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2022-03-31-accounts

COMPANY REGISTRATION NUMBER : 06774183

EAST COAST SAIL TRUST

COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

31 MARCH 2022

Charity Number : 1128353

Edmund Carr LLP Chartered Accountants 146 New London Road Chelmsford Essex

CM2 0AW

EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

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CONTENTS PAGE
Trustees' Annual Report 1
Independent examiner's report 5
Statement of financial activities (incorporating the 6
income and expenditure account)
Balance sheet 7
Notes to the financial statements 8
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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

TRUSTEES' ANNUAL REPORT

YEAR ENDED 31 MARCH 2022

The trustees, who are also directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 March 2022.

The report fulfils the requirements for a directors’ report as required by company law. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and 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.

REFERENCE AND ADMINISTRATIVE DETAILS

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||| |---|---| |Registered charity name|East Coast Sail Trust| |Charity registration number|1128353| |Company registration number|06774183| |Registered office|146 New London Road| |Chelmsford| |Essex| |CM2 0AW|

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The trustees

The trustees who served the charity during the period were as follows:

M Keeling (Chairman) J W Keeble J C Carter

Independent examiner Colin Barker FCA Edmund Carr LLP 146 New London Road Chelmsford Essex CM2 0AW

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2022

OBJECTIVES AND ACTIVITIES

The objectives of the East Coast Sail Trust Ltd are that of maintaining and preserving the traditional Thames Sailing Barge, "Thalatta", or other similar barge as may be acquired, in sea-going order and using the vessel to benefit young people from all walks of life by the provision of educational cruises.

PUBLIC BENEFIT

The Trustees have had due regard to the Charity Commission's guidance on Public Benefit in carrying out the Charity's activities as described above.

The Trustees are aware of the guidance;

The Trustees will take into account when making a decision to which the guidance is relevant; The Trustees will only decide to depart from the guidance when they have a very good reason for doing so.

Our charters are most beneficial to the young people who take part in them. The benefits they receive are easily identified by their comments, their written work, their artwork, and the increased self-esteem and personal confidence derived from working together as a team.

ACHIEVEMENTS AND PERFORMANCE

We entered the year ending 31 March 2022 with a reasonably good bank balance of £32k at 1st April 2021 thanks in large part to the continued support of the Heritage Lottery Fund. Little sailing was possible during the 2021 season as lockdown was not terminated until late June with the result that we were obliged to scramble to get the necessary Covid safety procedures in place.

Also, the lockdown uncertainty in the year ended 31 March 2021 had delayed our usual maintenance programme with the result that a number of expenditure items were slipped into the current financial year. These items included a new fridge freezer and cooker, both of which were deemed to be sufficiently old as to be likely to fail in the 2021 sailing season. Either failure would have been disastrous due to their long replacement timescale and would have cancelled the majority of our 2021 school charters. As a result of this additional expenditure, our bank balance had reduced to £27.3k by the year end 31 March 2022.

The uncertainty that Covid has brought to all aspects of trading means that we have entered the 2022 sailing season with a modest bank balance and a good forward order book but one that needs improving during the season.

The events of 2020, 2021 and into 2022 has made it particularly difficult to manage the business and the team has had to react to unexpected events with little forewarning. We believe that things will be unlikely to settle down until well into the 2023 sailing season.

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2022

One casualty of the lockdown is that regular Board meetings were unable to be held. However, this was not a hindrance as communication between the Trustees was maintained via email and phone.

Our philosophy has always been that charters are for young people and those disadvantaged by medical conditions or other reasons and these have always taken precedence. However, when not used in this way we would prefer to charter Thalatta out to various other groups rather than having her sitting alongside a dock. In this way we not only raise additional funds which help us keep charter rates low but also open up the joy of sailing this historic vessel and raise the Trust’s profile to a wider audience.

We remain grateful for the continued unstinting support from everyone involved in the Trust, particularly Cyril & Cheryl Varley, Tamsin Preston and Nick Hayward.

The Trust is very grateful to our Friends of Thalatta for their considerable financial support and interest, including visits to the barge and participating in our day sails. The Friends receive regular newsletters which keep them informed of all that is going on in the Trust and Thalatta. We are putting greater efforts into involving the Friends in our activities.

FINANCIAL REVIEW

Income for the year increased to £51,338 (2021 - £25,099) as covid restrictions eased. Expenditure increased to £65,168 (2021 - £28,868) as sailing activities resumed and additional maintenance work was undertaken, resulting in a deficit of £13,830 (2021 - £1,769).

