REGISTERED COMPANY NUMBER: 03319069 REGISTERED CHARITY NUMBER: 1080896 REPORT OF THE TRUSTEES ANO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 FOR BOROUGH OF HAVANT SPORT AND LEISURE TRUST
BOROUGH OF HAVANT SPORT AND LEISURE TRUST CONTENTS TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Page Report of Ihe Trustees 1to6 ReFK)rt of the Independent Alit(S 7109 Consolidated Ststement of Financial Activibes 10 Consolidated Balanc8 Sheet 11 Consolidated Slatement of Cashflows 12 Notes to the Financial Statements 13to32
BOROUGH OF HAVMff SPORT AND LEISURE TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 The Trustee Board ol the Borough of Havant Sport and Leisure Trust ('Ihe Charrty'l are pleased to present their annual report and consolidaled financial statements of the Charity and its subsidiary for the y8ar ending 31 March 2025. These are also prepared to meet the requirements for a directors. report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011. the Companies Act 2006, th8 Articles of Association, and Accounting and Reporting by Charitie5: Stalement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standards applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 2019). Our purpog8s and a¢tivllles The pury)oses of the Charity are: to provide fully inclusive access at affordable prices to sporl and leisure facilthes. and to help improve the health and well-being ol the ¢ommunty The principal objèct of the Charity rs the provision ol services and facilities for recreation: physical and other education, or leisure time occupatson in Ihe interests of social welfare. The Charity's vision is 'lnspiring healthier, happier communities,, and Horizon is committed to proviéing best-value leisure nIreS that are accessible to all. The r&lationship with Havanl Borough Council is integral to Horizon's future strategic direction. Horizon are supporting the council in developing an Active Wellbeing Strategy for the Borough, which WIN clearly illustrate how both partners will encouragè active and healthy lifestyles for local people. In teS ol the trading subsidiary. the main undertaking is the provision of lood. beverages. and retail in the leisure oenlros operated by the Charrty, with profits gift-aided into the Charity annualiy. The strategies employed to achieve The Charivs aims and objectives are to- Providg high quality leisuie and sport facilities. Develop an Activo Wellbeing Service which is accessible to all sections of the local community. orrer a varied programme of activities (sporbng and non-SPOrting) whh encourages use of the Centres by all seclions of the CoMrnty. Provide activities at prices affordable to members of the community. Provide a wide range ot activilies to encourage all sections of the communty to participate in health and wellbeing activities", and Conlinuously review the range ol activities to ensure that these meet the evolving needs of the local community. Horizon will continue to evolve. and the lulure of provision will changa to be more aligned wilh other health and wellbeing providers. Horizon will begin to consider co-localed services and the introduction of the integrated heaith and wellbeing syst8ms lo roduc8 health Inequale$ and maximise pr8vention of specific health conditions. Over the last year, strong partnerships have been formed with Ihe NHS and Social Prescrt)ers. Hampshire mi1 and Havant Borough Council's Community Team to enhance targeted community programmes.
BOROUGH OF HAVANT SPORT AND LEISURE TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Community Heamh and Wellbeing The Charity has had a particularfy successful year in its Communty Health and Wellbeing Programme, with ovèr 719 people enrolled in our Health Referral schem8. illustrating increased engagement and comrrMtm8nt from local residents. In partn8rship with Hampshire County Council, Horizon launched a Tier 2 Weight Management programme largeting women. This funded programme has been hugely successful and impactful, entering its 20th cohort, and has sean positive result5 in terms of weight loss. improved confidence, and mott"vation to lead more active lrfestyles. With additional funding. this programme demonstrates Hon20n's ability to deliver effective health interv8ntion projects for local people. Horizon's wider social value exceeds £8.1 million. ref18Cting its signrftcanl contri1tion across lour key areas.. health. education, wellbeing, and crime reduction. This impact is achieved not only wilhin H0ri20n's facililias but across the broader community through an extensive programrne Df oulreach classes that bring physical activity directly into neighbourhoods across th8 Borough. By removing barriers to participation: HoTizon promotes hèalthier lifestyles and wider engagement. Targeted initiatives such as stroke rehabilitation. Escape Pain. and falls prevention provide critical support for individuals with complex health needs, gnabling them to mainlain independence. build confidence, and improve long-term qualty of lrfe. The W8llb8lng Hub The Wellbeing Hub at the Meridian ShoKping Centre in Havarrt is a central component of Horizon's strat8gy to advance communty heatth and reduce inequalities. Developed in parknership with Havant Borough Council. the Hub was created lo engage residents who may be less aotive or require additional support by providing easily accessible health and wellbeing services within a lamiliar high Street setting. Its Iwation outside of traditional leisure centre environments helps fostgr a more inclusive and welcoming atmosphere Ihat encourages participation from a broader cross-seclion ol the community. The Hub has quickly bècome a trnsted space for physical and mental health support, as well as a so¢ial anchor Ihat strengthen5 Community connections. Strategic partnerships with Southern Health, Smoke Free Hampshire, local physiotherapists. Havant Borough Council, arKI social prescribiNJ teams enable a coordinated model that improves r8ferral pathways and integrates SerVaS across the system. Gollaboration with the NHS has further enhanced the Hub's reach and effectiveness. During the year, 204 patients were discharged following physiolherapy programmes deltvered at the Hub, which supported reduced NHS waiting times and ensured continuity of care for individuals tranFitioning back into their daily routtnes. In 2024125, th8 Hub recorded 1.415 attendar$ for health checks including blood pressure, cholesterol, and glucosè testing. This marked a substantial increase from 501 visits during its initial nine-month peri(yJ in 2023124. Th8 Hub also offers an eight. week supported exercise programme thal equips residents to adopi sustainable. healthy lrfestyle changas. Swirn School Hollzon's Swim School continues lo be a SuSS with around 3.100 people nowlgaming to swim across the three centres, the programme has been consistent in providing pool space for those wishing to learn to swim. Swim School provides a defined pathway to competitive swimming lorms an important aspect ot Horizon's relationship vvilh Havant anrl Waterlooville Swimming Club. In 2024. Horizon Yolled out the Swim England's national syllabus for teaching swimmitvJ. This transition enhanced the quality of the programme, ensuiing that parbcipants are taught to the highest standards, which will support the conlinu8d growth and success of the Swim School. Strategic plannirrfJ of pool spac6. increased ¢xtupancy, and effective sWiMer progression have all contributed to this impressive growth.
