PORTSMOUTH HISTORIC QUARTER TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 A COMPANY LIMITED BY GUARANTEE COMPANY REGISTERED NUMBER 01959490 (ENGLAND AND WALES) CHARifY REGISTERED NUMBER 293188 HQ CONTENTS Message From Our Chair.. ..... Message From OurCEO...................................................-............-...................................................... Trusiees, Report..... Ourvision.............................................................................................................. Our Strategic Aims...............................................................................-............-.......................... Our Charitable Purpo$e . Our Impact In Numbers . Our Work In Action: Pfeserve................ Regeneration Projects....-.....-.-.-...-...............-................................................................... Built Heritage Historic Vessels........................................................... Our Work In Action.. Educate & Enjoy..................................................................... .. Enhancing Our Visitor Destination.........................................................-.-.-..-.............................10 Free-Entry Exhibitions................... .10 Free-Entry Events . Historic Vessels In Action...-.........-.-.-...-...........-.-...-..-................................................................ 12 Volunteer Community.... .12 Priddy's Hard Creative Community.............................................................-..-............................ 13 F8PrideProject.................... .13 Ourwork In Aclion.. DeveLop .........-.................................................................................. . .14 Investing In Our People.................................................................................-..-......................... 14 Invesling In Our Infrastructure.................................................... .14 Partnerships And Stakeholders................................................................ Accolades................................................................................................................................. LookingAhead..................................................................-.........-.................................................. Activity Since Year End... Plans For Future Periods . Fin8nci81 Review........-............................................................................................ Current Underlying Financial Performance......................................-..................-.-.-..-................. 18 Review Of Trusi's Classification And Valuation Of Fixed Assets.... .18 Financial Re8uIt.................................................................................................... .19 Balance Sheet.................................................................................................... .19 Going Concern.......................................................................-..-............................................... 19 Structure And Governance.. .20 Govern8n¢e ...................................................................................................... .20 M8n8gement.-.........-..-........-.-....................................-..............................................................22 Group Structure And Subsidiaries....... -22 Key Land Holdings And Heritage Assets...... -22 Publi¢ 8enelit Statement............................................................................... .23 PoLicie8 And Di$¢losures.......................................................................................... -23 Trustees. Responsibilities Statemenl -25 Statement Of Disclosure To Auditor..... -25 Independent Auditor's Report To The Members Of Portsmouth Historic Quarter Trust............................26 Financial Statements For The Year Ended 31 March 2025.....................................................................29 Notes To The Financial Staiements For The Year Ended 31 March 2025 . .32 -10 HQ TRUSTEES, EXECUTIVE AND ADVISORS CHARITY STATUS BANKERS Portsmouth Historic Quarter Trust is a private ¢omp8ny limited by guarantee and a registered charity. The Royal Bank of Scotland plc London Corporate Centre 62-63 Threadneedle Street London EC2R 8LA SOLICITORS M8cfarlanes LLP 20 Cursitor Street London EC4A 1 LT REGISTERED OFFICE 19 College Road HM Naval Base Portsmouth Hampshire P01 3U EXECUTIVE TEAM Hannah Prowse Ichief Executive) Neil Pearce IFinance Director) Blake Morgan LLP New Kings Court TolLg8te Chandler's Ford Ea$tleigh. Hampshire S053 3LJ AUDITOR Sumer Audit 53 Kents Road Southsea Hampshire P06 3HU DMH Stallard LLP 3rd Floor Origin One 108 High Street Crawley. West Sussex RH10 1BD INVESTMENT MANAGERS C8zenove Capital l London Wall Place London EC2Y5AU DIRECTORSAND TRUSTEES Helen Green Ilnterim Chairl Thomas Coles Mark Goulding Graham Morrison Re8r-Admiral Rex Cox Steve Pitt William Croser Tarek Teba Benjamin French Professor Virginia Gibson Jonathan Trice Simon Verdon PHQ_ LEGALAND ADMINISTRATIVE INFORMATION MESSAGE FROM OUR CHAIR -Thi$ report mark$ an excitingmile$tone. ourfirstye8runderournewname 8nd branding. OurnewnBme. Portsmouth Historic Quarter. betterreflects our commitment topreserringandpromotingourmaritime heritage andwelcomingpeople into ourpl8ce$, sp8ce$ 8nd$torie$. Ith8$ been inspiringto see newprojects bringthis vision to lrfe across oursites. Portsmouth Historic Dockyafdand Pfiddy s Hardin Gosport. Fmm the redevelopment ofa fullyaccessible theatre 8nd new visitor toilets at the Dockyard to the cre8tion of studios fora newcommunrtyof artists at Priddy's Hard. thisyear& initiatives havepreseTred. adaptedandimprovedourheritage for ourw5itors and communities. Ourstrategic partners on-site andacross the cty8nd$ector¢onts"nue topl8y8 Vrt81 role in our work. supportingthe ongoingpreseNation anddevelopmenrofourbuildings. boats. andwidersites. Through thoughtful $tew8rd$hip and long-termpl8nnin& we are $trNing to safeguard ourheritage forgenerations to come. I would tike to thank all those Tnjstees who have served$ndin p8rticularD8vid Butters who retiredas Chairlastyear-he skilfullyand adeptlyoversawsignificantchange andprogress duringhis tenure andhis insight will be missed. On beh81f of the 808rd 181$o w8nt to Ih8nk our Chief Eyecutwe. Hannah Prowse. and the entire PHQ team of st8ff and volunteers for their dedication, professionalism and imagination throughout th&ye8r. Their ¢ommitment. 81ongside the ènergyandgenerosityof our collaboratots and partners, ensures thatour heritage remains active, relevantand welcomingforall.- Helen Green Interim Chair MESSAGE FROM OUR CEO "Portsmouth Historic Quarteris transftjrmingourheritage andbringingit to lile. p￿se￿ing￿nd developing OUrh￿torie buildings andboats. creatingwelcomingand accessible opportunities forpeople to learn about and enjoyhi$tOry8ndcutture. 8ndengbb"ngnebw voice$ and untoldstories to be heard. Our t¢ams have worked rirelessly to keep oursires open. actNe andaccessible. We welcomedover 100,000 visitors to ourfree exhibitions. delivered 722 days of free pubb"¢ 8ctNitiés and8vents. andsaw thousands take to the wateraboardour historic vessels. rhe launch ofthe F8 Pride Project, createdin partnership w7th milit•ryLGBTQ+ eh8rityFighting With Pride. embodied our commitment to inclusion, usingheritage to spark national COnve￿ation andgenuine social imp8¢t. As the homeport ofherit8ge. we a￿ committed to supporting8ndamplfying the workofthe widerNaval tsmily, as celebratedin our VEDay80 eventandthe installats.on ofthe Royal N8Vy8nd Roy81 Mgrines Ch8fAtymemory t￿e. I'mgrateful to ourstaff, volunteers andpartners whose energy, ideas and cornmitmentbringherit8g8 to lifv in pr8Cti¢81. ggnemus ways. Together. we're ensuringthatPortsmouth Historic Quarterisn't just pre5eryed. butactNe. open and readyforthe 14rture." Hannah Prowse Chief Executive PHQ- MESSAGES FROM CHAIRAND CEO HQ TRUSTEES, REPORT OUR VISION Portsmouth Historic Quarter {PHQI is the charity responsible for caringfor and operating key heritage sites across Portsmouth Harbour, including PortsmoLrth Historic Dockyard 8nd Priddy's Hard. As custodians of historic buildings. boats and spaces in and around Portsmouth Harbour. we breathe new life into this Nav81 heritage. creating enew and vibrancy. ensuring that Ft is accessible for all. We are an ambitious and collaborative charity. We actively create and curate authentic, educational. sustainable and enjoyable places. experiences and opportunities. OUR STRATEGICAIMS PRESERVE Being active in the conservation. restoration and regeneration of import8nt assets and places which are at risk or under-Lrtilised DEVELOP Operating a sustainable charitywith 8 long-term vision and sufficient reseNes to intervene and make a difference EDUCATE Achieving and maintaining high standards in interpretation and education ENJOY Working with heritsge and other partners to develop and manage a y￿r1d class visitor destination centred on PortsmoLrth Historic Dockyard and developing a thriving and happy communityat Priddy's Hard OUR CHARITABLE PURPOSE Our Vision 8nd Strategic Aims are derNed from our Ch8ritable Purpose°the preservation of buildings, stTUCtures, vessels, docks and berths of national interest or architectural or historic interest or historically associated with His Majesty's Naval Base at Portsmouth and the protection and auEmentation of the 8menities of such buildings. structures. vessels, docks and berths and their surroundings for the public benefit includingfor the advancement of culture and the access to and enjoyment of the Naval Base buildings by the public for the purposes of education in naval history and other matters related to the Defence of the Realm." PHQ_TRUSTEES. REPORT- OUR VISION OUR IMPACTIN NUMBERS 75,582 122 DAYS OF FREE PUBLIC EVENTS & ACTIVITIES 3,683 FREE Trips on Our Operational Historic Craft Historic Quarter Passes FREE EXHIBITIONS OPENED OVER 100,000 £3,051,000 VISITS TO OUR FREE EXHIBITIONS 2,932 VOLUNTEER DAYS Invested in Conservation 7,000,000+ 667 HOURS OF STAFF TRAINING Total Audience 96 VOLUNTEERS PRIDE LANDING CRAFT VICTORY GATE RESTORED PHQ_TRUSTEES, REPORT-OUR IMPACT IN NUMBERS OUR WORK IN ACTION: PRESERVE Being active in the conservation. restoration and regeneration of important assets and places which are at risk or under-utilised This year we have invested E3.051.000 into the preservation and restoration of our heritage. REGENERATION PROJECTS We restore our heritage assets and establish new sustainable uses. ensuring their ongoing care and conservation for future generations. CARPENTERS. YARD With generous support from Arts Council England and the Foyle Foundation. we have restored Carpenters. Yard. a cluster of historic naval workshops at Priddy's Hard. to create nine arti$t$' studios. We stabilised and repaired building fabric. installed newwelfare facilities, and upgraded infrastiuctuie to improve environmental pertormance. including internal insulation, an air- source heat pump, and photovoltaic panels. Each studio has its own entrance. sink, and meter. with access to shared welfare facilities and the Landscaped public courtyard around which the studios are set. This £1.000.OOO+ project aims to support local artists at the start of their creative journey. provide the buildings with a long-term sustainable use and contribute to the ongoing regeneration of the wider Priddy's Hard area. Design work continued throughout the year, with specialist contractors appointed in March 2025 and onsite W￿rkS completed in November 2025. BOATHOUSE S Again investing in heritage-led cultur81 Tegeneration. oui refurbishment of Boathouse 5 has transformed a long-unused 6￿seater cinema into a fully equipped and accessible performance and rehearsal theatre space. The theatre complements the flexible main area within the Boathouse, which can accommodate larger pertOTmances. rehearsals and exhibitions. Design work began in Janu8ry2025. 