Hampshire & Isle of Wight Wildlife Trust

Hampshire and Isle of Wight Wildlife Trust Annual Report 2017/18 www.hiwwt.org.uk Protecting wildlife, inspiring people Contents

Our Year in Numbers 2 Financial Review 2017/18 20 Foreword from the Chairman 3 Report of the Independent Auditors 26 Overview from the Chief Executive 4 Financial Statements 29 Our Impact 6 Charity Information 52 Looking Ahead 16 Structure and Governance 52 Building Resilience 18 Our People 54

Our year in numbers

23,866 members £432,246 received (2017: 24,561) from gifts in wills allowing us to invest in future conservation priorities (2017: £126,613) 1,500 volunteers (2017: 1,400) 45,533 hours given by our volunteers, equivalent to 82 employees (2017: 76) 6,504 days or 30 members of staff (2017: 44,228 hours) £££ £4,830,089 total income (2017: £4,189,290) 4,411 hectares in Hampshire and the Isle of Wight are directly managed by the Trust (2017: 4,384) £2,495,622 spent on conservation (2017: £2,378,366)

380 cattle and 267 sheep £558,326 spent on enable conservation grazing education and engagement on the land we manage activities (2017: £577,086) (2017: 377 cattle, 181 sheep)

Cover photo: Marsh fritillary butterfly © Mike Read / www.mikeread.co.uk

2 Foreword from the Chairman I am delighted to Importantly, we are a membership organisation report that the Trust grounded in local support. Last year did see a had a very good small drop in Trust members but we have started year. to address this. I am confident that the number of supporters will increase significantly in the Most importantly, near future, as more people recognise the vital we continued to importance of the natural environment and the focus on delivering role that the Trust plays in championing and tangible benefits for protecting wildlife locally. wildlife. We secured a further two nature reserves at St Clair’s I am confident that the Meadow in Soberton and Fishlake Meadows in number of supporters Romsey. St Clair’s Meadow is the Trust’s first nature reserve in the Meon Valley and I hope it will increase significantly will be a springboard for further conservation in the near future, as more work through the valley in the coming years. The future for Fishlake Meadows looks bright as we people recognise the vital discover the extent of its wildlife treasures — importance of the especially its spectacular birdlife — and make plans to help people enjoy it without disturbing natural environment. its special wildness. Essential to all our achievements is finance, of Never has the need to stand up for wildlife and course. I am especially pleased that a number take action been as evident. Across the world, of wildlife enthusiasts generously remembered we are witnessing devastating declines in our the Trust in their wills this year. This vital legacy wildlife, illustrated by a 75% drop in insects income gives the Trust flexibility to invest in new reported across German nature reserves, a land, or to increase our public engagement and dramatic fall in the number of French farmland strategic campaigning work to help improve birds recorded and data showing that a fifth of conditions for wildlife and bring about nature’s Britain’s wild mammals are at risk of extinction. recovery. This year people also woke up to the dangers faced by our marine wildlife. These are very Many thanks for your continued support. significant challenges that we must all address, both globally and locally. We are encouraged by the UK Government’s long-term vision for our natural world, as presented in its 25 Year Plan for the Environment. It will be part of our role in the coming years to make sure that this ambition is David Jordan OBE realised across Hampshire and the Isle of Wight. Chairman

3 Your Wildlife Trust Overview from the Chief Executive

It feels like the tide go-to organisation for anyone wishing to play is beginning to turn. their part in nature’s recovery. Although wildlife is still in steep decline In towns and cities too, people recognise and and despite the huge value their local patch of urban wildlife. I am uncertainties we especially proud of our award-winning Milton face as we leave the Locks project which connected with 1,300 European Union, I am school children and 500 local residents this year, optimistic. bringing nature into people’s everyday lives. This tiny coastal haven in the heart of Portsmouth The Trust’s staff and has shown what can be achieved with a bit of volunteers constantly imagination and a lot of passion. inspire and amaze me. With limited resources we achieve an incredible amount. We are slowly but Our belief in people power is buoyed by the surely changing the fortunes of wildlife on our reaction to the Blue Planet televison series. The nature reserves and through a variety of projects. images of plastic pollution in our oceans have been a vital catalyst for change. More and more One of my favourite success stories this year people are becoming angry about the damage is the reintroduction of the marsh fritillary. A being done to our wildlife and are ready to stand beautiful butterfly of damp tussocky meadows, up and fight for the natural world. it sadly became extinct from North Hampshire around 20 years ago. Thanks to a dedicated With the backing of our members and partnership effort between the Trust and Butterfly supporters, we have pressed the case for more Conservation, we have reintroduced this missing Marine Conservation Zones. Whilst there is still species to its former wet heathy haunts. It will resistance from some quarters, there is growing take some time for the population to build again, awareness that our marine environment is in but the early signs are very encouraging. trouble and we need to work together to turn the tide. Our Secrets of the Solent project will offer We know that wildlife needs more space, exciting new opportunities to collaborate with and our conservation strategy is based on the those who rely on the oceans for their livelihoods principle of creating bigger, better and more and to positively channel the rising public support joined up places for nature. We continue to for our seas. acquire new nature reserves and this year I am especially pleased that we have introduced two In the coming year the Trust will be thinking truly wonderful sites into our care. about our strategy to 2030. We will be setting out how we must strive to tip the balance in nature’s Across the countryside, farmers and landowners favour and build a movement for change. I very are coming to the Trust to discuss ways in which much hope you will be part of this. they can help wildlife on their land — whether this is incorporating small changes into their business or something far more ambitious, such

as rewilding. The Trust’s solid track record in delivering exemplary land management, together with our well-respected advice and ecological Deborah Tann services, mean we are rapidly becoming the Chief Executive Common tern © Mike Read / www.mikeread.co.uk Read Common tern © Mike

4 The Trust’s solid track record in delivering exemplary land management means we are rapidly becoming the go-to organisation for anyone wishing to play their part in nature’s recovery.

5 6 Standing upfor wildlife Impact Our for someyears. we have been pushingfor andworking towards Wildlife Trusts’ visionofLivingLandscapesthat Network acrosstheUKclearlyreflects The The commitmenttobuildaNature Recovery Trust movement exerts atthenationallevel. demonstrates theinfluencethatour Wildlife Environment, 2018, publishedinJanuary The Government’s 25 Year Planfor the respectively. and thenationalBluePrint for Water proposals, Marine Vision, The Way Back toLivingSeas, had adirectroleininfluencing The Wildlife Trusts’ Trust staff members, Tim Ferrero and Ali Morse, shape responsestogovernment consultations. reality, sowe have fed inourexpertise tohelp It isessentialthatnationalpolicyreflectslocal for Local Wildlife Siteswithinplanningpolicy. the Wildlife Trusts’ protections calltomaintain peoplebackedAcross theUK,morethan25,000 upforthe widerpublictostand wildlife withus. developed by encouragingourmembersand local voice isheardasnew nationalpoliciesare law. We areworking hardtoensurethatour andenhanceenvironmental the UKtomaintain and otherorganisationstomake thecasefor This year we joinedforces withall Wildlife Trusts campaigns. opinion andsecuringsupportthroughour challenging proposalsorshapingwiderpublic this isinfluencingpolicyanddecisionmakers, outcomes for ournatural environment, whether and evidence we mustpushfor thebest champion for localwildlife. Usingourknowledge thatthe It isvital Trust plays itspartasavocal protections, policies andfundingschemes. environment —rewriting legislative and negotiates anew settlement for the as theUKleaves theEuropean Union The stakes are extremely high for wildlife help bringthisspeciesback fromthebrink. order toinfluencenational andlocalpolicy Valley. This long-term evidence isessentialin water vole reintroductionprojectintheMeon and reintroductioninitiatives, includingarecent highlighting key areasforrestoration habitat The informed data water vole by conservation same period. picture issimilarwitha32%declineover the and2015.between 2006 InHampshirethe declined indistributionby analarming30% that water voles inEnglandand Wales have McGuire andpublishedinearly2018, revealed The latestanalysis, completedby Catherine distribution maps. vole recordsandanalysing themtocreatethe the projectandwas taskedwithcollectingwater mink. Ourecologyteamwas asked todeliver showing thedistributionofbothwater vole and withtheaimofcreatingaccuratemaps in 2008, andMappingProjectDatabase was established voles acrosstheUK. The National Water Vole by minkhasledtotherapiddeclineofwater Since the1950s, lossandpredation habitat water vole conservation Our central role innationwide change throughpolicy, practiceorbehaviour. evidence, experience andtrust inordertoeffect ongoing effort over many years —building Much ofourwork islong-termand requires connections betweenthem. sites like nature buttheall-important reserves, new developments avoid notonlysensitive will inform planningdecisionstoensurethat our twocounties. This robustevidence base outlining wherenature isorneedstobein Network Mapsfor ourtwocounties— Nature Partnership, todevelop Ecological Locally, we have ledwork, aspartofthe Local

Water vole © Terry Whittaker / 2020VISION 30% 13 local authorities 25,639 reduction in supported the people backed water vole development of The Wildlife distribution Ecological Network Trusts’ campaign revealed by Maps for Hampshire to protect Local our research and the Isle of Wight Wildlife Sites

7 1,000 7 community 23,866 sites in the Solent catchment groups will members stand area surveyed be established through up for local to ensure better the ‘Watercress wildlife and make protection for and Winterbournes’ our work possible coastal birds partnership project (2017: 24,561)

8 River Itchen at Ovington © Linda Pitkin / 2020VISION fully updatedby theendof2019. 2018/19 winterperiod andthestrategywillbe Survey work willcontinuethroughoutthe exploit thenutritiouscropsorgrasslandpresent. sites such asarablelandandplaying fieldsto birdsalsolikebut theoverwintering touseother Marshes nature arealreadyprotected reserve, birds. Many areasused,such asour Farlington and mapsoftheareasusedby ourcoastal information consulteeswithvital and statutory inland sites. The newwillprovide data councils howbirdsmoveunderstanding coastal between Current surveywork isfocused on Solent. differentrecords from1,000 sitesacrossthe years ofsurveying—includingover 15,000 survey workfromnearly20 andcollatingdata they areused. This involved updatingprevious andidentifyinghowneed inordertosurvive the networkofsitesthatthesebirdpopulations lead, ledtheupdatetostrategy, mapping Ecology teamand Trevor Codlin,ourplanning This year Deborah Whitfield fromour Arcadian policy. Wildlife Sitesandprotectedthroughplanning has ledtomany areasbeingdesignatedasLocal consultees.It border thecoast,andstatutory has beensupportedby alllocalauthoritiesthat protected. Over thepast15 years, thestrategy that thenetworkofsitesusedby thesebirdsis findings helptoguidedevelopment decisionsso birds.Its for coastal important overwintering area,yetthe highlyprotectedcoastal arestill identify sitesintheSolentthatlieoutside thestrategyaimsto First publishedin2002, Strategy. to ourinfluentialSolent Wader andBrentGoose step thisyear aswe preparedamajorupdate birdstookanimportant coastal overwintering the Solent’s populationsof criticallyimportant Our work attheforefront ofefforts toconserve Strategy Solent Waders andBrent Goose communities over thenext tenyears. deliver significantimprovements for rivers and pound investment, working withourpartnersto coordinating andfacilitatingthismulti-million The Trust willnow playrolein animportant and protecttherivers andtheircatchments. and the Test andinvest inmeasurestorestore to reduceabstractionlevels fromtheItchen reached alandmarkagreementwithregulators significantly, was adjournedwhenthecompany Ali MorseandBen Rushbrook contributed into Southern Water’s licences,towhich both management intheItchen. A publicinquiry term efforts tosecurebetter water resource This year alsosaw theculminationoflong- long-term behaviour change. onthegroundandfocusingto leaddelivery on and setting catchment upcommunity groups and empowerment —working withlocalpeople approach engagement community tosustainable which isnow underway. HLFbacked thefresh awarded for £269,400 thedevelopment phase, the ‘Watercress and Winterbournes’ projectwas restore theheadwaters oftheserivers. In2017, innovative landscapepartnershipprojecttohelp Lotteryto theHeritage Fund (HLF)for an Boler developedKathryn asuccessfulapplication Itchen Catchment partnership, Ali Morseand Working withorganisationsthroughthe Test and lead collaborative initiatives. that the Trust isrespectedandwell-placed to with ourtechnical andpolicyexpertise, means improve andprotectspecies,together habitat to delivering interventions successfultargeted chalkimportant rivers. Ourtrack recordof championing andrestoringourinternationally The Trust hasalways played akey rolein Championing ourchalk rivers 9 Our Impact Making space for wildlife

