REGISTERED COMPANY NUMBER: 03782811 (England and Wales) REGISTERED CHARITY NUMBER: 1080186 REPORT OF THE TRUSTEES AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 FOR THURROCK COMMUNITY LEISURE LIMITED Mccabe Ford Williams Slalulory Auditors and Chartered Accountants Building 1063 Cornforth Drive Kent Science Park Sittin9bourne Kent ME9 8PX THURROCK COMMUNITY LEISURE LIMITED CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Page Reference and Adminislralive Delails Report of the Trustees 21021 Report of the Independent Auditors 22to24 Consolidated Statement of Financial Activities 25 Balance Sheet 26 Consolidated Cash Flow Statement 27 Notes to the Consolidated Cash Flow Statement 28 Notes to The Consolidated Financial Statements 29to52 THURROCK COMMUNITY LEISURE LIMITED REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2025 TRUSTEES Jalinder Nahal (Chair) Tunde Ojetola (Vice Chair) Barry Norringlon Dr James Watson Kameel Mohammed Patrick Cole Joanne Winlour Daphne Zameziza Longe Mark Couldridge (Resigned - 0510612025) Cllr Steve Liddiard {Appoinled- 2310512024) COMPANY SECRETARY Nora Obeng-Tuudah MANAGING DIRECTOR Karl Hayes REGISTERED OFFICE AND OPERATIONAL ADDRESS Blackshots Leisure Centre Blackshots Lane GRAYS Essex RM16 2JU TRADING AS Impulse Leisure REGISTERED COMPANY NUMBER 03782811 (England and Wales) REGISTERED CHARITY NUMBER 1080186 AUDITORS Mccabe Ford Williams statutory Auditors and Chartered Accountants Cornforth Drive, Building 1063 Kent Science Park, Sitlingbourne, Kent ME9 8PX BANKERS National Weslminsler Bank PLC 17 High Street, Grays Essex, RM17 6NP SOLICITORS Winckworth She￿ood MineNa House, 5 Montague Close LONDON, SE19BB THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 The trustees present their report and the audited financial statements for the year ended 31 March 2025. Reference and administrative information set oul on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice- Accounting and Reporting by Charities; SORP applicable to charities preparing their accounts in accordance with FRS102. OBJECTIVES AND ACTIVITIES Purposes and alms The objectives of Thurr(ck Community Leisure ITCL}, as set out in its memorandum of associalion, are lo run leisure facilities and seNices primarily for the benefit of the general public. TCL operates in a manner that does not discriminate against any person by virtue of Iheir age, colour, race, nalionality, ethnic or national origin, religionlbelief, unrelated criminal convictions, gender, gender re-assignment, sexual orientation, marital status I civil partnership, or socio-economic slalus. The strategy of TCL is the pursuit of ils mission, which continues to be ever more important to the community needs. The mission is 'Creating Active & Healthy Communities,. TCL'S priorities include Instilling pride in communities through training, education, improving the quality of life, youth engagement and increasing opportunities Contributing towards achieving safer communities Developing prosperous communities through Ihe atlraclion of inward investment Promoting inclusive and diverse communities Promoting community regeneration through environmental and cultural improvements Delivering healthier, more active communities. In order to fulfil ils objects TCL manages four leisure cenlres al Belhus Park (plus the Golf Course), Blackshots (plus Ihe Civic Hall), The Gym Hub (Wickford} and Corringham. TCL operates under an Impulse Leisure and Gym Hub brand. The main source of income is from the sale of health and fitness (gym and exercise classes) membership, golf, swimming and swimming lessons, a varied programme of events and entertainment al the Civic Hall. The facilities are managed to maximise financial efficiency and generate surplus wherever possible, When surpluses are generated, 100% of the surpluses are used to maintain, improve, and extend the facilities and services provided for the benefit of the local community, Service improvements are used to generale improved efficiency, increase income and lo improve the health and wellbeing of the community. In shaping objectives and planning aclivilies, the trustees considered the Charity Commission's guidance on public benefit, including Ihe guidance on fee charging. TCL relies on exlemal programme funding, but mainly Ihe income Irom fees and charges lo cover its operating costs. In selling the level of fees, charges and concessions, the trustees give careful consideration to the accessibility of the services for those on low incomes and those from other disadvantaged groups. As a result, significant pricing discounts are available lo concessionary groups. In addition, special programmes and sessions are planned and delivered to help disadvantaged members of Ihe community improve Ihelr health and wellbeing, through participating in relevant aclivilies. Specific examples of work undertaken to target public benefit, sometimes at the expense of financial efficiency include employment of apprentices where possible, volunteering opportunities, delivery of numerous health and mental wellbeing improvement programmes {often in partnership wilh others), offering free taster sessions, attending community events and provision of memberships lo community groups working with disadvantaged communilies. Page12 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Achlevement and performance In 2024125, the UK economy experienced a turbulent rerii)d marked by fluctuating growlh and persistent inflation, The initial econornic upswing in early 2024, driven by posl-pandemic recovery efforts, gradually losl momentum due to a deleriorating global backdrop and domestic challenges. Inflalionary pressures remained high, exacerbated by rising energy costs and supply chain disruptions. The Bank of England's efforts lo stabilise the economy through monelary policy adjustments had limiled success, leadin9 to a caulious business environment. The leisure sector, a vital component of the UK'S economy, faced significant challenges during this period. Rising operational costs, particularly energy expenses, strained Ihe financial health of many leisure businesses. Consumer spending patterns shifled as households prioritised essential expenditures over discretionary activities, leading lo reduced foolfall in leisure establishmenls. Despite Ihese challenges, certain segments, such as outdoor and wellness aclivilies, showed resilience as consumers sought affordable and health-OTiented leisure options. The sectorfs ability lo adapt through innovalive offerings and targeted promotion5 became crucial for suNival and growth. To navigate these challenges, leisure businesses have had to adopt stralegic responses that focus on cost management and customer engagement. Many have invested in energy-efficienl lechnologies lo redu￿ operational costs and mitigate the impact of rising utility prices. Additionally, businesses have leveraged digital platforms to enhance customer experiences and offer personalised promotions, driving engagement and loyally. Collaborations with local communities and charitable initiatives have also played a role in maintaining a positive brand image and allracting socially conscious Consumers. The National shortage of experienced Leisure professionals continues which consistently affects our ability to recruil and relain staff. This shortage has slarted lo push salary rates up which we allempt lo compete in this challenging market, We conlinue to grow and attract our own industry staff through courses, volunteering, work placements and Apprenticeships. UK businesses faced a significant rise in cybercrime, with over half of businesses reporting some form of cyber-attack. The most common threals included phishing, ransomware, and data breaches, which have become increasingly sophisticated. This surge in cybercrime has led lo subslanlial financial losses and operational disruptions, prompting many businesses to invest heavily in cybersecurity measures. The heightened threat landscape has underscored the importance of robusl cyber defences and proactive risk management strategies. The NHS has faced immense pressure due to the rising demand for healthcare seNices and Ihe financial constraints imposed by inflation. Staff shortages and industrial actions have further complicated service delivery, leading to longer waiting limes and reduced patient satisfaction. However, the governmenl's commitment to healthcare reform, including investments in mental health services and infrastructure, has aimed to address some of these systemic issues. The leisure sector has played a crucial role in supporting the health and wellbeing of the nation during this challenging peri(KJ. By promoting physical activity and providing accessible wellness programs, leisure businesses have helped alleviate some of the pressures on Ihe NHS. Community leisure ￿nIfeS have collaboraled with healthcare providers lo offer referral pathways for patients, encouraging preventive care and healthier lrfeslyles. Addilionally. the sectorfs focus on mental health and social engagement has contributed to improved overall wellbeing, reducing the burden on healthcare services. Despite these challenge5 we have seen a strengthening in consumer confidence wilh a strong uptake and growth of Leisure Memberships and Swimming Lessons. We have continued our mission lo promote the benefits of physical aclivily to impact the risk of ill health, whilst supporting those with specialist programmes that are impeded by life debilitating conditions. Page 13 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Achievement and performance- continued The National shortage of Leisure professionals continued which consistently affected our ability to grow due to a lack of Swim Teachers to meet the continuing demand for Swimming Lessons. We introduced a supporl tier using Swimming Co- ordinalors al Blackshols and Belhus Park. These co-ordinators provide support for new teachers and cover for absence ensuring a vast reduction in cancelled classes. We also continue to upskill our exisling leams, retrain previously qualified instructors and offer newlraining opportunities for the community to change careers or start a new one to meet the growing demand. Whilst we have managed lo secure affordable rates for ulililies, we are experiencing signfficant increases againsl pre covid rates. We have continued through our environmental leam to implemenl energy saving inteNentions as well as educating our team lo think about energy in their daily tasks. In 2024, in partnership with the Local Authority, we were successful in receiving a revenue grant of £240k from the National swimming pool support fund - Phase 1. This grant for Corringham and Blackshots supported the increases in costs. Due to the success of our energy management and some closures we did not need the full support grants and this year we returned £9,439 to the funder. We have conlinued our commitment to contribute our data to the Moving Communilies data to support future schemes, as required by Sport England. A joinl phase 2 application was also partially granted lo implement a replacement pool cover and Air handling unit at Blackshols. We managed to deliver the replacement of pool covers bul Ihe project for the air handling was unachievable in the limeframe causing the Council lo decline Ihe funding of Ihe air handling unit, Costs throughoul the year have been conslanlly monitored and controlled but with Increases in prices for most goods and setvices this has been another challenging year. All facilities remained fully open and mel customer expectations in ensuring value for money wilhin their membership fees. Total atlendance levels in seNice conlinue to rise demonstrating customer are valuing their memberships. Swimming lessons (l-swiml numbers have continued lo be strong with many of the classes at capacity, however, consistency of Teachers has remained a continual issue with higher-lhan-expecled class cancellations in the front part of the year. This was eased by the introduction of the swim co-ordinators in the second part of the year. Management and staff continue to work hard and maximize the resource outputs lo maintain the levels of Service and delivery during periods of low staffing resource,. this challenge has been particulady difficult in maintaining the cleanliness of the facilities with extremely low cleaner resources. Despite these challenges TCL continLfed lo improve and extend the servi¢es provided and provide high levels of customer support. In addition to normal essential planned and preventative mainlenance there has been several refurbishment and upgrade projects and general Servi￿ improvements most notably- Page14 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Achlevement and perfomiance- conllnued Blackshots Gym refurbishment and new equipment New Gym Rig and Racks New wellness check-in pod and body analysis scales General décor and repairs Replacement Pool Covers Replacement of the hot water tank Reception desk replacement including infrastructure upgrade. Belhus Park • New Polly tunnel forthe Community Garden • Connected power - Smart Sockel inslallalions. Replacement Pool Covers Corringham Connected power- Smart Socket installations. Replacement pool Covers. The Gym Hub Gym refurbishment and new equipment • New Gym Rig and Racks The Civlc Hall Foyer redecoration, General Continued IT hardware replacement and upgrades. Targeted, and themed marketing campaigns continue to across all Marketing