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2021-12-31-accounts

Company number: 7370167 Charity number: 1138787

The Pirate Castle

Report and financial statements For the year ended 31 December 2021

The Pirate Castle

Contents

For the year ended 31 December 2021

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 2 Independent examiner’s report .................................................................................................... 14 Statement of financial activities (incorporating an income and expenditure account) ................... 16 Balance sheet ............................................................................................................................... 17 Notes to the financial statements ................................................................................................. 18

The Pirate Castle

Reference and administration information

For the year ended 31 December 2021

Company number 7370167
Country of incorporation United Kingdom
Charity number 1138787
Country of registration England & Wales
Registered office and Oval Road, London, NW1 7EA
operational address
Trustees Trustees, who are also directors under company law, who served
during the year and up to the date of this report were as follows:
Ms Georgina Rowley Chairperson
Mr Kai Jie Shawn Lim Treasurer
Ms Elizabeth Bradshaw
Ms Carol Lincoln
Mr Michael Goldhill
Ms Elizabeth Culwick
Ms Victoria Hames (appointed 21 April 2021)
Key management Mr Timothy Molloy General manager
personnel
Independent examiner Joanna Pittman
Sayer Vincent LLP
Chartered Accountants and Statutory Auditor
Invicta House
108-114 Golden Lane
LONDON
EC1Y 0TL

1

The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

The trustees present their report and financial statements for the year ended 31 December 2021. Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Chair’s Report

2021 started under Covid-19 lockdown and restrictions, with The Pirate Castle’s capacity to deliver unavoidably reduced during the first quarter. We remained closed until the end of March 2021, where we were unable to serve the community and lost valuable income. However, as restrictions eased, we were able to re-open and rebuild. As the year progressed the activity centre once again buzzed with excitable paddlers on the Regent’s Canal and boaters afloat.

We focussed hard on fundraising in 2021 in order to survive as a charity. Our fantastic success enabled us to weather the pandemic and emerge from restrictions with more financial resilience that we could sensibly have expected. Notably, our very successful Crowdfunder campaign, run in early 2021, provided us with income which transformed our financial position. In addition, John Lyons Charity kindly de-restricted the funding for our Lead Paddle Sport Instructor throughout 2021 and the first tranche of a two-year grant from Garfield Weston helped to fill the activity income shortfall. The combination of these initiatives put us on a sound footing by year-end, supplemented by the ongoing governmental pandemic support.

Paddlesport was again the most viable of our activities as we emerged from lockdown restrictions. We were able to operate within exemptions for outdoor exercise and youth work and then to deliver at full-capacity from Easter 2021 onwards. We saw exceptionally high interest in paddlesport, and it was to everyone’s benefit that we could offer people the opportunity to be active outside. 2021 saw the Charity generate income from new and expanded projects, and reach out to a broader range of people than ever before. Our charitable objectives at the forefront; we also continued delivery of subsidised, concessionary and free places for local young people, disadvantaged families and special educational needs groups.

Increasing our earned income remains vital to the Charity being able to work towards greater self-sufficiency and long-term stability. However, community hall hire, previously our biggest income generator continues to be severely impacted by restrictions on indoor gatherings and their legacy though at the time of filing these accounts in September 2022 this income stream is showing signs of recovery. Happily, canal boating saw a sustained recovery as 2021 progressed.

2

The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

With fundraising activities replacing income generation lost in hall hire and a very strong recovery from paddlesport we were again able to end the year with a balance sheet which gives us confidence for 2022 and beyond.

Our staff team, ably led by our General Manager, showed imagination and determination in generating funds which have built financial resilience. I am excited about the Charity’s future, as we strengthen our community offering by improving our premises and making more community connections. Thank you and congratulations on the results of your hard work.

I would also like to thank, on behalf of our trustee board, our donors in 2021 and so far in 2022, for their incredible generosity and contribution to our mission.

Georgina Rowley, Chair

3

The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

Objectives and activities

Purposes and aims

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

The Pirate Castle is an inclusive boating charity and fully accessible community centre on the bank of the Regent's Canal in the heart of Camden Town, London. We promote life chances, learning and healthy living through a raft of specialist canal and land-based initiatives and have been flying the flag for opportunity and adventure for over 55 years.

Canoeing, kayaking and canal boating are core to our work, with a focus on tackling disadvantage, challenging exclusion and providing opportunities for Special Educational Needs and Disability (SEND) groups of all ages. Our projects and services improve health and wellbeing, nurture life and social skills and bring people together through active participation.