8nd we completed ourworktothetheatre in October2025. We developed this project to provide local creative and cultural organisations with a low-cost. accessible multipurpose venue. and to offerthe recently displaced Groundlings Theatie Company ? new home within the Historic Dockyard. Groundlings Theatre is 8 community-focused theatre company based in Portsmouth. operated by the registered charity Groundlings Theatre Trsjst. Gioundlings will also deliver their popular drama school. engaging local young people with arts and culture. from Boathouse 5. Our in-house maintenance team carried out the full intern81 redecoration and refit. including upgrades to cabling, emergency lighting. and energy-efficient LED house lights. The stage and seating aieas were refloored. new seating installed, and a new performers, entrance and emergency exit lighting added. completingthe transformation into a small. functional theatre. PHQ_TRUSTEES, REPORT-OURWORK IN ACnON HQ This project brings an unused historic space back into active use, enhances the Dockyard offer. and reinforces our partnerships across the city. BUILT HERITAGE We continue to invest significantly in the ongoing care and maintenance of our historic buildings, ensuringthey remain safe. functional. and welcoming for visitors. tenants. staff and volunteers. This year, work ranged from roLrtine redecorations to specialist stone Tep81fS. Carried out variously by our in-house team and trusted contr8CtOTS. These projects protect the fabric of our historic estate. ensuringtheir ongoing use and viability. REPAIRAND MAINTENANCE STOREHOUSES9. 10 & 11: Delicate stone arch repairs were made across the three buildings. producing a high-quality finish that preseNes their architectural character. Storehouse 11 also received targeted repointingwhere mortarand brickwork had deteriorated. carried out alongside routine Tedecorations. BOATHOUSE 6: The auditorium air-conditioning system was replaced. providing compliant, reliable ventilation for both the auditorium and top-floor spaces. VICTORY GALLERY ROOF: Following a severe roof leak, our Maintenance Programme Manager engaged with NMRN curators to deliver targeted roof repairs. EXPLOSION MUSEUM: Lintel and glazing repairs addressed structural and weatherproofing issues. DOCKYARD LIGHTING: All site uplighters and lampposts were upgraded with energy- efficient. low-profile fittings. replacing outdated systems to improve efficiency and visitor experience. REFURBISHMENT AND REDECORATION BOATHOUSE 7 KITCHEN: The krtchen and food preparation areas were fully refurbished. including new flooring. wall plates. and gas-safe pipework and isolation units. BOATHOUSE 7 TOILET BLOCK.. The ladies'toilets in Boathouse 7were refurbished with timber and glazing repairs carried out simultaneously to protect the buildings. fabric. ARENA TOILETS: Repainting. flooring replacement, and plumbing and electrical improvements ensured these high-traffic visitor ta¢ilities remain fully functional and welcoming. BOATHOUSE 5: One ofthe mostvisible buildings asvisitors enterthe site benefited from a general redecoration. PHQ-TRUSTEES. REPORT-OURWORK INACTION HQ HISTORIC VESSELS Our collection of historic vessels comprises three operational vessels. available for events, trips and charters. ten boats exhibited and interpreted. five currently under Testoration and three 8waiting restoration. VOLUNTEER-LED WORKS Our skilled Boathouse4 volunteerteam.with guid8ncefrom our Shipwright &Workshop Manager, undertakes the majorityofourvessel conseryation work. Theirachievements include: Landing Craft FOXTROT8= Ourteam lifted this operational craft onto hardstanding in Boathouse 4 over the winter for antifouling and repainting. Maintenance included servicing ramp gear. fitting a new steel rope and wear patches. re-machiningfuel c8PS, and replacing all batteries. Pride colours were added as a vinyl wrap for the season. Victualling Inshore Craft IVICI 56: Volunteers installed a new gangway onVIC 56 and repainted the crew quarters deck head and aftexternalcabin sides. Seaplane Tender 1ST) 1502: Ourteam has carried out extensive repairs to ST 1502, addressing thetransom and lazarette. repairingareas ofdelaminating GRP. replacing 8 rotten frame. installing additional mooring hardware. and repainting and re-varnishing the vessel. Open Rowing Launch CYCLOPS= Received major structur8l8ttention. including repairs to the keel. installation of a new stem. and replacement ofthe stern post and stern shaft knee. The team also completed gravings to the hull planking, installed splines between seams. and replaced the quarter badges. Armed Steam Cutter {ASCI 26: Volunteersfinalised the stern shaft arrangement on ASC 26'Falmouth'. This full restoration project will be completed in 2026. GRP Whaler DANAE: Underwent comprehensive repair and refurbishment. including GRP hull repairs. repainting and antifouling. foredeck removal and remedi81 repairs, engine strip and rebuild. installation of a new samson post. sole b08rd repairs, bilge cleaning and recoating. and fitting of a new rubber rubrail. Steam Cutter438: External hullwas repainted and anlifouled. SPECIALIST WORKS Work$ from specialist providers and in-hou$e experts on our two operational power craft: Motor Gun Boat IMGB 81)= Received a full professional repaint by Berthon. This was a signrficant expense but essential for long-term preservation. A winter service programme included full servicing of all three engines. hull lift and antifoul. and ongoing maintenance such as repair5 to navigation lighting. storm-damaged fairlead. and engine room fans. High Speed Launch (HSLI 102: Also fully repainted by Berthon as part of its preservation programme. Centre engine cardan shaft and universaljoint replaced. Winter service covered full engine servicing. hull lift and antifoul. and general maintenance including engine anode renewaland flag stay replacement. PHQ_TRUSTEES'REPORT-OURWORK INACTION HQ OUR WORK IN ACTION: EDUCATE & ENJOY Achieving and maintaining high standards in interpretation and education Working with heritage and otherpartners to develop and manage a world class visitor destination centred on Portsmouth Historic Dockyard and developinga thriving and happy community at Priddy's Hard ENHANCING OURVISITOR DESTINATION NEW SITE TOILErs Until recently. vi$itOTS to Portsmouth Historic Dockyard had to walk upstairs in Boathouse 4 or through the Boathouse 7 restaurant to find facilities. Now. we have installed brand-new toilets at the front of Boathouse 5, within sight of the Dockyard entrance. making finding and accessing the facilities easier for everyone. The spacious new toilet block was designed to accommodate the diverse needs of our visitors. It includes a dedicated baby change and a separate nursing room as well as facilities for visitors with disabilities. In partnership with the Portsmouth Royal Dockyard Historical Trust. we have turned the walls into a celebration of local history. Archive photographs. stories. and objects bring the Dockyard's past to life in the facility. Works began injanuary 2025- the newfacilities openedtothe public in May 2025. Thetoilet blo¢khas since been gr8nted°Platinum° st8tus atthe"2025 Loo of theYearAwards": FREE-ENTRY EXHIBITIONS SHE SEES In August 2024 we launched the SHE_SEES exhibition in Boathouse 4. Developed by the UK- based global safety and education charity Lloyd'$ Register Foundation and premiered at London International Shippingweek. SHE_SEES celebrate$ the often-overlooked contributions of women across the maritime world. Presented in partnership with the University of Portsmouth. the exhibition will remains on display in the Dockyard. Drawng on archive materials from 8cross the UK and Ireland. it uncovers trailblazing female voices in the maritime industry and challenges the sector to build a more inclusive tutUTe. A programme of tours. talks and activities led by PHQ. Dr Mel Bassett of the University of Portsmouth. and photographer Emilie Sandy, accompaniesthe exhibition, offering a deeper insight into the stories behind SHE_SEES. This has included International Women's Day Adult Workshops, children'gworkshopg. and v4elcomingvisitors to leam more on tours as part of Heritage Open Days 2024. PHQ_TRUSTEES. REPORT-OURWORKIN ACTION 10 LANDSCAPE ARTISTOFTHE YEAR In July 2024, we hosted Landscape Artist of the Year at Portsmouth Historic Dockyard. welcoming the Sky Arts production team to film on site over four days. Local people and visitors were able to get up close to the artists and watch as they captured theirviews of HMS Warrior in a timed painting challenge. The episode aired on Sty Arts in March 2025 and. to celebrate the broadcast we staged a free- entry public exhibition of the artists. paintings in the Porter's Lodge opposite HMS Warrior. enabling visitors to see the artworks alongside the vessel that inspired them. MY DOG SIGHS: WE SHELTER HERE. SoM￿lMEs In June 2024. Storehouse 9 at Portsmouth Historic Dockyard hosted We ShelterHere. Sometimes. 