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2024-03-31-accounts

Company number: 09644797 Charity Number: 01162666

Nekton Foundation

Report and financial statements For the 15-month period ended 31 March 2024

Nekton Foundation

Contents

For the 15-month period ended 31 March 2024

Reference and administrative information 1
1. Objectives & Activities 3
2. Activities and Accomplishments 2023-24: 6
2.1 Programmes 6
2.2 Initiatives 10
2.3 The Nekton Alliance 12
3. Beneficiaries of our services 13
4. Financial review 14
5. Principal risks and uncertainties 15
6. Plans for the future 16
7. Structure, governance and management 16
8. Auditors 19
Independent auditors' report 20
Statement of financial activities (incorporating an income and expenditure account) 24
Balance sheet 25
Statement of cash flows 26
Notes to the financial statements 27

Nekton Foundation

Reference and administrative information

For the 15-month period ended 31 March 2024

Company number 09644797
Charity number 01162666
Registered office and Begbroke Science Park
operational address Begbroke Hill
Woodstock Road
Begbroke
OX5 1PF
Country of England & Wales
registration
Country of The United Kingdom
incorporation
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:
Chair: Rupert Grey
Trustees: Juliet Burnett
Paul Jardine
Paul Crowther
Emily Penn
Professor Callum Roberts
Robert McCallum
Vanessa Rice
William Goodlad

Key management personnel Chief Executive: Oliver Steeds Head of Finance & Central Operations: Alex Murphy Principal Scientist: Dr. Lucy Woodall Bankers Royal Bank of Scotland 1[st] Floor, Houblon House 62-63 Threadneedle Street London EC2R 8HP Solicitors Skadden, Arps, Slate, Meagher & Flom (UK) LLP 40 Bank Street,

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Nekton Foundation

Reference and administrative information

For the 15-month period ended 31 March 2024

Canary Wharf, London, E14 5DS Blake Morgan LLP Seacourt Tower West Way Oxford, OX2 0FB Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditors 110 Golden Lane LONDON EC1Y 0TG

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Nekton Foundation

Trustees’ Annual Report

For the 15-month period ended 31 March 2024

The trustees present their report and the audited financial statements for the 15-month period from 1 January 2023 to 31 March 2024, to align annual reporting across the Foundation’s activities.

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 and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

1. Objectives and activities

1.1 Purpose & Strategy

Nekton Foundation is a not-for-profit charitable organisation dedicated to accelerating the scientific exploration and protection of the ocean. To help ensure the resilient and prosperous ocean needed to improve the lives and livelihoods of billions around the world, Nekton is focused on three connected goals:

  1. Applied Research: accelerating marine scientific research and exploration to inform conservation 2. Innovative communications: to inspire deeper connection and value of the ocean

  2. Knowledge Exchange: to harness the skills and resources to strengthen applied science and conservation.

Our charitable objects, as set out in our governing document, are to promote and advance education in the conservation, protection and improvement of the environment.

Nekton works with and on behalf of ocean nations who are committed to improving the prosperity, resilience and sustainable governance of their ocean.

Nekton’s operations are aligned to support the implementation of the UK Government’s Marine Policy, United Nation’s Sustainable Development Goals including 14 (Life Below Water), The Commonwealth Blue Charter, the UN Ocean Decade for Sustainable Development, Convention of Biological Diversity’s KunmingMontreal Biodiversity Framework and the recommendations of the Global Ocean Commission.

Activities & Strategy: Nekton are implementing a 2018-2026 strategy that combines i) Missions (large scale programmes, ii) Initiatives - innovative projects with targeted outcomes to address the needs of our ocean.

Working in Partnership : The charity works in partnership with an Alliance of leading organisations across marine science, ocean policy, business, communications and civil society to deliver our objectives.

Funding & Business Model : Funding is through an Alliance of partners, and philanthropic grants and donations. Operations are implemented with Nekton’s partners who share a common purpose to explore and protect the ocean.

Nekton’s Theory of Change: Nekton creates change in four key ways – that either are achieved together through our large-scale Programmes or are achieved in isolation through targeted Initiatives:

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Nekton Foundation

Trustees’ Annual Report

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1.2 Missions

Missions are large scale programmes developed and undertaken in close collaboration with our Alliance of government, business, science, philanthropic and civil society partners.

1.2.1 Ocean Census

The Ocean Census is a ground-breaking 10-year international scientific endeavour, co-founded with The Nippon Foundation. Endorsed by the UN Ocean Decade, it’s mission is to transform the discovery of ocean life. The Ocean Census builds on The Census of Marine Life and other programmes and aims to:

Launched in April 2023 by The Nippon Foundation and Nekton, the Ocean Census is an open Alliance of scientists from over 280 institutes and dozens of government, scientific, business, technology, civil society and philanthropic partners, working together to take on this global challenge. Our next milestone is the discovery of 100,000 new species. Our North Star is discovering far more of the 1-2 million marine species that are currently unknown to science.

The Ocean Census Limited is established as a wholly owned subsidiary of Nekton Foundation, registered in England and Wales, incorporated on 10 May 2023.

1.2.2 First Descent Indian Ocean 2018-2026

The Indian Ocean is the least scientifically researched and least protected ocean on Earth. Already home to nearly 2.7 billion people with an average age under 30, by 2050, ‘the Ocean of the Centre’ will be home to half of the world’s population.

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Nekton Foundation

Trustees’ Annual Report

For the 15-month period ended 31 March 2024

First Descent: Indian Ocean aims to galvanise the scientific exploration and conservation of the region through a series of marine research expeditions, MPA initiatives, knowledge exchange, and public engagement activities, working with and on behalf of Indian Ocean nations. Each Programme in the Indian Ocean combines national commitments to ocean protection, marine spatial planning, applied research to inform ocean policy, investments in knowledge exchange and inspirational communications to strengthen the public mandate for political action.

