The directors present their annual report and financial statements for the year ended 31 December 2025.

Until 31st March 2025, the principal activities of the company during the year were that of managing and operating the Chelmer and Blackwater Navigation. On this date, ownership of the company was transferred from The Inland Waterways Association to Essex Waterways Navigation Trust, a charity set up for the purpose. Also on this date, most of the charitable activities of this company were transferred to Essex Waterways Navigation Trust, with the non-charitable trading activities and other contractual obligations remaining with this company. All employees have remained with this company, with a relevant portion of costs invoiced to the Trust.

Review of the Business

The twentieth full year of trading by Essex Waterways Ltd maintained steady income levels from moorings, small craft licences, trip boats and other earnings. Directors firmly controlled expenditure in response to continuing increased costs and threats to income from high inflation and other adverse financial factors outside the Company’s control. The financial result for the year was a welcome surplus, all of which will be invested back in the Navigation, largely through the parent charity. Most moorings along the Navigation continued to be fully taken, with waiting lists at many locations. The numbers of canoeists, paddle-boarders, walkers, and other visitors has dipped very slightly from its highest level and continues to bring considerable pressures on the infrastructure of the Navigation, the natural environment, and traditional users of the waterway. The trip boats, operating under the Chelmer Cruises banner, had another good year, with the smaller vessels showing a satisfactory surplus, but trip boat Victoria struggling to show a profit owing to increased staff costs and compliance with onerous regulation set by the Maritime & Coastguard Agency, for which there is a much lighter touch for smaller passenger vessels, which are largely run by volunteers.

Acknowledgements

The trustees wish to express their thanks and gratitude to the many supporters of the Navigation, including employees and volunteers, whose hard work and acts of kindness have contributed to the wellbeing of the waterway and its surrounding community. The trustees wish to acknowledge the following grants, donations and contracts that have contributed to the maintenance of the Navigation:

Future Developments

Plans for 2026 include the continuation of the current trading activities. All activities will be reviewed to see whether there is further scope for transfer to the parent charity. Directors have carefully reviewed the impacts (a) further increased materials and utility costs, (b) rising employment costs, and their likely impacts in the short and medium term and have adjusted activity and staffing levels to take this into account. Whilst these factors have the potential to increase costs, reduce visitor spend and disrupt plans, mitigating actions are taken where possible and work plans and expenses adjusted accordingly. Plans are in motion to further improve the efficiency and profitability of all trading activities. The directors are fully confident that the company has sufficient reserves to address any likely shortfalls in income or additional expense in the short and medium term, and the directors have full confidence in the ongoing long-term viability of the company and expect to continue to make a surplus each year and to continue to contribute towards the upkeep and improvement of the Chelmer & Blackwater Navigation and its environs via the parent charity.

The directors of Essex Waterways Limited have carried out an assessment of the company’s going concern status, through documented review of the impact of scenarios which strain the company’s financial position and cashflow. The directors have concluded they are satisfied with Essex Waterways Limited’s ability to continue as a going concern.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Saffery LLP were appointed as auditor to the company and have expressed their willingness to remain in office.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors 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 company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

We have audited the financial statements of Essex Waterways Limited (the 'company') for the year ended 31 December 2025 which comprise the income statement, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors' report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the 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 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The income statement has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Essex Waterways Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Navigation Office Paper Mill Lock, North Hill, Little Baddow, Chelmsford, Essex, CM3 4BS.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. 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.

The directors have carried out an assessment of the company's going concern status, through documented review of the impact of scenarios which strain the company's financial position and cashflow. true

As a result, the directors consider that there are no material uncertainties about the company's ability to continue as a going concern.

Turnover comprises sales of goods or services provided to customers net of value added tax. Turnover is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, turnover is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

Where grants and other funding are received for the specific purposes of purchasing fixed assets, this income is accounted for under the accrual method and recognised in line with the period over which the assets are depreciated.

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 credited or charged to profit or loss.

Cash and cash equivalents are basic financial assets and 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.

The company 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 company's statement of financial position when the company 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.

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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 company 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.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

A distribution has been made to the parent charity. All profits are paid to the parent entity by way of a distribution under gift aid and a corresponding tax credit is recorded at the point of distribution, therefore there is no liability to corporation tax in either the current or prior financial year.

During the year, as part of the group restructuring, the company transferred fixed assets to its new parent charity; Essex Waterways Navigation Trust. The assets transferred had a net book value of £96,960, consisting primarily of plant and equipment on 1 April 2025.

The transfer was completed at book value, and carrying amounts of the assets at the date of transfer have been removed from the company's balance sheet accordingly.

Following the transfer, the company continues to utilise certain assets under arrangements agreed with the parent charity.

Essex Waterways Limited holds shares in the Chelmer and Blackwater Navigation Company Limited with cost brought forward of £900 (2024: £900). At the yearend, this investment has been fully provided for with net book value of £nil (2024: £nil).

The company operates a defined contribution pension scheme for all qualifying employees.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The company has taken advantage of the exemption under FRS 102 not to disclose transactions with its parent undertaking, Essex Waterways Navigation Trust, on the grounds that the company is a wholly owned subsidiary and its results are included in the consolidated financial statements of the parent undertaking.

During the year the company purchased goods totalling £10,387 (2024: £22,905) from Chandler Material Supplies Limited, a company controlled by family members related to a director. The balance due to Chandler Material Supplies Limited at 31 December 2025 was £1,221 (2024: £622).

Included in other creditors is a balance of £6,488 (2024: £6,488) due to The Company of Proprietors of the Chelmer & Blackwater Navigation Limited. This is a dormant company that has not traded for many years, that owns the freehold of the Navigation. Essex Waterways Limited manages the Navigation. Under the management agreement Essex Waterways Limited is liable to meet the Navigation Company's administration costs. A director of Essex Waterways is also a director of The Company of Proprietors of the Chelmer and Blackwater Navigation.

At 31 December 2025, the company’s immediate and ultimate controlling party is Essex Waterways Navigation Trust. The registered office and principle place of business is The Navigation Office, Paper Mill Lock, North Hill, Little Baddow, Chelmsford, CM3 4BS.

On 1 April 2025, ownership of the company was transferred from The Inland Waterways Association, a company limited by guarantee, to Essex Waterways Navigation Trust, and control passed to that entity.

The ultimate controlling party prepares consolidated financial statements, which are available at Companies House.