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2021-03-31-accounts

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Jubilee Sailing Trust Annual Report

For the year ending 31[st] March 2021 Registered charity #277810

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Contents

Contents
Message from the Chair 2
Message from the Chief Executive 35
Highs and lows 6
Highlights and plans for the future 8
Ship operations 10
Special Survey 12
Customer Services 14
Partnerships 16
Fundraising 20
Branches and Volunteers 24
Listening, learning, being seen and heard 25
Our team 26
An extraordinary year 28
Captain Simon Catterson 28
IT 29
Financial review and governance 3642
Financial Statements 44

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Message from the Chair

This has been my first year as Chair of the JST. It would be a classic understatement to describe the year as “challenging” and no-one could have foreseen the challenges we would face. You will see this recorded in the facts and figures of this Annual Report.

What has been outstanding, however, is how the crew, the staff, the supporters, the volunteers and the trustees have all risen to that challenge so magnificently and with such determination. The result is that we have survived and in fact are now better placed to deliver our Mission in the coming year. Tangible proof, indeed, of the indomitable spirit of the JST.

On behalf of the Trustees we present this report and place on record our heartfelt thanks to everyone involved in living the values of the JST and keeping its mission as relevant and as purposeful as ever. We can look forward with confidence to the year ahead.

Charles Humpleby

Chairman of Trustees

Message from the Chief Executive

It is my pleasure to introduce our Annual Report for 2020 – 2021 in what has been my first full year as CEO of the Jubilee Trust. Thank you for taking an interest in our work and for your continued support especially through this year which we know has been difficult for so many of you.

There is nothing more frustrating for our committed crew, for our fundraisers and for our volunteers than to find the JST unable to undertake our voyage programme which would have given us that opportunity to fulfil our mission and continue to promote our core beliefs. As I write the prospects for our coming year look so much more positive and I know that we all will celebrate loud and long when we are once more able to set out to sea looking for challenge, excitement, enjoyment and adventure and most of all working together as a team to stretch our limits and exceed our ambitions.

So much has been achieved this year and it is a tribute to our crew that we were able to embark on an exciting new leadership at sea challenge with the Royal Navy. It was the only section of our voyage programme that we were able to complete but it has opened up new opportunities and extended our reach. I know you will enjoy reading of this development in the enclosed report.

The year gave us the opportunity to complete an extensive refit of Tenacious which is also described in the report. Again it was our crew and a small team of specialist volunteers who worked so tirelessly. This was indeed the JST at its best, resilient certainly but also optimistic with a focus firmly on ensuring the future of Tenacious

The challenge of fundraising has been considerable and doubtless will remain so in the ensuing year. It has been heartening, therefore, to see the considerable work undertaken by the team in planning for a more extensive, more professional and thoroughly modern fund-raising team who are looking to work with the Branches and our Volunteers to secure a more consistent income stream. Equally important, and as you will find recorded here, the fundraising team have improved accessibility for people who wish to sail with us and overhauled our funding support to ensure that we reach far more people. We want to raise money to ensure that more people than ever can feel able to sail with us and become part of that inclusive JST community.

I am so grateful to my leadership team, crew, staff, volunteers, trustees and all donors, supporters who have ensured that we have not only survived this most challenging of years but have actually been able to put ourselves in a stronger position to increase the scope of what we do, to reach more people, and to finally set sail, four-square to the winds and making for new horizons.

Patrick Fleming

Chief Executive

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Mission, vision and objectives

Who we are

Our vision

Our vision is of an inclusive world where we can all contribute and feel valued.

We are the Jubilee Sailing Trust, a charity that changes lives through adventure and exploration onboard our tall ship, S.V. Tenacious. Our voyages are for people of all ages, backgrounds and abilities, giving everyone the opportunity to explore their potential through inclusive adventures at sea. Tenacious is the only sea-going tall ship in the world designed, built and sailed by a mixed-ability crew.

Our mission

We have a unique mission, to give people of mixed abilities and circumstances the freedom to explore their ability, potential and place in the world through inclusive adventures at sea.

Our core beliefs

Freedom

Exploration

We believe that people gain a true sense of self-worth, capability and potential when they are released from feelings of being restricted or trapped.

We believe that exploring can help us see potential, not limitations and give us a fresh perspective on our place in the world.

Tenacity

Responsibility

We believe in the power of a determined and courageous attitude to overcome anything.

We believe that to progress whilst protecting ourselves and our environment, we must take risks but never be reckless.

Community

We believe in the power of a diverse, accepting and respectful community that safely nurtures and helps each other grow.

JST’s strategic pillars

We are a community that brings together ship and shore teams, permanent, volunteer and voyage crew, charities and corporate organisations, donors, suppliers and people from so many different backgrounds and life-experiences to share adventures that enrich all of our lives. To achieve our mission is a big undertaking: our seven JST strategic pillars, as this Annual Report shows, provide us with the structure to support everything we do.

Ship operations Keeping the ship in brilliant condition, and supporting our permanent crew Branches and volunteers Drawing on the experience and commitment of our supporters

Voyages

Organising our voyages to ensure the safety, comfort and positive experience for all

Fundraising Raising funds to ensure we can fulfil our mission

Partnerships Working with others to extend our reach and deepen our impact

People

Supporting our paid and volunteer ship and shore teams

Ensuring people know what we do and why we do it

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Highs and lows

Branch network reconnected and recruiting for new members

Throughout this review you will read an account of the Jubilee Sailing Trust through this exceptional year.

We put on record here a few of the ways in which Covid-19 impacted on the JST during the period April 2020 – March 2021. It is a stark reminder of the very recent past and the impact it has had on so many of our supporters, as well as our JST team. But, as you read on, you will see that it’s a story that shows how, with the tremendous support of our onshore and offshore teams, volunteers, Trustees, and our donors, we have been able to make considerable progress with some great highlights to take us into the future with hope and opportunity.

Special Survey successfully completed for Tenacious

Successful migration to working from home

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Permanent closure of
our Woolston office
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Sale of Lord Nelson delayed by pandemic

Income for year down £1,018,235 from 2019 – 2020

All permanent crew on furlough during first lockdown

Fundraising income reduced by £975,045 from previous year

Return of permanent crew and successful relaunch of Tenacious

Partnership voyage with 136 Royal Navy recruits

New partnerships developed for 2021 onwards

Significant resilience funding received, particularly from ASTO, as well as a generous bequest

Costs controlled during year. Down £1,240,921 from 2019 - 2020

Strong bookings for 2021 – 2022 voyage programme: 100% occupancy anticipated

Launch of Watchkeepers onshore supporter community regular donor scheme

First cancellation of the Pumpkin Festival in 21 years

Cancellation of a high-profile Monaco event, and the sponsored Mediterranean voyage programme (£1m lost income)

All public voyages cancelled. Voyage and partnership income reduced by £319,430 for the year

All other partnership voyages cancelled or postponed

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Highlights and plans for the future

SECTION 1

Highlights and plans for the future

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Highlights and plans for the future

Ship operations

With virtually no voyages for the entire year it may be thought that ship operations would have been quiet - the facts are very different. It was a year where we were exceptionally busy with increased routine maintenance, risk assessments, planning and then cancelling voyage programmes, organising a major regulatory survey and dry docking for Tenacious to ensure her ongoing sea-worthiness, working with the Masters to continue to care for the permanent crew during the period of furlough, and revising medical and safety policies and regulations, both onboard the ship and for those wishing to sail with us. It has been a year of tremendous activity, often in challenging situations, and considerable achievement in the face of adversity.

The first challenge for the year was ensuring Tenacious returned safely from her Caribbean voyage programme, which needed to be abandoned midway due to the pandemic. Organising for our permanent and voyage crew to return was a logistical task in itself, but bringing Tenacious back safely to the UK and ensuring her safe berth was a major undertaking.

of reducing the amount of volunteer help due to the space restrictions - despite needing to do so much. Supplies were often delayed due to Covid-19, which was frustrating for all concerned but unavoidable. Ultimately though, and with a few delays, everything was achieved and we can take pride in our entire team (crew, volunteers and the ship operations department) for achieving the refit, completing the major survey, and bringing Tenacious well and truly up to date, fit for purpose and ready for the second quarter of 2021.

A long term berth was secured in Barry, but with the initial loss in income the difficult decision to utilise the furlough scheme for the crew was made. Before this could happen the ship needed to be squared away so that machinery and equipment would remain in a condition that would allow the ship to come to life again after a period with no crew onboard.

The third great challenge of the year, early in January 2021, was to prepare Tenacious for her programme with the Royal Navy (RN). Covid-19 regulations needed to be fully understood and applied, which meant reworking the space on the ship, putting in place social distancing policies, and ensuring the permanent crew and RN recruits were fully tested and safe to travel and work alongside each other. Working with such uncertainty, being unsure as to whether the programme could even proceed until the last minute, and with such complex requirements was unchartered waters for us, but we managed it. By all accounts, and notably from the RN recruits themselves, the programme was an outstanding success.

Our permanent crew are passionate about delivering our mission and sailing alongside our volunteers and voyage crew. Like many of us, to find themselves suddenly without this activity and engagement was difficult. As an organisation the welfare of all our staff is a key priority, and regular communication was vital throughout the April – August period, when all permanent crew were on furlough.

Returning the ship to operational levels in late August went smoothly due to the previous lay up process, ensuring Tenacious sailed safely from Barry to Sharpness ready for the survey and dry docking.

Alongside these three great challenges to the year was the very necessary routine work to complete. Keeping Tenacious secure and sound during her period in Barry, revising our Safety Management System, maintaining relationships with suppliers, and contact with volunteers so keen to be involved and to help but sadly unable to do so, kept us busy. We also needed to keep a watchful eye on Lord Nelson in Bristol, since there was risk of significant deterioration to her during such a prolonged period when routine work could not be undertaken.

