The Trustees present their annual report and financial statements for the year ended 29 February 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the the Trust's Memorandum & Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The Trust’s objects are:-
the preservation, conservation, management and maintenance of the land known as Shanklin Chine Historic Gorge (Shanklin Chine) in the Isle of Wight, England for the benefit of the public, being a Site of Important Nature Conservation (SINC).
the advancement of education of the public in all aspects of the history and importance of Shanklin Chine.
In order to achieve these objectives, the Trust maintains Shanklin Chine in good repair and makes it accessible and attractive for visitors. A tea garden, gift shop and dining inn are run through a subsidiary company to attract visitors and provide revenue for the Trust. There has been no change in these during the year.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the the Trust should undertake.
The accounting period was a difficult one for all seasonal businesses post covid tourism had changed the market and many families and visitors ventured abroad. The summer was exceptionally wet and followed one of the wettest winters on record. The wet winter caused substantial damage to the infrastructure with over thirty-five landslides recorded. This caused significant pressure on the business and delayed planned maintenance work to the Chine and increased budgeted costs for winter works.
The season also saw exceptionally high costs in terms of staffing with it becoming more and more difficult each year to recruit staff to cover operational hours, again paying over the minimum wage to retain staff. It became evident that people’s behaviour has changed. Spend per head decreases each year with the cost-of-living crisis clearly impacting on the general public and their willingness to spend with higher expectations.
Inflation was high with a down turning economy meant that many people pulled short breaks and summer holidays, which led to a downturn of visitors to the Isle of Wight.On a positive note, the chine saw a new demographic visiting with a significant increase in visitors from overseas discovering the Chine.
The Trust achieved admission fees of £579,539 (2023: £498,055) and received donations including Gift Aid of £82,274 (2023: £86,031). The largest expenditure is on staffing, which accounts for over 50% of expenditure. These and administrative costs were kept under review. The charity made a surplus of £61,714 (2023: £9,675).
The Trustees have assessed the major risks to which the the Trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The Chine is currently 4 years into a 5-year investment plan – albeit this has been impacted and slowed by Covid 19. The ethos of the five-year plan is around diversification and investment. For the Chine to remain a self-sufficient tourist attraction, it requires to attract a significant number of visitors (100K)+ during a short season. It has become apparent that visitors to attractions have greater expectations and with more attractions available it is important that the Chine can offer a USP. Not only has the Chine required significant work to bring it back to the landmark attraction it once was and ensure it remains safe to visitor’s, it has also benefitted from the start of improvements work, for example the building of the terrace lawn and the Jubilee Terrace. The plan is to continue the ongoing investment back into the business with a comprehensive work plan in place each winter to ensure the Chine can offer more and utilise the resources it has. Gift Aid provides support to this programme and ensures all monies claimed via Gift Aid can support the ongoing work within the Chine. During this period a new tearoom was opened with all new equipment, dinosaurs were placed in the Chine to attract younger visitors alongside giant eggs. New information boards were introduced following the impacts of climate change and the history of the Chine.
The Trust is a company limited by guarantee, constituted by means of a Memorandum & Articles of Association. This was updated and adopted in May 2017 to comply with the Charity Commission’s requirements, and registered as a charity on 7 July 2017.
The Trustees, who are also the Directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
Decisions on the operation of Shanklin Chine are made by the Trustees, who meet regularly. Day to day operations are delegated to the Operations Manager.
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of The Shanklin Chine Trust (the the Trust) for the year ended 29 February 2024.
As the Trustees of the the Trust (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the the Trust are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the the Trust’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the the Trust’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants for England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the the Trust as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Mrs Suzanne Wood FCA CTA TEP
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The Shanklin Chine Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 30-32 Gildredge Road, Eastbourne, East Sussex, BN21 4SH.
The financial statements have been prepared in accordance with the the Trust's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The the Trust is a Public Benefit Entity as defined by FRS 102.
The the Trust has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the the Trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the the Trust. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting end date, the the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The the Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the the Trust's balance sheet when the the Trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the the Trust’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the the Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the the Trust’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Admission fees
The Chine
The Chine
Repairs to the Chine
Rates
Bank and credit card charges
Insurance
Advertising
Cleaning and waste disposal
Light and heat
Postage, printing and stationery
Telephone
Motor and travel
Other interest
Sundries
Independent examination fees
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The Trust owns the land known as Shanklin Chine Historic Gorge in the Isle of Wight for the benefit of the public.
The the Trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the the Trust in an independently administered fund.
Endowment funds represent assets which must be held permanently by the the Trust. Income arising on the endowment funds can be used in accordance with the objects of the the Trust and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2023 - none).
Details of the the Trust's subsidiaries at 29 February 2024 are as follows: