REGISTERED COMPANY NUMBER: 00477145 (England and Wales) REGISTERED CHARITY NUMBER: 210066
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
FOR
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| Company Information | 1 to 3 |
|---|---|
| Chairman’s Statement | 4 to 5 |
| Report of the Directors | 6 to 11 |
| Independent Auditor’s Report | 12 to 14 |
| Consolidated Statement of Financial Activities | 15 |
| Consolidated and Charitable Company Balance Sheets | 16 |
| Consolidated Cash Flow Statement | 17 |
| Notes to the Consolidated Financial Statements | 18 to 29 |
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
COMPANY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors of International Foundation for Aids to Navigation (“the Company”) are the Company’s charity trustees under charity law and the directors of the charitable company. The members of the Board who served in office as Directors during the year and subsequently are detailed below:
KEY MANAGEMENT PERSONNEL:
DIRECTORS
R. G Mason ‡ - Chairman Captain Y. Y. Al Saqer L. M. Evans ‡ Captain D. Hill A. R. W. Marsh MBE FICS A. Ross ‡ Captain I. Scally P. Stanley D. Summerhill A Nordseth ‡ Member of Audit Committee CHIEF EXECUTIVE C. M. Mulvihill REGISTERED OFFICE 4th Floor 8-9 Lovat Lane London EC3R 8DW CHARITY STATUS Company Limited by Guarantee not having a share capital Registered in England and Wales No. 00477145 Registered Charity No. 210066 The word Limited is omitted by licence of the Board of Trade, London BANKERS HSBC, London and Bahrain INDEPENDENT AUDITORS Azets Audit Services, 2[nd] Floor, Regis House, 45 King William Street, London EC4R 9AN SOLICITORS: Farrer & Co, London 66 Lincoln’s Inn Fields, London, WC2A 3LH Campbell Johnston Clark Solicitors 59 Mansell Street, London, E1 8AN INVESTMENT MANAGERS Cazenove Capital 1 London Wall Place, London, EC2Y 5AU
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COMPANY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2024
DIRECTORS
Guy Mason (Chairman)
Mr. Mason was appointed Chairman in November 2022. He joined the Board in March 2022 having retired from BP at the end of 2020 as Senior VP and Global Head of BP Shipping. Whilst in BP Shipping, he served on supervisory boards at UK Chamber of Shipping, P&I Clubs, ITOPF and Oil Spill Response Limited. Prior to his time in shipping, he worked in BP’s Alternative Energy business building new global low-carbon energy businesses. He currently serves as an Independent Director on the Board of AB KN Energies. He has first class degree in Engineering Science and Technology from Loughborough University and is a chartered engineer and a Fellow of the Institute of Mechanical Engineers.
Captain Yousef Al Saqer
Captain Al Saqer was appointed as a Director in November 2010. He is presently Deputy CEO Fleet Operations KOTC, formerly Manager Fleet newbuilding projects and prior to that, Manager fleet marine operations where he was accountable for the day-to-day operations, safety & security of KOTC Fleet. He started his career as Navigation Officer, leading to Master on board KOTC’s VLCC, LPG and Product tankers. He served in numerous roles on shore in Fleet operations, Marine Affairs and risk assessment. He holds a BSc in Maritime Transport Technology and is a Master Mariner.
Louise Evans
Ms. Evans was appointed to the Board in June 2020. She is currently non-executive director and audit committee chair of AB Dynamics plc and World Rugby and senior independent director and audit committee chair of Gooch & Housego PLC. Ms. Evans previously held Group Finance Director roles at Braemar Shipping Services plc and Williams Grand Prix Holdings plc. She has also held senior positions at RPS Group plc and Reynard Motorsport. She qualified as a chartered accountant whilst working with Ernst & Young. Ms. Evans graduated from the University of Wales with a first class degree in Management Science and is a Fellow of the Institute of Chartered Accountants in England & Wales.
Captain David Hill
C aptain Hill was appointed a Director in March 2023. He is presently serving as Fleet Manager with Shell International Trading & Shipping Company. Captain Hill served within the Shell Fleet for more than 17 years, rising to the rank of Captain before transferring ashore where he was appointed Operations Superintendent, later also holding roles of Company Security Officer and Deputy Designated Person Ashore. Following a period working as a Ship Management Consultant as Director of Great Bear Marine, he returned to Shell in November 2018 as Operations Superintendent before becoming Fleet Manager in 2021. Captain Hill is an Associate Fellow of both the Nautical Institute and Royal Institute of Navigation, as well as a Freeman of The Honourable Company of Master Mariners.
Alan Marsh
Mr. Marsh was appointed to the Board in August 2018 and stepped down as Chairman after three years in the post. He is Vice President of The Marine Society and Sea Cadets (MSSC), and Vice President of the RNLI. He sits on the development board of WetWheels UK and is an Associate Member of the Stelios Philanthropic Foundation, a UK Charity. He is a Fellow of the Institute of Chartered Shipbrokers for whom he is a former President. He is also a Younger Brother of Trinity House, Past Prime Warden of the Worshipful Company of Shipwrights and formerly CEO of Braemar Shipping Group PLC as well as a Director of ITIC.
Aslak Ross
Mr. Ross was appointed as a director in March 2022. He is currently Head of Safety and Resilience at APM Terminals (part of A.P. MollerMaersk Group) responsible for HSSE and Business Resilience for APM Terminals. Prior to that he was Head of Marine Standards and Designated Person Ashore in Maersk A/S with responsibility for all Health, Safety, Security, Environmental and Quality matters for the Maersk managed container fleet, including navigational safety. Mr. Ross started his career in Maersk in 1994 as an engineer apprentice and has a degree in marine engineering has also completed a master mariner degree. Aslak has been the Chairman of Container Ship Safety Forum and is currently chairman of TEKNIKA – Copenhagen College of Technology Management and Marine Engineering.
Captain Iain Scally
Captain Scally was appointed a Director in November 2021. He is presently serving as Marine Advisor to NYK’s Global Tanker Quality Group in Tokyo. Formerly with ExxonMobil for 28 years serving as Master and then a variety of shore-based positions including HSQE, Marine Operations and Shipping Manager within LNG operations. Captain Scally commenced his seagoing career with Shell in 1970. He is founding member and Fellow of the Nautical Institute and serves on technical committees within Intertanko and SIGTTO.
Peter Stanley
Mr. Stanley was appointed as a Director in September 2019. He was previously the IFAN CEO from July 2019 to October 2023. Formerly with BP for 30 years working in BP Shipping, HSE, Refining Manufacturing and Supply, Chemicals and finally as Head of Control of BP's Corporate segment. He graduated from Newcastle University obtaining a first-class honours degree in Marine Engineering and has
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an MBA from the Judge Business School, Cambridge University. He is a Chartered Engineer and Fellow of the Institute of Marine Engineering, Science and Technology.
