Charity number: 1146376 Company number: 07935358
The HMS Victory Preservation Company (A company limited by guarantee) Incorporating the HMS Victory Preservation Trust
Trustees’ report and financial statements
for the year ended 31 March 2024
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
Contents
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Statement of Trustees’ and Accounting Officer’s responsibilities ..............cccsssccccceeesssstcceeeeesssssssseeeeessssssssssssseeeesLD
Independent Auditor’s report to the Trustees of The HMS Victory Preservation COMPANY............:ssesessseeeeeeeseeeeLO
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
Legal and administrative information
Charity number 1146376
Company registration number 07935358
Registered office HM Naval Base (PP66)
Portsmouth
Hampshire
PO1 3NH
Chief Executive and Matthew Sheldon (appointed 1 December 2023)
Accounting Officer
Director General and Dominic Tweddle (resigned 30 November 2023)
Accounting Officer
Trustees Vice Admiral Sir Charles Montgomery
Ms Rosemary Banyard
Commodore Jeremy Bailey
Ms Joanna Baldwin (appointed 30 May 2023)
Mr Mark Caroe (resigned 17 May 2023)
Mrs Barbara Halliday
Rear Admiral Amjad Hussain
Mr Andrew Impey
Ms Helen Jackson
Mr Jamie Matheson
Mrs Mary Montagu-Scott
Rear Admiral Richard Stokes (resigned 22 February 2024)
Dr Matthew Tanner
Mrs Julie Taylor (appointed 31 May 2023)
Company Secretary Nichola Tregear
Accountants Compass Accountants
Venture House, The Tanneries, East Street, Titchfield
Hampshire PO14 4AR
Auditors Price Bailey LLP
24 Old Bond Street, London, W1S 4AP
Bankers Lloyds TSB Bank Plc
16A High Street, Cosham, Portsmouth
Hampshire PO6 3DY
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
Foreword
The Trustees present their annual report and the audited financial statements of The HMS Victory
Preservation Company (“the charitable company”) for the year ended 31 March 2024. The Trustee has
adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by
Charities” (FRS 102) in preparing the annual report and financial statements of the charitable company.
The charitable objectives of The HMS Victory Preservation Company, as defined in the Articles of Association,
are:
a) To preserve, restore and maintain HMS Victory;
b) To educate the Naval Service and Auxiliaries and members of the public about the history of HMS Victory
and the history of the Royal Navy and other matters relating to the defence of the realm;
c) To promote the efficiency of the armed forces by assisting recruitment and retention and fostering the
esprit de corps of the men and women who are serving in the Naval Service or Auxiliaries; and
d) To commemorate and remember those members of the Naval Service and Auxiliaries who have died while
on active service and to encourage public recognition of the sacrifice made by such persons.
The charitable objectives of The HMS Victory Preservation Trust are that the Trust shall hold:
a) HMS Victory the flagship of Lord Nelson at the Battle of Trafalgar (incorporating all subsequent and future
repairs and changes in constituent parts) (the Ship);
b) All chattels which the Trust owns that belong or have belonged to the Ship including the Ship’s cradle and
supports (the Ship’s Fittings); and
c) Allintellectual property in the Ship
in perpetuity, but for the avoidance of doubt:
i. The Trust may repair, replace or renew any part of the fabric of the Ship in order to preserve her as a
whole in as historically authentic condition as possible and after taking advice on good conservation
practice and reference to “the Ship” are references to HMS Victory in her condition at the time in
question which may reflect such repairs, replacements and renewals
ii. The Trust is not required to hold in perpetuity any parts of the Ship or the Ship’s Fittings which are
removed in the course of a programme of preservation and restoration and in the opinion of an
appropriately qualified expert have no remaining historical value;
d) All material acquired by the Trust for the purposes of application in preserving, restoring or maintaining
the Ship; and
e) The remainder of the Trust Fund and all accretions thereto as expendable endowment, upon trust to apply
them for the benefit of the public:
i. To preserve, restore and maintain the Ship;
ii. To educate the public about the history of the Ship and the history of the Royal Navy and other
matters relating to the defence of the realm;
iii. To promote the efficiency of the armed forces by assisting recruitment and retention and fostering
the esprit de corps of the men and women who are serving in the Naval Service or Auxiliaries;
iv. To commemorate and remember those members of the Naval Service and Auxiliaries who have died
while on active service and to encourage public recognition of the sacrifice made by such persons;
Provided that the Trust shall have regard to the need not to act in detriment of objects (iii) and (iv)
when acting in furtherance of objects (i) or (ii).
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358
Performance Report
Overview
The charitable company was established in February 2012 as a wholly owned subsidiary of the National Museum of the Royal Navy (“the National Museum”), which is the sole corporate member of the charitable company.
On 29 March 2012, the ownership of HMS Victory transferred to the HMS Victory Preservation Trust, an unincorporated registered charitable trust of the charitable company. An agreement was signed which allows the use of the Ship by the Royal Navy for the foreseeable future. HMS Victory thus remains a commissioned warship and the Royal Navy’s Flagship. At the same time, The Gosling Foundation made an exceptionally generous gift of £25,000,000 to the charitable company. The charitable company, by formal declaration, holds the Foundation's donation as an endowment fund as trustee of the trust. This was also supported by a donation of £5,000,000 from the Heritage Lottery Fund Catalyst Endowment fund, a non-expendable endowment from which the charitable company may only use the income for a period of 25 years. The value of these endowment funds stood at £44,321,412 on the 31 March 2024.
The Trustees of the charitable company have concluded that they do not have the operational expertise or infrastructure to preserve, restore and maintain the Ship or to present it to the public as a visitor attraction. Accordingly, the charitable company has come to an agreement with the charitable entity, NURN Operations (“the operator”) (charity number: 1169061), also a wholly owned subsidiary of the National Museum, that it will both maintain the Ship and present it as a visitor attraction to the public as part of its charitable activities. The Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission in defining the strategic direction and activities outlined below relating to HMS Victory.
Activities and Achievements
Preserving, restoring and maintaining HMS Victory
The HMS Victory Preservation Company has resolved that the conservation of the Ship will be approached in accordance with those principles set out in the National Historic Ships UK publication “Conserving Historic Vessels”. In May 2015, the charitable company approved the Conservation Programme Plan (CPP) for the Ship, developed by the operator in association with subject matter experts. Its purpose is to define what conservation work is required to deliver a fully conserved HMS Victory, in an open environment and in a condition to survive for 50 years without major work beyond a programme of planned maintenance.