BOROUGH OF HAVANT SPORT AND LEISURE TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Future Developmenls In partnership with Havant BC, Horizon secured £200,000 in Community Inlrastructure Levy {CILI funding from Winchester City Council, alongside £1.9 million in Section 106 5UPPOrt and a £400,000 ringfenced contribution from Horizon. These combined funds will enable a £2.7 million capital investment in the redevelopment of Waterlooville Leisure Centre. This invostrnent lollows extensive consultation wilh residents across the Borough and reflects Horizon's commilmant to providing modern. inclusive facilities that diraclly respond to community needs. Ov8r the next 12 10 18 months. Horizon will focu5 on transformiro the cenlre into a leading destination for health, Ittness, and wellbeing. Planned enhancements include expancled gyffl areas, refreshed hosprtalty and changing spaces, upgraded outdoor zones, and the introduclion of Padel court5 to support the growth of this dynamic naw sport. Family-fooused fitness concepls will also be incorporated to engage a wider demographic. The redevalopmènt presents a valuable opportunity to integrate co-located services with health partners, enabling clinical consultations, targ8led exercise programmes. and preventative support to be delivered in a single accessible setling. Once complete, Waterlooville Leisure Centre will stand as a flagship example of Horizon's vision for holistic, community-led health and wellbeing provision. Trading subsidiary The Trading Company continues lo delwer strong ¢ommercial performance. generating annual income of £360,084 in 2024125. This represents a year-on-year incroase ot £25.045: or 7.5 percent, compared to £335,039 in the previous year. The uplift reflects a focused slrategy to strengthen Horizon's food arKI beverage operalions across Havant and Waterlooville Leisure C8ntres. Enhancements included refreshed café environments, improved menu options, and more targ8t8d product development. These changes have resutted in greater customer engagement. increased dwell time, and stronger secondary spend, positioning the Trading Company as a growing and resilient contributor to Horizon's overall financial performance. Financial Porfomiance and attendances Horizon recorded another year of positive finarKial pertOrrnan for the period ending 31 March 2025. Group net surplus totalled £360,297, up from £133,614 in the previous year. Total income reached £8.1 million: representing a 15 percenl increase year on year. Visitor numbers across Hofizon's lacilities also grew substantially. In 2024125. Horizon welcomed approximately 1,250,000 visits. up Irom 1,092.160 in 2023124, a 14 percent increase. The number of active gym members increased by 23 P8Tcènt during the year, while attrtlion was consistently maintained at an average of 4 percent. These results reflecl Horizon'5 sucrKss in delivering targeted programme development, lacilty enhancennts. and customèr expèrièn improvements that conlinue to drive membEr growth. retention, and brand loyalty- Horizon's Five-year Strategy Horizon is in the fourth year of its five-year strategic plan. which sets out the organisab"on's direotion for the period 2021-2026. The strat6gic plan underpins the transformation programme. whh has tnapped out Clear objeclives to lake the organisation from 'Good' to 'Great'. The key strategic themes are-. Our Futuro Our People Our Customers Our Impact Our Finances
BOROUGH OF HAVANT SPORT AND LEISURE TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Horizon continues lo foster a high-parforming organisational culture, focused on stratggic delivery, improvement, and innovation. The current Strategy sets out a clear framework of ambttious yet achievable objecttves thai guide the organisalion's direclion and gnsure meaningful oulcomes for the communilies it serves. These objeclives shape leadership priorities and operational focus. progress evidered annually through Horizon's Impact Report. Collaborative working remains central to Horizon's success. Strong partnerships with Stakeholders and organisations across the Borough help align efforts and extend Horizon's reach. In particular. the relationship wFth Havant Borough Council continues to strengthen, built around a shared commitment to creating a heallhigr and mora active Borough. Horizon will maintain its focus on inclusive seNice d61ivery, targeted health initiatives, and communty-ba58d wellbeing solutions that reflect local needs and aspirations. Horizon has played a proactive role in shaping Havant Borough Council's Active Wellbeing Strategy and will continu8 to be a key corrtrknutor in eting our partners strategic objectives. Business Expanslon and Grow Hoii20n Guildford, which opened in June 2023. has seen Iremendous SU$$ over the lasl years of operation, significantly incraasing Hoiizon'5 reach and brand profile in the Soulh of the UK. The cenlre has becom& a valuable community asset delivering social impact and impioving the health and wellbeing of local people. Children's swimming lessons and a family swim have also been intr¢xluced, which complement the wider health and fitrjess and group exercise servIs. Over the coming year, Horizon will continue to assess luture busir7ess growlh opportunilies that have a clear straiagic fit with the charitable business de1. Capit81 Enhancemenls Horizon remains firmly committed to improving the qualty and accessibilty of its facilities lo better sèNe members and local communiti8s. In 2024125. the organisabon invested £422k into a range of targeted improvements that enhance seNice d81ivery. rnember experience. and long-tefm suslainabilty. This included upgraded café furniture to improve social spaces, soft play additions such as an inllatable lootball goal, Hyrox functional training equipment to divgrsily gym offarings, improved entry gate systems lor smoother access. and the implerrEntation of Course Pro to streamline swimming Igsson bookings. Signrficant capital inveslments also included over £250k to replace the gym strength equipment at Havant Leisure Centre, and £120k towards cardiovascular equipment upgrades at Waterloovill8 Leisure Centre. Horizon further progressed it5 environmental ambitions through the installation ot solar panals at Waterknoville SUPkK)rtÈd by a £197k Sport England sustainability grant. Conclusion Horizon has delivered a strong and progressive year throughout 202412S. mafked by targeted investmènt, innovative service development, and a deepening connection with local communrties. With expanded laciltties, rising participation, and strenglhened partnerships, the organisation continues to demnstrate meaningful progress against its strategic objectives, delivering evidence based impact in the communitias we serve. Looking ahoad. Horizon remains arr*)itious and focused on ils charitable purpos8. building momentum through collaboralion. clear direction, and sustained investrnent. With a slrong foundation in place. Horizon is wèll-positioned lo driv8 lorward inclusive growth, deliver lasting social value. and 5UPF()rt h8aKhier. more active Inies across the Borough and beyond. Reterence and admlnistrative delalls Charity Number 1060896 Company Number 03319069 Registered Office Havant Leisure Centre. Civic Centre Road. Havant. Hampshire, P092AY Our advisers Auditors MC Audrt Limite(I Station House, North Street. HavanL Hampshire, P09 1QU Bankers National Westminster Bank plc 23 W8St Street Havant, Hatnpshire. P09 1 EU
BOROUGH OF HAVA14T SPORT AND LEISURE TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Solictors Blak8 Morgan New Kings Court. Tailgate, Chandlers Ford. Hampshire, S053 3LG Insurers Aston Lark Ltd Malling House, West Malling. Kent, ME19 6QL Dlreclors and trustees The directors ol the charitable company (the Charity) are rts Trustees for the purpose of charity law. The Trusléas and officers Servi during the year and since the year-end were as lollows- Key managemenl personnel Borough of Havant Sport and Leisu Twst: P Mellor J Crouch P Jones P Lèwis SGohl R Hedley- Resigned 30 May 2024, Appointed 27 February 2025 G Fostor J Bowskill - Resigned 27 March 2025 A Rees - Appointed 25 April 2024, Resigned 27 February 2025 Secretary P Lewis S8nior Managers The Leadership Team consists ol the following tM)sts' Chief Executive Head ol Finan Commerical Director Head of People and Culture Manager Struclure. Governance and Managemenl Goveming Documonl The Borough ol Havant Sport a1 Leisure Trust is a conpany limited by guarantee, registereLI with Companias House. set up on 17 February 1997. fis aclivitFes are govemed by its Arbcles of AssociatTron. which w8re last amended on 28 April 2022. The Charity is registered wFth the Charty Commission. The members of the company are the Irusleesldireclors. Each member agTees to contribute £5 in the event of the Charity being wound up. The Charity has a subsidiary Irading company. which is a private limited company. The subsidiary is wholly owned by the charity. Appointmenl of trustees Trustees are appointed on th8 agreement of the Board following nSideratIon of a CV and formal application. In rnost cases, a Yecommendation is mado by the Board Chair arKI the Chiel Executive to the Board on suitability following an informal maeting wlch the applicant, which Can be attended by any trustee.