Wildlife needs more space. If we are to The 60-hectare wetland was secured as a nature work towards nature’s recovery, it is vital reserve as part of the planning agreement for a that we expand and connect the spaces residential development on the eastern side of where wildlife can thrive. the reserve. The site will now be protected and carefully managed by the Trust to ensure its wild We have nearly doubled the land in our care over character is maintained and its value for wildlife is the past decade and today we look after more increased. than 50 nature reserves and other land, covering Our first steps have been to improve physical 4,411 hectares in our two counties. and visual access to parts of the reserve as well The Trust has worked hard to secure strategically as undertake ecological surveys to strengthen important sites. This year, two new nature our knowledge of the site. Our reserves officers, reserves came into the Trust’s estate — one as a Bob Chapman and Jo Armson, have secured the result of years of negotiation through the planning support of the local community, with a dedicated system and the other a rapid purchase supported team of volunteers helping to get conservation by the local community and external funders. work off the ground. We are developing ambitious plans to enhance the nature reserve for the Our nature reserves are precious wildlife havens, benefit of both wildlife and visitors. but alone they are not enough to ensure wildlife can survive and flourish. The wider landscape can be unwelcoming to wildlife. Intensive agriculture, St Clair’s Meadow urban environments, busy roads and railways can all present barriers for wildlife trying to move With a £300,000 grant from Biffa Award and between suitable spaces. the generous support of the Pig Shed Trust and the local community, we purchased St Clair’s Through our growing consultancy — Arcadian Meadow in Soberton in October 2017. This Ecology — and a range of partnership projects, 16-hectare historic water meadow represented we are working with other organisations and our first acquisition on the River Meon, one of landowners to join the dots — restoring, Hampshire’s internationally important chalk rivers. recreating and reconnecting isolated habitats. Together we are building a growing Nature St Clair’s Meadow is frequented by traditional Recovery Network. wetland and water meadow species including kingfisher, otter and a large number of butterfly and dragonfly species. In recent years the site Fishlake Meadows has also become home to water voles, following In July 2017 we took on the management of the Meon Valley reintroduction partnership project Fishlake Meadows nature reserve in Romsey, supported by the Trust, which has established thanks to long-term work with Test Valley Borough a thriving water vole population along the river Council. Having once been drained for agriculture, valley. the site was left untouched for many years and Already much-loved by the local community, we has become a rich area of wetland habitat, a secured the site for both wildlife and people to unique environment within our river valleys. enjoy. We look forward to working with local Fishlake Meadows supports up to 175 species residents in the months and years to come, to of bird, as well as 24 dragonfly and damselfly look after and enhance this wildlife haven. species and a wide variety of plants. Heron at Fishlake Meadows © Roger Betteridge © Roger Meadows Heron at Fishlake

10 2 new nature 4,411 175 reserves secured hectares in the different species this year, bringing two counties are of bird recorded at our total number managed by the Fishlake Meadows of reserves to 53 Trust (2017: 4,384) nature reserve

11 Ten years of working with the Ministry of Defence The Trust began working in partnership with the Ministry of Defence (MOD) in 2007, helping to look after a number of sites that make up military training grounds in the north of Hampshire. This impressive landscape, which covers over 2,500 hectares, contains a diverse mix of heathland, wetland and grassland habitats that are home to internationally important birds such as Dartford warbler as well as green tiger beetle, small red damselfly and exceptionally rare plants like ivy-leaved bellflower. The strong, collaborative relationship with the MOD and their appreciation of our aims has meant that we have been able to navigate the logistical complications of conservation within an active army training environment. Cattle graze the large tracts of land and our team, led initially by Elliott Fairs and more recently David Boddy, undertake targeted conservation work each year to enhance habitats for sensitive species, such as the silver-studded blue butterfly, which depends on low-growing heathland. We restored seven hectares of Hawley Common this winter to improve conditions for the nationally scarce plant, marsh clubmoss. Our conservation efforts have also created an ideal habitat for breeding woodlark in the Thames Basin Heaths Special Protection Area. This year we have also taken the first steps to reintroduce the marsh fritillary butterfly to an area on the MOD estate. The reintroduction programme is a partnership between the Trust, Butterfly Conservation and the Hampshire Marsh Fritillary Action Group, and has the full support of the MOD.

10 years in 60% 21 farm partnership with of the Isle of businesses took the MOD in north Wight’s farmland part in a pesticide Hampshire to covered by our amnesty in the improve heathland land advice River Loddon catchment area

Army cadets at Caesar’s Camp © Paul Harris / 2020VISION

12 Isle of Wight wetland restoration different habitats across the landscape, giving wildlife the space it needs. As a partner in the ‘Down to the Coast’ project supported by the Heritage Lottery Fund (HLF), This year the Trust and Arcadian Ecology have we are working with landowners, conservation increased their reach significantly. Working with organisations and others to restore over 30 a group of 19 farmers in the Wallop Brook area, hectares of wetland on the Isle of Wight. near Broughton in Hampshire, Alison Cross secured Facilitation Funding from Defra to enable The Eastern Yar valley contains some of the improvements at a landscape scale. This will deepest peat beds in southern England, some involve monitoring, advice, practical action and of which have preserved archaeological relics. facilitating the sharing of skills and expertise. It is also an important area for wildlife including kingfisher, water vole, marsh cinquefoil, Cetti’s Through the Loddon Farm Advice Project, funded warbler, cuckoo and barn owl. by Affinity Water, Catchment Sensitive Farming and South East Water, Amanda Ingham has This year we have completed substantial wetland worked with 40 landowners across the River restoration at a number of sites including the Isle Loddon catchment area this year, providing of Wight Donkey Sanctuary, Alverstone Marsh advice to help reduce the risk of diffuse water Site of Special Scientific Interest (SSSI) and on pollution from agriculture. A pesticide amnesty our estate at Sandown Meadows. Led by Jamie gave farmers the opportunity to dispose of Marsh and Steve Egerton-Read and supported unwanted pesticides safely, anonymously and by volunteers, the team removed scrub, such as free of charge. 21 farm businesses signed up tree saplings and brambles, and enhanced the to the amnesty and we collected over 250 riverbanks. Combined with light grazing by cattle separate products, removing just under a tonne this will enable wildflowers and wetland plants to of chemicals from the catchment. flourish. Approximately two thirds of the Isle of Wight is Thanks to the support of HLF, we acquired agricultural land and over the past 10 years our Morton Marsh near Adgestone last year. This Land Advisor, Lucy Temple, has given advice area added a further 10 hectares to our Sandown to over 200 farms covering an area of 15,348 Meadows nature reserve. This final piece in the hectares — that is approximately 60% of the jigsaw of the River Yar means there is now an Island’s farmland. Our advice has led to a network unbroken 8km stretch from Bembridge Harbour of buffer strips, hedgerows and field corners, to Alverstone managed for wildlife. It marked an providing valuable habitat and food sources for important step in our mission to create a Living wildlife including farmland birds, mammals such Landscape on the Isle of Wight — creating rich, as brown hare, and invertebrates. In November connected habitats where wildlife can thrive. 2017, Lucy’s efforts were recognised with an award presented by the National Farmers’ Union. Changing the nature of farming We hope that the shape of agricultural subsidies in the future will offer even greater opportunities It is essential that agricultural land is part of our to work with landowners to create space that is Nature Recovery Network, offering connections beneficial for wildlife, as well as providing wider between nature reserves, gardens and other public and economic benefits. wild spaces. Intensive farming can exacerbate the challenges for wildlife but fortunately there are many farmers who are committed to creating space for nature as an integral part of their farm business. The Trust plays an important role in guiding individuals and groups of farmers to create and enhance habitats on their land, improve soil quality and find alternative methods of production. This helps to form a mosaic of

13 Our Impact Bringing people closer to nature

We know that many people are increasingly Forest District Council, these OFSTED-registered disconnected from the natural world. The sessions are now led by Jim Day, one of the number of children who regularly visit any Trust’s Education Officers, and their popularity green space has halved in a generation, and has risen rapidly. Sixteen separate Wild Days the pressures of work and family mean that Out were held during the year. There was repeat many adults rarely find time to appreciate attendance with 250 places filled by 118 children. the wealth of wildlife on their doorstep. The tailored sessions for 7 to 12 year-olds and 5 This is not only detrimental to individual health to 8 year-olds give children a memorable day of and wellbeing, but it also means that future wild play and adventure, exploring all that nature generations may not value, care about or act to has to offer. The activities — including wood support the natural environment. Inspiring people crafts, a campfire ‘bake-off’, a bio-blitz and a river to love wildlife is central to our work and we snorkel — offer opportunities for young people to do all we can to engage local communities and challenge themselves and build confidence within a fun and safe environment. encourage curiosity and interest in the natural world. This year we have built upon the range of Nature Therapy events offered at our education centres, sought We worked with Winchester Youth Counselling ways to expand our education work in schools to trial six ‘Nature Therapy’ sessions for young and supported our Wildlife Watch and Tots people currently attending or on a waiting list for programmes. Throughout the year, we offered counselling. The weekly after-school sessions, led 17,250 opportunities for children to learn about by Susan Simmonds, involve activities such as local wildlife through our events and activities. stream dipping and cooking over a campfire. More than 1,700 local people and their families Six youngsters aged between 11 and 14 attended took part in our 30 Days Wild challenge this the sessions. As the weeks progressed, June — an 80% increase on the previous year. counselling professionals noted that the children Hundreds more attended walks, talks and were more relaxed, talkative and trusting of each events hosted by the Trust or organised by our other. All six participants gave the sessions 5 out volunteer-led Local Groups. of 5 in their final evaluation and stated that their wellbeing had improved and the sessions had We are very fortunate to have the support and been helpful. commitment of 1,500 volunteers who have contributed 45,533 hours to the Trust this year Following the nature therapy sessions, at alone, helping with everything from looking after least two children no longer needed to access our cattle to assisting us in the office. counselling services as professionals and carers felt that their mental well-being had significantly improved. Wild Days Out Based on the success of the pilot, two further Our Wild Days Out programme, held during six-week Nature Therapy programmes have school holidays at Blashford Lakes near been delivered. We will soon be piloting a new Ringwood, has gone from strength to strength. programme with 14 to 17 year-olds as well as Originally a partnership initiative with New lunch time sessions for 18 to 25 year-olds.

14 Revealing the secrets of our seas Our work to highlight the importance of marine wildlife attracted the national spotlight as Portsmouth was chosen to host a mural of a cuttlefish by renowned street artist ATM. Portsmouth City Council agreed to host the artwork on a City Museum building on a busy street, offering the urban community a new way of engaging with just one of the special species that lives in their local seas. The unveiling of the finished mural coincided with The Wildlife Trusts’ National Marine Week, and was accompanied by a marine-themed family fun day hosted by the Council at the City Museum. The artwork captured the imagination of the local community and national media alike. It also brought further interest to our Secrets of the Solent project, which entered the final stages of its development year. A successful fundraising appeal raised over £35,000. This included £15,000 from our very first Crowdfunder appeal, which attracted new supporters inspired about our plans to protect our seas, as well as support from existing members and partners. The funding raised was the key to unlocking a further £640,300 from the Heritage Lottery Fund. Over the coming four years we will use the funding and groundswell of support to develop a range of projects to help more people appreciate, understand and protect the Solent and the wildlife and heritage within.

45,533 1,732 17,250 hours given by people in our two opportunities for our volunteers, counties took part children to learn equivalent to 30 in our 30 Days about local wildlife members of staff Wild challenge provided this year (2017: 44,228) (2017: 962) (2017: 17,000)

Searching for meadow minibeasts © Jon Hawkins / Surrey Hills Photography

15 Looking Ahead Delivering our vision

In the year ahead, the Trust will be considering a new strategic plan and a refreshed vision to take us forward to 2030. Our long-term purpose remains unchanged — we exist to protect wildlife and to help bring about nature’s recovery, reversing species declines and creating more space for nature across Hampshire and the Isle of Wight. In parallel, we aim to connect as many people with nature as possible, inspiring others to take action for wildlife. Whilst our ambition remains steady, the way in which we achieve our aims will need to evolve and adapt to the changing framework of policy, legislation and funding. Our plans for the year ahead are, in part, focused on considering options for the future. We will reflect on what the evidence tells us about the state of nature locally, look at the Trust’s successes and consider where we could do more. Above all, we will talk to our members, supporters and partners and reach out to new organisations and individuals to help us develop an effective and inspiring vision and plan for the future, which puts wildlife at its heart and which delivers benefits for everyone. We will continue to make strategic additions to the Trust’s estate. Whilst we recognise that the Trust alone cannot reverse wildlife declines, the importance of our nature reserves is undeniable in supporting important habitats and a wide variety of species. We will pursue the acquisition of new nature reserves where the opportunity arises, prioritising those that can help us expand, improve and connect spaces for wildlife and help to create a growing Nature Recovery Network across our two counties. We will consider all opportunities to tip the balance in nature’s favour including the potential for rewilding areas or reintroducing missing species. Our grazing operation will be reviewed to address operational risks and build greater resilience to ensure that we achieve our conservation aims through appropriate grazing of our nature reserves and other land. We will further develop our trading company, Arcadian Ecology, looking for opportunities to offer high quality consultancy and professional services to more people or in new ways, such as carbon sequestration schemes.

Robin © Mike Read / www.mikeread.co.uk

16 It is vital that we continue to expand our work with farmers and landowners outside our estate, helping them to improve their land for wildlife. We will work together to explore new approaches and opportunities presented by an altered agricultural subsidy scheme. Collaboration is key to achieving our long- term goals. We will work hard to develop and deliver effective partnership projects. During the coming year, we will build community ownership and develop targeted plans to improve the headwaters of the Test and Itchen rivers, culminating in the delivery of a successful second stage application to the Heritage Lottery Fund. We will also ensure that our marine project, Secrets of the Solent, capitalises on the wave of public support and the vital partnerships that were built during the development phase. In order to extend our reach to people in urban communities, we will join forces with other organisations to explore new ways to engage people with the natural environment. We aim to develop services that improve people’s health and wellbeing and deliver tangible benefits for wildlife. Above: Wild Day Out at Blashford Lakes © Paul Gonella As we look to the future, we plan to use more Below: Cuttlefish mural by ATM © Paul Gonella digital techniques to reach interested individuals and expand the ways in which people can Wildlife Trusts and the Greener UK coalition of support the Trust. We will continue building our environmental organisations, we will push for relationships with individual donors and also with an Environment Act and mobilise local people to our statutory, charitable and corporate partners. support our calls. Growing our membership will remain a priority, along with increasing promotion of legacy Our focus will also be on translating giving as a powerful way for people to make a the Government’s 25-year Plan for the significant difference for wildlife. Environment into tangible local policy commitments and action — shaping a long-term Our response to the UK withdrawing from strategy for nature’s recovery with our partners. the European Union will involve proactively We will uphold our important role in influencing campaigning for the most ambitious marine policy and continue to push for greater legislative and policy settlement for the protections for our local seas through the environment. Through liaison with other designation of Marine Conservation Zones.

17 Building Resilience Managing Risk

In order to buffer against the current funding risks and uncertainties associated with Brexit and to increase our financial resilience, we will continue to focus on fundraising and increasing membership. Last year we undertook a review of our fundraising activities which helped us to hone our priorities and invest in building voluntary income streams. Our investment in South West Wildlife Fundraising Limited (SWWFL) was a prudent decision to help manage risk as well as provide a more effective vehicle for recruiting new members. Having seen a concerning decline in membership over the past couple of years, we are now beginning to see positive results. SWWFL’s face-to-face recruitment team are on track to deliver membership growth for the year ahead. Our supporters are at the heart of everything we achieve and our commitment to fundraising in a responsible way is as strong as ever. We want giving to the Trust to be a rewarding experience and for all of our supporters to receive a friendly, approachable and professional response to any contact with the Trust. We are focussing more on supporter care and ensuring that we offer members a variety of opportunities that they value, such as exclusive events and insights into the work of the Trust. The Trust is registered with the Fundraising Regulator and follows its Code of Conduct. Our considerate approach is reflected in the low levels of negative feedback and complaints we receive. In 2017 we received two complaints, which related to administrative requests. In the coming year we will establish a Fundraising Committee with Trustee involvement, to ensure that there are the highest standards of governance and oversight for our fundraising activity. The Trustees and Senior Executive Team, through the Business and Finance Committee, closely monitor the Trust’s finances. To manage the uncertainty surrounding the long-term future of agri-environment income, a designated fund was established last year to help to buffer against any short-term gaps in funding for managing the Trust’s estate. Longer-term, we are investing in developing additional sources of income including potential commercial activities, to help finance the management of the Trust‘s nature reserves where needed. The General Data Protection Regulation (GDPR) came into effect in May 2018. During the year, an internal working group

Conservation volunteer © Lianne de Mello

18 was set up to ensure the Trust was prepared for these new rules. We audited the personal data held by the Trust and other agencies that we work with; we also reviewed all relevant systems and processes, putting in place new policies and procedures where required and rolling out training for all staff. We have communicated clearly with our members, letting them know that they will continue to receive information by telephone and post, including the regular members’ magazine. We have also asked for consent from our supporters to receive email communications. We continue to monitor, identify and actively manage any risk in relation to data protection, to ensure that we are safeguarding individuals’ data and protecting the Trust. We worked closely with our IT providers to review IT security, particularly in relation to GDPR but also to ensure the Trust operates as an efficient business. A number of improvements to IT were made in the year and this continues to be a priority. Staff are one of the most important resources that the Trust has, and there has been a focus on Human Resources (HR) in the past year. A major exercise to review, update and refresh Above: School visit to Blashford Lakes © Rex Waygood employment contracts, policies and procedures Below: St Clair’s Meadow © HIWWT was undertaken. The HR and Remuneration Committee continues to review key HR metrics, staff salaries and benefits, and any disparities between genders. We will ensure that our staff have the training and support they need to enable the charity to deliver its purpose as effectively as possible. The Trust takes its obligation to protect others very seriously. This year, we began a full review of our Safeguarding policies and procedures to ensure that all staff and volunteers are able to uphold our duty of care, including protecting children and vulnerable adults.

19 Financial Review

The Trust had another positive year, with a net surplus in unrestricted funds for the second year in a row. Whilst funding remains a challenge, the loyal support of our members, our focused business plan and robust financial management are all helping to move us in the right direction.

The overall surplus for the year to March 2018 was £751,609 (including unrealised investments loss of £7,783); this compares favourably with the previous year to March 2017 which was a surplus of £549,966. Importantly, this surplus was used to further our charitable objectives through acquiring new sites, significantly adding to the amount of conservation land in our care.

Looking first at unrestricted funding, this grew by £113,964 which is an increase of 3% compared with the previous year. This includes increased income from commercial activities, membership and conservation. We also received £432,246 from legacies which has been put into designated funds for future investment in our work.

Turning to restricted funding (income from grants and for specific projects), we saw a rise of £526,835 (72%) compared with the previous year. Of this, £360,000 was received against the purchase of St Clair’s Meadow. The growth in restricted funding is welcome although the longer-term trend in restricted income still shows a reduction when compared with the position five years ago.

The Trust’s freehold buildings were revalued in the previous year’s accounts and this year remained at the same level. The acquisition of St Clair’s Meadow added a further £350,000 to the listing of Freehold Heritage Assets held by the Trust, bringing the total held to 921 hectares at a value of £1,937,710. These values are reflected in the balance sheet, Restricted Funds and the General Fund.

The next few years will remain challenging. The uncertain economic climate, changes in the fundraising environment and the ramifications of Brexit will all impact on the Trust’s resources. We continue to work on building our unrestricted income and remain focused on covering our operating costs to ensure the organisation has a sustainable future. The increasing competition for grants and the growing constraints on public sector resources means that restricted funds can be difficult to secure.

Our overall financial strategy has not changed — our focus is on building medium to long-term growth in income, whilst continuing to ensure the sustainability of our expenditure in the shorter-term. We are investing in strategic capacity to build unrestricted income through new commercial activities as well as more traditional sources of charitable fundraising. Unrestricted income provides the greatest flexibility to respond to external challenges and allows the Trust to allocate funding to where the need is greatest.

Bumblebee © Jon Hawkins / Surrey Hills Photography

20 Income Trends 2013-2018

£6,000,000

£5,000,000

£4,000,000

£3,000,000

£2,000,000

£1,000,000

£0 2013-14 2014-15 2015-16 2016-17 2017-18 Unrestricted income Restricted income Total income

Analysis of Income and Expenditure between 2013-2018

£6,000,000

£5,000,000

£4,000,000

£3,000,000

£2,000,000

£1,000,000

£0 2013-14 2014-15 2015-16 2016-17 2017-18

Total income Total expenditure

21 Income Analysis 2017/18

Total incoming resources for the year increased by 15% compared with the previous year at £4,830,089 (2017: £4,189,290).

Unrestricted income increased by 3% to £3,567,526 (2017: £3,453,562), mainly due to increased unrestricted legacy income and the donation from the Trust’s trading company.

Although membership numbers were slightly down, there was a small increase in membership income during the year of 1.4% to £1,059,652 (2017: £1,044,842), which has been helped by our investment in part-ownership of South West Wildlife Fundraising Limited (SWWFL) from May 2017. SWWFL is a subsidiary company owned by eight Wildlife Trusts, including Hampshire and Isle of Wight Wildlife Trust, and concentrates wholly on increasing membership for its owning Trusts. The initial cost of this investment was a loan of £11,000 to SWWFL which was repaid in June 2018. There is an annual service charge and commission payments for each new member recruited which are broadly comparable to costs previously spent by the Trust. By working collaboratively with other Wildlife Trusts through SWWFL we will benefit from greater efficiencies as well as the sharing of risk, skills and experience. This new venture has proved very positive and will continue to help the Trust to reach more people and rebuild membership growth.

Legacy income increased from £126,613 in 2016/17 to £432,246. This is an unpredictable but very important source of income which we hope to grow as part of a revamped legacy marketing programme in the coming year.

In its second year of trading Arcadian Ecology generated a profit of £78,779 (2017: £34,537), a significant increase since last year. The profit was gifted to the Trust as a deed of covenant and is classed as unrestricted income.

Restricted income took an upward turn during the year, increasing to £1,262,563 (2017: £735,728). Several new projects began in the year, each bringing new sources of grant funding, but the main increase was a grant of £300,000 and donations of £60,000 for the purchase of land at St Clair’s Meadow.

Expenditure Analysis 2017/18

Total expenditure for the year was £4,070,697, an increase of 9% compared with the previous year (2017: £3,741,591). This is due in part to the increased cost of membership recruitment but which is offset by an increase in membership income. We also increased conservation activity costs as a result of new projects including delivering capital works on sites such as Barton Meadows and Fishlake Meadows.

Expenditure on delivering charitable activities (conservation, education and membership services) was £3,554,346 (2017: £3,164,712), representing 87% of the total resources expended (2017: 85%).

Hare © Andrew Parkinson / 2020VISION

22 Total expenditure includes support costs of £811,610 (2017: £841,543) which include finance, HR, IT, facilities and governance costs. These costs are allocated proportionally across all activities depending on staff numbers. The governance costs include audit fees and staff costs allocated to governance activities and continue to represent 2% of our total expenditure.

Also included in the total expenditure is the annual contribution we make to the Royal Society of Wildlife Trusts (£63,610), which funds the work they do on behalf of The Wildlife Trusts across the UK.

Total staff costs were £2,377,282 (2017: £2,184,546) which equates to a 8.8% increase. This includes an annual pay increase of 2% for staff along with the creation of a number of new roles — either project staff funded by external sources, or staff focusing on income generation — helping to make the Trust a more sustainable organisation in the current financial climate.

Income 2017/18

Investment income Other income Donations 0.83% 0.27% 11.9%

Legacies 9%

Membership income 22% Conservation and Education income 53%

Activities for generating funds 9%

Expenditure 2017/18

Cost of generating voluntary income 12%

Membership services 7%

Education and Engagement activities 14%

Conservation activities 67%

23 Investments

The Trust’s investments are managed by Sarasin and Partners LLP. The portfolio is managed in accordance with our investment strategy and risk profile, which aims to preserve capital value and generate a modest income. The funds are regularly reviewed and screened to ensure that as far as possible the investments are not in conflict with our charitable objectives.

