Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

**REGISTERED COMPANY NUMBER: 05342397 (England and Wales) REGISTERED CHARITY NUMBER: 1111859** 

## **Trustees' Report and** 

**Financial Statements for the Year Ended 31st January 2025 for Challenge Wales** 




Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

**Challenge Wales** 

**Contents of the Financial Statements for the Year Ended 31st January 2025** 

||Page|
|---|---|
|Chair’s statement|1|
|Trustees’ Report|2 to 12|
|Independent Examiner's Report|13|
|Statement of Financial Activities|14|
|Balance Sheet|15 to 16|
|Notes to the Financial Statements|17 to 26|





Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Chair’s Statement for the Year Ended 31st January 2025** 

It gives me pleasure, in my fourth year as Chair of the Charity, to present the Trustees’ report and Financial Statements for the year ended 31st January 2025. 

In spite of the challenges we have faced, the Board of Trustees are incredibly proud of the impact the charity has had on the lives of the young people we serve.  During 2024, we delivered 141 days at sea, having a positive impact on the lives of 330 young people. 

At the end of October 2024, at the time that the report and Financial Statements for year ending January 2024 were submitted, the Trustees were satisfied that the charity was a going concern with 5 months’ runway on cash and plans for a major fundraising drive over the winter. 

_Challenge Wales_ is one of 12 identical yachts built in 2000 for the BT Global Challenge.  Most of them are being used for Sail Training and coded as commercial vessels to MCA standards.  In November 2024, we became aware that a sister vessel, _Sea Dragon_ , was undergoing a refit and routine coding survey, and that the extent of the welding repairs required to the hull was significantly higher than we had anticipated for _Challenge Wales_ ’ winter refit. 

The scope of the repairs is defined by the surveyor and driven by the requirements for the coding of commercial vessels.  With extensive welding repairs comes an associated delay to the start of the sailing season, and as a consequence, reduced capacity for the charity to generate income. 

In an extremely challenging fund-raising landscape, and with the loss of nearly three months of the 2025 sailing season, the Board of Trustees considered a number of scenarios and concluded that the best way to continue the charitable objects of Challenge Wales would be to seek an agreement with another sail training charity to take over the ownership and operation of the vessel.  Tall Ships Youth Trust have a fleet of four (now five) Challenge 72 vessels, and their charitable objects are almost identical to those of Challenge Wales.  They have an ambition to grow their presence in Wales, and the experience and scale to be able to continue the legacy of the charity. 

Through this difficult period, the Trustees strengthened the board by appointing an additional Trustee, Susan Went, who has extensive governance experience, and brought in a volunteer Assistant Treasurer to ensure close management of cash flow. Board meetings were held more frequently, and throughout the process, the board carried out tests to ensure that the charity remained solvent. 

It’s been an extremely challenging time for the team – trustees, employees and volunteers – and none of this would have been possible without their commitment and the generous support of our funders. 


Helen Phillips Chair 

30 June 2026 

Page 1 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Trustees' Report for the Year Ended 31st January 2025** 

The Trustees, who are also directors of the Charity for the purposes of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 31st January 2025. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 102 (effective 1 January 2019). 

## **Objectives and activities** 

## **Objectives** 

The Challenge Wales charity works with young people aged 12 – 25 years on life-changing accredited personal development voyages to improve their prospects. This is achieved through activities delivered onboard the sail training vessel; _Challenge Wales | Wales’ Tall Ship_ . 

The vision that helps shape the focus of the Charity is; “To become the premier provider of youth development activities in Wales and the South West through sail training”. 

## **Mission statement** 

Challenge Wales' mission statement is; “To educate young people aged between 12 and 25 years in sail training and navigation so as to develop essential life skills including team development, communication, respect for others, self-confidence, self-esteem and interdependence enabling them to grow to full maturity as individuals and members of society and improving their conditions of life”. 

## **Significant activities** 

Activities on _Challenge Wales_ promotes the growth of group identity and personal self-confidence, enables achievement and success, places everyone on a level playing field and presents challenging experiences in a stimulating, positive, natural environment regardless of ability and background. Whether joining as an individual or as a group the aim is to give young people the opportunity they deserve to develop as positive citizens. Challenge Wales’ transformative outdoor learning programme is also evidenced to improve young people’s mental health and raises their awareness of ocean literacy and sustainability issues. 

Challenge Wales is proud of its reputation in the youth work sector, particularly in Wales, for delivering innovative & effective services that are evidenced to be changing lives positively. 

## **Fundraising voyages:** 

As a developing Charity receiving no government grants the Charity relies on fundraising voyages to help bring in revenue. These mainly take the form of one day big boat sailing days together with delivery voyages when the boat isn’t used by youth groups. These voyages are also a critical part of our volunteer crew application process as every volunteer has to have sailed on _Challenge Wales_ as a guest before becoming a volunteer. 

## **Accreditation and Awards:** 

During the year ended 31 January 2025m Challenge Wales was a Sailability Centre and Training Centre with the Royal Yachting Association (RYA) and continues to be an Approved Activity Provider for the Gold Residential Duke of Edinburgh’s Award (DofE) 

The Charity also offers Agored Cymru accreditation in Teamwork, Developing Own Confidence and Environmental Project. Challenge Wales is also a provider of the John Muir Award. 

Challenge Wales is a member of CWVYS (Council of Wales Voluntary Youth Service), C3SC (Cardiff Third Sector Council), Glamorgan Voluntary Services (GVS), Youth Cymru and the Association of Sail Training Organisations (ASTO). 

## **Membership Scheme:** 

The Challenge Wales Membership Scheme is set up as a way to generate funds for the Charity 

Page 2 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Trustees' Report for the Year Ended 31st January 2025** 

## **The Public Benefit resulting from Sail Training** 

Various academic research has provided a wealth of evidence about the benefits of sail training voyages. 