Projected impact: First Descent aims to achieve environmental, scientific, political and civil society impact through:

1.3 Nekton Initiatives

Initiatives are innovative projects undertaken in partnership with our Alliance, aimed at accelerating our understanding of the ocean, fostering protection efforts, and inspiring public engagement. The Initiatives are:

Inspiring the public

Field Research

Applied Science

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Nekton Foundation

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2. Activities and Accomplishments 2023-24

The highlights include:

2.1 Programmes

2.1.1 The Ocean Census

By the numbers:

Watch:

2.1.1.1 The Ocean Census Alliance

In its first year, the Ocean Census has attracted over 40 organisations to join the Alliance, and scientists from over 280 institutes are participating in the Science Network. The Alliance and Network's growth and coordination are supported by partner meetings, cross promotions, digital campaigns, monthly newsletters, and resource sharing. Partners and scientists actively engage in Ocean Census' core activities, such as expeditions and taxonomy. From Year 2 (April 2024 to March 2025), advisory committees and working groups will be established to deepen engagement and participation.

2.1.1.2 Hub & Core Programmes

The Ocean Census Hub has been established to coordinate Alliance activities and run core programs including expeditions, the Science Network, The Cyber-Biodiversity System and the Ocean Life Media Centre. All Ocean Census funded species discovery expeditions and taxonomy programmes are co-

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Nekton Foundation

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produced with governments, host nation scientists and institutes, with all discoveries and data owned by host nations. Read Equity Principles.

Expeditions

Five expeditions have been undertaken in Year 1 combining 25+ partners and over 200 scientists from over 45 different institutes. Ocean Census undertook 2 major flagship expeditions in Macaronesia (Canaries, Spain, Atlantic) and the Bounty Trough in New Zealand. The Schmidt Ocean Institute Chile expedition was the Alliance’s first Official Expedition and resulted in the discovery of over 100 new species (registered with Ocean Census).

Ocean Census has also been able to partner with the Ocean Exploration Trust on the Johnston Atoll Expedition (Pacific) and with the University of the Arctic, Tromso and REV Ocean on the Barents Sea Expedition and support the participation of taxonomist to support species discovery aspects of the voyages.

Taxonomy : Over 400 new species were discovered in Year 1 (taxonomy completed in Year 2), including fish, sponges, octocorals, stylasterids, barnacles, asteroids, echinoids, gastropods, black corals, polychaetes, ophiuroids, amphipods, mysids, and decapods notably:

Cyber Biodiversity System : The Cyber-Biodiversity System is a central Ocean Census component, enabling taxonomists to contribute species discovery data and providing equitable access for scientists and decision-makers. In Year 1, Ocean Census data partners, UNEP-WCMC, laid the system foundations, developing its architecture, policies, processes, and networks while identifying data user needs and critical policy drivers.

Ocean Life Media Centre : The Ocean Life Media Centre aims to inspire and raise public and policy interest, galvanising sustained action to protect ocean life. Working on behalf of the Alliance, the Centre coordinates storytelling, events, and public engagement while promoting extraordinary species discovery stories from partners. Key activities include:

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Nekton Foundation

Trustees’ Annual Report

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2.1.2 First Descent: Indian Ocean

2.1.2.1 Maldives

In October-November 2022, First Descent: Maldives conducted the first systematic survey from the surface to 1000m across the Maldives to establish a baseline for informing the creation of marine protected areas spanning over 20% of the nation’s EEZ. [For Partners see Nekton Alliance, Section 2.3]

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Nekton Foundation

Trustees’ Annual Report

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2.1.2.2 Seychelles

Following successful field research in 2019, the data analysis, publication, and applied research to inform marine spatial planning and management has been completed, while knowledge exchange initiatives have been increased to continue generating a lasting legacy from the Mission. [For Partners see Nekton Alliance Section 2.3]

2.1.2.3 South Africa & Comoros

We have continued to work with Wild Oceans and SAIAB to support deep reef research and conservation in South Africa and long-term research, management and biomonitoring in Comoros, including:

2.1.2.4 Western Indian Ocean (WIO) Deep Sea Science Course & MOOC

With the launch on track for 2024, course development has progressed well throughout 2023, including refining the course structure, developing lectures and teaching materials, establishing an expert network to deliver the course, accreditation development with the University of Seychelles, and initial course promotions. Partners: University of Seychelles, Minderoo Foundation, Western Indian Ocean Marine Science Association (WIOMSA)

2.1.2.5 Western Indian Ocean: Resilience & Prosperity Initiative (WIO-RPI)

Following review of the WIO’s regional needs, ongoing marine science, conservation, and governance strategies are now being implemented within other initiatives (Great Blue Wall, WIO Regional Ocean Governance Strategy). As a result, the RPI is no longer required. The responsibilities for implementing the objectives identified by the RPI have been handed over to the Great Blue Wall, with Nekton continuing to support in an advisory capacity. Partners: Government of Seychelles, UNEP Regional Seas Programme: Nairobi Convention

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Nekton Foundation

Trustees’ Annual Report

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2.2. Initiatives

2.2.1 Ocean Rising

Deeping cultural connection with the ocean . Partners: Schmidt Ocean Institute (SOI)

Our quest to create a movement that strengthens ocean connections through engaging with various individuals and organisations across different cultural sectors has begun in 2023. We initiated two pilot projects in the fashion sector and are building a pipeline to expand into arts and sports in 2024:

2.2.2 Ocean storytelling & education

Innovating and inspiring public engagement with the ocean through events, TV, social media and educational programming:

2.2.3 Earthshot Prize

Nekton is an Official Nominator of the Earthshot Prize, and we are delighted that our nominee in 2023, the brilliant organisation ABALOBI was chosen as a finalist.

ABALOBI is working to build more resilient and sustainable small-scale fishing communities globally, through the application of data and technology for good. Their ‘Fish With A Story‘ is an online, market-place platform connecting fishers directly with their customers and markets. The platform empowers fully traceable, premium quality, local seafood harvested and produced responsibly by small-scale fisherfolk using low-impact fishing methods. The platform ensures the fishers and their communities earn more whilst the data they gather empowers them to track their catches and sustainably manage their ocean. https://abalobi.org

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Nekton Foundation

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2.2.4 Yachts for Science

Partners: EYOS, BOAT, Ocean Family Foundation (OFF), 10% for the Ocean. Yachts for Science continues to connect private vessels with scientists to provide critical sea-time for supporting important research and conservation activities, including:

2.2.5 Extreme E

Marine science partners for the global electric SUV race

Nekton has deepened our marine science partnership with Extreme E - electric racing to some of the most remote corners of the planet - to highlight the climate change challenges faced by different ecosystems. Nekton Principal Scientist, Professor Lucy Woodall, has continued to lead Nekton’s marine science and conservation impact partnership with Extreme-E, focusing on the Hydro Race (in Scotland) and Island race (Sardinia) and legacy initiatives at all race sites.