The Trust’s investments show an unrealised loss of £7,783 (2017: unrealised gain of £97,440). This is due to a decrease in value ‘on paper’ from the previous year, though as the funds remain invested the loss has not materialised. Investment income of £35,426 (2017: £34,151) was received during the year.

As at 31 March 2018 the Trust’s investments had a market value of £1,028,586 (2017: £1,036,369).

Financial Reserves

The Trust’s financial reserves are made up of a small permanent endowment fund of £4,508 (2017: £4,508) and a variety of restricted and unrestricted funds, some of which have been designated for a specific purpose and some of which represent the value of various assets.

Total funds as at 31 March 2018 were £8,784,371 (2017: £8,032,762).

Restricted Funds The Trust has a number of restricted funds, where the donor limits the purpose for which the funds can be used. As at 31 March 2018 restricted funds (not including restricted heritage assets) were £185,589 (2017: £223,760). Further details of these funds and the purposes for which they are intended are provided in note 16. The reduction in restricted funds during 2016/17 and 2017/18 was due to planned expenditure on funded projects during the year.

Unrestricted Funds These are funds free from any restrictions and therefore Trustees can decide how the funds are allocated. Unrestricted funds are shown in two types as detailed below:

Designated Funds Some of the Trust’s unrestricted funds have been designated by Trustees to support certain activities such as land management, land acquisition or strategic investment in delivering our business plan. A land management designated fund has been established to cover funding gaps arising from changes to agri-environment schemes. A fund has been established to support strategic business plan investment in crucial areas of fundraising and communications to help build new sources of income and raise our profile. Another fund has been established to support repairs

View of the Solent © Paul Gonella

24 and improvements to the Trust’s freehold buildings to maintain their value. Finally, substantial unrestricted legacies received each year are also designated, allowing Trustees to allocate these funds to land acquisitions or new projects that help deliver our charitable purposes. Designated funds held at 31 March 2018 was £1,350,187 (2017: £979,873). Further details of these funds and the purposes for which they are set aside are provided in note 16.

General Fund The remainder of the Trust’s unrestricted funds are held in a general fund, which as at 31 March 2018 was £5,980,907 (2017: £5,911,441). Of this, £4,586,691 represents unrestricted fixed and heritage assets (2017: £4,645,910).

Free Reserves Free reserves are calculated by deducting unrestricted tangible fixed assets and unrestricted heritage assets from total unrestricted funds (see note 17). The Trust’s Financial Reserves policy is to hold sufficient free reserves to provide working capital and to provide a buffer of liquid funds to cover temporary shortfalls caused by an unforeseen loss of income, cash flow volatility or an unexpected increase in costs or risk exposure. Should any of these circumstances arise, these free reserves are intended to ensure that the Trust can meet its contractual obligations to staff, suppliers, statutory bodies and funding partners.

The Trust’s monthly cash flow is highly variable during the financial year, with the majority of funds being received towards the end of the year or after projects are completed. This means that free reserves are needed to fund the charity’s activities during the year to cover the timing gap between expenditure and income. Cash flow is monitored daily by Trust staff and reviewed quarterly by the Trust’s Business and Finance Committee. Currently, the expected annual cash flow fluctuation is likely to be in the region of £800,000. The current level of free reserves is considered sufficient to mitigate risk.

As at 31 March 2018 the free reserves were £1,394,216 (2017: £1,265,531).

SIGNED ON BEHALF OF COUNCIL on 6 September 2018

Mary Parker Honorary Treasurer

25 Report of the Independent Auditors to the members of Hampshire and Isle of Wight Wildlife Trust

Opinion doubt about the group and parent charitable We have audited the financial statements of company’s ability to continue to adopt the Hampshire and Isle of Wight Wildlife Trust (the going concern basis of accounting for a period ‘parent charitable company’) and its subsidiaries of at least twelve months from the date (the ‘group’) for the year ended 31 March 2018 on when the financial statements are authorised pages 30 to 51. The financial reporting framework for issue. that has been applied in their preparation is applicable law and United Kingdom Accounting Other information Standards (United Kingdom Generally Accepted The trustees are responsible for the other Accounting Practice). information. The other information comprises the information included in the annual report, other In our opinion the financial statements: than the group financial statements and our • give a true and fair view of the state of Report of the Independent Auditors thereon. the group’s and of the parent charitable company’s affairs as at 31 March 2018 and Our opinion on the group financial statements of the group’s incoming resources and does not cover the other information and we do application of resources, including its income not express any form of assurance conclusion and expenditure, for the year then ended; thereon. • have been properly prepared in accordance with United Kingdom Generally Accepted In connection with our audit of the group financial Accounting Practice; and statements, our responsibility is to read the other • have been prepared in accordance with the information and, in doing so, consider whether requirements of the Companies Act 2006. the other information is materially inconsistent with the group financial statements or our Basis for opinion knowledge obtained in the audit or otherwise We conducted our audit in accordance with appears to be materially misstated. If, based on International Standards on Auditing (UK) (ISAs the work we have performed, we conclude that (UK)) and applicable law. Our responsibilities there is a material misstatement of this other under those standards are further described in information, we are required to report that fact. the Auditor’s responsibilities for the audit of the We have nothing to report in this regard. financial statements section of our report. We are independent of the group and charitable company Opinion on other matters prescribed by the in accordance with the ethical requirements that Companies Act 2006 are relevant to our audit of the group financial In our opinion, based on the work undertaken in statements in the UK, including the FRC’s the course of the audit: Ethical Standard, and we have fulfilled our other • the information given in the Report of the ethical responsibilities in accordance with these Trustees for the financial year for which requirements. We believe that the audit evidence the financial statements are prepared we have obtained is sufficient and appropriate to is consistent with the group financial provide a basis for our opinion. statements; and • the Report of the Trustees has been Conclusions relating to going concern prepared in accordance with applicable legal We have nothing to report in respect of the requirements. following matters in relation to which the ISAs (UK) require us to report to you where: Matters on which we are required to report by • the trustees’ use of the going concern basis exception of accounting in the preparation of the group In the light of the knowledge and understanding financial statements is not appropriate; or of the group and the parent charitable company • the trustees have not disclosed in the group and their environment obtained in the course financial statements any identified material of the audit, we have not identified material uncertainties that may cast significant misstatements in the Report of the Trustees.

26 Matters on which we are required to report by Our responsibilities for the audit of the exception financial statements We have nothing to report in respect of the Our objectives are to obtain reasonable following matters where the Companies Act 2006 assurance about whether the group financial requires us to report to you if, in our opinion: statements as a whole are free from material • adequate accounting records have not been misstatement, whether due to fraud or error, and kept by the parent charitable company or to issue a Report of the Independent Auditors returns adequate for our audit have not been that includes our opinion. Reasonable assurance received from branches not visited by us; or is a high level of assurance, but is not a • the parent charitable company financial guarantee that an audit conducted in accordance statements are not in agreement with the with ISAs (UK) will always detect a material accounting records and returns; or misstatement when it exists. Misstatements • certain disclosures of trustees’ remuneration can arise from fraud or error and are considered specified by law are not made; or material if, individually or in the aggregate, they • we have not received all the information and could reasonably be expected to influence the explanations we require for our audit. economic decisions of users taken on the basis of these group financial statements. Responsibilities of trustees As explained more fully in the Statement of A further description of our responsibilities for the Trustees Responsibilities set out on page 52, the audit of the group financial statements is located trustees (who are also the directors of the parent on the Financial Reporting Council’s website at charitable company for the purposes of company www.frc.org.uk/auditorsresponsibilities. This law) are responsible for the preparation of the description forms part of our Report of the group financial statements and for being satisfied Independent Auditors. that they give a true and fair view, and for such internal control as the trustees determine is Use of our report necessary to enable the preparation of group This report is made solely to the charitable financial statements that are free from material company’s members, as a body, in accordance misstatement, whether due to fraud or error. with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so In preparing the group financial statements, that we might state to the charitable company’s the trustees are responsible for assessing the members those matters we are required to group and parent charitable company’s ability state to them in an auditors’ report and for no to continue as a going concern, disclosing, as other purpose. To the fullest extent permitted by applicable, matters related to going concern and law, we do not accept or assume responsibility using the going concern basis of accounting to anyone other than the group and charitable unless the trustees either intend to liquidate the company and the charitable company’s members group and parent charitable company or to cease as a body, for our audit work, for this report, or operations, or have no realistic alternative but to for the opinions we have formed. do so.

P E H Wright ACA DChA (Senior Statutory Auditor) for and on behalf of Sheen Stickland Chartered Accountants Statutory Auditors 7 East Pallant Chichester West Sussex PO19 1TR

Date: 6 September 2018

27 Lower Test nature reserve © Martin Ellis 28 Financial Statements

29 Consolidated Statement of Financial Activities for the year ended 31 March 2018

Unrestricted Restricted Endowment Total Funds Total Funds Notes Funds Funds Fund 2018 2017

INCOME FROM £ £ £ £ £

Donations and legacies 2 690,980 22,581 - 713,561 615,415

Charitable activities 3 2,410,728 1,239,982 - 3,650,710 3,224,064

Other trading activities 423,699 - - 423,699 304,431

Investments 35,426 - - 35,426 34,151

Other 6,693 - - 6,693 11,229

Total income 3,567,526 1,262,563 - 4,830,089 4,189,290

EXPENDITURE ON

Raising funds 4 516,351 - - 516,351 576,879

Charitable activities 5 2,603,612 950,734 - 3,554,346 3,164,712

Total expenditure 6 3,119,963 950,734 - 4,070,697 3,741,591

Net gains/(losses) on investments 13 (7,783) - - (7,783) 102,267

NET INCOME/(EXPENDITURE) 439,780 311,829 - 751,609 549,966

Transfers between funds 16 - - - - -

Other recognised gains/(losses):

Gains on revaluation of fixed assets - - - - 897,500 Heritage assets not previously valued - - - - 229,639

Net movement in funds 439,780 311,829 - 751,609 1,677,105

RECONCILIATION OF FUNDS

Total funds brought forward 6,891,314 1,136,940 4,508 8,032,762 6,355,657

TOTAL FUNDS CARRIED FORWARD 7,331,094 1,448,769 4,508 8,784,371 8,032,762

Continuing operations All incoming resources and resources expended arise from continuing activities.

30 Balance Sheets as at 31 March 2018

The balance sheets for both the Group (the charity plus the subsidiary trading companies) and the Charity only are shown below.

The Group The Charity Notes 2018 2017 2018 2017

FIXED ASSETS

Tangible assets 11 3,912,161 3,971,380 3,912,161 3,971,380

Heritage assets 12 1,937,710 1,587,710 1,937,710 1,587,710

Investments 13 1,028,586 1,036,369 1,028,786 1,036,569

6,878,457 6,595,459 6,878,657 6,595,659

CURRENT ASSETS

Stock 301,510 279,210 301,510 279,210 Debtors 14 1,456,914 1,090,137 1,411,414 1,101,002 Cash at bank and in hand 1,017,484 817,986 997,096 779,619

2,775,908 2,187,333 2,710,020 2,159,831

CREDITORS

Amounts falling due within one year 15 (869,994) (750,030) (804,306) (722,728)

NET CURRENT ASSETS 1,905,914 1,437,303 1,905,714 1,437,103 TOTAL ASSETS LESS CURRENT 8,784,371 8,032,762 8,784,371 8,032,762 LIABILITIES net assets 8,784,371 8,032,762 8,784,371 8,032,762

FUNDS 16

Endowment funds 4,508 4,508 4,508 4,508

Restricted funds 1,448,769 1,136,940 1,448,769 1,136,940

Unrestricted funds:

Designated funds 1,350,187 979,873 1,350,187 979,873

General fund 5,980,907 5,911,441 5,980,907 5,911,441

TOTAL FUNDS 8,784,371 8,032,762 8,784,371 8,032,762

The notes on pages 33 to 51 form part of these financial statements. The financial statements were approved by the Board of Trustees on 6 September 2018 and signed on its behalf by:

David Jordan OBE Mary Parker Chairman of Council Honorary Treasurer

31 Financial Statements 2017/18 continued Consolidated Cash Flow Statement for the year ended 31 March 2018

Notes 2018 2017

£ £ Cash flows from operating activities: Cash generated from operations a 529,461 83,581

Net cash provided by (used in) operating activities 529,461 83,581

Cash flows from investing activities: Purchase of tangible fixed assets (17,855) (477,226) Purchase of heritage assets (350,000) (81,014) Sale of fixed assets 2,467 3,555 Purchase of fixed asset investments - (46,500) Sale of fixed asset investments - 46,590 Interest received 35,426 34,151

Net cash provided by (used in) investing activities (329,962) (520,444)

Change in cash and cash equivalents in the reporting period b 199,498 (436,863) Cash and cash equivalents at the beginning of the reporting period 817,986 1,254,849

Cash and cash equivalents at the end of the reporting period 1,017,484 817,986

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT a) Reconciliation of net income/(expenditure) to net cash flow from operating activities

2018 2017 £ £ Net income/(expenditure) for the reporting period (as per the 751,609 549,966 statement of financial activities) Depreciation 74,608 90,929 Gains/(losses) on investments 7,783 (102,267) Interest received (35,426) (34,151) Increase/(decrease) in stock (22,300) (78,348) Increase/(decrease) in debtors (366,777) (411,939) Increase/(decrease) in creditors 119,964 69,391

Net cash provided by (used in) operating activities 529,461 83,581 b) Analysis of cash and cash equivalents 2018 2017 £ £ Balance brought forward 817,986 1,254,849 Net cash (outflow)/inflow for year 199,498 (436,863)

Balance at 31 March 2018 1,017,484 817,986

32 Notes to the Financial Statements 2017/18 Notes to the Consolidated Financial Statements for the year ended 31 March 2018 These notes form part of the financial statements.

