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2023-12-31-accounts

Company number: 03072475 Charity Number: 1050146

The Pony Club

Report and consolidated financial statements For the year ended 31 December 2023

The Pony Club

Contents

For the year ended 31 December 2023

Reference and administrative information ...................................................................................... 2 Trustees’ annual report .................................................................................................................. 4 Independent auditor’s report ........................................................................................................ 14 Consolidated statement of financial activities (incorporating an income and expenditure account) ..................................................................... 19 Balance sheets ............................................................................................................................ 20 Consolidated statement of cash flows ........................................................................................... 21 Notes to the financial statements ................................................................................................. 22

1

The Pony Club

Reference and administrative information

For the year ended 31 December 2023

Company number 030702475
Country of incorporation United Kingdom
Charity number 1050146
Country of registration England and Wales
Registered office and operational address The Pony Club
Lowlands Equestrian Centre
Old Warwick Road
Shrewley
Warwickshire
CV35 7AX
Trustees Trustees, who are also directors under company law, who served during the
year and up to the date of this report were as follows:
Mr T R G Vestey Chairman
Mrs DE Pegrum Vice Chairman (Appointed September 2023)
Ms J E Baynes
Mr P W Freedman (Resigned December 2023)
Mrs AV Goodley (Appointed September 2023)
Mr N J Howlett Treasurer
Mrs H Jackson
Mr A W James
Mrs P Jewitt (Appointed January 2024)
Mrs E P Lowry (Resigned December 2023)
Mrs C M G Valori (Resigned December 2023)
Key management Mr Marcus Capel Chief Executive
personnel Mrs Michelle Tompkinson Head of Marketing and Communications
(Resigned January 2024)
Mrs Verity Beaton Head of Marketing and Commercial
(Appointed April 2024)
Ms Heidi Lockyer Head of Charity
Mrs Beryl Stringer Head of Support Services
Ms Sue Woolnough Finance Manager (Resigned September 2023)
Mrs Lisa Retford Finance Manager (Appointed October 2023)
Mrs Emma Holliwell Operations Manager
Bankers Barclays Bank Plc
105 The Parade, Leamington Spa, CV32 4AZ
Solicitors DWF LLP
One Snowhill, Birmingham, B4 6GA

2

The Pony Club

Reference and administrative information

For the year ended 31 December 2023

Auditor Sayer Vincent LLP Chartered Accountant and Statutory Auditor 110 Golden Lane, London, EC1Y 0TG

3

The Pony Club

Trustees’ annual report

For the year ended 31 December 2023

The Trustees present their report and the audited financial statements for the year ended 31[st] December 2023.

Reference and administrative information set out on page 2 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and Activities

The Pony Club Charitable Purpose is:

The charitable aims are delivered via a network of some 320 geographically spread Branches and approximately 300 Centres in Great Britain and Northern Ireland. Some 22,000 children up to the age of 25 subscribe as Pony Club Branch members, whilst approaching 10,000 subscribe as Centre members. Branches and Centres are overseen by 19 Area Representatives, volunteers who assist in the administration of Branch and Centre activities in their geographical area, troubleshoot as required, and are on hand to disseminate advice, help and best practice. They also organise of a set of Area competitions each year and coordinate the calendar of events in their Area.

Each Branch is run by a volunteer committee, chaired by a District Commissioner. Branches organise training sessions known as rallies for their members, alongside a diverse range of other educational and social activities. Organisation of rallies, training activities and local competitions is generally volunteer-led, whilst specific equestrian instruction is generally delivered by paid, freelance instructors. Members who own their own horse or pony pay a subscription to join the Branch, and a fee to attend rallies and other training and competitive events. The nine equestrian Sports recognised and promoted by the Pony Club organise competitive activities, starting a local level and culminating for most sports in annual National Championships. Branches are semi-autonomous, with responsibility for their own profitability and financial well-being, and account to the parent regarding levels of participation in their ridden training and competitive activities, Test achievements, Achievement Badge awards and their financial health. The Pony Club remains a vibrant organisation at branch level and many branches provide outstanding training and social opportunities. The skills acquired by young people at Pony Club rallies, camps and training as well as in competitive situations equip members for life beyond Pony Club.

4

The Pony Club

Trustees’ annual report

For the year ended 31 December 2023

Centre membership is available to children and young adults who do not own their own horse but hire a horse or pony from a Riding Centre linked to The Pony Club. Many who are from urban backgrounds or unable to afford to own their own horse find the Centre option very appealing. Pony Club Centre membership provides access to Pony Club insurance, training, educational and competitive events. The Centre Membership scheme celebrates its 25[th] Anniversary in 2024.

The Pony Club is governed by its Articles of Association and a Governance Document which defines the relationship between volunteers and an executive team of 27 based in an office in Warwickshire. Ultimate responsibility for decision making resides with the volunteer Trustees, who oversee the composition and roles of the volunteer committees responsible for Finance, IT, Governance, Sports, Training, Health, Safety and Safeguarding, Horse Welfare, Volunteering and miscellaneous other Pony Club activities. The Pony Club has a clear set of rules defining the relationship between the parent and associated Branches and Centres, and the conduct required at all levels of the organisation. In accordance with the provisions of the Memorandum and Articles of Association of The Pony Club, no remuneration is paid to the Trustees. Volunteers receive reimbursement of reasonable expenses.

The Trustees review the aims, objectives and activities of The Pony Club each year. This report looks at what The Pony Club has achieved and the outcomes of its work in the reporting period. The Trustees report the success of each key activity and the benefits The Pony Club has brought to the people that it is set up to help. The review also helps the Trustees ensure The Pony Club’s aims, objectives and activities remain focussed on its stated purpose.

