**Charity Number: 1003689**
# **THE HOVERCRAFT MUSEUM TRUST**
**Trustees’ Annual Report and Financial Statements**
**For the period**
**1[st] July 2019 – 30[th] June 2020**
**The Hovercraft Museum Trust**
|**Contents**||
|---|---|
||**Page**|
|Legal and administrative information|**1**|
|Trustees' annual report|**2 - 3**|
|Structure, governance & management||
|Objectives & activities||
|Achievements & performance||
|Financial review||
|Plans for future periods||
|Principal risks & uncertainties||
|Statement of Trustees’ responsibilities|**4**|
|Statement of financial activities|**5**|
|Balance Sheet|**6**|
|Notes to the financial statements|**7 - 8**|
|Report of the Independent Examiner|**9**|
**The Hovercraft Museum Trust**
## **Legal and administrative information**
|**Charity number**|1003689|
|---|---|
|**Principle address**|Building 40|
||Seaplane Square|
||Daedalus Site|
||Hampshire|
||PO13 9NS|
|**Trustees**|Louise Jenkins (Chair)|
||Alexander Wheeler|
||Douglas Coulson|
||Benjamin Avery|
|**Independent examiner**|Kerry Lawrance FCA|
|**Accountants**|Compass Accountants Ltd|
||Venture House|
||The Tanneries|
||East Street|
||Titchfield|
||Hampshire|
||PO14 4AR|
|**Bankers**|Lloyds Bank Plc|
||20 High Street|
||Gosport|
||Hampshire|
||CAF Bank Ltd|
||25 Kings Hill Avenue|
||Kings Hill|
||Kent|
||HSBC Bank Plc|
||26 High Street|
||Gosport|
||Hampshire|
**Page 1**
**The Hovercraft Museum Trust**
## **Report of the Trustees for the year ended 30[th] June 2020**
The Trustees present their report and the financial statements for the year ended 30[th] June 2020. The Trustees who served during the year and up to the date of this report are set out on page 1. The Trustees have had due regard to the guidance issued by the Charity Commission on Public Benefit.
## **Structure, governance and management**
The Hovercraft Museum Trust was formed under a Trust deed dated 16[th] November 1988, amended by supplemental deed dated 27[th] April 1991, and is governed by the Board of Trustees.
Trustees are elected by a unanimous vote.
## **Objectives and activities**
The objects of the Trust are the advancement of education in the hovercraft principle, the preservation of hovercraft of historic importance, and the provision of a centre of excellence to those interested in all aspects of hovercraft.
The Trustees have had regard to the Charity Commission’s guidance on public benefit. The aim of the Trustees is, and the main activities undertaken to further the charity’s purpose for the public benefit are, to preserve and restore craft of historic interest, to establish a recognised and registered museum.
The Trust is permitted by its constitution to engage in any lawful activity as shall further its charitable objects. The Trust may invest money not immediately required for its objects in such investments, securities, or property as it thinks fit.
## **Achievements and performance**
A key acquisition was made in August 2019 when a AP1-88 type hovercraft, ‘Falcon’, was brought into the collection. Its significance is key due to the number of innovations it brought to commercial hovercraft operations, the type’s operation on The Solent for many years, and the manufacturer being based in Southampton. The hovercraft was kindly donated by Hoverline Ltd alongside two other craft and a number of spare parts. Due to financial and space constraints the trust was only able to accommodate the one craft and ‘Falcon’ being in the best condition was brought into the collection. One craft was in a poor condition and unable to be saved so was disposed of and the other was sold to Griffon Hoverwork alongside surplus parts to fund the transport costs to the museum. Throughout the rest of the financial year Falcon has been maintained and prepared for opening the inside of the craft to the public. There is still work required to seal a roof leak, but once this maintenance has been completed the trust hopes to welcome the public inside where the interior will be setup as a mini theatre.
