chatham historic dockyard trust

Chatham Historic Dockyard Trust A N N U A L R E V I E W 2 0 1 4 • 2 0 1 5

CONTENTS

HMS Cavalier (1944) The National Destroyer Memorial

Page 3 Chairman’s Introduction

Page 4 An evolving 21st century charity

Page 5 Our Core Charitable Objectives

Page 6 Demonstrable contribution to the local area - real growth

Page 7 How we achieve our objectives

Page 8 Activities and programmes during 2014/15

Page 11 Our subsidiary trading companies

Page 12 What have we achieved in 2014/15?

Page 13 How are we doing?

Page 16 Income & expenditure

Page 17 Fundraising

Page 18 Review of our finances

Page 19 Governance

0 People matter

Page 21 The future matters

Page 22 Our operating results

Page 23 Our development programme

Page 24 Corporate information

T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5

CHAIRMAN’S INTRODUCTION

On 22 September 1914, three Chatham-

manned cruisers were sunk with the loss

of 1,459 lives, mainly from the Chatham

Port Division. This was the first significant

naval loss of the Great War. Exactly 100

years later HRH The Duke of Kent, the

First Sea Lord, and many relatives of those

who died joined other distinguished guests

and visitors at The Historic Dockyard to

commemorate the loss. A moving drum

head service was supported by sailors from

HMS Kent and the band of Her Majesty’s

Royal Marines. The year also saw us mark

the 70th anniversary of the launch of HMS

Cavalier, the National Destroyer Memorial,

berthed here in the dock where HMS

Victory was launched 249 years earlier.

The event was a partnership with the

energetic HMS Cavalier Association, and

brought together veterans from around the

world. We marked the 100th anniversary of

The past year has once again demonstrated that The Historic Dockyard in Chatham is much more than the world’s most complete dockyard of the age of sail. The 400 residents who live within the Dockyard, and the 100 small and medium enterprises that carry out their business here, have now been joined by 600 students who will study in the Art and Business Departments of the University of Kent. The year also saw the Trust mark some significant maritime anniversaries.

“After 400 years of ship building for the Royal Navy, the dockyards at Chatham have certainly got a story to tell.”

Trip Advisor

3HRH Duke of Kent inspects Royal Navy standards at the ‘Loss of the Three Cruisers’ event.

the start of the First World War with

a remarkable temporary exhibition “Valour,

Loss and Sacrifice”, which told the story

of The Historic Dockyard and its workforce

in supporting the Royal Navy during that

conflict.

I am delighted to report good progress in

delivering our Command of the Oceans

project, the first phase of which was

completed on 31 March 2015, on time and

to budget, thanks to the excellent work

of the project team and to the financial

support given by our partner, the Homes

and Communities Agency, and by the

Heritage Lottery Fund. Fundraising for this

project has been extremely successful,

with a total of £9.1m raised, exceeding our

original target, thanks to the generosity

of many individuals and organisations.

Without such support we would be unable

to delight and inspire future generations

through continuous development of our

iconic buildings, museum galleries and

ships, and our programmes of education.

The Historic Dockyard is an example

of maritime heritage without equal.

Reports on Trip Advisor and social

media tell us that we are continuing to

meet the expectations of our visitors,

this year numbering nearly 175,000.

It is a remarkable and rapidly evolving

community, where a dedicated team

of Trustees, volunteers and staff work

hard to maintain an appropriate balance

in our activities and development. I am

enormously grateful for their commitment

and immensely proud of what they

have achieved.

Admiral Sir Ian Garnett KCB Chairman

AN EVOLVING 21ST CENTURY CHARITYGood governance and clarity of purpose lie behind all we do in meeting our obligations as stewards of the eighty acre Historic Dockyard site, and in educating the widest possible audience about the role of the site in British history over four hundred years. As a 21st century charity we aspire to meet best practice in all we do. We intend that our legacy will survive for generations to come. Our work is therefore an integral and significant part of what will be the history of this very special place.


4Officers terrace residential properties BBC’s Call the Midwife filming Salute to the ‘40s event

No.1 Smithery, working in partnership with national museums.


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To secure for the public benefit the preservation and use of The Historic Dockyard at Chatham in the county of Kent in a manner appropriate to its archaeological, historical and architectural significance.

To promote and foster for the public benefit a wide knowledge and understanding of the archaeological, historical and architectural significance of The Historic Dockyard.

In meeting our Learning objective, we utilise our collections, galleries and buildings to tell our stories in engaging

and entertaining ways.

As a fully Accredited Museum we collect, preserve, study and exhibit objects and materials connected with the history of:

• the role of Chatham Dockyard and its people;

• the development of Royal Navy warship design and construction; and

• the use of the river Medway by the Royal Navy and its support services,

and their role in the development of Medway.

Our core objectives are:

OUR CORE CHARITABLE OBJECTIVES

Educating the public University of Kent students in the Royal Dockyard church Engaging with the public

HOW WE ACHIEVE OUR OBJECTIVES

2014/15 has been particularly significant,

as we completed the first phase of our

£9.1m Command of the Oceans project.

This important project will, for the first time,

tell the story of how The Historic Dockyard

and its people supported the Royal Navy in

maintaining command of the oceans during

the heyday of the age of sail. The project

has already dramatically improved the

visitor experience on arrival. It has enabled

us to preserve and interpret a number of

Scheduled Ancient Monuments that were

previously somewhat neglected. Although

delayed a little by the past year end

administration of the principal contractor,

the project will be complete in late

Spring 2016.

