2025-06-30-accounts

FALKLANDS CONSERVATION

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025

Company Number: 03661322 (England and Wales)

Registered Charity Number: 1073859

FALKLANDS CONSERVATION

CONTENTS

	Page
Trustees’ Report	1-7
Independent Auditors’ Report	8-10
Statement of Financial Activities	11
Balance Sheet	12
Cash Flow Statement	13
NotestotheFinancialStatements	14-26

FALKLANDS CONSERVATION Report of The Trustees

The Trustees have pleasure in presenting their Annual Report together with the audited financial statements for the year ended 30 June 2025.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

In shaping our objectives and planning our activities, the Trustees have considered the Charity Commission's guidance on public benefit.

• The company’s objects and principal activities as set out in its Articles are: a) to undertake scientific research in the wildlife and environment of the Falkland Islands including New Island and their surrounding seas and to publish the results of such research;

• b) to conserve the wildlife and environment of the Falkland Islands including New Island and its surrounding seas for the benefit of the public;

• c) to educate the public in the principles and practice of nature conservation;

The work we do reflects our mission to work in partnership with the local and international Falkland Islands community to conserve nature. This was achieved during the year through the work described below.

Trustees adopted a Falklands Conservation Strategy with a 5 year plan under 4 headings. The achievements during the fourth year of this plan are described below under the headings. It was decided that the current plan would end after the fourth year to allow the next plan to tie in with key dates.

ACHIEVEMENTS AND PERFORMANCE

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1. FORCE FOR NATURE
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Carbon Footprint

Falklands Conservation (FC) is committed to lowering its organisational carbon footprint. In 2021 we used data on electricity use, heating and diesel usage from transport to accurately calculate our carbon footprint. This has been used as a baseline for future years as we work on lowering our emissions. In 2023/24 we mitigated as much of our carbon emissions as possible. For those emissions we were not able to cut we purchased carbon credits from a gold standard scheme to offset our carbon footprint entirely. We purchased gold standard carbon credits again to offset our 2024/25 carbon footprint.

Education and outreach — the Watch Group

The Watch Group continued its programme of activities for young people in the Islands. The Watch Group award scheme continues to be a success with this year seeing the first reward trip (a day tour of Port Louis) for children completing their “Tussac Habitat” level award. The Watch Group enjoyed another successful year of activities including amongst other things their annual camp at Little Creek, A bug hunt and a successful whale watching trip.

Supporting environmental education within Falkland Island schools

We continued to provide information and staff support to environmental education lessons, field trips and assemblies within schools and to support work experience students. This year we gave a careers day talk to students in years 7-11 and have been working with both schools on developing conservation activities within the curriculum.

Community Engagement

Community engagement remained high throughout the year with a total engagement of 962 — a 78% increase from our 20/21 baseline (engagement Value = 1 point per individual present at event). Events such as Farmers week, Peaty Pals and the Falklands Conservation Bake Off contributed toward these figures.

Sustainable Business

The New Island business out-turn remained positive.

New Falklands Conservation Headquarters

New designs for the building have been developed. We are in the process of looking at budgets and deciding on the next steps.

Financial Independence

The previous target was to increase unrestricted income percentage by 10% from 35% of total income to 38.5% of total income. By the end of 23/24 our percentage of unrestricted income had dropped to 29%. Although up from 27% in 22/23 this reflects the fact that we have been more successful in securing restricted income (the majority being Darwin Funding) than we have been in securing unrestricted income. Finding new sources of unrestricted income remains a challenge.

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FALKLANDS CONSERVATION Report of The Trustees

ACHIEVEMENTS AND PERFORMANCE (continued)

1. RESTORING NATURE

Land Management and Habitat Restoration

An additional 0.9 ha of new planting & 0.42 ha infill took place on Middle Island this year meaning that a total of 13.3 ha of land has been planted with tussac providing protection from erosion. 0.6ha of land was planted on Pebble Islet and repairs made to the shanty to allow planters to stay on the island in future years. Thistle control continued to take place on Pebble Islet.

1,400 ha of Death's Head, Dunbar Farm is under 10-year set-aside and now stock-free for 1-year. Consultation on the FIG DoA Restoration Set-Aside is ongoing. Invasives have been removed from Onion Range Camp following a survey.

Although stage II of our New Island restoration project is still pending funding/Darwin outcome, work has commenced to maintain the project timeline, including programme documentation, EO! & Tendering processes for key contractors.

A number of successful introductions/reintroductions took place this year. A number of Cobb’s wren were ringed and moved from Kidney Island to Top Island. Yellow Slipper, Falkland Rockcress and Sea Plantain were all planted on Pebble Islet. Californian Clubrush was planted on Middle Island.

Falkland Conservation's peatland GHG project has continued to develop - from a year ago to present we, in collaboration with partners, have; amassed 400 GB of environmental data, conducted over 3600 GHG point sample readings, generated ~3700 peat core data points and engaged across the community for input on carbon offsetting development. Over the coming months the project will finalise analysis approaches and database builds, develop plans for legacy components to ensure lasting impact, and of course continue to collect data and engage with stakeholders, as we look towards the final delivery in 2026.

1. SPACE FOR NATURE

Management plans for all FCs islands have been completed.

1. USING NATURE

The Falklands-wide Seabird Monitoring Programme was completed for the 36th consecutive year. From June through September 2024 we worked on our NOAA-funded southern right whale telemetry project with international collaborators, and deployed six tags on whales in the Falklands. All of the tagged animals subsequently continued on to the Peninsula Valdes calving ground in Argentina. Our Darwin Plus whale project (DPLUS126) completed on 31 December 2024, and the final months of 2024 were spent analysing all datasets and producing a comprehensive final project technical report containing chapters on the satellite telemetry, drone work, aerial abundance surveys, and boat surveys. That report, along with the sei whale Conservation Management Plan, and a report detailing our successful application to have the southern right whale added as a trigger species to the existing Key Biodiversity Area, were all presented to the FIG Environment Committee during April and May 2025 and met with positive feedback. We commenced a new Darwin Plus project (DPLUS208) on 1 October 2024, which aims to translate various datasets into some tangible management outputs for cetaceans in the Falklands. To date, work on that has included several weeks of training in the UK to improve our capacity to undertake cetacean necropsies, the completion of a 2025 sei whale field season with a focus on obtaining body measurements, the production of draft guidelines for minimising the impacts of pile-driving on cetaceans in the Falklands, a draft national Red List for cetaceans, and provision of training to the community on sampling dead cetaceans. We also attended several cetacean strandings over the last year, with some high-profile events including a dead southern right whale entangled in fishing gear at Pebble Island in May 2024 and the live stranding of three southern right whale dolphins at Bertha’s beach during March 2025.

