In 2021 the institute earned £20.6m: its annual turnover included £8m of membership fees and £5.4m of ‘trading activities’, such as renting a place.
However, RIBA spent £28.6 million, including £1.4 million on ‘Practice and Profession’ and £3.6 million on buildings and communications.
This equates to a shortfall of £8m for 2021, down marginally from £8.2m in 2020. The latest shortfall came on the back of a £400,000 annual increase in spending – despite a pledge by the institute’s former chief executive, Alan Vallance, Finally September to cut its expenditures to cut the deficit.
Valance also said which the quartet will trade through [its] Center deficit to return to break-even mode in 2022 or 2023′. A RIBA spokesperson said the institute is now working on eliminating the deficit in 2023, but it “is aware of the current volatility and pressures of broader economic conditions and their impact on our income and investments”.
RIBA also reported hitting £6.5m after exiting two long-term leases for buildings – one of which is understood to be 76 Portland Place, an office building at its 66th headquarters in Portland Place.
Final costs of exiting the leases are unknown, but RIBA said ‘based on the latest assessments’ it expects to post a £3.4 million impairment on its fixed assets, in addition to a £2.5 million provision for ‘onerous contracts’ and 600,000 £1 increase in the provision for ruin costs.
Despite running a shortfall of £8m and losing another £6.5m through leases, RIBA’s net worth increased by £58m in 2021, to £412m. This is because the company She sold her stake in NBS For £112.7m – £71.2m more than its book value is in RIBA’s 2020 accounts.
However, the RIBA notes that “the vast majority of the value on the balance sheet is not easily accessible.” RIBA has £397 million stashed in dedicated funds, and its most important assets are archives of books, graphics, photos and periodicals.
RIBA spent £550,000 on redundancy costs
Elsewhere in its financial accounts, the RIBA revealed that it spent £550,000 on layoffs costs last year, on top of the £407,000 in 2020. The figure comes after a wave of RIBA employees laid off at the end of last year, although the figures are not Include redundancies in organizational restructuring in 2022.
RIBA had an average of 312 employees in 2021, with 37 earning more than £60,000. Nine employees earned more than £100,000, while the best-paid director – Valance – earned a salary of £296,000, plus £8,000 in pension contributions.
“Our positive progress toward financial stability is an essential part of our transformation programme,” the association said in a statement. We have reduced our operating budget from £8.2 million in 2020 to £8.0 million in 2021.
This performance was in line with our expectations for this year. They include the loss in dividend income following our sale of NBS, which will be replaced by income from the investment fund we built from the proceeds from the sale of NBS, and the continuing impact of Covid on our trading income.
The institute added: “We are taking decisive and targeted action to put the organization on a more stable and sustainable footing. This includes getting the right shape and the right scale: smaller and smaller.
“We are working to reduce isolation, eliminate duplication, and focus core competencies to create a more resilient and more member-centric organization—this includes growing an investment fund from our successful sale of NBS, to support our activities.”
On Tuesday, announced usury Hire a new CEO, Valerie Vaughan Dick, to take command from Vallance. Vaughan Dick, currently Chair of the Membership Organization for Physicians, is a qualified accountant and holds a PhD in Management.