Doug Summerhill
Mr. Summerhill was appointed a Director in November 2020. He is presently Vice President of Chartering for BP Shipping Limited, accountable for the global chartering activity and monetisation of BP’s oil and gas fleet. He is a supply, shipping and trading specialist, having worked in this sector for over 20 years and holds a Bachelor of Business degree from RMIT University, Australia.
Andreas Nordseth
Mr. Nordseth was appointed to the Board in May 2025. He served as Director General of the Danish Maritime Authority from 2009 to 2024 and was Chairman of the EMSA Administrative Board and the Consultative Shipping Group. He holds a Shipmaster’s Diploma and has studied Engineering and Naval Architecture at the Technical University of Denmark as well as Public Policy at Roskilde University. He now works independently as a strategic advisor and board member within maritime governance and sustainability.
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CHAIRMAN’S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024
2024 saw continued market turbulence, volatile energy markets and heightened geopolitical unrest which have impacted global shipping operations. Against this backdrop, the charity maintained a sound and sustainable financial position.
In 2024, IFAN’s charitable objects have driven a continued focus on our two core activities: the management of our funds and their distribution to projects which enhance safety at sea and protect the environment and the reliable operation of navigational aids and associated communication systems in the Gulf.
Management of funds and distributions to projects
We continue to be active in the management of our invested funds aiming for improved income. Our Investment Committee monitors the performance of our fund managers against our investment objects. Following best practice, the Board instructed the Investment Committee to appoint Independent Investment Reviews to operate a tender process for fund managers to manage IFAN’s portfolio. At the conclusion of this process, the Investment Committee recommended to the Board that Cazenove be appointed as IFAN’s Investment Managers. This appointment was made on 1 June 2024.
During 2024, we donated $0.83m to projects which seek to improve safety at sea and protect the marine environment; some of these projects are planned to continue through 2025.
We have our own guidelines to determine which projects we will support having regard to legal imperatives, our resources, and our ability to monitor projects appropriately. We continue to find ways to integrate IFAN into marine regulatory organisations to both better understand the requirements for aids to navigation globally and contribute to the decision-making and guidelines for enhancing safety at sea and protecting the environment. In 2024 we considered potential environmental development projects in their own right,and continue to have regular conversations with competent authorities to explore opportunities to provide aids to navigation for Particularly Sensitive Sea Areas (PSSA).
Since early 2012, we have supported the International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA) in developing its Worldwide Academy (WWA) with contributions amounting to an average of $706k equivalent each year. The WWA provides training packages designed to spread knowledge amongst government representatives. Instruction is given both in respect of a Coastal State’s obligations under international law and the benefits to commerce of having effective aids to navigation. The IALA programme is a rolling programme, progressively expanding the knowledge of aids to navigation throughout the world. Over time, continually improving services will become available to better assist navigators to safely operate their vessels. At IFAN’s Board meeting in November 2024, the Directors agreed to continue support for IALA WWA for a further 3 years. C Mulvihill has been appointed to the WWA board with effect from 26 June 2024 representing major sponsors of the WWA.
We have previously helped The Marine Society and Sea Cadets (MSSC) develop and commission teaching modules to improve mathematical, English language and marine vocational skills amongst mariners, committing a final project payment of $12k in 2023. We did not receive any further requests for funding in 2024 but continue discussing future potential opportunities. We have also funded a significant outreach programme that The Nautical Institute (NI) promoted to improve navigators’ technical skills, committing $443k equivalent since 2014. At the meeting in September 2024, the Board agreed to continue the funding of the production of the NI magazine “Navigator”in the sum of $128k per annum
Since 2016, we have jointly funded a project to improve the aids to navigation and technical capability present in the Pacific Ocean for The South Pacific Community (SPC), the pan-government agency responsible for marine matters in that region. An initial survey was a pre-requisite to the project to improve positioning infrastructure in a region heavily dependent upon marine transport but poorly supplied with aids to navigation. A second phase was completed in 2021, albeit reduced in scope due to the pandemic. We agreed to fund a third phase of the project, which sought to establish a sustainable funding model for the provision of navigational aids in the 13 target island communities. In previous years, $2.78m has been donated with a further $400k paid in 2023. A balance of $196k was paid in July 2024 which represented the final work of Phase 3. Phase 4 is currently under development by the SPC and will be considered by IFAN when brought forward.
IFAN has provided funding to support the Aids to Navigation Fund (ANF) linked to the Straits of Malacca and Singapore (SOMS). The ANF provides funding to support maintenance of the existing Aids to Navigation within the SOMS. We monitor
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the ongoing programme of maintenance and improvement through our participation at the ANF meetings.
OTHER PROJECTS IN 2024
In 2024 our office in Bahrain was successful in securing a new contract to provide refurbishment and installation of AtoNs in Bahraini waters for the Ports and Maritme Affairs division of the Ministry of Transportation and Telecommunications (PMA). The work will commence in 2025.
Beyond our existing projects, we continue to seek new opportunities aligned to our charitable objects and examine funding requests to determine appropriate levels of support to improve the safe passage of ships using global sea routes.
Navigation Aids and communication systems in the Gulf
The navigational services provided by MENAS in the Gulf depend on the collection of Navigation Dues from ship owners. These charges, which had not changed since 2006, fund the costs of providing navigational aids, essential for safety and continued trade in the Gulf. As announced in last year’s report, Navigation Dues charges to shippers were increased with effect from 1[st] October 2023; the increased charges more accurately reflect the overall cost of providing MENAS services to shippers in the Gulf, thereby underpinning the sustainable provision of these services into the future.
We continually seek to ensure awareness of our activities in the Gulf with ship owners through the use of media campaigns and targeted communications.
We also provide regular updates and support to the agents who are collecting the Naavigation Dues on our behalf and have closely involved them in the development of the new IT system development.
In our 2022 annual report, we advised that some elements of our Differential Global Positioning System (DGPS) service in the Gulf were reaching the end of their serviceable life. Having looked at different ways to provide accurate positioning systems in the Gulf we concluded that DGPS remains the best solution. A new DGPS site at Ras Al Khaimah (RAK) has been built and went into operation in May 2024.
