OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Company Registration No. 04962619 (England and Wales) Charity No. 1102661

The Tank Museum Limited

Trustees’ report and financial statements for the year ended 31 December 2020

The Tank Museum Limited (A company limited by guarantee)

Legal and administrative information For the year ended 31 December 2020

Page
Legal and administrative information 1
Trustees’ report 2-10
Independent auditors’ report 11-14
Consolidated statement of financial activities 15
Consolidated balance sheet 16
Charity balance sheet 17
Consolidated statement of cash flows 18
Notes to the financial statements 19-38

The Tank Museum Limited (A company limited by guarantee)

Legal and administrative information For the year ended 31 December 2020

Trustees Lt Gen Sir Andrew Ridgway, KBE CB DL Lt Gen Sir Andrew Ridgway, KBE CB DL
Mr William Bannister
Mr Steve Rowbotham
Mr David Webb
Mr William Suttie
Mr Bryn Hammond (resigned 25.6.2020)
Ms Kate Adie, OBE DL
Mr Anthony Woodhouse
Mr Alexander Walters
Mr Oliver Barnham
Col Crispin Lockhart MBE ADC
Brig Jonathan Swift OBE
Col Jason Williams
Mrs Yun Sun Choi (appointed 4.3.2021)
Ms Andrea Bishop (appointed 4.3.2021)
Secretary Paul Dolan
Company registered number 04962619
Charity Commission
registration number 1102661
Registered office Bovington Camp
Wareham
Dorset
BH20 6JG
Museum Director Richard Smith OBE
Auditors Saffery Champness LLP
Chartered Accountants
Midland House
2 Poole Road
Bournemouth
BH2 5QY
Investment advisers Investec Wealth and Bankers Handelsbanken
Investment 10 Parkstone Road
30 Gresham Street Poole
London Dorset
EC2V 7QN BH15 2PQ
Barclays
Tagus House
Southampton
Hampshire
SO14 2ZP

Page 1

The Tank Museum Limited (A company limited by guarantee)

Trustees’ Report

For the year ended 31 December 2020

The trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited consolidated financial statements of The Tank Museum Limited and its trading subsidiary, the Tank Museum Trading Company Limited for the year ended 31 December 2020. The trustees confirm that the Annual Report and financial statements of the charity and the group comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in March 2005.

Group Strategic Report

Policies and objectives

Purposes and aims: The charity’s purposes are set out in the objects contained in the company’s Memorandum of Association:

We summarise our purpose with the phrase ‘we tell the story of tanks and the people who serve with them’. The vision of The Tank Museum is to be the world’s leader in the heritage of armoured warfare. Our mission is to conserve, develop and interpret the national collection of tanks and armoured fighting vehicles to educate and inspire people with the story of tanks and the people who serve with them; past, present and future.

Activities for achieving objectives

In delivering our activities we seek to:

Page 2

The Tank Museum Limited (A company limited by guarantee)

Trustees’ Report (continued) For the year ended 31 December 2020

Ensuring our work delivers our aims

Every twelve months, the board of trustees reviews our aims, objectives and activities in a forward plan. This plan looks in detail at the year ahead and in summary to a minimum of five years ahead. Progress against this plan is assessed every quarter during the Board meetings. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular the trustees consider how planned activities will contribute to the aims and objectives that they have set.

How our activities deliver public benefit

Our activities focus on engaging with the general public to educate them in the history of armoured warfare, in particular to try to ensure that the achievements of the Royal Armoured Corps and the Royal Tank Regiment are preserved for posterity. To do this, we hold and interpret the national collection of armoured vehicles.

Achievements and performance

Who used and benefited from our services?

Between January and December 2020, 103,852 people visited the Museum (2019: 221,241). The reduction in visitor numbers was due to the global pandemic which resulted in closures and reduced capacity.

The admissions policy allows for serving members of the armed forces and for members of the regimental associations of the Royal Armoured Corps to enter the Museum free of charge. We also encourage families of MoD staff in Bovington to use the Museum at no charge. Despite the pandemic 3,672 (2019: 7,243) people took advantage of this service.

While everyone has access to the Museum, there is a charge for entry which extends to an annual membership. During winter months, up to 15% of our audience comes from people taking advantage of the unlimited return visits from their annual membership.

Review of activities

The Museum’s 2020 activities were dominated by the global pandemic which severely curtailed activities throughout the year. The Museum closed in line with Government advice for three months in the first half of the year and a further month in November. Operations while the Museum was opened were restricted by the need to maintain a safe environment for staff and visitors, meaning that site capacity was limited to about a third of our normal levels. This had a major effect on visitor numbers and income as well as progress on much of our long term collection care activities. The Museum received significant support through the Employee Retention Scheme, the Cultural Recovery Fund and the NLHF Emergency Fund.

Online Growth

The most significant development during the pandemic was the rapid expansion of the Museum’s digital activity. The Museum began the Pandemic as a world leader in building online audiences through social media. From the first week of the lockdown this work expanded both in regard to content generation and subsequently into income generation. During the first lockdown online video content accelerated from one video per week to one per day. This in turn drove sales in the online shop from £65k in 2019 to £711k in 2020. With the online

Page 3

The Tank Museum Limited (A company limited by guarantee)

Trustees’ Report (continued) For the year ended 31 December 2020

customers being geographically distant from the Museum, it is clear that this was new rather than displaced activity which is likely to be able to be a sustained income stream after the pandemic.

The online activity became our main way of delivering our objects during the course of the year. In 2020 our YouTube audience consumed 2.7 million hours of Tank Museum video content. With a physical site visit averaging four hours, this means that near seven times more content was consumed online than onsite in 2020. The monthly online audience during 2020 was approximately half a million people, which is far in excess of anything that has been achieved on the site in the past. Our YouTube channel is particularly effective at reaching young men aged between 18 and 35 – a notoriously challenging demographic to reach for the heritage community. As well as being a way of directly delivering our objects, our online activities broaden awareness of the Museum and its work, encouraging visitors and building a long term support base.

Collections and Collections Management

The normal programme of collection management was suspended through most of 2020 due to the pandemic. Workshop and Archive team members sought to keep up to date with the flow of new material into the collection, but for much of the year were either on furlough or assisting customer facing teams in an operation which was more labour-intensive to deliver due to the need for increased stewarding on gallery.

