2021-03-31-accounts

PMLI Plymouth Marine Laboratory Plymouth Marine Laboratory IA company limited by guarantee) Annual Report and Financial Statements Year Ended 31 March 2021 Company registration number.. 4178503 Charity registration number.. 1091222

Plymouth Marine Laboratory Contents Reference and Administrative Details 1 to2 Trustees, Report 310 15 Statement of Trustees, Responsibilities 16 Independent Auditors, Report 171020 Consolidated Statement of Financial Activities 211022 Consolidated Balance Sheet 23 Balance Sheet 24 Consolidated Statement of Cash Flows 25 Notes to the Financial Statements 261057

Plymouth Marine Laboratory Reference and Administrative Details Chaimian Admiral Sir J Burnell-Nugenl KCB, CBE Directors and Trusteos Admiral Sir J Bumell-Nugenl KCB, CBE N J Godefroy Prof T D Jickells OBE Dr B MacKenzie Prof R F Rayner J E Timberlake ProfB B Ward M J Butcher N B Buckland OBE P R James Patron James Cameron filmmaker explorer, environmenlalisl and renowned Senior Management Team Prof J l Allen, Chief Executive B K Tremain, Director of Operations & Company Secretary Prof S Widdicombe, Deputy Chief Executive & Director of Science S Coughlin, Head of Financial Services J Davy, Head of Human Resources T Smyth, Head of Science Principal Office Prosped Place The Hoe Plymouth PL1 3DH The charity is incorporated in England and Wales. Pag8 1

Plymouth Marine Laboratory Reference and Administrative Details Company Reglstratlon Number 4178503 Charity Registration Number 1091222 Solicitors Fool Anstey LLP Sall Quay House 4 North East Quay Sullon Harbour Plymouth PL4 OBN Bankors HSBC Bank PIC Plymouth City Centre 4 Old Town Street Plymouth PL1 1DD Investment Managers Brewin Dolphin Ltd Vantage Point Woodwater Park Pwes Hill Exeter EX2 5FD Auditor PKF Francis Clark North Quay House Sullon Harbour Plymouth PL4 ORA Pag8 2

Plymouth Marine Laboratory Trustees. Report The trustees, who are directors for the purposes of company law, present the annual report together with the finanryal statements of the charitable company for the year ended 31 March 2021. Trustees Admiral Sir J Burnell-Nugent KCB, CBE N J Godefroy Prof T D Jickells OBE Dr B MacKenzie Prof R F Rayner J E Timberfake Prof B B Ward M J Butcher lappoinled 13 May 20201 N B Buckland OBE P R James lappoinled 28 January 20211 OBJECTIVES & ACTIVITIES PML'S mission is to pursue research excellence, enhancing ils position as a world leader in the field of marine science to support ils vision of a healthy and sustainable ocean through the delivery of impacttul, cutting edge environmental and social science. PML'S vision is sel in the context of the United Nations, Sustainable Development Goals ISDGSI and the "double decade. of action.. The Decade of Ocean Science for Sustainable Development, and The Decade of Ecosystem Restoration" PML'S strategy 12020-20251 launched on World Oceans Day 2020, sets out its strategic aims collated under four strategic priorities as follows.. 11 Science Excellence & Impact-. PML will continue lo deliver its internationally recognised world-leading expertise focused on five new Science to Impact challenges.. Understand and mitigate climate change Improve sustainability of fisheries and aquaculture Encourage cleaner seas for nature and society Combat biodiversity loss Develop marine autonomy, technology and digitlZ8tion 21 Businos¥ Excg11on¢g= ensuring PML is an effective, efficient and sustsinable business. 31 Social Responsibility.. engaging and supporting our internal and exlemal communities. 41 Environmental Responsibility.. PML has a duty lo lake a leadership role in environmental responsibility and to reduce the impact of its activities on the environment. Pag8 3

Plymouth Marine Laboratory Trustees. Report Ensuring Delivery of Objectives Regular reporting against each of the strategic priorities is undertaken on a quarterfy basis by the Chief Executive to the Board of Trustees, with a full review undertaken after the financial year end. New operating objectives mapped onlo each strategic priority are agreed at the beginning of each financial year. Specific operating objectives for this year in the light of the covid-19 pandemic included.. Maximise research project delivery for our customerslbeneficiaries, and to ensure financial suslainabilily Maintain and protect key long-term Scien￿ activities Deliver effective and strong communications intemally and extemally to all our stakeholders Provide health and wellbeing support for employees and students Undertake a net zero carbon implementation scoping study for PML building. The Trustees can confirm that they have referred lo the guidance provided by the Charity Commission, including the guidance 'public benefit- running a charity IPB21' when reviewing the aims and objectives of the Charity and in planning future aclivilies. The Trustees also give due consideration to how these activities contribute lo the aims and objectives sel. STRATEGIC REPORT FOR THE PURPOSES OF COMPANIES ACT 2006

ACHIEVEMENTS AND PERFORAIANCE Key Achievements for 2020-21 against spe¢ifi¢ objectives include: Objective Maximise research project delivery for our cuslomerslbeneficiaries, and to ensure financial sustsinability Achievement A plan was developed, trialled and fully implemented enabling laboratory and Ioc81 fieldwork to be resumed under covid-safe measures. The majority of research projects were able lo be progressed through remote working, meeting the requirements of our customerslbeneficiaries, and ensuring financial sustsinabilily. Through good planning and health and safely measures, regular sampling in the Western Channel Observatory was undertaken, hence maintaining this important time series to understand the marine ecosystem. Long-term experiments were also maintained. Maintain and protect key long-lerm science activities Deliver effective and strong communications externally to all our stskeholders PML'S communications team maintained a steady flow of news stories and social media lo engage with stskeholders. Advertising value equivalency for the year was £21.6M Igloball and £15.5M IUKI, a significant increase on the previous year. Pag8 4

Plymouth Marine Laboratory Trustees. Report Provide health and wellbeing support for employees and students Significant effort went into ensuring our stsff and students were supported during the challenges of the pandemic and resultsnt lockdowns. A number of support mechanisms and schemes were implemented, including a helpline {exlernal provider), mental health awareness training, guidance, pulse surveys and a buddy system. An assessment against ISO 45001 (Health & Safety) concluded that PML had been trailblazing in ils handling of mental health during the pandemic. Thanks to funding from the Natural Environment Research Council INERCI a heavenergy feasibility study was undertaken, with a report containing various options produced in March 2021. A recommendation will be made lo the Board on options to pursue, and funding sources will be identified. In addition as a result of funding from the National Centre for Earth Observation, a solar panel inslallalion to offset carbon generated by a new micro-dalacentre has been commissioned. Undertake a net zero carbon implementation scoping study for PML building Other examples of PML'S performance, mapped against PML'S strategic priorities, are provided below.. Strate ic Priorit 1: Science Excellence & Impact Science Excellence.. Citation analysis, covering the period 2016-2020, shows 50/0 of PML papers were in the top 10/0 of the most cited environmental science papers in the world. Two of PML'ss¢ientisls, Prof. Pennie Lindeque and Dr Matt Cole, were named on the annual Highly Cited researchers list from Clarivate and more recently PML'S Dr Shubha Salhyendranalh and the late Prof. Trevor Platt FRS are shown amongst the worfd's top climate scientists (Reuters Hol Lisl} Prof. Nicola Beaumont was appointed to the Natural Environment Research Council INERCIScience Committee. NERC Research Excellence Framework assessment- PML was part of this exercise, which included other national Centres in receipt of NERC National Capability funding. PML scored more highly than any other Centre on the impact category, demonstrating the reach and significance of the impact from its research. All of the impact case studies provided by PML were judged to have outstanding or very considerable impact. The majority of PML'S research papers selected for submission were considered to be internationally excellent. Further information can be found here Ihtt s.'Ilwww. ml.ac.uklNews and medial Newslscience with im act at PMLI Pag8 5

