Black Country Living Museum loses £600,000 as visitor numbers fall

A fall in ticket sales and spending on site cost the museum £285,202 last year while a drop in donations and the value of 'assets' added to its problems.

Bosses at the site in Tipton Road, Dudley, blamed the poor weather last year as they revealed the number of people through the doors – 249,574 – was 'well below' their target of 300,000 and down on 2011's 298,965.

Details revealed in the museum's annual accounts up to the end of 2012 show attendance fell 16 per cent compared with 2011.

It comes after the museum shed 26 of its 239 staff – including four compulsory redundancies – and decided to close twice a week between November and Easter to save £250,000 a year.

In a report accompanying the accounts John Hughes, chairman of the Black Country Living Museum Trust, said: "Trading conditions were difficult in 2012.

"The markedly reduced visitor attendance and lower levels of spend on site meant that, in common with many chargeable outdoor attractions, the museum sustained a trading loss of £285,202.

"After reflecting depreciation charges, restricted donations and investments, restructuring costs and the pension adjustment there was a net adverse movement in funds before the actuarial loss on the pension fund, of £599,745."

He said that the boost in visitors the museum had seen in 2011 – the year of the 'staycation' when many people decided not to go away on holiday because of the economy – had 'ebbed away'.

But the accounts showed the museum had a better year in terms of income from filming rights.

It made £26,385 last year compared with £3,640 the year before. Hollywood stars Jacqueline Bisset, Anthony Head and John Goodman filmed a period drama, Dancing on the Edge, at the museum.

Andrew Lovett, chief executive of the museum, said there were no plans for any more job losses but did not rule them out.

"We don't expect the headcount to change this year", he said. "However, as a 100 per cent self-funded charity, we have to be very aware of levels of attendance and earned income. "The trading result for 2012 was a loss of £285,000 due to a fall in visitor attendance, due to a combination of fragile economic conditions affecting consumer confidence and the very poor weather last year.

"So far as future developments are concerned we are currently consulting widely to inform the public of our future plans and no decisions have been made yet about the scale or nature of future developments over the next five to 10 years."

Last year the museum was stripped of a £70,000 a year grant from Dudley Council as the authority was forced to make its own multi-million pound savings due to government funding cuts.

The museum was recently awarded £157,000 in arts funding as part of a government backed Arts Council grant to develop new projects.

Investment plans will be drawn up with the Association of Independent Museums body to find ways of becoming more self-sufficient. The 26-acre site boasts one of the largest open-air museums in the UK. Its village spans 170 years of history from 1770 to the 1940s.

The museum recently advertised for trustees in order to expand its board and prepare to replace any who want to retire over the next 12 to 18 months.

It did so via The Guardian newspaper, business people in the West Midlands, Arts Council England, the Black Country Chamber of Commerce and regional MPs.