Chatham Historic Dockyard Trust ANNUAL REVIEW
2014 • 2015
HMS Cavalier (1944) The National Destroyer Memorial
CONTENTS Page 3 Chairman’s Introduction Page 4 An evolving 21st century charity Page 5 Our Core Charitable Objectives Page 6 Demonstrable contribution to the local area - real growth Page 7 How we achieve our objectives Page 8 Activities and programmes during 2014/15 Page 11 Our subsidiary trading companies Page 12 What have we achieved in 2014/15? Page 13 How are we doing? Page 16 Income & expenditure Page 17 Fundraising Page 18 Review of our finances Page 19 Governance Page 20 People matter Page 21 The future matters Page 22 Our operating results Page 23 Our development programme Page 24 Corporate information
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
CHAIRMAN’S INTRODUCTION The past year has once again demonstrated that The Historic Dockyard in Chatham is much more than the world’s most complete dockyard of the age of sail. The 400 residents who live within the Dockyard, and the 100 small and medium enterprises that carry out their business here, have now been joined by 600 students who will study in the Art and Business Departments of the University of Kent. The year also saw the Trust mark some significant maritime anniversaries. On 22 September 1914, three Chatham-
the start of the First World War with
to delight and inspire future generations
manned cruisers were sunk with the loss
a remarkable temporary exhibition “Valour,
through continuous development of our
of 1,459 lives, mainly from the Chatham
Loss and Sacrifice”, which told the story
iconic buildings, museum galleries and
Port Division. This was the first significant
of The Historic Dockyard and its workforce
ships, and our programmes of education.
naval loss of the Great War. Exactly 100
in supporting the Royal Navy during that
years later HRH The Duke of Kent, the
conflict.
First Sea Lord, and many relatives of those who died joined other distinguished guests
I am delighted to report good progress in
and visitors at The Historic Dockyard to
delivering our Command of the Oceans
commemorate the loss. A moving drum
project, the first phase of which was
head service was supported by sailors from
completed on 31 March 2015, on time and
HMS Kent and the band of Her Majesty’s
to budget, thanks to the excellent work
Royal Marines. The year also saw us mark
of the project team and to the financial
the 70th anniversary of the launch of HMS
support given by our partner, the Homes
Cavalier, the National Destroyer Memorial,
and Communities Agency, and by the
berthed here in the dock where HMS
Heritage Lottery Fund. Fundraising for this
Victory was launched 249 years earlier.
project has been extremely successful,
The event was a partnership with the
with a total of £9.1m raised, exceeding our
energetic HMS Cavalier Association, and
original target, thanks to the generosity
brought together veterans from around the
of many individuals and organisations.
world. We marked the 100th anniversary of
Without such support we would be unable
The Historic Dockyard is an example of maritime heritage without equal. Reports on Trip Advisor and social media tell us that we are continuing to meet the expectations of our visitors, this year numbering nearly 175,000. It is a remarkable and rapidly evolving community, where a dedicated team of Trustees, volunteers and staff work hard to maintain an appropriate balance in our activities and development. I am enormously grateful for their commitment and immensely proud of what they have achieved. Admiral Sir Ian Garnett KCB Chairman
“After 400 years of ship building for the Royal Navy, the dockyards at Chatham have certainly got a story to tell.” Trip Advisor
HRH Duke of Kent inspects Royal Navy standards at the ‘Loss of the Three Cruisers’ event.
3
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
AN EVOLVING 21ST CENTURY CHARITY Good governance and clarity of purpose lie behind all we do in meeting our obligations as stewards of the eighty acre Historic Dockyard site, and in educating the widest possible audience about the role of the site in British history over four hundred years. As a 21st century charity we aspire to meet best practice in all we do. We intend that our legacy will survive for generations to come. Our work is therefore an integral and significant part of what will be the history of this very special place.
No.1 Smithery, working in partnership with national museums.
Officers terrace residential properties
BBC’s Call the Midwife filming
Salute to the ‘40s event
4
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
OUR CORE CHARITABLE OBJECTIVES Our core objectives are:
To secure for the public benefit the preservation and use of The Historic Dockyard at Chatham in the county of Kent in a manner appropriate to its archaeological, historical and architectural significance. To promote and foster for the public benefit a wide knowledge and understanding of the archaeological, historical and architectural significance of The Historic Dockyard. In meeting our Learning objective, we utilise our collections, galleries and buildings to tell our stories in engaging and entertaining ways. As a fully Accredited Museum we collect, preserve, study and exhibit objects and materials connected with the history of:
• the role of Chatham Dockyard and its people; • the development of Royal Navy warship design and construction; and • the use of the river Medway by the Royal Navy and its support services, and their role in the development of Medway.
Educating the public
University of Kent students in the Royal Dockyard church
Engaging with the public
5
6
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
HOW WE ACHIEVE OUR OBJECTIVES Our long term strategy of preservation through re-use of the site and its buildings and the operation of museums, exhibitions and visitor attractions continues to evolve and develop to meet these equally important objectives.
