2020-12-31-accounts

OUR STORY 20 20 Sailors, Society

OUR STORY 2020

OUR SOCIAL IMPACT

A huge thank you to @Shell and @MarineSociety for their kind donation of 1,000 books for seafarers. They’re being given out as Christmas gifts for seafarers as well as replenishing the library at our Southampton Seafarers’ Centre.

We actively inform the public about our cause and promote our activity to raise awareness of the ongoing needs of seafarers and their families. This is done in a variety of ways from media coverage, e-newsletters, appeals and social media. Our social channels have seen large increases in followers as seafarers, their families and all those involved with and interested in the maritime industry rely on digital communications more than ever.

Second officer Fred was delighted to receive this Christmas gift from chaplain@ Pauline_Sailors on her ship visit today. Huge thanks to @leithchurches for their kind donations. It means so much to know you’re in someone’s thoughts when you are far from home and loved ones!

“A handful of sunshine on a day of torrential Montrose rain.” Chaplain Peter was delighted to lend this seafarer a free WiFi unit to chat with loved ones. Huge thanks to @MNWBUK, @Seafarers_UK and @transportgovuk for providing these amazing MiFi units! #portwelfare #WiFi

“Thanks for making ship life seem more normal!” After a long day delivering two car loads of parcels, letters & shopping to cruise ship crew, our Southampton Seafarers’ Centre manager was delighted to get this lovely thank you card. We’re here for you: sailors-society.org/chaplains

First step on board! Chaplain Frans did his first ship visits as our new Southampton port chaplain yesterday

Seafarers are under huge strain, their lives at the mercy of ever-changing global restrictions. They’re physically & mentally fatigued – some are at breaking point. Our chaplains offer the comfort & support they need to keep going. Can you help? Go to: sailorssociety.org/together

A suspected coronavirus outbreak on 20 ships off Port Blair has left 300 ill seafarers on board without basic medicine. So we’ve stepped in, alongside VHS, the directorate of shipping and local merchant navy officers’ association, to deliver medicine:

We’ve been bowled over by the generosity of our supporters and their kind donations towards gifts for seafarers far from home at Christmas.

Contents

04. Welcome from the Chairman 06. We began 2020 like any other year, with plans in place. Then everything changed. 08. The year that changed the world 10. Our new strategy 15. Q&A with Sara Baade 18. Tackling the Covid mental health emergency 24. Chaplaincy in 2020 29. Our response 2020 32. A seafarer’s story 34. Crew change crisis 36. Covid on board: How we provided vital medicine during an outbreak at sea	37. A brave new world
	38. Making an urgent appeal for help
	39. Families in crisis
	40. Keeping kids learning in lockdown
	42. The next chapter
	44. Trustees’ Report for the year ended 31 December 2020
	52. How we raised and used our funds
	54. Financial review
	92. Administrative details, trustees and advisors
	95. Thank you

03

SAILORS’ SOCIETY

OUR STORY 2020

Welcome from the Chairman

I became chairman of Sailors’ Society towards the end of 2019. Situations were unravelling elsewhere in the world that would have such a profound effect on the year ahead for all of us. But we knew little of that then. We were working on our strategy for the year, preparing for industry meetings and counting down the time till our planned big fundraising event climbing Kilimanjaro. Fast forward a few months and we were in little doubt of the gravity of the crisis before us.

My first year in this role has been a rollercoaster. Sailors’ Society was 202 years old in 2020. The core work of this organisation - chaplains visiting seafarers on board ships in ports around the world - has been constant through the decades since the early years in London’s docks. But as infections spread, ports locked down; we couldn’t go in and seafarers couldn’t go out. Life at sea became an extreme version of lockdown. Seafarers are used to not seeing their parents, wives, husbands and children for many months at a time and only being allowed off the ship for short periods. Now there was no getting off and contracts extended as crews couldn’t travel home to their families. We heard heart breaking stories – the captain who lost four members of his family to Covid yet he couldn’t travel home to support loved ones; the seafarer who was in excruciating pain with internal

health training. This was so valued that more than 50 companies have signed up in 2021. At times these have stretched our resources, while Covid has made fundraising to cover the many additional costs on top of our core work more challenging.

bleeding but wasn’t able to leave the ship. Then there were those stuck at home unable to join their ships and earn money to feed their families and pay for essential medical, housing and schooling bills.

But while there was deep sadness and desperation, there was also Many months into 2021 now, the so much hope and an unwavering crisis continues and infections surge will to support those struggling in different countries at different times. I am grateful every day that through difficult times. I have been so proud of how this organisation has Sailors’ Society and the other prized responded. The speed at which our maritime welfare organisations we chaplains, family support workers and work alongside are there to support support teams back in the UK reacted our key workers of the sea and was remarkable and the creativity those who depend on them. It’s a of their response outstanding. New privilege to be a part of this in these models of support for the times we most momentous of times and to were thrust into sprung up – our witness first-hand the dedication and Ship Connect programme ensuring enormous work of all in the Society, seafarers had regular contact with us supporting and caring for seafarers to talk through anxieties and fears; 24/7 around the world. our wellness awareness campaign giving crews free wellness and mental

Peter Swift

Chairman

04

05

SAILORS’ SOCIETY

OUR STORY 2020

WE BEGAN 2020 LIKE ANY OTHER YEAR, WITH PLANS IN PLACE.

Our chaplains set out on another year of tirelessly supporting crews on board ships across the globe, taking Wi-Fi hubs so seafarers can call home and speak with their families, driving them into town for a short break from life at sea, accompanying them to medical appointments and listening to their worries and, at times, despair. Shipping companies had signed up crews to our wellness training; classrooms were booked and materials ready. Our ferry boats were ready to take children safely to school and start delivering books to tiny remote islets.

THEN EVERYTHING CHANGED.

Borders closed, ports were in lockdown, seafarers stuck on board unable to leave their ships. Classroom-based training stopped, schools closed.

Restrictions made our usual ship visiting impossible at times. But our chaplains stayed in touch with crews digitally and, where they could still bring supplies, used whatever was to hand - sometimes buckets on long ropes - to get shopping, parcels, phone cards and Wi-Fi units to those on board. The long months ahead were bleak for many seafarers. Some saw contracts extended to 17 months as they couldn’t get home; births were missed, weddings postponed and some endured the agony of family members dying from Covid while they were many miles away unable to comfort and help their loved ones. We received more than 130 calls a month to our helplines while reports circulated of more seafarers in desperation taking their own lives.

Just a few months into the year, the full resources of the charity were thrown at supporting seafarers through this crisis. As an agile organisation, we were able to adapt quickly and change our way of working to ensure seafarers and their families could still turn to us and rely on us, even if they couldn’t see us face-toface for a while.

We added elements to our industry leading Wellness at Sea programme. Our Ship Connect service provided mental health support to more than 12,000 seafarers as shipping companies welcomed the new service. Instead of waiting for crew to call a chaplain for help, our chaplains make regular contact with ships, getting to know the seafarers on board and identifying any welfare issues early on. The Ship Connect team works around the clock, ensuring continuity of service as ships move across time zones.

We launched a new, free 27-week wellness awareness campaign, giving seafarers vital tools to help look after themselves and their colleagues. Companies from across the maritime sector signed up to offer their workforce this extra support through the toughest of times. We championed calls for seafarers to be given key worker status and signed the Neptune Declaration, calling on Governments around the world to take action. As momentum grew, we took every opportunity to tell the world about the sacrifices our invisible heroes and their loved ones make – this year more than ever. And while schools closed their doors to help thwart the spread of the virus, our ferry boat was repurposed to take school work to children living in small islets in the Philippines.

“For Seaspan, the health and safety of our seafarers are of utmost priority - and now, more than ever, the mental wellbeing of our seafarers is top of mind. Adopting Sailors’ Society’s Ship Connect service was an easy decision. The service integrates perfectly with Seaspan’s drive to provide its seafarers with allencompassing and timely mental health assistance during times of need. Sailors’ Society’s Ship Connect is applauded amongst our seafarers and has made meaningful impacts on their mental wellbeing.”

Captain Manoj Gandhi, Seaspan’s Director of Fleet Personnel.

06

07

The year that changed the world

TIMELINE:

JANUARY 9

First reported death

END OF JANUARY Death toll had passed 100, infections rising fast

JANUARY 30

Outbreak declared a global emergency by the WHO

FEBRUARY 10

1,000 deaths. The virus had spread to 27 countries but at this time there were only two deaths outside of mainland China, in the Philippines and Hong Kong

LATE FEBRUARY

Hundreds test positive on board the Diamond Princess cruise ship, quarantined in Japan. A British man who had been on board becomes the first UK national to die with the virus

Around the same time – the coronavirus was given an official name, Covid-19

MARCH 20

10,000 deaths. Europe becomes the focus with half the world’s deaths. Italy is the worst affected

MARCH 24

UK nationwide lockdown imposed as death toll in the country reaches 335

APRIL 9 MAY SEPTEMBER 28 DECEMBER 8

The IMO calls on countries across the globe to designate seafarers as key workers

One million deaths, UK woman Margaret although death toll thought Keenan is the first in the to be much higher as many world to receive the Pfizer cases thought to have Covid-19 vaccination gone unreported

100,000 deaths. British Prime Minister Boris Johnson leaves intensive care as the number of deaths reaches nearly 9,000 with more than 70,000 confirmed cases

JUNE 29

UN calls on governments to eliminate all obstacles to crew changes, calling it a ‘humanitarian crisis’

500,000 deaths.

Restrictions eased in some parts of the world, WHO warns worst could be yet to come

08

09

SAILORS’ SOCIETY

OUR STORY 2020

NEW STRATEGY OUR

VISION:

A world where all seafarers and their families are supported and empowered.

MISSION:

To meet the welfare and wellbeing needs of seafarers, their families and the communities they live in, at home, in port and at sea.

A year that changed the world and our industry for the foreseeable future and the arrival of a new CEO at Sailors’ Society prompted a new strategy for the organisation. Fresh vision and mission statements will be delivered through nine high level objectives (below), which we will use to guide and steer our work on both strategic and operational levels.

1. Sailors’ Society will aim to

2. Sailors’ Society will ensure the welfare and spiritual needs of seafarers and their families are met through our chaplains and support workers at home, in port and at sea.

3. work collaboratively with partner organisations.

7. Sailors’ Society will use

• technology to measure its impact and to extend its reach around the world where it does not have a physical presence.

• Sailors’ Society will lead the way in wellness and mental health awareness, support and training.

• Sailors’ Society will develop its fundraising activity to cover its operational costs and will disseminate funds raised transparently, appropriately and responsibly.

• Sailors’ Society looks beyond the port and individual seafarer to whole families and communities, aiming to build resilience, strength and quality of life.

• Sailors’ Society will raise awareness of seafarers, their value and the sacrifices they make among the industry, the wider public and other key stakeholders.

• Sailors’ Society will be an inclusive, diverse, inspiring and supportive employer for our teams across the world, ensuring staff are safe, sufficiently resourced and effective in their roles. A robust recruitment and retention process will be in place.

• Sailors’ Society will be an active organisation in the maritime world and through good communications with beneficiaries and maritime organisations will be prepared to highlight the big issues facing seafarers.

10

11

SAILORS’ SOCIETY

OUR STORY 2020

Our new strategy continued

We work collaboratively with other agencies and International Christian Maritime Association members, where there is a common purpose, to improve the lives of our beneficiaries.

We work in partnership with the maritime industry and its corporate personnel to ensure that we fully understand and respond to changing welfare needs.

Each year, we review the aims and objectives that we set as we develop our future plans. We look at and evaluate our achievements and the impact of our work during the year and refine our plans accordingly. We regularly assess the cost of delivering our services to our beneficiaries. Our charitable activities are strategically linked to our goals to ensure that we continually meet the range of our charitable objects and are usefully serving those in the maritime community for whom we work.

As a member of the International Christian Maritime Association (ICMA), Sailors’ Society has signed its code of conduct stating it will:

• Show an unconditional love to the seafarer as a human being, created in the image of God, and a sincere respect for her/his personal values and beliefs

• Serve seafarers and their dependents of all nationalities, religions, cultures, language, gender or race

• Fight prejudice, intolerance and injustice of any kind

• Respect the diversity of ICMA members and churches and develop that which unites them

• Respect the loyalty of those engaged in maritime ministry to their particular ecclesiastical discipline and tradition and refrain from proselytising seafarers

• Co-operate with persons, organisations and institutions, Christian or non-Christian, which work for the welfare of seafarers.

Sir Gabriel Wood’s Mariners’ Home in Scotland closed in February 2021.

The decision followed a lengthy review of the Greenock care home’s future due to a sharp decline in the number of mariner beneficiaries, coupled with concerns over the resources needed to maintain the standards we set. The pandemic placed significant added pressure on the home and its staff.

We worked closely with the local health and social care partnership to ensure every resident had the best alternative accommodation and all moved to care homes in the local area.

The home was a separate Scottish registered charity, but it was managed and operated by Sailors’ Society under a deed of trust through a board of trustees. The home, land and flats that form part of the estate were put up for sale in 2021.

Home manager Annabelle Stewart was the longest serving staff member for more than a century. Annabelle retired after 38 years with the closure of Sir Gabriel Wood’s Mariners’ Home. She was also the second longest serving member in the 170 years it was open.

General Manager Annabelle Stewart is pictured with Alison Laverty the Administration Manager who completed 18 years of service at the home.

The objects for which the Charity is established are to benefit British and foreign seafarers, ex- seafarers and intending seafarers and their families and dependents and the communities in which those people live or work by the advancement of the Christian religion, the advancement of education and the relief of poverty and distress and the promotion of any charitable purpose by such ways and means as the Charity shall think fit and for such purposes to do all such lawful things as are necessary to the attainment of the foregoing objects.

12

13

SAILORS’ SOCIETY

OUR STORY 2020

Q&A with Sara Baade

Sara joined us as our new CEO in September 2020, bringing with her a strong background in management and strategic policy, as well as extensive experience in leading an international welfare charity from her previous role as CEO of The Army Families Federation. Her career has also included working as a senior civil servant for the Department of Business, Innovation and Skills, a directorship at the charity UK Skills and substantial experience in investment banking.

14

15

SAILORS’ SOCIETY

OUR STORY 2020

Q. Why a new strategy now?

A. This was of course a monumental year for the whole industry and the way Sailors’ Society worked – including how we met colleagues, funders and beneficiaries – changed so much. Covid-19 and its effect on the shipping industry will be with us for many years and we needed a strategy that was current and relevant to the situation in front of us. Plus, over the years, the Society has slowly but surely added products and services to its portfolio, some very successfully, others not as successfully. At times this has caused some confusion over what the Society’s priorities are and what the ‘offer’ to our community is. Our new strategy gives us clear priorities and focus, looking at what is needed and answering that need. In 2021, we will increase and promote the free offer that the Society provides. This will not only be hugely beneficial to those who rely on us, but will make it easier for funders to support our wider cause rather than unique and smaller projects.

Q. So what are the Society’s priorities and focus in this new strategy?

A. Our core work, as it has been for more than 200 years – our chaplaincy and family support work on the ground, reaching out and helping those we are here to serve. Our wellness and mental health support and training, which is more important and needed than ever now, is also a key priority. In 2021, we aim to provide a wellness e-learning package for all seafarers across the world, free of charge. This will have offline capability as well as online to cater for connectivity challenges. It will be complemented with a new, free helpline to provide support for all seafarers wherever they are in the world – this one helpline number will replace the various helplines we have currently and will be used for everything, from advice on caring for crews to crisis response. We are also preparing a new, free 27week wellness awareness campaign to follow the huge success of the inaugural programme in 2020, but this time with packages for families and shore staff so the whole network surrounding the seafarer is supported. To

supplement the free offer, we will offer more bespoke paid for face-to-face wellness training and our Ship Connect service. Our Wellness at Home programme is delivered through a number of free projects targeted to support the communities where the majority of seafarers live. Those projects include mental health support and resilience workshops, after school pupil clubs, library boats, school ferry boats and medical care through our Jakarta Medical Clinic and Chennai ambulance service.

