2023-12-31-accounts

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TRUSTEES’ ANNUAL REPORT AND ACCOUNTS ~~20~~ 23 FOR THE YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

“Having our whole support network on their phone means they, and their families, can get the care they need immediately. We believe this is the future for seafarer welfare.” Chief Executive Officer Sara Baade

SAILORS’ SOCIETY

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Introduction
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Our year
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Crisis Response Grants – education Promotion of Network and the relief our charitable of poverty and purpose distress

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Christmas blessings Future plans
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Strategic report
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Financial review

14 Where our funds came from in 2023

14 How we spent our funds in 2023
19 Audit report

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Wellness at Sea
10
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International Christian Maritime Association

11 Our funders and supporters

Financial statements

Administrative details, trustees and advisors

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

The year 2023 is one that will stand out in the history of Sailors’ Society.

This is the year we switched our focus to 24/7 virtual support for seafarers and their families across the globe.

Life at sea has been changing with less time in port, smaller crews and a new generation of digital native seafarers who count on accessing services virtually.

We became their support system in their pocket, focused on a digital offering which is accessible to everyone.

Today, our global team provides a virtual chaplaincy service available to all seafarers and their loved ones whenever and wherever they need support, whether they are many miles out to sea, in a busy port or at home recovering from illness or waiting for their next contract to begin.

Our fully trained team continues to be stationed all over the world, so they can answer calls and messages around the clock, speak in a variety of languages and still support faceto-face when needed in a crisis.

Sailors’ Society’s Crisis Response Network has been running since 2015 and has again this year been a lifeline to hundreds of seafarers and their families caught up in accidents, violent storms and imprisonment.

And we continue to work hard to help seafarers and shipping companies avoid crises whenever possible. Our acclaimed Wellness at Sea programme continued to expand with innovative training and support services, all accessible through a phone or laptop.

“Having our whole support network in their phone means they, and their families, can get the care they need immediately, and we believe this is the future for seafarer welfare.

“Covid taught us many lessons in communicating virtually with the people we are here to serve – the world’s seafarers. These key workers of the sea are hugely resilient, but arguably at their most vulnerable out on the oceans, where they may be isolated, anxious about personal or family problems or exposed to violent storms or the threat of piracy. We will now be right there with them when they need us the most.

“Making our chaplaincy support virtual and instant to every seafarer who needs it ensures we – and they – remain fit for the future.”

Chief Executive Officer Sara Baade

SAILORS’ SOCIETY

The platform, part-funded by Chellship and The Chellaram Foundation, covers a wide range of topics to help crews manage mental and emotional strain, improve relationships, enhance physical and mental fitness and so much more.

It is interactive and engaging, with quizzes, videos and activities, and it works on and offline.

At the same time, we were setting ourselves apart as an organisation that collects and reports on data, invaluable to an industry struggling with recruitment and retention.

By the end of 2023, less than six months after the platform was launched, more than 600 seafarers had undertaken our wellness e-learning training and numbers were already rising sharply.

Just a week after we announced our new virtual strategy, we launched our MyWellness e-learning platform, a game changer not only in helping seafarers help themselves but in collecting valuable industry data.

Bringing our many years of expertise and experience together, this unique programme is designed to help combat fatigue, poor mental health, stress and other issues that affect seafarers in their daily lives - and all from their phone, laptop or computer.

MyWellness

“Working together with Sailors’ Society has provided us an opportunity to prioritise the health and wellbeing of sailors, who are the shipping industry’s backbone. The Society’s new e-learning programme not only highlights the importance of resilience in the face of adversity, but also provides a powerful reminder of the human spirit’s capacity to overcome challenges.”

Chief Executive and Director of Chellship Vishal Khurana

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

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6
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WITH THANKS TO OUR 2023 MARITIME SCHOOLS’ CONFERENCES SPONSORS

UK: Trinity House, Inmarsat Africa: The TK Foundation South East Asia: Inmarsat, The TK Foundation

North Asia: North Standard, Seaspan

SAILORS’ SOCIETY

When an organisation has been around for more than two centuries, it has seen a lot of changes and has had to adapt over and over to a changing world.

Sailors’ Society was born in East London at the end of Napoleonic Wars when many seamen suddenly found themselves out of work and roaming the streets.

We have served our heroes of the sea from a time when Britain’s Merchant Navy ruled the waves, through the sinking of the Titanic, two World Wars, the Herald of Free Enterprise disaster, the rise of piracy, Typhoon Haiyan in the Philippines, the pandemic and now war in Ukraine.

Sailors’ Society has continually evolved over its 205-year history and adapted through challenging times both in the maritime and charity sector.

Now, we have evolved once more, ensuring we can best serve seafarers and their families across the world, keeping us relevant, innovative and ahead of the curve.

As we look forward to the years ahead, we will stay agile and alert to new, exciting ways of working with the industry to support all those keeping world trade moving.

We all rely on seafarers. Seafarers rely on us.

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

OUR YEAR

As the first few pages of this report have detailed, this was a pivotal year for the Society.

But it was also another challenging year for our seafarers and the whole shipping industry.

Crisis after crisis has befallen crews and ship owners and operators, from the global pandemic and crew change crisis to the war in Ukraine and then, towards the end of 2023, Houthi attacks in the Red Sea.

A major shipping route, the area has become another war zone with explosive drones and missiles being fired at cargo ships in a horrifying spillover from the Israel/Gaza conflict.

Many ships have diverted around the southern tip of Africa risking cyclones, piracy and bunkering delays – and lengthening the time that seafarers are away from their loved ones.

We continued to come alongside them, as we have done for the past 205 years. We help crews in need whether that is with emergency grants, crisis response or liaising with their families when they are unable to. We work with the industry to ensure crews are as prepared as possible for the challenges at sea; we innovate and bring creative solutions to those living their life at sea. We advocate for their safety, their health and their rights.

The way that we do this has changed over the years. But the focus of our work, the efforts of our dedicated team and the purpose of our plans does not.

Regrettably that change has led to a downsizing of our workforce through a redundancy process that was carefully managed to ensure affected employees were given significant notice and support. To their credit some of our staff wished to carry on seafarer ministry independently,

from their early days as a cadet to their final contract and we are hugely grateful to companies, like West P&I and Euronav, that have helped fund this vital work and ensured seafarers and their families feel supported and empowered.

such was their commitment to our cause. We would like to take this opportunity to thank everyone who has served with Sailors’ Society to support seafarers and their families across the globe.

The shift in strategy to more virtualbased support also saw the sale of the Society’s property in Wallaroo, South Australia, which had accommodated retired seafarers and their dependents in five homes. Again, significant notice was given of this change starting in 2022 and support was given to the residents in relocating, where requested.

Some 4,200 cadets attended our global cadet conferences in 2023 – see page 6
Almost 13,000 seafarers benefited from our Sea Ready pre-departure training.
Face-to-face facilitated training began again as the pandemic restrictions eased.

Our Vision

We launched our ground-breaking MyWellness e-learning platform – see page 5

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

Our Mission

Peer-to-Peer Supports Groups continued to thrive with numbers growing by a third – see page 6

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

Our Ship Connect service, which sees us proactively contact crews to build up trust and help identify any issues early, saw us calling crews on 100 vessels.

WELLNESS AT SEA

Under our charitable objective for the advancement of education, our industry leading Wellness at Sea programme, focusing on mental health and wellbeing through training and support, continues to be a key area of our work.

Almost 900 seafarers and their families were supported by our Crisis Response Network – see page 9

With wellness at the heart of our work, we also launched a new-look Wellness at Sea Awareness Campaign for seafarers, their families and shore staff.

Our circle of care below supports seafarers throughout their career at sea,

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CRISIS
RESPONSE CADET
NETWORK CONFERENCES
SEA READY
PRE-DEPARTURE
SHIP TRAINING
CONNECT
FACILITATED
PEER-TO-PEER TRAINING
SUPPORT
GROUPS
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E-LEARNING
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SAILORS’ SOCIETY

This free resource is available to shipping companies looking to give crews, and the wider maritime family that support them, vital tools to help look after their own wellbeing and that of those around them.

The Awareness Campaign has been taken up by more than 70 organisations over the past two years, but was refreshed and expanded with new material, podcasts and videos in 2023, thanks to funding support from the MNWB.

Stuart Rivers, CEO of MNWB, said: “A campaign of this nature is something the seafaring community has been crying out for.

“And while there are many resources available for seafarers, this project goes further by offering a plethora of support to their families and those at shore through the cost-of-living crisis.

“Mental health and wellbeing are the biggest challenges seafarers face and, as an industry, we need to keep working with new initiatives like this to help break down the barriers, so seafarers are able to talk.”

In a further boost to our wellness programme towards the end of the year, ITF Seafarers’ Trust funded indepth wellness training and support for thousands of cadets and trainees in India.

Working with maritime institutions and schools across India, a three-day Wellness at Sea training course will follow the Society’s annual North Asia cadet conference. Schools will also be given the Society’s Wellness at Sea Awareness Campaign resources and access to a Sailors’ Society liaison officer for help when needed.

Sailors’ Society’s Head of Wellness, Johan Smith, said: “This programme of training and support will really help prepare cadets for a life at sea. Data from our cadet conferences, which have been running for three years now, reveal time and time again the gap between perception and reality.

“Engaging with cadets at the start of their career builds trust and familiarity that makes it easier for them to reach out to us at any point they need to throughout their years at sea. This programme will make a tangible and sustainable difference, not just to cadets, but to the industry as a whole.”

CRISIS RESPONSE NETWORK Under our charitable objective for the relief of poverty and distress, Sailors’ Society’s Crisis Response Network (CRN), funded by The Seafarers’ Charity, the TK Foundation and UK P&I Club, has been operating for eight years.

Our fully trained and highly experienced network of crisis responders are based across the world, providing free 24/7 care and support to seafarers, their families and shipping companies following critical incidents such as piracy attacks, accidents and natural disasters, as well as more personal crises like bereavement or relationship breakdown.

Almost 900 seafarers and their families were supported through the CRN during 2023.

Shipwreck – a case study

In August, Sailors’ Society’s Crisis Response Network supported survivors of a shipwrecked trawler after an urgent search and rescue operation took place off the Southern Cape coast of South Africa.

The team also comforted families of the seven-strong crew, four of whom died when this local fishing vessel washed up on rocks in rough seas.