2.2.6 Ocean Plastic

Led by Nekton Principal Scientist, Professor Lucy Woodall, we have provided expert scientific guidance to support delegations with negotiations for the Global Plastics Treaty. Read : Plastic Treaty Text Must Center Ecosystems, Science

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2.2.7 Democratising marine science

Nekton continues to combat the prevailing trends of ‘parachute science’ to increase equity of opportunity. Our activities include:

2.3. The Nekton Alliance

Nekton’s work in 2023-24 has been made possible through the generosity and support, financially and inkind, of our Alliance partners and philanthropic supporters along with the efforts and dedication of our staff and advisors. We would like to take this opportunity to thank everyone who has supported our work throughout the year:

Founding Partners of Nekton: AXA, Garfield Weston Foundation, Kensington Tours (Navigatr).

Ocean Census Founder: The Nippon Foundation

First Descent Mission Partners: Omega, Kensington Tours

Strategic Partners: The Commonwealth; Teledyne Marine, Sonardyne Associated Press, Helly Hansen, University of Exeter.

Collaborating Partners: Paralenz, Bowtech (Subsea Camera & Light Partners); Triton Submarines; Priavo Security (Maritime Security); AXA-XL & Encounter EDU (Education); Institute of Marine Engineering, Science & Technology – IMarEST; EYOS (Expedition Logistics); Great Campaign, UK Government’s Foreign, Commonwealth & Development Office); Blue Nature Alliance; Arksen Foundation, BOAT International, Ocean Family Foundation (Yachts for Science); Formula-E (Extreme-E); Wild Oceans, SAIAB, University of Seychelles, WIOMSA, WIOGEN.

Maldives Partners: Government Ministries (Fisheries, Environment, Tourism), Marine Research Institute, The Maldives National University; IPNLF, Maldives Whale Shark Research Programme, Manta Trust, Coral Research Institute, I.D.E.A.S.

Seychelles Partners: Government: Ministries of 1) Environment, Energy and Climate Change, 2) Education, 3) Blue Economy and 4) Tourism. National Institute for Science, Technology and Innovation (NISTI); NGOs : University of Seychelles (UniSey), Island Conservation Society (ICS), Seychelles Island Foundation (SIF), Marine Conservation Society Seychelles (MCCS), The Nature Conservancy (TNC), SeyCATT, Parastatal: Seychelles Fishing Authority, Seychelles Broadcasting Corporation.

Ocean Census Partners

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Nekton Foundation

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Marine Species, The Nippon Foundation-GEBCO Seabed 2030 Project, UNEP-WCMC (International)

3. Beneficiaries of our services

The trustees confirm that they have given due regard to the Charity Commission guidance on public benefit when reviewing the charity’s aims and objectives, planning future strategy and setting policy. The work of the charity plays a key part in understanding and combating the threats to our oceans and provides a radical alternative to traditional, government-led approaches.

Nekton is committed to achieving sustainable ocean governance, through scientific exploration, communications and education, capacity development and policy change.

Our activities benefit marine scientists, with whom we collaborate to exchange knowledge and develop multi-disciplinary practices; and whose work we fund, promote and expedite. Our work benefits educators and the general public, through the production and distribution of engaging educational materials and short films. Our work benefits government and non-governmental policy-makers, tasked with sustainably managing ocean health and resources. Our work benefits schools, educators, the media and general public, providing content and resources to inspire greater awareness and deepen understanding of the importance of the ocean.

Ultimately, we all depend on a healthy and sustainably-managed ocean. The ocean supports millions of livelihoods via fisheries and tourism, regulates climate and plays a major role in carbon capture and storage. This report sets out our activities and achievements to date and illustrates how these benefit our oceans and society.

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Nekton Foundation

Trustees’ Annual Report

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4. Financial review

The combined results of Nekton Foundation and its two wholly owned trading subsidiaries Nekton Enterprises Limited and Ocean Census Limited are consolidated.

In the fifteen months of operation, Nekton secured incoming resources of £7,385k which, after expenditure of £4,138k and other recognised losses relating to foreign exchange of £77k, resulted in a surplus of £3,170k. Cash income generated related mainly to grant funding from The Nippon Foundation for the Ocean Census Programme, the Ocean Census Launch and from Kensington Tours for the next part of the First Descent series of missions in the Indian Ocean, and philanthropic donations.

Of the total expenditure of £4,138k for the year, £2,134k related to the development and execution of the Ocean Census expeditions, £850k was incurred on Nekton’s science programmes and £895k on Nekton’s Communications and Education programme both of which include Ocean Census activities. The remaining expenditure was incurred on fundraising and overall management of the organisation.

Efforts continue towards seeking new funding to undertake further innovation projects in support of sustainable ocean governance.

Charity’s Reserves

The charity held total funds at 31 December 2024 of £4,502k. £4,065k is restricted and £437k unrestricted. Of the restricted funds £3,622k is restricted to the Ocean Census programme, £413k restricted to First Descent Indian Ocean missions and initiatives, and the remaining £30k restricted funds comprises the remaining work on Deep Reefs and MPAs, Octopus, and Antarctic Microplastics projects.

Nekton recognises the building of unrestricted reserves as an important measure for financial resilience, to allow for a variety of unexpected events such as: potential drops in expected income, to meet the demands of new projects and opportunities, to meet unforeseen operational requirements or to support short term cash flow requirements.

An amount of £203k held in unrestricted reserves to cover three months of core operating costs would provide financial resilience for the charity to respond to unexpected events. The charity also regularly reviews its assessment of closure costs, which include redundancy costs and other closure commitments, and this is currently forecast at £62k. A total of £265k of unrestricted reserves therefore is the target requirement for unforeseen events and closure costs for the coming year. This is covered by the unrestricted reserves of £437k held at 31 March 2024.

As at 31 March 2024 no specific reserves were designated.