The Tank Museum’s reputation for excellence means that we are used as a point of reference both by our international opposite numbers and by museums across the UK. Tank Museum staff provided advice to over one hundred museums or other collections, with much of the emphasis in 2020 being placed on sharing how we achieved our success in our online activities.

Telling our stories and Educating the Public

Despite the Pandemic, the Museum has continued to invest in the visitor experience and bringing our collections to life through new exhibitions. The Main work in 2020 was to complete the first stage of our new Second World War exhibition which focusses on the experience of individual British soldiers in battle during the conflict. The first stage was completed in time for our reopening in July and survey results indicated that it had been well received by our visitors.

The Museum sees live displays of moving vehicles as a key part of its activity, both in preserving skills, sounds and the wider cultural biography of the collections and as a way of bringing them to life for the public. The Museum is a leader in managing the complex balance of operation against conservation, working in partnership with Cardiff University, Bournemouth University and University College London in understanding the ethical and physical challenges involved. Opportunities for live display were heavily curtailed in 2021 due to Covid, but we were still able to host two Tiger Days as well as deliver an online Tankfest event. The online Tankfest involved displaying new and archive footage of the vehicle fleet as well as material produced specially for the event by tank museums in France, Belgium, Holland, Sweden, Austria and the USA. Enabled by Wargaming.net, the event received over one million viewings of the material produced and demonstrated a new way of delivering Tankfest for the future.

Our success in engaging our audience is demonstrated by the reach we extend and the range of people who visit us. As well as drawing an unusually large proportion of our visitors from C2, D and E social groupings, our research from the 80% of visitors who filled in their gift aid forms showed the average drive time from their homes was over two hours, vital in order to overcome the challenges we face from our location in rural Dorset.

Our volunteers continue to provide invaluable support to the Museum. 80 people devoted 4,946 (2019: 25,486) hours of their time during the course of 2020. Although the hours contributed by our Volunteers has been

Page 4

The Tank Museum Limited (A company limited by guarantee)

Trustees’ Report (continued) For the year ended 31 December 2020

severely impacted by Covid-19 restrictions, the commitment and enthusiasm of our volunteers is greatly appreciated by the Museum, and we are pleased their efforts contribute to and are regularly reflected in our Trip Advisor reviews, which has established the Museum as Dorset’s leading year-round visitor attraction.

The Museum continues to extend its formal education programmes into ‘STEM’ (Science, Technology, Engineering and Maths) subjects. These programmes have been expanded by new investment as part of the Conservation in Action programme with new workshops and materials available for schools and a number were made available online during the year. In 2020, 1,778 school children and accompanying adults visited the Museum as part of formal education programmes, a decrease from the 9,154 who visited in the previous year.

The Museum has developed partnerships with universities to deepen our understanding of our collections. We continue to work with Bournemouth University, University College London and Cardiff University on issues of collection care, and are collaborating with the Arts University Bournemouth to improve the way we project our collections.

Commercial operations

When open to the public the Museum continues to be successful in generating funds. The philosophy of The Tank Museum is that the Museum’s ability to generate income dictates the level of ambition that it can hold in regard to the delivery of its charitable objects. The operations team continue to work hard to generate funds which are used to the benefit of our visitor experience and the continued preservation of the collection. Most of the Museum’s trading activities are consolidated into The Tank Museum Trading Company Limited.

The Museum trading activities were impacted by reduced visitors but with the growth in the online shop this helped to generate a gross profit before administration expenses of £791,493 (2019: £1,229,833). Activities in this area continue to be our shop both online and onsite, restaurant and extensive corporate offering.

Our ability to generate income through our online activities was transformed during 2020. The Museum was able to use its substantial online presence to generate a nine-fold increase in online shop sales as well as attracting significant incomes through Patraeon and Adsense. Gross profits from online activities contributed £284k to our finances.

The Tank Museum Trading Company

This is the Museum’s trading company whose accounts and gift aided donation of £414,200 (2019: £174,398) to the Museum are incorporated into the consolidated accounts.

Investment policy and performance

The investment policy of the Museum is to protect the capital invested and we have adopted a range of risk for our investments depending on the purpose of the funds.

Following a competitive tender process in 2013, Investec were reappointed as our Investment Managers, with full discretionary powers. They manage three funds. The Resource Fund holds funds which are allocated to capital projects in the short term. The 2054 Fund is a designated fund which seeks to cover long term fixed costs and the HLF Catalyst Designated Fund seeks to support the ongoing exhibition development of the Museum.

Page 5

The Tank Museum Limited (A company limited by guarantee)

Trustees’ Report (continued) For the year ended 31 December 2020

Our Investments performed well in 2020, with a recorded gain of £225,079, (2019: Gain of £795,370). All funds exceeded the set benchmarks for the financial year, and trustees remain content that the strategy applied for the funds is the correct one in terms of risk profile and required expected returns.

Remuneration and key management personnel

The trustees consider the board of trustees, the museum director, the deputy director, the company secretary, the head of collections, the curator, the head of marketing and engagement and the head of commercial operations to comprise the key management personnel of the charity. All members of the board of trustees give their time voluntarily and receive no financial benefits from the charity. The remuneration of key management personnel other than the trustees is set out in note 11 to the financial statements.

Financial review

The outbreak of the Coronavirus (COVID-19), declared by the World Health Organisation as a “Global Pandemic” on the 11th March 2020, has impacted the Group in various ways. The Museum was closed to the public between 21 March 2020 to 3 July 2020, from 5 November 2020 to 4 December and again from 31 December 2020 to (provisionally) 16 May 2021. These closures have had a dramatic impact on visitors, down 106k on 2019 (55%). Our Charitable and Trading Activities have been impacted by £1.8 million, but this has been offset by Grants from the DCMS Cultural Recovery Fund, the Coronavirus Job Retention Scheme, the Arts Council National Portfolio Funding and The Heritage Emergency Fund.

We have further maintained our Unrestricted Funds generation for the year by the flexibility of our workforce in agreeing to reduced working patterns, the strong performance from our online shop sales, and cost savings on our overheads.

This has resulted in our Unrestricted Funds before Investment Gains only reducing by £274k to £390k (2019 £664k).

Total funds generated in 2020 were £845k (2019 £1.134 million) which include Investment Gains of £225k (2019 £795k).