collateral and socials continuing Ihe promotion of a healthy community. We continue to differenliale ourselves as a charitable organisalion that cares about our community's health and wellbeing. Cyber security measures have been continually reviewed and improved. Cyber Essentials regislralion was maintained again this year. Customer and staff communications have been maintained Ihroughoul the year providing advice guidance and updates, • The Impulse Leisure App continues lo be a popular resource for our customers which has seen an average number of users over the year of 6686. Thls fantastic resource enables our cuslomers to easily book and pay for aclivilies conveniently online as well as access other important tools including their Mywellness portal, swimming lesson portal, Mental Health advice, Online classes, @home activities and workouts as well as general updates on the setvice we provide. Page15 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Achievement and performance- contlnued As the leisure industry and in particular S¥Mmming pool operators continue to be impacted by the costs associated by utilities, we maintain a strong focus on reducing our consumption. Our consumption reduction interventions Include,. • Installation of destralificalion fans. {Corringham & Gym Hub) • Provided localised healing of offices and lowered Ihe healing around the buildings. Reduced opening limes of the health suites. Scheduled control on cardiovascular equipment power limes at Corringham gym. Increased awareness of housekeeping measures such as turning off of lights, turning off PC plugs overnight and OFening windows rather than using air conditioning. This year we focused our capital energy projects on.. Blackshots Pool Covers New energy efficient cardiovascular equipment Swimming Pool leak deleclion Corringham Installation of conneded power sockets Belhus Park Installation of connected power sockets {Capel • Gym air con BMS The Gym Hub New energy efficienl cardiovascular equipment Gym aircon BMS A new 24 Month Gas contract was secured last year at considerably lower rales than 2022, The above improvements demonstrate TCL'S commitment to continuously improve the facilities whilst we are keeping a mind on increasing our reseNes to ensure the business is prepared for any fulure disruptions. These improvements make the facilities and seNices more allraclive lo new customers and obviously increase Ihe value for money existing customers receive. Increasing the value for money offering by improving the facilities and services increases the likelihood that more of the community wll seek to choose our facilities for their health and wellbeing requirements. As such TCL succeeds in Ils mission of 'Creating Active & Healthy Communities,. Page 16 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT - continued Achlevement and performance- contlnued With the work recently completed at the facilities, we are very proud that TCL has now been able to reinvest more than £8m in leasehold improvements and seivices (this figure excludes the significant investment in gym equipment replacements), all of whlch have been a greal advantage to improving Ihe accessibilily and appeal for the community lo live a healthy lifestyle. This demonstration of continued reinveslmenl highlighls Ihe tangible benefit for all by operating the 'charity model, to deliver local leisure services. Alternative solutions or seNice delivery models are unlikely to be able to reinvesl Ihese kinds of sums, as there would have been polentially other priorities for the money, i.e., shareholderlowner profil, other council services (general fund), or investment in facilities outside of the Borough. In addition, all services provided by TCL are available to all, including spectators, casual pay and play users as well as members. All pllces remain competitive and reflect Ihe community's needs. We also offer significant concessions lo those most in need, including heavily discounted or free membership, with at least 500/0 discount on most activity prices. All the facilities operate quality management syslems to ensure the level of seNice provision is delivered consistently. Our systems are externally audited and endorsed by the leisure industry qualily standard (QUEST). The sites have had their reassessment and have maintained QUEST accreditation in the Very Good category (Belhus Park, Corringham, and Blacksholsl. The Gym Hub in Wickford only has a1-day assessment and is iegislered with QUEST. All sites also achleved the UK Active - Active Standard accreditation. The Active Standard (also known as TAS) is a quality mark for the physical activity sector, developed by ukacÉive and its partners, The Active Standard is here lo help inslil consumer Confiden￿ in Ihe safety and inclusivity of fitness and leisure facilities We have continued to lun our Customer Salisfaction surveys through Ihe Moving Communities plattorm for consistency and transparency. In addition, we offer customer support and feedback via social media and direcl feedback remains in the large posilive. The health of the community is always al the heart of everything we do. Every activity we provide supports the prevention of ill health. We also specialise in targeted health programme for those unfortunately experiencing a level of ill health, The results from these programmes are life changing for many attendees. Some of the initiatives we have been part of Ihis year include.. Lung Screening in the Blackshols car park • CHAPS men's heallh day COPD hospital rehabilitalion continued to co-locate al Blackshols creatin9 space In hospitals. • Thurrock MIND memberships lo provide a gateway of physical activity support to help those struggling with mental health issues, Expansion of the Cancer Prehab and Rehabilitation program with multiple partners in Essex. Exercise on Refeiral continues lo support people with comorbidities affecting their daily lives. Our12-week exercise support program provides rehabililalion and health maintenance lo enhance their qualily of life. • Continuation of the waler-based exercise referrals has seen increased attendance and health improvements for patients. • We supported the NHS with their Health Checks scheme operalin9 from within Ihe Leisure Centre's creating a non-clinical environment lo encourage early signs of kidney and heart disease, Can￿r, and type 2 diabetes. To assist in supporting those that cannot travel lo our facilities we have expanded Ihe number of free workouts from home via our app. These free classes target the home user offering chair-based exercise sessions, restricled space le.g. home lounge) session5 and exercise safety to ensure home workouls are completed wilh the proper advice and safety in mind. Most of the above programmes aim to increase physical activity levels, largeting health improvement In the community. This all fits perfectly with TCL'S mission 'creating active and healthy communities,. The staff who deliver these schemes and programmes are highly qualified and often praised by the customers for their results. Page 17 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Achievement and performance- contlnued We have played a major part as key stakeholders in the Place Partnership with our Health & Fitness Manager integral to the co-creation and delivery of the funding application to bring £1 m to meet the objective of targeting the sedentary sector of the community lo create aclivilies, sessions, education and opportunily to be active. This collaboration of mulÉiple agencies is driving the ABCD approach being adopted by the Local Authority. A series of test and learn programmes were funded lo establish best practice examples in which we hosted and supported a number of these inilialives. Health and safely improvements continued throughout the year through the constant reviewing and developing of policy and procedures monilored by the Health and Safety Management Committee. Accident numbers for the year were again low but reflective of lower attendan￿S with no major accidents or incidents to note, All accidents and incidents are slill recorded via STITCH which also compares our average with the National rate. We value the conlrtbulions made by our teams sometimes in difficult situations and this year again we said 'Thank You, with a £25 Love to shop voucher at Christmas. We continue to recognise and reward those long-Se￿Ing k)yal team members. This year we acknowledged. 1 x 30-year service award 1 x 20-year service award 2 x 10-year service award The staff benefits scheme remains more Val￿able Ihan ever with increasing costs lo most employees, personal bills, these all- year-round benefits provide discounts and promotions at high profile national retailers, restaurants, and other popular organisations, and has continued to be used well by employees. General short term Sickness absence has not been a major issue again this year, however we have managed extended periods of sickness absence with empathy and understanding. We continue to be an Employer Partner of CIMSPA with a commilmenl to ensure relevant staff are members of the industries professional inslitule. Staff Piave a￿sS to over 2000 hours of online Éraining suitable for undertaking the required CPD relevant lo their membership category. The Managing Director achieved Chartered Fellow of CIMPSA the highest acknowledgement for his contributions to the sector and Impulse Leisure. We plan to acknowledge and celebrate the successes of our senior operational teams next year as they go through the process. Several HR policies have been refreshedlupdated and introduced to ensure our managers and employees have the latest guidance and understanding to manage their teams fairly and consislenlly. Recruitment continues to be an ongoing challenge as we strive lo meet the demands of the business. The team have been creative and responsive to the changing candidate demands, and we have grown our leam from 175 to186 this year. Our Apprenticeship programmes continue to be very popular with most achieving fulllpart lime employment at the end of Ihe programme. We have expanded the work placement programme with our college partners to expose the future employees lo different parts of the industry. Our Volunteering programme al Belhus Park Golf Course again was very popular and well supported. The Community Garden project offers further volunteering opportunities wilh produce from their effort going lo local food charities. We have made further great strtdes in the role out of our staff app, where rosters, timesheets and communications are more accessible, less time intensive and significantly reduces paper. This year we introduced comms into the App to help with communication. We are very grateful that there has been another good year of progress by Thurrock Council against their landlord protErty responsibilities despite their own financial challenges. Some urgent and essential works have been completed, and a programme of works to meet the forthcoming priorities is well undeNay. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Key Performance Indlcators 2025 45.460 2024 43.260/0 Wages as a percentage of Tumover Financlal revlew The budget in 2024125 was sel and agreed by the Board, which demon51raled a good level of growth in revenue, but was not sufficient enough lo offset Ihe increase In National Minimum wage for a third year in a row and the subsequent impact on the whole company pay structure, the huge rise in costs for all supplies and services consumed by TCL, as well as Ihe 400Yo increase in ulililies. These factors predicled a deficit budget, We continue lo service our loans and liabilities, and with a strong income performance, control on costs and funding support will see an improvement in the Charities reserves, which are still below the Charity Commission guidelines. We continue to make efficiencies in the processing of financial data and have implemented API data exlracls as part of the Gladstone software upgrades. The processing and production of the financial management and reporting is partly outsourced to Mccabe Ford Williams IMFW} which is providing the additional support for the CFO as the business develops and grows. A key decision of the Gladstone transfomialion was to bring the Direct Debit management back in-house, This process was completed in January following four smaller lesl runs before Ihe bulk transfer. This has provided us with greater insight and control which we hope will result in greater efficiencies and higher collections rates. The Management team continued lo proactively source and apply for available funding sources that the organisalion was eligible for with success in'Phase 1 of the Swimming Pool recovery Fund (j'oint partnership with Thurrock Council) • Phase 1 of the Swimming Pool recovery Fund Ooint partnership with Thurrock Council) 23124 • Phase 2 of the Swimming pool recovery Fund (joint parlnership with Thurrock Council) covellng 23124 and 24125 • Multiple health projects. The Government continued lo provide Rates support for Leisure through the Local Authority this year helping reduce costs. The efforts of the whole team have driven income streams to exceed the budgel, which demonstrates Ihe growlh of the business this year. As mentioned before Ihe expenditure lines have been a challenge to manage, but the team have remained focused on controlling consumption and cosls wherever possible. This combined effort has produced a bottom- line performance better than the budget by £228K turning Ihe budgeted deficit into a surplus of £128k. Trustees aCkno￿edged the need for a longer-lerm business plan following several years of turmoil. This year we have been Ihrough an extensive process of reviewing the strategy, direction and aspirations of the organisation. We have compleled a series of sessions with Trustees and the Senior Leadership Team lo establish a collective underslanding of our purpose and ideals. We consulted with our key stakeholders and employee leams to ensure we meet their aspirations and objections for our organisation and insight into the positives Impulse Leisure brings lo Ihem. The launch of the final Slralegy is expected to be in the new fiscal year 2025-2026. The relationship and working partnerships created with officers and members of Ihe Council have teen extremely productive again this year. Several examples of linked uplpartnership working have delivered reward and positive impact lo the community. Our cuslomeis continue lo support our 'give a gift 'and 'Easter egg, campaigns ensuring children are less fortunale that others receive a gift at Christmas and an easter egg at Easter. In addition, our woiking group with the Assets team has seen excellent communication and positive delivery of essentials. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Achievement and performance- continued Financial review- continued Leisure Cenlres- The Membership numbers at Blackshots has seen Increased growth over the year with a number of suc￿Ssful membership marketing campaigns attracting more people to be regularly active. Swimming lessons remains a growlh area which is pleasing as il demonslrales the Communities appreciate for the importance of this life saving skill for children and Adults. Office and Cotlage Rent- Collage rental was maintained as both properties were occupied throughout the year. Golf Shop and Bar- Golf and the bar has performed well this year with strong income but with challenging costs came just short of budget by £1362. Green fees and season tickets performed well. Civic Hall The Civic Hall has had a strong year in rebuilding its profile as an events destination and not solely reliant on hirers, We have provided a balanced programme of events that meet sporting and culture events lo maximize the hall's value lo Ihe community. The bar product range is constantly reviewed lo ensure it meets current drink Irends and customer demands, which has been reflected in increased income. All other costs have been well managed to generate a surplus for the year. Principal rlsks and uncertainties The trustees and senior management undertake an annual risk assessment prccess and report on this to the full board. The overarching issue to the fvture, remains the economic impact on the Country. Increases in utility pricing, cost of living increases for consumers including interest rale hikes as well as supplies and services price rises way above average norms. The potential for another Pandemic remains a constant concern with the risk of possible restrictions and closures. In response to the continuing rise in costs the Board prudently review the reserves position to ensure there are sufficienl reserves to piolecl the company whilst releasing them for the bellernient of the facilities and seNices we provide. The other main risks identified include building failures, the LGPS deficit including admission agreement issues (Laslman standing), health and safely, staff and Trustee shortages and increasing staff costs {see section below), ongoing economy uncertainty lulilily and cost of living) denting consumer confidence, local politics and increasing competition. Ongoing works with Thurrock Council and ourown planned and preventative maintenance regimes are used lo ensure Ihal buildings andlor plant are less likely lo fail in such a way as to cause unplanned Servi￿ disruption. Business interruption insurance is also in place. The potential for major health and safely Issues to arise is taken seriously and as such TCL have comprehensive policy and manual covering health and safely, monitored at the highest level, with Trustee involvement at bi-monlhly bespoke meetings and again reported al Board meetings, Slaff are also involved in the risk assessment process and everyone in the organisation is aware of the health and safely mission of 'everyone safe every day,. Constant improvements lo service and increasing value for money is the main strategy in use fordealing with competition. Marketing and promoling our unique selling points and differenlialing our service from the competition has been an increased focus. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Financlal revlew. contlnued Principal risks and uncertainties continued Local politics always have the potential to change, so developing good relationships with senior staff al Thurrock Council and working with them to add valLte to the whole range of council services raises the profile of TCL and ils importance lo the community. There have been a number of initiatives listed elsewhere regarding staff recruitment and retention. The Iruslees are salisfied that adequale processes are in place lo mitigate the key fisks faced by the charity. Reserves policy and going concern The Reserves policy for TCL is formulaled to ensure the continuation and improvement of ils services, for the benefit of the community and as a safety net in the event of short-lerm income shortfall. The services are run from various ￿ntres, which need to be Tegularly mairilained and updated to continue to provide excellent standards of seTvice. Therefore, [ese￿eS required are allocated into two types- Operational Reserves Are held to ensure TCL can meet expenditure commitments in the short term, whilst actions are put into place to overcome income shortfall. Management risk strategies, insurance and conlingency plans are in place to mitigate Tisks. As centres are all in different locations, it is unlikely that problems in one centre will have a direct impacl on Ihe remaining cenlres, although in the light of the unprecedented UK response to Covid 19 this assumption has been lested lo relain a short closure al all sites in advance of Government support streams. The reserves policy should therefore include overhead expenditure for all sites, whilst centres are closed, along with staff costs previously supported by a furlough scheme, as this may not be available in future. The reserve policy TCL should provide resilience to keep going till support is available andlor give time to put allemalive action in place. Page 111 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Reserves policy and going concern- continued Facility Improvement and unexpected opportunity reserve . The day-to-day operational budget does not set aside any reserve for major improvement, or major capital commitment, As such reserves are required to ensure funding is available lo continually improve the service (property, equipmenl, and technology) in this very competitive industry, lo enable compliance with ever-changing legislation and to take advanlage of olher unexpected opportunities that may arise during a year. Improvements to Blackshols changing rooms is a prevlous example of using Ihese reserves to update and improve efficiencylservice. To expand Ihe services, we can offer lo more beneficiaries, TCL may wish to acquire new business either Ihrough partnership, lender, acquisition or development of new premises and the purchase and refurbishment of community hub is a good example of this. This is made possible when resetves are in place lo supportlhe exploitation of such opportunities as they arise. Therefore, TCL will continue lo build up to £1 m, reserves to 3 months running costs for all sites when closed, and then work towards an addilional £300k for Facility improvemenuopportunity reserves. The £300k reflects amounts required for recent large projects such as Belhus ref4Jrbishmenl and Blackshols changing room works. The Group held fund balances at 31 March 2025 of £2,370,784 (2024; £2,242,620). These funds comprised £50,960 of restricted funds12024'. £nil), £2,319,824 of unreslficted funds {2024,' £2,242,620), together with a pension fund reseNe of £nil (2024: £nil). TCL have been able to maintain adequate cash levels lo meet day-to.day liabilities whilst maintaining operational reserves and sellling outstanding legacy liabilities. The CFO reviews the value of day to day cash required to meet our operational costs and invests any excess as part of our invested portfolio to maximise the interest on this money. TCL is therefore meeting going concern requirements. TCL has been working hard lo drive income levels lo cover the increased costs of operation, whilst remaining understanding and sympathelic to the impact of the cosl-of-living crisis on our clients. Expenditure will continue lo be closely monitored whilst income grows. TCL aclively seeks new opportunities, funding, and income streams to help diversify income in order to facililale financial robustness and lake up opportunities to further its objects. Considering, the current reserves position, logelher with the existing financial performance, forecasts for the future, cash Itow forecasts, the main risks facing the organisation, the trustees are confident that TCL will continue as a going concern. Page112 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Plans for the future As we continue lo 'Create active and Healthy Communities, we dovetail into the Local Authorities 'Active Place, and 'Playing Pitch, slralegies. We continue lo work closely with Public Heallh in delivering both services and programmes to prevent ill health and support those Ihal have health debilitating conditions. Thurrock Community Leisure will continue to collaborate with Officers and Councillors to help in the delivery of such plans. The Local Authority are facing huge challenges to cope and adapt to their financial difficulties and as such their attention is focused on Iheir ability to provide statutory services. The working relationship we have with the Local Authority is positive wilh both organisalions having a common goal regarding the health and activity of the communities we woik wilh. It is pivotal for Ihe benefit of the whole communily that thls stronger partnership continues lo enable Thurrock Communily Leisure to support the Council in delivering Leisure and heallh improvement in a cost-effeclive manner. The regular Officer meetings with a variety of departments within the Authority will, provide clear two-way communication into the successes and challenges fa￿d by both organisations with a view of working collaboratively to meel the changing physical activity and health inequality demands of the Borough. Thurrock Community Leisure will invest time and resource into the review of ils corporate plan lo assess and react lo the changing face and needs of a physical activity service and delivery in a modern environment. This review will seek lo identify future opportunities and risks Ihat will enhance 01 hinder business growlh. Forecast Budgets lake inlo consideration the sustained national price increases affecting UK Businesses in., goods and services utilities Minimum wage increases of 9.70/0 lup 300/0 in lasl three years), Leisure activity and allendance trends have relurned lo pre-pandemic levels which enables historical dala lo be used for patterns of behaviour. Cuslomer feedback and surveys also provide a deeper understanding of Ihe business, We will conlinue to maximise income streams whilst controlling expenditure closely which is monitored on a daily basis. The Annual Plan focuses on the len pillars of the business, ensuring we apportion sufficient allenlion to each area, We continue with reshaping our digital landscape lo miligale the resourcing challenges and improve the customer experien whilsl providing increased consumer knowledge and data. Our strategic alignment wilh the Local Authority slralegies which we aim lo dovelail into our future plans. The opportunity for partnership working wilh the voluntary sector and local clvbs and groups has never been more prevalent aligning common goals with a series of pilots, support and links. Examples include the community garden project, CVS, club partnerships with Thurrock Swimming Club and Thurrock Rugby Club, as well as social services supportin9 events like the easter egg and Christmas gift for underprivileged children. TCL'S positioning in Ihe marketplace remains strong, despite the incieased competition over the recent years. The Charity slalus resonates with elhical purchasers and the distribution of any surpluses into community services and facililies is well received by our customers, The financial growth is still anticipated lo come from both Membership and Swimming Lessons where we continue to see a high support and demand. Whilst we make inroads lo improving our income position, we are still having lo cover off Ihe unprecedented increases in staff costs due lo NMW increases and salary squeeze affecl, utility and supplies cost base increases. As such the budgets for 2025126 show a negative botlom-line with a clear indication of recovery before year end, We will continue to ensure a light ship approach to all costs and remain conservative in income growth. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Plans for the future . continued We have implemented our pricing strategy for 25126 which is crucial lo maintaining the differential between income and expenditure, whilst maintaining an awareness and empathy for our customers, ability to meet these new prices. The launch last year of the students and young children's memberships have been extremely popular, and we will continue to encourage physical activity habits at this influential age. In response to the continued challenges in recruiting staff we wll continue to use and attractApprenlices and train unskilled potential employees improving and extending the associated career development learning programmes lo as many slaff and I￿al people as possible. This together with the CIMSPA membership and ongoing training will enable more staff lo complele the requisite amount of CPD as well as relevant qualifications appropriate to their roles and future progression, This ensures more staff are undertaking relevant training to Iheir career aspirations and the business need, which in turn should improve staff retention and customer service. We also plan to grow and expand Ihe Volunteering opportunities to all sites over the coming years, Community Health and Wellbeing The more opportunities created for people lo be physically active increases the positive impact TCL has on ThuTrock's 'heallh and social issues,. Many of these issues have been proven lo be improved by exercise. Indeed, Central Government and Public Health England {Physical Activity Framework - Everyone Active Everyday), supported by UK Active, have been consistently raising the profile of the benefits of physical activity, versus the associated costs of inactivity on the National Health SeNice (NHSI. There are potential opportunities within the NHS 10-year plan, some of which focusses on prevention of ill health, part of which includes physical activity in promoting physical and mental health. TCL will work with local health commissioners, social prescribers, and others to develop new programmes to improve community heallh. The newly awarded Healthy Community grant from public Health wll be a co-created series of interventions covering a three-year term. These programmes may also include social and cultural related activities. TCL will consider providinglsupporting these SeNi￿S without the benefit of external support funding. TCL will continue lo support the delivery of the Sport England Place Partnership working with slakeholders, the Local Authority, Public Health and Active Essex. TCL operate a multitude of successful health programmes that improve health as well as quality of life with many moving case studies of lrfe changing impacts. In line with Government and Sport England Strategy on increasing physical activily levels, we will expand our programmes to deliver increased physical activity opportunities to more of the community including children and disadvantaged groups. We will continue and to grow our FREE online home-based classes including chair based and beginners to enable the housebound access to our services. TCL will con*inue the work on the location master plans for the leisure stock in Thurrock. We hope these Leisure Slralegies will be integrated into declsion making in future, including establishing our place as the operator of choice within that strategy. Bringlng solutions and funding oplions to the table is a line being pursued at present. We are actively promoling with partners our concession schemes to increase the reach of those in the target group on low income or asylum seeking. Page 114 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Plans for the future- continued Main facility relaled works will centre around the following improvements or investigations including.. TCL plan to: Blackshots Replacing Gym equipmenl. Converting the Café toilets to a universal toilet provision. Gallery suite floor sand and reseal Belhus Park Work with Thurrock Council and others to deliver a Master plan for the sile including 2 x 3G full size football pitch and Cricket facilities. Replacing some gym equipmenl Redecoration of Ladies loilels Redecoration of Ihe Group Exercise Sludio Civic Hall Upgrade the ID scan for security Install external access lo the Green Rooms Corringham Replacing gym flooring Refurbishing of the Health Suite General Develop remaining viable LED lighting schemes into a project and seek external funding conlrlbutions to the costs. If external fvnding achieved, implement the schemes. Explore the implementation of Government fundin9 for sustainable products lo redu￿ the consumption of Local Aulhority Leisure. Expand Ihe Airius Fans schemes to Blackshols and Belhus Park Customer satisfaction scores and QUEST will be maintained at all applicable siles. In addition, as an inlernalionally recognised measure of cuslomer satisfaction we will assess the Nel Promoter Score {NPS} on all feedback surveys. Health and safely management will continue to be a priority, conslantly reviewing and developing new policy and procedures making al least 10 safely improvements during the year, THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Plans for the future- contlnued The viabilily of local expansion, other smaller trusts and other business opportunities will continue to be assessed on a case-by-case basis. Through on-going networking and industry knowledge, TCL will continue to identify business opportunities, or other Irusls or organisalions that might benefit from collaborative working. In addilion, TCL will continue to seek lo expand operations in the Southeast keeping in contact with those businesses l authorities l organisalions I schools that are changing the way they operate. This benefits TCL as overhead costs are reduced, as they are contributed to by additional group membets, TCL will expand further the Swimming teacher recruitment programme to continue its work on creating a sustainable teacher infrastructure. This new infrastructure will enable both expansion, support and developmenl of our swim teachers creating an exciting career pathway. STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng document TCL is controlled by its governing document, a Memorandum and Articles of Association and 15 constituted as a limited company, limited by guarantee as defined by Ihe Companies Act 2006. TCL is a registered charity. Appointment of trustees TCL is governed by a board of up to11 Iruslees. The board of trustees (volunteers) are drawn from all sections of the local community. Once appointed, trustees act in their personal capacily in the best interests of TCL and do not act as representatives of the body that nominated them. The board is made up of the following categories of trustees, which are fixed in the articles: Independent Iruslees x {up to) 8 Local Authority elected trustees x 2 Employee elected Iruslees x 1 Thurrock Council nominates Iwo trustees to the board. Should there be a need to atlracl new trustees lo the board, adverts are placed at the siles and in appropriate social media, CVS, and various partner websites. The trustees co-opt new members to the board once agreed and they are official appointed al the next Annual General Meeting. Trustees are selected to provide a broad range of skills to support the business and management. Specific atlenllon and targeting will be focused on underrepresented areas of Éhe board. This under representation can be in the form of skills, knowledge, gender, ethnic background, or disability. All trustees will hold office for a maximum of three years before retiring. Upon reliremenl, Ihe other Iruslees may re-appoint them or another person. At each Annual General Meeting (AGM), the greater of three and 33 % of the longest servlng trustees shall retire but may be re-appointed unless the vacancy is filled, Each trustee guarantees to contribute an amount nol exceeding £110 the assets of TCL in Ihe event of winding up. The total number of such guarantees at 31 March 2025 was 1012024 - 9, 2023- 8, 2022-8, 2021- 7). The trustees have no beneficial interest in TCL. As a charity, TCL is a non-profit dislribuling organisalion. Therefore, Iruslees do not receive any dividend, as 1000/0 of surpluses must be invested to pursue the charitable objectives of Ihe company. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Appointment of trustees- continued TCL is a community organisalion working with Thurrock Council {TC) and olher organisations, to provide leisure and cultural opportunities within the Thurrock area and ils neighbourhood, TCL came into existence when Thurrock Council transferred leisure and cullural services to TCL on 10 January 2000. The trustees have overall responsibility for the organisation and its efficient operation. However, as volunteers the Iruslees appoint a Mana9ing Director (MD, Karl Hayes), lo whom they delegate responsibility for undertaking the work Ihal is required lo ensure that the organisation is operated efficiently, and in accordance with its objects. The Iruslees have agreed a delegated authority framework, which sets out the responsibilities of the trustees and management. In addition, the trustees are aware that they have expert advice available lo them from their auditors, legal advisors, bank and health and safely advisors, The Iruslees use the 'Charily Govemance Code, as a framework lo govern TCL in line with best practice principles. Trustee Induction and training The trustees have agreed a Governance Manual, which provides infomiation about TCL, including ils history, structure, governance, legal standing, agreements with related parties, procedures al meetings, shared contact Information, information about being a trustee (Charity Commission) and other sources of information. Once appointed new trustees are inducted by the Managing Director and Company Secretary using the governance manual as a guide. The updaled manual is available to Trustees on an ongoing basis in an electronic format, using a dedicated Share Point drive accessed by an Impulse leisure appointed email. Occasionally training is provided to the trustees as a group, in the past this has included governance, risk analysis and financial responsibility training. In addition, individual truslees are encouraged to attend Iraining provided by auditors and legal advisors on a range of subjects. The Management team also provide guidan￿, training and support on Leisure specific understanding. The Iiuslees carry out 'SFXit checks, using internal control procedures and audits developed lo cover the main financial and employment risks identified by the organisation. The trustees aim to carry out all of Ihese checks on an annual basis. Related parties and relatlonshlps with other organisations TCL has a wholly owned subsidiary company known as TCL Trading ITCLTI, TCLT operates a golf shop, grounds Maintenan￿ function, bar, and catering operation al Belhus Park. Directors of TCLT are appoinled by TCL. The directors have no beneficial interest in TCLT, or TCL. All surpluses generated by TCLT are gift aided back to TCL and this arrangement is governed by a deed of covenant. Remuneration policy for key management personnel TCL has a Remuneration Policy which is a TCL & TCLT Group policy. This policy is posted on the website no more than Iwo clicks away from the home page. TCL is committed to ensuring a proper balance between paying staff and others who work for il so that only Ihe besl people are recruited and retained. Whilst TCL remuneration is generally competitive within the leisure industry, il does not compete on pay with other industries. Leisure remains a low pay industry. When deleimining the salary for a post, TCL will collect information aboul comparable roles where possible, preferably within the Leisure seclor. This informalion will be used to benchmark TCL salaries, normally aiming lo sel them al a level Ihat appears lo represenl the market I local area. TCL wll also seek advice from peers within other organisations where Ihey employ people in similar roles. To this end TCL benchmark with other soulheasl Community Leisure operators {CLUK) and Community Leisure UK ICLUK} Ihe sport and recreation trust association. CLUK represent charitable organisations who provide leisure and cultural services. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Remuneratlon policy for key management personnel . continued All posts meet the minimum requirements in respect of the National Minimum Wage, which is reviewed and amended where required in April each year. All employees (except apprenlices) working for TCL will be paid. £12.21 with effect from 1st April 2025 an increase of 6.70k, this is regardless of age. This created a companywide salary squeeze which was addressed in April 25 pay awards agreed by Trustees. Salaries for the majorily of posts will comprise a band made up of a series of salary points. Other posts have a Ilal rate salary. All salaries are openly stated in job adverts, Post-holders can progress up to the next salary point within their band around the beginning of each new financial year, subject to having re￿iVed a salisfaclory annual appraisal (Development and Review Time (DARTI and performance assessmenll and having achieved Iheir key performance indicators for Ihe year. Followng the annual appraisal {DART), an employee's manager wll make a recommendation to the Managing Director as to whether a progression up to Ihe next band has been merited. 