Rescuers found the skipper carrying out CPR on the body of one of his six crewmen.

Detained – a case study

In June, members of our Crisis Response Network travelled to Cape Town to welcome back the 26 crew of the MT Heroic Idun after supporting them and their families through a 10-month detention by Nigerian authorities.

We had been in contact with the crew since they were first detained in August 2022, accused of attempted oil theft and faking a piracy attack.

CRN team member, Boet van Schalkwyk, said: “Though the crew were in good heart, delighted to be free and heading home, they had clearly undergone a traumatic and drawn-out ordeal.

“They really appreciated our support for them and their families throughout this time and are looking forward to this continuing when they get home to their families.”

We were there for their families through the postponement of several trial dates and were on hand when the news finally arrived that the crew had been released.

Little Stephania had refused to celebrate her fourth birthday until her seafarer daddy returned home – and we were there with them when they finally blew the birthday cake candles out together.

“We went through a very difficult time,” said her father Xavier Braisvan. “I was devastated on my daughter’s birthday. She is very small, and I was upset that I missed her birthday. I am so happy that Sailors’ Society was there to support my family. They gave us hope.”

GRANTS – EDUCATION AND THE RELIEF OF POVERTY AND DISTRESS

We awarded more than 40 grants to those in need through 2023.

Our Sea Change grants help pay for food, housing, medical bills and education fees.

As demand for financial help increased, by far the largest amount went to Ukrainian seafarers and their families, some of whom had lost their homes and possessions in the continuing strikes while others needed to update their qualifications or find alternative work.

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

We have maintained a presence in Ukraine to best support those in need there. Being on the ground means we can help displaced and desperate seafarers and their families in person, but also ensures we can speak with troubled or anxious Ukrainian seafarers many miles away from home and loved ones in their own language. We also have a Peer-to-Peer Support Group for those affected by the crisis in Ukraine.

PROMOTION OF OUR CHARITABLE PURPOSE

We actively inform the public, shipping industry and our funders about our global work through our website, e-newsletters, social media platforms, marketing activities, media coverage and at events, held by us or others across the industry.

Telling our story, and the stories of those we support, is vital to the wider understanding of seafarers and the sacrifices they and their families make and to raising funds to support our programme and those in desperate need around the world.

One of the biggest stories we were involved in began with a timely social media post about the research ship Petrel which had toppled over in dry dock in Leith. We expressed our sympathy and mentioned we were on the ground helping. We were quickly contacted by media who saw the post and, over the next 24 hours, fielded constant calls from journalists. As a result, we appeared in 303 separate articles and broadcasts. From the BBC in Scotland, Sky News, the Scotsman and even The Sun to Fox News and KTUV-TV in the USA, Nepal News, Indonesia Posts and News Africa Now, Sailors’ Society truly made the news all over the world.

We made a number of changes to our comms strategy in 2023. We researched our social media audiences and as a result made our Facebook and Instagram platforms solely seafarer-facing, changing our messaging and tone of voice to carefully target our followers.

CHRISTMAS BLESSINGS

We gave out some 1,000 parcels to seafarers who would be away from their homes and loved ones for Christmas.

And the new Maritime Minister, Lord Davies of Gower, chose our annual carol service for his first public address to the maritime industry.

We also launched new quarterly e-newsletters for cadets, seafarers and the industry, each with a bespoke look and feel. By the end of the year, we had more than 9,000 on our newsletter distribution lists.

He said that while “Santa will be travelling the globe, many of the presents under the tree will have been brought to us by seafarers, travelling at much slower speeds than Santa and crossing the oceans with fortitude.”

We will continue to evolve our social strategy and launch a new website for the organisation in 2024.

He told representatives of the maritime industry, our funders and supporters that “seafarers face separation from home and we know this has serious implications for mental health and wellbeing”, adding that this is why the work of organisations like Sailors’ Society is so important.

INTERNATIONAL CHRISTIAN MARITIME ASSOCIATION

Our CEO, Sara Baade, continued in her post as Chair of the International Christian Maritime Association (ICMA) through 2023. ICMA represents more than 400 seafarer ministries across the world and we had the opportunity to present on our work and approach a number of times over the year.

And he added they were “working in the harshest work environment on the planet.”

SAILORS’ SOCIETY

FUTURE PLANS

Having made big changes in 2023, we will continue to press forwards extending our virtual support to an ever-increasing number of seafarers and their families.

We will continue to grow our popular Peer-to-Peer Support Groups, identifying new groups that would benefit from that safe space with others who understand exactly what they are going through.

And we will look to bring more of our service online, like our pre-departure training, making it accessible to every seafarer, wherever they are in the world.

At the same time, as we collect more and more data through our e-learning platform, wellness training and cadet conferences, we intend to share our findings with the industry through new reports focusing on specific areas of interest.

Seeking out opportunities to work with others, where we can support one another with research, services or funding will be key. Partnerships and collaboration, with the sharing of knowledge and skills, helps all of us work together to better support those who keep the world trade moving today and tomorrow – our seafarers.

OUR FUNDERS AND SUPPORTERS

IN LOVING MEMORY

We would also like to take this opportunity to remember chaplain Bill McCrea, who was part of the Sailors’ Society family for more than 50 years.

Our grateful and immeasurable thanks go to those who have continued to fund and support our work during 2023. Some of our biggest supporters are mentioned above giving valuable funding directly to support specific areas of our work. We are incredibly grateful to other funders who give unrestricted funding, allowing us to direct money to the areas of greatest need. Our thanks also go to our many individual supporters, including those who have remembered us in their wills.

Bill began as a chaplain with the Society in 1969 and was posted overseas in various countries for a number of years.

He was chaplain to the Merchant College Greenhithe and the National Sea Training College Gravesend when the Zeebrugge disaster claimed the lives of 193 people in 1987.

Bill’s final posting was to Southampton which lasted until his retirement in 2006. But it is a testament to Bill’s commitment and passion for his work and calling that he continued as a volunteer for some 15 years until 2021 when he and his wife Rosaleen moved away.

Thank you Bill from the many seafarers and their families whose lives you touched and changed for the better and from all of us at Sailors’ Society.

Bill died on 31 October 2023.

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

STRATEGIC REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

The Society is a company limited by guarantee without share capital (company number 86942) and governed by its Memorandum and Articles of Association. It is also a registered charity in England and Wales (charity number 237778). Trustees are also directors of the limited company.

The Society has five subsidiary entities:

Sailors’ Society Scotland

Scottish company limited by guarantee and Scottish registered charity

Sailors’ Beneficial Enterprises Ltd

Company limited by shares in England and Wales

Sir Gabriel Wood’s Mariners’ Home

Scottish registered charity, currently dormant

Sailors’ Society Philippines Inc

Philippines company limited by guarantee

Sailors’ Society USA

Non-profit organisation registered in Texas, USA (dormant)

The Society is a founder member of the International Christian Maritime Association, a membership charity for international maritime Christian charities formed to encourage ecumenical collaboration and mutual assistance among organisations. The Society and its front-line employees have subscribed to its code of conduct.

Governance and management

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 committees exist which report to the Board and these committees contain Trustees with senior staff members in attendance. The committees are:

Finance and General Purposes

Board as appropriate. A separate Board exists for the Philippines subsidiary and its chairman reports directly to the Chief Executive.

The Trustee Board’s main decision-making function is to decide upon and control the charity’s strategic direction. A Senior Leadership Team manages and makes decisions regarding the day-to-day operations of the charity and reports back to Trustees formally through committees and informally through regular contact with the Chairman and committee chairs.

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, as appropriate, by the Society.

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

Board recruitment and development

New Trustees are sourced by the Governance Committee from recommendations made by existing Trustees and their networks in line with the Society’s Equality, Diversity and Inclusivity Policy, and nominations are reviewed in consultation with the CEO. Prospective Trustees are interviewed prior to appointment to ensure they add value and bring relevant skill sets and experience.

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.

During 2023 there was no requirement for any Trustee to stand down upon reaching a particular age or term of office. However changes have been proposed in 2024 regarding trustees’ maximum term of office and these shall be reported upon in the 2024 Annual Report once agreed and adopted by the Board. The Board reviews the skills of Trustees, in accordance with best practice, to ensure the needs of the charity are well supported through the collective skill set and experience.

Governance
Operations
Remuneration

A similar system of operation exists for the UK subsidiaries and separate Board meetings are held which report into the main

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.

SAILORS’ SOCIETY

OBJECTIVES AND ACTIVITIES

The Society’s governing document is its Memorandum and Articles of Association, last updated in 2017. This states:

“The objects for which the Charity is established are to benefit British and foreign seafarers, ex-seafarers and intending seafarers and their families and dependants 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.”

PUBLIC BENEFIT

The purposes of the charity are set out in the paragraphs above, the beneficiaries being seafarers themselves, their families and the communities in which they live and work which can include shoreside personnel. Specific stories detailing how these groups have benefited from our work are set out earlier in this report.

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.

Christianity

Our work is motivated and guided by Christian faith and values, but our global team provides support and services to seafarers, their families and the shipping industry across the world, to those of any faith or none.

The advancement of education

Wellness at Sea is our flagship programme, educating seafarers across the world about how to best look after themselves and their crew mates while they are away at sea. This programme helps crews maintain their mental and physical wellbeing, as well as providing support with finances, relationships, their rights and spiritual wellness. We also provide educational grants and scholarships to those who want to pursue a career at sea but are without the means and educational support to the children of seafarers to increase future living standards of seafaring families.

The relief of poverty and distress

We act when seafarers and their families are affected by tragedy, incident or accident, and make interventions that relieve poverty and distress. Our Sea Change fund provides monetary assistance for those in need. We keep in contact with seafarers through helplines manned by our experienced responders and through our Peer-to-Peer Support Groups where seafarers can interact with each other to share experiences and raise issues that are important to them, assisted by our group moderators who also generate discussion topics between groups.

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

FINANCIAL REVIEW

Our income sources in 2023

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23.4
35.1
0.5
6.4
2.7
11.2
20.7
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Donations and grants

Donations and grants Fundraising events, sponsorship and Legacies commercial

Charity Shop income (retail) Investment income

Charitable activities Miscellaneous

How we spent our funds in 2023

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24.9
75.1
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Charitable Raising funds

Overview

The group surplus for the year before investment gains is £191,000 comparing favourably with the deficit of £1,100,000 incurred in 2022. Listed investments and investment property unrealised gains further boosted the result by £108,000 with deficits on listed investments sold giving rise to a deficit of only £2,000. The overall surplus (net income) was £297,000 (2022: deficit £1,384,000).