Our Main Hall and Club Room overlooking the canal are available for community and private hire, generating vital income towards core and project costs. ‘Black Pearl’, our traditional narrowboat, is ideal for day trips and boat handling training, whilst ‘Pirate Prince’, our purpose-built, fully accessible wide-beam canal, equipped with a state-of-the-art joystick control and hydraulic steering platform, is the only canal boat in central London that can be operated by wheelchair users or people with severe mobility restrictions.

Thanks to earned income, grants and donations we are able to offer subsidised rates and large discounts to schools, charities and community organisations wishing to book activities or venue space. We also provide funded or free activities for individuals most in need. This reflects our commitment to ensuring that our activities are inclusive and accessible by all.

Achievements and performance

The charity's main activities and its beneficiaries to help are described below. All the activities run by the Charity are undertaken to further The Pirate Castle’s charitable purposes for the public benefit.

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The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

Despite Covid-19 restrictions, we managed 71% growth in earned income in 2021 from the prior year, albeit compared with a very low base due to the impact of restrictions in 2020. This earned income accounted for 49% of our annual funding need (compared to 38% in 2020). The balance was met through fundraising activity and Government support grants including the Coronavirus Job Retention Scheme (CJRS).

Outdoor Education

Our core community paddlesport services include school holiday activity schemes, sessions for visiting schools, youth and community groups, term-time after school and weekend youth sessions (‘Pirate Club’). We continued delivering British Canoeing-accredited training programmes, along with private hire for youth, adult and corporate events. We also run weekly “Upperdeckers” sessions for over 50s and introduced three new projects during 2021: “Rainbow Paddlers” run by and for the LGBTQ+ community, a women-only “Ladies who Launch” session, and “Paddlefit” high energy paddle fitness sessions.

From when we restarted paddlesport activity in Q2, demand remained high all year resulting in paddlesport accounting for 57% of all earned income (compared to 43% in 2020). The significant and sustainable growth in paddlesport was one of our major achievements in 2021 and the programme looks set to grow further in 2022 with the employment of a senior seasonal coach for the warmer months allowing us to increase capacity further. With community centre hire continuing to suffer from the impact of Covid, the significant growth in paddlesport income and activity has been essential.

During 2021, we saw 1,644 individual youngsters access our paddlesport services. Overall we delivered 4,156 youth attendances (many youngsters visited us more than once), over 306 sessions and 1,223 adult attendances over 176 sessions. In total, we delivered 482 paddlesport sessions with some selected highlights below:

Pirate Castle youth projects:

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The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

Discounted schools / youth groups:

Pirate Castle adult sessions:

Private sessions:

Canal Boating

Canal boat trips were again curtailed by Covid-19 restrictions in early 2021. However once the restrictions on indoor mixing were lifted, demand for boating grew strongly. Private hire provided the majority of activity and income through the year, though we were also able to deliver a significant number of community cruises and residential trips which had been impossible to deliver under the prior tighter Covid-19 restrictions.

Whilst still short of pre-Covid income levels, canal boating earned income grew by 163% on 2020 and accounted for 19% of all the Charity’s earned income, which was a significant achievement against the background of a start to the year dominated by lockdown.

The majority of our boat trips are run by our team of volunteer skippers and crew, who are trained in-house under the supervision of our Boat Manager. As well as private and community trips, as an accredited training centre for the National Community Boats Association, we offer boat handling, certified skipper and crew courses for our own volunteers as well as the wider community.

In 2021 we delivered:

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The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

Community Centre

The Pirate Castle’s fully accessible venue offers two characterful spaces for hire, both overlooking the Regent’s Canal. Our Main Hall and Club Room are used by a diverse range of local community and voluntary groups, private individuals and businesses for a wide range of projects and events, offering substantial discounts for SEND groups, charities and other support organisations and local residents.

During 2021, of all our income streams, hall hire was again the most severely impacted by Covid-19 restrictions due to its indoor setting. Hall hire revenue is crucial to our ability to cover overheads. However, even after restrictions were lifted there has been continued and understandable reticence from private and community hirers to mix in indoor settings and community centre hire continues to suffer from the legacy of the pandemic. Total hall hire income actually fell by 10% in 2021 and it is clear that recovery will continue to be slow.