The Ministry of Defence continues to fund the running costs of The Tank Museum’s buildings in line with ECAB policy. The board is extremely grateful to the MoD both for their financial support and ongoing technical assistance on all operational matters. The support from the MoD takes the form of paying for services to support the upkeep and operations of buildings, and a number of non-cash items such as depreciation and cost of capital. By combining the MoD’s buying power on services and utilities with the private sector management of the operation, The Tank Museum provides an excellent model for public/ private sector partnership. This income and expenditure is recognised in the Statement of Financial Activities.

The Museum’s liquidity position remains strong with funds invested in a combination of cash, low risk corporate bonds and equities which have exceeded the benchmarked performance criteria. These investments are currently valued at £5,777,950 (2019: £6,205,837). The intention of these investments is to use the funds towards costs related to major exhibitions planned for 2022 and beyond, site improvements and the Museum’s ongoing resilience.

The Museum also has cash totalling £1,646,918 (2019: £1,199,031), which is used to finance the day to day running, and the current building projects of the museum and working capital.

Page 6

The Tank Museum Limited (A company limited by guarantee)

Trustees’ Report (continued) For the year ended 31 December 2020

Reserves policy

The trustees continue to monitor the reserves of the Museum closely and any funds given for specific projects are held as restricted funds which total £12,649,727 (2019: £12,425,823) including endowment funds of £1,298,701 (2019: £1,272,823).

Unrestricted funds are expendable at the discretion of the trustees in the furtherance of the Museum’s objectives in a way that provides inclusive benefit for all. Sufficient free reserves are maintained to ensure that a minimum of £750k in cash is retained at the end of March, our lowest season cash cycle, to finance a further six months of our basic operational costs should revenue be impacted by unforeseen circumstances.

Free reserves are calculated as total unrestricted funds of £13,316,935 (2019: £12,695,724) after deducting designated reserves of £8,974,770 (2019: £9,650,235) and functional assets of the charity which represent a commitment of £2,254,493 (2019: £1,980,270) resulting in a balance of £2,087,672 (2019: £1,065,219). In the current circumstances it is considered prudent to be retaining free reserves at this level.

Plans for the future

The Tank Museum seeks to continuously improve its visitor experience and its collection management in order to further our charitable objects. The Trustees agree annually a rolling five year strategic plan to give direction to the charity. The summary of the plan is:

Following the completion of our redevelopment programme in 2018, we now have the facilities to ensure we have a collection that is fit for display for future generations. The organisation will now deliver a long term programme of display, conservation and restoration. The aim of this work is both to ensure the preservation of our collection and to enable it to be interpreted by an ongoing programme of live vehicle displays for at least the next twenty years.

2) We will develop our collections

The Museum has been successful in building its collection over recent years, with significant long term loans and acquisitions. We maintain a list of vehicles for both active and passive collecting as well as a programme of collecting supporting artefacts and documents.

Delivering a high quality visitor experience is both the ends and the means of achieving our charitable objects. The quality of a visitor’s experience is a key measure of our success in educating the public and also the main driver of encouraging repeat visits and advocating visits by others. Through subscribing to a range of visitor experience benchmarking services the Museum is now able to measure and manage the visitor experience more closely.

We will deliver a series of thematic displays in the existing buildings to bring to life a variety of aspects of the people and vehicles involved in armoured warfare. The next major programme is to redisplay the Second World War collections. The first phase of this delivered in 2020, with the second phase completing in 2021. The display strategy is to have regular cycle of substantial upgrades to the visitor experience, each of which would be expected to have a life-span of 5-10 years and that can be funded primarily from ongoing revenues.

Page 7

The Tank Museum Limited (A company limited by guarantee)

Trustees’ Report (continued) For the year ended 31 December 2020

4) We will develop our online experience to engage more people and improve sustainability The Museum is a leader in the use of social media in this field, with an audience greater than that which can physically come to the site. We will continue to invest in building this audience and will work to generate income from our on-line activities which will enable us to reach this audience sustainably into the future.

5) We will work closely with major stakeholders

In 2018 we became an Arts Council National Portfolio Organisation. We will develop this relationship to become a leading Arts and Heritage Organisation in the UK, building on our successful work with the National Lottery Heritage Fund over nearly 15 years. We will maintain our close ties with the Army, who provide the key services to support our site. We will continue to work closely with our partners at Wargaming.net who help take us to a global audience through their video game “World of Tanks”. In addition we will maintain and build on our relationship with donors and supporters who enable us to achieve our charitable objects.

6) We will improve our sustainability

We will continue to seek to develop our ability to generate income in order to support the delivery of our charitable objects both in the near and long term. This involves maximising our on-site income through the Museum and its associated functions, developing online revenue streams and building a long term designated fund to support our work.

Post reporting date events

In light of the current uncertainties and a provisional reopening date of 17 May 2021 the Trustees have assessed the potential financial implications of the pandemic and have assessed that the Group has sufficient resources to allow it to continue through this period without any additional working funding required.

Employee involvement and employment of the disabled

The charity has implemented a number of detailed policies in relation to all aspects of personnel matters including:

Health & Safety Policy

In accordance with the charity's Equal Opportunities Policy, the charity has long established fair employment practices in the recruitment, selection, retention and training of disabled staff. Full details of these policies are available from the charity's offices.

Structure, governance and management

Constitution

The charity was incorporated on 13 November 2003. Previously it existed as an unincorporated association set up by a Declaration of Trust dated 28 July 1977 derived from the Royal Armoured Corps and The Royal Tank

Page 8

The Tank Museum Limited (A company limited by guarantee)

Trustees’ Report (continued) For the year ended 31 December 2020

Regiment. The registered charity number is 01102661. As of 1 April 2005, the charity commenced trading as a charitable company limited by guarantee registered company number 04962619.

Method of appointment or election of trustees

The board of trustees is shown on page 1. The composition and size of the board is reviewed regularly to assess the skills requirement of the board for it to meet the needs of the museum. The board is responsible for appointing trustees who are recruited from as broad a base as possible by personal contact, and usually serve for three years with a maximum of nine years.

Normally the full board meets four times a year to provide strategic leadership, set the budget and monitor accounts. An Executive Committee meets for a further four meetings to review the business of the museum, the development strategy and plans. In addition, a collections committee meets quarterly to review and assess collections policy.

Policies adopted for the induction and training of trustees

All new trustees are required to undertake an induction programme to give them a structured introduction to the operation of the museum and to give them an opportunity to meet key members of staff.