In 2021, MENAS successfully achieved the designation of Accredited Training Organisation (ATO). We are now offering technical skills and educational courses in the field of Marine Aids to Navigation (AtoN) for service providers and stakeholders, such as Port Authorities in the Middle East region. Our goal is to help them develop their own resources over time, ultimately improving the safety of navigation throughout the region. The first IALA Level 3 course (AtoN Foundation Course) took place on November 8th and 9th, 2023, at the MENAS Training Centre in Manama. This event was attended by senior representatives from the authorities in the Gulf Cooperation Council (GCC), and it was the first of its kind in this region. We are also planning to deliver the first IALA Level 2 course by mid 2025, which will focus on training Technicians and Engineers responsible for ATON maintenance, such as buoys, lighthouses, and light beacons.”
In 2023 I welcomed Catherine Mulvihill as IFAN’s CEO. Catherine has worked closely with the Board during 2024 bringing new ideas and insights including new charitable funding opportunities for IFAN to consider. We look forward to continuing the next phase of IFAN’s development.
R. G. Mason Chair Date: 18 September 2025.
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INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors of International Foundation for Aids to Navigation (‘the Company’) present their Annual Report together with the audited financial statements for the year ended 31 December 2024 which comply with the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
REFERENCE AND ADMINISTRATIVE INFORMATION
The Company is constituted as a company limited by guarantee with two wholly owned operating subsidiary undertakings, Menas Marine Services Limited and Oman Marine Services Limited. The charitable objectives of The International Foundation for Aids to Navigation (“IFAN”), as stated in the Articles of Association, are 1.The promotion of safety at sea and the protection of the marine environment in the Middle East and worldwide by all charitable means including directly or indirectly providing and maintaining navigation aids, safety systems and safety information; 2 Promoting the use of modern navigation techniques and procedures and other essential maritime skills; and 3.Protecting and improving all aspects of the marine environment
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing documents
The Company is governed by its Articles of Association.
Governing Body
The Directors are appointed in accordance with the Articles of Association by the Members and are mostly drawn from the shipping, maritime and oil industries.
Recruitment and training of Directors
New Directors are briefed on their legal obligations under charity and company law, the content of the Articles of Association and the workings of the Board of Directors and the decision making process.
Organisational management
The Board of Directors, as the charity trustees, are legally responsible for the overall management and control of the Company. The Board of Directors meets at least four times a year.
The Audit Committee is responsible for ensuring that the financial performance of the Company is properly reported that adequate internal control systems are maintained and managing the relationship with the external auditors.
Day to day administration is carried out by the Chief Executive Officer. The operation of the Bahrain facility is undertaken by a senior manager reporting to the CEO in London.
The remuneration of key management personnel is set by the Board and the appropriateness and relevance of the remuneration policy is reviewed annually by the Remuneration Committee.
Group structure and relationships
The Company has two wholly owned non-charitable subsidiaries: Menas Marine Services Limited, which operated a commercial vessel until September 2023, and Oman Marine Services Limited (OMSL), which has a branch in Ras Al Khaimah Freeport Zone for the purposes of renting land for a new DGPS.
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REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024
OBJECTIVES AND ACTIVITIES
Charitable Objectives
The Company’s Objectives, as set out in the Articles of Association, are the promotion of safety at sea and the protection of the marine environment in the Middle East and worldwide by all charitable means, including providing and maintaining navigation aids, safety systems and safety information; promoting the use of modern navigation techniques and procedures and other essential maritime skills; and protecting and improving all aspects of the marine environment.
The objectives are variously achieved for the public benefit through the provision, under the name MENAS, of an aids to navigation service in the Gulf and by assisting other organisations undertaking projects which meet the Company’s charitable objectives of the promotion of safety at sea and the protection of the marine environment in the Middle East and worldwide by all charitable means including directly or indirectly 1.Providing and maintaining navigation aids, safety systems and safety information; 2 Promoting the use of modern navigation techniques and procedures and other essential maritime skills; and 3.Protecting and improving all aspects of the marine environment of promoting safety at sea and protection of the marine environment. We are actively seeking additional organization to support and are in dialogue concerning a number of potential opportunities. We welcome the opportunity to discuss new projects.
The Board is mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2011. In this connection the Board has monitored closely the guidance on public benefit produced by the Charity Commission.
Principal Activities
The Company provides and maintains shore and sea based visible aids as well as radio-based aids for the Gulf region, utilising its equipment and facilities in Bahrain. It continues to review technological advances in marine navigation and environmental protection and to rationalise and modernise its facilities and systems to enable it to provide the service to navigators and the marine industry in the Gulf region effectively and efficiently.
Apart from operating the network of aids to navigation and the Navtex warning system, the charity also continues to operate its DGPS’s throughout the Gulf. The Company has deployed Automatic Identification System (AIS) equipment to both enhance the service to mariners and improve performance monitoring of aids to navigation to help improve safety at sea and the protection of the environment. The Company has begun upgrading the DGPS system following more than twenty years in operation.
The Company has and does make grants to organisations concerned with the promotion and/or provision of safety at sea, including:
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The International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA), to assist with its setting up and running its worldwide training organisation The Worldwide Academy (WWA) to improve knowledge and skills required to identify needs, install and maintain aids to navigation services around the world;
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The Nautical Institute (NI), to expand the circulation of its publication The Navigator, improving knowledge and professionalism in the field of marine navigation;
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The Company supports a project being conducted by the South Pacific Community (SPC), in respect of enabling the Pacific Ocean to access its needs in respect of aids to navigation services and infrastructure;
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UNESCO to include an Ocean Literacy module in Aids to Navigation training.
Previously, we have supported:
- The Straits of Malacca and Singapore Aids to Navigation Fund set up by the three littoral States to maintain and improve the traffic separation system for the Malacca and Singapore Straits.
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REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024
STRATEGIC REPORT
The charity regularly reviews its strategy. Over time and consistent with prevailing general economic conditions and operational needs, the strategy has been to build up reserves to a point that the navigational aids service in the Gulf can be self-sustained and protecting capital to ensure the continued existence of the IFAN Group.
Currently the strategy has several points of focus:
The first priority is to continue the provision of the existing Gulf Aids to Navigations (AtoN) service to international standards. In the absence of the littoral states seeking to take up our offer of assistance to assume responsibility for Gulf AtoN’s we remain obligated to continue our AtoN provision. We believe that national services would be the simplest to be created and we would expect our existing technical operations to have a role either as active participants or contractors in some form. Consistent with the aim of ensuring the navigational aids service in the Gulf can be self- sustained, we continue to raise the profile of the services we provide with ship-owners and encourage them to contribute to the costs of their upkeep through raising navigations dues. We have also increased the level and scope of the Nav Dues with effect from 1st October 2023. This is the first increase that has been made and has been made to ensure we continue to have sufficient funds to provide the Aids to Navigation service.