In 2021 we delivered:

Volunteering

As always, we would like to take this opportunity to recognise the hard work and dedication of our loyal team of volunteers, upon whom we rely to deliver some of our services and activities.

In 2021, our volunteer canal boat skippers, crew and training mentors collectively gave generously of their time when possible to deliver boat trips and training courses and conduct boat maintenance days.

To ensure sustainability and growth of canal boating into 2022 we undertook specific, targeted volunteer recruitment and training, with considerable success. We now have ten new boat crew volunteers, four new NCBA CCBM qualified skippers, one new NCBA trainer and two new training mentors. In addition, six of our youth paddlesport volunteers have now qualified as competent crew.

We also invested in training / developing our youth and adult paddlesport volunteers, with weekly paddle skills sessions to help them gain the skills, confidence and leadership qualities

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The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

to become Paddle Activity Assistants and future Instructors. During 2021 six of our older youth (ages 14+) regular paddlesport attendees became Paddle Activity Assistant volunteers. Five of our youth Paddle Activity Assistant volunteers and one adult volunteer passed their Paddlesport Instructor (level 1) training and assessment. Six adult paddlers now also volunteer as Paddle Activity Assistants.

Financial review

During 2021 total income was £287,239 (2020: £266,840) and total expenses were £275,577 (2020: £271,664).

Total funds carried forward as at 31 December 2021 are £1,000,915. This includes designated funds of £882,475 (freehold and leasehold property, Pirate Prince); restricted funds of £40,641 which included Black Pearl (our canal boat bought with the 2017 LB Camden s106 restricted grant) and a portion of the 2020 CIL grant that has not been yet applied; and £77,799 unrestricted general funds which includes all cash at bank and in hand less creditors falling due within one year.

Income

We received donations and grants of £147,874 (2020: £165,775). Of this, £5,000 were restricted funds towards the delivery of our holiday scheme and youth paddle sport services. Due to the impact of Covid-19, we were able to secure significant emergency funding, including Government Help for Business grant, helping supplement core costs and salaries. In addition we had a successful Crowdfunder campaign that helped raised £49,444 including gift aid in 2021 and as of Aug 2022 has raised an additional £7,813 in 2022 including gift aid.

Income from charitable activities and trading activity was £118,915 (2020: £70,862), including revenue generated through the hire of our community spaces which remained on a low level at £27,079 (2020: £30,223), reflecting the impacts from covid that restricted our ability to rent out the hall for a substantial part of the year.

Income from our canal boats (including subsidised Camden Community Cruises) and community paddle sport / outdoor education increased to £22,293 (2020: £8,480) and £39,860 (2020: £18,850) respectively. This is primarily due to our ability to operate more in 2021 than 2020 which was limited as a result of Covid-19 restrictions. Income from the school holiday scheme increased to £26,374 (2020: £10,076).

Grants and Donations

Fundraising and donations accounted for 59% of our total income in 2021 (2020: 73%). The trustees would like to thank all of our funders and donors for their contributions, however

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The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

large or small, without which The Pirate Castle would struggle to maintain and develop our community services or achieve our charitable aims.

We also received £20,445 (2020: £30,150) as part of the Coronavirus Job Retention Scheme as some of our employees were placed on full or part furlough throughout the year when we were unable to operate.

Donors in 2021 included the following organisations:

There was also unrestricted funding from other organisations and individual donations as well as the many Crowdfunder donors who supported us in 2021.

During 2021 we received £5,000 in restricted funds. Most restricted grant income has been fully spent for the purposes for which it was given, with issues around lockdowns and restrictions leaving a small amount of the income to be spent:

Expenses

Total operating expenses (total expenses excluding governance costs) in 2021 were £271,665 (2020: £268,064). Salary costs were also higher in 2021 manly due to the employment of a new General Manager on a full year basis. A high proportion of our costs are associated with owning and running the building and employing our five other members of staff to manage the charity and deliver our charitable activities.

Other significant costs include the depreciation of property and our canal boats

Balance Sheet

The Charity’s fixed assets include The Pirate Castle building, which is part freehold and part leasehold, and our two canal boats. Our fixed assets of £917,946 are unchanged, with the exception of depreciation over the year.

Our current assets are £92,408. This is cash at bank and in hand at year end of £87,408. The cash in the bank is to ensure the Charity has sufficient funds to cover our costs in the first

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The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

quarter of the year when the Charity's ability to earn income from outdoor canal-based activities is limited.

