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← Nmrn Operations

2024-03-31-accounts

Charity number: 1169061 Company number: 09988314

NMRN Operations (A company limited by guarantee)

Trustees' report and Consolidated financial statements

for the year ended 31 March 2024

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Contents

Legal and administrative information ...................................................................................................................... 3 Foreword .................................................................................................................................................................. 4 Performance Report ................................................................................................................................................. 5 Accountability Report ............................................................................................................................................ 17 Statement of Trustees’ and Accounting Officer’s responsibilities ......................................................................... 20 Independent auditors' report to the members of NMRN Operations ................................................................... 21 Consolidated Statement of financial activities (incorporating the income and expenditure account) ................. 24 Consolidated Balance sheet ................................................................................................................................... 25 Consolidated Cash Flow Statement ....................................................................................................................... 26 Notes to the financial statements .......................................................................................................................... 26

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Legal and administrative information

Charity number 1169061
Company registration number 09988314
Registered office HM Naval Base PP66
Portsmouth
Hampshire PO1 3NH
Business address HM Naval Base PP66
Portsmouth
Hampshire PO1 3NH
Chief Executive and Accounting Officer Matthew Sheldon (appointed 1 December 2023)
Director General and Accounting Officer Dominic Tweddle (resigned 30 November 2023)
Trustees Mr Richard Hatfield
Mrs Kathleen Barnes
Mr Michael Bedingfield
Mrs Jane Dean
Mr Mark Pemberton
Rear Admiral Jonathan P Pentreath CB OBE (appointed 1
September 2023)
Mr Matthew Sheldon (appointed 1 December 2023)
Professor Dominic Tweddle (resigned 30 November 2023)
Accountants Compass Accountants Limited
Venture House, The Tanneries, East Street, Titchfield,
Hampshire PO14 4AR
Auditors Price Bailey Group Limited
3rdFloor
24 Old Bond Street
London
W1S 4AP
Bankers NatWest Bank Plc

130 Commercial Road, Portsmouth, Hampshire PO1 1ES

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Trustees’ annual report (incorporating the directors’ report) and Strategic report

Foreword

The Trustees present the annual report and the audited financial statements of NMRN Operations (“the charitable company”) for the year ended 31 March 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the Trust.

The charitable objectives, as defined in the Articles of Association (as amended by Special Resolution 9 August 2016), are:

The promotion of the efficiency and effectiveness of charities for the benefit of the public, in particular by supporting and assisting the charitable work of the National Museum of the Royal Navy.

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Performance Report

Overview

The charitable company was formed as the operating company for the National Museum of the Royal Navy Group and operates the Fleet Air Arm Museum, the Royal Marines Museum, Explosion! Museum of Naval Firepower, NMRN Portsmouth (the Royal Naval Museum), HMS Caroline, NMRN Hartlepool, the Royal Navy Submarine Museum, HMS Victory, HMS M33, HMS Warrior, Portsmouth Historic Dockyard and Action Stations.

The National Museum of the Royal Navy (“the National Museum”) is the sole corporate member of the charitable company.

The formation of NMRN Operations enabled the National Museum to simplify the governance structure and consolidate all operations and project delivery for the National Museum Group. The charitable company is the main employer for the National Museum. This structure realises the benefits of operation of the museums through a large organisation, improving visitor experience, enhancing access to the collections and providing greater cohesion and efficiency in the delivery of the charitable objectives.

The National Museum is one of the few national museums headquartered outside London, acquiring key sites also outside the capital, enabling people to learn, enjoy and engage with the story of the Royal Navy, and its impact in shaping the modern world. Our vision is to be the world’s most inspiring Naval Museum and our mission is inspiring enjoyment and engagement with the story of the Royal Navy and its role in shaping both our nation and the modern world. Our “Strategy 2022-2027: Linking Navy to nation” sets out our strategic aims in three areas, which NMRN Operations delivers through the execution of its annual corporate plan:

Audiences:

Collections:

Sustainability:

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Our People

We recognise that none of this will be achieved without the skills, dedication and hard work of our people. This requires that we:

Our framework of values supports the culture of the organisation, guiding our everyday actions and being integral to our performance management framework.

Activities and Achievements

Visitors

During this period, we welcomed 847,410 visits (2022-2023: 667,253) across our National Museum sites, marking a 27% increase on the previous year’s performance. This included the first full operational year for HMS Caroline since her closure in 2020, and a complete year of operation of HMS Warrior following its 3- month closure period in 2022-23 for essential maintenance. Performance at Portsmouth, Gosport, Hartlepool and Yeovilton saw revenue levels that were broadly in line with pre-pandemic performance and the group closed out the year 23% ahead of target ticket income.

==> picture [428 x 230] intentionally omitted <==

----- Start of picture text -----
847k Site Visits in 2023-24
a Portsmouth Galleries, 181k a HMS Warrior, 135k HMS Victory, 231k
a Fleet Air Arm Museum, 86K | NMRN Hartlepool, 53k a Royal Navy Submarine Museum 75k
a Explosion! 31k a HMS M33 36k a HMS Caroline 19k
----- End of picture text -----

The Association of Leading Visitor Attraction’s 2023 visitor data highlighted a 33% increase in visitors for the Fleet Air Arm Museum (only one other attraction in the region has had higher growth) and a 15% increase for Hartlepool based on pre-COVID admission numbers. The data also recognised Portsmouth Historic Dockyard as the third most visited paid attraction in England outside of London (behind Stonehenge and the Roman Baths).

The charitable company operates Portsmouth Historic Dockyard under a joint venture (Portsmouth Historic Dockyard Operations) with the Mary Rose Trust. This partnership agreement was put in place in 2020 to create

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NMRN Operations (A company limited by guarantee) Company number: 09988314

a ticket product to drive growth in sales, increase revenue and simplify the visitor offer. It provides a cohesive, consistent, and excellent customer service experience that tracks across all of our customer touchpoints. Its aim is to support financial sustainability, by maximising on income and exploiting business efficiencies. It also shares knowledge and expertise to explore social impact, community engagement and tourism initiatives in support of the city of Portsmouth, embedding collaborative joint working, resulting in better outcomes and improved processes. This period, the partnership really demonstrated its impact, delivering a 24% increase in its contribution on the previous operating year. This unique operating partnership also saw us recognised as the “2024 Partnership of the Year” at the Museums and Heritage Awards and at the Portsmouth News Excellence Awards as “Visitor Attraction/Event of the Year”.

Social Value and Learning

We have supported a number of outreach events, including a Foster Child event in partnership with Portsmouth City Council, creating an activity day in Action Station for children in their care, along with carers and guardians. All families were provided lunch and free access to Portsmouth Historic Dockyard, enabling them to access our Royal Navy story.

In Portsmouth Historic Dockyard, for the second year running through our successful joint venture with the Mary Rose Trust, we offered free annual family tickets to local families whose children are in receipt of Pupil Premium Funding. Working with Portsmouth City Council and Gosport Schools, this programme enabled the most disadvantaged young people in the Portsmouth and Gosport area to access our incredible history free of charge. Set against the backdrop of the Cost of Living Crisis and challenging trading environments, this initiative demonstrates both partners’ commitment to delivering social impact as well as commercial success. Families have shared what a positive impact this had, and we already anticipate repeating and extending the scheme for 2024-25. A Central South Business Awards 2024, Community Hero nomination was received in recognition of this programme.

At HMS Caroline, we offered free visits to schools in areas of local income deprivation. Community groups were also invited to visit the site, with very positive feedback from the Action Mental Health EVOLVE Group around the inclusivity of the exhibition.

“Active Aviators” is a programming partnership at Fleet Air Arm Museum with Aggie Westons, a registered charity that provides family support to those serving in the Royal Navy, through pastoral work and practical projects. Through this monthly programme, we provided crafts, sing-alongs, toys and games, in a safe and secure environment, with an average 80% of attendees represented by families from RNAS Yeovilton.

We have engaged 23,704 pupils and students in formal learning (2022-23: 25,694). Our sites have continued to offer a range of activities for students to engage with our ships and collections, including Discovery Visits, Discover More and Discover Live. Portsmouth Historic Dockyard ran a series of Discover Live sessions in June 2023 to compliment the Armada Maps exhibition. Targeted at KS1-3, these sessions focussed on object handling and archive materials to learn about the maps and the Armada itself.

Fleet Air Arm Museum also hosted our annual training collaboration with Bridgwater College, EDF UK and Magnox, with 23 Maintenance Operations Engineering Technician (MOET) apprentices participating in our projects as part of their course Condition Monitoring Maintenance unit. The sessions, facilitated by our staff and volunteers, challenged the apprentices with scenarios such as a major incident, combat situation, decommissioning and recommissioning, as well as taking an out-of-service aircraft from the museum and uncovering what maintenance was required to put it back into working order. From this work, the apprentices were able to draw parallels between key skills needed in the aviation industry and their own nuclear-specific roles.

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NMRN Operations (A company limited by guarantee) Company number: 09988314

At NMRN Hartlepool, we worked with a local Academy to provide supported work placements for students with Special Educational Needs, preparing the young people to transition into the workplace. This will be further developed through a recently awarded grant from the Association of Independent Museums, Connected Communities fund. This work will focus on developing our volunteering programme with SEN audiences, positioning them to influence and engage with our site redevelopment plans at the same time as combating loneliness and isolation.

HMS Caroline was awarded one of the coveted slots from National Historic Ships as ‘Static Flagship of the Year 2023’ in recognition of our public engagement into 2024 (which marks the centenary of her being berthed in Belfast), the level of social media outputs and learning resources for schools.