To support the CPP, a revised Conservation Management Plan (CMP) was developed during the year by the operator and reviewed by the Trustees and Directors, with support and challenge from the Victory Technical Committee, to ensure it is future proofed and supports the planned programme. The plan will enable a consistent approach for all who work on the Ship.
Efforts in the year continued to concentrate on hull planking removal. Although the operator has been successful in removing a large number of planks, this came with a number of challenges due to degradation of on-ship materials, and the standard of frames being exposed. This resulted in a revised project baseline which was further impacted by the cost of materials significantly increasing due to inflationary rises.
A programme of surveys and testing mandated by legislation, was completed alongside the commencement of fungicidal treatment and graved repairs to the Ship’s frame on the Starboard side. Production of replacement
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
futtocks had also started. Work was undertaken by the operator, under the guidance of structural support
specialists, to prevent movement of the Ship in its current structure during this process.
The year also saw the final consolidating of the Ship’s rig and smaller spars that were removed in 2011. They
are now in one location where they will be catalogued, and their condition assessed to inform planning for the
re-rig.
Significant achievements that were made include:
Materials Trials — testing continued by the operator’s Conservation Team to establish the impact of UV, water
permeability and various materials for fastenings on the Ship. This extensive programme of work, undertaken
in partnership with Southampton University’s nc? consultancy, is enabling the project to better understand the
likely degradation of materials over time, and make informed decisions as to the best choices of fixings, glues,
paints and timber to be used on the project, and the levels of maintenance likely to be required going forward.
The ship-side mock-up surveys progressed on a monthly basis and the results showed patterns of
deterioration. This information, combined with the laboratory results from materials trials was used when
selecting the materials for re-planking the ship. The approach to the fungal survey which has been outlined
with the University’s microbiology department is due to commence in the summer. The Deathwatch beetle
colony that was sent to London Zoo for testing reported positive signs that there is larvae in the Ship’s timber
and this will enable further testing and management going forward.
Workshop Upgrades — to support the delivery of the 12-year conservation plan, upgrades to the workshops
progressed and a new space was designed. The Bay 4 racking construction was completed to support the new
space for critical quality control procedures for the production of laminating oak and for the smooth supply
chain flow from the timber supplier.
Scaffolding Structure - the large scaffold structure continues to be adapted to support the work of the
operator’s conservators and shipwrights.
Timber Procurement — the operator’s timber framework agreement implemented in 2022-23 continues to be
used and materials received to date have met the required specification.
Digital Content — the operator’s conservation team captured digital footage of the project during the year,
including:
e 3D drone surveys
e 3D Modelling
e 3D High resolution footage of planks
All of the content was used to highlight these exciting new pictures to support visitors’ research and
experiences across websites, social media and within the Victory Live experience and can be found on the
National Museum’s website, including the ‘HMS VICTORY: The Big Repair Information Hub’ that went live in
February 2024. The Hub enables digital visitors and also site visitors to experience the level of conservation
being undertaken, receive key updates, witness the restoration milestones and learn more about the science.
The Hub will showcase the conservation project, digital footage, stories from those working on the project and
will be used to further promote the conservation with external broadcasters and production teams.
To support this, the operator’s Archaeology Team led the preparation and implementation of a strategy for
recording the work packages dealing with the starboard futtock repairs. Such strategies included photographs
and laser scans as work progressed and will be used as an archaeological archive for future researchers and
custodians of the Ship.
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
Educating about the history of HMS Victory and the Royal Navy and the defence of the realm
The operator welcomed 282,056 visitors (2022-23: 204,859 visitors) to HMS Victory (Ship and Gallery) during
the period and the Ship continued to be one of the most visited attractions at the Portsmouth Historic
Dockyard. Guided tours were reintroduced during the off-peak period and proved successful with excellent
feedback. Up to 23 tours of the Ship were given each day during this period where the operator’s staff brought
the ship to life and educated the visitors on the whole history of the Ship in a personable way.
The operator’s schools offer continued to feature as a core element of programming and engagement. There
were approximately 12,149 school visits to the Ship and Gallery. The operator’s staff also supported the wider
sector through delivering a ‘virtual’ session on board HMS Victory as part of a ‘Kids in Museums’ conference
which was well received. The Minecraft programming strand, delivered in partnership with the Scaffold
contractors, was nominated for the Construction News Specialist Awards in the ‘Excellence in Social Value’
category and continues to be held on site when large numbers of families visit. This was well publicised
through the social media channels.
STEM wasa significant theme for the summer that included an action event led by the Royal Navy’s STEM
Engagement Team, supported by the operator’s Conservation Team. Over 300 visitors participated in these
activities. During September 2023, HMS Victory was part of the National Museum’s Heritage Open Days
offering visitors the chance to meet shipwrights and riggers, with the opportunity to take a ‘Beetles on Board’
tour.
HMS Victory was visited by the FirstLight Trust who work with veterans within the community. It was included
in one of the ‘Tea and Sea’ sessions run at the Royal Navy Benevolent Trust care home, Jellicoe House, in their
dementia unit. Such events supported our community and funding was confirmed for the development of the
Chatterboxes project that outreach resource for patients with dementia. Trials have shown that these are
highly effective for stimulating communication and the project will be in partnership with the clinical team at
the Queen Alexandra Hospital.
The operator has approved strategic audience and branding work, to look at the market potential and align
audience priorities to the National Museum’s vision, mission and strategic plan.
The operator has continued to regularly meet with the Royal Navy Communications and Engagement Teams to
plan priority events, including those supporting joint working, with examples including the display of the
Peregrine Trophy winners for the year, and remembrance activities including Trafalgar Day.
Media coverage highlights included mention of the HMS Victory Conservation project and events across the
Daily Telegraph, BBC South News, ITV News, Channel 5 — Susan Calman’s ‘Grand Day Out’ and Portsmouth
news. Conservation footage has been made available on the National Museum’s Facebook page, Twitter feed
and Instagram.
A joint initiative between Portsmouth City Council and the operator’s joint venture with the Mary Rose Trust,
PHD Operations Limited, to offer free tickets to all families within the city who are entitled to Pupil Premium
proved a success during the year and opened up HMS Victory to those who may not have been able to visit the
Ship previously. All MoD serving personnel are also admitted free of charge to Portsmouth Historic Dockyard
and its attractions. Significant discounts are given to guests of serving personnel, veterans, HM Workers within
the Naval Base, blue light and NHS personnel.
