## _**LEISURE & AMENITIES FUND**_ ## _**HMS NELSON**_ ## **ANNUAL REPORT AND FINANCIAL STATEMENTS** ## **For Period** **1 January 2025 to 31 December 2025** **Registered Charity No. 1128785** ## **Trustees’ Annual Report and Comments** Leisure & Amenities Fund HMS NELSON Charity Registered No: 1128785 Covering the Accounting Year: 1 January 2025 to 31 December 2025 Address: Neptune Block HMS NELSON HMNB Portsmouth Portsmouth PO1 3HH Governing Document: Constitution Objects: To promote the military efficiency and well being of Naval and other Service personnel serving in HMS Nelson and the Naval Base, including Lodger Units and members of the Portsmouth Flotilla ashore. Trustee: Captain L McLocklan Royal Navy Trustee selection method: Appointed as such by the Naval Secretary. Bankers: RBS Holts Independent Examiner: P A Nicholls MBE MAAT 5 Nursery Road Havant Hants PO9 3BG Activities and Achievements: The provision of leisure and domestic amenities and support of social and sporting life within the resources available. Individual and departmental activities were supported through the sports budget and by other grants. Financial Review: The LAF fund had gained £32.2K over the year. The main reasons were the increase in market value of investments - £58.8K but offset by the net operating loss of £26.6K (primarily the losses on the lodge and narrowboats). The fund was worth £1.025M. It held £59K for other funds within its deposit account. Investment Selection Policy: The investments are held by Quilter Cheviot Asset Management for active management. Objective is to grow the capital value of the portfolio as well as generating some degree of income. The attitude to risk will be medium tolerance but can accept moderate variation or disruption to capital value or current income to meet the longer term objectives. Financial Reserves Policy: The Trustee has considered the level of reserves to retain, appropriate to the charity’s needs. These are held in the investments with a value in the range of £750K to £900K. This will cover the fund if there is no income in 12 months and will also pay for salary and capital projects. The Trustee aims to ensure that the charity will be able to fulfil its charitable objectives even if there is a temporary shortfall in income and unexpected expenditure. The Trustee will endeavour not to set aside funds unnecessarily. Grant Policy: Makes grants to individuals and ships alongside in Portsmouth. Risk Assessment: The Trustee reviews the major risks to which the charity is exposed, and systems have been established to manage those risks and believes that by maintaining the free reserves stated it will provide sufficient resources in the event of adverse conditions. Public Benefit Statement: This fund provides public benefit by assisting Service personnel to more effectively perform their roles within the Armed Forces of the Crown. It does this by providing and supporting additional leisure and social activities beyond that supplied by the Crown. This assistance enables Service personnel to face the challenges and danger associated with military service by developing and maintaining teamwork, spirit and attitude, and morale. As a result, the fund promotes the efficiency of the Armed Forces of the Crown by enhancing the Royal Navy’s and Royal Marines’ capability to undertake the roles demanded of it including the defence of the United Kingdom and its interests. I confirm that I have paid due regard to the Charity Commission of England and Wales’s guidance on public benefit when deciding what activities the charity should undertake. Declaration: I declare, in my capacity of Charity Trustee, that I have approved the above report. ## Signed on Original Name Captain L McLocklan Royal Navy Appointment Captain of the Base and Sole Managing Trustee Date 6 February 2026 ## **HMS NELSON LEISURE & AMENITIES FUND** ## **Registered Charity No 1128785** ## **BALANCE SHEET** **31 December 2025** ## ASSETS |Fixed Assets
_Note_
_Tangible Assets_
Property
_7_
_Investments_