Organisational structure and decision making

The trustees decide the long-term strategy for the Museum; they set budgets, review quarterly performance of the charity and instigate change.

The Director manages the day to day operations. The Director is assisted by the senior management team, the functional areas being: curatorial, finance, human resources, collections, operations and marketing.

Risk management

The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. The executive committee of trustees has conducted its own review of the major risks to which the charity is exposed and systems have been established to mitigate these risks. No specific external risks have been identified. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charity. These procedures are periodically reviewed to ensure they still meet the needs of the charity. The trustees review all these policies annually, which are monitored on their behalf by a nominated trustee, as is the risk register and policies intended to mitigate risk to the Museum.

Fundraising

All fundraising efforts of the Museum are led by the director and the senior management team and are carried out in line with the Code of Fundraising Practice. Approaches to the public are made only on the site or online to people who have actively chosen to engage with the Museum. The board of trustees are updated on activities quarterly. The Museum is now a subscriber to the Fundraising Regulator.

Page 9

The Tank Museum Limited (A company limited by guarantee)

Trustees’ Report (continued) For the year ended 31 December 2020

Trustees' responsibilities statement

The trustees (who are also directors of The Tank Museum Limited 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. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are trustees at the time when this Trustees' Report is approved has confirmed that:

Auditor

Saffery Champness LLP were re-appointed as auditor to the charity and in accordance with Section 485 of the Companies Act 2006, the trustees will propose a motion re-appointing the auditors at a meeting of the trustees.

This report was approved by the trustees on 20 May 2021 and signed on their behalf by:

Lieutenant General Sir Andrew Ridgway KBE CB DL

Page 10

The Tank Museum Limited (A company limited by guarantee)

Auditor’s Report

For the year ended 31 December 2020

Opinion

We have audited the financial statements of The Tank Museum Limited (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 December 2020 which comprise Consolidated Statement of Financial Activities, the Consolidated Balance sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and notes to the financial statements, including 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:

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 group and parent 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

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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.

Page 11

The Tank Museum Limited (A company limited by guarantee)

Auditor’s Report

For the year ended 31 December 2020

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 10, the trustees (who are also the directors of the parent 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 the 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 group and the parent 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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 12

The Tank Museum Limited (A company limited by guarantee)

Auditor’s Report

For the year ended 31 December 2020

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the group and parent 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with trustees and updating our understanding of the sector in which the group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

Further, the group and parent charitable company are subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements; through a significant fine, litigation or restrictions on the group’s operations. We identified the most significant of such laws and regulations to be those relating to The Health and Safety Executive, particularly in relation to health and safety measures in response to Covid-19.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

Page 13

The Tank Museum Limited (A company limited by guarantee)

Auditor’s Report

For the year ended 31 December 2020

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify noncompliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the parent 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 parent 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 parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Fernyhough (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

Midland House 2 Poole Road Bournemouth Dorset Chartered Accountants BH2 5QY

Statutory Auditors

Date: 26 May 2021

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 14

The Tank Museum Limited (A company limited by guarantee)

Consolidated Statement of Financial Activities (including Income and Expenditure account) For the year ended 31 December 2020

grants
Total funds at 31
December 2020
19
Note
Income from:
Donations, legacies and
2
Other trading activities
3
Investments
4
Charitable activities
5
Other income
6
Total income
Expenditure on:
Costs of generating
voluntary income
Charitable activities
Total expenditure
7
Net gains on investments
Net income
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds at 1 January
2020
11,351,026
Restricted
Funds
2020
£
789,559
-
-
-
789,559
-
624,315
624,315
-
165,244
32,782
198,026
11,153,000

1,298,701
Endowment
Funds 2020
£
-
-
-
-
-
-
-
-
-
63,989
63,989
(38,111)
25,878
1,272,823
13,316,935
Unrestricted
Funds
2020
£
2,008,686
1,608,972
2,257
1,218,867
-
4,838,782
1,589,490
2,794,500
4,383,990
161,090
615,882
5,329
621,211
12,695,724		 25,966,662
Total funds
2020
£
2,798,245
1,608,972
2,257
1,218,867
-
5,628,341
1,589,490
3,418,815
5,008,305
225,079
845,115
-
845,115
25,121,547
 Total funds
2019
£
1,252,527
2,022,274
6,709
2,785,278
37,520
6,104,308
1,935,872
3,829,567
5,765,439
795,370
1,134,239
25,121,547
-
1,134,239
23,987,308

All activities relate to continuing operations. The surplus for the year for Companies Act purposes is equivalent to the net movement in funds above.

The notes on pages 19 to 38 form part of these financial statements.

Page 15

The Tank Museum Limited (A company limited by guarantee)

Consolidated Balance Sheet As at 31 December 2020

Fixed assets
Note
Tangible assets
12
Investments
13
Current assets
Stocks
15
Debtors
16
Current asset investments
13
Cash at bank and in hand
Creditors:
Amounts falling due within one year
17
Net current assets
Total assets less current liabilities
Represented by:
Designated funds
18
Restricted funds
18
Endowment funds
18
Unrestricted funds
18
Total funds		 £
332,774
595,464
1,081,207
1,646,918
3,656,363
(497,727)		 2020
£
18,111,283
4,696,743
22,808,026
3,158,636
25,966,662
8,974,770
11,351,026
1,298,701
4,342,165
25,966,662		 £
321,631
327,776
1,757,002
1,199,031
3,605,440
(827,487)		 2019
£
17,894,759
4,448,835
22,343,594
2,777,953
25,121,547
9,650,235
11,153,000
1,272,823
3,045,489
25,121,547

The financial statements were approved by the trustees on 20 May 2021 and signed on their behalf by:

Lieutenant General Sir Andrew Ridgway KBE CB DL

The notes on pages 19 to 38 form part of these financial statements.