The operator continues to update its online collections service and a number of items relating to HMS Victory
are available to view. Work continues to upload further collections to support with research and education for
digital visitors.
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358
Key Performance Indicators (KPI) for the Year:
|~~KPLo~~
~~sd~~|~~Target~~
~~|~~|~~Meeasured/Reported~~|
|---|---|---|
|~~KPLo~~
~~sd~~|~~Target~~
~~|~~|~~Meeasured/Reported~~|
|~~KPLo~~
~~sd ~~
No. ofvisitors to HMS Victory|~~Target~~
~~| ~~
195,096|~~Meeasured/Reported~~
226,118|
|No. of unique visitors to Victory
Hub website|350,000|Launched February 2024|
|% visitors to recommend a visit to |
Portsmouth Historic Dockyard||85%|87.24%|
|No. ofvisits by under 18s in
formal education|HMS Victory specific target not set |
for present financial year|| 12,149|
Supporting the Royal Navy
As the First Sea Lord’s Flagship, HMS Victory continues to be used by the Royal Navy in supporting recruitment, retention and morale, welcoming cadets and serving personnel for tours and visits, hosting overseas and British naval guests and other important stakeholders, and also playing an important role in ceremonial events. During the reporting period, the Royal Navy was able to host 6 ceremonial events including the Trafalgar Day Ceremony, 12 Great Cabin Dinners/Drink Receptions, 2 lower gun deck dinners and 2 drink receptions. In June 2023, Armed Forces Day was celebrated at the Portsmouth Historic Dockyard and all serving personnel were given free access to the attractions including HMS Victory.
Commemoration and remembrance HMS Victory is a key focus for remembrance of those members of the Royal Navy who have died while on active service. The Victory Gallery marks remembrance activities on the Ship by telling the story of Queen Victoria placing a wreath on the spot where Nelson fell on Trafalgar Day, 21 October. The laying of a wreath to mark Trafalgar Day as an act of remembrance continues to be an exceptionally important day in HMS Victory’s calendar.
Plans for Future Periods 2024-25 will see further progress in the physical conservation work to the Ship. With hull planking now removed over a large section of the Ship, an extensive re-baselining of the project was completed in order to provide a new, accurate, programme and budget for the project. Physical works to the ship will progress, including:
Hull Planking - further experiments will be undertaken on non-invasive condition assessment of the Ship’s futtocks using ground penetrating radar and work continues to finalise the futtock prototypes approach to large repairs in collaboration with external experts who are modelling disconnections, propping and proposing the monitoring regime for when futtocks are removed. Consultation continues with the timber specialist on the industrial laminating processes to inform the first stage laminating jig design. Production of futtocks continue to be discussed with specialist companies to identify how the process can be accelerated to align with the structural work and re-planking programme.
Mast Removal — the lower main mast removal to be progressed to allow a period of investigation, based on recommendations from industrial conservators. Public Engagement and Communication — following the outcomes from the operator’s audience development and brand work, work will continue to develop a comprehensive, innovative and ambitious programme of public engagement and communication to reach a diverse audience onsite, offsite and online, and that creates an impactful, meaningful and measurable legacy.
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
Expenditure for the coming period will be grant funding to NMRN Operations to deliver the Ship’s operation
for the public benefit, governance costs and investment management costs. Grants to NMRN Operations will
be funded from investment income, but also through grant funding received from the separate and
independent charitable trust, HMS Victory Preservation Endowment Fund (charity number: 1147573).
The charitable company holds substantial endowments, and with the support of the HMS Victory Preservation
Endowment Fund, the work will be funded for many years to come. The Trustees and Directors are, however,
aware of inflationary pressures and will begin to review fundraising opportunities over the coming years to
ensure the ability to deliver a fully conserved HMS Victory, in an open environment and in a condition to
survive for 50 years, without major work beyond a programme of planned maintenance. The Trustee and
Directors are therefore content that the going concern basis continues to apply.
Financial Review
Statement of Financial Activities for the Year Ended 31 March 2024
Total incoming resources for the HMS Victory Preservation Company in 2023-24 amounted to £732,979 (2022-
23: £683,216. This inflow related to investment income.
Total resources expended for 2023-24 amounted to £824,885 (2022-23: £317,764). This outflow related to
grants awarded to NMRN Operations for delivery of the conservation project, visitor and educative activities
and investment management and governance costs.
After net gains on investments of £3,590,658 (2022-23: £1,690,445 loss) on the investment portfolio as a
result of market volatility, and other recognised gains on revaluation of fixed assets totalling £7,484 (2022-23:
£15,864), the net movement in funds for the year was an increase of £3,506,236 (2022-23: £1,309,129
decrease).
Balance sheet
The net assets as at 31 March 2024 amounted to £71,003,467 (31 March 2023: £67,497,231). Of this total,
unrestricted funds were £523,171 (2022-23: £419,860 deficit), £44,321,412 related to endowment funds
(2022-23: £41,755,240), and £26,158,884 are the assets (the ship itself, the stock and the revaluation reserve)
of the HMS Victory Preservation Trust (2022-23: £26,161,851).
Movements in fixed assets are shown in notes 8 — 10.
Free Reserves
The Trustees regularly monitor the levels of the company’s free reserves (defined for the purposes of this
policy as the amounts shown as "Net Current Assets” in the accounts of the company, and which are
attributable to Unrestricted Funds). As at 31 March 2024, the level of the company's free reserves stood ata
£478,751 (2022-23 Deficit of £464,280 which arose from an adjustment to the timing of grant funding
payments to NMRN Operations for the 2021-22 financial year (£809,358) that, going forward, will be paid from
the investment income earned in the prior year).
The Trustees have considered the Reserves Policy and have decided not to set a minimum figure for the free
reserves because of the continually changing circumstances of the company and group.
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
Endowment Funds
The endowment funds include the Gosling Foundation gift (£25,000,000) and the Heritage Lottery Fund
Catalyst Endowment (£5,000,000 non-expendable endowment for a period of 25 years). The value of these
endowment funds stood at £44,321,412 on the 31 March 2024 (2022-23 £41,755,240. These funds may be
used to support the charitable objects of the company.