The second major challenge of the year, therefore, was the survey and dry dock itself. There was a great deal to do, as the special section within this report shows, to meet all the safety requirements and to bring Tenacious up to date. That in itself was a tremendous project, but to carry out such work under very strict Covid-19 restrictions made it particularly arduous. There was the issue of maintaining social distancing whilst working on the ship, of travelling to and from Sharpness, and

Looking ahead

Inevitably we face the coming year with uncertainty. It is likely • that we shall need to live with the effects of the pandemic and its variants for some years to come. All the more reason for ensuring that we are both resilient and flexible. The chal- • lenges we have met and the work we have completed this year have placed us in a good position to do so.

Continuing to develop our permanent and volunteer crew for the new challenges ahead in the aftermath of Covid-19.

For the year ahead our plans include: 

  - Preparing Tenacious and her crew for new partnership voyages planned for 2022.

Lord Nelson Operating Costs Tenacious Operating Costs 2020 – 2021 £ 132,343 2020 – 2021 £1,826,786 2019 – 2020 £1,009,215 2019 – 2020 £1,930,494 Tenacious Special Survey 2020 – 2021 *excluding depreciation Cost £ 545,241 (included in operating cost)

It is immediately apparent how the decommissioning of Lord Nelson has led to a significant reduction in Operating Costs of nearly £1m (£876,872). Those savings include all running costs, maintenance, and staff reductions.

Nevertheless, ship operations is at the core of all that we do and remains our most significant cost as a charity. It remains a challenge to raise sufficient funds through voyage fees and donations to maintain Tenacious as our fully operational ship and to ensure that Lord Nelson does not deteriorate following its decommissioning.

Managing our permanent crew and volunteer crew. This includes medical screening and safeguarding to ensure everyone is fit to sail, and providing relevant seafarer training.

Our ship operations team is responsible for ensuring • that everyone who comes on board has the experience of a lifetime, responding to their needs, whilst being safe and secure on a well-maintained, fit for purpose tall ship. Normally this includes: •

Running the safety management system in compliance with the International Safety Management Code.

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Highlights and plans for the future

Special Survey

Our ship operations team, working with the Masters, permanent crew and volunteers, undertook a major refit of Tenacious during the year as part of the £500k plus Special Survey. Here is an insider perspective from Luke Galuszewski, Technical Manager, which provides in both pictures and words a fascinating insight into what was involved.

During September to November 2020 Tenacious underwent her 4th Special Survey. Special Surveys are undertaken every five years to meet maritime standards.

With the Coronavirus pandemic embracing the UK and the rest of the world, there was definitely a level of uncertainty as to what we could achieve due to the scaled back work of suppliers and lengthy stock delays. The shipyard’s workforce was not at full capacity due to virus concerns from the workers. Our usual, heavily relied upon, volunteer network was severely restricted by social distancing restrictions on board, which also resulted in delays to the work scope and completion timings. Fortunately Sharpness Shipyard and the surrounding area of Berkeley was well placed, and during the majority of the project there were only very minor reports of the virus in the wider area.

What we managed to achieve was by no means all that we had hoped to complete, but we were successful in a lot of areas which will help set the ship up for the future. Some of our successes are below.

It has been abundantly clear that, without the ongoing support and time our volunteers give to the Trust, the maintenance of the ship would not be at the level it is today. Even faced with the difficulties imposed by Covid-19 their contribution was invaluable.

Looking to future needs for Tenacious

After the 2020 dry docking of Tenacious, we are in a good grounding position to continue pushing ahead to preserve and maintain the ship for the future. Some of the bigger items that will need to be completed include:

• Upgrading the cabins for the Permanent and Volunteer Crew.

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Highlights and plans for the future

Customer Services

So much of this year was spent waiting for better news. With public voyages cancelled throughout the period, it was a question of contacting everyone with the bad news and hoping for their understanding. We had a magnificent response with people being so patient and supportive. Many held their bookings open, ready for the next available voyage opportunity, and we thank them and value their support for the Jubilee Sailing Trust.

With almost no public voyage income at all it is not a year any of us would wish to repeat, with income reduced by £319k compared to the previous year, but it did show the best side of the JST during difficult times. Thankfully we were able to plan and run an exciting new partnership with the Royal Navy, following stringent Covid-19 rules, in February and early March 2021 which contributed significantly to our income and gave Tenacious and her Master and crew at least a glimpse of better times to come.

We have already been able to plan some voyages for 2021 – 2022 and those we have advertised became fully booked very quickly, showing a strong demand for so many to get back onboard. We anticipate 100% occupancy on most voyages given the pent-up demand and the sheer determination of so many people to sail with us.

Booking is now much simpler, with on-line registration and payment capability, although of course we remain at the end of a phone to answer any enquiries or assist people through the booking process if needed.

Certainly we know that the future may still face set-backs, but we have spent the year working with our Medical Advisory Group and with our crew to make the ship as safe as possible for future voyages. Greater space on board through reduced occupancy levels, new cleaning and hygiene routines, a new medical screening process, testing before, during and after voyages, have helped to do all we can to provide a safe environment for everyone on board.

We all hope for a packed voyage schedule for the year to come, hopefully with few major changes or disruption. Whatever happens, we know there is that spirit in the JST and all its supporters to rise to every eventuality and come out smiling in the end.

Some of our destinations have changed. For the time being we are staying closer to home, which makes it easier and safer to travel to and from the ship, but we shall still ensure that everyone has that unique life-changing experience on board.

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we are staying closer to home, which makes it easier and saf-
er to travel to and from the ship, but we shall still ensure that Income from voyages
everyone has that unique life-changing experience on board.
2020 – 2021 £668,233
2019 – 2020 £987,663
Year on year decline
in revenue of £319,430
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Highlights and plans for the future

Partnerships

Partnerships have always been important to the Jubilee Sailing Trust. Through our partners we have been able to strengthen our reach with charities, local communities, armed forces, businesses, and with the world of education. The benefits are enormous, from fresh perspectives on how we operate, how to work more collaboratively, and ways to reach more people in more settings to ensure they can benefit from our mission.

This year our partners have continued that support, even when faced with their own challenges navigating through the pandemic. We are enormously grateful to all of them.

Partnership voyages in particular have increased over the last decade with groups as diverse as banks, national rugby squads, many charities for both non-disabled and disabled groups, the armed forces, youth exploration groups, and legal firms. We have taken on board valuable know-how and experience from each of these partnerships. A brief overview of just some of our work with partners this year shows that the opportunity to work together, noticeably to plan, has increased considerably and positions us strongly for the future. We see exciting times ahead.

What a Crew!

We have always known our permanent crew are intrepid, brave, passionate in what they do. But if ever there was a time when the term “above and beyond” applied it was their commitment to the Royal Navy Partnership. With Covid19 restrictions making for additional difficulties, weather conditions in February particularly arduous, and with lively but inexperienced RN recruits our permanent crew did everything they could to make the experience memorable and enjoyable. The feedback was 99% positive, with particular praise for the cheerfulness and patience of our crew and the excellence of the food! It has given them a great start to their careers and they will never forget Tenacious Who could ask for more?

ASTO (The Association of Sail Training Organisations)

ASTO (The Association of Sail Training Organisations) has been actively partnering and supporting the JST for many years. This year their support literally kept us afloat at a time when we had such an enormous gap in our funding due to lack of fundraising opportunities and cancelled voyages. They stepped in swiftly and unstintingly

VM Ware

VMware has consistently supported us over the last decade with regular voyages and fundraising events. They have joint-fundraised to enable Macclesfield ‘Wheelies Sport and Activity Club’ to send people on voyages together with their own employees, and we see them very much as part of our team. Our crew greatly look forward to them coming on board. During the pandemic year their continued support was invaluable, and we are delighted that they are continuing to support us through 2021 and into 2022. Exciting new developments to follow.

Stelios Philanthropic Foundation

We were very disappointed when last year’s major partnership with the Stelios Philanthropic Foundation was unable to fulfil its mission to provide sailing experiences around the Mediterranean and Monaco to disabled and non-disabled voyage crew. The partnership remains firmly in place, however, and we are grateful for their ongoing support. We hope during 2021 – 2022 to launch a series of voyages and events with the Stelios Philanthropic Foundation as the starting point of a long-term plan to work together.

Peninsula

Peninsula is another historic partnership which has stood the test of time, with their generous agreement to provide us with free fuel. During the last year this partnership has further developed as we are helping their employees to establish a new charitable foundation. It is great to work together and to share ideas and experience.

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Highlights and plans for the future

ROYAL NAVY

Many of you will have followed the exciting new partnership with the Royal Navy whose young recruits sailed with our crew in the early part of 2021, when rough seas, stormy weather, and ongoing pandemic restrictions could not daunt the spirit of adventure.

This partnership provided young people joining the Royal Navy with a unique experience, one which develops a respect for the sea, for the ship, and most of all for each other. As well as general training in seamanship there were leadership and teamwork opportunities, and a practical and exhilarating, if slightly exhausting, course in personal resilience. You can read more on our website

https://jst.org.uk/royal-navy-revives-days-of-sail-with-training-on-tenacious/ or download a copy of Navy News, April 2021 which features our partnership. https://magazinebis. com/navy-news-april-2021.html

The Maritime Archaeology Sea Trust

The Maritime Archaeology Sea Trust and the JST are now working together to raise awareness of maritime heritage both above and below the surface of the oceans. This commitment to protecting the maritime environment resonates strongly with our aims and with so many of our volunteers.

https://jst.org.uk/working-with-the-maritime-archaeology-sea-trust-mast-28th-january/

Lifetree Global

Tenacious will be the setting for the Lifetree Ocean Regeneration Lab programme in May 2022, which will see developing world-leaders work together on the water to do the right thing for the future. The partnership focuses on the art of responsible leadership, with participants receiving practical input from a world-class team of business mentors, investors, scientists, and executive coaches. They will also undertake the invaluable practical experience of helping to crew Tenacious on two one-week voyages.