Page 16

The Tank Museum Limited (A company limited by guarantee)

Charity Balance Sheet

For the year ended 31 December 2020

Fixed assets
Note
Tangible assets
12
Investments
13
Current assets
Stocks
15
Debtors
16
Current asset investments
13
Cash at bank and in hand
Creditors:
Amounts falling due within one year
17
Net current assets
Total assets less current liabilities
Represented by:
Designated funds
18
Restricted funds
18
Endowment funds
18
Unrestricted funds
18
Total funds		 £
17,896
820,613
1,081,207
1,365,804		 2020
£
18,111,283
4,696,745
22,808,028
2,988,126
25,796,154
8,974,770
11,351,026
1,298,701
4,171,657
25,796,154		 £
872
331,728
1,757,002
1,050,970
3,140,572
(777,839)		 2019
£
17,894,759
4,448,837
22,343,596
2,362,733

3,285,520
(297,394)
24,706,329
9,650,235
11,153,000
1,272,823
2,630,271
24,706,329

The profit for the financial period dealt with in the financial statements of the parent company was £1,089,825 (2019: £894,185). As permitted by Section 408 of the Companies Act 2006, no separate profit or loss account or statement of comprehensive income is presented in respect of the parent Company.

The financial statements were approved by the trustees on 20 May 2021 and signed on their behalf by:

Lieutenant General Sir Andrew Ridgway KBE CB DL

The notes on pages 19 to 38 form part of these financial statements.

Page 17

The Tank Museum Limited (A company limited by guarantee)

Consolidated statement of cash flows

For the year ended 31 December 2020

2020 2019
Note £ £
Net cash provided by operating activities 20 815,340 1,191,538
Cash flows from investing activities
Dividends, interest and rents from investments 2,257 6,709
Purchase of property, plant and equipment (990,965) (1,141,660)
Proceeds from disposal of investments 1,089,336 881,827
Purchase of investments (436,370) (446,310)
Net cash used in investing activities (335,742) (699,434)
Cash flows from financing activities
Repayments of borrowings (31,711) (128,359)
Net cash used in financing activities (31,711) (128,359)
Change in cash and cash equivalents in the 447,887 363,745
reporting period
Cash and cash equivalents brought forward 1,199,031 835,286
Cash and cash equivalents carried forward 1,646,918 1,199,031

The notes on pages 19 to 38 form part of these financial statements.

Page 18

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2020

1 Accounting policies

The Tank Museum Limited is a company limited by guarantee incorporated in England and Wales. The registered office is Bovington Camp, Wareham, Dorset BH20 6JG.

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Tank Museum Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Statement of Financial Activities (SOFA) and Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

1.2 Company status

The Charity is a company limited by guarantee. The members of the company are the trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

1.3 Incoming resources

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, of when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the Charity, or the Charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Donated services or facilities are recognised when; the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the Charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised. Refer to the Trustees’ Report for more information about their contribution.

The Trustees have decided to recognise the financial contribution of the Ministry of Defence as a gift in kind to the Charity as a realistic estimate can be obtained.

Page 19

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

1 Accounting policies (continued)

On receipt, the donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in the expenditure in the period of receipt.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

1.4 Resources expended

Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Cost of generating funds are costs associated with attracting voluntary income.

Charitable expenditure and basis of allocation of costs comprises those costs incurred by the Charity in the delivery of its activities and services to enable the Charity to meet its charitable aims and objectives. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Staff costs and overhead expenses are allocated to activities on the basis of employee numbers.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity and include audit fees and costs linked to the strategic management of the Charity.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attached are fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

1.5 Going concern

The financial statements have been prepared on the basis that the Charity is a going concern. The Trustees consider that there are no material uncertainties on the charity’s ability to continue its activities for the foreseeable future. They have approved a detailed income and expenditure budget for 2021 and it will be able to meet its obligations and have sufficient time to mitigate against any unforeseen circumstances.

1.6 Tangible fixed assets and depreciation

The museum operates a £500 de minimus value on fixed asset additions, amounts lower than this limit are fully expensed in the year of purchase.

Page 20

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

1 Accounting policies (continued)

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Displays 10 – 33% straight line Furniture, fittings and equipment 10 – 20% straight line

Buildings Over the remaining term of the lease & 10 – 33% straight line

Heritage assets

The majority of the tank collection has been received by donation to the museum. These are considered to be heritage assets under the terms of the Statement of Recommended Practice and consequently no value is placed on either the asset or the donation. The management policy in respect of heritage assets is summarised in note 12.

1.7 Investments

Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year.

Investments in subsidiaries are valued at cost less provision for impairment.

1.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stock.

1.9 Pensions

The group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the group to the fund in respect of the year.

The group also operated a defined benefit pension scheme in the year. Contributions are charged in the Statement of Financial Activities as they become payable in accordance with the rules of the scheme. The scheme is a multi-employer scheme.

Page 21

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

1 Accounting policies (continued)

1.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount paid net of any trade discounts due.

1.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.12 Creditors and provisions

Creditors and provisions are recognised where the company has 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. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.13 Financial Instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction price and are subsequently measured at amortised cost using the effective interest method. Financial assets and financial liabilities classified as receivable or payable within one year are not amortised.

1.14 Fund accounting

Funds held by the Charity are:

Unrestricted general funds – these are funds which can be used in accordance with the charitable projects at the discretion of the trustees.

Designated funds – these are funds set aside by the Trustees out of the unrestricted general funds for specific purposes or projects.

Restricted funds – these are funds that 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.

Further explanation of the nature and purpose of each fund is included in the notes to the accounts.

1.15 Taxation

As a charity, The Tank Museum benefits from various exemptions from taxation afforded by tax legislation and is therefore not liable for corporation tax on income or gains falling within those exemptions.

Page 22

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued)

For the year ended 31 December 2020

2 Donations, legacies and grants

Donations
Legacies
Grants
Gifts in kind
Total		 Restricted
Unrestricted
Total funds
funds 2020
funds 2020
2020
£
£
£
317,600
202,969
520,569
-
51,929
51,929
471,959
985,242
1,457,201
-
768,546
768,546
789,559
2,008,686
2,798,245		 Restricted
Unrestricted
Total funds
funds 2019
funds 2019
2019
£
£
£
23,423
124,315
147,738
-
700
700
225,752
120,375
346,127
-
757,962
757,962
249,175
1,003,352
1,252,527

3 Trading activities

Subsidiary trading income
Turnover
Trading expenses
Cost of sales
Administrative expenses
Interest payable
Salaries and overheads
Net income from trading activities		 Total funds
2020
£
1,608,972
1,608,972
806,366
139,634
-
493,482
1,439,482
169,490		 Total funds
2019
£
2,022,274
2,022,274
753,426
178,861
7,121
669,060
1,608,469
413,806

The subsidiary also received investment income of £nil (2019: £11) which is included in note 4.