“Beautifully well kept location steeped in maritime history. Loads to see and do for all ages, staff on site very pleasant and informative. A great day out.” Trip Advisor
2014/15 has been particularly significant,
Our museum and education services are
as we completed the first phase of our
being further developed with the invaluable
£9.1m Command of the Oceans project.
help of continued significant investment
This important project will, for the first time,
from supporters such as The Heritage
tell the story of how The Historic Dockyard
Lottery Fund, the Homes and Communities
and its people supported the Royal Navy in
Agency, many trusts and foundations and
maintaining command of the oceans during
individual supporters. In addition, our
the heyday of the age of sail. The project
re-use of buildings for residential, business
has already dramatically improved the
and higher education purposes continues
visitor experience on arrival. It has enabled
to flourish. Significant investment by The
us to preserve and interpret a number of
University of Kent, a long standing partner,
Scheduled Ancient Monuments that were
is providing exciting uses for some very
previously somewhat neglected. Although
important buildings that would otherwise
delayed a little by the past year end
be difficult to re-use. Working with the
administration of the principal contractor,
Trust and Historic England (formerly English
the project will be complete in late
Heritage), the University’s sensitive and
Spring 2016.
productive conversions are bringing the
The University of Kent at the old Fire Station
traditional role of dockyards as providers of high quality education back to the forefront of activity at The Historic Dockyard.
The University of Kent at The Clock Tower Building
7
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
THE CHIEF EXECUTIVE’S REPORT
ACTIVITIES AND PROGRAMMES DURING 2014/15 As ever, our activities are guided by the priorities set out in our Corporate Plan 2012/16. With 2016 fast approaching, work has started on development of a new plan to succeed it. The starting point, a review of success against the current plan, has been a rewarding process. The vast majority of priorities have already been met, sometimes in ways other than envisaged, but always with equal or better outcomes. The scale and volume of achievements is remarkable for a small organisation. The Historic Dockyard continues to move steadily towards its goal of financial sustainability, as the generous support from The Department for Culture Media and Sport (DCMS) reduces over time. That support does, however, remain a vital element of our income. It provides critical funding to allow us to meet our core objectives through investment in our visitor offer and income generating commercial property portfolio. More remains to be done, as we are still unable to meet the full costs of maintaining the site, with its one hundred buildings and structures (forty seven of which are Scheduled Ancient Monuments) and providing outstanding education and public benefits. The Board is in process of progressing further towards our goal of financial independence. The year saw some wonderful activities, programmes and events, as well as capital development:
Public Engagement Matters ■ We hosted a record number of visits
in the year. Visitor numbers totalled nearly 175,000, attracted by the diversity of our visitor experience, our varied programmes and our strong communications. ■ We hosted two remarkable
anniversary events, marking the seventieth year since the launch of HMS Cavalier and the 100th anniversary of the sinking of HMS ABOUKIR, HMS CRESSY and HMS HOGUE, with the loss of more than 1,400 men, mostly from Chatham. ■ We maintained our innovative
temporary exhibition programme, featuring “Valour Loss and Sacrifice”, illustrating the moving story of The Historic Dockyard’s role in the Great War, and “HMS Victory 250” telling the story of this great Chatham built ship.
Summer holiday STEM activities
■ We welcomed 16,000 school
children in organised groups to enjoy and learn from our exciting education programmes, which are retaining their popularity despite the uncertainties surrounding changes in the national curriculum. ■ We strengthened our Science,
Technology, Engineering and Maths (STEM) programmes and broadened them into the family market with a wonderful set of science shows across the summer holiday period.
Painting HM Submarine Ocelot’s sonar dome red for Comic Relief’s Red Nose Day
■ Our two major public fundraising
events, Easter’s “Steam and Transport” and autumn’s “Salute to the ‘40s”, were both successful, despite a rain dampened Easter. Record numbers attended the 1940s’ event and fundraising exceeded all expectations.
Julia Donaldson’s “A Squash and a Squeeze” temporary exhibition
Valour, Loss & Sacrifice temporary exhibition
8
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
THE CHIEF EXECUTIVE’S REPORT
ACTIVITIES AND PROGRAMMES DURING 2014/15 Continued Property Matters Through the investment (£3M) in the first
Examples of media coverage for The
phase of our Command of the Oceans
Historic Dockyard in the year include:
project a number of Scheduled Ancient Monuments have been conserved.
■
National press coverage for: The 250th Anniversary of the launch of HMS Victory at Chatham
In addition, significant archaeology has been exposed, recorded, analysed and
Hosting the regional BBC Children in Need programme.
interpreted as part of the new visitor arrival at the north of the site. Of particular significance is the delineation of the oldest monument on the site, the south
Excavation of Brunel’s Canal
mastpond, and the exposure, preservation and interpretation of the Marc Brunel canal that serviced the Brunel saw mill. We invested £154,000 in heritage and
Pudsey Bear from BBC Children in Need
infrastructure maintenance in the year, carefully prioritising spending according to analysis that are now in place. Despite increasing annual investment, our analysis of investment necessary to ensure the
Hosting the regional BBC Children in Need programme
long-term security of our buildings and structures. It is, however, encouraging that
Hosting the BBC South East Today Pre-election “Question Time”
the gap is narrowing as the strategy set down in our corporate plan is delivered.
have resulted in considerable re-investment in a number of our buildings to make them suitable for different courses, while the arts department remains located here.