- A study of the Value of Sail Training undertaken by the University of Edinburgh found dramatic and measurable improvements in personal confidence and the ability to work with, and understand differences, of other people. These benefits were sustained over time after the voyage had ended. 

- A study carried out by the University of Sydney found that Sail Training was capable of producing social capital in its participants, showing success in fostering networks and alliances. 

An independent evaluation of Challenge Wales over three years as part of its ‘ _Voyages of Discovery’_ project and carried out by the Social Effectiveness Research Centre found that sail training improves teamwork & communication skills, social networks and confidence as well as mental health and wellbeing. The project created learning, progression routes and a value-for-money approach. 

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. We review our aims, objectives and activities each year. This review looks back at what we achieved and the outcomes of our work in the previous year. This review helps us ensure our aims objectives and activities remain focused on our stated purposes. 

## **Volunteering:** 

Challenge Wales wouldn’t be the Charity it is without its amazing volunteers who donate their time to work with young people, become our crew on adult and fundraising voyages, maintain the boat and help us fundraise as well as providing us with a significant mix of skills, knowledge and expertise in various areas. 

Those wishing to become volunteer crew have to have a volunteer qualifying assessment voyage to ensure they not only have the right skills but more importantly the right outlook and soft skills for working with young people and the commitment. All those who become volunteers with Challenge Wales will require two successful character references in addition to an enhanced DBS check. 

All volunteers also need to attend a shore-side volunteer induction as part of the volunteering process enabling them to learn about the Charity as much as we learn about the new volunteers.  The Charity has changed its recruitment of volunteer crew from previously allowing people with no sailing experience to become (trainee) crew to insisting that volunteers have either Day Skipper qualifications, sailing experience and knowledge or experience in instructing / teaching. This has become an important move enabling those who are still inexperienced in sailing to become competent, confident and progress up the ranks while providing a slightly more experienced volunteer and filling the gaps left by volunteers who do not progress beyond that of a trainee. 

Challenge Wales depends significantly on its volunteers for both crewing and shore-side management. These dedicated individuals guide the charity’s operations at Board level, help with maintenance, oversee accounting and Treasurer duties and contribute to strategic planning and various sub-committees. It’s evident that Challenge Wales wouldn’t be the organisation it is today without the invaluable support of its volunteers, to whom the charity remains deeply grateful. 

Page 3 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

**Challenge Wales** 

**Trustees’ Report for the Year Ended 31st January 2025** 

## **Achievement and Performance:** 










## _In Summary_ 

This reporting year to 31 January 2025 was a year of exciting voyages, Small Ships Racing, new destinations visited, new young people jumping onboard, as well as seeing familiar faces, and rolling out a corporate _Leadership Development Programme_ to help raise much needed funds. 

However, as the sail training season finished, a couple of months before the end of 2024 it was realised that the charity would be facing unexpected additional costs early in 2025 for maintenance that would reshape the charity for the long term. 

## **Sail Training Activities and Impact** 

Challenge Wales is dedicated to supporting young people by providing transformative sail training experiences designed to develop crucial life skills. 

This is achieved through hands-on, immersive programmes at sea for those aged 12 – 25 years where participants face real-life challenges of working with others, decision making, problems solving and teamwork. 

Young people are empowered to build confidence, increase their resilience, foster communication skills, and improve their knowledge of ocean literacy. The friendships and sense of achievement gained while sailing are proven to boost self-esteem and support better mental health outcomes. Beyond the vessel, Challenge Wales offers an interactive shore-side programme ‘Sea and Tell’ that introduces participants to maritime life and environmental sustainability. This outreach serves those not yet ready for voyages but still offers a gateway into new skills, knowledge, raise awareness of the marine industry, brings STEM subject to life and personal growth through engaging boat and land-based activities. 

Challenge Wales operates a bursary scheme that makes many of our sail training opportunities more affordable for young people. Additional funding assistance may also be available for individuals and groups who need extra support, depending on the funding the charity has available. This approach ensures our voyages remain as accessible as possible to those who can benefit the most. Our work would not be possible without the generosity of charitable Trusts and Foundations, and we are especially grateful to the Reardon Smith Nautical Trust, whose support is helping to launch new generations on their maritime journeys. 

Page 4 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Trustees' Report** 

## **for the Year Ended 31st January 2025** 

Challenge Wales’ activities often form part of an accredited learning offering participants _Agored Cymru_[1] accreditation or RYA[2] sailing qualifications supporting literacy, numeracy, STEM and ocean literacy learning.  We also provide activities that form part of young peoples’ participation in the _Duke of Edinburgh’s Award scheme_[3] . 

Challenge Wales champions inclusivity by engaging young people from a diverse range of backgrounds. Working with youth organisations, local authorities, third sector and individuals, our reach includes: 

- Care-experienced young people 

- Neurodiverse individuals 

- Young carers 

- Those facing disadvantaged – financial, educational or social 

- Individuals Not in Employment, Education or Training (NEET) 

- Black, minority, ethnic and traveller communities 

- Young people at risk of homelessness 

- Those with additional learning needs or disabilities 

- Those with poor mental health 

- High achievers 

- Those seeing marine careers 

- LGBTQ groups 

- Young people with mental health challenges 

Our programme aligns with leading local and national frameworks – including the Welsh Government’s Well-being of Future Generations Act and the Youth Work Strategy for Wales – by providing sail training that empowers, educates and promotes equality. 

In 2024, Challenge Wales signed up to the Armed Forces Covenant – a promise that the armed forces community will be treated fairly and equally as well as being a signatory of ‘Show the Salary Wales’ which was a campaign aiming to make recruitment equitable and promoting transparent and fair recruitment practices. 