Lee Peck Media

A new PR and Marketing partnership has also been established between the JST and Lee Peck Media. This will raise our profile and ensure our voice is heard not only on our website and social media pages, but also in the local, national and international media. Raising our profile in this way increases our fundraising opportunities, but just as vitally enables far more people to learn of our mission and become involved with us.

https://jst.org.uk/jubilee-sailing-trust-outsources-pr-and-marketing-to-lee-peck-media/

The Cruising Association

Finally, we continue to develop our partnership with the Cruising Association. We already feature in their magazine, and will be included in their information packs at the Southampton Boat Show to encourage their customers to explore what JST has to offer. https://www.theca.org.uk/

Several other partners have continued to assist us directly with the maintenance of our ships. These contributed £84,000 during this year in donated goods, facilities and services. Clearly this has provided a significant saving on the costs of maintaining and running our ship. Their experience and expertise, as well as their financial support, in what are often complex requirements is invaluable, and over the years has helped us to control our costs to ensure that more of our funds are available to support those who wish to sail with us. This year we also partnered with Proteum, who provided filming and marketing services, helping to raise our profile.

Building on our tradition for creating enduring partnerships, this year has seen us able to negotiate several new relationships which we hope will stand the test of time and help us to take our work long into the future. Some of these have already begun active work with the JST, others are still at the vital planning stage.

It has been a busy year with both our existing and our new partners. Together we have not only overcome difficulties but been able to plan ahead with optimism and determination.

https://jst.org.uk/jubilee-sailing-trust-partners-with-lifetree-global-to-train-leaders-todo-the-right-thing-for-the-future-of-the-oceans/

Spyrosoft

We are delighted to have formed a partnership with one of Europe’s fastest growing technology companies, based in Ferndown, Dorset. Spyrosoft will help us leap into the digital age by working with us to develop bespoke digital services. We hope to improve the voyage experience before, during, and after voyage, making a vital link between the real and the digital world.

https://www.dorsetbiznews.co.uk/welcome-aboard-fast-growing-spyrosoft-and-the-jubilee-sailing-trust-form-new-partnership/

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Highlights and plans for the future

Fundraising

We raise funds in a variety of ways to subsidise the cost of running our tall ship. This helps us to ensure as many people as we can accommodate are able to experience our unique adventures. This has been particularly important during 2020 – 2021 since there has been no income from public voyages, and greatly reduced income from partnership voyages, due to not being able to sail for all but six weeks of the entire year. Fundraising therefore became a crucial focus for the team, however of course this too was significantly impacted by the pandemic. It has been harder to run events, branches have been unable to meet or to launch particular projects, people and businesses have been faced with their own difficulties and the uncer-

tainty has led to hesitation on the part of some to commit to major expenditure.

Despite the difficulties we have raised funds of over £1m of income. The previous year had seen an exceptional fundraising event in the Emergency Appeal which raised more than £1m - if that amount is excluded then the result year on year is very similar. A detailed breakdown is provided in the box below which also illustrates just how many strands of fund-giving there are contributing to our overall result. We can attribute this to a couple of outstanding features running throughout the year:

Our loyal supporter base has given us so much support, freely and generously, and we are hugely grateful to all of them.

This support, and the in-house knowledge and experience of our existing team, creates a solid platform from which we have been able to make significant changes in the ways we approach fundraising and involve people more in our activities. It is important to us to listen, to value the contributions people and organisations make - not just financially, but their ideas and opinions, their contacts, and the opportunities they can see. In this respect we have started to build a fundraising community which stretches deep and wide, and taps into great expertise and limitless goodwill.

Fundraising and Donations Income 2020 – 2021 £1,236,320 2019 - 2020 £2,211,365 (Including Emergency Appeal)

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SUMMARY breakdown of Fundraising Income
2021 2020
Charitable trusts,
corporate donors and
other institutions 542,504 314,728
Legacies 399,146 204,634
Fundraising events 17,032 16,908
Individuals and branches 277,638 1,675,095
Total 1,236,320 2,211,365
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Highlights and plans for the future

One major initiative this year has been to set up Watchkeepers

This new regular-giving framework will help grow the JST’s broad supporter base and make them feel more involved and part of a community in return for their regular support. It was put together with the confidential help of an external Donor Reference Group who represented a broad cross section of the JST’s existing supporters. It captures and brings together previous ‘Lifelong Friends’ and ‘Friends of the JST’, so that everyone is a Watchkeeper. People can join this community for free, or choose to make a donation at one of three levels: Starboard, Port or Bridge. Including the free level helps the fundraising and communications team to identify our most current and engaged audience who may become donors in the future. It also brings everyone together inclusively rather than excluding those who aren’t able to make a donation currently. This is important for bringing younger people into the JST fold.

available in the full Independent Auditor’s report in the final section of this Annual Review. However, we are under no illusions. We anticipate that fundraising will be increasingly difficult for the next few years and there is likely to be more competition and more call on the support of charities. In part we can rise to the challenge this brings by having a full fundraising team in place, but this is also a time when we need to cooperate more with other charities who have similar values and aims, and work together to reach people who can really benefit from what we offer.

As our website shows, Watchkeepers are encouraged not only to donate regularly but also to become part of a closed community Facebook forum where they can discuss ideas, provide feedback on our activities, take part in photography competitions and suggest new ideas. The response to date has been excellent and we shall continue to build Watchkeepers during the coming year. It matters to us to draw people into our community and they teach us so much. We also believe that fundraising should be fun, should bring meaning and purpose to donors who can truly be involved and shape the future of the JST, and to be as transparent as possible in what we need funds for and how they make a difference.

Equally important to us as raising funds is ensuring that those donations are used for their intended purpose quickly and fairly. We are often able to subsidise voyage costs for individuals and groups and have a bursary scheme already in place with funds available. Many people give specifically to fund voyages, and we have now created a monthly Bursary Committee to ensure that each month we consider applications for assistance quickly and in a transparent way. We know that running a tall ship is expensive and the full cost for each voyage is too much for some people to meet. We hope that by widening our bursary scheme to ensure it reaches more people is an important development to make our voyages more accessible to all.

A second initiative has been to start establishing an informal network of those who know the area of fundraising particularly well and whose experience means we can test out new ideas, gain feedback on our initiatives, and widen our support networks. This will help us to create a strategic development group to ensure that we continue to refresh our approach to fundraising. Developing and testing ideas through such a group allows us to step back before we start new initiatives and examine more closely what we are trying to achieve and how best to arrive at our destination. Again, we are tapping into that goodwill, expertise and support to build a diverse community of fundraising experts.

After the appointment this year of a Head of Fundraising, the focus has been on both rebuilding the fundraising team, increasing its number and the depth of experience, and developing a clear strategy for the future. A Head of Corporate and

This is not in any sense to minimise our existing approach and fundraising streams. They have held up reasonably well this year as our summary breakdown shows – with more details

Community Giving has been appointed to ensure we work effectively with partner opportunities and collaborate more consistently with them. Grants from Trusts and Foundations represent the largest part of our funding streams and so we have recruited additional resource to this, to ensure we access as many opportunities as possible. We are also bringing into the team a data and insights specialist to enable us to analyse our data, spot trends in support and more effectively target our fundraising activities.

from larger charities as a source of fundraising income. These charity-partner relationships need careful nurturing and will take time to mature, but offer more diverse and more sustainable opportunities for the JST compared to high-profile but one-off initiatives.

In addition to the above, careful thought has been given around the continual need for funding to maintain Tenacious. This rolling capital expenditure is always large and needs to be planned for and fundraised in advance. Plus there is inherent risk, as there is with any vessel, that unexpected costs may suddenly need to be met which can alter the budget plan.

Given the unpredictability of the various fundraising revenue streams there has been a clear understanding of the need to build sustainable pulse income in the main supporter base of regular givers, described as a ‘rolling programme initiative’ . This has already been implemented in part, including the launch of an up-scaled lottery, going out to the donor database to encourage more regular giving, and developing ‘welcome home’ packs to those who have recently sailed with the JST to encourage them to make a gift to help someone else to take part in what they have just completed. There are now 600 regular givers, which is an encouraging first base to reach.

For Tenacious’ 21st Birthday in September 2021, the fundraising team have been working with the ship operations team on the launch of a rolling list of items that need to be funded in the near future (6 months to 2 years) to keep Tenacious maintained, certified and able to sail. These capital items offer an opportunity to approach Trusts, Foundations, corporates, branches and individuals to support specific items and give full transparency on the costs the JST has to meet outside of those to directly deliver a voyage.

From the CEO, the senior director, and the Head of Fundraising there is a clear desire to build collaborative relationships with other charities for fundraising purposes, and indeed

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Highlights and plans for the future

Branches and Volunteers

Branches and volunteers play a crucial role for the Jubilee Sailing Trust and mean we can extend the JST community ashore, beyond our voyages. We have 21 branches throughout the UK, from Scotland to Jersey, plus branches in Ireland and the Netherlands.

Inevitably this year has been one of frustration for so many volunteers, keen to help but restricted by travel regulations, social distancing and the absence of so many opportunities to assist. The vital role volunteers play in providing additional crew for the ship was sadly not needed for most of this year, with the exception of a few volunteers assisting on the Royal Navy programme in early 2021.

Another casualty for the year was our infamous “Pumpkin Festival” fundraising event in Southampton which was cancelled for the first time in 21 years. We look forward to its glorious return in 2021.

----- Start of picture text -----
Fundraising Events:
2020 – 2021 £17,032
(2019 – 2020) £16,908
Donations from Individuals and from Branches
2020 – 2021 £277,638
(2019 – 2020) £1,675,095
including £1m
Special Appeal
----- End of picture text -----

Generally, and as for all charities, there was a significant drop in income in terms of Individual and branch donations and gifts but we saw without question from the branches is their unflinching support for the JST. So many messages of support, offers to help, notes of encouragement. Most branches have been unable to meet in person but have retained contact with members through social networks and the ubiquitous video calls which have so rapidly become part of our lives.

Some volunteers were able to help with the Special Survey of Tenacious in August and September 2020 at Sharpness. Numbers were very limited

due to social distancing rules in place, and many offers of help had to be politely turned away. So many wanted to see the ship during this period but again this was simply not possible.

Communication with branches has continued to improve, with contact between the ship, volunteers and branches even when there has been no sailing. In addition, from March 2021 branches and volunteers have been involved in the launch and support of the new Watchkeepers programme. This is far more than merely securing donations, much needed as they are, and seeks to involve volunteers, branches and donors in discussing new ideas for the Trust, gaining feedback on initiatives and stimulating debate on the future of the JST.

Our branches bring together like-minded people and create a network of support that we know so many find essential. They are an essential part of the JST family, which is why we’re keen to work more closely with our branches as we move from this extraordinary year to a new period in the life of the JST where the contribution of branches and volunteers will be critical to our success.

Listening, learning, being seen and heard

We have focused this year on these four elements of our marketing and communication approach. Effective marketing encourages people to join us in our adventures at sea, helps us in our fundraising and enables us to provide thought-leadership and advocacy on all aspects of our mission. But it is far more than advertising campaigns and digital media hits.

We have listened more attentively to the voice of our donors and volunteers through our branch network.

Being seen is a critical aspect of our marketing approach and we have been greatly assisted through our partnership with Lee Peck Media whose professionalism and networks have increased our professionalism and our market penetration. We have raised our visibility through our redesigned website this year which now includes strong video and audio content, much stronger visuals and everyday stories of those sailing with us, often for the first time. Beyond our own media resources we have also featured in a number of trade sailing and holiday journals, with free coverage of our activities. We were also featured in the Navy News (issue 801) detailing our partnership with them to deliver initial leadership training to Royal Navy recruits.

Our fundraising team have initiated new support groups to advise us on our approach, to suggest fundraising approaches and to set up our new Watchkeepers initiative involving volunteers, branches and donors sharing and discussing their ideas for our future development.

The two Masters have spent time during the year listening to the branches, re-engaging their efforts and helping the branches to expand to a lively community of 1000. Branches have had the opportunity for direct contact with the Ships.

Through our Facebook, Instagram and website pages we have encouraged lively moderated discussions on those topics which matter most to donors and volunteers and taken on-board feedback we have received. Our following has increased enormously including significantly more younger followers.

Our voice has been heard loud and clear on a variety of platforms during the year including extensive Linked-In Coverage, from our CEO Patrick Fleming, FaceBook, Instagram,Local and National Media, engagement at specific events and new partnerships with other organisations whose activities support and enhance our mission. It has been a particularly important aspect of our work to be seen and heard as thought leaders around our core beliefs:

Marketing is a two-way activity, not simply the JST pushing out its message, but also learning from others. For example during this year based on our “listen and learn” approach we

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Highlights and plans for the future

Our team

Our organisation is made up of ship and shore-based teams, as well as an incredible network of volunteers. It is paramount that we support all of our team - whether paid staff or volunteers - with professional, consistent and easily accessed information, that enables them to do their jobs effectively and to feel recognised for the contribution they make. Whilst the leadership team and managers take ultimate responsibility for this they are supported by our external HR resources: Kate Underwood HR, and PSIL (for our ship-based team).

Inevitably much of the work this year has been focused on providing advice and support to all of our team through the Covid-19 pandemic. This has included:

Covid-19 test provision was essential, especially as the crew prepared for voyages as part of the Royal Navy Programme during February and March 2021.

• Assisting in the recruitment, employment contracting, on-boarding of new members of the team including the appointment of the new Chair of the JST, three new members of the Fundraising team, and the scoping and fulfilment of a new post to the JST as Personal Assistant and Researcher to the CEO and Chair.

During the coming year we hope to be able to conduct performance and personal learning development reviews as well as monitor workplace wellbeing given the significant change in the working environment. These services shall continue to support the leadership team and managers through any emerging policies needed to tackle future pandemic concerns.

Plans are in hand for the Jubilee Sailing Trust to become involved in two local community initiatives to boost training and employment prospects. We are looking at ways to contribute to the Government-backed Kickstart scheme for 16 – 24 yr olds, as well as providing a funded Apprenticeship for a ship crew member. This is very much in line with our desire to give something back to local communities and to work with local businesses and organisations to help people return to employment.

----- Start of picture text -----
HR and Employment Law Costs
2018 – 2019 £61,054
2019 – 2020 £15,825
2020 – 2021 £ 11,480
(plus £741 Recruitment costs)
Average Number of Employees
2020 – 2021 28
(13 Admin, 15 Crew)
2019 – 2020 49
(22 Admin, 27 Crew)
Registered Volunteers 325
includes agency staff
----- End of picture text -----

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Highlights and plans for the future

An extraordinary year

Captain Simon’s reflection

There’s an old Chinese curse along the lines of ‘May you live in interesting times.’ It’s certainly been one of the more ‘interesting’ of my 20-odd years here! It started with going into cold lay-up and shutting the ship down in Barry Docks in mid-April with all the ship’s staff furloughed. In August, a team returned onboard and brought the ship back to life before entering the docking period in Sharpness. Whilst we achieved a huge amount – new main engines, generators, a shift to ECDIS navigation and much of the foremast standing rigging replaced amongst many other jobs – events conspired to ensure it wasn’t exactly a smooth process, but the ship did finally stagger out of the dock towards the end of November. After a stand-by period in Portland, things changed rapidly as we set off to Portsmouth for the Royal Navy (RN) charter just after the New Year. Some very serious, genuine, Covid-19 concerns across the permanent crew were exacerbated by continually changing goalposts around this charter but, with the ship in the Naval Base, ship’s crew and the RN team on the ground were able to meet and things became a little clearer. This essential communication continued throughout the charter, bringing steady improvements in planning and

understanding on both sides, and evolving into a pretty swish operation. The charters ran from mid-January to the end of April, they were a great success and proved very popular. In May we finally conducted the Lightship Survey and Inclining Experiment and some MCA audits; successful completion permited the ship to continue operating. After various Covid-regulation induced delays, now we’re all keen for our voyages to start and to get back to what we’re here for.

Captain Simon Catterson

IT

No aspect of the organisation has undergone as much development or increased its critical importance to the organisation more than IT. Those developments had been well in hand prior to the Covid-19 pandemic, but that event and the subsequent move of the JST to becoming a virtual organisation with no physical office space has accelerated digital deployment and brought it to centre-stage. It is now essential to all aspects of the JST both internally and externally. To a large extent, the overall dataflow, the hardware, the software, and applications are all in place within the JST to enable the virtual organisation to work well both internally and externally. There are areas where further work is required, but it is all in hand and is being appropriately managed.

speeds, to ensure that we communicate effectively wherever we are. The permanent crew need this, voyage crew need this, the Masters needs this for the safety and business critical functioning of the ship. But at a cost of $1,000 per month to provide that level of connectivity and functionality, it becomes an additional burden on our resources.

Systems and software functionality within the JST has improved and shows what could be possible if carefully thought through and ensuring input from relevant users. For example, the online shop, offering a range of JST-branded merchandising, was well set-up on the website. It is now possible for customers to make voyage payments through the shop instead of our Customer Services team needing to take card payments over the phone. This offers a swifter, more efficient and more secure service.

Our highlights box shows that we have had a busy year and IT continues to develop to meet the challenge. Our ship and shore teams are also now much more adept at using IT well, and seeing its potential. What we shall need to address is the increased financial costs in this digital age.

This shows the importance not only of having good software functionality, but also internal systems and processes in place to identify what is needed, combined with an integrative mindset to ensure everything works seamlessly together rather than in isolation.

Highlights

The fundraising team and IT department are working closely to increase its use of Salesforce as the primary customer management system. This gives the potential to hold all information in one location and to connect internal systems and processes so that they work effortlessly. This will be a great asset to the team, freeing up the time and cost of manual administration, but it does come at a financial cost itself.

Increasingly IT costs have to be factored into the running of the JST. We all tend to look for that wonderful word “free” when using technology (free wifi, free bandwidth, free software) but in fact there are always significant costs. At the same time the operational needs for the JST increase. For example, on board the ship we need increased bandwidth and

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Financial review and governance

SECTION 2

Financial review and governance

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Financial review and governance

Trustees and Governance

The Jubilee Sailing Trust was established under a trust deed dated 6 October 1978, and after subsequent amendments a consolidated deed was adopted on 19 October 2006.

The charity, through its two subsidiary charities, Jubilee Sailing Trust Ltd and Jubilee Sailing Trust (Tenacious) Ltd, owns and operates two tall ships, the Lord Nelson and Tenacious. In 2019 Lord Nelson was decommissioned leaving the Jubilee Sailing Trust with one tall ship to fulfil its mission and achieve its objectives.

Key Management and Remuneration

The key management of the Jubilee Sailing Trust is the legal responsibility of the Senior Management staff and six Trustees, chaired by Charles Humpleby.

The Trustee Team saw three other resignations during the year and the appointment of one new Trustee. Further appointments to the Trustees are planned for 2021 – 2022, mindful of the need to diversify representation on the Board.

In line with Fundraising Regulator guidelines members of staff receive a salary and travel and subsistence allowances when directly involved in work for the Trust. They do not receive any bonuses, commission or other incentives. Details of staff remuneration will be found in notes to the financial statements.

During the year the Trustees held five full Meetings of the Trustees with all meetings using video conference facilities. In addition, the Finance & Audit Committee (FACT) financial sub-committee has continued to meet each month with the CEO and Head of Finance and Governance to work through the financial implications of the Covid-19 pandemic.

Trustees are not paid and during this financial year no expenses were claimed by them.

In terms of Governance, the Trustees have continued to be in close contact with the CEO and leadership team throughout this period and have provided both advice and support.

With the retirement of our long-serving Trustee and Chair, James Crill, a recruitment process was undertaken leading to the appointment of Charles Humpleby as Chair of the Trustees on 1[st] January 2021.