8 free-entry public exhibition by local artist My Dog Sighs. The show featured new work alongside selected pieces from his 2021 Inside project. offering visitors a window into his creative process over the past two years. The exhibition was accompanied bythe premiere of a feature-length document8ry ofthe same name, directed by Paul Gonella. which captured the making of the work and provided further insight into the artist's journey. The exhibition and film were free to the public. reflecting our commttment to making creative experiences accessible and engaging for our visitors and local communities. SPATIAL FRAGMENTS In April 2024 we hosted Spati81 Fragments. a free-entry public exhibition responding to Storehouse 9. by 8rtigts Pippa Ch8riesworth and Sally Tyrie. Supported through the Sustainable Conservation Trust's Crafted by SCT initiative, the project recorded and responded to the architectur81 featufes. objects and stories of the storehouse 8head of its redevelopment, using printmaking. drawing. sculpture. book art 8nd installation to capture a sense of place. FREE-ENTRY EVENTS PONTOON OPEN WEEKENDS From Mayto October2024, on the lastweekend ofeach month, the Boathouse 4 pontoon opened to the public. offering a unique opportunity to explore our operational historic craft. On Pontoon Open Days. visitors are invited to join guided tours led by knowledgeable volunteers, and to step aboard ourvessels. including Secondworid War power boats MGB81 and HSL102. POSE In October 2024, we participated in the Portsmouth Open Studios Event IPOSE). organised by CityArts Portsmouth CIC and held across the cityforthefirst time since 2019. Theweekend invited visitors to explore creatrvity across Portsmouth. as artists opened their studios and transformed unexpected spaces into temporarygalleries and v￿rkshops. In our ongoing PHQ-TRUSTEES. REPORT-OURWORK INACTION 11 HQ collaboration ￿th the city's creative communities. we provided space in Storehouse 9, the Old Pay Office. and Porter's Lodge for artists to exhibit their work. HISTORIC VESSELS IN ACTION PUBLIC ACCESS Between March and November 2024, more than 3.CM)O visitor5 experienced Portsmouth Historic Dockyard from the water aboard our Falklands veteran landing ¢r8ft. Foxtrot 8 IF81. The 20- minute trips ran up to five times each day and were priced at £10 per person to b818nce maximum accessibility with rneeting running costs. Beyond the DOe￿ard. ourvessels. staff, and volunteers brought the experience to wider audiences at various external events. In May 2024 this included MGB81 and F8 attending the Gosport Marine Festival, an annual free event celebrating the town's maritime heritage and culture. F8 trips operated throughout the day. sharing our historie vessels at their best with the local community. Operationalvessels F8. MGB81 and HSL102also attended the Southampton International Boat Show in September 2024. Our teams enjoyed chatting with attendees. and more than 450 people took the opportunity to get out on the water aboard ourvessels. CEREMONIAL AND SUPPORT On 23 May 2024. crewed by staff and volunteers. MGB81 and CMB4R were inspected by HRH Princess Royal, as they participated in the Homet Setvices Sailing Club's 60th Anniversary event. On 4 June 2024. HSL102 8nd MGB81 joined a flotilla of historic and active warships escorting the Mont St Michelferry89 she departed Portsmouth Harbour. corrying D-Dayveter8ns and a commemorative torch from the CommonY4ealth War Graves Commission. An RAF A400 performed a close-quarters flypast. while well-wishers lined the harbour on both sides to see the flotilla and mark the occasion. VOLUNTEER COMMUNITY Our Volunteer Mess continueg to provide a welcoming space for both the Boathouse 4 and Porter's Garden teams. Likewise, the Porter's Garden volunteers have worked tirelessly to keep the E8rdens looking their bestthroughoutthe year. thi5yearwith greater engagement and supportfrom PHQ staff. One of the team, V81erie, reflected on the group's volunteering experience.. -we are a good example of how volunteering brings people together- forming friendships. social outings, learning new skills, improving wellbeing and much more". PHQ and the Mary RoseTnJstjoined forces to hostthe 2025Volunteers'Tea Party, bringing together some 100 volunteers from across both organisations. It was a chance to Share thanks. celebrate achievements. and strengthen connections across the Dockyard's widervolunteer community. PHQ_TRUSTEES'REPORT-OURWORK IN ACTION 12 HQ PRIDDY'S HARD CREATIVE COMMUNITY Working with Arts Council England, have developed 8 Curatorial Strategyfor the upcoming artiSts' studios at Carpenters, Yard. The strategy prioritises artists whose participation will contribute to a vibrant. welcoming. and inclusive creative community at Carpenters, Yard. with a strongfocus on collaboration, public engagement. and participation in events and outreach projects. F8 PRIDE PROJECT In Spring 2025. we partnered wth Fighting Wrth Pride, a charity led by LGBTQ+ veterans. to transform Landing Craft F8 with a bold Pride-inspired wrap. marking 25 years since the lifting of the ban on LGBTQ+ personnel serwing openly in the UK Armed Forces and Portsrnouth's year as the UK City of Pride. Until 2000, LGBTQ+ personnel faced dismissal. investigations. and the loss of honours. yet many seNed with courage while forced to hide their identities. F8. a significant piece of Falklands history and a symbol of courage. sacrrfice. and serwice. became a floating tribute to all who seNed, includingthoseforced to serve in silence. Thetemporary rainbowwrap, designed by artist Angela Chick, drew on the original Gilbert Baker 1978 eight-colour Pride flag as well as military rhythms and dazzle ¢amoufLage. Launched publicly in May 2025. the wrap made F8 a striking presence in Portsmouth. the official home of Pridefor2025. The wrap drew nation818ttention through more than 80 pieces of media coverage. including coverage on radio, television and in five national newspapers. The project's visibility encouTaEed LGBTQ+ veterans to contact Fiehtingwith Pride for support, helping turn recognition into tangible impact. In the month followingthe launch. the charity reported a 94% rise in new veterans Teaching out. PHQ_TRUSTEES, REPORT-OURWORK IN ACTION 13 HQ OUR WORK IN ACTION: DEVELOP Operatinga sustainable charity with a long-term vision and suffi'cient reseryes to intervene and make a difference INVESTING IN OUR PEOPLE We continue to invest in our staff. trustees and volunteers. building capability and confidence across our teams to support delivery of our strategic aims and vision. From April 2024 to March 2025. our 35 members of staff undertook 667 hours of training, including 24 courses and workshops delbvered by external providers. FollowinE the introduction ot our new training plattonn 8t the end of March 2025. our staff have already completed a further 333 modules and 160 hours oftraining. In November 2024. local legal tirm Blake Morgan delivered a full day's training session for our Board of Trustees 8nd executtve team. The session focused on trustees, duties and li8biltties. Charitycommission guidance and compliance. 8nd considered the potential impact of legislative changes on charitable organisations. Our volunteers have developed their skills and knowledge through peer-to-peer mentoring and professional guidance as well as formal training. All Boathouse 4 volunteers receive in-house machine shop training. and two individuals are now trained and certified to operate our gantry cranes. Ourteams'wellbeing matters as much agtheirskilis. Our staff nowenjoy 8 standing invitation to join our green-tingered volunteer team for up to two working hours each week. caring ior the Porters. Garden. The sessions provide time outdoors. a break from desks. and the chance to connect with colleagues and volunteers. w4th no gardening experience required. INVESTING IN OUR INFRASTRUCTURE We continue to strengthen the systems and tools that underpin our work. In this financialyear. we introduced two key digital platforms: The iHagCO training plattorm. introduced in March 2025. enables us to tailor training profiles to specific job roles and individual needs. supported by a broad and flexible library of courses. Its reporting tools allow us to monitor participation and drNe learner engagement. We are also able to expand and adapt our training offer without additional cost as our needs evolve. In january 2025, we began implementingvolunteer Impact (Better Imp8CtI to streamlinethe administration of our volunteer programme. The plarform includes management tools for recruitment, onboarding. scheduling. and training, offering a significant improvement on previous manual processes. Initially introduced as 8 volunteer database. it will continue to expand in function over the coming year. helping us to reduce administrative workload and strengthen volunteer engagement. PHQ_TRUSTEES'REPORT-OURWORK INACTION 14 HQ PARTNERSHIPS AND STAKEHOLDERS We continue to strengthen our collaboration with onsite partners. the Nation81 Museum of the Royal Navy and the Mary Rose Trust. Quarterly meetings of Chairs and CEOS. aswell asTrLtstees and CEOS. alongwith monthly CEO catch-ups, support and develop this partnership. We have also established a staff working group. with representatives from all three trusts. to develop plans for shared onsite events. We actively supportthe Portsmouth Royal DOc￿ard HistoricalTrust. helpingto PTeserve the industrial history of the fomier Royal Dockyard and maintain the Dockyard Apprentice Exhibition. We supported the Royal Navy and Royal Marines Charity in cre8tingthe Heartof Oak Memory Tree at Portsmouth Historic Dockyard. The sculpture. installed near HMS Victory. honours the seNice and sacrifice of the Naval family. Supporting inttiatives that celebrate and care for the Naval community is an important part of ourvlork. and we are proud to have helped bringthis meaningful project to life. We also work c105elywith a wde range ot charities and stakeholders. including the Royal Navy. the Royal Natryand Roy81 Marines charity.the National Lottery Heritage Fund, Arts Council England. the Foyle Foundation. Crying Out Loud. Groundlings Theatre Trust, Lloyd's of London. the Ministry of Defence. Historic England. Portsmouth City Council. Gosport Borough Council. the Coastal Forces Heritage Trust. National Historic Ships. the Universtty of Portsmouth. Shaping Portsmouth. Portsmouth Creates. the Association of Sail Training Organis8tions. Sustainable Conservation Trust. and Veterans Outreach Support. ACCOLADES National Historic Ships Awards 2024:"CMB 4R-our replica of Coastal Motor Boat