The balance sheet total has increased from £3,406,000 to £3,703,000. The cashflow statement shows net liquidations of fixed assets of £678,000 and a net additional investment in listed investment vehicles of £583,000. Cash reserves reduced from £697,000 to £382,000 during the year.

Income

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2023 2023 2022 2022 Year on
% % year
split split change
£000’s £000’s £000’s
Donations
1,253 56% 984 71% +269
and legacies
Charitable
11 1% 58 4% -47
activities
Other
trading 314 14% 207 15% +107
activities
Investments 145 6% 135 10% +10
Other
530 23% 5 - +525
income
Total 2,253 100% 1,389 100% +864
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There was a significant uplift in fundraising income in 2023 of 27% compared to the previous year. This included recognition of a major legacy causing legacy income to rise to £467,000 from £331,000 and increased donations of £786,000, up from £653,000 in 2023. Other fundraising income sources within other trading activities, such as charity shops, showed a reduction in income of £14,000 to £62,000 reflecting the disposal of all but one of our shops. Within the same heading, our fundraising events, sponsorship and commercial income, much of which stems from Wellness at Sea - related services and promotion, improved by £121,000 to £252,000. In particular our Kilimanjaro Challenge formed the major element of our events programme in 2023 within this total.

SAILORS’ SOCIETY

In terms of income from charitable activities, income reduced to £11,000 from £58,000 (down by £47,000) mainly as a result of the non-recurrence of rental income following the sale of Sir Gabriel Wood’s Mariners’ Home and Court in March 2022 and the cessation of rental income following the sale of the Moorings retirement units for seafarers in July 2023.

Listed investment income showed a turnaround from its previous status as a reducing income stream showing an improvement of £17,000 to £86,000 as a result of property sale proceeds being invested to generate future income and capital returns.

Under other income the sale of the Moorings in Australia generated a surplus of £528,000 based on the depreciated original cost of the property.

Expenditure

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2023 2023 2022 2022 Year on
% % year
split split change
£000’s £000’s £000’s
Raising
514 25% 481 19% +33
funds
Charitable
1,548 75% 2,008 81% -460
activities
Total 2,062 100% 2,489 100% -427
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Charity shop costs reduced by £35,000 to £142,000 due to shops closing during 2022 and also leasehold interests being disposed of in 2023. Fundraising events, commercial and sponsorship costs increased by £60,000 to £139,000 partly as a result of the direct cost of staging the Kilimanjaro Challenge. Other fundraising costs increased marginally by £8,000 to £212,000.

Within charitable activities there was a total of £460,000 cost reductions to £1,548,000 across all areas caused by the chaplaincy restructure and reduced activity whilst steps were taken to continue to close down the Sir Gabriel Wood’s Mariners’ Home charity. The non-recurrence of specific programme activity such as the COVID vaccination roll out for seafarers and their families in the Philippines alongside a reduced level of welfare grants in 2023, first arising out of the start of the Ukraine war in 2022, also caused a reduction in costs.

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.

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 a now discontinued commercial activity. Efforts continue to been made to generate more profitable commercial income streams and there has been continued success in 2023 in reducing the net liability position even further. However Trustees of the Society and directors of SBEL acknowledge returning to a net asset position will be a longer-term objective.

In respect of Sir Gabriel Wood’s Mariners’ Home, this is no longer trading and the Office for the Scottish Regulator gave permission in October 2022 to wind up the charity which is the final part of this process as it is no longer needed. Regrettably progress in chasing and acknowledging outstanding debts due to the charity has been limited. These are provided for as doubtful and therefore at nil value in the accounts. Permission has been sought from the Charity Commission and is awaited at the time of writing this report to inject Society funds, if required, to facilitate the winding up of the charity.

REVIEW OF THE LEVEL OF FINANCIAL RESERVES

Our Reserves Policy

Reserves are maintained to provide financial stability and continuity of services during periods of economic uncertainty, unexpected expenditure, or a reduction in income.

To achieve this level of reserves, the Society is investing in charitable programmes to be funded by sustainable income over the coming years.

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 funded 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 2023 our total reserves were £3.7 million. The restricted funds totalled £0.6 million. The remaining funds are unrestricted at £3.1 million and these contained unrestricted fixed assets used in the charity of £0.4 million, the investment property, part-occupied by the Society, of £0.5K less the lease commitments of less than £0.1K. Allowing for these, free reserves stood at £2.1 million, which equates to 15 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 now that we have a lower cost base than previously.

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

Designated funds are held in relation to the book value of fixed assets and investment properties used by the charity (£901,000).

INVESTMENTS REVIEW

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 investments include self-managed investment property and listed investments. The Society’s investment policy was reviewed and revised during the year.

In terms of screening investments, now that we are predominately invested in multi-asset funds rather than a traditional bespoke portfolio models, we will consider ethical and environmental, social, and governance (ESG) factors when making investment decisions. Investments shall be made in companies and funds that adhere to responsible and and sustainable business practices. If part of a pooled investment vehicle, assurances will be sought that investments are made taking ESG factors into account. During 2023 we made a major investment in the Cazenove Sustainable Multi-Asset Fund to further our ESG aspirations.

Sailors’ Society acknowledges that all investments involve risks, including the potential loss of capital. The charity recognises the need for a balanced approach between risk and return, taking into consideration its charitable objectives and the need to protect its assets. The Board of Trustees has determined the acceptable level of risk as medium to high where higher risk arises within a pooled investment vehicle as part of a strategic investment aim (alongside medium and lower risk investment) to maximise investment returns. High risk should not apply to a stand-alone investment. The Society has also chosen to separate its holdings between different (presently four) investment houses to spread its risk exposure in respect of different investment approaches.

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 which is before deduction of fees (i.e. gross).

The Cazenove Charity Multi-Asset Fund and the Cazenove Sustainable Multi-Asset Fund are pooled multi-asset investment vehicles. The investment mix is determined by the fund manager and based upon their views of different investment types. There are defined ranges they can trade within. The fund’s total return target is the rate of inflation plus four per cent over rolling 10-year periods while aiming to meet this target with around two-thirds of equity market volatility. With a very high level of inflation, reviewing the performance against this benchmark on a short-term basis

shows an underperformance so further comparison against peer group performance is useful.

We also made a new investment into the Blackrock Charities Growth & Income Fund in 2022 and added to this in 2023 as well as making a new investment in the M&G Charity Multi-Asset Fund. Both are pooled investment vehicles and have bespoke performance benchmarks based on a number of market indices and asset types.

We also review pooled investment performance against the ARC peer group index covering a range of similar investment products available in the market.

The total return for invested funds during the year was:

----- Start of picture text -----
YEAR LAST THREE YEARS
Actual Benchmark Actual Benchmark
+7.2% 11.7%
Investec (gross) +9.4 % (gross) 14.1%
(£0.22m) (gross) (gross)
+6.2% (net) 8.5% (net)
Cazenove
Charity
+5.8% +8.2% +10.2% +32.8%
MAF
(£0.85m)
Cazenove
Sustainable
Not Not
MAF -from +4.9% +8.2%
applicable applicable
Sep 2023
(£0.73m)
Blackrock
– from Not Not
+4.3% +10.1%
Jun 2022 applicable applicable
(£0.39m)
M&G – from
Not Not
Sep 2023 +6.2% +10.2%
applicable applicable
(£0.31m)
----- End of picture text -----*

*figures for the 2023 calendar year, not from the date of new investment.

Unless stated otherwise, performance figures are quoted after investment fees are deducted (net). The ARC Peer Group Sterling Steady Growth Index showed a total return of +7.5% for 2023 and +9.1% over the three-year review period.

Our self-managed investment property generated a yield in the region of 6.8% for 2023. This was within external provincial office yields in the end of 2023/early 2024 property data ranges.

SAILORS’ SOCIETY

PRINCIPAL RISKS AND UNCERTAINTIES

We operate a formal risk management process where the Senior Leadership Team review and update risks on a regular basis to 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 at least quarterly by the Trustees.

The main risk areas are:

Volunteers involved in assembling Christmas parcels for seafarers
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 distributed in Christmas parcels for seafarers

Measurement issues, including attributing an economic value to volunteers’ services, prevent inclusion of their contribution in the Statement of Financial Activities.

Financial (investment risk and risk to revenue income streams)
Operational (including personnel)
Governance and compliance
External

We have strong mitigations for the majority of our main risks. The top risk is considered to be that fundraising targets are not met and ultimately the overall financial viability of the Society is threatened. In handling this risk, in terms of income generation, the Trustees regularly monitor the Society’s fundraising strategy and performance against fundraising targets. They also review quarterly financial forecasts and formulate and consider contingency plans in the event that the Society’s structure, including its cost base, needs to be altered to make best and most efficient use of the resources it has at its disposal.

With our changed operational model, our interaction with seafarers has changed. Whilst we have a strong strategy in place to reach more seafarers in new ways, including a successful social media plan and popular digital platforms, it is still early days for our new way of working and we recognise this as one of our top risks. The numbers of seafarers we reach is closely monitored by management and Trustees.

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 160 volunteers working across the following areas:

Trustees who commit much of their time to provide strategic leadership and governance
Volunteer ship visitors who visit ships in our name but 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

“Since my time working at sea, and post-Covid19, providing support for our seafarers could not be more important. I’ve been an Ambassador for Sailors’ Society for more than seven years. Having seen first-hand Sailors’ Society’s work, the welfare they provide and the appreciation that crews have for this, I am proud to support them in any way I can.” Peter Broadhurst, Maritime Snr VP Safety and Regulatory, Inmarsat

Volunteer numbers have reduced during 2023 now that the Society has adopted a new way of working. We look to rebuild our volunteer base as necessary to help support our work going forward.

FUNDRAISING PRACTICES

We are reliant on donations to fund our work and it is thanks to the continued generosity of members of the public, companies, trusts and foundations that we are able to support seafarers and their families in need.

We are registered with the Fundraising Regulator and we aim to be as open as possible about how we raise funds. As an organisation, and as individuals, we strive to adhere to the Code of Fundraising Practice and are committed to the Fundraising Promise. In 2023, we received no complaints about our fundraising activity.

