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Registered number: 02495472 MERSEY FERRIES LIMITED (A company limited by guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
MERSEY FERRIES LIMITED (A company limited by guarantee) COMPANY INFORMATION
Directors | R. J. Mcguckin
| K. J. Mclean
Company secretary | L.A. Outram
Registered number | 02495472
Registered office | 1 Mann Island
| Liverpool
| L3 1BP
Independent auditors | Langtons Professional Services Limited
| Chartered Accountants & Statutory Auditors
| The Plaza
| 100 Old Hall Street
| Liverpool
| L3 9QJ
MERSEY FERRIES LIMITED (A company limited by guarantee) CONTENTS
| Page
Strategic report | 1
Directors' report | 2 - 3
Independent auditors' report | 4 - 7
Statement of comprehensive income | 8
Statement of financial position | 9
Statement of changes in equity | 10
Notes to the financial statements | 11 - 22
MERSEY FERRIES LIMITED (A company limited by guarantee) STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2026 The directors submit their report for the year ended 31 March 2026.
Business review
The principal activity of the company is to provide water transport including carrying out statutory and other obligations in relation to the provision of cross river transport services. The Woodside Ferry Terminal has also remained closed during this period pending refurbishment works on the wider site, with works on the adjoining U-Boat Story started on site.
Results and performance
Whilst overseas travel continues a slow recovery, the local and national market remains buoyant and brought opportunities for Mersey Ferries. Financial performance during our main summer holiday period in 2025 was showing an increase in ticket sales, but was impacted by vessel availability. The age of both vessels remains an issue for the business being addressed in our long term approach. The year saw great progress made on the build of a new Mersey Ferry, which is expected to be entered into service in 2026/27. The summer cruise period in 2025 continued to see an increase in the number of cruises offered and continues to be an area of growth for the business.
Strategy
The company continues to implement the key interventions included in the long term strategy. Work on the the building of a new Mersey Ferry, the first in over 60 years, progressed with minor delays on programme and on budget for the financial year 2025/26. The vessel was floated off in November 2025 and was a really momentous occasion for the business and progress on bringing the new ferry into operation will continue into the next year. Our major intervention in Woodside, the renewal of the landing stage and link span bridge, was substantially completed in December 2025, but remains out of service pending wider regeneration plans for Woodside itself.
Risks and uncertainties
The risk to service moving forward continues to be the age and condition of the existing vessels, with a major intervention planned to ensure the service for years to come in terms of a new vessel. Work on the three terminals continues to ensure service is maintained, with the wider regeneration of the Woodside area continues to be an increasing risk as we move into the new financial year. Further concerns are emerging around planned works to the Pier Head and Seacombe Landing Stages which has the potential to impact service, but mitigation measures are in place should these risks materialise.
Key performance indicators
Management regularly monitor a range of key performance indicators aimed at patronage levels, ticket sales, income, expenditure, punctuality and service availability to ensure effective performance across Mersey Ferries. This report was approved by the board on 13 August 2026 and signed on its behalf.
R. J. Mcguckin Director
Page 1
MERSEY FERRIES LIMITED (A company limited by guarantee) DIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2026 The directors present their report and the financial statements for the year ended 31 March 2026.
Directors' responsibilities statement
The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ∙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 to 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.
Results and dividends
The profit for the year, after taxation, amounted to £NIL (2025 - £NIL). The Directors do not recommend payment of a dividend.
Directors
The directors who served during the year were:
R. J. Mcguckin
K. J. Mclean
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information. Page 2
MERSEY FERRIES LIMITED (A company limited by guarantee) DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026
Post balance sheet events
There have been no significant events affecting the Company since the year end.
Auditors
The auditors, Langtons Professional Services Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 13 August 2026 and signed on its behalf.
R. J. Mcguckin Director
Page 3
MERSEY FERRIES LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERSEY FERRIES LIMITED
Opinion
We have audited the financial statements of Mersey Ferries Limited (the 'Company') for the year ended 31 March 2026, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of 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 March 2026 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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. Page 4
MERSEY FERRIES LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERSEY FERRIES LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the 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.
Matters on which we are required to report by exception
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.