CM84. was awarded Highly Commended in the Martyn Heighton Award for Excellence in Maritime Conservation. Gosport Business Awards 2024: Highlycommended runner-up in the Best Use of Heritage in Business categoryforthe conversion and operation ofthe Shifting House at Priddy's Hard into Adventure Prospect. PHQ_TRUSTEES, REPORT-OURWORK INACTION 15 HQ LOOKING AHEAD ACTIVITY SINCE YEAR END BOATHOUSE 4WELCOME Visitors entering Boathouse 4 are now greeted by a clear. welcoming entrance that reflects both the activity inside and the building's history. The redesign. developed by Sama Creatives and constructed by our own in-house team. includes angled walls that mirror the roofline. a purpose-built retail area. and interpretation panels explainingwhat visitors can see and offering a brief history of the building. A large screen shares footage of our boats afloat and the boathouse in use. The new entrance. completed in July 2025. offers a strongerwelcome to those approaching the building's big blue doors. It improves circulation. highlights our brand. and provides clearer orientation 8nd interpretation for ourvisitors. VE DAY 80 On 10 May 2025, marked the 80th annrversary ofVE Daywith a full day of free public activities in Portsmouth Historic Dockyard. We dressed the srte in bunting and offered lindy hop lessons, live performances from The Charlalas. a Powder Monkey pop-up bar. a helter skelter, 8nd a Royal Navy& Royal Marine$ Charity St8nd. aswellas ticketed boattripsfrom Boathouse 4 pontoons. Four Second World Warveterans joined the celebrations with their families, enjoying a ride on MGB81 and lunch in Boathouge4. A public Q&A gesgion offered visitors the rare opportunityto hear first-hand from the veterans, who generously shared their own stories and recollections. including reflections on VE Day itself. Sunnyweather enhanced the vibrant atmosphere. with a full car park. strong sales across catering outlets, and glowing feedback from both partners and visitors. PLANS FOR FUTURE PERIODS In 2026 we will build on the momentum of the pastyear. continuingto invest in our heritage. strengthen our partnerships. and create new opportunities for people to experience Portgmouth Historic Quarter as a vibrant cultural destination. At the Doctyard. we will develop plans for an improved catering offer. expand our evening events and performance programme. and test newapproachesto activating public spaces across the site. With the the8tre now oper8tion81 in Boathouse 5 and an evolving calendar of creative activity, our aim is to ultimately estsblish the Quarter as a lively evening destination as well as a daytime one. At Priddy's Hard, work at Carpenters. Yard W￿rkS vlere completed in November 2025. We have already let five studios and started to establish a thriving community of artists on site. The new PHQTRUSTEES, REPORT- LOOKINGAHEAD 16 landscaped courtyard will create a Y￿[COMIng shared space for artists, visitors and the wider community. Restoration and maintenance will remain a priorty across our sites. Following a generous donation. the Green Parrot will be restored. alongside projects on ASC 26. ST1502. Cyclops, and the Special Operations Dory. At Priddy's Hard and the Dockyard. Y￿ will continue to deliver our survey-informed, carefully costed and well-planned maintenance programme. We will also undertake essential repairs to the sea wall at Priddy's Hard. We are also preparing the next stages of our sustainability strategy. exploring the feasibility of solar inst811ations and further measures to reduce the environmental impact of our estate. Togetherwith the National Museum ofthe Royal Navy and the Mary RoseTrust. we will continue to refine a shared vision for the Dockyard and the wider Historic Quarter. Finally. we will continue the development of our digital infrastructure. expanding the new volunteer management and training plattorms introduced this year. strengthening the systems that support our teams. visitors. and partners. PHQTRUSTEES'REPORT- LOOKING AHEAO 17 HQ FINANCIAL REVIEW CURRENT UNDERLYING FINANCIAL PERFORMANCE The Trustees monitor current operational performance by focussing on its unrestricted surplus before depreciation. impairment. disposals. irwestment portfolio returns and tax-this is highlighted in the Statement of financial activities. PHQ'S underlyingfin8ncial pertormance has remained stsble. In the yearended 31 March 2025 PHQ reported such a surplus of £393.00012024 as restated: £427,000> and on the same basis a surplus after taking account of restricted activities of £378.00012024 as restated-. £359,0001- Whilst there was a drop in wsitor related income this was offset to a large extent by an increas8 in rental income. SeNice charge income and expenditure was also greater than in 2024 due to renovation and preseryation projects. These are pass through costs from which no surplus is derived. Support expersditure has remained stable given the increase in income. REVIEW OF TRUST'S CLASSIFICATION AND VALUATION OF FIXED ASSETS In last year's financial statements a number of steps were taken to rationalise the Trust's approach to accounting for its fixed assets. TY40 key matters remained to be resolved. The Trustees continued to reviewthe presentation of its assets. In p8rticu18r there w8s concern about how the Trust's heritage assets were presented. The Trust has always accounted for the original donated assets at £Nil value. In 2008 it adopted FRS30 accounting foi heritage assets and continued to do so. On the implementation of FRS102 the costs associated with renovation and improvements were transferred to heritage assets from non-heritage assets and it was also noted that there was an inconsistent treatment ot an heritage asset of the same class in one of the Trust's subsidiaries. The review found that within heritage assets the costs capitalised did not meet the criteri8 which would reasonably be expected of such an asset-for instance new stairwells. air conditioning and other rnodernisation works. The review has concluded that this presentation could lead users of the financial statements to have the impression that the hertt8ge part of the asset had value. The Trustees wish to be completelytransp8rent in the way PHQ presents the value of its assets and have taken the decision to reanalyse assets previously classified as heritage as propety plant and equipment. There is no financial impact of this restatement to PHQ'S net assets and the transfer has been accounted for as a prior year adjustment. Moreover the Trustees considered that. due to the nature of its fixed assets and the obligations which the Trust faces as their custodian. whether they should considerthe need for an impairment review together with an alignment of depreciation rates on similar asset types. This was because the review found that. incrementally over many years. expenditure on refurbishment. repairs, improvements and augmentation h8d been e8Pitalised on various buildings. Although this was in accordance wrth FRS102 and its predecessor accounting PHQTRUSTEES'REPORT- FINANCIAL REVIEW 18 HQ standards the review found that this had resulted in a cumulative tot81 value which could be Ereater than the undeTlyingvalue of the assets in question. The Trustees therefore considered that there was sufficient evidence and indicators to require the need to test the assets for an impairment in value as at 31 March 2025. The alignment of depreciation rates resulted in the annual depreciation charge of £1.145.000 12024= É666.000) and is expected lo continue 8t a similar Tate in future years. The impairment test which was performed in accordance %•ath FRS102 value in use methodology resulted in a charge in the year of £4.750.000. The Trugt is currently undertaking its five year review of future maintenance requirements of its portfolio which might impact impairment levels in future years. FINANCIAL RESULT The unrestricted surplus forthe year was £631,00012024 as restated: £278.0001. There was a one-off benefit in the year of £299.000 as the deferred tax provision was released due to the remoteness of crystallisation. Once legacy project charges including increased depreciation and impairment charges are included PHQ reported a consolidated deficit of £5.227,00012024 as restated: deficit £1.212.000)- BALANCE SHEET In 2022 the net assets of PHQ were reported ot morethan £26.000.000. As a result ofthe research and reviews performed during2024 and 2025 theTrustees believe th8tthe 2025 presentation and valuation of those assets is significantly clearer and much more representative of their true value. In the year the net assets of PHQ h8ve been impacted by the review of PHQ'S heritage asset5 and Y￿re £17.332.000 at 31 March 202512024 as restated: £22,559.01)01. The reduction does not impact the cash position nor financial strength of PHQ. GOING CONCERN The linanci81 statements have been prepared on the going concern basis. The Trustees have onsidered the level of funds held and expected income and expenditure for 12 months from the date these fin8nci81 statements were approved vthich show sufficient leve15 of funds for PHQ. PHQ TRUSTEES, REPORT- FINANCIAL REVIEW 19 HQ STRUCTUREAND GOVERNANCE GOVERNANCE We 8re governed by our Articles and Memorandum of Association. The list below ¢omprises the Trustees who seNed duringthe financialyear. alongwf(h anychanges up tothe date ofthis report. TRUSTEES AND DIRECTORS Paul Bennett (resigned 28 March 20251 Helen Green Ilnterim Chairtrom 8 August 2025) David 8Lrtters (Chair to 31 March 2025. resigned 14 July 20251 Graham Morrison (appointed 1 November 2024) Roger Ching Iretired 30 June 20241 Thomas Coles (appointed 1 October 20241 Robert Palmer Iresigned 3 September 20251 Re8rAdmir81 Rex Cox CB Cmmar Steve Pitt William Croser (appointed l January 20261 Robert Robson (appointed l November 2024. Chair from 1 April 2025 to 7 August 2025. resigned 7 August 2025) Henry Flint (resigned 2 September 20251 Benjamin French TarekTeba Professor Virginia Gibson Jonathan Trice {appointed 1 January 20261 ma￿ Goulding (appointed 1 January20261 Simon Verdon COMMIThEES PHQ operates various committees. each focusing on specrfic areas in line with their respective terms of Teference. Approval of all annual bu(Jgets. budget revisions. and non-budgeted expenditure remains the responsibility of the Board. Operational matters within approved str8tegies and budgets are managed by the executive, with support. oversight and scrutiny provided by both the committees andthe Board. As noted in the 2024 Annual Report. in Autumn 2024 V￿ reviewed our committees and restructured them to align more closely with our strategic aims. the pillars guiding our work. The new committee structure was implemented on 1 January 2025 and each one meets quarterly. Each committee comprises at leastthreeTrustees and is attended bythe CEO. Finance Director and relevant members ofstaff. The remits. mernbers and reporting lines ofthe new committees are outlined overleaf. PHQ_TRUSTEES. REPORT- STRUCTUREAND GOVERNANCE 20 PRESERVE DEVELOP To oversee the maintenance of OUT existing assets (buildings, infrastructure, boats) ensuring that PHQ'S funds are appropriately deployed. that the quality of the y￿rk is suitable. and effort is prioritised and timely. To take a future looking perspecttve on the wayinwhich PHQ is movingforward including the review of the core and supporting strategies. the identification and securingoffunds. the development and managementof major capital projects. and reviewing any potential acquisitions. Members are Simon Verdon (Chair). Rear Admiral Rex Cox. Ben French, Mark Goulding. Graham Morrison. TarekTeba. Jonathan Trice. Mernbers are Helen Green Ilnterim Chairl, Tom Coles. RearAdmiral Rex Cox, William Croser. Graham Morrison. Jonathan Trice. Reports to Board. also submitting relevant issues to Finance and Resources Committee for review. Reports to Board. also submitting relevant issues to Finance and Resources Committee for review. EDUCATE AND ENJOY FINANCE AND RESOURCES To oversee PHQ'S extemal image and reputation, its relationships with the wide range ot stakeholders, and supporting the attraction of a more diverse set of visitors. To oversee all aspects of the customer experience including inte￿retatIOn and wayfinding,. the facilities, attractions and volunteering opportunities available: and all events. To provide effective financial governarbce of PHQ and tts subsidiaries including its financial reporting, budgeting. project cost reporting. the statutory annual report and accounts and the charity's auditors. To provide a risk assurance function to ensure there is adequate and effective risk management. To oversee the strategy and ongoing implementation of key operational functions including health and safety. human resources and IT. Members are Professor Virginia Gibson (Chairl. Ben French, Tom Coles, Mark Goulding, Steve Pitt, TarekTeba. Members are Helen Green {Interim Chairl. William Croser. Professor Virginia Gibson. Simon Verdon. Reports to Board, also submitting relevant issues to Finance and Resources Committee for review. Reports to Board. TRUSTEE REMUNERATION AND APPOINTMENTS During the year, we remunerated Trustees in line with our Memorandum of Association and with the Charity Commission's approval. We have clear procedures for selectingTrustee$. Portsmouth Cty Council can nominate up to two Trustees. and Historic England maynominate one- we recrutt 8nd appointothers to ensure that our Board has the right mix of skills. experience and expertise to deliver our strategic aims. PHQ_TRUSTEES, REPORT-STRUCTURE AND GOVERNANCE 21 New Trustees recetve an induction pack and guidance from the Chair and fellow Trustees. and we 8rrange formal training when needed. delivered by relevant Specialists. including our Solicitors. Trustee liabibty is limited by guarantee to £1 each. MANAGEMENT The day-to-day management of PHQ is led bythe Chief ExecutNe, supported bythe Senior Management Team. under authority delegated to the executive by the Board of Trustees. We remunerate our staff in line with established policies and procedures. which we review 8nnu811yas part of a wider assessment of staff performance and market rates. Any recommended adjustments are proposed bythe Senior ManagementTeam and require8pproval from the Trusteeswa the Finance and Resources Committee and ultimately bythe Board. GROUP STRUCTURE AND SUBSIDIARIES PHQ'S subsidiarycompanies are allwhollyowned. and 8lldirectors areTrustees of PHQ. None ofthe subsidiary companies employs anystaff. Decisions ofthe Board ofeach company are taken within meetings ofPHQ's 808rd and committees. Each has its own annual general meeting. KEY LAND HOLDINGSAND HERITAGE ASSETS PHQ was established in 1985 by the Ministryof Defence (MODI. English Heritage {now Historic England), and Portsmouth City Council (PCC) to take on surplus land and buildings of historic significance within His Majesty's Naval Base at Portsmouth. Our properties support the charity's objectives ty preserving historic buildings. enabling public access, and generating incometo fund ourwork. HOLDING TENURE COMMENTS Heritage Quarter of HM N8v81 Base 99-year lease Most buildings have been renovated and brought granted in 1988 by into beneficial use. Sub-let premises include a the MOD mixture of market rents. vthich support our charitable purpose, and concessionary agreements in support of other charities. AdmiraltyQuarter Freehold acquired A site redeveloped into apartments. PHQ retains in 1990 thefreehold and derNes incometrom ground rents, retail lettings. and car park charges. all of which support our charitable purpose. PHQ-TRUSTEES. REPORT-STRUCTUREAND GOVERNANCE 22 HQ HOLDING TENURE COMMENTS Priddy's Hard. Gosport Freehold acquired Afomer n8V81ordnance depotcomprising in 2009 numerous historic buildings and ramparts. designated as a scheduled ancient monument. Sub-let premises are let on a mixture of market rents supporting our charitable purpose. Regeneration of this area continues. Priddy's Hard-open 125-year lease Land granted in 2014 Open land immediatelyto the northwestofthe freehold Property. used as overflowcar parkand as 8 buffer between the historic site and future commercial development. Number2 Dock 9￿year lease granted in 2012 by the MOD Berth tor HMS Wictory. South Office Block. Bay 1 of the Ropery. Storehouse 12and HMSVictory Starboard Arena Leases granted in 2018 bythe MOD. co-terminus with the main HMS Currently let to the National Museum of the Royal Navyas office space. Victory 1988 lease Where possible. we aim to balance presen4ation with public access and responsible regeneration. ensuringthat our properties continueto deliver benefitforthe community. PUBLIC BENEFIT STATEMENT The Trustees have had regard to the Charity Commission's Euidance on public benefit. POLICIESAND DISCLOSURES PRINCIPAL RISKS AND UNCERTAINTIESAND MANAGEMENT OF RISK A comprehensive risk register identifies each rigk and its likely impact on PHQ'S affairs. PHQ reviews its principal risks and the risk register on a quarterly basis through itg Finance and Resource Committee which advises the Board. The Trustees confirm that they have reviewed the major risks PHQfaces and thatsystems and procedures have been established to manage those risks where appropriate. PHQ_TRUSTEES, REPORT- STRUCTUREAND GOVERNANCE 23 The most significant risks identrfied for the forthcoming period reL8te to financial sustainability. and are summarised below. Stakeholder management: PHQ is one ofa numberoforganisationswhich reside and operate in HM Naval 8ase- these include the Royal Na￿Y and major visitor attractions such as the National Museum ofihe Royal Na¥y andthe Mary Rose. All organisations are reliant onthetrust and co- operation of each other. PHQ, especially in the current uncertain environment. is in constant dialogue with these stakeholders to ensure that it can deliver on its objectives in a way which is positive to 811. Inflationary Pressures: The rising cost base. which cannot be fully passed on to visitors, presents a risk to financial stability. One third of PHQ income is derived from visitors. It monitors visitor numbers closely and rnakes appropriate adjustment to spend as required. Rent81 voids: Whilst many of PHQ'S tenants are on long term leases a proportion are on shorter term leases and licences to occupy. There is a risk in the current economic environment that void rates could increase. PHQ mrtigates this risk by reviewing outstanding rents closely and is in regular contact with all tenants. FUNDS POLICY PHQ sets aside funds to provide both financial stability and the fin8nci81 means by which it can deliver and develop its charitable activities. PHQ'S actmties from time to time include substantial investments in capital projects and restorative maintenance so the Trustees accept that the level of funds will significantly fluctuate year on year. Where funds are set aside for future ch8ritable actmties. whether capital or operational expenditure, PHQ classifies these as designated funds. The current designated funds represent funds set aside for budgeted projects duringthe current and next financi8lyear. PHQ intends to maintain unrestricted designated funds representing at least six months ot core cogts. These funds have been classified 8S the Protected fund and is currently set at £900.000 which is as intended. Unrestricted funds surplus to this amount are 8V8i18ble to either designate for future projects or spend in accordance with the annual budget. INVESTMENT POWERS AND POLICY PHQ delegates the day-to-day responsibilityfor its investment portfolio to its investment manager and has relied upon the experience and expertise ofthe investment manager to deliver a balaneed 8nd diversrfied porttoLioth8twU create an appropriate annual income and generate apital growth to meet the investment objective. PHQ'S investment m8nager is Cazenove C8PIt81. a member otthe Schroders Group and investments have been made in its managed Sustainable Multi-Asset Fund. PHQ has an investment policy approved bythe board which sets out how PHQ balances requirements tor cash reseNes. liquidity and investment returns against risk. The financial objective for the investment portlolio is to at least maintain the overall real value of its assets whilst not taking undue risk. PHQ'S ambition is to be at the forefront of responsible investment practice and believes that taking account of environmental. social and governance issues is 8n intrinsic part of being a good long-term investor. for both ethic81 and financial reasons. PHQ_TRUSTEES. REPORT- STRUCTLIRE AND GOVERNANCE 24 TRUSTEES, RESPONSIBILITIES STATEMENT Company Law requires the Trustees. vtho are also the Directors, to prepare financial $t8tements for each financialyear which give a true and fair view of the state of affairs of the charitable Trust and of the Group. and of the incoming resources and application of those resources, including income and expenditure of the charitable group for that period. In preparing those financial statements, the Trustees are required to= select suitable accounting policies