PADDLE STEAMER PRESERVATION SOCIETY

 

REPORT OF THE COUNCIL OF MANAGEMENT 2005

 

The Council of Management presents its Report and the Financial Statements for the year ended 31 December 2005.

 

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 around the country.   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.   2005 saw no major calls on the Society’s funds.  Small grants were made to P.S. Maid of the Loch and P.S. Kingswear Castle, the latter to pay for the provision of replica decorative etched glass.

 

The Society’s has a unique Museum Collection and it is currently valued at £40,853.   The Collection has been accumulated over the 47 years of the Society's existence and includes about 10,900 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 to create a full electronic catalogue using professional software has been completed.

 

At the Annual General Meeting on 25 November 2005 it was resolved " This General Meeting supports the proposal for the Society to raise funds for M.V. Balmoral while the vessel is being operated in support of a paddle steamer."   Consequently the General Fund was split as at that date.  Funds raised prior to that date have been designated the Paddle Steamer Fund and these will continue to be devoted to paddle steamers.  General funds received subsequently, together with specific donations for M.V. Balmoral (which will be placed in the Balmoral Fund), may be used to meet the costs of renewal, replacement, upgrading or safeguarding of the Balmoral's fabric or equipment.

 

The Society Accounts show a  net inflow of funds of £126,961 in 2005. At 31 December 2005 the General Fund stood at £49,119, the Paddle Steamer Fund at £97,206, the Streatfield Bequest at £145,753 and the Restoration and Preservation Fund (devoted to Paddle Steamers Waverley and Kingswear Castle) at £437,454.   

 

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 between £500,000 and £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 has taken steps 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 (Chairman) (1) (2)	Stuart Cameron (Scottish)
John Anderson (Secretary)	John Hanson (Wessex)
David Haddleton	Alec Lewis (Bristol Channel) (Vice-Chairman)
Martin Longhurst (Treasurer) (2)	Roddy McKee (London) (4)
Patrick Murrell	Robert Whitelaw (North)
Peter Tambling
Brian Whitmore (Membership Secretary)	Representative of Loch Lomond Steamship Co.
	Michael Hughan (5)
Representative of Waverley S. N. Co. Ltd.	Representatives of P.S. Kingswear Castle Trust Ltd.
Iain MacLeod (1)	Jeremy Gold (3) (4)
	John Megoran (3) (4)
Directorships of related party companies:		JOHN ANDERSON Secretary 12 February 2006   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 2005

 

	Unrestricted	Restricted	Total Funds	Total Funds
	Funds	Funds	2005	2004
	£	£	£	£
Income and Expenditure
Incoming Resources
Donations and gifts	19,736	20,013	39,749	24,794
Fund raising proceeds	39,141	8,715	47,856	46,298
Membership subscriptions	38,462	-	38,462	38,190
Legacies	-	57,146	57,146	98,256
Investment income	9,762	-	9,762	17,759
Trading Activities	2,109	-	2,109	2,659
Total Incoming Resources	109,210	85,874	195,084	227,956
Resources Expended
Direct charitable expenditure
Grants in respect of:
P.S. Waverley	-	-	-	-
P.S. Kingswear Castle	2,234	-	2,234	17,613
P.S. Maid of the Loch	460	-	460	2,290
Paddle Wheels Journals and Newsletters	20,132	-	20,132	20,541
Public Meetings	2,881	-	2,881	3,169
Museum Collection	16,800	-	16,800	11,336
Fund Raising	7,998	3,950	11,948	15,237
Publicity	2,618	-	2,618	1,995
Trading Activities	3,222	-	3,222	6,401
Management and administration of the charity
Council and Committee Meetings	1,299	-	1,299	1,407
General Expenses	5,901	-	5,901	4,187
Reporting Accountants' Charges	628	-	628	580
Total Resources Expended	64,173	3,950	68,123	84,756
Net Incoming Resources before Transfers	45,037	81,924	126,961	143,200
Transfers between funds	(13,254)	13,254	-	-
Net Incoming Resources for the Year	31,783	95,178	126,961	143,200
Other Recognised Gains and Losses
Gains/(losses) on investments
Unrealised	4,477	9,950	14,427	6,342
Net Movement in Funds	36,260	105,128	141,388	149,542
Balances brought forward at 1 January 2005	295,285	332,327	627,612	478,069
Balances carried forward at 31 December 2005	331,545	437,455	769,000	627,611

 

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 incoming resources for the year plus realised gains on investments and was £126,961 (2004 - £143,200).