FINANCIAL REVIEW

The results for the year are detailed in the financial statements that follow. Most of the charity’s work consists of grant-aided projects with an agreed budget; the funding in each case counting as restricted as it cannot be used for any other purpose. Often, projects run over more than one financial year, but over the duration of a project, expenditure matches grant income. The funding for each project contains a percentage agreed with the donor which contributes to the charity's fixed overheads including building maintenance, office costs and core staff salaries which are otherwise funded from unrestricted funds. However, generating unrestricted income to cover fixed overheads continues to be a challenge despite the generous support of the Falkland Islands Government. Fundraising efforts such as the Charity Ball, donations, and sales, together with membership and penguin adoption, ensured that essential costs were covered. The Trustees would like to record their thanks for the hard work of the management team, members and supporters for all these various fundraising activities.

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FALKLANDS CONSERVATION

Report of The Trustees FINANCIAL REVIEW (continued)

Principal funding sources

Falklands Conservation has a diversity of funding partners, whose contribution varies from year to year based upon project interests. FIG provides us with an annual subvention, and this income contributes to our core organisational costs in the Falkland Islands and to a number of ongoing projects. Springcreek Conservation, Detroit Zoological Society, Steve Spring and the Royal Society for the Protection of Birds also provide significant yearly support. Hence, we are particularly grateful to all these organisations for their continued support.

Fundraising

We held a successful, Charity Ball event in 2024 which resulted in income of over £38k. A number of UK wildlife parks continued to display collection boxes for Falkland’s wildlife. We continued to run our gift shop at Jubilee Villas in Stanley and outsourced our products through local and international retailers and our web shop. Fundraising is a major preoccupation of the management team and is a constant challenge.

New Island

We had a very successful fifth year of tourism operations on New Island, including new cruise ship visits. A new front door was fitted on Cormorant Cottage with new windows also. Fur seal house has had all copper pipes replaced with plastic to prevent corrosion. Improvements have also been made to the kitchen and bathroom. Works have been completed on Stone House with a new roof installed and new dormer windows fitted. Work has continued to take place to improve the airstrip.

Investment policy

The charity's foundation document states that the charity has the power to “invest any money which the Company does not immediately need in any investments, securities or properties.” To that end, the charity has an investment adviser, Quilter Cheviot Ltd, which manages a portfolio of assets. The charity is in close contact with the investment adviser who produces quarterly reports for the Board.

Reserves policy

In line with best practice in the charity sector, it is the policy of the Trustees to maintain a reserve of unrestricted, undesignated funds to service cash flow requirements, to safeguard against potential fluctuations in revenue and to enable it to deal with an unexpected emergency or opportunity.

Risk management

The Board reviews annually the main risks facing the charity and develops appropriate measures to mitigate those risks. Among the main risks identified at present are:

• e Over-reliance on particular sources of income. Efforts are continually made to diversify sources of income to avoid the difficulties which might arise if a key donor suddenly withheld support.

• e Disaster through fire or flood at the main office in the Falkland Islands. Comprehensive insurance policies are in place against such an eventuality. IT systems are backed up and the backup copies held off site. Fire prevention arrangements and disaster recovery plans are in place.

• e Injury or death of a member of staff or volunteer with the attendant reputational damage. A Health & Safety policy is in place which is reviewed by Trustees at least every 3 years. All members of staff and volunteers

• are regularly reminded of the need to work safely, particularly when working in remote areas. Any safetyrelated incidents or personal injuries are carefully investigated and appropriate measures put in place to prevent a re-occurrence.

• e Injury or harm to visitors to New Island and damage to the buildings and equipment on the Island which is isolated and remote. Insurance policies are in place and carefully reviewed at renewal.

PLANS FOR THE FUTURE

We have a new five-year plan coming into effect for 2026-2030. This new 5-year plan will follow the same themes as the previous plan:

1. Falklands Conservation as a Force for Nature

In order to have an effective organization we need to invest in the people, systems and infrastructure that make up the organization. Over the next few years we will be working to increase our organisational resilience allowing us to grow sustainably. We will work to increase our financial stability by working with partners, supporters and donors. We will continue to put our work with the community at the heart of our strategy looking to empower and engage them in conservation.

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Report of The Trustees

PLANS FOR THE FUTURE (continued)

1. Restore Nature

We will champion the restoration of nature as a key way of tackling the major challenges that we face. This will focus on our responsibility to restore our own islands alongside offering support to other landowners and businesses where possible.

3. Space for Nature

Falklands’ land and seascapes are globally important for nature. While much good work has been done, there is still much to do to ensure appropriate conservation of our marine and terrestrial natural heritage. We will work alongside other members of the community to find positive solutions.

4. Using Nature

Onshore and offshore industries have the potential to alter the natural character of the islands forever. We will work alongside other members of the community to encourage sustainable solutions to these challenges. We are all part of the solution for achieving a bright future for Falkland’s nature, and we look forward to continuing to work together.

We will continue to report on our progress under our Achievements and Performance section (above) each year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document Falklands Conservation is a charitable company limited by guarantee (Company Number: 03661322), incorporated on 4 November 1998. The company took over the activities and assets of the Falkland Islands Foundation, a charitable trust founded in 1979 by Sir Peter Scott. The company was established under a Memorandum & Articles of Association. These were replaced in Dec 2016 by a new governing document which complies with recent changes in UK law.

Recruitment and appointment of the Board of Trustees

The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as members of the Board of Trustees. The Board consists of not more than 10 elected members resident in the Falkland Islands and not more than nine elected members in the UK. It is responsible for the strategic direction and policy of the charity. Under the requirements of the Articles of Association one third of the number of places in each group of Trustees must be vacated at each Annual General Meeting. All are eligible for re-election.

This year Tom Blake remained as our chairman based in the Falkland Islands, while Henry Robinson remained Vice-Chairman based in the UK.

Trustees have between them a variety of skills and experience in various fields including, for example: environmental and scientific expertise, in-depth knowledge of the Falkland Islands, finance and contacts with a variety of relevant stakeholders.

The Board's membership is reviewed periodically, with particular attention given to ensuring diversity of experience. All members are invited to nominate candidates for election. The Board of Trustees meets quarterly by conference telephone link UK-Falkland Islands. The Chief Executive Officer, Conservation Manager and Finance and Admin Manager attend Board meetings, but do not vote. All Trustees give their time freely and do not receive any remuneration.

Trustee induction and training

All Trustees are well informed of the charity’s mission, objectives, strategic priorities and the current conservation activities. An induction pack is provided for new Trustees which includes a role description, our strategic priorities, our most recent financial statements and published accounts and our Articles of Association. Information on governance and the annual work plan is distributed quarterly to Trustees.

Management

The key members of the management team were: the Chief Executive, the Conservation Manager and the Finance and Admin Manager. The pay of the key management and the remaining staff salaries are reviewed and approved annually by the Board as part of the budgeting process. Account is taken of a number of factors, including salary levels in the local economy, changes to the cost of living and the need to recruit and retain suitable employees.

