Today, Pop Brixton Ltd. has published its financial accounts for the year ending 31st January 2018. As a company committed to transparency, we wanted to share the key figures from these accounts and provide further context for understanding them, but you can see the full accounts here.
Overall, the accounts show that the project is in a healthy financial position, driven largely by a 10% increase in revenue through our member businesses, and increased revenue from events. Operating costs, such as the provision of security, maintenance, utilities and insurance, were slightly lower than the previous period, despite considerable reinvestment into site improvements and upgrades.
This has contributed to a 218% increase in operating profit (EBITDA), increasing to £345,772 from £108,717 the previous year.
Despite positive revenue growth and impressive EBITDA increases, the accounts for Pop Brixton show a loss this year of £35,169. In large part this is due to non-operating costs, chief among them is the depreciation of the cost of the building - in the accounts, profits are offset against the original cost of building and debts associated with the build and the project has not yet broken even on these.
Based on increased revenues and strong EBITDA performance, Pop is now expected to break even on build costs and repay the associated debts in 2020. Loans received from Lambeth Council for the build have been repaid and we are confident in our ability to provide further financial benefit to Lambeth Council via an agreed 50% profit share from the point of break even.
In 2018 we’ve welcomed a new wave of local talent and look forward to building on our members’ successes in 2019. As always, we remain committed to delivering a positive social impact in the local community and Lambeth - read more about what our members have achieved here [https://www.popbrixton.org/blog/2018/01/17/2-more-years-of-pop-brixton/].
James Leay, Managing Lead at Make Shift, the company behind Pop Brixton, said: “We are delighted that our member businesses continue to thrive, as shown in their revenue growth this year. In this, the project’s third year, member businesses have seen 10% increase in their revenue, which is especially encouraging at a challenging time for businesses all over the country.”
Cllr Matthew Bennett, Cabinet Member for Planning, Investment and New Homes, said: “Pop Brixton is proving to be a great example of using the land we do own to leverage benefit for the community. It’s successfully supporting new Lambeth small businesses, housing community groups such as Reprezent, and has apprenticeship opportunities built into its operating model.”