and then apply them consistently: observe the methods and principles in the Charities, SORP- make judgements and estimatesthat are reasonable and prudent. state whether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements- and prepare the financial statements on the going concern basis unless it is inappropriate to presume thatthe groupwillcontinue in business. The Trustees 8re responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial posttion of the charitable Trust and Group. which enables them to ensure that the financial statements comply with the Companies, Act 2006. They are also responsible for s8feEuaidingthe assets of the charitable Trust and Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and for the maintenance and integrity of the corporate and financial information included on PHQ'S website. STATEMENT OF DISCLOSURE TO AUDITOR The Trustees confirm that= so far as the Trustees are aware. there is no relevant audit information of which PHQ'S auditors are unaware- and they have taken all reasonable steps that theyoughtto have taken as Trustees in order to make themselves aware ofany relevant audit information and to establish that PHQ'S auditors are aware of that information. PHQ maintains profession81 indemnity insurance for the Trustees. Approved by the Board of Trustees on 9 January 2026 and signed on its behalf by- H•ion Grnon Inlerirn ChwT PHQ_TRUSTEES, REPORT- STRUCTUREAND GOVERNANCE 25 INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF PORTSMOUTH HISTORIC QUARTER TRUST OPINION We have audited the financi31 statements ot PonsmouLh Historic Quartei Trust Ithe.c￿r1ty'? and Its Subsidiaries Ilhe group'l loi the year anded 31 M*¢h2025whith¢(Wrisott*¢ty￿o1v￿ st8¢￿¢(￿￿￿￿1￿lmt￿l￿thtycon5o￿datsd ilGLvDe *¥lexk*nthtwe attolinii.thecon$obdaiedW•n¢esW￿¢hWi￿bal￿$wtrtC¢Y*1knjth8￿tyThefir￿f¢a$hlitht *Slhetei•tedThye$totht preparati￿ls8￿p￿.C￿*lawa￿ KiryJLvnkc¢knDw&arwJard& wlA￿j￿1FW￿wK¥a1R4￿thr¥S1a￿lard 102Th8 Fn8r*k1l￿pD[tir si¥thvd appts"¢•Neints UK¥KI Rep•￿011￿$1*￿YIi￿I¢K￿d(￿￿G*￿auyACwtedk¢(yJntyW￿￿xtt¢1. *•tW8 ￿l￿¥￿01th881¥eCrttheWAVwd p￿￿1(*￿rt•￿8 ¢(*np8rrf8afiaw$8$at31 2025 I￿Of¢S1r￿on sout¢es8rKl8ppbC8b￿ ofwww9.trxthe￿Wtr*n¥WJ￿J." BASIS FOROPINION derthose 5tsndardsarefUrther¢Jex￿bed intr￿￿O￿5￿SP￿5hkn￿thea￿))t0llhernanCwI5tarern￿[S Sec*0￿ otLWI rw.we 8reind8perNIentofthe¢harityn8wd￿e￿thtt*ol￿¢•itwjwwWrtSth•I¥T¥[¢￿￿rtt0CYY￿*lrf 01thefpw￿k11sts¢ementsln ¢beUK includrytheFRC4EthKalStand¥d.andv￿haIefj￿fthd c4wotherethlcal￿p￿Skn￿ inxc0rdance%*iihtP*seiequ￿￿1s.We CONCLUSIONS RELATING TO GOING CONCERN In audMnithelinancki1 Statern￿ts,Vl2ha¥eC0￿I￿dtrJ tt4tthetrii5tee5.use￿￿S￿eI7ncemb￿5rI4cCC￿1tW*Irythe preparation of thefinaTKial 5tatemeDtsis wkYopri*e. collqctrRty. mayca* 5WthCanrd￿Onthe￿ar￿￿sal￿r0c(￿￿EaSas￿cLYKe￿lDrIp￿1[lj0t0tleasitr￿TTvJnth5fr0m4*t Ourrespon5ibilme5 andthefe5pons*Atiiksof the 1n￿eeSwrthreSpectI0kj￿geoTrCern aIede5uth&#intherei￿arn1 sections of this reparL OTHER INFORMATION doe$not¢owtheothu infr*m8bon ￿%*4y0￿￿*t$$•tyl￿mof¥sX￿￿QCr￿WE￿￿thff[effi. Ow resmiiwi8io￿￿ the other obtained ￿ttl*¢0Ur3eQf1he￿WJff. orother*￿a￿**￿51ober￿arerHltylIWSSt9ted. It¥￿ m￿£￿allr￿)n¥I5fenG￿S0Ia￿a￿nt themselves. If, basedon the¥*￿rkwèhM pert￿rr￿j.￿ CoKludethatth*isam*eria1rnts5ratementofthi50therinforrnat￿Th,wR are IW4Uirtdtowrtth8tts¢¢ PHQ-INDEPENDENT AUDITOR'S REPORTTOTHE MEMBERSOF PORTSMOUTH HISTORICQUARTER TRUST 26 OPINIONS ON OTHER MATTERS PRESCR18ED BYTHE COMPANIES ACT 2006 In ouropinion.tsas￿￿ thewrxk ￿￿ertaken Inth¢¢w￿ the InfoFmationsh%n inthetru5tees' reportforthefinancia1￿forv•kniththefiTra￿￿StJtrnts wek¥epared.%*lxh Inci￿3th2 thedirectrxs, reportinc4￿1￿Wl￿n trIn￿te&8'repOrt￿9sw￿￿￿lI￿￿CNd￿wIth4Jp1Ka)lel*al1wu1rernents. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the Iwtol ih£ kno'Nleoseanc unGerS.andi￿J.. the crLari.i &?ditseDbJJtbm&th'. ob*A￿ed￿ tne course ol EheauGIL we ha'le nDciOentylied m*eri81 mi%¥t¥tern¢ntsinthetrust¢e$' te￿(*￿￿￿¢¢1￿S. tstJwiees' rworL WekntnothngtorerKKtin not￿Sited byu& cert8indi9¢1Owes￿trU￿teÈs. remtrmrot￿ ￿￿¥￿￿tmade.0r v￿haven01 r￿eN￿ alllhertomiatyonand e¥Aanatr￿S￿￿Tr￿￿re￿o￿4￿l¢ or RESPONSIBILITIES OFTRUSTEES "p-[lth￿ J￿￿..ees. a-D also Lhc ciic-tDrs thc ¢h•rityftyiF*pwwse0f¢fymp￿Lty. ar0￿¥￿+J￿ft￿th8w8[wa￿MOlth$f￿wY¥I$￿t•r￿t98ndfr￿bQ•18s￿￿sfi&l￿3t￿Ey&vek oltematN*bJttodos AUDITOR'S RESPONSIBILITIES FOR THE AUDITOF THE FINANCIAL STATEMENTS Ourobiectsves areio obtam reasonable a59Jfdnce a￿￿1Y￿etherthP*￿an￿aI staternpnt5 a5 aVI￿le sr8fveefr￿D[llpte￿JlmIs$t#te[￿trn1. *diois%ue tsptytthar￿￿J8$rAX(w￿.R¢•s(￿￿W￿$rte Is ahryh ieWofassurdnt8bJt ISn￿a￿Uard￿eethalana￿jrtC￿JiKied inxcorda￿e￿1th￿AS¢UKl￿1aws￿￿ecrama1￿lalT￿&Ststern￿￿￿8ntlew$ts. misstatem￿ts¢W￿L¥8frty￿fr8￿￿ orw¢qwdar8¢L￿mjW8dm*i*I4*f. fv8gm*&ty¢￿￿lffe*￿wbty￿¢￿t¢tets that had adi1￿tef1eCt0nthefin3na￿ ststefflentsa￿ operations Ob¥ainin8anunde¥slandmiofthedW¥polwaThJr￿0c0￿￿0nf￿jd irKludiwkn* ot￿Y￿￿aL wspELted or Bllegedfraud. and areais0requ1￿d ropErfurnwific kYoKedu125l0￿L￿rothe￿skl￿mW*rnl￿1￿e.￿5a Wdsultofperfvtrni￿1hF•b￿. co￿￿'anCe%•1thth￿UKcL¥n￿￿Ac￿￿￿Ch￿￿5I￿t. kn•J(knMWthEabryrt¢MWDceduE5bJ￿￿W￿dton5k8 Klentsfied In￿￿dedthe PHQ-INDEPENDENT AUDITOR'S REPORTTOTHEMEMBERS OFPOATSMOUTH HISTORICQUARTER TRUST 27 maknngenqulr￿0fMan￿emEntIThjttWchory£d￿￿0MM£1￿e￿r￿rt￿kjw oryJspxted n51arK95 Dfn￿.Ctsrnpi￿r￿e￿ith laws and rwiations andfr3￿., fixed assets". appF£yn8tenes* tlue tothe lnhwentbm1tat￿ otanaudQlhUeLq￿UwK￿￿n5kthat￿rfneMatefiaiffiLSSI&eMent1nthe￿anClaI5raremenrsr￿aynot bB dete¢tsd.wrfen ￿c￿theaUdV1is￿¥w￿typl￿wldrKt￿thrD￿t1TraW0¥d￿¥57thtr￿ ￿45 (UKI. FLYM5kn￿thEf￿th8[r8M0¥Vj W￿.fI￿org.UKlwartOI￿sp￿WtA￿w.ThLS0esC￿tKX1￿￿swof(M0￿1itty.s rer*yL USE OFOUR REPORT This Ieportisrnaaes￿eIY1Otheeh3r￿5lr￿5Iees, as atrKxty, inacccrda￿elMth p3rt4ofthetharft￿lkn￿th1ts andAeportsl Rewrtations 2008. OW•￿it%￿O[kha$ beenundert*¢n soth* weftuthtsw*tothe ¢h¥iVs tr￿St￿emattersvA atèwuiredtostatetothem ￿ an lOr￿dOn bthaiolSurn•rAuthE PHQ-INDEPENDENT AUDITOR'S REPORTTOTHE MEMBERS OF PORTSMOUTH HISTORICQUARTER TRUST 28 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES {INCLUDING AN INCOME AND EXPENDITURE ACCOUNT AND THE STATEMENT OF COMPREHENSIVE INCOME) LlrwestriEted RestriEted ds funds 2024 T•tal Totsi 13 21 3,473 403 In¢om8from¢lwit8bie8thityes 3.921 324 1473 403 In￿Stment￿CoMe Totsllncorn Exp￿(￿1￿￿ reetexpenditLKeiffirt4ec 13 14018) 16191 11820) 12,7011 15961 1481 11931 13,5381 16191 Rav&iwfiJnds Othereypw)diture 1481 {1791 13.8611 1151 359 Dwe¢t depyeckqtKJnonf*4￿tr1 Losson disposol Imp31rrnontcharge 11,0931 18401 17821 16661 14.750) 14750> 11,2261 14 Net Iios8esllgain$¢n ￿$￿t¥ 14 14S2• 11.212) Defeffed tsxatk)n 21 299 11.212) Transfersbet%4Yenfwds 1.042 {7.0421 11.212) TotAlfur*3brWtforward Netmovemenlinfur￿s 14003 1.6n 556 4559 149W 1522 17A32 117rJ 11.048 23,771 1&( The $tatementoffnanck?I ￿t￿tIeS in#udes*lgams 3NJ1099esAI All derThtlromConMwngacti￿treS. PHQ- FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 29 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 BALANCE SHEETS Reg151ered fjumbef.. 01959490 Trust 2024 2024 Tot81 111 £0005 Prw*TrpL8ntaTrJ Z191 9.182 14.322 1.614 1191 8,656 pioperries Investment 3,619 19 3ffj19 795 7,648 IIOIIP 17.099 1Z1n 1191 14010 10A18 1191 CurrentaS9ets In￿stments 44 Z244 1.014 l244 1.014 1549 Debtor5 17 976 741 Inhand 1A19 418 711 1.176 4074 4.575 W￿lhI￿One>¥ 13,7S11 13.794) 12.9351 175 1,740 14.676 a858 ,".£1?10￿93 14649 1&839 12991 17X 21559 14676 Z656 14149 IOM39 Fun Unde$wa￿l De￿￿ated 12 10.932 Z250 1&182 9.$58 1250 8.srJ 2250 10.773 523 6,813 2,250 50 1a182 10.rn 7,1 220 14676 14m 11003 1Q993 14993 9,283 ACtNewoj￿ts LegaGrypioi8¢ 480 1191 9.076 116• 1W9 2.191 9.076 17AJ2 22559 2.191 14.676 10.993 PHQ- FINANCIALSTATEMENTS FOR THE YEARENDED31 MARCH 2025 30 HQ FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 CONSOLIDATED STATEMENT OF CASH FLOWS 2024 12751 tsrestreceNed 196 Dilridendsre￿hYtt 20 11$ (7551 223 1282) 12,2551 111341 F￿[ch•S8o1Pl4￿tpr(Wty¥k1*Q1ry¥ ¢•sh irrtested ￿depOSit0¢¢0Unts 371 418 2,827 418 1.319 418 11.212) T&¥ 4750 919 14031 11251 12751 PHQ- FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 31 HQ NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ¢rpor•t¢ Infoimatlon Portsmouth HisroriG QullrterTrustlPHQ andfumwitykv4JvmasPort5ffj0Uth Naval 88￿ PropetyTwstl 8 ¢h8rrt8ble Trugt, ￿MIted byguaranteearQ has nosh8re caprtal. In the￿￿rIt ofthe¢h8nty beiTrg%￿￿n￿ up,theb8bS￿ryITh respect oftheguarBntee Is iirnited to £1 permernber. PHQIS IncorporBted In Eno￿dand Woles. The repteredofficeand pnncipBI ptsce of twJ$ines818 19CoUege Roèd. HM Naval B8$8. Port$Mo￿h. P01 3U. B•$l$ of PrnPArntlon The financial staiements havebeenpvepawed inac¢ordanctrwth.- Fin¥￿laIRe￿IlrngS￿Th￿afd 102 IFRS1021. 4$ iswed bythe Fin¥n¢i8lRoportingCoun¢4- Statement of Recornmendthl PracticelSOAry-Pzcountingand Rewrrindbychariiies preparin¥theii accountsin accordance ¥*lEh the Financ￿1 ReportingStsDdaids appbcable inthe UK and Repubb'c of Ireland": the Comp8niesA¢i 20￿.. thech8rrt￿ Act 2011". and. uKG￿e￿l￿AcCeptedA¢COUnbngprnCt1Ce. PHQ meersthe dehnrtionotB public benefit entity under FR$102 and Is theparentTnJst. Thefinancial statements arepiepBred'. undefthe histonc4lcost convention. fflDdthed tg include inva8trnentpropBrties ¥tIaw￿lUe.' In stertinLthefvnthorwlcuwreoty of P￿-8￿d. monetsry8movnts inthesefinan¢i81 siaiemgnts 8reioundedtothe neBrest£1.CpJO unle5S 51hted otherwèise. 