Investment Policy
The Trustees have developed a formal Investment Policy that operates alongside the Reserves Policy. The
charitable company seeks to produce the best possible financial return on its investments within an acceptable
level of risk.
The Trustees have delegated decision making on investment matters to its Investment Committee who have
appointed two professional investment management firms to manage the assets on a discretionary basis in line
with the Investment Policy. The investment managers provide custody of assets. Each manager is required to
meet with the Investment Committee twice a year and to provide a quarterly written report on investment
performance.
The Investment Committee has responsibility for delivering the investment strategy and monitoring the
investment assets. It is charged with agreeing a suitable asset allocation framework with the investment
managers, which is set with the overall charitable company objective in mind. The committee reviews
investment performance, including the asset allocation strategy, risk profile and consistency with the long-
term objective. Performance is monitored against agreed benchmarks and against the long-term investment
objective
Returns from the investment funds are required to maintain HMS Victory for future generations and it is
therefore essential to invest with a long-term perspective.
The charitable company adopts a total return approach to investment, generating the investment return from
income and capital gains or losses. Both investment income and capital gains may be expended within set
parameters.
The key risk to the long-term achievement of the investment objective is inflation, and the assets are invested
accordingly. The Trustees understand that this will mean that investments are likely to be predominantly
invested in equities, where dividends can be expected to grow, and that capital value will fluctuate. The
charitable company’s attitude to risk is therefore described as progressive.
The charitable company’s assets can be invested widely and are expected to be diversified by asset class, by
manager and by security. Asset classes can include cash, bonds, equities, property funds, hedge funds,
structured products, private equity, commodities and any other asset class that is deemed suitable for the
charitable company. The Trustees do not wish to invest in direct property.
The Investment Policy was reviewed and updated during the 2022-23 year to outline the Trustees’
expectations of the investment managers to make socially responsible investments decisions and to
demonstrate a rigorous process which seeks improvements in corporate social responsibility over time.
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The HMS Victory Preservation Company
(A company limited by guarantee) Company number: 07935358 Auditors The accounts have been audited by Price Bailey LLP. So far as the Trustees and Accounting Officer are aware, there is no relevant audit information of which the charitable company’s auditors are unaware. Trustees have taken all the steps necessary to make themselves aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.
Small company provisions
This report has been prepared in accordance with the small companies’ regime under the Companies Act 2006.
Approved by the Board and signed on its behalf by
VW ————eee
Vice Admiral Sir Charles Montgomery On Behalf of the Board of Trustees Date:13'" November 2024
Matthew Sheldon Chief Executive and Accounting Officer
Date: 13" November 2024
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358
Accountability Report
~~Trustees Report and Governance Statement~~
This report sets out the arrangements for the governance of the HMS Victory Preservation Company, including the Board structure for Trustees. The Trustees, who are also directors of the HMS Victory Preservation Company for the purposes of company law and who served during the year and up to the date of this report are set out on page 3. The National Museum of the Royal Navy is the sole corporate member of the charitable company.
The Trustees have due regard to guidance issued by the Charity Commission on public benefit and in its charitable objects, the charitable company seeks to promote the education of the general public about the history, deeds and traditions of the Naval Service and to encourage the public to commemorate, honour and preserve the memory of those members of the Naval Service who have died on active service.
This report demonstrates how the system of governance and internal control is maintained within the HMS Victory Preservation Company and how the major risks to which the charitable company is exposed, as identified by Trustees, have been reviewed and systems have been established to mitigate those risks. The Governance Framework HMSS Victory Preservation Company is a company limited by guarantee (company number: 07935358) anda charity registered with the Charity Commission (registration number: 1146376). It is governed by its Articles of Association dated February 2012, which incorporates its charitable objects, the powers of the company and provides for the appointment and reappointment of Directors. Trustees are appointed in accordance with the Charity Commission’s guidance ‘Finding new trustees: what charities need to know’ and appointments are guided by the principles of the Cabinet Office guidelines ‘Governance Code on Public Appointments’. The Trustees ensure the distinct legal responsibilities and charitable objectives of the company are fulfilled within an overall policy and strategy framework. The day-to-day operation of the charitable company within that framework is delegated to the Chief Executive Officer and Accounting Officer and to the Executive Directors of the National Museum of the Royal Navy. A formal induction process for Trustees is in place which combines all the necessary background reading material including items such as the Articles of Association, copies of minutes of recent meetings, a copy of the Charity Commission publication, “The Essential Trustee: what you need to know”, a copy of the National Museum’s strategy and corporate plan and a copy of the Museum Association publication, “Code of Ethics for Trustees”, the Conservation Maintenance Plan for the Ship, with a day visit to the National Museum to meet key members of staff and to discuss current issues. Recent appointees continue to confirm their satisfaction with this process.
The Board of Trustees meets periodically through the year to set the long-term strategic objectives of the charitable company, agree the priorities and review performance against previous objectives set. The Board undertakes a periodic review of its membership and skills set and new appointments are made on the basis of what skills Trustees believe the Board is lacking or believe are needed to tackle specific issues. In addition to the Board of Trustees, there are several subcommittees covering the key areas of operations. Relevant Board decisions are only taken after the appropriate subcommittee has met and discussed the issue and made their recommendations.
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
The subcommittees of the Board include:
Victory Investment Committee
This committee aims to meet at least two times a year and in addition, reviews the investment managers’
quarterly reports and valuations. The committee develops and recommends to the Board the investment
strategy and policy of the charitable company, having regard to capital and income requirements. Also, to
consider and recommend benchmarks for the measurement of investment performance and to monitor,
encourage and challenge the investment managers regarding the investments.
Victory Technical Committee
This committee meets as required, to periodically review NMRN Operation’s strategic plan that integrates the
Conservation Plan and the interpretation plan for the repair, refurbishment, and conservation of HMS Victory
so that she may be enjoyed by current and future beneficiaries. NMRN Operations constructs a detailed plan
of work, derived from the strategic plan, and the Victory Technical Committee oversees the construction and
implementation of the conservation management strategy and plan. The Victory Technical Committee is
required to have the necessary competences, independent technical advice and professional expertise in the
conservation of 18" Century wooden ships, and to establish a process that records and documents (with
photographic evidence) the entirety of the project to repair, refurbish and conserve HMS Victory.
