London Transport Museum is an educational and heritage preservation charity. Our purpose is to conserve and explain the history of London’s transport, to offer people an understanding of the Capital’s past development and to engage them in the debate about its future.

London Transport Museum Annual STRATEGIC REPORT 03 Message from the Chair of Trustees and Managing Director Report 2016/17 incorporating the 05 Designology Strategic Report, Annual Report of 13 The year in summary the Trustees and financial 20 Access and museum operations statements for the year ended 23 Education and engagement 31 March 2017 28 Heritage and collections 32 Plans for the future 34 Interchange 36 Income and support 41 Corporate Members 43 Supporters and Sponsors 45 Patrons Circle 48 Public programme 57 Financial review

ANNUAL REPORT OF THE TRUSTEES 64 History of the Museum 66 Structure, governance and management 72 Trustees’ statement 74 Trustees and advisers 76 Independent auditor’s report 79 Financial statements

We are proud to present the London Transport Museum (LTM) A highlight of our integrated education strategy is the ‘Enjoyment Annual Report for 2016/17. It was another busy and exciting to Employment’ programme which builds on young visitors’ year with nearly 370,000 visitors to the Museum and Depot, enjoyment of our galleries and points them towards a career in making it our second-best result ever. We also increased our transport and engineering. Industry partners, encouraged by our reach well beyond the Museum’s walls with successful ability to work with young people to develop their confidence and education programmes, popular tours, heritage vehicle trips employability, have engaged with us to promote careers in the and much more. transport sector. The programme has gained further momentum this year, with three new sponsors coming on board. The importance of good design in London was a major theme in our activities this year. Under the banner of ‘Transported by The popularity of the Museum is gratifying and we want to see Design’ we held a year-long celebration of the significance of LTM continue to thrive and expand. There are challenging times design to the past, present and future of London’s transport ahead as our external funding reduces and we face technical and system and civic environment. Highlights were the ‘Designology’ regulatory issues which could affect the operation of our vintage exhibition with its busy and innovative Studio programme, the vehicles. But through the strategic and controlled investment of Regent Street Design Festival in June and the lasting our reserves and the growth of our income generating activities commemoration of Frank Pick, the godfather of urban design, we plan to make the Museum more resilient and sustainable. Our through the installation of a memorial at Piccadilly Circus success to date would not be possible without the dedication of station in November. our fellow trustees, the creativity and energy of our excellent staff, the commitment of a remarkable group of volunteers, and Increasingly, we are extending our activities beyond our jewel-box the support of important stakeholders such as the Museum of a museum and out across the Capital. Our vintage buses Friends and Transport for London. We are confident that this attended dozens of events, and almost all of London’s Year 6 potent combination will continue to create an environment which school children experienced our Safety and Citizenship attracts visitors, shoppers, corporate members, buyers of event programme this year. The ‘Hidden London’ initiative continued tickets, patrons and donors to be part of the life of the Museum. to grow with a sold-out programme of nearly 20,000 tours of the Capital’s secret transport heritage. Alongside the tours of disused Tube stations, this year we added London Underground’s former headquarters – Charles Holden’s Art Deco masterpiece at 55 Broadway. Keith Ludeman, Chair of Trustees

Sam Mullins, Managing Director

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The quality of design which underpins London's transport services Part of a year-long celebration of the transforms the system from something merely functional to an essential element of the Capital’s sense of place and identity. Through our importance of good design, Designology was Designology exhibition we wanted to celebrate London’s internationally the most object-rich exhibition we have ever recognised iconography and explore the influence that thoughtful and persuasive design has on our daily experience of the urban environment. staged. It was also the start of a new era of live programming. In the exhibition, architecture, graphics, industrial design, product design and service design were brought together to showcase the complete and integrated approach to design taken by Transport for London (TfL) and its predecessor organisations over the last century. With such a large scope, it is perhaps not surprising that Designology featured more objects than any other LTM exhibition, with 264 items on display. A quarter of these were on loan, and many needed special conservation measures before being displayed. Some items had never been exhibited before, including: an 1834 Shillibeer Woolwich Omnibus timetable; original architectural drawings by Charles Holden of Arnos Grove and Sudbury art deco stations; and a 1994 magnetic model kit of a station ticket hall.

At the start of the exhibition, visitors were introduced to the products of design across the transport modes from past to present, ranging across vehicle design, textiles, ceramics, typography and graphic design. Our visitors were encouraged to exercise their own creative skills by putting a design twist on a familiar feature of the transport system - the humble bus stop.

The second section explored how classic designs are born. Using prototypes, mock-ups, photos, notes and illustrations to demonstrate the creative process, a range of case studies revealed the stories behind familiar designs. These included: Wallace Sewell’s Barman Tube seat moquette pattern, which incorporates London landmarks; the Legible London mapping ‘miniliths’ that aid urban navigation; and a redesign of the classic Johnston typeface to bring it into the modern world of hashtags and email addresses.

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Not all designs are destined to become classics. Designology also The Designology Studio Programme included ideas which, though impressive in vision, were not taken beyond prototype, such as a lighting installation for Holborn station made in the The live events programme responded to the Designology exhibition’s mid-eighties using early LED technology. The objects selected to tell content, bringing it to life by working with real designers to share, these stories included rare material such as delicate engineering drawings explore, debate and re-design. We themed the events programme and fragile architectural models of station buildings and were brought to into four seasons, each of which featured weekly studio events and life by the stories of their designers. a Late Debate.

Looking to the future, the final section of the exhibition was a pop-up SEASON 1: SOCIAL BEHAVIOUR DATA AND MAPPING design Studio where visitors could meet professional and student The first theme explored how good design influences behaviour, designers in residence and discover more about contemporary design improves experiences and enhances the safety and performance of our innovation. From textile designers who create the fabric patterns for transport system Tube seats, to architects working on the platform design of Crossrail, live events offered an opportunity for visitors to meet and discuss ideas with SEASON 2: BEYOND THE SURFACE creators from many disciplines. Highlights of the Studio programme This season explored how the principles of good design help to create included TfL’s Visual Services Animator giving visitors mini tutorials on an attractive, safe, well connected streets and places animation programme, and a digital loom producing unique textile designs live in front of visitors. Students from the Royal College of Art SEASON 3: DESIGNING THE TUBE/ WEAVING FUTURES also showcased their work on the design of autonomous vehicles. The third season explored how the principles of good design enable us to travel on an attractive, safe and well-connected underground network. Themes from the Studio programme inspired our new Late Debates This season included Weaving Futures where the focus turned to textile strand of topical discussions and overall Designology featured 176 live design, and featured a state of the art TC2 digital jacquard loom. events including talks, workshops, debates and residencies, with over 120 Professional designers worked with our Studio weavers, Rosie Green industry speakers, contributors and partners. We actively engaged with and Hanna Vinlöf–Nylen, to create new designs to a common over 2,000 visitors as well as inspiring many more who visited the transport-related brief Designology gallery, and we are looking to use many of the innovative SEASON 4: DRIVERLESS FUTURES approaches to audience engagement that we trialled this year for future Presented in partnership the Royal College of Art (RCA), this theme exhibitions and events - and perhaps in the permanent galleries too. explored how autonomous vehicles could present the most significant

change in transport since the transition from horse drawn carriages to Designology was part of LTM and TfL’s Transported by Design season motorised vehicles supported by Exterion Media. The book, London by Design, created exclusively for the Museum, showcases the designs of London’s transport over the years and is available in the Museum shop or online.

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2 July 2016 Designing an Accessible London SEASON 1: SOCIAL BEHAVIOUR DATA AND MAPPING Visitors joined Wayfinder, Coderdojo and BBC Make it Digital, to find out about the Open Source iBeacons 8 May 2016 Defining a City Through Good Design project with Royal London Society for the Blind, and One of TfL’s senior industrial designers explored the discovered how innovative new technology could textiles, colours and shapes that make London’s make London more accessible to the visually impaired transport system unique 6 – 8 July 2016 Animate the Future 1 June, Posters - For Comfort’s Sake! Behind-the-scenes with TFL’s Visual Services team, visitors could see a professional animator at work and 4 June 2016 Visitors discovered how posters can influence receive mini tutorials on an animation programme behaviour, and looked at LTM’s poster archive to create their own behaviour change poster 16 July 2016 Legible London

11 June 2016 Let’s Get Digital Senior Legible London team members worked with Young Volunteers to design a new wayfinding system Students from University College London’s (UCL) for the Museum and visitors were encouraged to Centre for Advanced Spatial Analysis reimagined the explore this new system and find out more about bus shelter Legible London 18 June 2016 The Human Factor! 18 – 23 July 2016 TFL Experience Studio TFL’s Human Factors Team explored how the needs Working with TFL’s UX (user experience) designers and of people are analysed and incorporated into the editors, visitors could share their experiences and development of a useable transport network help develop digital services for London 25 June 2016 More than Just A to B 28 July 2016 Late Debate: Social Behaviour and Mapping TFL’s Design and Communities Manager Ann A mixture of talks, discussions, workshops and Gavaghan explored how our everyday journeys can creative activities, around the key themes of the be improved through good design Design Studio’s first season

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1 October 2016 Let’s Take the River! SEASON 2: BEYOND THE SURFACE Visitors learnt about what London River Services are doing to encourage a river transport revival, then had 20 August 2016 Design a Street the chance to design for the movement of people and TfL’s Streetscape Manager demonstrated how TfL is freight, while factoring in complex ecosystems influencing the design of our streets, and visitors 6 October; Pedal Power could design a London street - placing trees, parking 8 October 2016 TfL’s Road Space Management Design team looked at spaces and all the street furniture how cyclists help to shape London’s streetscape, with 22 August – Architects of the Future! a cycle superhighways design task for Studio visitors 2 September 2016 Family fun over the summer holiday that explored architecture drawings and gave visitors the chance 13 October 2016 Late Debate: Beyond the Surface to have a go at architectural model making and An evening event of workshops, talks and interactive experience state of the art 3D printing debates inspired by the Studio programme, and a chance to see the Museum after dark 10 September 2016 Beyond the Infrastructure A hands-on residency with Grimshaw Architects that explored the influence of urban design projects on local communities and neighbourhoods 17 September 2016 Lighting our Streets Lighting experts DW Windsor helped visitors find out more about London’s iconic street lighting and design a street light of their own 24 September 2016 More than Just a Shelter Lacock Gullam, designers of street furniture, wayfinding and transport information solutions, looked at the way that good design could change our experience of bus shelters

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1 December, Winning Designs Woven Live SEASON 3: DESIGNING THE TUBE/ WEAVING FUTURES 3 December 2016 Final year textile design degree students from Central Saint Martins, University of The Arts London were 21 October; Illustrating the Idiom competitively selected by Transport for London and 22 October 2016 Visitors were introduced to the Underground textile companies to have their work woven live in Station Design Idiom and were invited to celebrate the studio ‘Big Draw’ month by creating a giant sketch of 6 December, Turner Prize Winner’s Approach to Textiles with designs from the Tube 8 December 2016 Assemble 2015 Turner Prize winning design collective Assemble 10 November 2016 Reimagining Your Journey - Mobility as a Service explained how they innovatively approached and An active session With Atkins which looked at the interpreted our design brief integration of multimodal transport options through a digital platform 9 December, Textile ‘Design to Manufacture’ with Camira 10 December Independent UK based design and manufacture 16 November 2016 Designed for Growth 2016 company, Camira shared their diverse experience of Led by Grimshaw Architects, this hands-on session fabric production provided a unique insight into the multidisciplinary 13 December, Gainsborough Weaving Take On Transport working environment of two major projects: 14 December Visitors found out about Gainsborough’s Crossrail and the Northern Line Extension 2016 extraordinary collection of inspirational fabrics, built 22 November, Moquette Design with Wallace Sewell up over the last 100 years, and watched them work up four new designs on the digital loom 26 November 2016 Visitors were tasked to come up with their own moquette designs for London 20 December, Translating Printed Designs into Woven Textiles 22 December Linda Florence, bespoke hand printed wallpaper and 26 January 2017 Late Debate: Design on the Underground 2016 installation designer, was on hand to talk about An evening of ‘circuit training for the brain’ at our traditional and new print making techniques including third Late Debate session based on the theme of silk screen-printing, ceramic printing and laser cutting Designing the Tube

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3 January, Studio Houndstooth Interrogate Textiles 9 February, Weaving Music with BeatWoven® 4 January 2017 Visitors found out about Studio Houndstooth’s 10 February 2017 Award winning, avant-garde textiles label approach to investigating, interrogating and BeatWoven® exploring how they use songs and instigating innovative textile and material design sounds to visualise and orchestrate pattern processes through their interpretation of our formations in textile design transport design brief 13 February, Rare Thread 6 January, Comfort and Textiles 14 February 2017 Visitors could watch champions of hand and 7 January 2017 Textile Designer, Josephine Ortega explained how machine woven textile design and finishing, Rare she challenges the boundaries of weight, density Thread, as they worked with our weavers and scale of transport fabrics, resulting in bespoke, hand crafted designs 17 February, Upholster and Accessorise with Eleanor Pritchard 18 February 2017 Visitors found out about using geometrics and 12 January, Takram’s Take On Textiles graphic reversible patterns to create clean, 14 January 2017 Specialist designers from Takram at work in contemporary design the studio

25 January, Research Collaboration with Brock, Dempsey & 26 January, Veja 30 January 2017 These sessions included electronics constructed in woven structures to make integrated soft circuits, wearable technology and smart textiles 3 February, Industry to Art 4 February 2017 Sessions with London based artist Ismini Samanidou, whose design practice touches on the boundaries of craft, art and design 7 February 2017 Textile ‘Design to Manufacture’ with Camira Independent UK based design and manufacture company, Camira shared their diverse experience of fabric production

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SEASON 4: DRIVERLESS FUTURES

9 March 2017 Entertaining Interiors RCA designers were on hand to explore how the inside of our cars and vehicles might change in the future 16 March 2017 What Can be Made ‘Driverless’? RCA designers explored what else might become autonomous in the future. Advertisements, vending machines, showers? Visitors helped create new concepts 6 April 2017 Cars for Kids Will kids have their own cars in future? RCA designers helped visitors design vehicles for people below the driving licence age - automation for the next generation! 13 April 2017 Autonomous Architecture RCA designers and architects looked at how our urban spaces may evolve and develop as a result of driverless vehicles 20 April 2017 Closing Debate: Driverless Futures, Utopia or Dystopia? Discussion and insight on impacts of autonomous vehicles on people, organisations and environments. The session included talks by an expert panel and invited the audience to share their views, hopes or concerns

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Nearly 370,000 people visited Covent Garden and Acton Depot, making Each year we set targets for visitor numbers and 2016/17 our second-best year ever for visitor numbers. With major central London attractions reporting footfall between 15 and 25 per cent down other key measures. We also establish strategic this year, LTM’s performance is all the more remarkable as we were only development goals for the organisation (see the 10 per cent below the previous year’s record-breaking result.

‘Plans for the Future’ section for the goals we We also held two successful Acton Open Weekends and grew the Hidden set this year). How well did we perform against London initiative substantially, adding new locations and yet more tours of disused stations and secret tunnels. There were no Museum-led steam our objectives? train runs in 2016/17 but our heritage buses operated at a range of events, and we continued to deliver a great programme of activities for our varied audiences, including family fun during school holidays, the innovative Designology studio, and the Friday Lates and Late Debates programmes for adult visitors.

Our education programmes included special early morning opening for families with special needs, and the TfL Safety and Citizenship and Youth Travel Ambassador projects which reached tens of thousands of young Londoners.

The Museum’s programme of activities can be found on page 49, and more information on our charitable activities this year can be found in subsequent sections of this report

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2016/17 Key Performance Indicators

Museum and Depot Visitors

367,916

410,000

0 250,000 500,000

Visits to LTM Websites

1,398,026

1,100,000

0 500,000 1,000,000 1,500,000

Pupils Participating in Safety and Citizenship Programme

108,790

118,070

0 50,000 100,000 150,000

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Education Visitors to LTM

25,395

25,000

0 10,000 20,000 30,000

Number of Collection Records Enhanced*

404,303

335,000

0 250,000 500,000

*Improvements associated with the Collections Online project affected significant numbers of records

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Trends 2008/09 – 2016/17

Museum and Depot Visitors Visits to LTM Websites 500,000 1,500,000

250,000 1,000,000

0 500,000

Pupils Participating in Safety and Citizenship Programme Number of Collection Records Enhanced 150,000 500000

125,000 250000 100,000

75,000 0

Education Visitors to LTM Note:

30,000 (i) No data available before 2009. (ii) The Born Digital and Collections Online projects began in 2015 and have affected significant numbers of records

20,000

10,000

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1) Creating additional commercial value to promote sustainability As outlined in the 2015/16 Annual Report, last A significant redevelopment of the Museum shop was undertaken during the year. Retail fittings, lighting and décor were all updated, new ranges year we set out four key areas for strategic and merchandise added, and a positive impact on sales revenue is development that would allow LTM to maximise expected in 2017/18. The shop includes new kiosk technology for browsing through our poster archive and the upper floor can now also be used for its effectiveness at Covent Garden, promote evening events, creating new commercial opportunities for the Museum. financial sustainability and help to expand There was also considerable change for our online store. After a tender capacity beyond the Museum’s walls. process, we moved to a new web shop provider and new payment We have made some important progress in gateway, and transferred much of our stock to a specialist organisation in the last 12 months. York who now undertakes our web sales fulfilment.

