Mts 2013 annual report v4 final colour 17 sept 14

The Mission to Seafarers Trustees’ Annual Report and Accounts For the year ended 31 December 2013 Company number: 6220240 Charity number: 1123613

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Patron

Trustees’ Report

Her Majesty The Queen President of The Mission to Seafarers HRH The Princess Royal

Trustees Robert B Woods CBE (Chairman) (*G) Vice Admiral Sir Tom Blackburn KCVO CB (*G,*I) The Revd Canon Christopher Burke (*A) David Cockroft The Rt Revd Richard M C Frith (*G) Christopher Horrocks CBE (*A) Frances Lloyd Stephen Lyon (*R) David Moorhouse CBE (*I) Neale Rodrigues MM (*R) Simon P Sherrard (*A)

Executive Secretary General The Revd Andrew Wright (From 25 February 2013) (*G) Acting Secretary General (18 April 2012 to 25 February 2013) and Executive Director Martin Sandford (*I)

Resignations Captain John W Hughes (Vice Chairman) – 31 December 2013 (*R)

Committees – external members and key *G. Governance and Nominations Committee *R. Remuneration Committee

Su Morgan (External) *I. Investment Committee

Howell Harris-Hughes CBE (External) – Retired 29 November 2013 *A. Audit and Risk Committee

Christine Freshwater (External) – from 23 April 2013

Timothy Quin (External) - Retired 5 April 2013

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Trustees’ Report The Trustees present their report with the financial statements for The Mission to Seafarers (“MtS”) registered in England and Wales for the year ended 31 December 2013.

Charitable object: The object of The Mission to Seafarers, as stated in the Articles of Association, and for which we are established for the public benefit, is:

“To promote the spiritual, moral and physical wellbeing of seafarers and their families worldwide” Our global vision: As a Christian network of co-operating maritime welfare charities working in 71 countries, we have a presence in more than 260 ports and strive to improve and safeguard the wellbeing of the world’s 1.5 million seafarers of all ranks, nationalities and beliefs.

Our global mission: We aim to provide effective welfare services and pastoral care, to seafarers in need, focusing on ship-visiting, advocacy, communications and seafarers’ centres, in ports where their needs are greatest.

The Five Marks of Mission: The mission statement of the Anglican Communion was adopted by The Mission to Seafarers’ World Consultative Forum (2011) to guide the welfare work that we do: u

To proclaim the Good News: for us, this means showing God’s love in practical ways

u

To teach and nurture believers: for us, this means helping seafarers to discover God

u

To respond to human need: for us, this means caring for any seafarer in distress

u

To

u

To strive to maintain the integrity of creation: for us, this means helping to look after the world in which we live

challenge violence and injustice and to work for peace: for us, this means protecting crews’ rights and resolving issues

Our core values are: u

We behave with compassion

u

We act with integrity

u

We treat everyone with respect

u

We believe in justice for all

u

We value the resources we have been given

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Activities To achieve our mission, MtS provides outreach welfare services to seafarers and their families in around 50 ports in the UK, Europe, Asia, Africa, The Middle East, The Far East and South America, through directly salaried, or grantfunded port-based chaplaincy teams; and gives support and advice to a further 210 ports through independently run Mission to Seafarers’ sister charities and organisations across the rest of the world as part of our global Mission family.

Founded in the UK in 1856, we are proud of our culture and heritage of dedicated service to seafarers, and estimate the following outputs annually:

902,000

visits to seafarers’ centres

280,000

transport runs from ship to shore

60,000 visits to ships

2,800

justice cases

We employ a total of 44 professional maritime welfare chaplains, 26 of those directly on salaries and we support a further 18 posts through grant-funded contracts. We are established in 121 international seafarers’ centres around the world. We provide a lifeline to merchant seafarers, night and day, 365 days a year.

The Mission to Seafarers’ International Headquarters in London UK sends out information, conducts research, provides fundraising and marketing services, along with reputation and brand support, and manages publications and digital media, including websites, for The Mission to Seafarers’ global family. The Secretary General – amongst other duties – provides the spiritual leadership for the Ministry teams which support seafarers in need around the world.

We are entirely funded by voluntary donations and rely on the deep generosity of our loyal supporters.

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Public benefit The Mission to Seafarers’ Trustees confirm that the activities of the charity are carried out, in line with its charitable object and objectives, for the benefit of the public. They further confirm that the impact of our work on beneficiaries is a key criterion when deciding what activities to undertake and how best to achieve our mission.

The Mission to Seafarers’ Trustees therefore confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity.

Organisational structure MtS is a charity, constituted as a company limited by guarantee and not having share capital. MtS is governed by a board of Trustees which forms the Board of Directors, as constituted by MtS’s Articles of Association. Members of the Board are both Trustees of the charity and Directors of the company.

Subsidiary companies The Mission to Seafarers’ consolidated figures also include the following companies, which are wholly controlled by MtS in England and Wales, and are classified as subsidiaries: u

The Mission to Seafarers DMCCO, registered in Dubai

u

The Dunkirk War Memorial Trust Ltd

u

The Flying Angel Belfast Ltd

u

The Mission to Seafarers Scotland Ltd

u

The Mission to Seafarers Trust Corporation Ltd

The Flying Angel Marketing Enterprises Ltd carries out the marketing, distribution, and sale of donated goods and receives revenue from Christmas card sales and other merchandise; and is a party to any commercial agreement that is not considered a charitable activity of MtS.

Branches 12 MtS operations, both within the United Kingdom and including Aqaba (Jordan) and Mombasa (Kenya), are known as ‘branches’ and come under MtS direct control. These are wholly funded by us and report their income and expenditure directly to us. These branches are listed below and their results are included in the financial statements set out on pages 19 to 43 of this report.

Table of Branches

Aqaba, Jordan

Belfast, UK

Cardiff, UK

Falmouth, UK

Fowey, UK

Newport, UK

Mombasa, Kenya

Port Talbot, UK

Tees North (Hartlepool), UK

Tees South (Middlesbrough), UK

Tyne & Wear (South Shields) UK

UK Welsh Council, UK

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Grant-funding and paid chaplaincy As well as our ‘branches’ we also have paid full-time and grant-funded chaplains in the following areas, with ‘memoranda of understanding’ in place at 31 key locations:

The Mission to Seafarers funded and grant-funded ports

Antwerp, Belgium

Bahrain

Bangkok, Thailand

Belem, Brazil

Busan, South Korea

Colombo, Sri Lanka

Dar-es-Salaam, Tanzania

Dunkirk, France

Dubai, United Arab Emirates

Felixstowe, UK

Fujairah, United Arab Emirates

Gibraltar

Hong Kong, China

Humber Ports, UK

Limassol, Cyprus

Milford Haven, UK

New Mangalore, India

North West Ports, UK

Odessa, Ukraine

Portbury, UK

Rotterdam, The Netherlands

Rouen, France

Scottish Ports, UK

Seaham, UK

Singapore

Southampton, UK

Suape, Brazil

Tilbury, UK

Tuticorin, India

Vlissingen, The Netherlands

Yokohama, Japan Independent Mission to Seafarers’ charities in Australia, Canada, South Africa, USA, and the rest of the world We are proud to work with our sister MtS charities across the world in a further 15 countries, which engage with us to provide a dynamic and responsive welfare service for seafarers with significant service capability. While these are independent charities in their own right, they co-operate with MtS on matters of welfare provision and communications. They are responsible for their own financial affairs and statements.

Honorary chaplains Around the world, The Mission to Seafarers appoints part-time honorary chaplains to be a point of contact for emergencies and seafarers’ support in 71 countries and 260 ports. The role of the honorary chaplain varies with the port and country in which the chaplain is located, but it is a vital global network, which taps into local maritime knowledge and skills.

Partnerships The Mission to Seafarers’ global family of sister charities, seafarers’ centres and organisations works in partnership through local ecumenical networks, and in some cases co-owned property, via its membership of the International Christian Maritime Association.