We work hard to minimise the risk of breaches of fundraising compliance, through on-going development and training. We recognise the impact of the cost of living crisis on individuals, the pressures companies are under and increased demand on trusts and foundation. We are, therefore, very grateful for our ongoing supporters as well as new supporters. We run a number of appeals during the year to highlight the plight of seafarers, helping us raise both funds and awareness of the challenges seafarers face.

We work with many different companies in the shipping industry, through their charitable foundations and through commercial partnerships including sponsorship activities and fundraising

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

events. We see partnership and collaboration with the maritime corporate sector as crucial to our ability to fund and deliver wellbeing and welfare support to seafarers. We also receive the support of a number of charitable trusts and foundations, both within and outside the maritime sector.

We receive philanthropic gifts from individuals, one off donations as well as regular giving. We also receive legacies and in memoriam donations. We do not work with any thirdparty agencies or professional fundraisers to undertake our fundraising on our behalf but work with a third-party marketeer to help sell advertisements in our Christmas Carol Service to help cover our costs. We do not sell tickets to this event.

We aim in all our supporter communications to provide clear information about how to request no further communications and work hard to ensure such requests are properly recorded and respected. Our Safeguarding Policy includes protecting those people in vulnerable circumstances.

To ensure effective governance of our fundraising the Operations Committee received regular reports on our activities, performance and compliance. The Finance Committee looks closely at our financial performance. Our staff team works closely with the Trustee Board to ensure that controls are in place relating to each area of accountability covered in the Charity Commission’s guide to Trustee duties.

Those who take part in fundraising events not only raise vital funds for us but help raise our profile more widely. We are very grateful to our marathon runners who spent time not only training for this high profile event, but raising money for us. We’d also like to thank the 13 adventurous climbers who took part in our Kilimanjaro Trek, sponsored by Swire Shipping and Swire Bulk. And the four rowers who took on the Atlantic Ocean in the world’s toughest row. They began the epic 3,000 mile voyage at the start of December.

Thank you to everyone who has taken on challenge events in our name.

STATEMENT OF THE FINANCIAL DUTIES AND RESPONSIBILITIES OF TRUSTEES Company law requires that the Trustees prepare financial statements for each financial year. These 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 a 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

Azets Audit Services were appointed as auditors in January 2023 and have shown their willingness to continue in office.

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 audit information of which the group’s auditor is unaware, and
The Trustees individually have taken all the necessary steps that they ought to have taken as Trustees in order to make themselves aware of all relevant audit information and to establish that the charity’s auditor is aware of that information.

This report, including the strategic report, was approved by the Trustees on 31 July 2024 and signed on their behalf by:

Peter M Swift Chairman of the Board of Trustees

SAILORS’ SOCIETY

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

OPINION

We have audited the financial statements of Sailors’ Society (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2023 which comprise the consolidated statement of financial activities, the consolidated and parent charitable company balance sheet, the consolidated cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 parent charitable company’s affairs as at 31 December 2023, and of the group’s incoming resources and application of resources, including its income and expenditure, 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.

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

OTHER INFORMATION

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

We have nothing to report in this regard.

BASIS FOR OPINION

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

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 (incorporating the strategic report and directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report ,included within the trustees’ report. have been prepared in accordance with the applicable legal requirements

CONCLUSIONS RELATING TO GOING CONCERN

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

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

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

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

the information given in the financial statements is inconsistent in any material respect with the Trustees’ report; or
sufficient accounting records have not been kept
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the statement of trustees’

responsibilities, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/Our-Work/ Audit/Audit-and-assurance/Standards-and-guidance/Standardsand-guidance-for-auditors/Auditors-responsibilities-for-audit/ Description-of-auditors-responsibilities-for-audit.aspx.

USE OF OUR REPORT

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

Jon Noble (Senior Statutory Auditor) for and on behalf of Azets Audit Services

7 August 2024

Chartered Accountants

Statutory Auditor Athenia House, 10-14 Andover Road Winchester, Hampshire, United Kingdom, SO23 7BS

SAILORS'SOCIErY FINANCIA ' STATEMEN 21

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted Funds Notes £000’s Income and endowments from: Donations and legacies 2 299 Charitable activities 3 11 Other trading activities 4 314 Investments 5 145 Other 6 530 Total 1,299 Expenditure on: Raising funds 514 Charitable activities 911 Total 7 1,425 Net (expenditure)/income before (126) investment gains/(losses) Gains/(losses) on investments 106 Net (expenditure)/income (20) Total funds brought forward 3,106 Fund balances carried forward 3,086	Restricted Funds (Continuing) £000’s 954 - - - - 954 - 634 634 320 - 320 334 654	Restricted Funds (Discontinuing) £000’s - - - - - - - 3 3 (3) - (3) (34) (37)	Total 2023 £000’s 1,253 11 314 145 530 2,253 514 1,548 2,062 191 106 297 3,406 3,703	Total 2022 £000’s 984 58 207 135 5
				1,389
				481 2,008
				2,489
				(1,100) (284)
				(1,384) 4,790
				3,406

The statement of financial activities contains all gains and losses for the year and all activities relate to continuing and discontinued operations. The net income for the purposes of the Companies Act 2006 comprises the net income for the year adjusted for realised gains on investment assets and excluding the net expenditure on the former permanent endowment fund and was £189,000 (2022: net expenditure £1,123,000).

SAILORS’ SOCIETY

CONSOLIDATED AND SOCIETY BALANCE SHEETS AT 31 DECEMBER 2023

Notes Fixed assets Intangible assets 11 Tangible assets 12 Investments 13 Investment in subsidiary undertaking 21 Freehold investment properties 14 Current assets Stocks Debtors 15 Cash at bank and in hand Total current assets Liabilities Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 17 Provisions for liabilities and charges 18 Net assets	Consolidated 2023 2022 £000’s £000’s 41 72 408 613 2,499 1,853 - - 500 457 3,448 2,995 1 1 509 415 382 697 892 1,113 (197) (234) 695 879 4,143 3,874 (415) (438) (25) (30) 3,703 3,406	The Society 2023 2022 £000’s £000’s 41 72 403 601 2,364 1,645 5 5 500 457 3,313 2,780 1 1 502 451 358 685 861 1,137 (152) (194) 709 943 4,022 3,723 (415) (438) - - 3,607 3,285	The Society 2023 2022 £000’s £000’s 41 72 403 601 2,364 1,645 5 5 500 457 3,313 2,780 1 1 502 451 358 685 861 1,137 (152) (194) 709 943 4,022 3,723 (415) (438) - - 3,607 3,285
			2,780
			1 451 685
			1,137 (194)
			943
			3,723 (438) -
			3,285

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

CONSOLIDATED AND SOCIETY BALANCE SHEETS AT 31 DECEMBER 2023

Notes The funds of the charity Capital funds Endowment funds 19(a)(e) Income funds Restricted funds 19(b)(e) - Restricted discontinued - Other restricted Unrestricted funds General charitable funds 19(c)(e) - Investment revaluation reserve - Other general charitable Designated funds 19(d) Non charitable funds 19(c)	Consolidated 2023 2022 £000’s £000’s - - (37) (34) 654 334 617 300 166 315 2,523 2,354 2,689 2,669 901 987 (504) (550) 3,086 3,106 3,703 3,406	The Society 2023 2022 £000’s £000’s - - - - 613 321 613 321 161 311 1,935 1,673 2,096 1,984 898 980 - - 2,994 2,964 3,607 3,285	The Society 2023 2022 £000’s £000’s - - - - 613 321 613 321 161 311 1,935 1,673 2,096 1,984 898 980 - - 2,994 2,964 3,607 3,285
			-
			- 321
			321
			311 1,673
			1,984 980 -
			2,964
			3,285

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

The financial statements were approved by the Board of Trustees on 31 July 2024 and signed on its behalf by:

Peter M Swift

Chairman

Company number 86942

SAILORS’ SOCIETY

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

2023 £000’s £000’s Cash fows from operating activities Net generated from operating activities (509) Interest payable (19) (528) Cash fows from investing activities Interest and rents received 59 Dividends received 81 Payments to acquire tangible and intangible fxed assets (38) Purchase of investments (1,208) Receipts from sale of tangible fxed assets 716 Receipts from sale of fxed asset investments 625 Net cash provided by investing activities 235 Cash fows from fnancing activities Capital repayments (22) Change in cash and cash equivalents in the reporting period (315) Bank and cash balances at 1 January 2023 697 Bank and cash balances at 31 December 2023 382 Reconciliation of changes in resources to net cash outfow from operating activities Net income/(expenditure) for the reporting period 191 Investment income receivable (145) Interest payable 19 Depreciation, amortisation and impairment 33 Decrease in interest free loans - Decrease in stock - Increase in debtors (89) Decrease in creditors (38) Decrease in provisions for liabilities and charges (5) Surplus on disposal of fxed assets (475) Net cash outfow from operating activities (509) Analysis of cash and cash equivalents Bank balances and cash in hand 382 Analysis of changes in net debt At 1 January 2023 £000's Cash 697 Loans due (459) 238	2022 £000’s £000’s (1,351) (20) (1,371) 66 68 (38) (244) 958 1,081 1,891 (47) 473 224 697 (1,100) (135) 20 65 16 3 (84) (117) (7) (12) (1,351) 697 Cash-fows At 31 December 2023 £000's £000's (315) 382 22 (437) (293) (55)	2022 £000’s £000’s (1,351) (20) (1,371) 66 68 (38) (244) 958 1,081 1,891 (47) 473 224 697 (1,100) (135) 20 65 16 3 (84) (117) (7) (12) (1,351) 697 Cash-fows At 31 December 2023 £000's £000's (315) 382 22 (437) (293) (55)
		473 224
		697
		(1,100) (135) 20 65 16 3 (84) (117) (7) (12)
		(1,351)
		697
		At 31 December 2023 £000's 382 (437)
		(55)

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. Accounting policies

Sailors’ Society is a company limited by guarantee incorporated in England and Wales. The registered office is Seafarer 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 except for listed investments and investment properties which are held at fair value.

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.

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.

Entities classed as associates have not had their 2022 results consolidated into these financial statements, as explained in note 23, but financial information on these entities is included within the note.

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 £2,061,696 (2022: £1,237,480) and its total expenditure was £1,844,683 (2022: £2,264,408). Investment gains were £104,824 (2022: Losses £259,022).

This results in net income of £321,837 (2022: Net expenditure £1,285,950).

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.