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FALKLANDS CONSERVATION Report of The Trustees STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

The members of staff who continued in their posts during the year were as follows: Dr Esther Bertram (Chief Executive Officer), Dr Andrew Stanworth (Conservation Manager), Dr Caroline Weir (Cetaceans Ecologist), Pamela Quilodran Jelbes (Finance and Admin Manager) Jenni Sol (Logistics and Tourism Officer for New Island), Tim Stenning (Infrastructure Officer for New Island); Glenn Welch (Community Outreach Officer), Amanda Kuepfer (Seabirds Ecologist), Ross James (Biosecurity and Invasives Manager), Ben Taylor (Peatland GHG flux Project Lead), Grace Ibberson (UK Administrative Officer) and Darnell Christie (Communications and Marketing Officer). Nancy Reid joined us in January as our new Administration Officer. Ajosh Vijayan joined us in June as our new Peatland GHG Project Officer. Vanessa Valler-Nannig’s role changed from Administration Officer to Financial assistant whilst Rabia Rao is on long term sick leave. Grant Munro’s position changed from Sites Officer to Terrestrial Team Lead. Howard Boyer continued in the role of UK Volunteer, Helen Marsh very kindly continued to provide voluntary support as the Herbarium Curator. With this group of people, together with the assistance of many dedicated volunteers both locally and overseas, we have had a successful year. We thank each and every one of them.

Members

We have 378 members spread throughout the world.

Premises

Our main office is at Jubilee Villas in Stanley, with a complementary office for our UK Administrative Officer, Grace Ibberson at The RSPB Lodge in Sandy, Bedfordshire. We continued working towards our vision of a purpose-built headquarters, with a dedicated space for Watch Group activities, in Stanley. We are still holding funds for this progression.

THANKS AND ACKNOWLEDGEMENTS

We could not have achieved so much without everyone listed below.

Conservation Societies and other Organisations. Forum for the Conservation of the Patagonian Sea, British Antarctic Survey, Oxford University, International Union for Conservation and Nature Peatland Programme, South Atlantic Environmental Research Institute, Island LandCare, Elephant Seal Research Group, Department of Agriculture.

Corporate Supporters. To ensure that we are partnering with those that are furthering environmental impact, we are currently reviewing our Corporate Supporters scheme.

Supporters of Project Work. The Falkland Islands Government, UK Department for Environment, Food and Rural Affairs, including their Darwin Plus programmes Biodiversity Challenge Funds, the Royal Society for the Protection of Birds, Wild Planet Trust, Dunbar Farm, UK Centre for Ecology and Hydrology, Rincon Ridge Farm, Springpoint Farm, Port Howard Farm, Antarctic Research Trust, UK Department for Business, Energy and Industrial Strategy, Fitzroy Farm, Fortuna, Polar Seafish, Falkland Islands Government Air Service, Island LandCare, Chris Hawksworth, Falkland Islands Fire & Rescue Service, Consolidated Fishing Ltd, EU Best, Georgia Seafoods Ltd, British Forces South Atlantic Islands Conservation Society, UK Ministry of Defence and RSK Group, Workboat Service, Weddell and Beaver Island. As well as all landowners who supported cetacean strandings and permitted access to their land for conservation research purposes. Supporters of Core Core Activities. The Falkland Islands Government, Detroit Zoological Society, Dingle Oceanworld Aquarium, Thrigby Hall Wildlife Gardens, Drusilla’s Park, Cotswold Wildlife Park and Gardens, John Ellerman Foundation, Alice Clarke, Hurtigruten Foundation, Standard Chartered Bank., Little Creek Farm, Springcreek Conservation and Steve Spring. For substantial donations in kind, we thank Stanley Services Ltd. Charity Ball 2024. Sponsors: Consolidated Fisheries Ltd, ELink, South American Atlantic Service Ltd, RBC Ltd, RSK Group and Falkland Islands Development Corporation Auction Donors: HE the Governor Alison Blake, Glenn Welch, David Higgins, Steve Massam, Adrian Love, Just Wool Textiles, Vicky Chater, Tim Carr, David Spivack, Bonnie Greenland, Eileen Davies, Leigh-Anne Wolfaardt, Marianna Kajut, Helen McShane, Marcy Bonner, Sally Ogley, Sarah Brennan, Carli-Anne Goss, Margot Chuquimamani Quispe, Andrew Pollard, Ben Cockwell, Lorraine Kelly, Neve Stanworth, Alice Clarke, Stuart Walker, Oceanwide Expeditions, Lindblad Expeditions

Supporters of Core Core Activities. The Falkland Islands Government, Detroit Zoological Society, Dingle Oceanworld Aquarium, Thrigby Hall Wildlife Gardens, Drusilla’s Park, Cotswold Wildlife Park and Gardens, John Ellerman Foundation, Alice Clarke, Hurtigruten Foundation, Standard Chartered Bank., Little Creek Farm, Springcreek Conservation and Steve Spring. For substantial donations in kind, we thank Stanley Services Ltd.

Raffle Donors 2024. New Island, Workboat Services, Sulivan Shipping, BFSAI, Pebble Island Lodge, Waterfront Boutique Hotel, Bleaker Island Farm, Falklands Outdoors, FIGAS, Hairy Daisy The Narrows Bar & Restaurant, Kelper Stores Ltd, FITB, Falkland Islands Distillery, Government of South Georgia & South Sandwich Island, Malvina House Hotel, Newen Breadshop, South Atlantic Detection Dogs, ProInstall Interiors, Groovy’s, Stanley Growers, Mitie, Shorty's Diner & Motel, Hurtigruten Expeditions.

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FALKLANDS CONSERVATION Report of The Trustees

THANKS AND ACKNOWLEDGEMENTS (continued)

Donations to the New Organisational Headquarters Building Fund. Standard Chartered Bank, Falkland Islands Government, Premier Oil, Noble Energy, JK Marine, Caribbean Alliance, John & Tracey Hellowell, Henry Kenner (Arrowgrass), Cotswold Wildlife Park and Gardens, Morrison’s Construction, and Frits W Olivier. We would also like to thank the H.B. Allen Charitable Trust - long-term supporters of our core activities, who have now completed their funding to us with a generous donation to our proposed new headquarters. We are very grateful.