Plymouth Marine Laboratory Trustees. Report New infrastructurelequipment.. Installation and commissioning of the state-of-the-art Massive GPU cluster for Earth Observation IMAGEOI.. funded by the NERC Earth Observation Dats and Acquisition and Analysis Service INEODAASI, MAGEO is an incredibly power computer applying artificial intelligence algorithms lo Earth Observation data lo support research on inter alia microplastic deleclion, habitat mapping and oil spills. Further information, including on how MAGEO supported covid-19 medical research efforts, can be found here Ihtt s.'Ilwww. ml.ac.uklNews and medialNewsl New ca abilit for develo environmental intel. PML was also successful in winning funding for a five-metre AutoNaut uncrewed surface vessel which is propelled by wave motion and powered by 300W solar panels, and four autonomous underwater robots which, together with existing infraslruclure and high speed atx)ve-waler communications (all part of Smart Sound Plymoulhl, will deliver an unprecedented understanding of the Western Channel off Plymouth. Plans are also under development to replace PML'S research vessel, the Plymouth Quest, with a more environmentally sustainable, vessel with innovative lincluding autonomoLJsI features. Science highlights.. PML researchers produced 181 peer-reviewed papers during this financial year of which 60 were firsl-aulhored. Some highlights from projects undertaken during the year are given below.. Plastics from S ace.. Research led lo the publication in April 2020 in Scientific Reports of a pioneering technique to delect plastics floating on the sea surface analysing data from the European Space Agency s Sentinel-2 satellites. Dr Lauren Biermann, who led the publishing of the method, has since won the Science category of the Ocean Awards 2021 lawarded by Blue Marine Foundation & BOAT Inlernationall. Further work is planned in this area. subject to obtaining funding. Plastics & Mussel Power.. a project funded by the Waitrose Plan Plastic, in partnership with environmental charity Hubbub, demonstrated the potential of mussels to help stem the flow of microplastics from polluted estuaries and coastsl water. paving the way for this nalure-based solution to be deployed outube.comlwalch?v-uCi4cVmZrlU. Further research into nalured-based solutions lo the problem of microplastics is essential. Marine Protected Areas.. PML researcher, Dr Angus Atkinson, co-authored a paper with scientists from China, the UK and ltsly, based on research supported by the Woddwide Fund for Nature IWWF} on °refuges" for Antarctic krill in the Indian and Pacific sectors of the Southern Ocean following habilal degradation in the Allanlic sector. Further research on the idenlificalion of key spawning grounds for Anlarclic krill, which are the primary food source lo many iconic species such as whales and penguins, is absolutely critical. Partnerships.. PML has progressed partnerships al the local, regional, national and international level, including with The University of Plymouth and the Marine Biological Association of the United Kingdom, through joints efforts as Marine Research Plymouth, lo improve interactions and visibility of Plymouth marine science, e.g. UN Decade of Ocean Science aclivilies., o With the University of Exeter and the Met offi￿ on the Joint Centre for Ex￿llen￿ in Environmentsl Intelligence, and With various inlemalional partners working towards events at the UN Framework Convention on Climate Change COP26 meeting in Glasgow in November 2021. Pag8 6

Plymouth Marine Laboratory Trustees. Report Strateglc Prlorlty 2: Buslness Excellence Operations Strategy 12020-20251 an overarching strategy for the Operations Team wasdeveloped, with a vision to provide excellent customer service at every level, meeting the requirements of PML'S stakeholders. Moderni5ation of IT platfomis.. PML'S IT Group accelerated the roll-out of Microsoft 365, which facilitated remote working for its staff and also engagement with users and beneficiaries of PML'S research. Industrlal & Academlc partnershlps.. PML, through its Smart Sound Plymouth initiative, has been involved in discussions with partners al the regional and national level on development of this testbed, including commercial opportunities for PML'S trading subsidiary. Quality Assurance.. PML has maintained certification to the Is09001 Quality Management Standard. Strategic Priority 3: Social Responsibility Equality> Diversity & Inclusion IEDII '. Good progress has been made in this area, including revision of PML'S EDI policy, setting out our commitments to deliver best pfficlice in line with the UN Sustsinable Development Goals lo redu￿ inequality and support gender equality. An LG8T+ Allies network was established to raise awareness and promote inclusivity and other inilialives have included unconscious bias training, and the promotion of intemalional equality events. PML is also seeking funding for an internship programme that will enable tslented students from less privileged backgrounds to gain valuable research experien￿ and help them to pursue a scientific career. Health & Safety.. PML has maintained certification to the IS045001 Health and Safely Management Standard. PML'S handling of covid-19 was commended and ils support of staff and students, mental health and wellbeing was described by the external assessor as trailblazing. Education.. Due to lockdown a "remote PhD Open Day" was successfully held in November for which a virtual lour of PML was produced. In the last year PML hosted 18 PhD students. PML has also continued to work with the Connect Academy Trust on the development of an ocean curriculum and funding is being sought for this important activity. PML'S apprenti￿Ship programme, which commenced in 2016, has been developed further, with ils ship apprenti￿ in her second year, and the recruitment of an IT apprenti￿. Strategic Priority 4.. Environmental Responsibility Improvements to buildings & estate.. PML has prodU￿d a biodiversity action plan and implemented a number of measures including the planting of native hedging and wildflower garden, and the introduction of bird boxes and feeding stations. Improvements to the building lo reduce PML'S carbon footprint have included the installation of solar panels and LED lighting. Aiming towards Net Zero Carbon.. PML has purchased sofbNare in order lo record our emissions under scope 1 (direct emissions from owned or controlled sources, scope 2 lindirecl emissions from the generation of purchased electricity, heating and cooling) and scope3 1811 other indirect emissions from our supply chain), and to lake mitigating actions lo reduce ils carbon footprint. The Trustees recognise the significant efforts and achievements of the staff during a most challenging year, and would like to thank them for their contributions. Page 7

Plymouth Marine Laboratory Trustees. Report FINANCIAL REVIEW 1. Results for the year Net income for the year amounted to £722k 12020 nel income - £687kl, £423k of which relates to the release of provisions against projects that have been completed in prior financial years. After adjusting for realised and unrealised investment gains, the nel movement in funds for the year amounted lo an income of £1,473k 12020.. income £463kl. The lotsl funds carried forward remain in a nel asset position of £8,024k12020.' funds carried forward - £6,553kl. PML was provided with a grant of £275k by UK Research & Innovation, supporting those projects affected by the pandemic. Due to this grant and its financial position overall, PML did not need lo make use of other government covid-19 financial support mechanisms provided to businesses. PRINCIPAL RISKS AND UNCERTAINTIES 1. Risk Management A risk management policy was developed and adopted by PML in its first year of operation and is reviewed annually by the Board. In addition, a comprehensive analysis of risks lo which PML is exposed was undertaken and systems identified and put in place to mitigate risk. Under the terms of the risk management policy, the Senior Management Team carries out a periodic evaluation of the risks, by way of a risk register. The Audit & Finance Committee also reviewed the risk register in detsil and presented to the Board those risks of greatest significance to PML. Principal risks and their mitigation are discussed by the Trustees on a regular basis. The principal risk and uncertainties faced by PML relate primarily lo the covid-19 pandemic. There has been some impact on research activities and hence consequential impact upon income. There have also been delays lo decisions by funding bodies, which cause uncertainty. However, a greater perceived risk from continued remote working caused by sustained periods of lockdown is that of stifling of creativity. With the ease of lockdown in the UK, the vaccination roll-out and PML'S plan for hybrid working, sufficient mitigation is in place to largely address this risk. However, the potential for covid variants and resulting lockdowns in the UK could still have impacts t)olh on research activities. income and creativity. A more immediate risk, which materialised in late March, is that of the UK govemment's cuts to the Official Development Assistance IODAI budget, which has led to the reduction of funding of certain research projects, resulting in an estimated loss of income lo PML in FY 2021-22 of £485k. Savings in science and operational budgets are being explored to mitigate these reductions, whilst oplimising funding opportunities elsewhere. A further risk from these reductions in funding could be that of reputation with our overseas partners. Page 8

Plymouth Marine Laboratory Trustees. Report 2. Reserves Policy A reserves policy was developed and adopted by PML in ils first year of operation and subsequenuy revised. The level of free reserves at the year end was £4,374k12020 £3,017kl. The reserves policy is reviewed annually by the Trustees lo ensure it is fit for purpose. The policy provided for the maintenance of general reserves (under unreslricled funds) at a level equivalent lo al least 3 months, expenditure, in order lo provide adequate working capital levels for the ongoing operation of PML and completion of existing projects. The policy was revised in July 2021 to provide for a level equivalent lo 6 months, expenditure. The reserves are set at a level to withstand any short- term setback, whether operational, in the investment markets, or in key sources of research income. If the free reserves should fall outside the level of 6 months, expenditure, the Trustees would review PML'S strategic plan accordingly. The policy also provides designated reserves lunder unrestricted funds), which are funds set aside lo assure that capital and other significant expenditure approved by the Trustees can be funded as required over the next 12-monlh period. Bank balances decreased over the year from £5.1 M lo £4.9M. There were £156k of funds held for partners. 3. Principal Funding Sources Income was derived principally from competitive research of £7.5M 12020.. £9.6MI from a variety of customers, linclLJding UK Research & Innovation IUKRII, the European Commission, the European Space Agency and Simons Foundalionl, including over £2M received from sub- contractors 12020..£4MI, and the UKRI-NERC National Capability funding, amounting to £3.6M 12020.. £3.8MI. This income has enabled PML lo undertake strategic and applied research, generating knowledge and publications, leading to impact, as well as carrying out the activities listed under Achievements and Performance. PML scientists have continued their success in tem)s of winning competitive research funding. New contracts won during the financial year were valued al £4.5M 12020= £4.9M}, with a further £276k under negoliationlsuccessful. In addition, NERC has provided c8pitsI funding of £700k for autonomous vehicles for the Smart Sound inilialive, as well as additional funding for other science equipment and greening inilialives. 4. Investment Policy PML'S investment policy was reviewed in March 2021. PML aims lo make investments that have a positive impact on environmental issues, whilst achieving the best financial return. PML'S intent is to only invest in sectors or companies that have a clear direction of travel lo zero carbon and have addressed their impact on the environment, as well as those companies that demonstrate a green investment policy and have a positive environmental approach. The portfolio of investments is managed by a professional asset management organisation approved by the Trustees. The assets within the managers, portfolio are held by professional custodians. The activities and performance of the investment managers are monitored through regular reporting to PML'S Audit & Finance Committee, which reports lo the Trustees. Page 9