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 raising 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.

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.

Designated funds are funds earmarked formally by the trustees for a particular purpose and can be formally undesignated and be transferred back into the general fund if no longer required.

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 :-

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.

SAILORS’ SOCIETY

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 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

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 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 :-

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

Charity Multi-Asset Funds - 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. For the Cazenove-managed fund, the fee element relating to client management services is a percentage of the portfolio value on a quarterly basis shown under costs of raising 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 impairment.

j) Stock

Stock consists of goods for resale held at Head Office 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 wide-ranging. 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 increase in funds of £297,000 and net cash outflows of £315,000 for 2023. The Society has prepared forecasts to the end of 2024 and further calculations into 2025 for itself and its subsidiaries that continue to operate. These forecasts and calculations anticipate that the Society will have sufficient financial reserves to operate throughout the period. The financial statements have therefore been prepared on a going concern basis.

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 the following areas: -

the recognition of legacy income in line with the stated accounting policy above.
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.
the valuation of investment property at fair value in line with accounting policy 1(i) above. Further detail is included in note 14.
the financial statements include an estimate in respect of the liability related to the individuals who are beneficiaries of the former Leith Aged Mariners’ Fund. Estimates relate to the discount factor used and the estimated life expectancy of the individuals - see note 18.

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

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

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.

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.

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

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. Donations and legacies Donations and grants Legacies 202 3. Charitable activities Income from seafarers’ centres and seafarers’ retirement facility Other programme related income Residential home fat rental income 202 4. Other trading activities Charity shop income Fundraising events, sponsorship and commercial 202 5. Investment income Listed investments Property rents Interest receivable 202 6. Other income COVID-19 related governmental income Surplus on the sale of freehold property Miscellaneous 202	Unrestricted Funds £000’s 230 69 299 2 540 7 4 - 11 2 40 62 252 314 2 207 86 50 9 145 2 135 - 528 2 530 2 4	Restricted Funds £000’s 556 398 954 444 - - - - 18 - - - - - - - - - - - - - 1	Endowment Funds £000’s - - - - - - - - - - - - - - - - - - - - - - -	Total 2023 2022 £000’s £000’s 786 653 467 331 1,253 984 984 7 27 4 13 - 18 11 58 58 62 76 252 131 314 207 207 86 69 50 65 9 1 145 135 135 - 1 528 - 2 4 530 5 5	Total 2023 2022 £000’s £000’s 786 653 467 331 1,253 984 984 7 27 4 13 - 18 11 58 58 62 76 252 131 314 207 207 86 69 50 65 9 1 145 135 135 - 1 528 - 2 4 530 5 5
					984
					27 13 18
					58
					76 131
					207
					69 65 1
					135
					1 - 4
					5

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

7. Total expenditure - 2023 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 Property rental costs Expenditure on charitable activities Products and services (including Wellness, Crisis support, helplines and peer to peer support groups) Seafarers’ centres and seafarers’ retirement facility costs 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) 27 50 77 105 105 - - - 182 612 - 1 8 108 729 7 918 246 1,164	Other direct costs £000’s 106 57 163 38 38 5 16 21 222 331 29 4 22 74 460 29 711	Support costs £000’s (Note 8) 9 27 36 61 61 - - - 97 189 6 13 2 47 257 79 433 (246) 187	Governance costs allocation £000’s - 5 5 8 8 - - - 13 77 2 2 5 16 102 (115) -	Total 2023 £000’s 142 139 281 212 212 5 16 21 514 1,209 37 20 37 245 1,548 - 2,062	Total 2022 £000’s 177 79
						256
						204
						204
						8 13
						21
						481
						1,428 37 162 81 300
						2,008
						-
						2,489

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

*7. Total expenditure - 2022* *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* Products and services (including Wellness, Crisis support, helplines and peer to peer support groups) Seafarers’ centres and seafarers’ retirement facility costs 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)* 59 42 101 103 103 - - - - *204* 667 2 32 15 136 *852* 9 *1,065* 352 1,417	*Other* *direct costs* *£000’s* 96 23 119 18 18 8 - 13 21 *158* 452 26 102 49 70 *699* 37 *894*	*Support* *costs* *£000’s* *(Note 8)* 22 9 31 74 74 - - - - *105* 224 7 23 12 78 *344* 81 *530* (352) 178	*Governance* *costs* *allocation* *£000’s* - 5 5 9 9 - - - - 14 85 2 5 5 16 *113* *(127)* -	*Total* *2022* *£000’s* 177 79 256 204 204 8 - 13 21 *481* 1,428 37 162 81 300 *2,008* - *2,489*	*Total* *2021* *£000’s* 449 68
						517
						315
						315
						12 4 18
						34
						*866*
						1,462 108 1,372 72 321
						*3,335*
						-
						*4,201*

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

7. Total expenditure (continued)

7. Total expenditure (continued)
		2023	2022
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		17
- audit fee for the subsidiaries		8		8
- tax compliance services and other advice		2		2
- Independent examination (Sir Gabriel Wood’s Mariners’ Home)		-		3
Remuneration paid to other auditors		1		3
Operating lease rentals	- land & buildings	54		93
	- equipment	8		13
Mortgage and other fnance interest payable Surplus on disposal of fxed assets Foreign exchange diferences		19 (475) 29		20 (12) -
Depreciation, amortisation and impairment		33		65

8. Allocation of support costs - 2023

Basis of allocation Fundraising costs Charity shop costs Fundraising events, sponsorship & commercial Costs of generating voluntary income Other fundraising costs Charitable activities Products and services Seafarers’ centres and seafarers’ retirement facility costs Residential home and seafarers’ let accommodation costs Contributions to partner organisations Promoting the charitable purpose Governance	Premises running costs £000’s Floor area - 4 4 9 9 12 - 1 - 5 18 6 37	Ofce facilities costs £000’s Head count 1 14 15 38 38 52 1 3 1 29 86 22 161	Finance, accounting & IT £000’s Time spent 6 6 12 9 9 114 4 2 - 3 123 33 177	Management & admin £000’s Time spent 2 3 5 5 5 11 1 7 1 10 30 18 58	2023 total £000’s 9 27 36 61 61 189 6 13 2 47 257 79 433	2022 total £000’s 22 9
						31
						74
						74
						224 7 23 12 78
						344
						81
						530

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

8. Allocation of support costs - 2022 Basis of allocation *Fundraising costs* Charity shop costs Fundraising events, sponsorship and commercial *Costs of generating voluntary income* Other fundraising costs *Charitable activities* Products and services Seafarers’ centres and seafarers’ retirement facility costs Residential home and seafarers’ let accommodation costs Contributions to partner organisations Promoting the charitable purpose *Governance*	*Premises* *running* *costs* *£000’s* Floor area - 1 1 7 7 9 - 1 - 6 16 3 27	*Ofce* *facilities* *costs* *£000’s* Head count 2 6 8 38 38 47 1 4 2 40 94 15 *155*	*Finance,* *accounting &* IT *£000’s* Time spent 9 2 11 6 6 100 4 11 7 2 *124* 46 *187*	*Management* *& admin* *£000’s* Time spent 11 - 11 23 23 68 2 7 3 30 *110* 17 *161*	*2022* *total* *£000’s* 22 9 31 74 74 224 7 23 12 78 *344* 81 *530*	*2021* *total* *£000’s* 54 5
						59
						90
						90
						227 17 73 20 84
						*421*
						84
						*654*

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

9. Analysis of grants expenditure within charitable expenditure

Operation of seafarers centres Seafarer communities Chaplaincy Seafarer general welfare Educational	Grants to institutions £000’s - - 4 - - 4	Grants to individuals £000’s - - - 18 2 20	Support costs £000’s - - - 7 - 7	2023 £000’s - - 4 25 2 31	2022 £000’s 10 68 8 75 2
					163

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

Within chaplaincy & welfare:- Voluntary Health Services, Chennai, India Provision of mobile medical facilities Queen Victoria Seamen’s Rest (QVSR) Contribution to project manager costs to oversee the transfer of UK joint venture seafarer centres to QVSR Magsaysay Multi Purpose Cooperative, Philippines Supply and distribution of COVID testing kits Within various:- Others £10,000 and under	2023 £000’s - - - 4 4	2022 £000’s 19 10 65 10
		104

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
10. Staf costs and numbers Salaries and wages Social security costs Pension costs Life assurance and medical insurance Chaplains’ housing costs Benefts in kind not included in the above	2023 £000’s 999 86 47 5 27 1,164 7	2022 £000’s 1,205 117 61 7 27
		1,417
		8

Total pension contributions accrued and not paid at 31 December 2023 amounted to £4,579 (2022: £7,666).

Total redundancy and termination payments were £120,398 of which £NIL was unpaid at 31 December 2023 (2022: £13,691 and £NIL unpaid at 31 December 2022).

The total remuneration of the three members of the Senior Leadership Team who served during the year including benefits but excluding pension contributions was £303,553 (2022: four members - £361,921). No remuneration was received by any director.

The number of employees receiving total emoluments over £60,000, excluding pension contributions, were as follows:

	2023		2022
	Number		Number
£60,000 to £69,999		-		2
£70,000 to £79,999		2		1
£120,000 to £129,999		1		1

Pension contributions to the Society’s defined contribution scheme for the three employees above were £28,103 (2022: four employees £33,241).

Included in the remuneration and bandings disclosures above is both direct salary and salary equivalent consultancy payments paid to members of the Senior Leadership Team during the year. Pension disclosures also include pension equivalent consultancy payments.

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

Charitable products and services Fundraising and charity shops Promoting the charitable cause Management and administration of the charity	2023 Number 17 4 3 6 30	2022 Number 35 5 3 7
		50

The average monthly head count during the year was 31 (2022: 57).

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

11. Intangible assets

11. Intangible assets
Consolidated and the Society Cost At 1 January 2023 Additions Disposals At 31 December 2023 Amortisation At 1 January 2023 Charge for the year Disposals At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022	Computer software £000’s 232 28 (205)
	55
	160 14 (160)
	14
	41
	72

Computer software relates to the technology the Society has developed for use in its charitable operations.

The value of computer software, in development, not amortised was £Nil (2022 - £27,775).

