Mts 2013 annual report v4 final colour 17 sept 14

The Mission to SeafarersTrustees’ Annual Report and AccountsFor the year ended 31 December 2013

Company number: 6220240Charity number: 1123613

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Trustees’ ReportPatronHer Majesty The Queen

TrusteesRobert B Woods CBE (Chairman) (*G)Vice Admiral Sir Tom Blackburn KCVO CB (*G,*I)The Revd Canon Christopher Burke (*A)

David Cockroft

The Rt Revd Richard M C Frith (*G)Christopher Horrocks CBE (*A) Frances Lloyd

Stephen Lyon (*R)David Moorhouse CBE (*I)Neale Rodrigues MM (*R) Simon P Sherrard (*A)

ExecutiveSecretary General The Revd Andrew Wright (From 25 February 2013) (*G)

Acting Secretary General (18 April 2012 to 25 February 2013) and Executive Director Martin Sandford (*I)

ResignationsCaptain John W Hughes (Vice Chairman) – 31 December 2013 (*R)

Committees – external members and key

*G. Governance and Nominations Committee

*R. Remuneration Committee

Su Morgan (External)

*I. Investment Committee

Howell Harris-Hughes CBE (External) – Retired 29 November 2013

*A. Audit and Risk Committee

Christine Freshwater (External) – from 23 April 2013 Timothy Quin (External) - Retired 5 April 2013

President of The Mission to Seafarers HRH The Princess Royal


Trustees’ ReportThe Trustees present their report with the financial statements for The Mission to Seafarers (“MtS”) registered in England and Wales for the year ended 31 December 2013.

Charitable object: The object of The Mission to Seafarers, as stated in the Articles of Association, and for which we are established for the public benefit, is:

“To promote the spiritual, moral and physical wellbeing of seafarers and their families worldwide”Our global vision:As a Christian network of co-operating maritime welfare charities working in 71 countries, we have a presence in more than 260 ports and strive to improve and safeguard the wellbeing of the world’s 1.5 million seafarers of all ranks, nationalities and beliefs.

Our global mission:We aim to provide effective welfare services and pastoral care, to seafarers in need, focusing on ship-visiting, advocacy, communications and seafarers’ centres, in ports where their needs are greatest.

The Five Marks of Mission: The mission statement of the Anglican Communion was adopted by The Mission to Seafarers’ World Consultative Forum (2011) to guide the welfare work that we do:

u To proclaim the Good News: for us, this means showing God’s love in practical ways

u To teach and nurture believers: for us, this means helping seafarers to discover God

u To respond to human need: for us, this means caring for any seafarer in distress

u To challenge violence and injustice and to work for peace: for us, this means protecting crews’ rights and resolving issues

u To strive to maintain the integrity of creation: for us, this means helping to look after the world in which we live

Our core values are:u We behave with compassionu We act with integrityu We treat everyone with respectu We believe in justice for allu We value the resources we have been given

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Activities To achieve our mission, MtS provides outreach welfare services to seafarers and their families in around 50 ports in the UK, Europe, Asia, Africa, The Middle East, The Far East and South America, through directly salaried, or grant-funded port-based chaplaincy teams; and gives support and advice to a further 210 ports through independently run Mission to Seafarers’ sister charities and organisations across the rest of the world as part of our global Mission family.

We employ a total of 44 professional maritime welfare chaplains, 26 of those directly on salaries and we support a further 18 posts through grant-funded contracts. We are established in 121 international seafarers’ centres around the world. We provide a lifeline to merchant seafarers, night and day, 365 days a year.

The Mission to Seafarers’ International Headquarters in London UK sends out information, conducts research, provides fundraising and marketing services, along with reputation and brand support, and manages publications and digital media, including websites, for The Mission to Seafarers’ global family. The Secretary General – amongst other duties – provides the spiritual leadership for the Ministry teams which support seafarers in need around the world.

We are entirely funded by voluntary donations and rely on the deep generosity of our loyal supporters.


Founded in the UK in 1856, we are proud of our culture and heritage of dedicated service to seafarers, and estimate the following outputs annually:

902,000visits to seafarers’

centres

280,000transport runs

from ship to shore

60,000visits to ships

2,800 justice cases

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Public benefitThe Mission to Seafarers’ Trustees confirm that the activities of the charity are carried out, in line with its charitable object and objectives, for the benefit of the public. They further confirm that the impact of our work on beneficiaries is a key criterion when deciding what activities to undertake and how best to achieve our mission.

The Mission to Seafarers’ Trustees therefore confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity.

Organisational structureMtS is a charity, constituted as a company limited by guarantee and not having share capital. MtS is governed by a board of Trustees which forms the Board of Directors, as constituted by MtS’s Articles of Association. Members of the Board are both Trustees of the charity and Directors of the company.

Subsidiary companiesThe Mission to Seafarers’ consolidated figures also include the following companies, which are wholly controlled by MtS in England and Wales, and are classified as subsidiaries:

u The Mission to Seafarers DMCCO, registered in Dubaiu The Dunkirk War Memorial Trust Ltdu The Flying Angel Belfast Ltdu The Mission to Seafarers Scotland Ltdu The Mission to Seafarers Trust Corporation Ltd

The Flying Angel Marketing Enterprises Ltd carries out the marketing, distribution, and sale of donated goods and receives revenue from Christmas card sales and other merchandise; and is a party to any commercial agreement that is not considered a charitable activity of MtS. Branches12 MtS operations, both within the United Kingdom and including Aqaba (Jordan) and Mombasa (Kenya), are known as ‘branches’ and come under MtS direct control. These are wholly funded by us and report their income and expenditure directly to us. These branches are listed below and their results are included in the financial statements set out on pages 19 to 43 of this report.

Table of Branches

Aqaba, Jordan Belfast, UK Cardiff, UK

Falmouth, UK Fowey, UK Newport, UK

Mombasa, Kenya Port Talbot, UK Tees North (Hartlepool), UK

Tees South (Middlesbrough), UK Tyne & Wear (South Shields) UK UK Welsh Council, UK


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Grant-funding and paid chaplaincyAs well as our ‘branches’ we also have paid full-time and grant-funded chaplains in the following areas, with ‘memoranda of understanding’ in place at 31 key locations:

Independent Mission to Seafarers’ charities in Australia, Canada, South Africa, USA, and the rest of the worldWe are proud to work with our sister MtS charities across the world in a further 15 countries, which engage with us to provide a dynamic and responsive welfare service for seafarers with significant service capability. While these are independent charities in their own right, they co-operate with MtS on matters of welfare provision and communications. They are responsible for their own financial affairs and statements.

Honorary chaplainsAround the world, The Mission to Seafarers appoints part-time honorary chaplains to be a point of contact for emergencies and seafarers’ support in 71 countries and 260 ports. The role of the honorary chaplain varies with the port and country in which the chaplain is located, but it is a vital global network, which taps into local maritime knowledge and skills.

PartnershipsThe Mission to Seafarers’ global family of sister charities, seafarers’ centres and organisations works in partnership through local ecumenical networks, and in some cases co-owned property, via its membership of the International Christian Maritime Association.

Governance and managementThe Board of Trustees is drawn from prominent leaders with wide experience of seafaring life, including the Royal Navy, the shipping industry and from London’s financial centre, the City of London. MtS also invites leading members of the clergy to serve as Trustees. The procedure for the election and appointment of Trustees is set out in the Articles of The Mission to Seafarers.

The Mission to Seafarers funded and grant-funded ports

Antwerp, Belgium Bahrain Bangkok, Thailand

Belem, Brazil Busan, South Korea Colombo, Sri Lanka

Dar-es-Salaam, Tanzania Dunkirk, France Dubai, United Arab Emirates

Felixstowe, UK Fujairah, United Arab Emirates Gibraltar

Hong Kong, China Humber Ports, UK Limassol, Cyprus

Milford Haven, UK New Mangalore, India North West Ports, UK

Odessa, Ukraine Portbury, UK Rotterdam, The Netherlands

Rouen, France Scottish Ports, UK Seaham, UK

Singapore Southampton, UK Suape, Brazil

Tilbury, UK Tuticorin, India Vlissingen, The Netherlands

Yokohama, Japan


Trustees may serve on the Board for two periods of four years, apart from those aged 70 years or more who have to be re-elected annually. The Chairman and Vice-Chairmen are elected for a four-year term.

The Board requires a quorum of five Trustees and normally meets four times a year. It is the governing council of the organisation.

Newly appointed Trustees are given an induction which provides them with information on the work of the organisation and highlights their responsibilities as a Trustee. Some Trustees may also undergo specific training courses as required for their roles. Trustees are also required to sign a Code of Conduct and complete a Register of Interests on appointment.

Sub-committeesThe Board of Trustees has four sub-committees:

u Governance and Nominationsu Audit and Risku Investment u Remuneration

Each of the above committees is made up of Trustees and members of the executive staff. Where appropriate, the Board may co-opt independent and professional expertise from external sources, for the benefit of a committee’s work.

In 2014 the MtS will consider the appointment of international Trustees to further advise the Board on global shipping matters and the welfare needs of seafarers.

The day to day management of the charity is delegated to the Secretary General who reports to the Board of Trustees and directs the Ministry staff. The lay staff are led by the Executive Director through two directorates, Development, and Finance and Administration.

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Activities, Achievements and Future PlansOn 25 February 2013 The Mission to Seafarers welcomed a new Secretary General, The Revd Andrew Wright, after the sudden death of The Revd Tom Heffer in April 2012. In the interim, Executive Director Martin Sandford directly managed MtS as Acting Secretary General to ensure that the objectives of the MtS’s strategy 2010-2014, Delivering Maritime Ministry Beyond the Next Horizon, were delivered on time and to agreed budgets.

Throughout the rest of 2013, the Trustees and the new Secretary General worked to re-examine the current charity welfare service provision and towards the end of 2013 began to map out a framework for a refreshed strategic approach and business plan, which will be launched in the summer of 2014.

Strategic reorganisation 2014-2019 In January 2014, MtS announced a significant strategic reorganisation, which will build on the foundations of the previous strategy and which looks at regional service delivery and modernisation as the key overarching themes. The focus on sustainability and efficiency is maintained, and for 2014 MtS has embarked on a cost-cutting plan which, it is hoped, will mean around £1 million in efficiency savings. At the same time MtS will be maintaining and evaluating welfare services on the ground through our ongoing Global Review of Ports.

We are satisfied that the MtS is managing this change carefully and we look forward to seeing more progress. However, we continue to operate in a period of significant financial restraint for our supporters, particularly in the shipping industry at home and abroad. This has meant fundraising continues to be challenging and a high priority.

Below we set out the progress made so far in line with our strategic objectives.


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Strategic ReportObjective A: To offer practical help and spiritual support at the point of greatest needWhat we achieved in 2013Ship-visiting u A friendly face and genuine welcome for vessels in port from The Mission to Seafarers is one of the enduring

services provided all around the world.

u Our current service provision has been reviewed in a number of ports in the UK, Europe, in the Middle East, India and Asia.

u We have reduced our capability in port areas where access has proved untenable in the medium and longer term, and recruited and replaced chaplains in ports that need strengthening and expansion.

u We have looked to strengthen ship-visiting services world-wide reflecting increased need and demand.

u Our provision of support for seafarers suffering isolation, especially over Christmas, has been extended and our volunteer-led ‘wrapathons’ of gifts continue to grow world-wide.

u Improving ministry provision to cruise lines has been made a medium term priority and services for MtS’s ‘Church of The High Seas’, the voluntary team that co-ordinate cruise line ministry services, has been re-evaluated.

Transportu We offer transport services run by volunteer drivers all over the world and provide funds to buy vehicles.

u The provision of minibus transport services from ship to shore is vital to ensuring that seafarers, who work long contracts at sea, can access facilities to enable them to properly rest and recover.

u The transport we provide for seafarers is free of charge.

u The provision of new transport and investment in the recruitment of drivers has improved access to our centres for seafarers seeking to come ashore.

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Flying Angel seafarers’ centresu The Mission to Seafarers has undertaken an extensive programme of visiting global centres in order to engage

with local service teams and to gain valuable insights into new challenges and opportunities.

u New forms of seafarers’ centres have been opened, including those using environmentally-friendly designs and scaled to meet more flexible locations on the dockside, for example, by using ‘portacabins’.

u We provide woolly hats to many of our seafarers’ centres to distribute free of charge to seafarers in cold climates. Our teams of volunteer knitters, most often from local affiliated churches, work hard all year long to keep our local stocks of knitted items in stock.

u We have developed our ecumenical working model, predominantly in the UK, to extend ship-visiting programmes and maximise the efficient use of resources by reflecting local volunteer patterns.

Visiting seafarers in distressu Our hospital and prison-visiting programmes helps seafarers and their families find comfort when they are

separated by long distances.

u We provide round the clock care to those in most need and offer support to families where necessary, including providing accommodation at our largest centres.

u We undertake support and counselling to seafarers suffering from a range of life threatening and every day medical conditions.

u We liaise with local welfare agencies, acting as the local point of reference and information on services in the complex, high security port environment.

Support, counselling and post-trauma careu The Mission to Seafarers offers day to day advice and support for a whole range of problems, including

workplace stress, piracy related post-traumatic support, relationship problems and mental health issues.

u We have started to open discussions with maritime colleges to ensure good practice to support cadets with relatively little experience at sea.

u Post-traumatic stress counselling services have been extended and further professional training was held in Europe.

u We offer bereavement counselling services to seafarers.

u We have extended our support for seafarers who are reporting increased levels of mental health problems, including depression, stress and anger management issues.


Communication services u Our centres enable seafarers to contact their families through cost-effective communication services. We provide

customised telephone SIM cards, wifi and internet services to enable seafarers to contact home.

u Our globally recognised seafarers’ newspaper, The Sea, provides essential maritime news and is offered free to seafarers in all our ports. We provided around 174,000 copies in 2013.

u We provide donated books and DVDs to seafarers and offer library services in many of our centres.

Emergency responseu According to the IMO (2012), over 1,000 people die at sea every year and often survivors of shipwreck or fire are

brought ashore to the nearest seafarers’ centre. We provide help and support to seafarers suffering from shock or minor injuries in the wake of a disaster.

u In November 2013, in the Philippines, typhoon Haiyan caused the deaths of over 100,000 people, and many of our ports reported a high number of distressed seafarers using our services. We provided counselling and post-trauma care.

u We provided free SIM cards to Filipino seafarers; and worked with the Daily Telegraph newspaper and the cruise line industry to fundraise through a charity auction of cruise holidays.

u The Thomson Cruise Appeal raised over £35,000 for the families of five seafarers tragically killed during a health and safety lifeboat drill in Tenerife in the Canary Islands.

Spiritual supportu When required, we provide spiritual support to seafarers, offering prayers, blessings and pastoral care to those in

need.

u We provide services of remembrance, blessings of ships and hold the service of Eucharist for those who have died at sea if requested.

u We provide spiritual information materials, including Christian tracts such as Bibles, in English and in translation, in partnership with other mission agencies and charities.

Challenges faced u Recruitment of ship-visitors and new volunteers remains a challenge.

u Access to new port facilities is an increasing issue for MtS, and we have had problems securing port permits for regular ship-visiting.

u Providing transport services for, and keeping centres open to meet the needs of, seafarers arriving on early and late tides requires constant evaluation.

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u Illness and injury suffered by staff and volunteers has been problematic.

u The decline in the use of centre phones and phone cards has decreased the ability of some centres to raise adequate funds.

u Extreme weather conditions can affect centre staffing and opening times.

u Working with seafarers in many countries requires particularly cultural sensitivity around the issues of sexual health, and alcohol or drug addiction.

u Seafarers have increasingly reported that they are suffering from severe isolation.

u Chaplaincy teams are reporting more incidents of breaches of security and increases in crime in ports.

What next?u In 2014 we plan to implement our strategic reorganisation and regionalisation programme which will significantly

strengthen the support that we offer to seafarers locally.

u We aim to further develop our partnerships with other mission agencies and maritime welfare organisations to further ensure the best possible service is provided for seafarers in need.

u We will continue to review and assess new port entry strategies and consider appropriate decommissioning plans for all ports around the world as part of our Global Review of Ports activity.

u We are developing a new port entry plan for East Asia, which may include opening small ‘pilot’ ports in order to increase our contact with and services for, seafarers in countries and to build experience in new countries.

u We are currently on schedule to open a new port service in Mumbai, India and extend operations in Grangemouth, Scotland in 2014. We continue to explore potential avenues for expansion in the Far East, Russia and Vietnam.

u We are to recruit additional chaplaincy support in Hong Kong, Singapore and the United Arab Emirates.

u Our Seafarers’ Survey 2013, to which over 1000 seafarers responded, will be used to inform our business plan and strategy in 2014.

u In 2014 we plan to extend our volunteer recruitment plan and offer more support to teams seeking new help locally, particularly to extend our international ship-visiting programme.

u We will invest in further research into seafarers’ health needs and consider health projects with programmes of online support, for sensitive areas such as sexual health and addiction problems.


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Objective B: To provide advocacy services and campaign for changes that improve livesWhat we achieved in 2013Justice and advocacyu MtS has campaigned tirelessly for the international community to ratify the Maritime Labour Convention 2006

(MLC), which outlines a comprehensive list of standards and regulations that protect seafarers’ well-being. 2013 saw the landmark entry into force of the MLC.

u MtS chaplains have been trained to identify situations where advocacy on behalf of seafarers is most needed on ship and will be key to supporting seafarers interpret the MLC around the world.

u We provide a range of responses to seafarers who are having employment problems, which include wages disputes, bullying and contractual disputes.

u We support seafarers with medical problems where appropriate and refer to Unions or the Port Authorities where appropriate.

u We have continued to influence at the most senior international level with regulators, including the International Maritime Organization (IMO) and the International Labour Organization (ILO), and have continued to actively champion seafarers’ welfare needs.

u We have highlighted a significant increase in ‘abandonment’ of seafarers in many ports, including the UK, and have worked with international marine insurers to design new products for Flag States, which will in turn help protect seafarers.

u We have continued to provide provisions to crews who have been stranded on arrested vessels, including supplying food, water, medicines, clothing and communications services.

Public affairs and mediau Our esteemed President, HRH The Princess Royal, continued to champion our work around the world at our

headline community and industry events to raise awareness of the plight of seafarers.

u We continued to press at the highest level of government, both at home and abroad, for the welfare of seafarers to be a priority.

u We continued to meet with our partners around the world. These include the International Christian Maritime Association and the worldwide Anglican Communion.

u We have significantly increased public awareness of the work of The Mission to Seafarers with coverage from BBC Two, Sky News, BBC News, CNN, Bloomberg, The Press Association and The Daily Telegraph, as well as BBC and commercial local radio stations. We were mentioned in The Times newspaper for our Sea Sunday campaign.

u Our profile with the maritime trade press continued to be strong with contributions and articles being published in Lloyd’s List, Tradewinds, Fairplay and Nautilus, as well as online news agencies and The Church Times.

u We worked as advisors to the global film industry on matters of piracy and supported commercial publishing on key topics related to seafarers’ welfare.

u The crisis preparedness online interactive training programme was launched internationally.



Challenges facedu The preparation for the entry into force of the MLC 2006 required chaplaincy teams to undergo awareness

building courses ready to respond to seafarers’ needs.

u In some ports, which are highly secure, access to ships continues to be problematic and negotiations with local authorities can drain limited resources.

u Working in confidential and highly sensitive contexts can be exacerbated by local cultural barriers to sharing information and support.

u The polarisation between high quality, ethical, ship-owners, operating large fleets and fragmented, low quality, sometimes illegal, shipping is growing.

u MtS works to extend and grow strategic partnerships with ethical ship-owners to the benefit of all seafarers everywhere and to support those seafarers who still suffer from sub-standard management practices.

What next?u The MLC may encourage a higher number of complaints from seafarers relating to exploitation and abuse to

which The Mission to Seafarers must respond to assist seafarers seeking redress.

u In 2014 we are planning to develop additional advocacy training for chaplaincy teams.

u Our overarching campaigning theme will be abandonment of vessels in 2014.

u We will continue to closely monitor the progress and enforcement regime of the MLC.

u We will continue to engage with seafarers and appropriately report their concerns and illuminate justice cases at the highest level in the industry, with regulators and in the media.


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Objective C: To optimise the use of resourcesMinistry Operations What we achieved in 2013u We have developed higher quality service delivery through a more flexible approach to funding chaplaincy, and

with chaplai ncy grants replacing direct employment in some areas.

u The role of project manager in the ministry team has been created to ensure that the Global Review of Ports is underpinned by a robust, evidence-based assessment framework for the future.

u We have developed more flexible learning programmes and included online courses where possible to drive down costs and increase accessibility.

u Ministry information materials have been reviewed and streamlined realising significant cost savings.

u We have invested in upgrading and developing IT in some areas to increase communications and reporting.

u We have moved towards an increase in digital publishing and engagement. We have launched a new MtS internal e-Newsletter.

Challenges facedu Retention of MtS chaplains has been an issue and maintaining cohesion with our chaplaincy teams during a time

of organisational change.

u We need to strengthen our relationship with the Church in key strategic dioceses and we have set up a rolling programme of engagement with senior leaders to address this need.

u IT continues to be problematic across MtS teams spanning continents and for seafarers from ship to shore.

u Seafarers’ centres need significant investment and also require modernisation or decommissioning in places.

u The long tradition and culture of The Mission to Seafarers leads to organisational assumptions about service delivery and can be an obstacle to sharing new ideas and leading change on the ground.

What next?u During 2014 and post the strategic reorganisation this year, we intend to ensure line management is fully

strengthened through the new Regional Directors’ posts.

u We aim to ensure that the cohesion of all staff, volunteers and chaplaincy teams is maintained and internal communications continues to strengthen.


Fundraising and marketingWhat we achieved in 2013u We have continued to raise our international profile, and strengthened and extended our supporter base, at home

and abroad.

u Our work in East Asia continues to be a high priority for fundraising in 2014.

u We have raised significant funds for transport services for MtS around the world.

u The MV Flying Angel is a floating MtS seafarers’ centre in the United Arab Emirates which provides communications and a medical centre. We have continued to provide essential fundraising support to this service.

u Church-related giving through ‘Sea Sunday’ continued to grow. In 2013 ‘Sea Sunday’ raised over £45,000, 11 per cent more than in 2012.

u On Woolly Hat Day our supporters wear knitted beany hats, and donate to the MtS cause.

u We worked to support key MtS branches deliver their strategic fundraising and development strategies for 2014.

u Our corporate work programme was strengthened in 2013 in the UK and around the world.

u Over the past three years there has been a 60 per cent increase in Trust income.

u Individual giving continues to be a steady growth area for MtS as we work to increase our supporter base and develop new audiences.

u Our new ‘Flying Angel’ awards scheme was launched in May.

Challenges facedu To ensure our fundraising reach and mix positively reflects our special identity.

u Increasing voluntary income to achieve a balanced budget.

u To increase awareness of the challenges that seafarers face around the world.

u To enhance and develop the MtS brand and maintain the reputation of The Mission to Seafarers.

u To continue to develop and deliver highly creative and inspiring fundraising campaigns to drive increased income.

u To ensure that the sound legacy pipeline of support continues into the medium term.

u The continuing support of our volunteers is essential if we are to reach our fundraising targets by 2016.

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What next?u To expand our fundraising locally and in partnership with our key audience groups.

u We will develop global marketing and fundraising strategies which underpin the strategic reorganisation in 2014 to 2016.

u To develop a new range of high impact fundraising campaigns, including extending Sea Sunday globally.

u We plan to launch a Give As You Earn Scheme in the UK.

u To develop legacy giving by rolling out a substantial and targeted legacy campaign in the spring of 2014.

VolunteersThe Mission to Seafarers is greatly indebted to its volunteers for their commitment, time and skills. This includes all volunteers that help with MtS’s work, whether directly helping in ports or in seafarers’ centres or indirectly helping by completing surveys or contributing to MtS campaigns and appeals.

In particular, we could not extend our local networks without our fundraising committees and branch committees, and those who volunteer in Flying Angel Centres.

We also could not function without the support of those in the shipping industry who take part in our challenge activities, such as the Flying Angel Ride and the London to Paris Bike Ride. We thank them all for their support.


Thank YouThe Mission to Seafarers could not exist without funding from individual donors, companies, trusts, public bodies and other associations, and we thank all of them for their support.

We would also like to record our thanks to all of the chaplains and staff of The Mission to Seafarers, who show so much dedication and commitment to their work and to the charity.

We would like to thank our Mission to Seafarers partners overseas who continue to share our global vision of improving the wellbeing of seafarers and their families across the world.


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Financial Review The Group Statement of Financial Activities on page 25 shows net outgoing resources before recognised gains on investment assets of £549,000 (2012: £620,000). If gains on disposal of property no longer required for the purposes of The Mission to Seafarers are excluded, the net outgoing resources are £816,000 (2012: £1,015,000).

Total incoming resources were £5,087,000 (2012: £4,750,000). The Trustees recognise that legacies of £1,482,000 (29%) (2012: £1,024,000 (22%)), continue to comprise a significant proportion of incoming resources excluding gains on property and investment assets.

Total resources expended were £5,636,000 (2012: £5,370,000). An analysis of this expenditure is given in note 6 to the financial statements. The proportion of total expenditure that MtS considers to be of a charitable nature was 75% (2012: 72%).

It is important to stress that the sustainability of the MtS’s operations, both in the UK and as a resource provider to other parts of the worldwide Mission global family, depends on its ability to generate cash, and below is a summary of the MtS’s results for the last five years.

History

STATEMENT OF FINANCIAL RESOURCES Restated 2013 2012 2011 2010 2009 £’000 £’000 £’000 £’000 £’000TOTAL INCOMING RESOURCES 5,087 4,750 5,463 4,660 7,725

Incoming Resources excluding Property and Investment Gains: 4,820 4,355 5,300 4,547 4,339Resources Expended 5,636 5,370 5,648 5,657 5,621Net (Loss) before Property and Investment Gains (816) (1,015) (348) (1,110) (1,282) BALANCE SHEET Tangible Assets 7,206 7,157 6,840 6,714 6,669Investments 21,065 19,972 18,157 19,268 17,766Net Current Assets 1,960 1,762 3,852 4,129 4,784NET ASSETS 30,231 28,891 28,849 30,111 29,219 Endowment - - - 672 636Restricted 638 702 774 631 711Designated 14,000 - - - -Unrestricted 15,593 28,189 28,075 28,808 27,872TOTAL RESERVES 30,231 28,891 28,849 30,111 29,219 Cash Flow Net cash outflow from operating activities (982) (1,305) (512) (1,170) (1,506)

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“Brilliant, just brilliant! Please come back soon!” A Danish shipmaster and visitor to the MV Flying Angel

Risk managementThe Board of Trustees maintains a risk register, which was reviewed and updated in detail in 2013, in which the major risks to which The Mission to Seafarers could be exposed are recorded, together with the systems and procedures that are in place to manage them and future actions needed to reduce further the charity’s exposure.

The principal risks that MtS faces are that it is unable to raise sufficient funds to permit it to maintain or expand the services it offers to seafarers to meet the level of need identified or an event occurs which damages the reputation of MtS to such an extent that it is unable to raise sufficient funds to continue.

The Board of Trustees has overall responsibility for Risk Management. It is included in the remit of the Audit and Risk Committee and continually monitored by the senior management team. The register will continue to be reviewed as needed, but as a minimum will be looked at annually.

Reserves The level of the unrestricted general reserves has provided some protection to The Mission to Seafarers and allows time to adjust to changing financial circumstances. This has limited the risk to service provision from operating deficits, such as MtS has experienced in recent years, or an unexpected need for unbudgeted expenditure. MtS seeks to maintain general reserves to reflect the long-term nature of its work.

The Trustees take the view that they are the temporary custodians of these reserves and that it is essential that they leave The Mission to Seafarers in a state where it can continue for as long as seafarers need it. There is no sign of this need diminishing. Accordingly, the Trustees do not believe that any significant amount of the reserves should be spent unless or until the revenues achievable and the expenditure incurred in meeting seafarers needs are in balance. Over the past five years, the cumulative operating loss has been £4.5 million. It is only the performance of the MtS’s investment portfolio, and the sale of some property assets, that has allowed MtS to be in as healthy a position at the end of 2013 as it was at the end of 2009.

The consolidated reserves of The Mission to Seafarers group amount to just over £30 million. This year, following Board discussions of the issue in the past three years, the Trustees have resolved to designate reserves of £14 million which are not available for general purposes. This is made up of £7 million in fixed assets, £6 million in branch and subsidiary reserves and £1 million in future commitments relating to chaplain and pensioner accommodation. There are also restricted reserves of over £600,000. This leaves over £15 million in reserves for general purposes.

n In the opinion of the Trustees, this level of fund continues to be required to meet future working and capital requirements having taken into account the following factors:

n MtS seeks to operate in a proactive manner, to make commitments in terms of manpower and premises for the long term and to provide a reserve of funds sufficient to support operations at locations worldwide where it operates. There are continuing indications that some of MtS’s operations overseas, which endeavour to be self-funding, are struggling to maintain essential services. The Mission to Seafarers is committed to the principle of maintaining its worldwide support of seafarers and to retaining a sufficient level of funds to give stability to its work, including the provision of emergency financing where necessary for these activities.

n Long term committed expenditure at ports directly under UK control, if not funded by reliable and sufficient income streams, is a high risk strategy, which can be unsustainable without adequate reserves. The Trustees are very aware that ministry to seafarers is a long-term undertaking and, for that to be possible, a sound financial base is a prerequisite.

n In 2013 legacy income was £1,482,000 (2012: £1,024,000). Whilst MtS has benefited from legacies in the past and hopes to do so in the future, legacy income cannot be relied upon as a continuing and certain source of incoming resources. The Trustees have, therefore, made allowance for the uncertainties that arise from legacy income.

Trustees’ Report

n The Mission to Seafarers anticipates continuing net cash deficits arising from insufficient cash being raised. These deficits will be funded from the proceeds of investment and fixed asset transactions. There is a risk that future cash deficits will require continued funding from investment reserves. The Trustees have made an allowance for the element of risk arising from any future adverse movement in market values of investments held.

n Changes in law may impose costs, such as in the area of pensions, where obligations may arise to ensure that current and retired employees are not significantly disadvantaged.

In view of the level of reserves carried the Trustees consider that it is appropriate for the financial statements to be prepared on a going-concern basis.

Investment policyThe Trustees have adopted a policy for the portfolio of investments that is designed to optimise returns over the longer term and thus provide a regular flow of funds to support The Mission to Seafarers’ operating activities both in the UK and overseas.

In the implementation of this policy, the Trustees follow the Charity Commission guidance for the investment of charitable funds. They also have regard to, but are not bound by, the Church of England Ethical Investment Advisory Group guidelines.

Investment portfolioMtS maintains an internationally diversified portfolio of investments including equities, fixed interest stocks and investment funds giving access to other asset classes. The portfolio is externally managed by investment managers who are regulated by the Financial Conduct Authority.

Asset allocation and investment performanceThe Investment Committee regularly monitors the risk characteristic and asset allocation of the portfolio by means of reports from, and review meetings with, the investment managers. The performance of UBS, MtS’s primary investment managers, is measured against a composite benchmark designed to reflect MtS’s financial objectives and appetite for risk. The Mission to Seafarers’ agreement with UBS has been that performance will be assessed on a three year rolling basis.

Over the last 12 months UBS have been confident about the outlook for equity markets and as a result the portfolio rose by 18.1%; by comparison the benchmark appreciated by 17.2%. Both the fixed income and equity investment outperformed over the period. For the three year period to 31 December 2013 the portfolio produced an annual return, after all fees, of 6.9%; by comparison the benchmark rose by 8.6% per annum. The underperformance arises largely from the underperformance of the Triton Property Fund which has now been sold.

Approved and authorised for issue by the Board on 30 April 2014 and signed on its behalf by:

Chairman of the Board Chairman of the Audit and Risk Committee

Accounts 2013 | 21

22 | Accounts 2013

Statement of Trustees’ ResponsibilitiesThe Trustees (who are also directors of The Mission to Seafarers for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

n Select suitable accounting policies and then apply them consistently;

n Observe the methods and principles in the Charities SORP;

n Make judgments and accounting estimates that are reasonable and prudent;

n Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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

Disclosure of information to the Auditor

In so far as the Trustees of the charity at the date of approval of this report are aware:

n There is no relevant audit information of which the charitable company’s auditor is unaware; and

n The Trustees have taken all steps that ought to have been taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Trustees’ Report

Independent Auditor’s Report to the Members of The Mission to SeafarersWe have audited the Financial Statements of The Mission to Seafarers for the year ended 31 December 2013 which comprise the Group Statement of Financial Activities, the Group and Company Balance Sheet, the Group Cash Flow Statement and the related notes numbered 1 to 20.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

Respective responsibilities of Trustees and Auditor

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 22, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the Financial Statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of whether the accounting policies are appropriate to the group’s and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the Trustees’ Annual Report and Strategic Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material mis-statements or inconsistencies we consider the implications for our report.

Accounts 2013 | 23

24 | Accounts 2013

Opinion on Financial Statements

In our opinion the financial statements:

n Give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2013, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended.

n Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.

n Have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion the information given in the Strategic Report and Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

n The parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

n The parent charitable company financial statements are not in agreement with the accounting records and returns; or

n Certain disclosures of Trustees’ remuneration specified by law are not made; or

n We have not received all the information and explanations we require for our audit.

Helena Wilkinson BSc FCA DChA (Senior Statutory Auditor)

For and on behalf ofPrice Bailey LLPChartered AccountantsStatutory Auditors

7th Floor Dashwood House69 Old Broad StreetLondonUnited KingdomEC2M 1QS

Trustees’ Report

GROUP STATEMENT OF FINANCIAL ACTIVITIESIncorporating an Income and Expenditure Account Notes Unrestricted Restricted Total Total

Funds Funds 2013 Funds

£’000 £’000 £’000 £’000

INCOMING RESOURCES

Incoming resources from generated funds

Voluntary income 3 3,019 290 3,309 2,790

Activities for generating funds 202 - 202 196

Investment income 4 586 - 586 700

Incoming resources from charitable activities 495 - 495 516

Other incoming resources 5 495 - 495 548

TOTAL INCOMING RESOURCES 4,797 290 5,087 4,750

EXPENDITURE

Cost of generating Funds 1,292 1,292 1,288

Fundraising & Trading 99 - 99 108

Investment management costs (14) - (14) 15

Charitable activities 3,929 282 4,211 3,872

Governance costs 48 - 48 87

TOTAL RESOURCES EXPENDED 6 5,354 282 5,636 5,370

NET OUTGOING RESOURCES BEFORE TRANSFER (557) 8 (549) (620)

Transfers between funds 15 72 (72) - -

NET OUTGOING RESOURCES BEFORE RECOGNISED GAINS AND LOSSES (485) (64) (549) (620)

FOREIGN EXCHANGE LOSS (85) - (85) -

NET EXPENDITURE (588) (64) (652) (250)

UNREALISED GAINS/(LOSSES) ON INVESTMENTS 12 1,992 - 1,992 292

NET MOVEMENT IN FUNDS 1,404 (64) 1,340 42

RECONCILIATION OF FUNDS

TOTAL FUNDS BROUGHT FORWARD 28,189 702 28,891 28,849

TOTAL FUNDS CARRIED FORWARD 29,593 638 30,231 28,891

All the above results are derived from continuing activities. All gains and losses in the year are included above; accordingly a statement of total recognised gains and losses is not required.

Notes 1 to 20 form part of these financial statements.

Accounts 2013 | 25

26 | Accounts 2013

GROUP BALANCE SHEET

Notes Unrestricted Restricted Total Total

Funds Funds 2013 2012

£’000 £’000 £’000 £’000

FIXED ASSETS

Tangible assets 11 6,607 599 7,206 7,157

Investments 12 21,065 - 21,065 19,972

27,672 599 28,271 27,129

CURRENT ASSETS

Stocks-goods for resale 34 - 34 38

Debtors 13 373 - 373 561

Short term deposits 595 39 634 602

Cash at bank and in hand 1,788 - 1,788 1,364

2,790 39 2,829 2,565

CURRENT LIABILITIES 14 869 - 869 803

NET CURRENT ASSETS 1,921 39 1,960 1,762

NET ASSETS 29,593 638 30,231 28,891

FUNDS

Unrestricted 15,593 - 15,593 28,189

Designated 16 14,000 - 14,000 -

Restricted 15 - 638 638 702

TOTAL 29,593 638 30,231 28,891

Company Registration Number 6220240

Approved and authorised for issue by the Board on 30 April 2014

Signed on its behalf by:



Trustees’ Report

COMPANY BALANCE SHEET

Notes Unrestricted Restricted Total Total

Funds Funds 2013 2012

£’000 £’000 £’000 £’000

FIXED ASSETS

Tangible assets 11 6,210 599 6,809 6,660

Investments 12 20,912 - 20,912 19,816

27,122 599 27,721 26,476

CURRENT ASSETS

Stocks-goods for resale 27 - 27 30

Debtors 13 304 - 304 497

Short term deposits 595 39 634 532

Cash at bank and in hand 1,013 - 1,013 695

1,939 39 1,978 1,754

CURRENT LIABILITIES 14 818 - 818 738

NET CURRENT ASSETS 1,121 39 1,160 1,016

NET ASSETS 28,243 638 28,881 27,492

FUNDS

General 26,790 - 26,790 26,856

Restricted 15 - 702 702 774

TOTAL 26,790 702 27,492 27,630

Company Registration Number 6220240

Approved and authorised for issue by the Board on 30 April 2014

Signed on its behalf by:



Accounts 2013 | 27

28 | Accounts 2013

GROUP CASHFLOW STATEMENT

RECONCILIATION OF NET OUTGOING RESOURCES 2013 2012 FOR THE YEAR TO NET CASH OUTFLOW £’000 £’000 FROM OPERATING ACTIVITIES Net outgoing resources (549) (620)Gain on disposal of tangible fixed assets (281) (409)Investment income (586) (700)Depreciation 261 247Decrease/(Increase) in stocks 4 (3)Decrease in debtors 188 (363)Increase/(Decrease) in creditors 66 162Exchange (Loss)/ Gain on consolidation (85) (21)

Net Cash Outflow from Operating Activities (982) (1,305)

CASHFLOW STATEMENT Net Cash Outflow from Operating Activities (982) (1,305)

Returns on Investments and Servicing of FinanceInvestment Income 586 700 Capital Expenditure and Financial Investment Payments to acquire tangible fixed assets (870) (707)Purchases of investments (8,357) (12,770)Receipts from sales of tangible fixed assets 838 573Receipts from sale of investments 10,775 12,182

2,386 722

Net Cash Inflow/ (Outflow) before Management of Liquid Resources 1,990 1,327 Management of Liquid Resources (Increase)/Decrease in cash on short term deposits (32) 2,309Increase in cash with investment managers (1,534) (565)

1,566 1,744 Increase in Cash 424 417 1 January 2013 Cash inflow 31 December 2013

ANALYSIS OF CHANGES IN NET CASH Cash at bank and in hand 1,364 424 1,788

Trustees’ Report

NOTES TO THE FINANCIAL STATEMENTS

1. Accounting Policies

1.1 Basis of accounting

The Financial Statements have been prepared under the historical cost convention (modified to present investments at market value) and in accordance with applicable UK accounting standards, including the Statement of Recommended Practice - Accounting and Reporting by Charities (the 2005 SORP).

No separate Statement of Financial Activities has been presented for the Company alone, as permitted by paragraph 397 of the 2005 SORP. The Company’s Balance Sheet on page 27 includes the assets and liabilities of the branches detailed on page 4.

The Group Statement of Financial Activities on page 22 and the Group Balance Sheet on page 23 combine respectively the results and the assets and liabilities of the Company (including its branches) with those of its subsidiary companies detailed in note 2 after eliminating intra-group transactions.

The Company’s net incoming resources for the year were £1,340,000 (2012: £138,000).

1.2 Incoming resources and resources expended

The value of all incoming resources is recorded in the Statement of Financial Activities as soon as the company is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Expenditure is accounted for on an accruals basis. Costs in respect of operating leases are charged on a straight line basis over the lease term.

1.3 Legacies

Property and investments received by way of legacies are included initially at the market value ruling on the date of transfer. Legacies are recognised in the Statement of Financial Activities when there is adequate certainty and reliability of receipt and their value can be accurately measured. This is based on all legacies over £5,000 notified by the year end for which income was received by the end of February. Only material legacies received after this date, and up to the date of signing of the Annual Report and Financial statements, are recognised in the Statement of Financial Activities.

The Mission to Seafarers maintains a legacy pipeline system which, in addition to accrued legacies, includes further estimated legacies of which MtS is aware but which do not meet the above criteria and which, therefore have not been included within these accounts. The estimated value of legacies in the pipeline is £878,000 (2012: £1,160,000).

1.4 Capital grants

Capital grants are credited to the Statement of Financial Activities as restricted funds incoming resources. A transfer is made to unrestricted funds over the estimated useful lives of the assets to which they relate, matching depreciation charged to the unrestricted funds.

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30 | Accounts 2013

1.5 Allocation of costs

Charitable expenditure comprises expenditure directly relating to the objects of The Mission to Seafarers. It includes employment and associated costs of Chaplains including recruitment and training together with advice to Mts and linked organisations worldwide. Services to seafarers such as the costs of educational material and information for seafarers together with the newspaper for seafarers “The Sea” are also included as direct charitable expenditure.

Support costs (including secretarial and administrative support from MtS’s International Headquarters) not directly attributable to the headings on the Statement of Financial Activities are allocated to Charitable Activities, Cost of Generating Funds or Fundraising and Trading on the basis of head count at International Headquarters.

Governance costs comprise amounts related to constitutional and statutory requirements and include staff costs, audit fees, professional fees and Trustees’ expenses.

1.6 Pension costs

The Mission to Seafarers makes contributions to defined benefit and defined contribution schemes. The defined benefit schemes are multi-employer pension schemes and it is not possible to separately identify the assets and

liabilities of the schemes attributable to the MtS. In accordance with FRS 17 therefore, MtS has accounted for contributions to the defined benefit schemes as if they were defined contribution schemes. Full details of the pension schemes are given in note 9 (page 36).

1.7 Tangible fixed assets

Tangible fixed assets are stated in the Balance Sheet at cost less depreciation. Assets with a cost of less than £1,000 are written off in the year of purchase.

Depreciation is provided on a straight line basis over the anticipated useful life of fixed assets as follows:

Motor vehicles - four to six years

Fixtures and equipment - between five and ten years

Short leasehold buildings - over the term of the lease

Computer equipment - three years

Vessel – Flying Angel - fifteen years

Where the Trustees consider that the expected useful life of freehold land and buildings is in excess of 50 years and the carrying value in the Financial Statements is not more than the estimated recoverable amount, no depreciation is charged and, in accordance with FRS11, the Trustees have carried out and will continue to carry out annual reviews of impairment.

1.8 Investments

Investments are stated at mid-market value. Realised and unrealised gains and losses are shown in the Statement of Financial Activities.

Trustees’ Report

1.9 Stocks

Stocks are valued at the lower of cost and net realisable value.

1.10 Foreign currency translation

With the exception of investments, transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Foreign investment transactions are recorded at an average rate. Monetary assets are shown in the balance sheet at the rate ruling on the balance sheet date.

1.11 Funds

Restricted Funds represent capital grants received (noted above) together with donations for specific purposes. Transfers to unrestricted funds represent the release for the year of these grants or donations.

2. Subsidiary and connected undertakings

2.1 The Mission to Seafarers DMCCO (A Dubai Maritime City Company)

The shares are held in the Nominee names of The Mission to Seafarers Trust Corporation and FAME (see below). This company provides services to seafarers and their families in Dubai and operates a vessel to enable Chaplains and volunteers to visit seafarers on board their ships.

2012 2012

£’000 £’000

Voluntary Income 552 556

Investment Income 2 2

Total Incoming Resources 524 558

Charitable Expenditure 406 385

Net gain retained in Subsidiary 118 173

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32 | Accounts 2013

2.2 The Dunkirk War Memorial Trust Ltd The Dunkirk War Memorial Trust Limited (DWMT) was set up as a charity to provide premises and facilities for the use of seafarers within the port of Dunkirk, France. DWMT is effectively controlled by virtue of the Directors being Trustees or senior employees of The Mission to Seafarers. 2013 2012 £’000 £’000 Voluntary Income 31 41 Activities for Generating Funds 15 15 Investment Income 1 4 Incoming Resources from Charitable Activities 111 108 Other Incoming Resources 1 2

Total Incoming Resources 159 170 Fundraising and Trading 1 - Investment management costs 1 2 Charitable Activities 214 194 Governance Costs 5 7 Other Resources Expended - 2

Total Resources Expended 221 205

Net outgoing resources (62) 35 Net Unrealised Gains on investments 0 4 Foreign Exchange Losses - (4)

Net (Loss)/Gain retained in Subsidiary (62) (35)

2.3 Flying Angel Marketing Enterprises Ltd (FAME) The Mission to Seafarers owns through nominees the whole of the issued share capital of FAME. One Trustee and one past Trustee of MtS sit on the board of FAME but receive no remuneration for doing so.

FAME is a retailer and distributor of Christmas cards and novelties, and is party to any commercial agreement that is not considered a charitable activity of MtS. Any taxable profit from trading is gifted to MtS.

2013 2012 £’000 £’000 Turnover 19 16 Cost of sales - - Gross profit 19 16 Administration (3) (7) Donation to The Mission to Seafarers (16) (9) (19) (16)

Net gain retained in Subsidiary - -

Trustees’ Report

2.4 The Flying Angel Belfast Ltd The Flying Angel Belfast Ltd was set up to operate catering services in The Mission to Seafarer’s Belfast premises. All the shares in this company are owned by MtS. Any taxable profit is gifted to MtS.

2013 2012 £’000 £’000 Turnover 28 33 Cost of sales (16) (18)

Gross profit 12 15 Administration (12) (15) Donated to The Mission to Seafarers - -

Net gain retained in Subsidiary - -

2.5 The Mission to Seafarers Scotland Ltd The Mission to Seafarers Scotland Ltd was set up as a company limited by guarantee and registered charity in Scotland to raise funds and deliver services to seafarers and their families in Scotland. The Mission to Seafarers is the sole member.

2013 2012 £’000 £’000 Voluntary Income 137 135 Activities for Generating Funds 6 12

Total Incoming Resources 143 147 Cost of Generating Funds 1 5 Fundraising and Trading 21 9 Charitable Activities 127 114 Governance Costs 8 7 Other 4 3 Total Resources Expended 161 138

Net gain retained in Subsidiary (18) 9

2.6 The Mission to Seafarers Trust Corporation Ltd (MTSTC) MTSTC holds real property and investments as custodian Trustee on behalf of The Mission to Seafarers. It has no transactions on its own account.

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34 | Accounts 2013

3. Voluntary Income 2013 2012 £’000 £’000 General donations 1,827 1,766 Legacies 1,482 1,024

Total 3,309 2,790

4. Investment Income 2013 2012 £’000 £’000 Listed investments 557 666 Bank deposit interest 19 13 Rental income 10 21 Total 586 700 Income from listed and unlisted investments is shown gross, including tax reclaimable. Rental Income represents

monies received from properties held as fixed assets that are not fully occupied for MtS’s own activities.

5. Other Income 2013 2012 £’000 £’000 Surplus on disposal of properties 267 395 Surplus on disposal of other assets 14 14 Vote 4 – (note 9) 158 113 Other 56 26 Total 495 548

6. Analysis of Expenditure

Ministry Communications Regions Fundraising Support Total 2013 Total 2012 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Cost of Generating Voluntary Income - - 62 503 727 1,292 1,288 Fundraising and Trading - - 41 43 15 99 108 Investment Management - - 13 - (27) (14) 15 Charitable Activities 505 317 2,636 1 752 4,211 3,872 Governance - - 25 - 23 48 113 505 317 2,777 547 1,490 5,636 5,370 Staff Costs (note 8) 402 164 1,113 528 805 3,012 2,485 Grants (note 7) - - 287 - - 287 329 Other 103 153 1,377 19 685 2,337 2,556 Total 505 317 2,777 547 1,490 5,636 5,370

Support costs not directly attributable to the headings on the Statement of Financial Activities are reallocated on the basis of headcount at the Mission’s International Headquarters.

Audit fees included in governance costs for the group amount to £21,000 (2012: £28,000) and other fees paid to the auditors for non-audit services total £5,000 (2012: £12,000).

Trustees’ Report

7. Ministry Grants 2013 2012 £’000 £’000 Australia - 20 Bahrain 15 13 Belem 11 17 Colombo 11 11 Great Yarmouth 12 11 Limassol 8 - Mangalore 17 21 Oceania 2 2 Odessa 32 31 Portbury 9 9 Busan 55 56 Rotterdam 10 - Rouen 6 4 Seaham 4 2 Singapore 21 19 Suape 28 28 Tuticorin 22 19 Vlissingen 18 66 Total 287 329

Grants are made to support ministry in areas around the world. These grants are subject to annual review.

8. Staff Costs Charitable Raising Support Total Total Activities Funds 2013 2012 £’000 £’000 £’000 £’000 £’000 Wages and salaries 1,115 426 380 1,921 1,760 Social security costs 102 46 34 182 175 Other pension costs 221 26 28 275 195 Other staff costs 241 30 363 634 355 Total 1,679 528 805 3,012 2,485 Staff number 50 6 9 65 63

Other staff costs include recruitment, compensation for loss of office, training, welfare of overseas employees, temporary staff and travel-related costs. Redundancies have been provided for the strategic reorganisation detailed on page 7 at £160,000.

Employees with remuneration (excluding benefits in kind) in excess of £60,000: £60,000 to £70,000 2 (2012: 2) £70,000 to £80,000 1 (2012: 1) Employer’s pension contributions for these employees are 7%. £14,000 (2012 : £12,000)

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36 | Accounts 2013

9. Pensions

9.1 Defined Benefit Schemes The Mission to Seafarers participates in two of the Church of England Defined Benefits Schemes administered by the Church of England Pensions Board. These are the Church of England Funded Pensions Scheme (CEFPS) for the clergy and the Church of England Defined Benefits Scheme (CEDBS) for lay employees of Church of England organisations. The assets of both schemes are held separately from those of MtS.

The Church of England Pensions Board has stated that it is unable to identify MtS’s share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other entities participating in the schemes.

The Mission to Seafarers has treated these schemes as falling within the multi-employer disclosure provisions of Financial Reporting Standard 17 which require the contributions to the schemes to be accounted for as for defined contributions schemes and for the following additional disclosures to be made.

A valuation of the CEFPS was carried out as at 31 December 2012 and revealed a shortfall of assets of £293 million with assets of £896m and a funding target of £1,189m.

All of MtS’s employed chaplains are currently funded by the Archbishop Council under Vote 4 provisions. Employers contributions of £158,000 (2012: £113,000) paid by MtS to the CEFPS are included in staff costs (note 8). This amount was reimbursed by the Archbishops Council and is included in other income (note 5).

For funding purposes the CEDBS is divided into sub-pools in respect of each participating employer as well as a further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post retirement investment returns.

A valuation of the CEDBS is carried out once every three years, the most recent being carried out as at 31 December 2010. In this valuation, the Life Risk Section was shown to be in deficit by £6.7m and some £5.5m was notionally transferred from the employers’ sub pools to the Life Risk Pool. Of this, £183,000 was deducted from the MtS’s sub- pool. This increased the employers’ contributions that would otherwise have been payable. Other available information relating to the valuation as at 31 December 2010 is given below.

Total Scheme Members Mission Members Deferred pensioners 1,513 10 Active Members 1,134 5 During the year The Mission to Seafarers made contributions of £36,000 (2012: £33,000).

9.2 Defined Contribution Schemes A scheme for staff was set up in 2008 with Scottish Life. Contributions to this scheme are funded 3% by the employee and 7% by MtS. There are 20 (2012: 17) members of staff in this scheme at 31 December 2013. Contributions to this scheme in 2013 were £58,000 (2012: £46,000).

The Mission to Seafarers contributes 7% to an additional money purchase scheme for one active member (2012:1) which is administered by a pension provider selected by that member. MtS contributions for 2013 totalled £ 2,000 (2012: £2,000).

Trustees’ Report

Trustees’ Report | 37Accounts 2013 | 37

9.3 Other Amounts paid in respect of unfunded pensions during the year were £6,000 (2012: £1,000).

10. Transactions with Trustees One Trustee received remuneration of £1,000 from The Mission to Seafarers during the current year in respect of consultancy services (2012: None).

During the year expenses were reimbursed to 6 Trustees (2012: 8) for travel to attend meetings of and on behalf of the MtS. The total amount reimbursed to Trustees in 2013 was £4,000 (2012: £4,000).

11. Tangible Fixed Assets

Group Property Motor Vessel Fixtures and Total Vehicles Equipment £’000 £’000 £’000 £’000 £’000 Cost 1 January 2013 7,033 683 785 1,045 9,546 Additions 725 151 - 30 906 Disposals (556) (61) - - (617) Exchange Difference - (1) (60) (1) (62) 31 December 2013 7,202 772 725 1,074 9,773

Depreciation 1 January 2013 718 439 326 906 2,389 Provided during the year 42 125 50 44 261 Disposals - (50) - - (50) Exchange Difference - (4) (26) (3) (33) 31 December 2013 760 510 350 947 2,567 Net book value 31 December 2013 6,442 262 375 127 7,206 31 December 2012 6,315 244 459 139 7,157

38 | Accounts 2013

The Company Property Motor Fixtures and Total Vehicles Equipment £’000 £’000 £’000 £’000 Cost 1 January 2013 7,033 608 919 8,560 Additions 724 134 29 887 Disposals (556) (50) - (606) 31 December 2013 7,201 692 948 8,841 Depreciation 1 January 2013 718 379 803 1,900 Provided during the year 42 109 31 182 Disposals - (50) - (50) 31 December 2013 760 438 834 2,032 Net book value 31 December 2013 6,441 254 114 6,809 31 December 2012 6,315 229 116 6,660

Property The properties held are split between categories as follows: 2013 2012 £’000 £’000 Freehold 5,219 5,089 Leasehold 1,222 1,226 TOTAL 6,441 6,315 Freehold and leasehold property represents the book value of staff houses, pensioners’ houses, and club and office premises.