Over 30,500 people engaged with our public programming activities in Portsmouth and Gosport including gallery interventions, school holiday events, community activities, outreach and regular early years programming. Highlights from the large scale events included Heritage Open Days, the Christmas Ship and Stargazing which brought in new audiences and highlighted the collections in innovative ways.

Our STEM offer for informal learners has continued to evolve and grow with both large scale one off events and regular programming designed to explore links with the Royal Navy past and present. Events such as STEM in Action, Creepy Conservation, Worlds Beneath the Waves lectures and Little Engineers have offered a wide range of interactive activities for audiences of all ages. The success of Little Engineers has inspired a vision for a new programme aimed at early years, families and home educators which will be developed in the coming months.

Volunteers

The National Museum has a dedicated and committed volunteer team, which includes lived experience of service in the Royal Navy, the Royal Marines and the other military services. Our volunteers add significant value to our work, with the number of volunteers in the period at just over 300 individuals. Our volunteers were involved in a diverse range of projects and activities. Notably, volunteers were an integral part of the ‘National Treasures: Armada Maps’ exhibition, helping to bring the maps to life. They worked with our collections to help digitise and conserve them, as well as enhancing the visitor experience on our historic ships, submarines, with our aircraft and in gallery spaces and supporting exhibitions and events.

Supporting the National Museum’s Sponsor - The Royal Navy

The National Museum provides a unique perspective to the heritage, history, culture and traditions of the Royal Navy, and the close relationship between the museum and its sponsor organisation is essential to the effective delivery of the museum’s purpose. During 2023-24, we have worked successfully with the Royal Navy to host events, support personnel and help with recruitment. In turn, the Royal Navy has supported us at STEM events, community projects and networking groups. Our work has helped the National Museum establish a very effective Royal Navy networking group, which has supported exhibitions, tours of historic vessels, and events, and has also supported veterans to become part of the National Museum community. Highlights included:

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Communications

We continued to monitor our digital communications using our ‘meaningful engagement’ model, reflecting not just views of digital content but meaningful interactions with it. Our strong digital presence grew through the period. Our engagement rate (that is the number of people interacting with a social media post against those who saw it) was 5% above industry average of between 1-3%. Due to the internal changes within the platform X, which prioritises paid and subscriber content over organic, we saw an expected dip in engagement, but gained 18 thousand new followers during this year, reaching 21 million people with our content.

In April 2023, we launched our new Portsmouth Historic Dockyard website. This, along with upgrades to the Google Analytics platform, meant that we altered the way in which we report our website statistics, breaking out the National Museum’s website separately to the Portsmouth Historic Dockyard website and our ticketing web store. Across all three platforms we have seen 1.2 million visits, in line with the previous year’s results.

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Media coverage across the National Museum reached an audience in excess of 40 million people, up from 24 million the year before, realising £8.4M in Advertising Value Equivalent (2022-23: £7.0M). Highlights of our press coverage included:

Exhibitions

We have drawn on a mixture of external and intergroup grant funding, partnership support and use of reserves to deliver a special exhibitions programme and improvements to our permanent exhibitions. These have helped us reflect on the link between the Navy and the Nation across the centuries and to improve our representation of the current Royal Navy and its people. Our work to develop our exhibitions has included:

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Collections and Research

This period has seen major advances in collections access, collections information, and the external recognition of the National Museum’s standards.

Our Collections Portal www.nmrn.org.uk/collections provides access to a growing database of over 400,000 catalogue records from the National Museum’s collection, many with supporting images. The portal is already attracting an average of 2,000 users a month, with multiple searches which help us understand areas of research interest. Investment and development of the National Museum’s Digital Asset Management System (DAMS) has also continued and is fundamental to the success of the collections portal, now hosting over 100,000 images.

The National Museum’s archive collections and service have received welcome external recognition. The National Archives have awarded Archive Accreditation status, and Arts Council England conferred Museum Accreditation status on NMRN Hartlepool and HMS Caroline in 2023.

The National Museum has continued to loan our collections extensively, with over 100 loan agreements covering in excess of 900 items. Our ability to accept new material on loan from private donors for exhibition had previously been restricted by commercial insurance costs; however, with the support of the Ministry of Defence and Arts Council England, we were admitted to the Government Indemnity Scheme. The scheme provides indemnity for loaned objects made accessible to the public in temporary exhibitions, on long-term loan or loans for study and research and removes the need for commercial insurance for these objects.

In this period, we considered 580 separate offers to donate material, of which 254 offers were accepted, running to thousands of individual items. At the same time, we have continued to review the Collection to ensure resources are used most efficiently, with the managed disposal of duplicated collections in our library holdings reducing our stock by 4,000 individual volumes.

Highlights of our conference, seminar and research activity have included:

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Conservation and Historic Ships

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NMRN Operations (A company limited by guarantee) Company number: 09988314

public display and access. We completed a scoping of conservation work required and the first stage of contractor led conservation activity will commence in the next period.

National Museum of the Royal Navy Trading

Our subsidiary company, the National Museum of the Royal Navy Trading, operates across all of the National Museum’s sites, delivering non-primary purpose commercial activities such as retail, catering, publishing guidebooks, venue hire, commercial immersive experiences and brand licensing. We understand that a great shop and fantastic café are essential to a visit, and a private event in one of our unique venues creates long-lasting memories. The contribution generated from these activities is an essential income stream to support our wider purposes. The Trading Company delivered income of £2,302,000 (2022-23 restated: £2,169,000) generating a gift aided contribution to the charitable company of £460,000 (2022-23: £444,000).

Joint Venture with the Mary Rose Trust

Our joint venture vehicle, Portsmouth Historic Dockyard Operations Ltd (company number: 127998360), has continued to act as agent for the sale of tickets for NMRN Operations and the Mary Rose Trust, with the distribution of sales revenue and share of costs on an agreed split. The rolling 3-year agreement has gone from strength to strength, providing stability and a shared stake in improvement and development of the business.

Through the joint venture, and the efforts of the teams from the Mary Rose Trust and NMRN Operations working in close partnership, we were able to provide a revised and simplified ticket offer, new pricing, single point of entry for visitors and refreshed branding for Portsmouth Historic Dockyard. The ticket and pricing strategy has also delivered increases in yield which has been vital in a period when capacities have been limited by government restrictions and when many visitor markets were not operating. The push of website sales increased ticket sales and gift aid conversion rates. Key marketing campaigns for the period

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NMRN Operations (A company limited by guarantee) Company number: 09988314

were based on investments made by each charitable company: ‘World Beneath the Waves and the 4D Diving the Mary Rose experience.

Plans for Future Periods

National Museum of the Royal Navy Strategy: 2022-2027 and beyond

In 2022, the National Museum of the Royal Navy’s Trustees took a step back to develop a refreshed approach to lead us into the next 10 years and beyond. This new strategy, containing a long-view vision for the National Museum in 2035, is set out at www.nmrn.org.uk/news/national-museum-royal-navy-strategy-2022-2027-andbeyond. It sets out how we will deliver our vision and mission through three strategic aims, sustainability, audiences, and collections, and recognises that none of this will be achieved without the skills, dedication and hard work of our people. The strategy is underpinned through the annual business planning cycle that sets out the priority and phasing of operational and project delivery for NMRN Operations each year.

Sustainability

Our key focus for the year ahead will be to develop and implement our Sustainability Strategy, to include delivery of environmentally and financially sustainable operations, and reduce our carbon footprint. Our corporate plan will be linked to the United Nations Sustainable Development Goals to highlight why our plans are important and the impact they have on our communities, climate and natural resources. We will continue to build our own financial resilience through cautious cost management, fundraising and regeneration or replacement of the income streams and commercial activities damaged by the continuing fragile UK economy.

The National Museum will continue to engage with Navy Command to ensure its financial framework supports our core operating costs, incurred in delivering activities in the public interest, and an agreed capital strategy which delivers specific, shared outputs and outcomes.

We will continue to build a modest but appropriate free reserve in accordance with our Group Reserves Policy, with the aim of holding the equivalent to 4 months’ core operating costs for the Portsmouth Naval Base activities (the greatest potential area of exposure) as free reserves by the end of 2024-25.

Audiences

We will continue to grow and diversify our audiences onsite and online and explore different Royal Navy story perspectives through our diverse communities and the National Museum’s collections. We will work closely with the Royal Navy to support their Global Navy initiative and offer embedded opportunities to promote the modern service and its message through our sites and activities.

We will implement the National museum’s core linked strategies on Interpretation, Research, Audience Development, Digital and Environment/Sustainability to support a shared transformation across our sites and activities, engaging new and diverse local, national and international audiences. We will develop new and improve existing exhibitions, to ensure our sites and stories remain exciting and vibrant to a diverse audience.

Collections

The National Museum’s commitment to any new capital projects or large acquisitions will be limited to only for those essential to its purpose. We will support the National Museum by prioritising the care, conservation and presentation of our existing collections and sites, including consolidation of collections with partners where resources are duplicated. We will take forward plans for the development and delivery of funded projects including the HMS Victory, NMRN Hartlepool, the new Royal Marines Museum, HMS Caroline, NMRN Portsmouth, Figureheads project and Addressing Empire activities ensuring these are financially resilient to secure long-term sustainability and protect our heritage assets. We will continue to progress our work in ensuring our collection is both physically and digitally accessible.