Our museum and education services are

being further developed with the invaluable

help of continued significant investment

from supporters such as The Heritage

Lottery Fund, the Homes and Communities

Agency, many trusts and foundations and

individual supporters. In addition, our

re-use of buildings for residential, business

and higher education purposes continues

to flourish. Significant investment by The

University of Kent, a long standing partner,

is providing exciting uses for some very

important buildings that would otherwise

be difficult to re-use. Working with the

Trust and Historic England (formerly English

Heritage), the University’s sensitive and

productive conversions are bringing the

traditional role of dockyards as providers of

high quality education back to the forefront

of activity at The Historic Dockyard.

Our long term strategy of preservation through re-use of the site and its buildings and the operation of museums, exhibitions and visitor attractions continues to evolve and develop to meet these equally important objectives.

The University of Kent at The Clock Tower Building

The University of Kent at the old Fire Station


7

“Beautifully well kept location steeped in maritime history. Loads to see and do for all ages, staff on site very pleasant and informative. A great day out.”

Trip Advisor

ACTIVITIES AND PROGRAMMES DURING 2014/15

As ever, our activities are guided by the

priorities set out in our Corporate Plan

2012/16. With 2016 fast approaching,

work has started on development of a new

plan to succeed it. The starting point, a

review of success against the current plan,

has been a rewarding process. The vast

majority of priorities have already been met,

sometimes in ways other than envisaged,

but always with equal or better outcomes.

The scale and volume of achievements is

remarkable for a small organisation.

The Historic Dockyard continues to move

steadily towards its goal of financial

sustainability, as the generous support

from The Department for Culture Media

and Sport (DCMS) reduces over time.

That support does, however, remain a

vital element of our income. It provides

critical funding to allow us to meet our core

objectives through investment in our visitor

offer and income generating commercial

property portfolio. More remains to be

done, as we are still unable to meet the

full costs of maintaining the site, with its

one hundred buildings and structures (forty

seven of which are Scheduled Ancient

Monuments) and providing outstanding

education and public benefits. The Board

is in process of progressing further towards

our goal of financial independence.

The year saw some wonderful activities,

programmes and events, as well as

capital development:

THE CHIEF EXECUTIVE’S REPORT

Public Engagement Matters

■ We hosted a record number of visits in the year. Visitor numbers totalled nearly 175,000, attracted by the diversity of our visitor experience, our varied programmes and our strong communications.

■ We hosted two remarkable anniversary events, marking the seventieth year since the launch of HMS Cavalier and the 100th anniversary of the sinking of HMS ABOUKIR, HMS CRESSY and HMS HOGUE, with the loss of more than 1,400 men, mostly from Chatham.

■ We maintained our innovative temporary exhibition programme, featuring “Valour Loss and Sacrifice”, illustrating the moving story of The Historic Dockyard’s role in the Great War, and “HMS Victory 250” telling the story of this great Chatham built ship.

■ We welcomed 16,000 school children in organised groups to enjoy and learn from our exciting education programmes, which are retaining their popularity despite the uncertainties surrounding changes in the national curriculum.

■ We strengthened our Science, Technology, Engineering and Maths (STEM) programmes and broadened them into the family market with a wonderful set of science shows across the summer holiday period.

■ Our two major public fundraising events, Easter’s “Steam and Transport” and autumn’s “Salute to the ‘40s”, were both successful, despite a rain dampened Easter.Record numbers attended the 1940s’ event and fundraising exceeded all expectations.

Summer holiday STEM activities

Julia Donaldson’s “A Squash and a Squeeze” temporary exhibition Valour, Loss & Sacrifice temporary exhibition

Painting HM Submarine Ocelot’s sonar dome red for Comic Relief’s Red Nose Day


8

Property Matters

Through the investment (£3M) in the first

phase of our Command of the Oceans

project a number of Scheduled Ancient

Monuments have been conserved.

In addition, significant archaeology has

been exposed, recorded, analysed and

interpreted as part of the new visitor

arrival at the north of the site. Of particular

significance is the delineation of the

oldest monument on the site, the south

mastpond, and the exposure, preservation

and interpretation of the Marc Brunel canal

that serviced the Brunel saw mill.

We invested £154,000 in heritage and

infrastructure maintenance in the year,

carefully prioritising spending according to

the detailed maintenance plans and risk

analysis that are now in place. Despite

increasing annual investment, our analysis

shows that we are not achieving the level

of investment necessary to ensure the

long-term security of our buildings and

structures. It is, however, encouraging that

the gap is narrowing as the strategy set

down in our corporate plan is delivered.

The University of Kent continues to invest in

our buildings. Changes to its own strategy

have resulted in considerable re-investment

in a number of our buildings to make them

suitable for different courses, while the arts

department remains located here.

Our tenant base remains stable and resilient.

Income generated has, therefore, been

robust. Our tenant community is an integral

part of Historic Dockyard life, and helps to

establish the character of the place.

Our income from use of the site for film

location purposes achieved a record

income of £214,000 for the year. Staff and

volunteers involved in managing this activity

have developed high levels of skill and

understanding of the complex requirements

of film location work. We also thank the

other users of the estate for their support

and their patience.