1. Accounting Policies Plant and machinery 5 years Motor vehicles 5 years Computer equipment 5 years a) Basis of preparing the financial statements The financial statements of the charitable company, which is Freehold and leasehold buildings and land are not depreciated. a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and j) Heritage assets Reporting by Charities: Statement of Recommended Practice Heritage assets are defined by the Trust as nature reserves. applicable to charities preparing their accounts in accordance Nature reserves purchased by the Trust are shown on the with the Financial Reporting Standard applicable in the UK balance sheet at original cost or valuation at the date of and Republic of Ireland (FRS 102) (effective 1 January 2015)’, acquisition where known. Where Heritage Assets have been Financial Reporting Standard 102 ‘The Financial Reporting donated (or gifted) to the Charity they are recognised initially Standard applicable in the UK and Republic of Ireland’, the at their fair value where practicable. No value is placed on Charities Act 2011 and the Companies Act 2006. The financial assets where their cost or valuation is not available and such statements have been prepared under the historical cost information cannot be obtained at a cost commensurate with convention with the exception of investments which are the benefit to the users of the accounts and to the charity. No included at market value. depreciation is charged on Heritage Assets as permitted by SORP FRS 102. Note 12 provides further information. b) Consolidation The financial statements incorporate the results of Hampshire k) Taxation and Isle of Wight Wildlife Trust and its wholly-owned The Trust is exempt from direct taxation on its charitable subsidiaries, prepared on a line by line basis. activities. Exemption has been taken from including the statement of l) Investments financial activities of Hampshire and Isle of Wight Wildlife Trust Fixed asset investments are stated at market value based in accordance with section 408 of the Companies Act 2006. on the bid price valuation provided by the Trust’s investment managers; Sarasin & Partners LLP, as required by SORP (FRS c) Income 2015). Any diminution in value is deducted if, in the opinion of All income is included in the Statement of Financial Activities the investment managers, it is considered necessary. when the charity is legally entitled to the income and the The investments are administered by Sarasin & Partners LLP on amount can be quantified with reasonable accuracy. Legacies behalf of the Trust. and donations are accounted for when receipt of the income Investment income is accounted for when received by the Trust is probable. Wherever possible, donated assets have been or its appointed agent. included at a reasonable estimate of their value to the Trust. m) Investment gains and losses d) Membership income Realised and unrealised gains and losses on investments Membership subscriptions are accounted for when received arising from the valuation of investments are recognised in the irrespective of the period of membership, since any cancellation Statement of Financial Activities. in membership will not result in a refund for any proportion of unused subscriptions. n) Operating leases Rentals payable under operating leases are charged to the e) Branch income Statement of Financial Activities as incurred over the term of The Trust has twelve local groups and three specialist groups the lease. who carry out various fundraising activities during the year. The proceeds of these activities are reflected as income in the o) Pension costs financial statements upon receipt from the individual groups. The charity operates a defined contribution pension scheme. Contributions payable for the year are charged in the Statement f) Volunteer contributions of Financial Activities. No value is ascribed to the unpaid contributions of time and skills provided by volunteers due to the difficulty in attributing an p) Fund accounting economic value. The permanent endowment fund represents donations made where the donor requested that the capital be invested and the g) Expenditure income either added to the capital or used to cover expenditure, All expenditure is accounted for on an accruals basis inclusive depending on the conditions of the endowment. of any VAT that cannot be recovered and has been classified Restricted funds are funds for which the donor has specifically under headings that aggregate all costs related to the category. restricted the purpose for which they can be used. The amounts Where costs cannot be directly attributed to particular headings in the funds represent the monies still remaining available for they have been allocated on a basis consistent with the use of future expenditure, or funds represented by assets purchased the resources. Costs of raising funds include the costs incurred partly or fully from restricted funds. as a result of raising donations, developing legacy income and applying for grants. Governance costs are those incurred in Unrestricted funds connection with constitutional and statutory requirements, These are funds free from any restrictions and Trustees can including audit and legal fees. decide what they are spent on. Unrestricted funds are shown in two types as detailed below: h) Stock Stocks are stated at the lower of cost or net realisable value Designated funds are funds for which Council has specifically except for livestock, which is valued at an average market value designated the purpose for which they can be used. The on each balance sheet date. amounts remaining in the funds represent the monies still remaining available for future expenditure. i) Tangible fixed assets General funds represent the unrestricted net assets of the Depreciation is provided with the intention of writing off the charity, excluding designated funds. costs of the tangible fixed assets over their useful lives. The provision is calculated using the straight line method over the All income is allocated to the general fund unless otherwise following periods: restricted by the donor or specifically designated by Council.

33 Notes to the Financial Statements 2017/18 continued

2. Donations and Legacies

Group

2018 2017 £ £ Donations and Fundraising 281,315 488,802 Legacies 432,246 126,613

713,561 615,415

As at 31 March 2018 the Trust has been notified of it entitlement to receive legacies which at the date of this report have been estimated to amount to £46,470. These have yet to be received and no provision has been included in these financial statements.

3. Income from Charitable Activities

Unrestricted Restricted Endowment Income Income Income 2018 2017 £ £ £ £ £

North Hampshire Conservation 473,551 540 - 474,091 648,292

Solent & IOW Conservation 142,356 183,082 - 325,438 342,308

Central & West Conservation 299,708 206,672 - 506,380 346,234

Estates & Grazing Enterprise 371,819 333,400 - 705,219 316,478

Education & Engagement 15,409 335,633 - 351,042 343,657

External Affairs 48,233 180,655 - 228,888 182,253

Membership 1,059,652 - - 1,059,652 1,044,842

2,410,728 1,239,982 - 3,650,710 3,224,064

4. Expenditure on Raising Funds

Group 2018 2017 £ £ Sales and commercial income 516,351 576,879

34 Notes to the Financial Statements 2017/18 continued

5. Expenditure on Charitable Activities

Direct Support Costs Costs 2018 2017 £ £ £ £

North Hampshire Conservation 253,186 73,263 326,449 603,490

Solent & IOW Conservation 313,907 113,465 427,372 358,812

Central & West Conservation 473,958 114,352 588,310 486,075

Estates & Grazing Enterprise 619,928 127,746 747,674 625,902

Education & Engagement 437,269 121,057 558,326 577,086

External Affairs 539,694 87,636 627,330 304,088

Membership 246,035 32,850 278,885 209,260

2,883,977 670,369 3,554,346 3,164,712

6. Total Expenditure

Staff Other Direct Support Costs Costs Costs 2018 2017 £ £ £ £ £

Charitable activities

North Hampshire Conservation 183,759 69,427 73,263 326,449 603,490

Solent & IOW Conservation 231,305 82,602 113,465 427,372 358,812

Central & West Conservation 300,315 173,643 114,352 588,310 486,075

Estates & Grazing Enterprise 336,561 283,367 127,746 747,674 625,902

Education & Engagement 350,836 86,433 121,057 558,326 577,086

External Affairs 308,201 231,493 87,636 627,330 304,088

Membership 87,690 158,345 32,850 278,885 209,260

Expenditure on charitable activities 1,798,667 1,085,310 670,369 3,554,346 3,164,712

Expenditure on raising funds 310,445 64,665 141,241 516,351 576,879

2,109,112 1,149,975 811,610 4,070,697 3,741,591

35 Notes to the Financial Statements 2017/18 continued

7. Analysis of Support Costs

North Central Estates & Hampshire Solent & IOW & West Grazing Raising funds Conservation Conservation Conservation Enterprise £ £ £ £ £ IT 14,154 7,342 11,371 11,459 12,801 Finance 36,401 18,882 29,242 29,471 32,923 Premises 51,656 26,794 41,497 41,822 46,721 Human Resources 25,423 13,187 20,423 20,583 22,994 Governance 13,607 7,058 10,932 11,017 12,307

141,241 73,263 113,465 114,352 127,746

Education & External 2017-18 Basis of Engagement Affairs Membership Total allocation £ £ £ £ IT 12,131 8,782 3,292 81,332 No. of Staff Finance 31,199 22,586 8,466 209,170 No. of Staff Premises 44,274 32,051 12,014 296,829 No. of Staff Human Resources 21,790 15,774 5,913 146,087 No. of Staff Governance 11,663 8,443 3,165 78,192 No. of Staff

121,057 87,636 32,850 811,610

Net income/(expenditure) is stated after charging/(crediting):

2018 2017 £ £ Depreciation – owned assets 74,608 90,929 Profit on sale of fixed assets (11,000) (3,455) Operating leases – land and buildings 47,107 47,107 Auditors’ remuneration – provision of audit services 8,150 8,000 Auditors’ remuneration – non audit services - 150

36 Notes to the Financial Statements 2017/18 continued

8. Trustees’ Remuneration and Benefits

No Directors (Trustees) or persons connected with them have received nor waived any remuneration during the year (2017: none).

No Directors received reimbursement of expenses for travelling during the year (2017: none).

9. Staff Costs

2018 2017 £ £ Salaries and wages 2,078,777 1,907,387 Social security costs 179,535 167,846 Pension costs 118,970 109,313

2,377,282 2,184,546

The average monthly number of full-time equivalent employees during the year was as follows:

2018 2017 Cost of Generating Funds 5.0 5.3 Finance and Administration (includes Governance) 8.2 8.0 Charitable Activities 69.1 62.4

82.3 75.7

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2018 2017 £60,001 - £70,000 1 1

10. Pension Scheme

The Trust operates a defined contribution pension scheme. The assets of the Scheme are held separately from those of the Trust in an independently administered fund. The pension cost charged to the Statement of Financial Activities was £118,970 (2017: £109,313).

37 Notes to the Financial Statements 2017/18 continued

11. Tangible Fixed Assets — Group and Charity

Freehold Freehold Plant and Properties Land Machinery Total £ £ £ £ Cost As at 1 April 2017 2,401,742 1,409,632 859,128 4,670,502

Additions - - 17,855 17,855

Disposals - - (25,331) (25,331)

Transfer - - - -

Revaluation - - - -

As at 31 March 2018 2,401,742 1,409,632 851,652 4,663,026

Depreciation At 1 April 2017 9,497 - 689,625 699,122

Transfer - - - -

Charge for the year 5,693 - 68,915 74,608

Depreciation on disposals - - (22,865) (22,865)

As at 31 March 2018 15,190 - 735,675 750,865

Net Book Value

As at 31 March 2018 2,386,552 1,409,632 115,977 3,912,161

As at 31 March 2017 2,392,245 1,409,632 169,503 3,971,380

Tangible fixed assets are all functional assets used in furtherance of the charity’s objects. The Trust’s three freehold properties are Beechcroft House, Dawkins Cottage and Brick Kiln Farm Cottage. They were most recently revalued in 2017 by Giles Wheeler-Bennett Limited (Chartered Surveyors) and these values are included in the table above. Freehold land included above consists of: Tawny Barn Field, College Copse Farm and Hockley Meadows Farm.