'Annual' Pay Award and Adjuslmenls- During the budget setting process (in around NovemberlDecember} each year, for implementation in the following new financial year {Aprill, the management team will consider whelher the salary points for all staff should be adjusted for the forthcoming financial year beginning 1 st April, to reflect changes in the market conditions and reflecting cost of living impacts. The consideralions will begin with an assumption that salaries should be adjusted to match inflalFon (specifically Ihe Consumer Price Index) over the preceding 12-monlhs. FLtrther consideration will then determine whether Ihis is appropriate in the context of.. TCL'S financial situation - can il afford the CPI linked increase and is il sustainable? TCL'S performance- have KPIS been met? Previous pay awards made in recent years Pay reviews elsewhere - how might a failure to follow wider Irends be per￿1Ved amongst staff, within peer organisations Overall affordability and suslainabilily- can TCL realistically afford it now and can il sustain it moving forwards? TCL'S ability to attract and retain suitable staff in sufficient numbers to deliver a consistent service level. vi. Based on the above, the management team will make a recommendation to the trustees to approve any annual pay awardlbudget, If approved, annual pay awards will normally be applied in April of the new financial year. The Managing Director has the responsibility to make any ad hoc decisions regarding salary changes for any posilionlpost holder. Any decisionls regarding the salary of the Managing Director and senior managers are made by the TCL trustees. The Senior Management Team does not have delegated aulhorily in matters relaling to their own remuneration, and any recommendations or decisions must be ratified by the trustees prior lo implementation, By nature of previous arrangements (TUPE transfers), some slaff have previously opted to join the Local Government Pension Scheme ILGPS} in accordance with the respective Admission Agreement with Essex County Council. The TCL LGPS scheme is Currently closed to new members as diclaled by the Admission Agreement, For those staff who are not members of the LGPS, TCL complies with its slatulory auto-enrolment duties in accordance with Part 1 of the Pensions Act 2008, where employees will be automatically enrolled into a defined conlribution pension scheme from the dale required by the Pensions Act 2008. Details are notified lo each individual separately, including what they would need to do should they wish to opl out of membership. In this regard, TCL uses NEST to fulfil aulo-enrolmenl obligations. All staff, regardless of whether entilledlnol, enlitledleligible have the opportunily to join NEST on request. Furthermore, TCL (and the employee) pay contributions on total earnings, irrespective of age or eamings level. Employees can only be a member of one pension scheme. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Remuneratlon policy for key management personnel . contlnued Private Health Care- is a company and employee benefit for senior management and key personnel, lo ensure that any ill-heallh is treated Promplly, enabling the individual to conlinuelreturn to work with minimum absence. All private heallh care is declared on a P11 D and subject lo tax in accordance wth HMRC guidelines. Use of Facilities by Employees - In order to promote health, fitness and wellbeing, employees may use Ihe facilities free of charge, provided a paying member of the public is not prohibiled from use because of an employee taking up space. TCL apply a long service recognition scheme within which slaff are rewarded for continuous service at 5, 10, 20, 30 and 40 years. The scheme is designed lo reward long service and is for gifls at various values depending on the milestone reached. The scheme follows the guidance issued by HMRC on Ihe values of the awards. TCUTCLT Iruslees are not paid for their work as a trustee. Trustees can be reimbursed for reasonable out of pocket expenses. They may also be paid for underlaking special work for the charity, provided Ihat this meets wilh the Charity Commission guidance 'Paymenls lo Charity Trustees - What the Rules Are,. However, TCL will generally avoid engaging its Iruslees for work and will only do so where there is no suitable allemative supplier of that Wofk. Diversity The board's approach lo diversity supports its effectiveness and leadership, as such TCL wholeheartedly supports the principle of equal opportunities and diversity in employment and service provision and opposes all forms of unlawful or iinlair discrimination on Ihe grounds of colour, race, nalionalily, ethnic or national origin, reli9ionlbelief, unrelated criminal convictions, gender, gender re-assignment, sexual orientation, marital statuslcivil partnership, age, or disability. 11 is in TCL'S best interests, and those of all who represent or work within it, to ensure the human resources, lalenls, and skills available throughoul the organisation and community are considered when employmenl and or Iraining opportunities arise or when Ihe seryice-based decisions are made. Slalislical reports are compiled once a whole recruitment and selection process is complete, Ihese showlhe ethniclnational background, gender, age, religionlreligious belief, and disability lif any) of all applications. those short-listed, and those offered employment. TCL monitor the declared diveisily of its workforce. TCL aims lo have Iruslees and staff from drfferenl backgrounds, abilities, cultures, and genders as the inherent diversity of life experience is more likely to encourage debate, resulting in beller decision making. The aim is that the workforce and Board rellect the communily il setves. The Board and staff undertake equal opportunity and diversity training. Policy for employment of disabled persons TCL is 'posilive about disability, and operales a Guaranteed Interview Scheme IGIS). TCL recognises that during employmenl a person's capabilily to carry out their duties may deteriorate. This can be for several reasons, the most common ones being that either the job changes over a period, or because of health changes (including developing a disability). Should this be the case, TCL will make every effort to ensure staff receive adequate training and supervision lo reduce any impact. Informal meetings are used in the first inslance with a view lo resolving any issues. TCL will also consider the possibility of a Iransfer to more suitable work if this is possible. If Issues persist TCL will nomally seek a medical diagnosis and prognosis and with the benefit of this professional medical advice, consult with Ihe employee lo enable a decision to be made about the future, either in the current role or, where circumstances permit, in a more suitable role. Where concerns about work arise due to the nature of a disability as defined under the Act, TCL will endeavour to make reasonable adjustments to work andlor woiking pattem wherever possible. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Employee information Employees are provided with information in a number of ways including, general electronic communication to personal email addresses, staff notice boards, staff newslellers, team briefings, staff satisfaction survey {once per annum) and one to one meetings where appropriate. These communications are used to provide employees with relevant information on matters of concern lo them, common awareness of the financial and economic factors affecting TCL'S performance and seek the employees, views about the business and how it might be improved. TCL recognise the trade union Unite and staff can seek their advice and support where applicable. TCL consult with Unite in line with the recognition agreement in place. Modern Slavery Act 2015 By virtue of its size TCL is not required lo comply with all of the dulles within the Act, However, TCL takes steps lo prevent modem slavery and human trafficking in its business in accordance with the Act. TCL publishes its policy regarding modern slavery on its website. FUNDRAISING The TCL Group do not use professional fundraisers lo raise funds. All of the income is derived from the main functions including, sales for facility uselhire, secondary spending, and grants for specified programmes. Occasionally TCL receive donations through online fundraising platforms, although at presents this a very minor source of income. Page 120 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STATEMENT OF TRUSTEES RESPONSIBILITIES The trustees (who are also the directors of Thurrock Community Leisure Limited for Ihe purposes of company law) are resEk)nsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), Company law requires Ihe trustees lo prepare financial statements for each financial year which give a Irue and fair view of the slate of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for Ihat period. In preparing those financial slalements, the trustees are required to select suitable accounlin9 policies and then apply them consislenlly., observe the methods and principles in the Charity SORP., make judgements and estimates that are reasonable and prudenl., prepare the financial statements on the going concern basis unless it is inappropriate lo presume that the charilable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable Company and to enable them to ensure that the financial slalements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities In so far as the trustees are aware: There is no relevant audit information of which the charitable company's auditors are unaware. and The Irustees have laken all steps that they ought to have taken to make themselves aware of any relevant audit information and lo establish that the auditors are aware of that informalion, Report of the trustees, incorporating a strategic report, approved by order of the board of Irustees, as the company directors, on 3019125 and signed on the board's behalf by,. Jalinder Nahal jchair) REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THURROCK COMMUNITY LEISURE LIMITED Opinion We have audited the financial statements of Thurrock Community Leisure Limited Group forthe year ended 31 March 2025 which comprise the Consolidated Stalemenl of Financial Aclivilies, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Cash Flow Statement and noles to the financial slalemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in Iheir preparation is applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally AC￿pted Accounting Practice). In our opinion the financial slalemenls.. give a true and fair view of the state of the group and charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepa￿d in accordance with United Kingdom Generally Accepted Accounting Practice,. and Have been prepared In accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audil in accordance with International Standards on Auditing (UK) {ISAs {UKII and applicable law. Our responsibilities under those standards are further described in Ihe Auditors responsibilities for the audit of the financial stalemenls seclion of our report. We are independent of Ihe group and charitable company in accordance with Ihe 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 accordan￿ with these requirements. We believe that the audit eviden￿ we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons 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 lo events or conditions that, individually or collectively, may cast significant doubt on the companls ability to conlinue as a going concern for a period of al least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Irustees with respect lo going concem are described in the relevant sections of this report. other information The lruslees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial slalemenls and our Report of the Independent Auditors thereon. Our opinion on Ihe financial statements does not cover the other information and we do not express any fomi of assurance conclusion thereon. In connection with our audit of the financial slalements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or othe￿iSe appears lo be maleria51y misstaled. If, based on Ihe work we have performed, we conclude Ihat there is a material misstatement of this other information, we are required lo report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit., Ihe information given in the Report of the Twslees for the financial year for which the financial slalements are prepared is consistent with the financial statements,. and The Report of the Trustees has been prepared in accordance with applicable legal requirements. Page 122 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THURROCK COMMUNITY LEISURE LIMITED Matters on whlch we are requlred to report by exceptlon In the light of the knowledge and underslanding of the group and charitable company and ils environment obtained in the course of the audit, we have not idenlified material misslalements in the Report of the Trustees, We have nothing lo report in respect of the followin9 mallers where Ihe Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept or relurns adequate for our audit have not been re￿iVed from branches not visited by us., or the financial statements are not in agreement with the accounting records and relurns,. or rtain disclosures of trustees, remuneration specified by law are not made., or We have not received all the information and explanalions we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees Responsibilities, the trustees {who are also the directors of the group and charitable company for the purposes of