Special Boat Service Association (A charitable incorporaled organisation) Annual Report and Consolidated Financial Statements Year Ended 31 March 2025 Company registration number: CE008612 Charity registration number.. 1168876 Special Boat Service Association Contents Reference and Administrative Details Trustee's Report 2to7 Independent Auditors, Report 8t0 11 Consolidated Statement of Financial Activities 12to13 Consolidated Balance Sheet 14 Balance Sheet 15 Consolidaled Statement of Cash Flows 16 Notes to the Financial Statements 17to42 Special Boat Service Association Reference and Administrative Details Trustee MrRCom Principal Office HQ Sqn RM Poole Hamworthy Poole Dorset BH15 4NQ Charity Registration Number 1168876 Company Registration Number CE008612 Auditor PKF Francis Clark Chartered Accountants and Statutory Auditors Towngate House 2 - 8 Parkstone Road Poole Dorset BH15 2PW Solicitors Wilsons Solicitors LLP 4 Lincoln's Inn Fields London WC2A 3AA Bankers The Royal Bank of Scotland PIC Holt's Military Banking Lawrie House Victoria Road Famborough GU14 7NR Page 1 Special Boat Service Association Trustee's Report The Board of Trustees are pleased to present the annual report and accounts for the charity for the year ending 31 March 2025. The financial statements have been prepared under the accounting policies set out in note 1 of the financial statements and comply with the charitls trust deed, applicable law and the provision of the Statement of Recommended Practi￿ (SORP) "Accounting and Reporting by Charities" Our Principal Charitable Objectives The main objectives of the Association as set out in the Constitution are= (i) To promote the efficiency of the Special Boat servi￿ by. a. Maintaining contact between serving and former members of the Service and providing for social gatherings for them- b. Fostering espril de corps. comradeship and the welfare of the Service and perpetuating its deeds; c. Preserving the traditions of Ihe Service including the practi￿ of undersiatement, humility, and modesty" d. Perpeluating the memory of those members of the Service who have died in the service of their country: e. Assisting Service members or fornier members of the Service, their families, and dependents by the provision of facilities and services and by such other means as the Board shall from time to time detemine. (li) To relieve members or former members of the Service or their dependants who are in need by virtue of financial hardship or sickness by- a. Making grants of money to them" or b. Providing or paying for goods, services. or facilities for them., or c. Making grants of money to other persons or bodies who provide goods, services, or facilities to those in need; or d. Provide advice and counselling to them during bereavement or injury or during times of crises or conflict. (iii) To relieve members or former members of Allied Forces Units or their families and dependents, and the families or dependents of deceased members of such Units, who are in need by virtue of financial hardship or sickness. by such means as the Board shall from time to time determine. Public benefit The Association exists to provide a lifetime of support to the Special Boat Service, members of the Special Boat Service Association. and their dependents by providing appropriate charitable assistan￿ when public funding is unavailable. By improving morale and esprit de corps amongst members of Ihe association. the support provided directly contributes to the quality of the Special Boat Service as a key component of the Nations Armed Forces. and thereby to the defence of the Nation. In compiling this report, we have referred to the guidan￿ contained in the Charity Commision's general guidance on public benefit and compiled the review of our aims and objectives to reflect how our activities deliver public benefit. Achievements and perforniance Review of achievements and perforniance The Association has provided the following benefits to its members during this financial year as shown below. Page 2 Special Boat Service Association Trustee's Report Welfare How we have helped and supported: We have provided direct welfare support to: Serving Members - £81.000 Veterans - £329,000 Dependents - £17,000 Others - £ 79.000 Other projects we support: Dependents Health Care £352,000 Families Fund - £40,000 Command Fund £78,000 Operation Amour £120,000 Community Centre £40.000 Children's Ski Trip £35,000, and Other Grants totaling £ 59,000. Reunions I Pilgrimages l Historical - £569,000 Total £1,799,000 Who and how we help Veterans The Unil and their family Bereaved Families Children of Service Wounded Warriors Amenities Ongoing through life support to Veterans who have sustained life changing injuries during SeNlCe. Various levels of support which are not limited to- counselling funding for long temi illnesses, bereavement and marital support for Operators retuming from deployment. as well as respite care to help families with children with disabilities and ongoing support to children affected by serving parents PTSD. The Aviva Private Healthcare Scheme has proved to be a Suc￿sS to our serving members. The cover provides instant referrals and