Governance and management The Board of Trustees is drawn from prominent leaders with wide experience of seafaring life, including the Royal Navy, the shipping industry and from London’s financial centre, the City of London. MtS also invites leading members of the clergy to serve as Trustees. The procedure for the election and appointment of Trustees is set out in the Articles of The Mission to Seafarers.

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Trustees may serve on the Board for two periods of four years, apart from those aged 70 years or more who have to be re-elected annually. The Chairman and Vice-Chairmen are elected for a four-year term.

The Board requires a quorum of five Trustees and normally meets four times a year. It is the governing council of the organisation.

Newly appointed Trustees are given an induction which provides them with information on the work of the organisation and highlights their responsibilities as a Trustee. Some Trustees may also undergo specific training courses as required for their roles. Trustees are also required to sign a Code of Conduct and complete a Register of Interests on appointment.

Sub-committees The Board of Trustees has four sub-committees: Governance and Nominations Audit and Risk u Investment u Remuneration u u

Each of the above committees is made up of Trustees and members of the executive staff. Where appropriate, the Board may co-opt independent and professional expertise from external sources, for the benefit of a committee’s work.

In 2014 the MtS will consider the appointment of international Trustees to further advise the Board on global shipping matters and the welfare needs of seafarers.

The day to day management of the charity is delegated to the Secretary General who reports to the Board of Trustees and directs the Ministry staff. The lay staff are led by the Executive Director through two directorates, Development, and Finance and Administration.

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Activities, Achievements and Future Plans On 25 February 2013 The Mission to Seafarers welcomed a new Secretary General, The Revd Andrew Wright, after the sudden death of The Revd Tom Heffer in April 2012. In the interim, Executive Director Martin Sandford directly managed MtS as Acting Secretary General to ensure that the objectives of the MtS’s strategy 2010-2014, Delivering Maritime Ministry Beyond the Next Horizon, were delivered on time and to agreed budgets.

Throughout the rest of 2013, the Trustees and the new Secretary General worked to re-examine the current charity welfare service provision and towards the end of 2013 began to map out a framework for a refreshed strategic approach and business plan, which will be launched in the summer of 2014.

Strategic reorganisation 2014-2019 In January 2014, MtS announced a significant strategic reorganisation, which will build on the foundations of the previous strategy and which looks at regional service delivery and modernisation as the key overarching themes.

The focus on sustainability and efficiency is maintained, and for 2014 MtS has embarked on a cost-cutting plan which, it is hoped, will mean around £1 million in efficiency savings. At the same time MtS will be maintaining and evaluating welfare services on the ground through our ongoing Global Review of Ports.

We are satisfied that the MtS is managing this change carefully and we look forward to seeing more progress.

However, we continue to operate in a period of significant financial restraint for our supporters, particularly in the shipping industry at home and abroad. This has meant fundraising continues to be challenging and a high priority.

Below we set out the progress made so far in line with our strategic objectives.

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Strategic Report

Objective A: To offer practical help and spiritual support at the point of greatest need What we achieved in 2013 Ship-visiting u

A friendly face and genuine welcome for vessels in port from The Mission to Seafarers is one of the enduring services provided all around the world.

u

Our current service provision has been reviewed in a number of ports in the UK, Europe, in the Middle East, India and Asia.

u

We have reduced our capability in port areas where access has proved untenable in the medium and longer term, and recruited and replaced chaplains in ports that need strengthening and expansion.

u

We have looked to strengthen ship-visiting services world-wide reflecting increased need and demand.

u

Our provision of support for seafarers suffering isolation, especially over Christmas, has been extended and our volunteer-led ‘wrapathons’ of gifts continue to grow world-wide.

u

Improving ministry provision to cruise lines has been made a medium term priority and services for MtS’s ‘Church of The High Seas’, the voluntary team that co-ordinate cruise line ministry services, has been re-evaluated.

Transport u

We offer transport services run by volunteer drivers all over the world and provide funds to buy vehicles.

u

The provision of minibus transport services from ship to shore is vital to ensuring that seafarers, who work long contracts at sea, can access facilities to enable them to properly rest and recover.

u

The transport we provide for seafarers is free of charge.

u

The provision of new transport and investment in the recruitment of drivers has improved access to our centres for seafarers seeking to come ashore.

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Flying Angel seafarers’ centres u

The Mission to Seafarers has undertaken an extensive programme of visiting global centres in order to engage with local service teams and to gain valuable insights into new challenges and opportunities.

u

New forms of seafarers’ centres have been opened, including those using environmentally-friendly designs and scaled to meet more flexible locations on the dockside, for example, by using ‘portacabins’.

u

We provide woolly hats to many of our seafarers’ centres to distribute free of charge to seafarers in cold climates.

Our teams of volunteer knitters, most often from local affiliated churches, work hard all year long to keep our local stocks of knitted items in stock.

u

We have developed our ecumenical working model, predominantly in the UK, to extend ship-visiting programmes and maximise the efficient use of resources by reflecting local volunteer patterns.

Visiting seafarers in distress u

Our hospital and prison-visiting programmes helps seafarers and their families find comfort when they are separated by long distances.

u

We provide round the clock care to those in most need and offer support to families where necessary, including providing accommodation at our largest centres.

u

We undertake support and counselling to seafarers suffering from a range of life threatening and every day medical conditions.

u

We liaise with local welfare agencies, acting as the local point of reference and information on services in the complex, high security port environment.

Support, counselling and post-trauma care u

The Mission to Seafarers offers day to day advice and support for a whole range of problems, including workplace stress, piracy related post-traumatic support, relationship problems and mental health issues.

u

We have started to open discussions with maritime colleges to ensure good practice to support cadets with relatively little experience at sea.

u

Post-traumatic stress counselling services have been extended and further professional training was held in Europe.

u

We offer bereavement counselling services to seafarers.

u

We have extended our support for seafarers who are reporting increased levels of mental health problems, including depression, stress and anger management issues.

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Communication services u

Our centres enable seafarers to contact their families through cost-effective communication services. We provide customised telephone SIM cards, wifi and internet services to enable seafarers to contact home.

u

Our globally recognised seafarers’ newspaper, The Sea, provides essential maritime news and is offered free to seafarers in all our ports. We provided around 174,000 copies in 2013.

u

We provide donated books and DVDs to seafarers and offer library services in many of our centres.

Emergency response u

According to the IMO (2012), over 1,000 people die at sea every year and often survivors of shipwreck or fire are brought ashore to the nearest seafarers’ centre. We provide help and support to seafarers suffering from shock or minor injuries in the wake of a disaster.

u

In November 2013, in the Philippines, typhoon Haiyan caused the deaths of over 100,000 people, and many of our ports reported a high number of distressed seafarers using our services. We provided counselling and posttrauma care.

u

We provided free SIM cards to Filipino seafarers; and worked with the Daily Telegraph newspaper and the cruise line industry to fundraise through a charity auction of cruise holidays.

u

The Thomson Cruise Appeal raised over £35,000 for the families of five seafarers tragically killed during a health and safety lifeboat drill in Tenerife in the Canary Islands.

Spiritual support u

When required, we provide spiritual support to seafarers, offering prayers, blessings and pastoral care to those in need.

u

We provide services of remembrance, blessings of ships and hold the service of Eucharist for those who have died at sea if requested.

u

We provide spiritual information materials, including Christian tracts such as Bibles, in English and in translation, in partnership with other mission agencies and charities.

Challenges faced u

Recruitment of ship-visitors and new volunteers remains a challenge.

u

Access to new port facilities is an increasing issue for MtS, and we have had problems securing port permits for regular ship-visiting.

u

Providing transport services for, and keeping centres open to meet the needs of, seafarers arriving on early and late tides requires constant evaluation.

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u

Illness and injury suffered by staff and volunteers has been problematic.

u

The decline in the use of centre phones and phone cards has decreased the ability of some centres to raise adequate funds.

u

Extreme weather conditions can affect centre staffing and opening times.

u

Working with seafarers in many countries requires particularly cultural sensitivity around the issues of sexual health, and alcohol or drug addiction.

u

Seafarers have increasingly reported that they are suffering from severe isolation.

u

Chaplaincy teams are reporting more incidents of breaches of security and increases in crime in ports.