2) Advancing the Distributed Museum to widen our reach With the Museum feeling at times close to capacity for visitors, the concept of the ‘Distributed Museum’ is a way of extending our reach and impact beyond our busy central London base. Hidden London is a flagship project for this and in 2016/17, as planned, we ran more than twice as many tours, adding two new venues (Euston and 55 Broadway), and welcoming nearly 20,000 visitors. We also co-commissioned a memorial to Frank Pick at Piccadilly Circus, attended bus garage open days and helped to deliver the successful Regent Street design festival.

We spent some time this year evaluating an offer to create an additional Museum venue in west London as part of a proposed property development. Although this project did not materialise, we remain committed to seeking out new opportunities for sustainable development beyond the Covent Garden site.

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3) Developing value in all our relationships to increase our impact We improved our project management process as planned this year and Under the banner of Customer Data Excellence we have been working added new layers of management reporting for the Trustees and Trading to bring together data on visitors, shoppers and supporters to improve Board. As noted in our last Annual Report, our accommodation resources the quality and relevance of our contact with audiences. We have now are coming under increasing pressure so we were pleased to bring the rent linked the information from admissions, retail, website and the poster review for the main Museum galleries to a satisfactory conclusion this kiosks with our email marketing system, enabling us to grow the year. With support from the Museum management and external experts, number of subscribers, provide better content and increase open TfL (who hold the lease for Covent Garden) were successful in limiting the rates and conversion. rent increase to 11% and we are extremely grateful that they have also undertaken not to pass this additional amount onto LTM. Despite this We also ran a large-scale training programme this year to improve our good news, we are still facing an uncertain future for the adjacent office customer culture and create a single audience experience throughout the space where the current lease expires in 2018. In response to this, we Museum. Expert trainers People 1st delivered their ‘World Host Principles undertook some work to assess our staff accommodation requirements of Customer Services’ programme to more than 100 staff from across the at Covent Garden and have engaged some support to help us develop a Museum. Linked to this initiative we have also developed a draft Customer longer-term accommodation strategy. Strategy and formed a Customer Group to improve our understanding of how our customers see us. The group has begun work on a master plan for the Covent Garden building which includes gallery upgrades and improvements to the visitor experience.

4) Maximising the use of our resources to ensure efficiency

We made great strides this year towards our goal of a new Collections Online facility that will reinvigorate access to our collections on the web. Although we had intended to develop a comprehensive IT strategy, the loss of key personnel has delayed this. In the medium term, our aim is now to explore closer integration with TfL’s IT infrastructure and support services, to bring economies of scale and greater resilience to the Museum’s technology platforms.

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With nearly 360,000 visitors coming to Covent Garden, over 10,000 to We want our collections, exhibitions and events Acton and 20,000 joining our Hidden London Tours, 2016/17 was our second most successful year on record. We joined forces with TfL to be enjoyed by as many people as possible. colleagues for a hugely successful festival on Regent Street and took our Access is provided daily at the Museum in vehicles to events across the country. Our public programme expanded to include the innovative Designology studio and regular Late Debates, Covent Garden, through regular tours and open and we delivered improvements to our website and online resources. weekends at the Museum Depot in Acton, and The major exhibition this year was Designology, which explored the art via the Museum website. Our heritage vehicle and aesthetics behind the functional and familiar aspects of transport in outings, Hidden London tours and a rich London. The exhibition explored how design is encountered in our programme of special events create further everyday journeys, how it has evolved over the last century, and how our travel experiences might develop in the future. Designology opened with opportunities to inspire audiences with the a successful Friday Late in May, offering a lively mix of talks, tours, craft story of London’s journey. and workshop activities. The exhibition gallery featured an integrated studio space which played host to participatory workshops and designers in residence. Over the course of the exhibition, the studio programme explored four themes: Social Behaviour, Wayfinding, Data and Mapping; Beyond the Surface; Designing the Tube; and Driverless Futures, Utopia or Dystopia? We plan to use a similar format for future activities.

Designology was also at the heart of this year’s public programme, with events exploring different areas of design from station architecture tours through to a talk by designer and co-founder of Red or Dead, Wayne Hemingway, about creating the new London Underground staff uniform. We also introduced Late Debates to our programme. Building on our successful thought leadership programme, the Late Debates featured interactive discussions between the public and subject-matter experts, taking topics from the Designology studio programme as their starting point. The format was well received and we intend to continue developing this type of debate in our future programmes, along with another innovation trialled this year, ‘Museum Makers’- an evening craft workshop event that proved very popular and helped the Museum reach a new audience.

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As well as regular monthly tours, we held two major Open Weekends at including exterior sculptures by Henry Moore and Jacob Epstein. The Acton Depot. In April we celebrated the centenary of the Johnston programme was as popular as ever with tours selling out quickly. typeface with talks, films, workshops, tours and activities including the remarkable ‘Big Steam Print’ in association with the Ditchling Museum, We also played a major part in the Regent Street Design Festival in 2016. which uses a steam roller to make giant-size prints. In September, the Showcasing the best in transport-inspired design, Regent Street was theme was the London Transport roundel and Frank Pick’s impressive taken over by the Museum and TfL and featured a host of activities and design legacy. Among the usual Depot activities, we were joined by a exhibits including horse-drawn and heritage motor buses, a full size 1927 parkour group who performed their urban acrobatics in the Depot yard. Tube train carriage, a unique spinning class featuring Santander Cycle Hire bikes, TED-style talks on technology and design, and a gigantic wooden Both Edward Johnston and Frank Pick were celebrated across our public railway set. It is estimated that 200,000 people took part in the festival. programme, which included more Friday Lates and a talk by Eiichi Kono, the creator of Johnston 100, an update of the famous typeface for the We want the Museum and its content to be as accessible as possible and 21st century. We also helped to deliver a permanent art installation to the website plays a major part in this. As part of our commitment to commemorate Pick at Piccadilly Circus. The artwork, entitled improving the visitor experience, we updated our online ticketing site this BEAUTY < IMMORTALITY was created by Turner Prize nominated and year, and we have seen a noticeable increase in the number of season BAFTA award-winning artists Langlands & Bell and commissioned by tickets sold online, supporting our aim to sell 40 per cent of season London Transport Museum and Art on the Underground. The artists were tickets online by 2020. There was also an enormous amount of work inspired by handwritten notes Pick had made relating to his philosophy done behind the scenes to prepare for a major increase in the availability about beauty, utility, goodness and truth. As Managing Director of of Museum information online in 2017/18. Over the last couple of years, London Underground in the 1920s and the first Chief Executive of London the Collections Online project has audited and updated thousands of Transport, Frank Pick commissioned some of the most recognisable icons records in the Museum’s database and when it is completed, there will be of London Underground’s identity such as the distinctive red, blue and a tenfold increase in the amount of accessible material, including white roundel, the original Johnston typeface and the Art Deco previously unseen collections such as tickets, signs, uniforms, library architecture of many Underground stations, including Piccadilly Circus. records and much more. Pick also commissioned famous artists such as surrealist Man Ray to create advertising posters for London Transport. The artwork was The Distributed Museum model and web-based resources help us reach unveiled in 2016 on the 75th anniversary of Pick’s death in 1941. audiences outside the Museum’s galleries but we recognise that there are other barriers to engagement. In particular, as a charging Museum, the The Pick Memorial is an example of our ‘Distributed Museum’ thinking price of entry can be prohibitive for some potential visitors. In response that aims to take our content beyond the walls of the Museum to engage we created the Audience Development Bursary scheme this year, using with new and different audiences. Our flagship project in this regard is donations made at our annual charity fundraising dinner. We have set Hidden London, a programme of tours of disused stations and areas of aside a notional £6,000 for the scheme with the intention of helping the transport network usually off-limits to the general public. This year more than 300 families visit the Museum. we added tours of the forgotten tunnels at Euston station, abandoned when the Victoria line sliced through the station in the 1960s, and a trip round 55 Broadway, the Underground Group’s purpose-built Art Deco headquarters opened in 1929 that still retains a host of original features 22 22

Our major learning programme, Enjoyment to Employment continued to We want to inspire everyone to engage with gain momentum this year. Formed at the end of 2015/16, Enjoyment to Employment is a total offer to young people designed to stimulate the past, present and future of London’s interest in, and enjoyment of, our collection at a very young age and then transport. At the Museum and Depot, and nurture this enthusiasm to help create the next generation of transport industry professionals. Enjoyment to Employment was enthusiastically through outreach across London, we offer endorsed by TfL Transport Commissioner, Mike Brown MVO, and Mayor learning opportunities, skills development of London, Sadiq Khan, at the Museum’s annual fundraising dinner. We were also delighted to receive financial support from the Luke and engaging programming to our visitors, Rees-Pulley Charitable Trust (LRPCT) and to welcome new sponsors schools, young people, volunteers and many Hitachi, telent and Costain alongside Siemens, regular sponsors of the other communities. Inspire Engineering strand of the programme.

We have a lot of experience of working with schools to support the national and London curriculums and over 25,000 school children came to the Museum for organised school sessions this year. We have particular expertise in enriching the teaching of STEM (Science, Technology, Engineering and Maths) subjects. Our sector-leading STEM offer includes stimulating, real-world experiences which allow young people to meet and work with Engineering Ambassadors doing STEM jobs in the transport industry. Our ‘Send the Right Signals’ engineering interactive made a splash this year at the ‘Big Bang Near Me’ event at Uxbridge College, attracting over 100 young people to LTM’s stand. We also worked with the Greater London Authority to host the launch of ‘Going Underground’ - a new Key Stage 2 London Curriculum unit which explores subterranean London as well as London Underground’s innovative art and poetry programmes.

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The TfL Safety and Citizenship (S&C) programme, delivered by London Within the Museum, our family activities programme delivered special Transport Museum, invests in London’s young travelling public by events during school holidays themed around the Designology and preparing primary school pupils for independent travel, and by Crossrail exhibitions, with innovative dance and movement activities, intervening when secondary school students experience or cause issues printmaking, a song-writing workshop, and songs performed live in the on the transport system. Our team worked with nearly 100,000 children Transportorium by visiting musicians. The activities were supported by at 1,938 primary schools during academic year 2015/16 – this represents 97 our dedicated volunteers at both Covent Garden site and at Acton Depot per cent of those in Greater London. The team uses a combination of where family tours took place throughout July and August. dedicated in-school presentations and attendance at larger, multi-agency Junior Citizenship Schemes to reach Year 6 pupils, with messages We started running early years’ nursery sessions in the All Aboard family delivered by professional educators and volunteer Engagement Officers gallery this year, thanks to funding from the LRPCT, and these have drawn from transport industry and emergency services. proved very popular. As part of our ‘Early Explorer’ programme, we also opened the Museum an hour earlier than normal four times this year to The S&C team also responded to intelligence-led issues identified by TfL welcome families with young people who have additional needs. across London, and worked with nearly 16,000 children at 208 secondary Designed to allow families to enjoy a quieter environment, these schools during the academic year. As part of this activity we delivered mornings include Explorer Bags and a Sensory Trail, and this year we Project Guardian sessions aimed at raising awareness and reporting of refined these resources to make them available for any SEN (Special sexual offences on public transport. We now have a dedicated playlist on Educational Needs) schools visiting the Museum from the autumn term. TfL’s YouTube area which contains short videos about our work with schools, Junior Citizenship Schemes and community events. Our commitment to young people includes our own working practices and this year our Young Volunteers contributed over 60 hours of their The TfL Youth Travel Ambassador (YTA) programme is also delivered by time to help create classroom resources for Engineering Ambassadors to the Museum’s education team. This initiative works with older children to use in schools. We also took eight Year 9 students from Northumberland support the implementation of sustainable travel plans for schools. Park Community School on a battlefield tour of the Somme in September Pupils from 130 schools presented their ideas for youth-led interventions as part of our Battle Bus programme which commemorates the role that at 22 Dragons’ Den-style events where they pitched for small enabling London’s buses and bus drivers played in the First World War. We were grants. As a result, 80 per cent of the schools involved gained STARS also proud to see one of our former apprentices secure a full-time role (Sustainable Travel: Active, Responsible, Safe) accreditation and within the Museum’s Public Programmes team, and another take up a experienced a doubling of cycling and walking to school. The YTA team Level 4 apprenticeship at the Department for Transport. The Learning won two awards at the Modeshift National Sustainable Travel Awards for team welcomed three new apprentices in 2016/17 who will contribute to a Best Education Initiative and Team of the Year. range of educational programmes.

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Our learning and engagement programmes are supported and enriched by creative partnerships with a broad range of

organisations. We are delighted to have worked with the following partners during 2016/17:

INSPIRE ENGINEERING SUPPORTED ROUTE INTO WORK PARTNERS SCHOOLS, COLLEGES, YOUTH AND BY SIEMENS A Fairer Chance CIC EDUCATIONAL ORGANISATIONS Luke Rees-Pulley Charitable Trust Arcadis Care Consortium Siemens Bexley Youth Offending Team Chestnut Grove Academy Careers Hub City of Westminster College SCIENCE, TECHNOLOGY, ENGINEERING AND Centrepoint Colvestone School MATHS (STEM) PARTNERS Colas Rail Digital Works British Science Association Community Links Greater London Authority (London Curriculum) Engineering UK Construction Youth Trust Greater London Authority (Youth Team) Institute of Civil Engineers Department of Work and Pensions Greenside Community Centre MBNA Thames Clipper FM Conway Highbury Fields Girls School MTR Crossrail London Community Rehabilitation Company National Autistic Society Siemens London Highways Academy National Careers Service STEM learning (previously STEMNET) Mott MacDonald Quintin Kynaston School Transport and Infrastructure Poplar HARCA St Angela’s School Education Partnership Redbridge Connexions St Bonaventure’s School Women in Science and Engineering St Mungo’s St Mungo’s Recovery College Women’s Engineering Society Shaw Trust Skills Training UK Siemens Trinity College London BATTLE BUS LEARNING PROGRAMME PARTNERS Westminster Kingsway College Westminster Adult Education Service The Audience Agency Working Chance Westminster Kingsway College Bruce Castle Museum Young Londoners Participation Network First World War Centenary Battlefield APPRENTICESHIPS AND TRAINEESHIPS Tours Programme Creative and Cultural Skills Lancasterian Primary School Cultural Co-operation Northumberland Park Community School London Apprenticeship Company

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MUSEUMS AND CULTURAL SECTOR PARTNERS TFL SAFETY AND CITIZENSHIP AND YOUTH A New Direction TRAVEL AMBASSADOR PARTNERS Artburst Arriva Rail Association of Independent Museums Battersea Dogs and Cats Home Cultural Learning Alliance Blue Cross Animal Charity Culture Network Westminster British Red Cross Diversity in Heritage Group British Transport Police Engage Camden LGBT Forum Florence Nightingale Museum Canterbury Christ Church University Fulham Palace Coram’s Fields Group for Education in Museums Hackney Museum Happy Museum Project Linford Christie Stadium Heritage Volunteer Group London Borough Councils, particularly Road Historical Association Safety Officers and Trading Standards Kids in Museums London Fire Brigade London Festival of Architecture MEND Hammersmith and Fulham London Museums Group Metropolitan Police Museums Association Old Kent Road Fire Station Museum Detox Group Queens Park Rangers Football Club Museum of London Royal National Lifeboat Institute (RNLI) National Gallery St John Ambulance Royal Commission for the Exhibition of 1851 The Schools, Students and Teachers Network Royal Museums Greenwich Wood Green Animal Shelter Science Museum Southbank Centre Young People’s Programmers Network

We are also grateful to our many friends and colleagues across TfL who support the work of the Museum. In particular, we would like to thank TfL Buses, TfL enforcement and On Street Operations, TfL Schools and Young People, London Underground and Tramlink

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Having refurbished our London by Design gallery in 2015/16, the scene was The Museum’s collection of over 490,000 objects set for further explorations of the power of good design this year as part of the Transported by Design celebrations. Our major exhibition, includes vehicles, posters, signs, uniforms and Designology, gave visitors an extended insight into the design heritage other items that represent London’s unique that is marbled throughout the Capital’s transport system, and explored the processes involved in creating design classics. Supported by curatorial transport heritage. We ensure the collection is research and new interpretation, this object-rich exhibition was set over properly conserved and cared for so it can be two floors and included material never previously displayed. used as an inspiring and accessible resource for We researched and prepared a 32-page booklet about Frank Pick’s life and exhibitions, events and research. legacy to support the unveiling of an artwork to commemorate Pick’s achievements and in July the Museum worked with TfL and its partners to stage a design festival on Regent Street. We provided content and staff for the design pavilion where we displayed classic designs of typography, poster art and mapping, as well as live demonstrations of type-set printing. We also provided interpretation for the event in our Exhibition Bus and possibly our most ambitious and logistically challenging vehicle display of recent times – a classic 1927 Standard stock Tube train car, on rails in the middle of Regent Street. Made fully accessible for the day, this unusual exhibit proved to be extremely popular with the public, even if it caused some major headaches for our curators getting the vehicle to and from site!