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NMRN Operations (A company limited by guarantee) Company number: 09988314

People

We will continue to focus on our people, to ensure that our National Museum is recognised as a great place to work, and delivering on our commitments to equity, diversity and inclusion. We will continue to implement our pay policy to pay a minimum of UK Living Wage to our staff. We will continue to provide our “staff voice” through the excellent work of our ‘Working Together Group’. We will support the development of our teams through our people plans, focusing on health and wellbeing, talent management and workforce planning.

Principal Risks and Uncertainty

A principal risk faced by the charitable company centres around the ongoing uncertainty of future income streams arising from the residual impact of the economic recession, and a reduction in the Grant In Aid funding that will be available to the National Museum in future years. We will seek to mitigate this risk by continuing to support the National Museum in development of group strategies to diversify income streams, grow revenue and seek support through fundraising activities.

The risk of major project delivery failure, through delays, cost overrun, excessive operating costs, fundraising shortfall, impact on cash flow, and quality of project, will be mitigated as we continue to develop and embed governance and oversight of key projects through our Programme Board and ensure all major projects follow our standard project management methodology. Improvements will continue to be made to project cashflow forecasting and “in operation” business cases and budgeting for all major projects.

The risk of failure to meet our legislative obligations under the Environment Act will be mitigated through supporting the National Museum in developing its sustainability strategies to support the net zero targets introduced by the Government and to work with its partners to reduce its environmental impact across its whole estate. We will embed sustainability, including environmental objectives and risks into our decision making and project evaluation processes.

The risk of cyber-attack as witnessed at other organisations has been heightened and plans have been shared with the National Museum on approaches to be taken to mitigate this, including cost, resources and expert advice.

Post balance sheet events

There are no post balance sheet events.

Financial Review

Statement of Financial Activities for the Year Ended 31 March 2024

Total incoming resources for NMRN Operations for the year amounted to £18,426,275 (2022-23 restated: £28,429,077). This included operating grants and project grants, admissions income (including gift aid), voluntary donations and trading activity through the subsidiary National Museum of the Royal Navy Trading. Admissions income, including charges for services, for the year increased by 16% to £7,055,089, but this was offset by decreased grant funding received from the National Museum to support our operations. The movement in incoming resources on the prior year reflects the reduction in grant funding for correlating project delivery activity, in particular in relation to the long-term HMS Victory Preservation project and the purchase of the Vision Retail Park in Hartlepool.

Total resources expended for 2023-24 amounted to £19,131,395 (2022-23: £17,951,652), representing operating and project costs, trading and fundraising activity. The movement in resources expended reflects increased site, premises and staff costs as a result of inflationary pressures and cost of living pay awards.

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NMRN Operations (A company limited by guarantee) Company number: 09988314

After gains of £952,054 (2022-23: gains of £3,533,098) on the revaluation of fixed assets and actuarial gains on defined benefit pension schemes, the net movement in funds for the year was an increase of £246,934 (202223 restated: £13,950,523).

Balance sheet

The net assets, including pension fund asset, as at 31 March 2024 amounted to £39,406,003 (2023 restated: £39,159,069). Of this total, £20,011,286 related to restricted funds, £19,158,753 was unrestricted and designated funds. A further £235,964 related to non-charitable trading funds.

Reserves

The Trustees regularly monitor the levels of reserves and seek to take correction action as necessary. As at 31 March 2024, the level of the charitable company's free reserves (defined as net current assets attributable to unrestricted reserves excluding designated funds) stood at £4,792,702 (31 March 2023 restated: £3,563,354).

Under the Group’s governance structure, as nearly the entire Group’s operating costs now flow through NMRN Operations, the policy is that sufficient free reserves are accumulated within NMRN Operations to provide four months’ operating expenditure for the greatest potential area of exposure (Portsmouth Historic Dockyard, including the Gosport sites) by 31 March 2025, increasing to six months’ operating expenditure for the entire National Museum by 31 March 2030 (target £6,950,000). There is no need to accumulate additional free reserves in either the National Museum or the subsidiary trusts and any such reserves held will be appropriately used, as approved by the Board, for the furtherance of charitable objects. The Trustees will continue to seek to improve the free reserves position in NMRN Operations in accordance with the reserves policy through income diversification, consolidation of costs in future periods and the delivery of a budget each year that will deliver a modest surplus.

Auditors

The accounts have been audited by Price Bailey LLP. A resolution to reappoint the auditor will be put to the members at the Annual General Meeting.

So far as the Trustees and Accounting Officer are aware, there is no relevant audit information of which the charitable company’s auditors are unaware. Trustees have taken all the steps necessary to make themselves aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.

Approved by the Board and signed on its behalf by

Mr Richard Hatfield Matthew Sheldon Chairman on Behalf of the Board of Trustees Chief Executive and Accounting Officer Date: 13[th] November 2024 Date: 13[th] November 2024

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Accountability Report

Trustees Report and Governance Statement

This report sets out the arrangements for the governance of the NMRN Operations, including the Board structure for Trustees. The Trustees, who are also the directors of NMRN Operations (“the charitable company”) for the purposes of company law and who served during the year and up to the date of this report are set out on page 3.

The Trustees have due regard to guidance issued by the Charity Commission on public benefit and in its charitable objects, the charity seeks to promote the efficiency and effectiveness of other charities for the public benefit. The charitable company operates fee paying attractions and endeavours to ensure that ticket prices are set at an accessible level, which includes the availability of several types of concessions. The charitable company offers workshops to schoolchildren in support of the National Curriculum, operates community outreach programmes in the local areas for children, their parents and carers, and hosts foreign language school pupils. NMRN Operations’ activities are supported by a team of volunteers numbering 380 who deliver a variety of tasks across the museum.

This report demonstrates how the system of governance and internal control is maintained within NMRN Operations and how the major risks to which the charity is exposed, as identified by Trustees, have been reviewed and systems have been established to mitigate those risks.

The Governance Framework

NMRN Operations is a charity registered with the Charity Commission (registration number 1169061). It is governed by its Memorandum and Articles of Association dated 9 August 2016, which incorporate its charitable objects, the powers of the company and provides for the appointment and re-appointment of directors. Trustees are appointed in accordance with the Charity Commission guidance ‘Finding new trustees: what charities need to know’ and appointments are guided by the principles of the Cabinet Office guidelines ‘Governance Code on Public Appointments’.

The Trustees ensure the distinct legal responsibilities and charitable objectives of NMRN Operations are fulfilled while acting within an overall policy and strategy framework developed by the National Museum of the Royal Navy. The day to day operation of the charitable company within that framework is delegated to the National Museum’s Chief Executive Officer and Executive Directors.

A formal induction process for Trustees is in place which combines all the necessary background reading material including items such as the Memorandum and Articles of Association, copies of minutes of recent meetings, a copy of the Charity Commission publication “The Essential Trustee: what you need to know”, a copy of the National Museum’s strategy and corporate plan and a copy of the Museum Association publication “Code of Ethics for Trustees”, with visits to the National Museum’s sites to meet key members of staff and to discuss current issues. Recent appointees continue to confirm their satisfaction with this process.

Register of Interests

A register of Trustees’ and Executives’ interests is maintained, requiring declaration of any interest, pecuniary or otherwise, in any matter being considered by the Board.

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Equity, Diversity and Inclusion

The charitable company is committed to support the National Museum in improving equity, diversity and inclusion (EDI) across the organisation to become an inclusive museum and workplace for our visitors, trustees, workforce, volunteers and wider delivery partners.

The National Museum is a committed member of Inclusive Employers and made a pledge under the Armed Forces Covenant, holding the silver award.

The National Museum does not tolerate any form of discrimination and believes that everyone has the right to live without fear or prejudice regardless of race, age, gender, disability, sexual orientation, social class, religion and belief. Practising equality of opportunities can sometimes mean treating people differently in order to treat them fairly, for example, by being flexible to meet the needs of working parents and carers, or making reasonable adjustments for individuals with disabilities at various stages of the selection process. We provide interview questions in advance to support neurodiversity and our careers page includes accessible tools such as being able to change the colour contrast and the option for audio descriptions.

We support people who acquire a disability during the course of employment through making reasonable adjustments, that may include adjustments to job roles, workloads, workplace, etc., or that may include additional training and support, as guided by Occupational Health. We also work with the Access to Work Scheme to implement additional training or equipment required to support people with disabilities. We have enhanced our occupational sick pay so that we can offer financial support in these circumstances. We have also increased the number of Mental Health First Aiders available to provide support.

Personal data related incidents

There have been no incidents of data loss involving personal information during the period which required formal reporting to the Information Commissioner’s Office.

System of internal control

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the charity’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically.

The review of the effectiveness of the system of internal controls is exercised through the National Museum of the Royal Navy’s Audit and Governance Committee. This Committee is chaired by a Trustee of the National Museum’s Board of Trustees and draws expertise from other Trustees and committee members, with the executive in attendance as required. The Committee also has access to the independent accountants and internal and external auditors engaged for all companies within the Group, providing review and oversight of the financial control systems and the creation of company and consolidated group accounts.

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Risk Management

The charitable company’s risk register and the responses to risk are managed by the Executive team and overseen by the National Museum’s Audit and Governance Committee as well as the charitable company’s board. In addition, the charitable company has a system of internal review and checks which link to plans and risks.