The second aspect of our strategy is concerned with our investments. We have a financial investment portfolio which has been managed to maintain capital with moderate risk. At the Board meeting on 22nd November 2023, it was agreed that, after a tender process, the managers of the investment portfolio would be changed from Evelyn and Partners to Cazenove. This was implemented with effect from 1[st] June 2024. The continued strategy is to increase active management to improve returns.
ACHIEVEMENTS AND PERFORMANCE
Navigation Dues income for the year was $4.7m (2023: $3.4m). The price charged per NT was increased with effect from 1[st] October 2023. Costs of charitable activities which include all direct costs in relation to buoy maintenance projects and administration costs other than those relating to ship charter income and including all IFAN owned aids to navigation service costs, are $5.0m (2023: $4.1m).
Other income includes buoy maintenance and project income of $691k (2023: $628k) and rental income of $140k (2023: $136k). Rental property costs amounted to $11k (2023: $15k).
The charity made grants and donations of $0.8m during the year (2023: $1.4m) to organisations including IALA, The Nautical Institute and the South Pacific Community.
FINANCIAL REVIEW
The financial position is considered satisfactory by the Directors with net assets of the Group amounting to $67.9m against $65.2m in 2023.
As shown on page 15, in the Consolidated Statement of Financial Activities, the Group incurred a profit for the year of $2.7m (2023: $4.2m) largely as a result of the increase in the market value of investments and the increase of Nav Dues.
Having reviewed the ongoing expected trading conditions and the Group’s projected future cash flows, the Board has a reasonable expectation that the Group has adequate resources to continue its activities for the foreseeable future.
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REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024
Investment policy and objectives
Cazenove were appointed as investment managers during 2024 in order to create greater efficiency to continue to invest in more secure securities and disinvest in securities more exposed because of greater debt levels whilst maintaining a diversified portfolio and matching non-functional currency flows. The application of the investment policy is regularly monitored by the Investment sub-committee which led to this decision being made.
As of 31 December 2024, the market value of invested funds, including uncommitted deposits, was the equivalent of $65.2m (2023: $47.1m).
Reserves Level and Policy and Financial Viability
The policy in respect of the Gulf navigational aids service continues to be one of matching income with expenditure allowing for uncertainties and capital requirements. Provision is made for the progressive shortening of the operating lives of navigational aids as environmental demands increase and technological developments accelerate. Group reserves held as at 31 December 2024 amounted to $67.9m (2023: $65.2m) of which free reserves amounted to $66.2m (2023: $63.7m). The charity’s own reserves amounted to $67.9m (2023: $78.8m).
The Directors consider that reserves will need to be maintained at a level that will provide IFAN with a sustainable future whilst delivering against its objectives. Allowance will be made for the replacement and enhancement of current operational and navigational aids assets and the longer-term possibility of further expansion of navigational aids services into other geographical areas worldwide which would entail significant levels of capital expenditure and working capital.
Principal Risks and Uncertainties
The Directors have undertaken reviews and organised from time-to-time investigations to be reasonably certain that the Company is operating efficiently and effectively, its assets are properly safeguarded against unauthorised use or disposal, proper records are maintained, and that financial information used within the Company, or for publication, is reliable and that the Company complies with relevant laws and regulations. The system of internal controls includes a strategic plan and annual budgets with regular financial and performance reports as appropriate with clear delegation of authority and segregation of duties.
Risk associated with the activities undertaken and objectives laid down by the Board are regularly reviewed, prioritised as to likely impact and likelihood of occurrence and management are satisfied that the applied strategies are appropriate to mitigate those risks.
The Directors are satisfied that during the year all activities have been conducted in compliance with the Company’s HSE policy. Adherence and improvements to the HSE policy has ensured that all operations are conducted in a manner which safeguards the health and safety of employees and avoids damage to the environment. We maintain ongoing reviews of our HSE policy and procedures. During 2024, IFAN remained compliant with the UK Government small business guidelines for cyber security.
The Company has adopted a policy of spreading its investments over a range of instruments in both UK pound sterling and US dollars with the aim of protecting the capital against imported inflation, whilst mitigating the effect of currency movements.
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REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024
Future Plans
The charity has a global remit and focuses its outlook to support projects of international scope.
The charity has a branch in Bahrain undertaking marine contracting activities as part of the provision of a regional aid to navigation service and also has two trading subsidiaries.
The Middle Eastern branch in Bahrain has existed for many years and recently efforts have been successfully made to modernise, expand its resources and offerings. The branch is managed locally with in-house trained personnel and is expanding its skill base to allow a build-up of marine engineering work and AtoN training courses. There is also an office in the United Arab Emirates. Improved services currently being considered include upgraded AIS technology to both monitor the position and performance of floating aids to navigation and collect vessel movement data for billing purposes. We continue to investigate the suitability of elasticated moorings in place of traditional metal chains.
We have executed plans to upgrade the DGPS’s which over twenty years old. Research has been undertaken over several years to ensure that the reliability and performance of new equipment will be optimal. We are, in conjunction with IALA, researching problems suffered by DGPS systems in connection with signal reliability and then researching suitable solutions. We are now in a position to deliver IALA accrediting training courses as an Accredited Training Organisation (ATO).
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REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024
STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES
The members of the Governing Body (who are also the Directors of International Foundation for Aids to Navigation for the purposes of company law) are responsible for preparing the Annual Report and the financial statements with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Directors are required to:
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select the most suitable accounting policies and then to apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions, disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Relevant Audit Information
In so far as each of the Directors, as members of the Governing Body, at the date of approval of this report is aware, there is no relevant audit information (information needed by the Company’s auditor in connection with preparing the audit report) of which the Company’s auditor is unaware. Each Director has taken all the steps that he should have taken as a Director in order to make himself aware of the relevant audit information and to establish that the Company’s auditor is aware of that information.
Approved by the Board on
including, in their capacity as company directors, approving the Directors’ and Strategic Reports contained therein, and signed on its behalf by:
L. M. Evans Director and Audit Committee Chair Date: 18 September 2025
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION (CONTINUED)
Opinion
We have audited the financial statements of International Foundation for Aids to Navigation (the ‘charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2024 which comprise the consolidated statement of financial activities, the consolidated and charitable company statement of financial position, the consolidated cash flow statement and notes to the consolidated 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:
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give a true and fair view of the state of the group’s and of the charitable company’s affairs as at 31 December 2024 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the charitable company and of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ 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 Directors 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 annual report other than the financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Report of the Directors has been prepared in accordance with applicable legal requirements.