Communication Matters

Our corporate plan places great emphasis

on communications as fundamental to

our growing success. We have a carefully

planned communications strategy and

operating plan. Balancing limited resources,

we use a highly segmented approach to

communications.

We have invested considerable time

and resource in reviewing our overall

communications strategy in preparation

for the opportunities provided by the

opening of Command of the Oceans and

the consequent re-launch of The Historic

Dockyard at Chatham in 2016. Our focus

on digital platforms is increasing, with

a clear strategy emerging for significant

progress in this area. These will be carefully

integrated with our more traditional means

of communication.

Examples of media coverage for The

Historic Dockyard in the year include:

■ National press coverage for:

The 250th Anniversary of the launch of HMS Victory at Chatham

Hosting the regional BBC Children in Need programme.

■ Significant regional coverage for:

Valour, Loss and Sacrifice: Chatham, The Royal Navy and the War at Sea (First World War commemorations)

The 100th anniversary of the loss of the three Royal Navy Cruisers (First World War commemorations)

The 250th Anniversary of the launch of HMS Victory at Chatham

Hosting the regional BBC Children in Need programme

Hosting the BBC South East Today Pre-election “Question Time”

School holiday activities, special events and family learning programmes.

■ Specialist Press

Special Events

Archaeological finds

The 250th Anniversary of the launch of HMS Victory at Chatham.

Pudsey Bear from BBC Children in Need

Excavation of Brunel’s Canal




9

Continued

Continued

Digital Progress

A new digital communications strategy

has been developed, which includes a

new website with a “mobile first” approach

and on line ticket sales functionality.

The “digital voice” of The Historic Dockyard

Chatham is increasing, as evidenced by

significant growth across social media

platforms, particularly Twitter, Facebook and

a Google tour of HM Submarine Ocelot.

Reputation Matters

The Trust is very conscious of the value

of a good reputation and the care needed

to nurture and maintain that reputation.

We firmly believe that our reputation for

entrepreneurial management of heritage

assets is growing. We are increasingly

asked to assist other organisations,

nationally and internationally, which hope to

learn both from our successes and, equally

important, our failures. As samples, locally

we have worked with Bletchley Park and

the Weald and Downland Open Air

Museum. Further afield a presentation to the

Association of Scottish Visitor Attractions

(ASVA) led to them bringing a study team to

The Historic Dockyard Chatham.

Our reputation as a high quality museum

and visitor attraction is also increasing. We

are proud to have maintained our Accredited

Museum status and our benchmark against

others through participation in national and

local benchmarking networks.

We have been awarded our third successive

Trip Advisor Certificate of Excellence, with

92 per cent of responses at the level of

‘good’ or ‘very good’. Our VAQAS (Visitor

Attraction Quality Assurance Scheme)

assessment was also very high this year,

recognising our continuous investment in

visitor facilities.



Advocates and recommendations are

the life blood of all successful visitor

attractions. We work hard to build

relationships through our Patron,

The Prince of Wales, our Vice Patrons

and Dockyard Ambassadors, as

well as through our visitors, tenants,

residents and business connections.

The Loss of the Three Cruisers event, 22 September 2014


10

OUR SUBSIDIARY TRADING COMPANIES

Master Ropemakers (Trading) Ltd. This company operates the historic

ropewalk, producing rope for sale on

the commercial market. Its potential to

generate profits in a highly competitive

market is limited by its need to use

traditional methods and equipment. Its

operation is also highly labour intensive

compared with modern domestic and

overseas competition.

The company is also required to provide an

important demonstration and educational

resource for visitors to The Historic

Dockyard. The intriguing rope making

process is recognised as one of The

Historic Dockyard’s star features. It is

hugely popular with visitors and the

media alike.

In meeting this public interest, however, the

company’s efficiency is further hampered

by the need to operate at multiple set times

during the day, and in a viewer friendly

way. As a result the Trust offers a service

charge to the company to recognise the

hidden cost of supporting the Trust’s core

education and preservation objectives.

Chatham Historic Dockyard (Trading) Ltd. This trading company offers retail and

catering services to visitors. It also provides

a business, wedding and hospitality venue

based in Commissioner’s House, which has

been adapted for re-use for that purpose.

Built in 1704, Commissioner’s House is

Britain’s oldest intact Royal Naval building.

Each unit of the company’s business

is designed to operate profitably, so

increasing the funds available to the Trust

as its parent to further its core objectives.

Our four wholly owned subsidiaries manage various trading activities. Funds generated are passed to the Trust as the parent charity to help further its core objectives. The subsidiaries are:

Historic Dockyard Property Ltd.(HDPL) HDPL is the Trust’s residential property

company. It owns the freehold of the

residential estate and many of the 115

homes on that estate. The company

manages the estate, providing services

to the tenants in accordance with their

leases, and in return for payment of a

service charge.

Some home owners are exercising their

right to enfranchise their properties,

meaning that they will purchase the

freehold while remaining within the

estate management regime.

Historic Dockyard Property (2005) Ltd. (HDP 2005) HDP(2005) holds the long leasehold of the

Trust’s land to the north of the site, formerly

known as the Interface Land. This land

is bounded by development sites owned

by Homes and Communities Association

(HCA). The majority of the land has been

improved through the Command of the

Oceans project, in which HCA has invested

£3m in return for the right to purchase a

part of the land as a car park, the grant

of rights of way and easements, and the

benefit of public realm works.