Plymouth Marine Laboratory Trustees. Report 5. Trading Subsidiary PML'S trading subsidiary, PML Applications Ltd, reported an operating profit of £233k 12020.. £455kl, and generated £1.2M 12020.. £1.1MI of income for PML. A gift aid payment of £437k was made by PML Applications to PML in the financial year. Following careful consideration, the PML Board of Trustees agreed to accept a deferment of the repayment of the remaining balance of £100k of its loan lo PML Applications Ltd for a further year to provide the trading subsidiary with SLJfficienl wort(ing capital for future growth. FUNDRAISING POLICY PML'S approach to fundraising is lo target charitable foundations and Irusls. and corporations through their foundations. PML will not embark on fundraising from the general public, whether in person, through events or on-line. Any crowdfunding initiative will only be undertaken as part of a specific fundraising campaign or proposal for research project or capital funds. PML adheres lo the Fundraising Code of Practice. In the last year PML has adhered lo the requirements of the Code., there have been no complaints received regarding PML'S fundraising practices. PML'S complaint procedure is available at htl s.'Ilwww. ml.ac.uklS stem- eslLe al PLANS FOR FUTURE PERIODS PML'S plans for the future12021-22 financial yearl are as follows.. Increase the ex￿llence of PML'S science and impact Oplimise local partnership opportunities Prioritise PML'S inlemalional engagement lo maximise impact and visibility Enhance PML'S profile Develop and implement an effective and efficient hybrid working plan Progress Equality, Diversity an Inclusion (EDI} inilialives Pul in place a robust methodology system for carbon accounting for the adivities of PML Group. STRUCTURE, GOVERNANCE & MANAGEMENT Governing Document PML is a company limited by guarantee and registered as a charity with the Charity Commission. PML is governed by its Articles of Association adopted in July 2010 (following changes in both charity and company lawl and amended by special resolutions, most recently 30 April 2021 to reflect EDI language. Responsibility for the overall governance of PML rests with the Board, who are Trustees for the purposes of the Charities Act and Directors for the purposes of the Companies Act. Members of the charity comprise serving Trustees and the serving Chief Executive, each of whom undertakes lo contribute such amount as may be required (not exceeding £101 to PML'S assets in the event of PML being wound up. Appointment of Trustees As laid down in the Articles of Association, the Chair of the Trustees is appointed by the Trustees. Admiral Sir James Burnell-Nugent will be stepping down as Chair at the end of July 2021, having served a six-year term. The Board would like to thank him for his significant contribution to PML both as 8 Trustee and Chair. A new Chair, Janice Timbedake, has been elected and will take up her appointment from 1 August 2021, having previously served as a Trustee. Page 10

Plymouth Marine Laboratory Trustees. Report Trustees must retire after serving a period of five consecLJtive years, except where such Trustee has been invited, and has agreed lo serve, with the approval by resolution of the Trustees and of the members of the Charity, an additional period of office of not more than two years, or if the Trustee is elected as Chair, whereupon hislher term will be deemed to have recommenced. In exceptional circumstances, Trustees may continue beyond a seven-year period, subject lo approval by resolution of the Trustees and of a special resolution by the members of the Charity. During the year a rigorous review, in line with the requirements of the Charity Governance Code, was undertaken in relation to the renewal of a trusteeship beyond a seven-year period. PML has in place a policy and procedure on the appointment of Trustees. Recruitment of new Trustees is undertaken by the Board, led by the Chair, using a skills matrix lo detemine needs. When recruiting a new Trustee, the Board is mindful of the need lo ensure a balance of skills, background and diversity. For details on individual Board members, please see the relevant section on our website al ml.ac.ukl ovprnance Induction and Training of Trustees PML has in place policies on the induction and training of Trustees. New Trustees undergo an induction into PML, meeting other members of the Board of Trustees, as well as the Senior Management Team and staff lo learn about its governance, research, impact, financial performance and infraslruclure and also the wort( of ils wholly owned trading subsidiary, PML Applications Ltd. Two new Trustees were remotely inducted during the year. Each Trustee receives an induction programme, which is tsilored to suit the expertise of the Trustee and their role on the Board. As part of the formal induction programme, new Trustees re￿1ve a comprehensive induction pack containing various documents relating to PML and the duties of a Trustee, including key Charity Commission publications CC3 'The Essential Trustee" and the Charity G0Veman￿ Code the Articles of Association, PML'S Strategy, scien￿ Plan and Operating Plan, the most recent set of accounts, as well as various other policy documents. The Company Secretary has overall responsibility for the induction of Trustees. Where specific training is identified as necessary, then this is delivered intemally or through external providers, inclLJding attendance al seminars or conferences. During the year inductions were Carried out for Mark Butcher and Paul James. Evaluation of Board Performance Evaluation of Board performance is undertaken annually, with the last evaluation carried out in the summer of 2020. Results were reviewed and actions identified and progressed. It had been previously agreed by the Board that an extemal evaluation of Board performance would be considered in 2020. However, due to the covid-19 pandemic this has been deferred. Organisational Structure Board of Trustees The Board of Trustees, which can have up lo 11 members, is responsible for the g0veMan￿ of PML. The Board generally meets at least 4 times per year lor more frequently as required), receiving regular reports on the financial and management aspects of the organisalion, and to discuss strategic issues. Average attendance by Trustees over the last year al Board meetings was 980/.12020.. 940/.1. Sub-commillees In addition to the main Board, there are three principal sub-commillees as follows= Page11

Plymouth Marine Laboratory Trustees. Report Audit & Finance Committee.. Meets 2-3 limes per year and has delegated responsibility for ensLJring that PML has in place effective systems and methods of financial control and risk management and that il complies with all aspects of the law, relevant regulations and good practice. 11 also reviews PML'S investments and the performance of the Investment Manager. Trustee members during the reporting period were Nigel Godefroy (Chairl, Nick BLJckland and Paul James. Remuneration Committee.. Meets at least once per year to inter alia review staff annual pay and benefits and propose recommendations to the Board. Trustee members during the reporting period were Janice Timberlake Ichairl, and Dr MacKenzie. scien￿ Advisory Council.. Meets once per year lo review aspects of the Scien￿ portfolio. Trustee members are Profs. Rayner Ichairl, Jickells and Ward, as well as extemal members from the international science community. Each of the above commillees reports to the main Board on its activities, with minutes of meetings being made available lo Trustees and recommendations being presented. During the year the Board agreed to the estsblishmenl of an Innovation Committee which will hold its first meeting in June 2021. Ils purpose is lo provide strategic advice lo the PML Executive on connecting PML'S science and technology insights with customer needs, identifying innovation opportunities that might be commercially exploited through PML Applications Ltd. Senior Management Team The Chief ExecLJtive is given delegated aLJthorily for the day- l(hday operation, delivered through the Senior Management Team, including scientific, financial, health and safely, and employment related matters. The specific levels of authority are detailed in a statement of Delegated Authority. The Chief Executive reports regularly lo the Board on key aspects of PML'S perf0rrnan￿ as detailed above. Related Parties PML is eligible to bid for funding from UKRI, including from NERC. PML is designated a Delivery Partner for "National Capabilill, and receives this element of funding from NERC via the National Oceanography Centre, who manage marine National Capability on behalf of NERC. A staff loan agreement signed in 2002 as part of the transfer of ownership process from NERC to PML was novaled lo UKRI in 2018, hence there are a small number of UKRI employees working at PML. As a major funder of PML, NERC requested and PML agreed lo an observer attending PML Board meetings. This initiative is part of a wider process to put in place a strategic relationship agreement between PML and NERC. PML'S wholly owned subsidiary, PML Applications Ltd, was established to undertake more applied and commercial work and facilitate knowledge exchange. It may gift aid its profits to PML. In March 2021 PML Applications received payments of £73,800 against a contract placed by Qineliq PLC. The Chair of PML was a Director of Qineliq PLC until December 2020. PML has a Memorandum of Understanding with the University of Exeler, a joint appointment, and collaborates on a number of research projects and PhD studenlships. Page 12