All assets are used by the charity for its charitable purposes.

Trustees’ Report

12. Investments

12.1 Listed investments 2013 2012 Group Company Group Company £’000 £’000 £’000 £’000 Market value 1 January 18,478 18,327 17,228 17,091 Additions 8,357 8,350 12,770 12,616 Disposals (10,796) (10,787) (11,812) (11,674) Unrealised gain for the year 1,992 1,994 292 294 Market value 31 December Listed Investments 18,031 17,884 18,478 18,327 Cash held by Investment Managers 3,034 3,028 1,494 1,489 21,065 20,912 19,972 19,816 Historical cost at 31 December 14,916 14,765 16,868 16,715 The Mission to Seafarers’ main investment advisors charge a management fee offset by the commission charge on each transaction up to a maximum amount. The fees for 2013 were £40,000 (2012: £45,000). The commission charges of £58,000 (2012: £75,000) are included in the additions and deducted from the proceeds of investment transactions. The fees are offset against the commission. Fees totalling £13,000 (2012: £15,000) were paid to the other investment advisors.

Significant investment holdings (over 5%) based on market value at 31 December 2013 were: Ishares S&P 500SHS (GBP) 12% Ishares PLC FTSE 100 UCITS ETF (INC) 6% Charity Property Income Units (GBP) 5% Findlay Park American FD Dollar CL (USD) 5%

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40 | Accounts 2013

12.2 Investments in Subsidiaries The Company controls the following principal active subsidiaries, the results of which have been consolidated.

Net assets Country of % Holding/ Net incoming as at Nature of Name of company incorporation control resources 31 December Business 2013 2013 £’000 £’000

The Mission to Seafarers UAE 100 118 1,127 Provision of spiritual and DMCCO practical welfare for all seafarers

The Dunkirk War Memorial UK 100 (62) 181 Provision of spiritual and Trust Ltd practical welfare for all seafarers

Flying Angel Marketing UK 100 - 1 Sales of Enterprises Ltd promotional goods

The Flying Angel Belfast Ltd UK 100 - - Sales of catering services and promotional goods

The Mission to Seafarers UK 100 (18) 40 Provision of spiritual and Scotland Ltd practical welfare for all seafarers

The Mission to Seafarers UK 100 - - Holds property as Trust Corporation Ltd Custodian Trustee on behalf of MtS

Trustees’ Report

13. Debtors Group Company 2013 2012 2013 2012 £’000 £’000 £’000 £’000 Flying Angel Marketing Enterprises Ltd (FAME) - - 36 26 The Flying Angel Belfast Ltd (FAB) - - 10 10 Legacies - 81 - 81 Other debtors 373 480 258 380 373 561 304 497

Amounts due from FAME include a £12,500 loan made to FAME at a market rate of interest that is not repayable in the next two years.

The loan of £10,000 to FAB is secured and carries a market rate of interest and is repayable on demand.

A proportion of legacies receivable may be received after more than 1 year, but this figure cannot be determined with any accuracy due to the inherent uncertainty in the timing of legacy income receipt.

14. Current Liabilities Group Company 2013 2012 2013 2012 £’000 £’000 £’000 £’000 Trade Creditors 53 43 52 41 Social Security 45 52 45 48 Accruals 771 708 721 649 Total 869 803 818 738

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42 | Accounts 2013

15. Restricted Funds

Opening Closing Balance Income Expenditure Transfer Balance £’000 £’000 £’000 £’000 £’000 ITF Mangalore (Building Work) 7 - (7) - - ITF JNPT (Setting up costs) 46 (36) - (10) - Merchant Navy Welfare Board (Vehicles for use in UK Ports) 116 44 - (45) 115 Belfast (Property Costs) 501 9 (2) (17) 491 Samaritan Fund (Helping Seafarers affected by disasters) - 46 (40) - 6 Seafarers UK (Port costs) - 141 (141) - - London Diocesan House 6 - - - 6 Others 26 86 (92) - 20 Total 702 290 (282) (72) 638 Restricted funds represent capital grants (note 1.4) received together with donations for specific purposes. Transfers to unrestricted funds represent the release for the year of these grants or donations.

16. Designated Funds

Opening Closing Balance Income Expenditure Transfer Balance £’000 £’000 £’000 £’000 £’000 Fixed Assets - - - 7,000 7,000 Branch and subsidiary reserves - - - 6,000 6,000 Commitments to retired chaplains - - - 1,000 1,000 Total - - - 14,000 14,000 As part of the continuing review of reserves the Trustees decided to create Designated Reserves as indicated above.

The Fixed Asset reserves represents the cost value, net of depreciation, of the investment in fixed assets owned by The Mission to Seafarers.

The Reserves of the branches and subsidiary companies are held for the purpose of delivering services in the relevant geographical locations.

Any chaplain employed prior to 1983 with a minimum service of 30 years is entitled to be provided with housing for the remainder of their life. There is potentially one more property to be purchased and on-going maintenance costs.

Trustees’ Report

17. Ecumenical Centres

Financial details of organisations in which the charity is a joint Trustee and involved in the management are:

Centres Humber Felixstowe Port Milford for Seafarers of Bristol Haven

Proportion of controlling influence 33.3% 33.3% 33.3% 33.3% 33.3% Proportion of net assets on dissolution - property 33.3% - 33.3% 33.3% 33.3% - other 33.3% - 33.3% 33.3% -

Last published accounts date 31 December 31 January 31 March 31 March 31 December 2012 2013 2013 2013 2012

Net surplus/(deficit) in £’000s (23) 7 19 (19) (8) Net assets in £’000s 671 227 631 131 325 Separate trust agreements exist between the Trustees to ensure that the properties cannot be disposed of without the agreement of all parties concerned. The net assets above include the net book value of these properties.

Upon dissolution, the net assets of the Humber Seafarers’ Service can be transferred to an external body with agreement by the members. This may be, but need not, one of the participating societies.

18. Capital Commitments

At 31 December 2013 the Board had not contracted for any capital expenditure for the Group or Company.

19. Financial Commitments

At 31 December 2013 the Group and Company had annual commitments under non-cancellable operating leases which expire as set out below:

Land & Land & Buildings Buildings 2013 2012 £’000 £’000 Over 5 years 50 50 20. Contingent Liabilities

As explained in note 17, The Mission to Seafarers supports other ecumenical centres. Although these centres operate independently of MtS, there would be certain obligations on MtS if any of them were to run into financial difficulty. The Mission to Seafarers appoints one or more of their Trustees, normally a MtS Trustee or senior member of staff, to these centres and, as far as they are aware, there are currently no material matters that would give rise to a liability.

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NOTES

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The Mission to SeafarersSt Michael Paternoster RoyalCollege Hill, London EC4R 2RLTel: +44 (0)20 7248 5202 Fax: +44 (0)20 7248 4761Email: [email protected] Website: www.missiontoseafarers.org Registered Charity no. 1123613

www.facebook.com/themissiontoseafarers @FlyingAngelNews

www.justgiving.com/themissiontoseafarers

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Mts 2013 annual report v4 final colour 17 sept 14

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