Risk Assessment Work

Additionally, the Trustees noted the updating of the Ships’ Risk Register, under the direction of the Director of Operations, and commissioned a full organisational report to gain a more complete overview of all aspects of the current JST operations. That report continues to be under consideration.

During the pandemic the Trustees evaluated risk to the JST in terms of voyage safety, crew and shore team safety, and financial implications. They were actively involved in the planning and monitoring of risk measures taken when voyages did recommence in February 2021 with the Royal Navy.

Lord Nelson

After the decommissioning of Lord Nelson in 2019 the Trustees looked at the possible use of the ship for educational purposes, as a museum, as a conference centre, or even as a floating hotel. Investigations were made with a number of ports on the feasibility of Lord Nelson being permanently docked with them as a tourist attraction. A number of enquiries were made from various organisations expressing interest in the ship but after further negotiations no firm proposals were received.

After an extended period looking at all possible options it was determined in February 2021 to formally put Lord Nelson for sale. There had been some good initial interest both in the UK and abroad but during the pandemic it has not been possible to progress these discussions to any great extent, although there had been some initial expressions of interest internationally. During 2021 – 2022 it is hoped to continue to look for a buyer and to finalise a sale in the best long-term interests of the JST.

Fundraising regulations

All fundraising is subject to strict regulations set out by the Charity Commission and monitored by the Board of Trustees of the Jubilee Sailing Trust. All our accounts, including fundraising income and expenditure, are subject to Independent Audit and are submitted to the Charity Commission on an annual basis.

The JST provides full details of the Fundraising Regulator on our website including contact points for any donors or potentials to raise concerns over any intrusion into their privacy, unreasonable pressure or persistence to donate, or any issues over the allocation and distribution of funds.

No complaints concerning the Fundraising Policy or Practice of the JST or of any of its fundraising staff or volunteers have been raised during the period covered by this Annual Report.

We employ a team of fundraisers who are paid a salary as well as volunteer fundraisers. No commission is paid to our fundraising team or our volunteers. We fully subscribe to the Code of Fundraising Practice of the Fundraising Regulator[1] and are registered by them.

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Financial review and governance

Statement of Trustees Responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

• Observe the methods and principles in the Charities SORP (FRS 102)

Summary Statement by Trustees

This has undoubtedly been a challenging year for the JST with no public voyages and just one opportunity to sail, in February 2021, in partnership with the Royal Navy. With a £400k operating deficit for the year our debt position has continued to deteriorate, although at a slightly slower pace than in previous years. Costs are now much more manageable and the major challenge has been to maintain income in such a difficult period.

Income from voyages has been seriously depleted, therefore. In addition, income from fundraising is 50% down on the previous year, some of which is directly related to the impact of the pandemic although it should be noted that income for 2019 – 2020 had included an exceptional item, the £1m raised through the special appeal. Excluding that exceptional item, fundraising for the year was marginally higher in this reporting year.

Administrative expenses have fallen 35% during the year due to changes in staff and the furlough scheme. Ship expenses have reduced despite including the costs of the Special Survey due to savings from not sailing and the decommissioning of Lord Nelson.

The Trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees at the time this report is approved are aware that to the best of their belief and knowledge:

The Trustees have given due consideration to Charity Commission published Guidance on the operation of the Public Benefit requirement.

This report was approved by Charles Humpleby, chair on January 31, 2022.

The Trustees have noted the considerable support of the loyal volunteers, branches, crew and staff which has enabled the JST to achieve a great deal under adverse circumstances. Consequently, whilst the year ahead needs to be one of recovery, the actual position of the Trust at the end of this reporting period is better than expected given all the circumstances.

The Notes to the financial statements for the year ended 31[st] March 2021, provided in the final section of this report, state in Section 1 b of the Accounting policies:

1(b) Going Concern

The trustees have taken steps to improve the financial performance of the group which is shown in income levels and operational cost reduction since the balance sheet date, and projected operational cash flows, which indicate that the group is in a more positive financial position.

Reference and administrative details

Chairman of Trustees: Charles Humpleby Vice-Chairman: Martyn Cuff Trustees: Jessica Berry Tom Stewart Niall Tarrell Emma Lawton Chief Executive: Patrick Fleming Principal Address: Enterprise House, Ocean Village, Southampton SO14 3XB Bankers: National Westminster Bank PLC 15 Bishopsgate London EC2P 2AP Solicitors: Hill Dickinson LLP Irongate House Dukes Place London EC3A 7HX Independent Auditors: Fiander Tovell Limited Stag Gates House 63/64 The Avenue Southampton SO17 1XS Charity Number: 277810

Stag Gates House 63/64 The Avenue Southampton SO17 1XS

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Financial review and governance

Financial Review

Inevitably the financial position of the Trust has been impacted severely by the Covid-19 pandemic. Throughout the Annual Report and in the full accounts provided in the financial statements that financial impact is outlined.

In terms of income compared to the previous year:

In terms of expenditure compared to the previous year:

• Ship expenses have reduced due to savings from not sailing, and the decommissioning of Lord Nelson and reduced headcount. • Costs of the Special Survey of Tenacious made up approximately 50% of total ship expenses for the year at a total of £545,241.

Admin expenses have fallen 35% mainly due to changes in staffing, reduced office running costs with closure of the Woolston office, and the reduction of crew numbers.

Costs of fundraising, excluding salaries, have fallen considerably

Cash and cash equivalents at the end of the reporting period (March 2021) had improved to £152,438 compared to a balance of £24,952 at March 2020

Principal risks and uncertainties

The principal current financial and operational risks are considered to be:

The Trustees of the JST have established a risk assessment framework, reviewed throughout the year, to consider the impact and probability of risks in various areas, as part of its • general governance of the Trust. During 2020 – 2021 a full organisational review was commissioned and conducted by an external consultant to identify • operational risks. The Trustees are currently considering the contents of the review and will make any necessary changes in the light of recommendations made. •

Recurrence of pandemic causing the sudden cessation of voyages with costs associated, loss of revenue as well as impact on fundraising.

Risk of insufficient working capital to meet operational requirements or service debt.

Significant deterioration in the condition of the Lord Nelson which would impact on a final sale price.

An extensive updating of the Ship Safety Management System, effectively the risk register for the operation of the • ships and safety of permanent crew, volunteers, and voyage crew, was conducted under the leadership of the Director of Operations during November – March 2021 and passed • inspection by the Marine and Coastguard Agency during one of its regular reviews.

Challenges to fundraising of all types in the current economic climate.

Decline in occupancy levels on voyages, and lower contribution to costs payments by voyage crew, leading to high operating deficit and increasing overall debt levels.

Many of the risks to the Jubilee Sailing Trust have focused on the impact of Covid-19 and any enduring consequences.

Investments

The detailed report of our financial performance for FY20.21 is provided in the full copy of the financial statements. In summary:

Total Income 2020 - 2021 £2,106,117 (compared to £3,124,412 in 2019 - 2020)

Breakdown of Income:

Voyage Fees £668,233 (compared to £987,663 in 2019 – 2020) Donations and Gifts £1,236,320 (compared to £2,211,365 in 2019 - 2020) Merchandising £7,341 (compared to £17,039 in 2019 - 2020) Other Fundraising Income £1,897 (compared to £1,175 in 2019 – 2020) Sundry Income £214,445 (nil recorded in 2019 -2020) Total Expenditure £2,321,254 (compared to £3,562,175 in 2019 - 2020) Operating Deficit for Year 2020 - 2021 £215,137 (compared to £437,763 in 2019 - 2020)

Re-evaluation of Fixed Assets

A re-evaluation of fixed assets during 2020 – 2021 to £5,037,123 compared to £5,982,439 in 2019 – 2021 a reduction of £925,000.

Currently the JST does not have any significant investments or reserves.

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Financial Statements

SECTION 3

Financial Statements

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Financial Statements

JUBILEE SAILING TRUST

JUBILEE SAILING TRUST

Independent Auditors Report to the Trustees of Jubilee Sailing Trus t

Independent Auditors Report to the Trustees of Jubilee Sailing Trus t

Opinion

We have audited the financial statements of Jubilee Sailing Trust (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the Group Statement of Financial Activities, the Group and the Trust Balance Sheet, Group Cashflow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

In our opinion the financial statements:

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

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 group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

At the Balance Sheet Date, the Group had Net Current Liabilities of £2,482,075 (2020: £2,120,454). In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy of the disclosures made in note 1(b) to the financial statements concerning the group and the Trust’s ability to continue as a going concern, which is dependent on the continued support of the group’s bank, fellow members of the group, other creditors and its supporters and donors.