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing The Pony Club’s aims and objectives and in planning its future activities. In particular the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

Strategic Report

The Pony Club Strategic Objectives are:

5

The Pony Club

Trustees’ annual report

For the year ended 31 December 2023

Achievements in 2023 are assessed as follows:

Membership

Membership
31/12/23 31/12/22
Branch Members 22,159 22,820
Centre Members 9,727 9,764
Overseas Members 360 531
Total Members 32,246 33,115

As can be seen by the above figures, broadly static membership numbers in 2022 have declined during the course of 2023. By giving careful consideration to affordability when setting the level of membership and competition fees, the Trustees continue their endeavours to enhance the accessibility and diversity of The Pony Club.

6

The Pony Club

Trustees’ annual report

For the year ended 31 December 2023

Charity

The primary aim of every Branch and Centre is to teach Members to ride and care for their horse or pony at rallies and camps.

The Pony Club runs a formal efficiency test scheme from E through to A. At the higher levels these tests are formally recognised coaching standards enabling test holders to enter the world of work and earn a living by teaching children to ride.

The Pony Club also awards achievement badges which recognise and reward the acquisition of knowledge relating to individual aspects of pony care, first aid, farming, the natural world and various equestrian sports, thereby helping Members learn and develop. The Pony Club monitors tests taken and badges awarded as measures of its success as a training organisation. In 2023 circa 10,000 (2022: 7,653) members passed one or more efficiency tests, while 16,483 (2022:14,289) achievement badges were awarded. No test is compulsory. Online learning material continues to be developed so members can study in their own time as well as join Branch, Centre and regional learning. The Training Committee, the Health & Safety, Safeguarding and Horse Welfare Advisory Committee and the Rules and Compliance Committee continue to ensure training materials reflect the latest developments in human and horse well-being and welfare.

Members can compete as individuals or in teams in competitions against other branches or centres. The ability to deal with success and failure both individually and as a team member is central to the ethos of The Pony Club and is a fundamental life skill. Local and Regional competitions act as qualifying rounds for annual, national and/or international championships. The Pony Club Championships were staged again at Offchurch Bury near Leamington Spa, attracting some 2,700 competitors over the eight days of competition. The Pony Club competition schedule seeks to impart to members the skills required for competitive careers in the nine competitive sports supported by The Pony Club, namely Show Jumping, Eventing, Dressage, Mounted Games, Tetrathlon, Polocrosse, Polo, Pony Racing and Endurance.

All coaches are accredited and must partake in training, an approval process and continuing professional development. The Pony Club encourages Members to aspire to become coaches and has a well-established coaching development programme. This virtuous circle benefits both The Pony Club and its Members, providing further skills and the opportunity to generate income as an instructor. Many Members graduate to careers in the equestrian sphere and the grounding they gain in The Pony Club is well respected. Hard work, team work, horsemanship, sportsmanship and high standards of riding and teaching set Pony Club members apart. Current and past members are professional riders, veterinary surgeons and nurses, horse dentists, farriers, grooms and work in diverse roles in the racing industry. The skills learned in The Pony Club are also transferable to careers outside the equestrian world.

7

The Pony Club

Trustees’ annual report

For the year ended 31 December 2023

Volunteers

The Pony Club remains hugely indebted to the unpaid officials who run the affairs of its Branches and to the many thousands of volunteers who assist in activities staged by branches. Volunteers are also the mainstay of the Pony Club Championships. The Pony Club recognises volunteers who serve the Pony Club for 20 years or more through its Cubitt Award Programme and exceptional service is recognised through the recently introduced Cherry Awards, named in memory of past Chairman Cherry Mitchell. It also seeks to encourage young people to volunteer in the equestrian sector and to facilitate the attainment of Duke of Edinburgh Awards through Pony Club participation. To this end, a growing number of members participate in YELA (Young Equestrian Leader Award) 685. (2022: 399).

The spectrum of Pony Club members, parents, coaches, centre proprietors and volunteers is multigenerational and family based, often engaging several generations of the same family in one place or at one event. The culture of volunteering remains extraordinarily strong and the sense of belonging to and ownership of The Pony Club pervades all parts of this spectrum.

The understanding of defined strategic objectives by staff and volunteers alike, coupled with the effective deployment of staff to support volunteers and volunteering is enhancing the sense of working towards a common cause, whether as a volunteer or as a paid member of staff.

Sustainability

The Pony Club again sustained a strong financial performance during 2023, with central reserves now at a level which will provide an adequate financial buffer should disease outbreak or pandemic disrupt our activities again, thereby imparting confidence to staff and volunteers alike.

Pelham, the Pony Club’s membership database, is now linked to online entry systems which are used by almost all Branches and competitive activities. For the first time entry and participation data is captured automatically from the vast majority of Pony Club events, which will prove to be a useful analytical tool in years to come.

Beneficiaries of our services

The main beneficiaries of The Pony Club are the Members who continue to develop as riders and learn about the care and welfare of horses and ponies. The Pony Club continues to be a trusted and relevant organisation focused on supporting children and young people in the equestrian world.

Developing rounded, well-educated Members also benefits the wider equestrian sector by providing knowledgeable candidates for careers in horse related spheres. It is notable that a high percentage of those who represented Great Britain in equestrian sports in the 2024 Paris Olympics were ex-

8

The Pony Club

Trustees’ annual report

For the year ended 31 December 2023

Pony Club members. Nevertheless, irrespective of competitive prowess, the skills imparted by The Pony Club of teamwork, sportsmanship, horsemanship, kindness, resilience, dedication and independent thought are valuable life skills for all members. Many friendships gained through participation in Pony Club activities endure for life.

Financial Review

The consolidated financial statements including The Pony Club and its subsidiary trading company (The Pony Club Trading Ltd) for the year ended 31 December 2023 are presented. The financial statements comply with all statutory requirements and the requirements of The Pony Club’s Memorandum and Articles of Association.

