PADDLE STEAMER PRESERVATION SOCIETY

 

REPORT OF THE COUNCIL OF MANAGEMENT 2003

 

The Council of Management presents its Report and the Financial Statements for the year ended 31 December 2003.

 

The Society is a company limited by guarantee (having no share capital), registered in England and Wales No. 2167853, and a registered charity (No. 298328).    The Society is governed by its Memorandum and Articles of Association which set out its objects which may be summarised as to preserve in operation paddle steamers, to educate the public in their historical significance and to preserve relics and other materials associated with paddle steamers.   The Society's principal activities are to assist in the preservation in sailing condition of the Paddle Steamers Waverley and Kingswear Castle and to maintain a collection of historical material relating to paddle steamers.  

 

The Society operates both at national and local levels, through five area Branches.   The Council of Management controls the Society and meets four times a year in London and Glasgow.   The five Branch Committees are given delegated authority over 20% of the subscription income attributed to their areas and promote the Society and organise activities locally.  

 

P.S. Waverley is owned on behalf of the Society by Waverley Steam Navigation Co. Ltd. (WSN) (itself a charity) and operated by Waverley Excursions Ltd.   P.S. Kingswear Castle is owned on behalf of the Society by Paddle Steamer Kingswear Castle Trust Ltd. (also a charity) and operated by Paddle Steamer Kingswear Castle Trust (Trading) Ltd.   The Society also supports financially the preservation of P.S. Maid of the Loch, which is owned by Loch Lomond Steamship Company, an independent Scottish charity.  These companies are classified as related parties as there are reciprocal arrangements to nominate trustees.  Links are also maintained with the Medway Queen Preservation Society.

 

The Society largely fulfils its aim of supporting the steamers by fund raising for specific projects to restore and preserve them.   In 2003 the Society completed its contribution of over £1.3 million to P.S. Waverley's Heritage Rebuild, of which just under £40,000 is by way of loan.   The work was carried out by George Prior Engineering, to whom great credit is due for their commitment and for their standards of workmanship. The paddler returned to service on schedule in a blaze of publicity on 14 June 2003.

 

The London & Home Counties Branch marked their association with P.S. Kingswear Castle, by making a grant of £2,000 to cover the cost of installing period-style lighting on board the steamer.

 

The Society’s has a unique Museum Collection and it is currently valued at £33,204.   The Collection has been accumulated over the 45 years of the Society's existence and includes over 3,300 items ranging from ship models to handbills.  As many objects as possible have been loaned to museums for public exhibition and secure storage has been rented for the remainder.   Work is proceeding to create a full electronic catalogue using professional software.   In order to complete this task within a reasonable time, the decision has been taken to commission the work on a contract basis.

 

The Society Accounts show a  net inflow of funds of £71,071 in 2003. At 31 December 2003 the General Fund stood at £138,422, the Streatfield Bequest at £128,716 and the Restoration and Preservation Fund (devoted to Paddle Steamers Waverley and Kingswear Castle) at £178,684.   

 

The Society has no paid employees so most of its achievements reflect members' voluntary efforts.    These cover a wide range of skills and are essential to the continued successful operation of the Society.   The Council of Management acknowledges gratefully all contributions great and small.

 

The Society's policy is to maintain reserves to fund future restoration and maintenance requirements of the paddle steamers it supports. In view of the high costs involved in marine engineering, and the possible need to effect repairs at short notice, the Council considers a balance of up to £750,000 to be desirable.  As these requirements are relatively short term, the majority of the reserves are invested as cash in Common Investment Funds and in National Savings.   There are also lesser investments in Index Linked Treasury Stock and an equity based Common Investment Fund.   The Council of Management has identified and reviewed the major risks to which the Society is exposed and established systems to mitigate those risks.

 

The members of the Council of Management (the Society's Trustees and Directors) during the year, who received no remuneration for their services, are listed below:

Elected Members	Branch Representatives
Myra Allen (Vice-Chairman)	Stuart Cameron (Scottish)
John Anderson (Secretary)	John Hanson (Wessex)
Ian Burrows (5) (Deceased 6.3.03)	Alec Lewis (Bristol Channel) (appointed 17.9.03)
David Haddleton	Roddy McKee (London) (4)
Nick James (Chairman) (1) (2)	Patrick Murrell (Bristol Channel) (resigned 14.6.03)
Martin Longhurst (Treasurer) (2)	Robert Whitelaw (North)
Patrick Murrell (elected 15.11.03)
Peter Tambling	Representative of Loch Lomond Steamship Co.
	Michael Hughan (5)
Representative of Waverley S. N. Co. Ltd.
Iain MacLeod (1)	Representatives of P.S. Kingswear Castle Trust Ltd.
	Jeremy Gold (3) (4) (appointed 22.3.03)
	John Megoran (3) (4)
	Alan Peake (3) (4) (resigned 22.3.03)
Directorships of related party companies:		JOHN ANDERSON Secretary 28 February 2004   Registered Office: 17 Stockfield Close, Hazlemere, HIGH WYCOMBE, HP15 7LA
(1) Waverley Steam Navigation Co Ltd
(2) Waverley Excursions Ltd
(3) PS Kingswear Castle Trust Ltd
(4) PS Kingswear Castle Trust (Trading) Ltd
(5) Loch Lomond Steamship Company

 

PADDLE STEAMER PRESERVATION SOCIETY

Statement of Financial Activities for the Year ended 31 December 2003

 

	Unrestricted	Restricted	Total Funds	Total Funds
	Funds	Funds	2003	2002
	£	£	£	£
Income and Expenditure
Incoming Resources
Donations and gifts	14,074	11,860	25,934	30,172
Fund raising proceeds	42,387	7,290	49,677	46,366
Membership subscriptions	40,383	-	40,383	42,210
Legacies	-	2,818	2,818	79,244
Investment income	7,183	5,298	12,481	16,738
Trading Activities	4,016	-	4,016	4,852
Total Incoming Resources	108,043	27,266	135,309	219,582
Resources Expended
Direct charitable expenditure
Grants in respect of:
P.S. Waverley	60	-	60	(79)
P.S. Kingswear Castle	2,020	-	2,020	22,076
P.S. Maid of the Loch	5,896	-	5,896	14,700
Commitment - P.S. Waverley Heritage Rebuild	-	-	-	35,000
Paddle Wheels Journals and Newsletters	20,468	-	20,468	20,775
Public Meetings	3,217	-	3,217	2,158
Museum Collection	3,862	-	3,862	4,329
Fund Raising	12,035	4,150	16,185	15,244
Publicity	599	-	599	2,238
Trading Activities	3,032	-	3,032	3,094
Management and administration of the charity
Council and Committee Meetings	1,455	-	1,455	1,897
General Expenses	6,907	-	6,907	3,679
Reporting Accountants' Charges	537	-	537	517
Total Resources Expended	60,088	4,150	64,238	125,628
Net Incoming Resources/(Resources Expended)
before Transfers	47,955	23,116	71,071	93,954
Transfers between funds	(34,822)	34,822	-	-
Net Incoming Resources/(Resources Expended)
for the Year	13,133	57,938	71,071	93,954
Other Recognised Gains and Losses
Gains/(losses) on investments
Unrealised	1,940	239	2,179	1,846
Net Movement in Funds	15,073	58,177	73,250	95,799
Balances brought forward at 1 January 2003	284,312	120,507	404,819	309,020
Balances carried forward at 31 December 2003	299,385	178,684	478,069	404,819

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above.   The surplus for the year for Companies Act purposes comprises the net resources expended for the year less realised gains on investments and was £71,071 (2001 - £93,954).

(a) For the year ended 31 December 2003 the company was entitled to exemption under section 249A(2) of the Companies Act 1985.

(b) Members have not required the company to obtain an audit in accordance with section 249B(2) of the Companies Act 1985.

(c) The directors acknowledge their responsibility for:

i. ensuring the company keeps accounting records which comply with section 221; and

ii. preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year, and of its profit or loss for the financial year, in accordance with the requirements of section 226, and which otherwise comply with the requirements of the Companies Act relating to accounts, so far as applicable to the company;

(d) The accounts have been prepared in accordance with the special provisions in Part VII of the Companies Act 1985 relating to small companies.

They were approved by the Council of Management on 24 April 2004 and signed on its behalf by Martin Longhurst.