Reserves Policy

It is our policy to maintain free reserves (being unrestricted funds excluding those represented by fixed assets) at a level that equates to between nine and twelve months of revenue expenditure. Currently this is an area of concern as we are unable to project forward income and expenditure with any degree of confidence.

Unrestricted free reserves at 31 March 2022 totalled £21,267 (note 18). These reserves are lower than ideal and we intend to keep close control of our costs to increase them over the next 2 years to provide a greater cushion for the future. Increased maintenance costs are inevitable over the forthcoming years and our marketing objectives are geared towards meeting this need.

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

TRUSTEES' ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

HOW THE TRUST IS RUN

The Trust is registered as a company limited by guarantee and the Directors are regarded as Trustees by the Charity Commission.

The organisation is a small one with the Trustees supported by a Management Team which includes the Skipper of "Thalatta", who has overall responsibility for the vessel when at sea.

Trustees continue to donate their services and receive no form of remuneration. Their contribution and that of part time accountant, Rasa Dalton, to the smooth running of the trust is acknowledged and greatly appreciated as is that of the Skipper, Cyril Varley.

The Trustees are mindful of the obligations imposed as a registered charity. They periodically review overall policy. A quorum of three members must be present at the meetings of the Trustees which are held regularly throughout the year. The Trustees are responsible for promoting the objects of the Trust, its conduct and management and day-to-day running. Proposed new Trustees are initially invited to attend trustee meetings to meet the other Trustees and ensure they have a good understanding of the trust and its objectives and will be able to contribute. They may then be elected.

Finances are carefully controlled, and projections and cash flow reviewed on a regular basis.

Crew are paid on a weekly or daily basis according to bookings and other work required.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Approved by the Trustees on 23 January 2023 and signed on their behalf by:

Michael Keeling

Chairman

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES

YEAR ENDED 31 MARCH 2022

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2022 which are set out on pages 6 to 14.

Responsibilities and basis of report

As the charity 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 company’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 that in any material respect:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act;

or

  1. the accounts do not accord with those records; or

  2. 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

  3. 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.

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

Colin Barker FCA

146 New London Road Chelmsford CM2 0AW

23 January 2023

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 31 MARCH 2022

Note
INCOME from:
Donations and legacies
2
Grants
3
Charitable activities
4
Other trading activities
5
Investments
6
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
7
Other trading activities
8
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
Transfers between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
8,226
-
18,400
9,509
3
36,138
45,225
3,860
49,085
(12,947)
-
(12,947)
284,770
271,823		 Restricted
Funds
£
2,600
12,600
-
-
-
15,200
16,083
-
16,083
(883)
-
(883)
14,124
13,241		 Total Funds
2022
£
10,826
12,600
18,400
9,509
3
51,338
61,308
3,860
65,168
(13,830)
-
(13,830)
298,894
285,064		 Total Funds
2021
£
3,515
19,930
-
1,646
8
25,099
26,868
-
26,868
(1,769)
-
(1,769)
300,663
298,894

The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities.

The notes on pages 8 to 14 form part of these financial statements.

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

BALANCE SHEET

AS AT 31 MARCH 2022

Note
FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Stock
Debtors
13
Cash at bank and in hand
LIABILITIES
Creditors: Amounts falling due within
one year
14
NET CURRENT ASSETS
NET ASSETS
FUNDS OF THE CHARITY
Restricted income funds
16
Unrestricted funds
17
TOTAL CHARITY FUNDS		 £
£
258,502
2,868
7,600
27,365
37,833
(11,271)
26,562
285,064
13,241
271,823
285,064
2022		 £
£
263,673
2,618
14,214
31,777
48,609
(13,388)
35,221
298,894
14,124
284,770
298,894
2021

For the year ended 31 March 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Trustees' responsibilities:

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and with the special provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the Trustees on 23 January 2023 and are signed on their behalf by:

….........................................

M KEELING

Chairman

Company Registration Number: 06774183

The notes on pages 8 to 14 form part of these financial statements.

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

Basis of accounting

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (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 (effective 1 January 2019) (Charities SORP FRS102) and the Companies Act 2006.

Legal Status

The charity is a company limited by guarantee and meets the definition of a public benefit entity under FRS102. It is incorporated in England and Wales and its registered address is 146 New London Road Chelmsford, Essex, CM2 0AW.