provides access to specialists. This gives an enhanced peace of mind for deployed operators knowing their families are receiving the best care. Support offered to Bereaved Families operates on a case by case basis., examples of support are financial aid with funeral costs. wakes. memorial services and counselling. The Association is continuing to help children via counselling and financial support for further education and coping wilh the loss of a loved one. The SBSA family is ever-growing increasing the need for child support. The unil's operational tempo is continuing to increase and the SBSA stands ready to support in any future injuries or casualties sustained in conflict Operation Arniour The Association continue to fund Operation Amour. Our total commitment over recent years is £670,000, a human performance imitative focused on Physical & Mental Resilience for Serving Members. Our Amenities portfolio is continuing to be utilised by both Veterans and Serving Members. The SBSA now have access to 6 properties across England and Europe offering much needed R&R. The properties provide good value and quality respite holidays for Association Members and their families. Page 3 Special Boat Service Association Trustee's Report Structure, governance. and management a. Constitution The Association, which was incorporated as a charitable incorporated organisation in 2016. is governed by a constitution, which was approved by the Charity Commission on 23 August 2016. It is registered with the Charity Commission with charity number 1168876. The constitution is reviewed annually by the Board and is updated if required. following deliberation and confirmation of change by vote at the Annual General Meeting. b. Method of appointment or election of Truslees The composition and size of the Board of Trustees is reviewed regulady to assess the skills profile of the Board relevant to its requirement to meet the needs of the Charity. The Board is responsible for appointing trustees, who are recruited from as broad a network of personal contacts as possible. and who serve for one year, with re*lection at the Annual General Meeting. c. Policies adopted for the induction and training of Trustees All new trustees are briefed on their responsibilities and their statutory obligations under charity law. In addition, all trustees are encouraged to attend appropriate trustee training courses. such as the oneday courses for the Chair. Investment Training for Trustees and Trustee Training Course. All trustees are given the opportunity to meet key members of staff. d. Organisational structure and decision making The Association is managed by a Board of Trustees, comprising of 14 trustees in totsl, of whom 2 are ex- officio and 12 are elected. The trustees receive no remuneration and elected members serve for 4 years, but can be re-elected at the Annual General Meeting. For security purposes and wilh the agreement of the Charity Commission, details of the Board of Trustees are only available from the Chief Executive Officer at the principal offi￿. The Trustees meet three times a year. The Trustees agree the strategy and areas of focus of activity on behalf of the Association, including consideration of fundraising, grant making, investments, reserve policy. risk management strategy and performance. The day-to-day administration and conduct of the Association is delegated to the Chief Executive Officer. The Board is supported by the following committees. which have written terms of referen￿. These committees meet prior to the Board of Trustees Meeting to make recommendations concerning the extension, cessation or suspension of grants, activities and resources towards their directed tasks.. Inveslment Finance Welfare & Grant making Fundraising Govemance Membership Trustee Nomination Regimental Historical Page 4 Special Boat Service Association Trustee's Report e. Welfare and Grant making policy During Trustees meetings, trustees will consider we￿are grants to the fund of over £50,000. The CEO has delegated authority to make individual welfare grants of up to £5,000 and financial delegation to enable him to carry out the general management and day to day business of the charity, in accordance with the approved annual budget as agreed by the Board. The Chairman of Trustees and CEO acting together has delegated authority to approve welfare grants of more than £5.000 but less than £10.000. The Grants committee has delegated authority to approve individual welfare grants of more than £10.000 but less than £50,000. Any bids falling outside of these parameters may be considered for approval by a quorum of at least five Trustees as and when they are re￿ived. f. Related party relationships The Association continues to maintain active links with similar and like-minded Service and civilian charities. g. Risk management The Board of Trustees has assessed the major risks to which the charity is exposed. in particular those relating to the operations and finances of the Association and are satisfied that systems are in place to miligate exposure to major risks. The Association maintains two Insurance Policies., Employers and Public Liability and Accidental