Master Ropemakers (Trading) Ltd Commissioner’s House Residential building


11

“What was planned as a duty visit (something to do) turned out to be very enjoyable. There is no one absolute killer-app attraction but the friendliness of the staff and verve with which things are put across plus a certain eclectic quirkiness make it a great day out.”

Trip Advisor

WHAT HAVE WE ACHIEVED IN 2014/15?

Funding for Command of the Oceans

reached £9.1m, exceeding the original

target by £400,000. This will enable us

to meet the highest aspirations of the

project. The first phase, encompassing

the investment in Scheduled Ancient

Monuments and public realm at the north

of the site, was successfully completed

on time and on budget. Initially good

progress on the next phases of the project

was interrupted after the year end by the

Administration of the principal contractor.

It is expected that all project outcomes will

still be met with a potential three month

delay in opening.

Our people have coped brilliantly with the

additional demands of managing a major

capital programme. They have successfully

managed the range of temporary changes

required to maintain standards during

delivery of the scheme, and at the same

time to press on with a range of other

activities and programmes.

Our relationship with The University of

Kent grows ever stronger. Leases have

been agreed with the University to give it

more space in the Sail and Colour Loft and

The Historic Dockyard Church. This has

reinforced the presence of the University

here, bringing more students to engage

with and enjoy the place and adding a

welcome dynamic to The Historic Dockyard

as a heritage site.

We are managing to increase our

investment in the maintenance of our

Scheduled Ancient Monuments, ships and

general environment. We are, however, still

not generating enough to be self-sufficient.

This makes our on-going relationship with

DCMS, the Heritage Lottery Fund and many

other funding organisations essential to

our progress. Our plans to move yet closer

to sustainability through the re-use of the

Fitted Rigging House and other buildings

will be the focus of future projects. Those

projects will lead to so much more than just

preservation through re-use - they will lead

to a secure future for the whole heritage site.

Building on the success of recent years, this year has seen further substantial progress and achievement.Visits to the site increased again to nearly 175,000, a record for The Historic Dockyard. Income from most sectors has grown steadily, allowing us to increase investment in our core objectives.

“The staff were most obliging and anxious to engage with the children to enhance their understanding of the various aspects of naval life.”

Trip Advisor

Visit Makers assisting visitors


12

A record year for visitor numbers at The Historic Dockyard Chatham

HOW ARE WE DOING?IN MEETING OUR CHARITABLE AND SIGNIFICANT STRATEGIC OBJECTIVES

As articulated in the Corporate Plan 2012-2016

Objective CompletedOngoing Activity

Not Achieved Comment

The year saw a record number of visits at nearly 175,000 but we believe Command of the Oceans will boost this in the future.

We have developed engaging Science Technology Engineering and Maths (STEM) programmes for schools and families based on former Historic Dockyard activities.

Education

Our investment in planned preventative maintenance continues to grow and the site and its buildings are better maintained. We do still have a funding gap that must be closed if standards are to be maintained in the future after capital projects are completed.

Preservation

The Trust’s reputation as a responsible steward of heritage and curator of objects and archives continues to grow. We are recognised regionally and nationally for our leadership role.

We have achieved considerable press, broadcast and online media coverage which enhances our reputation

Reputation

Following last year’s DCMS technical committee report, this is no longer being pursued.Achieving World Heritage Site Status

University of Kent leases utilise all remaining space available.Property

Bring the Sail and Colour Loft into full, productive use.

Very low rate of occupancy changes.Maintain a stable commercial tenant and rental base.

Most financially successful year ever.Utilise the wider site environment productively – film location use.

The highest self generated investment ever, but still below the long term average required with a future funding gap still to be filled via our development plans.

Maintain the estate according to the priorities of the planned maintenance schedule.

IN MEETING OUR OPERATING OBJECTIVES


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School visit numbers maintained despite the adverse impact of National Curriculum changes.

Education

Provide high quality formal education standards.

Record visits recorded with the temporary exhibition programme continuing to drive volume and audience diversity.

Continue to grow visitor numbers and audiences.

Strong progress on delivery of the Command of the Oceans project.Continue to improve interpretation and implement the museum reorganisation strategy.

A further £400K raised for Command of the Oceans will enable design to exceed original interpretation objectives.

Raise £8.75m for Command of the Oceans.

Excellent relationship development and management, together with a creative approach to programmes, has led to £280K raised in the year.

Raise programme funding for education and museum projects from corporate and charitable sources.

Objective AchievedWork in Progress

Not Achieved Comment

HOW ARE WE DOING?IN MEETING OUR CHARITABLE AND SIGNIFICANT STRATEGIC OBJECTIVES

As articulated in the Corporate Plan 2012-2016


14HM submarine Ocelot (1962) the last warship built at Chatham for the Royal Navy

VISITOR NUMBERS 2006 - 2015The steady and sustained growth in total visits to the site has been maintained.

VISITOR INCOME 2006 - 2015Growth in increase from visits of circa 80% has been faster than visitor numbers over the ten years but has plateaued pending the next boost expected when Command of the Oceans opens.

PROPERTY INCOME 2006 - 2015The trend of increasing income from innovative use of the property portfolio has continued.

TOTAL INCOME 2006 - 2015Total income generated has grown sustainably over the ten year period. At more than £5m PA this is almost 40% higher than 10 years ago.