Challenge Wales uses a robust Theory of Change to guide its impact measurement. Our framework clearly sets out how our activities lead to intended outcomes for young people, including personal growth, new skills, social connections, and improved mental wellbeing. By mapping this change process and applying structured tools to track progress, we ensure our programmes are both purposeful and demonstrably effective. 

We closely monitor all our voyages and most young people taking part in Challenge Wales voyages reported significant improvements. Of those that completed the Outcomes Wheel in 2024, 58% evidenced improvements in mental health and physical wellbeing, 76% showed improved confidence and self-esteem, 70% said they had improved social networks [through making friends on the voyage] and 77% showed improved teamwork abilities. 

## _**Beyond Sail Training**_ 

In 2024 we saw young volunteers, who were part of the Challenge Wales Youth Panel start their volunteering journey with us and we evidenced more beneficiaries continuing to sail with us in a volunteer capacity. It was still difficult bringing all our Youth Panel members together, at the same time, as they had busy lives but they were able to contribute individually and supported by our Youth Development Officer. 

> 1 https://www.agored.cymru/ 

> 2 https://www.rya.org.uk/ 

> 3 https://www.dofe.org/ 

Page 5 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

**Trustees' Report for the Year Ended 31st January 2025** 

## **Fundraising** 

**Fundraising through sailing:** When not delivering youth programmes, we maximise the use of our sailing resources to generate funds that help create new opportunities for young people. 

Our adult sailing days continued to help us to recruit new volunteers, some of which we have seen return in 2024. 

**Fundraising Shore-Side and Online:** Online shopping platforms, donations, a runner in the London Marathon and delivering talks to the community helped raise awareness of Challenge Wales and bring in some funds. 

The Charity follows the Code of Fundraising Practice. The Code sets the standards for fundraising activities and its commitment helps us maintain transparency, accountability and integrity in our fundraising efforts. 

## **The Challenge Wales Team** 

## _Leadership and management_ 

Advancing the charity’s mission through leadership and management, the Business Development Manager oversees daily operations ensuring activities are aligned with the Charity’s goals and meet regulatory standards. 

The charity operates with a very small paid team; a Skipper, a Youth Development Officer and Administrator. This small but dedicated team ensure that we have an outreach programme, a volunteer recruitment process and makes sure everything behind the scenes runs smoothly. 

## _Our Amazing Volunteers_ 

Our impact and work would not have achieved its success if it wasn’t for our amazing and dedicated volunteers. This year is no exception, and we have certainly seen some volunteers go above and beyond with their assistance and support.  They have continued to support the charity with maintenance activities to keep the boats ship-shape, being positive adult role models on the boat, and helping to deliver our sail training voyages. 

The recruiting, developing, supporting, training and ensuring volunteers are at the heart of everything we do.  These activities, up until now have followed the _Investing in Volunteers Framework[4]_ enabling the Charity to voluntarily, benchmark itself against their quality standard. This year we were awarded funding to work towards the Investing in Volunteer Quality Mark– the UK standard for excellence in volunteer management helping Challenge Wales to strive towards improving, and excelling, its volunteer practices and ensuring a valuable and positive experience for volunteers whichever role they undertake. However, this became difficult to complete due to the challenges of running a small charity and having to concentrate on raising funds. 

4 https://investinginvolunteers.co.uk/ 

Page 6 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Trustees' Report** 

**for the Year Ended 31st January 2025** 

## **Maintaining Challenge Wales** 

With the help of volunteers, we kept Challenge Wales operational throughout the season. However, as we planned for our 2025 refit activities (towards the end of 2024) an issue was identified in one of our sister ships which had also occurred in _Challenge Wales_ . This was going to significantly increase our refit costs and jeopardise the operation of the charity. With this anticipated additional cost we spoke to a couple of our funders who provided us with funding to ensure we could complete our maintenance programme. 

_Adventure Wales_ was taken out of circulation for 2023, and although it was decided in 2024 that she would be sold, it was not until April 2025 that she was eventually sold, releasing much needed funds. 

## _Crew development and training_ 

In 2023, we relaunched the Volunteer Competency Log – a Challenge Wales volunteer crew scheme designed to follow a progression framework based on both the RYA training syllabus and the Charity’s own standards. This scheme enables volunteers to achieve various levels of competency, allowing them to undertake different roles on the boat while gaining thorough knowledge of safety, systems and soft skills. 

Our crew development programme also provides opportunities for those wishing to develop their sailing CV. 

Our shore-side crew training programme ‘SEA-ing the Bigger Picture’ compliments this with training on safeguarding and working with young people. 

## **Governance and Management** 

Challenge Wales is a Charitable Company Limited by Guarantee. Trustees usually meet each month and review all charity policies and operating procedures each year which have been developed by the operating team. They are responsible for the strategic management and administration of the organisation. 

The Trustees, and Management, are aware of the Charity Governance Code, a practical tool to help charities and their trustees develop high standards of effective governance practices and use this to guide to develop the charity and strengthen governance. 

Page 7 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

**Challenge Wales** 

## **Trustees' Report** 

**for the Year Ended 31st January 2025** 

## **Priorities and Developments for 2025 – A Legacy To Be Proud Of** 

We always looked ahead with excitement, building on our past achievements and moving the charity forwards. However, with increased maintenance costs utilising reserves and delaying the start of our sailing season in 2025, Trustees made the very difficult decision to close the charity after 16 years – a decision that wasn’t taken lightly. 

2025 would become a year of reducing costs and strong financial stewardship in the office, working with new funders to ensure young people continued to have access to a life-enhancing activity. On board we would welcome a temporary Bosun and a Mate to help ensure delivery of activities could be achieved and we were in a position to maximise our income. 