Road vehicles are much easier to move around and in May 2016 we began this year’s programme of heritage vehicle operations by taking our STL469 bus on the annual Historic Commercial Vehicle Society London to Brighton run, alongside dozens of other vintage commercial vehicles. The design of the STL was an important evolutionary step in double-decker buses, and led to the classic RT and Routemaster designs which came after it. This thread of good design seemed a fitting choice for a year celebrating the power of design.

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A more ambitious journey was made in June by our B type Battle Bus Research and development activity this year saw interns from Leicester B2737 when it returned to France as part of the centenary University cataloguing backlog items in our photographic store, a commemorations for the Battle of the Somme. Despite the bus suffering dedicated team including volunteers cataloguing and conserving original engine failure, the dedicated team of staff and volunteers delivered a full plan drawings, a trainee from Cultural Cooperation’s ‘Strengthening Our programme of events using the Battle Bus and a mobile display vehicle to Common Life’ programme creating a new Museum trail launched during relate the story of the role played by London's buses in the First World Black History Month, and significant research in advance of next year’s War. B2737 has since had an engine overhaul and work will shortly be ‘Poster Girls’ exhibition which will explore the contribution of female completed on its transmission. poster artists to London’s transport system. We successfully renewed our Museum accreditation this year which recognises the standard of our Although we had to cancel our summer steam event due to collections care and allows us to borrow and loan objects from and to circumstances outside of the Museum’s control, our Metropolitan line other accredited museums and apply for public funding. We borrowed steam engine, Met No.1 could be seen at the Buckingham Railway Centre several items for inclusion in the Designology exhibition and in turn this year and will be taking up a residency at the Epping Ongar Railway donated the Optare bus cab that used to be in our children’s gallery to from May 2017. The major overhaul of our 1938 Stock train is nearing the recently accredited London Bus Museum. completion and we intend to have the vehicle back in rail operation in September 2017. In total, some 2,500 objects were added to the collection this year including the beautiful Chocolate Express vintage Leyland bus, the DW15 Other conservation projects undertaken this year included rewiring the Dennis Wright dart bus and 20 new oral histories, recorded as part of our lights of several ticket passimeters (free-standing ticket booths) from London's Transport Stories project capturing the memories and Golders Green, Queensbury and Hainault stations, and the rewiring of experience of people who develop, deliver and use our transport system. Underground train destination describers which are now working and We also recorded the memories of three people who took refuge in the mounted for display at Acton Depot. Conservation, cataloguing and Clapham South deep-level shelter during and after the Second World research are the backbone of our curatorial activities and help to support War. Clapham South is one of the amazing spaces that features in our wider access to our collections. We are grateful to the London Transport Hidden London tour programme and these first-hand accounts provide Museum Friends (LTMF) for their financial support of our collections care invaluable research and interpretive material to support and enrich the activity and for larger projects such as the major overhaul of our tours. Hidden London also featured in our main galleries at Covent operating 38 Tube stock train, the exterior overhaul of our Waterloo & Garden in an exhibition co-created by architecture students from Bath City car in Network South East livery, and the work that is just beginning University who imagined a new future for disused stations. Other gallery on a major restoration of our Q stock subsurface train cars which we changes included the regular Poster Parade programme of themed mini- hope to be able to operate on the Tube network again in the future. exhibitions showcasing 20 posters at a time. This year’s themes included Literary London, Poems on the Underground, and Athletic Appeal, timed to coincide with the summer Olympics.

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The Museum’s library contains not only books but staff magazines, brochures, archival documents and other printed material. This year we began an 18-month LTMF funded project to audit, clean and upgrade the conservation storage of more than 5,000 pamphlets. The library and information service provided support for over 7,000 enquiries this year, including from TV productions and the police. Research and editing supported a wealth of publications including our London by Design book, the Frank Pick booklet, and two new Hidden London booklets as 55 Broadway and Euston were added to the tour schedules.

Looking to the future, our curators continued their Future Cities partnership with the Vehicle Design faculty at the Royal College of Art, supported the Late Debate programme of contemporary discussions, began work on a project to tell the hidden story of moquette seat fabric, and started planning for the upgrade of our tunnelling and contemporary Underground galleries. We have also been preparing for a major renewal of our online Museum which will significantly upgrade public access to collections records via the web.

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Heritage The Museum faces challenging times over the The nationally-significant collections comprise over 490,000 items from buses, trains and trams to posters, artwork, uniforms and tickets. We next few years as core funding reduces want to increase public access to the collection so we will be working to considerably. In response, we have created a improve storage at Acton Depot to facilitate more public use. We also have a programme of vehicle restoration, and we will be making our five-year plan to ensure the Museum remains content and collections more readily available online and through social strong and effective, and can re-establish media outlets. financial sustainability. Education The plan contains four key strategic Our five-year ambition is to be the first choice when it comes to engaging young Londoners to realise their potential, be curious and find their place programmes: in the city. This will involve developing capacity for under-11s; growing under-5s outreach, developing our community outreach and enhancing the young people’s skills programmes. Charitable funding and new Museum sponsorship opportunities will be critical to this programme. We believe that London Transport Museum is the world’s leading museum of urban transport, and our plan aims to improve and enhance Thought leadership our offer at Covent Garden, at Acton Depot and beyond the Museum’s Over the past six years, the ‘business-to-business’ thought leadership walls. In support of this we will develop a Gallery Master Plan based on programme, ‘Interchange’, has built a solid reputation for being timely, rolling refurbishment of the Covent Garden galleries and an engaging valued and participated in by senior industry speakers and participants. exhibitions programme. We will also invest in Customer Relationship Over the course of the plan we will move the Interchange programme Management (CRM) initiatives to develop long-lasting and mutually forward and support an increased public offer for thought leadership beneficial relationships with our audiences, and review the case for through a rolling programme of debate, follow-through work and additional open days, tours and public access of Acton Depot. We will research, creating publications and by embedding the ‘Late Debates’ continue to develop our Hidden London tours and seek other strand into our public programming. opportunities to pilot new offsite initiatives.

In addition to these four strategies, we will also: invest in an enabling programme to develop staff and volunteers; ensure we have the right systems, processes and accommodation; and grow our income- generating activities.

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The response of our transportation networks in accommodating Our Interchange programme brings together population growth will be key to London maintaining its competitive edge. At the same event, Victoria Hills, CEO of Old Oak Park senior transport industry professionals, leading Development Corporation, presented the regeneration of Old Oak and academics, politicians and policy-makers to Park Royal as a case study for future-proofing London. Part of the Old Oak development will be a new railway station the size of Waterloo, share cutting-edge ideas about transport and handling 250,000 passengers a day and acting as a super hub between urban planning. London and the rest of the UK, Europe and the world.

Also on the agenda for 2016/17 was an important discussion on corporate Interchange continued to flourish in 2016/17. We were delighted to manslaughter. Health and safety representatives from our corporate welcome Gowling WLG as a new sponsor for the programme, alongside members came to hear a candid presentation from Paddy McNamara, returning partner Thales UK who renewed their sponsorship this year. We former owner of Oakwood Theme Park, the scene of a fatal accident in would like to express our gratitude to our outgoing sponsor, Eversheds, 2004. Paddy told his personal story of the subsequent investigation into for their support since the programme’s inception in 2008. individual and corporate manslaughter and health and safety offences. Kevin Elliot, a leading practitioner at Eversheds, discussed the current This year’s topics were as diverse as ever. Returning to the theme of enforcement landscape and despite the sombre subject matter, the event London’s competitive edge, we invited Janet Miller from Atkins to proved to be very powerful and highly informative. present the key findings of the Future Proofing London report published by Atkins in 2016. The report looks at the risks and opportunities for Many in London consider the River Thames to be an under-used resource London’s competitive advantage in the period to 2050 by when it is with the potential to bring relief to London’s busy road infrastructure. estimated that London’s population will be over 12 million. Particular Tying in with the launch of the Port of London Authority’s Thames Vision ideas include revitalising outer London and creating ‘curated clusters’ to report in July 2016, we invited Robin Mortimer (Chief Executive, PLA), support London’s creative industries in the style of east London’s ‘Tech Leon Daniels (MD – Surface Transport, TfL) and Debbie Jackson (Assistant City’ around Old Street and Shoreditch. Director – Regeneration, GLA) to discuss the regeneration of land to the east of London along the Thames Estuary, and the strategically important role the river will play in London’s future development.

As ever, we would like to thank all our speakers and attendees for their enthusiastic support of this programme. A full schedule of activities for the coming year has been planned and details are available on our website.

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LONDON TRANSPORT MUSEUM (TRADING) LIMITED The Museum’s charitable work depends on It was a year of considerable change for the Museum’s trading function income generated by commercial activities, which operates retail, venue hire and other commercial activities to provide funds for the charity. At Covent Garden we undertook a major fundraising and marketing, and the generous refurbishment of the Museum shop. Online we moved to a new webshop donations of time and money made by provider, we outsourced fulfilment for online sales, operated a temporary shop at Piccadilly Circus, and said goodbye to the man who volunteers, sponsors, LTM Friends and created the very first Museum shop when we opened in 1980. other supporters. Turnover was slightly higher than the year before, but the costs of the changes meant that profit was lower at £0.8m (2015/16: £1.1m) which will be distributed to the Museum by way of Gift Aid.

RETAIL Unfortunately, the pop-up shops at South Kensington and Piccadilly Circus which occupied vacant commercial premises owned by TfL were not profitable enough to continue operating after TfL’s generous rent- free periods came to an end. However, although Museum footfall fell by ten per cent this year, the Covent Garden shop increased its turnover by three per cent, with toys, clothing and confectionery sales all significantly up on the previous year.

The Covent Garden shop had a complete refresh during the year, with improvements to lighting levels, increased storage and 30 per cent more fixtures creating a modern, brighter, more flexible space to showcase our products. Although the project took longer than planned and some snagging elements still remain, the new shop helped boost Christmas sales compared to the previous year and customer reaction has been positive.

ONLINE RETAIL A new and improved webshop was launched in September 2016. Based on a Magento platform, the shop is provided by Tom & Co who have a track record with high street brands such as Oliver Bonas and Sofa.Com.

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The change has reduced costs, improved the visibility of the shop online, The new webshop platform enabled more targeted messages to our and introduced a series of back office innovations and improved newsletter subscribers, and we grew the mailing list from 43,000 to merchandising tools. The shop now links directly to the Museum’s stock 85,000 during the year. Our social media presence also increased with 40 system and has also enabled LTM to better engage with its customers by per cent growth in Facebook followers, 24 per cent growth in Twitter linking the webshop to email marketing campaigns which highlight the followers and 158 per cent growth on Instagram. latest products, seasonal sales, LTM events and special offers. FUNDRAISING LTM has historically fulfilled most webshop orders manually from Successful fundraising is crucial to the Museum’s long-term sustainability Acton in a time-consuming process operated without the benefit of and has enabled us to use our collection, our spaces and our vehicles warehousing technology. Following a strategic review in 2016, webshop both imaginatively and successfully, whether at Covent Garden, Acton fulfilment was outsourced to a third-party specialist with global delivery Depot or across London and beyond. We are grateful to all those capability. The benefits are a reduction in resourcing costs, lower postage organisations and individuals that have supported us this year. costs for LTM and customers, new services such as next day, tracked and global delivery, and ten additional days of trading over the key Arts Council England is an important provider of project funding to Christmas period. the Museum and we have benefited from three years of Museum Resilience Funding, which has enabled us to continue sector-leading work Although there was a short hiatus as we transferred to the new webshop, with apprentices, develop new ways of collecting, and trial new the positive impact of these changes has been noticeable, with net sales commercial initiatives. Other major funders, the Heritage Lottery Fund at Christmas 2016 being 141 per cent better than in 2015, and the average (HLF) and the London Transport Museum Friends, support Battle Bus, a order value during November and December almost doubling to over five-year project exploring the role played by London’s buses during the £80. We are targeting growth of at least 20 per cent per annum in our First World War. We were also awarded new funding from the HLF’s Our current business plan. Heritage programme this year towards a project exploring the rich variety of moquette seat fabrics held within the Museum’s collection. MARKETING With security fears and prolonged transport problems on Southern rail DCMS/Wolfson Galleries Improvement Fund and longstanding supporter services affecting much of our audience, we had to redouble our efforts the Luke Rees-Pulley Charitable Trust both provided funding towards an to attract and engage with visitors this year. exciting new gallery focused on future engineering whilst funding from Biffa Award will enable the Museum to redevelop its tunnelling galleries We undertook marketing and promotional campaigns for all aspects of to incorporate the modern story of Crossrail. Both galleries are set for the Museum’s activity, achieving a media ‘reach’ of over 191 million people completion next year. during the year. In December, we piloted a campaign to associate the Museum brand with Christmas, both as a visitor destination and as a TfL hosted the 11th annual Covent Garden dinner and auction in February source of fabulous gifts, and we will build on this next year. 2017 which, for the first time, was held at the V&A. Sadiq Khan, Mayor of London, and Mike Brown MVO, Commissioner of Transport for London, were keynote speakers and underlined the importance of both transport and the cultural sector to the future of London.

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The evening also saw the launch of a new bursary scheme which offers We are also grateful to Alexander Dennis, BYD, Optare and Siemens for free admission to the Museum to those within our local communities their support of the Transported by Design Festival on Regent Street. who are less likely to visit or engage with the Museum. We are grateful to Exterion Media and Cubic Transportation Systems also continued their all of those that bid in the auctions which were overseen by Charlie sponsorship for two significant Museum spaces, the Exterion Media Thomas from Bonhams. The event generated over £300,000 in Gallery and the Cubic theatre and foyer. unrestricted funding and was attended by more than 400 industry guests. As we move closer towards the 2018 opening of Crossrail, Europe’s Now in to its third year, the Museum’s Patrons Circle grew to 31 members largest infrastructure project, our exhibition ‘The Design Line’ gave our and enjoyed a 100 per cent retention rate in 2016/17. Highlights from the visitors a sneak preview of the stations, art and public spaces which will year’s programme included a tour of new Northern line extension make up the new Elizabeth line. Content and financial support for the tunnels, a private evening viewing of the Crown Jewels at the Tower of exhibition was provided by Crossrail. London, preview tours of the Crossrail station platforms at Canary Wharf, Highgate Control Centre and Greenwich Power Station, and a We entered the third year of a three-year partnership with Clear Channel reception at the Museum to mark the unveiling of the Frank Pick for ‘Transport Poster Art’ which celebrates the rich legacy of poster memorial at Piccadilly Circus station. We also welcomed former LTM design on the London Underground and commissions artworks from Chair, Sir David Bell, Steve Shewmaker of Cubic and Richard Rees-Pulley new artists for display on the Museum’s poster circuit across the London as the founding members of the 1924 Club, developed to recognise the Underground network. We also welcomed Gowling WLG as our new significant contributions made to the Museum by key individuals. partner for the Interchange: thought leadership programme, joining existing sponsor Thales in a new two-year partnership. Having generated £38,000 in 2015/16, the Leyland Bus Appeal contributed a further £17,000 this year towards the acquisition of three Leyland buses Enjoyment to Employment, which aims to turn childhood enthusiasm from the Sutcliffe Collection. We are extremely grateful to everyone who about transport into careers in the industry is the Museum’s response to has contributed towards the project, particularly the London Transport addressing the engineering skills gap faced by the transport sector. We Museum Friends for the generous donation that kick-started the appeal were pleased to welcome Hitachi, telent and Costain as sponsors of the in 2015/16. programme alongside Siemens which has supported the Inspire Engineering strand of our work for a third year. We were also pleased to CORPORATE SUPPORT support Siemens with the development of the ‘Build your own Railway’ The important relationships that we have with our corporate partners interactive activity for use at the Big Bang Fair as part of its Curiosity help sustain and support our charitable work. Project, promoting to primary age children the different careers on offer in transport. Throughout 2016 Transported by Design celebrated London’s rich and pioneering transport design heritage. The programme was made possible thanks to the support of our headline sponsor, Exterion Media, along with Bombardier, Atkins, Costain, Cubic Transportation Systems, and BAE Systems.