Q. What are the biggest challenges?

A. The main challenge for us is funding the rising need for our support. Calls for help are only increasing through this pandemic and it will be some time before the Covid threat simmers down across the world. We also need to continue to respond to the ever-changing restrictions and surges in cases from country to country, to keep our teams and others safe and to ensure seafarers and their families still get the support they so desperately need. 2021 will doubtless be a challenging year, where we will not just change the way we operate, but we will have the added pressure of meeting increased fundraising needs while decreasing our operational costs. But by doing this, we will emerge stronger.

Q. What is the Society going to do differently?

A. We need to save costs and move forwards with greater focus, so a number of products and services have been shelved. Cutting services is never an easy decision, but with limited resources we needed to scrutinise our delivery to ensure we only continue products that are providing value for money or offering essential services to the seafarer community. The products and services that have either stopped or will be ceasing in the near future are the Ghana seafarer centre, BySea coffee, a number of our charity shops and Sir Gabriel Wood’s Mariners’ Home in Scotland. Three UK seafarer centres which are jointly run with MtS and Stella Maris will be handed over to QVSR.

Q. What is the Covid effect on your future plans?

A. The environment we operate in has changed dramatically in the last few years, with the last year being the most significant due to the pandemic. The need for our services has not just increased, but also changed. We need to ensure that our work is changing accordingly and that we invest resources in areas that are in increasing demand. To this end, all products have been evaluated to ensure they are fit for purpose for 2021. And we will continue to evaluate our products and services to ensure they are relevant, fit for the environment we operate in and deliver value for money for our funders.

Q. Can you explain more about collaborative working with partner organisations?

A. The Society has always done this of course, the most notable example being our ShipVisitor App which we opened up to all ICMA members to ensure the best care and support for seafarers. But in an environment where the demand for our services is significantly increasing, it is critical that we put extra emphasis on collaborative objectives to ensure we deploy our resources and services effectively and in partnership with other marine charities to avoid duplication and unhealthy competitive behaviours.

Q. What are your reflections on your first year in the role?

A. What a year to lead one of the world’s oldest maritime welfare charities – it’s been an exceptionally busy year, but while the challenges have kept coming, so have the opportunities. This is an exceptionally talented and dedicated team to have joined, and their passion for serving this huge 1.6 million-strong global workforce has been tangible from day one. Our chaplains and family support workers in particular never cease to amaze me with their endless energy and compassion. 2020 has been a tough and extraordinary year for everyone, but for those we exist to support it has been lonely, frightening and uncertain and it has been a privilege to help alleviate some of those feelings through the work we have done. I have met, via the wonderful world of Zoom, many leaders in this industry over the past year and look forward to meeting many more, hopefully in person this time, through the year ahead.

16

17

SAILORS’ SOCIETY

OUR STORY 2020

Seafaring has always been an incredibly challenging career. Seafarers wave goodbye to their families for months at a time to work long, exhausting shifts in an unpredictable, sometimes dangerous environment – and it can take its toll, both mentally and physically.

We’ve developed our Wellness at Sea programme over several years to help crews negotiate these challenges by managing their relationships, improving their wellbeing and building mental resilience to cope well with life at sea.

But in March 2020, as the Covid pandemic plunged the shipping industry into great uncertainty, we could see that seafarers would need this support more than ever.

18

19

SAILORS’ SOCIETY

OUR STORY 2020

MENTAL HEALTH IN CRISIS

The usual stresses of life at sea were suddenly magnified. Seafarers’ worries about their families back home turned to fear that they might fall ill with this virulent, deadly disease, while they were stranded thousands of miles away at work.

The loneliness of long contracts was compounded by the uncertainty of not knowing when they would be able to return to their loved ones – or even set foot on dry ground, as ports around the world no longer allowed crews to leave their ships. On top of that, there was the anxiety that when they did finally get home, they might not be able to go back to sea when they needed to earn more money to support their families.

As the pandemic spread around the globe, we immediately expanded our Wellness at Sea resources to address the issues seafarers were facing and rolled out our support to as many seafarers as possible.

We produced podcasts and posters advising crews about what they could do to keep themselves physically safe and giving them coping mechanisms for the mental pressure they were under.

And we produced a new, free programme – the Wellness at Sea Awareness Campaign – to enable shipping companies to share valuable information with their crews over a 27-week period.

The campaign offered advice and support through videos, posters and podcasts as well as giving seafarers the opportunity to contact counsellors and port chaplains through dedicated Sailors’ Society helplines.

Capt. Prashant S. Rangnekar, COO of Elegant Marine Services Pvt. Ltd, manning arm of Fleet Management, said:

“Seafarers are the torch bearers of our industry. When the world was in lockdown, the only movement of goods was by sea.

Johan Smith, Sailors’ Society’s Wellness at Sea programme manager, said: “The most important part of the awareness campaign is to tell seafarers that they are not alone, with the emphasis on where to get help in this trying time.”

“The wellbeing of these essential workers is a top priority, and with this in mind Fleet Management Ltd has chosen to partner with Sailors’ Society to provide a comprehensive wellness programme for our seafarers.”

More than 1,000 ships signed up for the campaign at its launch in July.

21

SAILORS’ SOCIETY

OUR STORY 2020

CONNECTING THROUGH THE STORM

As the pandemic continued, the crew change crisis made life even more difficult for seafarers. Reports of suicides were on the rise and shipping companies were approaching us, greatly concerned about the welfare of their crews.

So we launched Ship Connect: a partnership with shipping companies including Seaspan, Dorian LPG and Fleet Management Service to offer the first virtual proactive support service for seafarers.

Our chaplains make regular calls to ships to check in with crews, building a relationship with them through confidential group and one-to-one chats and sharing advice on how to deal with common mental health problems.

Johan Smith said:

“Seafarers can be very distressed

– and in some cases, suicidal – by the time they call a helpline. Sadly, we have been made aware of cases where some crew haven’t reached out, with tragic consequences.

“With Ship Connect, our chaplains become a friend to seafarers through regular contact. That way, we can address any challenges they’re facing before they spiral out of control, and if they are struggling, they are more likely to reach out to someone they know and trust.”

1,200 SEAFARERS RECEIVED PROACTIVE MENTAL HEALTH SUPPORT ON BOARD SHIPS THROUGH OUR UNIQUE SHIP CONNECT PROGRAMME.

CHAPLAINS REGULARLY CONTACT SHIPS, GETTING TO KNOW THE SEAFARERS ON BOARD AND IDENTIFYING ANY WELFARE ISSUES EARLY ON.

“WE HAVE LOST EVERYTHING”

Ordinary Seaman Bhupendra’s (pictured right) parents were waiting excitedly for his phone call to say he’d landed back on Indian soil after 13 months at sea.

But the call that came was from one of Bhupendra’s crewmates in Dubai, breaking the news that no parent can bear to hear. Their 23-year-old son’s lifeless body had been found in the boiler room the previous day, in an apparent suicide.

“The call has devastated our lives,” said Suresh, Bhupendra’s father. “My wife is totally broken.”

Young people like Bhupendra are attracted to a career at sea for the money and adventure, but are often unprepared for the challenges that come with the job.

Bhupendra joined the tanker, the MT Princess, as the coronavirus pandemic began to spread around the globe, causing great stress to huge numbers of seafarers working thousands of miles away from their loved ones.

Three months before he died, Bhupendra completed his contract and was ready to return home. According to the captain, the young seafarer became upset when, like hundreds of thousands of other crews in recent months, his requests to leave the ship were denied due to coronavirus.

Shortly before his death, Bhupendra told his family that his ship was being decommissioned and would be making its final voyage to India. His parents cannot understand why he did not come back to them alive.

“I don’t know what happened to my son,” said Suresh, in a letter to the Director General of Shipping, pleading for more information from the shipping company.

“Sir, I hope you will understand our mental agony. We have lost everything.”

22

23

OUR STORY 2020

SAILORS’ SOCIETY

Delivering Christmas cheer to stranded cruise workers

WE HAVE 112 CHAPLAINS. WORKING IN 22 COUNTRIES

One of the enduring images of 2020 is the lines of cruise ships anchored along coasts around the world, as holidays were halted by the pandemic.

Many of these were manned by skeleton crews, who spent several months stranded just a few miles from the coast. In the UK port of Southampton, the hundreds of men and women working on these ships could occasionally set foot on dry land for a few hours – but they were restricted to a small area of the port.

Our seafarer centre manager in Southampton, Simon Mobsby (pictured right), invited them to get their online shopping and post delivered to the centre, and as Christmas approached he delivered more than 200 parcels every month to the ships when they came into port.

“They have no access to the outside world at all, so I do it on their behalf,” he said.

“Their faces light up when I bring them letters and gifts from family and friends. It’s a privilege to be able to play Santa.”

We also wrapped our own Christmas gifts for the crews - and Simon even delivered gifts from one cruise ship to the other.

A seafarer with appendicitis had to wait three months for hospital treatment because ports were closed. Our chaplain Edward gave him regular pastoral support over the phone during his ordeal

“People who worked together in the past are now on different ships and they’ve not been able to see each other for nine months,” he said.

“One crew sent a gift order to me on WhatsApp and I delivered the presents to the other ship. When I explained who they were from, they were over the moon.”

25

SAILORS’ SOCIETY

OUR STORY 2020

THEY ARE NOT ALONE

When we took the difficult decision in March 2020 to temporarily suspend our port operations due to coronavirus, I was devastated.

physically be with seafarers and families again. But until then, they know that I will answer my phone to them any time of the day or night and will do everything I can to give them the help they need.

came announcements of national lockdowns and we were confined to our homes. The activity we were used to doing every day was suddenly dangerous and our face-to-face work was forced to stop.

Going into ports, visiting ships, giving crews a lift to the doctor or the shops, delivering food to seafarers’ families in need – these are the things that my colleagues and I, working at the front line of Sailors’ Society, do every day.

As Sailors’ Society chaplains, we have arranged for medical supplies to be delivered to stranded seafarers. We have comforted those who have been worried and afraid, those who are missing their families and those who have lost family members to Covid. Tragically, we have also arranged for the bodies of seafarers to be returned home following accidents or suicide.

We knew it was necessary to keep both us and seafarers safe; but we also knew that it would cause even more isolation and mental anguish to the men and women we are here to serve.

At the start of 2020, I was making regular visits to ports and had just set up a mobile medical unit in Chennai, visiting retired seafarers and their families and offering them vital healthcare.

More than ever, we were determined to let them know that they were not forgotten.

I would sit with families whose loved ones were in prison or had died at sea thousands of miles away, helping them to find out what had happened, speaking to lawyers and, in the worst cases, making funeral arrangements. My physical presence was a visible comfort for them. By being there, I was saying: we care about you, you are not alone.

As the pandemic continues, restrictions come and go across the ports where we work, depending on the severity of the virus.

In and through everything, we have continued to stand alongside those who need us in 2020, even from afar. We have, and will, continue to let them know that even if they are isolated, they are not alone.

Wherever we are able to enter ports, let them know that even if they are isolated, they are not alone. we do: even if we can only drop off food, mail or medicine at the bottom of the gangway and shout greetings Manoj Joy, from a safe distance, we can still be a Community Development Manager friendly face in a faraway port. Sailors’ Society India I long for the day when I can

But then the virus began to take hold, and like a global game of dominos, one port after another put a ban on movement to and from ships. Then

Feeding thousands with a special partnership

Rather than let it go to landfill, Sailors’ Society’s local chaplain, Pauline Robertson, put them in touch with the local food bank, FareShare. The donations, which equated to over 30 pallets worth of food and included cereals, dried fruits, jams, cured meats, baking ingredients, rice and more, were distributed across the region.

Pauline said: “It’s wonderful that Fred. Olsen Cruise Lines wanted to benefit the local community and not let the food go to waste. We have a great relationship with the local agents and food banks, so when the call came through about the donation, I knew exactly where to direct them. We’re supporting many seafaring families through the pandemic and it’s amazing to see something positive come out of these tough times.”

The pandemic sparked a food crisis for many – and a partnership with Sailors’ Society enabled a generous cruise company to make a huge difference to Scottish communities in need.

With the cruise industry on hold, Fred. Olsen Cruise Lines was left with £33,000 of food aboard four ships berthed in Rosyth, Scotland.

26

27

SAILORS'SOCIETY OURSTORY2020 OUR RESP@NSE 2020 li 29

Number of ports we work in around 89 the world.

Welfare grants were given out to seafarers between 137 January and October 2020. Parcels were delivered by our Southampton team in a month to cruise ship crew unable to 200 leave the port. Seafarers, most with suspected coronavirus, who were quarantined for weeks off the Andaman Islands 450 received emergency medicine.

130

CALLS WERE MADE PER MONTH TO SAILORS’ SOCIETY’S HELPLINE SET UP IN RESPONSE TO CORONAVIRUS.

37 SAILORS’ SOCIETY CRISIS RESPONDERS ARE AVAILABLE 24-7 TO SUPPORT SEAFARERS, THEIR FAMILIES AND SHIPPING COMPANIES DURING TRAUMATIC INCIDENTS SUCH AS ACCIDENTS, PIRACY AND NATURAL DISASTERS.

Ships signed up to our free Wellness at Sea awareness campaign, a 27-week introduction to seafarer 1,000 mental health and wellbeing.

Seafarers are receiving proactive mental health support on board ship through our unique Ship Connect programme.

mental health support on board ship through our unique Ship 12,000 Connect programme. Seafarers, of all faiths and none, were reached by our chaplains every month in 2020. 23,000

CRN

IN 2020, OUR CRISIS RESPONSE NETWORK RESPONDED TO AN AVERAGE OF NINE CRISES AT SEA EVERY MONTH, INCLUDING PIRACY, BEREAVEMENT, ILLNESS AND SEAFARERS GOING MISSING.

30

31

SAILORS’ SOCIETY

OUR STORY 2020

A seafarer’ s story

When chief officer Mark Tiffin is asked how he would describe 2020, he doesn’t hesitate.

“I can sum up the whole year in one word,” he said. “Uncertainty.” Uncertainty for everyone – when would contracts end, could crew see a doctor if they fell ill on board, how long would families wait for their loved ones to return?

“We were blind navigating through thick fog to put a nautical twist on it,” he added.

“As seafarers we are far from naïve about the connectivity of our world and we knew this virus was going to travel. At the start of the year, Chinese crew members were getting the news from home. We could see this happening before the UK media started shouting about it and I told my fiancé ‘This will reach the UK’. But it still took a few months before we realised the severity.”

But he is still cautious during his last weeks of leave, isolating from friends and family to ensure he can return to work safely and on time.

When he joined his ship again in June, everything had changed.

“There was only one international flight per day from Edinburgh and on my flight to Singapore there were 15 passengers rather than the usual 400. Seven of those 15 were seafarers. It was surreal.”

He thinks the pandemic will last for the next 12 months at least – but with a surge over winter, possibly even longer.

As waves of the virus ripped through countries during the year, seafarers of different nationalities on board went through the same fears for those left behind.

“Travel has improved, we have reliable crew change ports now. But I still have crew being denied medical attention. The bureaucracy I’m going through to get a guy to an emergency dentist is incredible.”

Mark, who has worked on large container ships for 13 years, arrived home for some leave shortly before the UK went into the first lockdown. Crew changes were still happening as normal; there was no testing, no quarantine and airports were as busy as ever.

Currently, four of the 24 crew on his ship had Covid during their last leave. Only he and two others – both Chinese – have been vaccinated.

He has heard the horror stories too – a chief engineer who was vomiting blood but wasn’t able to go ashore to see a doctor, another colleague with a ‘smashed up molar’ who had to endure terrible toothache all the way from China to Germany.

Through it all, the continued remote contact with Sailors’ Society chaplains has been invaluable, he said.

Mental health has been pushed hard, not only by Sailors’ Society but by the industry itself, he added, and seemingly small things like delivering parcels to the bottom of the gangway have become momentous.

“There’s more than one way to make contact with seafarers and Sailors’ Society overcame the challenge of not being able to physically board ships really quickly.

“A particular rapport with a chaplain means so much. If the crew has somebody they can trust, talk to and confide in that’s a big help. It’s been an incredibly tough year and having that someone to talk to can give crews the strength and mental top up they need. A conversation is so simple, but it can make the world of difference to someone.”

Hundreds of thousands of seafarers have now benefitted from the ShipVisitor welfare app, which helps to provide continuity of care as ships and their crew move from port-toport. Developed by Sailors’ Society, the app is used free of charge around the globe by 23 different maritime welfare organisations, who provide chaplaincy support to seafarers far from home.