REFERENCE AND ADMINISTRATIVE DETAILS

VICE PRESIDENTS Sir David Attenborough Julian Fitter Robert Gibbons Mark Carwardine

BOARD OF TRUSTEES Henry Robinson (UK Chair) Paul Brewin (Fl Vice Chair) Keith Biles (Fl Hon Treasurer) Thomas Blake (FC Chairman) Craig Lewis Sarah Browning Lee (appointed 24th July 24) Steve Fowmes (Treasurer - appointed 24th October 24)

KEY MANAGEMENT Chief Executive Finance and Admin Manager Conservation Manager PRINCIPAL ADDRESSES United Kingdom: The Lodge Sandy Bedfordshire $619 2DL

Peter Harrison Rebecca Ingham Mandy Shepherd

Tim Carr Colin Clubbe Sally-Ann Wilson Nicola Granger (resigned December 2024) Elizabeth Radford Alan Ryder

Dr Esther Bertram Pamela Quilodran Jelbes Dr Andrew Stanworth

Falkland Islands: Jubilee Villas, 41 Ross Road, Stanley Falkland Island FIQQ 1ZZ

REGISTERED OFFICE 2nd Floor, Regis House 45 King William Street London, EC4R 9AN

BANKERS United Kingdom: Barclays Bank Plc King George Street, Yeovil, Somerset, BA20 1PX

SOLICITORS United Kingdom: Russell-Cooke 2 Putney Hill London, SW15 6AB

Falkland Islands: Standard Chartered Bank Ross Road, Stanley Falkland Island FIQQ 1ZZ

Falkland Islands: Waverly Law 56 John Street, Stanley

INVESTMENT ADVISERS

Quilter Cheviot Limited The Pinnacle, 73 King Street, Manchester, M2 4NG

AUDITOR

Azets Audit Services 2nd Floor, Regis House, 45 King William Street, London, EC4R 9AN

ACCOUNTANTS Bluegrass Accounting 1 Barrack Street, PO Box 725, Stanley

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FALKLANDS CONSERVATION \ Report of The Trustees

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Trustees’ responsibilities in relation to the financial statements

The trustees (who are also directors of Falklands Conservation 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 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to

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• ¢ select suitable accounting policies and then apply them consistently: e observe the methods and principles in the Charities SORP: ° make judgements and estimates that are reasonable and prudent: e state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements:

• ¢ prepare the accounts 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 adequate 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.

• In so far as the trustees are aware: e there is no relevant audit information of which the charitable company’s auditor is unaware. and e the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Auditors A resolution for the re-appointment of Azets Audit Services as auditors to the charitable company will be submitted to the Annual General Meeting.

This report has been prepared in accordance with the Statement of Recommended Practice: ‘Accounting and Reporting by Charities’ and in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to smaller entities.

Signed on behalf of the Trustees:

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Tom Blake, FC Chairman Board of Trustees Date’ | 2 /1 2/2 S

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FALKLANDS CONSERVATION Independent Auditors’ Report To The Members

Opinion

We have audited the financial statements of Falklands Conservation (the ‘charitable company’) for the year ended 30 June 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

• In our opinion, the financial statements:

• e give a true and fair view of the state of the charitable company’s affairs as at 30 June 2025 and of its incoming resources and application of resources, for the year then ended;

• e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• e have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• e the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• e the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• e the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• e the directors’ report included within the trustees’ report have/has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

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Independent Auditors’ Report To The Members

Matters on which we are required to report by exception (continued)

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• e adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• e the financial statements are not in agreement with the accounting records and returns; or e certain disclosures of trustees’ remuneration specified by law are not made; or e we have not received all the information and explanations we require for our audit; or e the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• e Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

• e Reviewing minutes of meetings of those charged with governance; e Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

• e Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• e Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

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Independent Auditors’ Report To The Members

Extent to which the audit was considered capable of detecting irregularities, including fraud (continued) Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

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John Howard (Senior Statutory Auditor) For and on behalf of Azets Audit Services Statutory Auditor 2" Floor, Regis House 45 King William Street London, EC4R 9AN Date (3 Decern\e, 2625

10

FALKLANDS CONSERVATION

Statement of Financial Activities

For The Year Ended 30 June 2025

	Notes	Unrestricted	Designated	Restricted	Total	Total
		Funds	Funds	Funds	2025	2024
		£	£	£	£	£
INCOME AND ENDOWMENTS
FROM
Donations and legacies	2	373,522	-	662,825	1,036,347	1,196,720
Other trading activities	3	120,983	-	7,527	128,510	119,699
Investments		95,960	-	-	95,960	75,000
Other income		152,917	-	-	152,917	181,618
Total income		743,382	-	670,352	1,413,734	1,573,037
EXPENDITURE ON
Raising funds		2,238	-	1,569	3,807	26,761
Charitable activities:
Conservation and research
		339,665	5,080	158,835	503,580	581,207
Education and community		415,150	6,208	194,131	615,489	710,365
Total expenditure	4	757,053	11,288	354,535	1,122,876	1,318,333
NET (EXPEDITURE) /INCOME
BEFORE NET GAINS		(13,671)	(11,288)	315,817	290,858	254,704
NET (LOSSES)/GAINS ON
INVESTMENTS	8	8,973	-	-	8,973	10,448
NET (EXPENDITURE) /INCOME		(4,698)	(11,288)	315,817	299,831	265,152
Transfers between funds	12	4,698	325,167	(329,865)	-	-
NETMOVEMENTOFFUNDS		-	313,879	(14,048)	299,831	265,152
Total funds at 1 July 2024		338,037	687,088	1,546,087	2,571,212	2,306,060
Totalfundsat30June2025	13	338,037	1,000,967	1,532,039	2,871,043	2,571,212

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities. The notes on pages 14 to 26 form part of these financial statements.

11

a

'

FALKLANDS CONSERVATION

Balance Sheet

As at 30 June 2025

.

	Notes		2025		2024
		£	£	£	£
FIXED ASSETS
Tangible assets	7		300,043		310,450
Investments	8		1,214,360		1,151,691
			1,514,403		1,462,141
CURRENT ASSETS
Stock	9	40,728		27,064
Debtors	10	8,163		130,320
Cash and cash equivalents		1,386,044		1,085,965
		1,434,935		1,243,349
CREDITORS
Amounts falling due within one year	1	(78,295)		(134,278)
NETCURRENT ASSETS		1,356,640			1,109.074
NETASSETS			2,871,043		2,571,212
FUNDS
Endowment Restricted	12.4 12.3		32,408 1,532,039		32,408 1,546,087
Unrestricted funds
Designated General	12.2 12.1		1,000,967 305,629		687 088 305,629
			2,871,043		2,571,212
TOTALFUNDS			——==		ee

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

The financial statements were approved by the Board of Trustees and Directors of the Association on AL LIZ/25............. and were signed on its behalf by:

Tom Blake Board of Trustees

The notes on pages 14 to 26 form part of these financial statements

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FALKLANDS CONSERVATION

Cash Flow Statement

As at 30 June 2025

----- Start of picture text -----
Notes 2025 2024
£ £
Cash flows from operating activities:
Cash generated from operations 16 285,865 135,390
Cash flows from investing activities:
Payments to acquire tangible fixed assets (28,051) (33,241)
Dividends and interest from investments 95,960 75,000
Purchases of marketable securities - -
Purchases of non-marketable securities (54,361) (46,231)
Movement in cash held in investments 569 61
capital account
Investments management fees 97 377
Net cash provided by investing
activities 14,214 (4,034)
Change in cash and cash equivalents in
the reporting period 300,079 131,356
Cash and cash equivalents at the
beginning of the reporting period 1,085,965 954,609
Cash and cash equivalents at the end of
the reporting period 1,386,044 1,085,965
----- End of picture text -----

The notes on pages 14 to 26 form part of these financial statements.