12
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION (CONTINUED)
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of Directors’ remuneration specified by law are not made: or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Statement of Accounting and Reporting Responsibilities, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the group’s and the 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 Directors either intend to liquidate the group or the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
-
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
-
Reviewing minutes of meetings of those charged with governance;
-
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the charitable company through enquiry and inspection;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
13
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION (CONTINUED)
- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
John Howard (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Chartered Accountants Statutory Auditor 2[nd] Floor, Regis House 45 King William Street London EC4R 9AN
Date: 18 September 2025
14
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024
| Note INCOME FROM: Charitable activities 3 Non contractual navigation dues Contractual navigation dues Buoy maintenance and project income Other trading activities Ship charter and management income Rental income Other income Investments 4 Investment income Total income EXPENDITURE ON: Generating funds 5 Ship charter income costs Rental property costs Charitable activities 5 Total expenditure Net funds from operations Profit on disposal of OSV Relume Increase in value of investments 9 NET MOVEMENT IN FUNDS FOR THE YEAR Total funds brought forward Total funds carried forward |
2024 $ 2023 $ 3,963,410 2,787,032 752,968 613,417 690,891 627,563 - 3,950,924 140,426 135,896 - 174,226 1,744,608 1,011,172 7,292,303 9,300,230 58,552 4,644,306 11,350 15,258 6,538,138 5,759,915 6,608,040 10,419,479 684,263 (1,119,249) - 1,539,308 1,996,801 3,762,458 2,681,064 4,182,517 65,235,442 61,052,925 $67,916,506 $65,235,442 |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure is unrestricted.
The notes on pages 18 to 29 form part of these financial statements.
15
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
CONSOLIDATED AND CHARITABLE COMPANY STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2024
| Group | Group | Company | Company | |||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |||
| Note | $ | $ | $ | $ | ||
| FIXED ASSETS | ||||||
| Tangible assets | 7 | 1,694,688 | 1,540,280 | 1,694,688 | 1,540,280 | |
| Investments | 9 | 65,166,512 | 47,133,024 | 65,166,516 | 47,133,028 | |
| 66,861,200 | 48,673,304 | 66,861,204 | 48,673,308 | |||
| CURRENT ASSETS | ||||||
| Stock | 10 | 309,896 | 348,301 | 309,896 | 348,301 | |
| Debtors | 11 | 2,675,106 | 2,306,015 | 2,636,173 | 29,867,046 | |
| Cash and deposits | 12 | 919,168 | 16,643,511 | 900,102 | 2,609,759 | |
| 3,904,170 | 19,297,827 | 3,846,171 | 32,825,106 | |||
| CURRENT LIABILITIES | ||||||
| Creditors payable within one year | 13 | (2,848,864) | (2,735,689) | (2,848,864) | (2,732,123) | |
| NET CURRENT ASSETS | 1,055,306 | 16,562,138 | 997,307 | 30,092,983 | ||
| NET ASSETS | $ 67,916,506 |
$65,235,442 | $67,858,511 | $78,766,291 | ||
| FUNDS | ||||||
| Unrestricted funds | ||||||
| General reserve | 14 | 67,916,506 | 61,324,381 | 67,858,511 | 73,308,695 | |
| Currency translation reserve | 14 | - | 3,911,061 | - | 5,457,596 | |
| TOTAL FUNDS | $ 67,916,506 |
$65,235,442 | $67,858,511 | $78,766,291 |
The financial statements were approved by the Board on and were signed on its behalf by
…………………………………… R. G. Mason Chair
…………………………………… L. M. Evans Audit Committee Chair
Company No: 00477145
The notes on pages 18 to 29 form part of these financial statements.
16
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024
| Note | 2024 | 2023 | ||
|---|---|---|---|---|
| $ | $ | |||
| Cash generated from operating activities | 19 | (1,151,495) | (558,282) | |
| Cash flow from investing activities | ||||
| Payments for tangible fixed assets | (421,195) | (1,252,797) | ||
| Reinvestment of proceeds on disposal of Relume | (13,739,662) | 13,739,662 | ||
| Purchases of investments | (16,780,221) | (5,234,148) | ||
| Proceeds on sale of investments | 14,740,196 | 6,022,708 | ||
| Other cash movements on investments | (257,000) | - | ||
| Investment income receipts | 1,744,608 | 1,011,172 | ||
| Rental income receipts | 140,426 | 135,896 | ||
| Cash generated from investing activities | (14,572,848) | 14,422,493 | ||
| (Decrease)/increase in cash in the year | $(15,724,343) | $13,864,211 | ||
| Reconciliation of cash flow to net movement in net funds | ||||
| (Decrease)/increase in cash in the year | (15,724,343) | 13,864,211 | ||
| Net funds at the beginning of the year | 16,643,511 | 2,779,300 | ||
| Net funds at the end of the year | $ | 919,168 |
$16,643,511 |
The notes on pages 18 to 29 form part of these financial statements.
17
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. COMPANY STATUS
The Company is a charitable company limited by guarantee, registered in England and Wales and governed by its Articles of Association. It has no share capital. In the event of the company being wound up the liability of the members is limited to a maximum of £1 each. The Company’s registered number and registered office address can be found on page 1.
The presentational currency of the financial statements is the US Dollar ($) which is also the functional currency for the group.
The International Foundation for Aids to Navigation meets the definition of a public benefit entity under FRS 102.
2. ACCOUNTING POLICIES
Basis of preparation
These financial statements have been prepared under the Companies Act 2006 and in accordance with the Charities Statement of Recommended Practice (“Charities SORP (FRS102)”) and Financial Reporting Standard 102. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain tangible assets and securities investments.
Going concern
Having reviewed the funding facilities available to the Company together with the expected ongoing trading conditions and the Company’s projected future cash flows, the directors have a reasonable expectation that the company will have sufficient funds to continue to meet its liabilities as they fall due for the foreseeable future and therefore have prepared the financial statements on a going concern basis.
Accordingly, the Board continues to adopt the going concern basis in preparing its financial statements as outlined in the Statement of Accounting and Reporting Responsibilities on page 11.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and its wholly owned subsidiaries Menas Marine Services Limited and Oman Marine Services Limited. Control is achieved where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. No separate SOFA has been presented for the Company alone, as permitted by Section 408 of the Companies Act 2006.
Income
Income is the amount derived from the provision of charitable activities and other trading activities, and from investments, and is stated net of VAT.
Income from Charitable Activities
Charitable income represents navigation aids dues receivable, both contractual and non-contractual, as well as buoy maintenance and project income. Navigation aids dues are accounted for at the point a ship enters the port. Buoy maintenance and project income is accounted for in accordance with the contractual terms of each project and income is accrued or deferred accordingly.