Communication Matters Our corporate plan places great emphasis on communications as fundamental to our growing success. We have a carefully planned communications strategy and operating plan. Balancing limited resources,
Our tenant base remains stable and resilient.
we use a highly segmented approach to
Income generated has, therefore, been
communications.
robust. Our tenant community is an integral part of Historic Dockyard life, and helps to establish the character of the place.
Valour, Loss and Sacrifice: Chatham, The Royal Navy and the War at Sea (First World War commemorations)
The 250th Anniversary of the launch of HMS Victory at Chatham
shows that we are not achieving the level
our buildings. Changes to its own strategy
Significant regional coverage for:
The 100th anniversary of the loss of the three Royal Navy Cruisers (First World War commemorations)
the detailed maintenance plans and risk
The University of Kent continues to invest in
■
School holiday activities, special events and family learning programmes. ■ Specialist
Press
Special Events Archaeological finds The 250th Anniversary of the launch of HMS Victory at Chatham.
We have invested considerable time and resource in reviewing our overall communications strategy in preparation
Our income from use of the site for film
for the opportunities provided by the
location purposes achieved a record
opening of Command of the Oceans and
income of £214,000 for the year. Staff and
the consequent re-launch of The Historic
volunteers involved in managing this activity
Dockyard at Chatham in 2016. Our focus
have developed high levels of skill and
on digital platforms is increasing, with
understanding of the complex requirements
a clear strategy emerging for significant
of film location work. We also thank the
progress in this area. These will be carefully
other users of the estate for their support
integrated with our more traditional means
and their patience.
of communication.
9
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
THE CHIEF EXECUTIVE’S REPORT
ACTIVITIES AND PROGRAMMES DURING 2014/15 Continued Digital Progress A new digital communications strategy
important, our failures. As samples, locally
Advocates and recommendations are
has been developed, which includes a
we have worked with Bletchley Park and
the life blood of all successful visitor
new website with a “mobile first” approach
the Weald and Downland Open Air
attractions. We work hard to build
and on line ticket sales functionality.
Museum. Further afield a presentation to the
relationships through our Patron,
Association of Scottish Visitor Attractions
The Prince of Wales, our Vice Patrons
(ASVA) led to them bringing a study team to
and Dockyard Ambassadors, as
The Historic Dockyard Chatham.
well as through our visitors, tenants,
The “digital voice” of The Historic Dockyard Chatham is increasing, as evidenced by significant growth across social media platforms, particularly Twitter, Facebook and
Our reputation as a high quality museum
a Google tour of HM Submarine Ocelot.
and visitor attraction is also increasing. We
residents and business connections.
are proud to have maintained our Accredited Museum status and our benchmark against
Reputation Matters The Trust is very conscious of the value
others through participation in national and local benchmarking networks.
of a good reputation and the care needed
We have been awarded our third successive
to nurture and maintain that reputation.
Trip Advisor Certificate of Excellence, with
We firmly believe that our reputation for
92 per cent of responses at the level of
entrepreneurial management of heritage
‘good’ or ‘very good’. Our VAQAS (Visitor
assets is growing. We are increasingly
Attraction Quality Assurance Scheme)
asked to assist other organisations,
assessment was also very high this year,
nationally and internationally, which hope to
recognising our continuous investment in
learn both from our successes and, equally
visitor facilities.
The Loss of the Three Cruisers event, 22 September 2014
10
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
OUR SUBSIDIARY TRADING COMPANIES Our four wholly owned subsidiaries manage various trading activities. Funds generated are passed to the Trust as the parent charity to help further its core objectives. The subsidiaries are:
Master Ropemakers (Trading) Ltd
Commissioner’s House
Residential building
Master Ropemakers (Trading) Ltd.
Chatham Historic Dockyard (Trading) Ltd.
Historic Dockyard Property Ltd.(HDPL)
This company operates the historic ropewalk, producing rope for sale on
This trading company offers retail and
company. It owns the freehold of the
the commercial market. Its potential to
catering services to visitors. It also provides
residential estate and many of the 115
generate profits in a highly competitive
a business, wedding and hospitality venue
homes on that estate. The company
market is limited by its need to use
based in Commissioner’s House, which has
manages the estate, providing services
traditional methods and equipment. Its
been adapted for re-use for that purpose.
to the tenants in accordance with their
operation is also highly labour intensive
Built in 1704, Commissioner’s House is
leases, and in return for payment of a
compared with modern domestic and
Britain’s oldest intact Royal Naval building.
service charge.
Each unit of the company’s business
Some home owners are exercising their
The company is also required to provide an
is designed to operate profitably, so
right to enfranchise their properties,
important demonstration and educational
increasing the funds available to the Trust
meaning that they will purchase the
resource for visitors to The Historic
as its parent to further its core objectives.
freehold while remaining within the
overseas competition.
Dockyard. The intriguing rope making
HDPL is the Trust’s residential property
estate management regime.
process is recognised as one of The Historic Dockyard’s star features. It is
Historic Dockyard Property (2005) Ltd. (HDP 2005)
hugely popular with visitors and the media alike. In meeting this public interest, however, the company’s efficiency is further hampered by the need to operate at multiple set times during the day, and in a viewer friendly way. As a result the Trust offers a service charge to the company to recognise the hidden cost of supporting the Trust’s core education and preservation objectives.