Mr Richard Hatfield Matthew Sheldon Chairman on Behalf of the Board of Trustees Chief Executive and Accounting Officer

Date: 13[th] November 2024 Date: 13[th] November 2024

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Statement of Trustees’ and Accounting Officer’s responsibilities for the year ended 31 March 2024

The Board of Trustees (who are also directors of NMRN Operations for the purposes of company law) and the Accounting Officer are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

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

Mr Richard Hatfield Matthew Sheldon Chairman on Behalf of the Board of Trustees Chief Executive and Accounting Officer

Date: 13[the ] November 2024 Date: 13[th] November 2024

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NMRN Operations (A company limited by guarantee) Company number: 09988314

Independent auditors' report to the members of NMRN Operations

Opinion

We have audited the financial statements of NMRN Operations (the ‘parent charitable company’) for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Cash Flow Statement and 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).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees’ annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have 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.

Page 21

NMRN Operations (A company limited by guarantee) Company number: 09988314

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 parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act, and relevant regulations made or having effect thereunder.

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 is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the charitable company and the sector in which it operates and considered the risk of the charitable company not complying with the relevant laws and regulations including fraud; in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements, including financial reporting and tax legislation.

Page 22

NMRN Operations (A company limited by guarantee) Company number: 09988314

In relation to the operations of the charitable company this included compliance with Companies Act 2006, Charities Act 2011 and relevant SORP.

The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:

To address the risk of management override of controls, we carried out testing of journal entries and other adjustments for appropriateness. We also assessed management bias in relation to the accounting policies adopted and in determining significant accounting estimates

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 for the audit of the financial statements is located 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 parent charitable companies members, 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 parent charitable 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 parent charitable company and the parent charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Cooper-Davis FCCA ACA (Senior Statutory Auditor)

For and on behalf of Price Bailey LLP 3rd Floor, 24 Old Bond St London W1S 4AP Date: 15 November 2024

Page 23

NMRN Operations (A company limited by guarantee) Company number: 09988314

Consolidated Statement of financial activities (incorporating the income and expenditure account) For the year ended 31 March 2024

Notes
Income from:
Donations and legacies
2
Charitable activities
Admissions
3
Charges for services
Other trading activities
Trading company
4
Investments
Other
5
Total income
Expenditure on:
Raising funds
Fundraising and publicity
6
Trading company
4
Charitable activities:
Museum and visitor operations
7
Grants
9
Total expenditure
Net losses on investments
Net income/(expenditure)
Transfers between funds
Other recognised gains/(losses):
Gains on revaluation of fixed assets
Actuarial gains/(losses) on defined
benefit pension schemes
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
5,866,676
7,005,895
49,194
2,302,016
-
517,529
15,741,310
1,357,142
1,899,259
12,294,082
-
15,550,483
-
190,827
922,806
312,810
81,000
1,507,443
17,887,274
19,394,717		 Restricted
funds
£
2,684,965
-
-
-
-
-
2,684,965
-
-
3,580,912
-
3,580,912
-
(895,947)
(922,806)
558,244
-
(1,260,509)
21,271,795
20,011,286		 2024
Unrestricted
Total
funds
£
£
8,551,641
5,885,783
7,005,895
5,489,241
49,194
600,806
2,302,016
2,169,480
-
889
517,529
350,205
18,426,275
14,496,404
1,357,142
1,318,892
1,899,259
1,776,261
15,874,994
10,862,548
-
4,000
19,131,395
13,961,701
-
(60,000 )
(705,120)
474,703
-
5,322,995
871,054
1,127,646
81,000
485,000
246,934
7,410,344
39,159,069
10,476,930
39,406,003
17,887,274		 Restricted
funds
£
13,932,673
-
-
-
-
-
13,932,673
-
-
3,936,467
53,484
3,989,951
-

9,942,722
(5,322,995)
1,920,452
-

6,540,179
14,731,616
21,271,795		 Restated
2023
Total
£
19,818,456
5,489,241
600,806
2,169,480
889
350,205
28,429,077
1,318,892
1,776,261
14,799,015
57,484
17,951,652
(60,000)
10,417,425
-
3,048,098
485,000
13,950,523
25,208,546
39,159,069

All recognised gains and losses are included in the statement of financial activities

The notes on pages 27 to 46 form an integral part of these financial statements.

Page 24

NMRN Operations (A company limited by guarantee) Company number: 09988314

Consolidated Balance sheet as at 31 March 2024

Restated
Group Group Charity Charity
2024 2023 2024 2023
Notes £ £ £ £
Fixed assets
Tangible fixed assets 14 32,317,234 32,394,512 32,141,115 32,159,740
Investment properties 14 590,000 590,000 590,000 590,000
32,907,234 32,984,512 32,731,115 32,749,740
Current assets
Stocks 15 708,309 662,994 278,249 233,286
Debtors 16 2,904,810 5,226,467 3,134,627 5,744,194
Cash at bank and in hand 5,969,093 2,448,883 5,415,057 2,043,540
9,582,212 8,338,344 8,827,933 8,021,020
Liabilities:
Creditors falling due within one year 17 (3,315,443) (2,320,787) (2,621,009) (2,062,301)
Net current assets/(liabilities) 6,266,769 6,017,557 6,206,924 5,958,719
Total assets less current liabilities 39,174,003 39,002,069 38,938,039 38,708,459
Net assets excluding pension asset/liability Net assets excluding pension asset/liability 39,174,003 39,002,069 38,938,039 38,708,459
Defined benefit pension scheme asset/liability 11 232,000 157,000 232,000 157,000
Net assets including pension fund liability 39,406,003 39,159,069 39,170,039 38,865,459
Funds 18
Unrestricted funds 16,829,107 15,613,012 16,829,107 15,613,012
Revaluation reserve 1,786,000 1,473,190 1,786,000 1,473,190
Designated funds 543,646 507,462 543,646 507,462
Total unrestricted funds 19 19,158,753 17,593,664 19,158,753 17,593,664
Restricted funds 14,873,142 16,691,895 14,873,142 16,691,895
Restricted revaluation reserve 5,138,144 4,579,900 5,138,144 4,579,900
Total restricted funds 20 20,011,286 21,271,795 20,011,286 21,271,795
Non charitable trading funds 235,964 293,610 - -
Total funds 39,406,003 39,159,069 39,170,039 38,865,459

The financial statements were approved by the Trustees and signed on their behalf by

Mr Richard Hatfield Chairman Date: 13[th] November 2024

The notes on pages 27 to 46 form an integral part of these financial statements.

Page 25

NMRN Operations (A company limited by guarantee) Company number: 09988314

Consolidated Cash Flow Statement for the year ended 31 March 2024

Cash flows from operating activities:
Net cash provided by/(used in) operating activities
Cash flows from investing activities:
Income from investments
Purchase of fixed assets
Purchase of investments
Net cash (used in)/provided by investing activities
Increase/(Decrease) in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2023
Cash and cash equivalents at 31 March 2024
Net income/(expenditure) for the reporting period
Depreciation and impairment
Loss on disposal of fixed assets
Loss on investments
Income from investments
(Increase)/Decrease in stocks
(Increase)/Decrease in debtors
(Decrease)/Increase in creditors
Increase/(Decrease) in provisions for liabilities
Net cash provided by/(used in) operating activities
Analysis of cash and cash equivalents
Cash and cash equivalents
Analysis of changes in net debt
Cash and cash equivalents		 Notes
26
Group
Group
2024
2023
£
£
5,969,093
2,448,883
Group
Group
2024
2023
£
£
5,969,093
2,448,883		 Restated
Group
Group
2024
2023
£
£
4,467,260
9,801,051
-
889
(947,050)
(8,100,474)
-
(650,000)
(947,050)
(8,749,585)
3,520,210
1,051,466
2,448,883
1,397,417
5,969,093
2,448,883
(705,120)
10,417,425
2,097,481
1,894,491
-
115,483
-
60,000
-
(889)
(45,315)
(124,743)
2,321,657
(2,030,547)
792,557
(585,169)
6,000
55,000
4,467,260
9,801,051
Charity
Charity
2024
2023
£
£
5,415,057
2,043,540
Charity
Charity
2024
2023
£
£
5,415,057
2,043,540

Page 26

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

1. Accounting policies

1.1. Company information

NMRN Operations is a private company limited by guarantee and incorporated in England and Wales. The registered office is the National Museum of the Royal Navy, HM Naval Base PP66, Portsmouth, Hampshire, PO1 3NH.

NMRN Operations and its group meet the definition of a public benefit entity under section 34 of FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant accounting policy. The principal objectives of the charity are detailed in the Trustees report.

1.2. Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2019.

The financial statements have been prepared on a going concern 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 concern.

The financial statements are presented in sterling which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

Consolidated financial statements have been prepared in respect of the charitable company, its wholly owned subsidiary, the National Museum of the Royal Navy (NMRN) Trading, and its Joint Venture, Portsmouth Historic Dockyard (PHD) Operations Limited. The Consolidated Statement of Financial Activities includes the results of NMRN Trading and the company’s share of the results of PHD Operations Limited as single line items. The consolidated balance sheet includes the net assets of NMRN Trading on a line by line basis and the company’s share of the net assets of PHD Operations Limited as an item within Fixed Asset Investments.

1.3. Going concern

In addition to the revenue it generates, the company receives grant funding from the parent company, the National Museum of the Royal Navy, and other subsidiary trusts within the Group, in respect of its operation of the group’s museums and conservation of heritage assets. Additional Grant in Aid funding was awarded to the National Museum by the Royal Navy in response to the ongoing impact of the Covid-19 pandemic, and supported the National Museum’s cashflows until 31 March 2024. The charitable company’s self-generated income streams and visitor markets have steadily recovered and this additional Grant in Aid funding has ceased. Action has been taken by the Executive to manage the impacts of inflation and the economic recession to ensure the National Museum is financially sustainable into 2024-25 and beyond. The National Museum will continue to engage with Navy Command to ensure its financial framework supports our core operating costs, incurred in delivering activities in the public interest, and an agreed capital strategy which delivers specific, shared outputs and outcomes.