These conditions, along with the other matters explained in note 1(b) to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the group's and the Trust’s ability to continue in operation. The financial statements do not include the adjustments that would result if the group or the Trust was unable to continue as a going concern. In view of the significance of this matter, we consider that it should be drawn to your attention but our opinion is not qualified in this respect.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 40, the trustees are responsible for the preparation of financial statements which 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 group’s and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Financial Statements

JUBILEE SAILING TRUST

JUBILEE SAILING TRUST

Independent Auditors Report to the Trustees of Jubilee Sailing Trus t

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Independent Auditors Report to the Trustees of Jubilee Sailing Trus t

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Meacher FCA (Senior Statutory Auditor) Fiander Tovell Limited

Chartered Accountants and Registered Auditors Stag Gates House 63/64 The Avenue Southampton SO17 1XS

Date: 31/1/2022 | 14:39 GMT

Fiander Tovell Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Financial Statements

JUBILEE SAILING TRUST

Consolidated statement of financial activities for the year ended 31 March 2021

----- Start of picture text -----
Notes 2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds
£ £ £ £ £ £
Income and endowments from:
Donations and legacies:
Donations and gifts 4 1,158,841 77,479 1,236,320 1,983,858 227,507 2,211,365
Deferred income - (22,119) (22,119) - (149,207) (149,207)
Charitable activities:
Voyage fees 668,233 - 668,233 987,663 - 987,663
Appearance fees - - - 56,277 - 56,277
Other trading activities:
Merchandising income 7,341 - 7,341 17,039 - 17,039
Other fundraising income 1,897 - 1,897 1,275 - 1,275
Sundry income 214,445 - 214,445 - - -
Total incoming resources 2,050,757 55,360 2,106,117 3,046,112 78,300 3,124,412
Expenditure on:
Raising funds:
Costs of generating voluntary income 243,935 - 243,935 375,242 - 375,242
Merchandising costs 9,440 - 9,440 (2,489) - (2,489)
253,375 - 253,375 372,753 - 372,753
Charitable activities:
Lord Nelson operating costs 132,343 - 132,343 990,738 18,477 1,009,215
Lord Nelson depreciation 76,861 - 76,861 74,387 - 74,387
Tenacious operating costs 1,693,493 133,293 1,826,786 1,908,621 21,873 1,930,494
Tenacious depreciation 106,250 - 106,250 113,836 - 113,836
Restricted income released 1(e) - - - (37,900) 37,900 -
Interest payable 9 (74,361) - (74,361) 61,490 - 61,490
1,934,586 133,293 2,067,879 3,111,172 78,250 3,189,422
Total resources expended 6(a) 2,187,961 133,293 2,321,254 3,483,925 78,250 3,562,175
Transfers 375,057 (375,057) - - - -
Net incoming/(outgoing) resources 237,853 (452,990) (215,137) (437,813) 50 (437,763)
Memo: net incoming/ (outgoing)
resources before depreciation 420,964 (452,990) (32,026) (249,590) 50 (249,540)
Revaluation of tangible fixed assets (925,000) - (925,000) - - -
Net movement in funds (687,147) (452,990) (1,140,137) (437,813) 50 (437,763)
Reconciliation of total funds: .
Funds brought forward 210,870 547,671 758,541 648,683 547,621 1,196,304
Funds at 31 March 2021 (476,277) 94,681 (381,596) 210,870 547,671 758,541
----- End of picture text -----

JUBILEE SAILING TRUST

Consolidated and Trust Balance Sheets at 31 March 2021

----- Start of picture text -----
Group Trust
Notes 2021 2020 2021 2020
£ £ £ £
Fixed Assets
Tangible assets 11 5,037,123 5,982,439 - -
Total fixed assets 5,037,123 5,982,439 - -
Current assets
Stocks 12 33,973 27,777 - -
Debtors - due within one year 13 327,220 979,599 116,514 149,750
Debtors - due after more than one year 13 - - 4,443,160 4,750,232
Cash at bank and in hand 152,438 24,952 24,187 17,622
513,631 1,032,328 4,583,861 4,917,604
Creditors: amounts falling due within one year 14 (2,995,706) (3,152,782) (1,231,478) (1,140,836)
Net current (liabilities)/ assets (2,482,075) (2,120,454) 3,352,383 3,776,768
Total assets less current liabilities 2,555,048 3,861,985 3,352,383 3,776,768
Creditors: amounts falling due after one year 16 (2,936,644) (3,103,444) (2,808,977) (3,020,444)
Net assets (381,596) 758,541 543,406 756,324
Funds
Unrestricted (476,277) 210,870 448,725 208,653
Restricted 19 94,681 547,671 94,681 547,671
(381,596) 758,541 543,406 756,324
----- End of picture text -----

The financial statements were approved by the Trustees and authorised for issue on

Charles Humpleby Chairman

31/1/2022 | 14:26 GMT

All items dealt with in arriving at the net movement in funds in 2021 and 2020 relate to continuing operations.

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Financial Statements

.

JUBILEE SAILING TRUST

Consolidated cash flow statement for the year ended 31 March 2021

Cash flows from operating activities:
Net cash provided by/(used in) operating activities (A)
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Net cash provided by/(used in) investing activities
Cash flows from financing activities:
Proceeds from bank loans
Repayment of bank loans
Repayment of Trustee Loans
Repayment of other loans
Cash inflows from new borrowing
Net cash provided by/(used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the end of the reporting period (B)
Cash and cash equivalents at the beginning of the reporting period		 2021
£
220,655
-
(179,328)
(179,328)
100,000
-
-
(64,718)
-
35,282
76,609
(17,874)
58,735		 2020
£
(238,004)
-
-
-
-
-
(8,000)
-
20,000
12,000
(226,004)
208,130
(17,874)

(A) Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income/(expenditure) for the reporting period
Depreciation
Dividends, interest and rents from investments
Decrease / (Increase) in stocks
(Increase) / Decrease in debtors
(Decrease) / Increase in creditors
Donations in kind of fixed assets
Net cash provided by/(used in) operating activities
(B) Analysis of cash and cash equivalents
Cash in hand
Overdraft facility
Total cash and cash equivalents		 (215,137)
199,645
-
(6,197)
652,379
(410,035)
-
220,655
152,438
(93,703)
58,735		 (437,763)
195,519
-
16,342
(595,754)
583,652
-
(238,004)
24,952
(42,826)
(17,874)

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021

1 Accounting policies

Charity information

Jubilee Sailing Trust is a charitable trust established under a Trust Deed and registered with the Charity Commission in England and Wales. The principal address is Enterprise House, Ocean Way, Ocean Village, Southampton, SO14 3XB. The Trust is a public benefit entity.

a) Basis of preparation

The financial statements have been prepared under the historical cost convention (subject to the revaluation of fixed assets as detailed in note 1(h)) and are in accordance with the Charities SORP “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (SORP2019) issued in October, the Charities Act 2011 and the applicable accounting standard, FRS 102.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

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

The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the Trust and its subsidiary undertakings, Jubilee Sailing Trust Limited and Jubilee Sailing Trust (Tenacious) Limited as at 31 March 2021 using the acquisition method of accounting. No separate SOFA has been presented for the Trust alone as permitted by the SORP.

The parent entity has taken advantage of the reduced disclosure framework exemption in connection with its own results. This gives exemption from the following disclosures: statement of cash flows, financial instruments and key management personnel remuneration.

b) Going concern

The Trust is dependent on the continued support of its supporters, donors and lenders, fellow members of the group and other creditors. The Trustees consider that they have this support, and that the Trust will continue to operate as a going concern. The financial statements have been prepared on the basis that the Trust is a going concern and do not include the adjustments that would result in the event of the lenders or principal creditors removing their continued support and current credit and working capital facilities.

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Notes to the financial statements for the year ended 31 March 2021

1 Accounting policies continued

b) Going concern continued

COVID-19 is not expected to have a significant impact on the group. The impact of COVID-19 post year end shows a reduction in ship running costs due to cancelled voyages. The group made the decision to avoid refunds and transfer payments on cancelled voyages to future bookings. The group has also taken advantage of various schemes offered by the government such as the furlough of staff and bounce back loans.

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021

1 Accounting policies continued

e) Donated voyage fees

Donations made to subsidise the cost of voyages are restricted and shown as deferred income under assisted voyage deposits. Donated voyage fees are only used for subsidising the cost of voyages as specified by donors and are released to meet the costs of the voyage when the conditions set by the donors are met.

f) Resources expended

c) Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Trust and which have not been designated for other purposes.

Restricted funds are funds provided to be used for specific purposes as specified by the donor. Expenditure which meets these criteria is charged to the funds.

d) Incoming resources

All incoming resources are recognised once the Trust has entitlement to the resources, it is reasonably certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability. Gifts in kind are included at valuation. No amounts are included in the financial statements for services donated by volunteers.

Legacy income is recognised when the legacy has been received, or once the Trust has confirmed its entitlement to the legacy and the value is known with sufficient reliability.

Voyage fees represent the amounts invoiced for voyages which commenced in the accounting period. Voyage deposits received in advance are deferred until the commencement of the voyage.

Other sundry income represents funds received from sponsorship and corporate receptions and government grants. Government grants relate to claims made under the coronavirus job retention scheme and are recognised in the statement of financial activities in the same period as the costs to which they relate.

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Trust to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources. Support costs are those costs (including overheads) incurred in support of expenditure on the objects of the Trust. Support costs have been allocated first between charitable activity and governance. The overhead element has then been apportioned between charitable activity and governance based on staff time and turnover ratio. The allocation of overhead and support costs is analysed in note 6 (b).

g) Governance costs

Governance costs comprise all costs involving the public accountability of the Trust and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.

h) Tangible fixed assets and depreciation

Lord Nelson and Tenacious are stated at valuation in accordance with FRS 102. Depreciation following a revaluation is provided on a straight line basis at 2.5% per annum. The cost of refits is charged against revenue as incurred.

All other fixed assets costing over £3,000 are capitalised and stated at cost or, if donated, at retail cost, less accumulated depreciation. Depreciation is calculated so as to write off the cost of fixed assets over the expected useful economic lives on a straight line basis, at annual rates varying between 10% and 25%.

Subsequent expenditure that enhances the economic benefits of the asset in excess of its previously assessed value is capitalised.

i) Foreign currency

Foreign currency transactions are translated at the rates ruling when they occurred. Foreign currency monetary assets and liabilities are translated at the rate of exchange ruling at the balance sheet date. Any differences are taken to the Statement of Financial Activities.

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Notes to the financial statements for the year ended 31 March 2021

1 Accounting policies continued

j) Stocks

Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis.

k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021

1 Accounting policies continued

q) Operating leases

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

r) Concessionary loans

Concessionary loans are initially recognised at the amount received in accordance with paragraphs PBE34.90 to PBE34.97 of FRS 102.

2 Critical accounting estimates and judgements

l) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term liquid investments with original maturities of three months or less, and bank overdrafts.

m) Creditors and provisions

Creditors and provisions are recognised where the Trust has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

n) Financial instruments

The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

In the application of the Trust's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Ship Valuations

o) Pension costs

The Trust participates in independent pension schemes for employees based on defined levels of contributions. The assets of the schemes are held separately from those of the Trust. Pension costs represent the contributions payable by the Trust during the period.