BOROUGH OF HAVANT SPORT LEISURE TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Trustse Induction and trainlng An induction pack provided to all new directors, which contains relevant infomation in relatson to thèir roles arKI responsibilities as Charitab twstees as well as InfoatrOn relating to the business ol the charity. The irKluction includes tour ofthe facili1S 0rated by the Charity arKI an introduction to key members of staff. Fon#1 trustee training is planned annualty although trustees can seèk assistance from senior managerrEnt at any tiwe. Topics for training vary from year to year and a democratralty agreed. Extemal speakers may be etrpbyed where necessary to provide 8xpertise in specialis1 areas. Attendan of trustee5 at annual charity presentations are actively en¢4)uraged vi order to keep up to dats on 8ector developments. OrganiMtion8 The goveming body of the Charity is the Trustee Board. currently comprises of eight trustees, and meets on a mnthly basis allhough additk?nal rringS may be called whén requid. A Chief ExeC4ve is appointed by Ihe trustees to Impleent stralegy and manage the day-ts day operations of the Charity. By rder of the Board of TrteeS P Jones ChaiThan Date..
BOROUGH OF HAVANT SPORT AND LEISURE TRUST REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 MARCH 2025 Opinlon We have audited the financtal statements of Borough of Havant Sporl and Leisure Trust (the 'charitable company'} and tts subsidiaries for the year ended 31 March 2025 on pages 10 to 32. comprise the Consolidated Statement of Financial ActivilÈs. the Group and Charity Balance Sheets and Cashflow Statements and notes to the financial stslements, induding a summary of significant accounting policies. The financtal reporting framework that ha5 been applied in their preparation is applicablè law and United lfjngdom Accounting Standards, including Financial Reporting Standard FRS 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland, (Unrted Kingdom Generally Apted Accounting Practice). In our Opini¢ the financial statements.. give a ITue and fair view of the state of the group's and the parent chaTilable companvs affairs as at 31 March 2025 and of the group's incoming resour5 and application of resources. including rts incomè and expendtture, for the year then ended.. have been properly prepared in accordance wilh Untsd Kingdom Generally Acwited Accounting Practice," and have been prepared in accordan with the requirements of the Companies Act 2ThA. Basls for opinion We conducted our audit in accordance Mth Intemational Standards on Auditi'ng (UK) (ISAS (UK>) and applicable law. Our responsibilities under those standards are futther described in the Auditors responsibilib'es for the audit cf the financ4al statements section of our reporL We are independent of the gTOUP and parent chanty in accordan wth the ethical requirements that are relevant to our audit of Ihe financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled CMJT olher ethical responsibilities in accordance wth these requirements. We believe that the audit eviden we have obtained is sufficient and appiopriale to provide a basis for our opinion. Conclusions relaling to going concern In auditing the finanaal statements, we have conduded that the trustees, use of the going cOnrn basis of aco)unling in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identified any material unrtaIn.eS relating to events or conditions that, individually or collectively, may cast significant doubt on th8 charitable company's ability to ontinue as a going concem for a period of at least 1ve months from when the financial statements are authorised for issue. Our responsibilities and the respyjnsibilities of the trustees with respect to going c(ceM are described in the relevant sedions of this reporL Other Infom)aQn The trustees are responsible for the other infoim*"on. The other infomiation comprise5 the information included in the annual report, other than the financial statements and our Report of the Independent Audttors thereon. Our opinion on Ihe financial ststetnents does not cover the other information and we do not express any fomi of assurance condusion thereon. In connection wth our audtt of the financtal statements. our responsibility is to read the other information and. in doing so, consider whether the other infomiation is materially inconsistent the finantial statements or our knowledge obtained in the audil or otherwise appeals to be materially misslated. If we identify such material inconsistencies or apparent material misstatements, we are required to deterrnine whether there is a material misstatement in the financial statements C a material misststernent Of the other information. If, based on the work we have performed, we cnndude that there is a material nis5tstement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescrfbed by the Companies Act 2006 In our opinion, based on the WOTk undertaken in Ihe course of the audit". the informab'on given in the Report of the Trustees for the financiai year for which the financial slalernents are prepared is consistent wrth the finanoal statements: and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceptlon In the light of the knowledge and understanding of the group and its environment obtained in the course of the audit, we have nol identified material l$stalernents in Ihe Rert of the Trustees.
BOROUGH OF HAVANT SPORT AND LEISURE TRUST REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 MARCH 2025 Matters on which we are required to report by exceptK)n In the light of the knowledge and understanding of the group and its environment obtained in th8 course of the audit, we have not identified matertal misstatements in the ReF of the Trustees. We have nothing to reFort in respect of the folloNing matters where the Companies Act 2006 requires us to report to you rf. in our opinion: adequat8 accounting rrdS have nol been kept or retums adequate for our audit have not bn received from branches not wsried by us,. or the financial statements ar8 not in agreement with the accounting records and retums," or certain disclosures of trustees. remuneration Specif by law are not made: or V not reiVed all the infomiation and explanations we require for our audit" or the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Sirategic Report or in preparing the Report of the Trustees. Rasponsibllltles of trustees As explained more fully in the Statement of Trustees Responsibilrties, the trustees (who are also tha directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfpd that they give a true and fair view. and for such intemal control as the trustees determine is necessary to enable the preparation of financkgl slatements that are free from material misslatement, vthether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group and parent charitls abilty to continue as a going concern. di5cbsing. as applicable. matters relaled to going concern and using the going conc8m basis of accounting unless the trust&s etiher intend to IB]uidate the group or parent charity or to cease operations. or have no realistic attemative but to do so. Our responsibilities for the audit of the financlal statements Our objectives are to obtain reasonable assurdnce a)out whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue a Report of the Independent Audrfiors that includes our opinion. Reasonable assurance is a high Ivoel of assurance, but is not a guarantee that an audit conducted in accordance wilh ISAS (UIQ will aayS detect a material misstatement when it exists. Misstatements can arise from fraud or error and are consider8d material if, individually or in the aggregate. they could reasonably be expected to infiuence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilfties for the audit of Ihe financial sLqtements is located on the Financial Reporting Council's website at .frc.0rg.UkIaudltorsreSponslb1[itles. This description forms part of our Report of the Independent Auditors. Irregularities, including fraud. a instanc8s of non-compliance with lalvs and regulations. We desKJn proc&Jures in line wrth our ponsibIlItIes. outlined ove, lo d8t8Ct material misststements in respect of irregularities, including fraud. The extent to which our procedures ¥e capable of detecting irregularities, including fraud is detailed below. From discussion with management and Ihose charged with governan inftxmation about the entty is documented to assess the activity within the organi6ion. We discuss management's assessment of risk in respect of irregularities. fraud and g01r COnrn. Based on these discussions and our own assessments we delemined that the key risk areas were income recognition in respecl of cut off issues concemin9 ticket sales and grant income and management override Conrning the svze of the organisation. We set financial statement materialty level based on the level of income. As a not for profrt organisation raising income is its primary focus which is why income was used lo determine the level of materialty. Our overall assessment of risk was used to detemine perfomiance materiality at an appropriate level.