company law) are responsible for the preparation of the financial slalemenls and for being satisfied that they give a Irue and fair view, and for such internal control as the trustees delemiine is ne￿SsarY lo enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial slatemenls, the trustees are responsible for assessing the group and charitable company's abilily to continue as a going conceln, disclosing, as applicable, matlers related to going con￿rn and using the going concern basis of accounting unless Ihe trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so, Our responsibilities for the audit of the flnancial statements Ourobjeclives are lo obtain reasonable assvrance about whetherlhe financial statements as a whole are free from material misstatement, whether due lo fraud or error, and to issue a Report of the Independenl Auditors that includes our opinion, Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS {UKI will always detect a material misslatement when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregale, they could reasonably be expected lo influence the economic decislons of users laken on the basis of Ihese financial slalemenls. Irregularities, including fraud, are instances of non-complian￿ with laws and tegulations. We design pr(Kedures in line with our responsibilities, outlined above, to delecl material misstalements in respect of irregularities, including fraud. The exlent to which our prO￿dureS are capable of delecting irregularities, including fraud is detailed below.. Our approach to identifying and assessing the risks of material misstatement in respect of iiregularilies, including fraud and non-compliance with laws and regulations, was as follows.. - The engagement partner ensured Ihat the engagement team collectively had the appropriate competence, capabilities and skills lo identify or recognise non-compliance with applicable laws and regulations., We idenlrfied the laws and regulations applicable to the Charitable Company through discussions with trustees and our experience of the sector., We focused on specific laws and regulations which we considered may have a direct material effect on the financial slatemenls or the operations of the Group and Challtable Company, includin9, but not limited to, the Companies Act 12006}, UK lax legislation., We assessed the extent of compliance with the laws and regulations identified above Ihrough making enquiries of management. and Identified laws and regulations were communicated within the audit leam regularly and the team remained alert lo instances of non-compliance throughout the audit. Page123 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THURROCK COMMUNITY LEISURE LIMITED We assessed the susceplibilily of the Group's and Charitable Companls financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to where they considered there was susceplibilily lo fraud, their knowledge of actual, suspected and alleged fraud., considering Ihe internal controls in place lo miligale risks of fraud and non-compliance with laws and regulations in each seclion. To address the risk of fraud through management bias and override of controls, we.. performed analytical procedures to idenlify any unusual or unexpected relationships,, tested journal entries to identify unusual transactions,. assessed whether judgements and assumptions made in determining the accounting eslimates were indicative of potential bias., and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-complian￿ with laws and regulations, we designed procedures which included, bul were not limited lo.. agreeing financial slalement disclosures lo underlying supporting documentation. reading the minutes of meetings of those charged wlh governan￿,. enquiring of management as lo actual and potential litigation and claims; and reviewing correspondence with HMRC and the relevant regulator where relevant. There are inherent limitations in our audit procedures described above. The more removed Ihal laws and regulations are from financial Iransaclions, the less likely it is that we would become aware of non-complian￿. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations lo enquiry of the trustees, and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further descriplion of our responsibilities for the audil of the financial slatemenls is located on Ihe Financial Reporting Council's website al www.frc.org.uklauditorsresponsibililies. This description forms part of our Report of the Independent Auditors. Use of Our Report This report is made solely to the group and charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state lo the group and charitable company's members those mallers we are required to state to Ihem in an auditors, report and for no other purpose. To the fullest extent permilled by law, we do nol accept or assume responsibility lo anyone olher than the group and charitable company and the group and charitable company's members as a body, for our audil work, for this report, or for the opinions we have formed. Clair Rayner FCA DChA {Senior Statutory Auditor) for and on behalf of Mccabe Ford Williams Slalutory Auditors and Chartered Accountants Building 1063 Cornforth Drive Kent Science Park Sittingbourne Kent ME9 8PX Date.. .6o/.ccI, /@,CPS Page 124 THURROCK COMMUNITY LEISURE LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025 31.03.25 31.03.24 Unrestricted ftjnds Restricted funds Unreslricled Restricted funds fitnds Total funds Total funds Notes INCOME Donation Income Charltable a¢tlvltles Leisure Centres Civic Hall Office and Cottage Rent 5,847,299 370.277 28,717 120,484 5,967,783 370,277 28,717 5,161,125 434,892 27,436 386,008 5,547,133 434.892 27,436 Other tiading activities Investments 264.129 60,759 264,129 60,759 213.356 59,106 213,356 59.106 Total Income 6,571,181 120.484 6,691,665 5,895,915 386,008 6.281,923 EXPENDITURE Raising funds 9.890 9,890 9,106 9,106 Charitable activities Leisure Centres Civic Hall Office and Cottage Rent 5,305,853 400,338 9,890 82,602 5,388,455 400,338 9,890 4,669,269 448,792 9,106 386,008 5,055.277 448,792 9,106 Trading activities 551,928 551,928 387,049 387,049 Total resources èxpended 6.277,899 82,602 6 360 501 5 523 322 386,008 5,909,330 Net Incomellexpenditure) for the year before other recognisod galns and losses 293,282 37,882 331,164 372.593 372,593 Transfers belween funds 22 Actuarial gainsl{losses} on defined benefit pension scheme 23 {203.000} (203,000) 12,803,000) 12,803,000) Net movement In funds 90,282 37,882 128,164 (2,430,407) 12,430.407) RECONCILIATION OF FUNDS Totsl funds brought forward 22 2.242.620 2,242,620 4,673,027 4,673,027 TOTAL FUNDS CARRIED FORWARD 22 2,332,902 37,882 2 370.784 2,242,620 2,242,620 CONTINUING OPERATIONS l income and expenditure has arisen from continuing activities. The noles form part of these financial statements Page 125 THURROCK COMMUNITY LEISURE LIMITED REGISTERED NUMBER: 03782811 BALANCE SHEETS AT 31 MARCH 2025 The Group 31.03.25 The Charitable Company 31.03.25 31.03.24 Note 31.03.24 FIXED ASSETS Tangible assets Investments 12 13 1,978,904 1,801,682 1,958,121 10,000 1,968,121 1,793,807 10,000 1,803,807 1,978,904 1,801.682 CURRENT ASSETS Stocks Debtors Investments Short temi deposits Cash al bank and in hand 15 16 17 53,371 249,154 1,085,795 59,093 176,410 1,085.795 45,108 254,496 1,085,795 50,096 229,555 1,085,795 472,594 1.860.914 379,215 1,700,513 417.804 1,803,303 281.961 1,647,407 CREDITORS Amounts due <1 year 18 1 155455 981,873 1 101452 932 145 NET CURRENT ASSETS 705 459 718.640 701851 715,262 TOTAL ASSETS LESS CURRENT LIABILITIES 2,684,363 2,520,322 2,669,972 2,519,069 CREDITORS Amounts due >1 year 19 {309,830) (276,4491 1309,830) {276,4491 PROVISIONS FOR LIABILITIES 20 (3,749) {1,253) NET ASSETS EXCLUDING PENSION LIABILITY 2,370,784 2,242,620 2,360.142 2,242.620 PENSION ASSETI (LIABILITY) 23 TOTAL NET ASSETS 2 370 784 2,242,620 2.360,142 2 242 620 FUNDS Restricted fvnds 22 50,960 50,960 Unrestricted funds: General funds Non Charitable trading funds Pension reserve Total unrestricted funds 2.309.182 10,642 2,242,620 2,309,182 2.242,620 2,319,824 2.242.620 2,309,182 2,242,620 TOTAL FUNDS 2.370.784 2,242,620 2,360,142 2,242,620 The financial statements were approved by the Board of Trustees on 3019125 and were signed on its behalf by.. Jalinder Nahal (Chair) The notes form part of these financial statements Page 126 continued... THURROCK COMMUNITY LEISURE LIMITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 31.03.25 31.03.24 Notes Cash flows from operating activities Nel cash inflow from operating aclivilies Tax paid Finance costs paid Net cashl(cost) from operating activities 400,265 648,192 118,079} 382,186 648,192 Cash flows from investing activities Dividends, interest and renl from investments Purchase of investment Current investment maturing Purchase of tangible fixed assets (Including HP) Cash used on investing actlvlties 59,106 11,085,795) 560,752 (103,615} (569,552) (402,773) (402,7731 Cash flows from flnancing activities Repaymenl of borrowing including HP Repaymenl of loan New leases Cash used In financlng activities (42,576) (138,015) 294,557 113,966 (121,364} (121,364) Increase l {decreasel in cash and cash equivalents in the year 93,379 (42,724) Cash and cash equivalents al the beginning of the year 379,215 421,939 Total cash and cash equivalents atlhe end of the year 472,594 379,215 The noles form part of these financial statements Page 127 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 RECONCILIATION OF NET INCOME I (EXPENDITURE) TO NET CASH INFLOW FROM OPERATING ACTIVITIES 31.03,25 31.03.24 Net incoming resources before other recognised gains and losses Depreciation charges Actuarial pension scheme charges Dividends, interest and rent from Investments (Increase} I decrease in stocks (Increase} I decrease in debtors Increase l (decrease) in creditors Increase l (decrease) in provisions 331,164 372,593 191,802 (145,0001 159,1061 (4,2621 {35,980) 326,892 1,253 225,552 (203,0001 18,079 5,722 {72,744) 92,996 2,496 Net cash inflow from operating activities 400,265 648,192 ANALYSIS OF CASH AND CASH EQUIVALENTS 31.03.25 31.03.24 Short term deposits Cash at bank and in hand 472,594 379,215 Total cash and cash equlvalents 472,594 379,215 ANALYSIS OF CHANGES IN NET FUNDS Al1.4.24 Cash Flow Al 31.3.25 Net Cash Cash at bank 379,215 93,379 472,594 Debt Finan￿ Leases Debls falling due wilhin one year Debts falling due after one year (107,785) {137,950) (184,570) (9,933) (292,355) (147,8831 (182,929) 147,949 (34,980) Total {49,449) 46,825 (2,6241 Page 128 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES Basis of preparing the financial statements The financial slalemenls of the group and chaiilable company, which is a public benefit entity under FRS 102, have been prepared in accordan￿ with the Charities SORP (FRS 1021 'Accounting and Reporting by Charities,. Statement of Recommended Practice applicable lo charilies preparing their accounts in accordance with Ihe Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS102) leffeclive 1 January 2019),, Financial Reporting Standard 102 'The Financial RetM)rting Standard applicable in the UK and Republic of Ireland, and the Companies Acl 2006. The financial slalemenls have been prepared under the historical cost convention with the exception of investments which are included al market value. These financial slalemenls consolidate the results of the charitable company and ils wholly-owned subsidiary TCL Trading Limited on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial slatements. Balances between the two companies are disclosed in the noles lo the charitable company's balance sheet. A separate statement of financial aclivilies, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of Companies Act 2006, The presentational currency of the financial statements is the Pound Slerling (£). Amounts included in the financial slalements are rounded to the nearest Pound Slerting {£). The charity is an incorporated private company limiled by guarantee without share capital and is registered wilh Companies House and Charity Commission. The charitable company's registered office and place of business are listed on Reference and Administrative Details page, Going concern The UK economy remains in a fragile bul cautiously optimistic state. While growth has slightly exceeded expeclalions, underlying challenges persist-high inflation, rising public debt, and a cooling labour market continue lo weigh on consumer confidence and business investment. The effects of global instability, particulady Ihe war in Ukraine, are still being fell through elevated energy costs and disrLfPted supply chains. Yel, there's a sense that the worst may be behind us, with policymakers aiming for a soft landing and gradual recovery, even as households and businesses remain wary of future Un￿rtainlIes. The trustees have assessed the charilvs ability to continue as a going concem, Despite ongoing financial pressures in the public sector and Ihe broader economic environment, the charity maintains a stable operational base and continues to deliver essential leisure services lo the community. Page 129 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES- continued Going concern - contlnued Key factors supporting the going concern status include.. TCL'S facilities and programmes remain well-ulilised, reflecting strong local engagement and relevance. This is supported through increased membership numbers. Based on current financial