As the charity navigated particularly financially challenging times we welcomed an additional Trustee to the board. 

The legacy of Challenge Wales stretches beyond individual voyages, rippling through schools, communities, families, volunteers, donors and funders – and it is a legacy we can all be very proud of. But the story doesn’t stop there as Challenge Wales sail training vessel will continue under the new ownership of Tall Ships Youth Trust, securing the legacy of giving young people across Wales access to life-changing voyages plus providing a volunteer pathway enabling volunteers to continue their journey. This collaboration between the two charities will ensure a lasting legacy – protecting the past, sustaining the present and creating new opportunities for the future. 

## **Thank You** 

Challenge Wales would like to thank the individual donors, friends, trusts and funders who have believed in us and supported us this year. Your support has been life-changing to many of the young people we have had the pleasure of welcoming onboard. 

We extend our heartfelt gratitude to all the companies that support with their help, guidance and services enabling us to carry out our outdoor learning programmes. 

We also want to express our deep appreciation to our volunteers for their invaluable contributions to crewing, maintenance, fundraising, those that sit on a committee, our Board Members as well as our amazing staff team. 

Thank you to everyone who has been with us on our 16 year journey – it’s been epic, memorable and life-changing! 

## **We really appreciate everyone’s help and support and you are really making a difference in positively transforming young lives – Thank You** 





Page 8 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Organisational Structure & Trustees** 

## **Governing document** 

The Charity, registration number 1111859, is a company limited by guarantee and governed by its Memorandum and Articles of Association. It received its charitable registration and became an incorporated company, number 05342397, on the 25 January 2005. 

## **Recruitment and appointment of new Trustees** 

Potential Trustees are invited to attend one of Challenge Wales' Trustee meetings as an observer, although not a compulsory route to becoming a Trustee it is encouraged to give the potential trustee an insight into the Charity. 

Trustees are appointed at any board meeting and are chosen from individuals interested in the work of the Charity. In an effort to maintain a diverse and skilled mix of Board members, Trustees are required to provide a list of their skills (and update it annually through a skills audit). This enables the Trustees to identify gaps in the board skills mix and address these. 

## **Organisational structure** 

The Charity employs a Business Development Manager who provides strategic leadership and overseas all operations and staff, which includes a full time Sea Staff Skipper, part time Administrative Assistant and part time Youth Development Officer. A Trustee fulfils the role of Treasurer. The Charity also has a designated Child Protection and Safeguarding Officer and this role is currently undertaken in a volunteer capacity. Challenge Wales operates a Marine Committee with a responsibility for boat maintenance and safety, a Volunteer Training Committee responsible for the personal development of all volunteer crew and a newly formed Fundraising Committee tasked with the responsibility of diversifying the income of the charity in particular through growing community fundraising. 

The Chair of the Board of Trustees, a volunteer role, has oversight of the day-to-day operations of the charity. 

## **Induction and training of new Trustees** 

New Trustees may or may not be familiar with Challenge Wales' activities. New Trustees are provided with an induction pack which includes the Memorandum & Articles of Association, the current annual Report and Accounts, a copy of the previous board meeting minutes and links to the Charity Commission publications "The Essential Trustee" and "The Hallmarks of an Effective Charity". A Disclosure and Barring Service (DBS) check is undertaken following successfully receiving two character references. 

## **Registered office** 

Crown House Windsor Road CF64 1JG 

## **Trustees during the year ended 31 January 2025** 

Ms H Phillips MSc, BSc (Eng) (Hons), ACGI Chair Mr D. P. Chapman B.A., F.C.A., DChA Treasurer Ms K. Mason B.A. (Hons),MSc (Econ), MIHSM Chair of Marine Committee 

Ms S Went was appointed a Trustee on 7 March 2025 

**Independent examiner** Menzies LLP Hodge House 114-116 St Mary Street Cardiff CF10 1 DY 

**Bankers** Barclays Bank Plc Port Talbot, West Glamorgan, SA13 1LJ 

Page 9 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Trustees' Report** 

## **for the Year Ended 31st January 2025** 

## **Financial review Results** 

The Charity reports a deficit on unrestricted funds for the year amounting to £11,798 (2024: deficit £68,313). This has resulted in the level of unrestricted funds carried forward to next year decreasing from £372,426 to £360,628 (2024: decreasing from £440,739 to £372,426). These unrestricted funds include a revaluation reserve amounting to £286,961 (2024: £286,961), which arose from the revaluation of the Challenge Wales yacht. 

Restricted funds brought forward and amounts received during the year have been fully expended in the year with the exception of those stated in note 17 to the accounts, 

## **Investment policy and objectives** 

The Charity has no investment powers except to place any surplus funds into deposit accounts. 

## **Going concern** 

During the year ending 31 January 2026, the yacht Challenge Wales was recoded at a cost of some £130,000. In view of the ever increasing costs of owning and operating the vessel, the Trustees of Challenge Wales made the decision to seek an agreement with another Charity to take on the ownership and operation of the Challenge Wales Yacht. On 1 November 2025 the ownership of the vessel was transferred to Tall Ships Youth Trust, a company limited by guarantee registered in England No. 567460 (Charity number 314229). 

Following the transfer of the vessel, the Charity, Challenge Wales will cease operations, Accordingly, the financial statements for the year ended 31 January 2025 are prepared on a breakup basis, as opposed to a going concern basis of accounting, 

## **Reserves policy** 

In view of the fact the Trustees consider that the Charity is no longer a going concern, a reserves policy is no longer applicable. 