Key restoration projects are continuing such as the restoration of “The Princess Anne”, the preparation for exhibition for “Falcon”, and the education zone which funding was obtained for last financial year. Sadly, all these projects have been halted as of March 2020 and will resume when COVID related restrictions allow.
In this financial period The Trust has continued organisational reform as part of The Arts Council England’s accreditation framework.
The Trust was significantly impacted by the COVID crisis due to the national lockdown imposed from 23[rd] March 2020. The Museum was unable to open its doors to the public resulting in a significant portion of peak summer income being lost. It was also unable to conduct restoration and other tasks except for urgent repairs and maintenance. For this reason, the progress of some projects was halted included the “Education Zone” on “The Princess Anne” hovercraft. This has resulted in the deterioration of several exhibits due to the lack of access and funds to continue restoration and conduct preventative repairs. Towards the end of the financial year, access has been progressively improved for urgent repairs, but it is evident that significant work will be needed to catch up with progress previously made in the next financial year.
Special events such as the “Mini” car event, Heritage Open Days, New Year’s Day opening and a “Light up and power on” event for “The Princess Anne” hovercraft have been well received this year and are worth continuing into the future. The Mini event more importantly was a combined celebration and coming together of two British icons celebrating their 60th year in 2019. Group bookings have been popular, and the Trust is exploring working more with tour providers to expand bookings. Visiting groups have included engineering enthusiasts, U3A groups, classic car clubs, youth groups. Venue hire has continued, such as for ghost hunting events and various tv filming. Another successful theatre event was held on “The Princess Anne” showing a production of “The 39 Steps”.
**Page 2**
## **The Hovercraft Museum Trust**
The Museum saw 4388 visitors during this period. Despite being significantly impacted by the COVID crisis these numbers are close to the previous financial year indicating that without being closed for three of the busiest months visitor numbers would have seen a year-on-year increase. Sadly, significant funds and effort were put into advertising for the summer 2020 season that were unrecoverable. Without this stumbling block we believe that this would have had a positive further increase in visitor numbers as it is recognised by the trust that we are underdeveloped in terms of awareness for local residents and the tourism sector.
The Trust has continued to increase its volunteer base by bringing on new volunteers. It has also started the recruitment of volunteers for key executive roles to plug highlighted gaps in The Trust’s governance such as people with knowledge of fundraising, legal matters, and financial knowledge. These areas were identified as part of the work being completed during the accreditation process. The trust has also been able to highlight volunteers with untapped skills to head up various functions in the Trust to free up time from the Trustees to allow for better separated Executive and Management tiers.
The trust has continued its partnership with Hovertravel Ltd which is still proving highly successful for both parties. Hovercraft trips clearly result in an increase of visitor footfall in the local area and positive PR for both organisations. It is envisioned that once COVID restrictions allow, people will be more minded to take part in local events and this partnership is deemed key to taking advantage of this potential trend to drive Hovercraft awareness and museum footfall.
During this financial year the trust has continued to build upon its key links at The Diving Museum and Historical Diving Society and the partnership has proved very valuable – in particular to the accreditation process. Future event planning is underway with a view to harnessing the local area and businesses to boost tourism to Lee on the Solent.
The Trust has been exploring links with The Provincial Bus Society about future partnerships and events. Sadly, due to the COVID crisis, some of these plans have been postponed but it is envisioned that we can work together with the Diving Museum and Hovertravel to create new and exciting events at The Hovercraft Museum.
Heritage Open Days in 2019 proved a great success, along similar lines to the previous few years where this scheme has operated. This year we saw 1031 visitors for our special Sunday opening which was free to everyone. This scheme allows the trust to raise its local profile and attract different visitor groups.
## **Financial Review**
The Trustees are satisfied with the financial position of the Trust and that the assets are sufficient to meet its current commitments.
The Trust’s policy is to hold sufficient reserves to enable it to withstand a financial setback or take advantage of an opportunity.