Jason Zuidema, General Secretary of ICMA said:

“Ship visiting is a central activity of seafarers’ welfare providers. The ShipVisitor app is a dynamic tool that allows ship visitors to accomplish their work more efficiently but especially it gives them a way to give even better care to seafarers.

“ICMA is thankful to Sailors’ Society for its willingness

to make this great tool available for our members around the world.”

32

SAILORS’ SOCIETY

OUR STORY 2020

CREW CHANGE CRISIS When cargo ship chief officer Taylan Simsek arrived at Leith port in Scotland in December 2019, he was brimming with excitement and pride.

His wife had just WhatsApped him the scan photo of their baby from her appointment back at home in Turkey.

For Taylan, the crew change crisis meant missing the birth of his firstborn son.

He showed off the photo to Sailors’ Society’s port chaplain Pauline Robertson, who visited the ship regularly to bring the crew treats from town and offer them any support they needed.

He and his wife named their baby Atlas, after the mythical Greek strongman, because they know the importance of staying strong when life gets tough.

“Taylan was beaming from ear to ear,” Pauline remembers.

“He had just started his five-month contract, so he knew it was going to be tough being away at sea for most of his wife’s pregnancy, but he was thrilled at the thought of returning home in the spring, when his son was due.” But when the winter weather started to lift, Taylan’s hopes of welcoming his baby into the world melted away with it, as coronavirus started sending shockwaves around the world.

• “It’s a very hard time for us,” Taylan told us, as he waited for signoff off the coast of Algeria.

“I’ve never stayed on board for nine months. I’m already very tired, physically and mentally. But my wife is more tired because of the baby and because of the environment, the virus, everything, she’s stressed, thinking too much, losing a lot of weight, and I’m thinking of them.”

With lockdown, trade began to evaporate and hundreds of ship sailings were cancelled. Travel restrictions and reduced airline operations caused a crew change crisis which left hundreds of thousands of seafarers stranded on board ships when their contracts ended.

Taylan finally made it home to his wife and son two months after Atlas was born.

By late 2020 more than 400,000 seafarers were over contract, unable to return home to their families.

Back in Leith, Pauline supported several seafarers in the same position.

• “It’s really hard,” she says. “A lot of them are struggling. They just want to get home.

“One seafarer told me that his flight home has been cancelled twice. It could be another two weeks before it’s rescheduled.

“They can’t wait to see their families, their suitcases are packed and they’re all geared up to go home – and suddenly it’s not happening.”

One of the seafarers Pauline helped, Steve*, didn’t need a plane to get home because his family lives in Scotland, just 400 miles away from the supply ship he was working on. But he still couldn’t see them because he wasn’t allowed to leave the port.

His contract was doubled from four weeks to eight because of the pandemic, at the worst time for him and his family.

One of his daughters lost her best friend to cancer; the other lost her job due to coronavirus. His wife is a key worker, so he was anxious about her safety, and his elderly mother had been taken into hospital, but he couldn’t be by her side.

Pauline said: “They were going through really tough times and they really needed him; he wanted to be with them more than anything. He was desperate to give them a hug; it added considerable stress to an already incredibly tough time.”

*Steve’s name has been changed to maintain his privacy

Our Crisis Response Network is a highly effective trauma response programme which has been operating for more than five years - we have 37 comprehensively trained crisis responders ready 24/7 to support seafarers, their families and shipping companies. There are three established regional hubs in Africa, Asia and Europe. Each hub delivers a different and complementary set of activities and support in response to crises and together they benefit survivors on a global scale.

All hubs provide the following services:

• Tracking and monitoring of piracy incidents, ship casualties, abandonments and other major incidents

• Raising awareness of mental health, stress and trauma, the importance of training and coping techniques

• Combatting stigma related to mental health issues

• Suicide prevention training

• Case management

• Communication with agencies

• 24/7 helplines and chat facility

In 2020, the CRN responded to an average of nine crises every month, including piracy, bereavement, illness and seafarers going missing. While the focus throughout the year was on the effects of the pandemic, we dealt with 22 incidents of piracy between January and October alone.

34

35

SAILORS’ SOCIETY

OUR STORY 2020

COVID ON BOARD:

How we provided vital

medicine during an outbreak at sea

When a suspected coronavirus outbreak on 20 ships off the coast of a tiny Indian island left 300 ill seafarers stranded on board without basic medical supplies for weeks, we knew we could help.

Around 70 per cent of the estimated 450 crew on the ships, near Port Blair on the Andaman Islands, showed symptoms of the virus during the outbreak.

The seafarers, most of whom were from India or the Andaman Islands working on domestic ships, were quarantined on board for more than three weeks without access to basic medicine such as paracetamol or cough syrup.

A local captain told us of the crews’ plight and we contacted our partner, the Voluntary Health Services Hospital in Chennai, India, which provided £500 (GBP) worth of over-the-counter medicine, that we were able to deliver to the desperate crews.

“

Our CEO Sara Baade said at the time:

“The men weren’t allowed on shore because the authorities didn’t want the infection to spread, especially as there is only one hospital on the island and very little medical capacity.

“To have an outbreak of this virus on board ships, where everyone is in a confined space, is frightening enough. When they have no medical supplies, and no possibility of getting ashore for medical help, it must be nothing short of terrifying.”

A brave new world

teams and our own staff based in ports around the UK and parts of Europe. It couldn’t happen in 2020 but the virus wasn’t going to stop us coming together for our Christmas celebrations. We filmed some parts of the service at All Hallows, got chaplains from across the world to film themselves saying prayers or reading verses and edited a service together with video and photographs of our work throughout the year. Anyone around the world could watch our video service on our website and the support from companies wanting to advertise on that page was overwhelming. The service was watched more than 500 times.

home offices, kitchens and lounges, often with children sitting alongside grappling with the complexities of home schooling. A new strategy was formed, a new CEO welcomed, wellness programmes created, fundraising events planned and welfare grants given, all via screen. We missed seeing you all in person though - and look forward to shaking hands again one day soon.

As shaking hands, attending crowded conferences and meeting in board rooms gave way to waving hello and goodbye over Zoom, we all had to adapt to a new way of working. Fortunately, we had switched to Microsoft 365 with Teams just before the lockdowns began so could keep in touch with one another and our many partners and supporters across the globe with ease. We filmed a number of videos via screen this way as well as media interviews on the crises unfurling. We spoke at conferences, gave presentations to funders, chaired panels and joined IMO and ICMA meetings via screen from

One of the highlights in the calendar every year is our candlelit Christmas service at All Hallows by the Tower in London. It’s an important occasion when we can meet with supporters, ambassadors, shipping industry

36

37

SAILORS’ SOCIETY

OUR STORY 2020

Making an URGENT APPEAL for help

One of the most shocking images on our television screens at the start of the pandemic was that of empty supermarket shelves, stripped clean by panic buyers.

It was a stark reminder of our dependence on the food supply chains that keep our cupboards and our stomachs full - thanks to the hard work and sacrifices of the world’s 1.6 million seafarers.

Our media and advocacy team used these images, alongside the stories we were receiving from crews, to highlight the vital role that seafarers play and the incredibly difficult situation they faced: locked down on board their ships, far from their families, with no idea when they would be able to return home.

We launched our Covid appeal immediately, to raise funds for the important work we knew we needed to do: offering new, virtual services; producing new mental health resources and responding to the increasing requests for emergency grants.

The appeal was the most popular in recent history, with donations of

The media also showed an increased interest in running stories about seafarers’ plight, and we were able to share stories with them and arrange interviews about seafarers trapped at sea, securing coverage across TV, radio and print including BBC, ITV, Times of India and many industry publications and platforms.

£44 604 ,

Families in crisis

By the time Joshua* came to us for help, he had spent all his money on hospital bills for his wife and desperately ill newborn son.

His baby was born in March 2020 - just as Joshua lost his job as a waiter on a cruise ship. When he contacted us in the summer, he didn’t know when he would be able to work again.

These nine Filipino seafarers were left unable to work after Manila went into lockdown. Scheduled to fly out and join their vessels, the COVID-19 quarantine was suddenly called and they were stranded.

We were able to give the family an emergency grant to help them survive, for a few months at least.

Joshua’s story became all-too familiar in 2020. Coronavirus restrictions and the resulting crew change crisis meant that hundreds of thousands of seafarers lost their jobs or were unable to board a ship in order to work to support their families.

Desperate and anxious, with funds running low, they contacted us for help. Thanks to the generosity of our supporters, we were able to provide an immediate grant to pay their rent and food costs.

Often, when a seafarer is unable to return to sea, our community support workers help them find alternative work on land to put food on the table.

But in 2020, in the poorest seafaring communities in the Philippines and India, coronavirus destroyed all alternatives. Tourism was decimated. Building work was on hold. Restaurants were closed. Cities were on lockdown.

We were overwhelmed with appeals for help, giving out on average more than seven times the number of grants every month, compared to 2019.

Single mum Lucy Enero, 36, from the Philippines, works as a cruise ship security guard to support her two-year-old daughter Louvi and her 77-year-old mother Lorenza, who has stage four oral cancer.

As we move forward from 2020, our hope is that opportunities will begin to open up again; that seafarers will be able to return to work at sea or find another job to sustain them until this is possible.

The pandemic has left Lucy unable to work and the family with no income. Lucy was faced with being unable to afford pain relief or special milk for her mother, who is unable to eat solid food, until we stepped in to fund Lorenza’s food and medical care.

But this does not look like it will be quick or easy. One thing is for sure: seafarers will desperately need our welfare grants, and our chaplaincy support, for some time to come.

Lucy said: “Me and my family are very thankful. Sailors’ Society is the best organization ever!”

*Joshua’s name has been changed to protect his privacy.

38

39

SAILORS’ SOCIETY

OUR STORY 2020

WELFARE GRANTS:

Sailors’ Society has emergency welfare and crisis grant funds to help serving merchant seafarers, retired seafarers and their dependents. These funds provide a vital lifeline to those whose lives have been affected by a crisis at sea, including piracy and abandonment, or unemployment. Grants give financial aid with mortgages, utilities, home or business repairs and medical costs, as well as routine and lifesaving treatments and procedures.

JAKARTA MEDICAL CLINIC:

KEEPING KIDS LEARNING IN LOCKDOWN

The pandemic forced schools around the world to close, with children suddenly plunged into learning at home. For schoolkids living in remote islets in the Philippines, home learning seemed impossible without internet provision – until Sailors’ Society stepped in.

Gavin Lim, regional development manager for Sailors’ Society in Asia said:

The 200 pupils who live on remote islets in the province of Cebu are only able to access the outside world by sea. Even their school, Sulangan Integrated School, is across the water on the neighbouring island of Bantayan, so getting work to them during lockdown was a challenge without any internet provision.

“Lack of internet access means the education gap is becoming even wider for children in the most deprived areas of the Philippines, so we urgently needed to offer something to support them.

We had been running a school ferry boat service to the islets before lockdown, so we repurposed the boat to deliver books and schoolwork to the children two or three times a week after the school closed in March, through the whole of 2020.

“These books are the only way these children have been able to continue any kind of education since their schools were closed.”

Lockdowns and a military coup stalled the build of a new school to support children in impoverished seafaring communities in Myanmar. We partnered with Habitat for Humanity to build the classrooms for some 338 children in Yangon and work finally began in December 2020. The school was completed in early 2021.

Headteacher Daw Thida said: “Many of the school buildings here are not comfortable for students, so I am looking forward to receiving our new school building.”

Gavin Lim said: “We’re delighted that, by working together with Habitat for Humanity, we have been able to make a difference to the lives of so many families in these seafaring communities.”

The Jakarta Medical Clinic, which is funded by Sailors’ Society, treated 330 patients in 2020. The clinic was closed from April to December, but in November and December helped with coronavirus testing for people living nearby. Some 30 people who were tested through the clinic tested positive.

MOBILE MEDICAL UNIT:

Our Mobile Medical Unit in Chennai provides retired and active seafarers and their families with free check-ups and basic medical services. Through a partnership with the Volunteer Health Services Hospital, we fund the operational costs of the ambulance and medical expenses of our beneficiaries. Fortunately, the service was not subject to movement restrictions and carried out 541 consultations with 756 people using the pharmacy and 37 using the laboratory services.

41

SAILORS’ SOCIETY

OUR STORY 2020

SAILORS’ SOCIETY

OUR STORY 2020

Trustees’ Report for the year ended 31 December 2020

Effect of COVID-19

VISION, MISSION AND OBJECTS

Throughout this report we have outlined the effects of COVID on our work. The financial impacts of COVID can be found under the financial review section.

The vision for Sailors’ Society in 2020 was to be a leading charity for the welfare and well-being of seafarers and their families worldwide.

PROGRAMME

Our mission was to meet the practical, emotional and spiritual needs of seafarers and their families at home, in port and at sea.

Sailors’ Society delivers a number of different programmes and projects, all set up to support our charitable objectives. The activities under our programmes and projects are summarised under the following headings:

We reviewed our vision and mission as well as objectives at the end of 2020 and the details of that work can be found in the section titled ‘Our Strategy’.

Chaplaincy

Sailors’ Society’s core welfare and wellbeing provision to seafarers is through its port chaplaincy services. The sections titled ‘Chaplaincy’ and ‘Our response’ highlight the excellent work our team of chaplains provided.

Promotion of our charitable purpose

We actively inform the public about our cause and promote our activity to raise awareness of the ongoing needs of seafarers and their families. We regularly assess welfare provision in the locations where we are working and in locations that have limited or no welfare provision, to find new opportunities to achieve our mission. The first 43 pages of this report outline a number of different ways that we have done this in 2020.

Education

Sailors’ Society seeks to encourage people to engage in careers at sea. To that end, we do all we can to remove the barrier of financial hardship that precludes promising students from pursuing a career at sea or existing seafarers gaining supplementary qualifications to advance their careers. Details of what we did to support education in 2020 can be found in the section titled ‘Keeping Kids Learning in Lockdown’.

CODE OF CONDUCT

Details of our code of conduct can be found in the section ‘Our Strategy’ on page 12.

Relief of poverty and distress

STRATEGIC REPORT

The Society continued to provide programmes and projects to relieve the poverty and distress of seafarers, their families and dependents globally. Details of our emergency welfare grants and crisis grants can be found in both the case studies and articles earlier in the report.

Details of our strategy and our programme, advocacy and development work can be found in the first section of this annual report with statistical highlights of our work in the section titled ‘Our Response’. In reporting our impact and progress through the year, we assessed our activities against the charitable objectives for the benefit of seafarers and their families as laid out in our governing document.

Retired seafarers

Sir Gabriel Wood’s Mariners’ Home in Scotland closed in February 2021. The decision followed a lengthy review of

the Greenock care home’s future due to a sharp decline in the number of mariner beneficiaries, coupled with concerns over the resources needed to maintain the standards we set. The pandemic placed significant added pressure on the home and its staff.

Family outreach activities

Family outreach officers based in India, Russia and the Philippines work within seafaring communities to support the families of seafarers. They provide welfare support and perform a range of activities and the Society funds a number of initiatives run by third parties. Details of those activities and projects can be found in the first section of this report.

Wellness at Sea

This continues to be one of our flagship programmes and details of our delivery as well as plans for the future can be found in the Wellness at Sea section earlier on in this report.

Crisis Response Network

The Crisis Response Network is a highly effective trauma response programme which has been operating successfully for more than four years. Details of what we delivered in 2020 can be found in the section titled ‘Crew Change Crisis’ and the CRN article earlier in this report.

MEDIA & ADVOCACY

Almost everything the communications team did in 2020 was related to the COVID-19 pandemic. But we began the year with a big story on the launch of our new library boats in the Philippines, which we pushed out to the media to coincide with World Book Day. A photo and video shoot of children on the tiny islets using the service for the first time reaped huge rewards in terms of media interest and we received global coverage across print, radio and television.

As the pandemic took hold though, the full resources of the team went into producing related materials for seafarers and their families as well as communicating the work we were doing and the crises seafarers faced to funders and the wider world. We worked on the new, free 27-week wellness awareness campaign, producing

podcasts for the first time on everything from relaxation techniques to our crisis support. A new wellness section for the website was also begun. We also produced fundraising appeals through the year focusing on the hard-hitting stories of seafarers caught up in the crew change crisis, unable to pay vital bills. Unsurprisingly, as seafarers are key to our supply chain, there was increased interest from media through 2020 and we received coverage across the world on major platforms like the BBC World Service. When the BBC ran a feature on abandonment and our work, we saw hundreds of unique visits to our website, the highest number we have ever recorded in a single day.