Approved by order of the board of Trustees on 30 June 2026 and signed on its behalf by: 


............................................. D. P. Chapman, B.A. F.C.A. Dip ChA – Trustee & Treasurer 

Page 10 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Independent Examiner's Report to the Trustees of Challenge Wales** 

## **Independent examiner's report to the trustees of Challenge Wales ('the Company')** 

I report to the charity trustees on my examination of the accounts of the Company for the period 1 February 2024 to 31 January 2025. 

## **Responsibilities and basis of report** 

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

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

## **Independent examiner's statement** 

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

1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act;or 2.the accounts do not accord with those records; or 

3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or 

4.the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). 

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

## **Emphasis of Matter - Accounts prepared on a basis other than going concern** 

I draw attention to Note 1 in the financial statements which describes the trustees' decision to cease operations and wind up the charity. As a result, the trustees do not consider the charity to be a going concern and have prepared the financial statements on an alternative basis. My statement is not modified in respect of this matter. 

. 

Mr Clive Edwards Menzies LLP 5[th] Floor Hodge House 114-116 St Mary Street Cardiff CF10 1DY 30 June 2026 

The notes on pages 16 to 25 form part of these financial statements 

Page 11 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Statement of Financial Activities (incorporating an Income and Expenditure account) for the Year Ended 31st January 2025** 

|||||**2025**|**2024**|
|---|---|---|---|---|---|
|||**Unrestricted**|**Restricted**|**Total funds**|**Total funds**|
|||**funds**|**funds**|||
||Notes|**£**|**£**|**£**|**£**|
|**Income and endowments from**||||||
|Donations and legacies||21,364||21,364|50,054|
|**Charitable activities**|4|||||
|Core funding||94,743|210,781|305,525|119,273|
|Investment income|3|59|-|59|618|
|Other income|2|3,036|-|3,036|4,360|
|**Total**||119,203|210,781|329,984|174,305|
|**Expenditure on**||||||
|Raising funds||1,118|-|1,118|6,170|
|**Charitable activities**||||||
|Core funding||129,883|140,781|270,664|236,448|
|**Total**||131,001|140,781|271,782|242,618|
|**Net (expenditure)/income**||(11,798)|70,000|58,202|(68,313)|
|**Other recognised gains**||||||
|Gain on revaluation of fixed assets||-|-|-|-|
|||(11,798)|70,000|<br>58,202|(68,313)|
|**Net movement in funds**||||||
|**Reconciliation of funds**||||||
|**Total funds brought forward**||372,426|-|372,426|440,739|
|**Transfer between funds**||-|-|-|-|
|**Total funds carried forward**||360,628|70,000|430,628|372,426|



The notes on pages 16 to 25 form part of these financial statements 

Page 12 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Balance Sheet** 

## **At 31st January 2025** 

|||||**2025**|**2024**|
|---|---|---|---|---|---|
|||**Unrestricted**|**Restricted**|**Total funds**|**Total funds**|
|||**funds**|**funds**|||
||Notes|**£**|**£**|**£**|**£**|
|**Fixed assets**||||||
|Tangible assets|10|503,845|-|503,845|485,727|
|Investments|11|100|-|100|100|
|||503,945|-|503,945|485,827|
|**Current assets**||||||
|Stock||400|-|400|400|
|Debtors|12|12,027|-|12,027|44,766|
|Cash at bank and in hand||22,896|70,000|92,896|65,005|
|||35,323|70,000|105,323|110,171|
|**Creditors**||||||
|Amounts falling due within one year|13|(178,640)|-|(178,640)|(60,447)|
|**Net current (liabilities)/assets**||(143,317)|70,000|(73,317)|49,724|
|**Total assets less current liabilities**||360,628|70,000|430,628|535,551|
|**Creditors**||||||
|Amounts falling due after more than one|||-|||
|year|14|-||-|(163,125)|
|**Net assets**||360,628|70,000|430,628|372,426|
|**Funds**|17|||||
|Unrestricted funds||||360,628|372,426|
|Restricted funds||||70,000|-|
|**Total funds**||||430,628|372,426|



The notes on pages 16 to 25 form part of these financial statements 

Page 13 

continued... 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Balance Sheet - continued At 31st January 2025** 

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st January 2025. 

The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31st January 2025 in accordance with Section 476 of the Companies Act 2006. 

The Trustees acknowledge their responsibilities for 

- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and 

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

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies and with the Financial Reporting Standard 102 (effective January 2019). 

The financial statements were approved by the Board of Trustees on 30 June 2026 and were signed on its behalf by: 


............................................. 

Ms H Phillips MSc, BSc (Eng) (Hons), ACGI 


............................................. Mr D. P. Chapman, B.A., F.C.A., DChA –Trustee &Treasurer 

Company Number 05342397 

The notes on pages 16 to 25 form part of these financial statements 

Page 14 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

**Challenge Wales** 

## **Notes to the Financial Statements** 

**for the Year Ended 31st January 2025** 

## **1. Accounting policies** 

## **Basis of preparing the financial statements** 

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets. 

## **Going concern** 

During the year ending 31 January 2026, the yacht Challenge was recoded at a cost of some £130,000. In view of the ever increasing costs of owning and operating the vessel, the Trustees of Challenge Wales made the decision to seek an agreement with another Charity to take on the ownership and operation of the Challenge Wales Yacht. On 1 November the ownership of the vessel was transferred to Tall Ships Youth Trust, a company limited by guarantee registered in England No. 567460 (Charity number 314229). 

Following the transfer of the vessel, the Charity, Challenge Wales will cease operations, Accordingly, the financial statements for the year ended 31 January 2025 are prepared on a breakup basis, as opposed to a going concern basis of accounting, 

## **Exemption from preparing a cash flow statement** 

Exemption has been taken from preparing a cash flow statement in accordance with the Financial Reporting Standard 102 (effective January 2019). 