Based on the assurances provided to the National Museum by its sponsor, the Royal Navy, that Grant in Aid funding will continue to be made available, and the work of the Executive on 2024-25 budgets and the 10-year Financial Strategy that is under development, the Trustees and Directors are content that the going concern basis continues to apply.

Page 27

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

1.4. Income

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

Income from investments is included in the year in which it is receivable.

Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.

1.5. Grants receivable

Revenue grants are credited to incoming resources on the earlier date of when they are received or when they are receivable. If a grant or donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the charity’s control and it is probable those conditions will be met in the accounting period.

Grants for the purchase of fixed assets are credited to restricted incoming resources when receivable. Depreciation on the fixed assets purchased with such grants is charged against the restricted fund.

1.6. Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

1.7. Basis of allocation

Cost of generating funds comprises costs incurred in encouraging people and organisations to contribute financially to the charity's work and to promote the Naval Service Museums as visitor attractions.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Charitable expenditure includes expenditure associated with Operations, Collections & Research, and Learning, and include costs directly attributable to each activity. Costs not directly attributable to one activity including the proportion of support costs relating to charitable expenditure have been allocated in proportion to staff costs incurred in the following percentages:

Operations
Collections & research
Learning		 2024
%
77
14
9
100		 2023
%
75
15
10
100

Support costs include central functions and have been allocated to cost categories on a basis consistent with the use of resources.

1.8. Foreign currency transactions

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling at the end of the month preceding the transaction. Exchange differences are taken into account in arriving at the net incoming/(outgoing) resources.

Page 28

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

1.9. Funds

Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of overheads and support costs.

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

1.10. Tangible fixed assets

Tangible fixed assets with a cost or value greater than £2,500 and a useful life exceeding one year are capitalised at historic cost and revalued annually using Ministry of Defence derived indices.

Land and buildings are stated at a valuation of depreciated replacement cost and depreciated over the lease term. A professional valuation is obtained at least every 5 years and indices are used to reflect the change in value in the intervening years.

Depreciation has been provided at rates calculated to spread the cost of each asset over its expected useful life as follows:

Leasehold buildings - over the lease term
Property improvements - over the lease term
Computer and office equipment - 3 - 10 years
Fixtures and fittings - 3 - 20 years
Plant and machinery - 3 - 30 years
Exhibitions - 2 - 10 years
Assets under construction are not depreciated.

Significant Historic Ships

Significant ships are held by separate charitable Trusts within the National Museum group.

Accounting policy for recognition of subsequent expenditure on significant ships

As the National Museum’s operating company, NMRN Operations is responsible for the restoration, preservation, and maintenance of each ship under the terms of the operator agreement. Expenditure incurred by the operating company is recognised on an accruals basis as a liability is incurred. Capital expenditure on plant and machinery not integral to the fabric of the ship is capitalised on the balance sheet of the operating company.

1.11. Assets held by the National Museum of the Royal Navy Trading

The tangible fixed assets of the National Museum of the Royal Navy Trading are stated in the group accounts at historic cost less accumulated depreciation. Depreciation has been provided at rates calculated to spread the cost of each asset over its expected useful life as follows:

1.12. Leased assets

Rentals applicable to operating leases are charged to the Statement of Financial Activities as incurred.

1.13. Investment properties

Investment properties are measured at fair value at each reporting date with changes in fair value recognised in ‘net gains/(losses) on investments’ in the Statement of Financial Activities.

1.14. Stock

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolescence and slow moving items.

Page 29

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

1.15. Basic financial Instruments

The charity's financial assets and liabilities consist of cash and cash equivalents, trade and other debtors, and trade and other creditors. The fair value of these items approximates their carrying value due to their short term value. Unless otherwise noted, the company is not exposed to significant interest, foreign exchange or credit risks arising from these instruments. Term deposits of less than one year are classified as investments within current assets.

1.16. Pensions

The majority of staff of NMRN Operations and its subsidiary are covered by the provisions of a defined contributions group pension plan, the assets of which are held in an independently administered fund and which provides benefits based on the value of the fund.

A small number of staff who have transferred into NMRN Operations under the Transfer of Undertakings (Protection of Employment) Regulations 1981 have retained membership of their former employers' pension schemes, which provide benefits based on final pensionable pay and include the Principal Civil Service Pension Scheme (PCSPS) and the Local Government Pension Scheme (LGPS).

Group Pension Plan

The National Museum operates a Group Pension Plan with employer's contributions being payable at 6% or 10%. Under this plan, a "salary exchange" scheme exists whereby employees may elect to give up the right to receive part of their salary remuneration in return for an additional employer's contribution into the Group Pension Plan of the same amount.

The pension cost charged to the Statement of Financial Activities represents the contributions paid.

Principal Civil Service Pension Scheme (PCSPS)

The PCSPS is an unfunded multi-employer defined benefit scheme but the National Museum of the Royal Navy is unable to identify its share of the underlying assets and liabilities. This scheme has therefore been accounted for as if it were a defined contribution scheme in accordance with Charity SORP (FRS102).

Local Government Pension Scheme (LGPS)

The LGPS is a multi-employer defined benefit scheme.

The National Museum of the Royal Navy is an admitted member of the Hampshire Pension Fund and the Teesside Pension Fund and is able to identify its share of the underlying assets and liabilities. The schemes have therefore been accounted for as defined benefit schemes in accordance with Charity SORP (FRS102).

1.17. Termination benefits

The group recognises a liability for termination benefits at the point where the group is committed to making the payments in return for employee redundancy.

1.18. Restatement of comparative information

Comparative information for 2023 has been restated. This is detailed in note 25 to the accounts.

1.19. Change in presentation

The format of the Statement of Financial Activities and notes 3, 5, 6, 7 and 8 have been simplified to show only those items which are material to the financial statements separately.

Page 30

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

2. Grants and donations received

During the year the following grants and donations were received:

Unrestricted
funds
£
National Museum of the Royal Navy
Operations
4,661,926
Projects
-
Other grants and donations
Fleet Air Arm Museum Trust
-
Heritage Lottery Fund Grant - LCT 7074
-
Hartlepool Borough Council
259,667
HMS Caroline Preservation Company
874,878
HMS Victory Preservation Endowment
Fund
-
HMS Victory Preservation Company
-
Miscellaneous donations and grants
68,005
Legacies
2,200
5,866,676		 Restricted
funds
£
-
640,698
-
-
-
-
1,107,567
665,000
271,700
-
2,684,965		 Total Unrestricted
2024
funds
£
£
4,661,926
5,549,583
640,698
-
-
-
-
-
259,667
309,667
874,878
-
1,107,567
-
665,000
-
339,705
26,533
2,200
-
8,551,641
5,885,783		 Restricted
funds
£
-
800,000
635,815
804,994
3,524,918
-
7,783,648
97,079
280,824
5,395
13,932,673		 Restated
Total
2023
£
5,549,583
800,000
635,815
804,994
3,834,585
-
7,783,648
97,079
307,357
5,395
19,818,456

3. Admissions

Unrestricted
funds
£
Portsmouth Historic Dockyard
5,560,319
Fleet Air Arm Museum
1,004,021
Hartlepool
288,110
HMS Caroline
153,445
7,005,895		 Total
Unrestricted
2024
funds
£
£
5,560,319
4,393,792
1,004,021
809,289
288,110
279,921
153,445
6,239
7,005,895
5,489,241		 Restated
Total
2023
£
4,393,792
809,289
279,921
6,239
5,489,241

Admissions income includes amounts reclaimed from HM Revenue and Customs under the Gift Aid Scheme.

4. Income and expenses from trading activities of subsidiaries

National Museum of the Royal Navy Trading

The company controls the National Museum of the Royal Navy Trading, a company limited by guarantee incorporated in England and Wales. NMRN Trading operates a number of souvenir shops within the Museums and the corporate events.

At the discretion of its directors, NMRN Trading distributes its net profit to NMRN Operations (the parent).