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

12. Tangible fixed assets

a) Consolidated

Freehold property & improvements £000’s Cost or valuation At 1 January 2023 728 Prior period adjustment - Additions - Disposals (269) At 31 December 2023 459 Depreciation At 1 January 2023 189 Prior period adjustment - Charge for year 5 Disposals (108) At 31 December 2023 86 Net book value At 31 December 2023 373 Net book value At 31 December 2022 539 b) Capital Commitments (Group and Society) At 31 December 2023 the Society had capital commitments of £Nil (2022 - £21,600). c) The Society Cost or valuation At 1 January 2023 728 Prior period adjustment - Additions - Disposals (269) At 31 December 2023 459 Depreciation At 1 January 2023 189 Prior period adjustment - Charge for the year 5 Disposals (108) At 31 December 2023 86 Net book value At 31 December 2023 373 At 31 December 2022 539	Leasehold property £000’s 72 - - (38) 34 67 - 1 (38) 30 4 5 38 - - (38) - 38 - - (38) - - -	Furniture fttings & equipment £000’s 237 1 10 (55) 193 202 1 10 (46) 167 26 35 221 1 9 (53) 178 189 1 8 (45) 153 25 32	Motor vehicles £000’s 423 - - (324) 99 389 - 3 (298) 94 5 34 385 - - (287) 98 355 - 3 (265) 93 5 30	Total £000’s 1,460 1 10 (686)
				785
				847 1 19 (490)
				377
				408
				613
				1,372 1 9 (647)
				735
				771 1 16 (456)
				332
				403
				601

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

13. Fixed asset investments a) Consolidated Market value At 1 January 2023 Additions Disposals Unrealised gains on revaluation Market value at 31 December 2023 Historical cost at 31 December 2023 Listed investments UK fxed interest securities UK equity shares Overseas equity shares Property funds Alternative investments Cash Market value at 31 December 2023 b) The Society Market value At 1 January 2023 Additions Disposals Unrealised gains on revaluation Market value at 31 December 2023 Historical cost at 31 December 2023 Listed investments UK fxed interest securities UK equity shares Overseas equity shares Property funds Alternative investments Cash Market value at 31 December 2023	Multi-Asset Funds £000’s 1,221 1,092 (80) 51 2,284 2,132 313 299 1,297 117 253 5 2,284 1,013 1,092 (5) 49 2,149 2,002 298 293 1,207 108 239 4 2,149	Bespoke Fund £000’s 632 116 (548) 15 215 169 47 77 82 - 9 - 215 632 116 (548) 15 215 169 47 77 82 - 9 - 215	Total £000’s 1,853 1,208 (628) 66
			2,499
			2,301
			360 376 1,379 117 262 5
			2,499

			1,645 1,208 (553) 64
			2,364
			2,171
			345 370 1,289 108 248 4
			2,364

Individual holdings at 31 December 2023 representing more than 5% of the value of the combined portfolio were as follows:Vanguard Funds Plc S&P 500 USD 7.4%

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

14. Freehold investment properties

14. Freehold investment properties
Consolidated and the Society - at valuation At 1 January 2023 Revaluation in the year At 31 December 2023 The valuation consists of: Freehold property - Sublet portion of Seafarer House, Woolston, Southampton	£000’s 457 43
	500
	500

The sublet portion of Seafarer House was valued at 31 December 2023 by the directors based on the capitalised value of rental income received with reference to commercial rental yields. 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 £531,977 (2022: £531,977).

15. Debtors

Trade debtors Amounts owed by subsidiary undertakings Other debtors, prepayments and accrued income	Consolidated 2023 2022 £000’s £000’s 7 14 - - 502 401 509 415	The Society 2023 2022 £000’s £000’s 6 9 2 51 494 391 502 451	The Society 2023 2022 £000’s £000’s 6 9 2 51 494 391 502 451
			451

16. Creditors: amounts falling due within one year

Trade creditors Bank loans Taxes and social security Pension contributions owed Other creditors and accruals Deferred income (see note below) Amounts owed to subsidiary undertakings Secured creditors	Consolidated 2023 2022 £000’s £000’s 61 84 22 21 18 26 5 8 43 78 48 17 - - 197 234 22 21	The Society 2023 2022 £000’s £000’s 33 56 22 21 17 25 5 8 31 70 13 14 31 - 152 194 22 21	The Society 2023 2022 £000’s £000’s 33 56 22 21 17 25 5 8 31 70 13 14 31 - 152 194 22 21
			194
			21

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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

16. Creditors: amounts falling due within one year (continued)
Deferred income At 1 January 2023 Released to Statement of Financial Activities Deferred in the year At 31 December 2023	Consolidated 2023 2022 £000’s £000’s 17 49 (33) (56) 65 24 49 17	The Society 2023 2022 £000’s £000’s 14 46 (14) (52) 13 20 13 14
			14

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

17. Creditors: amounts falling due after more than one year
Bank loan Secured creditors	Consolidated 2023 2022 £000’s £000’s 415 438 415 438	The Society 2023 2022 £000’s £000’s 415 438 415 438
			438

Amounts 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	Consolidated 2023 2022 £000’s £000’s 40 40 120 120 386 426 546 586 (131) (148) 415 438	The Society 2023 2022 £000’s £000’s 40 40 120 120 386 426 546 586 (131) (148) 415 438	The Society 2023 2022 £000’s £000’s 40 40 120 120 386 426 546 586 (131) (148) 415 438
			586 (148)
			438

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.

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

18. Provisions for liabilities and charges

18. Provisions for liabilities and charges
Leith Aged Mariners’ Fund At 1 January 2023 Adjustment in the year At 31 December 2023	2023 £000’s 30 (5) 25	2022 £000’s 37 (7)
		30

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 was £12 rising to £13 per week with effect from 1 July 2023. Recipients are also given an additional £13 as a Christmas bonus in December. The annual cost for 2023 is £663 per person. The number of of beneficiaries in 2023 reduced from 7 to 6 by the year end.

The estimated future payments for beneficiaries of the Leith Aged Mariners’ Fund were calculated on an actuarial basis to be approximately £25,100 at 31 December 2023, using 2020-2022 life tables for Scotland supplied by the Office of National Statistics.

19. Reserves

(a) Endowments - consolidated

Endowments Sir Gabriel Wood’s Mariners’ Home (and Court) building Included within the above are the following movements on revaluation reserves: Sir Gabriel Wood’s Mariners’ Home	*Balance* *1 January 2022* *£000’s* 63 373	*Movement in Funds* *Incoming* *Expenditure,* *resources* *gains, losses* *and transfers* *£000’s* *£000’s* - (63) - (373)	*Balance* *31 December* *2022* *£000’s* -
			-

Sir Gabriel Wood’s Mariners’ Home

Sir Gabriel Wood’s Mariners’ Home in Greenock provided 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 deemed cost of the Home itself was shown as an endowment fund. The day to day administration of the Home was carried out by the subsidiary charity whose own net liabilities are shown under restricted funds. The care home closed in February 2021 and the charity ceased the remainder of its operations when the property was sold in March 2022. Steps were being taken in 2023 to wind up the charity and therefore its activities remain classified as discontinued. This process is ongoing in 2024.

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

19. Reserves

*(b) Restricted funds - consolidated* Sailors’ Society (see note 19(e)) Capital grants and donations Donations & legacy income Sailors’ Society Scotland Capital grants and donations Programme related work donations & legacies Sir Gabriel Wood’s Mariners’ Home General funds Sailors’ Society Philippines Inc Boat project	Balance 1 January 2023 198 123 5 1 (34) 7 300	Movement in Funds Incoming Expenditure, resources gains, losses and transfers 37 (189) 878 (434) - (3) 39 (1) - (3) - (7) 954 (637)	Balance 31 December 2023 46 567 2 39 (37) -
			617

The Trustees are aware of the deficit relating to Sir Gabriel Wood’s Mariners’ Home and are seeking to reduce this by looking at other options to cover the deficit from unrestricted funds.

*Sailors’ Society (see note 19(e))* Capital grants and donations Donations & events income Legacies *Sailors’ Society Scotland* Capital grants and donations Programme related work donations *Sir Gabriel Wood’s Mariners’ Home* General funds *Sailors’ Society Philippines Inc* Boat project	*Balance* *1 January 2022* 190 251 10 5 1 (19) 7 *445*	*Movement in Funds* *Incoming* *Expenditure,* *resources* *gains, losses* *and transfers* 27 (19) 386 (514) 22 (32) - - 10 (10) 18 (33) - - *463* *(608)*	*Balance* *31 December* *2022* 198 123 - 5 1 (34) 7
			*300*

Grants

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

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

19. Reserves (continued)

*(c) Unrestricted funds - consolidated* Sailors’ Benefcial Enterprises Ltd (note 21) General reserve Designated Funds (see note 19(d)) Sailors’ Benefcial Enterprises Ltd (note 21) General reserve Designated Funds *(d) Designated funds* *Consolidated* Overseas Retirement Fund Fixed Asset Fund Society Overseas Retirement Fund Fixed Asset Fund	Balance 1 January 2023 £000’s (550) 2,669 987 3,106 *Balance* *1 January 2022* *£000’s* (577) 3,790 1,069 *4,282* Balance 1 January 2023 £000’s 48 939 987 48 932 980	Movement in Funds Incoming Expenditure Resources gains, losses and transfers £000’s £000’s 109 (63) 1,190 (1,170) - (86) 1,299 (1,319) *Movement in Funds* *Incoming* *Expenditure* *Resources* *gains, losses* *and transfers* *£000’s* *£000’s* 69 (42) 857 (1,978) - (82) *926* *(2,102)* Movement in Funds Incoming Expenditure Resources gains, losses and transfers £000’s £000’s - (48) - (38) - (86) - (48) - (34) - (82)	Balance 31 December 2023 £000’s (504) 2,689 901
			3,086
			*Balance* *31 December* *2022* *£000’s* (550) 2,669 987
			*3,106*
			Balance 31 December 2023 £000’s - 901
			901
			- 898
			898

Overseas Retirement Fund

This fund was intended to provide lump sum retirement grants to overseas staff and is based on age and length of service. Following the staff reorganisation during the year, with the reduction of headcount and the creation of new contracts of service, this fund is no longer required.

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

19. Reserves (continued)

(d) Designated funds (continued)

Fixed asset fund

The fund represents the carrying value of fixed assets held for use by the charity and excluded from free reserves.