Creditors of £9,439 (2020: £12,800) no longer includes the outstanding loan from our former Chairman which was paid back during the course of 2021. Debtors of £5,000 (2020: £6,618) at the end of 2021.

Reserves policy and going concern

It is the Charity’s aim to build up six months’ operational expenditure to be kept as reserves. Reserves are needed to meet the gap between the spending and receipt of income and to cover any unplanned emergency repairs, events and other expenditure. At the time of preparing this Report, a sub-group of Trustees is working on a reserves policy for board consideration. As at 31 December 2021, The Pirate Castle currently has free reserves of £77,799 at the end of 2021.

Plans for the future

Despite the impact of Covid restrictions, thanks to a successful year in fundraising, in particular our Crowdfunder campaign, Garfield Weston grant and Government pandemic support, including the CJRS, we have started 2022 on a strong footing for growth this year.

We will continue to challenge exclusion and disadvantage, tackle inequality and improve the health, wellbeing and togetherness of our local community. With the end of virus restrictions, we are re-engaging with schools and community groups in the local area, and seeking new potential service user groups, to retain and grow the people whom we benefit.

Our plans in 2022 are to focus on growth, increasing engagement, broadening our impact, upgrading our community facilities and maximizing income to support longer-term sustainability. We intend to continue working more closely with new and existing partner organisations, Camden's Community Sport and Physical Activity team and wider outreach to primary and secondary schools.

We plan to move to a seven day per week operation for paddlesport. This means we will be able to offer activity on Sundays, bank holidays and later evening activities in the lighter months. We will also be delivering new projects, especially for adults and families on Sundays, extending our community reach.

Canal boating has started strongly this year and the interest is already growing, not only for private cruises but also for community cruises and training days. We are actively engaging and reengaging with schools, community groups, care homes and other local charities for our community cruises and multi-activity days later in the summer.

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The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

Whilst some of our hall hire users have returned, we are working to re-engage with others. However, we are aware that the groups themselves are struggling somewhat to recruit to their sessions, and the demand for private hire continues to be modest. We are seeking new opportunities with schools, community groups and businesses to promote hall hire and to market the hall as a venue for social events, parties and gatherings to provide valuable income.

We are also improving our infrastructure – we have been successful in a bid to London Borough of Camden LCIL fund to renovate our changing rooms and showers. Work has already begun and was completed in June 2022. We have a number of other infrastructure priorities and will be working to identify suitable funding streams to continue to improve our building and carry out essential works.

The Trustee board and our General Manager remain focused upon the Charity’s financial position and building for its future, whilst dealing with the legacy of Covid-19 affecting our ability to earn income, in particular the slow rebuilding of hall hire.

Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Key judgements that the charitable company has made which have a significant effect on the accounts include the impact of Covid-19 on the charity in 2021 and the ability of the charity to weather further disruptions.

As we entered 2022 with a sufficient level of reserves we are confident in the ability of the charity to continue as a going concern. We are also confident that we are able to flex the cost base if necessary to keep the charity operating if there are further restrictions that limit our ability to generate income in 2022. For this reason the trustees continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis and our future plans can be found below and in the Accounting Policies to the accounts.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 8 September 2010 and registered as a charity on 2 November 2010.

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 7 to the accounts.

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The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

Appointment of trustees

As set out in the Articles of Association, trustees are appointed by resolution of the Board. Under the Articles, there must be no fewer than three trustees and no more than twelve, all of whom must also be members of the company. The Chair is elected by the Board of trustees. One third of trustees are required to retire annually under the Articles, unless the individuals remain willing to act in which case he/she may be reappointed.

Details of the trustees who served during the year and to the date of this report are shown on page 1.

Statement of responsibilities of the trustees

The trustees (who are also directors of The Pirate Castle for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

12

The Pirate Castle

Trustees annual report

For the year ended 31 December 2021

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 December 2021 was 7 (2020:7). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

The trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The trustees’ annual report has been approved by the trustees on 28 September 2022 and signed on their behalf by

Georgina Rowley Chairperson

13

Independent examiner’s

Report to the trustees of

The Pirate Castle

I report to the trustees on my examination of the accounts of The Pirate Castle for the year ended 31 December 2021.

