REGISTERED IN ENGLAND AND WALES NUMBER: 00567460 CHARITY NUMBER: 314229 YOUTH_TRUST REPORT AND ACCOUNTS FOR THE YEAR ENDED 29 FEBRUARY 2024 TALL SHIPS YOUTH TRUST CONTENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 Pages Reference and Administrative Details Report of the Trustees and Strategic Report 3-16 Independent Auditors. Report 17- 21 Consolidated Ststement of Financial Activitie5 22 Balance Sheets 23 Consolidated Statement of Cash flows 24 Principal Accounting Policies 25-29 Notes to the Financial Statements 30-40 TALL SHIPS YOUTH TRUST REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 29 FEBRUARY 2024 Tall Ships Youth Trust is a company limited by guarantee and a registered charity. Charity Number 314229 Company Number 00567460 Principal Office 2A The Hard, Portsmouth, P013PT Wice-Patrons Mr l A Carruthers Mr P Coleman Mr D de Laszlo DL Lord Grade CBE Lord Greenway MrMLeMay Mr J Lennox Mr O Michaelson Mr D Tydeman Mr T Vokos Mrs C Williams Trustees Mr D Aisher, Chairman Mr N Andrews Mrs E Bradshaw Mr J Brown Mr P D'ornano Mr S Edwards Mr M Layng (Appx)inted 8 December 2023) MrA Matyn Mr P McDanell Miss K Nazarin Resigned 8 De￿rnber 2023) Mrz Rushdie (A Resigned 8 March 2024) Inted 20 November 2024) Miss T Stuiver { esigned 26 April 2023) Mrs M Verghese-Dipple Chief Executive Mr A Floyd Mr P Taylor Company Secretary Auditor Moore (South) LLP 9 St John's Place Isle of Wi P030 1L ht Bankers Clydesdale Bank PIC Gatwick Busines5 and Private Banking Centre 5 Peveril Court fv8 London Road awle West ussex RHI0 8JE TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 CHAIRMAN'S INTRODUCTION The year ending 29 February 2024 was an exciting year of growth and development at Tall Ships Youth Trust, We implemented our new strategy empowering young people into adulthood, and for Some, career5 in the maritime oume This wa5 predicated on our commitment to UK Maritime of Ex loration. Empowem)ent and Leadership. We committed to the development of our hubs across the UK to remove the ment Goals for the blue economy. eople in outh develo amers to parbci ation for verpooihhitehaven. ment and outdoor learnin &iasgow/Greenocl Newcast This saw us voyaging from Plymouth. Soufh Wales, elfast eandl specificall chosen to enable us to reach more young peop swich for several weeks of the year, with these locations e in disadvantaged circumstances. We 3150 significantly enhancelour development pathways for our young people. crews volunteers and Portsmouth Hub Team. Nearly 18 months into our new a February 2024. we achieved the roach we have made significant progress across all areas. In the year ended 29 also Wofkin Ighest number ever of young voyagers on our Challenger fleet at 1,203. We are hard to ensure we are supporting young people from a diverse range of backgrounds - 79°A of the e we supported last year were expenencing disadvantage. 41 Yo were female and 24% were from the majority. This reflects better identification and en Development & Outdoor Leaming team. lagement of young people and their decision makers led by our Youth ogeiher, with an Increased quality of voyage expenence across the three- voyage Journe and better utilisation of our current fleet throughout all 12 months of the year through our Operations anl'Fleet Readiness tea The resilience and determination of the young people we support continues to inspire us. and I hope you will tske the time to read their feedback and Impact statements later In this report. A crew of le who have been voyaging with u5 as individuals overthe last few years came t e Fastnet 023 race. This was a once in a lifetiffle opportunity for this crew. onl Fastnet crew who f(Jndraised to cover their cost o made possi le by the support of the 24 members of the adult articipation. They also mentored and competed alongside our youth crew. The Fastnet race is considered one orthe ultimate challenges in the outdoor environment testing resilience. mindset. teamwork and leadership. Their success at the very to end of human performance reflects the strength and opportunity that our voyage programme now offers for all. fieir storie5 are outlined on page 12. We relied more than ever on our crews. su for all. Conflirt in Europe and the Middle porters and donor5 in what wa5 an extremely challenging environment ast. political instability and nsin costs across the UK created on-going challenges to the delivery of our work. The voyage experience. how it is delivered and the impact it has for young people Is at the heart of what we do. Our crews and supporters continued to ensure that our Voyagers were safe. Inspired and saw positive adult role models across all their Interdctions wth u Throughout the year. 449 adult voyagers significantly contributed to the WO￿ of the trust through paid voya Interact wth. They ired by the expenences. Our adult voiagers often become volunteers and donors as they are so insiTall Ships oun orm 2013124, they helped ensure t rt of the donor communi who are the lifeblood o rust. In at we could launch and em ed our new joumey for young people and fundin received contributed to voyages of Exploration. Empowerment and Leadership. together with the creation employment pathways for young people reaching adulthood and development for our crew5 and staff. As we look ahead, we are in a strong capacity and in 2023. we were force rowth position at the TrusL The demand for our voyages is outstrip¥ing our to turn away 120 young peo le. In 2024 this number wtll be circa 00.Asa result, we are now actively planning to increase our future fleet an crew capability across the UL We invite you to workwith us to si generation of adults and leaders w nificantly increase the number of young people that we reach creating the next o are connected to the ocean. David Aisher Chair of Trustees. Tall Ships Youth Trust TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 OUR NEW APPROACH We are now in ear two of our strategy 2023 to 2028. This report reflects what's been achieved in year one (2023) and our plans for 2124. Our Wision is a society where all young people strive to c￿ate better outcomes for themselves and for their communitie Our Charitable Mission is to enable young people. particularlythose from disadvantsged backgrounds, to change their lives at sea and contnbute to the maritime sector and the blue economy. Our Values refiert our changing culture as a team. as a tharityand as a society. Nurturing and Inclusive - We care for and encourage the development of all youn people and adults who e wth us: we Include and integrate all people and groups In our worK especiaqiy those who are from vantaged backgrounds. Positive & Challengln We are optimistic in all that we do. findin challenge oursetves to seeR the best in all of us and our voyagers, stimu a way forward and making life happier. we ating growth & leatning. Striving for Soclal Change- We relentlessly pursue cultural, behavioural and institutional change through and for young people In society. and for the mantime environment OurPur ose: Outon the oceanwe efflpoweryoung people to realisetheirfull potential. supporting them on theirjourney to adultEood and for some. careers In the mantime sector and the blue economy. Our strategy from 2023 is ￿AId￿Ner]r￿ 3 significant enhancements tothe workofthe trust A young person's joumey of 3-voyages over 3 Yea￿ (represented in the visual below). In this reporting year fA4 young people successfull Empowerment and we pilot completed a Voyage of Exploratton: 119 youn 4 people com our Voyage of Leadership In January 2024 with 1 leted a Voyage ot young peop TSYTVALUES ACCREDITA710NAP41 EIAPLOYM£P4T Duke of Edlnknnghs Award qnd AYA quollllcatl•Ths Mqrfllrne 5•th th? blu• •c•nomy LJkATI Ag• and Ill• stago of young p•oW• TALL SH IPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 ncrea5ing our reach across th8 UIC The visual here represents our continued increase in our reach. In this reporting Glasgow. ear we have voyaged tolfrom: our Portsmouth Hub. Plymouth. Liverpool/Whitehaven, Belfast and ver this next year we will continue to increase our presence across the UK removing the barriers to participation In our programme for young people. 41 • TSYTaJ¥tsr GkJww.' 17 mlub) Gkn$9¢W*>XI P•ter￿0￿ (Abefdeen) Bellos¢' G3? 6ello#l Ild¢7>+ tAyTC¢v%￿e N£Mcosl￿.. 49St M':edl&SbtOUg1i' 390¥ Hu',1.. ?50k I￿LAND .'Iie*t05119. HoFt*pool orKI Hull atdrx¢ I￿erPc4)l ¢OSk on¢he5tei.' 530k Itel￿gnOn￿ ifverFKo1 Homkh" 20K IpsKith'. 1SOk ÈM6IAXD 1p5￿.1¢r1 ond HiJn¥k WrtLES Card￿[.. 48C* coi#itt rMAh Ifockney 245k Horiryey.. 265 l¢)ndon A￿￿e1￿Y TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 Development Ekathways for our crews volunteers and Portsmouth Hub team resulted in 4 Mates pro res￿n9 to Ipper, 9 new Mates Induding 4 pro ressing from Watch Leader and 83 new Watch Leaders an youth mentors registered. For our Portsmouth Hu team: 3 staff progressed to Manager roles, 2 Managers ro ressed to Senior Leadershi roles and 7 new team members Joined us to enhance our ca ability in un raising. digital engagement marketin9, youth development. operatii)ns and business SUPPOrt f3 of these roles were vacancies created from staff leaving on their own development Joumeys). Additionally, in this past employment. The visual be ear we further developed athways for young people into adulthood and voyage journey indudin ow represents the entirety ofthe young person's pathway wth us, from the 3- contribution to sustainabP P ersonal development. voyage pro e ocean environment and opportunities ression, accreditation and qualifications or apprenticeships and employment In reviewin the Trusys aims. objectives and planned act(vities the Trustees have com lied with the duty in section 4 oPthe Charities Act 2011 to have due regard to the public benefit guidance puEiished by the Charity Commiss¥on. JOURNEY 41% Tall Ships A$SA￿-1 ¥OVVll ?RUSI PAnlWA>S over 1200young people to goin experience & access to the woter In 2023 VdL4•7 Lca(lership7+ day5 Iowagesl YT 16 voy(V￿¥r t6+dws Exploration 5+ days 80 voyages1 yr OUR BENEFICIARIES Our young people on our 3-w)yage programme We￿ a hu throughout the 12-months of the year to offer more cha e inspiration to us all in this past year. From voyaging enging conditions on our voyages of Empowemient and Leadership, to focusing on the space in between voyages when they are back In their communities refiectin on their voya e experience. continuing to build on their ersonal social and lanning for t eir future enga ractical skills development an rurther training and career ement with Tall Ships YOUK Trust (Tsyf) througE future voyages. to considering TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 Sup le (sometimes through their decision makers) to feel connected to each other and to rust was a ey area o ocus in this year. Through our Youth Development & Outdoor Leaming team, social channels and our web plarform. we will be enhanang the ability for young people to feel even more connected in the coming year. We also develo ed stron