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The commercial climate became slightly uncertain following the Brexit This has been a year of development for volunteering at LTM. We have vote and this had some effect on our Corporate Membership Scheme completed the second year of our Arts Council-funded work to establish which saw a fall in income by six per cent this year. Nevertheless, the a new volunteer strategy. We have set objectives for the next five years scheme generated over £580,000 of unrestricted income towards the and will put resources into training and support for volunteers with the Museum’s work. New Members included Briggs Marine, Cleshar, aim of increasing contributions to 28,000 hours per annum. Computacenter, Stadler Rail and William Cook Rail. The Investing in Volunteers scheme has played a key role in our thinking Corporate Membership offers many business benefits including access to as we work to achieve a national quality standard for volunteer the Interchange: thought leadership programme, corporate hire of the management practice. Policies and procedures are being created to Museum galleries and free entry to the Museum for employees. support development including a volunteer induction guide and a problem-solving procedure, and we have increased engagement with our VOLUNTEERS volunteers through new networking events and the Volunteer Forum, In 2016/17 the Museum had over 25,000 hours donated by our team of which provides volunteers with an opportunity to be consulted and loyal, enthusiastic and supportive volunteers. Volunteers are essential to influence the development of volunteering at LTM. so many elements of the Museum’s activities, from preparing and driving our heritage vehicles, through to helping with the families and school LONDON TRANSPORT MUSEUM FRIENDS programmes, collections care, Depot Open weekends and delivering the We are lucky to have a supportive and engaged group like the Friends hugely popular Hidden London tours. Volunteer-led delivery is intrinsic providing both volunteering and financial support to the Museum. to the success of the Hidden London programme with the public Grants to the Museum totalling more than £100,000 were made this year, recognising the genuine enthusiasm of our team of over 50 volunteer including £50,000 towards the cost of repairs to the 1938 Tube stock guides who contributed over 4,000 hours of their time in 2016/17 - more train to enable its continuing operation on special trips on the than double the support provided last year. Underground system. Support was also provided for the Museum’s community and schools programmes especially around the First World The Welcome Host programme sees volunteers supporting the Customer War Battle Bus project. Service team at the Museum, and has become a popular and engaging role for volunteers, whilst also giving customers more opportunity to Many Friends also volunteer their time for high profile activities, interact face to face with passionate Museum ambassadors during their including the Hidden London programme, Acton Depot Open Weekends time at LTM. Volunteer contributions to this role almost doubled in and heritage bus operations, and the Friends have an active programme 2016/17, and the programme has provided an opportunity for us to work of transport-themed events and tours for their growing membership. with a broader demographic of volunteers through targeted recruitment and peer support.

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The Museum has a thriving Corporate Membership scheme and we are grateful to the following organisations for their support and enthusiasm.

LEADER MEMBER DRIVER Abellio* 2CV CH2M Alexander Dennis Atkins Cleshar Contract Services Amey Atos IT Services UK Go-Ahead Group* Arriva London Bircham Dyson Bell* HDI Balfour Beatty* Briggs Marine BAM Nuttall BYD HONORARY CORPORATE MEMBER Bombardier Transportation UK* Capital & Counties Properties* 4-RAIL Services Capita* Canary Wharf Group Colas Rail* Citylink Telecommunications ComfortDelGro Deloitte* *Thank you to all the companies that Computacenter UK Ericsson purchased tables at the 2017 Covent Garden Cubic Transportation Systems* Eversheds* dinner and auction. Other companies that EPC Ferrovial Agroman purchased tables at this event include Alstom, FirstGroup UK Bus First Class Partnerships* Ashurst, Clear Channel, Costain, Exterion GB Railfreight Freshfields* Media, Herbert Smith Freehills, ISS, JCDecaux, Hitachi Rail Europe* Gowling WLG* Kier, Mastercard, Metroline, Pinsent Masons Keolis UK Interserve* and Telefonica O2. Marston Holdings Morgan Sindall MBNA Thames Clippers Mott MacDonald M J Quinn* Mountview House Group NSL* PricewaterhouseCoopers QBE Insurance RATPDev Siemens Sacker & Partners* Skanska STM Security Stadler Rail Trapeze Group Stagecoach* Trueform Engineering SwissRe Vix Technology telent Technology Services* William Cook Rail Thales UK* Wrightbus* Tower Transit Operations

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Major Supporters Transported by Design Sponsors Transport for London Exterion Media – Headline Supporter Heritage Lottery Fund Bombardier Transportation UK Arts Council England Atkins DCMS /Wolfson Foundation Museums and Galleries Improvement Fund Costain London Transport Museum Friends Cubic Transportation Systems Luke Rees-Pulley Charitable Trust BAE Systems

Museum Sponsors Enjoyment to Employment sponsors Exterion Media – Exterion Media Gallery Siemens – Inspire Engineering Cubic Transportation Systems - Cubic Theatre and Foyer telent Technology Services Clear Channel UK - Transport Poster Art Eversheds – Interchange thought leadership programme Education Supporters Thales UK – Interchange thought leadership programme Luke Rees-Pulley Charitable Trust Gowling WLG – Interchange thought leadership programme Royal Commission for the Exhibition of 1851 Gwyneth Forester Trust

Thanks to all those who have supported the Leyland Bus Appeal, in particular the London Transport Museum Friends, John G. Smith and Martin Buckland. Thanks also to Ian Ross for his support of the Battle Bus appeal.

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In return for their vital support, Patrons are able to enjoy an The Patrons Circle is a group of individuals unrivalled programme of events which includes exclusive contemporary and heritage transport experiences rarely experienced by the public who share our love of London’s unique such as behind-the-scenes tours, invitations to special events and transport and design heritage and are exhibition previews. committed to the success of the Museum’s Highlights of the 2016/17 tours and events programme heritage and education work. • Euston station: ‘the lost tunnels’ tour • Private view of London Transport Museum’s Designology exhibition • Tour of the British Postal Museum store • Visit to a Battle of Britain bunker and journey along route 309 on T792 bus • Behind the scenes at Beaulieu National Motor Museum • Canary Wharf Crossrail station tour • Frank Pick Memorial drinks • Tours of Greenwich Power Station and Highgate Control Centre • Curator-led tour of the British Museum’s exhibition Maps and the 20th Century: Drawing the Line • Director’s Christmas Drinks • Private evening viewing of the Crown Jewels • Battersea Power Station viewing platform and Northern line extension tunnels

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We would like to thank all our Patrons for their generous support.

Mark Allatt Ian Arthurton Michael Binyon David Brown David Buck Paul Butler Steve and Melanie Edge Martin Elms Phil Fortey Sir Peter Hendy CBE Bill Hiron Adrian Hollands Ken and Daphne Lousvet Guy Marriott Richard Meads MBE John Marshall Alan Moore Tim O’Toole CBE Paul Ross Ian Ross John A. Self OBE Jaspal Singh Mike and Pat Sutcliffe Phil Swallow Tony Vroon Richard West Nicholas Woolf Mark Yexley

We are equally grateful to those Patrons who prefer to remain anonymous.

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We run a popular and exciting programme of DESIGNOLOGY STUDIO PROGRAMME: Seasons talks, tours, exhibitions and evening events, that May–August 2016 Season 1: Social Behaviour Data and Mapping help us enrich our engagement with audiences. Explore how good design influences behaviour, improves experiences and enhances the safety and With nearly 20,000 participants, the Hidden performance of our transport system London programme was a major part of this year’s August–October Season 2: Beyond the Surface 2016 Explore how the principles of good design help to busy events schedule. In addition, our heritage create attractive, safe, well connected streets and buses were in action across the country, we ran places, improving our experiences of visiting, working family activities in the gallery during school and living in London holidays, ran hugely successful October 2016 – Season 3: Designing the Tube and Weaving Future February 2017 Explore how the principles of good design enable us Open Weekends at Acton Depot and our to travel on an attractive, safe and well-connected events schedule at Covent Garden included underground network. Plus, Weaving Futures, a focus innovative themed ‘seasons’ of events in the on textile design and moquette concepts, curated in partnership with experts Philippa Brock and Samuel Designology Studio. Plant Dempsey March–April 2017 Season 4: Driverless Futures Explore how autonomous vehicles could present the most significant change in transport since the transition from horse drawn carriages to motorised vehicles

See page 8 for the full programme of Designology events.

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HIDDEN LONDON MUSEUM DEPOT

26 May – 19 June; The Lost Tunnels: Euston Tours 23–24 April 2016 Open Weekend: A to Z of London 22 September – An exploration of old passenger corridors adorned Celebrating the centenary of the Johnston typeface. 30 October 2016 with posters dating back to the 1960s. Discover Talks, films, workshops, tours and activities alongside unique architecture and style in the lost tunnels of the regular Open Weekend offer one of the UK’s busiest stations 17 June, Cab It! Guides tours 14 July – Subterranean Shelter: Clapham South station 16 July, Exploring the driver cabs of a selection of trains at 21 August 2016; Venturing 180 steps down into this deep-level 15 October 2016 the Depot 2–26 March 2017 shelter, go back in time to see where Londoners sheltered from the Blitz 24–25 Open Weekend: A Logo for London September 2016 Themed around the iconic roundel, and Frank Pick's 4 August – Churchill’s Secret Station: Down Street design legacy. Talks, workshops, activities and tours as 11 September; An intimate look into one of London’s most well as performances and active workshops from 24 November – intriguing hidden spaces that acted as a top-secret parkour group Urban Playground. Also, Museum bus 18 December 2016; bunker during the Blitz RM1 in operation offering local tours together with 11 January – guest buses CRL4 and RML2760 5 March 2017

10 weekends London’s first skyscraper: 55 Broadway between May 2016 An exclusive tour inside London’s first skyscraper: and March 2017 London Underground’s former headquarters and Grade I listed structure, that is now a marvel of Art Deco London

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FAMILY ACTIVITIES

25 March – Underground Secrets 21-22 October Illustrating the Idiom – Designology Studio event 10 April 2016 Dance and movement workshops during the 2016 Based around Transport for London’s beautiful Easter holidays exploring the lost tunnels of Underground Station Design Idiom. Events include the Underground the chance to celebrate ‘Big Draw’ month by creating a giant sketch of favourite designs from 28 May – The Poster Party London Underground 5 June 2016 Storytelling and printing workshop for May Half Term, exploring travelling on the tube 22–30 October Home from Home 2016 Craft and storytelling workshop exploring Transport 25 June 2016 London Festival of Architecture for London’s visual language and branding Craft activity to imagine being an architect and create unique station buildings 20-22 December Translating Printed Designs with Woven Textiles – 2016 Designology Studio event 23 July – The Street Party Find out about traditional and new print making 7 August 2016 Storytelling and craft workshop exploring future techniques with designer Linda Florence, including transport and city life silk screen-printing, ceramic printing and laser cutting 22–23 December; Pattern Magic 8–12 August 2016 Be Safe Week 27 December Storytelling and craft workshop inspired by the Fun workshops promoting safety at home, in public 2016 Museum’s collection of patterns and moquette and when using public transport 11–19 February Underground Explorers 13 August – Musical Magic 2017 Interactive workshop exploring tunnels 4 September Families are invited to join musicians for a transport and archaeology 2016 themed sing-a-long and to write their own song 6 April 2017 Cars for Kids – Designology Studio event 22 August – Architects of the Future! RCA designers helping visitors design vehicles for 2 September A chance for visitors to explore what it is like to be a people below the driving licence age. Automation for 2016 transport architect with professional architects from the next generation! TfL and opportunities to explore architectural drawings, experience architectural model making and April 2016 – Props and Costumes state of the art 3D printing March 2017 Weekend fun and family engagement with role play and dressing up in replica historical transport costumes

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HERITAGE VEHICLE OUTINGS

10 April 2016 East Grinstead Running Day 3 July 2016 ‘Transported by Design’ in Regent Street Green prototype Routemaster RM2 operating in public 1920 AEC bus K424 and 1927 Standard stock tube train service on routes 409 and 424 on display as part of a free open air festival along Regent Street 17 April 2016 London Bus Museum Spring Gathering Routemaster RM2 and Leyland Cub C94 on static 9 July 2016 Launch of named buses by Ensignbus display at Brooklands B2737 at an event in Wickford, Essex by invitation of Ensignbus to mark the naming of a number of service 1 May 2016 Historic Commercial Vehicle Society London- buses after those recorded on the local war memorial Brighton Run 9–10 July 2016 East Anglia Transport Museum 1934-built STL469 in the annual run for historic commercial vehicles. The vehicle won the cup for K424, the 1931 ‘Scooter’ LT1076, and tram-shunt tractor Best Double-Deck bus 351X at East Anglia Transport Museum 5 June 2016 Hertford Country Bus Running Day 13 July 2016 Cart Marking Ceremony RM1 running in public service on routes 341 and 395 K424 at the annual ceremony at the Guildhall, London for ‘branding’ by the Worshipful Company of Carmen 10 June 2016 BBC Crimewatch RM1 in a live broadcast from Acton Depot 23 July 2016 Londoner Live K424 and DMS1 at West Ham bus Garage 26 June 2016 London Bus Museum ‘Routemaster Summer’ LTM’s RM1 and RM2 alongside LBM’s RML3 and CRL4 in 11 September Amersham Heritage Day a classic line-up of all four prototype Routemasters 2016 RM2 providing a free bus link between Amersham station and the Old Town 26 June – Battle of the Somme 2 July 2016 Battlebus B2737 in Northern France to mark the commemoration of the Battle of the Somme in 1916

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HIDDEN LONDON (continued) BUS GARAGE OPEN DAYS AND STATION TOURS

22 September – British Motor Museum 21 May 2016 Shepherds Bus Garage 3 October 2016 B2737 on public display at Gaydon to assist with the RM1 and Daimler Fleetline DMS1 attending RATPDev’s BMM’s educational week for local schools Open Day. DMS1 started life at Shepherds Bush in October 1970 2 October 2016 Omnibus Society Presidential Weekend 4 June 2016 Station Architecture Tour: Deep Level Tube RM1 and DMS1 joining other London ‘number one’ Station architecture tour on the Piccadilly Line, buses on display at North Weald Station with RM1 looking at the architectural style of Leslie Green operating a local tour 23 October 2016 London Bus Museum Transportfest 25 June 2016 Station Architecture Tour: Jubilee Line Extension Tour The Museum’s newly-acquired Leyland Torpedo Charabanc on display and making two Station architecture tour on the Jubilee Line demonstration runs Extension, looking at the architectural similarities between Holden's designs and the new stations 23 October 2016 Bruce Castle Museum 9 July 2016 Holloway Garage Open Day ‘Battlebus’ B2737 on display at Bruce Castle Museum, RM1 and DMS1 at Metroline’s Open Day Tottenham in conjunction with the ‘Tottenham to the Trenches’ project 30 July 2016 Station Architecture Tour: British Modernism Meets Underground 5 November Regent Street Motor Show Station architecture tour on the Piccadilly Line, 2016 The Leyland Charabanc on display at the Regent looking at the architectural style of Charles Holden Street Motor Show, preceding the annual London- Brighton veteran car run 13 August 2016 Bromley Garage Open Day LT1076 ‘Scooter’ and Optare midibus OV2, representing vehicles used on local ‘Roundabout’ routes, at Stagecoach London’s event 17 September Twickenham Garage Open Day 2016 K424 and gold RT4712 are on public display at Abellio London’s Open Day 15 October 2016 Stockwell Garage Open Day 1920s classic London buses K424 and NS1995 at Go-Ahead London General’s event

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TALKS AND EVENTS

12 April 2016 Andrew Martin: Confessions of a Railway Romantic 28 July 2016 Late Debate: Social Behaviour and Mapping Author Andrew Martin talk about his love of the Live interactive debates engaging audiences with bygone era of romantic rail travel topics explored in Designology Studio season