Death Policy which are reviewed annually. The majority of capital is invested with Cazenove Capital Management and the performance and monitoring of this investment is conducted by the Investment committee on a regular basis. h. Reserves policy The Trustees have reviewed the level of free reserves available to use for charitable activities. Free reserves are unrestricted general funds that have not been designated and total £2,840,913 (2024: £1,964,179) The Trustees have designated a Lifetime care fund which will maintain 3 years of financial help to current long term wounded, injured and sick members. This designated fund is based on the required care for known obligations to care for members. It is difficult to quantify the financial impact of unknown obligations to support members. future needs. However. the Trustees are satisfied that current free reseNes are sufficient to allow the charity to continue to operate and manage future obligations as they occur. The current fund value is £2.031,600. Financial review The Association relies on income from donations, fundraising and investment income. The majority of its funds are invested with Schroders (Cazenove Capital Management). The portfolio transfers a monthly income of £15,000 to the Association and provides capital growkh. The wholly owned subsidiary Frankton Trading Ltd accounts have been consolidated into the Associations financial records. The net increase (decrease) in funds of £351.781 (2024: £1,2PA.680) comprises the surplus of income over expenditure of £239.645 (2024= £733.439), plus other gains (losses) of £112,136 {2024- £551,231. Within the investment figure ihe association holds cash balances of £563,026 (2024: £357,194) with Cazenove. The charity has continued with its Fundraising Campaign. which aims to continue until we raise sufficient funds for the SBSA to be in a position to provide long temi financial assistance and support to SBSA Members and their dependents" and to increase the General Fund with the long-term aim to become self-sufficient from capital investment. The Association has raised £3,154,887 (2024: £4,170,762) for the general fund during the reporting period. Page 5 Special Boat Service Association Trustee's Report The Association has continued to identify welfare cases and provided support to them. In addition a Dependents Healthcare Private Insurance Policy for serving members immediate family members which was initiated in December 2011 and remains in place. During the period of the accounts, the direct charitable expenditure was £2,785.187 (2024.. £2.552.048), which includes welfare. memorials and funeral expenditure of £657,541 (2024.. £641,192). At the end of the financial year, the Board judged that the Charity holds sufficient funds to meet its obligations, and the trustees are satisfied with the result for the year. There have been no changes in accounting policies. j. Investment policy The Trustees delegated the management of the Associations Capital Fund to Schroders (Cazenove Capital Management). The investment Policy of this portfolio is to produce a balance between income and capital growth. to generate a 'total return.. The capital investment is categorised as a Specialist Progressive attitude to risk. Disclosure of information to auditor The member has taken steps that he ought to have taken as a member in order to make himself aware of any relevant audit information and to establish that the chariws auditor is aware of that information. The member confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware. Page 6 Special Boat Service Association Trustee's Report Statement of trustee's responsibilities The trustee (who is also the director of Special Boat Se￿1￿ Association for the purposes of company law) is responsible for preparing the trustee's report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". Company law requires the member to prepare financial statements for each financial year. Under company law the member must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the parent charitable company and the group and of the incoming resources and application of reSoUr￿s. including its income and expenditure, of the charitable group for that period. In preparing these financial statements, the member is required to.. select suitable accounting policies and apply them consistenily, observe the methods and principles in the Charities SORP" make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements- and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the parent charitable company will continue in business. The member is responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the parent charitable company and the group and enable them to ensure that the financial statements comply wth the Companies Act 2006. He is also responsible for safeguarding the assets of the parent charitable company and the group and hen￿ for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustee is responsible for the maintenance and integrity of the corporate and financial information included on the charitable companVs website. Legislation goveming the preparation and dissemination of financial statements may differ from legislation in otherjurisdictions. The annual Jép behalf by: was approved by the member of the charity on 2 Oclober 2025 and signed on its tee Page 7 Special Boat Service Association Independent Auditorfs Report to the Members of Special Boat Service Association Opinion We have audited the financial statements of Special Boat Service Association (the 'charitable parent,) and its subsidiaries (the 'group') for the year ended 31 March 2025, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balan￿ Sheet, Consolidated Statement of Cash Flows 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 United Kingdom Accounting Standards, comprising Charities SORP FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements- give a true and fair view of the state of the group's and parent charity's affairs as at 31 March 2025 and of its incoming resources and application of resources. including its income and expenditure, for the year then ended- have been properly prepared in accordan￿ with United Kingdom Generally Accepted Accounting Practice; and 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 responsibilities for the audil 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 the Charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 inforniation The trustees are responsible for the other infomialion. The other informalion comprises the information included in the annual report, other than the financial statemenls and our auditor's report thereon. Our opinion on the financial statements does not cover the other informalion and, except to the extent otherwise explicitly stated in our report. do not express any form of assurance conclusion thereon. Page 8 Special Boat Service Association Independent Auditorfs Report to the Members of Special Boat Service Association In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial slatements or a material misstatement of the other information. If, based on the work we have performed, we conclude thal there is a material misstatement of this other information. we are required to report that fact. We have nothing to report in this regard. Opinion on other matter prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit: the information given in the and Truslee's Report for the financial year for which the financial statements are prepared is consistent with the financial statements,. and the and Trustee's Report have been prepared in accordan￿ with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the group and the parent charitable incorporated organisation and its environment obtained in the course of the audit, we have not identified material misstatements in the and the Trustee's Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept by the parent charitable incorporated organisation, or retums adequate for our audit have not been received from branches not visited by us" or the parent charitable incorporated organisation financial statements are not in agreement with the accounting records and returns,. or certain disclosures of trustee remuneration specified by law are not made. or we have not re￿iVed all the information and explanations we require for our audit. Responsibilities of trustee As explained more fully in the Statement of trustee's responsibilities (set out on page 7), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so. Page 9 Special Boat Service Association Independent Auditorfs Report to the Members of Special Boat Service Association Auditor 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 accordan￿ 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 tsken on the basis of these financial statements. Irregularities, including fraud. are InStan￿S 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 is detailed below.. As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the Charity. We gained an understanding of the Charity and the sector in which the Charity operates as part of this assessment to identify the key laws and regulations affecting the Charity. As part of this, we reviewed the Charitys website for an indication of any regulations in pla and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were Charity legislation. health and safety regulations and breaches of The General Data Protection Regulalion ("GDPR-). We also considered those laws and regulations that have a direct impacl on the preparation of the finanaal statements such as the Charities Act 2011 and Charities SORP- FRS 102. We discussed with management and trustees how the compliance with these laws and regulations is monitored and discussed policies and procedures in pla￿. We also identified the individuals who have responsibility for ensuring that the Charity complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the Charitys ability to continue trading and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following= Enquiries of management and trustees regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none. Reviewed filings with the Charity Commission and whether there were any serious incident reports made during the year, of which there were none. Discussed with management if any health and safety incidents have been recorded during the year, of which there were none. Review of the GDPR policy and enquiries to management as to the occurrence of any reportable breaches, of which there were none. Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance, of which there were none. Reviewed Board minutes. Page 10 Special Boat Service Association Independent Auditorfs Report to the Members of Special Boat Service Association Reviewed bank statements for donations and other SoUr￿S of income, vouched these through to supporting documentation to ensure that it is correctly recorded along with correct allocation of restricted and unrestricted income. Audited the risk of management override of controls. including through testing journal entries and other adjustments for appropriateness. and evaluating the business rationale of significant transactions outside the normal course of business. Reviewed estimates and judgements made in the accounts for any indication of bias, of which there were none. 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 siatements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate ornissions, collusion, forgery, misrepresentations, or the override of intemal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflecled in the financial statements. A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.ukJauditorsresponsibilities. This description forms part of our auditorfs report. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at mvw.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This reporl is made solely to the charitable parent members in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been underlaken so that we might state to the group's members those matters we are required to state them in an auditorfs report and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume responsibility to anyone other than the charitable parent and its members as a body. for our audit work, for this report, or for the opinions we have formed. PkF Frkn(A( cl~k Dan Tout FCA FCCA (Senior Statutory Auditor) PKF Francis Clark. Statutory Auditor Chartered Accountants and Statutory Auditors Towngate House 2 - 8 Parkstone Road Poole Dorset BH15 2PW Date: 8 October 2025 Page11 Special Boat Service Association Consolidated Statement of Financial Activities Year Ended 31 March 2025 (Including Consolidated Income and Expenditure Account) Total 2025 Unrestricted Restricted Note Income and Endowments from: Donations and legacies Other trading activities Investment income 221.575 2,684,019 249,293 9,932 426,567 231,507 3,110,586 249,293 Total income 3,154,887 436,499 3.591,386 Expenditure on: Raising funds Charitable activities (566.554) (2.530,439 (566,554) 2,785.187 (254,748 Total expenditure (3.096,993 (254,748 3,351.741 Net income 57.894 181,751 239,645 Other recognised gains and losses Other gainsllosses 112,136 112,136 Net movement in funds 170,030 181,751 351,781 Reconciliation of funds Total funds brought forward 10,811,073 300,829 11,111,902 Total funds carried fo￿ard 19 10,981.103 482,580 11,463,683 The notes on pages 17 to 42 foTh an integral part of these financial statements. Page 12 Special Boat Service Association Consolidated Statement of Financial Activities Year Ended 31 March 2025 (Including Consolidated Income and Expenditure Account) Unrestricted funds Restricted funds Total 2024 Note Income and Endowments from: Donations and legacies Other trading activities Investment income 143,545 3,762,168 265,049 12.708 250,000 156,253 4.012,168 265,049 Total income 4,170.762 262,708 4.433,470 Expenditure on: Raising funds Charitable activities Other expenditure {1,147.901) {2,401.168) (82 (1,147,901) (2,552.048) {82) {150,880) Total expenditure (3,549,151 (150,880) 3,700.031 Net income 621,611 111,828 733,439 Other recognised gains and losses Other gainsllosses 551.241 551,241 Net movement in funds 1,172,852 111,828 1,284,680 Reconciliation of funds Total funds brought forward 9,638,221 189,001 9,827,222 Total funds carried forward 19 10,811,073 300,829 11,111,902 All of the group's activities derive from continuing operations during the above hNo periods. The funds breakdown for 2024 is shown in note 19. The notes on pages 17 to 42 foTh an integral part of these financial statements. Page 13 Special Boat Service Association Consolidated Balance Sheet 31 March 2025 2025 2024 Note Fixed assets Intangible assets Tangible assels Investments 12 13 14 11,714 7,173 10.809,850 15,657 14,208 10,712.372 10,828,737 10,742,237 Current assets Stocks Debtors Cash at bank and in hand 15 16 142,294 527,327 429,564 139,431 507,931 182,319 1,099,185 829,681 Creditors: Amounts falling due within one year 17 (464,239) 460.016) Net current assets 634,946 369,665 Net assets 11,463,683 11,111,902 Funds of the group: Restricted income funds Restricted funds 19 482,580 300,829 Unrestricted income funds Unrestricted funds 10,981,103 10,811,073 Total funds 19 11,463,683 11,111,902 The financial statements on pages 12 to 41 were approved by the trustees. and authorised for issue on ..2 October 2025... and signed on their behalf by: Corn Trustee Company Registration Number: CE008612 The notes on pages 17 to 42 foTh an integral part of these financial