relationships with young people and th￿r decision makers in Northern Ireland, Scotland and northeast I land. le will continue to ensure more young people can access our 3-voyage programme from acr05S the UK in e coming year. For a small group of our young people who had embarked on their journey with us over the last few ears, they achieved the ultimate success of completing the Fastnet 2023 ocean race in some of the most clallenging conditions ever experienced (more on this on page 12). IMPACT We measure the impact of our work usin Theory of Change alongside the Personal 2 pr ocesses based on The Association of Sail Training Organisation evelopment fraMeW￿k from Ofsted for education. We now keep in contact with our young people over a longer period of time than ever before and have plans to develop a longitudinal stud th a research partner (with expertise in the fields of outdoor leaming and sport). This will help us understanland articulate how upstream investment in our programme improves outcomes for young people and therefore reduces the downstream impact and the need for social. health and justice services. resulting In a samng to soaety. Since the three-voyage programme was introduced in February 2023, more than 1.200 young people have voyaged with us. This Is the highest number of young people taken on the Challenger vessels In one year since they were acquired In 2008. Young people from across the UK face adversity in their daily lives from ersonal circumstances and lived experiences, to additional needs that at times a￿ not meL Post-cowd, the worflis far more aware of the individual challenges faced by so many. as more and more health, neurodiversity, barriers to leaming. as weir ung people and adults Struggle with their mental and physical as aspects of geographical, economic. and social disadvantage. Our work directly addresses these diverse challenges by extending support and fosterin le. In 2023 alone, 80% of our youn le were from disadvantaged back rounds. pathways for young were male, 41% were female, an those young people, identified a5 belonging to the global majority, emphasising our dedication to serving diverse and marginalised communities. During 2023R024 we ran over 80 Exploration voyages. I l Empowerment voyages and piloted our first Leadership voyage In January 2024. As the programme evofves, the feedback we receive from our young people and their decision makers Is being used to shape our delivery model, as this will ensure the best possible outcomes are achieved. 2023124 outcomes for young people indude: > More than 800 Royal Yachting Association certificates were awarded. > Supported more than 130 young people to achieve their DofE expeditions and Gold Award residentials. > Over 120 young people received a recommendation to retum and train as a volunteer. giving them the opportunity to support others and work towards a career in the maritime industy. > 100 young people participated in sessions with the RNLI lifeboat centres in Cowes and Poole. 12 young people participated in a QPAA session with Pip Hare Ocean Racing in Poole. > 20 young people took part in team building sessions hosted by the Royal Navy. > 18 rungieople had a wor* experience placement with Tsyf. induding schools and apprentices from ence. quipment and Support (part of the MOD). TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 EMPOWE￿£￿r 0000 LEA>E£SHIP The young people on their personal journey Mrith us develop into stron our work, young leaders, ¥oung ambassadors and role models for t members of the community. advocates of ose just starting OUL Throu h their TSYT experience, many go on o a career In the mantime sector. both on and off the water, inclu Ing electrical en Ineenn . ocean sailors, Master Mariners, the Merchant Navy and Royal Navy. Their memories and experiences wit% Ts￿ Relp shape their future lives and decision Making. Jed (21. first sailed wlth Tsyf In 2018. Was part of our 2023 Fastnet youth crew and Is now a 9ualified Watch Leader).. -coming from the Northeast there a￿ no op ortunifyes to beapart ofsailing In the area. M first experience with TSYT was in 2018. Then I was s£y and lacked confidence in my decisions lea Ing to a heavyreliance on others Butduring my first voya e, Ifoundllovedthe teamwork aspe£t of the whole pro￿& Prepanng the vessel to hoist the sai was the most challenging yet invigorati task as it required communication to succeed which reallpushed me out ofmy comfort zone and¥mve me to take charge of the situation whjch helped buil my confidence. The conhdence TSYThelpedme buildledme to push mysemfvrtherandachieve an appren&ceship in a traditional craft In an enwmnment which before TSFTI wouldny have dared to approach- Jessie {19. has a learning and physical disabili leve15. Since leaving school she has found TS that has prevented her from Completing her A and partlclpated in our first Leadership voyage. She now wants to pursue a career in the marine sector.): -ltregainedgreat insightinto mystrengths on the boat It was ￿all leadership. Ihave deve great to feelmoTr confident as the days went and to be able to take more opedmyleadershi and be led by others in a supportive an skills on deck andin thegalley. We weregiwen space to lead non-judgemental en￿￿nment Th￿ gave me confidence to le3dother5 in areas l am notas confidentin.~ TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YFAR ENDED 29 FEBRUARY 2024 ACHIEVEMENTS AND PERFORMANCE Youth Dwelopment & Outdoor Learning During the period covered b this report we have continued to grow our programme resultin e with TA. the highest number since o Joining a voya were from of offending. neuro rounds considering a wde range of in Iversity and postcode poverty. uencing factors from young carers, y¢iung people at risk As we grow ourclient base. weare maintaining the near 25%growth in new dients. with 75% retuming organisations, as we extend our programme more actively to indude the winter period. this c(x)tinues to support our overall growth In the number of young people and deCi￿On makers. in1200 Throu9h our hub developments. across the UK we are continuin to engageyoung people and theirdecision makers In their home region to c￿ate access to the water and youth aevelopment opportunities for those most In need. Our programme Is strengthening our time and connections In Plymouth. Belfast and Greenock as well as our home hub of Portsmouth. Extending our reach and time spent in ourwest coast hubs, allows us to reach across the breadth of the UK identifying concentrations of disadvantaged young people who could benefit from our 3-voyage journey. Within ourvoya e programme. we are committed to the provision of qualifications and accreditation with the Duke of Edinburgh Gogd Award through ￿SIdential and expedition secttons and Youth Scotland's Dynamic Youth Award completion on all Scottish voyages for youn the completion of Re people. In addition. ashore, we are expanding our skills set through i5tered and Accredite2practitioners with Institute of Outdoor Learnin first apprentice at Ts& in 2024, a Youth Support w0￿er ￿prenticeship su ported by the and commencing our ational Youth A The first step In many to providing placements. woth expenence and now fuyiy employed apprentices with Tskency. Fleet Activity and Maintenance Our current fleet !four 72 foot Challengers and one 55 foot Ketch) were busy delivering 174 v around 28,000 miles. 2023 saw the new 3-voyage programme fully Integrated into the calen ages and covering es the first followed b ar with Exploration Is and com six further Empowemient voya in 2022) is indica lexitie5 olthe Empowerment and Leaders es and our first Leadership voya e. Given the additional ive of how hard the fleet is working. ip voyages, the totsl number o voyages (up from 153 A number of Hubs were visited including Plymouth, LiverpooL BelfasL Greenock and Ipswich. with voyages in and out of GTeenoc Three Challengers took art in the Fa5tnet Race, thi5 time one of the adult crew supported (fully financially as well as in other ways) a yout entry. This was a very effective and powerful experience with many opportunities for all involved to leam and develop. In 2023 the plan for the Challengers to be operational to circa 2(140 detailed work This will re uire si nificant Investment between 202Erogressed with further scopin9 as well as rnore maintenance. Work was a7 2ertaken with re and 2029 In addition to routine and ongoing soun er sized vessel on ards to expandin the fleet with an ambitous plan In the short longer-terrn plans to increase t Ine in 2025 as weiP35 consideration for other types of vessels and eet capacity to meet demand. Safeguarding and Incidents In 2023 the Safety Forum was further enhanced and the team widened. The Voyage Resourang & Reservations Mana er. Fleet Readiness & Maintenance Managerand Finance. Data & IT Manager now run the monthly meetings, with t2e CEO, Head of Operations and Desi9nated Safeguardin looks at and shaTes lessons learnt from Incidents and any tren Lead joining for quarterly reviews. The Safety Forum s or areas that need further work to improve safety. Trustees are updated on incidents monthly arbd rn0￿ fomially every quarter. Work to improve safety culture continues specifically to include greater reporting of near misses and openness to considering and sharing leamings. There were no Major Incidents declared in 2023. TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND sfRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 Safe uarding training remains a priority for all and ensurin Tsdunderwent a com we are compliant in our use of DBS Enhanced checks, ex-offenders and Handelian￿ inspection in January 2024. &ith the addition of two policies for the Recruitment of ing of DBS Certificate Information. we are fully compliant submitting a checks a year showing cotnmitment to the safe recruitment and ietention of volunteers. fre roximately 100 DBS members of the team. ancers and employed Raising Awareness and Increasing Our Reach We are focused on removTn programme, and a5 part of t sailing season). the barriers which prevent oung people from accessing our youth develo 15 now operate throughout aYI 12 months of the year (as opposed to the tra ment ition31 We have also e5tsblished regional hubs in Pl Ipswich. We run voyages from these locations. mouth Swansea. BelfasL Whitehaven. Greenock Newcastle and ich afign with the top 20 areas of deprivation in the country), for arts of the year. meaning that we have voyages available from within a two-hour reach from any location in the UK. e will also run engagement events from each of these locations to raise our profile locally. This more effective utilisation of our fleet and improvement in accessibility has already significantly increased the number of young people we We￿ able to supporL In tems of our digital presence, 2023/24 saw 38K users visit our website, and 12% of these users came from social media. In the satne period, our total organic reach across our social media channels was 284L We have a new Digital. Engagement and Marketin9 team in place who will contsnue to drive growth in this area and bring to life our plans to create the T5￿ digital community. Our intent Is to establish a di communicate with the Ts￿ community with an initial focus on young people, their ital platfomi to engage and ecision makers and volunteers as well as alumni, members, donors and key stakeholders. 