Income from Other Trading Activities
Ship charter and management income represents third party income from the OSV Relume and is accounted for in the period in which the vessel is chartered for use.
Income from Investments
Investment income from fixed asset securities is accounted for on an accruals basis. Rental income is accounted for in the period to which the rental income relates.
18
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
2. ACCOUNTING POLICIES (continued)
Expenditure
Expenditure is accrued once there is a legal constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure attributed to more than one cost category in the SOFA is allocated to activities on a proportional basis. Direct costs, including directly attributable salaries, are allocated on an actual basis to the key strategic areas of activity. Overheads and other salaries are also allocated between expense headings on a proportional basis. Governance costs comprise the costs of complying with constitutional and statutory requirements.
Hire purchase and leasing commitments
Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term. Lease incentives are recognised over the lease term on a straight line basis.
Employee benefits
Short term employee benefits, including holiday entitlement and other non-monetary benefits, and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.
The Company’s defined benefit scheme has now been wound up. The Company is also required to contribute towards a deficit in the Merchant Navy Officers Pension Fund, and any future deficits which may occur in the foreseeable future will be relieved against amounts already expensed.
Foreign currency translation
Assets and liabilities in foreign currencies are translated into US Dollars at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are translated into US Dollars at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
Taxation
The Company is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010. Therefore it meets the definition of a Charitable Company for UK corporation tax purposes.
Fund accounting
Unrestricted funds represent those funds which can be used in accordance with the Charitable Company’s objects at the discretion of the Directors.
Tangible fixed assets
Tangible fixed assets are stated at cost or valuation less depreciation. In accordance with FRS102 the land, which is held in perpetuity in Bahrain, is not depreciated. Fixed assets are subject to an annual impairment review. Any permanent diminutions in value are recorded. Depreciation is provided to write off the cost of all relevant tangible fixed assets, less estimated residual value, in equal annual instalments over their expected useful economic lives as follows:
| Buildings | 20 years |
|---|---|
| OSV Relume | 15 years |
| Navigation aids, plant and equipment, DGPS | 5 years |
| Computers and equipment | 2 years |
| Vehicles, plant and machinery and office equipment | 4 years |
| Other navigation aids and equipment | Up to 10 years |
19
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
2. ACCOUNTING POLICIES (continued)
Investments
Listed investments are valued at market value as at the balance sheet date. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities. Gains and losses arising from changes in fair value are included in the Statement of Financial Activities as either an unrealised gain or loss on investments. Interest determined using the effective interest method, impairment losses and translation differences on monetary items are recognised in the Statement of Financial Activities.
Stocks
Stocks are valued at the lower of cost and net realisable value.
Trade and other debtors
Trade and other debtors are measured at transaction price, less any impairment.
Cash and cash equivalents
Cash and cash equivalents in the consolidated and charitable company statement of financial position and in the consolidated cash flow statement comprise cash at bank and in hand and short term deposits with an original maturity date of three months or less.
Trade and other creditors
Trade and other creditors are measured at their transaction price.
Judgements and key sources of estimation uncertainty
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Bad debt provision
The value of trade debtors is sensitive to the recoverability in full of any invoices issued to each customer. Once the debt becomes overdue it is chased and periodically reviewed to ensure it is recoverable in full. If a provision is deemed necessary this is included on an annual basis.
3. INCOME FROM CHARITABLE ACTIVITIES
Charitable income is attributable to the principal activities of the Company and arose wholly in the Middle East. Charitable activities of the company comprise non-contractual and contractual navigation dues, and the provision and maintenance of the buoys and other navigation aids.
20
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
| 4. INVESTMENT INCOME Deposit interest Dividend income 5. ANALYSIS OF EXPENDITURE (a) Total expenditure Staff Costs $ Support Costs $ Costs of generating funds: Ship charter income costs - 58,552 Rental property costs - 11,350 - 69,902 Charitable activities: Costs of charitable activities 1,798,629 2,970,156 Governance costs - 664,020 $1,798,629 $3,704,078 |
2024 $ 482,993 1,261,615 $1,744,608 2024 Grant Making $ Depreciation $ Total $ - - 58,552 - - 11,350 - - 69,902 838,546 266,787 5,874,118 - - 664,020 $838,546 $266,787 $6,608,040 |
2023 $ 445,916 565,256 $1,011,172 2023 Total $ 4,644,306 15,258 4,659,564 5,470,551 289,364 $10,419,479 |
|---|---|---|
(b) Grant making
During the year the following grants and donations were made:
| 2024 $ IALA 748,997 CHIRP Maritime - The Nautical Institute 126,967 South Pacific Community (38,871) UNESCO - MSSC - Other donations 1,454 $838,546 |
2024 $ 748,997 - 126,967 (38,871) - - 1,454 |
2023 $ 742,728 15,596 124,844 492,037 32,390 12,177 - $1,419,772 |
|---|---|---|
(i) IALA - an international technical organization that gathers together marine information to share worldwide
(ii) CHIRP Maritime - contributes to the enhancement of aviation safety in the UK and maritime safety worldwide.
(iii) The Nautical Institute - an international body for maritime professionals involved in the control of sea-going ships. (iv) South Pacific Community - the principal scientific and technical organisation in the Pacific region.
(v) UNESCO - support to include Ocean Literacy in IALA courses.
(vi) MSSC - provides teaching modules to improve mathematical and English language skills amongst mariners.
21
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
5. ANALYSIS OF EXPENDITURE (continued)
| 5. ANALYSIS OF EXPENDITURE (continued) |
||
|---|---|---|
| (c) Governance costs included in support costs | 2024 | 2023 |
| $ | $ | |
| Remuneration paid to auditor for audit services | 47,657 | 46,900 |
| Other governance costs | 616,363 | 242,464 |
| $664,020 | $289,364 | |
| (d) Net outgoing funds from operations | 2024 | 2023 |
| The following amounts have been charged within resources expended: | $ | $ |
| Directors emoluments | 222,977 | 389,350 |
| Auditors’ remuneration (audit services) | 47,657 | 46,900 |
| Auditors’ remuneration (non-audit services) | 11,118 | 15,422 |
| Rental paid under operating leases | 303,697 | 284,541 |
| Foreign exchange movement | (87,836) | 90,789 |
| 6. STAFF COSTS |
2024 | 2023 |
| $ | $ | |
| Directors remuneration | ||
| Director’s fees | 215,488 | 165,887 |
| Social security costs | 7,489 | 19,105 |
| Staff remuneration | ||
| Wages and salaries | 1,112,267 | 1,293,742 |
| Social security costs | 143,626 | 120,219 |
| Other employee benefits | 319,759 | 295,508 |
| $1,798,629 | $1,894,461 |
The above staff costs include $1,157,425 (2023: $1,102,639) relating to employees in Bahrain and $641,204 (2023: $791,822) relating to employees in the United Kingdom.