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Nekton Foundation

Trustees’ Annual Report

For the 15-month period ended 31 March 2024

5. Principal risks and uncertainties

The management team reviews risk regularly and produces a detailed risk register with mitigating actions together with a comprehensive crisis management plan for field operations.

Following Nekton’s comprehensive and effective operational and financial management through the pandemic from 2020 to 2022, the risks to Nekton’s financial surety have been significantly reduced in 2023 and to March 2024, and coupled with growth, resulted with establishing larger unrestricted reserves. The long-term funding for Nekton’s new large-scale Programme that began in 2023 (Ocean Census) provides further surety and a strong foundation on which the organisation can further strengthen.

With the awareness and impact of the climate and biodiversity crises growing globally and the devastating impacts on people and the planet, the need for organisations like Nekton, continues to grow. Our ability to take on complex challenges, such as accelerating the discovery of ocean life with innovation and impact (Ocean Census), reinforced by the successful launch and operationalisation of this global initiative, demonstrates the organisation’s growing reputation and impact which provides confidence in Nekton’s growing recognition and influence and thereby serve to mitigate against some future uncertainties.

Looking ahead to 2025, with the running of two large programmes – First Descent and Ocean Census – along with a series of Initiatives, Nekton will grow substantially, and the risks and uncertainties of growth will need to be continually managed. Successful recruitment of a growing team in 2023 to 2024 has seen Nekton begin to successfully mitigate a key aspect of these risks.

Complex marine operations, involving people in the depths of the ocean, remains one of Nekton’s principal risks, which, through undertaking more expeditions and potentially in more complex geographies, will increase in 2024 and beyond. The recruitment of a dedicated expedition team that draws on the existing team’s success has been important. The existing partnerships with leading subsea technology businesses, our industry-leading standards for safe and productive operations, our world-leading expertise on the Nekton Board and Expedition Committee, all provide strong foundations for the team to continue to execute safe and productive expeditions.

There are sufficient funds to complete all current activities, invest in business development, undertake the next major strategic phase with Ocean Census and maintain strong reserves.

Diversifying income remains an important area of development to extend operational and financial surety for the organisation. The development of First Descent: Indian Ocean to partner with the Government of India and co-fund the programme from 2024 will be important. The UK Government’s support of this programme will also be beneficial.

With existing Programmes and Initiatives, Nekton maintains a sustained emphasis and efforts on partnership development; the production of regular income and expenditure and cash flow forecasts and scenario planning; ensuring an efficient cost base; and active ongoing management of expectations of partners, providing them with regular updates on our progress on deliverables and fundraising success.

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Nekton Foundation

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Nekton holds all relevant legal agreements with service providers (suppliers) and partners, and insurance policies which cover all pertinent areas of risk including: rules of engagement with Nekton; intellectual property rights; ship and submersible charter; specific risk relating to expedition operations; theft, damage and loss of equipment, assets and cash; professional indemnity; personal injury and death; employers’ liability; public liability; and Management and Trustees’ liability.

The trustees believe the charity remains a going concern and strengthened by recent funding commitments received.

6. Plans for the future

Programmes

First Descent: Indian Ocean

Ocean Census

Initiatives

7. Structure, governance and management

The organisation is a charitable company, limited by guarantee, registered with the Charity Commission on 14 July 2015 and incorporated on 17 June 2015. The charity is constituted under its Memorandum and

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Articles of Association dated 17 June 2015 which established the objects and powers of the charitable company and is governed under its articles of association.

The directors, who are also the trustees of the charity, are recruited by direct interest in the charity. Trustee induction has taken place with reference to the guidance published by the Charity Commission.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in Note 8 to the accounts.

Day-to-day management of the charity is delegated to the senior management team. Our approach to remuneration is to ensure Nekton can attract and retain a talented and motivated team to achieve our mission and deliver our strategic goals, whilst taking into account pay scales of similar and partner organisations and charity sector pay surveys.

7.1 Key management personnel for 2023-24

Chief Executive: Oliver Steeds Finance & Operations Controller: Alex Murphy Principal Scientist: Associate Professor Lucy Woodall Head of Communications Kira Coley Head of Expeditions Joe Sharman

7.2 Appointment of trustees

The charity is required to have at least three Trustees and a maximum of ten Trustees.

Additional trustees are co-opted by the board and management team to ensure the best mix of skills and experience attuned to the needs of the charity. Upon election new trustees meet the chair and chief executive and attend an induction meeting which includes a presentation on the organisation; the opportunity to meet key staff and a question-and-answer session. New trustees are also provided with the charity’s business plan, financial statements, and any other documents requested. Trustees collectively identify any governance training needs and who best to undertake the training identified. Nekton Foundation does not engage in public fundraising. Nekton Foundation nevertheless observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations and codes and Nekton Foundation received no complaints relating to its fundraising practice.

7.3 Related parties and relationships with other organisations

Nekton Foundation has two wholly owned subsidiaries, Nekton Enterprises Limited (NEL) and Ocean Census Limited (OCL). NEL was incorporated on 25[th] April 2016 and has been established to undertake commercial activities such as sponsorship which generate income for the benefit of Nekton Foundation. OCL was incorporated on 10 May 2023 and has been established to undertake the Ocean Census programme.

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Nekton works closely with Encounter EDU to develop, produce and disseminate its Submarine STEM educational programme. Encounter EDU creates educational outreach programmes which bring expedition science and exploration into classrooms through collaborations between explorers, scientists, teachers and pupils. Nekton’s Chief Executive Oliver Steeds co-founded Digital Explorer (renamed in 2019 as Encounter EDU). He is not involved in the day-to-day running of the organisation and has never received remuneration from it.

7.4 Statement of responsibilities of the trustees

The trustees (who are also directors of Nekton Foundation 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 or group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper 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 group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

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.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees on 31 March 2024 was 10 (31 December

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2022: 10). The trustees are members of the charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

8. Auditors

Sayer Vincent LLP were appointed as the charitable company's auditor during the year and have expressed their willingness to continue in that capacity.

The trustees’ annual report has been approved by the trustees on 12 December 2024 and signed on their behalf by

Rupert Grey Chair

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Independent auditors’ report

To the members of

Nekton Foundation

Opinion

We have audited the financial statements of Nekton Foundation (the ‘parent company’) and its subsidiaries (the ‘group’) for the period ended 31 March 2024 which comprise the consolidated statement of income and retained earnings, the group and parent company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including 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).

