughout the plan period (currently 95%) and service charge recovery rates increase to 93.5% in and 96% from 2015/16, after initial capped service charge deals end, and the last vacant space is let Staffing Wasps Trust Secretary fee assumed to rise from 6,400 to 15,000 p.a. from 01/04/2013 as proposed by the Secretary The proposed 10,000 legal and professional fees budget for The Wasps Trust for 2013/14 has been split between 7,000 of capital spend for Stromness in the cashflow and 3,000 of general legal and professional expenses Wasps Artists Studios staff grow from 9.0 to 13.7 FTE posts: 3 new posts created in 2013/14, 1 further post (0.7 FTE) in 2015/16 and a further 1 post in 2017/18 Government employment subsidies at the rate of 50% of salary for 12 months is assumed for 3 posts 17,656 in 2013/14 and 8,219 in 2014/15 (Commonwealth Jobs Fund and Graduate Jobs Fund) A further 12,600 of Creative Scotland funding already received for Briggait phase 2 project development to be applied to staffing to back-fill Fundraising and Communications Manager s role to free up her time for fundraising Wasps Artists Studios staff salaries rise 1.0% in April 2013, and 2.0% annually thereafter (below anticipated inflation) Other costs Wasps Trust travel expenses assumed to rise from 250 p.a. to 4,000 p.a. for as proposed by the Secretary General cost inflation of 2.7% p.a. applied to other expenses (excluding head rents and staff costs)

36 34. Arts Programme Arts programme activity is funded from external project grant funding, income achieved from the hire of exhibition/project spaces, and project management fees built into project funding budgets In the cashflow forecast, arts programme income and expenditure are spread evenly throughout the year as a working assumption. In practice there will be timing differences but these will not be material. If project funding is not achieved projects will be scaled back From 2016/17 onwards, external grant funding is assumed to be scaled back to be replaced by modest contributions to the programme from Wasps own resources to create over the mid to longer term an exit strategy from grant funding Energy It has been assumed that during 2013/14, capital finance is raised (50% of non-refundable grants and 50% by 10 year term loan) to invest in energy saving projects Savings are assumed to be generated from 2014/15 onwards Estimated costs and savings have been incorporated based on initial feasibility work; these will require to be fully tested prior to implementation through detailed energy auditing exercises particularly at larger buildings New income streams Property advice services / contracting to grant giving bodies/social lenders: a rate of 20k for 2013/14 and 50k p.a. thereafter has been assumed

37 35. Risk Management A full risk register has been prepared examining a wide range of risks for likelihood and impact, and identifying mitigation actions for each risk. This is available within the Business Plan Supplement. The principal risks to the business plan (for which the risk register records a score of 12 or above) are: Risk Rating Comments / Mitigation Budgets not agreed by Wasps Ltd &Wasps Trust; lack of effective governance Governance issues not resolved to Creative Scotland's satisfaction; Five Cubed funding withdrawn; Briggait, Stromness and Nairn projects cannot proceed Wasps Trust and Wasps Limited do not agree key objectives in plan; plan cannot be implemented Securing agreement on plan between entities takes significant time; delay to implementation; reduced income streams Energy cost savings through investment not achieved; loss of up to 40k of savings from 2014/15 onwards Creative Scotland Five Cubed funding withdrawn; Stromness and Nairn projects not funded Creative Scotland declines to fund Briggait project; project cannot proceed Wasps Trust reduces grant to Wasps Limited (as set out in plan); Wasps Ltd cannot recruit as planned; projects will not be deliverable Significant disagreement arises between Wasps Ltd and Wasps Trust delay to implementation; reduced income 20 Agree budget prior to start of each financial period 20 Agree process for formal discussion of future governance arrangements and report to Creative Scotland 16 Ensure plan discussion is open and constructive 16 Agree plan prior to start of financial year Secure independent advice to test out proposals; develop business case for each investment Meet with Creative Scotland to ensure their support for the plan incl. agreement to governance arrangements Develop application to ensure its success; secure Creative Scotland's approval to the governance arrangements 15 Explain need for grant and secure trustees' agreement 12 Meet regularly to ensure communication is maintained Insufficient communication between Wasps Trust and Wasps Limited 12 Meet regularly to ensure communication is maintained Glasgow City Council / Glasgow Life Briggait funding later than planned; Briggait project implementation delayed Insufficient resources to fundraise effectively for Briggait and other projects; funding delayed or not achieved Adding in more projects to capital investment strategy; insufficient staff to deliver the plan if further workload added Delays to delivery of AI Welders, Inverness and St John's, Perth; income of up to 33k p.a. delayed or not achieved Staffing levels insufficient to manage the estate; repairing response impaired and loss of rent Spend on repairs and maintenance not sufficient; building quality declines, lettings not achieved, loss of rent A delay in signing off plan, delays staff recruitment; government subsidies lost, cost rises, significant delays to recruitment Approach GCC at senior level to discuss funding potential and timing Recruit staff to back-fill posts to ensure Head of Business Development can focus on the project; secure other resources through the project budget. Boards of both organisations to agree a single capital development plan to avoid adding in unplanned workload Programme carefully for both projects to ensure timelines are realistic; priorities these projects to safeguard income for the organisation Recruit second Property Maintenance Officer and Studios Administrator, as allowed for in plan Ensure maintenance spend is maintained; budget for surpluses within Wasps Ltd to allow room for unanticipated repair costs arising during year Agree plan between the organisations to prevent delays in implementation These risks and mitigation actions will be monitored and regularly re-assessed by the management team, aiming to reduce the likelihood and impact for each identified risk. The board will review the risk register annually.

38 36. Appendices

39 37. Appendix A: Studio Locations City Property 77 Hanson Street, Dennistoun *# Glasgow The Briggait, 141 Bridgegate, Merchant City * ^ South Block, 60 Osborne Street, Merchant City * ^ Dovehill Studios, 15 East Campbell Street # Patriothall Studios, 48 Hamilton Place, Stockbridge *# Edinburgh 2-3 West Park Place, Haymarket Albion Road Studios, 78 Albion Road, Leith Aberdeen 48 Langstane Place *# Eagle House, Shore Lane # Dundee Meadow Mill, W Henderson s Wynd, Blackness * Irvine Courtyard Studios, Harbour Street # Selkirk St Mary s Mill, Level Crossing Road Kirkcudbright Cannonwalls/Claverhouse, High Street # Skye Old House, Ollach, Nairn Blue Door Studios, 48 High Street Shetland The Booth, New Street, Scalloway Newburgh The Steeple, High Street *# * Project space # Owned by The Wasps Trust ^ Long Lease by Wasps Owned by Wasps Limited

40 38. Appendix B: Capital Investment Summary of Costs and Funding Capital investment summary 2013/ /18 Links School, Nairn * Old House, Skye * Stromness Library, Orkney * # Briggait Phase II, Glasgow # Academy Street, Inverness St John's School, Perth # TOTALS CAPITAL COSTS Acquisition 118, ,950 7, , , ,390 Redevelopment costs 48, , ,720 4,550, ,491 2,059,101 7,799, , , ,860 4,550,597 1,155,891 2,236,601 8,483,523 FINANCING Creative Scotland - Five Cubed funding 97,500 44, , % Creative Scotland - lottery funding 2,000,000 99, ,000 2,314, % Local authority 1,000,000 20,000 1,020, % SIF loan funding (already secured) 57,500 25,000 82, % Other loan funding 27, , , , % Heritage / conservation funding 800, , % Charitable grant giving trust 10,000 51, , ,000 1,700,000 2,561, % Other gifts and donations 224, , , % Mass public campaign 200, , % Own funds 1, ,391 1,601 10, % 166, , ,860 4,550,597 1,155,891 2,236,601 8,483,523 * = completion of Five Cubed # = acquired on long lease