38 Notes to the Financial Statements 2017/18 continued

12. Heritage Assets — Group and Charity

2017-2018 2016-2017 2015-2016 2014-2015 2013-2014

£ £ £ £ £ Cost At start of period 1,587,710 1,277,057 1,277,057 1,235,057 1,235,057

Additions 350,000 81,014 - 42,000 -

Heritage Assets not previously valued - 229,639 - - -

Disposals - - - - -

At end of period 1,937,710 1,587,710 1,277,057 1,277,057 1,235,057

Net book value

Year End 1,937,710 1,587,710 1,277,057 1,277,057 1,235,057

Prior Year 1,587,710 1,277,057 1,277,057 1,235,057 1,235,057

Heritage Assets are defined as tangible property with historical, artistic, scientific, technological, geophysical or environmental qualities which are held and maintained principally for their contribution to knowledge and culture.

Hampshire and Isle of Wight Wildlife Trust defines its nature reserves as Heritage Assets as they are held for the purposes of conservation, and are intended to be kept indefinitely.

Nature reserves purchased by the Trust are shown on the balance sheet at original cost or valuation at the date of acquisition where known. Where Heritage Assets have been donated (or gifted) to the Charity they are recognised initially at their fair value where practicable. No value is placed on assets where their cost or valuation is not available and such information cannot be obtained at a cost commensurate with the benefit to the users of the accounts and to the charity. No depreciation is charged on Heritage Assets as permitted by SORP FRS 102.

The Trust continues to acquire new land for the purposes of conservation in accordance with its acquisitions policy. Assets are classified as heritage assets where appropriate at the time of acquisition. Heritage Assets held by the Trust as at 31 March 2018 are listed overleaf in tables 1 and 2.

39 Notes to the Financial Statements 2017/18 continued

Table 1. Heritage Assets: Freehold Nature Reserves

Name Location Size (hectares)

Alverstone Mead Sandown, Isle of Wight 16.0 Arreton Down Newport, Isle of Wight 19.0 Bartley Heath Hook 91.0 Brick Kiln Farm West Meon 20.0 Broughton Down Broughton 24.0 Chappetts Copse West Meon 12.0 Copythorne Common Cadnam 15.4 Coulters Dean Buriton 4.0 Emer Bog North Baddesley 24.0 Fletchwood Meadows Ashurst 5.0 Greywell Moors Odiham 13.0 Hoe Road Meadow Bishop’s Waltham 3.0 Holmsley Gravel Pit Bransgore 3.0 Kitt's Grave Martin 36.0 Knighton Down Brading, Isle of Wight 13.4 Linwood Appleslade 10.5 Lower Test, The Crescent Nursling 5.0 Lymington Reed Beds Lymington 32.0 Mapledurwell Fen Basingstoke 0.4 Martin's Wood Newchurch, Isle of Wight 8.5 Micheldever Spoil Heaps - North Micheldever 3.0 Morton Marsh Sandown, Isle of Wight 10.5 Ningwood Common Cranmore, Isle of Wight 11. 7 Pewit Island Portsmouth Harbour 1. 2 Ron Ward’s Meadow Tadley 10.0 Royden Lane Brockenhurst 2.2 Roydon Woods Brockenhurst 379.7 Sandown Meadows Sandown, Isle of Wight 18.0 Sandy Down Brockenhurst 4.9 Shutts Copse West Meon 4.0 Southmoor North Langstone 11. 3 St Clair’s Meadow Soberton 15.8 St Lawrence Bank Field Whitwell, Isle of Wight 5.1 St Lawrence Undercliff Woods St Lawrence, Isle of Wight 1. 5 Swanpond Copse Ryde, Isle of Wight 4.0 Upper Inhams Copse Silchester 18.0 Upper Titchfield Haven Hill Head 13.0 Upper Winnall Moors Winchester 26.0 Weavers Down Bog Longmoor 3.0 Whitehouse Meadows Cove 1. 0 Winnall Moors West Winchester 21.5

Total 920.5

40 Notes to the Financial Statements 2017/18 continued

Table 2. Heritage Assets: Leasehold Nature Reserves

Name Location Size (hectares)

Ancells Farm Fleet 12.0 Baddesley Common North Baddesley 28.0 Blashford Lakes Ringwood 91.0 Bouldnor Forest Bouldnor, Isle of Wight 36.0 Old Burghclere Lime Quarry Burghclere 3.0 Eagleshead Copse Brading, Isle of Wight 10.0 Farlington Marshes Portsmouth 120.0 Upper Flexford Chandler’s Ford 11. 0 Lower Flexford Chandler’s Ford 9.0 Headley Gravel Pit Headley 7. 0 Hook Common Hook 74.0 Hookheath Meadows Southwick 14.0 Hythe Marshes Hythe 9.0 Lymington & Keyhaven Marshes Lymington 320.0 Long Aldermoor Minstead 3.0 Lower Test Totton 157.0 Lower Winnall Moors Winchester 15.0 Milton Locks Portsmouth 0.4 Noar Hill Selborne 12.0 Pamber Forest Silchester 194.0 St Catherine's Hill Winchester 47.0 Swanwick Lakes Fareham 28.0 Testwood Lakes Totton 65.0

Total 1,265.4

41 Notes to the Financial Statements 2017/18 continued

13. Fixed Asset Investments — Group and Charity

Group Charity 2018 2017 2018 2017 £ £ £ £

Investments 1,028,586 1,036,369 1,028,786 1,036,569

GROUP

Cash and Listed Unlisted settlements investments investments pending Totals £ £ £ £ Market Value At 1 April 2017 1,035,714 - 655 1,036,369 Additions - - - - Disposals - - - - Revaluations (7,783) - - (7,783) At 31 March 2018 1,027,931 - 655 1,028,586

Net Book Value At 31 March 2018 1,027,931 - 655 1,028,586 At 31 March 2017 1,035,714 - 655 1,036,369

Of the £1,028,586 investments held at 31 March 2018, all holdings are held in the UK.

CHARITY

Cash and Listed Unlisted settlements Investments Investments pending Totals £ £ £ £ Market Value At 1 April 2017 1,035,714 200 655 1,036,569 Additions - - - - Disposals - - - - Revaluations (7,783) - - (7,783) At 31 March 2018 1,027,931 200 655 1,028,786

Net Book Value At 31 March 2018 1,027,931 200 655 1,028,786 At 31 March 2017 1,035,714 200 655 1,036,569

The unlisted investments represents the charity’s 100% interest in HIWWT Trading Limited and Arcadian Ecology and Consulting Limited.

Of the £1,028,786 investments held at 31 March 2018, all holdings are held in the UK.

42 Notes to the Financial Statements 2017/18 continued

13. Fixed Asset Investments — Group and Charity (continued)

Investments that are material in the context of the group and charity investment portfolio are detailed as follows:

2018

£ Charity Authorised Investment Fund for Endowments* 943,650 Charity Authorised Investment Fund for Income and Reserves* 84,280

All investments are held to preserve capital value and generate a modest income for use in the activities of the Trust.

The historical cost of investments held as at 31 March 2018 was £832,374 (2017: £832,374)

*Previously Alpha Common Investment Funds. Converted to Charity Authorised Investment Funds due to regulatory change.

14. Debtors: Amounts Falling Due Within One Year

Group Charity 2018 2017 2018 2017 £ £ £ £ Trade Debtors 399,840 270,326 158,838 202,457 Other Debtors 971,208 768,250 971,108 765,410 Prepayments and Accrued Income 85,866 51,561 85,866 51,561 Amounts Due from Group Undertakings - - 195,602 81,574

1,456,914 1,090,137 1,411,414 1,101,002

15. Creditors: Amounts Falling Due Within One Year

Group Charity 2018 2017 2018 2017 £ £ £ £ Trade Creditors 199,885 174,585 172,507 168,142 Other Creditors 31,830 27,715 31,830 27,714 Accruals 185,753 134,717 183,478 133,187 Taxation and Social Security 71,476 70,461 37,706 58,473 Amounts Owed to Group Undertakings - - 35 3,229 Deferred Income 381,050 342,552 378,750 331,983

869,994 750,030 804,306 722,728

43 Notes to the Financial Statements 2017/18 continued

16. Analysis of Charitable Funds for the Prior Year 2016/17

Balance Incoming Outgoing before resources resources movements Investment Balance at Balance at and fund and funds at 31 March Gains/ 31 March 1 April 2016 transfers in expended 2018 (Losses) Transfers 2017

Unrestricted funds £ £ £ £ £ £ £

Designated Funds Land Management 742,228 - - 742,228 - 69,032 811,260 North Hampshire Reserves 91,536 - (40,000) 51,536 - (51,536) - New Forest Reserves 82,720 - (20,000) 62,720 - (62,720) - Solent Reserves 39,761 - (10,000) 29,761 - (29,761) - Lower Test Reserves 57,855 - (5,000) 52,855 - (52,855) - Ecology & Evidence Programme 2,000 - - 2,000 - (2,000) - South Downs Reserves 12,324 - (3,000) 9,324 - (9,324) - Education & Engagement 4,915 - (4,915) - - - - Capital Expenditure 63,000 - (20,000) 43,000 - - 43,000 Legacies - - - - - 125,613 125,613 Richard Hedley Fund 4,574 - - 4,574 - (4,574) -

Total Designated Funds 1,100,913 - (102,915) 997,998 - (18,125) 979,873

General Fund 4,148,719 4,580,701 (2,930,783) 5,798,637 102,267 10,537 5,911,441

Total Unrestricted Funds 5,249,632 4,580,701 (3,033,698) 6,796,635 102,267 (7,588) 6,891,314

Restricted Funds Badger Appeal 13,372 - (2,500) 10,872 - - 10,872 Big Lottery Fund Grant 2,263 - (2,263) - - - - Blashford 6,500 - (6,500) - - - - Brough Naturalists' Fund 23,250 - (500) 22,750 - - 22,750 Central & West Conservation - 111,981 (111,981) - - - - College Copse - 12,000 - 12,000 - - 12,000 Ecology & Evidence Projects 13,185 - (13,185) - - - - Education & Engagement - 273,640 (273,640) - - - - Emer Bog and Heathlands 43,835 - (11,160) 32,675 - - 32,675 Hanson Concrete Charitable Trust 10,000 - 10,000 - - 10,000 IOW Match Funding - 10,000 - 10,000 - - 10,000 Itchen Navigation/Winnall Moors 68,814 - (9,000) 59,814 - - 59,814 Landscape & Catchment Projects - 63,055 (63,055) - - - - Loddon Project 8,600 - (8,600) - - - - Non-Native Plants Projects 36,806 19,041 (39,871) 15,976 - - 15,976

44 Notes to the Financial Statements 2017/18 continued

16. Analysis of Charitable Funds for the Prior Year 2016/17 (continued)

Balance Incoming Outgoing before resources resources movements Investment Balance at Balance at and fund and funds at 31 March Gains/ 31 March 1 April 2016 transfers in expended 2018 (Losses) Transfers 2017

Restricted Funds (cont.) £ £ £ £ £ £ £

North Hampshire Conservation - 25,568 (25,568) - - - - Restricted Donations/Legacies 2,000 3,656 (3,656) 2,000 - - 2,000 Richard Hedley Fund - 8,180 - 8,180 - 4,574 12,754 SE Wildlife Trusts Strategic Dev. 14,919 - - 14,919 - - 14,919 Secrets of the Solent 3,250 68,792 (72,042) - - - - Solent & IOW Conservation - 61,815 (61,815) - - - - Swanwick 2,557 - (2,557) - - - - Test & Itchen Catchment Project 20,000 - - 20,000 - - 20,000