10 May 2016 Johnston Series: London's First Fonts 18 August 2016 Tubespotting Part of a lecture series to celebrate the centenary of Geoff Marshall recounts his attempt to create a the Johnston typeface. Phil Banes and Catherine world record time for visiting every tube station in Dixon from Central St Martins on the plethora of a single day fonts in London's history 9 September Friday Late: Colour 20 May 2016 Friday Late: Designology 2016 Second Friday late for Designology, celebrating colour A launch event for the Designology exhibition in design featuring a mixture of talks, tours, craft and workshop activities 21 September Pick series: A Legacy for London: Frank Pick's Design 2016 Vision 7 June 2016 Johnston Series: Eiichi Kono Oliver Green on Frank Pick's design legacy for London Eichi Kono, of the New Johnston Typeface, an update of Johnston’s original design, on the story 8 October 2016 Poetry in the Piazza of its creation Poets and members of the public gather to read poems. Also, to celebrate Black History Month, 22 June 2016 Designing for the Public Realm the creation of a reading garden and drop-in A London Festival of Architecture event exploring the family activities Public Realm spaces in and around large station redevelopment projects 13 October 2016 Late Debate: On the Surface Continuing the popular format of debates, activities 5 July 2016 Wayne Hemingway: Designing London's Uniform and engagement based on the topics explored in the The well-known designer in conversation with Robert second season of the Designology Studio Elms, on the consultation and collaborative design process of the new TfL staff uniform

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TALKS AND EVENTS (continued) EXHIBITIONS AND SPECIAL DISPLAYS

18 October 2016 Pick series: Bright Lights and Tourist Delights - 100 11 September Night Shift years of Piccadilly Circus 2015 – An exploration of the links between public transport Talk about Piccadilly Circus, its context and meaning 10 April 2016 and the life of the city once the sun goes down to Londoners and what its redevelopment under Pick meant for us then and today 29 January – Poster Parade: Literary London 29 April 2016 Playful ways designers engage with literature from 2 November Pity of War - Poems on the Underground the 20th century to the present day 2016 Partnership event with Poems on the Underground, 29 April – Designology with poetry readings by poets including Michael 8 July 2016 Rosen and live music by composer Evelyn Ficcara From the visual to the virtual and from Victorian engineering genius to modernist masterpieces, 10 November Pick series: Langlands & Bell in conversation with Designology uncovers the fascinating designs and 2016 Robert Elms processes behind London’s moving metropolis. The artists behind the Pick monument at Piccadilly 20 May – Poster Parade: Poems on the Underground Circus in conversation with Robert Elms, about their 25 April 2017 career and partnership Celebrating 30 years of ‘Poems on the Underground’, this exhibition featured classical, contemporary 18 November Friday Late: 20th Century Design and international work by both famous and less well-known poets 2016 Talks and activities around art on the underground, the roundel design, mapping and typefaces. Designers 29 July – Poster Parade: The Athletic Appeal Wallace Sewell in the Designology Studio 27 October 2016 A selection of popular sports posters displayed by TfL and its predecessors. Reflecting the most successful 8 December 2016 Museum Makers: Moquette Crafty Christmas sports for Team GB at the London 2012 Olympic and An after-hours craft workshop using moquette fabric Paralympic Games to create Christmas decorations and cards

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EXHIBITIONS AND SPECIAL DISPLAYS (continued)

28 October 2016 – Poster Parade: From seen to unseen 26 January 2017 Celebrating a year of design, exploring the seen and unseen designs of the London Underground with 20 posters about graphic, environmental, infrastructural and invisible designs

27 January – Poster Parade: Reimagining historic posters 28 April 2017 Exploring the classic poster designs that have gone on to provide inspiration for a new generation of artists

From 1 February Breakthrough: Crossrail’s Tunnelling Journey 2015 Displays including a five-metre high walk-through section of tunnel showing how Crossrail is being built under London’s streets

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58 58 The Museum ended the year with funds carried forward of £31.2m Following a year of substantial activity, with (2016: £31.5m) after recording an operating deficit of £0.3m (2016: £0.3m). Of the Museum’s total funds, the £23.3m Capital Fund (2016: £24.0m) increases both in our income and expenditure, represents the book value of the Museum’s fixed assets rather than the charity made an operating deficit of £0.3m liquid funds readily available for use. The Trustees have set aside £6.1m in a series of designated reserves (see below) and the Museum has £1.1m of in 2016/17. The year was one of significant general reserves. development for our trading operations and the TfL is the Museum’s single largest supporter, providing both grant flagship Hidden London programme, and we funding and essential services such as finance, payroll and HR at no delivered capital improvements to our retail charge to LTM. Although the TfL revenue grant is going through a phased spaces. We have also set aside further funds reduction, this year we also received TfL project ‘investment’ grants which allowed us to extensively refurbish our Museum shop to create a to prepare for the next stage of the brighter, more modern retail environment which will generate greater Museum’s development. sales revenue in future.

The Museum has a wide range of funding sources, and, overall, we grew

our income by five per cent this year. The most significant increase came from the ‘Hidden London’ tour programme which doubled its turnover. We have already begun to sell tickets for the 2017/18 tours and intend to 58 continue developing the programme in future, adding new locations and innovative tour itineraries.

Other significant funding sources include Arts Council England, the annual fundraising dinner, the London Transport Museum Friends and the Gift Aid scheme which allows us to reclaim tax paid by our visitors. We undertook a substantial exercise this year to bring our Gift Aid records and claims up to date and this resulted in additional revenue of over £200k.

It was a year of major development for our trading activities, with a new webshop provider coming on board half way through the year, a new café and catering concession established in January and a comprehensive refurbishment of the Museum shop at Covent Garden.

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The latter saw some £500k of capital expenditure which is carried in The Museum has no endowment funds. The Trustees are aware of the accounts as ‘assets under construction’ and will be fully capitalised initiatives such as the HLF Catalyst programme, which encourages when the outstanding snagging items are completed and the assets organisations to develop endowments through matched funding, and fully commissioned. should such programmes be repeated in the future we would be keen to explore these kinds of opportunities. In total, operating expenditure increased by five per cent this year. There were significant costs associated with the Designology exhibition and General reserves with the development work necessary to develop Hidden London and General reserves (i.e. ‘free reserves’ or ‘general unrestricted funds’) are our commercial activities. Crucially this year, we successfully concluded funds not designated or restricted to a particular purpose, nor our rent review negotiations for the Museum at Covent Garden. represented by fixed assets.

Although we incurred some additional consultancy costs to address this, In assessing the suitability of the adequacy of the level of free reserves, the result was a relatively small increase in the rent, and we are very the Trustees have had regard to LTM’s diverse income streams, cashflow grateful to TfL, the primary leaseholder, for undertaking to not pass this requirements, the level of other designated funds, the organisation’s increase on to LTM. operational risks and the importance of TfL funding and support in the context of the Museum as a subsidiary company of TfL. We are confident RESERVES that this level is adequate. The reserves policy including target levels, designations and the reasons for holding reserves, is reviewed regularly, taking into account the Designated funds Museum’s plans, funding and general financial position, and having due It is the Trustees’ policy to designate reserves for three main reasons: regard to the guidance issued by the Charities Commission. The policy is • reported to stakeholders via the Annual Report. To enable the Museum to plan for major exhibitions and educational programmes, in advance of securing external The charity has three types of reserves: sponsorship or other funding, by setting aside funds to cover the cost of such activities should external income not become (i) General reserves are unrestricted funds which provide available. working capital and help deal with unplanned and unexpected expenditure or loss of funding. • To contribute towards the cost of asset renewals and other future capital expenditure associated with the Museum’s premises, (ii) Designated funds are unrestricted funds set aside by the facilities and fixed assets. Trustees for a specific purpose. • To support the Museum’s strategic development plans, in (iii) Restricted reserves are reserves which have been created particular the need to develop the Museum’s gallery offer, and to when donors or funders restrict the use of funds for a invest in and grow the income generating aspects of the charity in particular purpose. order to offset reductions in funding and generally ensure the Museum remains financially sustainable.

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It is the Museum’s policy to set a target level for each designated reserve This year, the Fund provided £0.9m towards the Museum’s capital and to assess the level of each reserve annually. As at the end of the year investment programme, which was in turn offset by £0.8m of project there is £29.4m set aside in four key designated funds: funding from TfL and £0.1m of transfers from the general fund, meaning the fund is back to £1.6m at the end of the year. Future Exhibitions and Education Fund £0.5m This Fund was established to give assurance that the Museum’s next The target range for this Fund is between £1m and £2m. major exhibition can be delivered even if external sponsorship cannot be secured. This enables the Museum to plan ahead for long lead-time The Museum Strategic Development Fund (MSD) £4m exhibitions and educational programmes by providing some level of This Fund was created to help address the important strategic challenges cover for the costs of such activities. Fundraising lags expenditure and facing the Museum and provide financial resources for the next major the Museum cannot wait until it raises all the funds for a project before Museum refurbishment project. The five-year plan adopted during 2016/17 committing to that project. includes plans to invest periodically in specific galleries and permanent exhibitions. The fund may provide cashflow for a project but will ultimately only be called upon to cover (at most) the gap between the cost of the project This prevents the need for a disruptive Museum-wide refit as experienced and the total external funding that is raised. in 2005-07. External funds have been secured (and will continue to be sought) to support some gallery refits. A Gallery Masterplan is also being The target level for the Fund is set at £0.5m which is based on the full created to ensure that LTM’s galleries are kept up to date and maintain a cost of one major exhibition and an associated education programme. high-quality visitor experience by incorporating the latest interactive There were no calls on this Fund in 2016/17 as the Museum’s learning and technologies and replacing worn out or ageing infrastructure. It is unlikely exhibition programmes secured the necessary income to undertake that the full costs of this programme will be met by external funders and planned activities. Each exhibition is a unique proposition, based on a it is intended that the MSD will provide the balance of funding. different aspect of the collection and thus will appeal to different potential funders. Experience of successful fundraising for previous In addition, with the Museum facing a significant reduction in funding exhibitions is not necessarily a guide to the fundraising prospects for over the next two years, it is expected that the Museum will incur future exhibitions. It is therefore prudent to maintain this Fund at the operating deficits while we invest in the growth of income generating target level. activities to offset the loss of core grant. Where such losses cannot be funded from general unrestricted funds, it is intended that this Museum Asset Development Fund £1.6m development strategy be funded from the MSD. The Museum Asset Development Fund was established to set aside funds for repairs and renewals to the Museum’s fixed assets, particularly We are also committed to the principle of the ‘Distributed Museum’ – an the Acton Depot infrastructure and the 19th century listed buildings at aspiration to develop activities at sites away from Covent Garden to Covent Garden. The Museum’s capital expenditure needs are very expand the Museum’s reach and impact. Careful consideration was given variable and external capital grants can be difficult to secure. However, in during the year to a proposal for a new gallery in west London, and we recent years, specific grants have been made by TfL and others for will continue to look for and assess other opportunities for sustainable specific projects, meaning the Museum has not had to call on this Fund development. as much as expected.

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Any new ventures will be subject to a business case and security of Where the restricted funds supplied by these organisations only meet a funding but there may be a call upon the MSD for seedcorn or match proportion of project expenditure, transfers are made from general funds funding, although we are unable to assess when this may arise. to meet the remaining cost. Details of these transfers, and of other restricted funds can be found in the notes to the financial statements. In recognition of these multiple aspects to the fund, and in line with our intention to designate additional reserves where possible to support the Investment Policy Museum’s development, a further £0.5m has been designated to the MSD It is the current policy of the Museum to invest surplus funds in short- leaving it at £4m at the end of the year. term cash deposits within the UK.

Capital Fund £23.3m RISK MANAGEMENT The majority of the Museum’s fixed assets transferred to LTM from TfL The major risks to which the Museum is exposed are regularly reviewed on 1 April 2008. At that time, reserves equivalent to the balance sheet and the Trustees’ risk management strategy includes the following value of the assets were set aside in a designated fund as they do not actions: represent funds readily available for other purposes. • Periodic risk reviews by the Managing Director and Senior This Capital Fund is adjusted to include the value of asset purchases and Management Team, overseen by the Audit Committee disposals, and is written down annually by the value of the depreciation • Regular consideration of risk by the Trustees on the Museum’s fixed assets. Transfers have been made in respect of • Maintenance of the Risk Map and Risk Register the capital work undertaken this year to ensure that the Capital Fund • Maintenance of systems and procedures to mitigate risks represents the net book value of the Museum’s tangible fixed assets. identified in the Risk Map and Risk Register • Maintenance of procedures designed to minimise any potential Restricted Funds impact on the Museum should those risks materialise The Museum has £0.8m (2016: £0.8m) of funds subject to restrictions. • Regular audits of Museum operations carried out by TfL’s Internal Audit department The largest restricted fund is the Collections Development Fund (CDF) which was established in 2012 following the auction of 400 surplus The Museum’s key risks are identified as those with a potential impact 62 posters. The Museums Accreditation scheme requires that the disposal that is rated ‘High’ or ‘Very High’, and which have a ‘High’ or ‘Very High’ of any collection object creates an obligation to spend the income in a likelihood of occurring. Three risks fall into this category: way which benefits the remaining collection. Accordingly, the Collections Development Fund can only be used for acquisitions and conservation. In • Reduction in retail, admissions and other income including grants 2016/17, the CDF funded new acquisitions and restoration activity totalling from TfL and other bodies, or failure of income to grow £83k which included payments for the Sutcliffe Collection vehicles (after sufficiently to meet the needs of the charity as core grant £17k contribution from the Leyland bus appeal). diminishes over the next two years • Systems functionality and the loss of key IT personnel The Heritage Lottery Fund, Arts Council England and Luke Rees-Pulley • Employee morale – especially given recent changes to pay bands Charitable Trust are all important supporters of LTM projects and programmes.

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To mitigate these risks, the Trustees and/or Management Team have undertaken the following actions: • Established a five-year plan for income growth including the development of Hidden London tours, expansion of online sales activities and marketing plans to attract a range of visitors • Refurbished the Museum shop, developed new products and engaged a new visual merchandiser to maximise sales • Sought assurance from the TfL Chief Financial Officer that the agreed level of grant support from TfL is not likely to reduce beyond that already agreed in the TfL and LTM business plans • Begun a cost reduction exercise against the five-year business plan, and established options for controlling future expenditure if income growth does not meet targets • Set aside a prudent level of reserves to offset medium term deficits and provide funds for investment in income growth • Invested in new desktop machines for staff to improve reliability and begun a major piece of work to investigate closer working with TfL for IT services • Proposed a new framework and consultative forum with trades unions • Undertaken a major review of staff communications

In addition to the above, the Trustees are cognizant of the potential effect upon future heritage rail operations that may arise from new signalling technology on London Underground, and of the possible impacts upon heritage bus operation in central London following the creation of the Ultra-Low Emissions Zone. We are monitoring both situations and working closely with our partners to mitigate the potentially harmful effects to our operations.

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The remaining artefacts became the ‘London Transport Collection’ but The Museum can trace its roots to the 1920s some of the vehicles had to be mothballed at operational bus garages and the rest of the collection was put on display at Syon Park in buildings when the London General Omnibus Company where conditions were less than ideal. The redevelopment of the former (LGOC) decided to preserve a small collection of Covent Garden flower market provided a perfect opportunity to create a dedicated central London home for the whole collection, and on 28 buses at Chiswick Works. The collection has March 1980, the London Transport Museum was opened by grown and developed considerably since then, HRH Princess Anne. and is now at the heart of the world’s leading With just 1,000 items in our possession when the Museum opened, we museum of urban transport. now care for nearly half a million objects including trains, buses, trams, signs, photographs, posters, uniforms and other material. The collection was designated as being of national importance in 1997 and two years The earliest objects in the Museum collection include a B type bus and a later we opened the Acton Depot in west London, the first publicly faithful replica of George Shillibeer’s original 1829 horse-drawn omnibus accessible museum store in the UK. Acton Depot is a dedicated site for created in 1929 for centenary celebrations of the arrival of buses in housing and conserving items that are not on display at Covent Garden, London. The London Passenger Transport Board (LPTB) inherited these and there are regular public tours and popular open weekends. and the rest of the LGOC collection in the 1930s. They subsequently added various railway and tramway artefacts as well as vehicles which The Covent Garden building has been significantly refurbished twice had reached the end of their operational lives. A major public facility, the since we opened, with two further interior floors, a purpose-built lecture Museum of British Transport was opened in Clapham in the 1960s to theatre, special exhibition galleries and multiple education spaces added. house the nation’s transport collections, but this closed a decade later We now have an ongoing programme of investment to update the when the mainline railway items were set aside for a new National galleries and improve facilities for our visitors. Railway Museum in York. LTM became a registered charity in 2008, with a Board of Trustees and a clear remit to deliver public benefit. Our busy schedule now includes a programme of special exhibitions, late-night events, talks and debates, Acton Depot Open Weekends, bus and steam train operations, Hidden London tours of disused stations and other sites, and education activities that reach huge numbers of London school children each year.