Going Concern

The Trustees have considered the impact of the Covid-19 pandemic in their assessment of the charity’s ability to prepare accounts as a going concern. Because of the uncertainties surrounding the effects of the economic slowdown it is difficult to predict the impact on the charity, but having taken all the factors into account, the trustees are of the opinion that the charity has sufficient resources to continue trading for the next 12 months from the date of signing these accounts.

Income

Income from donations and grants, including capital grants, is included in incoming resources when these are receivable, except as follows:

When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

Expenditure

Expenditure is recognised on an accruals basis. Support costs which relate to the day to day running of the charity and governance costs are included as costs of charitable activities.

Fund accounting

Funds held by the charity are either:

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

Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the charity.

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES (continued)

Fixed assets

All fixed assets are initially recorded at cost.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Sailing Barge - Depreciated over 50 years Equipment - 10% Reducing Balance

Stocks

Stocks are valued at the lower of cost and net realisable value.

Debtors

Trade and other debtors are recognised at the settlement amount due.

Creditors

Creditors are recognised when the charity has a present obligation arising 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 are normally recognised at their settlement amount.

2. DONATIONS AND LEGACIES

Legacies
Other donations
2021		 Unrestricted
Funds
£
-
8,226
8,226
3,515		 Restricted
Funds
£
-
2,600
2,600
-		 Total Funds
2022
£
-
10,826
10,826
3,515		 Total Funds
2021
£
-
3,515
3,515

3. GRANTS

National Lottery Heritage Fund
The Hedley Foundation
2021
INCOME FROM CHARITABLE ACTIVITIES
Fees from school and youth group sailings
2021		 Unrestricted
Funds
£
-
-
-
-
Unrestricted
Funds
£
18,400
-		 Restricted
Funds
£
12,600
12,600
19,930
Restricted
Funds
£
-
-		 Total Funds
2022
£
12,600
-
12,600
19,930
Total Funds
2022
£
18,400
-		 Total Funds
2021
£
15,600
4,330
19,930
Total Funds
2021
£
-

4. INCOME FROM CHARITABLE ACTIVITIES

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2022

5. INCOME FROM OTHER TRADING ACTIVITIES

Unrestricted
Funds
£
Sale of Goods
676
Day Sails and Charters
8,833
9,509
2021
1,646
6.
INVESTMENT INCOME
Unrestricted
Funds
£
Bank interest receivable
3
2021
8
7.
EXPENDITURE ON CHARITABLE ACTIVITIES
Unrestricted
Funds
£
Barge maintenance and running costs
30,520
Depreciation
6,907
Support costs
4,678
Governance costs (note 9)
3,120
45,225
2021
10,287		 Restricted
Funds
£
-
-
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
15,200
883
-
-
16,083
16,581		 Total Funds
2022
£
676
8,833
9,509
1,646
Total Funds
2022
£
3
8
Total Funds
2022
£
45,720
7,790
4,678
3,120
61,308
26,868		 Total Funds
2021
£
271
1,375
1,646
Total Funds
2021
£
8
Total Funds
2021
£
13,031
7,932
3,403
2,502
26,868

8. EXPENDITURE ON OTHER TRADING ACTIVITIES

Fundraising - sale of goods
Day Sails Costs
2021		 Unrestricted
Funds
£
659
3,201
3,860
-		 Restricted
Funds
£
-
-
-
-		 Total Funds
2022
£
659
3,201
3,860
-		 Total Funds
2021
£
-
-
-

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2022

9. GOVERNANCE COSTS

Accounts Preparation Fees
Independent Examiner Fees
Other Professional Fees
Total paid to Independent Examiner
Bookkeeping		 Unrestricted
Funds
£
1,030
440
136
1,606
1,514
3,120		 Restricted
Funds
£
-
-
-
-
-		 Total Funds
2022
£
1,030
440
136
1,606
1,514
3,120		 Total Funds
2021
£
865
370
133
1,368
1,134
2,502

10. STAFF AND TRUSTEES' COSTS AND EMOLUMENTS

No salaries or wages have been paid to employees, including the members of the committee, during the year. During the year, Trustees were reimbursed expenses of £Nil (2021: £Nil).

11. NET OUTGOING RESOURCES FOR THE YEAR

This is stated after charging:
Depreciation		 2022
£
7,790		 2021
£
7,932

12. TANGIBLE FIXED ASSETS

COST
As at 1 April 2021
Additions
At 31 March 2022
DEPRECIATION
As at 1 April 2021
Charge for the period
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 Equipment
£
31,133
2,619
33,752
13,460
1,790
15,249
18,502
17,673		 Thames
Sailing Barge
£
300,000
-
300,000
54,000
6,000
60,000
240,000
246,000		 Total
£
331,133
2,619
333,752
67,460
7,790
75,249
258,502
263,673

The Thalatta is insured for £470,600. The sailing barge was revalued in the year-ended 31st March 2012 at the net realisable value of £300,000 which has now been treated as the base cost and is being depreciated over 50 years. The Trustees consider the value as continuing to be appropriate and no impairment review is necessary.