2023/24 was an effective year in tenns of audience enga in April. Challenger 4 spent a week in Royal Albert Doc emenL Our first regional Hub event took place in Plymouth ITV 'Good Mornin as part of the Eurovision celebrations. which included an partnershi Britain. superfan event. The summer was jam-packed V￿th events includin9 our charity with Bn2ish Classic Week and Cowes Weel as well as our first everyouth crew competing In the Fastnet race. We aPso had an exciting media opportunity provtded to us by. Run Communications. which saw British Kitesurfer and Olympic trainer Maddy Andersonjoin a crew from Youth Action Wiltshire for the final leg of their voyage. Significant presented g ress and media covera e was achieved through events and campaigns includin Dan Snow. This incluSed articles lod Classic Yachts, Yachting ublished In the Dail Ex Sea, Sailing Gloucestershire s¥andard. eal press, BBC News, Fundraising Despite a challen during 2023124. ing economic climate and fundraising lands(ape. we achieved £1.104k in fijndraising income Is Is an Increase of £96k {excluding the £150k prior year103n waiver) a ainst the previous and represents a 32% growth in fundraising income in 2 years kup from £834k in 2021/£ . This is an incre ear ible achievement and testament to the significant support we recewe om our loyal funders and onors, Tnany of whom support us year on year. We raised £581 k from over 130 Trusts and Foundations. and more than £58k combined from our hiihly successful BBC Radio 4 Appeal and Bi Give Christmas Challen parl and we are very gratePul to the adult crew who e. The 2023 Fastnet Race saw three Cha engers taking ever youth crew to participate. etween them also raised more than £48L enabling our first We now have a greater focus on digital marketing and enga ement alon with several other excitin activities planned. Thi5 includes developing our membership schemefu er, our Britis assicweek and Cowes deek chartty partnerships. our 'Round the Island Fundraising Challenge. and our first ever Spinnaker Tower abseil fundraisin9 challenge. 10 TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 Fundraising {cont .-.) We would like to say huge thank you to all of the trusts and fcwndations, companies individua15 and members who continue to fund our work This Includes the Aiken Family. the Y C Chan Chantable Foundation, the Har reaves Foundation. John L on's Charity. The Corporation of Trini of Shi wri Clare Foundation. aritable Trust and our corporate fundraising partners Saltus and Ba￿att Developments for their long-standing support. Tall Shi s Youth Trust is a signed-up member of the Fundraising Regulator. The Trust is committed to ensuring ethical Pundrai5ing.practices, and TTUStees regularty confirm this is the case. We received zero complaints this year about our fundraising. Volunteers and recommendations. Pathways into volunteering are varied and established with TS￿. Throughout 2023/24. both youn eo le and adults recommended by our Ts￿ crew (135 for Training Watch Leader (fwL) and Watch Leader hFL), ¥ Youth Mentor and 3 Mate), have joined Volunteer Crew Training weekends and once signed off embarked on their continuin9 journey as a volunteer. As skills and competencies have been developed to pro ress our team. our (TWL). Youth Mentors and Volunteer Mates, have clear developmental pathways for frogression t rou h the roles onboard. For our young people under 16. they can return to voyage and support the ro ewithin the watc onboard, becomin a TWL when they turn 16. In addition, our Young Ambassadors team commencin% th we have a number of young people supporting our events and publications throug in 2023 continues to grow an to guide and inform other& eir own Journey expenences As a result of extending our reach. we are seein through sailin clubs and those who are on RY more Voluntee￿ joining us throu h events. talks and presentations Instructors. trainin9 courses with members oPour freelance teams who are RYA is additional source of volunteers Is bringing a wealth of experbse In youth work, Sailing and role models to grow our team and support our work We continue to be one of the la est issuers of Royal Yathting Association (RYA) certificates in the UK, issuing nearl 800 certificates in 2023124 {494?YA Start Yachting: 269 RYA Competent Crew). Most of the young people who sai with us have no sailin Yachtin certificate. wi expe￿enCe, but by the end of their many also going on to achieve their R e, the majority will have earned their RYA Start intheR A training Scheme. mpetent Crew certificate. This is the first step There are a range of courses in this series for young volunteers. We currently offer development up to and including RYA Watch Leader level and support our youn eo le through to Mate In term5 of training and sea time. 5ignp05ting qualifications with RYA providers. Ad2itioPnaif. TSYT and Trinity House linkto providefijnding foryoung people to achieve maritime qualifications includin9 RYA ¥achtmaster Coastal. Recommendations Supporting the 3-voyage programme. we also offer a ￿cOmMenda￿.0n for future voyagin people to continue their Journey throu themselve5 forward for selection for h Empowem)ent and Leadership voyages as we to encourage ouryoung as the potential to put astnet and other events surrounding maritime careers opportunities. In following seven Empowemient vo voya9es combined and 2023124, 384 young people were recommended to return to Empowerment and Leadershii 024. our dedicated team of young people continue to a vocate for those a ural leadership voya9e In January out to start their Journey supporting through follow up engagement opportunities in careers, fundraising and work experience. Duke of Edinburgh's Award As an Approved Activity Provider for Duke of Edinburgh, we continue to See growng interest in completing the Gold Award residential onboard ourvoyages (vo es of 4+ nights qualify), resulting in over100 their qualificatton with as part of it. aoig Ex editions are currently held onboard the oung people completin letch and have welcom back retuming organisations to cotnplete their full Gold Expedition training and expedition5 onboard. 11 TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 FASTNET 2023 On 22nd July, 12 intrepid youn in escribed the first 24 hours of the 2822 experience of their lives. The !Irst update received from Rolex Fastnet H& seop.le set out on the most challen race as brutal first ni ht at sea leadin to 1 S vessels not starting. 86 vessds retiring, HMS coastguard involvement in 28 inodents inclu Ing one sinking. our dismastings and some of the longest standing veterans and previous winners retiring from the rac Our challen safely com er crews made it through the first night. continuing throu h to achieve amazing results. all three crews the Fastnet 50th edition. The 695nm course from t%e Solent to Cherbourg Ma the Fastnet Rock off the souvh tip of Ireland is a challenge to even the most seasoned racers, but for our youth crew. this was new. ern exciting, temfying and incrediblel Emma. {Ch4 youth crew) "I thinkone ofmybiggestchallengespersonall wasbeing able to staymotlV3ted 3ndcontinue to bepositiwe when the conditions were so rough. One o¥the things thatl ap reciate about my team was the fart we all understood we We￿ going through rough times t etheran each other to make the harder times more bearable whether this was everyone tried rough endless rounds of anties or evenjust a hot chocolate. Before the Fastnet selectioo Id only ever sailed once so my sailing abijrties andunderstanding ofhow the challengw5 work have definitelyimproved.- Our youth crew campaign was fully funded by our team of adults onboard Chl spending time together before and after the evenL our sponsoring crew were blown away by the youth crews experiences and dedication: They are so resilient and the Inspirabonal and theyshoulda know how to overcome their limits. Meeting them on the boat was Ibeproudof theirmonjentous achievement Completin the Fastnet is another 2023 goal for me too. Having been medically retired fmm the Army with an￿e1/pl5D lhave setmyselfa number ofch311enges Fastnet has helpedreinforce the concept of living in the moment andthat whateveris happening it ￿l/alwaYS end.-Jonathon (Ch2 adult crew). The commttment to develo Eing our youth presence at Fastnet and building pr people through a racing pat way Is ongoing as Is our commitrnent to building Inc ramme o U5ivity an portunities for young iversity on the water. "Itre completed the ra￿ 6 times now. In 2021 onl 12% of the crews were women. I hope that having 3 women on the Ch4 TSYT tearn 3nd a 50/50 geJer split onboard Ch4 ￿1/ inspire greater diversity and inclusion Mthin the sport-. Skipper, Sue {Ch4) Following the great success of Fastnet23. the Fastnet 2025 campaign has begun! The biggest hi when we hear hlight has to be crossing the finish line ￿th the whole team on deck. The applause that erupted te8m."Emma {Ch4 yout come over the radio felt like a huge ￿lebratiOn of everything we were able to 3chieve as a crew) 12 TALL SHIPS YOUTH TRUST REPORT OF THE TRusfEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 RISK REVIEW The major potential operational, reputation and financial risk profiles to which the Trust is ex osed. as identified by the Board. are reviewed on an annual basis and systems enhanced to mitigate those risL. They fall into five categories. as described below. Resource Insufficient number of competent and trained crew/staff. Insuffiaent number of seagoing volunteer5. Inability to attract and retain crew/staff. with competitive remunerati{￿ and fle￿ble working. Loss of key members of crewlstaff threatens effectsve voyage operatsons, donor management and growth plans. Funding Cashflow insvfflcient to operate the charity. ChariW5 net a55ets insufficient to cover restricted funds (note 19). Asset- to-loan ratio inadequate. Vo new funds identified to mee e income. routine fundraising and special initiatives fail to meet targets. Insufficient growing need. Operational Global event impacts on voyage programm& Certification failure o! a vessel threatens programme. Crew shortage, medical, Illness, or defects prevent vessel voyaging. Incident or senous accident to crew, staff or the public while operating the vessels. Incident at sea damages a vessel. Hub closure due to an onshore incident Reputational Safe9uarding inadent with clienL YP, voya er or team member as the Trust row5 across the UL Incident at sea leading to bad ublicity. Finanaal sustainablity and fundraising ethicaI risk FaiPure of IT system security, CRM. GDPR and data breac Developmental Development