269,351 657,728 (707,893) 219,186 - 4,574 223,760

Restricted Heritage Assets 832,166 78,000 - 910,166 - 3,014 913,180

Total Restricted Funds 1,101,517 735,728 (707,893) 1,129,352 - 7,588 1,136,940

Permanent Endowment Fund: Ted Wallace Fund 4,508 - - 4,508 - - 4,508

Total Endowment Funds 4,508 - - 4,508 - - 4,508

TOTAL CHARITABLE FUNDS 6,355,657 5,316,429 (3,741,591) 7,930,495 102,267 - 8,032,762

45 Notes to the Financial Statements 2017/18 continued

16. Analysis of Charitable Funds for the Current Year 2017/18 Incoming Outgoing Balance resources resources before Investment Balance at Balance at and fund and funds movements at Gains/ 31 March 1 April 2017 transfers in expended 31 March 2018 (Losses) Transfers 2018 Unrestricted funds £ £ £ £ £ £ £ Designated Funds Land Management 811,260 - (46,987) 764,273 - - 764,273 Capital Expediture 43,000 - (20,000) 23,000 - - 23,000 Legacies 125,613 384,750 (50,000) 460,363 - - 460,363 Business Plan Strategic Dev. - 47,496 - 47,496 - - 47,496 Building Maintenance - 55,055 - 55,055 - - 55,055 Total Designated Funds 979,873 487,301 (116,987) 1,350,187 - - 1,350,187 General Fund 5,911,441 3,080,224 (3,002,975) 5,988,690 (7,783) - 5,980,907 Total Unrestricted Funds 6,891,314 3,567,525 (3,119,962) 7,338,877 (7,783) - 7,331,094 Restricted Funds Badger Appeal 10,872 - - 10,872 - - 10,872 Brough Naturalists’ Fund 22,750 - - 22,750 - - 22,750 Central Rivers & Downs Conservation - 206,672 (206,672) - - - - College Copse 12,000 - (5,030) 6,970 - - 6,970 Education & Engagement - 335,633 (335,633) - - - - Emer Bog and Heathlands 32,675 - (3,500) 29,175 - - 29,175 Estates Conservation - 5,981 (5,981) - - - - Hanson Concrete Charitable Trust 10,000 - - 10,000 - - 10,000 IOW Match Funding 10,000 - (10,000) - - - - Itchen Navigation / Winnall Moors 59,814 - (7,000) 52,814 - - 52,814 Landscape & Catchment Projects - 180,655 (180,655) - - - - Non-Native Plants Project 15,976 - (3,569) 12,407 - - 12,407 North Hampshire Conservation - 540 (540) - - - - Restricted Donations/Legacies 2,000 - - 2,000 - - 2,000 Richard Hedley Fund 12,754 - (5,468) 7,286 - - 7,286 SE Wildlife Trusts Strategic Dev. 14,919 - - 14,919 - - 14,919 Solent & IOW Conservation - 183,083 (183,083) - - - - Test & Itchen Catchment Project 20,000 - (3,604) 16,396 - - 16,396 223,760 912,564 (950,735) 185,589 - - 185,589 Restricted Heritage Assets 913,180 350,000 - 1,263,180 - - 1,263,180 Total Restricted Funds 1,136,940 1,262,564 (950,735) 1,448,769 - - 1,448,769

Permanent Endowment Fund: Ted Wallace Fund 4,508 - - 4,508 - - 4,508

Total Endowment Funds 4,508 - - 4,508 - - 4,508

TOTAL CHARITABLE FUNDS 8,032,762 4,830,089 (4,070,697) 8,792,154 (7,783) - 8,784,371

46 Notes to the Financial Statements 2017/18 continued

16. Explanation of Charitable Funds 2017/18 Designated Funds Designated funds are set aside to support the delivery of the Trust’s Strategic Plan and to help the Trust manage major risks.

Land Management: Further to a review of the risk Business Plan Strategic Development: A fund associated with the agri-environment funds received established by the Trustees to allow investment in crucial by the Trust to manage nature reserves and other land, areas of fundraising and communications to help the the Trustees have amalgamated all of the previously Trust build resilience and manage risk, in line with details designated funds for land management into a single agreed in the Trust’s Business Plan. strategic fund, thereby providing some flexibility and contingency for the next five years. Building Maintenance: A fund to offset maintenance costs of buildings. Capital Expenditure: A fund to offset the depreciation costs of our major investment in IT infrastructure over a five year period.

Legacies: Legacy income received by the Trust is no longer included in the annual budgeting process, and so the majority of unrestricted legacies received are allocated to this designated fund for future investment on projects, land acquisitions and other activities that help the Trust deliver against its strategic plan priorities. Spending against this fund is overseen by the Trustees.

Restricted Funds Restricted funds are strictly tied to our specific projects. Often the Trust receives project funding in advance and so we need to ‘ring fence’ the monies for spending on the project, as agreed with the funder or donor. Sometimes the projects can run over a number of years. Normally the fund will close once the project is finished.

Badger Appeal: Appeal funds to put towards research Non-Native Plants Projects: Partnership funding for and practical control of bovine tuberculosis and delivery of New Forest and Avon Valley Non-Native Plants deployment of vaccination where appropriate. project work.

Brough Naturalists’ Fund: Fund containing an in- Restricted Donations/Legacies: £2,000 given by Miss memoriam donation given by Antoinette Brough in Lipscombe for replacement benches on Warnborough Greens. memory of her husband Dr Peter Brough, a former Trustee and long-term supporter of the Trust. The donation Richard Hedley Fund: Funds raised in memory of was used to establish an annual prize fund of up to £500 Richard Hedley, a former Trustee and one of the Trust’s per year to acknowledge and encourage the work of most long-standing supporters. Richard’s family plans to amateur naturalists. continue fundraising and the money raised will support one or more ecology trainee positions in the Trust. College Copse: Funds remaining from the College Copse Farm appeal, to be spent on upgrading the facilities there. SE Wildlife Trusts Strategic Development: Funds set Emer Bog and Heathlands: Funds for heathland aside in agreement with the regional grouping of Wildlife Trusts for spending on strategic pan-regional projects. restoration and ongoing management of Emer Bog nature reserve, funded via a developer’s contribution. Test and Itchen Catchment Project: Funding received in Hanson Concrete Charitable Trust: Balance transferred advance for the Test and Itchen Catchment Project. from the Hanson Concrete Block Charitable Trust when it closed; to support capital investment in Blashford Lakes and capital investment within the Parish.

Itchen Navigation/Winnall Moors: Ten-year Heritage Lottery Fund legacy commitment for Itchen Navigation and Winnall Moors projects.

47 Notes to the Financial Statements 2017/18 continued

17. Analysis of Net Assets Between Funds

Unrestricted Designated Restricted Permanent Total Funds Funds Funds Funds Endowment Funds £ £ £ £ £ Tangible Fixed Assets 3,912,161 - - - 3,912,161 Heritage Assets 674,530 - 1,263,180 - 1,937,710 Fixed Asset Investments 1,024,078 - - 4,508 1,028,586 Current Assets 1,240,132 1,350,187 185,589 - 2,775,908 Current Liabilities (869,994) - - - (869,994)

5,980,907 1,350,187 1,448,769 4,508 8,784,371

Free reserves value £1,394,216

18. Trading Subsidiaries a. The wholly-owned subsidiary company, Arcadian Ecology and Consulting Limited, which is incorporated in England and Wales, donates all its profits to the charity by way of a deed of covenant. The charity owns the entire share capital of 100 ordinary shares of £1. Audited accounts are filed with the Register of Companies at Companies House.

A summary of the trading results is shown below:

Profit and Loss Account

2018 £ Turnover - Third party 345,413 - Group 123,778 Cost of sales - Third party (390,412) - Group - Gross profit 78,779 Administration costs - Profit before taxation 78,779 Deed of Covenant to Hampshire and Isle of Wight Wildlife Trust (78,779) Profit before taxation - Tax on profit on ordinary activities -

Net profit -

Share capital - 100 ordinary shares 100 b. The wholly-owned subsidiary company, HIWWT Trading Limited, which is incorporated in England and Wales, donates all its profits to the charity by way of a deed of covenant. The charity owns the entire share capital of 100 ordinary shares of £1. The company was dormant throughout the current year.

48 Notes to the Financial Statements 2017/18 continued

19. Operating Lease Commitments

The amount payable in respect of operating leases shown below are analysed according to the expiry of the leases.

Land and Buildings 2018 2017 Amounts payable: £ £ Within one year - - Between two to five years 17,000 17,000 More than five years 361,751 408,858

378,751 425,858

20. Ultimate Controlling Party and Members’ Guarantee

The Trust is controlled by its members, no one member has overall control.

21. Legal Status of the Charity The Trust is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

22. Donors, Grant Funders and Legacies Received The Trust receives help and support, financial and otherwise, from many individuals (including members who give additional donations over and above membership fees), companies, government agencies, grant-making bodies and other organisations. In addition, we receive gifts from many people who kindly remember the Trust in their will. We would like to thank all of our supporters, as these generous donations are vital to the Trust and we would not be able to continue our work without them.

A list of our donors, grant funders, legacies and supporters can be found overleaf.

49 Notes to the Financial Statements 2017/18 continued

Donations in memory of Peter John Bardon Richard Hedley Cyril Leslie Reeves Peter Brian Bignell Margaret Jean Hoad Ursula Mary Smith Gwendolen Margaret Bunce Geoffrey Kite Kath Spencer Peter Craddock Caroline Mary Stewart Littlewood E J Symonds Colin Crocker Brian Marchant Alfred Wallace Eric Cross Barbara Joan Offer Joyce and Mac Watkins Hazel Claire Dale Josephine Oliver Ian Douglas Williams Frederick Gay C Percy

Gifts in Wills from Denise Margaret Baker Lucinda Cooper Margaret Allison McAnuff Jane Margaret Bateman Beryl Foote Hazel Kathleen Rouse Joan Winifred Beer Hilary Mary Fowler Kathleen Florence Spencer Ellen Betty Brown Angela Mary Gould Margaret Nesta Vokes Margaret Betty Clarke Christopher Robin Hall Mary Elizabeth Young

Other donors We would also like to thank all who have supported our work but wish to remain anonymous as well as all those who donated to the purchase of St Clair’s Meadow and to our Secrets of the Solent appeal. The number of donors involved makes it impossible for us to name you all individually but we are truly grateful for your support.

Support for conservation and nature reserves Support for our conservation work has allowed us to deliver a wide range of activities including the purchase of our newest nature reserve, St Clair’s Meadow, thanks to generous support from Biffa Award and members of the local community. Generous individuals and trusts have funded infrastructure improvements and habitat management at key areas including Roydon Woods, Lymington River and Hockley Meadows Farm. We have also received funding for a range of conservation projects including the ongoing partnership project to reintroduce the marsh fritillary to north Hampshire, our work to protect the native crayfish population, our continuing work to remove invasive non- native species from the water bodies in the New Forest and our work to preserve the headwaters of the Test and Itchen chalk streams. Our thanks go to the following:

Basingstoke and Deane Borough John Spedan Lewis Foundation Southern Water Council Mr H Jones Sovereign Housing Association Biffa Award Jordans Cereals Tadley Parish Council Bournemouth Water Lymington and Pennington Town Test Valley Borough Council Butterfly Conservation – Hampshire Council Thames Water and Isle of Wight branch NATS The Knights Trust Environment Agency Natural England The Park Café Romsey Hampshire County Council New Forest National Park Authority The Verderers of the New Forest Hampshire Ornithological Society Pamber Parish Council The Wildflower Society Hatcher Animal Welfare Trust Pig Shed Trust Vitacress Conservation Trust Heritage Lottery Fund Portsmouth City Council Wessex Water Services Ltd Hook Parish Council Silchester Parish Council Waitrose Isle of Wight AONB Southern Co-op Winchester Rotary Isle of Wight Council South Downs National Park Authority

50 Notes to the Financial Statements 2017/18 continued

Support for education and engagement

The success of our education and engagement programme could not be achieved without the continued support of our partners and generous individual donors. Our work this year was supported by funding for a number of engagement projects such as Secrets of the Solent, Woodland Therapy, New Leaves, Young Naturalists, Milton’s Hidden Seashore, Down to the Coast, and My Wild Neighbourhood. Other funding supported ongoing education activities that engage children, schools and members of the public with the natural world. This includes funding for our Education Centres at Blashford, Testwood and Swanwick Lakes, as well as activities like Forest School and Wildlife Watch groups. We are very grateful to the following individuals and organisations:

Big Lottery Fund Hildon Ltd Red Hill Trust Blagrave Trust Isle of Wight AONB Southern Co-op Bournemouth Water Mr H Jones Southern Water Cameron Bespolka Trust NATS The Co-operative Co-op Group Ltd New Forest District Council Waitrose Denplan Community Fund Nineveh Charitable Trust Waterside Natural History Society Heritage Lottery Fund Mr N Pasley Wessex Water Services Ltd