Victory Audit, Risk and Assurance Committee
The committee meets as business requires to consider extraordinary items or items specific to the charitable
company. Members are invited to observe the National Museum’s Audit and Governance Committee, which is
responsible for the effectiveness of audit controls across the National Museum group. The Victory Audit, Risk
and Assurance Committee liaises with the National Museum’s Audit and Governance Committee to confirm
audit compliance with statutory and regulatory requirements. It also reviews the risks on a periodic basis to
provide assurance that the system of internal control with regard to these risks is appropriately established
and maintained by the National Museum.
Victory Appointment and Nomination Committee
The committee meets as required to provide assurance and advise on the process for making appointments to
the HMS Victory Preservation Company Board and its constituent committees. It advises on an annual training
calendar for the trustees and reviews the skills and experience of trustees to ensure the composition of the
committees are adequate and robust.
Victory Communication and Engagement Committee
The committee meets as required and to support NMRN Operation’s strategic plan for the communication and
engagement of HMS Victory so that she may be enjoyed by current and future beneficiaries on site, off site and
digitally, ensuring that the plan of activity compliments the conservation plan.
Register of interests
A register of Trustees’ and Executives’ interests is maintained, requiring declaration of any interest, pecuniary
or otherwise, in any matter being considered by the Board.
Personal data loss
The charitable company has not identified any personal data related incidents during 2023-24. An incident is
defined as a loss, unauthorised disclosure or insecure disposal. Protected personal data is information which
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
links an identifiable living person with information about them which, if released would put the individual at
significant risk of harm or distress; the definition includes sources of information that because of the nature of
the individuals or the nature, sources or extent of the information, is treated as protected personal data by the
charitable company.
System of internal control
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk
of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute
assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify
and prioritise the risks to the achievement of the charitable company’s policies, aims and objectives, to
evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage
them efficiently, effectively and economically.
The review of the effectiveness of the system of internal control is exercised through the National Museum’s
Audit and Governance Committee. This committee is chaired by a Trustee of the National Museum’s Board of
Trustees and draws expertise from other Trustees and committee members, with the executive in attendance
as required. The committee also has access to the independent accountants and external and internal auditors
engaged for all companies within the Group, providing review and oversight of the financial control systems
and the creation of company and consolidated group accounts.
Risk Management
The charitable company’s risk register and the responses to risk are managed by the Chief Executive Officer
and overseen by the National Museum’s Audit and Governance Committee as well as the charitable
company’s Board. In addition, the charitable company has a system of internal review and checks which link
to plans and risks.
The principal risks to the delivery of the charitable company’s objectives focus around decisions made by
NMRN Operations in the understanding and conservation of the Ship and the impact of those decisions on the
Ship’s long-term future. To mitigate this risk, the Board has established a Technical Committee whose remit is
to provide due diligence over NMRN Operation’s strategic plan for the repair, refurbishment and conservation
of HMS Victory providing best international practice, technical advice and professional expertise in the
conservation of 18" Century wooden ships.
A further risk centres around returns from the investment funds required to maintain and operate the Ship to
meet the charitable objects. The key risk to the achievement of the investment objective is inflation and the
Trustees will address this by predominantly investing in equities, where dividends can be expected to grow,
although capital value will fluctuate.
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358
Statement of Trustees’ and Accounting Officer’s responsibilities for the year ended 31 March 2024
The Board of Trustees (who are also directors of HMS Victory Preservation Company for the purposes of company law) and the Accounting Officer are responsible for preparing the Trustees’ Annual Report (including the Strategic 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:
e select suitable accounting policies and then apply them consistently; e observe the method and principles of the Charities SORP 2019 (FRS 102); e make judgements and estimates that are reasonable and prudent; e state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and e prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
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 which 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.
_
Vice Admiral Sir Charles Montgomery On Behalf of the Board of Trustees Date:13'" November 2024
Matthew Sheldon Chief Executive and Accounting Officer Date: 13" November 2024
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
Independent Auditor’s report to the Trustees of The HMS Victory Preservation Company
Opinion
We have audited the financial statements of The HMS Victory Preservation Company (the ‘charitable
company’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance
Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant
accounting policies. The financial reporting framework that has been applied in their preparation is applicable
law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable
in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
e give a true and fair view of the state of the charitable company’s affairs as at 31 March 2024 and of its
incoming resources and application of resources, including its income and expenditure, for the year then
ended;
e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
e have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the
audit of the financial statements section of our report. We are independent of the charitable company in
accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,
including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to
continue as a going concern for a period of at least twelve months from when the financial statements are
authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the
relevant sections of this report.
Other information
The other information comprises the information included in the trustees’ annual report, other than the
financial statements and our auditor’s report thereon. The trustees are responsible for the other information
contained within the trustees’ annual report. Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our report, we do not express any form of
assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such
material inconsistencies or apparent material misstatements, we are required to determine whether this gives
rise to a material misstatement in the financial statements themselves. If, based on the work we have
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
e the information given in the trustees’ report, which includes the directors’ report prepared for the
purposes of company law, for the financial year for which the financial statements are prepared is
consistent with the financial statements; and
e the directors’ report included within the trustees’ report have been prepared in accordance with
applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in
the course of the audit, we have not identified material misstatements in the strategic report or the directors’
report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
e adequate accounting records have not been kept, or returns adequate for our audit have not been
received from branches not visited by us; or
e the financial statements are not in agreement with the accounting records and returns; or
e certain disclosures of trustees’ remuneration specified by law are not made;
e we have not received all the information and explanations we require for our audit; or
e the Trustees were not entitled to prepare the financial statements in accordance with the small
companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’
report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of
the charitable company for the purposes of company law) are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the
trustees determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of
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15 November 2024
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358 Balance sheet as at 31 March 2024
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2024 2023
Notes £ £ £ £
Fixed assets
Tangible assets 8 6,828,304 6,831,271
Heritage assets 9 19,375,000 19,375,000
Investments 10 44,348,371 41,805,454
Total fixed assets 70,551,675 68,011,725
Current assets
Debtors 11 1,232 23,887
Cash at bank and in hand 491,900 435,396
Total current assets 493,132 459,283
Creditors: amounts falling
due within one year 12 (41,340) (973,777)
Net current assets 451,792 (514,494)
Net assets 71,003,467 67,497,231
Funds
Unrestricted funds 523,171 (419,860)
HMS Victory Preservation Trust:
HMS Victory Preservation Trust funds 26,098,809 26,109,260
Revaluation reserve 60,075 52,591
Total HMS Victory Preservation Trust funds 14 26,158,884 26,161,851
Endowment funds 15 44,321,412 41,755,240
Total funds 71,003,467 67,497,231
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the
small companies’ regime.