What next? u

In 2014 we plan to implement our strategic reorganisation and regionalisation programme which will significantly strengthen the support that we offer to seafarers locally.

u

We aim to further develop our partnerships with other mission agencies and maritime welfare organisations to further ensure the best possible service is provided for seafarers in need.

u

We will continue to review and assess new port entry strategies and consider appropriate decommissioning plans for all ports around the world as part of our Global Review of Ports activity.

u

We are developing a new port entry plan for East Asia, which may include opening small ‘pilot’ ports in order to increase our contact with and services for, seafarers in countries and to build experience in new countries.

u

We are currently on schedule to open a new port service in Mumbai, India and extend operations in Grangemouth, Scotland in 2014. We continue to explore potential avenues for expansion in the Far East, Russia and Vietnam.

u

We are to recruit additional chaplaincy support in Hong Kong, Singapore and the United Arab Emirates.

u

Our Seafarers’ Survey 2013, to which over 1000 seafarers responded, will be used to inform our business plan and strategy in 2014.

u

In 2014 we plan to extend our volunteer recruitment plan and offer more support to teams seeking new help locally, particularly to extend our international ship-visiting programme.

u

We will invest in further research into seafarers’ health needs and consider health projects with programmes of online support, for sensitive areas such as sexual health and addiction problems.

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Objective B: To provide advocacy services and campaign for changes that improve lives What we achieved in 2013 Justice and advocacy u

MtS has campaigned tirelessly for the international community to ratify the Maritime Labour Convention 2006 (MLC), which outlines a comprehensive list of standards and regulations that protect seafarers’ well-being. 2013 saw the landmark entry into force of the MLC.

u

MtS chaplains have been trained to identify situations where advocacy on behalf of seafarers is most needed on ship and will be key to supporting seafarers interpret the MLC around the world.

u

We provide a range of responses to seafarers who are having employment problems, which include wages disputes, bullying and contractual disputes.

u

We support seafarers with medical problems where appropriate and refer to Unions or the Port Authorities where appropriate.

u

We have continued to influence at the most senior international level with regulators, including the International Maritime Organization (IMO) and the International Labour Organization (ILO), and have continued to actively champion seafarers’ welfare needs.

u

We have highlighted a significant increase in ‘abandonment’ of seafarers in many ports, including the UK, and have worked with international marine insurers to design new products for Flag States, which will in turn help protect seafarers.

u

We have continued to provide provisions to crews who have been stranded on arrested vessels, including supplying food, water, medicines, clothing and communications services.

Public affairs and media u

Our esteemed President, HRH The Princess Royal, continued to champion our work around the world at our headline community and industry events to raise awareness of the plight of seafarers.

u

We continued to press at the highest level of government, both at home and abroad, for the welfare of seafarers to be a priority.

u

We continued to meet with our partners around the world. These include the International Christian Maritime Association and the worldwide Anglican Communion.

u

We have significantly increased public awareness of the work of The Mission to Seafarers with coverage from BBC Two, Sky News, BBC News, CNN, Bloomberg, The Press Association and The Daily Telegraph, as well as BBC and commercial local radio stations. We were mentioned in The Times newspaper for our Sea Sunday campaign.

u

Our profile with the maritime trade press continued to be strong with contributions and articles being published in Lloyd’s List, Tradewinds, Fairplay and Nautilus, as well as online news agencies and The Church Times.

u

We worked as advisors to the global film industry on matters of piracy and supported commercial publishing on key topics related to seafarers’ welfare.

u

The crisis preparedness online interactive training programme was launched internationally.

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Challenges faced u

The preparation for the entry into force of the MLC 2006 required chaplaincy teams to undergo awareness building courses ready to respond to seafarers’ needs.

u

In some ports, which are highly secure, access to ships continues to be problematic and negotiations with local authorities can drain limited resources.

u

Working in confidential and highly sensitive contexts can be exacerbated by local cultural barriers to sharing information and support.

u

The polarisation between high quality, ethical, ship-owners, operating large fleets and fragmented, low quality, sometimes illegal, shipping is growing.

u

MtS works to extend and grow strategic partnerships with ethical ship-owners to the benefit of all seafarers everywhere and to support those seafarers who still suffer from sub-standard management practices.

What next? u

The MLC may encourage a higher number of complaints from seafarers relating to exploitation and abuse to which The Mission to Seafarers must respond to assist seafarers seeking redress.Â

u

In 2014 we are planning to develop additional advocacy training for chaplaincy teams.

u

Our overarching campaigning theme will be abandonment of vessels in 2014.

u

We will continue to closely monitor the progress and enforcement regime of the MLC.

u

We will continue to engage with seafarers and appropriately report their concerns and illuminate justice cases at the highest level in the industry, with regulators and in the media.

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Objective C: To optimise the use of resources Ministry Operations

What we achieved in 2013 u

We have developed higher quality service delivery through a more flexible approach to funding chaplaincy, and with chaplai ncy grants replacing direct employment in some areas.

u

The role of project manager in the ministry team has been created to ensure that the Global Review of Ports is underpinned by a robust, evidence-based assessment framework for the future.

u

We have developed more flexible learning programmes and included online courses where possible to drive down costs and increase accessibility.

u

Ministry information materials have been reviewed and streamlined realising significant cost savings.

u

We have invested in upgrading and developing IT in some areas to increase communications and reporting.

u

We have moved towards an increase in digital publishing and engagement. We have launched a new MtS internal e-Newsletter.

Challenges faced u

Retention of MtS chaplains has been an issue and maintaining cohesion with our chaplaincy teams during a time of organisational change.

u

We need to strengthen our relationship with the Church in key strategic dioceses and we have set up a rolling programme of engagement with senior leaders to address this need.

u

IT continues to be problematic across MtS teams spanning continents and for seafarers from ship to shore.

u

Seafarers’ centres need significant investment and also require modernisation or decommissioning in places.

u

The long tradition and culture of The Mission to Seafarers leads to organisational assumptions about service delivery and can be an obstacle to sharing new ideas and leading change on the ground.

What next? u

During 2014 and post the strategic reorganisation this year, we intend to ensure line management is fully strengthened through the new Regional Directors’ posts.

u

We aim to ensure that the cohesion of all staff, volunteers and chaplaincy teams is maintained and internal communications continues to strengthen.

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Fundraising and marketing What we achieved in 2013 u

We have continued to raise our international profile, and strengthened and extended our supporter base, at home and abroad.

u

Our work in East Asia continues to be a high priority for fundraising in 2014.

u

We have raised significant funds for transport services for MtS around the world.

u

The MV Flying Angel is a floating MtS seafarers’ centre in the United Arab Emirates which provides communications and a medical centre. We have continued to provide essential fundraising support to this service.

u

Church-related giving through ‘Sea Sunday’ continued to grow. In 2013 ‘Sea Sunday’ raised over £45,000, 11 per cent more than in 2012.

u

On Woolly Hat Day our supporters wear knitted beany hats, and donate to the MtS cause.

u

We worked to support key MtS branches deliver their strategic fundraising and development strategies for 2014.

u

Our corporate work programme was strengthened in 2013 in the UK and around the world.

u

Over the past three years there has been a 60 per cent increase in Trust income.

u

Individual giving continues to be a steady growth area for MtS as we work to increase our supporter base and develop new audiences.

u

Our new ‘Flying Angel’ awards scheme was launched in May.

Challenges faced u

To ensure our fundraising reach and mix positively reflects our special identity.

u

Increasing voluntary income to achieve a balanced budget.

u

To increase awareness of the challenges that seafarers face around the world.

u

To enhance and develop the MtS brand and maintain the reputation of The Mission to Seafarers.

u

To continue to develop and deliver highly creative and inspiring fundraising campaigns to drive increased income.

u

To ensure that the sound legacy pipeline of support continues into the medium term.

u

The continuing support of our volunteers is essential if we are to reach our fundraising targets by 2016.

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What next? u

To expand our fundraising locally and in partnership with our key audience groups.

u

We will develop global marketing and fundraising strategies which underpin the strategic reorganisation in 2014 to 2016.

u

To develop a new range of high impact fundraising campaigns, including extending Sea Sunday globally.

u

We plan to launch a Give As You Earn Scheme in the UK.

u

To develop legacy giving by rolling out a substantial and targeted legacy campaign in the spring of 2014.