Events & Corporate

Organised Groups

Schools visits

Individual visits

20,00O

2006 2007 2008 2009 2010* 2011

Year

Visi

ts

100,000

80,00O

60,00O

Visitor Numbers 2006 - 2015

2012 2013 20152014

40,00O

180,000

160,000

140,000

200,000

120,000

* Note that 2010 includes 30,000 for Armed Forces Day

Events income

Groups income

Schools income

Individual Income

2006 2007 2008 2009 2010 2011

Year

£000

’s

1000

800

600

Visitor Income 2006 - 2015

2012 2013 20152014

400

1,200

200

2,500

2,200

1,650

1,100

550

-

Year

£000

’s

Property Income 2006-2015

2015

Filming

Joiners Shop income

Development Fund Rent

Utilities recharged

Car Parking

No.1 Smithery Rent

Rental income

2006 2007 2008 2009 2010 2011 2012 2013 2014

6,000

5,000

4,000

3,000

2,000

1,000

-

Year

£000

’s

Total Income 2006-2015

2015

Renaissance / ACE

Other grants & donations

Trading & investment income

Ropemaking

Visitor income

Property income

2006 2007 2008 2009 2010 2011 2012 2013 2014

2,500

2,000

1,500

1,000

500

-

Year

£000

’s


2014

Filming

Joiners Shop income


Utilities recharged

Car Parking

No.1 Smithery Rent

Rental income

2005 2006 2007 2008 2009 2010 2011 2012 2013

2,500

2,000

1,500

1,000

500

-

Year

£000

’s


2014

Filming

Joiners Shop income


Utilities recharged

Car Parking

No.1 Smithery Rent

Rental income

2005 2006 2007 2008 2009 2010 2011 2012 2013

Other organised groups

School visits

Events & corporate

Individual visits

20,00O

2005 2006 2007 2008 2009 2010*

Year

Visi

ts

100,000

80,00O

60,00O

Visitor Numbers

2011 2012 20142013

40,00O

180,000

160,000

140,000

200,000

120,000


Other organised groups

School visits

Events & corporate

Individual visits

20,00O

2005 2006 2007 2008 2009 2010*

Year

Visi

ts

100,000

80,00O

60,00O

Visitor Numbers

2011 2012 20142013

40,00O

180,000

160,000

140,000

200,000

120,000


Groups income

School income

Events income

Individual Income

2005 2006 2007 2008 2009 2010

Year

£000

’s

1000

800

600

Visitor Income 2005 to 2014

2011 2012 20142013

400

1,200

200

Groups income

School income

Events income

Individual Income

2005 2006 2007 2008 2009 2010

Year

£000

’s

1000

800

600

Visitor Income 2005 to 2014

2011 2012 20142013

400

1,200

200

6,000

5,000

4,000

3,000

2,000

1,000

-

Year

£000

’s


2014

Renaissance / ACE



Ropemaking

Visitor income

Property income

2005 2006 2007 2008 2009 2010 2011 2012 2013

6,000

5,000

4,000

3,000

2,000

1,000

-

Year

£000

’s


2014

Renaissance / ACE



Ropemaking

Visitor income

Property income

2005 2006 2007 2008 2009 2010 2011 2012 2013

HOW ARE WE DOING?T H E C H AT H A M H I S T O R I C D O C K YA R D T R U S T A N N U A L R E V I E W 2 0 1 4 / 2 0 1 5

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MAINTENANCE EXPENDITURE

Property income is fundamental to the Trust’s efforts

to move to financial sustainability but the growing

proportion of income generated from visitor operations

and trading is an important part of the mix.

43% of our expenditure is allocated to direct education

and preservation purposes. Our adminsitration costs

are limited to 12%.

800

200

400

600

-

Year

*Note that 2010 includes 30,000 for Armed Forces Day

£000

’s

Total Maintenance Spend 2006 - 2015

2015

Exhibition Maintenance

Tenants Maintenance

Ground/Road Maintenance

Building Improvements

Reactive Maintenance

Planned Preventative Maintenance

Salaries

2006 2007 2008 2009 2010 2011 2012 2013 2014

Ship/Dock Maintenance

Administration & support 12%

Ropemaking 10%

Preservation & Education 43%

Chatham Historic Dockyard Trust - Expenditure 2014/15

Trading costs 17%

Marketing & Events 7%

Insurances 4%

Utilities 7%

Trading & investment income 18%

Ropemaking 9%

Property Income 38%

Chatham Historic Dockyard Trust - Income 2014/15

Visitor income 27%

Renaissance/ACE 3%

Other Grants & Donations 5%

INCOME 2014/2015

EXPENDITURE 2014/2015

INCOME & EXPENDITURE

800

200

400

600

-

Year

*Note that 2010 includes 30,000 for Armed Forces Day

£000

’s

Total Maintenance Spend 2006 - 2015

2015

Exhibition Maintenance

Tenants Maintenance

Ground/Road Maintenance

Building Improvements

Reactive Maintenance

Planned Preventative Maintenance

Salaries

2006 2007 2008 2009 2010 2011 2012 2013 2014

Ship/Dock Maintenance

Administration & support 12%

Ropemaking 10%

Preservation & Education 43%

Chatham Historic Dockyard Trust - Expenditure 2014/15

Trading costs 17%

Marketing & Events 7%

Insurances 4%

Utilities 7%


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FUNDRAISING

Throughout 2014/15, fundraising has continued to focus on raising the necessary matched funding to support our Command of the Oceans project. We are pleased to report the fundraising campaign has now closed. We have been successful in raising more than £9.1m for this project, thanks to the generous support of a range of supporters including the Heritage Lottery Fund, the Homes and Communities Association and a range of Charitable Trusts, Foundations and other organisations, including:

■ AIM/Biffa Award NHLPS

■ Arts Council England

■ DCMS/Wolfson Museum and Galleries Improvement Fund

■ The Doris Pacey Foundation

■ The Fidelity UK Foundation

■ The Foyle Foundation

■ The Garfield Weston Foundation

■ The Headley Trust

■ The Michael Uren Foundation

We thank all of those organisations for

their interest and their generosity. We

would also like to thank all the individuals

and organisations not listed above for their

invaluable support.

We thank all of these organisations

for their invaluable support. We would

also like to thank all the individuals and

organisations that have supported The

Historic Dockyard through this period,

including those who have generously left

gifts in the form of a legacy. Their support

is hugely appreciated and makes a real

difference to the valuable work we do.

We would also like to thank in

particular the Department for Culture,

Media and Sport and Medway Council

for their continued support.

In 2014/15, we have also been fortunate enough to receive support for a range of other projects and programmes from a number of Charitable Trusts, Foundations and other organisations, including:

■ Arts Council England

■ BAE Systems (Rochester)

■ The Bedgebury Foundation

■ The David Cock Foundation

■ Department for Culture, Media and Sport (DCMS)

■ The Esmée Fairbairn Collections Fund

■ H.R. Pratt Boorman Family Foundation

■ John Swire 1989 Charitable Trust

■ Marsh Christian Trust

■ The Sir John Fisher Foundation

■ Southern Water

Command of the Oceans


17

REVIEW OF OUR FINANCES

Management of the finances of the Trust

remains the immediate responsibility of the

Chief Financial Officer, reporting directly

to the Chief Executive. A summary of

the financial position of the Trust and its

subsidiaries is also presented for quarterly

review and approval to the Finance and

General Purposes Committee of the Board

of Trustees, and thence to the Board itself.

We commissioned an audit exercise

during the year to satisfy the Trustees

that our established policies were sound,

especially in terms of procurement. Our

external auditor found this to be the case.

Trustees have, however, asked that a part

time internal audit function be established,

in order that they can have the necessary

continuing reassurance that we remain

rigorous in meeting these policies as

the Trust grows and develops.

FINANCIAL MANAGEMENT POLICIES

Reserves policyThe policy of the Trust is to maintain a

general reserve of at least £1.25m. At the

year end this actually stood at £1.34m.

Our designated reserve, that is used for

investment in projects for the re-use of trust

buildings leading to a financial return, stood

at £262,746. It has most recently been

drawn on to facilitate University of Kent

occupation of various buildings. Our total

general reserve including the designated

reserve stood at £1.68m at the year end.

Grants and donations promised or received

for the Command of the Oceans project,

but not yet used, amount to £2.95m.

These reserves are recorded separately in

our accounts as restricted reserves. They

do not form part of the general reserve,

being detailed for specific application in the

£9.1m Command of the Oceans project in

the coming year.

“The hearts of oak exhibition also brought history to life and shows just how this attraction has moved into the 21st century.”

Trip Advisor

Investment policy The Trust’s policy has been reviewed

during the year. Although remaining risk

averse, with most reserves invested in

relatively liquid fixed interest bonds, a

review of our cash flow indicates that up

to £250,000 can be invested in medium

term low risk investments. Action is

under way to secure appropriate cost

effective opportunities through the use

of appropriate advice.


18

GOVERNANCE

In addition, the formation of a Trustee

supervisory committee to scrutinise the

planning, management and delivery of

the Command of the Oceans project has

proved both effective and efficient. That

committee reports to the Board of Trustees.

The Trustees have in this way been able

to oversee the fulfilment of our twin core

objectives and the investment of substantial

third party and public funding.

Our commitment to excellence in governance is undiminished. The eleven strong Board of Trustees, chaired by Admiral Sir Ian Garnett KCB, has been effective in applying the carefully chosen skills mix to ensure the strategic development of the Trust and proper supervision of implementation by the executive team.The knowledge, experience and professional skills of individual Trustees have been invaluable to the executive team throughout the year.

There were no changes to the Board

of Trustees in this year. Admiral Sir

Trevor Soar KCB OBE DEng FCMI

has been identified as the successor

to Sir Ian Garnett as Chairman of the

Trust, with an expected hand over

in Spring 2016.


19

“Wow, so much to see and do. One of the best visitor experiences I have had, The Historic Dockyard Chatham is a mixture of ‘museum’ and ‘living museum’ with a mixture of ‘period’ guided and static displays of buildings, warships and other maritime & historic vehicles and equipment. With displays and collections from every aspect of historical significance, there is something for everyone here from their vast collection of RNLI Lifeboats to the ‘living’ trades demonstrations to trains to Art.”

Trip Advisor

“Absolutely fantastic place to visit and indeed get absorbed into history!! Excellently conceived and maintained, and worth every minute spent. The Dockyard is an education to people from around the world, especially from the Commonwealth countries, whose navies and dockyards have been modelled on the Royal Navy and Chatham.”