41 39. Appendix C: Capital Investment Target Outcomes Project Gross Internal Area Net Internal Area Net lettable area No of Spaces No of Artists No of creative businesses Estimated employment Comments Links School, Nairn 2,500 1,971 1, GIA estimated Old House, Ollach, Skye - residency space 3,000 2,750 2, Artist users p.a.; areas estimated Stromness Library, Ornkey 2,250 1,850 1, Briggait Creation Centre (new space only) 21,000 17,500 15, [676] AI Welders, Acadmeny Street Inverness 8,667 Not available 6, All estimates; no information available Estimated professional dancers, and other artists p.a.; 10,000 estimated class attendees GIA from architectural feasibility study; NIA estimated St John's School, Perth 24,876 22,788 15, Areas provided by architect TOTALS 62,293 46,859 41, [109] [ ] Employment figure excludes Briggait

42 40. Appendix D: Staff Resource Planning Current Staffing Wasps Artists Studios Department Post Full / Part time F.T.E. Chief Executive Full 1.0 Property Property Asset Manager Full 1.0 Property Maintenance Officer Full 1.0 Property Projects Officer Part 0.5 Fundraising, Communication Fundraising and Communications Manager Full 1.0 Tenant Liason and Communications Officer Full 1.0 Finance Finance Manager Part 0.6 Management Accountant Full 1.0 Finance Assistant Part 0.9 Administrator Full Proposed staffing Wasps Artists Studios Department Post Full / Part time F.T.E. Commencing Chief Executive Full Property Arts Head of Property Full Property Maintenance Officer (Glasgow) Full Property Maintenance Officer (Rest of estate) Full /14 Studios Administrator Full /14 Arts Development Officer Full /14 Business Development Admin and Support Head of Business Development Full Projects Development Officer Part Communications Officer Full Head of Finance Part Management Accountant Full Finance Assistant Part Administrator / Reception Full Office Manager Part /

43 41. Appendix E: Corporate Information Full name Wasps Artists Studios Workshop and Artists Studio Provision [Scotland] Limited The Wasps Trust - - Wasps Creative Industries CIC Date incorporated / founded 01/04/ /12/ /08/2010 Charity no. SC SC Company registration no. SC SC Directors / Trustees Steve Inch (chair) Arthur Watson John Crallan Alan Pert Jim Mullan Sally Moir Eleanor McAllister Calum Macaulay Gordon Moir Leslie Robb Peter McCaughey Ian Wall (chair) Donald Reid Tom Laurie Malcolm Deans Morgan Howarth Bill Nicol Annette Bruton Mary Wilson David Bankier Steve Inch Gordon Moir Leslie Robb Peter McCaughey Steve Inch Jim Mullan David Cook Company Secretary / Secretary David Cook Alistair Duncan David Cook Business Address Auditors Bankers The Briggait, 141 Bridgegate, Glasgow G1 5HZ Danzig and Co, Danzig House, 8-12 Torphichen Street, Edinburgh EH3 8JQ Clydesdale Bank Plc, Business Banking Centre, 25 Charlotte Square, Edinburgh EH2 4ET Triodos Bank, Deanery Road, Bristol BS1 5AS Appendix F: Staffing David Cook BA MSc Tim Alter GMus(Hons) ACMA Alison Fullerton BA(Hons) Alan Simpson BSc(Hons) MRICS Helen Moore BA(Hons) Michelle Emery-Barker BA(Hons) Chris Biddlecombe BA(Hons) MFA David Cameron Ian Fordyce BA(Hons) CA Alexis Smith Chief Executive Finance Manager Fundraising and Communications Manager Property Asset Manager Communications and Tenant Liaison Officer Administrator Property Projects Officer Property Maintenance Officer Management Accountant Finance Officer

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