ACCOUNTS - Final Accounts

TALL SHIPS RACES INTERNATIONAL LIMITED - Company Information

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Registered number: 04894646

TALL SHIPS RACES INTERNATIONAL LIMITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 MARCH 2022

TALL SHIPS RACES INTERNATIONAL LIMITED

COMPANY INFORMATION

Directors	J Arends
	G Brown (resigned 30 April 2021)
	E Corwin (appointed as Chairman 8 September 2021)
	R MacDonald (resigned 8 September 2021)
	M Makowska
	R Mimbacas
	R Snouck Hurgronje
	J Van Der Burg
	B Western
	A James (appointed 1 April 2021)


Company secretary	A James


Registered number	04894646


Registered office	Charles House
	Gosport Marina
	Mumby Road
	Gosport
	Hampshire
	PO12 1AH


Independent auditors	James Cowper Kreston
	Chartered Accountants and Statutory Auditor
	9th Floor
	The White Building
	1-4 Cumberland Place
	Southampton
	Hampshire
	SO15 2NP


Bankers	Lloyds TSB plc
	20 High Street
	Gosport
	Hampshire
	PO12 1DE


Solicitors	Paris Smith
	1 London Road
	Southampton
	SO15 2AE

TALL SHIPS RACES INTERNATIONAL LIMITED

REGISTERED NUMBER: 04894646

BALANCE SHEET

AS AT 31 MARCH 2022

		2022		2021
Note		£		£


Current assets
Debtors: amounts falling due within one year	5	125,938		256,903
Cash at bank and in hand	6	1,341,523		1,085,269
		1,467,461		1,342,172
Creditors: amounts falling due within one year	7	(675,547)		(901,167)
Net current assets			791,914		441,005
Total assets less current liabilities			791,914		441,005
Creditors: amounts falling due after more than one year	8		(675,393)		(425,400)

Net assets			116,521		15,605

Capital and reserves
Called up share capital	9	1	1
Profit and loss account		116,520	15,604
		116,521	15,605

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

A James

Director

Date: 7 October 2022

The notes on pages 2 to 7 form part of these financial statements.

Page 1

TALL SHIPS RACES INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

1.	General information

Tall Ships Races International Limited is a private company limited by share capital and incorporated in England and Wales. The address of the registered office and principal place of business is Charles House, Gosport Marina, Mumby Road, Gosport, Hampshire, PO12 1AH.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The following principal accounting policies have been applied:

2.2

Going concern

The directors have considered the impact of the global Covid-19 pandemic on the ability of the Company to continue trading for the foreseeable future. The effect of the pandemic has resulted in all events in both 2020 and 2021 being either cancelled or postponed.
The two planned events for 2020 the Tall Ships Race 2020 (Magellan Elcano) and the Far East Regatta 2020 were both postponed to 2021 to run after the planned Tall Ships Race 2021 in agreement with all related parties. Unfortunately, due to the restrictions imposed by the global pandemic it was not possible for any of the three events to proceed in 2021.
Agreement was reached with the ports for the 2021 Tall Ships Race to mutually cancel the event and as part of the negotiation grant automatic inclusion for the Tall Ships Race 2024 at a discounted host port fee. The recognition of the full port income for the Tall Ships Race 2021 without incurring some of the race costs resulted in the improved financial results in the year.
It was agreed with SCF Sovcomflot, the sponsor of White Sails of Peace Regatta, that the sponsorship is suspended until March 2023. As part of the suspension a reconciliation of income and costs was supplied to SCF Sovcomflot which is reflected in the financial accounts. Regarding the Magellan Elcano event agreement has been reached with the three Iberian ports to hold the event in the summer of 2023.
The reduction in the fixed cost base including a much-reduced staff team has positioned the Company well to cope with the further event postponements in this accounting period.
The Company has continually assessed the impact of the pandemic and updated its financial forecasts and projections accordingly which have been stress tested throughout the financial year.
The support of the Company’s stakeholders throughout this period particularly the 2021 Tall Ships host ports has been key to navigating through this difficult period.
Based on this review and taken together with existing financing facilities the directors believe that the financial statements have been prepared appropriately using the going concern basis.