13

FALKLANDS CONSERVATION Notes To The Financial Statements

For the Year Ended 30 June 2025

1. ACCOUNTING POLICIES 1.1 Basis of preparation These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006; and the requirements of the Statement of Recognised Practice, Accounting and Reporting by Charities (effective 1 January 2015). The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets and the recognition of certain financial assets and liabilities at fair value. The financial statements are presented in sterling (£) which is also the functional currency for the charity. 1.2 Going concern After reviewing the charity’s forecasts and projections and taking into account the economic conditions (given inflation levels) and possible changes in trading performance, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements. 1.3 Judgements and key sources of estimation uncertainty Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under circumstances. The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements: Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. See note 7 for the carrying amount of the land and buildings, plant and equipment and motor vehicles, and note 1.10 for the useful economic lives for each class of assets. There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year. 1.4 Legal status The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. 1.5 Public Benefit

The charitable company meets the definition of a public benefit entity under FRS 102.

1.6 Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are unrestricted funds of the charity which the trustees have decided, at their discretion, to set aside to use for a specific purpose. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

14

FALKLANDS CONSERVATION Notes To The Financial Statements

For the Year Ended 30 June 2025

17 Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Income from donations including grants, subscriptions and gifts is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Grants include amounts received from the Falkland islands Government for core funding and other specific projects, together with grants from other bodies in response to applications or appeals.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity in circumstances in which it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. It is included when the amount can be measured reliably.

1.8 Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

• e Costs of raising funds include those costs incurred in attracting voluntary income.

• e Expenditure on charitable activities includes those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose

1.9 Allocation of support and governance costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative costs. They are incurred directly in support of expenditure on the objects of the charity.

Support and Governance costs have been allocated across the charitable activities using various percentage allocations.

1.10 Fixed assets Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: Plant and Equipment — 25% Straight line Motor Vehicles — 25% Straight line

It is the policy of the trustees to maintain freehold property, which is held for charitable use, in such condition that the useful economic life is considered to be in excess of fifty years from the balance sheet date. In the opinion of the trustees this policy results in the estimated residual value of the property being not less than its carrying value in the accounts. Consequently any depreciation charged on the buildings element of the property is deemed to be immaterial and no depreciation is charged on the property. The property is carried in the accounts at original cost to the charity.

15

FALKLANDS CONSERVATION Notes To The Financial Statements

For the Year Ended 30 June 2025

1.10	Fixed assets (continued)
	Equipment purchased as part of projects financed by restricted funds is to be expensed to the project
	until the completion of the project. Upon completion of the project, a decision is to be taken as to whether
	the equipment should be returned to the donor, stored for later use, sold or disposed of.
	Where land is purchased with a view of it being held and restored the land is impaired to a nominal value
	of £1.
1.11	Investments
	Investments are recognised initially at fair value which is normally the transaction price excluding
	transaction costs. Subsequently, they are measured at fair value with movements recognised in ‘net
	gains/(losses) on investments’ in the SOFA, if the shares are publicly traded or their value can otherwise
	be measured reliably. Investments in unquoted equity instruments whose fair values cannot be
	measured reliably are measured at cost less impairment.
1.12	Stocks
	Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete
	and slow moving items.
1.13	Debtors
	Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the
	amount prepaid. Accrued income is measured at the amount due to be received.
1.14	Cash and cash equivalents
	Cash at bank and cash in hand includes cash and short term highly liquid investments with a short
	maturity ofthree months or less from the date ofacquisition or opening of the deposit or similar account.
1.15	Creditors
	Creditors are recognised when there is a present obligation resulting from a past event that will probably
	result in the transfer of funds to a third party and the amount due to settle the obligation can be
	measured or estimated reliably.
	Other creditors and accruals are recognised at their settlement amount due.
1.16	Employee benefits
	When employees have rendered service to the charity, short-term employee benefit to which the
	employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for
	that service.
1.17	Financial instruments
	The charity only has assets and financial liabilities of a kind that qualify as basic financial instruments.
	Basic financial instruments are initially recognised at transaction value and subsequently measured at
	their settlement value with the exception of bank loans which are subsequently measured at amortised
	cost using the effective interest method.
1.18	Foreign currency
	Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at
	the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on
	the date of the transaction. All exchange differences are reflected in the Statement of Financial Activities.
1.19	Taxation
	The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act
	2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
	Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received
	within categories covered by Chapter 3 Part Il Corporation Tax Act 2010 or Section 256 of the Taxation
	of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to
	charitablepurposes.

16

FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2025

2.	DONATIONS AND LEGACIES
		Unrestricted	Restricted	2025	2024
		E	£	£	£
	Grants, donations and gifts (note 2.1)	340,141	662,146	1,002,287	1,181,223
	Legacies Subscriptions	19,237 14,144	- 679	19,237 14,823	- 15,497
		373,522	662,825	1,036,347	1,196,720

In 2024, £898,338 of the income received from grants, donations, legacies and subscriptions was attributable to the restricted fund, and the remaining £298,382 was attributable to the unrestricted fund.

• 2.1 RESTRICTED GRANTS, DONATIONS AND GIFTS The following grants, donations and gifts in excess of £5,000 have been received in the year (note 12.3):

• £

• a) Darwin Initiative 179,748 b) Dep of Environment, Food & Rural Affairs 138,909 c) Stephen Robert Spring Fund 96,265 d) EPD 45,780 e) Fidelity Charitable Fund 36,354 f) John Ellerman Foundation 65,050 g) RSPB 31,000 h) ACTIF 28,777 i) University of Washington 22,835 i} Detroit Zoo 5,294 k) Hurtigruten 5,099 l) Other less than £5,000 7,713

662,825

3.	INCOME FROM OTHER TRADING	ACTIVITIES
		Unrestricted	Restricted	2025	2024
		£	£	£	£
	Sale ofgoods and publications	95,853	7,527	103,380	95,236
	Accommodation income	25,130	-	25,130	24,463
		120,983	7,527	128,510	119,699

In 2024, £43,720 of the income received from trading activities was attributable to the unrestricted fund.

17

FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2025

1. ANALYSIS OF RESOURCES EXPENDED

	Staffcosts		Directcosts	Directcosts	Support costs	Total	2024
	£		£		£	£	£
	(note 6)				(note 4.1)
Cost of generating funds:
Costs ofgenerating voluntary income		.		°		°	21,633
Cost offundraising trading					3,807	3,807	5,128
Charitable activities:
Conservation and research	252,924		27,658		222,998	503,580	581,207
Education and community	309,130		33,805		272,554	615,489	710,365
Total resources expended	562,054		61,463		499,359	1,122,876	1,318,333
All costs are allocated between the expenditure categories noted above on a basis						designed to	reflect the use
of the resource. Costs relating to	a particular	activity are allocated directly, others are apportioned on an
appropriate basis, for example, time	spent, per capita or floor area.
In 2024, £520,232 of the resources	expended was		attributable	to	staff costs, £96,429 to direct		costs and the
remaining £701,672 was attributable to support costs. Of the total £1,318,333; £695,571 was attributable to the
restricted fund, £22,495 was attributable to the designated fund				and the remaining £600,267 was			attributable to
the unrestricted fund.
SUPPORT COSTS
						2025	2024
Unrestricted			Restricted		Designated	TOTAL	TOTAL
	£		£			£	£
Subscriptions	2,238		1,569		-	3,807	2,217
Rent	-		-		-	-	-
Property & Maintenance	45,359		1,548		-	46,907	134,965
General Recruitment	8,256 994		59,372 12,200		15 -	67,643 13,194	13,604 1,643
Training	1,394		408		-	1,802	2,648
Volunteer Costs	-		-		-	-	-
Professional fees	464		140,211		10,333	151,008	282,232
Telephone costs	9,663		632		70	10,365	10,334
Postage & office consumables	10,630		-		-	10,630	15,881
Computer, website & hardware	39,347		-		-	39,347	18,919
Equipment & Furniture	535		25,929		41	26,505	69,699
Insurance	11,196		1,928		-	13,124	15,183
Travel costs	18,928		49,724		1,540	70,192	84,503
Motor vehicle costs	14,979		67		-	15,046	18,732
Subsistence	-		-		-	-	-
Meeting Expenses	-		-		-	-	-
Depreciation and impairment	11,287		-		-	11,287	9,189
Conservation activity	91		570		-	661	715
Governance costs:
Audit & Accountancy costs	17,175		-		-	17,175	18,308
Management fees	666		-		-	666	439
Bank charges	-		-		-	-	2,461
	193,202		294,158		11,999	499,359	701,672

All costs are allocated between the expenditure categories noted above on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis, for example, time spent, per capita or floor area.

In 2024, £520,232 of the resources expended was attributable to staff costs, £96,429 to direct costs and the remaining £701,672 was attributable to support costs. Of the total £1,318,333; £695,571 was attributable to the restricted fund, £22,495 was attributable to the designated fund and the remaining £600,267 was attributable to the unrestricted fund.

• 4.1 SUPPORT COSTS

Restricted support costs represent expenditure incurred on projects.

18

FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2025

• 5 NET INCOME/(EXPENDITURE) FOR THE YEAR

5	NET INCOME/(EXPENDITURE) FOR THE YEARTHE YEARYEAR
		2025	2024
	This is stated after charging:	£	£
	Auditors’ remuneration:
	- for audit	9,650	9,250
	- for other services	3,875	3,750
	Depreciation	11,288	9,188
	Impairment	-	(4,533)
6	ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES
	AND THE COST OF KEY MANAGEMENT PERSONNEL
		2025	2024
		£	£
	Wages and salaries	530,482	494,913
	Social security costs	17,699	16,816
	Pension costs	13,873	8,503
		562,054	520,232
	The average number ofemployees during the yearwas as follows:	2025	2024
		No.	No.
	Averagenumber	14	15

Employee time has been allocated to the charitable activity based on a percentage over all the costs.

No employees receive employee benefits (excluding employer pension costs) of more than £60,000 in either the current or prior year.

The key management of the charity comprises the Chief Executive, Technical Administrative Officer and Conservation Manager. The total employee benefits of the key management personnel for the year were £159,903 (2024: £155,574).

Trustees receive no regular remuneration. However, in accordance with the Articles, they may be remunerated under certain circumstances. No trustees were remunerated in either year.

During 2025, none of the trustees was reimbursed for travel costs (2024: None).

1. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
	Land and	Plant and	Motor
	Buildings	Equipment	Vehicles	Total
COST	£	£	£	£
At 1 July 2024	1,368,687	161,920	69,218	1,599,825
Additions Disposals	- -	6,151 (1,269)	21,900 (25,900)	28,051 (27,169)
	1,368,687	166,802	65,218	1,600,707
DEPRECIATION
At 1 July 2024	1,130,318	129,340	29,718	1,289,376
Charge for the year	-	8,550	2,738	11,288
Impairment	-	-	-	-
Eliminated on disposal	-	-	-	-
	1,130,318	137,890	32,456	1,300,664
NET BOOK VALUE
At 30 June 2025	238,369	28,912	32,762	300,043
At30June2024	238,369	32,581	39,500	310,450

19

FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2025

1. TANGIBLE FIXED ASSETS- continued

Land and buildings includes land at a cost of £100,000.

Land and buildings also include land and buildings on New Island. These were valued at £1 as the intention of the Charitable Company is to preserve the island and not to sell on. During financial year 2021-2022, Pebble and Government Islets were purchased and land was also valued at £1 as the intention of the Charitable Company is to preserve the island and not to sell on.

Additionally, land and buildings includes £32,408 representing the following Islands and land holdings:

Cat Island	The Twins (North and South)	Hawks Nest Pond
Rookery Ship	Motley Island The Mot
Beef	Sal Island
Coffin North	Pyramid Island Centre Island
Saddle	Outer Island
Cliff Knob Island	Double Island
LandsendBluff	MiddleIsland

The charity owns a piece of land to the rear of 44 Waverley Road, Reading as the result of a bequest from Mrs Joan Ann Kenneally (deceased). It is recorded by the Land Registry under number BK130021 and in 2011 was valued at £400-£500. However, the legal costs of disposal are likely to exceed the value of the land itself so it is noted in these accounts as of no value. (Note: This land was formerly held jointly together with the National Birds of Prey Trust. However, during 2016 the National Birds of Prey Trust was wound up and the land came into the exclusive ownership of Falklands Conservation, this change being effective from 17 August 2016.)