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Legal status and governing documents Organisation London Transport Museum Limited (LTM) is a registered charity The Museum is governed by a Board of Trustees, chaired by Keith incorporated on 6 February 2008 as a company limited by share. It is Ludeman. The Board meets at least four times a year for formal business governed by its Memorandum and Articles of Association. Under the and once a year for a day of strategic review. Trustees also serve on GLA Act 1999, Transport for London (TfL) has the power to provide and various Board committees (see below) which meet regularly throughout maintain a museum of transport artefacts, records and other exhibits. the year. In addition, Trustees attend Museum events and activities, meet While it is common for charities to incorporate as companies limited by informally, and regularly visit other museums and heritage organisations guarantee, the Transport for London (Specified Activities) Order 2000 to widen their knowledge and experience of the cultural sector. requires TfL to carry out museum activities through a company limited by shares. Day-to-day management of the Museum is delegated to the Managing Director, Sam Mullins, and through him to the Senior Management Team Under section 5.1 of the LTM Memorandum of Association, the property (SMT), employees and volunteers. The SMT is made up of five Assistant and funds of the Museum must be used only for promoting the objects Director (AD) posts, each with distinct functional responsibilities. and no dividend is payable to TfL. The Trustees and SMT as a group are collectively considered to represent LTM has a wholly owned subsidiary, London Transport Museum (Trading) the ‘key management personnel’ of the charity – i.e. those persons Limited (LTMTL) which operates retail, corporate hire and other non- having authority and responsibility for planning, directing and controlling charitable activities to generate funds to further the Museum’s objects. the day-to-day activities of the charity. All the profits of LTMTL are distributed to LTM. London Transport Museum (Trading) Limited is governed by a Board of Directors drawn from the Museum’s Trustees and staff, along with a number of independent non-executive directors.

Trustees There are up to thirteen Trustees, three of whom are nominated by TfL and may be members, officers or employees of TfL or the Greater London Assembly. The Managing Director of LTM is automatically a Trustee by virtue of his office, and there are up to nine independent Trustees unconnected with TfL. The Board has established a Nominations Committee to offer advice and make recommendations regarding the appointment of independent Trustees. We use personal recommendation and external search to recruit Trustees with expertise and experience that will support the strategy and operation of the Museum in areas such as community outreach, education, museum practice, commercial transportation, finance and governance, retail operations and public relations.

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Trustees serve a three-year term following which they may be elected We were also joined by two new independent Trustees this year: for another three years. The Articles of Association make allowance for a second extension of up to three more years in exceptional Dr Hayaatun Sillem, Deputy CEO and Director of Strategy of the Royal circumstances. Other than the Managing Director, who is an employee of Academy of Engineering, has extensive leadership experience in science, LTM, the Trustees receive no remuneration, but TfL offers Trustees engineering and innovation policy and programmes. She is also on the (and non-executive Directors of LTMTL) certain travel concessions. If board of the Science, Engineering and Manufacturing Technologies these are not sufficient, Trustees may claim travel expenses for Alliance and a judge for the St Andrews Prize for the Environment. attending meetings. Liz Williams is Director of BT Group’s Tech Literacy and Education Sir David Bell left the Board in January 2016, having been associated with Programmes. She recently chaired a review of digital skills on behalf of the charity since before its inception in 2008. David brought considerable the UK Government and represents BT on the Movement to Work experience from the private and charity sectors to his role as Chair of the employer coalition committed to tackling youth unemployment. In 2016, Museum, and has played a major role in LTM’s success over the last nine Liz was named in Business Cloud Magazine’s inaugural ‘100 Women Role years. He is succeeded as Chair by Keith Ludeman. Models of Tech’ list.

Roger Cooke also stepped down as a Trustee this year. Roger, too, had At 31 March 2017, there were thirteen Trustees. been on the Board since 2008 and had taken a particular interest in the financial affairs of the charity, chairing the Audit Committee and helping Trustee induction and training to establish the Museum’s Finance Committee. Roger remains a Director New Trustees undergo an orientation programme to brief them on their of LTMTL and has agreed to be co-opted to the role of Chair of the Audit obligations under charity and company law, the content of the Committee until September 2017 when he will be replaced by Andrew Memorandum and Articles of Association, the committee and decision- Smith who will be invited to join the Board during 2017 when the next making processes, the business plan and recent performance of the vacancy arises. Museum. During their induction they are invited to spend time with the LTM Managing Director and meet senior staff, and are provided with TfL nominated Trustee, Sir Terry Morgan CBE, came to the end of his relevant reference material. term in May 2016. We are most grateful to Terry for his contribution and support. The vacant TfL nominee position was filled by Leon Daniels, who joined the Board in June 2016. Leon is Managing Director, Surface Transport at TfL where he is responsible for the safe and efficient running of London's roads, bus services, taxis, cycle hire, river services, London Overground, DLR, Emirates Air Line and trams. Leon is well known to the Museum having been an independent Trustee of LTM between 2008 and 2011 and we are delighted to welcome him back.

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Committees As a wholly-owned subsidiary company within the TfL Group, the The Board of Trustees has four committees: Museum has access to support and advice from other Group functions in • The Audit Committee assists and advises the Board of Trustees areas such as accounting, taxation, property, marketing and contracts. of LTM and the Directors of LTMTL on audit matters, oversees The Museum receives substantial support from parts of the TfL Group the relationship with TfL Internal Audit and external auditors, such as Finance, Human Resources (HR), Internal Audit and Payroll. The and oversees the Museum’s risk management process. The Museum occupies premises which are owned or leased by TfL Group committee’s activities include detailed review of the Annual companies and is given access to TfL assets such as disused stations. Accounts and consideration of Internal Audit Reports. Varying financial arrangements apply to the various Group services, many of which are supplied at no cost to the Museum. Further details • The Finance Committee assists and advises the Trustees on can be found in the Notes to the Financial Statements. issues relating to financial matters including financial objectives,

financial strategy, budgeting and reporting. The committee The Museum generally adopts TfL’s HR, Procurement and other policies reviews budgets and plans, and scrutinises performance unless a Museum-specific policy has been agreed by the Board and takes information including management accounts. precedence. Examples of Museum policies include safeguarding, • The Nominations Committee advises the Board on issues relating reserves, and sponsorship. to the mix of skills represented by the Board, succession planning for Trustees, and Trustee recruitment. In particular, the Employment policies committee makes recommendations to the Board regarding the At the end of March 2017, the Museum employed 102 people. appointment of independent Trustees. • The Remuneration Committee reviews the level and structure of The Museum is part of the TfL Framework for Consultation and remuneration for the Chief Executive and other members of Collective Bargaining. Pay negotiations for the majority of staff are LTM’s Senior Management Team on behalf of the Board. It is our conducted between the TfL Company Council for Collective intention to extend the remit of this committee to include Bargaining and the recognised trades unions which are the National matters related to the setting of the Museum’s pay ranges, and Union of Rail, Maritime and Transport Workers (RMT) and the Transport the annual pay review, for all staff. Salaried Staff Association (TSSA). The Museum retains responsibility for the distribution of base pay budgets and the level and distribution of Relationship with TfL performance awards. The Museum has proposed an appendix to the TfL When LTML was established in 2008, a series of written agreements was Framework that would devolve greater responsibility for consultation put in place between TfL and LTM. These set out a framework for the and collective bargaining to Museum management working with local continued provision and maintenance of the Museum, covering many TU representatives. aspects of the operation and funding of LTM, and the long-term relationship between the parties. Items in the Museum collection are subject to a loan agreement between the Museum and TfL.

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Pay and remuneration of the charity’s key management personnel, The Museum provides clear and identifiable benefits to the public in (including the Managing Director but excluding the Trustees) is subject three categories of activity: access and museum operations, education to the TfL Senior Management Reward Framework which uses base and engagement, and heritage and collections. Details of our pay to recognise an individual’s overall value to the organisation in achievements in these areas can be found in the Strategic Report. relation to internal and external job markets and performance awards to reward individual contribution within the overall context of LTM does no harm or detriment through its charitable activities. The organisational performance. The framework is underpinned by TfL’s health and safety of staff and visitors are taken very seriously and the Performance Management and Competency frameworks, linking Museum operates safety management systems to reduce and manage performance and behavioural assessment directly with pay risks. We seek to manage our impact on the environment and we use and performance awards. Pay and remuneration of the charity’s key photovoltaic solar panels on the Museum roof to generate around 2 per management personnel is overseen by the Remuneration Committee. cent of the annual electricity requirement.

As part of the TfL group, Museum staff receive free or discounted travel (2) Public aspect: That the Museum delivers benefits to the public on public transport services operated by TfL and are entitled to join the in general, and that these benefits are not unduly restricted and TfL Pension scheme. do not give rise to more than incidental personal benefit.

Charitable objectives and public benefit LTM delivers benefits to visitors at the Museum in Covent Garden and When reviewing the Museum’s aims, objectives and achievements, and in the Depot in Acton, to users of our website, and to school children and planning future activities, the Trustees of LTM have had due regard to audiences across Greater London who take part in our educational, the public benefit guidance published by the Charity Commission. We community and engagement activities at the Museum and elsewhere. believe that LTM upholds the principles of public benefit against the two Our audience development and community outreach work, our skills key aspects established by the Charity Commission: development work, and our employability programmes engage with people who would not normally visit museums and galleries, and help (1) Benefit aspect: That the Museum has beneficial purposes and inspire the next generation of engineers and transport professionals. The that any detriment or harm that results from those purposes Museum at Covent Garden is fully accessible and we welcome visitors does not outweigh the benefit. on all but two days of the year. We run special early morning events for families with children who have special educational needs, and our LTM’s purposes as a charity are to advance the heritage of transport in schools’ programmes run throughout term time. London and to educate the public about the history of transport in London through the provision, operation and maintenance of a transport Our visitors come from across London and the world. We take our museum for the public benefit. LTM also seeks to educate the public heritage vehicles out onto the roads and rails, make historic disused about the wide role of transport in the life and work of London past, stations publicly accessible, visit schools and work with local present and future, and to help develop the skills and employability of communities across the Capital. We also loan objects to other our beneficiaries, particularly with regard to transport and engineering. institutions to extend our reach and increase access to our collections. Our comprehensive, free online resources are available 24 hours a day and include access to information about exhibits in our gallery as well as thousands of objects not normally on public display.

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Although the Museum charges admission fees, various measures are Disclosure of information to auditors taken to ensure that charges do not unduly restrict access to the The Trustees who held office at the date of approval of this Trustees’ collection. These include free entry to the Museum for anyone aged 17 or Report confirm that, so far as they are each aware, there is no relevant under, for carers accompanying disabled visitors, and reduced admission audit information of which the Museum’s auditors are unaware; and each charges for senior citizens, students and those in receipt of state benefit Trustee has taken all the steps that they ought to have taken as a assistance. We also offer a bursary programme. Most Museum admission Trustee to make themselves aware of any relevant information and to tickets are valid for one year to encourage return visits and increase establish that the Museum’s auditors are aware of that information. value for money for visitors. Many of the Museum’s outreach programmes are free for participants. The Safety and Citizenship and Youth Travel Ambassador programmes engage with over 100,000 pupils each year and are delivered at no cost to the schools taking part.

Where the Museum delivers private benefits to individuals or companies, these are subject to appropriate commercial arrangements undertaken through a subsidiary company to generate funds for the Museum. No LTM or TfL staff receive private benefit other than in an incidental way and, with the exception of Sam Mullins who receives a salary in respect of his position as the Museum’s Managing Director, the Board receive no payments for their role as Trustees of the Museum.

Relationship with other charities and organisations The Museum is an instinctively collaborative organisation that seeks to work with like-minded partners from the private, public, educational and not-for-profit sectors to achieve mutually beneficial goals and enhance the delivery of public benefit. A list of our education and engagement partnerships can be found in the Strategic Report.

We are fortunate to be supported by the London Transport Museum Friends (LTMF), an independent charity (no. 285108) established in 1982 which has charitable objectives to advance ‘…public education in the history of transport and in particular by assisting and encouraging the work and activities of the London Transport Museum’. Museum Director Sam Mullins is also a Trustee of LTMF, and the Museum provides office space and other support to the Friends.

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STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES OF LONDON The Trustees are responsible for keeping adequate accounting records TRANSPORT MUSEUM LIMITED IN RESPECT OF THE TRUSTEES’ that are sufficient to show and explain the charitable company’s ANNUAL REPORT AND THE FINANCIAL STATEMENTS transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure The trustees are responsible for preparing the Strategic Report, the that its financial statements comply with the Companies Act 2006. They Trustees’ Annual Report and the financial statements in accordance with have general responsibility for taking such steps as are reasonably open applicable law and regulations. to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities. Company law requires the Trustees to prepare financial statements for each financial year. Under that law they are required to prepare the group This report was approved by the Board of Trustees and signed on 25 and parent company financial statements in accordance with UK October 2017 on its behalf by Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Sam Mullins, Managing Director Under company law the Trustees must not approve the financial London Transport Museum Limited statements unless they are satisfied that they give a true and fair view of Company registration number 6495761 the state of affairs of the group and charitable company and of the Charity number 1123122 group’s excess of expenditure over income for that period. In preparing each of the group and charitable company financial statements, the Trustees are required to: • select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the charitable company will continue its activities.

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Directors and Trustees The Directors of the charitable company are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

BOARD OF TRUSTEES AUDIT COMMITTEE DIRECTORS OF LONDON TRANSPORT Sir David Bell (to 1 January 2017) Roger Cooke (Chair) MUSEUM (TRADING) LIMITED Roger Cooke (to 30 March 2017) Keith Ludeman Roger Cooke Leon Daniels (from 1 June 2016)* Phil Swallow Chris Gilbert Michèle Dix* Angela McConville Vernon Everitt* FINANCE COMMITTEE Sam Mullins Sir Peter Hendy Roger Cooke Randeep Sidhu Penny Johnson Keith Ludeman (Chair) Michael Walton (to 13 July 2017) Keith Ludeman (Chair) Angela McConville Peter Williams (to 8 Feb 2017) Angela McConville David Worthington Claire Williamson (to 13 July 2017) Terry Morgan* (to 31 May 2016) David Worthington (Chair) Sam Mullins (Managing Director) NOMINATIONS COMMITTEE Andy Rothery Keith Ludeman (Chair) AUDITORS Hayaatun Sillem (from 5 March 2017) Vernon Everitt Kingston Smith LLP Phil Swallow Angela McConville Devonshire House Liz Williams (from 30 March 2017) 60 Goswell Road David Worthington REMUNERATION COMMITTEE London EC1M 7AD Keith Ludeman (Chair) * Nominee of Transport for London Vernon Everitt PRINCIPAL LEGAL ADVISERS Penny Johnson TfL In-House Legal Department 6th Floor Windsor House MUSEUM SENIOR MANAGEMENT TEAM 42–50 Victoria Street (Assistant Directors) London SW1H 0TL David Burns - Commerce (on attachment from TfL) PRINCIPAL BANKERS Chris Gilbert - Business and Performance HSBC Chris Nix - Collections and Engagement 8 Victoria Street Geoff Rowe - Operations (interim) London SW1H 0NJ Claire Williamson - Marketing & Development COMPANY SECRETARY Howard Carter

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INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDER OF Respective responsibilities of trustees and auditor LONDON TRANSPORT MUSEUM LIMITED As explained more fully in the Trustees’ Responsibilities Statement set We have audited the financial statements of London Transport Museum out on page 73 the trustees (who are also the directors of the charitable Limited for the year ended 31 March 2017 which comprise the Group company for the purposes of company law) are responsible for the Statement of Financial Activities, the Group and Parent Charitable preparation of the financial statements and for being satisfied that they Company Balance Sheets and the related notes. The financial reporting give a true and fair view. Our responsibility is to audit and express an framework that has been applied in their preparation is applicable law opinion on the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally and International Standards on Auditing (UK and Ireland). Those Accepted Accounting Practice) including FRS 102 ‘The Financial Reporting standards require us to comply with the Auditing Practices Board’s Standard Applicable in the UK and Ireland’. (APB’s) Ethical Standards for Auditors.

