The chair of V&A Dundee said a decision to “go large” in its fifth anniversary year paid dividends with an improved financial performance.
The museum invested heavily to curate its first major exhibition in Tartan, which Tim Allan admits was a risk.
But new accounts for Design Dundee Limited show the gamble paid off with a jump in visitor numbers and revenue.
V&A Dundee saw 358,000 visitors in the financial year to the end of March 2024, an increase of 23%.
More than 75,000 people attended the Tartan exhibition with free exhibitions including the Dundee Tapestry and Radio 1’s Big Weekend also proving popular.
How does V&A Dundee make its money?
The accounts show turnover jumped to £7.8 million, from £6.8m in the 2022-23 financial year.
The majority of the V&A’s funding is from grant income, donations and ‘in kind’ support. Totalling just over £6m, this includes £3m from the Scottish Government.
Last year the People’s Postcode Lottery increased its annual grant from £600,000 to £700,000.
Income from exhibition fees rose to £513,000 from £119,000 the previous year.
Trading income – which includes sales in its shop and Tatha restaurant – increased from £651,000 to £926,000.
However, V&A Dundee costs also increased from £7.8m to £8m. This led to a loss of £144,500, a marked improvement from a deficit of almost £1m in 2022-23.
Mr Allan said: “In the financial year, Covid was no longer an operational issue, but the cost-of-living crisis and its impact on visitors and staff alike became more pressing.
“We are managing a complex institution appealing to the public during a period of nearly unprecedented disruptions since we opened.
“We invested for lots of different reasons in our fifth anniversary year. The deficit is relatively small and manageable.
“The trading income has improved because simply more customers come through the doors.
“We’re projecting a break-even in 2024-25 but it’s not a perfect science.”
Scottish Government support
Helping V&A Dundee’s finances is an increase in its grant from the Scottish Government. Last year this was £3m but it will increase to £3.8m in 2024-25 and 2025-26.
Mr Allan said this demonstrates the museum is delivering on its aims.
He said: “The Scottish Government support is brilliant.
“It demonstrates we are delivering what it wants for Scotland, which is economic, cultural, and reputational.
“The Scottish Government gets a great return on that money.”
Change in V&A Dundee strategy
Mr Allan said the museum’s move from two large exhibitions a year to one had made it more cost-effective.
This year has seen an exhibition on kimonos. A major exhibition called Garden Futures will start in May.
But it has combined fewer exhibitions with an admission fee with more free exhibitions, primarily with local content.
“The people of Dundee are core to the museum’s success and they want to see things which reflects their life,” he adds.
“Exhibitions like Dundee Tapestry have been very popular.
“Of course, people love to see world-class exhibitions.
“We are upbeat about this current financial year, which will probably be around 330,000 visitors.
“Kimono has exceeded our expectations but it wasn’t going to be on the same level as Tartan.
“And Garden Futures, which starts in May, could be absolutely massive.
“I think my overall view is that the museum has started to settle down now to a rhythm.
“Hopefully we can avoid any more major macro issues and make more investment in the interior of the museum to keep it fresh.
“I think commercially, we’re learning all the time. We’re listening to feedback and learning what people want.”
Conversation