Volunteers The Mission to Seafarers is greatly indebted to its volunteers for their commitment, time and skills. This includes all volunteers that help with MtS’s work, whether directly helping in ports or in seafarers’ centres or indirectly helping by completing surveys or contributing to MtS campaigns and appeals.

In particular, we could not extend our local networks without our fundraising committees and branch committees, and those who volunteer in Flying Angel Centres.

We also could not function without the support of those in the shipping industry who take part in our challenge activities, such as the Flying Angel Ride and the London to Paris Bike Ride. We thank them all for their support.

Thank You

The Mission to Seafarers could not exist without funding from individual donors, companies, trusts, public bodies and other associations, and we thank all of them for their support.

We would also like to record our thanks to all of the chaplains and staff of The Mission to Seafarers, who show so much dedication and commitment to their work and to the charity.

We would like to thank our Mission to Seafarers partners overseas who continue to share our global vision of improving the wellbeing of seafarers and their families across the world.

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Financial Review The Group Statement of Financial Activities on page 25 shows net outgoing resources before recognised gains on investment assets of £549,000 (2012: £620,000). If gains on disposal of property no longer required for the purposes of The Mission to Seafarers are excluded, the net outgoing resources are £816,000 (2012: £1,015,000).

Total incoming resources were £5,087,000 (2012: £4,750,000). The Trustees recognise that legacies of £1,482,000 (29%) (2012: £1,024,000 (22%)), continue to comprise a significant proportion of incoming resources excluding gains on property and investment assets.

Total resources expended were £5,636,000 (2012: £5,370,000). An analysis of this expenditure is given in note 6 to the financial statements. The proportion of total expenditure that MtS considers to be of a charitable nature was 75% (2012: 72%).

It is important to stress that the sustainability of the MtS’s operations, both in the UK and as a resource provider to other parts of the worldwide Mission global family, depends on its ability to generate cash, and below is a summary of the MtS’s results for the last five years.

History STATEMENT OF FINANCIAL RESOURCES

Restated

2013 2012 2011 2010 2009

TOTAL INCOMING RESOURCES

£’000 £’000

£’000 £’000 £’000

5,087

5,463

4,750

4,660

7,725

Incoming Resources excluding Property and Investment Gains:

4,820 4,355

5,300 4,547 4,339

Resources Expended

5,636 5,370

5,648 5,657 5,621

Net (Loss) before Property and Investment Gains

(816) (1,015)

(348) (1,110) (1,282)

BALANCE SHEET Tangible Assets

7,206 7,157

6,840 6,714 6,669

Investments 21,065 19,972 18,157 19,268 17,766 Net Current Assets

1,960 1,762

3,852 4,129 4,784

NET ASSETS 30,231 28,891 28,849 30,111 29,219

Endowment - - - 672 636 Restricted 638 702 774 631 711 Designated 14,000 -

- - -

Unrestricted 15,593 28,189 28,075 28,808 27,872 TOTAL RESERVES 30,231 28,891 28,849 30,111 29,219

Cash Flow Net cash outflow from operating activities

(982)

(1,305)

(512)

(1,170)

(1,506)

Accounts 2013

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Risk management The Board of Trustees maintains a risk register, which was reviewed and updated in detail in 2013, in which the major risks to which The Mission to Seafarers could be exposed are recorded, together with the systems and procedures that are in place to manage them and future actions needed to reduce further the charity’s exposure.

The principal risks that MtS facesjust are that it is unable to raise sufficient funds to permit it to maintain or expand the “Brilliant, brilliant!

Please come back soon!” services it offers to seafarers to meet the level of need identified or an event occurs which damages the reputation of A Danish shipmaster and visitor to the MV Flying Angel MtS to such an extent that it is unable to raise sufficient funds to continue.

The Board of Trustees has overall responsibility for Risk Management. It is included in the remit of the Audit and Risk Committee and continually monitored by the senior management team. The register will continue to be reviewed as needed, but as a minimum will be looked at annually.

Reserves The level of the unrestricted general reserves has provided some protection to The Mission to Seafarers and allows time to adjust to changing financial circumstances. This has limited the risk to service provision from operating deficits, such as MtS has experienced in recent years, or an unexpected need for unbudgeted expenditure. MtS seeks to maintain general reserves to reflect the long-term nature of its work.

The Trustees take the view that they are the temporary custodians of these reserves and that it is essential that they leave The Mission to Seafarers in a state where it can continue for as long as seafarers need it. There is no sign of this need diminishing. Accordingly, the Trustees do not believe that any significant amount of the reserves should be spent unless or until the revenues achievable and the expenditure incurred in meeting seafarers needs are in balance. Over the past five years, the cumulative operating loss has been £4.5 million. It is only the performance of the MtS’s investment portfolio, and the sale of some property assets, that has allowed MtS to be in as healthy a position at the end of 2013 as it was at the end of 2009.

The consolidated reserves of The Mission to Seafarers group amount to just over £30 million. This year, following Board discussions of the issue in the past three years, the Trustees have resolved to designate reserves of £14 million which are not available for general purposes. This is made up of £7 million in fixed assets, £6 million in branch and subsidiary reserves and £1 million in future commitments relating to chaplain and pensioner accommodation. There are also restricted reserves of over £600,000. This leaves over £15 million in reserves for general purposes. n I n the opinion of the Trustees, this level of fund continues to be required to meet future working and capital requirements having taken into account the following factors: n M tS seeks to operate in a proactive manner, to make commitments in terms of manpower and premises for the long term and to provide a reserve of funds sufficient to support operations at locations worldwide where it operates. There are continuing indications that some of MtS’s operations overseas, which endeavour to be self-funding, are struggling to maintain essential services. The Mission to Seafarers is committed to the principle of maintaining its worldwide support of seafarers and to retaining a sufficient level of funds to give stability to its work, including the provision of emergency financing where necessary for these activities. n L ong term committed expenditure at ports directly under UK control, if not funded by reliable and sufficient income streams, is a high risk strategy, which can be unsustainable without adequate reserves. The Trustees are very aware that ministry to seafarers is a long-term undertaking and, for that to be possible, a sound financial base is a prerequisite. n I n 2013 legacy income was £1,482,000 (2012: £1,024,000). Whilst MtS has benefited from legacies in the past and hopes to do so in the future, legacy income cannot be relied upon as a continuing and certain source of incoming resources. The Trustees have, therefore, made allowance for the uncertainties that arise from legacy income.

20 | Accounts 2013

Trustees’ Report

n T he Mission to Seafarers anticipates continuing net cash deficits arising from insufficient cash being raised. These deficits will be funded from the proceeds of investment and fixed asset transactions. There is a risk that future cash deficits will require continued funding from investment reserves. The Trustees have made an allowance for the element of risk arising from any future adverse movement in market values of investments held. n C hanges in law may impose costs, such as in the area of pensions, where obligations may arise to ensure that current and retired employees are not significantly disadvantaged.

In view of the level of reserves carried the Trustees consider that it is appropriate for the financial statements to be prepared on a going-concern basis.

Investment policy The Trustees have adopted a policy for the portfolio of investments that is designed to optimise returns over the longer term and thus provide a regular flow of funds to support The Mission to Seafarers’ operating activities both in the UK and overseas.

In the implementation of this policy, the Trustees follow the Charity Commission guidance for the investment of charitable funds. They also have regard to, but are not bound by, the Church of England Ethical Investment Advisory Group guidelines.

Investment portfolio MtS maintains an internationally diversified portfolio of investments including equities, fixed interest stocks and investment funds giving access to other asset classes. The portfolio is externally managed by investment managers who are regulated by the Financial Conduct Authority.

Asset allocation and investment performance The Investment Committee regularly monitors the risk characteristic and asset allocation of the portfolio by means of reports from, and review meetings with, the investment managers. The performance of UBS, MtS’s primary investment managers, is measured against a composite benchmark designed to reflect MtS’s financial objectives and appetite for risk. The Mission to Seafarers’ agreement with UBS has been that performance will be assessed on a three year rolling basis.