statements. Page 14 Special Boat Service Association Balance Sheet 31 March 2025 2025 2024 Note Fixed assets Intangible assets Tangible assels Investments 12 13 14 11,714 7,173 10.809,852 15,657 14,208 10,712.373 10,828,739 10,742,238 Current assets Stocks Debtors Cash at bank and in hand 15 16 13.500 647,875 422,619 44,400 611,418 167,436 1,083,994 823,254 Creditors: Amounts falling due within one year 17 (453,370 453.942 Net current assets 630,624 369,312 Net assets 11,459,363 11,111,550 Funds of the charity: Restricted income funds Restricted funds 19 482,580 300,829 Unrestricted income funds Unrestricted funds 10,976,783 10,810,721 Total funds 19 11,459,363 11,111,550 Special Boat Service Association (Charity) had a net surplus of £347,813 (2024: £1,283,806) The financial statements on pages 12 to 41 were approved by Ihe trustees. and authorised for issue on 2 October 2025 and signed on their behalf by. om rustee Company Registration Number: CE008612 The notes on pages 17 to 42 foTh an integral part of these financial statements. Page 15 Special Boat Service Association Consolidated Statement of Cash Flows Year Ended 31 March 2025 2025 2024 Note Cash flows from operating activities Net cash income 351,781 1,284,680 Adjustments to cash flows from non-cash items Depreciation Amortisation Investment income Lossl(profit} on disposal of investments Revaluation of investments 10,841 3,943 (249,293) 105,460 112,136) 110,596 14,308 5,384 (265.049) (589,657) 551,241) (101.575) Working capital adjustments (Increase)Idecrease in stocks (Increase)Idecrease in debtors Decrease in creditors Increasel(decrease) in deferred income 15 16 17 17 (2,863) (19.396) (2,014) 6,319 27,216 57,312 (174,046) (381,613) Net cash flows from operaling activities 92,642 (572.706) Cash flows from investing activities Interest receivable and similar income Purchase of tangible fixed assets Purchase of investments Sale of investments Income from dividends 75.977 (3,806) (2,563,309) 2,472,425 173,316 86,148 (8,269) (1,956,196) 1,816,971 178,901 13 14 14 Net cash flows from investing activities 154.603 117,555 Net increasel(decrease) in cash and cash equivalents 247,245 (455.151) Cash and cash equivalents at 1 April 182.319 637,470 Cash and cash equivalents at 31 March 429,564 182,319 All of the cash flows are derived from continuing operations during the above two periods. The notes on pages 17 to 42 foTh an integral part of these financial statements. Page 16 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 1 Accounting policies Summary of significant accounting policies and key accounting estimates The principal accounting policies applied in the preparation of these financial statemenls are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. ststement of compliance The financial statements have been prepared in accordan￿ 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Charities Act 2011. Basis of preparation Special Boat Service Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise staled in the relevant accounting policy notes. Basis of consolidation The consolidated financial statements consolidate the financial siatements of the charity and its subsidiary undertakings drawn up to 31 March 2025. No statement of financial activities is presented for the charity as permitled by section 408 of the Companies Act 2006. The charity made a surplus for the financial year of £347,813 (2024 £1,283,806). Page 17 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern Ihe financial and operating policies of an entity so as to obtain benefits from ils activities. The results of subsidiaries acquired or disposed of during the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group. The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any eX￿s$ of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill. Inter-company transactions, balances and unrealised gains on transactions be￿een the charity and its subsidiaries, which are related parties. are eliminated in full. Intra-group losses are also eliminated but may indicate an impaimient that requires recognition in the consolidated financial statements. Accounting policies of subsidiaries have been changed where ne￿SSary to ensure consislency with the policies adopted by the group. Non-controlling interests in the net assels of consolidated subsidiaries are identified separately from the group's equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder's share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance. Going concern The financial statements have been prepared on a going concem basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going cOn￿M. Income and endowments All income is recognised On￿ the charity has entitlement to the income, it is probable that the income will be received and the amount of the income re￿1vable can be measured reliably. Page 18 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 Donations and legacies Donations are recognised on a receivable basis when receipt is probable and the amount can be reliably measured. Legacy gifls are recognised on a case by case basis following the grant of probate when the administratorlexecutor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the