Owing to the COVID-19 pandemic these funds were partially used due to the financial setback caused by being unable to open to the public. During this time worst-case planning was reviewed to prepare for closing the trust should the COVID related issues continue for a longer period. Thankfully due to this financial buffer the trust was able to continue unaided until it became eligible for government grants that would allow it to cover some of the financial losses incurred and recoup reserve funds. The trust has ended the financial year with a surplus that should help cover the losses of further COVID restrictions that may happen. It is hoped that restrictions will be lifted to allow for opening for the remainder of the peak summer season and plans are underway should this be possible.
As at 30[th] June 2020, the Trust’s free reserves (net current assets attributed to unrestricted funds) were £41,381 (2019: £15,219).
COVID related uncertainty has hampered normal operations and made financial planning difficult. For this reason, The Trust has decreased the time between financial planning cycles and has chosen to improve reserves where possible instead of conducting non-essential works. These measures will continue until more certainty is gained in the coming months.
## **Plans for future periods**
Owing to the COVID crisis, future plans are being scaled back in anticipation of further constraints being imposed on the organisation. Non-essential works will be avoided where safety or unrestricted funds are to a detriment. Preventative restoration and maintenance will continue where viable.
**Page 3**
## **The Hovercraft Museum Trust**
Despite the conservative future period plans, it has been highlighted as key to continue accreditation works and to incorporate the organisation to satisfy the requirements of accreditation and demonstrate good governance. This will help in recruiting new personnel due to the reduced liability of trustees. By completing these tasks The Trust will be improving the organisation’s medium and long term prospects.
With the security of tenancy still being a barrier to future progress discussions will continue with the landlord and key stakeholders to come to a satisfactory resolution. The aforementioned actions will be key to demonstrating the Trust’s commitment and competence.
The Trust will be working towards accreditation with the support from South East Museums. The Trust will make use of any relevant professional advice and consultancy, funding schemes, and museum advisors to further The Trust’s accreditation application. This remains a key objective for the forthcoming period and will help demonstrate that The Trust is continuing in its progression to operate as a well-run accredited museum.
The Trust will continue to increase its national profile and improve local advertising and awareness.
A continued effort to build relationships in the local community will be undertaken. These relationships will help in saving costs, driving visitor growth and increasing awareness of The Trust.
## **Risk Management Policy**
The Committee has reviewed the major risks to which it considers The Museum is exposed and has ensured that adequate systems have been established to mitigate those risks.
There are two key risks to the organisation currently. Namely the COVID crisis and the security of tenure. As described in the financial review key financial and planning decisions are being made to address and mitigate these risks as much as is possible. As both risks could result in closing of the trust or relocation should the worst happen, planning is being worked on to make these possibilities go as smoothly as possible to preserve as much of the museum and collection as possible in this event.
There have been constructive discussions around The Trust’s position at Daedalus, with the landlords, key stakeholders and Gosport Council. It is hoped that this progress can continue in the next few financial years to a positive outcome for the trust.
……………………………………………………………..
L Jenkins Chair On behalf of the Board
Date:
**Page 4**
**The Hovercraft Museum Trust**
## **Statement of Trustees’ responsibilities for the year ended 30[th] June 2020**
The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply the consistently;
- Observe the methods and principles in the Charities SORP 2019 (FRS102);
- 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;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
……………………………………………………………..