performance, strategic direction, and community support, the trustees are confident that Thurrock Community Leisure is well-posilioned to continue delivering its mission of creating active and healthy communities across ThurroGk, Income Income is recognised when the charity has entitlement to the funds, any performance conditions allached to the income have been mel, it is probable that the income will be received and the amount can be measured reliably. Income from government and olhergrants, 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. Income received in advance of the provision of a specified service is deferred until the crileriafor income recognition are met. Interest recelvable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charily., this is normally upon nolificalion of the interest paid or payable by the bank. Grants receivable Grants receivable in respect of a specified period relating lo the general activities of the charitable company are recognised in the Statement of Financial Activities in the period in which Ihey become receivable. Where related expenditure has not been incurred the grant is deferred only when the donor has imposed restrictions on the expenditure of resources which amount to pre-conditions for use Government grants Government grants are recognised when il is reasonably certain that the conditions allached to the grant are met. Income from grants is recognised when Ihere is evidence of entitlemenl to the gift, re￿Ipt is probable and ils amount can be measured reliably. Page 130 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES- contlnued Expenditure Liabililies are recognised as expenditure as soon as there is a legal or conslructive obligation committing Ihe charity lo that expenditure, it is probable that a transfer of economic benefils will be required in settlement and the amount of the obligation can be measured reliably, Expenditure is accounted for on an accfuals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly allribuled lo particular headings they have been allocated to aclivities on a basis consistent with the use of resources. Expenditure is classified under the following activity headings.. Costs of taising funds relate lo Ihe costs incurred by the chaTltable company in inducing third parties lo make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose. Expenditure on chaTilable aclivilies includes the costs of delivering services undertaken to further Ihe purposes of the charity and their associaled support costs, Other expenditure represents those items not falling into any other heading. Iriecoverable VAT is charged as a cost against the activity for which the expendilure was incurred. Allocation of support costs ReSoUr￿S expended are allocated lo the particular aclivity where the cost relales directly to the aclivily. However, the cosl of overall direction and administration of each activity, comprising the salary and overhead cosls of the central function, is apportioned on the following bases which are an eslimale, based on staff lime, of the amount attributable to each activity. Where information about the aims, objectives, and projects of Ihe charity is provided lo potential beneficiaries, the costs associated with this publicity are allocated to charitable expendilure. Support and governan￿ cosls are re-allocaled lo each of the activities on the following basis which is an estimate, based on staff time, of the amount allribulable to each activity Cost of raising funds Leisure cenlres Civic Hall Office and collage renlal 900/0 8/0 10 Governance costs are the costs ass(cialed with the govemance arrangemenls of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic managemenl of the charily's aclivilies. Tanglble fixed assets Items of equipment are capitalised where the purchase price exceeds £10,000, Depreciation costs are allocated to activities on the basis of the use of the related assets in Ihose activities. Assets are reviewed for impairment if circumstances indicale their carrying value may exceed their net realisable value and value in use. Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet. Depreciation is provided at rates calculated to write down the cosl of each asset lo its estimated residual value over its expected useful life, The depreciation rates in use are as follows.. Leasehold improvements Assets on linance lease 10-40 years over the length of the lease THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES- continued Investment in subsldlary Investmenl in Ihe subsidiary is slated al cost. Stocks Stocks are valued at the lower of cost and nel realisable value, after making due allowance for obsolele and slow moving items. In general, cost is determined on a first in first out basis and includes transport and handling costs. Fund accounting Restricted funds are to be used for specific purposes as laid down by Ihe 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 unreslricled funds earmarked by the Iruslees for particular purposes. Hire purchase and leasing commitments Assets purchased under finance leases are capitalised as fixed assets. Obligations under such agreements are included in creditors. The difference between Ihe capitalised cost and the total obligation under the lease represents the finance charge. Finance charges are written off lo the SOFA over the period of the lease so as to produce a constant periodic rate of charge. Operating lease rental charges are charged on a slraighl line basis over the term of the lease. Penslon costs and other post.retlrement benefits The Charitable Company accounts for the pension scheme in accordan￿ with the Financial Reporting Standard 102. The Charitable Company operates a defined benefit pension scheme and the pension charge is based on a full actuarial valuation dated 31 March 2019. The Charilable Company provides pension benefits for eligible staff through an Essex County Council administered pension scheme. The Essex County Council administered scheme is a mulli-employer scheme which provides benefits based upon final pensionable pay. For defined benefit schemes the amounls charged to resources expended on charitable activities are the current seNice costs and any gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately if the benefits are vested. If the benefits have not vested, Ihe costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown as a net amounl of olherfinance costs orcredits adjacent lo interest. Actuarial gains and losses are recognised immediately in the Statement of Financial Activities. The defined benefit scheme is funded, and the assets of the scheme are held separately from those of the chaTIIy in a trustee administered fund. Pension scheme assets a￿ measured at fair value and liabilities are measured on an actuarial basis using the projected unil melhod and discounted at a rate equivalenl lo the current rale of return on long dated high quality corw)rate bonds of equivalent currency and term lo the scheme liabilities. The actuarial valuations are obtained at least Iriennially and are updated at each balance sheet dale. Contributions made by Ihe Charitable Company to defined contribution pension schemes are charged lo Ihe Slalemenl of Financial Activities as Ihey are incurred. Page 132 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES- continued Flnanclal Instruments The company enters into basic financial instruments that result in Ihe recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties. al Trade and other debtots Trade and other debtors are initially recognised at fair value and thereafter staled al amortised cost using the effeclive interest method, less impaimienl losses for bad and doubtful debts except where the effect of discounling would be immaterial. In such cases, the receivables are stated at cosl less impaimient losses for bad and doubtful debts. bl Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand. cl Impairment of financial assets Financial assets that are measured al cosl and amortised cost are assessed at the end of each reporting period for objeclive evidence of impairment. sf objective evidence of impairment is found, an impairment loss is recognised in profit or loss. For financial assets measured at amortised c051, the impairment loss is measured as the difference between an asset's carrying amount and the present value of eslimaled cash flows discounted al the asset's original effective inlerest rale. If a financial asset has a variable inleiest rate, the discount rale for measuring any impairment loss is the current effective interest rale delemiined under Ihe contract. For financial assels measured al cost less impairment, the impairment loss is measured as Ihe difference between an asset's carrying amount and the besl eslimale, which is an approximalion, of Ihe amount that the company would receive for Ihe asset if it were lo be sold at the reporting date. d) Trade and other creditors Debt instruments like loans and other accounts payable are inilially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt inslfuments that are payable within one year, typically trade payables, are measured, initially and subsequently, al the undiscounted amount of the cash or other consideration expected lo be paid. However, if the arrangements of a short-lerm instrument conslitute a financing Iransaclion, like the payment of a trade debt deferred beyond normal business terms or financed al a rate of interest that is not a market rate or in case of an outright short-term loan nol at market rate, the financial asset is measured, initially and subsequently, at the present value of the future payments discounled at a market rate of interest for a similar debt instrument. Financial assets and liabililies are offset and the nel amount reported in the stalement of financial position when there is an enforceable right to sel off the recognised amounts and there is an intention to sellle on a net basis or to realise the asset and sellle the liability simultaneously, Page133 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES- contlnued Taxatlon The charity is exempl from corporation tax on ils charitable activities. The trading subsidiary is liable lo pay corporation tax on its trading profits, Taxation is recognised in the Statement of Financial Position under expenditure on trading aclivilies. Current tax is recognised al the amount of tax payable using the tax rates and laws that have been enacted or subslanlively enacted by the statement of financial posilion date, Deferred Tax Deferred lax is recognised in response of all timing differences that have originated but not reversed at the statement of financial position dale. Deferred tax is recognised at the amount of tax Ihal would be payable using the tax rates and laws that have been enacted or substantively enacted by Ihe statement of financial position date. The deferred lax expense is recognised in the Statement of Financial Position under expenditure on trading aclivilies. Impairment of non-financlal assets Al each reporting dale non-financial assets not carried al fair value, like plant and equipment, are reviewed to delermine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is eslimaled and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss. Critical accounting Judgemenfs and key sources of estimation uncertainty In the application of the group's accounting policies management is required lo make judgements, estimates and assumptions about the carrying value of assels and liabilities that are not readily apparent from other sources. The eslimales and Ltndeilying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from Ihe eslimates, The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only Ihal period, or in the period of the revision and future peri(xJs if the revision affects both current and future periods. The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost {incomel for pensions include the discount rate. Any changes in Ihese assumptions, which are disclosed in note 21, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the lalesl full actuarial valuation performed at 31 March 2019 has been used by the actuary in valuing the pensions liability al 31 March 2024. Any differences between the figures derived from Ihe roll foNard approach and a full actuarial valuation would impact on the carrying amount of the pension liability. Page 134 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 DONATION INCOME 31,03,25 Total 31.03.24 Total Unrestricted Restricted Donation Income INCOME FROM CHARITABLE ACTIVITIES 31.03.25 Total 31.03.24 Total Unrestricted Restricted Funding income Leisure centres income Sub-total for leisure cenlres 5,847,299 5,847,299 120,484 120,484 5,967,783 5,967,783 5,547,133 5,547,133 Civic Hall income Sub-total for Civic Hall 370,277 370,277 370,277 370,277 434,892 434,892 Office and cottage rent 28,717 28,717 27,436 Total income from chaiilable activities 6,246,293 120,484 6,366,777 6,009,461 INCOME FROM OTHER TRADING ACTIVITIES 31.03,25 Total 31,03.24 Total Unrestricted Restricted Golf club, shop and bar 264,129 264,129 264,129 264,129 213,356 213,356 INCOME FROM INVESTMENTS 31.03.25 Total 31.03.24 Total Unrestricted Reslricled Interest receivable 60,759 60,759 60,759 60,759 59,106 59,106 Page 135 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 TRADING ACTIVITY COSTS 31.03.25 Total 31.03.24 Total Unreslricled Restricted Staff costs Other trading costs 235,155 316,773 551,928 235,155 316,773 551,928 194,735 192,314 387,049 ANALYSIS OF EXPENDITURE Charitable activities Office and cotlage Govemance rent costs 31.03.25 31.03.24 Cost of raising funds Leisure centres Civic hall Support Costs Totsl Total Staff costs Promotion and publicity Premises costs Purchases for resale Office adminislralion costs Audit and accountancy Legal and professional 2,079,949 140,2g5 136,943 56,572 1,400,412 36,551 113,552 47,951 180,839 18,301 586,652 2,806,896 2,522,647 193,515 205,334 1,651,925 1,677,487 161,503 195,096 951,952 864,934 37,280 47,952 5,502 8,831 5,808,573 5,522,281 214,962 752.812 37,280 5,502 37,280 1,559,928 3,911,695 299,670 Support costs 9,517 1,443,208 97,686 9,517 {1,559,928} Govemance c051s 373 33,552 2,982 373 137,280) Total expendilure 2025 9,890 5,388,455 400,338 9,890 5,808,573 Total ex￿ndituTe 2024 9,106 5,055,277 448,792 9,106 5,522,281 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 NET INCOMEI(EXPENDITURE) Net income l (expenditure} is staled afler chargingl Icredilingl.. 