This report is made solely to the trustees as a body, in accordance with the Charities Act 2011. My examination has been undertaken so that I might state to the trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the trustees as a body, for my examination, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the charity trustees of the charitable company 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 the charitable company’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011 (‘the 2011 Act’).

Independent examiner’s statement

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accounts in England and Wales, which is one of the listed bodies.

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

14

Independent examiner’s

Report to the trustees of

The Pirate Castle

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.

Name: Joanna Pittman FCA Independent Examiner Address: Sayer Vincent LLP, Invicta House, 108-114 Golden Lane, London, EC1Y 0TL Date: 28 September 2022

15

The Pirate Castle

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2021

Note
Income from:
2
3
3
3
4
5
6
15a
Reconciliation of funds:
Canal Boating
Outdoor Education
Donations and legacies
Charitable activities
CJRS Income
Net income/(expenditure) for the year
Total expenditure
Charitable activities
Community Centre
Other trading activities
Total income
Expenditure on:
Investment income
Total funds brought forward
Total funds carried forward
Transfers between funds
Net movement in funds		 Unrestricted
general

£
142,874
20,445
22,293
66,234
27,079
3,310
4		 Unrestricted
designated
£
-
-
-
-
-
-
-
Restricted
£
-
-
-
5,000
-
-
-		 2021
Total
£
142,874
20,445
22,293
71,234
27,079
3,310
4		 Unrestricted
general
£
55,856
30,150
8,480
28,926
30,223
3,233
53		 Unrestricted
designated
£
28,965
-
-
-
-
-
-		 Restricted
£
-
-
-
32,094
48,860
-
-		 2020
Total
£
84,821
30,150
8,480
61,020
79,083
3,233
53
282,239 - 5,000 287,239 156,921 28,965 80,954 266,840
237,603 25,212 12,762 275,577 176,850 25,212 69,602 271,664
237,603 25,212 12,762 275,577 176,850 25,212 69,602 271,664
44,636
28,965		 (25,212)
(28,965)		 (7,762)
-		 11,662
-		 (19,929)
-		 3,753
-		 11,352
-		 (4,824)
-
73,601
4,198		 (54,177)
936,652		 (7,762)
48,403		 11,662
989,253		 (19,929)
24,127		 3,753
932,899		 11,352
37,051		 (4,824)
994,077
77,799 882,475 40,641 1,000,915 4,198 936,652 48,403 989,253

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 15 to the financial statements.

16

The Pirate Castle

Company no. 7370167

Balance sheet

As at 31 December 2021

As at 31 December 2021
Balance sheet		 Company no. 7370167
Note
Fixed assets:
11
Current assets:
12
Liabilities:
13
15
Total unrestricted funds
Total charity funds
Cash at bank and in hand
Tangible assets
Creditors: amounts falling due within one year
Net current assets
Total net assets
The funds of the charity:
Unrestricted funds
Designated funds
Unrestricted funds
Total assets less current liabilities
Debtors
Restricted funds		 £
5,000
87,408		 2021
£
917,946		 £
6,618
51,487		 2020
£
943,948
917,946 943,948
82,969 45,305
92,408
(9,439)		 58,105
(12,800)
882,475
77,799
1,000,915 989,253
1,000,915 989,253
40,641 48,403
960,274 936,652
4,198
940,850
1,000,915 989,253

The opinion of the directors is that the company is entitled to the exemptions conferred by Section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge the following responsibilities:

These accounts have been prepared in accordance with the special provisions applicable to small companies subject to the small companies' regime.

Approved by the trustees on 28 September 2022

and signed on their behalf by

Georgina Rowley Chairperson

17

The Pirate Castle

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies

a) Basis of preparation

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

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

b) Company status and public benefit entity

The company is a charitable company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company. The charity meets the definition of a public benefit entity under FRS 102

c) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

Key judgements that the charitable company has made which have a significant effect on the accounts include the impact that Covid-19 has had on the charity in 2021 and the ability of the charity to weather further disruptions. As we entered 2021 with a sufficient level of reserves we are confident on the ability of the charity to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

d) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

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

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

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by charitable activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.

All expenditure is inclusive of irrecoverable VAT. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Charitable activities are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

18

The Pirate Castle

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies (continued)

g) Allocation of staff and support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. Where possible to attribute to specific activities, staff costs have been allocated to each activity based on an estimate of staff time. The remaining staff costs which are not directly attributable have been allocated to support costs.