“What was planned as a duty visit (something to do) turned out to be very enjoyable. There is no one absolute killer-app attraction but the friendliness of the staff and verve with which things are put across plus a certain eclectic quirkiness make it a great day out.” Trip Advisor
HDP(2005) holds the long leasehold of the Trust’s land to the north of the site, formerly known as the Interface Land. This land is bounded by development sites owned by Homes and Communities Association (HCA). The majority of the land has been improved through the Command of the Oceans project, in which HCA has invested £3m in return for the right to purchase a part of the land as a car park, the grant of rights of way and easements, and the benefit of public realm works.
11
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
WHAT HAVE WE ACHIEVED IN 2014/15? Building on the success of recent years, this year has seen further substantial progress and achievement.Visits to the site increased again to nearly 175,000, a record for The Historic Dockyard. Income from most sectors has grown steadily, allowing us to increase investment in our core objectives. Funding for Command of the Oceans
Our relationship with The University of
reached £9.1m, exceeding the original
Kent grows ever stronger. Leases have
target by £400,000. This will enable us
been agreed with the University to give it
to meet the highest aspirations of the
more space in the Sail and Colour Loft and
project. The first phase, encompassing
The Historic Dockyard Church. This has
the investment in Scheduled Ancient
reinforced the presence of the University
Monuments and public realm at the north
here, bringing more students to engage
of the site, was successfully completed
with and enjoy the place and adding a
on time and on budget. Initially good
welcome dynamic to The Historic Dockyard
progress on the next phases of the project
as a heritage site.
was interrupted after the year end by the Administration of the principal contractor. It is expected that all project outcomes will still be met with a potential three month delay in opening.
“The staff were most obliging and anxious to engage with the children to enhance their understanding of the various aspects of naval life.” Trip Advisor
We are managing to increase our investment in the maintenance of our Scheduled Ancient Monuments, ships and general environment. We are, however, still not generating enough to be self-sufficient.
Our people have coped brilliantly with the
This makes our on-going relationship with
additional demands of managing a major
DCMS, the Heritage Lottery Fund and many
capital programme. They have successfully
other funding organisations essential to
managed the range of temporary changes
our progress. Our plans to move yet closer
required to maintain standards during
to sustainability through the re-use of the
delivery of the scheme, and at the same
Fitted Rigging House and other buildings
time to press on with a range of other
will be the focus of future projects. Those
activities and programmes.
projects will lead to so much more than just
Visit Makers assisting visitors
preservation through re-use - they will lead A record year for visitor numbers at The Historic Dockyard Chatham
to a secure future for the whole heritage site.
12
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
HOW ARE WE DOING? IN MEETING OUR CHARITABLE AND SIGNIFICANT STRATEGIC OBJECTIVES As articulated in the Corporate Plan 2012-2016 Objective Education
Completed
Ongoing Activity
Not Achieved
Comment
The year saw a record number of visits at nearly 175,000 but we believe Command of the Oceans will boost this in the future. We have developed engaging Science Technology Engineering and Maths (STEM) programmes for schools and families based on former Historic Dockyard activities.
Preservation
Our investment in planned preventative maintenance continues to grow and the site and its buildings are better maintained. We do still have a funding gap that must be closed if standards are to be maintained in the future after capital projects are completed.
Reputation
The Trust’s reputation as a responsible steward of heritage and curator of objects and archives continues to grow. We are recognised regionally and nationally for our leadership role. We have achieved considerable press, broadcast and online media coverage which enhances our reputation
Achieving World Heritage Site Status
Following last year’s DCMS technical committee report, this is no longer being pursued.
IN MEETING OUR OPERATING OBJECTIVES Property
University of Kent leases utilise all remaining space available.
Bring the Sail and Colour Loft into full, productive use. Maintain a stable commercial tenant and rental base.
Very low rate of occupancy changes.
Utilise the wider site environment productively – film location use.
Most financially successful year ever.
Maintain the estate according to the priorities of the planned maintenance schedule.
The highest self generated investment ever, but still below the long term average required with a future funding gap still to be filled via our development plans.
13
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
HOW ARE WE DOING? IN MEETING OUR CHARITABLE AND SIGNIFICANT STRATEGIC OBJECTIVES As articulated in the Corporate Plan 2012-2016 Objective
Education Provide high quality formal education standards.
Achieved
Work in Progress
Not Achieved
Comment
School visit numbers maintained despite the adverse impact of National Curriculum changes.
Continue to grow visitor numbers and audiences.
Record visits recorded with the temporary exhibition programme continuing to drive volume and audience diversity.
Continue to improve interpretation and implement the museum reorganisation strategy.
Strong progress on delivery of the Command of the Oceans project.
Raise £8.75m for Command of the Oceans.
A further £400K raised for Command of the Oceans will enable design to exceed original interpretation objectives.
Raise programme funding for education and museum projects from corporate and charitable sources.
Excellent relationship development and management, together with a creative approach to programmes, has led to £280K raised in the year.
