Our COO, Richard presented the 2023 financial accounts to the APCM for approval.  The Finance Committee and Chapter having previously review and approved the Accounts.

The accounts were externally audit by the accountancy firm Sheen Stickland.  Our auditors approved these accounts “without qualification” and agreed the Cathedral was a “going concern.” Huge thanks to our Finance Office, Nicky Taylor Roberts, for all the work that made this possible.

As illustrated in the grid below, the Cathedral has made significant progress over the past four to five years in more effectively managing within its means while still investing for the future.   The huge increase in this year’s surplus of £869,000 though should be read with a “grain of salt.”  In 2023, at the request of the auditors, Chapter had its modest property portfolio professional revalued for the first time in circa 10 years.  The result was that the value of these properties, including those used to house clergy, increased by £795,000.  This increase is unrealisable in that Chapter needs property such as clergy housing to carry on its operations.  The remaining £92,000 was unrealised gain in our investment portfolio (in 2022 there was an unrealised £161,000 loss).

Our investment reserves are also an important indicator of financial health. Reserves at 31 March 2024 stood at £1,335,176 down by only £70,000 since 31 December 2019.  Chapter’s prudent approach to protecting reserves has ensured the Cathedral has the resources to respond to unexpected shocks or, for example, the anticipated cost of replacing the boilers in the near future, has been the right choice.  Combined with sound financial management and a focus on activities to raise funds to support activities has ensured that in 2023 only £30,000 was drawdown, £20,000 in 2022 and in the Covid year of 2020 £137,000 was drawn down.  In total only £250,000 has been drawn down since the start of 2020 which excluding the Covid year of 2020 is within the ebbs and flows of our investment portfolio.  This compares to the £400,000 that was dawn down in 2019 alone which directly negatively impacted upon the overall value of the investment portfolio. 

For the first time this year, the accounts also reported on in-kind outward giving.  Chapter donates £5,000 to local, national and international charities, but it also supports the work of the Bishop, schools and local charities to a total of £43,313 during 2023 through reduced fees for use our buildings.

Richard says” I am hugely grateful to the team – both staff and volunteer – for this collective effort since I took up post in late 2019.  Much progress has been made, but as our auditors did point out the Cathedral is not yet on a firm financial footing in the medium to longer terms with the possibility of £200,000 returning in 2025.  But the steps taken are bearing fruit so for example:

• Shop income was up 56% over the 2023 budget and most of this increase put directly back into the Shop to develop more bespoke products to thereby increase sustained income in future years.

• Exhibitions like “Threads of Creation” and displaying Penny Mordaunt’s Coronation uniform brought many more visitors into the Cathedral seeing significant increases in donations and shop sales.

• New electronic donation points have been installed and we ae already seeing both increased use but also the ease of signing up for Gift Aid once and then each time a person “taps,” the Cathedral receives the additional 25% gift aid contribution from the UK Government.

• Work over the past ten years on Net Zero has reduced our carbon footprint by 45% weather-adjusted, saved five figure sums on heating costs each year, earned us A Roche’s Silver Eco status in 2023 as well being a beacon for this work in the Church of England

• Innovative approaches to Events Management are now bearing fruit as we see new groups booking the Cathedral, bringing in more people and income from both them and for the Cathedral. I think here of our work with the Solent Symphony Orchestra as well as the new commercial hires that bring in net Income of £3,000 to £4,000 for an evening’s use our premises or to events like the Silent Disco which will take place in June that will bring in next income of circa £8,000 to £10,000.

• Our Cathedral tours and welcome are amongst the best in the Cathedral network as informally “judged” during the CAFA conference in 2023 where the COOs and CFOs of the 42 English Cathedrals met in our Nave.

• Congregational giving is up 45% since 2020 and this is an amazing symbol of our community’s investment and support of their cathedral.  With the Dean leading on the Season of Generosity this year we pray for your continued .. and increased … support.

• And much more.

A full PowerPoint presentation including highlights of 2023 that was given at the APCM will be published in mid-June.   This preceded the Dean’s annual report, which highlighted a number of significant events including our live BBC1 broadcast of Midnight Mass at Christmas.   The Dean expressed his thanks to a whole variety of people who have served the life and work of the cathedral over the past year, including our volunteers and worshipping community.   He also welcomed the arrival Harriet Neale-Stevens as Canon Chancellor and Vice Dean, and CP Robinson as Cathedral fundraiser.