Quilter Cheviot Investments
_2_
CCLA COIF Short Duration Bond
National Savings Investment Bonds
Current Assets
Miscellaneous Debtors
_8_
Prepayments
_8A_
Cash & Floats
PayPal
Current Accounts
Charities Deposit Account
Total Current Assets
LIABILITIES
Miscellaneous Creditors
_9_
Holding Funds
_9A_
VAT
Total Current Liabilities
Net Current Assets
**Net Assets**
Represented by:
General Purpose Fund
Designated Funds:
Refurbishment/Replacement Funds:
Narrowboat EMMA V
Narrowboat ANDREW II
Narrowboat TRAFALGAR
Office Equipment|53,800.00
£
744,368.00
£
123,348.22
£
35,000.00
£|_65,800.00_
_£_
_688,355.00_
_£_
_120,593.12_
_£_
_35,000.00_
_£_
956,516.22
£
_909,748.12_
_£_
_8,990.00_
_£_
_12,518.00_
_£_
_7,657.83_
_£_
_-_
_£_
_10,616.26_
_£_
_97,297.20_
_£_
_137,079.29_
_£_
_4,440.00_
_£_
_54,200.78_
_£_
_(3,660.14)_
_£_
_54,980.64_
_£_
67,536.31
£
_82,098.65_
_£_
**1,024,052.53**
**£**
**_991,846.77_**
**_£_**
673,468.53
£
_655,728.77_
_£_
_130,000.00_
_£_
_97,018.00_
_£_
_105,600.00_
_£_
_3,500.00_
_£_
350,584.00
£
_336,118.00_
_£_
**1,024,052.53**
**£**
**_991,846.77_**
**_£_**
_31-Dec-24_|_65,800.00_
_£_
_688,355.00_
_£_
_120,593.12_
_£_
_35,000.00_
_£_
956,516.22
£
_909,748.12_
_£_
_8,990.00_
_£_
_12,518.00_
_£_
_7,657.83_
_£_
_-_
_£_
_10,616.26_
_£_
_97,297.20_
_£_
_137,079.29_
_£_
_4,440.00_
_£_
_54,200.78_
_£_
_(3,660.14)_
_£_
_54,980.64_
_£_
67,536.31
£
_82,098.65_
_£_
**1,024,052.53**
**£**
**_991,846.77_**
**_£_**
673,468.53
£
_655,728.77_
_£_
_130,000.00_
_£_
_97,018.00_
_£_
_105,600.00_
_£_
_3,500.00_
_£_
350,584.00
£
_336,118.00_
_£_
**1,024,052.53**
**£**
**_991,846.77_**
**_£_**
_31-Dec-24_| |---|---|---|---| ||17,189.26
£
12,301.00
£
3,382.40
£
54.14
£
11,414.01
£
105,971.03
£||| ||150,311.84
£||| ||25,133.63
£
59,254.42
£
(1,612.52)
£||| ||82,775.53
£||| ||130,000.00
£
102,684.00
£
114,400.00
£
3,500.00
£||| ||||**_991,846.77_**
**_£_**| ||||_655,728.77_
_£_
_336,118.00_
_£_| ||||| ||||**_991,846.77_**
**_£_**| ## Signed on Original Approved on 6 February 2026 Captain L McLocklan Royal Navy Sole Managing Trustee 1 NEL-LAFDec25BSZBALANCE SHEET ## **HMS NELSON LEISURE & AMENITIES FUND** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **For the year ended 31 December 2025** |_Notes_
**Income from:**
Donations & Grants
Charitable Activities
Other Trading Activities
Investment Income
Total Income
_3_
**Expenditure on:**
Raising Funds
Charitable Activities
Total Expenditure
4
Net Expenditure
Increase in Value - Investments
Gaming Takings Write Off
Net Movement in Funds
Total Funds Brought Forward
Net Movement of Funds
**Net Assets**|£
£
£
£| |---|---| 2 NEL-LAFDec25BSZSOFA Sum ## **HMS NELSON LEISURE & AMENITIES FUND** ## **Notes to the Financial Statements dated 31 Dec 25** ## **Note 1 - Accounting policies** a. The financial statements are prepared under the historic cost convention (as modified by the revaluation of fixed asset investments) and in accordance with applicable accounting standards: Charities Statement of Recommended Practice 2026 and the provisions of the Charities Acts. Significant policies adopted are: ## Incomine - a. Donations are included in the Statement of Financial Activities (SOFA) when the LAF becomes entitled to the donation or grant and it is reasonably certain that it will be received. - b. Income from fund raising are reported gross in the SOFA - c. Intangible income is not included in the accounts. - d. The LAF receives no unpaid volunteer help. - e. Investment income is included in the accounts when receivable. ## Expenditure and Liabilities a. Liabilities are recognised as soon as there is a legal or constructive obligation committing the LAF to the expenditure. b. Administration costs are not apportioned as the tasks are wide ranging in support of leisure and amenities and include the maintenance of the Central Fund and Trophy Fund. ## Assets a. Tangible fixed assets are capitalised if they can be used for more than one year and cost at least £500. They are valued at cost or a reasonable value on receipt. The LAF does not have a policy of revaluation. Depreciation is monthly, straight line and over the estimated life of the item. b. Property acquired through the Accumulated Welfare Fund is held at zero value. c. Investments on a recognised stock exchange are valued at market value at the date of the Balance Sheet or at best estimate of market value. ## **Note 2 - Investments** |Market Value at Beginning of Year