*Consolidated* Overseas Retirement Fund Fixed Asset Fund Educational Fund *Society* Overseas Retirement Fund Fixed Asset Fund Educational Fund *(e) The Society* Restricted funds Capital grants and donations Donations & legacy income Unrestricted Funds Designated funds General funds	*Balance* *1 January* *2022* *£000’s* 48 993 28 *1,069* 48 985 28 *1,061* Balance 1 January 2023 £000’s 198 123 321 980 1,984 2,964 3,285	*Movement in Funds* *Incoming* *Expenditure* *Resources* *gains, losses* *and transfers* *£000’s* *£000’s* - - - (54) - (28) - *(82)* - - - (53) - (28) - *(81)* Movement in funds Incoming Expenditure Resources gains, losses transfers and revaluations £000’s £000’s 37 (189) 878 (434) 915 (623) - (82) 1,147 (1,035) 1,147 (1,117) 2,062 (1,740)	*Balance* *31 December* *2022* *£000’s* 48 939 -
			*987*
			48 932 -
			*980*
			Balance 31 December 2023 £000’s 46 567
			613
			898 2,096
			2,994
			3,607

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

19. Reserves (continued)

(e) The Society

*Restricted funds details* Capital grants - Seafarers’ retirement facility Capital grants and donations - Chaplains’ and programme related vehicles Capital grants and donations - App developments and other programme IT Wellness Programme Cadet activities Crisis response network Seafarers’ welfare Programme work in India Seafarer communities Programme work in Scotland Ukraine appeal Online support Capacity building Medical care - Indonesia Medical care - India	Balance 1 January 2023 £000’s 149 11 38 - - 45 16 2 3 - 11 10 - 10 26 321	Movement in funds Incoming Expenditure Resources gains, losses transfers and revaluations £000’s £000’s - (149) - (10) 37 (30) 84 (84) 104 (64) 173 (188) 8 (24) - (2) - (3) 402 (2) 8 (19) 34 (35) 65 (13) - - - - 915 (623)	Balance 31 December 2023 £000’s - 1 45 - 40 30 - - - 400 - 9 52 10 26
			613

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

19. Reserves (continued)

(e) The Society

*Endowment funds* Sir Gabriel Wood’s Mariners’ Home *Restricted funds* Capital grants and donations Donations & events income Legacies *Unrestricted Funds - General reserve* Designated funds General funds Included within the above are the following movements on revaluation reserves: Sir Gabriel Wood’s Mariners’ Home *Restricted funds details* Capital grants - Seafarers’ retirement facility Capital grants and donations - Chaplains’ and programme related vehicles Capital grants and donations - App developments and other programme IT Programme IT management Wellness Programme Cadet conferences Crisis response network Chaplains’ ministry costs Unspent legacy - Northern Ireland Seafarers’ welfare Programme work in India Seafarer communities Ukraine appeal Programme work in Scotland Online support COVID kits - supply and distribution Medical care - Indonesia Medical care - India	*Balance* *1 January* *2022* *£000’s* 71 190 251 10 *451* 1,061 2,988 *4,049* *4,571* 632 157 18 15 - - - 106 6 10 7 7 5 - - - 83 11 26 *451*	*Movement in funds* *Incoming* *Expenditure* *Resources* *gains, losses* *transfers and* *revaluations* *£000’s* *£000’s* - *(71)* 27 (19) 386 (514) 22 (32) *435* *(565)* - (81) 802 (1,806) *802* *(1,887)* *1,237* *(2,523)* - (632) - (8) - (7) 27 (4) 10 (10) 15 (15) 11 (11) 175 (236) 22 (28) - (10) 30 (21) 8 (13) 1 (3) 121 (110) 5 (5) 10 - - (83) - (1) - - *435* *(565)*	*Balance* *31 December* *2022* *£000’s* -
			198 123 -
			*321*
			*980* *1,984*
			*2,964*
			*3,285*
			-
			149 11 38 - - - 45 - - 16 2 3 11 - 10 - 10 26
			*321*

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

20. Analysis of consolidated net assets between funds

Fund balances at 31 December 2023 are represented by: Group Tangible fxed assets Intangible fxed assets Investment properties Investments Current assets Current liabilities Long term liabilities Total net assets at 31 December 2023 Society Tangible fxed assets Intangible fxed assets Investment properties Investments Investment in subsidiaries Current assets Current liabilities Long term liabilities Total net assets at 31 December 2023	Unrestricted Funds £000’s 398 3 500 2,499 291 (165) (440) 3,086 395 3 500 2,364 5 294 (152) (415) 2,994	Restricted Funds £000’s 10 38 - - 601 (32) - 617 8 38 - - - 567 - - 613	Total Funds £000’s 408 41 500 2,499 892 (197) (440)
			3,703
			403 41 500 2,364 5 861 (152) (415)
			3,607

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

20. Analysis of consolidated net assets between funds (continued)

Fund balances at 31 December 2022 are represented by: *Group* Tangible fxed assets Intangible fxed assets Investment properties Investments Current assets Current liabilities Long term liabilities *Total net assets at 31 December 2022* *Society* Tangible fxed assets Intangible fxed assets Investment properties Investments Investment in subsidiaries Current assets Current liabilities Long term liabilities *Total net assets at 31 December 2022*	*Unrestricted* *Funds* *£000’s* 434 48 457 1,853 983 (201) (468) *3,106* 427 48 457 1,645 5 1,014 (194) (438) *2,964*	*Restricted* *Funds* *£000’s* 179 24 - - 130 (33) - *300* 174 24 - - - 123 - - *321*	*Total* *Funds* *£000’s* 613 72 457 1,853 1,113 (234) (468)
			*3,406*
			601 72 457 1,645 5 1,137 (194) (438)
			*3,285*

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

21. 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. Certain trustees and staff of the Society are directors.

(2) Sir Gabriel Wood’s Mariners’ Home and Court is a registered charity in Scotland (no. SC003763). Certain Society trustees and the Chief Executive Officer are trustees of the charity.

It operated a residential care home and independent living facility in Greenock, Scotland for retired seafarers, those who worked in the maritime industry as well as those who worked at sea in the Merchant Navy, Royal Navy, Royal Marines or WRNS. The care home closed in February 2021 and the independent living facility operation ceased when the entire site was sold in March 2022. The registered office is Seafarer House, 74 St Annes Road, Southampton SO19 9FF. The charity is currently dormant, awaiting a formal winding up process.

(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 79 Rosemount Viaduct, Aberdeen, AB25 1NS. Its trustees are also trustees of the Society.

(4) Sailors’ Society Philippines Incorporated is a company limited by guarantee, registered in the Philippines, number CN201628509. The charity carries out welfare work and educational assistance with seafarers and their families through chaplaincy and community outreach in the ports and seafarer communities in the Philippines. The registered office is Room 204B, 18 Cherry Court Building, General Maxilom Avenue, Brangay Zapatera, Cebu City, Cebu, Philippines. The Society exercises its control through the company’s Board of Trustees, which contains Society employees and, as its main funder, controls the activities of the charity.

(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. Trustees and staff of the Society are directors.

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 2023 and 31 December 2023 Provision for impairment At 1 January 2023 Provision in year At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022	£000’s 21
	16 -
	16
	5
	5

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

21. Subsidiary undertakings (continued)

(c) Financial details

Sailors’ Society funding Commercial income Residential home fat rental income Investment and other income Charitable expenditure Commercial costs Interest to parent charity Net (defcit)/surplus The aggregate of the assets, liabilities and funds was: Assets Liabilities Funds Donations & grants Sailors’ Society funding Commercial/retail/charitable trading income Investment income Charitable expenditure Cost of raising funds Investment gains/(losses) Net (defcit)/surplus Assets Liabilities Funds	Sir Gabriel Wood’s Mariners’ Home 2023 2022 £000’s £000’s - - - - - 18 - 1 - 19 (3) (33) - - (3) (33) (3) (14) - - (3) (14) 2 5 (39) (39) (37) (34) Sailors’ Society Scotland 2023 2022 £000’s £000’s 39 10 31 75 63 59 8 9 141 153 (117) (143) (55) (53) (172) (196) 1 (24) (30) (67) 183 229 (30) (46) 153 183	Sailors’ Benefcial Enterprises Ltd 2023 2022 £000’s £000’s - - 109 69 - - - - 109 69 - - (31) (23) (31) (23) 78 46 (32) (19) 46 27 16 9 (517) (556) (501) (547) Sailors’ Society Philippines 2023 2022 £000’s £000’s - - 66 147 6 6 - - 72 153 (79) (149) - - (79) (149) - - (7) 4 3 10 - - 3 10	Sailors’ Benefcial Enterprises Ltd 2023 2022 £000’s £000’s - - 109 69 - - - - 109 69 - - (31) (23) (31) (23) 78 46 (32) (19) 46 27 16 9 (517) (556) (501) (547) Sailors’ Society Philippines 2023 2022 £000’s £000’s - - 66 147 6 6 - - 72 153 (79) (149) - - (79) (149) - - (7) 4 3 10 - - 3 10
			153
			(149) -
			(149)
			-
			4
			10 -
			10

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

21. Subsidiary undertakings (continued)

(c) Financial details

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

	Sir Gabriel Wood’s	Sir Gabriel Wood’s		Sailors’	Benefcial	Sailors’	Society	Sailors’	Society
	Mariners’ Home			Enterprises Ltd		Scotland		Philippines
	2023	2022		2023	2022	2023	2022	2023	2022
	£000’s	£000’s		£000’s	£000’s	£000’s	£000’s	£000’s	£000’s
Management charges made by Society		-	-	26	19	28	38	-	-
Grant funding from Society		-	-	-	-	31	75	66	147
Loan interest due to the Society		-	-	32	19	-	-	-	-
Balance due to/(from)
Society at 31 December		8	6	477	548	(31)	9	-	-
Bad debt provision made within	(8)		-	(475)	(513)	-	-	-	-
Society’s fnancial statements

22. 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 2023 2022 2023 2022 £000’s £000’s £000’s £000’s 22 48 2 6 16 110 3 2 - 1 - - 38 159 5 8 The Society Land and Buildings Other 2023 2022 2023 2022 £000’s £000’s £000’s £000’s 4 30 2 6 - 76 3 2 - 1 - - 4 107 5 8	Consolidated Land and Buildings Other 2023 2022 2023 2022 £000’s £000’s £000’s £000’s 22 48 2 6 16 110 3 2 - 1 - - 38 159 5 8 The Society Land and Buildings Other 2023 2022 2023 2022 £000’s £000’s £000’s £000’s 4 30 2 6 - 76 3 2 - 1 - - 4 107 5 8
		8

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

22. Financial commitments - continued

a) Operating leases - continued

The Society has entered into operating leases with tenants renting its freehold property. The following rental

income payments are due under the formal leases up to the break date or end of lease date, whichever is sooner:-

22. Financial commitments - continued *a) Operating leases - continued* The Society has entered into operating leases with tenants renting its freehold property. The following rental income payments are due under the formal leases up to the break date or end of lease date, whichever is sooner:-
Within one year Between two and fve years	Consolidated and the Society 2023 2022 £000’s £000’s 50 51 29 30 79 81
		81

23. Associate entities

The Society had three associate entities for part of 2022. Details are as follows:-

Name	Registered charity no. (UK)	Country of registration	Society relationship
Port of Bristol Seafarers’ Centre	286078	England	Joint Trustee
Felixstowe & Haven Ports Seafarers’ Service	272077	England	Joint Trustee
Humber Seafarers’ Service Ltd	1159953	England	Joint Trustee

The Society had in excess of 20% voting rights in respect of each of the above three charities and this came within the definition of an associate entity.