Trip Advisor

PEOPLE MATTER

We take our duty of care to staff and

volunteers extremely seriously. The

Trust has policies in place for health and

safety, training, equal opportunities, and

new media use. A comprehensive staff

handbook is issued to all new staff during

induction, and is available through our

intranet. We have also introduced formal

data protection and anti fraud, bribery

and theft policies in the year.

We have active programmes for

traineeship, work experience and

internships to ensure new entrants to the

workplace have the opportunity to gain

experience. In this way we encourage

development through the organisation.

The diversity of activities undertaken by

the Trust requires investment in expertise,

which can be supported by external

advisors when necessary. The Trust has

expanded the number of knowledgeable

and suitably experienced staff, recognising

the need to invest in human resources as

the scale of our operations and

projects grow.

This expansion is carefully balanced

against actual need, financial resources

and best practice.

As a labour intensive visitor attraction,

management of payroll is always a

challenge. The Trust supports the

government’s desire to increase lower pay

rates by the introduction of the “Living

Wage” but this will introduce severe

cost pressures that will require careful

management as we endeavour to become

financially self sufficient.

The Trust is committed to equality in the work place, and to investment in its staff through the provision of training, appropriate terms and conditions of employment and good workplace environments. We review our management and support structures regularly, benchmarking them against other organisations both within and outside our direct sector of activity.

Our staff turnover remains remarkably low.

One member of the senior team, Richard

Holdsworth MBE, Education and Preservation

Director, celebrated his 30th anniversary with

the Trust during the year. His contribution has

been, and continues to be, remarkable. His

commitment and dedication is an inspiration

to others in our management, staff and

volunteer teams.

Volunteers play a major part in the life of

The Historic Dockyard. There are 280 active

volunteers providing invaluable support to the

Trust. In total they contribute around 37,000

hours, equivalent to 23 full time staff across a

range of disciplines and areas of interest. We

are extremely grateful to all our volunteers for

their hard work and commitment, and for all

they achieve for the enhancement and benefit

of The Historic Dockyard.

Considerable grant funded investment has

been dedicated to developing volunteer

and community engagement and training.

Staff members are specifically allocated to

managing this aspect of our work. There are

encouraging signs of growth in volunteer

numbers, diversity and interests to the benefit

of the Trust and the individuals concerned.

Our new Command of the Oceans project

is already increasing such opportunities.

Risks

Risk management is an essential

element of good governance.

The Trust’s systems of review

recognise this, with the Board

of Trustees and the Executive

involved at both strategic,

management and operational

levels. The Trustees undertake an

overall review of strategic risks at

least twice in each year.

“It was very interesting to see rope being made at The Ropery and good to get some of the children (and adults) involved. Great opportunity to see what life on a submarine would have been like. Lunch in the Commissioner’s House was good. Lovely to see the enthusiasm of the staff in all parts of the dockyard.”

Trip Advisor

MANAGEMENT, STAFF AND VOLUNTEERS

Volunteer working with member of staff on the Invincible collection


20

THE FUTURE MATTERS

As an organisation committed to constant

improvement and focus on our core objectives,

we look to the future as much as the past.

The valuable investment in our Command of the

Oceans project by so many supporters, large and

small, is a clear example of how we plan and then

implement projects that transform our offering.

That investment has already done much to secure

the future of a number of Scheduled Ancient

Monuments. It has also created a public realm that

is “tomorrow’s heritage”.

Our immediate focus for the future is to complete

this project, minimising the impact of the

Administration of the principal contractor as far

as possible, especially in terms of quality, cost

and programme.

21

We are planning carefully for the opening of

the project and the opportunity that it provides

to re-launch The Historic Dockyard Chatham.

The intention is to use this opportunity substantially

to increase visitor numbers in a sustainable way

and so to raise yet further the profile of The Historic

Dockyard.

We have a number of other grant funded projects;

and are developing activity programmes

that will be the focus of attention over the

coming years.

With much of the Corporate Plan 2012-2016

achieved, we are already starting the formal

process of developing its successor. This will build

on the success of the last thirty years and will

focus on the promotion of our Core Objectives and

our continuing aim of financial resilience through

income from our buildings and activities.


The Hearts of Oak gallery – investment in interpretation for future generations

OUR OPERATING RESULTS


22

FINANCIAL SUMMARYTotal 2015

£Total 2014

£

Incoming resources

Voluntary income 7,440,785 887,431

Activities for generating funds 1,609,507 1,604,684

Investment income 21,475 17,105

Incoming resources from charitable activities 3,457,741 3,315,266

Other incoming resources 347,250 912,751

TOTAL incoming resources 12,876,758 6,737,237

Resources expended

Costs of generating voluntary income 53,105 48,397

Fundraising trading: cost of goods sold 1,370,009 1,519,067

Investment management costs 14,200 14,687

Charitable activities 7,498,247 4,446,860

Governance costs 62,666 61,574

Others 347,250 0

Total resources expended 9,345,477 6,090,585

Net movement in funds 3,531,281 646,652

Funds as at 1st April 2014: 8,963,968 8,317,316

Funds as at 31st March 2015: 12,495,249 8,963,968

Restricted funds 9,250,764 5,866,958

Designated funds 1,810,868 1,651,080

Unrestricted funds 1,433,617 1,445,930

12,495,249 8,963,968

“What a brilliant day out!!!!! We arrived at 11am and didn’t leave until closing time at 6pm. The staff were all so helpful and informative. Well worth the entrance fee, we worked out that we saw at least 10 attractions which worked out at £3 each. Great value for money.”