Plymouth Marine Laboratory Trustees. Report PML has hosted the secretariat of the Partnership for Observation of the Global O￿an$ IPOGOI for eight years, providing accommodation and staffing for the secretariat under a formal agreement. In February 2017 POGO became a Charitable Incorporated Organisalion in the UK. Pay Policy for Senior Staff All of the Trustees (Direclorsl give of their time freely and no Trustee received remuneration during the year. Detsils of Trustees, expenses incurred in the course of their duties are disclosed under note 8. The Chief Executive's remuneration package is reviewed annually by the Board of Trustees who review benchmarking data from comparable sized charities, regional companies and from NERC Research Centres and assess performance against objectives set for the year. Of the remaining senior stsff (members of the Senior Management Team), one is a UKRI employee on loan to PML, as described under related parties, and hence fell under UKRI pay policies. Where a member of the Senior Management Team is a PML employee, remuneration is reviewed by the Remuneration Committee (see above) as part of the entire PML workforce's remuneration, with recommendations made to the Board of Trustees for its approval. Page 13

Plymouth Marine Laboratory Trustees. Report Going Concern and the impact of Covid-19 PML'S cash position las al 31 May 20211 is strong al £2.45M. PML has put in place covid-safely measures within its premises, such that rf there is a fLJrther wave of covid-19 and a consequential lockdown, it would not be adversely affected, i.e. laboratory and local seagoing artivities Can ¢onlinLJe, and hen￿ income can be claimed. Income forecasting has been undertaken which demonstrates that PML is likely to achieve a break-evenlsmall deficit position at the end of the financial year 2021-22, taking into account the recently notified government reduction in ODA funding as mentioned under Risk Management Key assumptions here are that our remaining funders (UK Research & Innovation IUKRII, EU, European Space Agency) will pay as per schedule. UKRI also provided an additional funding grant to support grants affected by covid-19, £98k of which has been sel aside to support UKRI funded grants held by PML in FY 2021-22. Current signed contracts sland al £22.5M, of which £9.9M has already been recognised up to 31 March 2021. The remaining £12.6M relates to projects which run over the next 3 financial years. Al year end the Trustees acknowledge that the net asset position was a relatively modest £704k current assets. They tske assurance from the fact that within current creditors is £4.3M of cash advances re￿iVed on competitive research conlracls. Due to the nature of this balance the Trustees have strong certainly that the majority can be earnl and released to income over the next financial year to fund staff costs and overheads. As at year end the charity also held an investment portfolio of £3.6M which as a last resort could be realised to fund any deficits that arise as a result of covid-19 or other loss of income. The Trustees believe that PML is a going ￿n￿M on the following basis.. Strong cash position as identified above. Principal funding sources are government backed. e.g. UKRI, the EU, European Space Agency. Strong signed contracts position. The company can meet ils short-temi debts. Strong resetves position In conclusion, there are no material uncertainties to cast doubl on PML'S ability to continue as a going concern. Page 14

Plymouth Marine Laboratory Trustees. Report Disclosurg of information to auditor Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware. The annual report was approved by the trustees of the charity on behalf by.. .9 July 2021.. and signed on its Admiral Sir J BLJrnell-Nugent KCB, CBE Chairman and Trustee Page 15

Plymouth Marine Laboratory Statement of Trustees. Responsibilities The Iruslees (who are also the directors of Plymouth Marine Laboratory for the purposes of company lawl are responsible for preparing the trustees. report and the financial statements in accordan￿ with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. Under company law the Iruslees must not approve the financial statements unless they are satisfied that they give a true and fair view of the stale of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial slatemenls, the Iruslees are required lo.. select suitable accounting policies and apply them consislenlly., observe the methods and principles in the Charities SORP-, make judgements and eslimales that are reasonable and prudent; stale whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., and prepare the financial stslemenls on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Iruslees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy al any time the financial position of the charitable company and enable them lo 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. Approved by the trustees of the Charity on . .9 July 2021............ and signed on ils behalf by.. Admiral Sir J Burnell-Nugent KCB. CBE Chaim)an and Trustee Page 16

Plymouth Marine Laboratory Independent Auditor's Report to the Members of Plymouth Marine Laboratory Opinion We have audited the financial statements of Plymouth Marine Laboratory (the 'charitsble parent company'l and its subsidiaries Ilhe 'group'l for the year ended 31 March 2021, which comprise the Consolidated Statement of Financial Aclivilies, Consolidated Balance Sheet, Balance Sheet, Consolidated Ststemenl of Cash Flows and Notes to the Financial Ststemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. and applicable law Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the stale of the group's and parent charity's affairs as al 31 March 2021 and of the group's results for the year then ended., have been property prepared in accordan￿ with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemalional Standards on Auditing IUKI IISAS IUKII 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 group in 8ccord8nce with the elhic81 requirements Ih8t 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 8ccord8nce with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide 8 basis for our opinion. Use of our report This report is made solely to the charitable parent companls members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our 8udit work has been undertaken so that we might stale to the group's members those matters we are required to slate to them in an auditor's report and for no other purpose. To the fullest exlenl permitted by 18w, we do not accept or assume responsibility lo anyone other than the charitable parent company and its members 8s a body. for our audit work. for this report, or for the opinions we have fom)ed. Conclusions relating to going concern In auditing the financial statements, we have concluded that the director's use of the going concem basis of accounting in the preparation of the financi81 statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the companls ability to continue as a going concern for a period of al least twelve months from when the original financial statements were aulhorised for issue. Our responsibilities and the responsibilities of the directors with respect lo going concem are described in the relevant sections of this report. Page 17

Plymouth Marine Laboratory Independent Auditor's Report to the Members of Plymouth Marine Laboratory 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 lo the exlenl olhenNise explicitly slated in our report, we do not express any form of assuran conclusion thereon. In connection with our audit of the financial slatemenls, our responsibility is lo read the other information and, in doing so, Consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the audit or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misslalements, we are required lo determine whether there is a material misstslemenl in the financial statements or a material misslalemenl of the other information. If, based on the work we have performed, we conclude that there is a material misslatemenl of this other infomialion, we are required to report that fact. We have nothing lo report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the and Trustees, Report for the financial year for which the financial statements are prepared is consistent with the financial statements- and the and Trustees, Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the group and the parent charitable wmpany and its environment obtained in the course of the audit, we have not identified material misstalemenls in the and the Trustees, Report. We have nothing lo report in respect of the following matters where the Companies Act 2006 requires us to report lo you if, in our opinion: adequate accounting records have not been kept by the parent charitable company, or retums adequate for our audit have not been received from branches not visited by us., or the parent charitable company financial statements are not in agreement with the accounting records and retums., or certain disclosures of trustees remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees. Responsibilities (set out on page 161, the trustees 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 Iruslees determine is necessary to enable the preparation of financial statements that are free from material misstalemenl, whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the Iruslees either intend to liquidate the charity or to cease operations, or have no realistic altemalive but to do so. Page 18

Plymouth Marine Laboratory Independent Auditor's Report to the Members of Plymouth Marine Laboratory Auditor's responsibilities for the audit of the financial statements Our objectives are to obtsin reasonable assuran￿ about whether the financial statements as a whole are free from material misslatemenl, whether due lo fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is 8 high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misstatement when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to Influen￿ the economic decisions of users taken on the basis of these financial slatemenls. Irregularities, including fraud, are instsnces of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo deted material misslalements in respect of irregularities, including fraud. The exlenl to which our procedures are capable of delecling irregularities, including fraud is detailed below.. Based on our understsnding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company which were contrary to applicable laws and regulations, including fraLJd. We considered those laws and regulations that have a direct impact on the preparation of the financial slatemenls, including, bul not limited lo the reporting framework IFRS 102 and Companies Act 20061 and the relevant lax compliance regulations in the UK. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements {including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting. We also considered those laws and regulations that have a direct impact on the operations of the Group, including, bul not limited lo various environmental and employment laws and regulations le.g. Environmental Protection Act and The Health and Safety at Work Act 19741 that are applicable in the UK. Audit procedures performed by the engagement team include, but were not limited lo, discussion and inquiries with management of compliance with laws and regulations and review of correspondence and contracts with third parties. We also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misslatemenl due lo fraud. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading lo a material misslatemenl in the financial stalemenls. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to be come aware of instan￿S of non-compliance. The risk of not delecling a material misslatemenl due lo fraud is higher than the risk of not delecling one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al www.frc.or .uklaudilorsres onsibilities. This description forms part of our auditor's report. Page 19

Plymouth Marine Laboratory Independent Auditor's Report to the Members of Plymouth Marine Laboratory Duncan Leslie (Senior Statutory Audilorl PKF Francis Clark, Statutory Auditor North Quay House Sutton Harbour Plymouth PL4 ORA 13107/21 Date.. Page 20