## **Income** 

Donations are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. 

Incoming resources from tax reclaims are included in the statement of financial activities at the same time as the gift to which they relate. 

Investment income is recognised on a receivable basis. 

Grants receivable for revenue purposes are credited to the income and expenditure account when they become due. Capital grants, received to fund the purchase of fixed assets, are held in a restricted fund and transferred to general funds over the expected useful life of the related assets. 

## **Expenditure** 

Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. 

Costs of generating funds are the costs of goods for resale. 

Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. 

## **Raising funds** 

Raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading. 

Page 15 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

**Challenge Wales** 

## **Notes to the Financial Statements - continued for the Year Ended 31st January 2025** 

## **1. Accounting policies - continued** 

## **Support costs** 

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. 

Governance costs include costs of the preparation and examination of the statutory accounts and the cost of any legal advice to Trustees on governance or constitutional matters. 

## **Tangible fixed assets** 

Depreciation is provided at the following annual rates in order to write off the cost, less residual value, of each asset over its estimated useful life. Depreciation commences from the date an asset is fully commissioned. 

- Challenge Wales Yacht 20 years 

- -Challenge Wales Standing Rigging 10 years 

- Adventure Wales Yacht 10 years 

- RIB safety boat 10 years 

Fixed assets purchased from unrestricted funds and with an initial value of over £1,000 are capitalised at cost. All Fixed assets purchased from restricted funds are capitalised at cost. 

## **Taxation** 

The company is a registered Charity and all of its income is primary purpose and is therefore exempt from taxation. 

## **Operating leases** 

Rentals payable under operating leases are charged in the statement of financial activities on a straight line basis over the lease term. 

## **Investments** 

Fixed asset investments are included at market value at the balance sheet date. 

## **Stock** 

Stock comprises of fuel bunkered on Challenge Wales and is valued at cost. 

## **Debtors** 

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

## **Creditors and provisions** 

Creditors and provisions are recognised where the Charity 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. 

## **Functional currency** 

The Company’s functional and presentation currency is the pound sterling. 

## **2. Other trading activities** 

|Sundry income and merchandise|**2025**<br>**£**<br>3,036<br>3,036|2024<br>£<br>4,360<br>4,360|
|---|---|---|



Page 16 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Notes to the Financial Statements - continued for the Year Ended 31st January 2025** 

## **3. Investment income** 

|Deposit account interest<br> <br>**4.**<br>**Income from charitable activities**<br>Membership subscriptions<br>Sail days and training courses<br>Sail Training Activities<br>Reardon Smith Nautical Trust<br>Reardon Smith Nautical Trust<br>Garfield Weston<br>ASTO<br>Sports Council for Wales<br>Wales Council for Voluntary<br>Action<br>Wales Council for Voluntary<br>Action<br>Third Sector<br>Awards for All<br>Julian Hodge Bank Limited<br>Simon Gibson<br>Seven Seas<br>Enterprise cars<br>James Myatt<br>Royal Thames Yacht Club<br>CWYVS<br>Merthyr County Borough<br>Council<br>St James’ Place Foundation<br>Sail Training International<br>Millennium Stadium Charitable<br>Trust<br>**5.**<br>**Support costs**<br>Core funding<br>Support costs, included in the above, are as follows<br>Property rent and rates<br>Light, heat and water<br>Telephone<br>Accountancy and legal fees<br>Office consumables<br>Marketing<br>Office repairs and small equipment<br>Bank charges|**2025**<br>2024<br>**£**<br>£<br>59<br>618<br>**2025**<br>2024<br>**£**<br>**£**<br>7,947<br>7,916<br>2,020<br>1,955<br>84,777<br>35,995<br>41,859<br>49,141<br>70,000<br>-<br>20,000<br>590<br>4,090<br>21,066<br>-<br>6,030<br>-<br>15,792<br>-<br>3,438<br>-<br>19,267<br>-<br>500<br>-<br>4,290<br>-<br>4,225<br>-<br>-<br>2,000<br>-<br>-<br>900<br>1,725<br>978<br>-<br>7,423<br>-<br>-<br>-<br>5,000<br>-<br>3,375<br>-<br>2,500<br>**305,525**<br>119,273<br>**Other**<br>**Governance**<br>**costs**<br>**Totals**<br>**£**<br>**£**<br>**£**<br>15,976<br>2,724<br>18,700<br>**2025**<br>2024<br>**£**<br>£<br>13,035<br>11,347<br>1,307<br>1,064<br>300<br>2,236<br>2,724<br>1,846<br>616<br>1,084<br>618<br>200<br>-<br>100<br>150<br>-<br>18,700<br>17,927|2024<br>**£**<br>7,916<br>1,955<br>35,995<br>49,141<br>-<br>4,090<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>900<br>978<br>7,423<br>-<br>5,000<br>3,375<br>2,500|
|---|---|---|



Page 17 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Notes to the Financial Statements - continued for the Year Ended 31st January 2025** 

## **6. Net income is stated after charging:** 

|Depreciation and impairment charge - owned assets<br>Hire of life rafts<br>Operating leases<br>Loan interest<br>Independent Examiner’s fee|**2025**<br>**£**<br>2,289<br>330<br>11,800<br>10,088<br>1,650|2024<br>£<br>981<br>2,283<br>7,800<br>6,707<br>1,595|
|---|---|---|



## **7. Analysis of staff costs, trustee remuneration and expenses and the costs of key management personnel** 

||**2025**|2024|
|---|---|---|
||£|£|
|Salaries and wages|102,116|90,408|
|Social security costs|4,071|2,665|
|Pension costs|2,315|1,859|
||108,502|94,932|



The key management personnel of the Charity comprise the Trustees. The total employee benefits of the key management personnel of the Charity were £41,605 (2024: £39,250). 