HM submarine Ocelot (1962) the last warship built at Chatham for the Royal Navy
14
180,000
Visitor Numbers
160,000 140,000
Visits
120,000 100,000 Other organised groups
80,00O 60,00O
School visits
Visitor Numbers 2006 - 2015
200,000 40,00O 180,000
Other organised groups
Events & corporate
School visits
Individual visits
20,00O
160,000
Visitor Income 2005 to 2014
140,000
1,2002005
2006
Visits
120,000
2007
2008
2009
2010*
2011
Year
100,000
2012
2007 60,00O
2008
2009
40,00O 800
2010*
2011
2012
2013
2014
* Note that 2010 includes 30,000 for Armed Forces Day
£000’s
20,00O
2007
2008
2009
2014
Individual Events & Corporatevisits
Year
600 2006
2013 Events & corporate
* Note that 2010 includes 30,000 for Armed Forces Day
Visitor Income 2005 to 2014
1000 80,00O
2010*
2011
2012
Year
2013
2014
VISITOR NUMBERS 2006 - 2015 Organised Groups Schools visits
The steady and sustained growth in total visits to the site has Individual been visits maintained.
2015
Groups income
* Note that 2010 includes 30,000 for Armed Forces Day
400 School income
Visitor Income 2006 - 2015 1,200
200
Groups income
Events income
School income
Individual Income
1000
800 £000’s
2005
2006
2007
2008
2009
2010
2011
2012
Year
600
2008
2009
2011
2010
2012
2014
2,000 2006
2007
2009
2010
2011
2012
2013
2014
Groupsin income Growth increase from visits of circa 80% has been faster Development Fund Rent than visitor numbers over the ten years but has plateaued Schools income pending the next boost expected when Command of the Individual Income Joiners Shop income Oceans opens.
2015
Filming
Year
1,500 £000’s
2008
2014
Events income
2013
Year
200
2013 Events income
Individual Income VISITOR INCOME 2006 - 2015
Property Income 2005-2014
2,500 400 2007
06
6
HOW ARE WE DOING?
200,000
6
Property Income 2005-2014 Utilities recharged
Property Income 2006-2015 2,500
1,000
Car Parking
Development Fund Rent Development Fund Rent
2,200
Joiners Shop Joiners Shop income
income
No.1 Smithery Rent
500 Filming
£000’s
-
Rental income
Filming
1,650
Utilities recharged
Total Income 2005-2014 1,100
6,000 2005
2006
2007
2008
2009
Utilities recharged
2010
2011
2012
550
Car Parking
2013
2014
PROPERTY INCOME 2006 - 2015 Parking No.1Car Smithery Rent
Year
5,000
Rental income
2006
4,000
2007
The trend increasing No.1 of Smithery Rent income from innovative use of the Other grants & donations property portfolio has continued.
Total Income20092005-2014 2008 2010
2011
2012
2013
2014
2015
Rental income
£000’s
Year
3,000 2007
2008
Total Income 2006-2015 2010 2011
2009
6,000
2012
2013
Renaissance / ACE Trading & investment income
2014
Year
Other grants & donations
Ropemaking
2,000 5,000 Other grants & donations Renaissance / ACE 4,000
Renaissance / ACE
1,000 £000’s
6
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
Visitor Numbers
Trading & investment income
Property income
Trading & investment income
3,000
Ropemaking
2005
2006
2,000
2007
2008
2009
2010
2012
Visitor income
Year
Total income generated has grown sustainably over the Property income ten year period. At more than £5m PA this is almost 40% Property income higher than 10 years ago.
2006
2007
2008
2008
2009
2009
2010
2010 Year
2011 Year
2011
2012
2012
Ropemaking
2013 TOTAL INCOME20142006 - 2015 Visitor income
2011
1,000
2007
Visitor income
2013
2014
2013
2015
2014
15
006
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
INCOME & EXPENDITURE Chatham Historic Dockyard Trust - Income 2014/15
INCOME 2014/2015
Property income is fundamental to the Trust’s efforts
Property Income 38%
to move to financial sustainability but the growing proportion of income generated from visitor operations
Visitor income 27%
and trading is an important part of the mix. Trading & investment income 18% Ropemaking 9% Other Grants & Donations 5% Renaissance/ACE 3%
Chatham Historic Dockyard Trust - Expenditure 2014/15 EXPENDITURE 2014/2015 Chatham Historic Dockyard Trust - Expenditure 2014/15
Preservation & Education 43%
43% of our expenditure is allocated to direct education
Ropemaking10% 10% Ropemaking
are limited to 12%.