work fails to achieve targets. Hub facilities ineffective. Inability to secure next fleet vessel. For all these risks and their elemental constituents. mitigation has been PLrt in place. Our Finance. Audit and Risk Committee regularly reviewour Risk Register. to ensure appropriate mitigation measures are in place and monitored. In tum, our Board sUPPOrt and monitor this process. Fundraisin and Resourcin are uncertain and therefore higher risl given environmental and economic conditions in the UK. %he residual ri52 at 29 Febnjary 2024, for the other risk areas, is assessed to be low. ENVIRONMENTAL POLICY Our Sustainabilityworking Group (SWG . led by our management team. is d￿le[OpIng our pathwa accreditation in environment sustainabi young peo ity over the next few years. On ourvo¥ages, alongside an come. We le are the wor*force driving ocean sustainability and protection o ave committed to the RYA Green Blue Pledge to Respe¢ Enj our planet for future generations to and Protect our inland and marine waters, wildlife and habitats. We have also committed to su throughout our thousands of miles voyaging around the ulp ortin asus ainable ocean project wth the IMO emationally. towards ISO 13 TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 STRUCTURE. GOVERNANCEAND MANAGEMENT Tall Ships Youth Trust is a charitable company limited byguarantee. The governin documents are its Memorandum and Articles of Association. For the purposes of Company Law. the Trustees liste on page 2 are the directors of the company and are elected by resolution of the company at a general meeting. The company is administered under the control of the Trustees, sittin direction of the Trust and its subsi as a Board. who have general control of and res iary companies, and delegate day-to-day responsibi onsibility lor the strategic ity to the Executive team. The trading operations of the Trust are devolved to its wholly owned subsidiary. Tall Ships Limited. As well as appointin directors to the sub51diary company, the Board can establish other committees to deal with different aspect5 oPthe Trust's worl as necessary. Trustees are conscious of the ACEVO/NCVO/Charty Commission sponsored 'Code of Chari Govemance. and have been applying considerable effort towards full compliance. In ternis of leadership, one new rustee joined the Trust In this reporting year, following screening and selethon on the Board's behalf by a Nomination and Remuneration Committee. This con515ts of four Trustees Includin the Chaiman and Vice Chairman. Candidates are Invited to meet at least two Members of the Committee and the 2hief Executive. All new Trustees also receive a full briefing on the Trust's finanaal performance, business plans and key issues, and meet ke[employ.ees. On conclusion of this process. the Committee recommend candidates to the Board which decides on t e apwntment and. If successful. co-opts the individual until the next AGM at which their ap￿intment is ratified by the members. The Trust has an induction.piografflme for Trustees. The programme includes visits to the Trust'5 Portsmouth hub and main operating base, Introduction to new youth Initsatives. covera being fulfilled. the role and duts.es of the Trustees. company and charity e of the charitys aims and how they are aw and govemance. and financial and risk management. We are keen to promote a spirit of openness within the chartiy - between Trustees, Executives, Beneficiaries. Volunteers and Supporters. Use of virtual technology for our AG￿ combined with a physical meeting. ensured a high level of engagement across our members. During the year. we have been pleased to appoint Martyn Layng to the T￿stee Board. Martin has a significant technical maritime back round and will contnbute much to our long-term maintenance and strategic dirertion of our eet. We sa has rowing Challenger een a critical member of the oodbye with sincere thanks to our long-setvin oard since joining in 2014. devoting considera trustee Philip McDanell. Philip e amounts of his time to our Finance Committee and has helped steer us through some very challenging years, including Covid. Also leaving us is Kiera Nazarin who has been our voice for the young peo le. hamng sailed on our vessels and takin of Watch Leader. Both will be sorely missed and we thank #em for their valuable contribution to the up the post rust. to the Board about financial We delegate responsibility to the Finance. Audit and Risk Committee for reportinEe financial statements and risk matters Including forecast cash flows and our risk profile. The Committee considers t register, meets Fegularl auditor5, and reviews t with the Chief Executive and Finance Director. and oversees the appointment of the extemal eir findings. Day-to-day.management of the Trust is delegated to the Chief Executive. who oversees the on-shore and off-shore operatsons Induding youth devdopmenL voyaging. Income generatson and business functions. 14 TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 FINANCIAL REVIEW Durin ear the Trust generated overall income of £1.893.250 (2023 - £1.748,759). The majority £1,104,351 (2023 £1,R8,43¥) bein donations, lega￿ income and membership income from supporters. Direct voyage fees of £781,382 (2023 _ £g86.9381 were received from the voyage programme and combined with restncted bursary funds of £699,227 {2023 - £726.028) ￿SuItIng in £1.480.609 vo Tall Ships Limited to run voyages throughout theyear. Ta e income (2023 - £1.312.966) for the trading subsidia (2023 - £236,081). ips Limited generated a surplus in the year of £322.70% The consolidated 9roup result for the year was a su lus on duced by a deficit on restncted voyage funds of £9Y. &3 _ defiat £122.244). 424 (2 eneral funds of £136.933 {2023- surplus £108,111), Overall, the unrestricted funds increased to £377.889 (2023 - increase to £240.956. however the ￿stricted and bursary funds reduced from £922,458 to £831,034. There was no chan e in the small alance of endowment funds. The grou rbet asset from £1,102,632 to 11,329.343. The overall cash flow position was a reductton in cash balances 051tion reduced osition was therefore £1.260,055 - (2023 _ £1,2P4.546) and the Trust entityj £49,081 (2023 _ reduction of £162,169). There are material uncertainties around the tharity5 ability to continue as a going concem due to the timing of cashflDWS. This has larg.ely been caused by the si the worsening economic climate. as described in nificant reduction in the generation of donations associated with e going concem accounting policy on page 25. FUTURE FINANCIAL PROSPECTS AND RESERVES POLICY The removal of substantial Covid restrictions has had a significantl capacity over this and coming years. Our current operating modl P ositive impact on our abili normal trading. is effective. producing a cash We continueto repayhistoricloan debtsfollowing the di with The Corporation of Trinity House with repayment p sal of the brig. We have restrurtured the loan agreement ans over longer tenns and repayments have commenced. We are very grateful for their continued sUPPOrt and understanding. The final payment of the liability to the Merthant Officers Pension Fund was made in September 2023. further improving our debt position. Our new Strategic Plan is in full operation. covering the 5-year period 2023-2028. We have a strong and diverse Board of Trustees alongside competent. trained and motivated on-shore and off-shore staff. led by a CEO experienced In fundraising. commercial business and leading change. As part of this work, we are evaluatin our c3pacity and to meet the dernan the plan to raise sufficient funds to acquire an additional vessd to increase position going forward. or our sep4ices. We will then be in a stronger and more sustainable financial The Trustees, long-temi objective is to build the Trust's reserves to protect our charitable mission against unexpected events. We have therefore set a medium-tem) otential gap between income and expen oal of building available liquid assets of unrestricted funds to meet Iture, to build suffictent assets to cover restricted funds and to such levefthat unrestricted funds return to positive balance. to operate ai full ow surplus under eo who are from d15advantaged backgrounds. our net operating Income. an le we take to sea. parttculady those The Trust y￿11 continue to make progress in tems of the number of youns p Lnd our raising capaaty. 15 TALL SHIPS YOUTH TRUST REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 29 FEBRUARY 2024 STATEMENT OF TRusfEES" RESPONSIBILITIES The Trustees, who are a150 Directors of Tall Ships Youth Trust for the purposes of com preparing the Trustees, Report and the finanoal statements in accordance wtth applica law. are responsible for aw and United Kingdom Accountsng Standards (United Kingdom Generally Accepted Accountsng Practice). Company law requires the Trustee5 to the financia rrepare financial statements for each financial year. Under company law the Trustees must not approve statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the 9rou lication of resources. includin and expenditure, of the chantabf and of the incomin9 resources and aP&ese financial ststements, the the income required to: e group for that penod. In prepanng rustees are > select suitable accounting policies and then apply them consistently. > obsenie the methods and principles in the Chartties SORP 2019 (FRS 10 > make judgements and estimates that are reasonable and wuden( > State whether applicable UK Accountin disdosed and exptained in the financia Standards have been followed, subject to any material departures ststements: and > p￿p.are the finanaal statements on the going concem basis unless it is inappropriate to presume that the chantable group will continue In operation. The Trustees are responsible for keepin adequate accountin records that disclose with reasonable accuracy at any time the financial position of the charita2ie company and enabqe them to ensure that the financial statements com with the Companies Act 200& The Trustees are also responsible for safeguarding the assets of the charita company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other Irregulanties. Statement as to disclosure of i￿OrMatIon to Auditors In so far as each of the Trustees are awa￿". - > there is no relevant information of which the charitable companrfs auditors are unawa￿. and > the Trustees have taken all necessary step5 they ought to have taken to make themselves aware of any rdevant audit information and to establish that the auditors are aware of that infortnation. This reporL which also meets the requirements of the Directors. Report for com an law pur In accordance wth the special provisions applicable to small companies and d Karities oses has been pre ORP 2019 {FRS 10 ared Auditor5 Moore (South) LLP have expressed their willingness to continue in office, and a resolution for their reappointment for the next financial year will be put to the Annual General Meeting. ON BEHALF OF THE TRUStEES David Aisher Chairman of the Board of Trustees Dated: 27 February 2025 16 TALL SHIPS YOUTH TRUST REPORT OF THE INDEPENDENT AUDITOR FOR THE YEAR ENDED 29 FEBRUARY 2024 Opinion We have audited the consolidated financial statements of Tall Ships Youth Trust {the 'charitable parent company) and its subsidiary (the 'group') for the year ended 29 February 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets. the Consolidated Statement of Cash Flows and note5 to the financial statements, including a summaryof significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, induding Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial ststements: give a true and fair view of the state of the group's and the charitable parent companls affairs as at 29 February 2024. and of the group's incoming ￿sOurCeS and application of resources. including its income and expenditure. for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.