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2023-12-31-accounts

(A Company Limited by Guarantee) Company Number: 2848095 Charity Number: 1026357

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

The Society for Nautical Research Contents Page

Page
Legal and Administrative information 1
Report of the Council 2 - 9
Independent Examiner's Report 10
Statement of Financial Activities 11
Balance Sheet 12
Notes to the Financial Statements 13 - 20

The Society for Nautical Research Legal and Administrative Information

President

Jonathan Coad

Chairman

Dr J D Davies

Hon. Secretary and Company Secretary

Cdr M A Barton

Hon. Treasurer

Dr P V Nash

Editor

Dr M Bellamy

Vice Presidents

Cdr J M Bingeman Dr A Coats Dr C Holt Dr Cathryn Pearce Lt Cdr F L Phillips Mr A M Roach Dr S Rose

Membership Secretary

Mrs H Garvey

Independent Examiner

Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP

Bankers

Barclays Bank plc 8/9 Hanover Square London W1A 4ZW

Investment Managers

Adam & Company 88 Wood Street London EC2V 7QR

Registered Office

9 Appold Street London EC2A 2AP

Page 1

The Society for Nautical Research Trustees' Report For the year ended 31 December 2023

Status and Administration

The Society is a charitable company limited by guarantee (registration number: 2848095) registered with the Charity Commission number 1026357. The Council sets the policies of the Society and these are administered by the Chairman, Honorary Secretary and Honorary Treasurer. The governing document of the charity is the memorandum and articles of association which were updated and approved at the 2021 Annual General Meeting. There are no restrictions imposed by the governing document except the objects of the charity as stated below.

Objects

The principal activity of the company includes the promotion of research into nautical antiquities and matters relating to the history of seafaring and ship building, languages and customs of the sea and to publish the results of such research and otherwise advance public education in such subjects. In particular this includes the publication of The Mariner's Mirror quarterly. In addition there are two restricted funds, both of which are subsidiary charities, the Save the Victory Fund and the Macpherson Collection Endowment Fund. The Save the Victory Fund has been formed for the restoration and presentation to the public of Nelson's Flag Ship HMS Victory and the Macpherson Collection Endowment Fund acquires works of art for the National Maritime Museum.

Trustees

The Officers of the Society and the Council members are the Charity Trustees of the Society and are listed below:

Dr J D Davies (Chairman of the Society) Mr S Fisher (elected 2023, review 2027)
Dr P V Nash (Honorary Treasurer) Dr M Heaslip (elected 2023, review 2027)
Cdr M A Barton (Honorary Secretary,
resigned as Trustee 10 June 2023)		 Prof. C Jowitt (elected 2023, review 2027)
N Ball (elected 2023, review 2027) K Jamieson (elected 2021, review 2025)
C. Brandon (elected 2019, ends 2023) Capt P King (elected 2020 review 2024)
H Cunliffe (elected 2023, review 2027) J Michell (elected 2021, review 2025)
D. Nudd (elected 2022, review 2026) Dr K Parker (elected 2021, review 2025)
Lt Cdr A Telfer (elected 2022, review 2026) Dr C Scheybeler (elected 2021, review 2025)
A Roach (resigned 10 June 2023) P M Bugden (resigned 10 June 2023)
Dr J Davey (resigned 10 June 2023) N Hewitt (resigned 10 June 2023)
Dr C P Holt (resigned 10 June 2023)

Trustee appointment, induction and training

The Articles of Association of the Society specify the election procedure for the Officers of the Society and the Council. In accordance with their obligations Council in each year nominates a list of willing candidates for election by the members of the Society at each properly constituted annual general meeting. These may be for the positions of Vice President or for Councillors as well as for the President and other Officers of the society. The Officers are obliged to submit themselves for re-election each year. The Councillors whose four year term of office has expired may stand for re-election. The final say as to which persons serve is made by the membership of the Society who are also asked to nominate candidates for election. All the Vice Presidents, Councillors and Officers are given a copy of the Memorandum of Understanding and the Articles of Association of the Society together with a copy of the Society’s Guide to the Conduct of Business. This includes a reminder that Vice Presidents have a working role and that Councillors and Officers are both Directors and Trustees of the Society and this reminder is reinforced in Council meetings from time to time by the Officers. The Directors and Trustees of the Society are helped to discharge their responsibilities through guidance in Council by the Officers, by receiving necessary papers recording the advice of the Society’s financial advisers and by receiving, at least once a year, a Risk Analysis Review. The Council’s particular contribution is a rigorous annual scrutiny of budget proposals and a quarterly review of progress. In addition, the Finance and General Purposes Committee receive an oral and written briefing every six months by the Society’s financial advisors. The frequency has increased during the difficult market conditions which have prevailed in recent years.