Preservation & Education 43%
and preservation purposes. Our adminsitration costs
Marketing&&Events Events7%7% Marketing Tradingcosts costs17% 17% Trading Administration 12% Administration& &support support 12% Utilities Utilities7% 7% Insurances 4%
Insurances 4%
MAINTENANCE EXPENDITURE Total Maintenance Spend 2006 - 2015 Ship/Dock Maintenance
Total Maintenance Spend 2006 - 2015 800
Ship/Dock Maintenance
Exhibition Maintenance
Exhibition Maintenance
Tenants Maintenance
600
Tenants Maintenance
£000’s
Ground/Road Maintenance Ground/Road Maintenance 400 Building Improvements
Building Improvements
Reactive Maintenance
Reactive Maintenance
200
Planned Preventative Maintenance
Planned Preventative Maintenance
Salaries 2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
*Note that 2010 includes 30,000 for Armed Forces Day
Salaries
Year
2007
2008
2009
2010
2011 Year
2012
2013
2014
2015
*Note that 2010 includes 30,000 for Armed Forces Day
16
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
FUNDRAISING
Throughout 2014/15, fundraising has continued to focus on raising the necessary matched funding to support our Command of the Oceans project. We are pleased to report the fundraising campaign has now closed. We have been successful in raising more than £9.1m for this project, thanks to the generous support of a range of supporters including the Heritage Lottery Fund, the Homes and Communities Association and a range of Charitable Trusts, Foundations and other organisations, including: In 2014/15, we have also been fortunate enough to receive support for a range of other projects and programmes from a number of Charitable Trusts, Foundations and other organisations, including:
We thank all of these organisations
■ The Doris Pacey Foundation
■ Arts Council England
including those who have generously left
■ The Fidelity UK Foundation
■ BAE Systems (Rochester)
gifts in the form of a legacy. Their support
■ The Foyle Foundation
■ The Bedgebury Foundation
■ The Garfield Weston Foundation
■ The David Cock Foundation
■ The Headley Trust
■ Department for Culture, Media and
■ AIM/Biffa Award NHLPS ■ Arts Council England ■ DCMS/Wolfson Museum and
Galleries Improvement Fund
■ The Michael Uren Foundation
We thank all of those organisations for their interest and their generosity. We would also like to thank all the individuals and organisations not listed above for their invaluable support.
Sport (DCMS) ■ The Esmée Fairbairn Collections Fund
for their invaluable support. We would also like to thank all the individuals and organisations that have supported The Historic Dockyard through this period,
is hugely appreciated and makes a real difference to the valuable work we do. We would also like to thank in particular the Department for Culture, Media and Sport and Medway Council for their continued support.
■ H.R. Pratt Boorman Family Foundation ■ John Swire 1989 Charitable Trust ■ Marsh Christian Trust ■ The Sir John Fisher Foundation ■ Southern Water
Command of the Oceans
17
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
REVIEW OF OUR FINANCES FINANCIAL MANAGEMENT POLICIES
Management of the finances of the Trust
Reserves policy
Investment policy
remains the immediate responsibility of the
The policy of the Trust is to maintain a
The Trust’s policy has been reviewed
Chief Financial Officer, reporting directly
general reserve of at least £1.25m. At the
during the year. Although remaining risk
to the Chief Executive. A summary of
year end this actually stood at £1.34m.
averse, with most reserves invested in
the financial position of the Trust and its
Our designated reserve, that is used for
relatively liquid fixed interest bonds, a
subsidiaries is also presented for quarterly
investment in projects for the re-use of trust
review of our cash flow indicates that up
review and approval to the Finance and
buildings leading to a financial return, stood
to £250,000 can be invested in medium
General Purposes Committee of the Board
at £262,746. It has most recently been
term low risk investments. Action is
of Trustees, and thence to the Board itself.
drawn on to facilitate University of Kent
under way to secure appropriate cost
occupation of various buildings. Our total
effective opportunities through the use
We commissioned an audit exercise
general reserve including the designated
of appropriate advice.
during the year to satisfy the Trustees
reserve stood at £1.68m at the year end.
that our established policies were sound,
Grants and donations promised or received
especially in terms of procurement. Our
for the Command of the Oceans project,
external auditor found this to be the case.
but not yet used, amount to £2.95m.
Trustees have, however, asked that a part
These reserves are recorded separately in
time internal audit function be established,
our accounts as restricted reserves. They
in order that they can have the necessary
do not form part of the general reserve,
continuing reassurance that we remain
being detailed for specific application in the
rigorous in meeting these policies as
£9.1m Command of the Oceans project in
the Trust grows and develops.
the coming year.
“The hearts of oak exhibition also brought history to life and shows just how this attraction has moved into the 21st century.” Trip Advisor
18
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
GOVERNANCE
Our commitment to excellence in governance is undiminished. The eleven strong Board of Trustees, chaired by Admiral Sir Ian Garnett KCB, has been effective in applying the carefully chosen skills mix to ensure the strategic development of the Trust and proper supervision of implementation by the executive team.The knowledge, experience and professional skills of individual Trustees have been invaluable to the executive team throughout the year. In addition, the formation of a Trustee
There were no changes to the Board
supervisory committee to scrutinise the
of Trustees in this year. Admiral Sir
planning, management and delivery of
Trevor Soar KCB OBE DEng FCMI
the Command of the Oceans project has
has been identified as the successor
proved both effective and efficient. That
to Sir Ian Garnett as Chairman of the
committee reports to the Board of Trustees.
Trust, with an expected hand over
The Trustees have in this way been able
in Spring 2016.
“Wow, so much to see and do. One of the best visitor experiences I have had, The Historic Dockyard Chatham is a mixture of ‘museum’ and ‘living museum’ with a mixture of ‘period’ guided and static displays of buildings, warships and other maritime & historic vehicles and equipment. With displays and collections from every aspect of historical significance, there is something for everyone here from their vast collection of RNLI Lifeboats to the ‘living’ trades demonstrations to trains to Art.” Trip Advisor
to oversee the fulfilment of our twin core objectives and the investment of substantial third party and public funding.