Plymouth Marine Laboratory Consolidated Statement of Financial Activities Year Ended 31 March 2021 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrgstricted Unr9$tricted funds- funds- general designated £000 £000 Rgstricted funds £000 Total 2021 £000 Noto Income and Endowments from: Charitable aclivilies Other trading activities Investment income 370 1,376 62 330 12,144 12,844 1,376 62 Total income 1,807 330 12,144 14,281 Expenditurg on: Raising funds Charitable activities Other expenditure 14431 16981 1201 14431 113,0951 1201 12531 112,1441 Total expenditure 11,1621 12531 112,1441 113,5591 Net income Transfers between fijnds Gainslllossesl on investments assets 645 11391 77 139 722 750 750 Net movement in funds 1,256 216 1,473 Reconciliation of funds Total funds brought forward Total funds carried forward 2,838 3,714 6,552 21 4,095 3,930 8,024 Page 21

Plymouth Marine Laboratory Consolidated Statement of Financial Activities Year Ended 31 March 2021 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses) For comparative purposes - financial performance for prior financial year Unrestricted funds- desigated £000 Unrgstricted funds £000 Rgstricted funds £000 Total 2020 £000 Note Income and Endowments from: Charitable aclivilies Other trading activities Investment income 353 1,594 129 200 14,140 14,693 1,594 129 Total income 2,076 200 14,140 16,416 Expgnditurg on: Raising funds Charitable activities Other expenditure 13671 19711 1221 13671 115,3391 1221 12281 114,1401 Total expenditure 11,3591 12281 114,1401 115,7281 Net incomel{expenditurel before transfers Gainslllossesl on investment assets 716 1281 688 224 224 Net movement in funds 493 1281 464 Reconciliation of funds Total funds brought forward 2,347 3,742 6,089 Total funds carried fomard 21 2,840 3,714 6,553 Al of the group's activities derive from conlinLJing operations during the above two periods. The funds breakdown for 2020 is shown in note 21. Page 22

Plymouth Marine Laboratory Consolidated Balance Sheet 31 March 2021 2021 £000 2020 £000 Note Flxed assets Intangible assets Tangible assets Investments 486 10,125 3,629 546 9,386 2,837 13 14 14,241 12,770 Current assets Debtors Cash at bank and in hand 3,634 4,934 3,208 5,118 16 8,568 8,325 Creditors- Amounts falling due within one year Net current assets 17 17,8641 18,2101 704 115 Total assets less current liabilities 14,945 12,885 Creditors: Amounts falling due after more than one year 18 6,920 6.331 Net assets 8,024 6,553 Funds ofthe group.. Restricted Unrestricted - designated Unrestricted general 3,930 4,095 3,714 2,839 Total funds 21 8,024 6,553 The financial statements on pages 21 to 57 were approved by the trustees, and authorised for issue on ....9 July 2021.... and signed on their behalf by.. Admiral Sir J Burnell-Nugent KCB, CBE Chairman and Trustee N J Godefroy Trustee Company Registration Number.. 4178503 Page 23

Plymouth Marine Laboratory Balance Sheet 31 March 2021 2021 £000 2020 £000 Note Flxed assets Intangible assets Tangible assets Investments 486 10,124 3,729 546 9,384 2,937 13 14 14,339 12,867 Current assets Debtors Cash at bank and in hand 3,440 4,444 3,308 4,189 16 7,884 7,497 Creditors- Amounts falling due within one year Net current assetsllliabilitiesl 17 17,5481 17,9541 336 14561 Total assets less current liabilities 14,675 12,411 Creditors: Amounts falling due after more than one year 18 6,920 6.331 Net assets 7,755 6,080 Funds ofthe charity: Unrestricted general Unrestricted - designated Restricted 3,827 3,928 2,367 3,713 Total funds 21 7,755 6,080 The financial statements on pages 21 to 57 were approved by the trustees, and authorised for issue on .....9 July 2021............ and signed on their behalf by: Admiral Sir J Burnell-Nugent KCB, CBE Chairman and Trustee N J Godefroy Trustee Company Registration Number.. 4178503 Page 24

Plymouth Marine Laboratory Consolidated Statement of Cash Flows Year Ended 31 March 2021 2021 £000 2020 £000 Note Cash flows from opgrating activitios Nel cash income 1,473 465 Adjustments to cash flows from non-cash items Depreciation Amortisalion Investment income 1,107 60 1621 1,010 56 11291 Interest payable Fair value movement on investment assets 750 224 1,832 1,631 Working capital adjustments Increase in debtors Increase in creditors Decrease in deferred income 14041 606 1,947 14421 255 13 17 18 Nel cash flows from operating activities 87 1,432 Cash flows from invgsting activities Interest receivable and similar income Purchase of intangible fixed assets Purchase of tangible fixed assets Capitsl grants Purchase of investments Sale of investments 62 129 1391 11,4071 1,125 11061 149 12 11,8461 1,713 1421 Nel cash flows from investing activities 11131 11491 Cash flows from flnanclng actlvltles Repayment of loans and borrowings Interest payable and similar charges 17 11511 11341 Nel cash flows from financing activities Nel Idecreasellincrease in cash and cash equivalents Cash and cash equivalents al 1 April 11561 11411 11821 5,118 1,142 3,976 Cash and cash equivalents al 31 March 4,935 5,118 All of the cash flows are derived from continuing operations during the above ￿ periods. Page 25

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 1 Charity status The charity is limited by share capital, incorporated in England and Wales. The address of ils registered office is.. Prospect Pla The Hoe Plymouth PL13DH 2 Accounting policios Summary of significant accounting policies and key accounting estimates The principal accounting policies applied in the preparation of these financi81 statements are sel out below. These policies have been consistenuy applied to all the years presented, unless otherwise slated. Statement of ¢omplian¢e The financial statements have been prepared in accordance with Accounting and reporting by Charities- Stslemenl of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191- (Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006, with the ex￿ptIOn that grants in respect of capital expenditure received are deferred and released to the Statement of Financial Activities over the expected useful lives of the relevant assets lo which they relate This treatment provides consistency with the treatment adopted by other similarfy funded institutions including Universities. Basis of preparation The accounts are prepared under the historical cost convention and in accordance with applicable accounting standards. The trustees consider that there are no material uncertainties about the charity s ability to continue as a going concern. The functional currency of Plyrnoulh Marine Laboratory is considered to be pounds sterling because that is the currency of the primary economic environment in which the wmpany operates. Plymouth Marine Laboratory meets the definition of a public benefit entity under FRS 102. Page 26

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Basis of consolidation The consolidated financial slalemenls consolidate the financial statements of the charity and ils subsidiary undertakings drawn up lo 31 March 2021. No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Art 2006. The charity had a positive net movement in funds for the financial year of £1,675,00012020 - £287,0001- The charity has taken advantsge of the exemption not to prepare a Cash flow statement, as the charity figures are included in the consolidated cash flow statement and the members have not objected to the exemption being taken. A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govem the financial and operating policies of an entity so as lo obtsin benefits from ils aclivilies. Inler-company Iransaclions, balances and unrealised gains on transactions be￿een the charity and ils subsidiaries, which are related parties, are eliminated in full. Inlra-group losses are also eliminated but may indicate an impaimienl that requires recognition in the consolidated financial slatemenls. Page 27

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Going concern PML'S cash position las al 31 May 20211 is strong al £2.45M. PML has pul in place covid-safely measures within ils premises, such that if there is a further wave of covid-19 and a consequential lockdown, it would not be adversely affected, i.e. laboratory and local seagoing activities can continue, and hence income Can be claimed. Income forecasting has been undertaken which demonstrates that PML is likely to achieve a break-evenlsmall deficit position al the end of the financial year 2021-22, taking into account the re￿ntlY notified government reduction in ODA funding as mentioned under Risk Management Key assumptions here are that our remaining funders IUK Research &amp,' Innovation IUKRII, EU, European Space Agency) will pay as per schedule. UKRI also provided an additional funding grant to support grants affected by covid-19, £98k of which has been sel aside lo support UKRI funded grants held by PML in FY 2021-22. Current signed contracts sland al £22.5M, of which £9.9M has already been recognised up to 31 March 2021. The remaining £12.6M relates to projects which run over the next 3 financial years. Al year end the Trustees acknowledge that the net asset position was a relatively modest £704k current assets. They take assurance from the fact that within current creditors is £4.3M of cash advances received on competitive research contracts. Due to the nature of this balance the Trustees have strong certainly that the majority can be earnl and released to income over the next financial year to fund staff costs and overheads. As at year end the charity also held an investment portfolio of £3.6M which as a last resort could be realised lo fund any deficits that arise as a result of covid-19 or other loss of income. The Trustees believe that PML is a going concem on the following basis.. Strong cash position as identified above. Principal funding sources are government backed. e.g. UKRI, the EU, European Space Agency. Strong signed contfficls position. The company can meet ils short-temi debts. Strong resetves position In conclusion, there are no material uncertainties to cast doubl on PML'S ability to continue as a going cOn￿rn. Page 28