Ms V Williams, a Trustee has a two-year contract of employment with the Charity and received a salary of £41,605 (2024: £39,250) in respect of her services as Marketing and Business Development Manager. This remuneration is made by way of provision in the Charity’s governing documents. 

None of the other Trustees received remuneration or expenses in this or the previous year. No employees received emoluments in excess of £60,000. 

## **8. Staff numbers** 

The average monthly number of employees during the year was as follows: 

||**2025**|2024|
|---|---|---|
|Business Development and Administrative support|2.0|2.0|
|Ship’s skippers and mates|1.0|0.8|
||3.0|2.8|



Page 18 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Notes to the Financial Statements - continued for the Year Ended 31st January 2025** 

## **9. Comparatives for the statement of financial activities** 

||**Unrestricted**|**Restricted**|**Restricted**|**Total funds**|
|---|---|---|---|---|
||**funds**|**funds**|||
||**£**|**£**||**£**|
|**Income and endowments from**|||||
|Donations and legacies|50,054||-|50,054|
|Other income|4,978||-|4,978|
|**Charitable activities**|||||
|Core funding|45,896|73,377||119,273|
|**Total**|100,928|73,377||174,305|
|**Expenditure on**|||||
|Raising funds|6,170||-|6,170|
|**Charitable activities**|||||
|Core funding|163,071|73,377||236,448|
|**Total**|169,241|73,377||242,618|
|**Net expenditure and Net movement in funds**|(68,313)||-|(68,313)|
|**Reconciliation of funds**|||||
|**Total funds brought forward**|440,739||-|440,739|
|**Transfer between funds**|-||-|-|
|**Total funds carried forward**|372,426||-|372,426|



Page 19 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Notes to the Financial Statements - continued for the Year Ended 31st January 2025** 

## **10. Tangible fixed assets** 

|**Tangible fixed assets**|**Tangible fixed assets**|**Tangible fixed assets**||
|---|---|---|---|
|Adventure<br>Challenge<br>Wales<br>Other<br>Wales Yacht<br>Yacht<br>equipment<br>£<br>£<br>£<br>**Cost or valuation**<br>At 1 February 2024<br>524,593<br>171,733<br>5,238<br>Additions<br>22,407<br>-<br>-<br>Disposals<br>-<br>-<br>(3,000)|||Total<br>£<br>701,564<br>22,407<br>(3,000)<br>720,571<br>215,837<br>2,289<br>(1,000)|
|<br>At 31 January 2025<br>**Depreciation**<br>At 1 February 2024<br>Charge for the year<br>Disposals|<br>547,000<br>171,733<br>2,238<br>81,336<br>131,731<br>2,770<br>2,289<br>-<br>-<br>-<br>-<br>(1,000)|||
|At 31 January 2025<br>**Net Book Value**<br>At 31 January 2025<br>At 31 January 2024|83,625<br>131,731<br>463,375<br>40,002<br>443,257<br>40,002|1,770<br>468<br>2,468|217,126<br>503,845<br>485,727|



Challenge Wales Yacht is held on a revalued basis (plus additions at cost) less accumulated depreciation, being revalued at appropriate intervals. The current valuation for the Challenge Yacht of £450,000 was carried out by YSC Surveys (Yacht & Small Craft Surveying) on 30 January 2015. 

The historical cost amounts to £226,493 on which depreciation of £97,088 has been charged. 

The Adventure Wales Yacht is carried at a Directors’ valuation based on an informal survey. The yacht was sold in April 2025 for £46,314 

## **11. Fixed asset investments** 

||**Shares in**|
|---|---|
||**group**|
||**undertakings**|
||**£**|
|**Market value**||
|At 1st February 2024 and 31st January 2025|100|
|**Net book value**||
|At 1st February 2024 and 31st January 2025|100|



There were no investment assets outside the UK. 

The shares in group undertakings represent a 100% holding of the issued share capital of Challenge Wales (Sales) Limited, a company incorporated in England and Wales, registered number 08049080. The following amounts are derived from the unaudited accounts of Challenge Wales (Sales) Limited for the year ended 31 January 2025. 

Page 20 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

## **Notes to the Financial Statements - continued for the Year Ended 31st January 2025** 

## **11. Fixed asset investments (continued)** 

|Turnover<br>Total expenditure<br>Net profit for year<br>Total assets<br>Total liabilities<br>Shareholders’ funds|**2025**<br>**£**<br>16,606<br>(134)<br>16,472<br>21,176<br>(4,604)<br>16,572|2024<br>£<br>24,125<br>(3,813)<br>20,312<br>4,687<br>(1,275)<br>3,412|
|---|---|---|



## **12. Debtors: amounts falling due within one year** 

||**2025**|2024|
|---|---|---|
||**£**|£|
|Trade debtors|7|37,264|
|VAT|6,971|5,765|
|Amounts owed by group undertakings|3,312|-|
|Prepayments and accrued income|1,737|1,737|
||12,027|44,766|



## **13. Creditors: amounts falling due within one year** 

|Other loans<br>Trade creditors<br>Receipts in advance of sailing<br>Amounts owed to group undertakings<br>Social security and other taxes<br>Accruals and deferred income<br>**Creditors: amounts falling due after more than one year**<br>Other loans - 1-2 years<br>Other loans - 2-5 years<br>Other loans – over 5 years|**2025**<br>**£**<br>162,026<br>8,082<br>193<br>100<br>6,989<br>1,250<br>178,640<br>**2025**<br>**£**<br>-<br>-<br>-|**2025**<br>**£**<br>162,026<br>8,082<br>193<br>100<br>6,989<br>1,250<br>178,640<br>**2025**<br>**£**<br>-<br>-<br>-|2024<br>£<br>11,615<br>5,665<br>36,000<br>100<br>3,598<br>3,469<br>60,447<br>2024<br>£<br>11,615<br>30,742<br>120,768<br>163,125|
|---|---|---|---|
|||-||



## **14. Creditors: amounts falling due after more than one year** 

The repayment profile of the other loans reflects that the loans were all repaid on 1 October 2026 following the transfer of the yacht Challenge Wales to Tall Ships Youth Trust (“TSYT”). At this point in time, TSYT took on liability for repaying the loans to the lender. 