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 group 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 Nekton Foundation'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 directors are responsible for the other information contained within the 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

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Independent auditors’ report

To the members of

Nekton Foundation

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 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ annual 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:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the directors 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 directors are responsible for assessing the group’s and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern

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Nekton Foundation

and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent 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 irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

22

Independent auditors’ report

To the members of

Nekton Foundation

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Orchard (Senior statutory auditor) 17 December 2024

for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG

23

Nekton Foundation

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the 15 months ended 31 March 2024

----- Start of picture text -----
2024 2022
Unrestricted Restricted Total Unrestricted Restricted Total
Note £ £ £ £ £ £
Income from:
Donations and legacies 2 37,664 - 37,664 104,174 - 104,174
Charitable activities
Missions 3 - 7,315,866 7,315,866 - 2,923,394 2,923,394
Other trading activities 4 31,250 - 31,250 179,167 - 179,167
Total income 68,914 7,315,866 7,384,780 283,341 2,923,394 3,206,735
Expenditure on:
Raising funds 5 2,078 - 2,078 901 - 901
Charitable activities
Missions 5 100,879 2,111,617 2,212,496 17,223 2,370,997 2,388,220
Science and Research 5 80,160 890,317 970,477 135,309 369,966 505,275
Communication and Education 5 58,829 893,756 952,585 90,173 328,736 418,909
Total expenditure 241,946 3,895,690 4,137,636 243,606 3,069,699 3,313,305
Net income / (expenditure) for the year (173,032) 3,420,176 3,247,144 39,735 (146,305) (106,570)
Other recognised (losses) / gains: foreign
exchange (9,540) (68,066) (77,606) 51,857 - 51,857
Tax on profits on ordinary activities (1,150) - (1,150) - - -
Net income / (expenditure) before other
recognised gains and losses (183,722) 3,352,110 3,168,388 91,592 (146,305) (54,713)
Net movement in funds (183,722) 3,352,110 3,168,388 91,592 (146,305) (54,713)
Reconciliation of funds: 17b
Total funds brought forward 619,592 712,511 1,332,103 528,000 858,816 1,386,816
Total funds carried forward 435,870 4,064,621 4,500,491 619,592 712,511 1,332,103
----- End of picture text -----

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 19a to the financial statements.

24

Nekton Foundation

Company no. 9644797

Balance sheets

As at 31 March 2024

----- Start of picture text -----
The group The charity
2024 2022 2024 2022
Note £ £ £ £
Fixed assets:
Tangible assets 11 285,846 90,265 264,023 90,265
285,846 90,265 264,023 90,265
Current assets:
Debtors 13 47,429 10,879 508,282 236,178
Cash at bank and in hand 4,758,547 1,513,140 4,319,679 1,273,398
4,805,976 1,524,019 4,827,961 1,509,576
Liabilities:
Creditors: amounts falling due within one year 14 (591,331) (282,181) (656,836) (396,770)
Net current assets / (liabilities) 4,214,645 1,241,838 4,171,125 1,112,806
Total net assets / (liabilities) 4,500,491 1,332,103 4,435,148 1,203,071
Funds: 17a
Restricted income funds 4,064,621 712,511 4,055,081 712,511
Unrestricted income funds:
General funds 435,870 619,592 380,067 490,560
Total unrestricted funds 435,870 619,592 380,067 490,560
Total funds 4,500,491 1,332,103 4,435,148 1,203,071
----- End of picture text -----

Approved by the trustees on 12 December 2024 and signed on their behalf by

Rupert Grey Chair

25

Nekton Foundation

Consolidated statement of cash flows

For the 15 months ended 31 March 2024

----- Start of picture text -----
Note 2024 2022
£ £ £ £
Cash flows from operating activities 19
Net cash provided by / (used in) operating activities 3,546,286 40,731
Cash flows from investing activities:
Purchase of fixed assets (222,123) (13,968)
Net cash provided by / (used in) investing activities (222,123) (13,968)
Change in cash and cash equivalents
in the year 3,324,163 26,763
Cash and cash equivalents at the beginning of the
year 1,513,140 1,434,520
Change in cash and cash equivalents
due to exchage rate movements (77,606) 51,857
-
corporation tax liability (1,150)
Cash and cash equivalents at the end 20
of the year 4,758,547 1,513,140
----- End of picture text -----

26

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

a) Statutory information

Nekton Foundation is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address (and principal place of business is Begbroke Science Park, Begbroke Hill, Woodstock Road, Begbroke, OX5 1PF.

b) 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.

c) Consolidation

These financial statements consolidate the results of the charitable company and its two wholly-owned subsidiaries - Nekton Enterprise Limited and Ocean Census Limited - on a line by line basis. Transactions and balances between the charitable company and its subsidiaries have been eliminated from the consolidated financial statements. Balances between the three companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

d) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

e) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability 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.

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. They are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the financial statements are detailed above.

27

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

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

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity 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.

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

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.

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

l) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

28

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

1 Accounting policies (continued)

m) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Support and governance costs are re-allocated to each of the activities based on time attributable to each activity

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.

n) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

o) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. 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.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

29

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

Investments in subsidiaries are at cost.

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

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

Cash at bank and cash 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.