L Jenkins Chair On behalf of the Board
Date:
**Page 5**
**The Hovercraft Museum Trust**
## **Statement of Financial Activities**
## **For the period ended 30[th] June 2020**
|**_30th June 2020_**
**_Unrestricted_**
**_funds_**
**_Restricted_**
**_funds_**
**_£_**
**_£_**
**_Income_**
Admissions and trips
15,526
300
Storage fees
750
-
Sale of goods
8,036
3
Friends’ subscriptions
659
-
Library search, file and TV fees
621
-
Grants and donations
38,049
3,405
Bank interest
1
-
Sale of hovercraft spare parts
10,215
640
Total Income
73,857
4,348
**_Expenditure_**
Rent, insurance and utilities
20,284
-
Hire of machinery and relocation
costs
4,677
-
Open day expenses
1,007
-
Travelling expenses
1,073
-
Repairs and renewals
5,126
1,520
Purchase of goods
3,749
-
Archiving and administration
24
-
Telephone and internet fees
797
-
Postage, stationery and newsletters
327
-
IT costs
3,074
-
Staff welfare
1,881
-
Subscriptions and other refunds
40
-
Accountancy and bookkeeping
1,860
-
Legal and professional fees
1,000
-
Sundries
2,365
-
Bank charges
189
-
Depreciation
205
-
Total Expenditure
47,678
1,520
**Net income/(expenditure)**
26,179
2,828
**Reconciliation of funds:**
Funds brought forward
16,026
523
**Total funds carried forward**
42,205
3,351|**_30th June 2019_**
**_Total_**
**_funds_**
**_Unrestricted_**
**_funds_**
**_Restricted_**
**_funds_**
**_£_**
**_£_**
**_£_**
15,826
23,673
85
750
2,000
-
8,039
11,755
-
659
1,125
-
621
843
-
41,454
8,390
248
1
1
-
10,855
325
974
78,205
48,112
1,307
20,284
22,393
-
4,677
1,554
-
1,007
1,515
-
1,073
822
-
6,646
8,100
784
3,749
3,580
-
24
58
-
797
955
-
327
452
-
3,074
1,173
-
1,881
841
-
40
38
-
1,860
1,800
-
1,000
2,894
-
2,365
2,321
-
189
337
-
205
202
-
49,198
49,035
784
29,007
(923)
523
16,549
16,949
-
45,556
16,026
523|**_Total_**
**_funds_**
**_£_**
23,758
2,000
11,755
1,125
843
8,638
1
1,299|
|---|---|---|
|||49,419
22,393
1,554
1,515
822
8,884
3,580
58
955
452
1,173
841
38
1,800
2,894
2,321
337
202|
|||49,819|
|||(400)|
|||16,949|
|||16,549|
**Page 6**
**The Hovercraft Museum Trust**
## **Balance Sheet**
## **As at 30[th] June 2020**
|**Fixed Assets**
Fixed Assets – Fixtures and Fittings
**Current Assets**
Debtors
Stock
Bank and Cash
**Current Liabilities**
Creditors
**Funds**
Unrestricted funds
Restricted funds
**Total funds**|**_30th June 2020_**
**_£_**
**_£_**
824
824
147
1,976
49,959
52,082
7,350
7,350
45,556
42,205
3,351
45,556|**_30th June 2019_**
**_£_**
**_£_**
807
807
2,285
1,976
17,630
21,891
6,149
15,742
16,549
16,026
523
16,549|**_30th June 2019_**
**_£_**
**_£_**
807
807
2,285
1,976
17,630
21,891
6,149
15,742
16,549
16,026
523
16,549|
|---|---|---|---|
||147
1,976
49,959|2,285
1,976
17,630||
||7,350|6,149||
|||||
||||16,549|
||||16,026
523|
||||16,549|
The financial statements were approved by the board and signed on its behalf by
Approved by the Trustees:
………………………………… L Jenkins On behalf of the Trustees
Date:
**Page 7**
**The Hovercraft Museum Trust**
## **Notes to the financial statements For the year ended 30[th] June 2020**
## **1. Accounting policies**
## **1.1 Charity information**
The Hovercraft Museum Trust is a registered charity, number 1003689. The address is shown in the information page.
The Hovercraft Museum Trust meets the definition of a public benefit entity under section 34 of FRS102. Assets and liabilities are initially recognised at historical cost or transactional value, unless otherwise stated in the relevant accounting policy.
## **1.2 Basis of preparation**
The financial statements have been prepared under historical cost convention and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective October 2019) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities Act 2011 and UK Generally Accepted Practice.
## **1.3 Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.
## **1.4 Restricted funds**
Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of overheads and support costs.
Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.
## **1.5 Tangible Fixed Assets and Depreciation**
Tangible fixed assets are capitalised at cost and depreciated over their estimated useful economic life on a reducing balance basis as follows:
Plant and Machinery 20%
## **1.6 Going concern**
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
## **2. Employees**
The Hovercraft Museum Trust does not directly employ and staff.
**Page 8**
**The Hovercraft Museum Trust**
**Notes to the financial statements For the year ended 30[th] June 2020**
## **3. Tangible Fixed Assets**
|**Cost or valuation**
At 1 July 2019
Additions
At 30 June 2020
**Depreciation**
At 1 July 2019
Charge for the year
At 30 June 2020
**Net book values**
At 30 June 2020
At 30 June 2019
**Restricted funds**
SRN4 Hovercraft Fund
Learning Zone
Security Improvements
SRN4 Hovercraft Fund
Learning Zone
Security Improvements|**1 July 2019**
**£**
523
-
-
523
**1 July 2018**
**£**
-
-
-
-|**Incoming**
**£**
1,756
2,000
592
4,348
**Incoming**
**£**
1,307
-
-
1,307|**Outgoing**
**£**
1,520
-
-
1,520
**Outgoing**
**£**
784
-
-
784|**Transfers**
**£**
-
-
-
-
**Transfers**
**£**
-
-
-
-|**Plant &**
**Machinery**
**Total**
**£**
**£**
1,009
1,009
222
222
1,231
1,231
202
202
205
205
407
407
824
824
807
807
**Revaluation**
**30 June 2020**
**£**
**£**
-
759
-
2,000
-
592
-
3,351
**Revaluation**
**30 June 2019**
**£**
**£**
-
523
-
-
-
-
-
523|
|---|---|---|---|---|---|
## **4. Restricted funds**
## SRN4 Hovercraft Fund
Donations have been made towards a project to restore SRN4 Hovercraft ‘The Princess Anne’.
## Learning Zone
A fund for learning
## Security Improvements
A fund for security improvements
**Page 9**
**The Hovercraft Museum Trust**
## **Notes to the financial statements For the year ended 30[th] June 2020**
## **5. Analysis of net assets between funds**
|**Tangible**
**Net Current**
**Fixed Assets**
**Assets**
**£**
**£**
Unrestricted funds
824
41,381
Restricted funds
-
3,351
**Total**
824
44,732
**Tangible**
**Net Current**
**Fixed Assets**
**Assets**
**£**
**£**
Unrestricted funds
807
15,219
Restricted funds
-
523
**Total**
807
15,742|**2020**
**Total**
**£**
42,205
3,351|
|---|---|
||45,556
**2019**
**Total**
**£**
16,026
523|
||16,549|
## **6. Related party transactions**
There are no related party transactions
**Page 10**
**The Hovercraft Museum Trust**
## **INDEPENDENT EXAMINER’S REPORTTO THE TRUSTEES OF THE HOVERCRAFT MUSEUM TRUST**
I report on the accounts of the charity for the period ended 30[th] June 2020, which are set out on pages 1 to 10.
## **Respective responsibilities of trustees and examiner**
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
- examine the accounts under section 145 of the 2011 Act;
- to follow the procedures laid down in the General Directions given by the Charity Commissioners under section 145(5)(b) of the 2011 Act; and
- to state whether particular matters have come to my attention.
## **Basis of independent examiner’s report**
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement**
In connection with my examination, no matter has come to my attention:
1. Which gives me reasonable cause to believe that in any material respect the requirements
- to keep accounting records in accordance with section 130 of the 2011 Act; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
have not been met; or
2. to which, in my opinion attention should be drawn in order to enable a proper understanding of the accounts to be reached.
- ….……………………………..
Kerry Lawrance FCA
Date:
Compass Accountants Limited Venture House, The Tanneries East Street, Titchfield, Hants. PO14 4AR
**Page 11**