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The financial statements were approved by the board and signed on its behalf by:
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——eeee
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Vice Admiral Sir Charles Montgomery Director, on behalf of the Board of Trustees
Date: 13'" November 2024
The notes on pages 22 to 31 form an integral part of these financial statements.
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358
Cash flow statement for the year ended 31 March 2024
Cash flows from operating activities: Net cash used in operating activities
Cash flows from investing activities Dividend and interest income Purchase of investments Disposal of investments Adjustment for non-cash fees deducted from gains/losses
Cash used in investing activities
Increase/(Decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Net (expenditure)/income for the reporting period (as per the statement of financial activities) Depreciation and loss on disposal of assets Losses/(Gains) on investments
Dividends and interest from investments Decrease/(Increase) in debtors (Decrease)/Increase in creditors
Net cash used in operating activities
Analysis of changes in net funds
Cash at bank and in hand Net funds
2024 2023 Notes £ £ (1,724,216) (220,159) 732,979 680,546 (591,016) (1,102,487) 1,485,482 - 153,275 193,255 1,780,720 (228,686) 17 56,504 (448,845) 435,396 884,241 491,900 435,396 3,498,752 (1,324,993) 10,451 9,916 (3,590,658) 1,690,445 (732,979) (680,546) 22,655 (18,585) (932,437) 103,604 (1,724,216) (220,159) Opening Cash Closing balance flows balance £ £ £ 435,396 56,504 491,900 435,396 56,504 491,900
The notes on pages 22 to 31 form an integral part of these financial statements.
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The HMS Victory Preservation Company
(A company limited by guarantee)
Company number: 07935358
Notes to the financial statements
for the year ended 31 March 2024
1. Accounting policies
1.1. Company information
The HMS Victory Preservation Company is a private company limited by guarantee and incorporated in England
and Wales. The registered office is the National Museum ofthe [Royal] [Navy,] HM [Naval] [Base] [PP66,] [Portsmouth,]
Hampshire, PO1 3NH. The company is the sole corporate trustee of the HMS Victory Preservation Trust. As a linked
charity the results of the Trust are shown within these accounts.
The HMS Victory Preservation Company meets the definition of a public benefit entity under section 34 of FRS 102.
Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the
relevant accounting policy.
The principal objectives of the company are detailed in the Trustees report.
1.2. Basis of preparation of financial statements
The financial statements have been prepared in accordance with Accounting and Reporting by Charities:
Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the
Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP FRS 102) issued in
October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS
102), the Charities Act 2011, and UK Generally Accepted Practice as it applies from 1 January 2019.
The role of the Company and Trust is to hold HMS Victory and its reserves, which it will grant to NMRN Operations
as and when required in accordance with the delivery of the charitable objects, for the preservation and operation
of the ship, until such a time as the reserves are expended or a nominal sum remains. The Trustees are content
that the going concern basis continues to apply to the Company and Trust.
The financial statements are presented in sterling which is the functional currency of the company. Monetary
amounts in these financial statements are rounded to the nearest £.
1.3. Fund accounting
Unrestricted funds are donations and other incoming resources received or generated for general purposes.
Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets this
criteria is identified to the fund, together with a fair allocation of overheads and support costs.
The financial statements include the HMS Victory Preservation Trust as a separately identifiable restricted fund.
The Trust is a special trust, charity number 1146376-1, which is a linked charity of the HMS Victory Preservation
Company. The Statement of Financial Activities and the Balance Sheet include the results and net assets of the
Trust on a line by line basis.
1.4. Endowment funds
Endowment funds are funds which the donors have stated are to be held as capital and could be expendable over
the long term. It is the intention that the capital value of the donation will be maintained although the company is
free to expend the donation from the Gosling Foundation if it wishes. The Heritage Lottery Fund Catalyst
Endowment donation is required to be retained for twenty-five years before it may be expended or an application
be made to expend it before the twenty-five year limit is reached.
1.5. Incoming resources
All incoming resources are included in the statement of financial activities when the company is entitled to the
income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to
particular categories of income:
Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of
financial activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific
performance by the company, are recognised when the company becomes unconditionally entitled to the grant.
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358 Notes to the financial statements for the year ended 31 March 2024
Gifts in kind are included in the accounts at their current market value where this is readily identifiable. Where current market value is unavailable then gifts in kind are included in the accounts on the basis of internal valuations estimated by relevant staff and determined by their experience and judgement, unless this is not possible without incurring a cost disproportionate to the benefit of the information reported to the readers of the accounts.
Income from investments is included in the year in which it is receivable.
Legacies are included when the company is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.
1.6. Grants receivable Revenue grants are credited to incoming resources on the earlier date of when they are received or when they are receivable. If a grant or donation is subject to conditions that require a level of performance before the company is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the company’s control and it is probable those conditions will be met in the accounting period.
1.7. Resources expended Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Charitable expenditure comprises those costs incurred by the company in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management. Governance costs include those costs incurred in the governance of the company and its assets and are primarily associated with constitutional and statutory requirements.
1.8. Tangible fixed assets and depreciation
Timber
In March 2012, along with the gift of HMS Victory, the HMS Victory Preservation Trust received approximately 527m? of teak, plus some smaller quantities of iroko and Brazilian mahogany, that had originally been procured by MoD for use in the conservation and maintenance of the Ship and that had been valued by Timbmet.
In 2016, 93 tonnes (~39m3) of unseasoned oak and elm were donated by four Scottish Estates for potential use towards the conservation of the Ship. The logs were surveyed over winter 2016-17 and sawn into rough-hewn planks. The timber is being stored and has been seasoned by a timber specialist (W L West) with the seasoning period completing in July 2021. The timber now needs to be converted into boards appropriate for use on the Ship.
The seasoned timber, that may be held as logs, bulks, knees or boards, and that will probably be used in the conservation ofthis Ship is capitalised at the deemed cost provided at the time the asset was received. The timber is not depreciated as it is deemed to have an indefinite life. An annual review for impairment is carried out in accordance with the Charities SORP, with any impairment recognised in the Statement of Financial Activities.