Page 2

The Society for Nautical Research Trustees' Report For the year ended 31 December 2023

Key Management Personnel

The key management personnel of the society are the Officers and the Council members. The Officers are reelected every year by the Society at the AGM, and their efforts during the year speak for themselves. Council members have been elected on the basis of the wisdom and experience that they can bring to the Society. The vice presidents bring a wealth of experience across many fields to Council meetings, and are always available to give advice in their particular field of expertise if it is asked for. The Editor of the Mariner's Mirror, Dr Bellamy is remunerated at the rate of £2,000 per edition. The Editor of Topmasts, N Blanchford, is remunerated at the rate of £1,000 per edition.

The Aims of the Society

To promote research into nautical antiquities, into matters relating to sea-faring and shipbuilding in all ages and among all nations, into the language and customs of the sea and into other subjects of nautical interest, to publish the useful results of such research and otherwise advance public education in such subjects (Memo of Association, updated 2021).

Objectives, Strategies and Achievements

This was achieved as usual with electronic
copies of The Mariner’s Mirror targeted at
institutional users by Taylor & Francis and
with hard copies for personal members.
Achievement
Topmasts is available electronically
through the SNR website.
Manage the website to reflect
the Society and its
achievements.		 The website reflects the
strengths and achievements of
the Society and uses social
media to reach new members.		 Membership figures continue to increase,
with members joining through activities
relating to the Forum and Topmasts.
Advance public education in
Maritime History.		 Provide financial support from
the budget set from the Tomlin
Fund for research conferences
and programmes of work. To
award the Anderson, Victory
and Centenary Medals as
appropriate.		 Six research grants (totalling £3,000) were
made to individuals and five grants were
made to support conferences and seminars
around the UK (totalling £2,500) The
Anderson Medal for best book in Maritime
History (2022) was awarded to Roger
Knight for his book Convoys. The Victory
Medal was awarded to Henry Cleary OBE
for his dedication to the preservation and
restoration of VIC 56.

Page 3

The Society for Nautical Research Trustees' Report For the year ended 31 December 2023

Overview

This year is the eleventh to reflect the publishing arrangements between ourselves and Taylor & Francis for The Mariner’s Mirror, an INT1 category international publication in the European List of Humanities with high visibility and influence among researchers in the various research domains in different countries, regularly cited all over the world. Whilst still retaining editorial control of The Mariner’s Mirror and meeting the costs of editing and typesetting, the Society is no longer responsible for the printing and distribution of the journal which continues to be undertaken by Taylor & Francis. Council believes this partnership will continue to secure the Society’s standing in the electronic age. The Mariner’s Mirror is produced in electronic form and targeted by Taylor & Francis at institutional bodies who no longer want to receive publications in paper format. This has not only significantly increased The Mariner’s Mirror's exposure to the worldwide institutional market but it has also created online worldwide demand for full text downloads. The Mariner’s Mirror continues to be available in the traditional form to personal members of the Society.

This is the ninth year in which the SNR website managed by Burlington Partnership has continued to provide a dynamic and interactive platform covering the activities of the society and its members available to both existing and potential new members worldwide. It has now become the predominant source for securing new members. In addition, our electronic newsletter TOPMASTS remains extremely popular with our membership and continues to expand and provide an invaluable - if more informal - source of information and articles covering a wide spectrum of maritime interests. The Society has also continued the very successful programme of podcasts through Dr Sam Willis which we believe is both beneficial to anyone interested in maritime history as well as to the profile and reputation of the SNR.

Review of Activities and Financial Results

The Society has recorded a surplus for the year ended 31 December 2023 amounting to £449,644 taking into account £ 347,326 which represented net gains on investments (2022: net loss £612,993). Investments for both unrestricted and restricted funds increased in market value by just over 11.99% from £4,768,736 to £5,340,730. As far as the balance sheet is concerned this increased the net assets by nearly 8.77% from £5,127,043 to £5,576,687.

Overall, this year’s operational activities however have been encouraging as we have returned to normal business post the hiatus of the COVID 19. We have remained active in pursuing our publishing endeavours, both print and on the website. Both Mariner’s Mirror and TOPMAST continue to be very well received and our website has been particularly busy, enhanced by the podcast programme along with several YouTube videos. Podcast episodes have now been downloaded over 500,000 times. The podcast was supported by Lloyd’s Register Foundation, although their funding has changed such that it will reduce to fortnightly in 2024.

Our operating income and expenditure otherwise remain in harmony helped by significantly improved investment income, podcast income and donations. Moreover, subscriptions have increased again which is most encouraging, as is the fact that members resident overseas have also increased to 33% from 28% of total subscriptions. Our contract with Taylor & Francis has enabled a further modest improvement in royalties in lieu of subscription income traditionally derived from our institutional membership subscriptions. Overall administration costs for the year have remained stable and within budget

The Society has determined that given the uncertainty of the markets and general economic outlook which might affect the level of surplus year-end this was not the time to transfer £5,000 to the contingency fund held with our investment advisers Adam & Co. We try to achieve this each year but only if the surplus warrants it.