Shared costs which contribute to more than one activity and support costs (the cost of overall direction and administration of each activity, comprising the salary and overhead costs) which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based in part on estimated staff time, of the amount attributable to each activity:

Canal Boating 25%
Outdoor Education 20%
Community Centre 40%
Holiday Scheme 15%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

i) Tangible fixed assets Items of equipment are capitalised at cost where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful lives on the following bases:

 Freehold property 2% straight line basis  Long-term leasehold property 2% straight line basis  Canal boats 2% straight line basis

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

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

Liabilities and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit to a third party will be required in settlement, and the amount of the settlement can be measured or estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt, or the amount it has received as advanced payments for the goods or services it must provide.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

The charity contributes to a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charity to the fund. The charity has no liability under the scheme other than for the payment of those contributions.

19

The Pirate Castle

Notes to the financial statements

For the year ended 31 December 2021

2
Income from donations and legacies
3.
Private trips and training
Camden Community Cruises
Other
Private bookings
Community and schools
School holiday scheme
Other
Room hire
CIL Funding
4
Income from charitable activities
Other
Outdoor education
Canal Boating
Community Centre room hire
Total income from other trading activities
Total income from donations and legacies
Total income from charitable activities
Donations
Hire of storage space
John Lyons grant - outdoor education co-
ordinator
Income from other trading activities		 Unrestricted
£
142,874		 Designated
£
-		 Restricted
£
-		 2021
Total
£
142,874		 Unrestricted
£
55,856		 Designated
£
28,965		 Restricted
£
-		 2020
Total
£
84,821
142,874 - - 142,874 55,856 28,965 - 84,821
Unrestricted
£
13,639
8,654
-		 Designated
£
-
-
-		 Restricted
£
-
-
-		 2021
Total
£
13,639
8,654
-		 Unrestricted
£
8,048
432
-		 Designated
£
-
-
-		 Restricted
£
-
-
-		 2020
Total
£
8,048
432
-
22,293
-
22,443
10,971
26,374
6,446		 -
-
-
-
-
-		 -
-
-
-
5,000
-		 22,293
-
22,443
10,971
31,374
6,446		 8,480
-
9,994
5,037
10,076
3,819		 -
-
-
-
-		 -
8,000
-
4,115
6,000
13,979		 8,480
8,000
9,994
9,152
16,076
17,798
66,234
27,079
-		 -
-
-		 5,000
-
-		 71,234
27,079
-		 28,926
30,223
-		 -
-
-		 32,094
-
48,860		 61,020
30,223
48,860
27,079 - - 27,079 30,223 - 48,860 79,083
115,605 - 5,000 120,605 67,628 - 80,954 148,582
Unrestricted
£
3,125
185		 Designated
£
-
-		 Restricted
£
-
-		 2021
Total
£
3,125
185		 Unrestricted
£
2,156
1,077		 Designated
£
-
-		 Restricted
£
-
-		 2020
Total
£
2,156
1,077
3,310 - - 3,310 3,233 - - 3,233

20

The Pirate Castle

Notes to the financial statements

For the year ended 31 December 2021

5a Analysis of expenditure (current year)

Staff costs (Note 7)
Canal Boating Direct Costs
Outdoor Education Direct Costs
Community Centre Direct Costs
Holiday scheme Direct Costs
Office Core Costs
Depreciation
Independent examiner's fees
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Cost of
raising
funds
£
29,051
-
-
-
-
-
-
-
29,051
-
-
29,051
25,257		 Charitable activities Charitable activities Charitable activities Governance
costs
£
-
-
-
-
-
-
-
3,912
3,912
-
(3,912)
-
-		 Support
costs
£
72,627
-
-
-
-
34,242
26,002
-
132,871
(132,871)
-
-
-		 2021
Total
£
161,394
7,513
21,051
9,266
12,197
34,242
26,002
3,912
275,577
-
-
275,577		 2020
Total
£
140,316
6,259
6,381
46,035
6,662
36,409
26,002
3,600
Canal
Boating
£
20,981
7,513
-
-
-
-
-
-
28,494
33,218
978
62,690
56,788		 Outdoor
education
£
38,735
-
21,051
-
12,197
-
-
-
71,983
46,505
1,369
119,857
91,923		 Community
centre
£
-
-
-
9,266
-
-
-
-
9,266
53,148
1,565
63,979
97,696
271,665
-
-
-
271,664