Page 31

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

A summary of the company's trading results is shown below:

Turnover
Cost of sales
Gross Profit
Administration expenses
Other income
Net profit / (loss)
Tax on ordinary activities
Available for distribution
Amount gifted to NMRN Operations
Reserves brought forward
Reserves carried forward
Assets
Liabilities
Retained earnings		 Restated
2024
2023
£
£
2,259,538
2,131,520
(811,186)
(744,604)
1,448,352
1,386,916
(1,088,683)
(1,048,843)
42,478
37,960
402,147
376,033
610
17,186
402,757
474,947
(460,403)
(444,084)
(57,646)
(50,865)
293,610
344,475
235,964
293,610
1,443,860
1,235,134
(1,207,896)
(941,524)
235,964
293,610

5. Other income

Unrestricted
funds
£
Rental income
202,802
Museum & Galleries Exhibition Tax Relief
183,021
Sundry income
131,706
517,529
Cost of generating funds
Unrestricted
funds
£
Staff costs
903,986
Premises expenses
328,876
Fundraising and publicity
124,280
1,357,142		 Total
Unrestricted
2024
funds
£
£
202,802
81,728
183,021
170,110
131,706
98,367
517,529
350,205
Total
Unrestricted
2024
funds
£
£
903,986
890,146
328,876
279,802
124,280
148,944
1,357,142
1,318,892		 Restated
Total
2023
£
81,728
170,110
98,367
350,205
Restated
Total
2023
£
890,146
279,802
148,944
1,318,892

6. Cost of generating funds

Page 32

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

7. Museum and visitor operations

Staff costs
Other staff costs
Marketing
Site costs
Computer costs
Curatorial and exhibition
Depreciation & loss on disposal of fixed assets
Governance and support costs
Project costs
HMS Victory Preservation
Hartlepool project costs
Other project costs
Collections
Operations & Research
£
£
4,197,528
731,856
104,877
19,068
735,815
-
510,578
-
393,850
-
-
397,818
1,555,425
282,804
2,857,724
519,588
10,355,797
1,951,134
1,952,714
-
226,707
-
315,250
-
2,494,671
-
12,850,468
1,951,134		 Restated
Total
Total
Learning
2024
2023
£
£
£
538,361
5,467,745
4,740,611
12,258
136,203
174,845
-
735,815
672,672
-
510,578
338,325
-
393,850
351,831
-
397,818
490,950
181,803
2,020,032
1,844,356
340,970
3,718,282
3,242,515
1,073,392
13,380,323
11,856,105
-
1,952,714
2,381,127
-
226,707
249,571
-
315,250
312,212
-
2,494,671
2,942,910
1,073,392
15,874,994
14,799,015		 Restated
Total
2023
£
4,740,611
174,845
672,672
338,325
351,831
490,950
1,844,356
3,242,515

8. Governance and support costs

Collections
Operations
& Research
£
£
Governance costs
Legal and professional
61,975
11,268
Accountancy & payroll
41,101
7,473
Auditors' remuneration
53,950
9,809
Support costs
Repairs and maintenance
395,547
71,918
Insurance
425,737
77,407
Premises costs
1,550,416
281,894
Travelling
115,654
21,028
Bank charges and interest
84,842
15,426
Health and safety
13,171
2,395
Subscriptions
54,200
9,855
Sundry expenses
61,131
11,115
2,857,724
519,588		 Learning
£
7,244
4,804
6,306
46,233
49,762
187,929
13,518
9,917
1,539
6,335
7,383
340,970		 Total
2024
£
80,487
53,378
70,065
513,698
552,906
2,020,239
150,200
110,185
17,105
70,390
79,629
3,718,282		 Restated
Total
2023
£
168,784
46,960
56,767
635,348
459,860
1,468,963
157,186
84,935
17,573
54,948
91,191
3,242,515

Page 33

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

9. Grants payable

Grants payable
**Unrestricted ** Restricted Total Unrestricted Restricted Total
funds funds 2024 funds funds 2023
£ £ £ £ £ £
National Museum of the Royal Navy - - - 4,000 53,484 57,484

10. Employee costs

Employee costs
Employment costs
Wages and salaries
Social security costs
Defined contribution pension costs
Defined benefit pension costs
Recharges		 Group
2024
£
7,194,448
576,551
460,648
15,172
-
8,246,819		 Group
2023
£
6,163,311
506,694
407,067
61,525
-
7,138,597		 Charity
2024
£
7,194,448
576,551
460,648
15,172
(755,812)
7,491,007		 Charity
2023
£
6,163,311
506,694
407,067
61,525
(610,440
6,528,157

Key management personnel

Key management personnel are employed by the parent charity.

Higher paid employees

The number of employees who earned more than £60,000 during the year was as follows:

2024 2023
£60,001 to £70,000 5 3
£70,001 to £80,000 2 1
Number of employees
The average monthly number of employees during the period was as follows:
2024 2023
Fundraising 3 4
Charitable activities 342 353
Governance 4 3
349 360

During this financial year 11 redundancies were identified (2023: Nil) and contractual/redundancy costs of £Nil (2023: £Nil) were paid in the year with £99,909 (2023: £Nil) being accrued at 31 March 2024.

Trustees' emoluments

No trustees received remuneration during the period. Two trustees were reimbursed for travel expenses totalling £610 (2023: Five Trustees £898).

Page 34

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

11. Pensions

NMRN Operations contributes to a Group Pension Plan and is a participating employer in the Principal Civil Service Pension Scheme and the Local Government Pension Scheme (including Hampshire Pension Fund and Teesside Pension Fund).

Principal Civil Service Pension Scheme (PCSPS)

The PCSPS is an unfunded multi-employer defined benefit scheme but NMRN Operations is unable to identify its share of the underlying assets and liabilities. A full actuarial quadrennial valuation was carried out at 31 March 2016. Details can be found in the resource accounts of the Cabinet Office; Civil Superannuation: - - (www.civilservicepensionscheme.org.uk/about us/scheme valuations/)

For 2023-24, employer contributions were payable to the PCSPS at one of four rates in the range 26.6% to 30.3% of pensionable earnings, based on salary bands. The scheme actuary reviews employer contributions every four years following a full scheme valuation. The contribution rates are set to meet the cost of the benefits accruing during 2023-24 to be paid when the member retires and not the benefits paid during this period to existing pensioners.

Local Government Pension Scheme (LGPS)

The LGPS is a multi-employer defined benefit scheme.

Hampshire Pension Fund

The National Museum is an admitted member of the Hampshire Pension Fund. This fund has over 191,000 members. The actuaries of the fund are AON Hewitt. In the year ended 31 March 2024 two staff participated in the scheme. The disclosures below relate to the funded liabilities within the Hampshire Pension Fund (the ‘Fund’) which is part of the LGPS. The funded nature of the LGPS requires the National Museum and its employees to pay contributions into the Fund, calculated at a level intended to balance the pension’s liabilities with investment assets.

Assumptions

The latest actuarial valuation was carried out at 31 March 2022. Liabilities have been estimated by the independent qualified actuary on an actuarial basis using the roll-forward approach. The principal assumptions used by the actuary in updating the latest valuation of the Fund for FRS 102 purposes are shown below.

Teesside Pension Fund

The National Museum is an admitted member of the Teesside Pension Fund. This fund has over 71,500 members. The actuaries of the fund are AON Hewitt. In the year ended 31 March 2024 six staff participated in the scheme. The disclosures below relate to the funded liabilities within the Teesside Pension Fund (the ‘Fund’) which is part of the LGPS. The funded nature of the LGPS requires the National Museum and its employees to pay contributions into the Fund, calculated at a level intended to balance the pension’s liabilities with investment assets.

Assumptions

The latest actuarial valuation was carried out at 31 March 2022. Liabilities have been estimated by the independent qualified actuary on an actuarial basis using the roll-forward approach. The principal assumptions used by the actuary in updating the latest valuation of the Fund for FRS 102 purposes are shown below.

Hampshire Pension Hampshire Pension Teesside Pension Teesside Pension
Fund Fund
2024 2023 2024 2023
% p.a. % p.a. % p.a. % p.a.
Pension Increase Rate (CPI) 2.75% 2.60% 2.80% 3.00%
Salary Increase Rate 3.75% 3.60% 3.80% 4.00%
Discount Rate 4.85% 4.50% 4.80% 4.75%

Page 35

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

Hampshire Pension Hampshire Pension Teesside Pension Teesside Pension
Fund Fund
2024 2023 2024 2023
% p.a. % p.a. % p.a. % p.a.
Asset allocation
Equities 55% 76% 71% 70%
Bonds 37% 16% 0% 0%
Property 7% 7% 25% 23%
Cash 1% 1% 4% 7%
2024 2023 2024 2023
£(000) £(000) £(000) £(000)
Reconciliation of funded status to the Balance Sheet
Fair value of assets 468 423 650 618
Present value of funded liabilities 372 350 514 534
Pension asset recognised on the balance sheet 96 73 136 84
Amounts recognised in the Statement of Financial Activities
Operating cost:
Current service cost 15 33 7 23
Financing cost:
Interest on net defined benefit liability (3) 2 (4) 5
Pension expense recognised in the Statement of Financial
Activities 12 35 3 28
Asset gains/(losses) arising during the period 20 (38) 34 (169)
Liability gains/(losses) arising during the period 13 222 14 470
Gains/(losses) recognised in the Statement of Financial Activities 33 184 48 301
Changes made to the present value of the defined benefit
obligation during the accounting period
Opening defined benefit obligation 350 520 534 956
Current service cost 15 33 7 23
Interest expense on defined benefit obligation 16 14 25 26
Contributions by participants 5 5 2 3
Actuarial (gains)/losses on liabilities (13) (222) (14) (470)
Net benefits paid out (1) - (40) (4)
Closing defined benefit obligation 372 350 514 534
Changes to the fair value of assets during the accounting period
Opening fair value of assets 423 444 618 759
Interest income on assets 19 12 29 21
Remeasurement gains/(losses) on assets 20 (38) 34 (169)
Contributions by the employer 2 - 7 8
Contributions by participants 5 5 2 3
Net benefits paid out (1) - (40) (4)
Closing fair value of assets 468 423 650 618
Actual return on assets
Interest income of assets 19 12 29 21
Gain/(loss) on assets 20 (38) 34 (169)
Total amount recognised in the Statement of Financial Activities 39 (26) 63 (148)

Page 36

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

Group Pension Plan

The National Museum operates a Group Pension Plan with employer's contributions being payable at 6% or 10%. Under this plan, a "salary exchange" scheme exists whereby employees may elect to give up the right to receive part of their salary remuneration in return for an additional employer's contribution into the Group Pension Plan of the same amount.