On the face of the consolidated statement of financial activities all income is recognised within commercial trading operations and all expenditure is recognised within cost of generating funds, after removal of intercompany consolidation transactions.

The net income figure above is before any distribution of profits to the parent Charity.

Page 23

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

4 Investment income

Total funds Total funds
2020 2019
£ £
Bank interest 2,257 6,709

All of the above in both years relates to unrestricted funds.

5 Income from charitable activities

Primary purpose trade
Ancillary trade
All of the above in both years relates to unrestricted funds.		 Total funds
2020
£
1,111,379
107,488
1,218,867		 Total funds
2019
£
2,659,347
125,931
2,785,278
Total funds Total funds
2020 2019
£ £
Gain on disposal of heritage assets - 37,520

Page 24

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

7
Total expenditure
Current year
Expenditure on raising funds
Fundraising
Publicity and advertising
Fundraising trading
Investment costs
Generation of income
Expenditure on charitable
activities
Primary purpose trade
Intangible expenditure
Governance
Support staff costs		 Staff costs
(Note 11)
-
-
584,464
584,464
-
-
60,944
-
60,944
-
645,408
1,123,585
1,768,993		 Other direct
costs
12,275
90,534
855,083
957,892
-
26,631
1,021,054
768,546
1,789,600
15,371
2,789,494		 Support costs
(Note 8)
20,278
-
-
20,278
-
-
1,532,622
-
1,532,622
20,278
1,573,178
(1,123,585)
449,593		 Governance
costs
-
-
-
-
-
-
35,649
-
35,649
(35,649)
-		 Total 2020
32,553
90,534
1,439,547
1,562,634
-
26,631
2,650,269
768,546
3,418,815
-
5,008,080

Page 25

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

7
Total expenditure (continued)
Prior year
Staff costs
(Note 11)
Expenditure on raising funds
Fundraising
-
Publicity and advertising
-
Fundraising trading
591,159
591,159
Investment costs
Generation of income
-
Expenditure on charitable
activities
Primary purpose trade
60,479
Intangible expenditure
-
60,479
Governance
-
651,638
Support staff costs
1,457,115
2,108,753		 Other direct
costs
14,959
248,556
1,017,309
1,280,824
39,783
1,241,828
757,962
1,999,790
12,892
3,333,289		 Support costs
(Note 8)
24,106
-
-
24,106
-
1,732,300
-
1,732,300
24,106
1,780,512
(1,457,115)
323,397		 Governance
costs
-
-
-
-
-
36,998
-
36,998
(36,998)
-		 Total 2019
39,065
248,556
1,608,468
Investment costs
Generation of income
Expenditure on charitable
activities
Primary purpose trade
Intangible expenditure
Governance
Support staff costs		 1,896,089
39,783
3,071,605
757,962
3,829,567
-
5,765,439

Page 26

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued)

For the year ended 31 December 2020

8
Support costs
Current year
Staff related costs
Other costs
Wages and salaries
National insurance
Pension cost
Prior year
Staff related costs
Other costs
Wages and salaries
National insurance
Pension cost		 Costs of generating
voluntary income
£
444
3,306
14,833
1,155
539
20,277
Costs of generating
voluntary income
£
797
3,505
17,843
1,367
594
24,106		 Governance
£
444
3,306
14,833
1,155
539
20,277
Governance
£
798
3,505
17,841
1,367
594
24,105		 Primary purpose
£
43,569
272,523
1,084,054
79,610
52,868
1,532,624
Primary purpose
£
78,154
236,637
1,259,120
100,146
58,244
1,732,301		 Total 2020
£
44,457
279,135
1,113,720
81,920
53,946
1,573,178
Total 2019
£
79,749
243,647
1,294,804
102,880
59,432
1,780,512

The support costs allocation has been based on employee numbers.

9 Turnover

All turnover arose in the United Kingdom.

Page 27

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

10 Net incoming resources

This is stated after charging:
Depreciation of tangible fixed assets:
- owned by the charitable group
Auditor’s remuneration – audit
– non audit services
Operating lease rentals		 2020
2019
£
£
769,074
766,089
16,050
14,350
3,000
3,000
-
4,246

During the year, no trustees received any remuneration (2019: £nil)

4 trustees received reimbursement of expenses amounting to £721 in the current year, (2019: 2 trustees, £1,797) relating to travel and board meeting costs.

11 Staff costs

Staff costs were as follows:
Wages and salaries
Social security costs
Other pension costs		 2020
£
1,593,613
119,953
55,427
1,768,993		 2019
£
1,905,122
142,477
61,154
2,108,753

The average monthly number of employees was 100 (2019: 107) and the average monthly number of employees during the year expressed as full time equivalents was as follows (including casual and part-time staff):

Museum staff
Administration staff		 2020
Number
2019
Number
71
75
1
5
72
80

No employees received remuneration amounting to more than £60,000 (2019: 1). Key management personnel received remuneration and benefits totalling £316,436 (2019: £360,614) and pension contributions of £15,693 (2019: £16,079).

Page 28

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

12 Tangible fixed assets

Group
Cost
1 January 2020
Additions
Disposals
Transfers
31 December 2020
Depreciation
1 January 2020
Charge for the year
On disposals
31 December 2020
Net book value
31 December 2020
31 December 2019		 Buildings
£
21,185,784
54,745
-
-
21,240,529
4,368,979
535,783
-
4,904,762
16,335,767
16,816,805		 Assets in
the course of
construction
£
762,856
396,888
-
(486,187)
673,557
-
-
-
-
673,557
762,856		 Displays
£
3,021,603
32,757
(241,481)
-
2,812,879
2,891,102
37,534
(236,114)
2,692,522
120,357
130,501		 Furniture
fittings &
equipment
£
1,476,147
506,575
-
486,187
2,468,909
1,291,550
195,757
-
1,487,307
981,602
184,597		 Total
£
26,446,390
990,965
(241,481)
-
27,195,874
8,551,631
769,074
(236,114)
9,084,591
18,111,283
17,894,759

Included in furniture, fittings and equipment are assets held by the trading subsidiary at a cost of £4,075. The assets have been fully written down.

The museum occupies land and buildings owned by the MOD. As noted in the accounting policies, the Ministry of Defence also provides support in the form of utilities and maintenance of the buildings.