DEVELOPMENT

As a result of our review of operations, inevitably there have been changes in staff during the year. The need to build new relationships with funders and the need to preserve existing relationships was put into focus with the fundraising strategy being reviewed.

The details of where our funding came from in 2020 can be found in the section titled ‘How We Raised and Used Our Funds’.

FUTURE PLANS

Details of our future plans for programmes, media, advocacy and development can be found in the sections titled ‘Our Strategy’, ‘Q&A with the CEO’ and ‘The Next Chapter’.

OTHER AREAS OF WORK

The majority of our work has been presented previously in this report with one exception:

Lagarie Childrens’ Home, Rhu, Scotland

The Society has noted in its 2018 and 2019 financial statements the potential financial impact on the charity of civil claims relating to the operation by the Scottish Branch during 1949-1982 of Lagarie children’s home, taking into account the uninsured element of estimated awards, legal fees, interest and irrecoverable VAT. Although two claims were dismissed following a hearing in 2020, there remains considerable uncertainty and the total potential financial impact remains the same.

44

45

SAILORS’ SOCIETY

OUR STORY 2020

FINANCIAL REVIEW

Overview

The group deficit for the year before investment gains is £2,140,000 (2019: £2,584,000), an improvement of £444,000. Listed investments fell heavily in the first quarter as the markets were affected at the start of the pandemic but they recovered and the net effect of investment sales and changes in value was a deficit of £19,000 resulting in an overall deficit of £2,159,000.

The balance sheet total has reduced from £7,869,000 to £5,710,000. The cashflow statement shows net liquidations of investments to finance the deficit of £1,527,000 during the year and a net cash outflow of £172,000 with year-end cash reserves standing at £332,000, down from £504,000 the previous year.

Income

----- Start of picture text -----
2020 2020% 2019 2019 % Year on year
split split change
£000’s £000’s £000’s
Donations and legacies 471 20% 847 29% -376
Charitable activities 1,246 53% 1,279 44% -33
Other trading activities 192 8% 368 13% -176
Investments 206 9% 267 9% -61
Other income 238 10% 138 5% +100
Total 2,353 100% 2,899 100% -546
----- End of picture text -----

Retention Scheme, which part-offset these reductions. The Society also sublet part of Seafarer House to raise additional rental revenue.

2019 donations included £129,000 from a trust with

whom the Society had historical relationships stretching back many years. Removing this, the underlying reduction in legacy and donation income is £247,000 of which

Listed investment income continued to fall as the Society used its investments to fund its operations alongside reduced yields due to the effect of the pandemic on global earnings and dividend distributions. Details are shown in notes 2 to 6 of the financial statements.

£109,000 relates to legacies. Other income sources were adversely affected by the pandemic, notably our charity shops (down £129,000), our seafarers’ centres (down £51,000) and our fundraising events (down £47,000). The Society was eligible to benefit from £226,000 in receipts from charity shop retail grants and the Coronavirus Job

Expenditure

----- Start of picture text -----
2020 2020% 2019 2019 % Year on year
split split change
£000’s £000’s £000’s
Raising funds 841 19% 1,176 21% -335
Charitable activities 3,652 81% 4,307 79% -655
Total 4,493 100% 5,483 100% -990
----- End of picture text -----

rent holidays and rates relief and other overhead savings as our shops were closed for much of the year. Within charitable activities there were cost savings in nearly all areas due to restructuring and a reduction in headcount with some activity curtailed by the pandemic as well as non-recurrence of a large building project in the Philippines

Costs of fundraising events, corporate sponsorship and commercial activity reduced by £213,000 in line with the reduced level of activity within events in particular and the winding down of the BySea coffee operation, which ceased at the end of 2020. Charity shop costs reduced by £112,000 due to the closure of two of our six shops plus

in 2019. Support costs included within expenditure reduced by £97,000 in the year. Full details of expenditure are included in notes 7 and 8 of the financial statements.

Investment gains

Investment losses total £19,000 of which £158,000 was lost on the sale of stocks and shares sold during the year. This was almost entirely offset by unrealised gains of £139,000 resulting from the uplift in value of investment property and listed investments remaining at the end of the year.

Sailors’ Beneficial Enterprises Ltd (“SBEL”) and Sir Gabriel Wood’s Mariners’ Home (“SGWMH”) are both showing a net liability position on their balance sheets. In respect of SBEL, the deficit arises due to now discontinued commercial activity. Efforts are being made to generate more profitable commercial income streams, but Trustees acknowledge returning to a net asset position will be a long-term objective. In respect of SGWMH, deficits have arisen in recent years due to the reducing levels of occupancy in the care home, hindered by the COVID pandemic. Final residents left in February 2021 after the announcement of the plan to close the home at the end of 2020. Sailors’ Society has given grants to SGWMH in 2021 to return the balance sheet to a net asset position.

REVIEW OF INVESTMENT PERFORMANCE

In managing our financial reserves and regularly assessing market risk, our Finance and General Purposes Committee draws up the investment policy and we review this periodically. Our investment strategy is to accept a level of medium risk with a balance sought between realising a target income and achieving capital growth. Investments are divided between equities, bonds, property and cash. Our investments include selfmanaged investment property and listed investments.

Updates on the value of the listed investment portfolios are provided to us quarterly and each investment portfolio manager is required to produce quarterly commentaries on performance and to attend a meeting of the Finance and General Purposes Committee once a year. We discuss the performance of the investments at these meetings, the prevailing and anticipated economic conditions, a forecast of future trends and we look at

our future cash requirements to be funded by these investments. The investment yield on our investment property is separately monitored against the market.

The investment managed by Investec is a traditionally structured portfolio of individual stocks selected and traded by our account manager within a given risk profile. Performance is measured against a bespoke benchmark. The Cazenove fund is a ‘pooled investment’ vehicle. The investment mix is determined by the fund manager and based upon tactical ranges for the different investment types. The fund’s total return target is the rate of inflation plus four per cent over an economic cycle (typically five to seven years) while aiming to meet this target with around two-thirds of equity market volatility.

The total return for invested funds during the year was:

----- Start of picture text -----
Year Last three years
Actual Benchmark Actual Benchmark
Investec
+2.7% +2.2% +14.4% +12.7%
(£2.01m)
Cazenove
+7.0% +4.6% +17.0% +14.6%
(£1.98m)
----- End of picture text -----

REVIEW OF THE LEVEL OF FINANCIAL RESERVES

Our Reserves Policy

Reserves are needed to bridge the gap between the spending of income and the receiving of income and to cover unplanned expenditure and any other contingencies arising. The Trustees consider that, based on the current level of activity of the Society, reserve levels should be maintained at a level of between 24 and 36 months’ expenditure in order to provide the appropriate level of financial resource so that our core activities can continue during a prolonged period of unforeseen difficulty. Financial performance in recent years has depleted our reserves substantially.

To achieve this level of reserves, the Society is investing in charitable programmes to be funded by sustainable income over the coming years. Designations of funds have been made in respect of a retirement provision for overseas staff and an educational grant programme.

46

47

SAILORS’ SOCIETY

OUR STORY 2020

Reviewing the Reserves Policy

We review our reserves policy annually in conjunction with setting our budgets and reviewing progress against our strategic plans. We discuss the levels of realisable reserves, any major commitments to be financed by the Society and our future obligations. We consider the risks to future income, the level of predicted expenditure and the impact of any adverse effect on investment fund movements.

Level of Reserves Held

At the end of 2020 our total reserves were £5.7 million. The endowment and restricted funds totalled £1.5 million. The remaining funds were unrestricted at £4.2 million and these contained fixed assets used in the charity of £1.0 million and other designated funds of £0.1 million. Allowing for these, free reserves stood at £3.1 million, which equates to 14 months of total unrestricted expenditure. This is below the range of 24 to 36 months as set out in the policy, and the intention is to replenish free reserves to within this range in the future.

PRINCIPAL RISKS AND UNCERTAINTIES

We operate a formal risk management process where the Trustees and Senior Leadership Team together identify and review the main risks to the Society, their probability of occurrence, the possible impact and the consequent actions necessary to manage, reduce exposure or eliminate the risk. The Risk Register is reviewed annually by the Trustees, kept under review by committees and the Senior Leadership Team identifies and monitors risk on a daily basis, updating the register as appropriate.

The main risk areas are:

• Financial (including money laundering, investment risk and risk to revenue income streams);

• Operational (including personnel).

The following subsidiary risk areas can have both a financial and operational effect:

• Legal and statutory (including health and safety);

• IT systems integrity and resilience, database backup and data protection;

• Society reputation.

Financial Risks

The main financial risk to the Society is having enough funds readily available to meet our planned operational and administrative needs to deliver our services to our core beneficiaries. We believe that maintaining readily realisable free reserves at the level stated in this report will provide sufficient resources in the event of any unplanned, adverse conditions arising. The likelihood of this main risk occurring is affected by a number of other subsidiary risks such as:

1. Diminishing appetite for participants taking part in our fundraising events;

2. Over-reliance on a number of key sponsors and supporters;

3. Circumstances out of our control affecting the ability of supporters, primarily in or related to the shipping industry, to donate to us (e.g. economic downturn, global pandemic);

4. Reduction in income and capital returns caused by a decline in the stock markets or in other investment portfolios;

5. The risk management methodologies taken to counter steps 1 to 3 above are not successful.

In relation to risks one to three, the Society has undergone a fundraising strategy review with the aim of diversifying its income streams to prevent overdependency on any one sector. In relation to risk four, the Society has split its listed investments between two investment houses; one providing the traditional portfolio model and the other being a structured product which aims to achieve above inflation returns while seeking to do this with reduced volatility compared to equity markets.

Operational Risks

Operational risks run across all areas of activity - predominantly programme and fundraising – and the main risks have been identified as:

1. Liabilities resulting from safeguarding, health and

2. safety and non-compliance for past, present and future beneficiaries;

3. An unknown event occurring that has a societal impact and affects our ability to operate in a conventional manner, curtailing our usual activity.

In relation to risk one, the Society has taken out appropriate insurances to cover public indemnity, provides appropriate training and guidance to mitigate the risk of occurrence and carries out appropriate background checks on new employees upon recruitment. Managing risk two involves working flexibly at all levels and changing our method of service delivery in our charitable work to provide alternative solutions to meet the immediate need.

GOVERNANCE AND SENIOR LEADERSHIP

The Society is a company limited by guarantee without share capital and governed by its Memorandum and Articles of Association. Trustees are also directors of the limited company. The Board meets at least four times a year to consider matters of policy and to review the strategy and performance of the Society. Four subcommittees exist which report to the Board and these committees contain Trustees with senior staff members in attendance. The committees are:

• Finance & General Purposes

• Programme

• Development

• Nominations

A similar system of operation exists for the UK subsidiaries and separate Board meetings are held which report into the main Board as appropriate. A separate Board exists for the Philippines subsidiary and its Chairman reports directly to the Chief Executive and the Programme Committee.

The Society is a partner in joint seafarers’ centre operations in Felixstowe, Portbury and Immingham. These are separate registered charities and the Society is represented on the individual Trustee Boards by a member of senior management who reports back to the Chief Executive and Board.

The Chief Executive is responsible for rrecommending the Society’s strategy to the Board and for all ongoing operations of the Society, ensuring its resources are used effectively and its assets are safeguarded.

Operational decisions are taken by the Senior Leadership Team with Trustees being consulted and advised on a regular basis as necessary.

The Society maintains a register of Trustees’ and the Senior Leadership Team’s personal interests and those of their immediate family members to ensure that any potential conflicts of interest are identified and addressed by the Society.

Details of the Trustees and Senior Management Team are listed at the back of this report.

BOARD CHANGES DURING THE YEAR

During 2020 Joshua Hutchinson joined the Board. A former Royal Marine Commando, he transitioned to the Ministry of Defence as a civilian in 2013 to cover technology and communications activities. In 2014 Josh co-founded ARX Maritime, concentrating on pioneering change for safer seas. Under his leadership ARX Maritime has grown as a business and now supports some of the world’s largest oil, gas and cargo carriers with cutting edge risk prevention solutions.

Michael Drayton resigned from the Board during the year having been joint Vice Chairman, Chair of the Finance & General Purposes Committee and Chair of Sir Gabriel Wood’s Mariners’ Home Trustees. Michael served as a Trustee for nearly eight years and the Board wishes to express its gratitude to Michael for his hard work and dedication in these roles during this period.

Finally, the Trustees would wish to put on record the death of one of our Vice Presidents, Captain Andrew Tyrrell, who died in February 2020. Andrew was Chairman of the Board between 1992 and 2002 and served as a director from 1967 until 2002. The current Chairman sent the Society’s condolences to his family and the Society was represented at his funeral.

48

49

SAILORS’ SOCIETY

OUR STORY 2020

BOARD RECRUITMENT AND DEVELOPMENT

New Trustees are sourced from recommendations made by existing Trustees and their networks. Upon election, a Trustee participates in a formal induction plan tailored to individual needs. This covers an understanding of the Society’s business and the aspects of ministry, welfare, education support, and the relief of poverty and distress. New Trustees meet our key staff and stakeholders and receive information about their Trustee responsibilities and committee work.

There is no requirement for any Trustee to stand down upon reaching a particular age or term of office. The Board maintains and regularly reviews the skills of Trustees, in accordance with best practice, to ensure the needs of the charity are well supported through the collective skillset and experience. The Board considers nominations for new Trustees and candidates are interviewed prior to appointment to ensure they can add value and bring relevant skills and experience.

STAFF PAY POLICY

Our principles are to pay our staff a fair salary that is competitive within the charity sector, and that is proportionate to the complexity and responsibility of each role. We do not compete on pay with the public or private sectors.

GRANT MAKING POLICY

The Society provides grants to organisations and individuals who add value to its work or help it achieve its charitable objects. This is particularly the case in locations where the Society has no permanent presence or infrastructure to support its target beneficiaries. In these places we identify the most effective organisations and individuals to help us. Grants are normally given under the following headings:

• Operation of seafarers’ centres

• Seafarer communities (including construction works)

• Chaplaincy provision

• Seafarer general welfare

• Educational

PUBLIC BENEFIT

In assessing the public benefit of the activities we undertake as Trustees of the charity, we confirm that we have complied with our duty under Section 17 of the Charities Act 2011. We also state that we have given due and proper regard to the guidance issued by the Charity Commission on delivery of public benefit, including the supplementary guidance.

FUNDRAISING PRACTICES

Our main sources of fundraised income are from corporates predominately within the maritime sector and on a global scale. In the UK we raise funds from individuals on a smaller scale, mainly through direct marketing and individual giving. We are registered with the Fundraising Regulator and we ensure our fundraising activity complies with the standards expected by today’s public, enshrined in the Code of Fundraising Practice, our methods being legal, open, honest and respectful. We are pleased to report that there were no complaints about our fundraising practices in 2020.

VOLUNTEERS

Our volunteers provide important additional resources to ensure effective delivery of our programme, help raise funds for our work and increase the profile of the Society. We have approximately 500 volunteers working across the following areas:

• Trustees who commit much of their time to provide strategic leadership and governance;

• Volunteer ship visitors who support our chaplains around the world and honorary chaplains who work independently;

• Charity shop volunteers who contribute their time on a regular basis;

• Individual representatives of the Society in their own churches who distribute our news and promote our work and campaigns;

• Volunteers involved on a monthly basis preparing items for Christmas parcels;

• Ambassadors who network in the industry to promote awareness of the Society’s charitable work, purpose and fundraising opportunities;

• Knitters who make woolly hats, which are widely distributed in Christmas parcels for seafarers and regularly sent to chaplains around the UK and overseas to give out on ship visits.

Unfortunately, volunteer activity during 2020 was curtailed by the pandemic so the number of active volunteers would have been lower than the number quoted above. Measurement issues, including attributing an economic value to volunteers’ services, prevent inclusion of their contribution in the Statement of Financial Activities.