Page 4

The Society for Nautical Research Trustees' Report For the year ended 31 December 2023

The following comments for each fund provide some background behind the overall results.

The Society’s Tomlin Fund provided £500 to the Naval Dockyards conference in Portsmouth, as well as £500 for the annual New Researchers conference. A further £500 was given to support Maritime History North as well as £250 to the BCMH for the Kings College maritime seminars.

The Save the Victory Fund (STVF) was not called upon for funds this year, so it has continued to strengthen its balance sheet and continue to build up a very healthy liquid reserve for future demands.

The Macpherson Collection Endowment Fund was again not called upon to provide funds to the National Maritime Museum this year.

The Anderson Fund provided research grants amounting to just over £3,000 to the following recipients: P Huddie, E Smith, P D Harvey, G Kerr, L Wojahn, C O’Connell, J Boyd. It also continued to support the annual Anderson conference at Greenwich.

Risk Assessment

The Trustees have examined the financial and operational risks which the charity faces and confirm that systems controls and review procedures have been established to mitigate exposure to these risks.

In order to help manage these risks further, a Reserves Policy was adopted and first published in the Annual Report for 2001. This is reviewed annually and revised if necessary to reflect the financial circumstances in which the Society operates should these change significantly.

Although the Society has no fixed assets, nor places any reliance upon raising funds from new donors to meet commitments, it nevertheless considers the following types of risk to be the most important and the Society has therefore taken over time a number of appropriate steps designed to mitigate their impact.

Loss of reputation, whether through the website, our podcasts or The Mariner's Mirror, is a significant group of risks that would seriously affect the performance of the Society. Although there is a relatively low probability of this happening we nevertheless undertake certain continuing precautions including but not limited to vigilant management at all times, properly exercised moderation on the website as well as making sure we comply with all applicable regulations and legislation. Moreover, we continually monitor performance of Taylor & Francis as well as having in place a proper succession plan to ensure we maintain editorial continuity. We are also considering a more formalised approach to succession planning overall to ensure the Society has the necessary human resources in place to provide management continuity going forward.

The other major area of risk is financial including significant loss of funds or reserves due to negligence or incompetence by our investment advisers or collapse of investment markets. Again such events would be very serious if they were to happen although their likelihood remains relatively low provided we continue to monitor their performance through regular meetings including agreeing appropriate risk guidelines and performance assessment criteria.

The third broad group of risks are operational including uncontrolled budgetary excesses as well as fraud, theft or dishonesty by staff or third parties. The precautions we have taken for the former include but are not limited to applying a rigorous budgetary procedure that must be approved by the Trustees, and regularly monitored by the Finance & General Purposes committee. For the latter we have instituted liability insurance cover where and when appropriate, we have dual control of payments and disbursements while our payment systems on the website are secured with a ringfenced bank account for transfers via PAYPAL/STRIPE.Finally, we recognize that as a charity we must ensure a continuous and seamless operation of the Society’s affairs by ensuring we have established successor planning and potential for recruitment, particularly for volunteers which can be challenging for this sector.

Page 5

The Society for Nautical Research Trustees' Report For the year ended 31 December 2023

Reserves Policy

The Reserves Policy of the Society has been determined based on the Society’s objectives and the current and expected future activities needed to fulfil these objectives. The trustees have set a policy after taking into account the foreseeable future income and expenditure patterns and associated risks. Its main features are:

Restricted Funds

Unrestricted Funds

The policy is designed to provide resources to fund the rest of the Society’s activities into the foreseeable future, including promotion of research into nautical antiquities and matters relating to the history of seafaring and ship building, languages and customs of the sea and to publish the results of such research and otherwise advance public understanding and education in these subjects. This requires the Society:

However, the major challenge before us remains the need to ensure we have the resources available to invest in the necessary technology to enable the Society to meet the needs of a changing readership market by adopting a number of web-based strategies including the digitization of The Mariner’s Mirror. As such the Farrar Fund continues to provide an assured source of potential funding for such development and has been structured from an investment point of view to provide both liquidity (for potentially sudden or urgent capital requirements) as well as longer term equity type support for the sort of transformation that is now well underway.

Our reserves are therefore derived from two sources. The first is by transferring every year whenever there is a sufficient surplus at year end, a sum of £5,000 to a contingency fund held by our investment managers intended to facilitate the Society’s ability to meet an unbudgeted or emergency liability that might prove difficult to fund from available current income at the time. The second source derives from surpluses reached in any year on our unrestricted funds where grants or donations are by nature erratic due to the nature of the purpose or economic environment.

Page 6

The Society for Nautical Research Trustees' Report For the year ended 31 December 2023

Future plans

The Trustees are mindful that they are responsible for the heritage of the society and also for its healthy future. The commissioning of the new website was the first step towards a more electronically aware future which is already bringing in new members. A new five-year business strategy has now been put in place with each committee have clearer delegated tasks. From this several proposed developments are now under discussion, although further ideas from members remain welcome.