The cost relating to each scheme is set out below. There were no outstanding or prepaid contributions at the balance sheet date:

Defined contribution schemes
Group scheme
PCSPS
Defined benefit schemes
LGPS - Hampshire Pension Fund
LGPS - Teesside Pension Fund		 2024
£
443,234
17,414
11,645
3,527
475,820		 2023
£
389,966
17,493
35,000
26,525
468,984

12. Net outgoing resources for the year

Net outgoing resources for the year
2024 2023
£ £
Net outgoing resources for the year is stated after charging:
Depreciation and other amounts written off tangible assets 2,020,032 1,528,071
Auditors' remuneration 28,565 18,787

13. Taxation

The activities of the company fall within the exemptions afforded by the provisions of the Corporation Tax Act 2010. Accordingly there is no tax charge in these accounts. The company's trading subsidiary is subject to corporation tax.

Page 37

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements

for the year ended 31 March 2024

14. Fixed assets

Group

Cost or valuation
At 1 April 2023
Additions
Transfers
Revaluation
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
Revaluation
On disposals
At 31 March 2024
Net book values
At 31 March 2024
At 31 March 2023		 Computer
Investment
Short leasehold
Assets under
Improvements
& office
properties land & buildings
construction
to property
equipment
£
£
£
£
£
590,000
7,867,278
-
8,938,894
662,576
-
-
564,973
-
33,476
-
-
-
-
-
-
(26,496)
-
(12,882)
18,264
-
-
-
-
-
590,000
7,840,782
564,973
8,926,012
714,316
-
174,921
-
903,642
487,628
-
174,899
-
234,372
117,444
-
(21)
-
(196)
13,044
-
-
-
-
-
-
349,799
-
1,137,818
618,116
590,000
7,490,983
564,973
7,788,194
96,200
590,000
7,692,357
-
8,035,252
174,948		 Fixtures &
Plant &
fittings
machinery
£
£
4,413,063
13,044,588
37,428
353,696
-
-
225,655
716,726
-
-
4,676,146
14,115,010
1,784,612
1,809,846
265,790
842,309
87,175
100,480
-
-
2,137,577
2,752,635
2,538,569
11,362,375
2,628,451
11,234,742		 Exhibition
costs
£
3,537,509
159,576
-
198,286
-
3,895,371
908,747
462,667
48,017
-
1,419,431
2,475,940
2,628,762		 Total
£
39,053,908
1,149,149
-
1,119,553
-
41,322,610
6,069,396
2,097,481
248,499
-
8,415,376
32,907,234
32,984,512

Page 38

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements

for the year ended 31 March 2024

Charity

Cost or valuation
At 1 April 2023
Additions
Transfers
Revaluation
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
Revaluation
On disposals
At 31 March 2024
Net book values
At 31 March 2024
At 31 March 2023		 Computer
Investment Short leasehold
Assets under Improvements
& office
properties land & buildings
construction
to property
equipment
£
£
£
£
£
590,000
7,867,278
-
8,938,894
662,576
-
-
564,973
-
33,476
-
-
-
-
-
-
(26,496)
-
(12,882)
18,264
-
-
-
-
-
590,000
7,840,782
564,973
8,926,012
714,316
-
174,921
-
903,642
487,628
-
174,899
-
234,372
117,444
-
(21)
-
(196)
13,044
-
-
-
-
-
-
349,799
-
1,137,818
618,116
590,000
7,490,983
564,973
7,788,194
96,200
590,000
7,692,357
-
8,035,252
174,948		 Fixtures &
Plant &
fittings
machinery
£
£
4,299,172
12,785,733
18,632
353,696
-
-
225,655
716,726
-
-
4,543,459
13,856,155
1,748,888
1,707,596
239,253
791,397
87,175
100,480
-
-
2,075,316
2,599,473
2,468,143
11,256,682
2,550,284
11,078,137		 Exhibition
costs
£
3,537,509
159,576
-
198,286
-
3,895,371
908,747
462,667
48,017
-
1,419,431
2,475,940
2,628,762		 Total
£
38,681,162
1,130,353
-
1,119,553
-
40,931,068
5,931,422
2,020,032
248,499
-
8,199,953
32,731,115
32,749,740

Land and buildings previously owned by the Royal Navy Submarine Museum were revalued at 6 May 2022 by Avison Young in accordance with the stated accounting policy. The revaluation was conducted by a qualified surveyor on a depreciated replacement cost basis and in accordance with the RICS Valuation – Global Standards 2022 (the Red Book). The Investment Property was revalued at 31 March 2023 by Lambert Smith Hampton on the basis of market value in accordance with the RICS Red Book Global Standards.

Page 39

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

15. Stocks

Group
2024
£
The amounts attributable to the different categories are as follows:
Goods for resale
517,704
HMS Victory arisings
190,605
708,309
16.
Debtors
Group
2024
£
Amounts falling due within one year:
Trade debtors
198,547
Other debtors
249,780
Prepayments and accrued income
955,025
VAT
136,011
Amount due from associated companies
1,365,447
2,904,810		 Group
2023
£
472,389
190,605
662,994
Restated
Group
2023
£
225,570
217,900
592,610
223,512
3,966,875
5,226,467		 Charity
2024
£
87,644
190,605
278,249
Charity
2024
£
139,719
191,442
822,753
136,011
1,844,702
3,134,627		 Charity
2023
£
42,681
190,605
233,286
Restated
Charity
2023
£
141,118
155,535
574,959
280,418
4,592,164		 Charity
2023
£
42,681
190,605
233,286
5,744,194

17. Creditors: amounts falling due within one year

Trade creditors
Other taxes and social security
Other creditors
Deferred income
Amounts due to associated companies
Accruals		 Group
2024
£
846,505
290,313
83,480
166,022
28,999
1,900,124
3,315,443		 Group
2023
£
631,567
124,740
243,913
142,981
23,918
1,153,668
2,320,787		 Charity
2024
£
783,390
222,412
29,263
49,468
28,999
1,507,477
2,621,009		 Charity
2023
£
609,449
124,740
199,589
36,298
23,918
1,068,307
2,062,301

Page 40

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

18. Analysis of net assets between funds

Tangible
Fixed
Assets
£
Restricted funds
19,140,710
Unrestricted funds
13,590,405
Designated funds
-
32,731,115
Non charitable trading funds
176,119
Total
32,907,234
Included in the above figures is the revaluation reserve:
Revaluation reserve
6,924,144
Tangible
Fixed
Assets
£
Restricted funds
19,383,892
Unrestricted funds
13,365,848
Designated funds
-
32,749,740
Non charitable trading funds
234,772
Total
32,984,512
Included in the above figures is the revaluation reserve:
Revaluation reserve
6,053,090
Unrestricted funds
At
Incoming
Outgoing
1 April 2023
Resources
Resources
£
£
£
Unrestricted funds
17,086,202
13,860,037 (13,630,246)
Designated funds
507,462
18,682
-
17,593,664
13,878,719 (13,630,246)
Non charitable trading funds
293,610
2,281,038
(2,338,684)
Consolidation adjustments
-
(439,425)
439,425
17,887,274
15,720,332 (15,529,505)		 Net
Pension

Current
Scheme
Total
Assets
Asset
2024
£
£
£
870,576
-
20,011,286
4,792,702
232,000
18,615,107
543,646
-
543,646
6,206,924
232,000
39,170,039
59,845
-
235,964
6,266,769
232,000
39,406,003
-
-
6,924,144
Net
Pension
Restated
Current
Scheme
Total
Assets
Asset
2023
£
£
£
1,887,903
-
21,271,795
3,563,354
157,000
17,086,202
507,462
-
507,462
5,958,719
157,000
38,865,459
58,838
-
293,610
6,017,557
157,000
39,159,069
-
-
6,053,090
Gains and
At
Transfers
Losses 31 March 2024
£
£
£
905,304
393,810
18,615,107
17,502
-
543,646
922,806
393,810
19,158,753
-
-
235,964
-
-
-
922,806
393,810
19,394,717

19. Unrestricted funds

Page 41

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements

for the year ended 31 March 2024

Restated
At
Incoming
1 April 2022
Resources
£
£
Unrestricted funds
9,791,593
12,771,008
Designated funds
340,862
-
10,132,455
12,771,008
Non charitable trading funds
344,475
2,169,480
Consolidation adjustments
-
(444,084)
10,476,930
14,496,404
Outgoing
Resources
£
(12,185,440)
-
(12,185,440)
(2,220,345)
444,084
(13,961,701)		 Restated
Gains and
At
Transfers
Losses 31 March 2023
£
£
£
5,156,395
1,552,646
17,086,202
166,600
-
507,462
5,322,995
1,552,646
17,593,664
-
-
293,610
-
-
-
5,322,995
1,552,646
17,887,274		 Restated
Gains and
At
Transfers
Losses 31 March 2023
£
£
£
5,156,395
1,552,646
17,086,202
166,600
-
507,462
5,322,995
1,552,646
17,593,664
-
-
293,610
-
-
-
5,322,995
1,552,646
17,887,274
17,593,664
293,610
-
17,887,274

Designated funds represent funds designated for the PHD Masterplan, NMRN Site Improvement, Preservation of the Historic Fleet and the Kochan Collection.