The unseasoned or green timber held and that requires further processing (logging, rough sawing and seasoning) before its suitability for use in the conservation project may be approved, is considered to have a modest market value, and the costs of obtaining a reliable valuation would not be commensurate with its value or with the benefit obtained by including the additional value on the balance sheet. This relates to the following donated timber:
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358
Notes to the financial statements for the year ended 31 March 2024 e = In 2022, 370 hoppus feet (~13m3) of unseasoned oak was donated by Portsmouth Water. This is presently at W L West’s yard awaiting conversion and seasoning. It is anticipated that the seasoning will take 4-5 years to complete (not before 2026).
e ~=Also in 2022, 3000 hoppus feet (~108m3) of unseasoned oak was donated by HS2. This timber is being stored at a yard in the Midlands awaiting conversion and seasoning. Again, it anticipated that the seasoning will take 4-5 years to complete (not before 2026).
~~Other Tangible fixed assets~~
Other tangible fixed assets with a cost or value greater than £2,500 and a useful life exceeding one year are capitalised at historic cost and revalued annually using Ministry of Defence derived indices.
Depreciation is provided at rates calculated to write off the cost or valuation less residual value of each asset over its expected useful life, as follows:
Fixtures, fittings and equipment - 3-25 years
1.9. Heritage assets The heritage assets are owned by the HMS Victory Preservation Trust and have been included in the financial statements as set out below:
Additions to the collection with a cost in excess of £2,500 are capitalised. In accordance with section 34 of FRS 102 these assets are not depreciated as they are deemed to have indefinite lives.
On 29 March 2012 the title to, and beneficial ownership of, the collection on board HMS Victory passed to the Trust. Information regarding cost or value ofthis collection is not readily available and the Trust considers that the cost of obtaining such valuation for the collection of assets held is significant, and is not commensurate with the benefit obtained by including the additional capitalised value in the financial statements. Significant Historic Ships
Accounting policy for initial recognition of the Heritage Asset The methodology of valuation of significant historic ships by the National Museum group is total rebuild basis, discounted for the Ship’s current state of repair. An annual review for impairment is carried out in accordance with the Charities SORP, with any impairment recognised in the Statement of Financial Activities. The values are calculated by the staff of the National Museum. Where the current build cost or market value of a similar ship is known and can be relied upon, this is used as the basis for establishing the value of the Ship. Where this information is unavailable, the original build cost of each ship is grossed up to a modern-day value using a provider of historic economic data. This value is then discounted to take account of the ship’s current state of repair, using the estimated costs to bring the ship to the final condition (being in most cases something close to ‘as new’). For ships which are gifted to the National Museum, the discounted value becomes the ‘deemed cost’ of the ship.
The Ship, HMS Victory, was floated out of the Old Single Dock in Chatham's Royal Dockyard in 1765. In 1805 she achieved lasting fame as the flagship of Vice-Admiral Nelson in Britain's greatest naval victory, the defeat of the French and Spanish at the Battle of Trafalgar. She is the oldest commissioned warship in the world and remains a commissioned warship of the Royal Navy and the Flag Ship of the First Sea Lord. The Ship was gifted to the Trust on 29 March 2012 by the Ministry of Defence.
HMSS Victory has been included in the accounts at a value of £19,375,000 calculated on a total rebuild basis discounted to take account ofthe[Ship's][current][state][of][repair.][This][value][was][calculated][by][staff][of][ the][National] Museum by reference to the costs incurred by the Association Hermione-La Fayette in their construction of the replica frigate, Hermione, on a pro-rata basis on respective tonnage displacement of the two ships.
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.
Valuation,
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358
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Notes to the financial statements
for the year ended 31 March 2024
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- Investment income
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Unrestricted Endowment 2024 Unrestricted Endowment 2023
funds funds Total funds funds Total
£ £ £ £ £ £
Income from listed investments 141,964 591,015 732,979 446,138 234,408 680,546
3. Costs of charitable activities - by fund type
HMS Victory HMS Victory
Unrestricted Preservation 2024 Unrestricted Preservation 2023
funds Trust Total funds Trust Total
£ £ £ £ £ £
HMSS Victory Preservation 684,415 10,451 694,866 113,851 9,916 123,767
4. Costs of charitable activities - by activity
Activities | Governance
undertaken and support 2024 2023
directly costs Total Total
£ £ £ £
HMS Victory Preservation 2,095 27,771 29,866 26,688
Grant to NMRN Operations (Charity 1169061) 665,000 - 665,000 97,079
667,095 27,771 694,866 123,767
5. Analysis of governance and support costs
2024 2023
Total Total
£ £
Depreciation and impairment 10,451 9,916
Accountancy fees 2,400 2,430
Auditor remuneration 9,422 5,677
Trustee recruitment - 1,155
Trustee expenses 5,498 -
27,771 19,178
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-
Employees There were no employees directly employed by the charity in the period. No Trustees received remuneration during the period. Six Trustees were reimbursed for travel expenses totalling £2,104 (2023: Five Trustees were reimbursed for travel expenses totalling £934).
-
Taxation All of the company's income is applied for charitable purposes and therefore the company is exempt from Corporation Tax.