Investment Powers, Policy and Performance

On 31st December 2023, the value of the portfolios overseen by the Society totalled £5.34 million, representing an increase of 11.99% over 2022. This includes the Farrar Fund (c.£151k) which is managed with a lower risk mandate but excludes money accumulating in the income accounts of each portfolio. Adjusting for all withdrawals, and the size of the different portfolios, the weighted average performance net of fees over the year (including the Farrar Fund) was 7.2%. In aggregate all 6 portfolios produced income of £138,526 over the year.

By way of comparison, the Societies bespoke benchmark that was agreed with the trustees for all the portfolios bar the Farrar Fund, consisting of 50% FTSE All Share TR/20% FTSE All World ex UK (£) TR/30% Government All Stocks TR, rose 8.24% (gross of fees) during the year. The Retail Price Index (RPI) rose by 5.2% during 2023.

Market Review - Summary

The beginning of 2023 still saw economies worldwide grappling with soaring prices which Central banks attempted to tame through interest hikes and other tightening monetary policy measures. However, the ripple effects of these monetary policies were far-reaching, with turmoil being experienced within the US regional banking sector leading to US bank failures, elevated market uncertainty over the future path of interest rates.

Against the backdrop of economic turbulence, a select group of stocks emerged as the undisputed champions within investor portfolios. Dubbed the "Magnificent Seven," this small group of shares, comprising Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia, and Tesla, rose precipitously. For the first three quarters, these tech titans accounted for the bulk of stock market returns, responsible for an extraordinary 90% of the S&P500 returns and two-thirds of global market returns.

As the end of 2023 approached, geopolitical tensions in Ukraine, the Middle East and between China and Taiwan exacerbated anxieties over inflation and whether central banks' attempts to engineer a "soft landing" would succeed. As the year progressed, the prospect of interest rate cuts on the horizon permeated financial circles, and market sentiment recovered with UK 10-year treasury bonds falling from 4.60% to 3.65%. The FTSE 250, a measure of UK-focused medium-sized companies, climbed by 13.2% and the S&P 500 index of the largest companies in the US rose by 8.1%, exactly matching the return on US government bonds.

Investment Objectives

a) Restricted funds

The investment objective of The Save the Victory Fund is to seek a balanced return from a combination of income and capital growth using a portfolio consisting of UK equities/funds, overseas equities/funds, fixed interest securities and cash. A ‘medium’ risk approach is adopted for the portfolio, with a strategic asset allocation split between equities and fixed interest/cash set at 70:30. The income generated from the portfolio during 2023 was £97,849.

The investment objective of the Macpherson Fund is to seek a balanced return from a combination of income and capital growth using a portfolio consisting of UK equities/funds, overseas equities/funds, fixed interest securities and cash. A ‘medium’ risk approach is adopted for the portfolio, with a strategic asset allocation split between equities and fixed interest/cash set at 70:30. The income generated from the portfolio during 2023 was £18,128.

Given the lack of any drawdown this year there has been a buildup of accumulated net income for both funds, which by year end had accrued about £250,000.

Page 7

The Society for Nautical Research Trustees' Report For the year ended 31 December 2023

Investment Objectives (continued)

b) Unrestricted Funds

The investment objectives for the SNR Fund, the Anderson Bequest Fund and the Tomlin Bequest Fund are to seek a balanced return from a combination of income and capital growth using a portfolio consisting of UK equities/funds, overseas funds, fixed interest securities and cash. A ‘medium’ risk approach is adopted for the portfolios, with a strategic asset allocation split between equities and fixed interest/cash set at 70:30.

The actual income delivered during 2023 was £8,985, £7,326 and £1,458 respectively.

In respect to the Farrar Fund, the benchmark is the Adam Income & Capital Preservation benchmark, which consists of 45% FTSE All Stocks Gilt Index, 40% FTSE All Share Index, 10% FTSE All World excluding UK Index and 5% cash. The income produced from the Farrar Fund in 2023 was £4,780.

Resources

The reserves are split between unrestricted and restricted funds that relate to the individual funds and unrestricted general funds available to the charity for day-to-day use. The Society’s assets are sufficient to meet its obligations.

Grant Making Policy

Grants will be made within the established objectives of the Society to promote research into nautical antiquities, into matters relating to seafaring and ship building in all ages and among all nations, into the language and customs of the sea and into other subjects of nautical interest, to publish the useful results of such a research and otherwise advance education in such subjects.

The Society holds various Trust Funds and bequests, whose monies are kept, managed and accounted for separately from its own financial affairs, with purposes dedicated to fulfil particular objectives.