8. INVESTMENTS

INVESTMENTS
	2025	2024
	£	£
At market value:
Balance at 1 July 2024	1,151,691	1,095,450
Additions Disposal Revaluation	- - 8,973	- - 10,448
Cash held in investment portfolio	(569)	(61)
Interest reinvested	54,362	46,231
Management fees	(97)	(377)
Transfer from cash	-	-
Market value at 30 June 2025	1,214,360	1,151,691
Costat30June2025	1,018,775	1,018,775

The Charity’s investment in the following represents more than 5% of the total investment portfolio as at 30 June 2025:

	COIF	£820,441
	Flagstone	£274,139
9.	STOCKS
		2025	2024
		£	£
	Goodsforresale	40,728	27,064

20

FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2025

10. DEBTORS
					2025	2024
					£	£
Trade debtors					2,071	119,334
Other debtors					610	610
Prepayments and accrued income					5,482	10,376
					8,163	130,320
11. CREDITORS: Amounts falling		due within	one year
					2025	2024
					£	£
Trade creditors					25,981	15,951
Other creditors					-	2,523
Deferred income					-	65,050
Accruals					52,314	50,754
					78,295	134,278
12. STATEMENT OF FUNDS
Unrestricted Funds		Balance at 30June	Incoming Resources	Resources Expended,	Transfers	Balance at 30June
		2024		Gains & (losses)		2025
12.1 General Fund		£	£	£	£	£
General Account		305,629	743,382	(757,053)	13,671	305,629
Island Nature Reserves(note 12.4)		32,408	-	-	-	32,408
		338,037	743,382	(757,053)	13,671	338,037
12.2 Designated Funds		£	£	£	£	£
Fixed Asset reserve		204,901	-	(11,288)	-	193,613
New Building fund		238,768	-	-	117,167	355,935
Whale Project support		-	-	-	10,000	10,000
Remote working		7,743	-	-	-	7,743
Vehicle replacement fund		66,119	-	-	16,000	82,119
Peatland/Carbon Capacity Fund		17,789	-	-	-	17,789
NI Restoration work development		111,768	-	-	-	111,768
Marine role		40,000	-	-	-	40,000
Terrestrial Officer		-	-	-	35,000	35,000
Seabird Officer		-	-	-	60,000	60,000
Prion work		-	-	-	15,000	15,000
Mount Usborne Management		-	-	-	10,000	10,000
The Falklands Strategy support	Environment	-	-	-	32,000	32,000
Spider work		-	-	-	30,000	30,000
		687,088	-	(11,288)	325,167	1,000,967
		1,025,125	743,382	(768,341)	338,838	1,339,004

The Fixed Asset Reserve is equal to the net book value of the charitable company's non-endowed fixed assets (i.e. the net book value of £300,043 less endowments worth £32,408. See Note 7).

21

FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2025

12.3 Restricted Funds

		Balance at	Incoming	Resources	Transfers &	Balance at
		1 July	Resources	Expended	Impairment	30June
		2024	(note 2.1)		Charges	2025
		£	£	£	£	£
	PROJECT FUNDS
210	Annual Seabird Monitoring	36,351	40,879	(21,602)	(24,620)	31,008
212	An Inventory ofBryophytes and Lichens	3,962	7	.	(3,962)	7
217	Hydrocarbon Policy Framework	1,433	-	-	(1,433)	-
228	Sei Whales Falkland	1,591	-	(49)	-	1,542
268	Eller Hill Areas	107,160	65,050	(32,150)	(33,000)	107,060
276	DZS MoU Activities	2,014	5,294	(7,081)	(227)	-
287	Marine Conservation Officer	36,322	-	-	(9,370)	26,952
290	Falklands National Herbarium	150	-	-	(150)	-
298	FC Reserve Management	16,051	58,760	(92)	(275)	74,444
303	Propagation Booklet	2,750	-	-	-	2,750
308	Springcreek Habitats	42,769	36,354	(1,635)	(59,773)	17,715
350	DEFRA Carbon	75,795	141,229	(138,933)	(23,986)	54,105
355	Darwin Whale Satellite Tracking	6,153	25,042	(27,728)	(3,467)	-
356	ESBMatch Funding-Cetacean Project	5,000	500	(1,078)	.	4,422
370	Oiled Seabird Rehabilitation Facility	581	7	(632)	54	7
372	FCOComms Funding	4,246	-	-	-	4,246
375	FCOSalmon Farming Equipment	4,087	7	(1,087)	.	7
381	Darwin Fire Contingency	-	-	(1,206)	1,206	-
394	ESB Burrowing Seabirds	224	8,050	(3,931)	(3,376)	967
407	RSPB Annual support	28,625	31,000	(25,330)	(32,500)	1,795
439	FC Restoration Project	3,807	38,505	(55)	-	42,257
440	Contingency Restoration Funds	400,000	-	-	82,076	482,076
443	Actif Invasive Restoration Readiness	.	28,777	.	.	28,777
448	Darwin Pebble Islets	26,872	72,294	(12,889)	(63,175)	23,102
449	ore Pepble IsletsMatching	7	.	(131)	5,000	4,869
477	Darwin Local Biodiversity monitoring	3,160	-	-	-	3,160
486	Darwin NI Restoration	11,195	3,000	(12,772)	(1,423)	-
499	Darwin Conserving Cetaceans	-	82,412	(31,787)	(44,746)	5,879
500	NOAA Satelite Tracking	(245)	22,835	(6,816)	(12,695)	3,079
501	RIB Boat Tracking	-	-	(9,894)	7,280	(2,614)
502	SRW Tagging	-	-	(456)	-	(456)
701	New lsland	81,384	-	-	(81,384)	-
		898,437	659,981	(337,334)	(303,949)	917,135

22

FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2025

12. STATEMENT OF FUNDS (continued)

NON-PROJECT FUNDS
WATCH Group	12,122	10,371	(3,233)	(773)	18,487
Building for the Future Appeal	606,273	-	(13,968)	4,112	596,417
New Island Land and Buildings	29,255	-	-	(29,255)	-
	647,650	10,371	(17,201)	(25,916)	614,904
	1,546,087	670,352	(354,535)	(296,865)	1,565,039

The following restricted funds were held at 30 June 2025:

210 ESB FISMP

Funded by FIG’s Environmental Studies Budget for Biodiversity Monitoring, this long-term project annually monitors the survival rates of southern rockhoppers, gentoo and king penguin populations, together with blackbrowed albatrosses and southern giant petrels.

212 An inventory of Falkland Islands Bryophytes and Lichens.

Funds remaining from the Darwin Plus project to support legacy elements to address critical knowledge gaps of lower plants diversity in the Falkland Islands, and to provide conservation tools for local decision making. Funds have been used in year 24-25,

217 RSPB Hydrocarbons Policy Frameworks

Funds from the RSPB to provide additional resources to initiate policy processes to enable sustainable, positive hydrocarbon development in the Falkland Islands. Funds have been used in year 24-25.

228 Darwin Whale Project

Funds belonging to a match funding are due to be used for Cetacean work..

268 Ellerman Mountain Areas

Funds to reassess the Important Plant Area status of two West Falkland Mountain areas and to utilise this data to facilitate the designation of one as the Falkland Islands first National Park and the other as a potential agricultural set-aside at rates based of a quantitative assessment of Falkland Island land-values.

276 DZS MoU Activities

Restricted fund created to track activities from Detroit Zoo as part of our MoU agreement.

287 Marine Conservation Officer

Partly funded by the RSPB with match funds from Falklands Conservation to support marine management planning. The remaining funds include a Marine Officer for the Organisation, technical consultancy costs to draw on legal or fisheries consultants, and time from Falklands Conservation’s Communications Officer to develop a structured communication, engagement plan and materials.

290 Falklands National Herbarium

Funds to be used for housing our National Herbarium within our proposed new office building, which is currently held in 40 Jubilee Villas. Funds have been used in year 24-25.