21

The Pirate Castle

Notes to the financial statements

For the year ended 31 December 2021

5b Analysis of expenditure (prior year)

Analysis of expenditure (prior year)
Staff costs (Note 7)
Canal Boating direct costs
Outdoor Education direct costs
Community Centre direct costs
Holiday scheme direct costs
Office costs
Depreciation
Independent examiner's fee
Support costs
Governance costs
Total expenditure 2020		 Cost of
raising
funds
£
25,257
-
-
-
-
-
-
-
25,257
-
-
25,257		 Canal
Boating
Outdoor
Education
Community
Centre
£
£
£
18,241
33,676
-
6,259
-
-
-
6,381
-
-
-
46,035
-
6,662
-
-
-
-
-
-
-
-
-
-
24,500
46,719
46,035
31,388
43,944
50,221
900
1,260
1,440
56,788
91,923
97,696
Charitable activities		 Governance
costs
£
-
-
-
-
-
-
-
3,600
3,600
-
(3,600)
-		 Support
costs
£
63,142
-
-
-
-
36,409
26,002
-
125,553
(125,553)
-
-		 2020
Total
£
140,316
6,259
6,381
46,035
6,662
36,409
26,002
3,600
Canal
Boating
£
18,241
6,259
-
-
-
-
-
-
24,500
31,388
900
56,788		 Outdoor
Education
£
33,676
-
6,381
-
6,662
-
-
-
46,719
43,944
1,260
91,923
271,664
-
-
271,664

22

The Pirate Castle

Notes to the financial statements

For the year ended 31 December 2021

6 Net income / (expenditure) for the year

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2021 2020
£ £
Depreciation 26,002 26,002
Independent examiner's remuneration (excluding VAT):
Current examiner - for examination 3,200 3,060

Staff costs were as follows:

Staff costs were as follows:
Employer's contribution to defined contribution pension scheme
Salaries and wages
Social security costs
Redundancy and termination costs		 2021
£
146,258
-
12,922
2,214		 2020
£
125,821
1,500
10,849
2,146
161,394 140,316

No employee earned more than £60,000 during the year (2020: nil).

The total employee benefits including pension contributions of the key management personnel (the General Manager and Development manager) were £81,051 (2020: £65,237).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £0). No charity trustee received payment for professional or other services supplied to the charity (2020: £0).

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Outdoor Education
Support staff		 2021
No.
1.0
5.0		 2020
No.
1.0
5.0
6.0 6.0

9 Related party transactions

Aggregate donation from related parties in 2021 of none (2020: £150).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

23

The Pirate Castle

Notes to the financial statements

For the year ended 31 December 2021

10 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

11 Tangible fixed assets

Tangible fixed assets
At the start of the year
Charge for the year
At the end of the year
At the start of the year
At the end of the year
At the start of the year
At the end of the year
Cost or valuation
Depreciation
Net book value		 Freehold
property
£
1,014,444		 Long
Leasehold
£
112,406		 £
133,761
Narrowboat -
Pirate Prince		 £
39,485
Narrowboat -
Black Pearl		 Total
£
1,300,096
1,014,444 112,406 133,761 39,485 1,300,096
247,252
20,289		 80,254
2,248		 25,418
2,675		 3,224
790		 356,148
26,002
267,541 82,502 28,093 4,014 382,150
746,903 29,904 105,668 35,471 917,946
767,192 32,152 108,343 36,261 943,948

All of the above assets are used for charitable purposes.

12 Debtors

Debtors
Trade debtors
Accrued income		 2021
£
-
5,000		 2020
£
6,618
-
5,000 6,618

13 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Deferred income
Loan
Accruals
Trade creditors
Other taxation and social security
Other creditors		 2021
£
1,438
3,461
-
700
-
3,840		 2020
£
299
3,201
5,000
700
-
3,600
9,439 12,800

The loan was received from a former chair of the charity in 2016 to provide working capital and was repaid in full in 2021.