All directors’ emoluments are paid in accordance with the Company’s Articles of Association as approved by the Charity Commissioners. The highest paid director’s emoluments totalled $23,025 (2023: $171,616) with no accrued pension as at 31 December 2024.
| During the year the following employers were entitled to receive payment for the services of Directors as indicated below: | During the year the following employers were entitled to receive payment for the services of Directors as indicated below: | During the year the following employers were entitled to receive payment for the services of Directors as indicated below: |
|---|---|---|
| Maersk Line | $23,025 | A Ross |
| BP Shipping | $23,025 | D Summerhill |
| Kuwait Oil Tanker Company | $23,025 | Captain Y Al Sager |
| Shell Transport & Trading | $23,025 | Captain D Hill |
| NYK | $23,025 | Captain I Scally |
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INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
6. STAFF COSTS (continued)
Aggregate emoluments of key management personnel: $153,798 (2023: $221,091).
During the year no Directors were reimbursed expenses in respect of travel and attendance at board meetings (2023: 1 Director was reimbursed expenses of $33,985).
| Number of higher paid employees (including retirement benefits paid under local employment laws) in bands of: $170,000 - $210,000 $140,000 - $170,000 $100,000 - $140,000 $90,000 - $100,000 $70,000 - $80,000 |
2024 Number 1 2 1 1 1 6 |
2023 Number 1 1 1 1 1 |
|---|---|---|
| 5 |
The above amounts all relate to employees in Bahrain and London.
The average number of the Company’s employees (excluding Non-Executive Directors) during the year calculated on a full time equivalent basis, was 16 (2023:14).
| Engineering and maintenance Finance and administration Management |
2024 Number 10 2 4 16 |
2023 Number 10 2 2 |
|---|---|---|
| 14 |
23
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
7. TANGIBLE FIXED ASSETS
| Freehold Land & Buildings Navigation Aids, plant & Equipment Assets under construction GROUP $ $ $ Cost or valuation At 1 January 2024 2,326,548 8,347,903 761,820 Additions 43,162 378,033 - Transfers - 761,820 (761,820) At 31 December 2024 2,369,710 9,487,756 - Depreciation At 1 January 2024 2,041,618 7,854,373 - Charge for the year 115,016 151,771 - At 31 December 2024 2,156,634 8,006,144 - Net book value At 31 December 2024 $213,076 $1,481,612 $- At 31 December 2023 $284,930 $493,530 $761,820 COMPANY Freehold Land & Buildings Navigation Aids, Plant & Equipment Assets under construction $ $ $ Cost or valuation At 1 January 2024 2,326,548 8,347,903 761,820 Additions 43,162 378,033 - Transfers - 761,820 (761,820) At 31 December 2024 2,369,710 9,487,756 - Depreciation At 1 January 2024 2,041,618 7,854,373 - Charge for the year 115,016 151,771 - At 31 December 2024 2,156,634 8,006,144 - Net book value At 31 December 2024 $213,076 $1,481,612 $- At 31 December 2023 $284,930 $493,530 $761,820 |
Total $ 11,436,271 421,195 - 11,857,466 9,895,991 266,787 10,162,778 $1,694,688 $1,540,280 Total $ 11,436,271 421,195 - 11,857,466 9,895,991 266,787 10,162,778 $1,694,688 $1,540,280 |
|
|---|---|---|
24
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
7. TANGIBLE FIXED ASSETS (continued)
Substantially, the Group’s fixed assets are held for use on charitable activities. The land in Bahrain is held under tenure appropriate for the Group’s activities.
The navigation aids and plant and equipment, excepting major land based aids and office equipment used in the management office, were re-valued at the end of 2001 on the basis of depreciated replacement cost having regard to the remaining operating lives of the assets re-valued. The major land based navigation aids (excluding land) were also re-valued as at 1 January 2010 on a replacement cost basis by the directors and reflected in these financial statements. The Company freehold property in Bahrain is held at a professional valuation as at 31 December 2005, less accumulated depreciation. The property has been revalued in prior periods by Cluttons Chartered Surveyors at an amount above book value but the Directors are concerned given the present political unrest in the region that the increased valuation is possibly unrealistic. No adjustment has therefore been made in this respect. The Directors are not aware of any other material change since the last valuation.
8. FUTURE CAPITAL EXPENDITURE
On 2 November 2022 the Company entered into a contract for the construction of a DGPS Reference Station at a total contract price of $1,105,760. The contract is anticipated to be completed during 2025.
9. FIXED ASSET INVESTMENTS
| 9. FIXED ASSET INVESTMENTS |
9. FIXED ASSET INVESTMENTS |
|||
|---|---|---|---|---|
| Group | Group | Company | Company | |
| 2024 | 2023 | 2024 | 2023 | |
| Securities investments | $ | $ | $ | $ |
| At 1 January 47,133,024 |
44,159,126 | 47,133,024 | 44,159,126 | |
| Additions 30,519,883 |
5,234,148 | 30,519,883 | 5,234,148 | |
| Disposals (14,483,196) |
(6,022,708) | (14,483,196) | (6,022,708) | |
| Increase in value of investments 1,996,801 |
3,762,458 | 1,996,801 | 3,762,458 | |
| 65,166,512 | 47,133,024 | 65,166,512 | 47,133,024 | |
| Investment in Subsidiaries - |
- | 4 | 4 | |
| At 31 December $65,166,512 |
$47,133,024 | $65,166,516 | $47,133,028 | |
| The fixed asset investments noted above are denominated in the following | currencies: - | 2024 | 2023 | |
| % | % | |||
| Sterling | 100.0 | 49.5 | ||
| United States Dollars | - | 41.8 | ||
| Others | - | 8.7 |
The historical cost of securities investments held at 31 December 2024 was $68,651,959 (2023: $41,863,662).
The Company owns the whole of the issued share capital of Menas Marine Services Limited (£1 paid) and Oman Marine Services Limited (£1 paid) both of which are registered in England and Wales, registered office at 8/9 Lovat Lane, London EC3R 8DW. Both subsidiary undertakings are included within the consolidated financial statements.
OMSL has a branch in Ras Al Khaimah Freeport Zone for the purposes of renting land for a new DGPS.