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358
Notes to the financial statements for the year ended 31 March 2024
- Fixed assets — Tangible assets
Fixtures, fittings and equipment Timber Total £ £ £ Cost or valuation At 1 April 2023 247,915 6,692,439 6,940,354 Revaluation 13,364 - 13,364 At 31 March 2024 261,279 6,692,439 6,953,718 Depreciation At 1 April 2023 109,083 - 109,083 Charge for the year 10,451 - 10,451 Revaluation 5,880 - 5,880 At 31 March 2024 125,414 - 125,414 Net book values At 31 March 2024 135,865 6,692,439 6,828,304 At 31 March 2023 138,832 6,692,439 6,831,271 Fixed assets — Heritage assets HMS Victory Total £ £ Valuation and Net book value At 1 April 2023 and 31 March 2024 19,375,000 19,375,000 At cost At valuation Total £ £ £ Carrying amount at 1 April 2023 and 31 March 2024 - 19,375,000 19,375,000 There were no additions made to the Collection in the year. There were no impairments during the year. Cost or valuation 2024 2023 2022 2021 2020 £ £ £ £ £ Additions Purchases - - - - - Donations - - - - - ~~Disposals~~ - - - - -
Cost or valuation At 1 April 2023 Revaluation
At 31 March 2024
Depreciation At 1 April 2023 Charge for the year Revaluation
At 31 March 2024
Net book values At 31 March 2024 At 31 March 2023
- Fixed assets — Heritage assets Valuation and Net book value At 1 April 2023 and 31 March 2024
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358 Notes to the financial statements for the year ended 31 March 2024
- Fixed assets — Investments
Listed investments Total £ £ 41,805,454 41,805,454 591,016 591,016 (1,485,482) (1,485,482) 3,590,658 (153,275) 3,437,383 3,437,383 44,348,371 44,348,371 managed by Cazenove Capital for the period was to generate at the year end is provided by 2024 2023 £ £ 1,853,883 797,682 1,446,215 1,189,375 3,694,081 3,314,395 4,165,621 5,369,431 74,714 952,351 11,234,514 11,623,234 1,269,778 1,791,342 1,315,376 1,389,775 27,516,781 23,267,196 3,011,922 3,733,907 33,113,857 30,182,220 44,348,371 41,805,454 2024 2023 £ £ 1,232 23,887
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Valuation
At 1 April 2023
Additions
Disposals
Gains and losses before management fees
Less management fees deducted
Net increase in investment market value
At 31 March 2024
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The HMS Victory Preservation Company holds two portfolios of investments, one managed by Cazenove Capital Management and the other by James Hambro and Partners. The investment objective for the period was to generate a total return of inflation plus 4% per annum over the long term. The market valuation at the year end is provided by the Investment Managers, the results of which are summarised as follows: 2024 2023 £ £ ~~UK~~ UK government and fixed interest securities 1,853,883 797,682 UK bonds 1,446,215 1,189,375 UK equities 3,694,081 3,314,395 Others 4,165,621 5,369,431 Capital account 74,714 952,351 11,234,514 11,623,234 ~~Overseas~~ Fixed interest 1,269,778 1,791,342 International bonds 1,315,376 1,389,775 International equities 27,516,781 23,267,196 Others 3,011,922 3,733,907 33,113,857 30,182,220 44,348,371 41,805,454 11. Debtors
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Accrued income
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358
Notes to the financial statements for the year ended 31 March 2024
- Creditors: amounts falling due within one year
Amounts owed to group companies Other creditors Accruals and deferred income
2024 2023 £ £ 140 819,029 - 106 41,200 154,642 41,340 973,777
- Analysis of net assets between funds
Fund balances at 31 March 2024 as represented by: Tangible fixed assets Heritage assets Investment assets Current assets Current liabilities
Unrealised gains included in tangible fixed assets
Fund balances at 31 March 2023 as represented by: Tangible fixed assets Heritage assets Investment assets Current assets Current liabilities
Unrealised gains included in tangible fixed assets
HMS Victory 2024 Unrestricted Preservation Endowment Total funds Trust funds funds £ £ £ £ 44,420 6,783,884 - 6,828,304 - 19,375,000 - 19,375,000 - - 44,348,371 44,348,371 493,132 - - 493,132 (14,381) - (26,959) (41,340) 523,171 26,158,884 44,321,412 71,003,467 - 60,075 - 60,075 HMS Victory 2023 Unrestricted Preservation Endowment Total funds Trust funds funds £ £ £ £ 44,420 6,786,851 - 6,831,271 - 19,375,000 - 19,375,000 - - 41,805,454 41,805,454 459,283 - - 459,283 (923,563) - (50,214) (973,777) (419,860) 26,161,851 41,755,240 67,497,231 - 52,591 - 52,591
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The HMS Victory Preservation Company (A company limited by guarantee) Company number: 07935358 Notes to the financial statements for the year ended 31 March 2024
- Restricted funds
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At At
1April Outgoing Gains and 31 March
2023 ~=sresources losses 2024
£ £ £ £
HMS Victory Preservation Trust 26,161,851 (10,451) 7,484 26,158,884
At At
1April Outgoing Gains and 31 March
2022 ~=resources losses 2023
£ £ £ £
HMS Victory Preservation Trust 26,155,903 (9,916) 15,864 26,161,851
Purposes of restricted funds
The HMS Victory Preservation Trust is a linked Charity (and Special Trust) of the the HMS Victory Preservation
Company and as such is shown as a separate restricted fund.
Endowment funds
At At
1 April Incoming Outgoing Gains and 31 March
2023 resources resources Transfers losses 2024
£ £ £ £ £ £
Endowment Fund 35,091,585 496,453 (109,216) (1,247,805) 3,016,153 37,247,170
Catalyst Endowment Fund 6,663,655 94,562 (20,803) (237,677) 574,505 7,074,242
41,755,240 591,015 (130,019) (1,485,482) 3,590,658 44,321,412
At At
1 April Incoming Outgoing Gains and 31 March
2022 resources resources Transfers losses 2023
£ £ £ £ £ £
Endowment Fund 35,748,427 196,903 (162,957) 729,186 (1,419,974) 35,091,585
Catalyst Endowment Fund 6,788,768 37,505 (31,040) 138,893 (270,471) 6,663,655
42,537,195 234,408 (193,997) 868,079 (1,690,445) 41,755,240
Transfers from unrestricted funds to endowment funds represent investment income reinvested during the period.
Transfers to unrestricted funds from endowment funds represent investment income disinvested during the
period.
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The HMS Victory Preservation Trust is a linked Charity (and Special Trust) of the the HMS Victory Preservation Company and as such is shown as a separate restricted fund. 15. Endowment funds
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The HMS Victory Preservation Company
(A company limited by guarantee) Company number: 07935358
Notes to the financial statements for the year ended 31 March 2024
- Ultimate parent undertaking The HMS Victory Preservation Company considers the National Museumofthe Royal Navy (“the National Museum”), a charitable company (charity number 1126283, company number 06699696), to be its ultimate parent undertaking.
Control is exercised by the National Museum being the corporate member of the HMS Victory Preservation Company.
Consolidated accounts can be obtained from the National Museum’s registered office: National Museum of the Royal Navy, HM Naval Base PP66, Portsmouth, Hampshire, PO1 3NH.
- Related party transactions
The company has taken advantage of the exemption under FRS 102 33.1A regarding disclosure of transactions with other National Museum group entities. There were no other related party transactions (2023: None).
- Revaluation reserve
2024 2023 £ £
At 1 April 2023 Movement in reserves
At 31 March 2024
52,591 36,727 7,484 15,864 60,075 52,591
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