- and: have been prepared in accordance with the requirements of the Companie5 Act 2006. Basls for oplnlon We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorf5 re¥)on5ibilitie5 for the audit of the financial statements section of our reporL We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffioent and appropriate to provide a basis for our opinion. Material uncertainty relating to going concern We draw your attention to the going concern accounting policy on page 25 in the financial statements, which indicates that the group has a deficit of assets making up unrestricted funds of £1.242.315. As stated in the accounting policy, these events and conditions. along with the other matters as set out. indicate that a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern. Our opinion is not modified in respect of this matter. In auditing the financial statements. we have concluded thatthe trustee's use of the going concem basis of accounting in the preparation of the finanaal statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concem are described in the relevant sections of this reporL 17 TALL SHIPS YOUTH TRUST REPORT OF THE INDEPENDEKf AUDITOR FOR THE YEAR ENDED 29 FEBRUARY 2024 Other Inforniatlon The other information comprises the infomiation included in the trustees. annual repor¢ other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other infonnation contained within the annual report. Our opinion on the finanaal statements does not cover the other information and. except to the extent othernise explicitly stated in our repo¢ we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infonnation and. in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there 15 a material misstatement of this other in*omiation. we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exieption In the light of the knowledge and understanding of the group and the charitable parent company and their environment obtsined in the course of the audit we have not identified material misstatements in Directors, ReporL included in the Trustees. RepoTL We have nothing to report in respett of the following matters in relation to which the Companies Act 2006 requires US to report to you if, in our opinion= adequate accounting records have not been kept by the charitable parent company, or returns adequate for our audit have not been received from branthes not visited by us: or the charitable parent companys financial statements are not in agreement with the accounting records; or certain disclosures of Trustees, remuneration specified by law are not made. OT we have not received all the information and explanalions we require foT our audiL or the Trustees were not entitled to prepare the consclidated financial statements in accordance with the small companies. regime and take advantage of the small companieg exernptions in preparing the Trustees, Report and from the Tequirements to prepare a Strategic ReporL ResponsibiIities of tyustees As explained more fully in the trustees, responsibilities statement Set out on page 14 the trustees who are also the directors of the charitable parent company for the purposes of ccxnpany law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of consolidated finanaal statements that are free from material misststemenL whether due to fraud or error. In preparing the consolidated financial statements, the trustees are responsible for assessing the groups and charitable parent companrfs ability to continue as a going concem. di5dosing. as applicable, matters related to going concern and using the going concem basis of accounting unless the trustees either intend to liqutdate the group and parent charitable company 01 to cease operatiorE or have no realistic altemative but to do so. 18 TALL SHIPS YOUTH TRUST REPORT OF THE INDEPENDENT AUDITOR FOR THE YEAR ENDED 29 FEBRUARY 2024 Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditorfs 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 consolidated financial ststements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website aL WWM.frc.org.uVauditorsreswnsibilitie& This de5CriPtion forms part of our auditorfs report. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outtined above. to detect material misstatements in respect of irregularities. including fraud. The extent to which our Procedu￿ a￿ capable of detecting irregularities. including fraud 15 detsiled below. Explanation as to what extent the audit was considered capable of detecting irre9ularities. including fraud The objectives of our audit in respect of fraud. are.- to identify and assess the risks of material misstatement of the financial statement5 due to fraud- to obtain Sufficient appropriate audit evidence regarding the assessed ri5k5 of material misstatement due to Iraud. through designing and implementing appropriate responses to those assessed risks,. and to respond appropriatety to instan￿$ of fraud or suspected fraud identified durin9 the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company and the group. Our approach was as follows: The engagement partner selected staff for the audit who had prior knowledge of the client and who had the required competence and skills to be able to identifyor recognise non-compliance with laws and regulation& We assessed the risk of irregularities as part of ouraudit planning, and ongoing review, including those due to fraud, management override was identified as a significant fraud risk This is due to the ability to bypa55 controls through inappropriate expenditure and accountir¥J policies adopted. Revenue recognition was also identified as part of our audit planniNJ as a significant risk to the audit. Although the processing and recording of transactions is straight fo￿ard, there is the risk that revenue might not be recogni5ed within the CO￿eCt accounting period. Some income received is restricted in its use and a 5ignifIcant risk was identified regarding the correct classification of income between restricted and unrestricted funds and that the expenditure against this income was in line with any specified restrictions. We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and we considered the most significant to be the Companies Act 2006, the Charites Act 2011, the Charity SORP. UK finanaal reporting standards as issued by the Financial Reporting Council and UK Taxation legislation. We considered how the charitable company complies with these requirements by discussions with management and those charged with govemance. 19 TALL SHIPS YOUTH TRUST REPORT OF THE INDEPENDENT AUDITOR FOR THE YEAR ENDED 29 FEBRUARY 2024 We inquired of management and those charged with govemance as to any known instances of non- compliance or suspected non-c0rnpl1an￿ with laws and regulation& Consideration was also made of the intemal controls in place to mitigate the identified risks. We assessed the control environmenc documenting the systems. controls and processes adopted. The audit approach incorporated a combination of controts vthere appropriate. analytical review and substantive procedures involving tests of transactions and balance& Any irregularities noted were discussed with management and additional corroborative evidence was obtsined as required. The consolidated financial statements of the group incorporate the results of the subsidiary company. Moore (South) LLP are auditors to the whole group and the same approach has been adopted to the subsidiary company as is appropriate to that entity. In response to the risk of fraud through managemerrt override we". performed analytical procedures to identrfy any unusual or unexpected relationship& tested journal entries to identify any unusual transactions: assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; reviewed transactions With ￿lated parties, in particular the management charges and transactions with group entities,. reviewed the disclosures within the finanaal statements to ensure they meet the requirements of the accounting standards and relevant legislation- and tested a sample of invoices to ensure expenditure was for bona fide expenses and has been appropriately authori5ed. In response to the risk of incorrect recognition of income we: performed analytical procedures including comparing revenue received to the prior period and to budgets: vouched a sample of donations and grants received in the year to supporting documentation: and tested a sample of gifts and donations re￿iVed around the balan￿ sheet date to agree incorne has been included within the correct accounting period. In response to the classification of income between restricted aTKI unrestricted we: agreed a sample of grants and donations recorded in the nominal ledgerto source documentation to ensure any Testrictions were correctly identified. agreed a sample of expense5 incurred to ensure that they had been allocated to the appropriate fund: and obtained and revtewed fund analysis workings to ensure that the calculations were correct and agreed to the accounting records. 20 TALL SHIPS YOUTH TRUST REPORT OF THE INDEPENDENT AUDITOR FOR THE YEAR ENDED 29 FEBRUARY 2024 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 wewould 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. Use of our report This report is made solely to the charitable parent companfs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2(X)6. Our audit work has been undertaken so that we might state to the charitable parent compan￿5 members those matters we are required to stste to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable parent company and the charitable parent companls members as a body. for our audit work for this report, or for the opinions we have formed. 