PADDLE STEAMER PRESERVATION SOCIETY
Balance Sheet at 31 December 2005
	Note		2005		2004
Fixed Assets			£		£
Shares in Owning Companies
Paddle Steamer Kingswear Castle Trust Ltd.	2		55		55
Waverley Steam Navigation Co. Limited	3		12		12
Loan to Waverley Steam Navigation Co Ltd	4		31,743		39,679
Loan to Loch Lomond Steamship Company	5		-		210
Museum Collection	6		40,853		33,655
Investments			124,997		110,570
			197,660		184,181
Current Assets
Short term deposits
Bank			23,397		13,773
Common Investment Funds			364,552		280,926
National Savings			182,198		147,710
Cash at bank and in hand			2,887		1,809
Sales Stocks			92		1,770
Accrued interest, sundry debtors and pre-payments			2,818		2,140
			575,944		448,128
Liabilities
Amounts falling due within one year: Sundry creditors			4,604		4,698
			4,604		4,698
Net Current Assets			571,340		443,430
Net Assets			769,000		627,611
Funds
Unrestricted
General Fund			49,119		125,978
Paddle Steamer Fund			97,206		-
Streatfield Bequest	7		145,753		136,602
Museum Collection Reserve	8		39,468		32,706
			331,546		295,286
Restricted: Restoration & Preservation	9
General			379,761		280,049
P.S. Waverley			56,592		52,125
P.S. Kingswear Castle			1,101		151
			437,454		332,325
			769,000		627,611

 (a) For the year ended 31 December 2005 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 25 February 2006 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 loaned £39,679 to WSN on an interest free basis repayable in five equal instalments commencing on 1 April 2005.  The balance at 31 December 2005 was £31,743.

5.       Loan to Loch Lomond Steamship Company (LLSC): The Society made a loan of  £2,500 to LLSC and subsequently agreed to convert it to a non-repayable grant, subject to LLSC raising an equal sum of donations.  The final balance of £210 was converted during 2005.

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 2005 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.

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 2005 there were no commitments (2004: Nil).

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 made WSN an interest free loan of £39,679 repayable in five equal instalments commencing on 1 April 2005.   At 31 December 2005 the balance outstanding was £31,743.

b.       Paddle Steam Kingswear Castle Trust Ltd (PSKCTL)

i)         During the year the Society made miscellaneous grants totalling £2,234 to PSKCTL.

c.       Loch Lomond Steamship Co (LLSC)

i)          The Society made an interest free 10 year loan of  £2,500 to LLSC, convertible to a non-repayable grant, subject to LLSC raising an equal sum of donations.   The final balance of £210 was converted during 2005.   The Society made miscellaneous grants totalling £460 to LLSC.   The Society to offered to make a further convertible loan of £3,000 in support of LLSC’s application under the Community Environmental Relief Scheme but nothing had been advanced at 31 December 2005.

12.   Trustee Remuneration:  No Trustee received any remuneration during the year (2004 - Nil).  1 person connected with a Trustee received remuneration of £175 (2004 - £175).

13.   Trustee Expenses:  12 trustees received reimbursements of fares totalling £3,053 (2004 - £1,823).

14.   Staff Costs and Emoluments:  Nil (2004 - Nil).

15.   Cost of Reporting Accountant and Other Financial Services:  Adey Fitzgerald and Walker received £628 for reporting accountant services (2004 - £580) and provided no other services to the Society (2004 - Nil).