Gains on Revaluation
Market Value at End of Year|Quilter Cheviott
Managed
688,355.00
£
56,013.00
£
744,368.00
£|Short
Totals
Duration
120,593.12
£
808,948.12
£
2,755.10
£
58,768.10
£
123,348.22
£
867,716.22
£| |---|---|---| 3 NEL-LAFDec25BSZNotes ## **HMS NELSON LEISURE & AMENITIES FUND** |**Note 3 - Income**
_Donations & Grants_
Gainshare
Mess Sports Contributions
Donations (Closed Funds)
Central Fund Interest
_Charitable Activities_
Narrowboats
Laundry
Jetwash
Lodge
Family Flats
Families Day
_Other Trading Activities_
Sports User Passes
_Investment Income:_
Short Duration Bond
Quilter Cheviot Income
NSIB Income
Charities Deposit A/C
**Total Income**|32,377.64
£
_34,497.81_
_£_
6,600.00
£
_6,600.00_
_£_
517.88
£
_57.88_
_£_
1,196.42
£
_3,289.92_
_£_
40,691.94
£
_44,445.61_
_£_
20,142.58
£
_30,683.68_
_£_
-
£
_1,377.41_
_£_
1,249.55
£
_2,603.68_
_£_
2,408.33
£
_1,179.50_
_£_
13,002.03
£
_8,440.82_
_£_
38,518.78
£
_-_
_£_
75,321.27
£
_44,285.09_
_£_
4,454.70
£
_5,629.50_
_£_
4,448.34
£
_3,020.96_
_£_
18,208.70
£
_20,315.72_
_£_
1,120.14
£
_1,420.39_
_£_
4,165.49
£
_4,646.16_
_£_
27,942.67
£
_29,403.23_
_£_
148,410.58
£
_123,763.43_
_£_
2025
_2024_| |---|---| 4 NEL-LAFDec25BSZSOFAI |**Note 4 - Expenditure**
_Raising Funds_
Sports User Pass Insurance
_Charitable Activities_
Operating Costs
Narrowboats
Narrowboat Depreciation
Lodge
Lodge Depreciation
Family Flats
Jetwash Nelson
LAF Van
TV Hire, Repairs etc
Sports
Christmas Extras
Families Day
Major Grants Paid
Minor Grants Paid
Central Fund Examination
Repairs & Renewals
Insurance & Trophy Hire
Governance Costs
Examination of Accounts
Support Costs
Salaries & Nl & Pensions
Office Expenses
Bank/Card Charges
Minor Entertainment
**Total Expenditure**
**Note 4A - Major Grants**
Black History Month
Families Day|31,596.12
£
8,000.00
£
9,302.51
£
4,000.00
£
366.87
£
1,113.54
£
1,899.19
£
4,652.12
£
7,822.79
£
3,075.41
£
38,518.78
£
6,300.00
£
5,998.43
£
1,440.00
£
78.00
£
534.76
£
2,640.00
£
40,830.46
£
5,519.72
£
341.27
£
408.19
£|534.76
£
_534.80_
_£_
_28,590.79_
_£_
_3,707.00_
_£_
_12,005.77_
_£_
_8,000.00_
_£_
_1,223.74_
_£_
_1,388.42_
_£_
_1,271.83_
_£_
_5,713.22_
_£_
_6,617.75_
_£_
_5,544.51_
_£_
_-_
_£_
4A
_920.16_
_£_
_5,443.86_
_£_
_400.00_
_£_
_283.28_
_£_
_534.80_
_£_
_2,560.00_
_£_
_39,547.56_
_£_
_4,993.71_
_£_
_301.97_
_£_
_-_
_£_
174,438.16
£
_129,048.37_
_£_
174,972.92
£
_129,583.17_
_£_
2025
_2024_| |---|---|---| ||1,300.00
£
5,000.00
£|| ||6,300.00
£|| **Note 5 - Paid Employees** _Previous Year_ a. Gross Wages and Salaries: £ 38,187 _£ 37,006.00_ Employers National Insurance: Nil _Nil_ Pension (Money purchase scheme) Contributions: £ 2,643 _£ 2,704_ - b. The LAF had one full time employee who managed and administered the fund. - c. No employee earns more than £60,000 per annum 5 ## **Note 6 - Trustees and Other Related Parties** - a. No expenses or emoluments have been paid to the sole Managing Trustee - b. There are no amounts due to or from the Sole Managing Trustee c. The Sole Managing Trustee is also the sole Managing Trustee of the Wardroom HMS Nelson and the WO & SR Mess HMS Nelson. These funds pay sums to the LAF as sport contributions. In addition the messes occasionally bid for grants from the LAF. ## **Note 7 - Tangible Fixed Assets - Property Account** |**Note 7 - Tangible Fixed Assets**|**-**|**Property Account**| |---|---|---| |Total Value at 1 Jan 25
Depreciation
Total Value at 31 Dec 25||Narrowboats
Lodge
Total
52,800.00
£
13,000.00
£
65,800.00
£
(4,000.00)
£
(8,000.00)
£
(12,000.00)
£| |||48,800.00
£
5,000.00
£
53,800.00
£| ## **Note 8 - Miscellaneous Debtors (all falling due within one year)** |Gainshare Jul-Sep 25