298 FC Reserve Management

A fund to be used for the management of Falklands Conservation’s nature reserves and for future reserve purchases.

303 Propagation Booklet

Funds to create a propagation Booklet to engage community members to have a go at growing native plants for recreation and ecological restoration.

23

FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2025

12. STATEMENT OF FUNDS (continued)

308 Springcreek Habitats

Funded by Springcreek Conservation to undertake multimedia promotion of planting efforts as well as provide opportunity for the Watch Group to get a greater understanding of habitat restoration through planting trips.

340 WATCH Group

Supported by the Standard Chartered Bank and Springcreek Habitats, this environmental group for young Islanders allows them to experience and learn the value of their unique natural surroundings.

350 DEFRA Falkland Peatland greenhouse gas (GHG) project

Funds from DEFRA applied for the development of a comprehensive dataset on Falkland peatland GHG emissions, carbon sequestration rates, peat formation/loss and soil erosion. Including completion of a feasibility study for carbon offsetting to take place on the Falkland Islands.

355 Darwin Advancing Falklands and region-scale management of globally important whale populations.

Recovering populations of southern right whales and endangered sei whales occur around the Falklands. Informed management decisions are hindered by lack of knowledge of their local and region-wide occurrence. This project uses telemetry to track individual whales, and boat/aerial surveys to address data gaps on distribution, abundance, and ecology. Management outputs include a draft Species Action Plan, Key Biodiversity Area assessment, and recognition of Falklands’ whale populations by regional regulators. Community and stakeholder engagement will optimise support of management recommendations. Project finished in year 24-25.

356 ESB Match Funding — Cetacean Project

Funds provided by Environmental Studies Budget as Match funding support to the Darwin: Advancing Falklands and region-scale management of globally important whale populations.

361 Building for the Future Appeal

The charity has an aspiration to build a new, fit-for-purpose office building in Stanley. Fundraising has been going on for several years and during the period there was a tremendous boost with a restricted gift of £375k from the HB Allen Foundation.

370 Penguin Rehab Centre

A fund established with support from numerous sources both within and outside of the Falklands, to aid the construction, maintenance and running of a small-scale oil-spill response centre for wildlife in the Islands.

372 FCO Comms Funding

Funded by the FCO this project aims to encourage the younger generation to engage Falkland Island decision makers about environmental governance, and in particular their plans for management of the natural environment.

375 FCO Salmon Farming Equipment

Funded by the FCO the aim of this project is to provide for equipment that will allow the Watch Group to learn about aquaculture and how they perceive it impacting the Falkland Islands. Project finished in year 24-25.

381 Darwin Fire Contingency

Funds from Darwin to source and purchase fire equipment for distribution to islands and maintain a rapidresponse equipment-hub for mobilization in case of a wildfire. Project finished in 24-25.

407 RSPB Annual support

Annual Partner support from RSPB to continue the development of Falklands Conservation to achieve their key objectives.

24

FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2025

12. STATEMENT OF FUNDS (continued)

439 FC Restoration Project

Funds from Falklands Conservation to support New Island Restoration Project.

440 Restoration Funds Contingency

Funds created by HB Allen fund, FC Reserve Management fund and New Island funds, to support the application for a fund to cover the New Island restoration efforts.

448 Darwin Pebble Islet

Fund to undertake environmental restoration activities on four island Private Protected Areas including habitat restoration of Pebble Islet through tussac planting, threatened plant conservation on Motley and Middle Islands and Cobb’s Wren reintroductions following island rat-eradications.

477 Darwin Local Biodiversity Monitoring

Fund to facilitate the adoption of the Responsible Wool Standard sustainable farming model in the Falkland Islands through providing outreach guidance manuals on undertaking biodiversity monitoring, writing a Farm Biodiversity Management Plan and conducting practical workshops on monitoring and plant identification. Funds remaining belong to a match-funding for the project.

486 Darwin NI Feasibility Restoration

Funded by Darwin Plus, this project would complete preparatory technical steps necessary for a potential four species eradication programme and engage the Falkland Islands Government and community to secure support for New Island's long-term restoration.

500 NOAA Right Whale Satellite tracking

Funds from NOAA to be used on the deployment of satellite transmitters on southern right whales and on followup efforts to located tagged individuals off the Falkland Islands

501 RIB Boat Tracking

Restricted funds created to track usage of the RIB Boat through other projects.

502 SRW Tagging

Funds from NOAA and the Office of Naval Research to be used for the deployment of satellite transmitters on southern right whales and on follow-up efforts to locate tagged individuals off the Falkland Islands as part of the Alex Zerbini led collaborative project.

701 New Island

Funds originally provided through the Merger between New Island Conservation Trust (NICT) and Falklands Conservation, for the conservation and management of New Island. Funds have been re-allocated for New Island conservation purposes in 24-25.

701 New Island Land and Buildings

Land and Buildings provided through the Merger between New Island Conservation Trust (NICT) and Falklands Conservation, for the conservation and management of New Island.

25

FALKLANDS CONSERVATION

Notes To The Financial Statements

For the Year Ended 30 June 2025

12.4	Capital	Endowment Fund	Balance at
			30 June
			2025
			£
	Islands	NatureReserves	32,408

The above capital fund was created in the old charity in 1995, from donations received and was utilised to purchase certain freehold land, and the islands listed in Note 7 with the exception of Hawk's Nest Pond which was donated separately at a later date. The balance was transferred in 2001 from the old charity to the new charitable company, Falklands Conservation, following the transfer of legal title.

1. ANALYSIS OF NET ASSETS BETWEEN FUNDS

			Other Net
	Fixed Assets	Investments	Assets	Total
	£	£	£	£
Endowment Funds	32,408	-	-	32,408
Restricted Funds	-	-	1,532,039	1,532,039
Designated Funds	267,635	-	733,332	1,000,967
General Funds	-	1,214,360	(908,731)	305,629
	300,043	1,214,360	1,356,639	2,871,043

1. RELATED PARTIES

There were no related party transactions in either the current or the prior year.

1. ULTIMATE CONTROLLING PARTY

The charitable company is considered to have no ultimate controlling party.

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

			2025	2024
			£	£
Net income for the reporting	period	(as per the statement of
financial activities)			299,831	265,152
Adjustments for:
Depreciation charges			11,288	4,655
Dividends and interest from investments			(95,960)	(75,000)
Losses/(gains) on investments			(8,973)	(10,448)
(Gain)/loss on sale offixed assets			-	3,520
Impairment offixed assets			27,169	4,533
(Increase)/decrease in stocks			(13,664)	(3,796)
(Increase)/decrease in debtors			122,157	(66,136)
Increase/(decrease) in creditors			(55,983)	12,910
Netcashprovidedbyoperating	activities		285,865	135,390

SUBSEQUENT EVENTS

There have been no subsequent events.

26