• Anderson Bequest Fund

This fund was established by a bequest from the estate of Dr R C Anderson, and its income is available for grant in aid of research on maritime historical affairs in the widest possible sense. The funding of the Anderson Medals is also allocated from this fund for publications of particular merit on maritime history.

• The Tomlin Fund

The Tomlin Fund was created by a legacy from Lt Cmdr R J Tomlin. The income from this fund is used to support research in accordance with the Society's objectives and education in maritime historical affairs.

• Macpherson Trust

This fund is the residue of funds raised by subscription to purchase the Macpherson Collection of Prints for the National Maritime Museum. The income is devoted to grants for the purchase of prints and pictures for the National Maritime Museum.

• The Save the Victory Fund

This fund is the residue of a sum raised by public subscription for the restoration of HMS Victory, and is still open to supplement by donation .The income is reserved for grants devoted to the restoration of the ship to her 1805 state and to her presentation to the Public as such.

• The Farrar Fund

This fund was created by a legacy from the estate of Austin Farrar and its income and capital is available for projects designed to promote the awareness as well as the objectives of the Society.

Page 8

The Society for Nautical Research Trustees' Report For the year ended 31 December 2023

Statement of Council Members' Responsibilities

The trustees (who are also the directors of the Society for Nautical Research for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)

Company law required trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Public benefit

We have referred to the guidance in the Charity Commission’s general guidance on Public Benefit when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

Small company rules

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

By Order of the Council

Dr David Davies

Chairman of the Society

Date:

6 Appold Street London

Page 9

Independent Examiner's Report to the Trustees of The Society For Nautical Reseach

I report to the charity trustees on my examination of the accounts of The Society for Nautical Research for the year ended 31 December 2023.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the 2011 Act (“the 2011 Act”). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent Examiner's Statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Adam Fullerton, FCA, DChA For and on behalf of Moore Kingston Smith LLP Chartered Accountants

9 Appold Street London EC2A 2AP

Date:

Page 10

The Society For Nautical Reseach Statement of Financial Activities (Incorporating an Income and Expenditure Account) For the year ended 31 December 2023

Notes
INCOME FROM:
Donations and legacies
2
Investments
Investment income and interest received
3
Charitable activities
Subscriptions
4
Podcast income
Publications, royalties and copyright sales
Other
Total Income
EXPENDITURE ON:
Raising funds
Investment management costs
Charitable activities
Grants and donations payable
5
Publications
6
Advancing interest in nautical research
8
Total Expenditure
Net gains/(losses) on investments
11
Transfers
14
Net Income/(Expenditure) for the
year/Net movement in funds
Fund Balances Brought Forward
Fund Balances Carried Forward
14
Net Income before transfers		 Unrestricted
Funds
£
11,096
22,549
59,137
1,699
26,672		 Restricted
Funds
£
-
115,977
-
-
-		 Total
2023
£
11,096
138,526
59,137
1,699
26,672		 Total
2022
£
7
125,223
64,501
-
27,183
87,508 - 87,508 91,684
1,000 1,000 1,948
122,153 115,977 238,130 218,862
5,463
12,382
67,740
23,509		 23,756
2,962
-
-		 29,219
15,344
67,740
23,509		 30,366
171,631
66,957
25,167
103,631 2,962 106,593 263,755
109,094 26,718 135,812 294,121
49,115 298,211 347,326 (612,993)
-
62,174
881,681
62,174		 -
387,470
4,245,362
387,470		 -
449,644
5,127,043
449,644		 -
(688,252)
5,815,295
(688,252)
943,855 4,632,832 5,576,687 5,127,043

All amounts relate to continuing activities.

The notes on pages 13 to 20 form part of these financial statements.

Page 11

The Society For Nautical Reseach Balance Sheet

As at 31 December 2023

Notes
Fixed Assets
Tangible fixed assets
10
Investments
11
Current Assets
Debtors
12
Cash at bank and in hand
Creditors: Amounts falling due
within one year
13
Net Current Assets
Net Assets
Unrestricted Funds
14, 15
Restricted Funds
14, 15		 2023
£
6,395
257,008
263,403
(27,447)		 2023
£
1
5,340,730
5,340,731
235,956
5,576,687
943,855
4,632,832
5,576,687		 2022
£
6,619
531,424
538,043
(179,737)		 2022
£
1
4,768,736
4,768,737
358,306
5,127,043
881,681
4,245,362
5,127,043

The notes on pages 13 to 20 form part of these financial statements.

The directors state:

(a) For the year ended 31st December 2023 the charitable company was entitled to exemption under Section 477 of the Companies Act 2006.

(b) No notice from Trustees requiring an audit has been deposited under Section 476 of the Companies Act 2006.

(c) The directors acknowledge their responsibilities for:

(i) ensuring that the charitable company keeps accounting records which comply with Section 386 of the Companies Act 2006, and

(ii) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of the financial year, and of its income and expenditure for the financial year, in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the charitable company.