Responsibilities of directors
As explained more fully in the Directors' responsibilities statement set out on page 2, 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. Page 5
MERSEY FERRIES LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERSEY FERRIES LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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 Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The objectives of our audit, in respect to fraud, are: • to identify and assess the risks of material misstatement of the financial statements due to fraud; • to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and • to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Our approach was as follows: • We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR). • We understood how the Company is complying with those frameworks by making enquiries of management. Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up. • Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: enquiries of management; and journal entry testing, with a focus on journals indicating large or unusual transactions based on our understanding of the business. • We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error. Page 6
MERSEY FERRIES LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MERSEY FERRIES LIMITED (CONTINUED) A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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. Simon Whalley (Senior statutory auditor) for and on behalf of Langtons Professional Services Limited Chartered Accountants Statutory Auditors The Plaza 100 Old Hall Street Liverpool L3 9QJ 13 August 2026 Page 7
MERSEY FERRIES LIMITED (A company limited by guarantee) STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2026
| 2026 | 2025
Note | £ | £
Turnover | 4 | 4,293,178 | 3,919,234
Cost of sales |  | (4,053,840) | (3,686,231)
Gross profit |  | 239,338 | 233,003
Administrative expenses |  | (3,440,710) | (3,601,963)
Exceptional administrative expenses |  | 3,311,043 | 3,471,632
Other operating income | 5 | 1,462 | 5,616
Operating profit |  | 111,133 | 108,288
Interest payable and similar expenses | 8 | (98,394) | (108,288)
Profit before tax |  | 12,739 | -
Tax on profit | 9 | (12,739) | -
Profit for the financial year |  | - | -
There were no recognised gains and losses for 2026 or 2025 other than those included in the statement of comprehensive income.
There was no other comprehensive income for 2026 (2025:£NIL).
The notes on pages 11 to 22 form part of these financial statements.
Page 8
MERSEY FERRIES LIMITED (A company limited by guarantee) REGISTERED NUMBER: 02495472 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026
|  | 2026 |  | 2025
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 11 |  | 216,000 |  | 216,000
Investments | 12 |  | 2,242,943 |  | 2,242,943
|  |  | 2,458,943 |  | 2,458,943
Current assets |  |  |  |  |
Stocks | 13 | 28,863 |  | 24,544 |
Debtors: amounts falling due within one year | 14 | 817,343 |  | 1,175,997 |
Cash at bank and in hand | 15 | - |  | 30,824 |
|  | 846,206 |  | 1,231,365 |
Creditors: amounts falling due within one year | 16 | (2,180,678) |  | (2,359,162) |
Net current liabilities |  |  | (1,334,472) |  | (1,127,797)
Total assets less current liabilities |  |  | 1,124,471 |  | 1,331,146
Creditors: amounts falling due after more than one year | 17 |  | (1,540,688) |  | (1,766,214)
Provisions for liabilities |  |  |  |  |
Other provisions | 19 | (132,671) |  | (113,820) |
|  |  | (132,671) |  | (113,820)
Net liabilities |  |  | (548,888) |  | (548,888)
Capital and reserves |  |  |  |  |
Profit and loss account | 20 |  | (548,888) |  | (548,888)
|  |  | (548,888) |  | (548,888)
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 August 2026.
R. J. Mcguckin
Director
The notes on pages 11 to 22 form part of these financial statements. Page 9
MERSEY FERRIES LIMITED (A company limited by guarantee) STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2026
| Profit and loss account | Total equity
| £ | £
At 1 April 2024 | (548,888) | (548,888)
Other comprehensive income for the year | - | -
Total comprehensive income for the year | - | -
Total transactions with owners | - | -
At 1 April 2025 | (548,888) | (548,888)
Other comprehensive income for the year | - | -
Total comprehensive income for the year | - | -
Total transactions with owners | - | -
At 31 March 2026 | (548,888) | (548,888)
| The notes on pages 11 to 22 form part of these financial statements.
Page 10
MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
1. | General information
Mersey Ferries Limited is a private limited company, limited by guarantee, incorporated in England and Wales. Its registered office is 1 Mann Island, Liverpool, Merseyside, L3 1BP. The company number is 02495472. The principal activity of the company is to provide water transport including carrying out statutory and other obligations in relation to the provision of cross river services. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Going concern
It is confirmed that any furture trading losses of the core transport activity of the company will continue to be covered by a revenue support grant from its parent undertaking for the forseeable future, though this does not extend to the tourism - related activities of the company. Accordingly, the directors believe it is appropriate to prepare the financial statements on the going concern basis. Page 11
MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.3 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Company has transferred the significant risks and rewards of ownership to the buyer; ∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably.
| 2.4 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.5 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds. Page 12
MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.6 | Taxation
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
| 2.7 | Exceptional items
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
| 2.8 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Memorabilia | - | Not depreciated
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.9 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.10 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. Page 13
MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.11 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.12 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
| 2.13 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.14 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.15 | Financial instruments
The Company 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 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. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Page 14
MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.15 | Financial instruments (continued)
Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 profit or loss. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Page 15
MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.15 | Financial instruments (continued)
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
The directors have made judgements regarding the holiday pay and insurance claim provisions.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Ticket sales | 3,546,791 | 3,153,603
| Other miscellaneous income | (6,413) | 14,593
| Rent and service charges | 752,800 | 751,038
|  | 4,293,178 | 3,919,234
| All turnover arose within the United Kingdom.