Support for our staff Thanks to external funders we were able to recruit four trainee members of staff this year: two trainee ecologists were supported by donors that wish to remain anonymous and a trainee geospatial ecologist was funded by the Richard Hedley Fund. Other funding supported a Trainee Assistant Reserves Officer for our Winchester nature reserves. In addition, the first four apprentices funded through the landscape partnership project, Down to the Coast, have all successfully completed their apprenticeships and have gone on to find full time employment in the environmental sector. We would like to acknowledge the Royal Society of Wildlife Trusts for providing secondment opportunities for two members of our policy team. Heritage Lottery Fund Richard Hedley Fund Island Roads Foundation Royal Society of Wildlife Trusts Isle of Wight AONB The Roger and Ingrid Pilkington Charitable Trust

Other supporters The Trust enjoys successful partnerships with a number of businesses and partner organisations. We would like to acknowledge the following:

Aquascience Ltd Forest Holidays – Blackwood Forest Peters Trust BAM Nuttall Ltd Greenhouse Graphics Ltd Portsmouth Water Basingstoke and Deane Borough Hambrooks Landscapes Ltd Primary Tree Surgeons Ltd Council Hildon Ltd Rowan Bentall Charitable Trust Beaulieu Settled Estate Hill Farm Juice South Downs National Park Authority Bournemouth Water HPW Architecture Ltd Southern Co-op Bowman Ales Ltd Ian Clark Restoration Southern Water Castle Cameras John Lewis Partnership Springvale Equipment Ltd Cleansing Service Group Ltd Kingsclere Estate Limited Taylor Made Computer Solutions Ltd Commercial Lighting Systems Ltd Lakeside North Harbour Business Vetark Professional Dean & Reddyhoff Marinas Campus Vine House Farm DJY Consultancy Ltd Larcomes LLP Vintage Roots Ltd Designs for Lighting Ltd Liberty’s Owl, Raptor & Reptile Vitacress Salads Limited Era Screens Ltd Centre Waitrose Estée Lauder New Forest Wildlife Park Wight Building Materials Exbury Estate Oil Spill Response Limited Wildflower Turf Ltd F H Brundle P M Leisure Homes Ltd Wildlife Travel

51 Charity Information

Structure Public Benefit Hampshire and Isle of Wight Wildlife Trust is a The Trustees confirm that they have complied with the registered charity (No. 201081) and a company limited duty in section 17 of the Charities Act 2011 to have by guarantee in England and Wales (No. 676313). VAT due regard to public benefit guidance published by registration number 238466579. the Charity Commission. The Trust’s public benefit is enshrined in its charitable objectives and activities, The charity was founded and incorporated as a providing multiple benefits for the public which are company limited by guarantee on 28 November 1960, wide-ranging and long-lasting. as Hampshire and Isle of Wight Naturalists’ Trust Limited. On 4 June 1991 the charity changed its name Our nature reserves are used extensively by the public to Hampshire and Isle of Wight Wildlife Trust Limited, for quiet recreation; many have access on clearly later simplifying it to Hampshire and Isle of Wight marked paths along with information and interpretation Wildlife Trust on 19 December 2006. for visitors. The land we manage provides a range of other public benefits such as flood risk management, The charity has two subsidiary trading companies. carbon storage, pollination, pollution control and The work of the subsidiary companies is overseen by aesthetic beauty. Government and businesses are a board of Directors which is accountable to Council. now recognising the essential role that nature plays Day-to-day management of the Trust’s two subsidiary in supporting the economy, not least through the companies is delegated to the Chief Executive who provision of these public goods and services. oversees their activity. Through providing advice and assistance to farmers Arcadian Ecology and Consulting Limited and landowners, the Trust helps to support the rural Established in 2016; Company No. 10033962. economy and wider landscapes valued by the public. Arcadian Ecology and Consulting employs seven We deliver an extensive education and engagement staff who deliver a range of chargeable services programme, inspiring thousands of people of all including ecological surveys and the provision of ages — from schools, colleges, adult groups and the land management advice. As a subsidiary of the wider public — to enjoy contact with the natural world Trust, Arcadian abides by the Trust’s policies and and benefit from its positive effect on health and procedures and staff are subject to the same terms wellbeing. and conditions of employment. Evidence and advice provided by the Trust to local HIWWT Trading Limited government, private companies, landowners and Established in 2013; Company No. 08478757. communities helps to ensure that decisions on policies HIWWT Trading provides the Trust with a vehicle for relating to land management, development, and public the potential development of other trading activities health take full account of the public benefit of wildlife in the future, such as retail sales. and a healthy environment. Hampshire and Isle of Wight Wildlife Trust is a member of the Royal Society of Wildlife Trusts (registered Governance charity number 207238) along with 45 other Wildlife Trust members throughout the UK which are Council collectively known as The Wildlife Trusts. Council is the Trust’s governing body, made up of 10-15 members who serve as both Trustees of the charity Charitable Purposes and Directors of the company. Trustees are elected by the members at the Annual General Meeting. Trustees Hampshire and Isle of Wight Wildlife Trust has two can serve for three consecutive terms of three years charitable purposes in accordance with the Charities Act and then must stand down for a year before becoming 2011 and as set out in our Articles of Association: eligible to stand again. The exception is that of the Chair and the Honorary Treasurer who can stand for a 1. For the benefit of the public, to advance, promote fourth consecutive term. All Trustees are volunteers, and further the conservation, maintenance and give freely of their time and have no beneficial interest protection of the environment. in the company or charity. To ensure that Council is equipped to carry out its responsibilities it carries 2. To advance the education of the public in the out skills analysis of existing members, inducts new principles and practice of sustainable development members into the charity and provides Trustee training and biodiversity conservation. as required. Council members are listed on page 54. In support of these purposes, the Trust promotes Responsibilities of Council research in all branches of nature study and the publishing of the useful results thereof. The Trust delivers Council meets on a quarterly basis. Trustees are its charitable purposes through its strategic objectives as responsible for setting the charity’s strategic objectives described in this report. and policies and for ensuring they are achieved.

52 Under the Companies Act, Trustees as Directors of • Health and Safety Committee: advises Council on the company must prepare the Report of the Trustees health and safety matters, develops policy, monitors and the Financial Statements for each financial year in compliance, maintains oversight of any incidents, accordance with applicable law and United Kingdom reviews procedures. Generally Accepted Accounting Practice. Company law • Safeguarding and Child Protection Committee: requires the financial statements to give a true and fair provides advice to Council on safeguarding and view of the state of affairs of the charitable company child protection matters, develops policy, monitors and of the incoming resources and application of compliance, maintains oversight of any incidents, resources, including the income and expenditure of the reviews procedures. charitable company for that period. In preparing these financial statements, the Trustees are required to: • Human Resources (HR) and Remuneration Committee: advises Council on HR matters, develops policy and • select suitable accounting policies and then apply strategy, monitors key HR metrics and provides advice them consistently; on succession planning and the use of volunteers. The • observe the methods and principles in the Charity Committee also has oversight of staff remuneration Statement of Recommended Practice; and benefits. • make judgements and estimates that are reasonable and prudent; Staff Remuneration • prepare the financial statements on a ‘going concern’ basis unless it is inappropriate to; The Trust uses a job scoring system based on a model • presume that the charitable company will continue in developed by the Royal Society of Wildlife Trusts. business. The Chief Executive has delegated authority to set salaries for staff using this system alongside available Trustees are responsible for keeping proper accounting benchmarking information. Salaries for senior posts records which disclose with reasonable accuracy are agreed with Trustees. The Chief Executive’s salary at any time the financial position of the charitable is set by the HR and Remuneration Committee using company and to enable them to ensure that the a similar process of assessment and confidential financial statements comply with the Companies Act benchmarking. 2006. They are responsible for safeguarding the assets of the charitable company and for taking reasonable steps for the prevention and detection of fraud and Auditors other irregularities. Council is also responsible for An independent audit is performed annually to fulfil the assessing, managing and monitoring strategic risks to charity’s legal obligations and for Council to ensure that the delivery of the charity’s purposes. the financial statements have been properly prepared and give a true and fair view. The auditor’s report to the members of the charity is given on page 26. Sheen Statement as to disclosure of information Stickland have expressed their willingness to continue to auditors in office as the group’s auditors and a resolution to So far as Council is aware, there is no relevant re-appoint them will be proposed at the next Annual information (as defined by Section 418 of the General Meeting on 27 October 2018. Companies Act 2006) of which the charitable company’s auditors are unaware, and each Trustee Registered Auditors: has taken all the steps that they ought to have taken Sheen Stickland, 7 East Pallant, Chichester, West as a Trustee in order to make them aware of any Sussex PO19 1TR audit information and to establish that the charitable company’s auditors are aware of that information. Principal Bankers: Unity Trust Bank plc, Nine Brindley Place, Birmingham B1 2HB Committees Council is assisted by a number of sub-committees Investment Managers: that meet regularly and report to Council each quarter. Sarasin & Partners LLP, Juxon House, 100 St. Paul’s All non-staff members of committees are volunteers. Churchyard, London EC4M 8BU • Business and Finance Committee: provides expertise Solicitors: and advice to Council on all financial matters, Coffin Mew, Kings Park House, 22 Kings Park Road, undertakes scrutiny of accounts, maintains oversight Southampton SO15 2UF of investments and financial controls, develops policy and provides advice on business risk and resource management. Registered Office and Principal Address: • Conservation and Science Committee: advises Council Hampshire and Isle of Wight Wildlife Trust, on conservation policy, maintains oversight of major Beechcroft House, Vicarage Lane, Curdridge, projects, advises on land acquisitions and disposals. Hampshire SO32 2DP

53 Thank you Thank you to all of our members, staff, volunteers, donors, funders and investors for their commitment to nature conservation and without whose help we would not be able to carry out our vital work to safeguard the wildlife and wild places of Hampshire and the Isle of Wight.

Our People Members of Council David Jordan OBE Chairman James Bain Co-opted June 2018 and standing for election at the October 2018 AGM Lesley Chin Christopher Collins Oliver Cox Co-opted June 2017 and elected November 2017 Christopher Langford Vice-Chair from November 2017 Andrew Lee Helen McCormack Co-opted September 2017 and elected November 2017; Safeguarding Trustee from November 2017 Jane Page Mary Parker Honorary Treasurer from October 2017; Safeguarding Trustee until November 2017 Tim Pinchen Chair of Business and Finance Committee from October 2017; Health and Safety Trustee from November 2017 Matt Prescott Co-opted June 2017 and elected November 2017 Malcolm Sonnex Professor Paul Tyler MBE Chair of Conservation and Science Committee Dr Peter Vaughan Honorary Treasurer until October 2017; Chair of Business and Finance Committee until October 2017 Simon Woolfries Retired November 2017; Vice-Chair until November 2017; Health and Safety Trustee until November 2017

54 Management President Day-to-day management of the Trust and its two subsidiary companies is John Collman delegated to the Chief Executive, according to a Scheme of Delegation approved by Council. The Chief Executive reports to Council and works with a team of executive directors to deliver the work of the charity. The Vice Presidents Chief Executive oversees the day-to-day management of the trading Michael Baron subsidiary, Arcadian Ecology and Consulting Limited, delivered by the Lord Montagu of Beaulieu Consultancy Manager and team. Roger Harrison Senior Staff Victoria Harrison MVO Harvey Jones Deborah Tann Chief Executive John Durnell Director of Estates and Conservation Delivery Earl of Selborne GBE FRS DL FIBiol Alison Fowler Director of Education and Engagement HM Lord Lieutenant Major General Kate Sandys Director of Fundraising Sir Martin White KCVO CB CBE JP Hannah Terrey Director of Communications and External Affairs Natasha Thorneloe Director of Finance and Resources Company Secretary Clive Chatters Consultancy Manager Deborah Whitfield

55 Hampshire & Isle of Wight Wildlife Trust

Hampshire and Isle of Wight Wildlife Trust Beechcroft House, Vicarage Lane, Curdridge, Hampshire, SO32 2DP 01489 774400 [email protected]

www.hiwwt.org.uk Hills Photography / Surrey Hawkins © Jon Goldfinches