This report is made solely to the charitable company's shareholder in Scope of the audit of the financial statements accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable An audit involves obtaining evidence about the amounts and disclosures company's shareholder those matters which we are required to state to in the financial statements sufficient to give reasonable assurance that them in an auditor's report and for no other purpose. To the fullest the financial statements are free from material misstatement, whether extent permitted by law, we do not accept or assume responsibility to caused by fraud or error. This includes an assessment of: whether the any party other than the charitable company its shareholder as a body, accounting policies are appropriate to the company’s circumstances and for our audit work, for this report, or for the opinions we have formed. have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

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Opinion on financial statements We have nothing to report in respect of the following matters where the In our opinion the financial statements: Companies Act 2006 requires us to report to you if, in our opinion: • give a true and fair view of the state of the group’s and the parent • the parent charitable company has not kept adequate accounting charitable company’s affairs as at 31 March 2017 and of the group’s records, or returns adequate for our audit have not been received incoming resources and application of resources, including its from branches not visited by us; or income and expenditure, for the year then ended; • the parent charitable company’s financial statements are not in • have been properly prepared in accordance with United Kingdom agreement with the accounting records and returns; or Generally Accepted Accounting Practice; and • certain disclosures of trustees’ remuneration specified by law are • have been prepared in accordance with the requirements of the not made; or Companies Act 2006. • we have not received all the information and explanations we require for our audit. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: • the information given in the strategic report and the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the strategic report and the trustees’ annual report have been Neil Finlayson (Senior Statutory Auditor) prepared in accordance with applicable legal requirements. for and on behalf of Kingston Smith LLP, Statutory Auditor

Matters on which we are required to report by exception Devonshire House In the light of the knowledge and understanding of the company and its 60 Goswell Road environment obtained in the course of the audit, we have not identified London material misstatements in the strategic report or the trustees’ annual EC1M 7AD report. 9 November 2017

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Including income and expenditure account - Year ended 31 March 2017 Note Unrestricted Restricted Funds Total Funds Unrestricted Restricted Funds Total Funds Funds Funds 2017 2017 2017 2016 2016 2016

£000 £000 £000 £000 £000 £000

INCOME FROM: Donations, grants and fundraising Core grants 5,183 - 5,183 5,305 - 5,305 Other grants and donations 1,285 17 1,302 856 38 894 4 6,468 17 6,485 6,161 38 6,199 Charitable activities Education and engagement 1,728 197 1,925 1,756 173 1,929

Access and museum operations 3,062 43 3,105 2,507 186 2,693

Heritage and collections 128 213 341 79 174 253 6a 4,918 453 5,371 4,342 533 4,875 Commercial activities 5 4,406 - 4,406 4,374 - 4,374 Other income 2 76 78 6 131 137 Investments (bank interest) 19 - 19 14 - 14

Total income 15,813 546 16,359 14,897 702 15,599

EXPENDITURE ON: Raising funds Trading operations 3,625 4 3,629 3,254 25 3,279 Other fundraising activities 910 3 913 832 143 975 8a 4,535 7 4,542 4,086 168 4,254

Charitable activities

Education and engagement 4,538 287 4,825 4,513 174 4,687 Access and museum operations 4,317 118 4,435 4,269 48 4,317 Heritage and collections 2,652 215 2,867 2,225 374 2,599 8a 11,507 620 12,127 11,007 596 11,603

Total expenditure 8a 16,042 627 16,669 15,093 764 15,857 Net (expenditure)/income (229) (81) (310) (196) (62) (258)

Transfers between funds 16a (25) 25 - (22) 22 -

Net movement of funds in year (254) (56) (310) (218) (40) (258) Reconciliation of funds Total funds brought forward 30,691 828 31,519 30,909 868 31,777 Total funds carried forward 16a 30,437 772 31,209 30,691 828 31,519

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.

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2017 2016 2017 2016 These financial statements were approved by the Trustees on 25 Note Group Group Museum Museum October 2017 and signed on their behalf by: £000 £000 £000 £000 Tangible Fixed Assets 12 23,325 24,043 23,325 24,043

Current Assets Sam Mullins Stock 1,265 977 - - Managing Director Debtors 13 1,476 1,831 1,682 2,226 London Transport Museum, Cash 14 8,067 6,799 7,910 6,363 10,808 9,607 9,592 8,589 Company registration number 6495761 Creditors Falling due within one year 15a (2,911) (2,131) (1,708) (1,113) The notes on pages 82 to 97 form part of these accounts (2,911) (2,131) (1,708) (1,113)

Net Current Assets 7,897 7,476 7,884 7,476

Total assets less current liabilities 31,222 31,519 31,209 31,519 Creditors Falling due after more than one year (13) - - -

Net Assets 31,209 31,519 31,209 31,519

Represented by Restricted funds 16a 772 828 772 828 Called up share capital 18 - - - - Unrestricted Funds Designated funds Capital Fund 23,325 24,043 23,325 24,043 Future Exhibitions and Education Fund 500 500 500 500 Museum Asset Development Fund 1,559 1,559 1,559 1,559 Museum Strategic Development Fund 4,000 3,500 4,000 3,500 General unrestricted fund 1,053 1,089 1,053 1,089 16a 30,437 30,691 30,437 30,691

Total 31,209 31,519 31,209 31,519

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1. BASIS OF PREPARATION 2. USES OF ESTIMATES AND JUDGEMENTS

a) Statement of compliance The preparation of Financial Statements in compliance with UK accounting standards requires The financial statements have been prepared in accordance with: the use of certain critical accounting estimates. It also requires Trustees and management to exercise judgement in applying the Museum’s accounting policies. • the Companies Act 2006 Items in the financial statements where these judgments and estimates have been made • the Charities Act 2011 include amounts for goods, facilities and services donated for the Museum’s use. Where the benefit is quantifiable and the goods and services would otherwise have had to be purchased, • Accounting and Reporting by Charities: Statement of Recommended Practice such items are recognised in the financial statements as both income and expenditure at a reasonable estimate of their value to the charity in the period in which they are donated. • (SORP 2015) As per SORP 2015 section 1.38, measurement issues, including attributing an economic value to • United Kingdom Accounting Standards and generally accepted accounting practice, the contribution of general volunteers, prevent the value of services provided by volunteers including Financial Reporting Standard 102 (FRS 102), the Financial Reporting Standard being incorporated into these financial statements. Further details of the contribution made by applicable in the United Kingdom and the Republic of Ireland. volunteers can be found in the body of the Trustees’ Annual Report.

b) Basis of measurement The most significant judgment and estimate in the accounts is the value placed on the net The accounts are made up to 31 March 2017 and have been prepared under the accruals concept assets transferred from TfL under the Transfer Scheme at 1 April 2008 when the charity was and in accordance with the historical cost accounting convention. formed. These assets were valued at £28.74m, this being the written down value of the assets in the accounts of TfL as at 31 March 2008. The Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the As at 31 March 2017, no estimates or assumptions made are considered to have a significant risk Trustees continue to adopt the going concern basis in preparing the annual report and of causing a material adjustment to the carrying amounts of assets and liabilities within the accounts. next financial year. The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair’ view. This departure has involved following SORP 2015 issued on 16 July 3. ACCOUNTING POLICIES 2014 rather than the preceding Charities SORP (SORP 2005) which was effective from 1 April 2005 and has since been withdrawn. a) Income The principal accounting policies adopted in the preparation of the financial statements are set out below. Income is included in the Statement of Financial Activities when all of the following criteria are met: c) Group financial statements • control over the rights or other access to the economic benefit has passed to the These financial statements consolidate the results of the Museum charity and its wholly Museum (‘entitlement’) owned subsidiary London Transport Museum (Trading) Limited on a line by line basis. Neither a separate statement of financial activities nor an income and expenditure account are presented • it is more likely than not that the economic benefits associated with the transaction for the Museum charity itself following the exemptions afforded by section 408 of the or gift will flow to the Museum (‘probable’) Companies Act 2006. • the monetary value or amount of the income can be measured reliably and the costs The functional currency of the Museum is Pound Sterling and amounts have been rounded incurred for the transaction and the costs to complete the transaction can be to £000. measured reliably (‘measurement’)

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Income from donations, grants and fundraising includes items that provide core funding or d) Heritage assets are of a general nature. These are recognised upon receipt. Such income would only be deferred when: Heritage assets are those assets of historical, artistic or scientific importance that are held to advance the preservation, conservation and educational objects of the Museum. The Museum • The donor specifies that the grant or donation must only be used in future collections consist of over 475,000 items which are on loan from TfL. Assets on loan are not accounting periods; or capitalised within these financial statements although expenditure relating to their use and maintenance is included in the Statement of Financial Activities. • The donor has imposed conditions which must be met before the Museum has unconditional entitlement. e) Operating leases Income from corporate supporter memberships, commercial trading, sponsorships and other Costs relating to operating leases are charged to the Statement of Financial Activities on a similar activities where benefits are delivered by the Museum or its subsidiary trading company, straight line basis over the life of the lease. is recognised as the related goods and services are provided. f) Stock Investment income is recognised on a receivable basis. Stock is valued at the lower of cost or net realisable value. Cost includes only the purchase Income from charitable activities includes income received under contract or where price of the items. Provision is made for obsolete and slow-moving items where appropriate. entitlement to grant funding is subject to specific performance conditions which is recognised All stocks relate to the Museum’s retail activities. as the related goods or services are provided. g) Funds structure b) Expenditure Restricted funds are funds to be used for particular purposes laid down by the donors or which All expenditure (except capital expenditure) is included in the Statement of Financial Activities have been raised for a specific purpose. inclusive of any irrecoverable VAT. Expenditure is recognised when a liability is incurred and is Unrestricted funds are funds available for use at the discretion of the Trustees in furtherance classified under the following principal categories: of the Museum’s charitable objectives. • Costs of raising funds includes the costs of commercial trading and the operating Designated funds comprise unrestricted funds that have been set aside by the Trustees for costs of the fund-raising department. particular purposes. • Costs of charitable activities include expenditure associated with the operation of the Museum and its educational and public programmes, and the management and The purposes and uses of the funds held in each of these categories are given in Note 16. development of the Museum’s collections and exhibitions. h) Pensions Where costs relate directly to an activity they have been allocated against that activity. Support The Museum participates in a pension scheme operated by TfL providing benefits based on costs that relate to more than one activity have been allocated to activity cost categories on final pensionable pay. The assets of the scheme are held separately from those of the Museum. the basis of staff numbers in each area of activity (see Note 8). The charity is unable to identify its share of the underlying assets and liabilities of the scheme c) Tangible fixed assets on a consistent and reasonable basis and therefore, as permitted by the multi-employer exemption in FRS 17 ‘Retirement Benefits’, it is accounted for as if it were a defined contribution Individual fixed assets over £10,000 are capitalised at cost. scheme. As a result, the amount charged to the Statement of Financial Activities represents the contributions payable to the scheme in respect of the accounting period. The disclosures Tangible fixed assets are depreciated on a straight line basis over their estimated useful lives required under FRS 102 are given in Note 19. as follows: i) Related party transactions Plant and equipment 3 – 10 years Buildings and refurbishments 10 – 35 years Except in so far as disclosed in Note 20, the Museum has taken advantage of the exemption set out in section 33 of FRS 102 not to disclose any transactions with other TfL Group undertakings. Structural improvements to the fabric of the Museum at Covent Garden are depreciated over j) Taxation the remaining life of the lease for the building (27 years). The Museum is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 Other building work is capitalised where it is considered that future economic benefits in and therefore it meets the definition of a charitable company for UK corporation tax purposes. excess of the originally assessed standard of performance will flow as a result of that work. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

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k) Cash flow The Museum has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from 4. DONATIONS AND FUNDRAISING preparing a statement of cash flows, on the basis that it is a wholly owned subsidiary 2017 2017 2017 2016 undertaking of Transport Trading Limited and its cash flows are included within the consolidated financial statements of that company which are publicly available. Unrestricted Restricted Total Total l) Financial instruments £000 £000 £000 £000

Financial assets held by the Museum are classified as ‘loans and debtors’ within the scope of Grants from TfL 5,183 - 5,183 5,305 sections 11 and 12 of FRS 102.

Financial liabilities within the scope of sections 11 and 12 of FRS 102 are classified as financial Donated services liabilities measured at amortised cost. The Museum determines the classification of its financial instruments at initial recognition and Seconded staff 18 - 18 - re-evaluates this designation at each financial year end. When financial instruments are recognised initially, they are measured at fair value, being the transaction price plus any directly Central services from TfL 275 - 275 275 attributable transactional costs. The subsequent measurement of financial instruments depends on their classification as follows: Donations • Trade and other debtors Benefit dinner 335 - 335 326 Trade and other debtors are recognised initially at fair value and subsequently at amortised cost. For trade debtors this is after an allowance for estimated impairment. The allowance is based on objective evidence that the Museum will not Gift Aid and other donations 657 17 674 293 be able to recover all amounts due, through a review of all accounts and prior experience of collecting outstanding balances. Changes in the carrying amount of the allowance are recognised in the Statement of Financial Activities. Total 6,468 17 6,485 6,199

The fair value of trade and other debtors is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. This fair value is determined for disclosure purposes. • Cash and cash equivalents Cash at bank and in hand comprises cash balances and bank deposits with original maturities of less than or equal to three months. • Trade creditors and other payables Trade creditors and other payables are recognised initially at fair value and subsequently at amortised cost using the effective interest method.

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5. COMMERCIAL ACTIVITIES 6. INCOME FROM CHARITABLE ACTIVITIES 2017 2017 2017 2016 a) Analysis by source of income Unrestricted Restricted Total Total 2017 2017 2017 2016 £000 £000 £000 £000 Group and Museum Unrestricted Restricted Total Total £000 £000 £000 £000 Retail sales 2,549 - 2,549 2,542 Museum admissions 2,197 - 2,197 2,146 Other trading activities Safety and Citizenship income 1,166 - 1,166 1,255 Corporate hire 614 - 614 705 Arts Council Funding - 222 222 181 Catering income 127 - 127 41 Heritage vehicle events and station tours 829 - 829 335 Commercial sponsorships 474 - 474 399 BattleBus project - 135 135 111 Corporate memberships 588 - 588 626 Grants for youth engagement activity 473 - 473 395 Other miscellaneous income 54 - 54 61 Grants for skills and employability - 31 31 39 activities Total 4,406 - 4,406 4,374 Grants for exhibitions - - - 31

Luke Rees-Pulley Charitable Trust grants - - - 47

Other miscellaneous charitable income 253 65 318 335

Total 4,918 453 5,371 4,875

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b) Analysis by type of charitable activity 2017 2017 2017 2017 2016

Education Access and Heritage Total Total and museum and engagement operations collections

Group and Museum £000 £000 £000 £000 £000

Museum admissions - 2,197 - 2,197 2,146

Safety and Citizenship income 1,166 - - 1,166 1,255

Arts Council Funding 99 43 80 222 181

Heritage vehicle events and station tours - 829 - 829 335

BattleBus project 63 - 72 135 111

Grants for youth engagement activity 473 - - 473 395

Grants for skills and employability 31 - - 31 39 activities

Grants for exhibitions - - - - 31

Luke Rees-Pulley Charitable Trust grants - - - - 47

Other miscellaneous charitable income 93 36 189 318 335

Total 1,925 3,105 341 5,371 4,875

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7. OTHER INCOME 2017 2017 2017 2016 Unrestricted Restricted Total Total £000 £000 £000 £000

Arts Council resilience grants - 76 76 131

Other miscellaneous income 2 - 2 6

Total 2 76 78 137

8. EXPENDITURE a) Direct and apportioned costs 2017 2017 2017 2016 Apportioned Direct costs support Total Total costs £000 £000 £000 £000

Cost of goods sold 1,198 - 1,198 1,080

Other trading subsidiary costs 2,427 4 2,431 2,199

Other fundraising activities 332 581 913 975

Costs of raising funds 3,957 585 4,542 4,254

Education and engagement 2,188 2,637 4,825 4,687

Access and museum operations 2,105 2,330 4,435 4,317

Heritage and collections 1,574 1,293 2,867 2,599

Charitable activities 5,867 6,260 12,127 11,603

Total 9,824 6,845 16,669 15,857

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b) Shared support cost allocation 2017 2017 2017 2017 2017

Education Access and Heritage Raising funds Total and museum and engagement operations collections

£000 £000 £000 £000 £000

Premises & facilities 1,670 1,475 819 371 4,335

Finance & management 441 389 216 98 1,144

Marketing 222 196 109 49 576

Systems 155 137 76 34 402

Design & presentation 91 80 45 20 236

Governance 25 22 12 6 65

Other activities 33 31 16 7 87

Total cost 2017 2,637 2,330 1,293 585 6,845

Total cost 2016 2,608 2,226 1,191 562 6,587

Support costs have been allocated to activity cost categories on the basis of staff numbers in each area of activity (see Note 3b).

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9. NET EXPENDITURE 10. TRADING SUBSIDIARY This is stated after charging: The Museum has a single subsidiary company, London Transport Museum (Trading) 2017 2016 Limited (LTMTL), having an issued share capital of £1, wholly owned by London Transport £000 £000 Museum Limited.

Depreciation 1,630 1,586 LTMTL undertakes retail operations, venue hire, commercial sponsorships and the Museum corporate membership scheme.