BOROUGH OF HAvAr SPORT AND LEISURE TRUST REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 MARCH 2025 Substantrve audit tests were designed after assessing testing systems and contro15. The systems and controls which have been deswJned to act as a preventalive measure against fraud and error were operating as documented. Substantive testing tested a sample of Ihe population, repreSentatTr of the population, to identify errors. The tests'ng not identify any material misstatements in areas tested. Audrt substantive tests concluded rK) material errors over the key risk areas of income recognitton and management overrtde. The audit considers the organisation is not exposed to material risk of error as a result of assessing laws and regulstions that are appropriate to the organi5ation. Management assessed there is no going concem risk. The audit undertc4)k a review of budgets. management accounts and the review of board minutes and came to the same conclusion as management. Use of our report This report is made solety to the charitable companls members, as a body, in &cOrdan with Chapt8r 3 of Part 76 of the Companies Act 201A. Our audit wcKk has bn undertaken so that we might stat8 to the charttable companys members those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest exienl permitted by law, V do not accept or assume responsibility to anyone other than the group and the parent charity and the Charitab companls members as a body, for our audit work. for this report. or for the opinions we have formed. Stuart Mackie {Senior Statutory Audttor) for and on behalf of MC Audit Limited Chartered Accountarrts Statutory Auditors StatK)n House North Street Havant Hampshire P09 1QU Dat8. tr-<
BOROUGH OF HAVANT SPORT AND LEISURE TRUST CONSOUDATED STATEMENT OF FINANCIAL ACTMTIES IINCORPORATING A CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025 Unrestricted Restricted Funds Funds 2025 2025 Total Funds 2025 Total Funds 2024 INCOME FROM Charita le activities: Operalion of leisure ntreS Income from donations 6,986.182 637.500 76,200 7,062,382 637,500 8,046,740 637.500 Other tradin activi Commercial Irading OperatiCS Investment income 360.084 79.247 360.084 79,247 335.039 50,862 Total 8.063.013 76,200 8,139,213 7.070,141 EXPENDITURE ON of raisin funds". Commercial trading operations 343,707 343.707 308,010 Charitable activities." Operation of leisure centres Donated facilities 6,736.432 637,500 76,200 6,812,632 637,500 5,989,685 637,500 Totsl 25 7.717.639 76,200 7,793,839 6.933,195 Net gainsl(losses) on investments 14,923 3.332 NET INCOMEI(EXPENDITURE) 360.297 360,297 133.614 Transfers between funds 217,085 (217,085) Other rec nised ainsl Actuarial gainsl(losses) on defined benefit pension scheme5 102,000 102.000 54.000 NET MOVEMENT IN FUNDS 679,382 (217.085) 462,297 187,614 RECONCILIATION OF FUNDS Total funds brougm foDh?rd 6.761,609 217.085 6.978,694 6,791,080 TOTAL FUNDS CARRIED FORWARD 7.440.991 7,440,991 6.978,694 io
BOROUGH OF HAVANT SPORT AND LEISURE TRUST CONSOUDATED AND CHARITY BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2025 Group 2025 Group 2024 Charity 2025 Charity 2024 FIXED ASSETS Tangible assets Investments 18 19 5,497.584 153.7T7 5,530,332 138,854 5.460.231 153.T79 5,489,364 138,856 5,651.361 5,669,186 5,614,010 5,628,220 CURRENT ASSETS Stocks Current asset investments Debtors Cash at bank and in hand 20 21 21,049 965.519 406.364 1,396,243 8,511 258,721 196,911 1.956.880 965,519 399,360 1,372,742 258,721 193,290 1,933.373 28 2,789,175 2,421,023 2.737,621 2,385,384 CREDITORS Amounts falling due within one year (788.487) (713.983) (757,312} (699.639) NET CURRENT ASSETS 2.000,688 1,707,040 1,980,309 1.685,745 TOTAL ASSEfs LESS CURRENT UABIUTIES 7,652,049 7,376,226 7,594.319 7,313,965 CREDITORS Amounts falling due in more than one year (211.058) (300.532) (211,058) 1295.178) NEf ASSEfs EXCLUDING PENSION UABIUTY 7.440,991 7.075.694 7,383.261 7,018,787 Defined benefrt pension scheme liabilty NEf ASSErs 29 (97.000) {97,000) 7,440.991 6,978,694 7,383.261 6.921,787 FUNDS Unrestricted funds= Unrestricted funds excluding pension liabilty Pension reserve 25 7.440.991 6,858.609 {97,000 6,761.609 217,085 7,383,261 6,801,702 97,000) 6,704,702 217,085 7,440,991 7,383,261 Restricted funds TOTAL FUNDS 7,440,991 6,978.694 7,383,261 6,921,787 The financial statements were approved by the Board of Trustees on on their behalf ofi and srgned P Jones - Chaimian li
BOROUGH OF HAVANT SPORT AND LEISURE TRUST CONSOUDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 Group 2025 Group 2024 Charity 2025 Charity 2024 Cash flows from operating acllvftres Cash generated from operations 665.614 695.717 638,972 661,520 Cash provided by (us8d in) operating activltles 665.614 695,717 638,972 681,520 Cash flows from Investing actlvltles Interesl income Purchase of investments Proce8ds on sale of investrnents Proc6eds on sale of fixed assets Purchase of tangible fixed a&sets 79,247 (706.798) 50.862 79.247 (706,798) 50,862 1.735,173 1,735.173 10,650 (528.676) (1.406,675) 10,650 (509,360) (1.386,802) Cash provtded by (used in) Investing activiti6s (1,145,57T) 379,360 {1.128,261) 399,233 Cash fiows frotn financlng activltles Cash inflo from new bOo1ng Repayment of borrowing 416,186 (102.218) 418,186 (94,886) (80.674) (73.342) Cash provlded by lused in) financlng activfties (80.674) 313,968 (73.342) 321,300 Change in cash and cash equivalents in the reporting period (560.63n 1,389,045 {560,631) 1,382.053 Cash and cash equivalents at the beginning of the repOlng period 1.956.880 567,835 1,933,373 551.320 Total cash at the end of the year 28 1,396,243 1,956,880 1.372,742 1,933,373 12
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES The principal accounting policies adopted, judgerrrents and key sources of estimation uncertainty in the preparatTron of the financial statements are as follows: Basis of preperdtion of financial statemenls The financial ststements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended PrtICe applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Iland (FRS 102) and the Companies Act 2006. Borough of Havant Sport and Leisure Trust meets the definition of a Publ benefit ents'ty under FRS 102. Assets and liabilrties are initially recognised at historul cost or transaction value unless otherwise stated in the relevant &counting policy notels). 1.2 Preparallon of the accounts on a golng concorn basis The Charity reported a cash ouffl(Y¥V of £480k {2024: inflow of £1,07S() frorn operating activities and investing acts"vities. At the year end the group had free reseNes totalling £477k (2024.. £424k). The designation of funds for fulur8 projects and potential shortfrdlls is considered to ensure the future of the charity. The trustees have reviewed projected income and expenditure for the next t4velve months and on that basis the Charity is a going COnrn. 1.3 Group financial statements The financial statements consolidate the resums of the Charity and ts OllY owned subsidiary, Borough of Havant Sport and Leisure Trading Limited, on a line*y-line basis. A separate Statement of Financial Activities and Income and Expendrture Account for the Charity h85 not been presented because the Charity has taken advantage of the exemption afforded by section 408 of the Companies Act 21x6. 1.4 Income Income is reccrfJnised when Ihe Charity has entitlement to the funds. any perfomance conditions attached to the item(s) of income have been met. it is probable that the income ll11 be received and the amount can be measured reliably. Income represents point of sale reIpts and amounts invoiced. exduding value added tax, in resped of the sale of gotsS and services to customers. It7come from local authorrty and other grants is recognised vthen the Charity has entitlement to the funds. any performance condrtions attached to the grants have been met. it És probable that the income will be received and the amount can be measured relkqbty and is not deferred. Investment income is accounted for in the pericxl wi which the Charity is entitled to rec8ipI. Income receN8d in advance of a frtness class, swimming lesson or parties is deferred until the criteria for income reccAJnition are met (see note 23). 13
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1.5 Donated services and facilities Donated professional services and donated facilities ar8 recognised as income when the Charity has control over the item, 8ny condrtions ass¢xiated wrth the donated item have been met. the receipt of economic benefrt from the use by the Charity of the item is probable and that economic benefrt can be m&3sured reliably. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the grft to the Charity which is the amount the Charty would have been wlling to pay to obtain servus or facilities of equivalent economic benefrt on the open market. a corresponding amount is then recognised in expenditure in the period of receipt. Donated facilrties refiect rateable value of the leisure centres provided by the local authority for no charge and a 20% discretionary lief provided by the kKal authonty on the National Non Domestic Rates bill. 1.6 Interest receivable Int8rest on funds held on deposit is included vthen receivable and the amount can be measured reliably by th8 charity., this is normally upon notific3tion of the interest paid or payable by the Bank. 1.7 Fund accounting Generdl funds are unrestricted funds which are available use at the discretion of the Trustees in furtherance of the g8neral objectives of the Charty and which have not been desTrgnat8d for other purposes. D88ignated furKls comprise unrestricted funds that have been set aside by the Trustees for specrfic purposes. Restricted funds are funds whh ar8 to be used in accordance with spe¢rf restrictions imposed by donors or which hwrfe been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specifr fund. Investment inccxne, gains and losses are allocated to the appropriate fund. 1.8 Expenditu and Irrecoverable VAT Expenditure is recognksed onc8 there is a legal or conslructive obligation to make a payment to a third party. it is probable that settlement will be required and the amount of the obligatn can be measured reliably. Where costs cannot be directty attributed to particular actr{tieS they have been allocated on a basis consistent wfth the use of the resources. Costs of raising funds comprise the c0515 of commercial trading including the cafes and gwds for resale and their associated support costs. Expendtiure on charitable activities includes costs associaied with the running of the 181sure centres and include both the direct costs and support costs relating to these actNities. Support costs include central fUnctiS and have been allocated to actNity Cost categories on a basis consistent with the use of resources, e.g.. allocaling property costs by fioor areas. slaff costs by time spent and other costs by their usage. Irrecoverable VAT is charged as a cost against the actr+Aty for which the expendtture was incurred. 14
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1.9 Allocatlon of support costs Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activi(18s. Support costs include support office costs, finance, personnel. payroll, and govemance costs whh support the Charitrfs leisure programmes and actrvities. These costs have been allocated between cost of raising funds and expenditure on charitable activities wh8re applicable. The bases on vthich support costs have been allocated are set out in note 9. 1.10 Operatlng leases Rentsls under operating leases are charged lo the Statement of Financial Activities on a straight line basis over the lease temi. 1.11 Tangible red assets and d@precian Tangible fixed assets are sl*8d at cost less depreciation. Substantial assets are review8d and broken down into component parts where the useful economic life of a component is significant derent to th8 rest of Ihe asset. All assels costing more than £1.000 are capitalised. Depreciation is provided at rates cakulatwj to write off the cost of fixed assets, less their estimated residual Yalue, over their expeCtj useful Itves on the following bases: Leasehold property consisting of: - Land and buildings.. Over the period of the1&gse - Other components: Over 10 - 15 years straight line Plant & machinery.. 10% - 33% straight line Income generating equipment: 20°/o - 50% straight line Operational equipment". 200A - 33°/o Straight line Assets under construction: No depreciation charg8 1.12 Investments (i) Fixed asset investments are stated at market Wdlue at the balance sheet date. The Statement of Financial ActNiti&s includes the net gains and losses arising on revaluations and disposals throughout the year. Investments in subsKliarres are valued at cost less provision for impainnent. (iii) Current asset investments include short term highly liquid investment5 that require more than three months but kn than one year notice to rythdraW cash. 1.13 Stocks Stocks are valued at the lower of cost and net realisable value afler making due allowance for obsolete and sk>w movng stocks. 1.14 Debtors Trade and other debtors are recognised at ttre settlement amount due. 1.15 Creditors Creditors and provisions ar8 recognised vthere the Charty has a present obligation resulting from a past event that will probably result in the transfer of funds to a third paty and the amount due to settle the obligation can be measured or estinated reliably. 15
BOROUGH OF HAVANT SPOl¥t AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1.16 Flnance leases Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the charity, are capitalised in the balance sheet and are depreciated over the Shorter of the lease term and the assets, useful INes. A corresponding liabilty is recognised for the fair value of the leased asset in the balance sheet. Lease payments are apportioned bebNeen the reduction of the lease liability and finance charge8 in the Statement of Financial Activities so as to achieve a constant rate of interest on the remaining balan of the Iwbility. 1.17 Pensions The company operates a defined beneffts pension scheme which requires contributions to be mad8 to a separatety administered fund. The scheme is dosed to new members. A defin8d contribution pension Scheme is available to all employees. The cost of providing beneffts under the defined benefrt plan is determin8d using the prc4ected unit credit method. vthich attributes entitlement to ben8fts to the current period (to determine current service cost) and to the current and prior peri(xls (to detemine the present value of defined benefrt obligations) and is based on actuarial advice. When a settlement or a Curtailment occurs the change in the present value of the scheme liabilitw and the fair value of the plan assets reflects the gain or loss which is recognised in the income stalement during the period in which rt occurs. The net interest element is detennined by multiplying the net defined benefrt liabilily by the discount rate, at the start of the period taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefft payments. The net interest is recognised in income or expenditure as other finance revenue or cost. Rewmeasurements. comprising actuartal gains and losses, the effect of the asset ceiling and the retum on the net defined benefrt liabilty (excluding amounts included in net interest) are recognised immediatety in other comprehensive income in the perd in which they occur. R8- measurements are not reclassified to txofft and loss in subsequent peri(xls. The defined net benefrt pension asset or liabifty in the balance sheet comprises the total of the present value of the defined benefrt obligation (using a discount rate based on huh qualty corporate bonds). less the fair value of plan assets out of whKh the obligations are to be settled directly. Fair value is based on market pr infonnation and in the case of quoted securities is the published bid pr. value of a net pension benefit asset is limited to the amount that may be recovered eiiher through reduced contributK)ns or agread refunds from the scheme. Allowance has been made for full indexation on all Guaranteed Minimum Pensions (GMP) for members whose State Pension Age is on or after 6 April 2016. A Mccloud underpin liability has been c*ulated with the assumption that the underpin applies to 1) all members in service on 1 April 2012 2) members, benefts on reaching retirem8nl {nonnal or ill health), or on prK)r wf(hdrawal, and 3) spouse's benefts on death after retirement. Contributions to defined contributn schemes are recognised in the profrt and loss account in the period in Vthh they become payable. 16
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1.18 Judgements The preparation of the financial statements requtres management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reFQrted for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those astimates. Th8 followng judgements (apart from those involving estimates) have had the most signffic8nt effect on amounts recognised in the financial stalem8nts. Operating and finance lease c(xnmilments The Charity has eered into leases as a lessee for use of planl and equipment. The classification of such leases as operating or finance lease requires the Charty to deterrnine, based on an avaluation of Ihe terms and conditions of the arrangements, whether it retains or acquires the s1gnffAnt risks and rewards of ownersh¥) of these assets and accordingly whether the lease requires an asset and liabilty to be recognised in the balance sheet. One lease has been recognised as a finance lease. Pensions The cost of defined benefft pension plan is detemiined using actuarial valuations. The actuarial valuation invo$ making assumptDns about discount rates, future salary increas8S, mortali rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long-temi nature of these plans, such estimates are subject to significant uncertainty. Management have placed reliance on the figure5 ppared by the work of an expert. Further details are given in note 29. Fixed Assets The Charty purchases fed ass8ts and writes the cost less estimated resKlual value down over the expected useful lrfe of each asset. Choosing the useful economic lrfe of an asset is judgement by management that impacts on the financial statements over a number of years. A small variation in the lrfe coukl have a signrficant affect on the financial statements. The useful life of the asset is determined in the year of purchase and is based on experien. This is reviewed annually to ensure it is still appropriate. LEGAL STATUS OF THE CHARITY The Charty is a ccmpany limtted by guarantee and has no share caprtal. The members of the company are the Trustees named on page 8. In the event of the company being Yund up, the liability in respect of the guarantee is limited to £5 per member of the Charty. 17
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 3. INCOME FROM CHARITABLE ACTIVITIES Unrestricted funds 2025 Restricted Unrestncted funds funds 2025 2024 Restricted funds 2024 Grants from instituiions Operation of leisure nIreS 198,888 6,787,314 6.986,182 76.200 5.053 5.992,608 49.079 76.200 5.997.661 49.079 INCOME FROM DONATIONS 2025 2024 637,500 637,500 Donated facilities INCOME FROM OTHER TRADING ACTIVITIES The wholty owned trading subsidiary the Borough of Havant Spcxt and Leisure Trading Limited is incorporated in the United Kingdom (company nunber 34(79) and pays all of ts profts to the Charity under the gift aid scheme. The subsKliary operates café and bar facilities and sells leisure goods. All commercial trading operations are carried out at the CharitS leisure centres. A summary of the trading results is shown below. 2025 2024 359,513 (347.261) (12,000) 334,573 {306,010) (13,110) Tumover Cost of sales and administration costs Management charge expense (Xh8r operating income Interest re1vable 571 823 15,919 Net profft Amount gfft aided to the charty Retained in SUbslary 823 15,919 The assets and liabilrties of the subsidHry were: Non-curr8nt assets Current assets Current liabilities Non -current liabilrties 37,352 54.959 {34,579) 40,988 61,648 (40.353) {5.354) 56.909 57.732 Total net assets 6. INVESTMENT INCOME 2025 2024 79,247 50,862 Bank interest 18
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 DIRECT COSTS Provision of sporting and leisure facilities to the public Total funds Total funds 2025 2025 2024 Operational staff Other finance expense (Note 17) Equipment and materia Subcontractors Premises and equipment maintenance Repair and replacement rtureS Energy and utiltty Third party support and insurance Marketing, unrecoverable VAT and other (Gains}Ilosses on disposal of ftted assets Depreciation Governance costs Support costs 3.749.016 5,000 163,150 3,749,016 5.000 163.150 3,354,360 8,000 107,545 612,700 125,635 778.160 192.736 315,658 24,700 503.184 139.682 203,031 612,700 125,635 778.160 192,736 315,658 24,700 503,184 139,662 203,031 605.230 117,156 612,002 166,683 314,852 (12,752) 426,231 98,151 192.227 6,812.832 637,500 6,812,632 637.500 5.989,685 637,500 Donated facilities 7,450,132 7,450.132 6,627,185 Expenditure on charitable activities was £6.812,632 (2024.. £5.989.685) of whth £6,736,432 wa5 unrestricted (2024: £5.934.358) and £76,200 was restricted (2024: £55,327). SUMMARY OF ANALYSIS OF EXPENDITURE AND RELATED INCOME FOR CHARITABLE ACTIVITIES This shovrs the Cost of the main charitable activity and the sources of incoffE that directly support those activities. Pro¥isK)n of sporting and ietsure facilities to th8 public 2025 2024 Costs Income from sport and leisure facilities Net income to fund future costs arKI projeds (6,812,632) (5,989,685) 7,062,382 6,046.740 249,750 57,055 19
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ANALYSIS OF GOVERNANCE AND SUPPORT COSTS The Charity iniiially identifies the costs of its support functions. 11 then identrfies those costs which relate lo Ihe governance function. Ha4irvJ entIfied its governance cost5 these. along with Ihe remaining support costs, are allocated to the cost of the Charivs key charitable activity. The table below shows the basis of apportionmenl and the analysis of support and govemance costs. General Govemance Support functDn 2025 2025 Total 2025 Basis of apportionment Govemance &)vernance Time allocated As invoiced Support Audft, *al and professional (Note 11) Trustee expenses and indemnty insumce Corporate Offi st8ff costs IT and p8yroll running costs Council pension settlement 139,113 549 139.113 549 203,033 203,033 203,033 139.662 342,695 10. TURNOVER All tumover arose within the United Kingdom. 11. NET INCOMING RESOURCES 2025 2024 This is stated after charging- Depreciation of tangible red assets: Owned by the charitable group Assets hekl under finan ase (Surplus)Loss on disposal of fixed assets Auditols remuneration". Auditorfs remuneration Auditorfs remuneration- Other services Operating leases - equipment 445,400 80.674 24,700 378,129 72,742 (12.752) 12.300 3,350 23,354 11.700 3,150 2,285 20
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 12. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES. AND THE COST OF KEY MANAGEMENT PERSONNEL 2025 2024 Staff costs were as follows: Wages and salaries Social security costs Other pension costs (Note 29) Redundancy costs 3.577,079 223.422 58,846 20.818 3.204.606 204,042 44,652 3.880.165 3,453,300 2025 No. 2024 The number of higher paKI employees was: In th8 band £60,001- £70,000 £70,001- £80,000 £80,001- £90,CQO £90,001- £100.000 £100,001- £110,0(J) £110,001- £120.000 Pension costs are allocated to activities in prOptIon to the related staffing costs incurred and are wholly charged to unrestricted funds. During the year, no trustees reCeId any remuneration (2024: £NIL). During the year, no trustees received any benefrts in kind (2024: £NIL). Two trustees recerved rewnbursement of expenses amounling to £437 in the current year {2024: one trustee received £235). The key management personnel of Ihe pant charty comprise senior management team consisting of the Chief Executive. Head of People and Culture, Head of Finance and Commercial Director. The total employee benefrts of the key management personn81 of the Chartty were £356.970 (2024: £322.347). The key management personnel of the group comprise those of the Charity and the directors of ts wholly owned substdiary, Borough of Havant Sport and Leisure Trading Limited. 13. STAFF NUMBERS Th8 average monthly head count including casual and part-time staff during the year as follcybvs 2025 2024 No. Management Other 220 195 224 199 21