9 St Johns Place Newport Isle of Wight P030 1 LH Sue Lucas {Senior Statutory Auditor) for and on behalf of Moore (South) LLP Chartered Accountants Statutory Auditor 27 201£ 21 TALL SHIPS YOUTH TRUST CONSOLIDATED STATEMENT OF FINANCIAL AcfiviTIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 29 FEBRUARY 2024 Unrèstricted Funds Restrtcted Endowment Funds Funds Total Total Funds Funds Year to Yearto 291212024 2812/2023 2024 2024 2024 Note Income and Endowment5 from: Donations and legacies Investments Government grants Charitsble activities 762.637 5.526 341.714 1.991 1.104.351 1,158,432 7,517 3,389 781 382 781382 586 938 Total income 1,549,545 343.705 1,893.250 1.748.759 Exp•ndlture on: Raising funds Charitable activities 360.721 1051 891 360.721 371,671 1487 020 1 391221 435 129 Total expenditurè 1.412.612 435,129 1.847.741 1.762,892 Net movemènt In fvnds 136,933 (91.424) 45.509 {14,133) Transfer be￿een funds Other recogni5ed gains l (losses) Gain on revaluation of fixed assets 854 810 Net movement in funds 136.933 (91,424) 45.509 840,677 Fund balances brought foNiard At 1 March 2023 240.956 922.458 51.132 1.214.546 373.869 Fund balance5 carried forward At 29 Febnmry 2024 377,889 831,034 51.132 1,260.055 1,214,546 The accompanying accounting policies and note5 form an integral part of these financial statements. All operations of the Trust and its subsidiaries are classed as cOntin￿n9. There was m movement on the endowment fvrKls in either the current ￿ prior year and $0 no separate i￿ome and expenditure account is included. 22 TALL SHIPS YOUTH TRUST BALANCE SHEETS AS AT 29 FEBRUARY 2024 Consolidated Tall Ships Youth Trust 2912R024 28r212023 291212024 28/212023 resLitsd restated Fixed assets Tangible assets 11 1,745,730 1,887,083 1,745,730 1,887,083 Current assets Stocks Debtors Investments Cash at bank and in hand 9.081 86,111 6,642 192739 8.780 66.550 6.124 241 820 250 70.497 6.642 250 48.804 6.124 12 13 294.573 323,274 223,446 281,402 Credilors." amounts falling due within one year 14 500 063 400 112 Nel wrrent liabilities 306 796 118710 Total assets le55 current liabilitie5 1.540.240 1.580.287 1.609.528 1,768,373 Creditoys: amounts falling due after more than one year 15 280 185 365 741 1.260.055 1.214,546 1.329.343 1,402,632 Capitsl funds Endowment funds 16 51,132 51.132 51,132 51,132 Income funds Restricted funds Revaluation reseNe Other unrestricted funds 17 18 18 831.034 922.458 831.034 922,458 1.620,204 1.735,524 1,620,204 1,735,524 1242 315 1494 568 1173027 1306 482 1.260.055 1.214.546 1,329.343 1,402,632 The financial statements were approved by the Trustees on 27 Febnjary 2025 David Aisher Chairman of the Board Charity Nurnber. 314229 Company Number. ￿567460 The accompanyiThJ accounting policies and notes fom) an integral part of these financial statements. 23 TALL SHIPS YOUTH TRUST PRINCIPAL ACCOUNTING POLICIES FOR THE YEAR ENDED 29 FEBRUARY 2024 29/2R024 Group 281212023 Group Ca5hflow from operating activilie5 Net cashflow from operations S* Below 130 590 Total cashflow from operatlng actlvities Caghflow from Invesllng Octivities Interest received Payments to acquire fixed assets 7.517 3,389 Total cashflow on Investing activrties Cash from financing activities Repayments of borrowing 556 Net cash provided by (used in) linancing activities Net IncroasÈl(dÈcreasè) in cash and cash equlvalents (49.081) 241820 {162.169} 403 989 Cash and cash equivalents at 1 March 2023 Cash and cash equivalents at 29 February 2024 192.739 241,820 Cash and cash equivalents consist ot. Cash at bankand in hand 241820 Cash and cash equivalent at 29 February 2024 192.739 241.820 Reconciliation of income to net cashflow from operations: 2912R024 28/212023 Net income resources Depreciation charge5 Investment income Chan9e in value of investments Ilncrease)Idecrease in stocks Ilncrèase)/decrease in debtors Increase/(decrease) in creditors Revaluation in year Net cash oufflow from operalion5 45.509 141,733 (7.517 (518 (301 (19,562 (120.006 840.677 139,726 (3.389 {301 600 104.112 (96.025) 854 810 39,338 130,590 Analysls of ehangès in net debt 11312023 Cashflows 291212024 Long term borrowing Bank loan Loans from Trustees and funders (171.297) 290 000 55.556 (115,741) 250 OOD Total liabilities Bank and cash balances (461.297} 241820 95.556 (365,741} 192739 Total net debt {219,477) 46.475 (173,002) 24 TALL SHIPS YOUTH TRUST PRINCIPALACCOUNTING POLICIES FOR THE YEAR ENDED 29 FEBRUARY 2024 ACCOUNTING POLICIES The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the period. eral Informatlon and Accountln Conventlon Tall Ship5 Youth Trust is a charitable cofflpany limited by guarantee, registered in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office. together with the objects of the Charity are given in the charity information on pages 2 and 4 respectively of these financial statements. The charity constitutes a public benefit entity as defined by FRS 102. The finanaal statements have been prepared in accordance with the charitable company s Articles of Association. the Companies Act 2006. FRS 102 Yhe Financial Reporting Standard applicable in the UK and Republic of Ireland- (-FRS 102? and the Chaiitie5 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)" (effective 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared under the historical c05t convention. modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the tharitable company and rounded to the nearest £1. Goin Conce The Charitys ￿venueS derive principally from various forms of donation5 and voyage income. Since the end of pandemic restrictions, voya e income has picked u and fundraisin . However, there has been a Worsenin￿ of the genera economic climate inc the situa ion in Ukraine - evi steep rise In Inflation and Interest rates. Since 2022 there has generaiPy been a significant reduction in charita donations In the UK market associated with those waer economic conditions. These may Impact negatively on future voyage revenues and / or d￿atiOnS. subsidia . Tall Shi a net liability at the year-en 2023 s Limite4 which runs the voya to Tall Ships Ltmited of £349 697 (2023 £ 741.688). Accordingly. the Chan e programme. Tall Ships Limited had provides ongoing financial sup ort seek re 63.610) by way of an inter-company loan. which it has confirmed It wiifnot elimina ment of within the next 12 month& The long-stsnding pension deficit in Tall Ships ￿Mited has been uring the year (2023 £92,595). The Charity has a deficit of assets making up the unrestricted funds, as explained in note 18. This stems from the sale of the brig in 2017 for considerably less than had been expected. The Charity continues to focus on corretting this deficit which is steadily reducing. The situations described above continue to create a material uncertainty ￿lating to going concem due to the timing and level of future cash flow. In order to monitor the financial position of the Charity. the Chariws Finance Audit and Risk Committee continues to meet on a regular basis to evaluate and develop strategies to minimise non-essential expenditure, develop fundraising income and review cash flow forecasts. The Charity continues to monitor costs in all a￿a$ and continues to revaluation of the Challenger assets in 2022 has significantly contributed Fay off the historic loans and debts. The o overall balance sheet reserves. 25 TALL SHIPS YOUTH TRUST PRINCIPAL ACCOUNTING POLICIES FOR THE YEAR ENDED 29 FEBRUARY 2024 In light of the above. with the exception of the above described material uncertainty. the TNstee5 have a reasonable expectation that the Chari accounts are prepared on t will continue in operational existence for the foreseeable future and. accordingly. the e going concern basis. The group financial statements consolidate those of the char5table company and of its subsidiary undertaking. The results of the charitable compan￿5 trading subsidiary. Tall Ships Limited. have been consolidated on a line by line basis. Surpluses or deficits on intra-group transactions are eliminated in full. A separate statement of financial artivitie5 and income and expenditure account for the charitable compar¢y itsdf are not presented because the tharitable company has taken advantage of the exemptions afforded by the Companies Act 2006. FUND ACCOUNTING Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general charitable objectives, and which have not been designated for other wrpose& Restricted fund5 are funds which are to be used in accordance with specific restrictions imposed by donors or which have been rdi5ed by the charity for particular purposes. The c05t of raising and adtninistering Such funds are charged against the specific fund. Endowment funds represent those assets which must be held permanently by the charity. Expendable Endowments permit the Charity to spend the capital sum on suitable capital projects wth the permission of the donor. Income arising on the endowment funds can be used in accordance with the objects of the charity and is transferred to the general funds. Any capital gains or losses arising on the investments form part of the fund. Invesbnent management charges and legal advice relating to the fund are charged against the relevant fund. The purpose and use of each expendable endowment fund is set out in the notes to the financial statement& INCOME RECOGNITION POLICIES Donations and Gifts All monetary donations and gifts are included in full in the ststement of financial actNities when receivable. provided that there are no donor-imposed performance restrictions in which case recognition is deferred until the pre- condition has been met. Legacies are recognised as receivable On￿ probate has been granted. notification has been received and sufFictent information is available to make a realistic assessment of the value of the charitable companies entitlement Intangible income is valued and included in income to the extent that it ￿presents goods or services which would otherwise be purchased. An equivalent amount is charged as expenditure. Voluntary help is not included as income. Life sub5cription5 are counted in full when received. Donations and any associated income tax r￿0Ve[leS when donated under gift aid are credited as income when the amounts are received. 26 TALL SHIPS YOUTH TRUST PRINCIPAL ACCOUNTING POLICIES FOR THE YEAR ENDED 29 FEBRUARY 2024 Activities for Generating Funds Revenue from activities such as special fundraTSing events is recogni5ed in the period in which the actimty or event occurs. nvestment income Investment income is recognised when receivable. Incoming Resources from Charitable Artivttses Revenue from voyage fees is wognised in the period in which the voyage commences. Grants Receivable Income from Govemment and other grants are recognised at fair value when the charity has entitlement after any performance condition5 have been meL it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. RESOURCES EXPENDED All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings: > Costs of raising funds includes detsils of the costs in relation to fundraising events. following up donation and seeking voluntary contributions and donations from supporters. and available sources: > Expenditure on charitable activities includes the costs of the charity's work with young people. sailing trips and other residential activities including all planning activities, maintenance of the Charitys assets, preparation and follow uw and > Other expenditure represents those items not falling into the categories aLx)ve. > Irrecoverable VAT is tharged as an expense against the activity for which expenditure arose. Allocation of Support Costs Support costs are those that asslst the work of the charity. but do not directly represent charitable activities and include office costs. governance costs. administrative and payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at the Charity's main base in Portsmouth. Where support Costs cannot be directly attributed to particular headings. they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Premises and other overhead5 have been allocated on a basis ￿lating to use and the proportion of staff time incurred on those matters. The analysis of these costs ss included in note 6. 