The Pony Club recorded a surplus for the year of £447k (2021: £511k). Income from subscriptions declined marginally to £2,564k (2022: £2,600k), training increased to £6,052k (2022: £5,899k) and competitions grew again to £2,935k (2022: £2,663k). Total income increased to £13,064k (2022: £12,500k). Expenditure on training rose to £8,554k (2022: £8,313k) and on competitions to £3,559k (2022: £3,204k). Total expenditure increased to £12,617k (2022: £11,988k). Careful cost control means that an acceptable surplus for the year has again been achieved, enabling us to further supplement central reserves.

Our database management system, Pelham, has been live since late 2020. Amortisation of £72k was recognised during 2023. The database management system remains as an intangible asset with a capitalised value of £120k.

A large proportion of The Pony Club’s net assets are held by Branches and are used by them for the benefit of Members. Branch funds have been treated as designated funds in the Balance Sheet. All assets are available to fulfil the obligations of The Pony Club in the future. Movements in tangible fixed assets are detailed in note 13.

Principal risks and uncertainties

The Trustees consider the following to be the principal risks and uncertainties facing The Pony Club and have taken the following steps to address them:

Contagious Viruses and Diseases

Disease or pandemic within the human or equine population, particularly if accompanied by government restrictions on human or equine interaction, could impact in a materially adverse manner on membership activities. Cost control is paramount should such an event occur again.

Loss of Membership

The Trustees and the Senior Leadership team continue to pursue a strategy to attract new and to retain existing members. Nevertheless, a significant loss of members would translate into a

9

The Pony Club

Trustees’ annual report

For the year ended 31 December 2023

reduction in income and would require the implementation of cost cutting measures in order to sustain the continued operation of The Pony Club.

Loss of volunteers and associated knowledge, experience and skills.

The Pony Club is heavily reliant on volunteers. It recognises and supports its volunteers both at local, regional and national level. However, committing time to Pony Club volunteering becomes harder for many each year. The use of technology to assist the staging of events is increasingly in evidence, which serves to alleviate some of the demands historically made of volunteers.

Adverse publicity and reputational damage

There is a risk that the activities of employees, volunteers, members and members’ families could bring the organisation adverse publicity. This risk is minimised by training for volunteers, staff and members and by promoting readily accessible codes of conduct. Potentially damaging behaviour is dealt with promptly with support from senior volunteers and employees where necessary.

Reliance on Information Technology

The reliance on information technology presents an inevitable risk to The Pony Club. Investment in the new membership database, maintaining cyber security and complying with GDPR regulations continued throughout 2023 and will be an on-going feature of and cost to the business in future years.

Financial

The Pony Club is exposed to financial risks as a result of its day to day activities and could potentially face financial losses from events, legal action or loss of members. To manage these risks The Pony Club holds insurance policies and monitors its reserves carefully. The Pony Club Trustees have continued to strengthen central reserves in 2023 to facilitate robust financial health and to cope with as many foreseeable and un-foreseeable risks, costs or losses as possible.

Reserves Policy and going concern

At 31 December 2023, the unrestricted funds of the Charity totalled £9,069k (2022: £8,665k). Of this sum £6,965k (2022: £6,985k) represents funds held by Branches and Areas leaving £2,097k held in central reserves (2022: £1,673k) and £7k (2022: 7k) held by The Pony Club Trading Limited.

The Pony Club Office needs to fund working capital and in order to be able to address unforeseen risks and circumstances the Trustees believe that the unrestricted reserves retained centrally should equate to approximately twelve month’s expenditure. Office expenditure during the year amounted to £1,606k, so total central reserves were equivalent to 13.9 months expenditure (2022: 10.5 months).

The Trustees conclude that it is appropriate to treat The Pony Club as a going concern.

10

The Pony Club

Trustees’ annual report

For the year ended 31 December 2023

Structure, governance and management

The Pony Club is a charitable company limited by guarantee, incorporated in England and Wales on 26 June 1995 and registered as a charity on 1 January 1997. The company is established under a Memorandum of Association which defines the objects and powers of the charitable company and is governed under its Articles of Association.

All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 9 to the accounts.

The Pony Club derives its income from member subscriptions, sponsorship and entry fees from events. It does not engage in any material fundraising activities either directly or through third parties.

The Pony Club Trading Limited was incorporated in England and Wales on 16 December 1996, as a wholly owned subsidiary of The Pony Club. The results of that company are consolidated within these financial statements.

Governance

The Board of Trustees is the ultimate authority of The Pony Club. Reporting to the Board are the Management Committee and the Chief Executive.

The Management Committee is responsible for the full range of equestrian activities, including Branch and Centre Membership, tack, dress, tests and competitions. The Trustees delegate their functions relating to equestrian activities of The Pony Club to committees. These committees are Training, Health & Safety, Safeguarding and Horse Welfare, Centre Membership, Eventing, Show Jumping, Dressage, Mounted Games, Tetrathlon, Polo, Polocrosse, Endurance and Pony Racing. Each Committee generally appoints two Area Representatives to be committee members.

The Chief Executive is an employee of The Pony Club, responsible for administering the activities of The Pony Club and the Office within the policies and procedures established by the Board of Trustees and the Management Committee, and in accordance with statutory requirements and the approved budget.

Third Party Indemnity Insurance is in place in respect of the Trustees (as directors of the company).

Appointment of Trustees

Trustees of the charity are also company directors as a matter of company law.

11

The Pony Club

Trustees’ annual report

For the year ended 31 December 2023

In accordance with the Articles of Association of The Pony Club, the Board of Trustees is responsible for the appointment of Trustees. Any Trustee appointed by the Board will hold office until the next AGM or EGM, at which the Members of The Pony Club determine whether to re-appoint them as Trustees for a three-year term. Two Trustees are appointed by the Area Representatives. The Board of Trustees also nominates the Treasurer of The Pony Club and a Trustee to represent Centre members. Trustees are eligible for reappointment, subject to a maximum term of nine years.

When there are Trustee vacancies, these are advertised and applications are invited. The Trustees then review the applications and appoint new Trustees in line with the Articles of Association.

Trustee Induction and training

New Trustees attend a training day to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the strategic plan, and the recent financial performance of the charity. During the induction day they meet key employees.

Related parties and relationships with other organisations

The Pony Club has a wholly owned subsidiary undertaking, The Pony Club Trading Limited.

Remuneration policy for key management personnel

Remuneration of key management personnel is set by the Board of Trustees.

Statement of Responsibilities of the Trustees

The Trustees (who are also directors of The Pony Club for the purposes of company law) are responsible for preparing the Trustees’ Annual Report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the Trustees are required to:

12

The Pony Club

Trustees’ annual report

For the year ended 31 December 2023

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31[st] December 2023 was 38 (2021: 36). The Trustees are Members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The Trustees’ annual report which includes the strategic report was approved by the Trustees on 26[th] September 2024 and signed on their behalf by

T R G Vestey Chairman

13

Independent auditor’s report

to the Members of

The Pony Club

Opinion

We have audited the financial statements of The Pony Club (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 December 2023 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on The Pony Club’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

14

Independent auditor’s report

to the Members of

The Pony Club

Other Information

The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the group financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report, including the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

15

Independent auditor’s report

to the Members of

The Pony Club

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

16

Independent auditor’s report

to the Members of

The Pony Club

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable

17

Independent auditor’s report

to the Members of

The Pony Club

company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Fleur Holden (Senior statutory auditor) 30 September 2024 for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

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The Pony Club

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2023

Restricted
£
23,100
-
-
-
-
-
-		 2023
Total
£
783,079
2,563,521
6,052,232
2,935,263
142,569
94,473
493,242		 Unrestricted
£
711,023
2,600,300
5,899,483
2,662,843
114,337
6,736
477,827		 Restricted
£
20,000
-
-
-
-
-
7,551		 2022
Restated
Total
£
731,023
2,600,300
5,899,483
2,662,843
114,337
6,736
485,378
13,041,279 23,100 13,064,379 12,472,550 27,551 12,500,100
504,071
8,543,643
3,558,974
-		 -
10,587
-
-		 504,071
8,554,230
3,558,974
-		 470,170
8,305,052
3,204,296
-		 -
8,842
-
-		 470,170
8,313,894
3,204,296
-
12,606,688 10,587 12,617,275 11,979,518 8,842 11,988,360
434,590
(31,000)		 12,513
31,000		 447,104
-		 493,031
-		 18,709
-		 511,740
-
403,590
8,665,363		 43,513
22,497		 447,104
8,687,860		 493,031
8,172,332		 18,709
3,788		 511,740
8,176,120

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 24a to the financial statements.

19

The Pony Club

Balance sheets

Balance sheets Balance sheets Balance sheets
As at 31 December 2023 Company no. 03072475
2023
2022
Note
£
£
Fixed assets:
13
157,213
219,007
14
1,316,788
1,234,885
15
-
-
1,474,001
1,453,893
Current assets:
17
466,813
440,463
18
2,078,992
60,091
19
6,359,252
7,863,003
8,905,057
8,363,557
Current liabilities:
20
1,240,095
1,126,590
7,664,962
7,236,967
Non-current liabilities:
21
3,999
3,000
9,134,964
8,687,860
24a
66,010
22,497
6,965,221
6,985,714
6,616
6,616
2,097,117
1,673,034
Total unrestricted funds
9,068,954
8,665,364
9,134,964
8,687,860
Total funds
Investment in subsidiary undertaking
Cash at bank and in hand
Short term deposits
Tangible assets
The group
Intangible assets
Creditors: amounts falling due within one year
Net current assets
Total net assets
Creditors: amounts falling due after one year
Unrestricted income funds:
General funds
Non-charitable trading funds
Designated funds
Debtors
Funds:
Restricted income funds		 2023
2022
£
£
157,213
219,007
1,316,788
1,234,885
2
2
The charity
1,474,001
466,813
2,078,992
6,359,252		 1,453,893
440,463
60,091
7,863,003		 1,474,003
479,733
2,078,992
6,296,423		 1,453,895
440,860
60,091
7,820,773
8,905,057
1,240,095		 8,363,557
1,126,590		 8,855,148
1,198,026		 8,321,725
1,094,379
7,664,962 7,236,967 7,657,122 7,227,346
3,999 3,000 - -
9,134,964 8,687,860 9,131,125 8,681,240
66,010
6,965,221
6,616
2,097,117		 22,497
6,985,714
6,616
1,673,034		 66,010
6,965,221
2,099,894		 22,497
6,985,714
-
1,673,029
9,068,954 8,665,364 9,065,115 8,658,743
9,134,964 8,687,860 9,131,125 8,681,240

Approved by the trustees on 26th September 2024 and signed on their behalf by

T R G Vestey Chairman

20

The Pony Club

Consolidated statement of cash flows

For the year ended 31 December 2023

Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Loss on disposal of fixed assets
Amortisation
Interest on short term deposits
Decrease / (increase) in debtors
Increase in creditors
Net cash provided by operating activities
Analysis of cash and cash equivalents
Short term deposits
Cash at bank and in hand
Total cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash flows from operating activities
Net cash used in investing activities
Cash flows from investing activities:
Interest on short term deposits
Purchase of intangible assets
Purchase of fixed assets		 £
£
447,104
185,867
-
85,794
(94,473)
(26,349)
114,505
712,448
94,473
(267,770)
(24,000)
(197,297)
515,151
7,923,093
8,438,244
At 1 Jan 23
Cashflows
60,091
-
7,863,002
515,151
2023		 £
£
447,104
185,867
-
85,794
(94,473)
(26,349)
114,505
712,448
94,473
(267,770)
(24,000)
(197,297)
515,151
7,923,093
8,438,244
At 1 Jan 23
Cashflows
60,091
-
7,863,002
515,151
2023		 £
£
511,740
251,756
11,775
70,082
(6,736)
166,680
20,660
1,025,956
6,736
(295,970)
(41,900)
(331,134)
694,823
7,228,270
7,923,093
Other changes
At 31
December
2023
£
£
2,018,901
2,078,992
(2,018,901)
6,359,252
2022		 £
£
511,740
251,756
11,775
70,082
(6,736)
166,680
20,660
1,025,956
6,736
(295,970)
(41,900)
(331,134)
694,823
7,228,270
7,923,093
Other changes
At 31
December
2023
£
£
2,018,901
2,078,992
(2,018,901)
6,359,252
2022
712,448
(197,297)		 1,025,956
(331,134)
At 1 Jan 23
60,091
7,863,002		 Other changes
£
2,018,901
(2,018,901)
515,151
7,923,093		 694,823
7,228,270
8,438,244 7,923,093
Cashflows
-
515,151		 At 31
December
2023
£
2,078,992
6,359,252
7,923,093 515,151 - 8,438,244

21

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

1 Accounting policies

a) Statutory information

The Pony Club is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address and principal place of business is Lowlands Equestrian Centre, Shrewley, Warwickshire CV35 7AX.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

These financial statements consolidate the results of the charity and its wholly-owned subsidiary The Pony Club Trading Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below. The accounts are prepared as full values however are presented to the nearest £1. This may cause small discrepancies in the financial statements

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. Sufficient reserves are held centrally and across the organisation and the trustees have a reviewed a rolling 24 months cash flow forecast in order to make this judgement which show no significant risk to the going concern position.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been left to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Accounting for Branches and Areas

22

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

h) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity based upon their proportional incomes.

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which is an estimate, based on revenue.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of revenue for each activity.

Raising funds 10%
Training 60%
Competitions 30%

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Intangible assets

Items are capitalised where intangible assets generated exceed the value of £1,000. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Intangible assets will be amortised over a straight line basis over 5 years.

23

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

1 Accounting policies (continued)

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £250. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

 Freehold land not depreciated  Freehold buildings over 50 years  Motor vehicles and caravans over 4 years  Computer equipment over 2 years

n) Investments in subsidiaries

Investments in subsidiaries are at cost.

o) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

p) Short term deposits

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

q) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

r) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

s) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

t) Defined pension contribution scheme

Pension contributions are charged to income as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and contributions actually paid are shown as either prepayments or accruals in the balance sheet.

24

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

2
Income from donations and legacies
3
Sub-total for Subscriptions
Sub-total for Training
Sub-total for Competitions
4
Branches training income
Branch subscriptions
Branch gift aid
Centre subscriptions
Centre gift aid
Income from other trading activities
Total income from charitable
Donations income
Sponsorship, sale of merchandise
and commission income
Centre affiliation fees
Interest on gift aid
Other grant income
BEF grant income
Branch fundraising income
Income from charitable activities
Central training income
Overseas Branch affiliation fees
Central competition income
Branches competition income
Areas training income
Areas competition income		 Unrestricted
£
67,840
-
-
692,139		 £
-
5,950
17,150
-
Restricted		 2023
Total
£
67,840
5,950
17,150
692,139		 Unrestricted
£
43,251
-
-
667,773		 £
-
20,000
-
-
Restricted		 2022
Total
£
43,251
20,000
-
667,773
759,979 23,100 783,079 711,023 20,000 731,023
Unrestricted
£
1,705,734
350,461
388,242
72,137
34,541
10,485
1,920		 £

-

-

-

-

-

-

-
Restricted		 2023
Total
£
1,705,734
350,461
388,242
72,137
34,541
10,485
1,920		 Unrestricted
£
1,782,186
326,605
389,446
63,741
36,096
2,225
-		 £

-

-

-

-

-

-
-
Restricted		 2022
Total
£
1,782,186
326,605
389,446
63,741
36,096
2,225
-
2,563,521
-		 2,563,521 2,600,300 - 2,600,300
77,460
5,786,824
187,948
-

-

-		 77,460
5,786,824
187,948		 64,720
5,649,844
184,919
-

-

-		 64,720
5,649,844
184,919
6,052,232
-		 6,052,232 5,899,483 - 5,899,483
442,584
2,150,285
342,394
-

-

-		 442,584
2,150,285
342,394		 437,766
1,954,273
270,803
-

-

-		 437,766
1,954,273
270,803
2,935,263
-		 2,935,263 2,662,843 - 2,662,843
11,551,016
-		 11,551,016 11,162,626 - 11,162,626
Unrestricted
£
142,569		 £
-
Restricted		 2023
Total
£
142,569		 Unrestricted
£
114,337		 £
-
Restricted		 2022
Total
£
114,337
142,569 - 142,569 114,337 - 114,337

25

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

5
Income from investments
6
Central other income received
Branches other income received
Branches bank interest received
Other income
Central bank interest received
Areas other income received		 Unrestricted
£
72,591
21,882		 £
-
-
Restricted		 2023
Total
£
72,591
21,882		 Unrestricted
£
40
6,696		 £
-
-
Restricted		 2022
Total
£
40
6,696
94,473 - 94,473 6,736 - 6,736
Unrestricted
£
32,193
423,642
37,408		 Restricted
£
-
-
-		 2023
Total
£
32,193
423,642
37,408		 Unrestricted
£
26,535
390,758
60,534		 Restricted
£
-
7,551
-		 2022
Total
£
26,535
398,308
60,534
493,243 - 493,243 477,827 7,551 485,378

Other Income does not include any Trading activity and is made up largely of income received for trips and other ancillary events organised by the Branch for the benefit of their members.

26

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

7a Analysis of expenditure (current year)

Charitable activities

Costs of camps, rallies and other training events
Costs of competitions
Centre membership
Branch costs
Public liability insurance
Fundraising and publicity
Staff payroll, pension, ers NI,
Life and health and temp staff
Irrecoverable VAT
Amortisation, depreciation and impairment
Premises costs
Office costs
Other expenses
Legal and professional
Governance costs
Support costs
Total expenditure 2023		 Cost of raising
funds
£
-
-
-
152,387
-
191,034
-
-
-
-
-
-
-
-		 Training
£
6,346,674
-
81,830
914,324
212,128
-
35,059
317
-
-
-
-
-
-		 Competitions
£
-
2,398,908
-
457,162
95,748
-
124,086
1,121
-
-
-
-
-
-
3,077,025
77,306
404,643
3,558,974		 Governance
costs
£
-
-
-
-
-
-
81,462
736
-
-
-
-
-
175,489		 Support costs
£
-
-
-
-
-
-
724,886
6,550
119,008
271,285
70,530
41,868
114,681
-		 2023
Total
£
6,346,674
2,398,908
81,830
1,523,874
307,876
191,034
965,493
8,724
119,008
271,285
70,530
41,868
114,681
175,489		 2022
Total
£
6,196,458
2,114,449
94,550
1,517,457
272,538
170,043
881,291
16,918
146,218
320,437
14,999
63,338
74,387
105,277
343,421 7,590,333 257,687 1,348,809 12,617,275 11,988,359
25,769
134,881		 154,612
809,285		 (257,687)
-		 -
(1,348,809)		 -
-		 -
-
504,071 8,554,230 - - 12,617,275 11,988,359

27

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

Analysis of expenditure (prior year)
Costs of camps, rallies and other training events
Costs of competitions
Centre membership
Branch costs
Public liability insurance
Fundraising and publicity
Staff payroll, pension, ers NI,
Life and health and temp staff
Irrecoverable VAT
Amortisation, depreciation and impairment
Premises costs
Office costs
Other expenses
Legal and professional
Governance costs
Support costs
Total expenditure 2022		 Cost of
raising funds
£
-
-
-
151,746
-
170,043
-
-
-
-
-
-
-
-
321,789
14,960
133,421
470,170		 Charitable activities Governance
costs
£
-
-
-
-
-
-
44,323
-
-
-
-
-
-
105,277
149,600
(149,600)
-
-		 Support costs
£
-
-
-
-
-
-
697,909
16,918
146,218
320,437
14,999
63,338
74,387
-
1,334,205
-
(1,334,205)
-		 2022
Total
£
6,196,458
2,114,449
94,550
1,517,457
272,538
170,043
881,291
16,918
146,218
320,437
14,999
63,338
74,387
105,277
Training
£
6,196,458
-
94,550
910,474
187,780
-
34,349
-
-
-
-
-
-
-
7,423,611
89,760
800,523
8,313,894		 Competitions
£
-
2,114,449
-
455,237
84,758
-
104,710
-
-
-
-
-
-
-
2,759,154
44,880
400,262
3,204,296
11,988,359
-
-
11,988,359

28

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2023 2022
£ £
Depreciation 185,867 251,756
Loss on Disposal of Fixed Assets - 11,775
Amortisation 85,794 70,082
Operating lease rentals:
Property 42,366 29,013
Other 483 3,803
Auditor's remuneration (excluding VAT):
Audit 24,000 22,350
Other services 1,475 1,340

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Casual and temporary staff costs
Social security costs
Employer’s contribution to defined contribution pension schemes
Health and life insurance costs		 2023
£
827,572
75,372
62,548
-
8,724		 2022
£
750,254
78,184
52,853
9,300
7,618
974,216 898,209

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2023 2022
£ £
£70,000 - £80,000 - 1
£80,000 - £90,000 1 -

The total employee benefits (including employer pension contributions and employer's national insurance) of the key management personnel were £389,537 (2022: £334,307). The organisation considers key management personnel to be the Chief Executive, Head of Charity, Finance Manager, Head of Marketing and Communications, Head of Support Services and Operations Manager.

No trustee remuneration was paid to any trustees during the year. Trustees' expenses were reimbursed to 3 (2022: 3) trustees during the year.

Trustees' expenses represents the payment or reimbursement of costs as follows:

Trustees' expenses represents the payment or reimbursement of costs as follows:
Travel and subsistence costs
Consultancy		 2023
£
3,563
5,319		 2022
£
4,779
-
8882 4779

29

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

10 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Competitions
Other central functions
Training
Fundraising		 2023
No.
2.0
4.0
3.0
15.0		 2022
No.
1.0
3.2
3.0
14.2
24.0 21.4

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

Other central functions
Fundraising
Training
Competitions		 2023
No.
1.3
3.4
3.0
12.0		 2022
No.
1.0
3.2
3.0
13.2
19.7 20.4

11 Related party transactions

Andrew James (Trustee) – payments of £480, (2022: £1,000) were made to Mrs K Treharne (daughter) for coaching within Pony Club branches. This was an arm's length transaction and Mr James has had no involvement in the procurement of coaches for any of the Pony Club Branches concerned. No balance is outstanding for these transactions at year end.

Tim Vestey (Trustee) – also a director of Thurlow Estate Farms Ltd (TEFL). Payments are made to TEFL for services provided and the use of facilities for Pony Club events £8,155 (2022: £4,753) and payments are also made by TEFL £nil (2022: £1,415) for the use of Pony Club cross country schooling facilities. At 31.12.23 TEFL was owed £1225 (2022: £nil) by the Pony Club in respect of the above transactions. Aggregate donations from related parties were £nil (2022: £nil).

12 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary The Pony Club Trading Limited gift aids any available profits to the parent charity.

30

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

13 Intangible fixed assets

The group and charity
Cost
At the start of the year
Additions in year
Net book value
At the end of the year
At the start of the year
At the end of the year
Amortisation
At the start of the year
Charge for the year
At the end of the year		 CRM
£
432,195
-
Website
£
68,113
24,000		 Total
£
500,308
24,000
432,195 92,113 524,308
240,433
72,171		 40,868
13,623		 281,301
85,794
312,604 54,491 367,095
119,591 37,622 157,213
191,762 27,245 219,007
14
At the start of the year
Additions in year
The group and charity
At the end of the year
At the start of the year
At the end of the year
At the end of the year
Depreciation
Tangible fixed assets
Net book value
Cost
Charge for the year
Eliminated on disposal
At the start of the year
Disposals in year
All of the above assets are used for charitable purposes.		 Freehold land
and property
£
782,520
-
-
Computer
equipment
£
1,252,426
47,438
(11,470)
Motor
vehicles
£
3,123,289
220,333
-
Total
£
5,158,235
267,770
(11,470)
782,520 1,288,394 3,343,622 5,414,535
68,068
2,760
-		 1,167,187
37,664
(11,470)		 2,688,095
145,443
-		 3,923,350
185,867
(11,470)
70,828 1,193,381 2,833,538 4,097,747
711,692 95,012 510,084 1,316,788
714,452 85,239 435,194 1,234,885

A small number of Branches hold land which is not depreciated, the total value of freehold land is £615k (2022: £615K).

31

The Pony Club

For the year ended 31 December 2023

Notes to the financial statements

15 Subsidiary undertaking

The charitable company owns the whole of the issued ordinary share capital of The Pony Club Trading Limited, a company registered in England (Registered address Lowlands Equestrian Centre, Shrewley, Warwickshire CV35 7AX - company number 3294943). The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiary is shown below:

Taxation on profit on ordinary activities
Cost of sales
Profit on ordinary activities before taxation
Gross profit
Administrative expenses
Retained earnings
Assets
Liabilities
Distribution under Gift Aid to parent charity
The aggregate of the assets, liabilities and reserves was:
Total retained earnings brought forward
Reserves
Profit for the financial year
Profit for the financial year
Turnover
Total retained earnings carried forward		 2023
£
142,569
(2,403)		 2022
£
114,337
(4,000)
140,166
(13,874)		 110,337
(22,920)
126,292
-		 87,418
-
126,292 87,418
3,836
126,292
(126,292)		 3,836
87,418
(87,418)
3,836 3,836
86,621
(82,783)		 126,466
(122,628)
3,838 3,838

Amounts owed to the parent undertaking are shown in notes 17.

16 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

2023 2022
£ £
Gross income 13,064,305 12,486,450
Result for the year 449,885 508,959

32

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

17 Debtors

Debtors
Trade debtors due after one year
Trade debtors due within one year
Amount owed by subsidiary undertaking
Prepayments and accrued income		 2023
2022
£
£
68,497
68,497
22,322
20,147
-
-
375,993
351,819
The group		 2023
2022
£
£
68,497
68,497
1,799
13,821
36,714
6,724
372,723
351,819
The charity
466,813 440,463 479,733 440,860

Trade debtors includes a long term debtor of £68,497 (2022: £68,497). This represents the ownership percentage that one of The Pony Club's branches has in a local riding school, measured at fair value. It is not anticipated to be sold within the next 12 months.

18 Short term deposits

18
Short term deposits
19
20
21
Deferred income (note 22)
Creditors: amounts falling due after one year
Deferred income (note 22)
Taxation and social security
Other creditors
Trade creditors
Central
Cash at bank and in hand
HQ
Branches
Accruals
Creditors: amounts falling due within one year
Branches
Trading subsidiary		 2023
2022
£
£
2,018,901
-
60,091
60,091
The group		 2023
2022
£
£
2,018,901
-
60,091
60,091
The charity
2,078,992 60,091 2,078,992 60,091
2023
2022
£
£
855,268
2,379,646
5,441,157
5,441,128
62,828
42,229
The group		 2023
2022
£
£
855,268
2,379,646
5,441,156
5,441,128
-
-
The charity
6,359,252 7,863,002 6,296,423 7,820,773
2023
2022
£
£
200,294
192,721
26,174
21,350
89,192
55,750
90,803
113,293
833,632
743,477
The group		 2023
2022
£
£
200,294
192,721
26,174
21,350
86,191
54,747
90,803
110,793
794,565
714,768
The charity
1,240,095 1,126,590 1,198,026 1,094,379
2023
2022
£
£
3,999
3,000
The group		 2023
2022
£
£
-
-
The charity
3,999 3,000 - -

33

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

22 Deferred income

Deferred income comprises of income received for branch and centre membership and events taking place in the following financial year end.

2023
2022
£
£
Balance at the beginning of the year
746,477
604,106
Amount released to income in the year
(746,477)
(604,106)
Amount deferred in the year
837,632
746,477
Balance at the end of the year
837,632
746,477
General
unrestricted
£
£
157,213
-
16,018
1,300,770
1,930,503
5,664,451
2,103,733
6,965,221
General
unrestricted
£
£
219,007
-
14,374
1,220,511
1,446,268
5,765,203
1,679,649
6,985,714
£
£
£
15,944
5,950
(4,025)
6,553
17,150
(6,562)
Total restricted funds
22,497
23,100
(10,587)
6,985,714
10,609,924
(10,599,417)
6,985,714
10,609,924
(10,599,417)
6,616
16,277
(16,277)
General funds
1,673,034
2,415,077
(1,990,995)
1,679,650
2,431,354
(2,007,271)
8,665,364
13,041,279
(12,606,688)
8,687,860
13,064,379
(12,617,275)
Designated
funds
Expenditure &
losses
Intangible assets
Designated
funds
Tangible fixed assets
Net current assets
Tangible fixed assets
Intangible assets
Net assets at 31 December 2022
Analysis of group net assets between funds (current year)
Net assets at 31 December 2023
Analysis of group net assets between funds (prior year)
Net current assets
General unrestricted funds
Branch / Area funds
Movements in funds (current year)
The group
Income &
gains
Restricted funds:
Total funds
Total unrestricted funds
Unrestricted funds:
Other funds
Sport England
Non charitable trading
At 1
January
2023
Designated funds		 2023
2022
£
£
Balance at the beginning of the year
746,477
604,106
Amount released to income in the year
(746,477)
(604,106)
Amount deferred in the year
837,632
746,477
Balance at the end of the year
837,632
746,477
General
unrestricted
£
£
157,213
-
16,018
1,300,770
1,930,503
5,664,451
2,103,733
6,965,221
General
unrestricted
£
£
219,007
-
14,374
1,220,511
1,446,268
5,765,203
1,679,649
6,985,714
£
£
£
15,944
5,950
(4,025)
6,553
17,150
(6,562)
Total restricted funds
22,497
23,100
(10,587)
6,985,714
10,609,924
(10,599,417)
6,985,714
10,609,924
(10,599,417)
6,616
16,277
(16,277)
General funds
1,673,034
2,415,077
(1,990,995)
1,679,650
2,431,354
(2,007,271)
8,665,364
13,041,279
(12,606,688)
8,687,860
13,064,379
(12,617,275)
Designated
funds
Expenditure &
losses
Intangible assets
Designated
funds
Tangible fixed assets
Net current assets
Tangible fixed assets
Intangible assets
Net assets at 31 December 2022
Analysis of group net assets between funds (current year)
Net assets at 31 December 2023
Analysis of group net assets between funds (prior year)
Net current assets
General unrestricted funds
Branch / Area funds
Movements in funds (current year)
The group
Income &
gains
Restricted funds:
Total funds
Total unrestricted funds
Unrestricted funds:
Other funds
Sport England
Non charitable trading
At 1
January
2023
Designated funds		 2023
2022
£
£
746,477
604,106
(746,477)
(604,106)
837,632
746,477
The group		 2023
2022
£
£
746,477
604,106
(746,477)
(604,106)
837,632
746,477
The group		 2023
2022
£
£
714,768
568,310
(714,768)
(568,310)
794,565
714,768
The charity		 2023
2022
£
£
714,768
568,310
(714,768)
(568,310)
794,565
714,768
The charity
837,632 746,477 794,565 714,768

£
-
1,300,770
5,664,451
Designated
funds		 Restricted
funds
£
-
-
66,010
Total funds
£
157,213
1,316,788
7,660,963
2,103,733 6,965,221 66,010 9,134,964
General
unrestricted
£
219,007
14,374
1,446,268
£
-
1,220,511
5,765,203
Designated
funds		 Restricted
funds
£
-
-
22,497
Total funds
£
219,007
1,234,885
7,233,968
1,679,649 6,985,714 22,497 8,687,860
£
5,950
17,150
Income &
gains

 £
(4,025)
(6,562)
Expenditure &
losses
 £
-
31,000

Transfers		 £
17,869
48,141
At 31
December
2023
22,497 23,100 (10,587) 31,000 66,010
6,985,714 10,609,924 (10,599,417) (31,000) 6,965,221
6,985,714 10,609,924 (10,599,417) (31,000) 6,965,221
6,616
1,673,034		 16,277
2,415,077		 (16,277)
(1,990,995)		 -
-		 6,616
2,097,117
1,679,650 2,431,354 (2,007,271) - 2,103,733
8,665,364 13,041,279 (12,606,688) (31,000) 9,068,954
8,687,860 13,064,379 (12,617,275) - 9,134,964

23a Analysis of group net assets between funds (current year)

23b Analysis of group net assets between funds (prior year)

24a Movements in funds (current year)

The narrative to explain the purpose of each fund is given at the foot of the note below.

34

The Pony Club

Notes to the financial statements

For the year ended 31 December 2023

24b Movements in funds (prior year)

Movements in funds (prior year)
Total restricted funds
General funds
Total unrestricted funds
General unrestricted funds
Sport England
Unrestricted funds:
Restricted funds:
Other funds
Branch / Area funds
Non charitable trading
Total funds
Designated funds		 £
28
3,760
At 1
January
2022		 £
20,000
7,551


Income &
gains		 £
(4,084)
(4,758)
Expenditure &
losses
 £
-
-

Transfers		 £
15,944
6,553
At 31
December
2022
3,788 27,551 (8,842) - 22,497
6,993,594 10,304,132 (10,312,013) - 6,985,714
6,993,594 10,304,132 (10,312,013) - 6,985,714
3,833
1,174,905		 29,702
2,154,766		 (26,920)
(1,656,637)		 -
-		 6,616
1,673,034
1,178,738 2,184,469 (1,683,557) - 1,679,650
8,172,332 12,488,601 (11,995,569) - 8,665,364
8,176,120 12,516,152 (12,004,411) - 8,687,860

Purposes of restricted funds

Other funds represent funds received by individual branches or headquarters for specific projects as defined by the donor.

Purposes of designated funds

Branch funds represent accumulated reserves of the individual Branches and Areas of The Pony Club. Although these reserves form part of the unrestricted funds of The Pony Club, Trustees recognise that in normal circumstances the funds will be used by the individual Branches to further the objectives of The Pony Club within their geographical area of activity. New designations represent income during the year and utilised funds represent expenditure for the year.

Non charitable trading funds are the reserves of the trading subsidiary.

25 Operating lease commitments payable as a lessee

The group's and the charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

for each of the following periods:
Less than one year
One to five years		 2023
2022
£
£
35,305
29,500
65,551
24,583
Property		 2023
2022
£
£
366
366
671
1,037
Equipment
100,856 54,083 1,037 1,403

The charity is a company limited by guarantee and has no share capital. The members of the company are the trustees named on page 2, plus the members of the Equestrian Council and the Branch Operations Directors. The liability of each member in the event of winding up is limited to £1.

35