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Critical accounting judgements and key sources of estimation uncertainty In the application of the company's accounting policies, which are described above, the directors are required lo make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The following are the critical judgements and estimates that the directors have made in the process of applying the charitys accounting policies and that have the most significant effect on the amounts recognised in the financial statements. Carrwng value of research balances Provision is made against research debtor balan￿S where costs (including those to completel exceed contracted income. Income All incoming resources are included in the statement of financial activities where the charity is entitled to the income and the amount can be qualified with reasonable accuracy. The following specific policies are applied lo particular categories of income= Investment income is included when receivable. Grants in respect of capital expenditure are credited to a deferred capital grants account within creditors, and are released to the Statement of Financial Activities over the expected useful lives of the relevant assets lo which they relate. Competitive Research The majority of contracts are for 3 years duration. During the period of the contract, income is only credited to the Income and Expenditure account if it is matched by activity within the contract. Where income received lo date is in excess of this calculated amount, il is deferred, where the income received is less, il is accrued. Should funds be provided within the contract lo purchase capital equipment but ownership of that equipment resides with the customer, then the equipment is not capilalised on the Balan Sheet. Should ownership of the equipment reside with the group, the equipment is capilalised and the specific income provided for its purchase is spread over the life of the asset Deferred incomg Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when.. The donor specifies that the grant or donation must only be used in future accounting periods,. or The donor has imposed conditions which must be mel before the charity has unconditional entitlement., or The costs that are funded by the grant have yet to be spent. Page 29

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Expenditure Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other payments are recognised when a constructive obligation arises that results in the payment being unavoidable. Costs of generating commercial trading income through the subsidiary, PML Applications Ltd. Charitable activities include expenditure associated with the operation of the Charity, and include both the direct costs and support costs relating lo those aclivilies. Govemance costs include those incurred in the governance of the Charity and its assets and are primarily associated with strategic, constitutional and statutory requirements. Support costs include ￿ntral functions and have been allocated to activity cost categories on a basis consislenl with the use of reSoUr￿s. Research and Development and Patents As an organisation wholly engaged in research, the group does not classrfy research and development expenditure separately in the accounts. Expenditure in respect of the development of patents has been written off. Intellectual Property Intellectual property rights arising from the group's research and development have not been included in these accounts as their market value cannot be readily estimated. The anlicipaled annual income generated from such rights is not material in value and is credited lo the income and expenditure account on receipt. Pensions In accordan￿ with the Staff Loan Agreement between NERC and PML, employees who were in post al 31 March 2002 remained employees of NERC (subsequently novaled to UKRI}. For these employees, payments are made to the Research Council's Pension Scheme a defined benefits scheme. Employees who joined PML after 31 March 2002 have the option to join the Plymouth Marine Laboratory Group Scheme. This is a defined contribution scheme administered by Scottish Life. Contributions for both schemes are charged to the accounts as they become payable in accordance with the njles of the schemes. Value Added Tax As the group is registered partially exempt for VAT purposes, all expenditure and fixed asset purchases are shown inclusive of VAT where applicable. Taxation The eharily is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Art 2010 and therefore il meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempl from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the 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 lo charitable purposes. Page 30

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Intangible assets Intangible assets are slated in the Balance Sheet at cost less accumulated amortisation and impaimient. They are amortised on a slraighl line basis over their estimated useful lives. Amortisation Amortisalion is provided on intangible fixed assets so as lo write off the cost, less any estimated residual value, over their expeded useful economic life as follows.. Asset class Computer software Amortisation method and rate 2-10 years straight line Tanglble flxed assets Individual fixed assets costing £3k or more are initially recorded al cost, less any SLJbsequenl accumulated depreciation and subsequent accumulated impairment losses. Depreclatlon and amortlsatlon Provision is made for depreciation on all tangible fixed assets al rates calculated to write off the costs of each asset evenly over ils expected useful working life. Fixed assets are depreciated in the month of acquisition, bul are not depreciated in the month of disposal. Components of assets with substantially different economic lives are accounted for separately for depreciation purposes and depreciated over their individual useful economic lives. Asset class S¢ienlifi¢ equipment Computer equipment Plant Vehicles Ships Leasehold buildings Depreciation rnethod and rate 2-10 years straight line 2-5 years straight line 10 years slraighl line 4 years straight line 20 years slraighl line 25 years slraighl line Flxed asset Investments Fixed asset investments, other than programme related investments, are included at market value at the balan￿ sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value al the start of the year, or their subsequent cost, and are charged or credited lo the Statement of Financial Artivities in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value al the year end. Page 31

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Borrowings Inlerest-bearing borrowings are initially recorded al fair value, nel of transaction costs. Inleresl-bearing borrowings are subsequently carried al amortised cost, with the difference between the proceeds, nel of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effertive interest method and is included in interest payable and similar Charges. Borrowings are classified as current liabilities unless the charity has an unwndilional right lo defer settlement of the liability for at least twelve months after the reporting dale. Foreign exchange Assets and liabilities denominated in foreign currencies are expressed in pounds Ste￿Ing at ratels) of exchange ruling al the balance sheet dale. Transactions in foreign currencies are recorded al the rate ruling at the lime of the transaction. All exchange differences are taken to the Statement of Financial Activities. Fund structure General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Designated funds are unrestricted funds which have been assigned by the Trustees for future projects. Restricted funds are funds which are lo be used in accordan￿ with specific reslriclions imposed by donors or which have been raised by the Charity for particular purposes. Hire purchase and finance leases Leases in which subsiantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term. Page 32

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Financial instruments Financial assets and liabilities are recognisedllderecognisedl when the company becomesllceases lo bel party lo the contractual provisions of the inslrumenl. The company holds the following financial assets and liabilities.. Short-lerm debtors and creditors Debtors and creditors with no staled interest rale and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment I'doubtful debts") are recognised in Statement of financial activities before net income. Loans qualifying as basic financial instruments under FRS102 Loans are initially recorded al transaction price and subsequently measured at amortised cost using the effective interest method. Other financial instruments not qualify as basic under FRS102 Fornard exchange contracts are measured at fair value al the balance sheet dale. Movements in fair value are charged or credited lo the statement of financial activities before nel income. Investments Investments in subsidiaries and associates are measured al cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by referen￿ to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored. P8g8 33

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 3 Income from charitable activities Unrestricted funds Rg$tri¢tgd funds £000 Total 2021 £000 Total 2020 £000 Designated £000 General £000 NERC funding (National Capability) Research Income Designated income Deferred income on capital expenditure Funding for restructuring Reimbursements VAT 3,600 3,600 3,773 7,481 7,481 9,566 330 330 200 811 811 711 40 41 recoverable (due lo partial exemplionl Charges for secretariat ServI￿S - Partnership for Observation of the Global Oceans Doctoral training grants Other income 10 10 69 110 110 101 154 96 97 95 252 347 330 370 12,144 12,844 14,693 Page 34

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 4 Income from other trading activities Summary profit and loss account 2021 2020 £'ooo £'ooo Turnover 1,423 11,187) 1,617 11.1591 Cost of sales and adminislralive expenses Other income, including interest re￿1vable Operating profit Interest payable on loan Net profil 236 458 131 233 {31 455 The assets and liabilities of the subsidiary were: 2021 2020 £'ooo £'ooo Fixed assets Current assets 817 1.172 16011 574 Current liabilities 14491 370 Total nel asselsllliabilitiesl Aggregate share capital and reserves 370 574 Reconciliation with statement of financial activities {SOFAI 2021 2020 £'ooo £'ooo Turnover IAS above) Less.. Income from parent charity Per SOFA- Income from other trading activities 1,423 1471 1,376 1,617 1231 1,594 Cost of sales and administrative expenses (As above) Less.. Recharged by parent Charity Per SOFA- Expenditure on raising funds 1,187 17441 443 1,159 17921 367 Page 35

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 5 Expenditure on charitable activities Activity undertaken directly £000 6,191 2,761 1,141 Activity support costs Total 2021 £000 6,191 2,761 1,141 Total 2020 £000 5,945 5,470 1,371 £000 Research staff costs Recurrent costs - Scien Recurrent costs - Science support Depreciation and amortisalion of assets Loan interest payable Reslrucluring costs Senior management and adminislralive staff costs Administration costs Governan￿ wsls 1,166 1,166 1,026 37 37 1,178 578 38 1,178 578 38 988 404 11,264 1,831 13,095 15,339 £951,000 12020 - £1,199.000) of the above expenditure was attributable to unrestricted funds and £12,144,00012020 - £14,140,000) to restricted funds. 6 Analysis of govemance and support costs Governance costs Restricted funds £000 Total 2021 £000 Total 2020 £000 Audit fees Audit of the financial statements Other fees paid to auditors Trustees remuneration and expenses 20 19 20 19 19 38 38 45 Page 36