The Trust’s tall ships are shown in the financial statements at valuation. The trustees engage professional specialist valuers to value the ships and the valuations are based on their advice. The valuation is an estimate based on various factors as shown in note 11.

MNOPF Multi-Employer Defined Benefit Scheme

The Trust also participates in the Merchant Navy Officers Pension Fund (MNOPF) pension scheme for qualifying members which incorporates both defined benefit and defined contribution sections. Provision is made for the agreed contributions to the deficit under an instalment payment arrangement.

Provision is made for the agreed contributions to the deficit on the MNOPF multi-employer defined benefit scheme. The deficit is an estimate based on calculations and valuations made by independent actuaries.

p) Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

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Notes to the financial statements for the year ended 31 March 2021

3 Donated goods, facilities and services

From our valued supporters around the world the Trust received £84,000 in donations in kind in the year. We are extremely grateful to our supporters for all they do in making our mission achievable from helping us with discounted or free berthing, pilotage and mooring, to parts for our ships and servicing. We also continue to receive assistance with insuring our fleet, training our staff and crew and charts to help us navigate the world.

Our volunteer branch community (nearly 1,000 strong) continues to grow and stretch further around the world following the ships where they go. We are lucky to receive invaluable support not only in helping us deliver our mission by way of Watch Leaders, Bosun’s Mates and Cook’s Assistants but to raise awareness of our work, fundraising, providing expert assistance both on and off shore in the office and with the maintenance of our ships.

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021 - continued

4
Donations and gifts
Charitable trusts, corporate donors and other institutions
Legacies
Fundraising events
Individuals and branches
5
Investment income
6
(a) Total resources expended
Staff
costs
£
Fundraising and publicity costs
162,086
Merchandising costs
-
Lord Nelson operating costs
39,294
Tenacious operating costs
396,577
Interest payable
-
597,957
Investment income comprises bank interest receivable of		 Depreciation
Other
direct
costs
£
£
16,534
65,315
-
9,440
76,861
93,049
106,250
1,430,209
-
(74,361)
199,645
1,523,652
£Nil (2020: £Nil).		 2021
£
542,504
399,146
17,032
277,638
1,236,320
Total
2021
£
243,935
9,440
209,204
1,933,036
(74,361)
2,321,254		 2020
£
314,728
204,634
16,908
1,675,095
2,211,365
Total
2020
£
375,242
(2,489)
1,083,602
2,044,330
61,490
3,562,175

Other direct costs include audit fees of £16,000 (2020: £14,250) and auditors' remuneration for non-audit services of £3,275 (2020: £3,000).

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Notes to the financial statements for the year ended 31 March 2021 - continued

6 Total resources expended - continued

6 (b) Allocation of support costs and overheads

The breakdown of support and overhead costs and how these were allocated between Governance and Charitable Activities (Ship operating costs) is shown in the table below. All have been allocated on a 'time spent' basis.

Total
Cost Type
Allocated
Governance
£
£
Staff costs
435,871
-
Office rental and costs
37,353
892
Communication costs
9,617
48
Insurance
7,929
462
Depreciation
8,019
-
Other
78,543
23,847
577,332
25,249
Support costs include exchange differences debited/(credited) of
(c) Allocation of governance costs
Total
Fund
Allocated
Raising
& Publicity
Costs
£
£
Staff costs
-
-
Office rental and costs
892
223
Communication costs
48
12
Insurance
462
115
Depreciation
-
-
Other
23,847
5,961
25,249
6,311		 Lord Nelson
Tenacious
£
£
39,294
396,577
14,434
22,027
776
8,793
7,467
-
-
8,019
14,464
40,232
76,435
475,648
(£3,456) (2020: £5,750).
Ship
Operating
Costs
£
-
669
36
347
-
17,886
18,938
Operating Costs
Group
Wages and salaries
Social security costs
Pension contributions
Agency staff
Pension contributions - agency staff
The average number of employees, analysed by function, was:
Administration		 2021
£
608,863
62,331
26,249
382,852
10,376
1,090,671
No.
13		 2020
£
798,449
84,541
35,641
707,825
24,439
1,650,895
No.
22

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021 - continued

7 Staff and Agency Costs and Remuneration of Key Management Personnel - continued

During the year, the number of employees with emoluments of over £60,000 was as follows:
2021
2020
No.
No.
£60,000 - £70,000
1
1
£70,000 - £80,000
1
1
£110,000 - £120,000
1
-
Pension contributions of £8,284 (2020: £Nil) were paid in respect of higher paid employees.
2021
2020
£
£
Employment benefits of key management personnel
330,991
193,528
The average number of administrative employees is based on full-time equivalents whereas the average
number of ships' crew consists of relief and permanent crew.
2021
2020
Trust
£
£
Wages and salaries
-
-
Social Security costs
-
-
Pension contributions
-
-
-
-
The average number of employees, analysed by function, was:
No.
No.
Administration
-
-

The average number of administrative employees is based on full-time equivalents whereas the average number of ships' crew consists of relief and permanent crew.

8 Trustees' remuneration

None of the Trustees or any persons connected with them received any emoluments from the charity in either year.

No Trustees received reimbursed expenses during either year.

Trustee indemnity insurance of £3,780 (2020: £3,360) has been paid by Jubilee Sailing Trust Limited and is included within governance costs.

The average number of full time staff was 9 (2020: 19) and part time staff was 4 (2020: 3). The average number of full time equivalent staff was 11 (2020: 21).

The majority of the ships’ crews are supplied to the Jubilee Sailing Trust by a specialist agency which employs them and consequently they are not included in the average number of employees shown above. The agency staff costs shown above relate to staff employed by a third party but provided to Jubilee Sailing Trust (Tenacious) Limited under a contract for the provision of staff.

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Notes to the financial statements for the year ended 31 March 2021 - continued

----- Start of picture text -----
9 Interest payable
2021 2020
£ £
Bank loans and overdrafts - -
Other loans (74,361) 61,490
(74,361) 61,490
----- End of picture text -----

Interest charged on two loans up to 31 March 2021 was waived post-year end. This resulted in an adjustment of £146,096, of which £37,085 related to interest charged in the current year.

10 Results of parent and subsidiaries

These accounts incorporate the results of the Trust's wholly owned subsidiaries, Jubilee Sailing Trust Limited (company number (company number 01694447, charity number 286487) and Jubilee Sailing Trust (Tenacious) Limited (company number 04019273, charity number 1081658), for the year ended 31 March 2021. These subsidiaries share the principal objective of enabling physically disabled and able-bodied people to share the challenging and integrating experience of crewing a sailing ship at sea.

Each entity's total incoming resources for this period and their net operating surplus/deficit before any subvention of funds from the parent entity were as follows:

Incoming resources Operating surplus/(deficit) Operating surplus/(deficit)
2021 2020 2021 2020
£ £ £ £
Jubilee Sailing Trust 1,177,595 2,130,095 1,254,175 2,063,143
Jubilee Sailing Trust Limited 2,195 496,797 (225,032) (1,121,665)
Jubilee Sailing Trust (Tenacious) Limited 750,003 596,598 (1,242,061) (1,381,460)

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021 - continued

----- Start of picture text -----
11 Tangible fixed assets
Boats Equipment
Lord & spare & motor
Group Tenacious Nelson engines vehicles Total
£ £ £ £ £
Cost or valuation
At 1 April 2020
- -
- at original cost 89,496 155,372 244,868
- at valuation 4,250,000 2,500,000 - - 6,750,000
4,250,000 2,500,000 89,496 155,372 6,994,868
Revaluation - (925,000) - - (925,000)
Additions - - 171,391 7,937 179,328
- - -
Disposals (8,986) (8,986)
At 31 March 2021 4,250,000 1,575,000 260,887 154,323 6,240,210
Depreciation
At 1 April 2020 531,250 312,500 80,055 88,623 1,012,428
Revaluation - - - - -
Charge for the year 106,250 62,500 12,473 18,422 199,645
- - -
Eliminated on disposal (8,986) (8,986)
At 31 March 2021 637,500 375,000 92,528 98,059 1,203,087
Net book value
At 31 March 2021 3,612,500 1,200,000 168,359 56,264 5,037,123
At 31 March 2020 3,718,750 2,187,500 9,441 66,749 5,982,440
----- End of picture text -----

Tenacious and Lord Nelson are pledged as security for a number of loans, as detailed in note 16a.

The aggregate amount of assets, liabilities and funds in each subsidiary is as follows:

The group adopts a policy of revaluation of its sailing ships in accordance with FRS 102.

Assets Liabilities Net Assets
£ £ £
Jubilee Sailing Trust Limited 2,394,404 3,319,404 (925,000)
Jubilee Sailing Trust (Tenacious) Limited 4,014,529 4,014,529 -

A valuation was carried out in July 2015 by Graham Westbrook (independent naval architect and surveyor). He estimated the approximate value of Lord Nelson (Jubilee Sailing Trust Limited) at £2,500,000 and Tenacious (Jubilee Sailing Trust (Tenacious) Limited) at £4,250,000.

The basis for valuation and factors considered were:

  1. Ships of similar size and nature available on the open market.

  2. Comparison with as near an identical ship whose details are known.

  3. The cost to build the ship from new.

The charity itself does not hold tangible fixed assets (2020: £Nil).