1heparentTrU￿ is Included illlh? Gonsolidated fir￿￿¢181 ststernents and isconsidei?dto bea quaithngernityurvjer FRS102arwJ assuch ha5 app￿*￿the￿o1l￿YIng8x8Mptl0rt8 from i$clo$ur8 fort￿ ￿rOntTIust in Section 7Staiement ofcashfl0w￿': knsentstion ola stsiemeni ofcash t1￿￿8￿￿ ielated notesand disclosures. h has also appbedthe tollLyhin¥exernptlOD5in Secrion l1'Basicfinancial Instrurnents'and SBctson 12'0therfin8n¢k41 in$trument issve$'" Intewtin¢omelexpense and netgainsnosses foreachcategoryof finbnual instrument. bBsis of det2rrniningtair values. detsilsol collateral. loan defaults orbreaches: ¢Jetailsolhedges-and. hed•ngtsirvaluB changes IBGOVWISBt* in st8rementof financ￿1￿Ct￿￿￿& aDd ID othercor￿￿kne￿STr￿ I￿OM otconsolidation Thef1nbnC￿ryl ststetnBnts¢on¥ohd*8 the￿$￿￿01 PHQ8nd¥Uits wt*￿*￿￿p8fi￿s1dIS¢I0sed In noto 171 ona tine by bne basis. AsePAlAteTfU￿stateffieffl LrfhnanLyalacMeshas r￿1b￿n wyredas pewmrtred tySeGtv)n408 of Companles A¢¢2006. GolngCoth¢om The finan¢to1 ststementsha¥e been prepared on thedoindconcern b3s1s.TheTiustee5h￿cons1dWed the level oflunds held 3nd expected incom8and expeDdituwBfor 12 rporrths fromth8d¥tethBsE finan¢i81 ststementswweappThed*th￿h$h(￿ 9ufhcient levels of lunds PHQto¢ontinueosagoingconcem. Incorningr•s¢Jur¢es Ali In¢omingregOu￿¢s are r¢cogniged intheststementottinAnc•AlactMDes*then theconditionstorrocewt havebeen tnot alldthe rnouni can bequantthed vllth reasonable accuraw. M mcorningre50u￿es are51ated DetofV¥iu*ALlded T8x IVAI). Gr4nt$ 8nd donwDn$ receiv•b￿al@ rècr8nbsed recwvedu*thenthry bRcrffie unconditior￿lI￿1CheYorl5 thesoun￿. Èxpondlturo Expendittsre is reeognisg1 on anaccruals bhsis SIA￿ net of r￿r&bievAr. Expendiiure on rnisingfunds includesallexpendrture incurred bythetrustto raisefuDdsfor its thaiitable purp05e5and I￿lUde5clIStsof allfundraisingartmtiBsEventsand Don- ¢honi8bleir&ding. Expendrture on¢hgrit8bie8¢tMtwis incurr&l on dlwtiyundert0￿n¢theaCtNltse5￿ich1Urtherlhetru&ts obiectNe5. as￿￿1125 0nyo&vK￿Ied costs. Ailleases ¥YhetherBS ie5soi orles5eeand accouniedfDvas0perHDng￿4$aS andcrEdited orchargedtotho Statemont offiMncwl activitiès wenlyoverthtrlifvolthe ￿aSe. Fund UnrestriGted funds represeptfund$%%thich areexpBn¢JablB*th8discrEtTon of theTruste8$ in thefurthet8n¢e olthe obje¢t9 ofpHQ. FromiimetotimetheTru8tees allocate fvnllsforo portiCuLArpurposeBndthese are ciassthed a5desi8mBted funds butare 5till8tthe fulldiacretion uf theTrustees. ReslnctBdlur5ds wepTrsentfurwJs receTr7bletora specthc purwse 8$ Oefined bythe Oonor. Non distribut8biefund$ ￿latetOtherewaIuoti0n ot inveStM￿prOPetytte￿ inihegrouplessanyassociated deferred IAX. H•ritspas5•ts PHQwa$o8t8bli$hed 8sth8vehicle In whi¢hthe hi#oiic land Iwildings in•nd around His MAjestys Naval Basewould be held, renC￿￿e￿ and rna¢ntsined. This isth8 ktyreason rt asSU¢h¢ons￿ers allolththistori¢al L•nd and buildingswhi¢h ith8S beenwfted to be hentag¢asset$. Ail othew actfv￿es eitherwiihin the ￿lIdIng$ orhcrass thesrte are incid￿raItOthaI aim. Novalue is attributed toBnyofthe herits8easse15 duetothe condNonabty*fftKh Is atrachedtotheirienure and in p3rtiEuiar Dnthe ground5 ofth8expense o18nd18¢kol reb8b1ltyof8ny￿uth￿ method adopteo yiveththe uniquene9s ofeB¢h Indnpidualasset. PHQ- NOTESTO THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2025 32 Prop•rtypl¥nl and•qulgm•n¢ Piopertypiant and equipment are 91atsd at historteeostlessa¢cumui8tsd depro¢lat￿￿8nd impairment. AttheyeBrend ihe Tru51ees feviewed thehistoric c05toteaGh Prope￿ P￿D1eqUYfflefi1as5￿ arKJ pertorrned imp3irment te$15 on each usage the value in u$em*hodoiogy. Th8Ttust8esh8ve 08¢ided to¥¢¢ouni forallluityknyitten offa¥ets •$ dispos8L8an8$8ets %4*ich ale Do longer indiwdually identrfiable. Propertyplaniequiprnent is depreciated asset outbelu*r. Freehold land-not depre¢iat8 Freeh¢ld leasehold property8nd irnpro*ments-10tD33ye•rs Powerboats-¢4pitsbsed dvnngcons¢w¢iionlwh•rt¢ementph8$8 unknivs&detewmin8-thw 8ubje¢ttoannu81 imp•irm8nt test FIAtuie$8nd fthngs-10y88ffS As¥ers In the¢our¥eol¢0n*N￿N￿-8Ie ¢MTthtr¢om0f¢onstru￿Iort￿ThJ notdepre¢iated unirf rheassetis av8iLgbl8 for use. Inw#tm•fitProp•rtl•¥ Investment propertie5 ho¥ebeenststed alfair￿lU Fln•nrl•l In¥trum•nts. I￿•ts and Il•billti• current8ssetr¥ndCreditNs'.grfk)untsfa￿n￿￿UeIlthn respecW8sfin•rK*•la$8¢tsAnd bBbiblltt. Aiare G￿lled atamortiwjcost. FiDaD¢i¥itDstiumeDtsare reco￿lSed in thestarerneni oflioanc￿iaL￿IW¢y￿svthe￿ PHQbeBomes a party to the contra¢tu81 prcMsion$ orth8 in$tNment. Finan)814nstwments¥wInrt￿1IY m8a$urgd 8ttf8nsa¢tion ptsce unless the ariangernent con5titutesafinancin$iraDsaCMn*th￿h Inclu¢Je5 iransactson costs tortir￿nE1aE instrurnenis notsubsequently me¥sured 8tfairv8lue. Fin8n¢wlinstrUments8rt¢la￿ffieL135 Eithtr'b8si¢'or'other'within FRS102. Althe end ofe8¢h ¢porting pttiod, basic hnanciBI instnJrnentsaremeBsur&l aiamortised costu%ngthe eltsC￿raternethOd. Ailhnanc*linstruments not ¢las¥thed as ba$s¢ are ￿•Sure￿ 8lf8ir%8lut¥ttheeDd ofthe reportsngp8Dudwththe re>JI￿g¢han8e$ ￿0gnIsed In income or expenditu￿ Wherethe fairvBLue cannot be rebablYrne&w￿￿. they8￿ recognised at cost less iM￿1rn1enl. FinBncialbssets are derts¢ognlseO the¢ontra¢tu8lrohts tothtcèsh flthgfrom ass8ts oTwF*nPHQ has tt¥nslerred subsi8nt4•11yailth r￿Sk5 and rewards ofownership. FinancialtiabiLrties a￿ derecognised r*n¢e thetiabiiityh89 be8na¥ttnWishedthro￿h discharge. cancBUation orowiry. Inv•*tm•nts ParentTwstirterests in subsKlrdrie5 ale 5taied *costless anyaffjouDts %witten olflordiminution in %qlue. Other investrnents ale included onthe baiAnee sheetBtfairvolue. Unreabsed gAinsAnd losses refiect theel￿of changes in martet ¥biues of investments. Rea￿sed￿ainS a￿10￿￿e& Dn quoted iDve51rTrentsareba5ed on the drflerence bet¥￿en di5wJs3lpruceeds arKJ brouaht tDrv43rd mdrketvalue, or eostif acquired duringtheyeai. Cash cash •quiv4l•nts •nd(rth•r 8$h8nd ¢8sh equ￿lentsar¢￿fyS￿fir￿￿￿￿$S%ets￿d inci￿)eca$h in ￿.dep￿rt5h￿￿ *C8ll%4ith b8rt$8nd other9hort-temi Iiquidin¥wl￿￿nts￿lthOri0￿a1rTthrit￿5 UlthTremL¥ff￿oriests. cu￿B￿a￿t￿￿￿1rner￿￿tb8ts￿hnart1&1a$Sets￿d reprt*nt amounts hoidondwsit*thoretherrynalrnatWffyK88ro8reitsthreemonths. Tax Thetsxcuirently payable is basedor*tsx3biepmfftofthe Grow forthe￿I.T4x•￿pft7fft drflers Irom n*pffoht as reported inthe prolit and10ss accountbecause it exclude5 iternsolincome orewsethatare taxable ordeduciible in Dtheryeaisarvj it further ex¢lude9 r(ws that ere nevertaxabie oi deductiblè TheGroup's babibtyfN currtnt rox is cglcui8ted tssingt8x ratesthat have been enacted orsub5tanknvelyenacted bytheweportingend date. Deferred raxtiabiiities aregenerallyrecoÉnised toraiiiimingdifferences ond deferred tax 39sets ale wogni$ed tothe wtentth8t rt Is prob8bleth•tthtywJll be re¢overed 8gainstthe rever$8lof deferred tax Iiabilrties oroiheiluiureta¥able profrts. SuGhas5etsarKJ iwbibiiesAre rK)tiecognised rfihenmingdrfterenceanaestrorn gwdwillor fromthe 1nrti8liecognrtionofoiheras$8ts 8nd tsabl￿￿*S in¥ts8rts•th(*)th8i¥tte¢ts netherihetsxproffi north88c¢ouniinÉ prohl. Deferied tay is calculated atlhe tax Fate5 Ihatarewectedto apply inthepenod whenihe ￿abilIty is settled orthea5set isrealised. DefeNed W is ch4ryed or¢i8dit8d In thQp￿fftand ioss 8¢¢OW)t. ex¢8ptwh8n rt reiat&sto items Chargedar ¢redrted diroctlyto equity, ¢n %thich ca5ethe deferred tax ￿alsO dealt%Mlh In equity. Delerred taxassets and Ikibiiitie5 are Dftset%*thenthe Group has legally enf¢i¢eabie rightio off8ei¢urTrntWx¥ssotswd babi1itss4r￿ts￿¢J81*rrB￿￿Xas$gtyaThJ I18￿￿eS[el￿OIO tsxes iwod by the same tax 3uthoriiy. P•n$ion$ PHQ operatesa dehned conrribvtK)npensiongchemeonbehaVotitsempitrfyV* The8JsetsottheJtheme are heid bnd 8dministered sep8t8ielyTrom th0$8 of PHQ. CorfDbuts)rt¥èreth8rg*Jtothe st*8m8nt ofhngn¢kg1o￿￿tI$s8$th8Yb8MMe payable In accoidancewiththe rules of the scherne. In theapp5ication of PHQ'S accountin8 policies.theTrusteesareie9trirod to makejudgement5. e#irnatesand assurnptyonsabo the ¢arTring8mDunt of¥sset$and b8biliti&sthatart notrtaolilyapparentfrtyn othw soui¢e8_ Theestthate$¥rxl 8$$0¢i8ttd Assurnptions ale basedon hi5toiica experience and other tsct0rSth*arecr*￿idered to be relewBnt. Actual results may differfrorn the$ees¢imares. Th*e*im8iesand underiwng¥ssumptionsèrewts*Tr¥wBdon an ongoingba8*. Rkn$son¥tO 8¢¢ounhngethmate¥ are reeognised ￿the period*thichthe e￿m￿te i8 rwsed*therethe rv11¥￿ Bfteets ontythat penod.or in theperiDd otthe re¥i¥ion PHQ_ NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 33 and future penodswtheiethe revis￿￿ affectsboth GUThEnt andfuturepefiods. The Trustee3 CQllsiderthatthe onesignifiGaDt risk Irom estim8tes8nd¥swmption$ ofc•vsing8 fTl8ttn818Oju#menttothe cartwnE¥mount of¥s¥ets and Iiabikne$¢s fL¥ed 8sset$. TheTw5tees rewewthevBiuation ottixed 85sets atthe end ofeachyear. sorneassets arevalijed byefftrnailhird Part￿5,￿hlIst oth8r$ arevBlued by Trustees based on Iheir kn(y*tsdde. PHQ ¥ts711 uThJenake I151Ne￿artY bJilding conditions suryeywhich Tnight imp8ct cu￿￿￿tcarTri￿8ya1ue$. WaDyolthevaluaiioDsare inaccuratethenthe waluaiioryoff￿ed assets in thefiriancksl staternerits mi8ht be m*￿tated. DuringthByeartheTiustees continued the rewvwof hLvIPHQ'5 hemageas5etswere represented Inthe accounts. PHQ'S 8¢coUntingpo￿cyh¥ts 8Iw8ysbeen to 8ttnbute no %?lUe￿the underlyFngdonated asset. In 2016. the ¢o$t$ &SSOC18tedTrMth renovation and Improvernents weretranslerred to h¢rita¢egsgetsfrom non hertsge 8ssers. The rewewfound thWtheTew8S an inconsist8nttreatm8nt of an heritage a$￿01the same cias5 In oneoltheTwust& sub51dianes. The a150toundthat%*ithi herrtBgeass8t$theeosts ¢apit8li$8d did not meet th8 critena￿l¢h￿￿ld rea8on•biybeexpe¢teO ol$u¢h an as$8t-fof in$t8n¢8 Dew staitwdis. aircondrtioningand 0iherrnod2rnisaiionwor*5. The re¥￿Wha$ concludedthatthis presentaiion could lead useis of the lsnan¢ialst8ttm*itS tu havtthe irnpressMJntha¢thB herrtagepartoftheas5et also had value. TheTwstees %Yishto be completelytrnnsparent iniheway PHQ pre9enb 1hev8lue￿tts4S8etsOnd htyet8kenthe Oe¢i$ion to re•n8lyse&sset8prwously classified as hèritage as propertyplaritand equiwnent. Thewe r& nothancial Imp8Ltofthw restaternentto PHQ4 net Bssetsand the transfer h8$ been accouni8dfor8S8 pllorye81 •Jiustrn8Tht The1mpa¢t￿thtsadIl￿Mery1 onth8 tin•nci81 $t8ttments 8¥* 1 Ap￿1 2023 was asfolluw&. Ae¥taternent AJ restBted BaL8ncesheetat 1 Apri12023 Heiitage as$81s Non-heritAge bssets 9.716 5.907 19.7161 9.716 15,623 Duringtheyegritwasfound thdtthuewas a diflerence betswenthe assets, tiabititlos and rnSer￿s broutstforward at 1 April 2023 in pHQ￿aCC0u￿tll18 bry5tern andth05e pieMou￿yappv0Ved and p￿liShed. The ditlerence ¥Yastraced b3cktothe previous accounting system_ A ¢offe¢tithg8diu$tment h&sbtÈn m8¢Jt&$ èprioryB8I adiustmevt. Theeffect hasbeEll tOd￿reaS8 Deta&8ets by£43.000 at I hpri12023. In oddmon. intheye4rended 31 MBrch 2024eosts bssociated 4Mththe Carpenters'yord prOject￿re chbr8ed to the siat8m8ntofflnw¢i•18ff8irs whenthtyshouid h•vtbeen reco￿￿e￿ asAssets in Iha Cour68 otconstructton. This h¥sbtèn corrected In the 2o24comparatr4ef1nanc￿1sI￿tefft2nts. Theeffecthas been to inC￿8S•fiXed8ssots at31 Maich 2024 byE46.000 ènd decreasethe defi'cit reco￿0d iThiheyeaw ended31 March 2024 tythesime amouffl. Thedeficii in theyeai ended31 Ma￿h 2024¥educed by £89.Of¥). Total 2024 fund* Oon•don•4ndl•Dcl istrrfi¢ England Other 13 21 Duringthey88rend8d 31 March 2024£13.fY)Ooflhedon¥tts)s re¢othO %weto re*rictsd luThJ$. Property 1746 1746 1.175 12 1,267 3A73 Duringtheyearended 31 MBrth 2024 ENilofiheincofflerecovded wa5t01estr￿tedrunds. Intereston ¢ashdepwedv4thbar*¥ 117 218 20 Diwd£ndsfrom ￿Sted 12 Duringtheyeor¢nded 31 Mar¢h2024£Nilofthein¢ome worded to ￿¥t￿¢￿￿n￿¥. PHQ- NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 MARCH 2025 34 HQ Totsl 2025 Totsl 2024 fund nds Preservation IS84 2.113 588 Visitots. 