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 7 Net incomingloutgoing resources This is staled after chargingllcrediling)- 2021 £000 20 19 1,166 142 18101 137 2020 £000 18 Audit fees Other non-audit services Depreciation and amortisalion of assets Operating leases - other assets Deferred grants released Foreign currency lossesllgainsl Finance charges payable 1,065 141 17121 11391 8 Trustees remuneration and expenses No Iruslees, nor any persons connected with them, have received any remuneration from the group during the year. Trustees expenses amounting lo £Ok {2020.. £5kl were reimbursed during the year. 9 Staff costs The aggregate payroll costs were as follows.. 2021 £000 2020 £000 Staff costs during the year were- Wages and salaries Social security costs Pension costs Reslrucluring costs 6,491 656 637 37 6,009 627 640 7,821 7,360 The monthly average number of persons (including senior management team) employed by the group during the year expressed as full time equivalents was 8s follows.. 2021 No 108 43 26 2020 No 101 43 19 Permanent staff - scien￿ and support Permanent staff - Management and admin Temporary staff 177 163 Page 37

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 The number of employees whose emoluments fell within the following bands was= 2021 2020 £60,001 - £70,000 £70,001 - £80,000 £80,001- £90,000 £90,001 - £100,000 £100,001 - £110,000 The total employee benefits of the key management personnel of the group were £537,20512020 £510,844). 10 Auditors. remuneration 2021 £000 2020 £000 Audit of the financial statements 20 19 Other fees to auditors Al other assurance services l other non-aLJdil services 14 10 19 15 11 Taxation The group is a registered charity and is therefore exempl from taxation. Page 38

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 12 Intangible fixed assets Group Software £000 Total £000 Cost At 1 April 2020 Additions 602 602 At 31 March 2021 602 602 Amortisation At 1 April 2020 Charge for the year 56 60 56 60 At 31 March 2021 116 116 Net book value At 31 March 2021 486 486 At 31 March 2020 546 546 Charity Software £000 Total £000 Cost Al 1 April 2020 Additions 602 602 At 31 March 2021 602 602 Amortisation At 1 April 2020 Charge for the year At 31 March 2021 56 60 56 60 116 116 Net book value At 31 March 2021 486 486 At 31 March 2020 546 546 Page 39

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 13 Tangible fixed assets Group Fumiture and equipment £000 Assets under construction Land and buildings £000 Ships and vehicles £000 Total £000 £000 Cost Al 1 April 2020 Additions Transfers 7.268 10,609 810 1.125 1,844 1,045 19,812 1,846 25 1,020 Al 31 March 2021 7.293 11,632 810 1.923 21,659 Depreciation Al 1 April 2020 Charge for the year 1,239 432 8,568 635 619 40 10,426 1,107 Al 31 March 2021 1.671 9,203 659 11,533 Net book value Al 31 March 2021 5,622 2,429 151 1,923 10,125 Al 31 March 2020 6,029 2,041 191 1,125 9,386 Included within the net book value of land and buildings above is £Nil 12020 - £Nill in respect of freehold land and buildings and £5,622,00012020 - £6,029,000) in respect of leaseholds. Restriction on title and pledged as security Freehold property with a carrying amount of £5,622,000 12020.. £6,029,000) has been pledged as security for the bank loans. Page 40

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Charity Fumiture and equipment £000 Assets Ships and under vehicles construction £000 £000 Land and buildings £000 Total £000 Cost Al 1 April 2020 Additions Transfers 7.268 10.570 810 1,125 1,844 11,0451 19,773 1,846 25 1,020 Al 31 March 2021 7.293 11,593 810 1.923 21,620 Dgprgciation Al 1 April 2020 Charge for the year 1.239 432 8,531 635 619 40 10,390 1,106 Al 31 March 2021 1.671 9,166 659 11,496 Ngt book value Al 31 March 2021 5,622 2,427 151 1,923 10,124 Al 31 March 2020 6,029 2,039 191 1,125 9,384 Included within the net book value of land and buildings above is £Nil 12020 - £Nill in respect of freehold land and buildings and £5,622,00012020 - £6,029,000) in respect of leaseholds. Restriction on title and pledged as security Land and buildings with a carrying amount of £5,622,000 12020 £6,029,000) has been pledged as security for the bank loans. Page 41

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 14 Fixed asset investments Group 2021 £000 3,629 2020 £000 2,837 Other investments Other Investments Llsted Investments £000 Cost or Valuation Al 1 April 2020 Revaluation 2,837 750 62 20 Additions Investment manager fee Al 31 March 2021 3,629 Net book value Al 31 March 2021 3,629 Al 31 March 2020 2,837 Charity 2021 £000 100 3,629 2020 £000 100 2,837 Shares in group undertakings and participating interests Other investments 3,729 2,937 Page 42

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Shares in group undertakings and participating interests Subsidiary undertakings £000 Total £000 Cost Al 1 April 2020 100 100 Al 31 March 2021 100 100 Net book value Al 31 March 2021 100 100 Al 31 March 2020 100 100 Other investments Listed investments £000 Cost or Valuatlon Al 1 April 2020 Revaluation Additions Investment fees 2,837 750 62 1201 Al 31 March 2021 3,629 Net book value Al 31 March 2021 3,629 Al 31 March 2020 2,837 Page 43

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Details of undertakings Details of the investments in which the charity holds 200/0 or more of the nominal value of any class of share capital are as follows.. Country of incorporation Proportion of voting rights and shares held 2021 2020 Principal activity Undertaking Holding Subsidiary undertakings PML Applications Ltd Prospect Place, Wesl England and Wales Hoe, Plymouth, PL1 3DH Ordinary shares 1000/. Marine research Smart Sound Plymouth Ltd Prospect Place, Wesl Hoe, Plymouth, PL1 3DH Innovative marine technology development currently dormant England and Wales Ordinary shares GenePro Ltd Iheld by a subsidiary) Prospect Place, Wesl England Hoe, Plymouth. PL1 3DH Exploitation Ordinary intellectual property currently dormant Page 44

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Subsidiaries The profit for the financial period of PML Applications Ltd was £233,433 12020 £455,243) and the aggregate amount of capital and reserves at the end of the period was £369,69312020 - £573,647). The profil for the financial period of Smart Sound Plymouth Ltd was £Nil 12020 £Nill and the aggregate amount of capital and reserves al the end of the period was £Nil12020 - £Nill. The profit for the financial period of GenePro Ltd (held by a subsidiary) was £Nil {2020 £Nill and the aggregate amount of capital and reserves at the end of the period was £Nil12020 - £Nill. 15 Debtors Group 2020 £000 1,453 Charity 2020 £000 1,262 345 136 1,557 2021 £000 2,034 2021 £000 1,809 125 177 1,323 Trade debtors Due from group undertakings Prepayments Accrued income VAT recoverable Other debtors 177 1,416 136 1,608 3,634 3,208 3,440 3,308 16 Cash and cash equivalents Group 2020 £000 5,100 18 Charlty 2020 £000 4,171 18 2021 £000 4,934 2021 £000 4,444 Cash at bank Short-temi deposits 4,934 5,118 4,444 4,189 Balances held by the group that are not available for use by the group Al year end no cash 12020.. £Nill was held on behalf of other project partners, e.g. where PML acts as Co-ordinator of EC conlracls. Page 45

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 17 Creditors- amounts falling due within one year Group 2020 £000 161 639 Charity 2020 £000 161 633 13 183 45 1,727 5,192 2021 £000 49 672 2021 £000 49 610 Bank loans Trade creditors Due lo group undertakings Other taxation and social security Other creditors Accruals Deferred income 257 56 2,532 4,298 192 50 1,779 5,389 225 2,452 4,151 7,864 8,210 7,548 7,954 Bank borrowings A bank loan to finance the purchase of the Wesl Hoe sile is denominated in £ sterling with a nominal interest rate of 1.850/0 above bank base rate 12020 - 1.850/0 above bank base ratel, and the final instalment is due on 14 April 2021. The carrying amount at year end is £9,00012020 - £120,000). The loan is secured on a first legal mortgage over the leasehold property at Prospect Place, The Hoe, Plymouth. A bank loan of £200,000 to finance the purchase of a new business management system is denominated in £ sterling with a nominal interest rale of 2.55'/0 above bank base rate12020 - 2.55 /0 above bank base ratel, and the final inslalmenl is due on 19 January 2022. The carryng amount at year end is £40,00012020 - £80,000). The loan was secured on the first legal mortgage over the leasehold property al Prospect Place. The Hoe, Plymouth. Page 46

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 18 Creditors- amounts falling due after one year Group 2020 £000 39 6,292 Charity 2020 £000 39 6,292 2021 £000 2021 £000 Bank loans Deferred income 6,920 6,920 6,920 6,331 6,920 6,331 Deferred Capital grants - Group and company 2021 2020 Amounts lo be released= £'ooo £'ooo Within one year In two to five years In over five years 970 683 3,540 3,368 7,878 1.547 4,745 6,975 Analysis of Deferred capital grants- Group and company 2021 £000 16,9751 11,7131 810 2020 £000 16,5621 11,1251 712 Deferred capital grant brought forward Resources deferred in the period Amounts released from previous periods Deferred capitsl grant al year end 7,878 6,975 Page 47