30

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

Prior Year
3
Total income from charitable activities
Yachts for Science
Ocean Census Year 1
Ocean Census Year 2
Ocean Census Launch
India Deep Reef Expedition: Feasibility
eDNA Seahorses
First Descent: Indian Ocean
Ocean Census Year 1
eDNA Seahorses
First Descent: Indian Ocean
Prior Year
Income from charitable activities
Donations
Deep Sea & Ocean Science MOOC
Total income from charitable activities
Donations
Yachts for Science		 Unrestricted
£
37,664
37,664
Unrestricted
£
104,174
104,174
Unrestricted
£
-
-
-
-
-
-
Unrestricted
£
-
-
-
-
-		 Restricted
£
-
-
Restricted
£
-
-
Restricted
£
3,817,648
3,167,655
150,314
132,252
24,865
11,000
7,132
5,000
7,315,866
Restricted
£
2,774,033
138,361
6,000
5,000
2,923,394		 2024
Total
£
37,664
37,664
2022
Total
£
104,174
104,174
2024
Total
£
3,817,648
3,167,655
150,314
132,252
24,865
11,000
7,132
5,000
7,315,866
2022
Total
£
2,774,033
138,361
6,000
5,000
2,923,394		 2022
Total
£
104,174
104,174
2022
Total
£
138,361
-
-
2,774,033
-
6,000
-
5,000
2,923,394

31

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

4
Other
Other
Prior Year
Income from other trading activities		 Unrestricted
£
31,250
31,250
Unrestricted
£
179,167
179,167		 Restricted
£
-
-
Restricted
£
-
-		 2024
Total
£
31,250
31,250
2022
Total
£
179,167
179,167		 2022
Total
£
179,167
179,167

32

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

5a Analysis of expenditure

Staff costs (Note 7)
Consultant & staff related costs
Mission control / operations
Equipment and consumables
Fundraising
Science costs
Travel and subsistence
Professional services
Insurance
Telephone, IT and office costs
Membership and subscriptions
Bank charges
Depreciation
Support costs
Governance costs
Total expenditure 2024
Total expenditure 2022		 Raising funds
£
-
578
-
-
401
-
620
-
-
479
-
-
-
2,078
-
-
2,078
901		 Missions
£
241,039
166,086
1,385,040
69,972
65
169
198,926
48,145
22,615
983
1,220
90
-
2,134,350
78,146
-
2,212,496
2,388,220		 Science and
Research
Communications
and Education
£
£
368,381
174,591
376,208
405,958
35,369
134,890
35,564
5,983
852
70,062
2,721
101
9,808
39,903
18,525
27,786
-
-
1,128
28,761
1,267
7,315
59
80
-
-
849,882
895,430
120,595
57,155
-
-
970,477
952,585
505,275
418,909
Charitable activities		 Governance
costs
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Support
costs
£
111,423
3,035
9,817
1,944
821
-
6,699
67,401
8,661
14,473
4,204
876
26,542
255,896
(255,896)
-
-
-		 2024
Total
£
895,434
951,865
1,565,116
113,463
72,201
2,991
255,956
161,857
31,276
45,824
14,006
1,105
26,542
4,137,636
-
-
4,137,636
3,313,305		 2022
Total
£
447,468
251,596
2,113,896
284,800
20,841
2,690
74,050
46,615
35,019
12,121
4,774
1,872
17,563
3,313,305
3,313,305

Of the total expenditure £258,768 was unrestricted (2022: £243,606) and £3,895,689 was restricted (2022: £3,069,699).

33

Nekton Foundation

Notes to the financial statements For

the year ended 31 December 2024

5b Analysis of expenditure (Prior Year)

Staff costs (Note 7)
Consultant & Staff Related Costs
Mission control / operations
Equipment and Consumables
Science Grants
Fundraising
Science costs
Travel and subsistence
Professional Services
Insurance
Telephone, IT and Office Costs
Membership and subscriptions
Bank charges
Depreciation
Support costs
Governance costs
Total expenditure 2022		 Raising funds
£
-
525
-
-
-
-
-
195
-
-
181
-
-
-
901
-
-
901		 Missions
Science and
Research
Commnications
and Education
£
£
£
53,688
253,452
105,472
60,854
97,528
92,689
1,943,645
47,689
116,344
268,160
5,002
11,458
-
-
-
114
2,110
18,013
-
2,690
-
20,731
16,489
36,910
4,531
-
-
14,316
263
514
4,982
710
2,768
502
515
1,938
-
-
1
-
-
-
2,371,523
426,448
386,107
16,697
78,827
32,802
-
-
-
Charitable activities
2,388,220
505,275
418,909		 Governance
costs
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Support
costs
£
34,856
-
6,218
180
-
604
-
(275)
42,084
19,926
3,480
1,819
1,871
17,563
128,326
(128,326)
-
-		 2022
Total
£
447,468
251,596
2,113,896
284,800
-
20,841
2,690
74,050
46,615
35,019
12,121
4,774
1,872
17,563
3,313,305
-
-
3,313,305

Of the total expenditure, £243,606 was unrestricted (2021: £349,142) and £3,069,699 was restricted (2021: £448,300).

34

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

This is stated after charging:

----- Start of picture text -----
|||| |---|---|---| |2024|2022| |£|£| |Depreciation|26,542|17,563| |Operating lease rentals:| |Property|18,024|15,120| |Auditors' remuneration (excluding VAT):| |Audit|9,855|7,700| |Foreign exchange losses / (gains)|77,606|(51,857)|

----- End of picture text -----

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

----- Start of picture text -----
|||| |---|---|---| |2024|2022| |£|£| |Salaries and wages|643,610|263,876| |Social security costs|69,235|26,116| |Pension costs|26,124|9,547| |Consultants costs|-|147,935| |738,969|447,474|

----- End of picture text -----

Two employees earned more than £60,000 during the year (2022: 1).

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

----- Start of picture text -----
|||| |---|---|---| |2024|2022| |No.|No.| |£70,000 - £70,999|1|-| |£110,000 - £119,999|-|1| |£160,000 - £169,999|1|-|

----- End of picture text -----

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £283,692 (2022: £214,537).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2022: £nil) incurred by 0 (2022: 0) members relating to attendance at meetings of the trustees.

35

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 9 (2022: 8).

Nekton Foundation owes £nil (2022: £nil) to its wholly owned subsidiary Nekton Enterprises Limited.

Nekton Foundation owes £nil (2022: N/A) to its wholly owned subsidiary Ocean Census Limited.

There were no related party transactions in the year.

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

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiaries Nekton Enterprises Limited and Ocean Census Limited gift aid available profits to the parent charity.

11 Tangible fixed assets

The group & Charity
At the end of the year
At the end of the year
At the start of the year
Charge for the year
At the start of the year
Additions in year
Cost
Depreciation
Net book value
At the start of the year
At the end of the year		 Scientific
equipment
£
136,389
219,677
356,066
60,649
19,197
79,846
276,220
75,740		 Filming &
Communica-
tions
equipment
£
24,070
-
24,070
20,522
1,835
22,357
1,713
3,548		 Computer
equipment
£
22,631
2,446
25,077
14,041
4,873
18,914
6,163
8,590		 Office and lab
furniture
£
5,095
-
5,095
2,708
637
3,345
1,750
2,387		 Total
£
188,185
222,123
410,308
97,920
26,542
124,462
285,846
90,265

All of the above assets are used for charitable purposes.