20. Restricted funds

At
1 April 2023
£
RNM Development fund
6,225,506
HMS Alliance fund
44,996
HMS Caroline fund
55,849
HMS M33 fund
50,579
HMS Warrior 1860 fund
91,365
HMS Victory Preservation fund 10,081,775
LCT 7074 fund
21,391
RMM New Museum
24,457
Hartlepool development fund
(324,440)
Barracuda project fund
19,166
Cobham Hall & Leading Edge
150,000
FAAM Environmental
Sustainability
-
Trincomalee fund
29,778
Other restricted funds (projects)
147,457
Fieldhouse fund
4,653,916
21,271,795		 Incoming
Outgoing
Resources
Resources
£
£
-
(224,295)
30
-
-
-
-
-
61,187
(51,951)
1,774,882
(2,671,558)
-
-
87,760
(73,795)
-
(226,707)
58,005
(62,588)
683
-
564,973
-
10,717
-
126,728
(67,099)
-
(202,919)
2,684,965
(3,580,912)		 Gains and
At
Transfers
Losses 31 March 2024
£
£
£
-
61,317
6,062,528
-
-
45,026
-
-
55,849
-
-
50,579
-
-
100,601
(397,488)
471,207
9,258,818
-
-
21,391
(15,152)
-
23,270
83,236
-
(467,911)
(14,583)
-
-
-
-
150,683
(564,973)
-
-
40,495
(13,846)
(5,046)
188,194
-
30,766
4,481,763
(922,806)
558,244
20,011,286		 Gains and
At
Transfers
Losses 31 March 2024
£
£
£
-
61,317
6,062,528
-
-
45,026
-
-
55,849
-
-
50,579
-
-
100,601
(397,488)
471,207
9,258,818
-
-
21,391
(15,152)
-
23,270
83,236
-
(467,911)
(14,583)
-
-
-
-
150,683
(564,973)
-
-
40,495
(13,846)
(5,046)
188,194
-
30,766
4,481,763
(922,806)
558,244
20,011,286
20,011,286

In 2000 the Royal Naval Museum completed phase I of a major capital development programme to redesign and refit existing galleries and bring new display and office space into use. The movements on the Development fund shown represent the income raised by donations and grants from the National Heritage Memorial Fund and other organisations, less the revenue expenditure and depreciation incurred up to the balance sheet date.

The HMS Alliance fund consisting of funding received for the ongoing maintenance of HMS Alliance.

The HMS Caroline fund is for the conservation of the ship and its development as a visitor attraction. This work has been fully funded by HLF and the Northern Ireland Tourist Board to the National Museum.

The HMS M33 fund is for the conservation and presentation/interpretation of the ship, work which has been primarily funded by the Heritage Lottery Fund (HLF), and supported by funding from Hampshire County Council.

Page 42

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements

for the year ended 31 March 2024

The HMS Warrior 1860 Preservation fund is for the conservation of the bulwarks, work which has been primarily funded by the HLF.

The HMS Victory Preservation fund is for the conservation and ongoing maintenance of the ship, work which is funded by grants from the HMS Victory Preservation Company and the HMS Victory Preservation Endowment Fund.

The LCT7074 fund relates to the restoration of the last Landing Craft (Tank) to take part in Operation Neptune and is primarily funded by the National Lottery Heritage Fund with match funding from other donors.

The RMM New Museum fund represents funding received for the development of a new Royal Marines Museum in Portsmouth Historic Dockyard.

The Hartlepool Development fund includes grant funding from the Tees Valley Combined Authority for the joint redevelopment of NMRN Hartlepool and the surrounding waterfront area, to support the regeneration of Hartlepool.

The Barracuda Project Fund is made up of donations to restore a Barracuda and provides for expenses such as materials.

The FAAM Environmental Sustainability fund represents capital grant funding from the Royal Navy to improve Cobham Hall’s defence against weather conditions and to reduce its energy consumption.

The Trincomalee fund includes donations from the Friends of HMS Trincomalee to support to the preservation, exhibition and promotion of the ship.

The Fieldhouse fund consists of funding received for the improvement and construction of buildings housing exhibits in the Royal Navy Submarine Museum.

Other restricted funds were received towards funding specific projects across the group’s museums.

Transfers between funds

The transfers from restricted to unrestricted funds reflect costs recharged to projects, and the value of tangible fixed assets which have been purchased using restricted funds, but are held for general purpose, in accordance with SORP 2019 section 2.26.

Restricted funds continued

At
1 April 2022
£
RNM Development fund
5,898,588
HMS Alliance fund
44,894
HMS Caroline fund
55,849
HMS M33 fund
50,579
HMS Warrior 1860 fund
91,252
HMS Victory Preservation fund
4,621,840
LCT 7074 fund
(734,325)
RMM New Museum
53,689
Hartlepool development fund
(129,544)
Barracuda project fund
20,490
Cobham Hall & Leading Edge
150,000
FAAM Carrier fund
-
Trincomalee fund
29,778
Other restricted funds (projects)
129,554
Fieldhouse fund
4,448,972
14,731,616		 Incoming
Outgoing
Resources
Resources
£
£
-
(217,926)
102
-
-
-
-
-
800,000
(26,610)
7,980,727
(3,032,937)
804,994
(49,278)
7,881
(37,113)
3,524,918
(249,571)
65
(1,389)
-
-
658,867
(25,983)
-
-
155,119
(150,646)
-
(198,498)
13,932,673
(3,989,951)
Gains and
At
Transfers
Losses 31 March 2023
£
£
£
-
544,844
6,225,506
-
-
44,996
-
-
55,849
-
-
50,579
(773,277)
-
91,365
(457,852)
969,997
10,081,775
-
-
21,391
-
-
24,457
(3,470,243)
-
(324,440)
-
-
19,166
-
-
150,000
(632,884)
-
-
-
-
29,778
11,261
2,169
147,457
-
403,442
4,653,916
(5,322,995) 1,920,452
21,271,795

Page 43

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

21. Revaluation reserve

At 1 April 2023
Revaluation of fixed assets
At 31 March 2024
At 1 April 2022
Revaluation of fixed assets
At 31 March 2023		 £
6,053,090
871,054
6,924,144
£
3,004,992
3,048,098
6,053,090

22. Commitments and contingent liabilities

The company had capital commitments contracted but not provided for in the financial statements amounting to £796,629 (2023: £900,495). There were no contingent liabilities at 31 March 2024 (2023: £Nil).

23. Financial commitments

The charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases as follows:

Within one year
Between one and five years
Greater than five years		 2024
£
406,808
1,627,232
21,338,248
23,372,288		 2023
£
406,808
1,627,232
21,745,056
23,779,096

24. Related party transactions

Parent charitable company and ultimate parent undertaking

NMRN Operations considers the National Museum of the Royal Navy (the “National Museum”), a charitable company (charity number 1126283, company number 06699696), to be its ultimate parent undertaking. NMRN Operations receives grant funding from the National Museum which is separately disclosed in Note 2. Control is exercised by the National Museum being the corporate member of NMRN Operations.

Consolidated accounts can be obtained from the National Museum’s registered office: National Museum of the Royal Navy, HM Naval Base PP66, Portsmouth, Hampshire, PO1 3NH.

Subsidiary company

Subsidiary company
Company Percentage
Company name number shareholding Description
National Museum of the Royal Navy Trading 01261270 N/A Souvenir shops & corporate events

Joint Venture

NMRN Operations is a related party of Portsmouth Historic Dockyard Operations Limited (PHD Operations Limited), a company limited by shares (company number 12799836) and a Joint Venture with the Mary Rose Trust. In the consolidated financial statements, PHD Operations Limited has been treated as a Joint Venture in which the company has a 50% interest.

Page 44

NMRN Operations (A company limited by guarantee) Company number: 09988314

Notes to the financial statements for the year ended 31 March 2024

A summary of the results for the year are as follows:

2024 2023
Company share Total Company share Total
£ £ £ £
Trading income 80,516 161,032 9,842 19,684
Deficit contribution 93,539 187,078 91,667 183,334
Expenditure (174,055) (348,110) (101,509) (203,018)
Net income - - - -
Balance Sheet
Current assets 15,316 30,632 197,548 395,097
Current liabilities (15,315) (30,630) (197,547) (395,095)
Net assets 1 2 1 2

PHD Operations Limited is responsible for the collection and distribution of ticketing income for the two members. The company contributes towards the deficit. During the year this totaled £130,163 (2023: £127,435) and is included within site costs shown in note 7.

25. Prior period adjustment

Comparative information for 2023 has been restated to reflect a £81,728 reduction to NMRN Trading income and a corresponding reduction to the donation due to NMRN Operations. The £81,728 trading income has now been recognised as income of NMRN Operations. Comparative information for 2023 has also been restated to reflect additional grant income of £87,118 relating to 2023, and £85,726 relating to 2022, receivable by NMRN Operations from its parent company, the National Museum. The impact of these adjustments on retained earnings is an increase of £172,844.

The effect of this change on reserves is as follows:

Unrestricted
funds
£
Total funds brought forward
as previously stated
17,714,430
Prior period adjustment
172,844
Total funds brought forward
as restated
17,887,274
Net movement in funds
1,507,443
Total funds carried forward
19,394,717		 Restricted
funds
£
21,271,795
-
21,271,795
(1,260,509)
20,011,286		 2024
Unrestricted
Total
funds
£
£
38,986,225
10,391,204
172,844
85,726
39,159,069
10,476,930
246,934
7,410,344
39,406,003
17,887,274		 Restricted
funds
£
14,731,616
-
14,731,616
6,540,179
21,271,795		 Restated
2023
Total
£
25,122,820
85,726
25,208,546
13,950,523
39,159,069

Page 45