24

The Pirate Castle

Notes to the financial statements

For the year ended 31 December 2021

14a Analysis of net assets between funds (current year)

Tangible fixed assets
Current assets
Creditors due within one year
Analysis of net assets between funds (prior year)
Net assets at the end of the year
Tangible fixed assets
Creditors due within one year
Current assets
Net assets at the end of the year		 General
unrestricted
£
-
87,238
(9,439)		 £
35,471
5,170
-
Restricted		 Designated
£
882,475
-
-		 Total funds
£
917,946
92,408
(9,439)
77,799 40,641 882,475 1,000,915
General
unrestricted
£
-
16,998
(12,800)		 £
36,261
12,142
-
Restricted		 Designated
£
907,687
28,965
-		 Total funds
£
943,948
58,105
(12,800)
4,198 48,403 936,652 989,253

14b Analysis of net assets between funds (prior year)

25

The Pirate Castle

Notes to the financial statements

For the year ended 31 December 2021

15a Movements in funds (current year)

Movements in funds (current year)
Total unrestricted funds
Total restricted funds
CIL funding
Restricted funds:
Designated assets (JLC for 2021)
LCR wave 3
LabTech fund
Designated assets (fixed assets)
General funds
Unrestricted funds:
JLC SHAF Fund
Black Pearl
Total funds		 At the start
of the year
£
4,198
907,687
28,965		 Incoming
resources &
gains
£
282,239
-
-		 Outgoing
resources &
losses
£
(237,603)
(25,212)
-		 Transfers
£
28,965
-
(28,965)		 At the end
of the year
£
77,799
882,475
-
940,850 282,239 (262,815) - 960,274
-
-
8,842
3,300
36,261		 4,000
1,000
-
-
-		 (4,000)
(1,000)
(3,672)
(3,300)
(790)		 -
-
-
-
-		 -
-
5,170
-
35,471
48,403 5,000 (12,762) - 40,641
989,253 287,239 (275,577) - 1,000,915

Purposes of restricted funds

JLC SHAF Fund - to provide subsidised places or offset costs on the holiday scheme.

LabTech - to provide 100 free “Splash” Holiday Scheme places for local Camden kids

CIL funding - Community Infrastructure Levy funding towards essential repair and infrastructure works at The Pirate Castle.

LCR wave 3 - to support delivery of our Autumn Holiday Scheme and to support costs to provide affordable / free and inclusive community paddlesport sessions from September to March.

Black Pearl - includes the net book value of the 'Black Pearl' canal boat. Depreciation related to this asset is charged to the fund.

Outdoor education co-ordinator (JLC Fund) - to fund the salary of an outdoor education co-ordinator.

Sports England - to assist The Pirate Castle through the Covid-19 crisis by supporting irrecoverable costs incurred by the organisation between 01/03/2020 and 31/07/2020.

JLC SHAF Fund - to provide subsidised places or offset costs on the holiday scheme.

Co-Op Local Causes - to support delivery of Youth Community Activities

Outdoor education - insurance payment to fund purchase and repair of kayaks.

Purposes of designated funds

Designated funds represent the net book value of the freehold and leasehold property and the 'Pirate Prince' canal boat. Depreciation related to these assets is charged to the fund. In addition, the designated funds included £28,965 that was received from JLC as unrestricted funds to be spent in 2021 and has since been transferred into general funds.

26

The Pirate Castle

Notes to the financial statements

For the year ended 31 December 2021

15b Movements in funds (prior year)

Movements in funds (prior year)
Total designated funds
Total unrestricted funds
Total restricted funds
General funds
Designated funds
Restricted funds
Unrestricted funds:
Restricted funds:
Black Pearl
Outdoor education co-ordinator
Co-Op Local Causes
Designated assets (fixed assets)
General funds
Total funds
JLC SHAF Fund
Sports England
CIL funding
Designated assets (JLC for 2021)
Outdoor education
LCR wave 3		 At the start
of the year
£
24,127
932,899
-
932,899		 Incoming
resources &
gains
£
156,921
-
28,965
28,965		 Outgoing
resources &
losses
£
(176,850)
(25,212)
-
(25,212)		 Transfers
£
-
-
-
-		 At the end
of the year
£
4,198
907,687
28,965
936,652
957,026 185,886 (202,062) - 940,850
-
-
-
-
-
-
-
37,051		 8,000
48,860
6,000
4,115
5,500
979
7,500
-		 (8,000)
(40,018)
(6,000)
(4,115)
(5,500)
(979)
(4,200)
(790)		 -
-
-
-
-
-
-		 -
8,842
-
-
-
3,300
36,261
37,051 80,954 (69,602) - 48,403
24,127
932,899
37,051		 156,921
28,965
80,954		 (176,850)
(25,212)
(69,602)		 -
-
-		 4,198
936,652
48,403
994,077 266,840 (271,664) - 989,253

27