As part of the HLF funding it took a legal charge over Thalatta which is only exercisable should the Trust be unable to continue to operate for any reason.

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 31 MARCH 2022

13. DEBTORS
Trade debtors
Prepayments and accrued income
Other debtors - gift aid
VAT
14.
CREDITORS: Amounts falling due within one year
Trade creditors
Accruals
Deferred income		 2022
£
2,030
4,502
583
485
7,600
2022
£
1,589
1,965
7,717
11,271		 2021
£
9,600
3,974
561
79
14,214
2021
£
150
1,630
11,608
13,388

Deferred income relates to fees received in advance for sailing trips that took place after the year end. Deferred income brought forward totalling £966 was carried forward at the year end.

15. CONTINGENT LIABILITY

As is usual practice were Thalatta to be sold, or in certain other circumstances, restoration grants previously made by HLF could become repayable. In the event of a sale it is likely that the sum becoming repayable could absorb, but be limited to, the whole sale proceeds. As stated in Note 12, HLF has a charge over Thalatta to secure any sums which might become payable.

16. RESTRICTED FUNDS

a)
Schools promotion and assistance
b)
Barge fixed asset fund
c)
National Lottery Heritage Fund
d)
Hedley Fund
e)
Other restricted donations		 Balance at
1 Apr 2021
£
965
8,829
-
4,330
-
14,124		 Incoming
Outgoing
£
£
-
-
-
(883)
12,600
(12,600)
-
-
2,600
(2,600)
15,200
(13,483)
Movement in res		 Transfers
£
-
-
-
-
-
-
ources:		 Balance at
31 Mar 2022
£
965
7,946
-
4,330
-
13,241

a) Bursaries may be awarded to assist schools meet the costs of sailing courses.

b) Fixed assets purchased from restricted grants and donations. Depreciation is charged to the fund over the life of the assets.

c) The National Lottery Heritage Fund was provided to support the trust for the loss of income during the pandemic.

d) The Hedley Fund awarded a grant of £4,330 toward two new life rafts for the sailing barge. e) A donation was received in the year for the purchase of a new foresail.

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EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2022

16. RESTRICTED FUNDS (cont'd) - PRIOR YEAR

a) Schools promotion and assistance
b) Barge fixed asset fund
c) National Lottery Heritage Fund
c) Hedley Fund		 Balance at
1 Apr 2020
£
965
9,810
-
-
10,775		 Incoming
Outgoing
£
£
-
-
-
(981)
15,600
(15,600)
4,330
-
19,930
(16,581)
Movement in resou		 Transfers
£
-
-
-
-
-
rces:		 Balance at
31 Mar 2020
£
965
8,829
-
4,330
14,124

a) Bursaries may be awarded to assist schools meet the costs of sailing courses.

d) The Hedley Fund awarded a grant of £4,330 toward two new life rafts for the sailing barge.

17. UNRESTRICTED FUNDS

Balance at
1 Apr 2021
Incoming
Outgoing
Transfers
£
£
£
£
General unrestricted funds
284,770
36,138
(49,085)
-
2021
289,888
5,169
(10,287)
-
ANALYSIS OF NET ASSETS (between restricted and unrestricted funds)
Current year
Tangible
Other net
fixed assets
assets
£
£
Restricted
7,946
5,295
Unrestricted
250,556
21,267
258,502
26,562
Prior year
Tangible
Other net
fixed assets
assets
£
£
Restricted
8,829
5,295
Unrestricted
254,844
29,926
263,673
35,221
Movement in funds:		 Balance at
31 Mar 2022
£
271,823
284,770
Total
£
13,241
271,823
285,064
Total
£
14,124
284,770
298,894

18. ANALYSIS OF NET ASSETS (between restricted and unrestricted funds)

-13-

EAST COAST SAIL TRUST COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 MARCH 2022

19. RELATED PARTIES TRANSACTIONS

There were no related parties transactions requiring disclosure during the year.

20. COMPANY LIMITED BY GUARANTEE

The company is limited by guarantee and does not have share capital. In the event of the company being wound up the liability of the members is limited to £10.

-14-