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Notes to the financial statements for the year ended 31 March 2021 - continued

11 Comparable historical cost for Lord Nelson and Tenacious:

Cost
At 1 April 2020 and 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net Book Value
At 31 March 2021
At 31 March 2020		 Tenacious
£
15,620,213
6,130,678
312,404
6,443,082
9,177,131
9,489,535		 Lord
Nelson
£
2,690,205
1,829,339
53,804
1,883,143
807,062
860,866		 Total
£
18,310,418
7,960,017
366,208
8,326,225
9,984,193
10,350,401

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021 - continued

14 Creditors: amounts falling due within one year

Bank loans and overdrafts
Other loans (16a)
Voyage deposits in advance (15a)
Trade creditors
Other creditors
Other taxation and social security
Deferred income
Accruals		 2021
2020
£
£
107,036
42,826
681,055
534,306
776,858
711,066
577,252
514,026
54,441
69,290
371,097
181,386
293,750
950,000
134,217
149,882
2,995,706
3,152,782
Group		 2021
2020
£
£
-
-
681,055
534,306
516,606
494,487
-
-
-
600
-
-
-
-
33,817
111,443
1,231,478
1,140,836
Trust

The amount of secured liabilites due within one year is £665,773 (2020: £517,132). The bank overdraft is secured by an intercompany guarantee, debenture and a ship mortgage on Tenacious.

12 Stocks

15 Voyage deposits in advance

These comprise promotional trading goods, fundraising materials, bar stock for resale and ship stores.

13 Debtors

Other debtors
Prepayments and accrued income		 2021
2020
£
£
157,143
804,374
170,078
175,225
327,221
979,599
Group		 2021
2020
£
£
-
-
116,514
149,750
116,514
149,750
Trust

Amounts falling due after more than one year

-
-		 -
-		 4,443,160
4,443,160		 4,750,232
4,750,232

Amounts due from subsidiary companies

The advances to Jubilee Sailing Trust Limited and Jubilee Sailing Trust (Tenacious) Limited from the Trust are secured on the assets of the companies. By a Deed of Subordination the Trust has agreed that its security ranks behind the security given to National Westminster Bank plc, the Secretary of State for Trade and Industry, The Corporation of Trinity House of Deptford Strond, John Marston, Harry Cator and Elisabeth Thistlethwayte as detailed in Note 16. In the absence of any breach of the terms of the security, advances are repayable out of the proceeds of sale of any assets so secured.

15 Voyage deposits in advance
(a) Trust:
Assisted voyage fees
Branches		 01-Apr
Incoming
Release of
31-Mar
2020
Resources
b/f deferred
2021
deferred
income
£
£
£
£
480,645
22,119
-
502,764
13,842
-
-
13,842
494,487
22,119
-
516,606
Group:
01-Apr
Incoming
Release of
31-Mar
2020
Resources
b/f deferred
2021
deferred
income
£
£
£
£
Assisted voyage fees
480,645
22,119
-
502,764
Branches
13,842
-
-
13,842
Voyage deposits
216,579
43,673
-
260,252
Donations made to subsidise the cost of voyages are received from a variety of sources to enable the Trust
to operate subsidised voyages.
711,066
65,792
-
776,858

Donations made to subsidise the cost of voyages are received from a variety of sources to enable the Trust to operate subsidised voyages.

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Financial Statements

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021 - continued

16 Creditors: amounts falling due after more than one year

Bank loans and overdrafts
Other loans (a)
Loans from individuals (b)
Other creditors		 2021
2020
£
£
86,667
-
2,677,477
2,888,944
131,500
131,500
41,000
83,000
2,936,644
3,103,444
Group		 2021
2020
£
£
-
-
2,677,477
2,888,944
131,500
131,500
-
-
2,808,977
3,020,444
Trust

The amount of secured liabilites due after more than one year is £2,677,477 (2020: £2,868,944).

a Other loans

Details of the other loans provided are as follows:

Lender Capital Term Interest
Harry Cator 1,647,000 15 years 0.7% above base
Harry Cator 550,000 15 years 3% above base
John Marston 175,000 15 years 3% above base
Elisabeth Thistlethwayte 221,250 15 years 3% above base
Trinity House 250,000 15 years 5% above base
Anonymous 500,000 5 years 0%
John Christodoulou 15,282 1 year 0%

The above loans (with the exception of the loan from John Christodoulou) are secured by a guarantee from Jubilee Sailing Trust (Tenacious) Limited and a ship mortgage on Tenacious. The guarantee and mortgage rank behind the guarantee to National Westminster Bank plc and equally with the Corporation of Trinity House of Deptford Strond and the three lenders referred to above. The anonymous loan is secured by a guarantee from Jubilee Sailing Trust Limited and a ship mortgage on Lord Nelson.

Included within other loans are concessionary loans totalling £622,282 (2020: £687,000), of which £15,282 (2020: £60,000) are due for payment within one year and £607,000 (2020: £627,000) are due for payment after more than one year.

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021 - continued

16 Creditors: amounts falling due after more than one year - continued

The analysis of other loans is:

Due within 1 year
Due within 1-2 years
Due within 2-5 years
Due after 5 years		 2021
£
681,055
191,467
1,074,400
1,411,610
3,358,532		 2020
£
534,306
211,467
1,074,400
1,603,077
3,423,250

b Loans from individuals At 31 March 2021, 8 (2020: 8) individuals including some Trustees had advanced loans to the Trust, totalling £131,500 (2020: £131,500).

At 1 April 2020
Loans advanced during the year
Repaid during the year
Reclassified
Waived during the year
At 31 March 2021		 2021
£
131,500
-
-
-
-
131,500		 2020
£
139,500
-
(8,000)
-
-
131,500

The interest on these advances is waived with the exception of one of the advances which bears interest at 3.5%. The JST has the power to make such interest payments in accordance with the terms of the Deed of Trust.

The outstanding amount at 31 March is analysed as follows:

Due within 1 year
Due between 1 and 2 years		 2021
£
-
131,500
131,500		 2020
£
-
131,500
131,500

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Financial Statements

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021 - continued

17 Obligations under operating lease

At 31 March 2021 the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Land & Buildings
Within one year
In more than one year but not more than five years
In more than five years
Lease payments recognised as an expense
during the year		 2021
£
22,335
6,514
-
28,849
22,335		 2020
£
22,335
28,849
-
51,184
22,335

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021 - continued

19 Funds
Group and Trust
Restricted funds
01-Apr
Incoming
2020
Resources
£
£
Ships maintenance fund
536,671
55,360
Assisted voyage fund
-
22,119
Pension deficit fund
11,000
-
547,671
77,479
Ships maintenance fund
536,621
40,400
Assisted voyage fund
-
187,107
Pension deficit fund
11,000
-
547,621
227,507
The movement in funds for the comparative period was:		 Deferred
Income
£
-
(22,119)
-
(22,119)
-
(149,207)
-
(149,207)		 Outgoing
resources
£
(133,293)
-
-
(133,293)
(40,350)
(37,900)
-
(78,250)		 Transfers
£
(375,057)
-
-
(375,057)
-
-
-
-		 31-Mar
2021
£
83,681
-
11,000
94,681
536,671
-
11,000
547,671

18 Related parties

The loans from the Trustees and other individuals included in Note 16 above are also related party transactions and therefore the Trust considers the following to be material transactions. Certain of the trustees took the decision to waive interest on these loans. The interest waived of £856 and calculated at 0.7% above base rate per annum (2020: £2,320) has been treated as a gift in kind.

Interest paid to Trustees in the year was £Nil (2020: £Nil)

Amounts owed by the Trust to trustees and related parties at 31 March 2021:

2021 2020
£ £
Mrs J Cator 75,000 75,000
Mr R Davies 24,500 24,500
Mr T Stewart 20,000 20,000
Mr J Caulcutt 5,000 5,000
Ms A Robinson 2,500 2,500
Mr J Holloway 1,000 1,000
Mr S Taggart 2,500 2,500
Mr T Keen 1,000 1,000
Mr H Cator 2,197,000 2,197,000

During the year, amounts totalling £146,096 (2020: £Nil) were waived by related parties on the above loans.

The ships maintenance fund represents amounts received for the continued maintenance of either of the group's two tall ships.

The bursaries received in the assisted voyage fund enable the Trust to operate subsidised voyages and youth training activities. These bursaries are only used for subsidising the cost of voyages as specified by donors and remain as deposits in advance until released as voyage income.

The pension deficit fund represents contributions received towards payment of the Trust's pension deficit liability.

20 Analysis of net assets between funds

Group
Fixed assets
Current assets
Current liabilities
Long term liabilities
The analysis of net assets for the comparative period was:
Group
Fixed assets
Current assets
Current liabilities
Long term liabilities		 Unrestricted
Funds
£
5,037,123
418,950
(2,995,706)
(2,936,644)
(476,277)
Unrestricted
Funds
£
5,982,439
484,657
(3,152,782)
(3,103,444)
210,870		 Restricted
Funds
£
-
94,681
-
-
94,681
Restricted
Funds
£
-
547,671
-
-
547,671		 Total
£
5,037,123
513,631
(2,995,706)
(2,936,644)
(381,596)
Total
£
5,982,439
1,032,328
(3,152,782)
(3,103,444)
758,541

Jubilee Sailing Trust - Annual Report

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Financial Statements

JUBILEE SAILING TRUST

Notes to the financial statements for the year ended 31 March 2021 - continued

21 Pension Costs and Pension Deficit Costs

The total pension costs charged to the SOFA account amounted to £26,249 (2020: £35,641).

The costs include contributions at varying rates to the Merchant Navy Officer’s Pension Fund, a pension scheme for qualifying members which incorporates both defined benefit and defined contribution sections. The defined benefit scheme is exempt from the disclosures required under Section 28 of FRS 102 as a multi employer scheme, because the Trust is unable to identify its share of the underlying assets and liabilities of the scheme on a reasonable and consistent basis.

The latest Actuarial Valuation at 31 March 2018 reported a gross deficit of £73 million, and at that date previously agreed deficit contributions to be paid over by all scheme members had a value of £64 million, resulting in an adjusted deficit of £9 million.

Jubilee Sailing Trust Limited has entered into an agreement with the MNOPF in March 2014 and is paying monthly instalments of £3,500 per month, starting in February 2014 and ending in July 2023.

As required under FRS 102, a provision has been made for the agreed contributions to the deficit and the provision at the year end amounted to £83,000 (2020: £125,000).

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