The directors present the strategic report for the year ended 31 October 2025.

Fair review of the business

Overview

The financial year ended 31 October 2025 saw stable operational performance with modest growth in turnover and improved overall surplus. Funds generated from membership subscriptions and club activities generated funds as expected from the budgeting process to cover our bank loan repayments and allowed modest investment in Club infrastructure projects.

The directors consider the club to be financially stable with a robust asset base and adequate resources to continue operating for the foreseeable future.

Financial performance

Overall turnover grew by 1.2% to £3,123,944. Subscription income, race entry fees and Haven income all increased, offset by reductions in bar and catering income and lower yard income due to the timing of cruiser haul-outs. This increase arose from increases in charges and was in response to expected cost increases.

The budgeting process each year identifies the level of profit generated from normal club activities and General Committee can then decide where those resources should be directed. During the year we monitor performance against the budget and can adjust those plans in light of events. As explained in the Golden Dolphin, this level of monitoring allowed us to respond to the cost increases arising from the October 2024 Government Budget by tightening control to maintain our cashflow whilst allowing completion of the Haven electrical pedestal project.

As a result the overall surplus shown in the accounts showed a small increase.

Cash flow and borrowing

Cashflow from operations fell slightly to £457,508, and is consistent with previous years and was regarded by the directors as a strong performance given the cost pressures.

This allowed the Club to meet its contracted bank loan repayments and make an additional £50,000 loan repayment. Funds were also expended to complete the Haven electric pedestal project and increase cash balances by £111,178.

At the year end, total bank borrowing stood at £1,270,038, compared with £1,510,155 at the previous year end. Bank balances stood at £336,881 compared with £225,703.

Subsequent to the year end we have offered debentures to Full Members and have currently raised just over £300k, which has been used reduce the building loan to about £800K. The reduced loan repayments will allow more flexibility in managing our cashflow and planning for the future.

Employees

Average headcount shown in the accounts as defined by accounting standards increased to 61 employees (2024: 55).

The figures reported in the accounts are based on just the number of employees each month, with no regard to the hours worked. We have deliberately increased the number of employees in bar and catering, but reduced their average hours as a response to the increased National Insurance. We have been monitoring the number of staff during the year and the number of salaried staff has reduced during the year. We have been monitoring the salaried and part time staff through a calculation of the full time equivalents, based on total hours worked. Whilst we do not yet have a full year’s data, the number of FTE part time staff has not increased during the period and stood at just over 5 during the winter months, whilst the number of FTE salaried staff stands at 23.

Total staff cost: £1,164,505, increased from £1,109,916 with wages increasing by just under 4% and the balance of the increase due to higher National Insurance costs.

Debt and interest rate risk

Borrowings secured against club assets expose the company to interest rate fluctuations and refinancing risk.

Mitigation

• Monitoring cash generation to ensure scheduled repayments are met

• Maintaining operating cash flows

Infrastructure and asset risk

The club’s operations rely on extensive physical infrastructure including buildings, pontoons and marine assets.

Mitigation

• Planned maintenance

• Asset monitoring

• Insurance protection

• Capital planning

Health and safety risk

Marine and operational activities involve inherent hazards.

Mitigation

• Training

• Procedures and supervision

• Compliance with maritime safety standards

Membership and utilisation risk

Long-term sustainability depends on maintaining membership levels and facility use.

Mitigation

• Sailing programmes

• Youth engagement

• Social and training activities

• Member experience initiatives

Cost inflation risk

Energy, staffing and supplier costs may impact future surpluses.

Mitigation

• Budget control

• Procurement review

• Efficiency initiatives

Regulatory and compliance risk

Operations are subject to company law, employment law, licensing and maritime regulations.

Mitigation

• Professional advice

• Governance oversight

• Internal controls

The directors approve a detailed annual budget and monitor performance against this budget. In addition they monitor performance on a weekly basis for bar, catering and yard income.

Key monthly KPIs are :

• Membership numbers and type

• Performance of each club activity

• Cash generation

• Capital and project expenditure

• Cash balances

Future outlook

The directors anticipate continued financial stability driven by robust income sources and declining debt levels. Strategic priorities include:

• Infrastructure stewardship

• Membership engagement

• Cost discipline

• Maintaining liquidity resilience

The club remains committed to delivering value to members while safeguarding long-term sustainability.

This Strategic Report was approved by the Board of Directors and signed on its behalf.

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

The principal activity of the company continued to be that of the running of a yacht club.

The results for the year are set out on page 9.

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

The auditor, Harrisons, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 medium-sized companies exemption.

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 surplus or deficit 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.

We have audited the financial statements of Parkstone Yacht Club Limited (the 'company') for the year ended 31 October 2025 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows 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 October 2025 and of its surplus 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have 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 strategic report or 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related party disclosures made by the directors.

• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 and expenditure account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Parkstone Yacht Club Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Pearce Avenue, Parkstone, Poole, Dorset, BH14 8EH.

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.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

Turnover represents the total amount receivable by the company for goods supplied and services provided, excluding VAT and trade discounts.

Members' subscriptions represent income in respect of the calendar year.

Berthing fees are allocated evenly across the berthing year from 1 April to 31 March. Where berths are let on a long term licence the initial licence fee is allocated evenly across the period of the licence.

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 surplus or deficit.

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in surplus or deficit, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through surplus and deficit, are assessed for indicators of impairment at each reporting end 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 surplus or deficit.

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 surplus or deficit.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in surplus or deficit in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax is recognised on taxable profit for the current and, where not previously recognised, past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

In the application of the company’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.

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

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The club operates for the mutual benefit of its members and as such there is no liability to corporation tax on the operating results for the year.

The bank loans are secured via a fixed and floating charge over all of the property and undertakings of the company.

The clubhouse bank loan is repayable by monthly instalments comprising capital and interest of £21,129 from July 2018 to June 2027 when the loan is to be cleared in full. Interest is charged at base rate plus 1.93%.

The committee boat bank loan is repayable by monthly instalments comprising capital and interest of £2,299 from May 2023 to April 2033 when the loan is to be cleared in full. Interest is charged at base rate plus 2.65%.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

This discloses the total amounts payable over the period of the Crown Estates lease which expires in 2119.

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:

Information about related party transactions and outstanding balances is outlined below:

During the year allowances were paid to C Moncur, as Honorary Sailing Secretary, of £3,000 (2024: £2,000). An allowance of £1,000 was also paid to S M Tyler in the prior year.

S M Tyler holds a beneficial interest in Locators Limited, who were paid £2,857 (2024: £14,888) during the year for yard equipment maintenance.

H J Brewer is a director of Halix Limited, who were paid a total of £5,455 during the previous year for expenditure covering youth week, entertainment, repairs and fixed assets. Expenditure to Halix Limited continued in the current year after H J Brewer resigned as a director.