Page 2

TALL SHIPS RACES INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

2.Accounting policies (continued)

2.3

Revenue

The host ports for each event contract with the Company up to four years before the race takes place and make annual payments on account. The Company is engaged in planning and marketing activity throughout the four year period for each race. Accordingly the Company recognises the income as part of the port fees received in each of the years leading up to the race, the balance being taken in the year the race is held.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

Gift aid

Gift Aid payments to the parent charity, Sail Training International Limited, are recognised when they are approved by the directors and are presented as distributions within the Statement of Changes in Equity.

2.5

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.6

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Short term debtors and creditors are measured at the transaction price. Other financial instruments, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

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TALL SHIPS RACES INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

2.Accounting policies (continued)

2.8

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

2.9

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2.10

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 4

TALL SHIPS RACES INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

2.Accounting policies (continued)

2.11

Pension

Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Profit and Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and, the amounts reported for revenues and expenses during the year. However, the nature of estimation,means that actual outcomes could differ from those estimates. The following judgments (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Payment for regatta events is typically received several years in advance of the races taking place. Management have reviewed the pattern of activity and costs incurred relative to the date of a race, based on historical data, in order to determine the most appropriate basis for recognising revenue. Revenue is recognised in the accounts in line with the pattern of the costs incurred by the company relative to the period of each race on the following basis:
In the year of the race 65% of contracted income
One year before the race 25% of contracted income
Two years before the race 5% of contracted income
Three years before the race 5% of contracted income
Where payment is only received two years in advance of a race, 10% is recognised in that year.

Employees

The average number of employees, including directors, during the year was 7 (2021 - 8).
During the year 1 person was made redundant, the redundancy payment included within wages and salaries totalled £9,634 (2021: 4 people, £33,478).

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TALL SHIPS RACES INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

5.	Debtors: Amounts falling due within one year

					2022	2021
					£	£


Trade debtors	72,567	222,615
Amounts owed by group undertakings	7,143	6,077
Other debtors	5,518	15,719
Prepayments and accrued income	40,710	12,492
	125,938	256,903

6.	Cash and cash equivalents
		2022	2021
		£	£

	Cash at bank and in hand	1,341,523	1,085,269

7.	Creditors: Amounts falling due within one year
		2022	2021
		£	£

Trade creditors	50,639	25,625
Corporation tax	7,889	-
Other taxation and social security	-	26,822
Other creditors	3,554	-
Accruals and deferred income	613,465	848,720
	675,547	901,167

8.	Creditors: Amounts falling due after more than one year
		2022	2021
		£	£

	Deferred income	675,393	425,400

Page 6

TALL SHIPS RACES INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

9.	Share capital
		2022	2021
		£	£

Allotted, called up and fully paid

1 (2021 - 1) Ordinary share of £1.00	1	1

10.	Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £20,637 (2021: £31,441). There were no outstanding contributions (2021: £Nil) payable to the fund at the balance sheet date.

11.

Related party transactions

The Company is exempt from disclosing related party transactions with other 100% owned members of the group headed by Sail Training International by virtue of FRS102 section 33.1A.
At the balance sheet date the Company was owed by Sail Training International £7,143 (2021: £6,077). This is detailed in note 7.

During the year the company recharged costs incurred on behalf of Sail Training International totalling £52,029 (2021: £113,540).
During the year costs totalling £27,420 (2021: £71,227) were recharged to the company from Sail Training International.

12.	Controlling party

The Company is a wholly owned subsidiary of Sail Training International, a company registered in England and Wales and a Charity registered with the Charity Commission.
The parent of both the smallest and largest group for which group accounts including the Company are prepared is Sail Training International, which is the ultimate parent company. The financial statements for the parent are available from Charles House, Gosport Marina, Mumby Road, Gosport, Hampshire, PO12 1AH.

13.	Auditors' information

The auditors' report on the financial statements for the year ended 31 March 2022 was unqualified.

The audit report was signed on 7 October 2022 by Michael Bath BSc FCA DChA (Senior Statutory Auditor) on behalf of James Cowper Kreston.

Page 7