Over the last 12 months UBS have been confident about the outlook for equity markets and as a result the portfolio rose by 18.1%; by comparison the benchmark appreciated by 17.2%. Both the fixed income and equity investment outperformed over the period. For the three year period to 31 December 2013 the portfolio produced an annual return, after all fees, of 6.9%; by comparison the benchmark rose by 8.6% per annum. The underperformance arises largely from the underperformance of the Triton Property Fund which has now been sold.

Approved and authorised for issue by the Board on 30 April 2014 and signed on its behalf by:

Chairman of the Board

Chairman of the Audit and Risk Committee

Accounts 2013

| 21

Statement of Trustees’ Responsibilities The Trustees (who are also directors of The Mission to Seafarers for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: n Select suitable accounting policies and then apply them consistently; n Observe the methods and principles in the Charities SORP; n Make judgments and accounting estimates that are reasonable and prudent; n P repare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to the Auditor In so far as the Trustees of the charity at the date of approval of this report are aware: n There is no relevant audit information of which the charitable company’s auditor is unaware; and n T he Trustees have taken all steps that ought to have been taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

22 | Accounts 2013

Trustees’ Report

Independent Auditor’s Report to the Members of The Mission to Seafarers We have audited the Financial Statements of The Mission to Seafarers for the year ended 31 December 2013 which comprise the Group Statement of Financial Activities, the Group and Company Balance Sheet, the Group Cash Flow Statement and the related notes numbered 1 to 20.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Trustees and Auditor As explained more fully in the Statement of Trustees’ Responsibilities set out on page 22, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the Financial Statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of whether the accounting policies are appropriate to the group’s and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the Trustees’ Annual Report and Strategic Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material mis-statements or inconsistencies we consider the implications for our report.

Accounts 2013

| 23

Opinion on Financial Statements In our opinion the financial statements: n G ive a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2013, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended. n Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. n Have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matters prescribed by the Companies Act 2006 In our opinion the information given in the Strategic Report and Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: n T he parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or n T he parent charitable company financial statements are not in agreement with the accounting records and returns; or n Certain disclosures of Trustees’ remuneration specified by law are not made; or n We have not received all the information and explanations we require for our audit.

Helena Wilkinson BSc FCA DChA (Senior Statutory Auditor)

For and on behalf of Price Bailey LLP Chartered Accountants Statutory Auditors 7th Floor Dashwood House 69 Old Broad Street London United Kingdom EC2M 1QS

24 | Accounts 2013

Trustees’ Report

GROUP STATEMENT OF FINANCIAL ACTIVITIES Incorporating an Income and Expenditure Account

Total

Total

Funds Funds 2013

Funds

£’000 £’000 £’000

£’000

Notes Unrestricted Restricted

INCOMING RESOURCES Incoming resources from generated funds 3

3,019

290

3,309

2,790

Activities for generating funds

202

-

202

196

Investment income

4

586

-

586

700

Incoming resources from charitable activities

495

-

495

516

-

495

Voluntary income

Other incoming resources

5

TOTAL INCOMING RESOURCES

495 4,797

548

290 5,087

4,750

EXPENDITURE 1,292

1,288

Fundraising & Trading

99

-

99

108

Investment management costs

(14)

-

(14)

15

Charitable activities

3,929

282

4,211

3,872

Governance costs

48

-

48

87

Cost of generating Funds

1,292

TOTAL RESOURCES EXPENDED 6 5,354 282 5,636

5,370

NET OUTGOING RESOURCES BEFORE TRANSFER

(620)

Transfers between funds

15

(557)

8

72

(72)

(549)

- -

NET OUTGOING RESOURCES BEFORE RECOGNISED GAINS AND LOSSES (485) (64) (549)

(620)

FOREIGN EXCHANGE LOSS

(85)

NET EXPENDITURE

(588)

UNREALISED GAINS/(LOSSES) ON INVESTMENTS

1,992

12

NET MOVEMENT IN FUNDS

1,404

- (85) (64) (652) -

1,992

(250) 292

(64) 1,340

42

RECONCILIATION OF FUNDS TOTAL FUNDS BROUGHT FORWARD 28,189

702 28,891

28,849

TOTAL FUNDS CARRIED FORWARD 29,593

638 30,231

28,891

All the above results are derived from continuing activities. All gains and losses in the year are included above; accordingly a statement of total recognised gains and losses is not required.

Notes 1 to 20 form part of these financial statements.

Accounts 2013

| 25

GROUP BALANCE SHEET

Notes Unrestricted Restricted Total

Total

Funds Funds 2013

2012

£’000 £’000 £’000

£’000

FIXED ASSETS Tangible assets

11

6,607

Investments 12 21,065

7,206

7,157

- 21,065

19,972

599

27,672

599 28,271

27,129

CURRENT ASSETS Stocks-goods for resale Debtors 13

34 373

34

38

- 373

561

-

Short term deposits

595

39

634

602

Cash at bank and in hand

1,788

-

1,788

1,364

2,790

39 2,829

2,565

CURRENT LIABILITIES 14

869

- 869

803

NET CURRENT ASSETS 1,921

39 1,960

1,762

NET ASSETS 29,593

638 30,231

28,891

FUNDS Unrestricted 15,593

- 15,593

Designated 16 14,000

- 14,000 -

Restricted 15

-

638 638

28,189 702

TOTAL 29,593

638 30,231

Company Registration Number 6220240 Approved and authorised for issue by the Board on 30 April 2014 Signed on its behalf by:

Chairman of the Board

Chairman of the Audit and Risk Committee

Notes 1 to 20 form part of these financial statements.

26 | Accounts 2013

28,891

Trustees’ Report

COMPANY BALANCE SHEET

Notes Unrestricted Restricted Total

Total

Funds Funds 2013

2012

£’000 £’000 £’000

£’000

FIXED ASSETS Tangible assets

11

6,210

Investments 12 20,912

6,809

6,660

- 20,912

19,816

599

27,122

599 27,721

26,476

CURRENT ASSETS Stocks-goods for resale Debtors 13

27 304

27

30

- 304

497

-

Short term deposits

595

39

634

532

Cash at bank and in hand

1,013

-

1,013

695

1,939 CURRENT LIABILITIES 14

818

39 1,978

1,754

- 818

738

NET CURRENT ASSETS 1,121

39 1,160

1,016

NET ASSETS 28,243

638 28,881

27,492

FUNDS - 26,790

26,856

-

702 702

774

TOTAL 26,790

702 27,492

27,630

General 26,790 Restricted 15

Company Registration Number 6220240 Approved and authorised for issue by the Board on 30 April 2014 Signed on its behalf by:

Chairman of the Board

Chairman of the Audit and Risk Committee

Notes 1 to 20 form part of these financial statements.

Accounts 2013

| 27

GROUP CASHFLOW STATEMENT RECONCILIATION OF NET OUTGOING RESOURCES 2013

2012

FOR THE YEAR TO NET CASH OUTFLOW £’000 £’000 FROM OPERATING ACTIVITIES

Net outgoing resources

(549)

(620)

Gain on disposal of tangible fixed assets

(281)

(409)

Investment income

(586)

(700)

Depreciation 261 247 Decrease/(Increase) in stocks

4

(3)

Decrease in debtors

188

(363)

Increase/(Decrease) in creditors

66

162

Exchange (Loss)/ Gain on consolidation

(85)

(21)

(982)

(1,305)

Net Cash Outflow from Operating Activities CASHFLOW STATEMENT

Net Cash Outflow from Operating Activities (982) (1,305) Returns on Investments and Servicing of Finance 586

Investment Income

700

Capital Expenditure and Financial Investment Payments to acquire tangible fixed assets

(870)

(707)

Purchases of investments

(8,357)

(12,770)

Receipts from sales of tangible fixed assets

838

573

Receipts from sale of investments

10,775

12,182

2,386

722

Net Cash Inflow/ (Outflow) before Management of Liquid Resources 1,990

1,327

Management of Liquid Resources (Increase)/Decrease in cash on short term deposits

(32)

2,309

Increase in cash with investment managers

(1,534)

(565)

1,566

1,744

Increase in Cash 424 417

1 January 2013

Cash inflow

31 December 2013

ANALYSIS OF CHANGES IN NET CASH Cash at bank and in hand

28 | Accounts 2013

1,364

424

1,788

Trustees’ Report

NOTES TO THE FINANCIAL STATEMENTS 1.