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 19 Obligations under leases and hire purchase Contracts Operating lease commitments Total future minimum lease payments under non-cancellable operating leases are as follows.. Group 2020 £000 Charity 2020 £000 2021 £000 2021 £000 Land and buildings Within one year Between one and five years After five years 40 84 177 41 86 194 40 41 86 194 177 301 322 301 322 Other Within one year Between one and five years After five years 130 292 122 317 130 292 122 317 422 440 422 440 In addition to the financial commitments listed above a long tem) lease to 2094 has an annual commitment of £25k per annum. The amount of non-cancellable operating lease payments recognised as an expense during the year was £142k12020= £116k}. 20 Commitmgnts Group and charlty Capital commitments Commitments for purchase of capital equipment. The total amount contracted for but not provided in the financial stslemenls was £850k 12020 £158k}. Page 48

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Pension commitments UKRI-NERC employees are entiued to be members of the Research Council's Pension Scheme which is a defined benefit scheme funded from annual grant-in-aid on a pay-as-you-go basis. The pension scheme is contributory and the benefits are by analogy lo the Principal Civil Service Pension Scheme, except that while the scheme provides retirement and related benefits based on final emoluments, redundancy and injury benefits are administered and funded by the Council. The pension scheme is administered by the Research Council's Joint Superannuation Service, and the finance administered by the Biotechnology Sciences Research Council. The scheme is 8 multi-employer scheme, for which a separate Research Council's Pension Scheme account is published. NERC are unable to identify their share of the underlying assets and liabilities. Employees, who joined after 31 March 2002 are entitled lo be members of the Plymouth Marine Laboratory Group Pension Scheme. This is a defined contribution scheme administered by Royal London Mutual Insurance Society Ltd. Iformerly Scollish Lifel. Contributions for the year were a minimum of employerfs 6.5 /0 and employees 3.5 /0. The pension cost charge for the year represents contributions payable by the company lo the schemes and amounted to £637k 12020.. £640kl. Commitments provided for in the accounts amounted lo £52,000 {2020 - £46.0001. Commitments not provided for in the accounts amounted lo £Nil 12020 £Nill. £Nil relates to pension commitments ￿lated to pensions payable lo past directors 12020- £Nill. Page 49

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 21 Funds Group Balance at1 April Incoming Resources 2020 resources expended Transfers £000 £000 £000 £000 Other re¢ognised gainsl {lossesl £000 Balance at31 March 2021 £000 UnrgStri¢tgd funds General Unrestricted funds general 2,839 1,807 11,162) 11391 750 4,095 Designated Research Fellows Lecture theatre Head Lease Leasehold land & buildings Oceansgale Facility Development Officer New business system Educational support fund MMC AV Equipment New vessel designlvirtualisalion 296 179 384 1,909 149 122 475 200 1891 122) 1241 207 297 361 1,909 139 85 415 338 100 139 110) 137) 1601 112) 150 100 80 80 3,714 253 139 3,930 Total unrestricted funds 6,553 2,137 11,415) 750 8,024 Restrlcted funds Reslricled funds 12,144 {12,1441 Total funds 6,553 14,281 {13,5591 750 8,024 Page 50

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 other Resources recognised expended gainslllossesl £000 £000 Balance at 31 March 2020 £000 Balance at 1 April 2019 £000 Incoming resources £000 Unrestricted funds General Unrestricted funds - general 2,347 2,076 11,3601 12241 2,839 DesiTgnated Research Fellows Lecture theatre Head Lease Leasehold land & buildings O￿an$gate Facility Development Officer New business system Educational support fLJnd 400 217 408 11041 1381 1241 296 179 1.909 150 128 1,909 149 122 161 530 1551 475 200 200 3.742 200 1228 3,713 Total unrgstricted funds 6,089 2,276 11,5881 12241 6,553 Restricted funds Reslricled funds 14,140 114,1401 Total funds 6.089 16,416 15,728 224 6,553 Page 51

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Charity Balance at1 April Incoming Resources 2020 resources expended Transfers £000 £000 £000 £000 Other recognised gainsl {lossesl £000 Balance at31 March 2021 £000 Unrestricted funds General Unrestricted funds 2,367 1,612 1763) 11391 750 3,827 Designated Research Fellows Lecture theatre Head lease 296 179 384 1,909 148 122 475 200 1891 122) 1241 207 296 360 1,909 138 85 415 338 100 139 Leasehold land & buildings O￿angate Facility Development Officer New Business System Educational support fund MMC AV Equipment New vessel designlvirtualisation 1101 137) 160) 112) 150 100 80 80 3,713 254 139 3,928 Total Unrestricted funds 6,080 1,942 11,017) 750 7,755 Restricted funds Reslricled funds 12,144 {12,1441 Total funds 6,080 14,086 13,161 750 7,755 Page 52

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 other Resources recognised expended gainslllossesl £000 £000 Balance at 31 March 2020 £000 Balance at 1 April 2019 £000 Incoming resources £000 Unrestricted funds General Unrestricted funds 2,050 1,548 11,0071 12241 2,367 DesiTgnated Research Fellows Lecture theatre Head lease Leasehold land & buildings o￿angate Facility Development Officer New Business System Educational support fLJnd 400 217 408 11041 1381 1241 296 179 1.909 150 128 1,909 148 122 121 161 530 1551 475 200 200 3.742 200 1229 3,713 Total unrestricted funds 5,792 1,748 11,2361 12241 6,080 Restricted funds Reslricled funds 14,140 114,1401 Total funds 5,792 15,888 15,377 224 6,080 Page 53

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 22 Analysis of net assets between funds Group Unrestricted funds General Designated £000 £000 486 6,826 3,000 8,568 17,8641 16,9201 4,096 Total funds £000 486 10,125 3,629 8,568 17,8641 16,9201 Intangible fixed assets Tangible fixed assets Fixed asset investments Current assets Current liabilities Creditors over 1 year Total net assets 3,299 629 3,928 8,024 Unrgstridod funds Total funds at 31 March 2020 £000 546 9,386 2,837 8,325 18,2101 16,3311 Ggneral £000 546 6,290 2,219 8,325 18,2101 16,3311 Dgsignatod £000 Intangible fixed assets Tangible fixed assets Fixed asset investments Current assets Current liabilities Creditors over 1 year 3,096 618 Total net assets 2,839 3,714 6,553 Page 54

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 Charity Unrestricted funds General Designated £000 £000 486 6,825 3,100 7,884 17,5481 6,920 Total funds £000 486 10,124 3,729 7,884 17,5481 6,920 Intangible fixed assets Tangible fixed assets Fixed asset investments Current assets Current liabilities Creditors over 1 year 3,299 629 Total net assets 3,827 3,928 7,755 Unrestrlcted funds Total funds at 31 March 2020 £000 546 9,384 2,937 7,498 17,9551 16,3311 6,079 General £000 546 6,289 2,319 7,498 17,9551 16,3311 2,366 Designated £000 Intangible fixed assets Tangible fixed assets Fixed asset investments Current assets Current liabilities Creditors over 1 year 3,095 618 Total net assets 3,713 Page 55

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 23 Analysis of net debt Group At 31 March 2021 £000 At 1 April 2020 Cash flow £000 £000 Cash al bank and in hand 5,118 11611 1391 11841 112 4,934 1491 Debt due within one year Debt due after more than one year 39 Nel debt 4,919 1341 4,885 Group Other non-cash changes £000 At 31 March 2020 £000 At 1 April 2019 Cash flow £000 £000 Cash at bank and in hand 3,976 1961 12381 1,142 134 5,118 11611 1391 Debt due within one year Debt due after more than one year 11991 199 Net debt 3,642 1,276 4,919 24 Flnanclal Instruments Group Categorisation of financial instrumgnts 2021 £000 2020 £000 Financial assets measured at fair value through profit or loss Financial assets measured at fair value Fotward exchange contraGÈs Comparison of the year end spot rale (which acts as an approximation for the fair value of the contracts) with the contracted rate. The fair value is £Nil 12020 - £4,000) and the change in value included in profit or loss is £4,00012020 £15,000>. Page 56

Plymouth Marine Laboratory Notes to the Financial Statements Year Ended 31 March 2021 25 Related party transactions Group During the year the group made the following related party Iransaclions.. Valeport Limited IA Director of the subsidiary company PML Applications Ltd is a shareholder in Valeport Limited} The subsidiary company provided servi￿8 totalling £3,00012020 - £1,000) lo Valeport Limited during the year. At the balance sheet dale the amount due lolfrom Valeport Limited was £Nil12020 - £Nill. The charity has taken advantsge of the exemption under FRS102 section 33 not to disclose inlra-group transactions with ils subsidiary, PML Applications Ltd. There were no other related paty transactions for the group or charity during the year. Page 57