The directors present their annual report and financial statements for the year ended 31 December 2024.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's memorandum and articles, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)” (as amended for accounting periods commencing from 1 January 2019)
The charity's objects are to establish, maintain, preserve and manage marinas, sea havens and berthing facilities in the Orkney Isles for the benefit of the public.
The charity's main activity is the provision of safe berths for local and visiting boats.
Visitor numbers dropped back slightly during 2024 to approximately 780 from 812 in 2023 possibly due to recording local visitors in a different way. There is however, always a change in the length of stays and coupled with the 5% increase in charges, the net result was a slight decrease in revenue for the season to £106,006.62 from £108,739 in 2023.
Thora Allan who took over as Project Manager from Leesa Guthrie, sadly left the company after only 3 months in the post. Admin was supported initially by Leesa Guthrie and her business partner Ailsa Heal but this arrangement ceased on the 31 May. Charlotte Wallhead joined us for the season as office manager with support from Brian Kynoch (Chairman).
Board meetings, where possible, are held in person with continued use of zoom when required. These regular meetings continued to focus on safety, finances, possible expansion plans, Association constitutions, maintenance and a strong marketing presence. The Company’s investments have recovered during 2024 and some volatile holdings were sold off at a small loss. Banking remains with Santander meantime but the Flagstone Investment Platform account is now being used to spread our deposits.
All marinas remain at full capacity for local users with longer waiting lists for applicants in all 3 sites. Future expansion proposals for Stromness are now at an advanced stage and funding options are being looked at with our landlord, Orkney Islands Council. Kirkwall expansion plans will have to be revisited due to delays with the Council's Ports Masterplan. As a result, enhanced shore-side facilities in Kirkwall have been delayed but the new Westray Sailing Club building in Pierowall, will provide much needed new toilets and showers for visiting crews. Total number of berths remain the same with 95 in Kirkwall, 72 in Stromness and 17 in Westray.
Orkney Marinas Ltd looks forward to another busy season ahead particularly with Orkney hosting the 20th International Island Games.
The outlook for the 2025 is optimistic despite world events.
The results for the year for the charity are set out in the Statement of Financial Activities.
The main income is received from local and visitor berthing fees and membership subscriptions.
Contribution-in-kind from committee members and directors continues at around 1,300 unpaid hours per annum.
It is the policy of the charity to set aside cash funds not required for day to day operational purposes to cover anticipated future costs of maintaining the pontoon berths and improving the fabric of the marinas.
Maintenance expenditure varies from year to year according to the requirements of the maintenance plan and in some years this may result in a net outflow of funds. The charity therefore maintains a fund designated specifically for maintenance expenditure, which is funded with net inflows of resources from the charity’s normal activities. This fund contributes to the payment of maintenance costs in years when maintenance expenditure is higher than average. The contribution to the maintenance fund during 2024 was a net inflow of £33,353.
At 31 December 2024 the value of the designated fund stood at £265,959 (2023 - £232,606).
The directors who served during the year and up to the date of signature of the financial statements were:
The board currently comprises of nine directors, representing the three members (the Associations) of the company. All directors stand down every year at the AGM of their relevant member association. Director nominations are made at the relevant AGM, and three new directors are elected, although recently stood down directors may stand for re-election. Throughout the year the member Associations can appoint replacement directors to serve on the board if vacancies arise.
All new directors receive a formal induction, including being provided with relevant documents such as the company's memorandum and articles and the most recent financial statements. An explanation is also provided of the obligations of the directors and the company's administrative procedures and future plans and objectives.
None of the directors has any beneficial interest in the company. All of the directors are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees' report was approved by the Board of Directors.
I report on the financial statements of the charity for the year ended 31 December 2024, which are set out on pages 4 to 17.
The directors are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The directors consider that the audit requirement of Regulation 10(1) (a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under section 44(1) (c) of the Act and to state whether particular matters have come to my attention.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
Orkney Marinas Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Dunkirk, Shore Street, Kirkwall, Orkney, KW15 1LG.
The accounts have been prepared in accordance with the charity's memorandum and articles, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)” (as amended for accounting periods commencing from 1 January 2019)
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the directors 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 directors in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the directors for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts.
The value of services provided by volunteers has not been included in these accounts.
Grants, including grants for the acquisition of fixed assets, are recognised as income in the year in which they are receivable.
Membership subscriptions are recognised in the period in which they are receivable.
Incoming resources from the sale of goods and services are included when receivable.
Expenditure is recognised on an accruals basis when there is a legal or constructive obligation to transfer economic benefits. The company is registered for VAT, accordingly expenditure is shown net of recoverable VAT.
Costs of generating funds comprise the costs associated with attracting voluntary income and fundraising.
Expenditure relating to charitable activities comprises costs incurred directly in the delivery of the charity's activities and services for its beneficiaries.
Governance costs include costs associated with meeting the constitutional and statutory obligations of the charity.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets comprise lease establishment costs and computer software costs. Such assets are defined as having finite useful lives and the costs are amortised on a straight line basis over their estimated useful lives of between three and ten years. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.
Amortisation 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:
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.
At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible 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).
Stocks of fuel are stated at the lower of cost and estimated selling price
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 charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity 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.
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
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 charity’s contractual obligations expire or are discharged or cancelled.
The charity is not liable to pay corporation tax on income pertaining to its charitable activities, accordingly no provision is made for corporation tax in these accounts.
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 charity 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 charity’s accounting policies, the directors 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.
Other trading activities
Raising funds
The charity donated £10,000 to Westray Sailing Club to enable the Club to develop local facilities, from which the charity's beneficiaries will also benefit.
The amortisation of intangible assets is included within expenditure on charitable activities.
None of the directors (or any persons connected with them) received any remuneration or benefits from the charity during the year. One trustee was reimbursed a total of £1,111 for personal travel expenses incurred in the course of their duties.
The average monthly number of employees during the year was:
A sum of £33,353 (2023 - £42,732) was transferred from unrestricted funds to the designated maintenance & fabric fund.
Deferred income is included in the financial statements as follows:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered 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.
The directors have set aside a fund for the future maintenance and upkeep of the marina berths.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases.
The charity leases the Kirkwall and Stromness marinas from Orkney Islands Council under two leases of between 47 and 50 years' duration, expiring on dates in 2053 and 2054. Both leases include a provision for periodic upward rent reviews according to prevailing market conditions.
There were no disclosable related party transactions during the year (2023 - none).