STATEMENT OF THE FINANCIAL DUTIES AND RESPONSIBILITIES OF TRUSTEES Company law requires that the Trustees prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Society company and the Society group as at the balance sheet date and of its net incoming resources and application of those resources, including the net income and expenditure of the group for the financial year. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and apply them consistently, observe the methods and principles in the Charities SORP, make judgements and estimates that are reasonable and prudent and prepare the financial statements on the going concern basis, unless it is not appropriate to assume that the charitable company will continue on that basis. We also state here that applicable accounting standards have been followed subject to any material departures being disclosed and explained in the financial statements.

As Trustees (who are also the directors of Sailors’ Society for the purpose of Company Law), we are responsible for preparing this annual report and the associated financial statements in accordance with applicable law and accounting standards of the United Kingdom – known as United Kingdom Generally Accepted Accounting Practice.

We are responsible for keeping accounting records, which disclose with reasonable accuracy the financial position of the Society. They should enable us to ascertain its financial position and to ensure that we comply with the

Companies Act 2006 and with the requisite statutes and other charity and company legislation as required. We are responsible for safeguarding the assets of the Society and for taking all reasonable measures to detect and prevent fraud and any other irregularities that may arise.

AUDITORS

A resolution to appoint Mazars LLP as our auditors for a further year will be proposed at the General Meeting to be held on 13 August 2021.

STATEMENT OF DISCLOSURE BY TRUSTEES TO THE SOCIETY’S AUDITOR

In so far as the Trustees are aware at the time of approving our Trustees’ Annual Report:

• There is no relevant information, being information needed by the auditor in connection with preparing their report, of which the group’s auditor is unaware, and

• The Trustees, having made enquiries of fellow directors and the group’s auditor that they ought to have individually taken, have each taken all steps that he or she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

This report, including the strategic report, was approved by the Trustees on 13 August 2021 and signed on their behalf by:

Peter M Swift Chairman of the Board of Trustees

50

51

OUR STORY 2020

----- Start of picture text -----
SAILORS’ SOCIETY
How we raised and
used our funds
52
----- End of picture text -----

INCOME:

OTHER TRADING ACTIVITIES INVESTMENTS 8% 9% CHARITABLE OTHER ACTIVITIES INCOME 53% 10% DONATIONS & LEGACIES 20% EXPENDITURE: CHARITABLE ACTIVITIES FUNDRAISING 81% 19%

53

SAILORS’ SOCIETY

OUR STORY 2020

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SAILORS’ SOCIETY

Opinion

We have audited the financial statements of Sailors’ Society (the ‘charity’) for the year ended 31 December 2020 which comprise statement of financial activities, the balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 December 2020 and of the group’s loss for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 group’s or the parent charity’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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Trustees’ Report and the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Trustees’ Report and the Directors’ Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report or the Directors’ 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:

• adequate accounting records have not been kept by the parent, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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 Trustees

As explained more fully in the Directors’ Responsibilities Statement set out on page 51, 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 and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the 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 the financial statements.

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the ‘charity’ and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.

54

55

SAILORS’ SOCIETY

OUR STORY 2020

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SAILORS’ SOCIETY

We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

• Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations;

• Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and

• Considering the risk of acts by the group and parent company which were contrary to applicable laws and regulations, including fraud.

Our audit procedures in relation to fraud included but were not limited to:

• Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;

• Gaining an understanding of the internal controls established to mitigate risks related to fraud;

• Discussing amongst the engagement team the risks of fraud; and

• Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 the audit report

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

Jonathan Marchant

(Senior Statutory Auditor)

for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor 90 Victoria Street, Bristol, BS1 6DP

13 August 2021

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Funds Notes £000’s Income and endowments from: Donations and legacies 2 261 Charitable activities 3 100 Other trading activities 4 192 Investments 5 206 Other 6 235 Total 994 Expenditure on: Raising funds 841 Charitable activities 1,918 Total 7 2,759 Net expenditure before (1,765) investment (losses)/gains Gains/(losses) on investments (19) Net expenditure (1,784) Extraordinary item 19 - Transfers between funds 20(f) 1 Net movement in funds (1,783) Total funds brought forward 6,027 Fund balances carried forward 4,244	Restricted Funds (Continuing) £000’s 203 - - - - 203 - 274 274 (71) - (71) - (1) (72) 428 356	Restricted Funds £000’s 7 1,146 - - 3 1,156 - 1,390 1,390 (234) - (234) - (75) (309) 184 (125) (Discontinued)	Endowment Funds £000’s - - - - - - - 70 70 (70) - (70) - 75 5 1,230 1,235	Total 2020 2019 £000’s £000’s 471 847 1,246 1,279 192 368 206 267 238 138 2,353 2,899 841 1,176 3,652 4,307 4,493 5,483 (2,140) (2,584) (19) 697 (2,159) (1,887) - (530) - - (2,159) (2,417) 7,869 10,286 5,710 7,869	Total 2020 2019 £000’s £000’s 471 847 1,246 1,279 192 368 206 267 238 138 2,353 2,899 841 1,176 3,652 4,307 4,493 5,483 (2,140) (2,584) (19) 697 (2,159) (1,887) - (530) - - (2,159) (2,417) 7,869 10,286 5,710 7,869
					2,899
					1,176 4,307
					5,483
					(2,584) 697
					(1,887) (530) -
					(2,417) 10,286
					7,869

The statement of financial activities contains all gains and losses for the year and all activities relate to continuing and discontinued operations. The net expenditure for the purposes of the Companies Act 2006 comprises the net expenditure for the year adjusted for realised gains on investment assets and excluding the net expenditure on the permanent endowment fund and was £2,228,000 (2019: £2,931,000).

56

57

SAILORS’ SOCIETY

OUR STORY 2020

CONSOLIDATED AND SOCIETY BALANCE SHEETS AT 31 DECEMBER 2020

Notes Fixed assets Intangible assets 11 Tangible assets 12 Investments 13 Investment in subsidiary undertaking 22 Freehold investment properties 14 Interest free loans 15 Current assets Stocks Debtors 16 Cash at bank and in hand Total current assets Liabilities Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 18 Provisions for liabilities and charges 19 Net assets	Consolidated 2020 2019 £000’s £000’s 121 152 2,411 2,591 3,983 5,559 - - 689 659 16 16 7,220 8,977 31 34 425 479 332 504 788 1,017 (574) (360) 214 657 7,434 9,634 (480) (480) (1,244) (1,285) 5,710 7,869	The Society 2020 2019 £000’s £000’s 121 152 2,112 2,298 3,764 5,357 5 5 689 659 16 16 6,707 8,487 8 9 292 383 277 340 577 732 (288) (302) 289 430 6,996 8,917 (480) (479) (1,244) (1,285) 5,272 7,153	The Society 2020 2019 £000’s £000’s 121 152 2,112 2,298 3,764 5,357 5 5 689 659 16 16 6,707 8,487 8 9 292 383 277 340 577 732 (288) (302) 289 430 6,996 8,917 (480) (479) (1,244) (1,285) 5,272 7,153
			8,487
			9 383 340
			732 (302)
			430
			8,917 (479) (1,285)
			7,153

Notes The funds of the charity Capital funds Endowment funds 20(a)(e) - Revaluation reserve - Other endowment Income funds Restricted funds 20(b)(e) - Revaluation reserve - Other restricted - Other restricted (discontinued) Unrestricted funds General charitable funds 20(c)(e) - Revaluation reserve - Other general charitable Designated funds 20(d) Non charitable funds 20(c)	Consolidated 2020 2019 £000’s £000’s 649 659 586 571 1,235 1,230 - - 231 612 (125) 184 231 612 1,668 2,015 1,821 3,038 1,325 1,515 (570) (541) 4,244 6,027 5,710 7,869	The Society 2020 2019 £000’s £000’s 689 659 308 392 997 1,051 - - 301 366 - - 301 366 1,653 2,007 1,052 2,321 1,269 1,408 - - 3,974 5,736 5,272 7,153	The Society 2020 2019 £000’s £000’s 689 659 308 392 997 1,051 - - 301 366 - - 301 366 1,653 2,007 1,052 2,321 1,269 1,408 - - 3,974 5,736 5,272 7,153
			1,051
			- 366 -
			366
			2,007 2,321 1,408 -
			5,736
			7,153

The accompanying notes are an integral part of the financial statements.

The accounts were approved by the Board of Directors on 13 August 2021 and signed on its behalf by:

Peter M Swift Chairman

Company number 86942

58

59

SAILORS’ SOCIETY

OUR STORY 2020

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

Net cash outfow from operating activities Cash fows from investing activities Interest and rents received Dividends received Payments to acquire tangible and intangible fxed assets Purchase of investments Receipts from sale of tangible fxed assets Receipts from sale of fxed asset investments Net cash provided by investing activities Cash fows from fnancing activities Capital repayments Interest paid Change in cash and cash equivalents in the reporting period Bank and cash balances at 1 January 2020 Bank and cash balances at 31 December 2020 Reconciliation of changes in resources to net cash outfow Income (excluding investment income) Expenditure (excluding interest payable) Changes in resources before revaluations Depreciation, amortisation and impairment Decrease in stock Decrease in debtors Increase/(decrease) in creditors (Decrease)/increase in provisions for liabilities and charges Adjustment to Leith Aged Mariners’ Fund liability Defcit/(surplus) on disposal of fxed assets Net cash outfow from operating activities Analysis of cash and cash equivalents Bank balances and cash in hand	2020 £000’s £000’s (1,759) 47 162 (140) (176) 19 1,703 1,615 (6) (22) (28) (172) 504 332 from operating activities 2,147 (4,471) (2,324) 291 3 50 221 (41) - 41 (1,759) 332	2019 £000’s £000’s (2,568) 34 242 (69) (371) 168 2,473 2,477 (20) (22) (42) (133) 637 504 2,632 (5,991) (3,359) 319 9 110 (30) 510 (80) (47) (2,568) 504	2019 £000’s £000’s (2,568) 34 242 (69) (371) 168 2,473 2,477 (20) (22) (42) (133) 637 504 2,632 (5,991) (3,359) 319 9 110 (30) 510 (80) (47) (2,568) 504
			(133) 637
			504
			2,632 (5,991)
			(3,359) 319 9 110 (30) 510 (80) (47)
			(2,568)
			504

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

Analysis of changes in net debt

Analysis of changes in net debt
Cash Loans falling due within one year Loans falling due after one year Hire purchase falling due within one year Hire purchase falling due after one year	At 1 January 2020 £000’s 504 (19) (479) (1) (1) 4	Cash-fows £000’s (172) 13 - 1 1 (157)	Other non-cash changes £000’s - (7) (1) (1) - (9)	At 31 December 2020 £000’s 332 (13) (480) (1) -
				(162)

60

61

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies

Sailors’ Society is a company limited by guarantee incorporated in England and Wales. The registered office is Seafarers’ House, 74 St Annes Road, Southampton, SO19 9FF.

a) Basis of preparation

The financial statements have been prepared on a going concern basis and under the historical cost convention, other than Sir Gabriel Wood’s Mariners’ Home, listed investments and investment properties which are included on a market value basis. The financial statements have been prepared in accordance with the Charity Commission Statement of Recommended Practice - Accounting and Reporting, by provisions of the Charities SORP (FRS102) - 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 (effective 1 January 2019) and the Companies Act 2006. The Trustees confirm that the charity is a public benefit entity, as defined by FRS102. The functional currency of the Society is Pounds Sterling (GBP) rounded to the nearest thousand.

The Trustees announced the decision to close Sir Gabriel Wood’s Mariners’ Home in December 2020. The related activities have been disclosed as discontinued activities in the statement of financial activity and in the comparative SOFA in note 27.

b) Group financial statements

These financial statements consolidate the results of the Society and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis using uniform accounting policies as set out below.

The Society has availed itself of Paragraph 4(1) of Schedule 1 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 and has adapted the Companies Act formats to reflect the special nature of the Society’s activities.

A separate detailed statement of financial activities and income and expenditure account (SOFA) is not presented for the charity itself following the exemption afforded by section 408 of the Companies Act 2006. The charity’s total income was £1,040,144 (2019: £1,499,211) and its total expenditure was £2,895,420 (2019: £4,880,097). Investment losses were £25,749 (2019: gains £665,584). This results in net expenditure of £1,881,025 (2019: £2,715,302).

c) Company status

The Society is a company limited by guarantee. The members of the Society are the directors. In the event of the Society being wound up, the liability in respect of the guarantee is limited to £1 per member.

d) Fund accounting

Unrestricted funds are available for use at the discretion of the directors in furtherance of the general objectives of the Society.

Restricted funds are funds subject to specific restrictive conditions imposed by donors or through the terms of an appeal. The purpose and use of restricted funds is set out in the notes to the financial statements.

Endowment funds relate to Sir Gabriel Wood’s Mariners’ Home which is held in trust by the Society.

Each of the above funds includes a revaluation reserve representing the restatement of certain assets at market values.

e) Incoming resources

All incoming resources are included in the SOFA when the Society is legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income :-

• Entitlement to legacy income is based on probate being granted before the year end. The amounts included as income are based on actual receipts or notification of intended payment in the following year.

Where legacies have been notified to the Society but the criteria for income recognition have not been met, the legacy is treated as a contingent asset. These are disclosed in note 25.

• Voluntary income received by way of grants, donations and gifts is included in full in the SOFA when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the Society, are recognised when the charity becomes unconditionally entitled to the grant. Grants, where entitlement is related to performance, are recognised when the Society earns the right to the grant through performance of the specified activity. Provision has been made for Income Tax reclaimable at the year end.

• Donated services, facilities and goods for internal use are included at the value to the Society where this can be quantified. Goods donated for resale in the Society’s charity shops are included as income when they are sold. The Society receives support from a wide variety of volunteers. It is not practical to place a value on the time volunteered by all these persons due to the variety of duties performed and the differences in time spent by each volunteer.

• Incoming resources from charitable trading activity and activities to generate funds are accounted for when earned. Fundraising events income is accounted for in the year in which the event takes place. Funds received in advance for future fundraising events are treated as deferred income within creditors and income owed or pledged but not yet received, is treated as debtors to the extent that it is recoverable.

• Investment income is included when receivable.

f) Resources expended

Expenditure is accounted for 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:

• Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the Society’s charity shops. Costs paid in advance for fundraising events are treated as prepayments in debtors and are recognised in the SOFA in the year in which the event takes place.

• Charitable expenditure comprises those costs incurred by the Society in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Grants payable are accounted for when a legal or constructive obligation arises. A constructive obligation arises when the other party has a reasonable expectation of receipt.

• Support costs are those functions that assist the work of the Society but are not incurred directly in connection with charitable activity. Support costs include back office costs, finance, personnel, payroll and governance costs.

These costs have been allocated between the cost of raising

funds and expenditure on charitable activities consistent with the use of resources, i.e. allocating property costs by space occupied, office facilities by head count and management and accounting support on a time spent basis.

Where fundraising is part of a multi-purpose activity and promotes the charitable purpose, a proportion of those costs are allocated to the charitable activity. The basis of the split used is the estimated time spent on the activity.

g) Tangible fixed assets and depreciation

Tangible fixed assets costing more than £250 are capitalised.

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Valuations that occurred before the transition to FRS 102 have been treated as deemed cost, with no subsequent valuations undertaken. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is calculated to write off the cost or valuation of tangible fixed assets, other than freehold land, by annual instalments over their expected useful lives as follows:

Motor vehicles 33% of the reducing balance 25% of the reducing balance Furniture, fittings and equipment Short and long leasehold properties period of lease or period to lease breakpoint Freehold buildings and Sir Gabriel Wood’s Mariners’ Home and Court 2%-5% of building cost or valuation

h) Intangible fixed assets and amortisation

Intangible assets are amortised over their expected economic useful lives as follows:

Computer software

25% of the reducing balance

Computer software costs, whilst in development, are not amortised until the software is in use.

i) Fixed asset investments & investment management fees

Listed investments have been stated at market value at the balance sheet date. Realised gains/(losses) are calculated as the difference between market value at the date of disposal and

62

63

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

market value at the previous balance sheet date. Unrealised gains/(losses) are calculated as the difference between the market value at the balance sheet date and the market value at the previous balance sheet date (or date of acquisition if later).

Investment management fees are accounted for as follows :-

General Fund - percentage of the portfolio value on a quarterly basis shown under costs of generating funds in the SOFA.

Cazenove Charity Multi-Asset Fund - Management fees of the fund itself are calculated on a percentage of the portfolio value deducted from the market value of the fund on a daily basis and therefore effectively deducted from realised or unrealised gains or losses on investments. The fee element relating to client management services is a percentage of the portfolio value on a quarterly basis shown under costs of generating funds in the SOFA.

Freehold investment properties for which fair value can be measured reliably without undue cost or effort on an ongoing basis, are measured at fair value annually with any change recognised in the SOFA. This includes the sublet elements of functional freehold property which are apportioned between tangible fixed assets and investment properties.

Investments in subsidiary undertakings are stated at cost less provision for permanent diminution in value.

j) Stock

Stock consists of goods for resale held at Head Office, seafarers’ centres and charity shops (where purchased for resale). Stock is valued at the lower of cost and net realisable value. Unsold donated items are excluded.

k) Pensions

The Society operates a defined contribution group personal pension scheme with Aegon for the benefit of its UK based employees. Based upon gross salary, employees contribute at the rate of up to 4% net (5% including tax credit) and the Society at up to 10.75%. Contributions are charged to the SOFA when due. Some employees who are not eligible to join the above scheme, have personal pension plans into which the Society contributes.

l) Foreign currency translation

Transactions in foreign currencies are recorded at the rate ruling

at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the SOFA.

m) Operating leases

Rentals paid under operating leases, where substantially all the benefits and risks of ownership remain with the lessor, are charged against income on a straight line basis over the term of each lease.

n) Preparation of the financial statements on a going

concern basis

The Society’s worldwide operations are complex and wideranging. The Society’s policy is to always ensure that adequate reserves are maintained to finance operations and to avoid any interruption of services to seafarers. A detailed review of the level of reserves is included in the Trustees Report annually.

The group results show net decrease in funds of £2,159,000 and net cash outflows of £172,000. The Society’s listed investments are in liquid form and are of a sufficient size to fund this deficit and any estimated deficits in the next year from the date of approval of these financial statements. On this basis the Trustees consider the Society be a going concern.

The extent of any continuing effect of the COVID-19 pandemic on the Society’s operations is uncertain over the near term. Future income streams are partially dependent on the effect of the pandemic on our funders and their ability to give to charity. Social distancing has made engagement with corporate donor prospects more problematical although these obstacles are gradually being overcome as the world adapts to virtual forms of interaction.

World stock markets have largely recovered and global trade has evolved and is adapting to the new norms. Our recent interactions with donors and their interest in our varied programme of work has given positive indications in respect of our fundraising in the future.

o) Corporate taxation

The Society is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. The Society is not exempt from certain taxes applicable to some of its overseas operations where charitable tax reliefs cannot be applied.

p) Judgements in applying accounting policies and key sources

of estimation uncertainty

The Society applies judgement in relation to the recognition of legacy income in line with the stated accounting policy above. Judgement is also applied in the following areas:-

• the allocation of costs between the various activities of the Society. The method, as disclosed, is considered to be the fairest way to allocate shared costs between activities in a consistent manner.

• estimate of the liability in connection with Lagarie Childrens’ Home claims as set out in note 19. There are a number of unknowns and assumptions involved in the calculation of the provision. This includes quantification of potential damages payable to claimants and the extent to which this is covered by insurance. The provision has been calculated using legal professional advice and in consultation with the Society’s insurers.

There are no other significant judgements or estimates in these financial statements.

q) Financial instruments

The Society has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial assets are recognised in the Society’s balance sheet when the Society becomes party to the contractual provisions of the instrument.

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through the statement of financial activities are measured at fair value.

Other financial assets

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, other than those held at fair value through the statement of financial activities, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the statement of financial activities.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

r) Classification of financial liabilities

Basic financial liabilities

Basic financial liabilities are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through the statement of financial activities are measured at fair value.

Other financial liabilities

Other financial liabilities are initially measured at fair value, net of transaction costs. They are subsequently measured at amortised

64

65

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

cost using the effective interest method, with interest expenses recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Society after deducting all of its liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the Society’s obligations are discharged, cancelled, or they expire.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Donations and legacies Donations and grants Legacies 2019 3. Charitable activities Income from seafarers’ centres and seafarers’ retirement facility Other programme related income Residential home fees and fat rental income 2019 4. Other trading activities Charity shop income Fundraising events, sponsorship & commercial 2019 5. Investment income Listed investments Property rents Interest receivable 2019 6. Other income Release of liability on transfer of Leith Aged Mariners’ Fund COVID-19 related governmental income Surplus on disposal of fxed assets Miscellaneous 2019	Unrestricted Funds £000’s 240 21 261 410 39 61 - 100 124 132 60 192 368 158 47 1 206 267 - 223 - 12 235 58	Restricted Funds £000’s 210 - 210 437 - - 1,146 1,146 1,155 - - - - - - - - - - 3 - - 3 80	Endowment Funds £000’s - - - - - - - - - - - - - - - - - - - - - - - -	Total 2020 2019 £000’s £000’s 450 717 21 130 471 847 847 39 90 61 34 1,146 1,155 1,246 1,279 1,279 132 261 60 107 192 368 368 158 242 47 22 1 3 206 267 267 - 80 226 - - 47 12 11 238 138 138	Total 2020 2019 £000’s £000’s 450 717 21 130 471 847 847 39 90 61 34 1,146 1,155 1,246 1,279 1,279 132 261 60 107 192 368 368 158 242 47 22 1 3 206 267 267 - 80 226 - - 47 12 11 238 138 138
					847
					90 34 1,155
					1,279
					261 107
					368
					242 22 3
					267
					80 - 47 11
					138

66

67

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

7. Total expenditure Expenditure on raising funds Fundraising costs Charity shop costs Fundraising events,sponsorship and commercial Costs of generating voluntary income Other fundraising costs Investment costs Investment management costs Foreign exchange diferences Property rental costs Expenditure on charitable activities Chaplaincy, welfare and projects Seafarers’ centres costs Leith Aged Mariners’ Fund commitment Residential home and seafarers’ let accommodation costs Contributions to partner organisations Promoting the charitable purpose Governance Support staf costs	Staf costs £000’s (Note 10) 141 9 150 156 156 - - - - 306 687 41 - 992 5 118 1,843 4 2,153 451 2,604	Other direct costs £000’s 227 57 284 47 47 18 (7) 11 22 353 467 58 - 516 80 99 1,220 36 1,609	Support costs £000’s (Note 8) 62 22 84 79 79 5 - - 5 168 268 18 - 56 30 76 448 115 731 (451) 280	Governance costs allocation £000’s - 7 7 7 7 - - - - 14 64 7 - 27 14 29 141 (155) -	Total 2020 £000’s 430 95 525 289 289 23 (7) 11 27 841 1,486 124 - 1,591 129 322 3,652 - 4,493	Total 2019 £000’s 542 308
						850
						280
						280
						28 - 18
						46
						1,176
						1,862 190 2 1,556 126 571
						4,307
						-
						5,483

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Total expenditure (continued)

7. Total expenditure (continued)
			2020	2019
Net incoming resources are stated after charging/(crediting) :-			£000’s	£000’s
Remuneration paid to the Society’s auditors:
- audit fee for the Society			18	18
- audit fee for the subsidiaries			18	17
- tax compliance services and other advice			9	1
- accounting assistance (Sir Gabriel Wood’s Mariners’ Home)			2	2
Remuneration paid to other auditors			2	2
Operating lease rentals	- land & buildings		181	187
	- equipment		13	49
Mortgage interest payable			21	21
Defcit/(surplus) on disposal of fxed assets Foreign exchange diferences			41 (2)	(47) 15
Depreciation, amortisation and impairment			291	319
8. Allocation of support costs

Net incoming resources are stated after charging/(crediting) :- Remuneration paid to the Society’s auditors: - audit fee for the Society - audit fee for the subsidiaries - tax compliance services and other advice - accounting assistance (Sir Gabriel Wood’s Mariners’ Home) Remuneration paid to other auditors Operating lease rentals - land & buildings - equipment Mortgage interest payable Defcit/(surplus) on disposal of fxed assets Foreign exchange diferences Depreciation, amortisation and impairment 8. Allocation of support costs	Net incoming resources are stated after charging/(crediting) :- Remuneration paid to the Society’s auditors: - audit fee for the Society - audit fee for the subsidiaries - tax compliance services and other advice - accounting assistance (Sir Gabriel Wood’s Mariners’ Home) Remuneration paid to other auditors Operating lease rentals - land & buildings - equipment Mortgage interest payable Defcit/(surplus) on disposal of fxed assets Foreign exchange diferences Depreciation, amortisation and impairment 8. Allocation of support costs	Net incoming resources are stated after charging/(crediting) :- Remuneration paid to the Society’s auditors: - audit fee for the Society - audit fee for the subsidiaries - tax compliance services and other advice - accounting assistance (Sir Gabriel Wood’s Mariners’ Home) Remuneration paid to other auditors Operating lease rentals - land & buildings - equipment Mortgage interest payable Defcit/(surplus) on disposal of fxed assets Foreign exchange diferences Depreciation, amortisation and impairment 8. Allocation of support costs	Net incoming resources are stated after charging/(crediting) :- Remuneration paid to the Society’s auditors: - audit fee for the Society - audit fee for the subsidiaries - tax compliance services and other advice - accounting assistance (Sir Gabriel Wood’s Mariners’ Home) Remuneration paid to other auditors Operating lease rentals - land & buildings - equipment Mortgage interest payable Defcit/(surplus) on disposal of fxed assets Foreign exchange diferences Depreciation, amortisation and impairment 8. Allocation of support costs	Net incoming resources are stated after charging/(crediting) :- Remuneration paid to the Society’s auditors: - audit fee for the Society - audit fee for the subsidiaries - tax compliance services and other advice - accounting assistance (Sir Gabriel Wood’s Mariners’ Home) Remuneration paid to other auditors Operating lease rentals - land & buildings - equipment Mortgage interest payable Defcit/(surplus) on disposal of fxed assets Foreign exchange diferences Depreciation, amortisation and impairment 8. Allocation of support costs	2020 £000’s 18 18 9 2 2 181 13 21 41 (2) 291	2019 £000’s 18 17 1 2 2 187 49 21 (47) 15 319
Basis of allocation Fundraising costs Charity shop costs Fundraising events, sponsorship & commercial Costs of generating voluntary income Other fundraising costs Charitable activities Chaplaincy, welfare and projects Seafarers’ centres costs Residential home and seafarers’ let accomodation costs Contributions to partner organisations Promoting the charitable purpose Governance	Premises running costs £000’s Floor area 1 1 2 13 13 8 - 1 1 5 15 2 32	Ofce facilities costs £000’s Head count 10 6 16 47 47 54 3 11 5 38 111 19 193	Finance, accounting & IT £000’s Time spent 51 7 58 8 8 157 15 28 8 - 208 65 339	Manage- ment & audit £000’s Time spent - 8 8 16 16 49 - 16 16 33 114 29 167	2020 total £000’s 62 22 84 84 84 268 18 56 30 76 448 115 731	2019 total £000’s 60 54
						114
						86
						86
						297 29 18 36 156
						536
						92
						828

68

69

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

9. Analysis of grants expenditure within charitable expenditure

	Grants to	Grants to	Support
	institutions	individuals	costs		2020	2019
	£000’s	£000’s	£000’s		£000’s	£000’s
Operation of seafarers centres	10	-		-	10	10
Seafarer communities	54	-		2	56	185
Chaplaincy	59	-		-	59	30
Seafarer general welfare	16	19		2	37	68
Educational	25	2		2	29	40
	164	21		6	191	333

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

10. Staf costs and numbers Salaries and wages (including agency workers) Social security costs Pension costs Life assurance and medical insurance Chaplains’ housing costs Benefts in kind not included in the above	2020 £000’s 2,289 169 90 26 30 2,604 9	2019 £000’s 2,626 210 117 35 38
		3,026
		34

Total pension contributions accrued and not paid at 31 December 2020 amounted to £12,438 (2019: £9,654).

Material grants made to institutions £10,000 and over, included in the above, were as follows:

Within contributions to partner organisations (for seafarers’ welfare):- Sailors’ Society Southern Africa Chaplaincy in South Africa Sailors’ Society New Zealand Chaplaincy in Auckland, New Zealand Within chaplaincy & welfare:- Voluntary Health Services, Chennai,India Provision of mobile medical facilities Liprayan Integrated School Construction of community school used by (paid to building contractor) seafarers’ families in Lipayran, Philippines Sailors’ Society Southern Africa Crisis Response coordination Sailors’ Welfare Association Programme management in India Habitat for Humanity (GB) Construction of school building in Myanmar seafaring community Maria Tsakos Foundation Scholarships for the Tsakos Enhanced Education Nautical School (“TEENS”) in Greece Within various:- Others £10,000 and under

2020 2019 £000’s £000’s 20 24 35 - 10 14 - 181 - 10 - 22 52 - 25 - 22 21 164 272

Total redundancy and termination payments were £12,420 of which £NIL was unpaid at 31 December 2020 (2019: £26,440 and £3,000 unpaid at 31 December 2019).

The total remuneration of five members of the Senior Leadership Team who served during the year, including benefits but excluding pension contributions was £237,409 (2019: six members £393,994). No remuneration was received by any trustee.

The number of employees receiving total emoluments over £60,000, as defined for taxation purposes, were as follows :

		2020		2019
		Number		Number
£60,000	to £69,999		1		1
£70,000	to £79,999		1		2
£80,000	to £89,999		-		1

Pension contributions to the Society’s defined contribution scheme for the two employees above were £13,732 (2019: four employees £34,810).

The average number of employees, calculated on a full time equivalent basis (including casual and part-time staff), analysed by function was:

Chaplaincy and welfare Seafarers’ centres Fundraising and charity shops Residential home Promoting the charitable cause Management and administration of the charity	2020 2019 Number Number 38 46 8 9 9 14 44 44 3 5 10 10 112 128

The average monthly head count during the year was 127 (2019: 149).

70

71

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

11. Intangible assets Consolidated and the Society Cost At 1 January 2020 Additions Disposals At 31 December 2020 Amortisation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019	Computer software £000’s 314 53 (43)
	324
	162 41
	203
	121
	152

Computer software relates to the apps the Society has developed for use in its external charitable operations and other software it has developed for internal use.

The value of computer software, in development, not amortised was £NIL (2019 - £49,711).

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12. Tangible fixed assets

a)Consolidated Cost or valuation At 1 January 2020 Additions Disposals At 31 December 2020 Depreciation At 1 January 2020 Charge for year Impairment provision Disposals At 31 December 2020 Net book value At 31 December 2020 Net book value At 31 December 2019	Freehold property & improvements £000’s 1,097 - - 1,097 178 23 - - 201 896 919	Sir Gabriel Wood’s Home & Court £000’s 1,769 75 - 1,844 539 70 - - 609 1,235 1,230	Leasehold property £000’s 558 - - 558 407 35 25 - 467 91 151	Furniture fttings & equipment £000’s 555 12 (41) 526 435 42 - (30) 447 79 120	Motor vehicles £000’s 672 - (64) 608 501 55 - (58) 498 110 171	Total £000’s 4,651 87 (105)
						4,633
						2,060 225 25 (88)
						2,222
						2,411
						2,591

Sir Gabriel Wood’s Mariners’ Home and Court were valued in January 2011 by Millar Surveying Services, Chartered Surveyors on an open market value for existing use basis. As the home is an historic building and the property is held in trust, it has been shown separately from other freehold property. If it had not been revalued it would have been included at the following amounts:

Cost Depreciation Net book value	2020 £000’s 1,648 (1,063) 585	2019 £000’s 1,574 (1,003)
		571

Compared to the depreciation calculated by reference to historical cost, the figure in the financial statements is greater by £9,716 (2019: £9,716).

b) Capital Commitments (Group)

At 31 December 2020 the group had no capital commitments (2019 - £NIL).