(d) The accounts have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and in accordance with the provisions of the Financial Reporting Standard 102.

Approved by the Council Members, and authorised for issue, on and signed on their behalf by:

……………………………….. ………………………………..

Dr J D Davies - Chairman

Peter Nash - Hon Treasurer

Companies House Number: 2848095

Page 12

The Society For Nautical Reseach Notes to the Financial Statements For the year ended 31 December 2023

1 Accounting policies

Basis of Preparation

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The company is a public benefit entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee in the United Kingdom and therefore has also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and Charities Act 2011.

The charity has taken advantage of the provisions of Schedule 4 of the Companies Act and adapted the Companies Act formats to reflect the special nature of the charity's activities. Figures are rounded to the nearest pound.

Going concern

The trustees have assessed whether the use of going concern and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the trustees have considered the charitable company’s forecasts and projections and have taken account of pressures on subscription and publication income. After making enquiries, the trustees have concluded that there a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.

A summary of the principal accounting policies adopted, judgements and key sources of estimation uncertainty, is set out below.

All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably.

Subscriptions received in advance of next year are carried forward in the balance sheet and will be included in the Statement of Financial Activities for the following year.

Other income, including publication sales, advertising, royalty income and conference income, is included in the accounts when receivable.

d) Donations

Donations are recognised as they are received except in the case where they relate to a specific future project, in which case they are deferred until the commencement of that project.

e) Legacies

Legacies include all unsolicited legacies. Legacies are taken into account when capable of financial measurement and receipt is virtually certain.

Page 13

The Society For Nautical Reseach Notes to the Financial Statements For the year ended 31 December 2023

1 Accounting policies

Investments are stated in the financial statements at market value in accordance with the Statement of Recommended Practice issued by the Charity Commission. Gains or losses on investments are disclosed in the statement of financial activities showing separately realised gains from investment sales in the year (sale proceeds less market value last year) and unrealised gains arising from the increase in value during the year of investments still held. Investment income including the associated income tax recoverable is credited to income on a receivable basis.

g) Cash Flow Statement

The trustees have taken advantage of the exemptions available in FRS 102 and have chosen not to prepare a cash flow statement.

h) Resources Expended

Expenditure is included in the Statement of Financial Activities on a accruals basis, inclusive of any VAT which cannot be recovered. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Wherever possible costs are directly attributed to headings that aggregate all costs related to the category. Costs common to more than one area are apportioned on the basis of time spent on each area or on a direct cost basis. The irrecoverable element of VAT is included with the expense item to which it relates. Costs of generating funds are those costs of seeking potential funders and applying for funding. Grants payable are accounted for on an accruals basis.

Support costs are those costs incurred in support of the charitable objectives. These have been allocated to the charitable activities on a basis that fairly reflects the true use of those resource within the organisation.

Governance costs are those incurred in the governance of the charity and are primarily associated with the constitutional and statutory requirements. The irrecoverable element of VAT is included with the expense item to which it relates.

i) Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

j) Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to reduce the asset and settle the liability simultaneously.

With the exception of deferred income, all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 12 and 13 for details.

Page 14

The Society For Nautical Reseach Notes to the Financial Statements For the year ended 31 December 2023

1 Accounting policies (continued)

k) Cash and cash equivalents

Cash and cash equivalents include cash in hand and current and fixed term deposits with banks that are accessible within 3 months.

m) Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. Depreciation is provided on tangible fixed assets to write off their cost over estimates of their useful lives at the following Computers - 33 1/3% straight line

Unrestricted : these are funds which can be used in accordance with the charitable objects at the discretion of the trustees. Designated : these are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects. Restricted : these are funds that can only be used for particular restricted purposes within the objects of the charity. Capital funds with restrictions attached are included in this category. These funds consist of an original endowment and accumulated unspent restricted income.

o) Taxation

The company, as a charity, is exempt from taxation.

2 Voluntary Income

2
Voluntary Income
Unrestricted funds
Donations and legacies
Gift Aid - HMRC
3
Investment income and interest received
Unrestricted funds
Restricted funds		 2023
£
5,035
6,061
11,096
2023
£
22,549
115,977
138,526		 2022
£
7
-
7
2022
£
19,505
105,718
125,223

4 Subscriptions

Of the subscription income, £XXX was received from overseas (2022: £21,488). This equates to XX% of total subscription income (2022: 33%).

Subscription income includes the associated recoverable gift aid.