BOROUGH OF HAVANT spoi¥r AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 14. RELATED PARTIES In 2025 the following transactions took place between the Charity and ts wholty ovfflgJ subsKJkgry Borough of Havant SFQrt and Leisure Trading Limited: The provision of kitchen facifities at the Waterkoville café and kitchen 4uipment by the Charity to Borough of Havant Sport and Leisure Trading Limrted of £1,084 (2024: £1,084). The promsion of management and administrative services by the Charity to Borough of Havant Sport and Leisure Trading Limited totalling £12,CN)0 {2024: £12.000). The transfer under gift aid of the Irading profrts of Borough of Havant Sport and Leisure Trading Limited to the Charity of £Nil {2024". £Nil). At the balance sheet date the Charity owed Borough of H¥rfant Sport and Leisure Trading Limited £3,403 (2024.. £26,009). The majorty of this balance represents receipts received by the Charty on b8half of Borough of Havant Sport and Leisure Trading Limited which were not paid to the Trading Company as at 31 March 2025. 15. GOVERNMENT GRANTS Income from Government grants comprises project related grants made by Local Authorities to fund specffic sport, leisure and health projects run by the Charity. Below are the Government Grants reced in the current and previous financial year. 2025 2024 Government grants 275.178 78,090 16. CORPORATION TAX As a charity. the Borough of Havant Sport and Leisure Trust benefft5 from various exemptions frc taxation afforded by tax legislation and is therefore not liable to cotporation tax on income or gains falling within those exemptions. 17. OTHER FINANCE EXPENSES 2025 2024 Expected return on pension scherne assets Interest on penston scheme liabilities 190,000 (195,000) 1TT,000 {185,000) {5,000) (8,000) 22
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 18. TANGIBLE FIXED ASSETS- GROUP Assets under construction Lrrem Income Leashold Plant and generating Operational Property M¥hinery equipment Equipment Total COST At 1 April 2024 Addrtions Disposals 60,339 8.033,804 151,187 201.470 (34.678) (1,619) 42,028 1.844.668 14,078 36,290 {688) (918) 55,418 1.880,040 818.672 10.799,511 125,651 528,676 (37,901) Al 31 March 2025 176,850 8,233,655 944,323 11,290,286 DEPRECIATION At 1 April 2024 Charge for year Eliminated on disposaL 3,247.189 321.589 (1.174) 29,985 1,388,679 11.613 121.433 (688) {689) 603,326 71.439 5,269,179 526,074 (2.551) At 31 MaTch 2025 3,567,604 40,910 1,509,423 674.765 5,792,702 NET BOOKVALUE At 31 March 2025 176.850 4,666.051 14,508 370.617 269,558 5.497,584 At 31 March 2024 60.339 4,786,615 12,043 455,989 215,346 5,530,332 TANGIBLE FIXED ASSETS - CHARITY Assets under onstruction erni Income Leashold Plant and g8nerating Operational Propety Machinery equipment Equipment Total COST At 1 April 2024 Additions Disposals At 31 March 2025 60.339 8.033,804 151,187 201,470 (34,676) (1.619) 176,850 8,233,655 1.802.643 31,052 {918) 812,608 10,709,394 125.651 509,360 (37,213) 938,259 11.181.541 1.832,777 DEPRECIATION At 1 April 2024 Charge for year Eliminated on disposal: 3.247,189 321.589 (1.174) 1.369,515 110,115 {689} 603,326 71.439 5,220,030 503,143 (1,863) At 31 March 2025 3.567.604 1,478,941 674,765 5,721,310 NET BOOK VALUE At 31 March 2025 176.850 4.666,051 353,836 263,494 5,46Q,231 At 31 March 2024 60.339 4,786.615 433,128 209.282 5,489,364 23
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 19. FIXED ASSET INVESTMENTS Group Listed Securities Market value At 1 April 2024 Disposals Revaluations 138,854 14,923 At 31 March 2025 153,777 Hlstorlcal cost 70,000 The listed securities are al held in unit trusts lYnit8d on the UK Stock exchange Shares in Listed group S8curtEies undertakings Charity Total Markotvalue At 1 April 2024 Disposals Revaluations 138.854 138.856 14.923 14,923 At 31 March 2025 153.TTI 153,779 Hlstorlcal cost 70,000 70,002 The Charty owns the whoEe of the issued share capital of the Borough of Havant Sport and Leisure Trading Limited. a company incorporated in England and Wales which carries on the business of running a café. Th8 investrnent, which consists of 2 ordinary share5 of £1 each, is sho at cost. In the opinion of the Trustees, the aggregate value of the shares in and amounts ovng from the Company's subsidiary is not less than the aggregate of the amounts al which those assets are stated in the companrfs balance sheet. The activiiies results of this company are summarised in note 5. 20. STOCKS Group 2025 Group 2024 Charity 2025 Charty 2024 Catering supplies 21,049 8,511 21. CURRENT ASSET INVESTMENT Group 2025 Group 2024 Charity 2025 Charty 2024 Cash on deposit b8tW8en 3 and 12 months 965.519 258,721 965,519 258.721 24
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 22. DEBTORS: Amoupifs FALLING DUE THIN ONE YEAR Group 2025 Group 2024 Charty 2025 Charity 2024 Trade deblors prepaentS and accrued income Other debtors Amounts (Md by group undertakings 26,506 184,118 195,740 38.991 157.920 24,298 179.322 195.740 38,279 155,011 41%,364 196.911 399.360 193,290 23. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2025 Group 2024 Charity 2025 Charty 2024 Trade creditors Scrtial securrty and other taxes Other creditors Finan leases Amounls owed to group undertakings Accruals and deferred income 227.5(J) 66.759 26.899 89.472 216,584 70.663 22.252 80.672 211,162 55,517 26,899 84,118 3,403 376.213 200.594 57.040 22,252 73,340 26,009 320.404 377,857 323.812 788.487 713,983 757,312 699.639 DEFERRED INCOME Deferred income comprises advance bookings of frtness classes, swimming 18ssons and parties that take pla after the year erKI. Group 2025 Group 2024 Chariiy 2025 Charty 2024 Brought forward Amount released to incoming resources Amount deferred in year 203,686 (203.686) 248.914 105.532 (105,532) 203,686 203,498 (203,498) 248,914 105,532 (105,532) 203,498 Carried forward 248.914 203,686 248,914 203,498 24. CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR Group Group 2025 2024 Charity 2025 Charity 2024 Finance Se8 211,058 300,532 211.058 295,178 211,058 300,532 211,058 295,178 25
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 25. STATEMENT OF FUNDS Broughl forward Incoming Resources Transfers 1 April 24 resour expended inl(out) Carried Gains I forward (losses) 31 March 25 DESIGNATED FUNDS Improvement reseNe Lrfe cycle programme reseprfe LGPS def1t reserve Fixed asset reserve Fixed asset reseNe Guildford WLC extension reserve Project reserve 416,178 200,000 59,220 475,398 200,000 97.(X)O 4,485,821 835,401 (97.000) 235,582 (59.220) 4.721,403 776,181 400,000 400.000 195.740 195,740 6,434.400 334,322 6.768,722 GENERAL FUNDS General reserve Pension reserve 424.209 7,873.013 (7.522,639) (117,23n {97,LKIO) 190,000 (195.000) Total unrestricted funds 6.761,609 8,063.013 {7,717.639) 14.923 102,000 672,268 217.085 116,923 7,44D,991 RESTRICTED FUNDS WLC Extension fund Refurbishment prqecl fund Disabled changing r(KJm fund CommuntyAgainst Cancer Fund Fburish Grant AclNe Play Grant Beating Heart Grant Beat It Grant Energise Me Grant Total restricted fvnds 148,030 52,546 (148,030) (52,546) (8,534) 60.106 (80.106) 5,975 {5.975) 2.000 16.094 (16,094) (2.OCN)) 217.085 76,200 {78,200) (217,085) Total of fvnds 6.978,694 8.139.213 (7.793.839) 116.923 7,440,991 26
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Comparattves for movement in funds Brought Carried forward Incoming Resour Transfers Gains I fofward 1 April 23 resour expended inl(out) (losses) 31 March 24 DESIGNATED FUNDS Operaltonal reserve Improvement reser Lrfe cycle programme reserve LGPS def1t reserve Fixed asset reserve Fixed a&8et reserve Guildford Guiklford prcyect reserrfe WLC extension reserve 673.469 200,000 (257,291) 416.178 200.000 150.000 4.288.093 (53.000) 197,728 835,401 97,000 4,485,821 835,401 888.300 (888,300) 400,OIX) 400,000 6,199,862 234,538 6,434,400 GENERAL FUNDS General resenie Pension reseple 425,880 6.844.062 (6,692,868) (149.533) (143.000) 177,000 {185,000) Total unrestred funds 6,482.742 7.021,062 {6.877.868> {3,332) 54,000 424.209 (97.000) 85,005 50,688 6,761,609 RESTRICTED FUNDS WLC Extension fund GP Referral training grarrt Refurbishm8nt project fund Disabled changing room fund Communty Against Canr Fund Flourish Grant Adive Play Grant Beating Heart Grant Beat It Grant Energise Me Grant Total restricted funds 1&8,739 (8,709) 148,030 139,511 (3.672) (83,293) 52,546 11,113 {867) {1,712) 8.534 975 (975) 29.114 15,000 1,000 2,000 1,965 {29.114) (9,025) (1,000) 5,975 2,000 (1,965> 308,338 49,079 (55,32n (85.005) 217,085 Totsl of funds 6,791,080 7,070.141 {6.933,195} 50,668 6,978,694 27