36

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

12a. Subsidiary undertaking - Nekton Enterprises Limited

The charitable company owns 100% of the voting rights of Nekton Enterprises Limited, a company registered in England. The subsidiary is used for non-primary purpose trading activities. Available profits are gift aided to the charitable company. The Chief Executive of Nekton Foundation, Oliver Steeds, is also director of the subsidiary. A summary of the results of the subsidiary is shown below:

Management charge payable to parent undertaking
Net Assets
Profit on ordinary activities before taxation
Gross profit
Interest payable
The aggregate of the assets, liabilities and funds was:
Retained earnings carried forward
Profit distributed to parent under gift aid
Share Capital
Profit & Loss Account
Assets
Liabilities
Profit for the financial year
Taxation
Interest payable to parent undertaking
Retained earnings
Retained earnings brought forward
Operating profit / (loss)
Turnover
Cost of sales
Profit for the financial year
Total Shareholders Funds		 2024
£
31,250
(6,783)
24,467
(7,626)
16,841
-
-
16,841
(1,150)
15,691
129,028
15,691
(129,028)
15,691
240,469
(224,778)
15,691
1
15,691
15,692		 2022
£
179,167
(19,356)
159,811
(16,367)
143,444
-
-
143,444
-
143,444
(14,415)
143,443
-
129,028
342,064
(213,036)
129,028
1
129,028
129,029

Amounts owed to/from the parent undertaking are shown in note 9.

37

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

12b. Subsidiary undertaking - Ocean Census Limited

The charitable company owns 100% of the voting rights of Ocean Census Limited, a company registered in England. While not a charity, the subsidiary is used to deliver the charitable objectives of the charity. Available profits are gift aided to the charitable company. The Chief Executive of Nekton Foundation, Oliver Steeds, is also a director of the subsidiary. A summary of the results of the subsidiary is shown below:

Management charge payable to parent undertaking
Share Capital
Profit & Loss Account
Total Shareholders Funds
Profit distributed to parent under gift aid
Retained earnings carried forward
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Net Assets
Operating profit / (loss)
Interest payable
Interest payable to parent undertaking
Turnover
Cost of sales
Gross profit
Taxation
Profit for the financial year
Retained earnings
Retained earnings brought forward
Profit for the financial year
Profit on ordinary activities before taxation		 2024
£
1,042,520
(992,876)
49,644
-
49,644
-
-
49,644
-
49,644
-
49,644
-
49,644
-
-
-
10
49,644
49,654

Amounts owed to/from the parent undertaking are shown in note 9.

38

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

13
Debtors
Due from Ocean Census Limited subsidiary
Trade debtors
Prepayments		 2024
2022
£
£
23,368
4,942
24,061
5,937
-
-
47,429
10,879
The group		 2024
2022
£
£
231,979
230,241
24,061
5,937
252,242
-
508,282
236,178
The charity

All of the group’s financial instruments, both assets and liabilities, are measured at amortised cost. The carrying values of these are shown above and also in note 17a below.

Grant creditors
Taxation and social security
Accruals
Other creditors
Trade creditors
Due to Nekton Enterprises Limited subsidiary		 2024
2022
£
£
151,519
9,460
27,112
8,919
17,083
510
380,117
247,792
-
-
15,500
15,500
591,331
282,181
The group		 2024
2022
£
£
123,556
9,669
23,465
7,669
9,914
2,302
373,648
242,937
110,753
118,693
15,500
15,500
656,836
396,770
The charity

15 Pension scheme

Nekton Foundation operates a defined contribution pension scheme to which fixed contributions are made. The amount paid in the year was £26,124 (2022: £9,547).

39

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

16a Analysis of group net assets between funds (current year)

16b
Tangible fixed assets
Tangible fixed assets
Net current assets
Net assets at 31 December 2022
Net assets at 31 March 2024
Net assets at 31 December 2022
Net current assets
The Group
Tangible fixed assets
Net current assets
Net assets at 31 March 2024
The Group
Analysis of group net assets between funds (prior year)
The Charity
Tangible fixed assets
Net current assets
The Charity		 £
-
380,067
380,067
£
-
435,870
435,870
General
unrestricted
£
-
490,559
490,559
General
£
-
619,591
619,591
General
unrestricted
General		 Restricted
funds
£
264,023
3,791,058
4,055,081
Restricted
£
285,846
3,778,775
4,064,621
Restricted
funds
£
90,265
622,247
712,512
Restricted
£
90,265
622,247
712,512		 Total funds
£
264,023
4,171,125
4,435,148
Total funds
£
285,846
4,214,645
4,500,491
Total funds
£
90,265
1,112,806
1,203,071
Total funds
£
90,265
1,241,838
1,332,103

40

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

17a
Restricted funds:
Total restricted funds
Ocean Census Year 2
Ocean Census Launch
Total unrestricted funds
Octopus
Movements in funds (current year)
The Charity
First Descent: Indian Ocean
Ocean Census Year 1
India Deep Reef Expedition: Feasibility
eDNA Seahorses
Deep Sea & Ocean Science MOOC
Yachts for Science
Unrestricted funds:
Total funds
Deep Reefs and MPAs
Microplastics
General funds		 At 1 January
2023
£
12,316
682,926
-
-
-
-
-
-
-
10,232
7,037
712,511
490,560
490,560
1,203,071		 Income &
Gains
£
-
132,252
3,817,648
3,167,655
150,314
24,865
11,000
7,132
5,000
-
-
7,315,866
167,004
167,004
7,482,870		 Expenditure &
losses
£
-
(402,115)
(3,294,495)
(702)
(150,314)
(24,865)
(11,000)
(7,132)
(5,000)
-
(67)
(3,895,690)
(277,497)
(277,497)
(4,173,187)		 Losses
£
-
-
(77,606)
-
-
-
-
-
-
-
-
(77,606)
-
-
(77,606)		 At 31 March
2024
£
12,316
413,063
445,547
3,166,953
-
-
-
-
-
10,232
6,970
4,055,081
380,067
380,067
4,435,148

The narrative to explain the purpose of each fund is given at the foot of the note below.