Accounting Policies

1.1 Basis of accounting

The Financial Statements have been prepared under the historical cost convention (modified to present investments at

market value) and in accordance with applicable UK accounting standards, including the Statement of Recommended

Practice - Accounting and Reporting by Charities (the 2005 SORP).

No separate Statement of Financial Activities has been presented for the Company alone, as permitted by paragraph

397 of the 2005 SORP. The Company’s Balance Sheet on page 27 includes the assets and liabilities of the branches

detailed on page 4.

The Group Statement of Financial Activities on page 22 and the Group Balance Sheet on page 23 combine respectively

the results and the assets and liabilities of the Company (including its branches) with those of its subsidiary companies

detailed in note 2 after eliminating intra-group transactions.

The Company’s net incoming resources for the year were £1,340,000 (2012: £138,000).

1.2 Incoming resources and resources expended

The value of all incoming resources is recorded in the Statement of Financial Activities as soon as the company is

legally entitled to the income and the amount can be quantified with reasonable accuracy.

Expenditure is accounted for on an accruals basis. Costs in respect of operating leases are charged on a straight line

basis over the lease term.

1.3 Legacies

Property and investments received by way of legacies are included initially at the market value ruling on the date of

transfer. Legacies are recognised in the Statement of Financial Activities when there is adequate certainty and reliability

of receipt and their value can be accurately measured. This is based on all legacies over £5,000 notified by the year

end for which income was received by the end of February. Only material legacies received after this date, and up to the

date of signing of the Annual Report and Financial statements, are recognised in the Statement of Financial Activities.

The Mission to Seafarers maintains a legacy pipeline system which, in addition to accrued legacies, includes further

estimated legacies of which MtS is aware but which do not meet the above criteria and which, therefore have not been

included within these accounts. The estimated value of legacies in the pipeline is £878,000 (2012: £1,160,000).

1.4 Capital grants

Capital grants are credited to the Statement of Financial Activities as restricted funds incoming resources. A transfer

is made to unrestricted funds over the estimated useful lives of the assets to which they relate, matching

depreciation charged to the unrestricted funds.

Accounts 2013

| 29

1.5 Allocation of costs

Charitable expenditure comprises expenditure directly relating to the objects of The Mission to Seafarers. It

includes employment and associated costs of Chaplains including recruitment and training together with

advice to Mts and linked organisations worldwide. Services to seafarers such as the costs of educational material

and i nformation for seafarers together with the newspaper for seafarers “The Sea” are also included as direct

charitable expenditure.

Support costs (including secretarial and administrative support from MtS’s International Headquarters) not directly

attributable to the headings on the Statement of Financial Activities are allocated to Charitable Activities, Cost of

Generating Funds or Fundraising and Trading on the basis of head count at International Headquarters.

Governance costs comprise amounts related to constitutional and statutory requirements and include staff costs,

audit fees, professional fees and Trustees’ expenses.

1.6 Pension costs

The Mission to Seafarers makes contributions to defined benefit and defined contribution schemes. The defined

benefit schemes are multi-employer pension schemes and it is not possible to separately identify the assets and

liabilities of the schemes attributable to the MtS. In accordance with FRS 17 therefore, MtS has accounted for

contributions to the defined benefit schemes as if they were defined contribution schemes. Full details of the

pension schemes are given in note 9 (page 36).

1.7 Tangible fixed assets

Tangible fixed assets are stated in the Balance Sheet at cost less depreciation. Assets with a cost of less than

£1,000 are written off in the year of purchase.

Depreciation is provided on a straight line basis over the anticipated useful life of fixed assets as follows:

Motor vehicles - four to six years

Fixtures and equipment - between five and ten years

Short leasehold buildings - over the term of the lease

Computer equipment - three years

Vessel – Flying Angel - fifteen years

Where the Trustees consider that the expected useful life of freehold land and buildings is in excess of 50 years

and the carrying value in the Financial Statements is not more than the estimated recoverable amount, no

depreciation is charged and, in accordance with FRS11, the Trustees have carried out and will continue to carry out

annual reviews of impairment.

1.8 Investments

Investments are stated at mid-market value. Realised and unrealised gains and losses are shown in the Statement

of Financial Activities.

30 | Accounts 2013

Trustees’ Report

1.9 Stocks

Stocks are valued at the lower of cost and net realisable value.

1.10 Foreign currency translation

With the exception of investments, transactions in foreign currencies are recorded at the rate ruling at the date of the

transaction. Foreign investment transactions are recorded at an average rate. Monetary assets are shown in the

balance sheet at the rate ruling on the balance sheet date.

1.11 Funds

Restricted Funds represent capital grants received (noted above) together with donations for specific purposes.

Transfers to unrestricted funds represent the release for the year of these grants or donations.

2.

Subsidiary and connected undertakings

2.1 The Mission to Seafarers DMCCO (A Dubai Maritime City Company)

The shares are held in the Nominee names of The Mission to Seafarers Trust Corporation and FAME (see below).

This company provides services to seafarers and their families in Dubai and operates a vessel to enable Chaplains

and volunteers to visit seafarers on board their ships.

2012

2012

£’000

£’000

Voluntary Income

552

556

Investment Income

2

2

Total Incoming Resources 524

558

Charitable Expenditure

406

385

118

173

Net gain retained in Subsidiary

Accounts 2013

| 31

2.2 The Dunkirk War Memorial Trust Ltd

The Dunkirk War Memorial Trust Limited (DWMT) was set up as a charity to provide premises and facilities for the use

of seafarers within the port of Dunkirk, France. DWMT is effectively controlled by virtue of the Directors being Trustees

or senior employees of The Mission to Seafarers.

2013

2012

£’000

£’000

Voluntary Income

31

41

Activities for Generating Funds

15

15

Investment Income

Incoming Resources from Charitable Activities

Other Incoming Resources

Total Incoming Resources

1

4

111

108

1

2

159

170

1 -

Fundraising and Trading

Investment management costs

Charitable Activities

Governance Costs

Other Resources Expended

-

2

Total Resources Expended

221

205

Net outgoing resources

(62)

35

Net Unrealised Gains on investments

0

4

Foreign Exchange Losses

-

(4)

Net (Loss)/Gain retained in Subsidiary

(62)

(35)

1

2

214

194

5

7

2.3 Flying Angel Marketing Enterprises Ltd (FAME)

The Mission to Seafarers owns through nominees the whole of the issued share capital of FAME. One Trustee and one

past Trustee of MtS sit on the board of FAME but receive no remuneration for doing so.

FAME is a retailer and distributor of Christmas cards and novelties, and is party to any commercial agreement that is not

considered a charitable activity of MtS. Any taxable profit from trading is gifted to MtS.

2013

2012

£’000

£’000

19

16

Turnover

Cost of sales

- -

Gross profit

19

16

(3)

(7)

(16)

(9)

Administration

Donation to The Mission to Seafarers

Net gain retained in Subsidiary

32 | Accounts 2013

(19) -

(16) -

Trustees’ Report

2.4 The Flying Angel Belfast Ltd

The Flying Angel Belfast Ltd was set up to operate catering services in The Mission to Seafarer’s Belfast premises.

All the shares in this company are owned by MtS. Any taxable profit is gifted to MtS.

2013

2012

£’000

£’000

28

33

(16)

(18)

Gross profit 12

15

Turnover

Cost of sales

Administration

Donated to The Mission to Seafarers

(12)

(15)

- -

Net gain retained in Subsidiary

- -

2.5 The Mission to Seafarers Scotland Ltd

The Mission to Seafarers Scotland Ltd was set up as a company limited by guarantee and registered charity in Scotland

to raise funds and deliver services to seafarers and their families in Scotland. The Mission to Seafarers is the sole

member.