27 TALL SHIPS YOUTH TRUST PRINCIPAL ACCOUNTING POLICIES FOR THE YEAR ENDED 29 FEBRUARY 2024 TANGIBLE FIXED ASSETS AND DEPRECIATION Individual assets costing £250 or more are capitslised. Yachts are stated at valuation and other tangible fixed assets are stated at cost. net of depreciation and any impairment losses. Deweciation is calculated on all tangible fixed assets to write down the cost or valuation less estimated residual value by annual instalments over their expected useful lives. Any excess depreoation on revalued assets is transferred to the revaluation reserve on an annual basis. The periods generally applicable are: _ Yachts Computers and Office Equipment Display and Exhibition Equipment 15 years Straight line S years Straight line 5 years Straight line The gain or105s arising on the disposal of an a55et is detemined as the difference between the Sales proceed5 and the carrying value of the asse( and is recognised in the statement of activities. As part of the periodic review of asset useful live5 conducted at each reporting date, the chaiitable company reassessed the estimated useful life of the Challengeryacht& Effective 1 March 2023, the Challenger yachts have been determined to have an estimated useful life of 15 years. This change in estimated useful life has led to an adjusted annual depreciation charge of £120,UOO. Under the original depreciation schedule. which estimated a 15-year useful life from the purchase date. the depreciation expense would have been £787.500. IMPAIRMENT OF FIXED ASSETS At each reporting date. the charitable company revIeV￿ the carrying amounts of its tangible assets to detemiine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists. the recoverable arnount of the a55et is estimated in order to detemiine the extent of the impairment loss fif any). FOREIGN CURRENCIES Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate be￿een the functional currency and the foreign currency at the date of the transaction. Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate. INVESTMENTS Assets held for investment purpose5 are included at market value. Traded securities are valued at the mid-point quotation in the St¢xk Exchange Daily List. Other investment assets are included at the Trustee5' best estitnate af market value. Donated shares that come with a requirement that they be held for a fixed period are included in the Balance Sheet at a value assessed by the Trustees at the date of receipt. This value is then reviewed by the Trustees at each balance sheet date. STOCKS Stocks are ststed at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase. costs of conversion and other costs incurred in bringing stockto its present location and condition. Provision is made for damaged. obsolete arKI sl(M-moving stock where appropriate. 28 TALL SHIPS YOUTH TRUST PRINCIPAL ACCOUNTING POLICIES FOR THE YEAR ENDED 29 FEBRUARY 2024 DEBTORS Trade and other debtors are recognised at the settlement amount due. Prepaytnent5 are valued at the amount prepaid. CREDITORS Creditors and provisions are recognised where the charity 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 a￿ Th￿rnallY recognised at their settlement amount after allowing for any trade discounts due. RETIREMENT BENEFITS Defined Contribution Scheme The pension costs charged in the period represerrt the amount of the cOntrit￿tiOnS payable to the scherne in respect of the accounting period. Defined Benefit Scheme Some former employees of the Trust's active subsidiary. Tall Shtrps Limited. were members of a multi-employer scheme. Tall Ships Limited is unable to identify its share of the underlying assets and liabilities of this scheme on a consistent and reasonable basis and therefore. as required by FRS 17 'Retirement Benefits.. accounts for it as if it were a defined contribution scheme. OPERATING LEASE AGREEMENTS Renta15 payable and receivable under operating leases are tharged as an expense to the SOFA on a straight-line basis over the period of the lease. TAXATION The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. FINANCIAL ASSETS AND UABIUTIES The Trust only has financial assets and finanaal 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. JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the charitable compan￿5 accounting policie5, the Tru5tee5 are required to make judgements. estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other source& 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 (mgoing basis. Revisions to accounting estimates are recognised in the period 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 cu￿ent and future periods. 29 TALL SHIPS YOUTH TRUST NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Funds Restricted Endowment Funds Funds Total Total Funds Funds Yearto Year to 281212023 2812/2022 2023 2023 2023 Income and Endowments fronL" Donations and legacies Investments Government grants Charitable activities 779,461 1.415 378.971 1,974 1,158.432 3,389 833,465 2,317 33,663 425 889 586 938 Total income 1,367,814 380.945 1,748,759 1,295,334 Expendliure on: Raising funds Charitable activitie5 371.671 888 032 371,671 329.539 1391221 1203 015 503 189 Total expenditure 1,259,703 503,189 1,762,892 1,532,554 Net movement in funds 108.111 (122,244) (14.133) (237.220) Transfer bthe8n funds Other rerognised gains 1 {105ses) Gain on revaluation of fixed assets 854 810 Net movement In funds 982,921 (122.244) 840,671 (237,220) Fund balan￿ brought forward At l March 2022 (721.965) 1.044.702 51.132 373.869 611.089 Fund balances carried forw3Td At 28 February 2023 240.956 922.458 51.132 1.214.546 373,869 INCOME FROM DONATIONS AND LEGACIES Unrestrided Restricted 291212024 281212023 Donations Legacies Membership Other 705,796 23,744 33.045 52 341,714 1,047,510 1,050,687 23,744 74,848 33.045 32,897 52 762.637 341.714 1.104.351 1,158.432 Of the comparative donations figure £37&971 was in respect of restricted fijnds. 30 TALL SHIPS YOUTH TRUST NOTES TO THE FINANCIAL STATEMETr¥tS FOR THE YEAR ENDED 29 FEBRUARY 2024 INCOME FROM CHAIUTABLE A￿1VITIEs 291212024 281212023 Gross voyage fees Less bursaries utilised from funds 1.480,609 699 227 1312,966 781.382 586.938 All income fJDm charitable acttvilies for both years was vnrestricts NEf INCOME FROM ACTIVITIES OF SUBSIDIARIES The Charitys only active subsidiary is Tall Sh&ps Limited (0284402n. Registered office address: 2a The Hard, Portsmout Hampshire. P013PT. A summary of its results for the period is set out below:_ 291212024 281212023 Turnovèr-voyage fees Operating costs 1,480,609 1,312,966 1069 473 Operating Profivooss) 324.584 243.493 Finance costs 412 Net profit/lloss) 322,700 236,081 The net assets and liabilities of the active subsmjiary ar 291212024 281212023 Current assets Creditors: amounts falling due within one year 71,127 490 115 51,879 793 567 Totsl net liabilities 741688 Aggregate of share capital a￿1 reseTves (418.988) (741.688) 31 TALL SHIPS YOUTH TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 ANALYSIS OF EXPENDITURE 28/2/2024 281212023 Cost of rdising funds: Fundraising costs Allotation of support and governante costs (See note 6) 330.231 370.511 360.721 371.671 Charitable artivitiQ5 Ship related costs Depreciation Allocation of support and governan￿ costs Isee note 6) Interest payable and similar finance charges Other voyage and support expenses 941,991 141.732 125.691 27.248 797.166 136,726 38.155 20,066 396 108 1,487.020 1,391,221 Restricted fiJnd5 Unrestricted funds 435.129 503,189 1412612 1259 703 1.847.741 1,782,892 SUPPORT AND GOVERNANCE COSTS Support Governance 291212024 2812/2023 Support costs Payroll and HR Property costs Office costs rr and Website Marketing Other Method Total ￿50V￿$ Total resou￿5 Total resour￿5 Total resources Direct activities Total resources 10,071 25,762 21,543 11.296 21,379 11.176 10.071 25.762 21.543 11,2 21,379 11,176 11.995 25.858 10.078 11,034 35,338 17,213 Governance tosts Auditor5 remuneration AdministratNe expense5 Legal Fee5 37.175 6.901 37,175 6.901 38.155 1.160 101.227 54.954 156,181 150,831 Support and Govemance costs are allocat￿ to Cost of Raising Funds and Charitable activities as follows: C05t of Raising FurKIs Charitable acttvities 19,762 10.728 30.490 125691 16,626 101.227 54.954 156.181 150,831 32 TALL SHIPS YOUTH TRUST NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 OTHER COSTS 291212024 281212023 The surplus is stated after charging: Auditors, remuneTation Audit seNices Non-audit seNices 28.775 25,300 37.175 38.155 Depreciation Operating lease rentsls 141.733 8.403 139.726 12.901 EMPLOYEES Employee costs during the period 4vere as follow 291212024 281212023 Wages and salaries Social securty costs Other pension costs 651.934 57.174 557,925 50,654 61484 780,105 670,063 The average number of full time equivalent em￿oYeeS during the peri(*J were as foll 291212024 Number 281212023 Number Management and administration 18 17 The average rtumber of employees based on head count was 21 (2023-. 19). The total costs attributable to senior management personnel amounted to £356.691 for the year to 29 February 2024 (2023: £232,8021. Senior management petsonnel comprise the Chief Executive Officer. Finan￿ and Busines5 Support Director, Director of Youth Devek)pment and Outdoor Learning. Head of Operations. and the Head of Fundraising and Marketing. The em0lu￿￿nts of higher paid employees fell within the following ranges: 28R/2024 Number 2812R023 Number £70,001 to £80,000 £80,OD1 to £90.000 £90,OD1 to £100.000 PAYMENTS TO TRUSTEES AND CONNECTED PERSONS No Trustee received remunetation in the period. direcily or iThJirecty. from either the charity or an institution or compary Controlled by the chaiity. Expense reimbursements for travel and subsistence were not paid to Trustees duriJvJ year (2023: £nill and there were no expenses paid on behalf of a tWStee. Trustee indemnity insurance paid on behalF of Trustee5 and officers in the year was £3.553 (2023.. £4.450}. 