5. | Other operating income
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Insurance claims receivable | 1,462 | 5,616
|  | 1,462 | 5,616
6. | Auditors' remuneration
| During the year, the Company obtained the following services from the Company's auditors:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the Company's financial statements | 11,915 | 11,565
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MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
7. | Employees
| Staff costs were as follows:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Wages and salaries | 2,847,019 | 2,661,611
| Social security costs | 362,538 | 258,778
| Cost of defined contribution scheme | 483,672 | 448,955
|  | 3,693,229 | 3,369,344
| All employees are employed by Merseytravel, staff costs relating to Mersey Ferries Limited are recharged to Mersey Ferries Limited by Merseytravel.
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2026 | 2025
|  |  | No. | No.
|  | Ferries operations | 46 | 45
|  | Retail and attractions | 20 | 18
|  | Administration | 8 | 8
|  |  | 74 | 71
8. | Interest payable and similar expenses
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Loans from group undertakings | 98,394 | 108,288
|  | 98,394 | 108,288
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MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
9. | Taxation
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Corporation tax |  |
| Adjustments in respect of previous periods | 12,739 | -
|  | 12,739 | -
| Total current tax | 12,739 | -
| Deferred tax |  |
| Total deferred tax | - | -
| Tax on profit | 12,739 | -
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2025 - the same as) the standard rate of corporation tax in the UK of 25% (2025 - 25%). The differences are explained below:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 12,739 | -
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2025 - 25%) | 2,420 | -
| Effects of: |  |
| Adjustments to tax charge in respect of prior periods | 10,319 | -
| Total tax charge for the year | 12,739 | -
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 18
MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
10. | Exceptional items
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Revenue support grant | 3,311,043 | 3,471,632
|  | 3,311,043 | 3,471,632
| The Revenue support grant provided by the Liverpool City Region Combined Authority (formerly the Merseyside Intergrated Transport Authority) is allocated by Merseytravel between various transport services as it sees fit. The Revenue support grant is only provided in respect of core transport activities and does not extend to the tourism related trade of the former Spaceport Ltd and U534 Ltd.
11. | Tangible fixed assets
|  | Memorabilia
|  | £
| Cost or valuation |
| At 1 April 2025 | 216,000
| At 31 March 2026 | 216,000
| Net book value |
| At 31 March 2026 | 216,000
| At 31 March 2025 | 216,000
12. | Fixed asset investments
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 April 2025 | 2,242,943
| At 31 March 2026 | 2,242,943
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MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
| Subsidiary undertaking
| The following was a subsidiary undertaking of the Company:
| Name | Class of shares | Holding
| The Beatles Story Limited | Ordinary | 100%
13. | Stocks
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Finished goods and goods for resale | 28,863 | 24,544
|  | 28,863 | 24,544
14. | Debtors
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Trade debtors | 124,043 | 168,267
| Prepayments and accrued income | 693,300 | 1,007,730
|  | 817,343 | 1,175,997
15. | Cash and cash equivalents
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Cash at bank and in hand | - | 30,824
|  | - | 30,824
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MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
16. | Creditors: Amounts falling due within one year
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Trade creditors | 140,847 | 62,903
| Amounts owed to group undertakings | 1,600,751 | 1,847,885
| Accruals and deferred income | 439,080 | 448,374
|  | 2,180,678 | 2,359,162
17. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Amounts owed to group undertakings | 1,540,688 | 1,766,214
|  | 1,540,688 | 1,766,214
| The loan from the parent undertaking has a 25 year term to 2032/33. It is repayable in annual instalments and interest is charged at commercial rates. £524,509 of the loan is not wholly repayable within 5 years.
18. | Financial instruments
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Financial assets |  |
| Financial assets measured at fair value through profit or loss | - | 30,824
| Financial assets measured at fair value through profit or loss comprise cash in transit cash at bank and in hand.
Page 21
MERSEY FERRIES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
19. | Provisions
|  | Holiday pay provision | Insurance claims provision | Total
|  | £ | £ | £
| At 1 April 2025 | 78,820 | 35,000 | 113,820
| Charged to profit or loss | (1,149) | 20,000 | 18,851
| At 31 March 2026 | 77,671 | 55,000 | 132,671
20. | Reserves
Profit & loss account Includes all current and prior period retained profits and losses.
21. | Company status
The company is a private company limited by guarantee and consequently does not have share capital.
22. | Pension commitments
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund.
23. | Related party transactions
| The company has taken advantage of the exemption under paragraph 33.1A of FRS 102 and has not disclosed transactions with other wholly owned group companies.
24. | Controlling party
The immediate and ultimate parent undertaking is Merseytravel. Copies of the accounts of Mereytravel may be obtained from 1 Mann Island, Liverpool, L3 IBP and are also available on the Merseytravel website.
Page 22