72

73

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12. Tangible fixed assets (Continued)

c) The Society

Cost or valuation At 1 January 2020 Additions Disposals At 31 December 2020 Depreciation At 1 January 2020 Charge for the year Impairment provision Disposals At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019	Freehold property & improvements £000’s 1,097 - - 1,097 178 23 - - 201 896 919	Sir Gabriel Wood’s Home & Court £000’s 1,540 - - 1,540 489 54 - - 543 997 1,051	Leasehold property £000’s 435 - - 435 328 16 25 - 369 66 107	Furniture fttings & equipment £000’s 329 11 (39) 301 246 21 - (29) 238 63 83	Motor vehicles £000’s 567 - (47) 520 429 45 - (44) 430 90 138	Total £000’s 3,968 11 (86)
						3,893
						1,670 159 25 (73)
						1,781
						2,112
						2,298

d) Capital Commitments (Society only)

At 31 December 2020 the Society had no capital commitments (2019 - £NIL).

e) Assets held on hire purchase agreements (Consolidated only)

The net book value of assets held on hire purchase agreements within furniture fittings & equipment was £1,264 (2019: £1,686). Depreciation during the year was £422 (2019: £562).

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. Fixed asset investments a) Consolidated Market value At 1 January 2020 Additions Disposals Unrealised gains on revaluation Market value at 31 December 2020 Historical cost at 31 December 2020 Listed investments UK fxed interest securities Overseas fxed interest securities UK equity shares Overseas equity shares Property funds Alternative investments Cash Market value at 31 December 2020 b) The Society Market value At 1 January 2020 Additions Disposals Unrealised gains on revaluation Market value at 31 December 2020 Historical cost at 31 December 2020 Listed investments UK fxed interest securities Overseas fxed interest securities UK equity shares Overseas equity shares Property funds Alternative investments Cash Market value at 31 December 2020	Cazenove Fund £000’s 2,573 11 (632) 55 2,007 1,471 187 - 215 1,180 140 229 56 2,007 2,371 - (632) 49 1,788 1,267 166 - 191 1,052 125 204 50 1,788	General Fund £000’s 2,986 165 (1,229) 54 1,976 1,242 299 21 704 766 91 95 - 1,976 2,986 165 (1,229) 54 1,976 1,242 299 21 704 766 91 95 - 1,976	Total £000’s 5,559 176 (1,861) 109
			3,983
			2,713
			486 21 919 1,946 231 324 56
			3,983
			5,357 165 (1,861) 103
			3,764
			2,509
			465 21 895 1,818 216 299 50
			3,764

74

75

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. Fixed asset investments (continued)

Individual holdings at 31 December 2020 representing more than 5% of the value of the combined portfolio were as follows:Vanguard S&P 500 ETF 9.4%

The Cazenove Fund is the Cazenove Charity Multi-Asset Fund which is a Charity Authorised Investment Fund. This investment forms part of the Society’s unrestricted funds.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

15. Interest free loans	Consolidated	Consolidated		The Society	The Society
	2020	2019		2020	2019
	£000’s	£000’s		£000’s	£000’s
Loans to joint operations		16	16		16	16

These loans are to finance the operations of the borrowers and are not repayable within twelve months.

16. Debtors

14. Freehold investment properties

Vanguard S&P 500 ETF 9.4% The Cazenove Fund is the Cazenove Charity Multi-Asset Fund which is a Charity Authorised Investment Fund. This investment forms part of the Society’s unrestricted funds. 14. Freehold investment properties
Consolidated and the Society - at valuation At 1 January 2020 Revaluation in the year At 31 December 2020 The valuation consists of: Freehold property - Beattie Rise, Hedge End, Southampton Freehold property - Sublet portion of Seafarer House, Woolston, Southampton	£000’s 659 30
	689
	485 204
	689

The freehold property at Beattie Rise was valued at 31 December 2020 on an open market basis by the directors, based

on advice received from local estate agents.

The sublet portion of Seafarer House was valued at 31 December 2020 by the directors based on the capitalised value of rental income received with reference to commercial rental yields supplied by letting agents. The remainder of the property, occupied by the Society, remains within freehold property in tangible fixed assets.

The historical net book value of the properties is £290,696 (2019: £290,696).

16. Debtors
	Consolidated			The Society
	2020	2019		2020	2019
	£000’s	£000’s		£000’s	£000’s
Trade debtors	162	95		19	12
Amounts owed by subsidiary undertakings	-	-		22	7
Other debtors, prepayments and accrued income	263	384		251	364
	425	479		292	383
17. Creditors: amounts falling due within one year
	Consolidated			The Society
	2020	2019		2020	2019
	£000’s	£000’s		£000’s	£000’s
Trade creditors	215	135		83	99
Bank loans	13	19		13	19
Taxes and social security	131	46		26	29
Pension contributions owed	12	10		12	10
Other creditors and accruals	150	109		66	60
Hire purchase	1	1		-	-
Deferred income (see note below)	52	40		43	24
Amounts owed to subsidiary undertakings	-	-		45	61
	574	360		288	302
Secured creditors	14	20		13	19

76

77

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

17. Creditors: amounts falling due within one year (continued)

17. Creditors: amounts falling due within one year (continued)
Deferred income At 1 January 2020 Released to Statement of Financial Activities Received in the year At 31 December 2020	Consolidated 2020 2019 £000’s £000’s 40 8 (13) (8) 25 40 52 40	The Society 2020 2019 £000’s £000’s 24 8 (1) (8) 20 24 43 24
			24

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Provisions for liabilities and charges

19. Provisions for liabilities and charges
At 1 January 2020 Provided in the year - extraordinary item Utilised in the year At 31 December 2020	Lagarie Childrens’ Home £000’s 1,285 - (41)
	1,244

18. Creditors: amounts falling due after more than one year

Bank loan Hire purchase Secured creditors	Consolidated 2020 2019 £000’s £000’s 480 479 - 1 480 480 480 480	The Society 2020 2019 £000’s £000’s 480 479 - - 480 479 480 479	The Society 2020 2019 £000’s £000’s 480 479 - - 480 479 480 479
			479
			479

Assets held under hire purchase agreements are secured on the asset to which the agreement relates. Amount payable in the next twelve months are shown as creditors due within one year.

Future payments due Amounts payable between 1 and 2 years Amounts payable between 2 and 5 years Amounts payable over 5 years Less: fnance charges allocated to future periods Hire purchase Bank loan	Consolidated 2020 2019 £000’s £000’s 40 41 120 120 506 506 666 667 (186) (187) 480 480 - 1 480 479 480 480	The Society 2020 2019 £000’s £000’s 40 40 120 120 506 506 666 666 (186) (187) 480 479 - - 480 479 480 479
			666 (187)
			479
			- 479
			479

The bank loan was advanced in August 2017 and was repayable over 20 years at an interest rate of 4.19% p.a. fixed for a period of 10 years and renegotiable thereafter. The bank granted a 12 month capital repayment holiday ending 30 April 2021 with the loan now being due to be repaid in August 2038. The loan is secured on the freehold property at St Annes Road, Southampton.

The Society has made a provision for actual claims and potential claims in relation to this matter. The provision is based on an estimate of damages, legal costs, irrecoverable VAT and interest, to the extent that they are not considered to be covered by insurance.

20. Reserves

(a) Endowments - consolidated Balance 1 January 2020 Permanent endowments £000’s Sir Gabriel Wood’s Mariners’ Home 1,230 Included within the above are the following movements on revaluation reserves: Sir Gabriel Wood’s Mariners’ Home 659 (b) Restricted funds - consolidated Sailors’ Society (see note 20(e)) Capital grants and donations 284 Donations & events income 72 Legacies 10 Sailors’ Society Scotland (see details below) Capital grants and donations 7 Leith Aged Mariners’ Fund 47 Programme related work - Sir Gabriel Wood’s Mariners’ Home General funds including grants 184 Sailors’ Society Philippines Inc Boat project 8 612	Movement in Funds Incoming resources Expenditure, gains, losses and transfers £000’s £000’s - 5 - (10) - (37) 159 (187) - - - (2) 2 (6) 43 (43) 1,156 (1,465) - (1) 1,360 (1,741)	Balance 31 December 2020 £000’s 1,235
		649
		247 44 10 5 43 - (125) 7
		231

78

79

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

20. Reserves (continued)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

20. Reserves (continued)

(b) Restricted funds - consolidated (continued)

Movement in Funds

Sailors’ Society Scotland - restricted funds details Chaplains’ vehicle capital grants Montrose Centre capital grant Chaplains’ ministry costs - Dundee, Leith, Glasgow Leith Aged Mariners’ Fund Advocacy work in Scotland	Balance 1 January 2020 £000’s 5 2 - 47 - 54	Incoming Resources £000’s - - 18 2 24 44	Expenditure gains, losses and transfers £000’s (2) - (18) (6) (24) (50)	Balance 31 December 2020 £000’s 3 2 - 43 -
				48

Sir Gabriel Wood’s Mariners’ Home

Sir Gabriel Wood’s Mariners’ Home in Greenock provides accommodation for retired seafarers and their dependants. The original assets and administration of the home were transferred, under a Deed of Trust, to the Society in 1968. The value of the Home itself is shown as an endowment fund. The day to day administration of the Home is carried out by the subsidiary charity whose own net assets are shown under restricted funds. The care home closed in February 2021.

Grants

Grants relate to unexpended revenue grants and capital grants (both expended and unexpended). Depreciation on assets purchased with capital grants is charged against this restricted fund.

Leith Aged Mariners’ Fund

The Fund was formerly a separately registered Scottish charity and was closed down and merged into Sailors’ Society Scotland in early 2019.

Monthly charitable welfare payments are made to beneficiaries with a merchant marine background and to their dependants. The weekly payment is £12 with a further £12 given as a Christmas bonus in December. The annual cost is £636 per person. The number of beneficiaries in 2020 reduced from 9 to 8 by the year end.

The movements on the fund since transference allow for a reassessment of the amount required on an actuarial basis to fund the payments at their current level for the rest of the beneficiaries’ lives. Transfers are made to/from the unrestricted funds of Sailors’ Society Scotland for this purpose.

The estimated future payments for beneficiaries of the Leith Aged Mariners’ Fund were calculated on an actuarial basis to be approximately £43,000 at 31 December 2020, using 2017-2019 life tables for Scotland supplied by the Office of National Statistics.

Taking into account restricted donations and payments made to beneficiaries, the value of the restricted fund at 31 December 2020 has been reduced to the actuarial valuation at the current payment rate amounting to £43,000. A corresponding transfer from restricted to unrestricted funds of £976 has been made and will be adjusted annually as actuarial estimates are revised (see note 20 (f)).

Balance 1 January 2020 (c) Unrestricted funds - consolidated £000’s Sailors’ Benefcial Enterprises Ltd (note 22) (541) General reserve 5,053 Designated Funds (see note 20(d)) 1,515 6,027 Included within the above are the following movements on revaluation reserves: Investment properties 368 Listed Investments 1,647 2,015 (d) Designated funds Consolidated Overseas Retirement Fund 50 Fixed Asset Fund 1,434 Educational Fund 31 1,515 Society Overseas Retirement Fund 50 Fixed Asset Fund 1,327 Educational Fund 31 1,408	Movement in Funds Incoming Resources Expenditure gains, losses and transfers £000’s £000’s 39 (68) 955 (2,531) - (178) 994 (2,777) - 30 - (377) - (347) - (2) - (186) - (2) - (190) - (2) - (135) - (2) - (139)	Balance 31 December 2020 £000’s (570) 3,477 1,337
		4,244
		398 1,270
		1,668
		48 1,248 29
		1,325
		48 1,192 29
		1,269

Overseas Retirement Fund

This fund is intended to provide lump sum retirement grants to overseas staff and is based on age and length of service.

Educational Fund

This fund was originally established in 2007 following the sale of an artifact bequeathed to the Society which was sold at auction. The proceeds have been utilised to fund nautical training grants for sea service in memory of the donor’s family.

80

81

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

20. Reserves (continued)

(e) The Society

Balance 1 January 2020 £000’s Endowment funds Sir Gabriel Wood’s Mariners’ Home 1,051 Restricted funds Capital grants and donations 284 Donations & events income 72 Legacies 10 366 Unrestricted Funds - General reserve General reserve 5,736 7,153 Included within the above are the following movements on revaluation reserves: Investment properties 368 Listed Investments 1,639 Sir Gabriel Wood’s Mariners’ Home 659 2,666 Restricted funds details Capital grants - Seafarers’ Centres 190 Capital grants & donations - Chaplains’ & programme related vehicles 56 App developments & Chaplains’ IT 53 Crisis response network - Chaplains’ ministry costs 8 Unspent legacy - Northern Ireland 10 Seafarers’ welfare (direct) - India seafarers’ centre facilities 7 Haiyan Appeal - rebuilding communities 35 Myanmar school construction - Sea training scholarships 7 366	Movement in funds Incoming Resources Expenditure gains, losses transfers and revaluations £000’s £000’s - (54) - (37) 159 (187) - - 159 (224) 881 (2,643) 1,040 (2,921) - 30 - (384) - 30 - (324) - (5) - (22) 41 (49) 23 (21) 29 (30) - - 19 (13) - - - (30) 47 (47) - (7) 159 (224)	Balance 31 December 2020 £000’s 997
		247 44 10
		301
		3,974
		5,272
		398 1,255 689
		2,342
		185 34 45 2 7 10 6 7 5 - -
		301

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

20. Reserves (continued)

(f) Transfers between funds

Sir Gabriel Wood’s Mariners’ Home building improvements Sailors’ Society Scotland - Leith Aged Mariners’ Fund reduction in restricted funds based on actuarial revaluation	Unrestricted Funds £000’s - 1 1	Restricted Funds £000’s (75) (1) (76)	Endowment Funds £000’s 75 - 75	Total Funds £000’s - -
				-

Sir Gabriel Wood’s Mariners’ Home

During the year the Sir Gabriel Wood’s Mariners’ Home charity spent £74,803 on improvements to the Home which is owned by the Society and treated as an endowment. As the charity is treated as a restricted fund, a transfer is required from restricted to endowment funds to recognise the increased value of the endowment by this amount.

Sailors’ Society Scotland

The transfer represents the required reduction within restricted funds to bring the fund value down to the actuarial liability based on estimated payments to existing beneficiaries for the remainder of their lives (see note 20 (b)).

21. Analysis of consolidated net assets between funds

Fund balances at 31 December 2020 are represented by: Tangible fxed assets Intangible fxed assets Investment properties Investments Interest free loans Current assets Current liabilities Long term liabilities Provisions for liabilities and charges Interfund balances Total net assets at 31 December 2020	Unrestricted Funds £000’s 894 121 689 3,983 16 534 (279) (480) (1,244) 10 4,244	Restricted Funds £000’s 282 - - - - 254 (295) - - (10) 231	Endowment Funds £000’s 1,235 - - - - - - - - - 1,235	Total Funds £000’s 2,411 121 689 3,983 16 788 (574) (480) (1,244) -
				5,710

82

83

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

22. Subsidiary undertakings

(a) Details of subsidiaries

(1) The Society owns 100% of the issued ordinary share capital of Sailors’ Beneficial Enterprises Ltd, a company limited by shares and registered in England and Wales (no. 3652955). The company arranges corporate sponsorship on behalf of the Sailors’ Society and organises selected overseas fundraising events. It also handles any commercial trading activity. The registered office is Seafarer House, 74 St Annes Rd, Southampton, SO19 9FF.

(2) Sir Gabriel Wood’s Mariners’ Home and Court in Greenock is a registered charity in Scotland (no. SC003763) managed by a committee acting under powers delegated to it by the trustees of the charity. The majority of trustees are directors of the Society and the Chief Executive Officer. The registered office is 67 Newark Street, Greenock, PA16 7TQ.

(3) Sailors’ Society Scotland is a registered charity in Scotland (no. SC041887) and a company limited by guarantee registered in Scotland (no. SC387850). This charity carries out some of the fundraising and charitable activity in Scotland. The registered office is c/o Mazars LLP, 100 Queen Street, Glasgow, G1 3DN.

(4) Sailors’ Society Philippines Incorporated is a company limited by guarantee, registered in the Philippines, number CN201628509. The Society exercises its control through the company’s Board of Trustees, the majority of whom are Society employees. The registered office is Room 204B, 18 Cherry Court Building, General Maxilom Avenue, Brangay, Zapatera, Cebu City, Cebu, Philippines.

(5) Sailors’ Society USA is a non-profit corporation incorporated in the state of Texas, USA, file number 0803171422 The registered office is 909 Fannin Street, Houston, Texas 77010, USA. The company was formed to carry out fundraising activities in the USA but has been dormant since formation. The Society exercises control through the company’s Board of directors and officers, who are directors and employees of the Society.