33 TALL SHIPS YOUTH TRUST NOTES TO THE FINANCIAL sTATEmEP￿s FOR THE YEAR ENDED 29 FEBRUARY 2024 10. SURPLUSIIDEFICIT) OF EXPENDITURE OVER INCOME The consolidated Statement of Financial Activities includes the results of the Charity's wholty owned subsidiary-Tall Ships Limtted. which operates voyages. Details of the results of the trading subsidiary are Set out in note 4. The summary financial perfomiance of the Charity ak)ne wa 291212024 2812/2023 Income Income from donations and legacies Other income Investment income 1.104.351 203,909 1,158.432 Totsl income 1315777 1161821 Expenditure Raising funds Charltable activities (355,078) 1033 988 (356,210) 1055 823 Total expenditure 1389 066) 1412 033 Revaluation in year 854.810 Net income for the year (73.289) 604,598 Total funds brought forward on 28 February 2023 1402 632 Totsl funds carried forward at 29 Fel￿ary 2024 1.329,343 1,402.632 11. TANGIBLE FIXED ASSErs Consolidatsd and Tall Ships Youth Trust Computers. Fixtures & Equipment Yachts Totsl Cost or valuatton: At l March 2023 Additions in year At 29 February 2024 1.885,917 99,952 1,985.869 380 380 1,885,917 100,332 1,986,249 Depreciation-. At 1 March 2023 Provided in the period 46,962 125 728 51.824 98,786 141733 At 29 Febfuary 2024 172,690 67,829 240,519 Net book amunt at 29 Febnjary 2024 1,713,227 32,503 1,745.730 Net book amount at 28 February 2023 1,838,955 48,128 1,887,083 The Yachts are given as security against a number of loans included (n cweditors. The net book value of yachts gtven as secuiity was £840.OCQ {2023: £90O.OL￿). The ChaIlengerY￿htS are included above at a net book value of £450.0[￿ based on a professional valuation completed by Berthon International Limited. an intemational yacht brokers in 2023. Not all class of yachts were revalued. The Ketch was not revalued due to its bespoke nature. TALL SHIPS YOUTH TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 11. FIXED ASSEfs {tontinued) The figu￿5 51ated above for c05t or valuation in re5pe(t of Yachts comprise a55ets at Cost Valuation 1,094,928 790 989 1,885,917 If certain fixed assets had not been re-valued. they would have been induded on the Fmstorical cost basis at the following amount Yachts Yachts 29/2/2024 2812/2023 Cost Accumulated depreciation 1.094.928 11)01905 1,094,928 991497 Net book amount at 29 February 2024 93.023 103.431 12. DEBTORS Consolldated 291212024 281212023 Tall Ships Youth Trust 29/2/2024 281212023 Amounts 0￿d by group undertakings VAT re(overable Other debtors Prepayments 10.004 4,813 16.169 12.197 65,926 18.647 18,028 29 875 2.893 64.098 86.111 66,550 70.497 48,804 13. CURRENf ASSET INVESTMENTS Consolidated 291212024 281212023 Tall Ships Youth Trust 291212024 281212023 UK inve5tments- COIF Funds 6,642 6,124 6,642 6,124 Unlisted investments have been invested in COIF urmts held in the name of a supporterfs branc￿ and are at market value. 35 TALL SHIPS YOUTH TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 1& CREDITORS: AMOUNTS FALUNG DUE WITHIN ONE YEAR Con501idated 291212024 281212023 Tall Ships Youth Tntst 291212024 281212023 Bank Loan Loans from Tnjstees and fijnders Payments received on account Trade creditors Social Security and other taxes Other credttors and accrua15 55,556 30,000 203,625 119,199 14,661 55,556 40.000 232,728 127.414 14.148 160 224 55,556 30,000 203,625 5.463 14.661 55.556 40.000 232,728 21.855 14.148 500.063 630.070 359.648 400,112 Loans from TNstees and funders are secured by fixed charges over the T￿￿¥S vessels (see note 11). The bank loan is secured on fixed and floatiThJ charges over the assets of the charity. 15. CREDThORS: AMOUPUS FALLING DUE A￿ER MORE THAN ONE YEAR Consolidated 2912/2024 281212023 Tall Ships Youth Trust 291212024 281212023 Loans from Tnjstees and funders Bank loan 220.000 250,000 115741 220.000 250,000 115741 280,185 365.741 280.185 365.741 Loan5 from Tnjstees and funders are secured by fixed charges over the TMSVS vessels (see note 11). The bank loan is secured on fixed and floating charge5 over the assets of the charity. In the prior year. included wthin other creditOTS 15 pension deficit tY•Yed by Tall Ships Limited (see note 201. which wa5 fully repaid in the current year. 16. ENDOWMÉNT FUNDS Michael Crocker Nova Scotia Lord Burnham Totsl At l March 2023 and at 29 FebTuary 2024 13.277 12,952 24,903 51,132 The Michael Crocker fund was set up in memory of a yachtsman murdered in February 1982. The income is for contribulions to voyage fee5 fot pupils of Henley College. The Nova kotia fund was set up in memory of trainees who died on the sailing shTP -fvlarques" which sank off Bemiuda during the 1984 Amertcan Tall Ships Tace. The income is shared with the American Sail Training Association and is to 5UPPOrt a voyage Lerth. The Lord 8uinharn fund was ￿t up in his memory following hi5 death in June 1993. Income is for contiilyjttons to Voyage fees aboard the TnJsfs ships for trainee5 ideally. but r￿t exclusively, from Eastem Europe. TALL SHIPS YOUTH TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 17. REstRI￿ED FUNDS B?lJnce at 1B12023 Income Expenditure Transfer Balance at 29/212024 International fund Legacy fund oiher specific funds 199.123 138,179 1.991 201.114 53,342 576 578 84,837 Total restricted funds 922.458 343.705 (435.129) 831.034 The Specific Funds are donatiors made to the Tn￿t to be used f￿ specif￿1 purposes. At 29 Febnjary 2024 there were 380 separate funds {2023: 404). The Trust is reviewiry the ongoing obligations of restricted funds. The Intemational Fund is restricted within the accounts of the Trust for the support of intemational sail trainiNJ activities. The legacy fund is monies received to be used for y(wth trip voyages in the North Devo￿ North-west Somerset and Exmoor National Park areas. Year to 28 February 2023 comparative period Balance at Income Expen￿rtur￿ Transf*r Balante at 11312022 281212023 International fund Legacy fund Other specific funds 197.149 240,467 1.974 199.123 138,179 585 156 102,288 400 901 378 971 Total restricted funds 1.044.702 380.945 (503.189) 922,458 18. UNRESTRICTED FUNDS Consolldated General Revaluation Re5erwe Reserve Total At 1 March 2022 Adjustment to brought forward (note 24) Revised at 1 March 2022 (1.155.695 (1.602.679) 880.714 1.367.814 (1.259.703) 433,730 (721.965) (721.965) 1.367.814 (1,259.703) Income Outyoing reywrces Revaluation in year At 28 February 2023 (1,494,568) 1,735.524 240,956 Income Outgoing resources Transfer between resetves 1,549.545 {1.412,612) 115 320 1.549.545 (1,412.612) 115320 At 29 February 2024 (1.242.315) 1.620.204 377.889 37 TALL SHIPS YOUTH TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 Tall Ship5 Youth TNst Genernl Reserve Revaluation Reserve Totsl At 1 March 2022 1731.530) 433,730 (297.8C>O) Adjustment to brought fOn￿ard (note 24) Revised at 1 March 2022 (1.178.514) 880.714 (297.800) Income Expenditure Revaluation in year 780.876 (908.844) 780.876 (908,844) 854 810 At 28 FebNary 2023 Income Expenditure Transfer between reseNes (1.306.482) 1.735,524 972.072 (953,937) 115320 429.042 972.072 {953,93n 115 320 At 29 February 2024 (1,173,027) 1.620.204 447,177 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unre5trirted Fund5 Restrirted Endowment Funds Funds Total Consolidated at 29 February 2024 Tangible fixed assets Current assets Current liabilities Creditors.. due after more than one year 1.745.730 (587.593 500.L 280 185 1,745,730 294,573 {500,063) 280 185 831.034 51,132 377,889 831.034 51.132 1.260.055 Tall Ship5 Youth Trust at 29 February 2024 Tangible fixed assets Current assets Current liabilities Creditors: due after more than one year 1.745.730 658.720) 359.648 1,745.730 223,446 (359.648) 831.034 51.132 447.177 831,034 51,132 1,329.343 38 TALL SHIPS YOUTH TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 Year to 28 February 2023 comparative period unrestricted Funds Restricted Funds Endowment Funds Total Consolldated at 28 February 2023 Tangible fixed a55ets Current assets Current liabilities Creditors: due after more than one year 1.887,083 (650.316) 630.070 1.887.083 323.274 S30,070 365 741 922.458 51,132 240.956 922,458 51.132 1,214.546 Tall Ships Youth TTU5t at 28 February 2023 Tangible fixed assets Current assets Current liabilities Creditors- due after more than one year 1.887,083 (692,188 400,112 1,887,083 281,402 4QO,112 365 741 922.458 51.132 429.042 922.458 51.132 1.402.832 Most restricted donation5 are to lover, in part the costs of a voyage and Most of the c05t5 Of voyages are Spent in adva￿e, starting wlth buying a boat and having the organisation to mn the trip& The above note shows a notional allocation of agsets btheen restricted and unrestricted. These a55ets are not segregated. The analysis shoY45 that after allocating assets to restricted funds there is a deficit of assets iepresented by other unrestricted funds. This situation has existed since the sale of the brig in the year to February 2018 for considerably less than had been expected. The charity is focused on correcting this situation. 20. PENSIONS Defined contribution scheme The group makes contributions towards iThYividual pension schemes for the benefit of employees. The assets of these schemes are administered by Trustees in funds independent from those of the Tall Ships Youth Trust and its subsidiary companie Contributions made during the peffK)d a￿ disclosed ￿ note 8. Defined benefft scheme A number of former employees of the Ttusvs subsidiary Tall Ships Lwnited rfsL? have belonged to an industry wide pension scheme. The Trustees of the scherne have advised TSL that part of the scheme is in deficit and it is apportioning the defictt be￿een participating employers. Interest is accnJin9 on the residual of the 2009 and 2012 pension scheme deficits and a payment plan was completed dUri￿j the year £ Nil12023 - £91595). 39 TALL SHIPS YOUTH TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 21. LEASING COMMITMETrirs At the reporting date. the Trust had the following mir4mum future lease commitmen 291212024 281212023 Land 8t Building5 Land & buildings Other Other Within one year BelAveen tsvo and five years 25.000 13,337 25,000 12.841 70.833 52,288 95.833 22.749 22. REiATED PARTY TRANsA￿loN5 The aggregate donations from Trustees to the charity during the w was £11550 P023: £4.2301. The aggregaie Trustee MeMbe￿I￿p subscriptions during the year were £650 (2023: £650). 23. FINANCIAL ASSETS AND FINANCIAL LIABILrriES Group balancés 291212024 28/2J2023 Financial assets at amorti5ed c05t Financial liabilities at amortised cost 277.504 576 623 284.619 Net financial liabilities Q99.119) (478,464) The Charitys financial assets comprise investments cash and bank bala￿es. Financial liabilities include trade creditors, loan accruals and other creditors. 24 PRIOR PERIOD ADJUSTMENT During the financial year, an error was identified in ￿ aliocation of funds btheen the general reserve and the revaluation reseNe within unrestricted fund& The funds h￿1 been incorrectly classified in prior period. An adjustrnent has been made to the prior period balances. regjltin in an increase in the revaluation reserve of £446,984 as of 1 March 2022, and a corresponding decrease in the general reserve the same amounL This corTectiDn has no impact on the total unrestricted funds but ensures accurate ￿￿)rting of reserve allocation