Heritage assets

Heritage assets have not been capitalised in the current or previous period. The heritage assets consist of the Museum’s collections both on and off display. They include some three hundred tanks and armoured fighting vehicles, fifty-seven thousand documents, ten thousand books, five thousand images and thirty-two thousand other artefacts. The whole of the collection has been “Designated” as of national importance by the Museums, Libraries and Archives Council.

Page 29

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

12 Tangible fixed assets (continued)

The table below details the heritage assets in the course of being catalogued and the progress to date.

Total 2020 Total 2019
Number Number
Documents <60% completed 57,760 56,929
Journals 2,595 2,581
Maps/technical drawings 3,821 3,806
Photographs and images 263,000 263,000
Total 327,176 326,316

Catalogued heritage assets

Catalogued heritage assets
2020 Net 2019 2018 2017 2016
movement
Number Number Number Number Number Number
Vehicles, trailers, turrets etc. 378 - 378 373 368 361
Audio visual 4,960 253 4,707 4,185 4,098 4,030
Books 10,292 16 10,276 10,007 9,799 9,572
Equipment 5,068 97 4,971 4,851 4,786 4,661
Art/silver 830 (96) 926 827 821 799
Flags 460 - 460 453 436 423
Medals 3,192 17 3,175 3,046 3,016 2,965
Memorabilia 2,979 13 2,966 2,838 2,724 2,582
Models 1,046 2 1,044 1,045 1,012 988
Uniforms 7,077 31 7,046 6,711 6,507 6,188
Weapons 955 6 949 936 899 836
Total 37,237 339 36,898 35,272 34,466 33,405

The heritage assets have been excluded from the balance sheet due to the significant costs that would be involved in the valuation, which are onerous compared with the additional benefit that would be derived by users of the accounts in assessing the trustees’ stewardship of the accounts.

The standards of museum ethics regarding disposal to which The Tank Museum have subscribed as part of being an Accredited Museum do not allow the organisation to dispose of collection items primarily for financial reasons, and objects for disposal must first be offered to other accredited museums free of charge.

During the prior year a Dukw vehicle was sold as it did not fit cohesively with the collection for sales proceeds of £37,250 (note 6). This sale was made in line with the museum code of ethics as outlined above.

Page 30

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued)

For the year ended 31 December 2020

13 Fixed asset investments

Group and Charity
Market value
At 1 January 2020
Additions
Disposals
Gain on investments
At 31 December 2020		 Listed
Securities
£
6,205,837
436,370
(1,089,336)
225,079
5,777,950

The above market value at 31 December 2010 represents investments held as short term of £1,081,207 (2019: £1,757,002) and long term of £4,696,743 (2019: £4,448,835).

The historical cost at 31 December 2020 was £5,282,397 (2019: £5,237,581).

All of the listed securities relate to investment assets held in the UK.

In addition, the Charity holds two £1 shares in its subsidiary undertaking.

14 Principal subsidiaries

Name of undertaking Registered office Class of share held % Held
The Tank Museum Trading Bovington Camp, Wareham, Ordinary 100.00
Company Limited (registered Dorset, BH20 6JG
no. 02236998)

The activity of the above company includes that of retailing souvenirs and books, and operating the trading of the museum.

Page 31

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

15 Stocks

2020
£
Finished goods and goods for resale
332,774
16
Debtors
2020
£
Trade debtors
23,130
Amounts due from subsidiary
-
Other debtors
35,973
Prepayments and accrued income
536,361
595,464
17
Creditors: Amounts falling due within one year
2020
£
Bank loans
-
Trade creditors
140,228
Amount owed to subsidiary
-
Other taxation and social security
36,107
Other creditors
179,204
Accruals and deferred income
142,188
497,727		 Group
2019
£
321,630
Group
2019
£
15,432
-
94,467
217,877
327,776
Group
2019
£
31,711
548,989
-
51,280
141,242
54,265
827,487		 Charity
2020
£
332,774		 2020
£
17,896		 2019
£
872
Charity
2020
£
16,529
260,622
35,072
508,390
820,613		 2019
£
10,875
-
104,360
216,493
331,728
Charity
2020
£
-
140,228
-
36,107
179,204
142,188
497,727		 2020
£
-
59,247
-
34,803
177,653
25,691
297,394		 2019
£
31,711
445,116
84,524
49,283
133,340
33,865
777,839

Page 32

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

18 Statement of funds

Movement of funds for the year

Total unrestricted
funds
12,695,724
Restricted funds
Buildings
10,885,201
Exhibitions
169,154
Revenue
98,645
Current year
Designated
At
1 January
2020
£
funds
Fixed assets
5,031,338
Vehicle
36,224
restoration
2054 fund
2,825,671
General
resource
1,757,002
9,650,235
General funds
Reserves
3,045,489		 Total unrestricted
funds
12,695,724
Restricted funds
Buildings
10,885,201
Exhibitions
169,154
Revenue
98,645
Current year
Designated
At
1 January
2020
£
funds
Fixed assets
5,031,338
Vehicle
36,224
restoration
2054 fund
2,825,671
General
resource
1,757,002
9,650,235
General funds
Reserves
3,045,489		 4,838,782
965
715,150
73,444
Incoming
resources
£
-
-
-
-
-
4,838,782		 (4,383,990)
(456,333)
(106,572)
(61,410)
(624,315)
-
(5,008,305)
Resources
expended
£
(148,221)
(21,404)
-
-
(169,625)
(4,214,365)		 5,329
-
32,782
-
32,782
(38,111)
-
Transfers
in/(out)
£
(1,930)
-
35,000
(700,000)
(666,930)
672,259		 161,090
-
-
-
-
63,989
225,079
Gains
£
-
-
136,885
24,205
161,090
-		 At 31
December
2020
£
4,881,187
14,820
2,997,556
1,081,207
13,316,935
10,429,833
810,514
110,679
8,974,770
4,342,165
Endowment
funds		 11,153,000
1,272,823		 789,559
-		 11,351,026
1,298,701
Total funds 25,121,547 5,628,341 25,966,662

Page 33

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued)