All results of the above subsidiaries are consolidated in the group financial statements.

(b) Investment in subsidiaries

(b) Investment in subsidiaries
Cost At 1 January 2020 and 31 December 2020 Provision for diminution in value At 1 January 2020 Provision in year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019	£000’s 21
	16 -
	16
	5
	5

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

22. Subsidiary undertakings (continued)

(c) Financial details

c nanca eas Donations & grants Commercial/retail income Residential home & fat fees Investment & other income Charitable expenditure Commercial/retail costs Investment gains Interest to parent charity Net (defcit)/surplus The aggregate of the assets, liabilities and funds was: Assets Liabilities Funds	Sir Gabriel Wood’s Mariners’ Home 2020 2019 £000’s £000’s 7 3 - - 1,149 1,155 - - 1,156 1,158 (1,465) (1,440) - - (1,465) (1,440) (309) (282) - 17 - - (309) (265) 180 259 (305) (75) (125) 184	Sailors’ Benefcial Enterprises Ltd 2020 2019 £000’s £000’s - - 21 63 - - 18 1 39 64 - - (55) (189) (55) (189) (16) (125) - - (13) (15) (29) (140) 62 83 (629) (620) (567) (537)	Sailors’ Benefcial Enterprises Ltd 2020 2019 £000’s £000’s - - 21 63 - - 18 1 39 64 - - (55) (189) (55) (189) (16) (125) - - (13) (15) (29) (140) 62 83 (629) (620) (567) (537)
			64
			- (189)
			(189)
			(125) - (15)
			(140)
			83 (620)
			(537)

84

85

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

22. Subsidiary undertakings (continued)

22. Subsidiary undertakings (continued)
	Sailors’ Society Scotland			Sailors’ Society Philippines
	2020	2019		2020	2019
	£000’s	£000’s		£000’s	£000’s
Donations & grants	42	51		11	-
Sailors’ Society funding	75	135		86	253
Commercial/retail/charitable trading income	36	58		10	5
Investment income	9	4		-	-
Other income	21	-		-	-
Transfer from Leith Aged Mariners’ fund	-	207		-	-
	183	455		107	258
Charitable expenditure	(141)	(150)		(103)	(280)
Fundraising and retail costs	(52)	(52)		-	-
	(193)	(202)		(103)	(280)
Investment gains Net (defcit)/surplus	6 (4)	8 261		- 4	- (22)
Assets	291	295		24	32
Liabilities	(3)	(3)		(16)	(28)
Funds	288	292		8	4

(c) Financial details

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

23. Financial commitments

a) Operating leases

At 31 December the Society had total commitments under non-cancellable operating leases payable as follows:

Within one year Between two and fve years More than fve years Within one year Between two and fve years More than fve years	Consolidated Land and Buildings Other 2020 2019 2020 2019 £000’s £000’s £000’s £000’s 177 175 12 4 81 240 16 3 3 17 - - 261 432 28 7 The Society Land and Buildings Other 2020 2019 2020 2019 £000’s £000’s £000’s £000’s 135 135 12 4 27 159 16 3 1 1 - - 163 295 28 7	Consolidated Land and Buildings Other 2020 2019 2020 2019 £000’s £000’s £000’s £000’s 177 175 12 4 81 240 16 3 3 17 - - 261 432 28 7 The Society Land and Buildings Other 2020 2019 2020 2019 £000’s £000’s £000’s £000’s 135 135 12 4 27 159 16 3 1 1 - - 163 295 28 7
		7

At 31 December 2019 Sailors’ Society Philippines Inc had a commitment of £27,000 in respect of a contract relating to seafarer community rebuilding in the Philippines.

Transactions between the Society and the subsidiaries during the year and balances due at 31 December are as follows:-

	Sailors’ Benefcial Enterprises Ltd	Sailors’ Benefcial Enterprises Ltd	Sailors’ Society Scotland	Sailors’ Society Scotland	Sailors’ Society Philippines	Sailors’ Society Philippines
	2020	2019	2020	2019	2020	2019
	£000’s	£000’s	£000’s	£000’s	£000’s	£000’s
Management charges
made by Society	5	11	39	38	-	-
Grant funding from Society	-	-	75	135	86	253
Loan interest due to the Society	13	15	-	-	-	-
Balance due (to)/from
Society at 31 December	(612)	(606)	45	61	-	-

24. Related party transactions

The Society has made financial contributions in the current year and in the past, to kindred organisations that are separate legally registered organisations and of which the Society is a joint trustee or was a participating party on formation of such organisations.

(a) Legal details

formation of such organisations. (a) Legal details
Name	Registered charity no. (UK)	Country of registration	Society relationship
Port of Bristol Seafarers’ Centre	286078	England	Joint Trustee
Seaham Seafarers’ Society	517633	England	Participating party
Felixstowe & Haven Ports Seafarers’ Service	272077	England	Joint Trustee
Port Hedland Seafarers’ Centre		Australia	Participating party
Flying Angel Club, Fremantle		Australia	Participating party
Humber Seafarers’ Service Ltd	1159953	England	Joint Trustee

86

87

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

24. Related party transactions (continued)

(a) Legal details (continued)

As each of these organisations is a separate legal entity the net assets are protected and on the dissolution of the organisation there is specific direction in the constitution as to how net assets are to be distributed.

(b) Balances owed at balance sheet date

Balances due from such organisations were as follows :- Port Hedland Seafarers’ Centre Flying Angel Club, Fremantle	2020 £000’s 4 12	2019 £000’s 4 12

(c) Financial details and transactions with kindred organisations during the year

Financial details of and transactions with organisations in which the Society is a Joint Trustee and involved in the management are :-

management are :-
	Humber	Felixstowe	Port of
			Bristol
Grants paid by Society during year (£000’s)	-	1	9
Proportion of controlling infuence	33.3%	33.3%	33.3%
Proportion of net assets on dissolution
- property	-	33.3%	33.3%
- other	-	33.3%	33.3%
Last accounts date	31 March	31 March	31 March
	2020	2020	2020
Net surplus/(defcit) in £000’s	2	(89)	18
Net assets in £000’s	106	416	227

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

24. Related party transactions (continued)

(d) Transactions involving directors and senior management

Directors expenses

The Directors do not receive any remuneration. Amounts relating to travel and subsistence paid to four directors totalled £1,073 (2019: six directors - £4,284).

International Christian Maritime Association (“ICMA”)

During 2020 the Society paid a subscription to ICMA of £7,500 (2019: £7,500), a charity in which Prasanta Roy, Director General of Sailors’ Society, was a trustee up until his resignation in May 2020. At the balance sheet date ICMA was owed £NIL (2019: £NIL). Sara Baade, CEO of Sailors’ Society, became a trustee in September 2020.

Donations made to the Society

During 2019 the value of donations made to the Society by an organisation where one individual within trustees and senior management had a commercial interest was £2,000.

25. Unrecorded legacies

The following estimated amounts relate to legacies notified to the Society but not yet accounted for in the financial statements:-

Residual legacies Legacies subject to a life-tenant interest	2020 £000’s 178 3 181	2019 £000’s - 35
		35

26. Contingent liabilities

Liability arising out of joint operations

The Society has a contingent liability which could arise from some of its joint operations (detailed in note 24).

In instances where the Society recognises such a potential liability, full provision has been made in the financial statements and is shown within creditors.

Upon dissolution, the net assets of the Humber Seafarers’ Service can be transferred to an external body with agreement by the members. This may be, but not necessarily, one of the participating societies.

88

89

SAILORS’ SOCIETY

OUR STORY 2020

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

27. Comparative data

2019 Statement of Financial Activities Income and endowments from: Donations and legacies Donations and grants Legacies Charitable activities Income from seafarers’ centres and seafarers’ retirement facility Other programme related income Residential home fees and fat rental income Other trading activities Charity Shop income Fundraising events, sponsorship & commercial Investment income Other Release of liability on transfer of Leith Aged Mariners’ Fund Surplus on disposal of fxed assets Miscellaneous Total	Unrestricted Funds £000’s 280 130 410 90 34 - 124 261 107 368 267 - 47 11 58 1,227	Restricted Funds (Continuing) £000’s 433 - 433 - - - - - - - - 80 - - 80 513	Restricted Funds (Discontinued) £000’s 4 - 4 - - 1,155 1,155 - - - - - - - - 1,159	Endowment Funds £000’s - - - - - - - - - - - - - - - -	Total £000’s 717 130
					847
					90 34 1,155
					1,279
					261 107
					368
					267
					80 47 11
					138
					2,899

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

27. Comparative data (continued)

2019 Statement of Financial Activities Expenditure on: Raising funds Charitable activities Total Net expenditure before investment gains Gains on investment assets Net expenditure Extraordinary item Transfers between funds Net movement in funds Fund balances brought forward Fund balances carried forward	Unrestricted Funds £000’s 1,176 2,264 3,440 (2,213) 674 (1,539) (530) 155 (1,914) 7,941 6,027	Restricted Funds (Continuing) £000’s - 537 537 (24) - (24) - (26) (50) 478 428	Restricted Funds (Discontinued) £000’s - 1,440 1,440 (281) 17 (264) - - (264) 448 184	Endowment Funds £000’s - 66 66 (66) 6 (60) - (129) (189) 1,419 1,230	Total £000’s 1,176 4,307
					5,483
					(2,584) 697
					(1,887) (530) -
					(2,417) 10,286
					7,869

90

91

SAILORS’ SOCIETY

OUR STORY 2020

ADMINISTRATIVE DETAILS, TRUSTEES AND ADVISORS

Patrons

Her Majesty The Queen

His Royal Highness The Prince Philip, Duke of Edinburgh KG KT – Honorary President of International Sailors’ Society, Canada (deceased 9 April 2021)

Vice Presidents

The Free Churches’ Moderator for England The Right Reverend the Moderator of the General Assembly of the Church of Scotland

The Right Reverend and Right Honourable the Lord Bishop of London

The Right Reverend the Moderator of the General Assembly of the Presbyterian Church in Ireland Alastair Fischbacher (appointed 25 March 2021)

Captain Reg Kelso MBE

Ross Sinclair

Frank Taylor

Captain Andrew Tyrrell (deceased 16 February 2020)

COMMITTEE MEMBERSHIP DURING 2020

Finance and General Purposes Committee Michael Drayton (Chair) (to 18 April 2020) Peter Goldberg Joshua Hutchinson (from 27 March 2020) Peter Swift (Chair) (from 18 April 2020)

Development Committee

Peter Goldberg (Chair) Michael Drayton (to 18 April 2020) Kay Penney Peter Swift Jacqueline Zalapa (to 30 July 2021)

Sailors’ Society Trustee Board (and serving directors)

Peter Swift

Peter Swift Chairman Michael Drayton Vice-Chairman – resigned 18 April 2020 Catharine Bacon Peter Goldberg Joshua Hutchinson appointed 3 January 2020 Kay Penney Jacqueline Zalapa resigned 30 July 2021

The above persons served as trustees and directors of Sailors’ Society during 2020.

Programme Committee

Catharine Bacon (Chair) (from 17 March 2020) Peter Goldberg Joshua Hutchinson (from 17 March 2020) Peter Swift (Member throughout and Chair to 17 March 2020) Jacqueline Zalapa (to 30 July 2021)

Nominations Committee

Peter Swift (Chair) Catharine Bacon Michael Drayton (to 18 April 2020) Peter Goldberg Kay Penney

SUBSIDIARY ENTITIES

Sailors’ Society Scotland Trustees

Michael Drayton (Chair) (resigned 18 April 2020) Joshua Hutchinson (appointed 21 February 2020, chair from 28 July 2020) Peter Swift (appointed 27 April 2020) Jacqueline Zalapa (resigned 30 July 2021)

Sir Gabriel Wood’s Mariners’ Home Trustees Michael Drayton (Chair) (resigned 18 April 2020) Joshua Hutchinson (appointed 11 February 2020, chair from 5 May 2020)

Sara Baade (appointed 8 September 2020) Rodger Clark (resigned 18 February 2020) Prasanta Roy (resigned 6 May 2020) Peter Swift Jennefer Tobin (appointed 5 May 2020, resigned 22 February 2021) Sandra Welch (resigned 8 May 2020)

Sailors’ Beneficial Enterprises Ltd directors Peter Goldberg (Chair) Joshua Hutchinson (appointed 27 March 2020) Andrew Pitcher

Sailors’ Society Philippines Inc Trustees

Gavin Lim (Chair) Jasper Del Rosario Maria Rosaroso Iris Terana Nicodemus Tuban Sandra Welch (resigned 8 May 2020)

Sailors’ Society USA directors and officers Sandra Welch - President (resigned 8 May 2020) Peter Swift - President (appointed 23 December 2020) Sara Baade – Vice President (appointed 23 December 2020) Andrew Pitcher – Treasurer/secretary Bijan Siaghatgar – Vice President (resigned 23 December 2020).

Individuals responsible for the International Sailors’ Societies’ charities residing and registered outside the UK International Sailors’ Society Canada Kevin Obermeyer

International Sailors’ Society New Zealand Larry Robbins

International Sailors’ Society Southern Africa Barry Haley

Sailors’ Welfare Association directors (India) Samuel David (resigned 18 March 2021) Manoj Joy John Pattamthanam (appointed 14 Dec 2020)

92

93

SAILORS’ SOCIETY

ADMINISTRATIVE DETAILS, TRUSTEES AND ADVISORS

MANAGEMENT AND ADMINISTRATION Registered Office of Sailors’ Society and its principal operational address

Seafarer House, 74 St Annes Road, Woolston, Southampton, Hampshire, England S019 9FF.

Sailors’ Society is a charitable company limited by guarantee, registered in England and Wales, company registration no 86942, registered charity no 237778.

Company Secretary

Andrew Pitcher FCCA

Senior Leadership Team

Sara Baade, MA, BA (Hons) Chief Executive (appointed 8 September 2020)

Prasanta Roy, FCMA, MBA Director General (resigned 6 May 2020)

Andrew Pitcher FCCA Director of Finance and Administration

Melanie Warman BA (Hons) NCE Director of Media and Advocacy

Sandra Welch BTh, MIPD

Director of Programme and Chief Operating Officer (resigned 8 May 2020)

Auditors

Mazars LLP, 90 Victoria Street, Bristol, BS1 6DP

Principal Bankers

National Westminster Bank Plc, PO Box 309, Chandler’s Ford, Eastleigh, Southampton, SO53 3UD

Bank of Scotland, Pentland House, 8 Lochside Avenue, Edinburgh, EH12 9DJ

Investment Managers

Investec Wealth and Investment Limited, 30 Gresham Street, London, EC2V 7QN

Cazenove Capital Management, 12 Moorgate, London, EC2R 6DA

Solicitors

Blake Morgan, New Kings Court, Tollgate, Chandler’s Ford, Eastleigh SO53 3LG

Anderson Strathern LLP, 1 Rutland Court, Edinburgh EH3 8EY

Clyde & Co, Albany House, 58 Albany Street, Edinburgh, EH1 3QR

----- Start of picture text -----
OUR STORY 2020
Thank you
We couldn’t write every new chapter of our story
without the many generous shipping companies,
trusts, individual donors, event participants and
volunteers who support our work and help us bring
life transforming care, as well as valuable training and
grants, to seafarers and their families. We thank each
and every one of you. We know from speaking with the
seafarers we help what a huge difference something
seemingly small, like a listening ear on a brief stop in
port, can make. We also know the immense value of
our bigger programmes like Wellness at Sea and our
Crisis Response Network; lives that have been saved
or turned around with these critical interventions. To
continue our work, from the small conversations to
the global activity and advocacy, we need your help.
A massive thank you to the companies and trusts
below who were our biggest supporters in 2020.
Britannia P&I
Church of Scotland Guild
International Christian Maritime Association
ITF Seafarers Trust
James Maas Trust
Marine Traffic
Swire
Trinity House
The West of England P&I Club
Partner with us helping seafarers and their families
across the globe.
[e-mail]
95
----- End of picture text -----

94

Sailors’ Society, Seafarer House, 74 St Annes Road, Southampton, Hampshire, SO19 9FF, UK [phone] www.sailors-society.org

Registered Charity No. 237778. Registered Company No. 86942. Sailors’ Society Scotland. Charity registered in Scotland no. SC041887. Registered Company No. SC387850.