 

NOTES TO THE ACCOUNTS

 

 

1.        Format of Accounts and Accounting Policies

a.        Basis of accounts: These Accounts have been prepared in accordance with the Charity Commission's publication "Accounting and Reporting by Charities - Statement of Recommended Practice" (SORP 2000) and accounting standards, the Companies Act and the historic cost basis of accounting, except for investments and the Museum Collection, which have been included at revalued amounts. The accounts are prepared on an income and expenditure basis.

b.       Donations, legacies and subscriptions: These items of income, including life subscriptions, are taken into account in full in the year of receipt.    No allowance is made for the undistributed part of any legacies due.

c.        Netted off expenses and related income: Where sufficient information is available the netting off of expenses and the related income has been eliminated.

d.       Stocks: Stocks of unsold goods are valued at the lower of cost or realisable value.

e.        Investments: Investments are valued at market value, except as described in Notes 2 and 3.

f.         Gains/losses on investments: Gains and losses are recognised in the year they arise.   Unrealised gains or losses are added to or deducted from the Fund to which the investment relates.

g.       Grants: Liabilities arising from grant commitments made by the Society are recognised by creating a provision pending completion of Funding Agreements or fulfilment of conditions at which point the obligation becomes binding.

h.       Cash Flow Statement: The Society has taken advantage of Sections 246 to 249 of the Companies Act 1985 in deciding not to prepare a Cash Flow Statement.

2.        The holding of shares in Paddle Steamer Kingswear Castle Trust Limited, the owner of P.S. Kingswear Castle, represents a controlling interest.   55 shares (out of an authorised 100) are held in equal lots by five nominees as representatives of and on behalf of the Society.   The shares are shown in the Accounts at their nominal value, as shareholders in the Trust cannot benefit from their holdings, as it is constituted as a charity.

3.        The holding of shares in Waverley Steam Navigation Company Limited (WSN), the owner of P.S. Waverley, represents 29% of shares issued.   The shares are shown in the Accounts at their nominal value, as shareholders in the Company cannot benefit from their holdings, as it is constituted as a charity.

4.        Loan to Waverley Steam Navigation Co Ltd (WSN): The Society has loaned £39,679 to WSN on an interest free basis repayable in five equal instalments commencing on 31 October 2004.

5.        Loan to Loch Lomond Steamship Company (LLSC): The Society made a loan of  £20,000 to LLSC and subsequently agreed to convert it to a non-repayable grant, subject to LLSC raising an equal sum of donations.  By 31 December 2003 the whole sum had been converted.

6.        Museum Collection: The Society owns a collection of relics relating to paddle steamers.   It was valued at market value at 31 December 2001 and is now depreciated over 20 years on a straight line basis.   Movements in 2003 may be summarised as follows:

 

7.        The Streatfield Bequest is available for the general purposes of the Society.  

8.        Museum Collection Reserve: This represents the net value of donated items, after deducting accumulated depreciation.   In 2002 its value was calculated incorrectly and the comparative figures have been restated to rectify the position.

9.        The Restricted Funds comprise the Restoration and Preservation Fund, which holds funds received for or allocated to P.S. Waverley and P.S. Kingswear Castle.

10.     Commitments: At 31 December 2003 there were no commitments (2002: £148,606).

11.     Related Party Transactions:  The Society is related to the following companies as there are reciprocal arrangements to nominate trustees.

a.        Waverley Steam Navigation Co Ltd (WSN)

i)         The Society has contracted to grant to WSN £235,000 in 2002 and 2003 towards the cost of the Completion Phase of the Waverley Heritage Rebuild.  In 2003 the Society made grants totalling £148,606 under this agreement, completing its obligation.

ii)       The Society has offered WSN an interest free loan of up to £40,000 repayable in five equal instalments commencing on 31 October 2004.  Advances totalling £39,679 had been made at 31 December 2003.

iii)      The Society offered WSN an interest free loan of £75,000 between March and August 2003 but the offer was not taken up.

iv)      The Society made miscellaneous grants totalling £60 to WSN.

b.       Paddle Steam Kingswear Castle Trust Ltd (PSKCTL)

i)         The Society made miscellaneous grants totalling £2,020 to PSKCTL.

c.        Loch Lomond Steamship Co (LLSC)

i)          The Society made an interest free 20 year loan of  £20,000 to LLSC and subsequently agreed to convert it to a non-repayable grant, subject to LLSC raising an equal sum of donations.   £5,300 was converted during 2003.

ii)       The Society made miscellaneous grants totalling £596 to LLSC.

12.     Trustee Remuneration:   No Trustee received any remuneration during the year (2002 - Nil).  1 person connected with a Trustee received remuneration of £215 (2002 - £260).

13.     Trustee Expenses:  10 trustees received reimbursements of fares totalling £1,602 (2002 - £1,911).

14.     Staff Costs and Emoluments:  Nil (2002 - Nil).

15.     Cost of Reporting Accountant and Other Financial Services:  Adey Fitzgerald and Walker received £537 for reporting accountant services (2002 - £517) and provided no other services to the Society (2002 - Nil).