Page 21 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

**Challenge Wales** 

## **Notes to the Financial Statements - continued for the Year Ended 31st January 2025** 

## **15. Operating lease commitments** 

The following operating lease payments are committed to be paid: 

||**2025**|2024|
|---|---|---|
||£|£|
|Expiring:|||
|Within 1 year|9,000|10,800|
|Within 2 to 5 years|-|15,800|



The lease was terminated on 31 October 2025 by mutual agreement with the landlord. 

## **16. Secured debts** 

The following secured debts are included within creditors: 

|Other loans|**2025**<br>£<br>162,026|2024<br>£<br>149,523|
|---|---|---|



All other loans are secured by way of statutory ship's mortgage and deed of covenant dated 3 April 2008. 

## **17. Movement in funds** 

|**Unrestricted funds**<br>General fund<br>Revaluation reserve<br>**Restricted funds**<br>Reardon Smith<br>**TOTAL FUNDS**|**At 1.2.24**<br>**Net**<br>**movement**<br>**in funds**<br>**Transfers**<br>**between**<br>**funds**<br>**At 31.1.25**<br>**5**<br>**£**<br>**£**<br>**£**<br>**£**<br>85,465<br>(11,798)<br>-<br>73,667<br>286,961<br>-<br>-<br>286,961<br>372,426<br>(11,798)<br>-<br>360,628<br>-<br>70,000<br>-<br>70,000<br>-<br>70,000<br>70,000<br>372,426<br>58,202<br>-<br>430,628|
|---|---|



Page 22 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

**Challenge Wales** 

## **Notes to the Financial Statements - continued for the Year Ended 31st January 2025** 

## **17. Movement in funds - continued** 

Net movement in funds, included in the above are as follows: 

|**Incoming**<br>**resources**<br>**£**<br>**Unrestricted funds**<br>General fund<br>119,203<br>**Restricted funds**<br>Reardon Smith Nautical Trust<br>Garfield Weston<br>111,858<br>20,000<br>ASTO<br>Sports Council for Wales<br>Wales Council for Voluntary Action<br>Third Sector<br>Awards for All<br>Julian Hodge Bank Limited<br>590<br>21,066<br>21,822<br>3,438<br>19,267<br>500<br>Simon Giibson<br>Seven Seas<br>4,290<br>4,225<br>Royal Thames Yacht Club<br>1,725<br>Enterprise Cars<br>2,000<br>**Total unrestricted funds**<br>210,781<br>______<br>TOTAL FUNDS<br>**328,984**|**Resources**<br>**expended**<br>**Movement**<br>**in funds**<br>**£**<br>**£**<br>(131,001)<br>(11,798)<br>(41,858)<br>(20,000)<br>70,000<br>-<br>(590)<br>(21,066)<br>(21,822)<br>(3,438)<br>(19,267)<br>(500)<br>-<br>-<br>-<br>-<br>-<br>-<br>(4,290)<br>(4,225)<br>-<br>-<br>(1,725)<br>-<br>(2,000)<br>-<br>(140,781)<br>70,000<br>_______<br>______<br>(271,782)<br>58,202|
|---|---|
|||



## **Unrestricted funds** 

General funds that are available for use at the Trustees' discretion in furtherance of the objectives of the Charity. Revaluation reserve relates to the Challenge Wales Yacht, this was reduced annually inline with depreciation. 

## **Major Restricted funds** 

- Reardon Smith Nautical Trust – provided funding to assist young people with bursaries to develop their practical experience at sea 

- Garfield Weston – a general contribution towards overheads 

- ASTO - a bursary received for those taking part in sail training voyages. 

- Sport Council for Wales – a grant to assist in replacing the main sail on Challenge Wales 

- Wales Council for Voluntary Action – grant to assist in volunteer training 

- Awards for All – grant to replace essential safety and electronics equipment 

Page 23 



Docusign Envelope ID: 9E65DF95-E257-83CE-814E-443F46359483 

## **Challenge Wales** 

**Notes to the Financial Statements - continued for the Year Ended 31st January 2025** 

## **18. Related party disclosures** 

## **Wages and salaries** 

One of the Trustees has a contract of employment with the Charity and received a salary of £41,605 (2024: £39,250). 

## **Trustee Memberships** 

During the year ended 31 January 2025 the Trustees and family members collectively paid £443 (2024: £432) for annual membership of the Charity. 

## **Trustee Donations** 

During the year the Charity received donations from Trustees totalling £657 (2024: £365). 

## **Transactions with Subsidiary** 

During the year ended 31 January 2025 the Charity received £3,312 (2024: £20,047 by way of Gift Aid donation from its’ trading subsidiary Challenge Wales (Sales) Limited. 

## **19. Member's liability** 

The Charity is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the Charity in the event of liquidation. 

## **20. Post balance sheet event** 

On 1 November 2025, ownership of the yacht Challenge Wales was transferred to Tall Ships Youth Trust (“TSYT”). TYST then assumed the liability to repay the loan from Wales Council for Voluntary Action which is secured on the vessel. 

Page 24