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 The designated funds conslst of: Operational reseNe'. Funds set aside to meet any shortfatl ben the anticipated incorne and budgeted outgoings and any unforeseen expenditure. It will also be available to assist in the funding of new actNities not foreseen in budgets. Improvement reseNe'. Funds set aside for future projects. these amounts have been funded cash surpluses generated in the year. Some prqects still require additional funds. Lrfe cycle programme r8serve.' A programme run by the Charty for the continuirg refurbishment of the leisure cenlres. LGPS deficit r&8errfe'. Funds set aside to pay off LGPS deficit. Fixed assets reserve: The value of unrestricted funds rewewted by tar¥Jible fixed assets owned and used by the Charty for leisure activities. The restricted funds constst of: WLC extension fund: The S106 contributTron passed on by Havant Borough Counal to partly fvnd th8 building of the Waterlooville extension. Refurbishment projects fuThJ: This fund relates to remedial works and improvements lo buildings and facilities funded by a capital grant in previous years. Disabled changing room fund: Thk8 fund relates to Conversic works to create a disabled changing rocyn facilty funded by a capital grant in previous years. Other small grants - represents income received the year to fund small projects. This funding was spent on the relevant activities In the year. Transfers The amounls transferred from restrted to unrestricted funds are due to the restricted being satisfied on those particular capital rtems. 28
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 26. ANALYSIS OF NET ASSETS BEfwEEN FUNDS Unrestricted Designated funds funds 2025 2025 Restricted funds 2025 Total funds 2025 Tangible frxed assets Fixed asset investments Current assets Creditors du8 Within one year Creditors due after one year Provisions for liabiliti8s and charges 5,497,584 153,T77 1.117,361 5,497,584 153,777 2.789,175 1788,487) (211.058) 1.671.814 (788,487) (211.058) 672,269 6.768,722 7,440,991 27. RECONCIUATION OF NEf INCOMEI(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES Group 2025 Group 2024 Charity 2025 Charty 2024 Net incomel(expenditure) Adjustments for: Depreciation charges Lossesl(gains) on investments {Profftyloss on disposal of fed assets Interest reNed (Increase)IDecrease in slock {Increase)IDecrease in debtors Increasel{Decrease) in credrtors FRS17 pension adjustment 360,297 133,614 359,474 132,776 526.074 (14,923) 24.700 (79,247) (12,538) (209,453) 65.704 5.000 450.871 3.332 2.326 (50,862) (1.100) 488 149,048 8,000 503,143 (14,923} 24,700 (79,247) 437,489 3,332 {12,752) (50.862) (206,070) 46,895 5,000 (1.024) 144,561 8,000 665.814 695,717 638,972 661,520 28. ANALYSIS OF CASH AND CASH EQUNALENTS GTOUP 2025 Group 2024 Charity 2025 Charity 2024 Cash at bank and in harKJ 1.396,243 1.956.880 1.372.742 1,933,373 1.396,243 1.956,880 1.372,742 1,933,373 29
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 29. PENSION COMMITMENTS The company operates a defined contributlon penslon scheme. The assets of the scheme are held separately from those of the company in an independent administered fund. The pension cost charge repr8sents contributions payable by the company to the fund and amounted to £2,000 (2024: £5.000). Contributions totalling £Nil (2024: £Nil) were payable to the fund at ihe balance sheet date and are included in creditors. The company operates a final salay defined benefft pension scheme. The company participates in the Local Government Pension Scheme. The Local Govemment Pension Scheme is a defined benefrt scheme based on final pensionable salary. Three members of staff are members of the scheme. which is closed to new members. The Trustees are monitoring the potential impact of the final employee leaving the scheme and the liabilty crystallising. The most recent valuation was canied out as at 31 March 2025, and has been updated by independenl actuaries to the Hampshire County Council Pension Fund {the Fund) to take account of the rèquirements of FRS102 in order lo af/sess the liabiltttes of the Fund. Scheme assets are stated at their market value5 at the respective balance sheel dates and overall expected rates of retum are established by applying published brokers, forecasts to each category of scheme assets. The assets and liabilities of the scheme at 31 March are: 2025 2024 Scheme assets at fair value Equities Govemment bonds Cash Prop8ty Other 2,074.280 1,436,040 79,780 398,900 2.032,400 824,800 25,800 288,300 877,700 Fair value of scheme assets Present value of scheme lthilities 3,989,000 4,049,000 {3,593.000) (4.146.000) 396,000 {97,0) Per the SORP. the plan surplus iq a defined benefrt plan asset and Tt is r6rcgnised to the extent that the charity is able lo recover the surplus either through Teduced contributtons in the fuiure or through refunds from the plan. Therefore. the asset will not be recognised as the pension fund has confirmed that there will be no refunds or reduced contributDns. The pension plan has not invested Yi any of the Charivs own properties or other assets used by the group. 30
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 The arnounts recognised in the Statement of Financial Acttvibes are as follows except for where an pension asset is created which has been restricted: 2025 2024 Current Servi cost Nel interest on defined benefrt liabilty Total recognised in net income (2,000} {5,000) (6,000) (7,000) (7.000) (13.000) Asset gainsl(losses) arising during the period Liability gainsl(losses) arising during the perDd Total recognised in other comprehensive income (72,0001 570,Crf)O 162,000 {108.000) 498,000 54,000 2025 2024 Main assumptions.. Discount rate CPI Inflation assumptDn Pension increases Pension accounts revaluation rate Salary increases Post-retirement mortarty. Current Pensioners at 65 - male Future pensioners at 65 ~ male Current pensioners at 65 - female Future pensioners at 65 - female 22.5 24.7 25.6 22.6 24.7 25.7 The post-r8tirement mortality assumptions allow for expected increas8s in longevty. The 'current" disclosures above relate to assumpb'ons based on longevty (in years) following relirement at the balance sheet date, viith °future° being that relating lo an employee r6tiring in 2040. Changes in the present value of the defined benefit obligations are analysed as follows: 2025 2024 Opening defined benefft obltgation CUrnt service cost Interest expense on defFned benefit oblwJation Contributions by scheme participants Benefits paid Actuarial lossesl{gains) 4,146,000 2,000 195.000 4,017,000 6,000 185,000 2,000 (172,000) 108,000 (180.000) (570,000) Closing defined benefrt oblallOn 3,593,000 4,146,000 31
BOROUGH OF HAVANT SPORT AND LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Changes in the fair fdlue of scheme assets were as followB: 2025 2024 Opening fair value of schem8 assets Remeasurement <losses)Igains Interest income on asset5 Contributions by employers Benefrts paid Contributions by scheme participants Cbsing defined benefrt obligation 4.049.000 172.000) 190.000 2,000 3,874,000 162,000 178,000 5,000 (172,000) 2,000 {180.000) 3,989,000 4,049,000 30. OPERATING LEASE COMMITMENTS Group At the balance sheet date, the group had annual commitments for equipment under non-cancellable operating lea$ as follows: 2025 2024 Less than 1 year Btheen 1 and 2 years Btheen 2 and five years More than 5 years 168,850 144,880 183,887 9S,257 96,192 72,222 497,617 284,671 32