Grants Payable
Unrestricted funds:
Anderson Medal
Anderson Conference
Scottish Maritime History Conference
Anderson Bequest - Other
Anderson Awards
Maritime History North
New Researchers Grant
Naval Dockyards Conference
Support costs (Note 8)
Restricted funds:
National Maritime Museum
Support costs (Note 8)
National Museum of the Royal Navy
Victory Medal		 2023
£
27
960
-
-
3,029
500
500
500
6,866
-
2,935
-
27
15,344		 2022
£
-
-
500
1,611
3,045
500
500
2,800
9,350
-
2,935
150,000
390
171,631

Page 15

The Society For Nautical Reseach Notes to the Financial Statements For the year ended 31 December 2023

6 Publication Costs
Unrestricted funds
General cost of publications
Support costs (Note 8)
7 Governance Costs
Unrestricted funds
Support costs (Note 8)
Audit and accountancy
Other management costs
Restricted funds
Audit and accountancy
Other management costs
8 Allocation of Other Membership and Support Costs
Year to 31 December 2023
Membership secretary fees
Travel, postage and general expenses
Lecture and conferences
Warrior dinner (net)
Professional
Publicity and Website
Direct governance costs
Allocation of governance support costs		 Grants
Payable
£
-
1,615
-
-
-
-
1,615
1,615
8,186
9,801		 Publications
£
-
1,615
-
-
-
8,957
10,572
10,572
8,186
18,758		 2023
2022
£
£
48,982
47,172
18,758
19,785
67,740
66,957
2023
2022
£
£
12,187
13,749
9,285
11,695
150
150
21,622
25,594
2,085
2,085
850
850
24,557
28,529
Advancing
Interest in
Governance
Nautical Research
Costs
£
£
13,200
-
-
3,230
750
-
1,373
-
-
-
-
8,957
15,323
12,187
12,370
15,323
24,557
8,186
(24,557)
23,509
-

Page 16

The Society For Nautical Reseach Notes to the Financial Statements For the year ended 31 December 2023

8 Allocation of Other Membership and Support Costs Continued

Year to 31 December 2022
Membership secretary fees
Travel, postage and general expenses
Lecture and conferences
Victory events
Professional
Publicity and Website
Direct governance costs
Allocation of governance support costs		 Grants
Payable
£
-
2,775
-
-
-
-		 Publications
£
-
2,775
-
-
-
7,500		 Advancing
Interest in
Governance
Nautical Research
Costs
£
£
13,200
-
-
5,549
250
-
2,208
-
-
700
-
7,500
2,775
-		 10,275
-		 15,658
13,749
-
14,780
2,775
-
9,510
12,285		 10,275
-
9,510
19,785		 15,658
28,529
9,510
(28,529)
25,168
-

No staff were employed by the charity during 2023 (2022: None).

9 Net Incoming Resources

Are stated after charging:
Independent examiner's remuneration
Trustee expenses reimbursed to 5 trustees (2022: 2 trustees)		 2023
2022
£
£
11,370
9,750
600
465

Trustee expenses related predominantly to travel costs. No trustee received remuneration in 2023 (2022: £Nil).

10 Tangible Fixed Assets
Cost
As at 1 January 2023 and 31 December 2023
Depreciation
As at 1 January 2023 and 31 December 2023
Net Book Value
As at 1 January 2023 and 31 December 2023		 Plant &
Machinery
£
1,485
1,484
1

Page 17

The Society For Nautical Reseach Notes to the Financial Statements For the year ended 31 December 2023

11 Investments

Investments are listed on a recognised stock exchange or are held in units of common investment funds where their values are calculated by reference to investments quoted on a recognised stock exchange.

Unrestricted Funds
General Fund
Designated Funds:
Anderson Bequest Fund
Tomlin Bequest Fund
Farrar Fund
Restricted Funds
Balance at beginning of year
Additions
Disposals at book value
Net gains/(losses) on investments
Add: Cash balances included in investments
Balance at end of year
UK equities
UK Fixed Interest
UK index linked
Overseas equities
Overseas Fixed Interest
Cash		 Market
Cost
Value
£
£
187,075
268,349
221,520
296,218
64,000
67,514
135,605
150,809
608,200
782,890
3,106,265
4,557,840
3,714,465
5,340,730
Unrestricted
Restricted
Funds
Funds
£
£
701,192
3,998,109
125,827
490,884
(101,535)
(248,574)
49,013
296,171
8,393
21,250
782,890
4,557,840
2023		 Market
Cost
Value
£
£
188,260
249,015
198,207
260,438
48,867
62,233
131,168
139,761
566,502
711,447
2,902,186
4,057,289
3,468,688
4,768,736
Unrestricted
Restricted
Funds
Funds
£
£
786,951
4,451,335
16,005
179,663
(22,740)
(98,817)
(78,993)
(534,000)
10,224
59,108
711,447
4,057,289
Market
Market
Value
Value
2023
2022
£
£
2,103,743
955,729
1,223,366
20,404
20,194
2,030,515
1,633,326
1,477,529
330,457
215,123
29,644
69,436
5,340,730
4,768,736
2022		 Market
Cost
Value
£
£
188,260
249,015
198,207
260,438
48,867
62,233
131,168
139,761
566,502
711,447
2,902,186
4,057,289
3,468,688
4,768,736
Unrestricted
Restricted
Funds
Funds
£
£
786,951
4,451,335
16,005
179,663
(22,740)
(98,817)
(78,993)
(534,000)
10,224
59,108
711,447
4,057,289
Market
Market
Value
Value
2023
2022
£
£
2,103,743
955,729
1,223,366
20,404
20,194
2,030,515
1,633,326
1,477,529
330,457
215,123
29,644
69,436
5,340,730
4,768,736
2022
711,447
4,057,289
4,768,736
Restricted
Funds
£
4,451,335
179,663
(98,817)
(534,000)
59,108
4,057,289
Market
Value
2022
£
955,729
20,404
2,030,515
1,477,529
215,123
69,436
4,768,736