Trip Advisor

OUR DEVELOPMENTPROGRAMME


23

2015 £

2014 £

Restricted Income

Department for Culture, Media & Sport / Wolfson 40,326 0

The Fidelity UK Foundation 174,000 0

Michael Uren Foundation 200,000 100,000

Homes and Communities Agency 1,502,860 1,036,940

Arts Council England 142,511 269,738

Garfield Weston 250,000 0

Heritage Lottery Fund* 4,533,835 68,015

Others 663,047 19,335

Restricted Income 7,506,579 1,494,028

Expenditure

No.1 Smithery 62,830 62,830

Command of the Oceans 3,635,467 274,561

Museum Relocation / Hearts of Oak 35,586 49,321

Arts Council England 126,304 203,854

Others 262,586 171,953

Total Expenditure 4,122,773 762,519

Plus transfer between funds 0 (78,473)

Net movement in restricted funds 3,383,806 653,036

Restricted Funds as at 1st April 2014 5,866,958 5,213,922

Restricted Funds as at 31st March 2015 9,250,764 5,866,958

FINANCIAL SUMMARY

The summarised accounts set out on pages 22 and 23 are taken from the Trustees’ Report and Financial Statements 31 March 2015 which received an unqualified auditor’s report. The Trustees’ Report and Financial Statements were approved and will be filed with the Charity Commission and the Registrar of Companies.

These summarised accounts do not contain sufficient information for a full understanding of the financial affairs of the Charity. Full sets of the Trustees’ Report and Financial Statements are available from the Chatham Historic Dockyard Trust on request.

Admiral Sir Ian Garnett KCB Chairman 16th November 2015

Auditor’s statement to the members of The Chatham Historic Dockyard Trust We have examined the summary financial statements set on pages 22 and 23.

Respective responsibilities of trustees and auditors

The trustees are responsible for preparing the summary financial statements. Our responsibility is to report to you our opinion on the consistency of the summary financial statement with the full annual accounts and trustees’ report, and its compliance with the relevant requirements of The Companies Act 2006 and the regulations made thereunder. We also read the other information contained in the summary financial statements and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the summary financial statement.

Opinion

We conducted our work in accordance with Bulletin 2008/3. The auditor’s statement on the summary financial statement’ issued by the Auditing Practices Board. In our opinion the summarised financial statements are consistent with the full financial statements for the year ended 31st March 2015.

* Please note £2,947,597 of this Heritage Lottery Fund income relates to Command of the Oceans and has not been received at 31st March 2015. This income has been accrued but no expenditure relating to this income was incurred in 2014/2015.

Nexia Smith & Williamson 16th November 2015

Chartered Accountants & Registered Auditors

CORPORATE INFORMATION

Patron

His Royal Highness The Prince of Wales

Vice Patrons

Admiral of the Fleet The Lord Boyce KG GCB OBE DL

The Rt. Hon Sir Timothy Sainsbury Kt PC

Rear Admiral Sir Donald Gosling KCVO RNR

Mr Alan Willett CVO CMG KStJ

The Board of Management

Chairman

Admiral Sir Ian Garnett KCB

Sir Ian Andrews CBE TD

Councillor David Carr

Sir Robert Crawford CBE

Mr Murray Hallam

Councillor Craig Mackinlay

Mrs Sandra Matthews-Marsh MBE

Ms Laura Nesfield

Mr Pommy Sarwal

Mr John Spence OBE, DL

Mr Maurice Storey CB

Additional Members of the Trust

The Rt. Hon. the Secretary of State

for Defence

The Rt. Hon. the Secretary of State

for Culture, Media and Sport

The Executive

Mr Bill Ferris OBE

Chief Executive

Mr Chris Knott

Chief Financial Officer

Mr Richard Holdsworth MBE

Preservation and Education Director

The Trust gratefully acknowledges the financial

and other support during 2014-15 of its many

stakeholders and funders, so essential to

assisting it.

Major Donors and Supporters 2014/2015 (in alphabetical order):

Arts Council England

BAE Systems

The Bedgebury Foundation

The David Cock Foundation

The Department for Culture, Media and Sport

The Doris Pacey Charitable Trust

Esmée Fairbairn Collections Fund

The H.R. Pratt Boorman Family Foundation

Heritage Lottery Fund

HMS Cavalier Association

HMS Decoy Association

John Swire 1989 Charitable Trust

Marsh Christian Trust

Medway Council

The Michael Uren Foundation

The Sir John Fisher Foundation

The Trust would also like to acknowledge the

valuable contribution made by other supporters and

funders and the many individual benefactors who

support us.

The Chatham Historic Dockyard Trust is a registered

Charity. Gifts and donations made by UK taxpayers

Under Gift Aid increase the value of donations

made by 25% Registered in England and Wales

No.1804108.

Registered as a Charity No. 292101

Fully Accredited Museum.


24

THE CHATHAM HISTORIC DOCKYARD TRUST

The Sail and Colour Loft, The Historic Dockyard,

Chatham, Kent ME4 4TE

T 01634 823800

thedockyard.co.ukCM

chatham historic dockyard trust

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