41

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

17a Movements in funds (current year) continued

Restricted funds:
Total restricted funds
eDNA Seahorses
India Deep Reef Expedition: Feasibility
Ocean Census Launch
Yachts for Science
Microplastics
General funds
Unrestricted funds:
Deep Reefs and MPAs
Octopus
Ocean Census Year 1
Deep Sea & Ocean Science MOOC
Total unrestricted funds
Total funds
Ocean Census Year 2
The Group
First Descent: Indian Ocean		 At 1 January
2023
£
12,316
682,926
-
-
-
-
-
-
-
10,232
7,037
712,511
619,592
619,592
1,332,103		 Income &
Gains
£
-
132,252
3,817,648
3,167,655
150,314
24,865
11,000
7,132
5,000
-
-
7,315,866
68,914
68,914
7,384,780		 Expenditure &
losses
£
-
(402,115)
(3,294,495)
(702)
(150,314)
(24,865)
(11,000)
(7,132)
(5,000)
-
(67)
(3,895,690)
(243,096)
(243,096)
(4,138,786)		 Losses
£
-
-
(68,066)
-
-
-
-
-
-
-
-
(68,066)
(9,540)
(9,540)
(77,606)		 At 31 March
2024
£
12,316
413,063
455,087
3,166,953
-
-
-
-
-
10,232
6,970
4,064,621
435,870
435,870
4,500,491

The narrative to explain the purpose of each fund is given at the foot of the note below.

OcToPUS

Development of the Ocean Tool for Public Understanding and Science (OcToPUS) funded by the Garfield Weston Foundation and private philanthropists.

First Descent: Indian Ocean

Funding from Omega and Kensington Tours for the First Descent series of expeditions in the Indian Ocaean, with expenditure for First Descent: Maldives.

Ocean Census

Funding from and co-founded with The Nippon Foundation, Ocean Census is a 10-year international programme developed to transform the discovery of ocean life, aiming to accelerate species discovery, innovate equitable access to ocean life data, build human and technology capacity in taxonomy, and amplify the story of ocean life to catalyse awareness and action.

India Deep Reef Expedition: Feasibility

Funding by the UK government's Foreign, Commonwealth & Development Office for a feasibility study for a potential expedition to India in partnership with the Governments of India and UK.

eDNA Seahorses

Funding from and collaboration with Natural England, providing guidance and supervision of research on using eDNA for seahorse detection in the UK and review of new guidelines.

Deep Sea & Ocean Science MOOC

Funding by The Minderoo Foundation, and led by and working in partnership with The University of Seychelles, for the development of the Western Indian Ocean Deep Sea Science Course and Mass Open Online Course.

42

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

17a Movements in funds (current year) continued

Yachts for Science

Funding from private philanthropists for Yachts for Science, a programme which matches marine scientists with private yachts to undertake field research.

Deep Reefs and MPAs

Funding from Garfield Weston Foundation supports this research project to assess the value and importance of mesophotic reefs within marine spatial planning and the designation of marine protected areas globally.

Microplastics

Funding from The Flotilla Foundation for a research project into the contamination pathways and prevalence of microplastics in Antarctica.

17b Movements in funds (prior year)

Restricted funds:
Total restricted funds
Total unrestricted funds
Yachts for Science
General funds
Unrestricted funds:
Total funds
eDNA Seahorses
Microplastics
Deep Reefs and MPAs
Nautilus Feasibility Study*
Indian Ocean Missions
The Charity
Octopus		 £
12,316
753,283
-
22,304
38,451
-
32,462
858,816
528,001
528,001
1,386,817
At 1 January
2022		 £
-
2,774,033
5,000
-
138,361
6,000
-
2,923,394
120,381
120,381
3,043,775
Income &
Gains		 £
-
(2,844,390)
(5,000)
(12,072)
(176,812)
(6,000)
(25,425)
(3,069,699)
(157,822)
(157,822)
(3,227,521)
Expenditure &
losses		 £
-
-
-
-
-
-
-
-
-
-
-
Gains		 £
12,316
682,926
-
10,232
-
-
7,037
712,511
490,560
490,560
1,203,071
At 1 January
2023

*Nautilus Feasibility Study: ’Nautilus' was the working title for the programme launched in 2023 as Ocean Census.

43

Nekton Foundation

Notes to the financial statements

For the 15 months ended 31 March 2024

17b Movements in funds (prior year) continued

Restricted funds:
Total restricted funds
eDNA Seahorses
Unrestricted funds:
General funds
Total unrestricted funds
Total funds
Yachts for Science
Indian Ocean Missions
Microplastics
Deep Reefs and MPAs
Nautilus Feasibility Study*
Octopus
The Group		 £
12,316
753,283
-
22,304
38,451
-
32,462
858,816
528,000
528,000
1,386,816
At 1 January
2022		 £
-
2,774,033
5,000
-
138,361
6,000
-
2,923,394
283,341
283,341
3,206,735
Income &
Gains		 £
-
(2,844,390)
(5,000)
(12,072)
(176,812)
(6,000)
(25,425)
(3,069,699)
(243,606)
(243,606)
(3,313,305)
Expenditure &
losses		 £
-
-
-
-
-
-
-
-
51,857
51,857
51,857
Gains		 £
12,316
682,926
-
10,232
-
-
7,037
712,511
619,592
619,592
1,332,103
At 1 January
2023

*Nautilus Feasibility Study: ’Nautilus' was the working title for the programme launched in 2023 as Ocean Census.

18 Reconciliation of net income to net cash flow from operating activities

Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Loss/Profit on the sale of fixed assets
Increase in debtors
Decrease in creditors
Net cash provided by / (used in) operating activities
19
Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents		 £
1,513,140
1,513,140
At 1 January
2023		 Cash flows
£
3,245,407
3,245,407		 2024
£
3,247,144
26,542
-
(36,550)
309,150
3,546,286
Other changes
£
-
-		 2022
£
(106,570)
17,563
-
19,430
110,308
40,731
£
4,758,547
4,758,547
At 31 March
2024

20 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

44