tide to the asset having been transferred to the charity. Grants receivable Grants are recognised when the charity has an entitlement to the funds and any condilions linked to the grants have been met. Where perfomiance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released. Deferred income Deferred income represents amounts re￿iVed for future periods and is released to incoming resources in the period for which. it has been received. Such income is only deferred when: The donor specifies that the grant or donation must only be used in future accounting periods- or The donor has imposed conditions which must be met before the charity has unconditional entitlement. Donated services and facilities The Ministry of Defence provides support in the form of utilities, services. buildings, grounds and maintenance. The trustees are unable to ascertain precisely the cost of this provision but estimate the value based on Ihe cosl of purchasing such ServI￿S extemally. These amounts are recognised as intangible income and expenditure in the statement of financial activities. The income is within voluntary income (gifts in kind) and the equal expenditure is within costs of generating voluntary income. Gift aid Incoming resources from tax reclaims are included in the Statement of Financial Activities at the same time as the gift to which they relate. Investment income Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity- this is nonnally upon notification of the interest paid or payable by the bank.Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. Page 19 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. Raising funds These are costs incurred in attracting voluntary income. the management of investments and those incurred in trading activities that raise funds. Charitable activities Charitable expenditure comprises those costs incurred by the charity in the delivery of ils activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those cosls of an indirecl nature ne￿SSary to support them. Governance costs These include the costs atlributable to ihe chariws compliance with constitutional and slatutory requirements. including audit, strategic management and trustee's meetings and reimbursed expenses. Taxation The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore il meets Ihe definition of a charitable company for UK corporalion tax purposes. Accordingly. the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapler 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the exient that such income or gains are applied exclusively to charitable purposes. Intangible assets Intangible assets are stated in the Balance Sheet at cost less accumulated amorlisation and impairment. They are amortised on a straight line basis over their estimated useful lives. Tangible fixed assets Individual fixed assets are initially recorded at cost. less any subsequent accumulated depreciation and subsequent accumulated impairmenl losses. Page 20 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 Heritage assets Heritage assets include a work of art, which is included in the balance sheet at cosl. In addition the Association holds a collection of memorabilia displayed or available in the SBSA office. These assets are not capitalised as to obtain a valuation would not be cost effective and too onerous for the Association. Expenditure. which in the Trustees. view. is required to preserve or clearly prevent further deterioration of individual collection items is recognised in the Income and Expenditure account when it is incurred. Amortisation Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows: Asset class Website Amortisation method and rate 200/0 slraight line Depreciation and amortisation Deprecialion is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows- Asset class Office equipment Static homes Respite accomodation and accessories Asset under construction Depreciation method and rate 330/0 Straight line 20°/0 Straight line 10/ 20 % straight line no depreciation Impairnient of fixed assets Impairment reviews are carried out on a periodic basis. If an asset is found to have a carrying value materially higher than its recoverable amount it is written down accordingly. Fixed asset investments Fixed asset investments. other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end. Stock Stock is valued at the lower of cost and estimated selling pri￿ less costs to complele and sell, after due regard for obsolete and slow moving stocks. Cost is detemined using the first-in, first-out (FIFO). Page 21 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Fund structure Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the group. Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees. Restricted income funds are those donated for use in a particular area or for specific purposes. the use of which is restricted to that area or purpose. Pensions and other post retirement obligations The group operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee Servi￿ in the current and prior periods. Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments ex￿ed the contribution due for service, the excess is recognised as a prepayment. 