2013

2012

£’000

£’000

137

135

Voluntary Income

Activities for Generating Funds

6

12

Total Incoming Resources 143

147

Cost of Generating Funds

Fundraising and Trading

Charitable Activities

Governance Costs

1

5

21

9

127

114

8

7

4

3

Total Resources Expended

161

138

Net gain retained in Subsidiary

(18)

9

2.6 The Mission to Seafarers Trust Corporation Ltd (MTSTC)

MTSTC holds real property and investments as custodian Trustee on behalf of The Mission to Seafarers. It has no

transactions on its own account.

Other

Accounts 2013

| 33

Voluntary Income 2013

2012

£’000

3.

£’000

1,827

1,766

1,482

1,024

Total 3,309

2,790

General donations

Legacies

4.

Investment Income

2013

2012

£’000

£’000

Listed investments

557

666

Bank deposit interest

19

13

Rental income

10

21

Total 586

700

Income from listed and unlisted investments is shown gross, including tax reclaimable. Rental Income represents monies received from properties held as fixed assets that are not fully occupied for MtS’s own activities.

Other Income 2013

2012

£’000

5.

£’000

267

395

14

14

158

113

Surplus on disposal of properties

Surplus on disposal of other assets

Vote 4 – (note 9)

56

26

Total 495

548

Other

6.

Analysis of Expenditure

Ministry Communications Regions Fundraising Support Total 2013

Total 2012

£’000

£’000

1,292

1,288

99

108

Cost of Generating

Voluntary Income

£’000 -

£’000 £’000 -

62

Fundraising and Trading -

- 41

Investment Management

-

Charitable Activities

Governance

- 505 -

£’000 £’000

13

317 2,636 - 25

503

727

43 15 -

(14)

15

4,211

3,872

48

113

5,636

5,370

(27)

1 752

- 23

505

317 2,777

547 1,490

Staff Costs (note 8)

Grants (note 7)

Other

402 - 103

164

1,113

-

287

153 1,377

528

805

-

-

19 685

3,012

2,485

287

329

2,337

2,556

Total

505

317 2,777

547 1,490

5,636

5,370

Support costs not directly attributable to the headings on the Statement of Financial Activities are reallocated on the

basis of headcount at the Mission’s International Headquarters.

Audit fees included in governance costs for the group amount to £21,000 (2012: £28,000) and other fees paid to the auditors for non-audit services total £5,000 (2012: £12,000).

34 | Accounts 2013

Trustees’ Report

Ministry Grants 2013

2012

£’000

7.

£’000

-

20

Bahrain

15

13

Belem

11

17

Colombo

11

11

12

11

Australia

Great Yarmouth

8 -

Limassol

17

Mangalore

21

Oceania

2

2

Odessa

32

31

9

9

Busan

55

56

Rotterdam

10 -

Portbury

6

Rouen

4

4

2

Singapore

21

19

Suape

28

28

Tuticorin

22

19

Vlissingen

18

66

Total 287

329

Seaham

Grants are made to support ministry in areas around the world. These grants are subject to annual review.

8.

Staff Costs Charitable Raising Support Total

Activities Funds 2013

£’000

£’000 426

£’000

£’000

Total 2012 £’000

380 1,921

Wages and salaries

1,115

Social security costs

102

46

34

182

175

Other pension costs

221

26

28

275

195

Other staff costs

241

Total 1,679

Staff number

50

30 528

1,760

363 634

355

805 3,012

2,485

9 65

63

6

Other staff costs include recruitment, compensation for loss of office, training, welfare of overseas employees, temporary staff and travel-related costs. Redundancies have been provided for the strategic reorganisation detailed on page 7 at £160,000.

Employees with remuneration (excluding benefits in kind) in excess of £60,000:

£60,000 to £70,000 2 (2012: 2)

£70,000 to £80,000 1 (2012: 1)

Employer’s pension contributions for these employees are 7%. £14,000 (2012 : £12,000)

Accounts 2013

| 35

9. Pensions

9.1 Defined Benefit Schemes

The Mission to Seafarers participates in two of the Church of England Defined Benefits Schemes administered by the

Church of England Pensions Board. These are the Church of England Funded Pensions Scheme (CEFPS) for the

clergy and the Church of England Defined Benefits Scheme (CEDBS) for lay employees of Church of England

organisations. The assets of both schemes are held separately from those of MtS.

The Church of England Pensions Board has stated that it is unable to identify MtS’s share of the underlying assets and

liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other

entities participating in the schemes.

The Mission to Seafarers has treated these schemes as falling within the multi-employer disclosure provisions of

Financial Reporting Standard 17 which require the contributions to the schemes to be accounted for as for defined

contributions schemes and for the following additional disclosures to be made.

A valuation of the CEFPS was carried out as at 31 December 2012 and revealed a shortfall of assets of £293 million

with assets of £896m and a funding target of £1,189m.

All of MtS’s employed chaplains are currently funded by the Archbishop Council under Vote 4 provisions. Employers

contributions of £158,000 (2012: £113,000) paid by MtS to the CEFPS are included in staff costs (note 8). This amount

was reimbursed by the Archbishops Council and is included in other income (note 5).

For funding purposes the CEDBS is divided into sub-pools in respect of each participating employer as well as a further

sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including

those relating to mortality and post retirement investment returns.

A valuation of the CEDBS is carried out once every three years, the most recent being carried out as at 31 December

2010. In this valuation, the Life Risk Section was shown to be in deficit by £6.7m and some £5.5m was notionally

transferred from the employers’ sub pools to the Life Risk Pool. Of this, £183,000 was deducted from the MtS’s sub-

pool. This increased the employers’ contributions that would otherwise have been payable. Other available information

relating to the valuation as at 31 December 2010 is given below.

Total Scheme Members

Mission Members

Deferred pensioners

1,513

Active Members

1,134

10

During the year The Mission to Seafarers made contributions of £36,000 (2012: £33,000).

9.2 Defined Contribution Schemes

5

A scheme for staff was set up in 2008 with Scottish Life. Contributions to this scheme are funded 3% by the employee

and 7% by MtS. There are 20 (2012: 17) members of staff in this scheme at 31 December 2013. Contributions to this

scheme in 2013 were £58,000 (2012: £46,000).

The Mission to Seafarers contributes 7% to an additional money purchase scheme for one active member (2012:1)

which is administered by a pension provider selected by that member. MtS contributions for 2013 totalled £ 2,000

(2012: £2,000).

36 | Accounts 2013

Trustees’ Report

9.3 Other

Amounts paid in respect of unfunded pensions during the year were £6,000 (2012: £1,000).

10.

Transactions with Trustees

One Trustee received remuneration of £1,000 from The Mission to Seafarers during the current year in respect of

consultancy services (2012: None).

During the year expenses were reimbursed to 6 Trustees (2012: 8) for travel to attend meetings of and on behalf of the

MtS. The total amount reimbursed to Trustees in 2013 was £4,000 (2012: £4,000).

11.

Tangible Fixed Assets

Group

Property

Motor Vessel Fixtures and Vehicles Equipment

£’000

Total

£’000 £’000 £’000 £’000

Cost

1 January 2013

7,033

683

785

Additions

725

151

-

Disposals

(556)

(61)

-

Exchange Difference

-

(1)

(60)

1,045

9,546

30 906 - (617) (1)

(62)

1,074

9,773

31 December 2013

7,202

772

725

Depreciation

1 January 2013

Provided during the year

718 42

Disposals

-

-

Exchange Difference

439

326

906

2,389

125

50

44

261

(50) (4)

- (26)

- (50) (3)

(33)

947

2,567

31 December 2013

760

510

350

Net book value

31 December 2013

6,442

262

375

127

7,206

139

7,157

31 December 2012

6,315

244

459

Trustees’ Accounts Report 2013

| 37

The Company

Property Motor Fixtures and Vehicles Equipment

£’000 £’000

Total

£’000 £’000

Cost

1 January 2013

7,033

608

919

8,560

Additions

724

134

29 887

Disposals

(556)

(50)

- (606)

31 December 2013

7,201

692

948

8,841

Depreciation

1 January 2013

718

379

803

1,900

Provided during the year

42

109

31

182

Disposals

-

(50)

- (50)

31 December 2013

760

438

834

2,032

254

114

6,809

229

116

6,660

Net book value

31 December 2013

6,441

31 December 2012

Property

The properties held are split between categories as follows:

6,315

2013

2012

£’000

£’000

Freehold 5,219

5,089

Leasehold 1,222

1,226

TOTAL 6,441

6,315

Freehold and leasehold property represents the book value of staff houses, pensioners’ houses, and club and office

premises.