For the year ended 31 December 2020

18 Statement of funds (continued)

At
Prior Year
1 January
2019
£
Designated
funds
New
1,500,000
Workshop
Fixed assets
3,705,744
Vehicle
-
restoration
2054 fund
2,210,236
General
1,990,898
resource
9,406,878
General
funds
Reserves
2,035,158
Total unrestricted
funds
11,442,036
Restricted
funds
Buildings
11,203,599
Exhibitions
132,003
Revenue
109,813
11,445,415
Endowment
1,099,857
funds
Total restricted
funds
12,545,272
Total funds
23,987,308		 Incoming
resources
£
-
-
37,520
-
-
37,520
5,817,613
5,855,133
167,687
17,326
64,162
249,175
-
249,175
6,104,308		 Resources
expended
£
-
(160,135)
(1,296)
-
-
(161,431)
(5,029,755)
(5,191,186)
(486,085)
(12,002)
(76,166)
574,253
-
(574,253)
(5,765,439)		 Transfers
in/(out)
£
(1,500,000)
1,485,729
-
190,962
(400,000)
(223,309)
222,473
(836)
-
31,827
836
32,663
(31,827)
836
-		 Gains
£
-
-
-
424,473
166,104
590,577
-
590,577
-
-
-
-
204,793
204,793
795,370		 At 31
December
2019
£
-
5,031,338
36,224
2,825,671
1,757,002
9,650,235
3,045,489
12,695,724
10,885,201
169,154
98,645
11,153,000
1,272,823
12,425,823
25,121,547

Page 34

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

18 Statement of funds (continued)

Fund descriptions

Designated fund

New Workshop-The trustees originally designated £1.5 million towards funding the new Workshop Build. The build is now complete and the balance transferred to the fixed asset designated fund.

Fixed Assets-The fixed asset designated fund was set up to reflect those assets held by the Charity vital to its continuing objects. At the year-end assets with a net book value of £4,881,187 (2019: £5,031,338) relating to completed capital projects have been derestricted and have been transferred into this reserve.

Vehicle restoration – The Vehicle Restoration designated fund income relates to the sales proceeds from the sale of a heritage asset. In line with Museum regulations the funds will only be used to fund further exhibitions.

2054 fund is a long-term fund to support the ongoing running of the Museum if the lease with the MOD is not renewed by 2054.

General resource fund is a fund to support future building improvements and vehicle restoration.

Restricted Funds

Buildings represent our “At Close Quarters” Phase 2 Main Museum redevelopment and our Conservation Workshop building.

Exhibition funds are funds to fund our ongoing exhibitions.

Revenue funds are the Vehicle Restoration fund and the Charles Burnett III Fund for the restoration of British and Foreign vehicles.

Endowment Funds relate to the HLF Catalyst Endowment Fund. This constitutes an endowment fund which will become expendable in 2037. The income derived from the fund can be used to fund exhibitions.

Page 35

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

19 Analysis of net assets between funds

Fund balances at 31 December 2020 are represented by:

Restricted
Endowment
funds 2020
funds 2020
£
Tangible fixed assets
10,975,724
-
Fixed asset investments
-
1,298,701
Current asset investments
-
-
Current assets
375,302
-
Creditors due within one year
-
-
Total
11,351,026
1,298,701
und balances as at 31 December 2019 are represented by:
Restricted
Endowment
funds 2019
funds 2019
£
Tangible fixed assets
10,885,201
-
Fixed asset investments
-
1,267,494
Current asset investments
-
-
Current assets
267,799
5,329
Creditors due within one year
-
-
Total
11,153,000
1,272,823		 Unrestricted
funds
2020
£
7,135,559
3,398,042
1,081,207
2,199,854
(497,727)
13,316,935
Unrestricted
funds 2019
£
7,009,558
3,181,341
1,757,002
1,575,310
(827,487)
12,695,724		 Total funds
2020
£
18,111,283
4,696,743
1,081,207
2,575,156
(497,727)
25,966,662
Total funds
2019
£
17,894,759
4,448,835
1,757,002
1,848,438
(827,487)
25,121,547

Fund balances as at 31 December 2019 are represented by:

20 Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustment for:
Depreciation charges
Loss on disposal of fixed assets
(Gains)/losses on investments
Dividends, interest and rents from investments
Increase in stocks
(Increase)/decrease in debtors
Decrease/(increase) in creditors
Net cash provided by operating activities		 2020
£
845,115
769,074
5,367
(225,079)
(2,257)
(11,143)
(267,688)
(298,049)
815,340		 2019
£
1,134,239
766,089
-
(795,370)
(6,709)
(81,121)
(85,560)
(259,970)
1,191,538

Page 36

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

21 Analysis of changes in net debt

Current year
Cash in hand
Loans due within 1 year
Loans due after 1 year
Prior year
Cash in hand
Loans due within 1 year
Loans due after 1 year		 Balance at
1 January
2020
£
1,199,031
(31,711)
-
1,167,320
Balance at
1 January
2019
£
835,286
(128,286)
(31,784)
675,216		 Cash flows
£
447,887
31,711
-
479,598
Cash flows
£
363,745
128,359
-
492,104		 Other
non-cash
changes
£
-
-
-
-
Other
non-cash
changes
£
-
(31,784)
31,874
-		 Balance at
31 December
2020
£
1,646,918
-
-
1,646,918
Balance at
31 December
2019
£
1,199,031
(31,711)
-
1,167,320

22 Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted of £55,427 (2019: £61,154). Contributions totalling £nil (2019: £nil) were payable to the fund at the balance sheet date and are included in creditors.

23 Indemnity insurance

Indemnity insurance for the trustees has been taken out giving £3 million of cover at a cost of £2,391 (2019: £2,174).

24 Related party transactions

During the year, a trustee donated £nil (2019: £2,807) to the Charity.

25 Capital commitments

The Charity had capital commitments of £174,794 at the year end in relation to ongoing building projects (2019: £631,309).

Page 37

The Tank Museum Limited (A company limited by guarantee)

Notes to the financial statements (continued) For the year ended 31 December 2020

The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organisation as a “Global Pandemic” on the 11th March 2020, has impacted the Group in various ways. The Museum was closed to the public between 21 March 2020 to 3 July 2020, from 5 November 2020 to 4 December and again from 31 December 2020 to (provisionally) 16 May 2021. During this time the online shop has remained open and voluntary income continues to be received.

The Trust has sufficient cash resources hence does not foresee the need to liquidate investments and realise these losses.

In light of the current uncertainties the Trustees have assessed the potential financial implications of the pandemic and have assessed that the Group has sufficient resources to allow it to continue through this period without any additional working funding required.

Page 38