8CC8ssand adL￿tiOn 15 4018 2.701 452 21 Ssiaries Othei staff Communicotions OtheT 59 64 Ch•vii•bl••th￿W Jup Duiingtheyeai ended 31 March 2024 É81.0(M) Oftheeyw￿rture¢Jn weser￿10naCi￿bes%WéS trom restncted fund5. 619 619 596 Trustees Igovtrinan¢e expendituTr Leg818nd profo$s*on•lf88$ Aud4tors'fees18overnBnce expenditurel 20 97 62 97 147 37 179 Duringtheyearended31 March 2024 ENilexpendrturewaslrDffl re5mCtodfvnds. G￿*mance8xP9nditUreis specfficand no other expenditure has been Bppomoned to trt 2024 P4uieonnett David Buners l¢hairl R￿erChi￿ MiGhal Cohen Thuffja5 Coles He8rAdmir81 RoMCo# Henry Flint Ben French Profes5OrVThrRinklG*￿Th Helen Greèn There$? Hall Graham Mottis Robert P8kner Steve Prtt Michbel Ridley Rvbert Rob¥on T4rokTeba Simon Vèrdon 1.800 1,WO 1,000 l.(K)O 417 417 1.000 417 246 1A17 1A17 1.000 1,000 417 417 417 Trnstee remunerotKffii$in8ccord8n¢e**th the&￿￿E￿i￿￿￿$ ￿pHQ*dha8b￿ tythecharrtts Con¥ni&8iDn. In 2025$e￿{2024'. se4￿10fthe￿b￿Trl￿teeSwerÈ￿m￿jrs￿l4t0r2l0fE3,S34(2O24.' ￿,02￿ ofEwsesin rdationtotithtitingAnd drninI5trBtyon costs1ncu￿eddurin4the￿r. £10,4fAwBswd dIr￿dYtothird parbeslrtl￿lMetNkstee￿rernen1•fts. S￿¢2024.. tsyo) Trtssteesdon&&#ES,25012024..Q6B71.th8mttstqwl&Mn3sXTnisteethmrythe}Utr*ts￿￿￿•KX)SffjmWth￿ FTrQ he recthEdrem￿rati0nfc( thisrclea5*tllastrKcaxki*wthwawirrftsrl £7265o￿the￿r. ReaiAdmiral RExCoxis a director o¢Coastal Forces Herrta8e Trust. ￿lIn81heye3r, Trust wichasedtseketsarnountingto £60(2024-£nA). PHQ_ NOTESTOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED31 MARCH 2025 35 10 2025 2024 Wades and s3iAr*os Soci4lsecuritycosts Pension costs 7.134 102 977 91 1,156 Employee earn￿￿Ond l)on£ffts IE¥l 60.OOOto 70,000 70,001 to 80,000 80.001 to 90.000 ).(M)1 ro 11Q.O(X) loo,￿7 to 110,CpJO 110,INJ1 to 120,LbJO Numb TheGQStofTiusieesandkEymana8ernetrtpevs0nneidwngtheyparYra5É375.r*y)12024".É2T2.IJX)li￿udlngp8n*OnandS0cl8l$eCU1ity C08ts. TheavewagernonthlyheadcOuntotpE￿(￿{excl￿jln$TrUSIeeSj emkwed LrytheGroup duringthe￿*rwas. 2024 Preservatyon sitors, accessond othxati 10 14 11 Net expenttiturelorthe Stat￿8fter chgwn¢ £OCQ¥ 666 Depwi8tion18e8 notes 14 and 151 Impairm￿11$88 not88 14 and 151 Auditor's remunerwonforgudr( FeespaW)letothea￿it0rfor. Audrt ofTruat Audit of subsidi8nes other5e￿ICeS 1.145 38 20 12 As pfjmrtt￿ bySec1irffi4￿ ofthec0mp8nlesA￿x(￿. PW'S offwnwl8ctiffts has not included In theseffiw¢i•l ¥t8rements. pF¥J.sm¢¥trYwtt*ifuThJsforlhefvw￿a1>w1￿￿￿efj¢1lOI£s.1￿.c¥JO(2021 as Yesi8ie(I'. defi¢rt £565,OfKII. PHQ'$ otyects focus onthe preseN&tronofbuildings. stru¢iurBs.*s¥Bi¥. docks and berth¥8s90¢iat>Jwiih His N8ie$ty'8 Naval Base ID aDd aiound Portsmoulh. In totalthere ale 34 buildings. 3 docks and a tnast pond the m?jortyofwhi¢h $¢h8Ouled ancient monuments. Gradp l. Gr¥dt Il. ty GradE11 kn5ted buiidMg5and afleetothistonc MI￿1¥ry¥*ss￿L* daaits ofwhi¢h •re avgilablt at%•yNl.p￿¢￿I￿￿thkl4.￿. ThtTrustees havetaken the}￿￿￿th4tthests buildings. 5tw¢ture$. k*$8eLA.do¢k$ berths to8etheiwith theii a3s0ciaied Infrasiructure are hemageassets. Wherever possible properties havebeen renuvatedarid in pre¥iousyea15the cosrs afthe5erenowdtlOll5 havebeen capita￿sed andsncluded Inthe costofheritage assèts Iseenots 11. PHQ maintains g bstofallotit5 hertrage45setswhich beenacqurred.ThgvaJtmoJovrtyottheassetsareon onthe site. Blthoudh torrented buildin8s IntemBlacce5S i8 notawpossibie. PHQ_ NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 36 HQ 14 Gmup Total Cost 1 *4Jril2024 Additians ion 19525 240 3.150 2.0)2 235 2B.285 755 515 31 Mw¢h2025 O¢pr¢¢i#tion l April 2024 Char8e loryaai Impairmqnt 31 MNth2025 ion ai50 29.0 11491 11r￿> 19.ty241 13.150 11.250) 14.7501 119.8581 1458) &0621 P.15OJ Nètbook¥a￿ i Awl20 N•tb0tskV4J￿aI M*TG 14502 752 23$ 14,3Z2 9.112 TrL T¢)*at £ocrfJ• Cost l *wril2024 Addit￿￿5 2.0 10.413 237 2.fyJ2 235 $15 17.672 7S2 31 MArc*>)25 Oepreciali l Apri12024 chary8f0i￿ar Impèiimertt 31 MArthX26 10.Q4 14.6671 16241 1&1501 11.2501 (9.2161 18531 12401 P2ffj S.746 Netknkv4iue 1 April2024 235 1J74 Tfujt 2024 2024 At31 March 3.619 3.619 795 A TIu8t8nd Gr¢up Inv8strment pfopety ¢ostsngÉ575.OWI2024". £575.(￿) Isv8lu8d In Ihea¢counts 8t£795.WO. Theywefe Lgst valued byVailWilliam$. Chartered Sury*yDfs iDApri12023. TheTrustBes rewv**d thtV8lu8tioD¥nd Con$￿￿rrtttrrem81rn appropriat8. Portsmouth Nayal Base Propety CompanylQueen Strwi Limrteo In%*stm8nt praperties co$bn8£1.5SO.000 (And 2024 a$ rest8tedl 8re¥8lued Inthe •c¢ovnts at U.824.0(X) 20248$te$tst*Jl_ Gmvnd rent incomew8$v8lued byV8IIWIl￿￿m¥ Chartered Surveyofs In March 2022. TheyaluatiQDWas prepared on the ￿31$ of rD?rketV8lue u$inKthe investmtftt merhod. Ret811 unitsworevalued on theba$L8 ofm*tkeivalutby Holiow¥ylknff8 & Hrt¢holL Chart•red Surv8yor$iNJvr*2021. u$ingm8rket rontal values. Thevaluathons aredeernEdtore¥n¥iD appropr￿tebYIheT[vsl?P8. PHQ-NOTESTO THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2025 37 Trust 2025 2024 £OCQ$ FIXed4￿•tin¥￿1MOThts Inve5tmentportlobo IseebdLswI Inter05t lnsubsidlaryu￿èrtakI￿$S Fixtd term dtpo$it$ 569 6.579 Inv•strnerrt pot11oUo M¢•n¢lll•tlo Morketv8iueat l *pril Net unreabzeo Ilossesygains Markttvalu&8t31 Marc In September2024theirf4e51rnentpJrtfoliowastransferTedtoa neWpr￿du. Ckntrnr&uthe￿ueoftr*fvnds investedwas £571,WJ. sub￿￿ary￿ndOrtak1nOS1ou￿1fhth0 &•n•r*stw•doffi¢•asPHQJ PHQ holds8 1(th6 InterE8tintheÉ1 ordinarysharecapiialotthefoUo%Mwc￿nie1￿I0t￿tsthWe ￿corpL￿al￿1ln EnRkndaThJWaie5. 55$ 55$ 14 19) Rewstratson riurnberCW02879 Dormant RgWStr8uon nurnb&T042075Lkg Piincipal3ctNity.' to hold theJssetBoBthouse6 Turnover. £915,IM12024..É&31.¢YYJI,. ProfrtaftertawiEn'.E267,(0)1Tr24'.£474.CO)) Net8ssets'. E6,8l6,LWI￿24.' £4577.CWI Re￿Stra￿an nurllberLW969934 PnncipalsctMty'.tohoidtheQuBenStreetcorpDTkoThl coUect8rnnd rents Tumo¥ef.' E238.(￿l2024.. É248.LXX)1.. &Jrpi￿afterta¥AtIon.' É4n,L¥X)12tr14'. E167,rA N￿a5￿5.. E3.582.iYJOI2024..£3.f4J9.1XJDI Rwstiatsw Dumber(6964416 Pnncipalathiw.to holdarKJdevBiop partotihe&ryJ4tFWs Hord Tumover. È78.OWI2024.. E39.1#)01.&JrplU3afterta¥atson.'￿5.CIJ)12tr2￿.É31￿￿j Neta55ets.. £]04.￿o(2024..É7gxQ}I AAgoci•ted und•rtakinrf PHQhDidsA2596Mtttest In Ihe El udinaryshwe capir￿alPort¥rn￿rth Harl￿rA￿$s8r￿e ￿mIted￿%￿lth is incorporated m En81aNI $ndW$ies IheoE8Teg8re¢aprt&l8nd YesW￿0f￿kniCh aren￿￿?￿181tOTh)r￿lV￿e0 lntwc0n8o￿8ted a￿O￿nts. Gfoup•ndTru•t 2025 2024 Fixed termdeposits 3,549 Tru 2024 2024 17 Trade Arnountso*& bysth51dkiryund￿I&Mys Prepavn￿tsèndx(￿Xd￿Cor￿t Other 205 168 74 31 1.014 PHQ_ NOTES TOTHE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 38 Gro Tw5t 24 2024 £0005 18 Trade PAYE Amountsowed to 9ubwdkqryundert8knngs Acciuais and deferred income 947 927 25 25 2,025 433 Other 51 76 794 1895 msduewthin onebwr Arnwm¥duebets*Yen onearnlfveyTw Am￿￿1$ due Jfterfveyears 41 41 ln 1ni Amm$ duewilhin AmfAMtsdu8bewn fvoyw9 rnrAmtgdue aftufveyears 1.524 3.781 742 1.477 6.433 852 3.8n 40.122 1,527 5,475 41M* Allassets 8tywbje¢tt0￿¢tl0￿sln￿O1￿xtrf•ftheTru￿t1ft￿llttK￿￿Tn￿t￿srn2yoPBraledlseMc￿Qryp￿rtW8', LandATrl trAAidinpare8lIsubJ"￿l0r¢sffiCO0nSCrffiIa￿l*lI￿nthe￿muSt￿3f&TBnthrle0sehOkltenureS: oathoUso4-NLHFIHLFgrants-&Mdmw￿0n wrr¥iLed uS88eofthebLMWingandproV￿IL￿o1Wth aLxessunli12W. Atthèyear end restrictadfu￿SofENllrem￿mU1(2024'. E2.&57,¢XKJI. The r￿uc￿onwBsduetomTr￿irmerrtCharyeS,. 8oathoUse6-8LF8rBm-allowtheNMRN￿uSe1he￿ldH￿3sarnL￿eUrnUnI112tsll. At￿eYearend￿IStedknds￿ÉNilrer￿3I￿&I 12024.. £1,392,CtsJl. ThereductsnvM5 duel0￿cOnd￿0ns bemgreiease•J: MGB81 and HSL102-NLHF4ront.cannot bethnsferrthtOBlhirdpartyandrn￿rw￿￿prTh1sIQ￿otW￿bC8EC•Ss-O￿8￿￿Bd. Atth yearend restnctedfunds of ENII remBmd (2024.. £PiiI', Boathouse 4. h￿¢ tr*)at I￿et and Porrto￿- UBOR p￿t- ben1￿￿ umrt2038. ￿theY￿end R5tricted lund& of E240,(All rem&in&l12024'. £1,2rA,(ml. The r￿￿tion¥￿sd*￿iry￿rrnernChBrgeS,. L8Thland ￿*￿ingS-NLHFBrant.CWnCrfbetr￿vrfy￿toothWd maintsin of￿b￿cH¢Ce￿-DP0￿0rKI9￿. Atth yegre￿1 Ye#ric￿￿n￿$ ot£250,CKX)remBiw112024.' £1,326,(￿l. TheredL¢ctionWMsduetoirnwffl￿charye5',￿d. Prklty$Hard-NLHF/HEyants.G4MotbetsansfOr￿to8thrd [Arty￿ Ma￿￿￿p[￿￿￿)nGfP￿b￿C￿Ce5$u￿tiI2O32. *xtheypar end iestnctedknnd¥ of£1.Ko.II￿r￿￿￿￿(￿Z4..£1.S58,(￿#)Tr PHQ_ NOTESTO THE FINANCIALSTATEMENTSFOR THE YEAR ENDED31 MARCH 2025 39 Trwi 2014 la5 restat￿j X124lasrts £￿05 &656 795 7.648 17,0 3,549 649 PrDperty¢aTrta￿J equiwnerrt Inve$tmwipYopert Investm￿ts 5.712 3.619 8.610 14.3r2 3.619 8.656 1*010 Cu￿￿nta5$e1n￿51rne ZfAJ3 741 Z649 tkntors Ca$hatb8nkand inhand 741 418 1762 18601 418 377 4675 12.6351 377 4575 12.B351 1.740 Creditors." duevhthTh¢￿ 18601 Totsla58ets iesSCWH $￿56 1556 Prowsionslor￿.ab1￿ties N8tas88 12991 14lJ)3 FuDd• PHQ s9tso¥idtlund$topmj8bL*hfw*nLy•I￿¥￿Y•￿lther￿￿￿all￿￿rn%Iry￿￿ ff can dthrarwJdffi￿p its Ghaitable Dp5tnbut8bltr Unrestnctedfund5 aretho5eto**ichnocoThlfflK)na￿ryINl￿￿jsts. und￿￿￿t￿h1ndSaR1￿SeBy￿li￿bIet0P￿Q1OrlutufeuseIn luthernn¢eofPHQ'$ oi*cts. Wh*8fwKlsh**bewaetasMJBluTfulutBthantsblexfviMwthether￿￿¥taI0[Qpela￿o￿aleWB￿ditU PHQclassthestheseas-De518n￿￿prO1eC￿knds. Currerrttytheselund5 repre￿1￿Mountssetas￿defQr￿￿d1etedprr*￿ts dunngthe cutt*)t￿o n￿￿n&￿¢1•1Y$ar. dw&¥JfvrwJ$fqxBSwrt￿Ka¢￿a￿t$l¥ nb)nthsof¢or¥¢o8ts-th*luThJ i* clas￿￿£d a5-DesiWBted piotected-. NonLliSrrii￿rf￿bl RestrictqdfvrKJshav4 SL¥nefrJrmotcoTrjitK)na￿Iylul￿S￿ Y4Thereth2c0TrJni￿tsmle5peCt￿w￿trIPrwtsth￿ resuitsinan accounkngarnrnAly￿thSItheruIlamQ￿offthodon3￿cAnor￿ant4$rOc0￿[I$￿asIntrth&￿￿th0pc￿nt8tth*￿c*it LS abY•td8d rathert ￿P￿.e￿tU reduc￿otheCapitaIc05rOltheas%eE. Oeweck**Jn charged asanewsethwrnaryyears. Thisha5resulted in many hiStDru1dty)a￿)n$ 8nd8Bntsstiiibwngt8port*d¥$ [Bstn￿￿JfvmdsW￿￿￿rEI￿&lPr￿slWb￿cry￿PIeI￿I in theterm8ofthe rdated donatvJno¥Wanttyeem￿t. TheTDJstee5 h￿r&I￿A*d#￿s￿ddechI1jJtOc￿rtr.th￿￿ fLndsafesriiiactp l%%*ere¢8sh iS*illto be9perttl." 8nd.hvl¥thfU￿tsr¢141tI0C￿l￿￿ proiBtstOknthithths￿lYSlP￿sE*{ItQbBCh•ty8￿ i¥dBprerythn proiectywhi¢hstylltrw￿I0￿¢￿￿nos?￿j*I￿￿￿thl￿W*es*ol￿￿0(Ie20. TI￿l￿d$are￿￿heS$￿ithlntheTrV81. PHQ- NOTESTO THE FINANCIALSTATEMENTS FOR THE YEAP ENDED 31 MARCH 2025 40 UnrutrfÈ 4245 13.8611 10.9J2 DE￿￿aledprOJ￿ctr DeJi￿a1￿prD1eCthd lal•Z •245 17* SJ 9.076 1i.r 14.79)1 {47501 2.191 51 17J32 11.278 29) 113 13.457) 11,9961 1.1rKJ 9.558 1.S5D Desomted piopcts Desrfmted pmteciryd 17￿?8 3n 4ST* 11, N0ndiStr￿￿1tsie 037) (&45 (Tkl 1S91 13.r•JJ R•stnct•dact P￿nCl￿d 489 iQ.559 24rn 13 9.076 813 &844 rJ.176) 1.042 Dési8natédpr0￿tts Oesiznatedprotect•d 17B) 1ffj773 A176) 1•*1¥ 5) 12381 9.076 11.0421 14790) x• 12,095 13 Oe¥pwtyooroffi•¢is oes1￿ted prol*ct* 153 Restrnctedact Restncledl8 13 10. 9.076 1•J39 PHQ_ NOTESTOTHE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 41