Page 18

The Society For Nautical Reseach Notes to the Financial Statements For the year ended 31 December 2023

12
Debtors
Taxation and social security debtor
Royalty debtor
Podcast debtor
13
Creditors: Amounts falling due within one year
Accruals and deferred income
Grant creditor		 2023
£
859
5,000
536		 2022
£
1,290
5,000
329
6,395 6,619
2023
£
27,447
-		 2022
£
29,737
150,000
27,447 179,737

Of the above, £7,499 relates to deferred income, all of which was deferred in the current year (2022: £7,872). Deferred income relates to subscription income received in advance.

14
Funds
Unrestricted Funds
General Fund
Designated Funds:
Anderson Bequest
Tomlin Bequest
Farrar Fund
Restricted Funds
Save the Victory
Macpherson Collection		 Balance at
1 Jan
2023
£
398,714
275,240
61,873
145,854		 Incoming
Resources
£
108,589
7,326
1,458
4,780		 Outgoing
Resources
£
(99,720)
(6,354)
(1,945)
(1,074)		 Transfers
-
-
-
-		 Investment
Gains
£
20,081
16,653
5,282
7,098		 Balance at
31 Dec
2023
£
427,664
292,865
66,668
156,658
881,681
3,536,595
708,767		 122,153
97,849
18,128		 (109,093)
(22,060)
(4,658)		 -
-
-		 49,114
244,108
54,103		 943,855
3,856,492
776,340
5,127,043 238,130 (135,811) - 347,325 5,576,687

Designated Funds

The designated funds will be spent in line with the investment income that becomes available and will be spent in accordance with the designations as per the below:

The Anderson Bequest

This fund is used to fund grants for research work on maritime history in general. The transactions of the fund are separately recorded and were created from unrestricted legacies received.

The Tomlin Bequest Fund

This fund is designated by the Council to augment financial support for conferences and other Society activities.

The Farrar Fund

This fund was created by a legacy from the estate of Austin Farrar and its income and capital is available for projects designed to promote awareness as well as the objectives of the society.

Restricted Funds

The restricted funds comprise two endowment funds which are the Save the Victory Fund and the Macpherson Collection Endowment Fund. The Save the Victory Fund engages in activities that preserve and restore HMS Victory. The Macpherson Collection Endowment Fund purchases works of art for the National Maritime Museum.

Page 19

The Society For Nautical Reseach Notes to the Financial Statements For the year ended 31 December 2023

14
Funds
Unrestricted Funds
General Fund
Designated Funds:
Anderson Bequest
Tomlin Bequest
Farrar Fund
Restricted Funds
Save the Victory
Macpherson Collection		 Balance at
1 Jan
2022
£
433,377
302,446
71,388
157,419
964,630
4,081,557
769,108
5,815,295		 Incoming
Resources
£
98,882
7,111
1,882
4,321
112,196
90,792
15,874
218,862		 Outgoing
Resources
£
(103,143)
(7,045)
(4,805)
(1,159)
(116,152)
(173,228)
(4,741)
(294,121)		 Transfers
-
-
-
-
-
-
-
-		 Investment
Gains
£
(30,402)
(27,272)
(6,592)
(14,727)
(78,993)
(462,526)
(71,474)
(612,993)		 Balance at
31 Dec
2022
£
398,714
275,240
61,873
145,854
881,681
3,536,595
708,767
5,127,043
15
Analysis of Net Assets between Funds
Unrestricted funds
Restricted funds:
Save the Victory Fund
Macpherson Collection Endowment Fund		 Fixed Assets
and
Investments
£
782,890
3,832,235
725,606
5,340,731		 Net
Current
Assets
£
160,967
24,254
50,735
235,956		 2023
Total
£
943,857
3,856,489
776,341
5,576,687		 2022
Total
£
881,681
3,536,595
708,767
5,127,043

16 Councils' Liability

In the event of the company being wound up, the liability of each member is limited to £1. At 31 December 2023, there were 16 members.

17 Related party transactions

During the year, Helen Garvey, the membership secretary received fees of £13,200 (2022: £13,200).

The key management personnel of the society are the Officers and the Council members. They were not remunerated in the year (2022: £nil).

Page 20