Auditor’s remuneration LTMTL Profit and Loss Account 2017 2016 Audit - Museum 16 33 £000 £000 Audit – subsidiary trading company 5 6 Turnover 4,423 4,364

Operating lease rentals - buildings 978 978 Cost of operations (3,658) (3,278)

Operating lease rentals – office equipment 42 42 Gross Profit 765 1,086

Operating Expenses (2,460) (2,198)

Profit for the year 765 1,086

Distribution of Gift Aid to London Transport Museum (765) (1,086)

Retained profit for the year after Gift Aid payment - -

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LTMTL Balance Sheet 11. STAFF COSTS AND STAFF NUMBERS

2017 2016 a) Total remuneration

2017 2016 £000 £000 £000 £000 Current assets Group and Museum Stock 1,265 977

Wages and salaries (including holiday pay accrual) 3,656 3,485

Debtors 655 805 Social security costs 391 325 Cash 157 437

Pension costs 870 904

2,077 2,219 Total 4,917 4,714 Creditors

The Managing Director is the only paid director and received emoluments from the Museum, Falling due within one year (including Gift Aid to LTM) (2,064) (2,219) including salary, fees, benefits in kind and other emoluments totalling £96,818 (2016: £95,053). In addition, the Museum made contributions totalling £25,459 (2016: £27,370) to the TfL Pension Fund, a defined benefit scheme, on behalf of the Managing Director for the year. Net current assets 13 -

The number of employees whose employee benefits (excluding employer’s pension Creditors contributions) amounted to over £60,000 in the year is given below.

Falling due after one year (13) - Group Group

2017 2016 Net assets - -

£60,000 - £70,000 3 4 Share capital and reserves £70,001 - £80,000 2 1 Share capital - -

£80,001 - £90,000 - - Profit and loss reserve - - £90,001 - £100,000 1 1 Total equity shareholder's funds - -

Contributions to the defined benefit pension scheme made in respect of the six higher paid employees amounted to £117,101 (2016: six employees, £124,449).

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b) Other than the Managing Director, none of the Trustees received any remuneration for their d) As at 31 March, Museum staff had earned entitlement to annual leave not yet taken equivalent services. Reimbursements of Trustees’ expenses totalling £610 were made in the year (2016: Nil). to an estimated total value of £103,000 (2016: £102,000). Under SORP 2015 the Museum is required to recognise this liability and it has therefore been incorporated in the Statement of c) The average number of persons (full-time equivalents) employed during the year was: Financial Activities.

e) The key management personnel of the Museum comprise the Trustees and the Senior Group 2017 Group 2016 Management Team (see page 67). The total employee benefits (including employer’s pension FTE FTE contributions) of the key management personnel was £508,000 (2016: £558,000) which includes an intercompany charge made by another TfL group company for David Burns who was on Education and engagement 25.7 26.5 attachment to LTM.

Access and museum operations 22.7 22.6

Heritage and collections 12.6 12.1

Activities to generate funds 18.2 17.9

Support functions

Premises & facilities 1.0 1.0

Finance & management 7.5 6.5

Marketing 4.0 3.0

Systems 2.5 3.0

Design & presentation 1.0 1.0

Total 95.2 93.6

Plus seconded staff 0.5 0.0

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12. TANGIBLE FIXED ASSETS

Property and Assets under Property and Plant and Total

buildings construction buildings equipment

£000 £000 £000 £000 £000

Group and Museum

Cost

At 1 April 2016 33,485 - 33,485 1,282 34,767

Additions 90 523 613 299 912

At 31 March 2017 33,575 523 34,098 1,581 35,679

Accumulated depreciation

At 1 April 2016 (9,913) - (9,913) (811) (10,724)

Charge for the year (1,470) - (1,470) (160) (1,630)

At 31 March 2017 (11,383) - (11,383) (971) (12,354)

Net book value at 31 March 2017 22,192 523 22,715 610 23,325

Net book value at 31 March 2016 23,572 - 23,572 471 24,043

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13. DEBTORS 15. CREDITORS 2017 2017 2016 2016 a) Amounts falling due within one year Group Museum Group Museum 2017 2017 2016 2016 £000 £000 £000 £000 Group Museum Group Museum

Trade debtors 701 80 751 112 £000 £000 £000 £000 Trade creditors 424 314 369 296 Sundry debtors - - 2 2 Taxation 25 15 - - Prepayments and accrued income 775 741 1,036 870 Accruals and deferred income 2,462 1,379 1,762 817 Taxation - 45 42 92 Total 2,911 1,708 2,131 1,113 Amounts owed by subsidiary undertakings - 816 - 1,150

Accruals and deferred income includes £810k (2015/16: £602k) of deferred income relating to corporate Total 1,476 1,682 1,831 2,226 sponsorship, membership, and Hidden London ticket sales received in advance.

b) Amounts falling due after one year 14. CASH 2017 2017 2016 2016 2017 2017 2016 2016 Group Museum Group Museum Group Museum Group Museum £000 £000 £000 £000 £000 £000 £000 £000 Deferred income 13 - - - Held in current accounts and in hand 5,131 5,010 3,899 3,463 Total 13 - - -

Held in short-term deposit accounts 2,936 2,900 2,900 2,900

Total 8,067 7,910 6,799 6,363

The majority of the cash balance is held to meet future expenditure relating to the Museum’s restricted and designated reserves (with the exception of the Capital Fund which is represented by the value of the Museum’s fixed assets).

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16. STATEMENT OF GROUP FUNDS a) The movement of funds are as follows:

Group and Museum 1 April 2016 Income Expenditure Transfers 31 March 2017

£000 £000 £000 £000 £000

UNRESTRICTED FUNDS Designated Funds

Capital Fund 24,043 - (1,630) 912 23,325

Museum Strategic Development Fund 3,500 - - 500 4,000

Future Exhibitions and Education Fund 500 - - - 500

Museum Asset Development Fund 1,559 - - - 1,559

Total Designated Funds 29,602 - (1,630) 1,412 29,384

General funds 1,089 15,813 (14,412) (1,437) 1,053

Total Unrestricted Funds 30,691 15,813 (16,042) (25) 30,437

RESTRICTED FUNDS

Luke Rees-Pulley Charitable Trust 76 - (53) 4 27

Met 353 Carriage 39 - (1) - 38

Arts Council England - 298 (300) 11 9

Battlebus - 135 (90) - 45

Collections Development 653 - (83) - 570

Leyland Bus Appeal - 17 (17) - -

HLF Johnston Journeys - 14 (14) - -

HLF Moquette - 47 (1) - 46

Gynneth Forester Trust - 31 - - 31

Other miscellaneous restricted funds 60 4 (68) 10 6

Total Restricted Funds 828 546 (627) 25 772

Total Funds 31,519 16,359 (16,669) - 31,209

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Designated funds b) Analysis of group net assets between funds The Capital Fund represents the net book value of the Museum’s tangible fixed assets. It is written Unrestricted Restricted Total down by the value of depreciation, and increased by any additions to the Museum’s fixed assets. funds funds £000 £000 £000 Capital improvements to the Museum’s premises and facilities totalling £0.9m were added to the Capital Fund this year. These were met by a transfer from the Museum Asset Development Fund Fund balances as at 31 March 2017 represented by (MADF). A transfer of £0.9m was made from the Museum’s general funds to the MADF to maintain the MADF at £1.6m. Fixed assets 23,325 - 23,325 The Museum’s learning and collections-based activities were adequately funded this year so there were no calls on the Future Exhibitions and Education Fund. Current assets 10,019 789 10,808

Restricted funds Current liabilities (2,894) (17) (2,911) The Collections Development Fund was established in 2012/13 following the auction of 400 surplus posters. The Fund can only be used for collections acquisitions and conservation. The Fund met the Long-term liabilities (13) - (13) balance of the cost of the Sutcliffe Collection motor bus acquisition this year, after the Leyland bus appeal raised £0.02m. Total net assets 30,437 772 31,209 Arts Council England provide support for a number of initiatives including some which require match funding from the Museum’s trading company. A transfer from general funds was made to Total net assets at 31 March 2016 30,691 828 31,519 reflect this.

The Luke Rees-Pulley Charitable Trust (LRPCT) supports a number of Museum initiatives including family resource packs, play activities for children, a learning officer and an apprentice. A small shortfall on one element of the LRPCT funded projects was made up by a transfer from general funds.

The Met 353 Carriage Fund will be used for any future conservation work on the Museum’s restored 1908 carriage.

The Heritage Lottery Funded project exploring the Museum’s unique collection of moquette seat fabric began this year. Funding was received in advance and will be spent next year.

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17. OPERATING LEASES 19. PENSIONS

Background At 31 March 2017, the future minimum operating lease payments for the The Museum offers retirement plans to its employees. The majority of the Museum’s staff are Museum and the Group are as follows: members of the Public Sector Section of the TfL Pension Fund, which is a final salary scheme

established under trust. Benefits are based on employees' length of service and final pensionable 2017 2016 pay. The Fund’s Trustee is the TfL Trustee Company Limited, a wholly owned subsidiary of Transport Expiry date £000 £000 for London. Under the rules of the Fund, its 18 trustee directors are nominated in equal numbers by Transport for London and on behalf of the Fund’s membership. Within 1 Year 1,021 1,021 Every three years, the TfL Pension Fund’s Actuary makes valuations and recommends the level of contributions to be made by the participating employers to ensure long-term solvency of the Fund. Between 2 and 5 Years 3,383 3,577 The latest formal funding valuation of the Fund was carried out as at 31 March 2015 by the Actuary, a partner of consulting actuaries Towers Watson, using the projected unit method, and reported a Over 5 Years 16,660 17,486 funding deficit for the Public Sector Section of £395 million.

A revised Schedule of Contributions was agreed between the Trustee and the employers following the 2015 valuation of the TfL Pension Fund. For the Public Sector Section, employers’ contributions for the period from 1 April 2016 until 31 March 2022 will continue to be 31.0 per cent, with an 18. CALLED UP SHARE CAPITAL additional lump sum payment due in March 2018.

2017 2016 The Fund deficit on an IAS19 basis is currently £5,247m. As at the Balance Sheet date, no allocation of the deficit of the fund has been made between the various TfL Group companies, including London £ £ Transport Museum. The TfL Corporation holds the entire liability in its own accounts on the basis that the Corporation is the Principal Employer of the scheme and the allocation of the deficit Authorized between individual subsidiaries cannot be agreed on a consistent and reasonable basis. Should this position change in future, an allocation may be made and the Museum may, at that point, become 1 ordinary share of £1 1 1 liable for its share of the deficit. There are no plans for such an allocation to be made.

Further information regarding the TfL Pension Fund can be found in the TfL Annual Report and Allotted, issued and fully paid up Statement of Accounts.

1 ordinary share of £1 1 1 Accounting The Museum’s ultimate parent, Transport for London, and the Museum’s fellow subsidiaries participate in the Public Sector Section of the TfL Pension Fund. Because the Museum is unable to As permitted by FRS 102 and SORP 2015, because no new share equity has been identify its share of the underlying assets and liabilities on a consistent and reasonable basis, as issued, the Museum has not produced a separate statement of changes in permitted by FRS 102, the Museum treats contributions to the Public Sector Section as if they were equity for the reporting period. contributions to a defined contribution plan. The Museum’s contributions to the Fund of £846,000 (2016: £887,000) have been charged to the income and expenditure account.

Other pension schemes Pension contributions of £19,000 have been made to the London Pensions Fund Authority for a member of staff who joined the Museum from a TfL group company. Two members of staff make AVCs to Standard Life. The employer contribution to this scheme is £3,000.

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LTM is also given access to TfL property including non-operational stations for Hidden London 20. RELATED AND CONNECTED PARTY TRANSACTIONS tours. The Museum has been allowed to install poster frames at a number of London Underground stations and riverboat piers which are used for Museum marketing purposes. In 2016, the rent review Transport for London for the Museum’s premises at Covent Garden was concluded and the rent increased by 11 per cent. London Transport Museum Limited is a charitable subsidiary company of Transport Trading Limited TfL has chosen not to pass this increase on to the Museum. (TTL), a Transport for London Group company. TfL provides financial assistance to the Museum in the form of grants for Museum operations and, in addition, certain divisions of TfL provide financial Museum staff are provided with passes that allow free or discounted travel on TFL services for support to the Safety and Citizenship Programme and other Museum activities as agreed on a project themselves and a nominee. TfL also offer Museum Trustees and non-executive Directors of LTMTL by project basis. restricted travel privileges.

TfL Group companies receive discounts on the hire of Museum facilities, and all TfL staff receive The Museum receives benefits from the activities of TfL Group functions such as Finance, Human free entry to the Museum and discounts in the Museum shop. Resources, Internal Audit and Payroll. Where management fees are levied upon the Museum by TfL and TTL for services provided these are applied at the same rates as for all other TfL Group companies. Where services are donated by TfL which are reasonably quantifiable and measurable, Other related parties these are included in the Statement of Financial Activities at their estimated gross value and an equivalent amount is included as income under the appropriate heading. Other material related party 2017 2017 2016 2016

transactions in the year Income Expenditure Income Expenditure A summary of transactions with TfL which are included in the Financial Statements is given below: £000 £000 £000 £000 2017 2017 2016 2016 a) London Transport Museum Related party transactions with TfL 30 21 56 19 Income Expenditure Income Expenditure Friends £000 £000 £000 £000 b) Interserve – First Security - 475 - 528 Core grant and capital grant 5,183 - 5,305 - a) London Transport Museum Friends (LTMF) Other income 1,663 - 1,743 - Although some Museum Trustees and senior managers may act as Trustees of other charities, the Museum does not direct, and is not under the direction of, the trustees of any other charity and therefore these charities are not considered to be related parties. However, given the close Group services supplied - 509 - 324 relationship with the London Transport Museum Friends, we have chosen to disclose transactions with that organisation. Group services/other benefits donated 275 275 275 275 b) Interserve Museum Chair Keith Ludeman is also a Director of Interserve. The Museum’s security contractor, First Security, is a part of the Interserve group. As at 31 March 2017, no amounts remained outstanding in relation to the above transactions. There are no other related party transactions. In addition to these amounts, a number of other arrangements exist between LTM and TFL for which no financial entries are made: 21. CHARITY INFORMATION

TfL undertakes some maintenance work on LTM’s operational heritage vehicles and provides the The Museum is a company and registered charity incorporated and domiciled in the United Kingdom. Acton Depot site free of charge to the Museum. The Depot is occasionally used by London The Museum’s charity registration number is 1123122 and its company registration number is 6495761. Underground for road/rail access and shunting. The address of the Museum’s registered office is Windsor House, 42-50 Victoria Street, London, SW1H 0TL.

The Museum is a wholly owned subsidiary undertaking of Transport Trading Limited. For more information about the administration and organisation of the Museum see the section ‘Structure, Governance and Management’ in the Annual Report of the Trustees.

London Transport Museum Limited (the "Museum") is a public benefit entity. LTM’s Memorandum of Association states ‘the property and funds of the Charity must be used only for promoting the Objects and no dividends shall be paid to the Member’.

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SUPPORT US Corporate support and sponsorship Our vision is to be the world’s leading museum of urban transport and The Museum’s programmes and our strong ties with the transport a place for everyone to come to understand the story of London’s industry and TfL offer exceptional opportunities for corporate journey. To do this we need your support to help us preserve and secure supporters. the collection, to inspire audiences, and to help educate young people across London. To find out more Email: [email protected] Leyland buses appeal Tel: +44 (0) 20 7565 7451 Help us safeguard the future of three rare motorbus survivors from a bygone age: the 1908 London Central X2 type, the 1914 LNWR Torpedo Visit us charabanc and the 1924 LB5 Chocolate Express. The Museum at Covent Garden is open seven days a week and has a programme of exciting events all year round. Donate online at www.ltmuseum.co.uk/support-us For more details, go to www.ltmuseum.co.uk/visit Patrons Circle The Patrons Circle is a group of like-minded people who care about the Keep in touch Museum’s heritage and educational work. Patrons enjoy exclusive tours, Sign up to our newsletter for the latest information on Museum events locomotive footplate and cab rides, and other special events not usually and offers at www.ltmuseum.co.uk/enews. You can also find us on available to the public. Facebook and Twitter.

To become a Patron, visit our website www.ltmuseum.co.uk/support-us Email: [email protected] Telephone: +44 (0)20 7565 7451

Volunteer Volunteers make a huge contribution to London Transport Museum, greeting visitors, leading tours, helping with conservation projects and much more.

To get involved, visit www.ltmuseum.co.uk/support-us/get- involved/volunteering Email: [email protected] Tel: +44 (0)20 7565 7264

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London Transport Museum Covent Garden Piazza London WC2E 7BB Tel +44 (0)20 7379 6344

London Transport Museum Ltd Charity number 1123122 Company number 6495761 Registered address: Windsor House 42–50 Victoria Street London SW1H 0TL

London Transport Museum (Trading) Ltd Company number 6527755 Registered address: Windsor House 42–50 Victoria Street London SW1H 0TL

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