The business undertakings of all three organisations were transferred to QVSR Seafarers Centres (QVSRSC) on

30 June 2022. Port of Bristol and Felxistowe charities were dissolved in July 2023, Humber was dissolved as a limited company in December 2023 and as a registered charity in April 2024.

The last published financial details of these associates are:-

The last published fnancial details of these associates are:-
	Humber		Felixstowe	Port of Bristol
Last accounts date	31 March		31 March	31 March
	2022*		2022	2022
	£000’s		£000’s	£000’s
Net surplus/(defcit) in £000’s		(33)	62	(20)
Net assets in £000’s		135	532	198
Society share of net assets		45	177	66

adjusted to include trading subsidiary results

In terms of accounting, a share of the associate’s financial results should be included in the Society’s group SOFA and balance sheet. However sufficiently accurate financial data has not been available and the three entities

prepared annual accounts to 31 March rather than 31 December. Those accounts were independently examined, not audited. For these reasons, historically, the trustees have decided to disclose the financial results of the associates by way of note only. The transfer of operations to QVSRSC in June 2022 means this issue is not relevant for 2023 group financial statements.

SAILORS’ SOCIETY

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

24. Transactions involving directors and senior management

Directors expenses

The Directors do not receive any remuneration. Amounts relating to hospitality claimed by one director totalled £700 (2022: two directors for travel and subsistence - £496).

International Christian Maritime Association (“ICMA”)

During 2023 the Society paid a subscription to ICMA of £7,500 (2022: £7,500), a charity in which Sara Baade, Chief Executive of Sailors’ Society, was a trustee. At the balance sheet date ICMA was owed £Nil (2022: £Nil).

25. Unrecorded legacies

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

Pecuniary legacies Residual legacies Legacies subject to a life-tenant interest	2023 £000’s 5 319 3 327	2022 £000’s 1 7 3
		11

26. Contingent liabilities

Liability arising out of Sir Gabriel Wood’s Mariners’ Home

The trustees are aware of an accident at the Home in 2018 which could possibly result in a fine. Working practices were modified at the time to prevent a reoccurrence. The potential size of any fine and whether a prosecution will actually be pursued cannot be assessed as there is insufficient information available to confirm this.

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

27. Comparative data

2022 Consolidated 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 and commercial Investment income Other COVID-19 related governmental income Miscellaneous Total Expenditure on: Raising funds Charitable activities Total Net expenditure before investment losses Losses on investment assets Net expenditure Transfers between funds Net movement in funds Fund balances brought forward Fund balances carried forward	Unrestricted Funds £000’s 231 309 540 27 13 - 40 76 131 207 135 - 4 926 481 1,363 1,844 (918) (284) (1,202) 26 (1,176) 4,282 3,106	Restricted Funds (Continuing) £000’s 422 22 444 - - - - - - - - - - 444 - 548 548 (104) - (104) (26) (130) 464 334	Restricted Funds (Discontinuing) £000’s - - - - - 18 18 - - - - 1 - 19 - 26 26 (7) - (7) (8) (15) (19) (34)	Endowment Funds £000’s - - - - - - - - - - - - - - - 71 71 (71) - (71) 8 (63) 63 -	Total £000’s 653 331
					984
					27 13 18
					58
					76 131
					207
					135
					1 4
					1,389
					481 2,008
					2,489
					(1,100) (284)
					(1,384) -
					(1,384) 4,790
					3,406

SAILORS’ SOCIETY

Operations Committee

ADMINISTRATIVE DETAILS, TRUSTEES AND ADVISORS

Patron

His Majesty King Charles III from 3 May 2024

Vice presidents

Peter Goldberg (Joint Chair)

Catharine Bacon (Joint Chair) Joshua Hutchinson

Kay Penney Peter Swift Michele White (from 12 January 2023)

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

Remuneration Committee

Kay Penney (Chair) Joshua Hutchinson (Vice Chair)

Catharine Bacon Peter Goldberg Peter Swift

Alastair Fischbacher

Captain Reg Kelso MBE

Ross Sinclair

Sailors’ Society Trustee Board (and serving directors)

Peter Swift Chair Joshua Hutchinson Vice Chair Catharine Bacon Peter Goldberg Jonathan Holloway appointed 15 May 2023 Tony Jones appointed 11 December 2023 Kay Penney Michele White

The above persons served as Trustees and Directors of the Sailors’ Society during 2023.

COMMITTEE MEMBERSHIP DURING 2023

Finance and General Purposes Committee

Joshua Hutchinson (Chair)

Peter Goldberg Jonathan Holloway (from 19 October 2023)

Peter Swift Michele White

SUBSIDIARY ENTITIES

Sailors’ Society Scotland Trustees

Joshua Hutchinson (Chair)

Peter Swift Michele White

Sailors’ Beneficial Enterprises Ltd directors

Peter Goldberg (Chair) Jonathan Holloway (appointed 2 November 2023) Joshua Hutchinson Andrew Pitcher (resigned 2 November 2023)

Sailors’ Society Philippines Inc Trustees

Gavin Lim (Chair)

Jasper Del Rosario Maria Rosaroso (resigned 31 August 2023) Nicodemus Tuban

Sailors’ Society USA directors and officers (dormant during 2023) Peter Swift (President)

Sara Baade (Vice President) Andrew Pitcher (Treasurer/Secretary)

Sir Gabriel Wood’s Mariners’ Home Trustees

Governance Committee

Peter Swift (Chair) (from 30 January 2023)

Kay Penney (Vice Chair) (from 30 January 2023) Joshua Hutchinson (from 30 January 2023) Michele White (from 30 January 2023)

Sailors’ Society (Corporate Trustee) Represented by:Joshua Hutchinson (Chair) Sara Baade Peter Swift

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS 2023

MANAGEMENT AND ADMINISTRATION

Registered Office of Sailors’ Society and its principal operational address

Seafarer House, 74 St Annes Road, Woolston, Southampton, Hampshire, 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 Andrew Pitcher FCCA Director of Finance Melanie Warman BA (Hons) NCE Director of Media and Advocacy

Auditors

Azets Audit Services, Athenia House, 10-14 Andover Road, Winchester, SO23 7BS

Principal Bankers

National Westminster Bank Plc, 68 Above Bar Street, Southampton, SO14 7DS

Bank of Scotland, PO Box 17235, Edinburgh, EH11 1YH

Investment Managers

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

Cazenove Capital Management, 1 London Wall Place, London, EC2Y 5AU

Blackrock Fund Managers Limited, PO Box 545, Darlington, DL1 9TQ

M&G Investments, 10 Fenchurch Avenue, London, EC3M 5AG

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

Sailors’ Society Seafarer House, 74 St Annes Road Southampton, Hampshire SO19 9FF, UK

+44 (0)23 8051 5950 sailors-society.org

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

Contents

MyWellness

OUR YEAR

Our Vision

Our Mission

WELLNESS AT SEA

Shipwreck – a case study

Detained – a case study

GRANTS – EDUCATION AND THE RELIEF OF POVERTY AND DISTRESS

PROMOTION OF OUR CHARITABLE PURPOSE

CHRISTMAS BLESSINGS

INTERNATIONAL CHRISTIAN MARITIME ASSOCIATION

FUTURE PLANS

OUR FUNDERS AND SUPPORTERS

IN LOVING MEMORY

STRATEGIC REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

Sailors’ Society Scotland

Sailors’ Beneficial Enterprises Ltd

Sir Gabriel Wood’s Mariners’ Home

Sailors’ Society Philippines Inc

Sailors’ Society USA

Governance and management

Board recruitment and development

Staff pay policy

OBJECTIVES AND ACTIVITIES

PUBLIC BENEFIT

Christianity

The advancement of education

The relief of poverty and distress

FINANCIAL REVIEW

Donations and grants

Overview

Income

REVIEW OF THE LEVEL OF FINANCIAL RESERVES

Our Reserves Policy

Reviewing the Reserves Policy

Level of reserves held

INVESTMENTS REVIEW

PRINCIPAL RISKS AND UNCERTAINTIES

VOLUNTEERS

FUNDRAISING PRACTICES

AUDITORS

STATEMENT OF DISCLOSURE BY TRUSTEES TO THE SOCIETY’S AUDITOR

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

OPINION

OTHER INFORMATION

BASIS FOR OPINION

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

CONCLUSIONS RELATING TO GOING CONCERN

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

RESPONSIBILITIES OF TRUSTEES

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

USE OF OUR REPORT

Jon Noble (Senior Statutory Auditor) for and on behalf of Azets Audit Services

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023

CONSOLIDATED AND SOCIETY BALANCE SHEETS AT 31 DECEMBER 2023

CONSOLIDATED AND SOCIETY BALANCE SHEETS AT 31 DECEMBER 2023

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. Accounting policies

a) Basis of preparation

b) Group financial statements

f) Resources expended

c) Company status

d) Fund accounting

e) Incoming resources

g) Tangible fixed assets and depreciation Tangible fixed assets costing more than £250 are capitalised.

h) Intangible fixed assets and amortisation

i) Fixed asset investments & investment management fees

j) Stock

k) Pensions

l) Foreign currency translation

m) Operating leases

n) Preparation of the financial statements on a going concern basis

o) Corporate taxation

p) Judgements in applying accounting policies and key sources of