2 Income from donations and legacies Unrestricted funds General Restricted funds Total 2025 Total 2024 Donations and legacies. Donations from individuals Gift aid reclaimed 128.041 93,534 9,932 137.973 93.534 101,926 54,327 221,575 9,932 231.507 156,253 Page 22 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 3 Income from other trading activities Unrestricted funds General Restricted funds Total 2025 Total 2024 Trading income; Other trading income Local fundraising and street collection income Membership subscriptions Income from trading subsidiary 16,296 16,296 13,225 2.452,790 3.550 211,383 426.567 2,879,357 3.550 211,383 3,736.121 2,750 260,072 2.684,019 426,567 3,110,586 4.012.168 4 Investment income Unrestricted funds General Total 2025 Total 2024 Income from dividends- Dividends re￿1vable from other listed investments Interest receivable and similar income- Other interest receivable 173,316 173,316 178,901 75,977 75.977 86,148 249.293 249,293 265,049 5 Expenditure on raising funds a) Costs of generating donations and legacies Unrestricted Total 2025 Total 2024 General Fundraising 188,445 188,445 747,311 Page 23 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 b) Costs of trading activities Unrestricted funds General Total 2025 Total 2024 Trading subsidiary costs Fundraising consuliancy Direct marketing 182.947 107.783 32,256 182,947 107,783 32.256 235,897 89,301 24,200 322.986 322,986 349,398 c) Investment management costs Unrestricted funds General Total 2025 Other investment management costs" Amounts payable to investment managers 55,123 55,123 55.123 55,123 Unrestricted funds General Total 2024 Other investment management costs" Amounts payable to investment managers 51,192 51,192 51.192 51,192 Page 24 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 6 Expenditure on charitable activities Tolal 2025 Total 2024 Welfare and funerals Memorials Gifts and grants Reunions and pilgrimages Operational costs I dependents healthcare Molor and static home expenses Staff costs (see analysis below) Depreciation and amortisation Govemance costs (see note below) 626,309 31.232 252,612 568,753 580,958 35,234 655,305 14,784 20.000 613,360 27,832 438,038 469,013 330,703 17,102 618,809 19,691 17,500 2,785,187 2,552,048 Analysis of staff costs Total Total 2025 2024 Wages, salaries and pensions (Admin) National insurance (Admin) Wages, salaries and pensions (Fundraising) National insurance (Fundraising) Wages, salaries and pensions (Govemance) National Insuran￿ (Governance) Wages, salaries and pensions (Welfare) National insurance (Welfare) 120,563 13,686 165,285 18,140 30,468 3,435 275,867 27,861 655,305 76,283 9,369 184,721 19,722 29,798 3.510 271,380 24.026 618,809 In accordance with the charitable objective 'to relieve members or former members of the Service or their dependants who are in need by virtue of financial hardship or sickness,, grants of £252,612 (2024.. £438,038) have been made to individuals during the year. Page 25 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 7 Analysis of governance and support costs Governance costs Unrestricted funds General Total 2025 Audit fees Audit of the financial ststements Other fees paid to auditors 13,000 7,000 13,000 7,000 20.000 20,000 Unrestricted funds General Total 2024 Audit fees Audit of the financial statements Other fees paid to auditors 12.000 5,500 12,000 5,500 17.500 17,500 8 Net incomingloutgoing resources Net incoming resources for the year indude: 2025 2024 Audit fees Other non-audit services Depreciation of fixed assets Amortisation of fixed assets 13,000 7,000 10,841 3,943 12,000 5,500 14,308 5,384 9 Trustee remuneration and expenses No trustee, nor any persons connected with them. have ￿￿1Ved any remuneration from the group during the year. No trustees have received any reimbursed expenses or any other benefits from the charity during the year. Page 26 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 10 Staff costs The aggregate payroll costs were as follows: 2025 2024 Staff costs during the year were: Wages and salaries Social security costs Pension costs 572,129 61,424 21.752 549,475 51,400 17,934 655,305 618,809 The monthly average number of persons (including senior management team) employed by the group during the year was as follows.. 2025 No 12 2024 No Employees The number of employees whose emoluments fell wwthin the following bands was: 2025 2024 £60,001 - £70,000 £100,001- £110,000 £110,001- £120.000 The total employee benefits of the key management personnel of the group were £117.533 (2024 £107,232) 11 Taxation The parent of the group is a registered charity and is therefore exempt from taxation. The trading subsidiary is subject to corporation tax on its taxable profits. Page 27 Special Boat Service Association Notes to the Financial Statements Year Ended 31 March 2025 12 Intangible fixed assets Charity and Group Website Total Cost Al 1 April 2024 38,049 38,049 Al 31 March 2025 38,049 38,049 Amortisation Al 1 April 2024 Charge for the year 22,392 3,943 22,392 3,943 At 31 March 2025 26,335 26,335 Net book value At 31 March 2025 11,714 11,714 At 31 March 2024 15,657 15,657 Page 28 ¢J<< < o