Gainshare Oct-Dec 25 (Estimated)
Central Fund Interest
Deposit Interest|7,989.07
£
8,000.00
£
810.19
£
390.00
£| |---|---| ||17,189.26
£| ## **Note 8A - Prepayments** |Narrowboat Licences
Narrowboat Mooring Fees
Lodge Site Fees
Sage Cover
Road Tax
Insurances|2,115.00
£
4,518.00
£
2,428.00
£
1,543.00
£
70.00
£
1,627.00
£| |---|---| ||12,301.00
£| ## **Note 9 - Miscellaneous Creditors** (All falling due within one year) |Narrowboat Deposits
Narrowboat Hires 25 cancelled
Calcutt Winter Servicing 25 - Estimated
Calcutt Turnaround Fees 25 - Estimated
Family Flat Deposits
HMRC
Pension
PNIE|1,200.00
£
3,990.00
£
8,400.00
£
7,800.00
£
900.00
£
1,759.53
£
424.10
£
660.00
£| |---|---| ||25,133.63
£| ## **Note 9A - Temporary Holding Funds** |Boxing Event
Families Day
Dog Security
Kids Xmas Party
F&G Officers Dinner
SM Dinner Fund
Naval Servicewomen's Network
Medical Centre
Narrowboat Deposits (Not Yet Booked)
Kings Camp
Central Fund (SumUp)
Holding Fund (Non LAF Grants)|216.94
£
6,957.04
£
525.00
£
355.42
£
630.00
£
1,204.51
£
113.96
£
1,615.51
£
1,100.00
£
82.60
£
4,079.88
£
42,373.56
£| |---|---| ||59,254.42
£| 6 NEL-LAFDec25BSZNotes2 ## **Note 10 - Endowment or Restricted Income Funds** None held ## **Note 11 - Other Information** - a. The LAF does not have any material commitments not provided for in the accounts - b. The LAF has not given any guarantees to any third party that could be called on at the year end. d. The LAF did not make any ex gratia payments during the year. ## **Declarations** - a. The Trustee has not changed the year end date nor the length of the financial year b. The LAF has 4 designated funds. These are: |Refurbishment/Replacement Funds:
Narrowboat EMMA V
Narrowboat ANDREW II
Narrowboat TRAFALGAR
Office Equipment|130,000.00
£
102,684.00
£
114,400.00
£
3,500.00
£| |---|---| ||350,584.00
£| - c. All the LAF's operations are continuing operations. - d. The LAF has no intangible assets (other than use of MOD office space) - e. There were no interfund loans outstanding at the balance sheet date. f. None of the LAF's functional assets have been revalued during the year and the LAF does not have a policy of revaluation of these assets. - g. The LAF has no material fixed assets which have not been capitalised and included in the Balance Sheet. 7 NEL-LAFDec25BSZNotes3 ## **Independent Examiner’s Report to the Trustee of HMS Nelson Leisure and Amenities Fund (Registered Charity 1128785).** I report on the accounts of the Charity for the year ended 31 December 2025 which are set out in pages 1 to 7 and accompanying notes. ## **Respective responsibilities of trustees and examiner** The charity’s trustee is responsible for the preparation of the accounts. The charity’s trustee considers that an audit is not required for this year under section 144(2) of the Charities Act 2011 (The Charities Act) and that an independent examination is needed. It is my responsibility to: - examine the accounts under section 145 of the 2011 Act; - to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act, and - to state whether particular matters have come to my attention. ## **Basis of independent examiner’s report** My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustee for any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below. ## **Independent examiner’s statement** In connection with my examination, no material matters have come to my attention which gives me cause to believe that in any material respect: - The accounting records were not kept in accordance with section 130 of the Charities Act; or - The accounts did not accord with the accounting records; or - The accounts did not comply with the applicable requirements concerning the form and content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than in any requirement that the accounts give a “true and fair” view which is not a matter considered as part of an independent examination. I 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. ## Signed on Original P A Nicholls MBE MAAT 5 Nursery Road Havant Hants PO9 3BG 6 February 2026