“Absolutely fantastic place to visit and indeed get absorbed into history!! Excellently conceived and maintained, and worth every minute spent. The Dockyard is an education to people from around the world, especially from the Commonwealth countries, whose navies and dockyards have been modelled on the Royal Navy and Chatham.” Trip Advisor
19
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
PEOPLE MATTER MANAGEMENT, STAFF AND VOLUNTEERS
The Trust is committed to equality in the work place, and to investment in its staff through the provision of training, appropriate terms and conditions of employment and good workplace environments. We review our management and support structures regularly, benchmarking them against other organisations both within and outside our direct sector of activity. We take our duty of care to staff and
Our staff turnover remains remarkably low.
volunteers extremely seriously. The
One member of the senior team, Richard
Trust has policies in place for health and
Holdsworth MBE, Education and Preservation
safety, training, equal opportunities, and
Director, celebrated his 30th anniversary with
new media use. A comprehensive staff
the Trust during the year. His contribution has
handbook is issued to all new staff during
been, and continues to be, remarkable. His
induction, and is available through our
commitment and dedication is an inspiration
intranet. We have also introduced formal
to others in our management, staff and
data protection and anti fraud, bribery
volunteer teams.
and theft policies in the year.
Volunteers play a major part in the life of
We have active programmes for
The Historic Dockyard. There are 280 active
traineeship, work experience and
volunteers providing invaluable support to the
internships to ensure new entrants to the
Trust. In total they contribute around 37,000
workplace have the opportunity to gain
hours, equivalent to 23 full time staff across a
experience. In this way we encourage
range of disciplines and areas of interest. We
development through the organisation.
are extremely grateful to all our volunteers for
The diversity of activities undertaken by the Trust requires investment in expertise, which can be supported by external
their hard work and commitment, and for all they achieve for the enhancement and benefit of The Historic Dockyard.
advisors when necessary. The Trust has
Considerable grant funded investment has
expanded the number of knowledgeable
been dedicated to developing volunteer
and suitably experienced staff, recognising
and community engagement and training.
the need to invest in human resources as
Staff members are specifically allocated to
the scale of our operations and
managing this aspect of our work. There are
projects grow.
encouraging signs of growth in volunteer
This expansion is carefully balanced against actual need, financial resources and best practice.
Volunteer working with member of staff on the Invincible collection
numbers, diversity and interests to the benefit
“It was very interesting to see rope being made at The Ropery and good to get some of the children (and adults) involved. Great opportunity to see what life on a submarine would have been like. Lunch in the Commissioner’s House was good. Lovely to see the enthusiasm of the staff in all parts of the dockyard.” Trip Advisor
of the Trust and the individuals concerned. Our new Command of the Oceans project
Risks
is already increasing such opportunities.
Risk management is an essential
As a labour intensive visitor attraction,
element of good governance.
management of payroll is always a
The Trust’s systems of review
challenge. The Trust supports the
recognise this, with the Board
government’s desire to increase lower pay
of Trustees and the Executive
rates by the introduction of the “Living
involved at both strategic,
Wage” but this will introduce severe
management and operational
cost pressures that will require careful
levels. The Trustees undertake an
management as we endeavour to become
overall review of strategic risks at
financially self sufficient.
least twice in each year.
20
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
THE FUTURE MATTERS
The Hearts of Oak gallery – investment in interpretation for future generations
As an organisation committed to constant
We are planning carefully for the opening of
improvement and focus on our core objectives,
the project and the opportunity that it provides
we look to the future as much as the past.
to re-launch The Historic Dockyard Chatham.
The valuable investment in our Command of the Oceans project by so many supporters, large and small, is a clear example of how we plan and then implement projects that transform our offering.
The intention is to use this opportunity substantially to increase visitor numbers in a sustainable way and so to raise yet further the profile of The Historic Dockyard.
That investment has already done much to secure
We have a number of other grant funded projects;
the future of a number of Scheduled Ancient
and are developing activity programmes
Monuments. It has also created a public realm that
that will be the focus of attention over the
is “tomorrow’s heritage”.
coming years.
Our immediate focus for the future is to complete
With much of the Corporate Plan 2012-2016
this project, minimising the impact of the
achieved, we are already starting the formal
Administration of the principal contractor as far
process of developing its successor. This will build
as possible, especially in terms of quality, cost
on the success of the last thirty years and will
and programme.
focus on the promotion of our Core Objectives and our continuing aim of financial resilience through income from our buildings and activities.