All assets are used by the charity for its charitable purposes.

38 | Accounts 2013

Trustees’ Report

12.

Investments 12.1 Listed investments

Group

2013 2012

Company

Group

Company

£’000 £’000

£’000

£’000

18,478

Market value 1 January

18,327

17,228 17,091

Additions

8,357 8,350

12,770 12,616

Disposals

(10,796) (10,787)

(11,812) (11,674)

1,992 1,994

Unrealised gain for the year

292 294

Market value 31 December

Listed Investments

18,031 17,884

18,478 18,327

Cash held by Investment Managers

3,034 3,028

1,494 1,489

21,065 20,912

19,972 19,816

14,916 14,765

Historical cost at 31 December

16,868 16,715

The Mission to Seafarers’ main investment advisors charge a management fee offset by the commission charge on

each transaction up to a maximum amount. The fees for 2013 were £40,000 (2012: £45,000). The commission charges

of £58,000 (2012: £75,000) are included in the additions and deducted from the proceeds of investment transactions.

The fees are offset against the commission. Fees totalling £13,000 (2012: £15,000) were paid to the other investment

advisors.

Significant investment holdings (over 5%) based on market value at 31 December 2013 were:

Ishares S&P 500SHS (GBP)

Ishares PLC FTSE 100 UCITS ETF (INC)

6%

Charity Property Income Units (GBP)

5%

Findlay Park American FD Dollar CL (USD)

5%

12%

Accounts 2013

| 39

12.2 Investments in Subsidiaries

The Company controls the following principal active subsidiaries, the results of which have been consolidated.

Net assets

Net incoming

as at

Nature of

control

resources

31 December

Business

2013

2013

£’000

£’000

118

1,127

Name of company

Country of % Holding/ incorporation

The Mission to Seafarers

DMCCO

UAE

practical welfare for

all seafarers

UK

100

The Dunkirk War Memorial

Trust Ltd

practical welfare for

all seafarers

UK

100

Provision of spiritual and

Flying Angel Marketing

1

Sales of

Enterprises Ltd

promotional goods

The Flying Angel Belfast Ltd

100

-

181

UK

100

(62)

Provision of spiritual and

-

- Sales of catering services

UK

The Mission to Seafarers

40

Provision of spiritual and

Scotland Ltd

practical welfare for

all seafarers

100

(18)

The Mission to Seafarers

-

Holds property as

Trust Corporation Ltd

Custodian Trustee on

behalf of MtS

40 | Accounts 2013

UK

100

and promotional goods

-

Trustees’ Report

13.

Debtors

Group

Company

2013 2012 2013

£’000

£’000

2012

£’000

£’000

Flying Angel Marketing Enterprises Ltd (FAME)

- - 36

26

The Flying Angel Belfast Ltd (FAB)

- - 10

10

-

81

-

81

373

480

258

380

561

304

497

Legacies

Other debtors

373

Amounts due from FAME include a £12,500 loan made to FAME at a market rate of interest that is not repayable in the

next two years.

The loan of £10,000 to FAB is secured and carries a market rate of interest and is repayable on demand.

A proportion of legacies receivable may be received after more than 1 year, but this figure cannot be determined with

any accuracy due to the inherent uncertainty in the timing of legacy income receipt.

14.

Current Liabilities Group Company

2013

£’000

2012

2013

£’000

£’000

2012 £’000

53

52

Trade Creditors

Social Security

45

52

45

48

Accruals

771

708

721

649

803

818

738

43

41

Total

869

Accounts 2013

| 41

15.

Restricted Funds

Opening

Closing

Balance

Income

£’000

£’000

7

Expenditure

Transfer

Balance

£’000

£’000

£’000

-

(7)

-

-

46

(36)

-

(10)

-

ITF Mangalore (Building Work)

ITF JNPT (Setting up costs)

Merchant Navy Welfare Board

(Vehicles for use in UK Ports)

116

44

-

(45)

115

Belfast (Property Costs)

501

9

(2)

(17)

491

Samaritan Fund (Helping Seafarers

affected by disasters)

-

46

(40)

-

6

Seafarers UK (Port costs)

-

141

(141)

-

-

London Diocesan House

6

-

-

-

6

Others

26

86

(92)

-

20

Total

702 290 (282) (72)

638

Restricted funds represent capital grants (note 1.4) received together with donations for specific purposes. Transfers to

unrestricted funds represent the release for the year of these grants or donations.

16.

Designated Funds

Opening

Closing

Balance

Income

£’000

£’000

Expenditure

Transfer

Balance

£’000

£’000

£’000

Fixed Assets

-

-

-

7,000

7,000

Branch and subsidiary reserves

-

-

-

6,000

6,000

Commitments to retired chaplains

-

-

-

1,000

1,000

Total

-

-

- 14,000

14,000

As part of the continuing review of reserves the Trustees decided to create Designated Reserves as indicated above.

The Fixed Asset reserves represents the cost value, net of depreciation, of the investment in fixed assets owned by The

Mission to Seafarers.

The Reserves of the branches and subsidiary companies are held for the purpose of delivering services in the relevant

geographical locations.

Any chaplain employed prior to 1983 with a minimum service of 30 years is entitled to be provided with housing for the

remainder of their life. There is potentially one more property to be purchased and on-going maintenance costs.

42 | Accounts 2013

Trustees’ Report

17.

Ecumenical Centres Financial details of organisations in which the charity is a joint Trustee and involved in the management are:

Proportion of controlling influence

Proportion of net assets on dissolution

Centres Humber Felixstowe for Seafarers 33.3%

33.3%

Port of Bristol

33.3%

Milford Haven

33.3%

33.3%

- property

33.3%

- 33.3% 33.3% 33.3%

- other

33.3%

-

33.3%

Last published accounts date

31 December

31 January

31 March

33.3%

-

31 March 31 December

2012 2013 2013 2013 2012

Net surplus/(deficit) in £’000s

(23)

7

19

(19)

(8)

Net assets in £’000s

671

227

631

131

325

Separate trust agreements exist between the Trustees to ensure that the properties cannot be disposed of without the

agreement of all parties concerned. The net assets above include the net book value of these properties.

Upon dissolution, the net assets of the Humber Seafarers’ Service can be transferred to an external body with

agreement by the members. This may be, but need not, one of the participating societies.

18.

Capital Commitments

At 31 December 2013 the Board had not contracted for any capital expenditure for the Group or Company.

19.

Financial Commitments

At 31 December 2013 the Group and Company had annual commitments under non-cancellable operating leases which expire as set out below:

Land &

Land &

Buildings Buildings

2013

2012

£’000

£’000

50

50

Over 5 years

20.

Contingent Liabilities

As explained in note 17, The Mission to Seafarers supports other ecumenical centres. Although these centres operate

independently of MtS, there would be certain obligations on MtS if any of them were to run into financial difficulty. The

Mission to Seafarers appoints one or more of their Trustees, normally a MtS Trustee or senior member of staff, to these

centres and, as far as they are aware, there are currently no material matters that would give rise to a liability.

Accounts 2013

| 43

NOTES

44 | Accounts 2013

Accounts 2013

| 45

The Mission to Seafarers St Michael Paternoster Royal College Hill, London EC4R 2RL Tel: +44 (0)20 7248 5202 Fax: +44 (0)20 7248 4761 Email: info@missiontoseafarers.org Website: www.missiontoseafarers.org Registered Charity no. 1123613

www.facebook.com/themissiontoseafarers @FlyingAngelNews www.justgiving.com/themissiontoseafarers