Sound Base Studios Trust is an organisation that provides innovative vocational and educational opportunities in music and multi-media for disaffected young people in Hertfordshire.

Futurebuilders was able to offer the group an investment totaling £141,717 to support the refurbishment of a leased building. This funding enabled the organisation to build on its existing service provision for Learning and Skills Council and Local Education Authority purchasers. The investment includes a loan, capital and revenue grants and practical help.

Sound Base Studios Trust was established in 1996 to use music and multi-media to provide education, training and support for young people who have disengaged with formal education. It is a medium sized organisation with an annual income of £236,495 and net assets of £33,404. Sound Base currently employs five full time and two part time members of staff.
Sound Base applied for a Futurebuilders investment to expand and improve delivery, refurbishing existing premises. This will allow Sound Base to increase the number of young people it works with and improve provision for all users by supplying more and bigger training rooms, specialist music and multi-media rooms and accessibility for people with disabilities.

Sound Base has been successfully delivering a Learning Skills Council E2E (Entry to Employment) contract for 16 - 18 for 2 years and services for 11-16 year olds via a Learning and Skills Council Co-financing. As a registered specialist provider of music and multi-media education Sound Base is unique in its area and attracts learners from all over the county.
The organisation will generate income through expanded delivery of Hertfordshire LSC contracts. Sound Base has also begun the planning process towards winning Local Education Authority contracts to deliver education for children with educational and behavior difficulties within Schools and Youth Offending Schemes.

Sound Base chose to apply to Futurebuilders because the project manager and trustees recognised that if they wanted to meet client and purchaser demand to increase service delivery they would need more space and improved facilities. As Futurebuilders will support this type of capital cost, they decided to apply.
In addition, Sound Base is interested in increasing its sustainability and moving towards full cost recovery in its contracts with public agencies. Capacity building support from Futurebuilders will help this process.

Futurebuilders has offered £141,717 in all comprising a loan of £69,281, capital grant of £38,939, revenue grant of £15,497 and capacity building to the value of £18,000.
The loan and capital grant will pay for the refurbishment and equipping of Sound Base's premises. During the assessment process the need for additional financial support for the organisation emerged, and so the revenue was added to pay a finance officer’s salary for one year. The post should be sustainable as the new contracts generated should include a proportion of this salary.

Sound Base expects to increase its reserves to cover six months’ operating costs and to have repaid the loan by Year 5. From this solid financial base the organisation will able to use subsequent surpluses for new developments.
Sound Base has sound financial and management procedures but needs to develop management and financial capacity in line with its planned expansion. Capacity building support will help the organisation develop its financial systems and complete a formal risk assessment, in addition to calculating and implementing full cost recovery and developing its marketing strategy.

Futurebuilders hopes that the investment will show how a relatively small capital investment, teamed with revenue funding and capacity building, can enable smaller voluntary sector organisations to grow and increase service delivery on their own terms.

Case study provided by Futurebuilders England Ltd