21
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
OUR OPERATING RESULTS FINANCIAL SUMMARY Total 2015 £
Total 2014 £
Voluntary income
7,440,785
887,431
Activities for generating funds
1,609,507
1,604,684
21,475
17,105
3,457,741
3,315,266
347,250
912,751
12,876,758
6,737,237
53,105
48,397
1,370,009
1,519,067
14,200
14,687
7,498,247
4,446,860
62,666
61,574
347,250
0
Total resources expended
9,345,477
6,090,585
Net movement in funds
3,531,281
646,652
Funds as at 1st April 2014:
8,963,968
8,317,316
12,495,249
8,963,968
Restricted funds
9,250,764
5,866,958
Designated funds
1,810,868
1,651,080
Unrestricted funds
1,433,617
1,445,930
12,495,249
8,963,968
Incoming resources
Investment income Incoming resources from charitable activities Other incoming resources TOTAL incoming resources Resources expended Costs of generating voluntary income Fundraising trading: cost of goods sold Investment management costs Charitable activities Governance costs Others
Funds as at 31st March 2015:
“What a brilliant day out!!!!! We arrived at 11am and didn’t leave until closing time at 6pm. The staff were all so helpful and informative. Well worth the entrance fee, we worked out that we saw at least 10 attractions which worked out at £3 each. Great value for money.” Trip Advisor
22
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
OUR DEVELOPMENT PROGRAMME FINANCIAL SUMMARY
2015 £
2014 £
40,326
0
The Fidelity UK Foundation
174,000
0
Michael Uren Foundation
200,000
100,000
1,502,860
1,036,940
Arts Council England
142,511
269,738
Garfield Weston
250,000
0
4,533,835
68,015
663,047
19,335
7,506,579
1,494,028
62,830
62,830
3,635,467
274,561
35,586
49,321
Restricted Income Department for Culture, Media & Sport / Wolfson
Homes and Communities Agency
Heritage Lottery Fund * Others Restricted Income Expenditure No.1 Smithery Command of the Oceans Museum Relocation / Hearts of Oak Arts Council England
126,304
203,854
Others
262,586
171,953
4,122,773
762,519
0
(78,473)
Net movement in restricted funds
3,383,806
653,036
Restricted Funds as at 1st April 2014
5,866,958
5,213,922
Restricted Funds as at 31st March 2015
9,250,764
5,866,958
Total Expenditure Plus transfer between funds
* Please note £2,947,597 of this Heritage Lottery Fund income relates to Command of the Oceans and has not been received at 31st March 2015. This income has been accrued but no expenditure relating to this income was incurred in 2014/2015. The summarised accounts set out on pages 22 and 23 are taken from the Trustees’ Report and Financial Statements 31 March 2015 which received an unqualified auditor’s report. The Trustees’ Report and Financial Statements were approved and will be filed with the Charity Commission and the Registrar of Companies. These summarised accounts do not contain sufficient information for a full understanding of the financial affairs of the Charity. Full sets of the Trustees’ Report and Financial Statements are available from the Chatham Historic Dockyard Trust on request. Admiral Sir Ian Garnett KCB Chairman 16th November 2015 Auditor’s statement to the members of The Chatham Historic Dockyard Trust We have examined the summary financial statements set on pages 22 and 23. Respective responsibilities of trustees and auditors The trustees are responsible for preparing the summary financial statements. Our responsibility is to report to you our opinion on the consistency of the summary financial statement with the full annual accounts and trustees’ report, and its compliance with the relevant requirements of The Companies Act 2006 and the regulations made thereunder. We also read the other information contained in the summary financial statements and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the summary financial statement. Opinion We conducted our work in accordance with Bulletin 2008/3. The auditor’s statement on the summary financial statement’ issued by the Auditing Practices Board. In our opinion the summarised financial statements are consistent with the full financial statements for the year ended 31st March 2015.
Nexia Smith & Williamson
16th November 2015
Chartered Accountants & Registered Auditors
23
T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5
CORPORATE INFORMATION Patron His Royal Highness The Prince of Wales
Major Donors and Supporters 2014/2015
Vice Patrons
(in alphabetical order):
Admiral of the Fleet The Lord Boyce KG GCB OBE DL
Arts Council England
The Rt. Hon Sir Timothy Sainsbury Kt PC
BAE Systems
Rear Admiral Sir Donald Gosling KCVO RNR
The Bedgebury Foundation
Mr Alan Willett CVO CMG KStJ
The David Cock Foundation The Department for Culture, Media and Sport
The Board of Management
The Doris Pacey Charitable Trust
Chairman
The H.R. Pratt Boorman Family Foundation
Admiral Sir Ian Garnett KCB
Heritage Lottery Fund
Sir Ian Andrews CBE TD
HMS Cavalier Association
Councillor David Carr
HMS Decoy Association
Sir Robert Crawford CBE
John Swire 1989 Charitable Trust
Mr Murray Hallam
Marsh Christian Trust
Councillor Craig Mackinlay
Medway Council
Mrs Sandra Matthews-Marsh MBE
The Michael Uren Foundation
Ms Laura Nesfield
The Sir John Fisher Foundation
Mr Pommy Sarwal Mr John Spence OBE, DL Mr Maurice Storey CB
EsmĂŠe Fairbairn Collections Fund
The Trust would also like to acknowledge the valuable contribution made by other supporters and funders and the many individual benefactors who support us.
Additional Members of the Trust
The Chatham Historic Dockyard Trust is a registered
The Rt. Hon. the Secretary of State
Charity. Gifts and donations made by UK taxpayers
for Defence
Under Gift Aid increase the value of donations
The Rt. Hon. the Secretary of State for Culture, Media and Sport
made by 25% Registered in England and Wales No.1804108. Registered as a Charity No. 292101 Fully Accredited Museum.
The Executive Mr Bill Ferris OBE Chief Executive Mr Chris Knott Chief Financial Officer Mr Richard Holdsworth MBE Preservation and Education Director The Trust gratefully acknowledges the financial and other support during 2014-15 of its many stakeholders and funders, so essential to assisting it.
24
THE CHATHAM HISTORIC DOCKYARD TRUST The Sail and Colour Loft, The Historic Dockyard, Chatham, Kent ME4 4TE T 01634 823800
thedockyard.co.uk
CM