25
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
| 10. STOCKS Group 2024 $ Group 2023 $ Consumables 309,896 348,301 $309,896 $348,301 11. DEBTORS Group 2024 $ Group 2023 $ Income due from charitable activities 1,662,251 1,227,634 Trade debtors - 63,962 Other debtors 508,629 405,364 Prepayments and accrued income 504,226 609,055 Amounts due from subsidiary companies - - (net of provision) $2,675,106 $2,306,015 All debtors are due within one year. 12. CASH AND DEPOSITS Group 2024 $ Group 2023 $ HSBC short term deposits and working balances 881,322 14,559,451 Cash held by Investment managers 26,939 2,084,010 Cash in hand 10,907 50 $919,168 16,643,511 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Company 2024 $ Company 2023 $ 309,896 348,301 $309,896 $348,301 Company 2024 $ Company 2023 $ 1,662,251 1,227,634 - - 469,696 328,166 504,226 598,175 - 27,713,071 $2,636,173 $29,867,046 Company 2024 $ Company 2023 $ 862,295 525,738 26,939 2,084,010 10,868 11 $900,102 $2,609,759 |
|---|---|
| Trade creditors Other creditors Taxation and social security Accruals and deferred income |
Group 2024 $ 425,110 1,439,499 22,519 961,736 $2,848,864 |
Group 2023 $ 207,241 1,534,910 36,233 957,305 $2,735,689 |
Company 2024 $ 425,110 1,439,499 22,519 961,736 $2,848,864 |
Company 2023 $ 203,675 1,534,910 36,233 957,305 |
|---|---|---|---|---|
| $2,732,123 |
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INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
14. SUMMARY OF MOVEMENTS ON FUNDS
| 4. SUMMARY OF MOVEMENTS ON FUNDS |
|||
|---|---|---|---|
| General | Translation | Total | |
| Reserve | Reserve | ||
| $ | $ | $ | |
| Group | |||
| At 1 January 2024 | 61,324,381 | 3,911,061 | 65,235,442 |
| Incoming resources | 7,274,021 | - | 7,274,021 |
| Resources expended | (6,589,758) | - | (6,589,758) |
| Transfers | 3,911,061 | (3,911,061) | - |
| Increase in value of investments | 1,996,801 | - | 1,996,801 |
| At 31 December 2024 | $67,916,506 | $- | $67,916,506 |
| General | Translation | Total | |
| Reserve | Reserve | ||
| $ | $ | $ | |
| Company | |||
| At 1 January 2024 | 73,308,695 | 5,457,596 | 78,766,291 |
| Incoming resources | 7,086,698 | - | 7,086,698 |
| Resources expended | (6,449,471) | - | (6,449,471) |
| Transfers | 5,457,596 | (5,457,596) | - |
| Increase in value of investments | 1,996,801 | - | 1,996,801 |
| Write off amounts due from subsidiary companies | (13,541,808) | - | (13,541,808) |
| At 31 December 2024 | $67,858,511 | $- | $67,858,511 |
The currency translation reserve represents historical foreign exchange movements on the values of balance sheet items whose functional currency is not US Dollars. During the year this reserve was combined with other unrestricted reserves.
All funds are unrestricted.
15. PENSION SCHEMES
Pensions for the benefit of UK shore staff have been funded through the MENAS Pension and Life Assurance Scheme managed by Aviva. Contributions to the Scheme ceased in a previous year as the Scheme had been closed to new members and all participants have now had pensions provided.
Menas Marine Services Limited is a former employer of Merchant Navy Officers Pension Fund (MNOPF) members and as such, following a court case in 2006, is liable to contribute towards a deficit on an on-going basis of the New Section of that pension scheme. The financial effect of this has not finally been fully quantified at the present time and the trustees of that scheme have made the charity aware that they are liable for their share of the deficit. Significant payments have been made against these liabilities and all notified requests for payment to date have been fully paid. Any future deficits which may occur in the foreseeable future will be relieved against amounts already expensed. As the trustees of MNOPF have indicated that as of 31 December 2024 there was no liability payable by the company, there has been no charge to the Statement of Financial Activities in 2024.
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INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
16. FINANCIAL COMMITMENTS
Operating Leases
The total of future minimum lease payments under non-cancellable operating leases for each of the following periods are:-
| Within 1 year Within 1 to 5 years |
2024 $ 194,944 800,154 $995,098 |
2023 $ 203,197 166,886 $370,083 |
|---|---|---|
17. CONTINGENT LIABILITIES
From time to time, the Company may be involved in contractual disputes in the ordinary course of business. There are currently no liabilities expected to have a material adverse financial impact on the Company’s results or net assets.
18. COMPANY RESULTS
| The surplus dealt with in the financial statements of the company is as follows: |
2024 $ |
2023 $ |
|---|---|---|
| Net incoming funds | $2,634,028 | $4,004,757 |
18. SUBSIDIARIES
The Company owns all of the issued share capital of Menas Marine Services Limited, a company incorporated in England, number 04505570. This company operated a commercial vessel, the OSV Relume, which was sold on 17 September 2023.
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| Income | 205,330 | 3,998,869 |
| Profit before tax | 135,781 | 273,468 |
| Shareholders’ funds | 15,795 | (63,701,436) |
The Company also owns all of the issued share capital of Oman Marine Services Limited, a company incorporated in England, number 04499121. This company is a marine services contractor.
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| Income | 274 | 99 |
| Loss before tax | (88,745) | (95,710) |
| Shareholders’ funds | 42,311 | 9,170,696 |
28
INTERNATIONAL FOUNDATION FOR AIDS TO NAVIGATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
19. RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH FLOW FROM OPERATIONS
| 2024 | 2023 | ||
|---|---|---|---|
| $ | $ | ||
| Net outgoing resources | 684,263 | (1,119,249) | |
| Depreciation charge | 266,787 | 1,085,634 | |
| Investment income receivable | (1,744,608) | (1,011,172) | |
| Rental income receivable | (140,426) | (135,896) | |
| Decrease in stock | 38,405 | 1,051,084 | |
| (Increase)/decrease in debtors | (369,091) | 72,108 | |
| Increase/(decrease) in creditors | 113,175 | (500,791) | |
| Net cash outflow from operations | (1,151,495) | (558,282) | |
| 20. CASH AND CASH EQUIVALENTS |
|||
| At 1 January | Net cash flow | At 31 December | |
| 2024 | 2024 | ||
| $ | $ | $ | |
| Cash and deposits | 16,643,511 | (15,724,343) | 919,168 |
Cash and cash equivalents are made up entirely of cash and deposits in both the current and prior year.
21. RELATED PARTY TRANSACTIONS
There were no related party transactions during the year that require disclosure other than those disclosed in note 6..
22. ULTIMATE CONTROLLING PARTY
As at the balance sheet date there is no one ultimate controlling party.
29