31.03.25 31.03.24 Depreciation Inlerest payable Operating lease rentals Auditors, remuneration Audit fee (parent) Other services (parent) Audit fee (subsidiary) other services 225,552 18,018 59,529 191,802 24,278 16,304 13,209 772 5,445 375 19,801 12,580 735 5,185 360 18,860 TRUSTEES, REMUNERATION AND BENEFITS Truslees only receive remuneration in respect of the services Ihey provide undertaking the roles of slaff and not in respect of their seNices as Trustees. The value of Trustees, remuneration was £41,983 (2024: £49,533). Mark Couldridge, an employee of the Irusl, was appointed as a staff trustee on 26 Seplember 2023. He received total remuneration {Gross pay, employer pension conlribulions and employer national insurance contributions) of £41,983 for his role as a site manager12024.' £38,350). Of this, £1,106 (2024., £2,541) relates to pension contributions paid by the char¢ly. Trustees, expenses There were no payments or reimbursements of travel and subsislence cosls paid in the year ended 2025 or 2024. Page 137 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 10. STAFF COSTS 31.03.25 31.03.24 Wages and salaries Social security costs Employeff s contribution to defined contribution pension schemes Employerfs contribution to defined benefit pension schemes Operating cost of defined benefit pension schemes 2,857,736 180,797 59,518 116,000 172,000 2,527,278 156,166 50,938 108,000 125,000 3,042,051 2,717,382 The average monthly number of employees during the year was as follows., 31,03.25 139 14 13 31.03.24 130 13 Leisure cenlres Civic hall other trading activities SMT Support 177 162 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 31.03.25 31.03.24 £60,001- £70,000 £70,001- £80,000 £80,001-£90,000 £90,001- £100,000 £100,000- £110,000 £110,000- £120,000 The tolal employee benefits including pension conliibulions of the key management personnel was £356,484 (2024.. £363,977). Page138 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 11. TAXATION The Charitable Company paid no corporation lax dullng the year. Provisions for £nil (2024.. £nil) have been made at 31 March 2025 for corporation tax due in respect of the surplus from trading activities recorded in the year ended 31 March 2025. During the year ended 31 March 2025 all trading aclivilies were conducted by the wholly owned subsidiary, TCL Trading Limited. TCL Trading Limited has provisions included of £3,74912024.' £1,253) in respect of deferred taxation and a corporation tax creditor of £nil {2024'. £1,425) in respect of corporalion lax payable on profits relating to trading income. The analysis of the tax charge on the profil for the year was as follows,. 31.3.25 31.3.24 Current tax.. UK corporation tax Deferred laxalion movement Tax on trading profit 1,425 1,253 2,678 2,496 2,496 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 12. TANGIBLE FIXED ASSETS The Group Improvements lo leasehold property Plant and machinery Tolals COST At 1 April 2024 Additions Disposals 4,780,003 103,512 1,091,895 299,261 5,871,898 402,773 At 31 March 2025 4,883,515 1,391,156 6,274,671 DEPRECIATION Al 1 April 2024 Charge for year Disposal 3,082,556 167,811 987,659 57,741 4,070,215 225,552 At 31 March 2025 3,250,367 1,045,400 4,295,767 NET BOOK VALUE At 31 March 2025 1,633,148 345,756 1,978,904 At 31 March 2024 1,697,447 104,236 1,801,683 Fixed assets, included in Éhe above, which are held under hire purchase conlracls or finance leases are as follows: The Group Plant and machinery COST Al 1 April 2024 Additions 122,232 288,685 At 31 March 2025 410,917 DEPRECIATION At1 April 2024 Charge for year 17,997 57,566 At 31 March 2025 75,563 NET BOOK VALUE At 31 March 2025 335,354 AÉ 31 March 2024 104,235 Page 140 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 12. TANGIBLE FIXED ASSETS- continued The Charitable Company Improvements to leasehold property Planl and Machinery Totals COST At1 April 2024 Additions Disposals 4,633,886 103,512 963,804 275,761 5,597,690 379,273 At 31 March 2025 4,737,398 1,239,565 5,976,963 DEPRECIATION At1 April 2024 Charge for year Disposals 2,943,694 164,366 860,189 50,593 3,803,883 214,959 At 31 March 2025 3,108,060 910,782 4,018,842 NET BOOK VALUE At 31 March 2025 1,629.338 328,783 1,958,121 At 31 March 2024 1,690,192 103,615 1,793,807 Fixed assets, included in the above, which are held under hiie purchase contracts or finan￿ leases are as follows.. The Charitable Company Plant and machinery COST At 1 April 2024 Additions 103,615 265,185 At 31 March 2025 368,800 DEPRECIATION At 1 April 2024 Charge for year 50,418 At 31 March 2025 50,418 NET BOOK VALUE At 31 March 2025 318,382 At 31 March 2024 103,615 Page141 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 13. FIXED ASSET INVESTMENTS The Charitable Company Shares in group undertakings Totals COST Al1 April 2024 Disposals 10,000 10,000 At 31 March 2025 10,000 10,000 AMORTISATION At1 April 2024 Eliminated on disposal At 31 March 2025 NET BOOK VALUE At 31 March 2025 10,000 10,000 Al 31 March 2024 10,000 10,000 Page 142 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 13. FIXED ASSET INVESTMENTS- contlnued The company's investmenls at the balance sheel dale in the share capital of companies include the following: Subsidiary TCL Tradlng Llmlted Nature of business.. Golf shop, bar, catering, maintenance services Class of share: Ordinary share capital holding 100 The charitable company owns the whole of the issued shares of TCL Trading Limited, a company registered in England which became operable from 1 October 2003. The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line bases in the slalemenl of financial aclivilies. Available profils are gift aided to the charilable company. A summary of the results of the subsidiary is shown below; 31.03.25 31.03,24 Turnover Cosl of sales Gross profit 562,476 186,826 375,650 476,698 116,831 359,867 Administrative expenses Operating profit l (loss) Other income Tax on profil Profil l {loss) on ordinary activities 352,004 23,646 310,688 49,179 2,496 21,150 2,678 46,501 Deed of covenant to parent undertaking Profit l {lossl for the financial year 10,508 10,642 48,568 2,067 The aggregate of the assets, liabilities and funds was: Assets Liabilities Share Capital Retained Eamings 87,016 166,3741 10,000 10,642 117,040 1107,040) 10,000 14. PARENT CHARITABLE COMPANY The parent charitable company's gross income and the results for the year are disclosed as follows.. 31.03.25 31.03.24 Gross income Nel result for the year 6,498,521 117,522 6,178,616 229,659 Page 143 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 15. STOCKS The group 31.03.25 31.03.24 The charitable company 31.03.25 31.03.24 Stocks 53,371 59,093 45,108 50,096 16. DEBTORS The group 31.03.25 31.03,24 The charitable company 31.03.25 31.03.24 Amounts f811ing due within one year.. Trade debtors Other debtors Amounts due from other group members Prepayments and accrued income Taxation 529 97,934 66,396 31,549 529 97,934 7,109 149,024 63,970 31,549 55,715 78,321 150,691 78,465 249,154 176,410 254,596 229,555 17. CURRENT ASSET INVESTMENTS The group 31.03.25 31.03.24 The charitable company 31.03.25 31.03.24 Analysis of current asset investments,. Cash or cash equivalents 1,085,795 1,085,795 1,085,795 1,085,795 1,085,795 1,085,795 1,085,795 1,085,795 18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR The group 31.03.25 31.03.24 The charitable company 31.03.25 31,03,24 Trade creditors Loans Accruals and deferred income VAT payable Lease liability Social Security and other laxes Other creditors Other taxes Amounts due lo other group members 260,916 147,883 531,858 17,681 71,505 45,083 80,529 292,195 137,950 434,493 14,282 14,265 42,702 44,561 1,425 240,866 147,883 513,206 19,194 54,690 45,083 80,530 282,839 137,950 411,243 14,626 12,530 42,702 30,255 1,155,455 981,873 1,101,452 932,145 Page 144 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR The group 31.03.25 31.03.24 The charitable company 31,03,25 31.03.24 Lease liabilities due 2- 5 years Lease liabilities due after 5 years Loan liabilities due 2- 5 years 271,324 3,526 34,980 309,830 70,726 22,794 182,929 276,449 271,324 3,526 34,980 309,830 70,726 22,794 182,929 276,449 The charity have a charge with National Westminster Bank PLC which is secured on the charity's assets and commenced in June 2002. The charge is specifically for the Direct Debil membership collections, in the eventuality members requesl money back. The charity also have a second charge in respect of a loan with Social Inveslmenl Business FM Limited which is secured on the charity's assets and commenced in March 2021, The loan is repayable over 5 years in inslalments. Inleresl is chargeable at 90k in year1, and 7% in subsequent years. 20. PROVISIONS FOR LIABILITIES Group Company 31.12.25 31.12.24 31.12.25 31.12.24 Deferred taxation 3,749 1,253 3,749 1,253 21. OPERATING LEASE COMMITMENTS The group's minimum lease payments under non-cancellable operating leases fall due as follows.. Equipment 31.03.25 31.03.24 Within one year Between one and five years 2,447 7,953 4,320 4,040 10,400 8,360 Rent 31,03,25 31.03.24 Within one year Between one and five years 54,250 212,479 54,250 262,208 266,729 316,458 Page 145 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 21. OPERATING LEASE COMMITMENTS- contlnued The charitable company's minimum lease payments under non-cancellable operating leases fall due as follows.. Equipment 31.03.25 31.03.24 Within one year Between one and five years 2,447 7,953 3,746 4,040 10,400 7,786 Rent 31.03.25 31.03.24 Within one year Between one and five years 54,250 212,479 54,250 262,208 266,729 316,458 22. ANALYSIS OF NET ASSETS BETWEEN FUNDS 31.03.25 31.03.24 Restricted Total funds Total funds funds Unreslricled funds Fixed assets Inveslmenls Current assets Current liabilities Long term liabilities Provisions for liabilities Pension asset l {liabilily} 1,978,904 1,085,795 713,419 (1,144,055) 1309,830) (3,749) 1.978,904 1,085,795 61,700 775,119 (11,400) (1,155,455) (309,8301 (3,749) 1,801,682 1,085,795 614,718 {981,873) (276,449} (1,253) 2,320,484 50,300 2.370,784 2,242,620 Analysis of net assets between funds- previous year 31.03.24 31,03,23 Restricted Tolal funds Total funds funds Unrestricted funds Fixed assets Investments Current assets Current liabilities Long term liabilities Pension asset l {liabilily} 1,801,682 1,085,795 614,718 (981,873) 1276,449) 1,253} 1,801,682 1,889,869 1,085,795 560,752 614,718 617,200 (981,8731 (730,1751 (276,4491 1322,6191 2,658,000 2,242,620 2,242,620 4,673,027 Page 146 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 23. MOVEMENT IN FUNDS Al the start of the year Incoming resources Outgoing Transfers Al the end of resources and gains the year Restrlcted funds: Cancer Rehab Place Partnership Weight Management Active Essex- Park Run General Reslricled 66,340 32,000 3,180 5,200 13,764 {22,6201 {34,7391 {1,5901 43,720 2,739 1,590 5,200 450 {23,653} 10,339 Total restricted funds 120,484 82,602 13,078 50,960 Unrestricted funds: General funds of TCL General funds of TCL Trading Total general funds Pension fund 2,242,620 6,307,052 {6,076,4991 (163,991} 264,129 {404,4001 150,913 6,571,181 16.480,8991 {13,078} 2,309,182 10,642 2,319,824 2,242,620 203,000 {203,000) 6,277,899 216,078 Total unrestricted funds 2,242,620 6,571,181 2,319,824 Total funds including pension fund 2,242,620 6,691,665 6,360,501 203,000 2,370,784 Movement in Funds- Previous year At the start of the year Incoming resources Outgoing Transfers At Ihe end of resources and gains the year Restricted funds: Leisure Centre 386,008 (386,008) Tolal restricted funds 386,008 386,008 Unrestricted funds: General funds of TCL General funds of TCL Trading Total general funds Pension fund 2,012,959 2,068 2,015,027 5,682,559 15,281,273} {171,625) 213,356 387,049 171,625 5,895,915 5,668,322 2,242,620 2,242,620 2,658,0 145,000 {2,803,000} 5,523,322 2,803,000 Total unreslricled funds 4,673,027 5,895,915 2,242,620 Total funds including pension fund 4,673,027 6,281,923 5,909,330 2,803,000 2,242,620 Page 147 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 23. MOVEMENT IN FUNDS- continued Transfer of funds A Iransfer of £13,07812024.' £nill has been made from restricted to unreslricted funds for the reallocation of assets purchased via restricted funds which are being used in Ihe unrestricted element of the trade. Restrlcted funds Restricted funds of £50,960 {2024'. £nil) have been carried foward this year. Cancer Rehab TCL Limited Ua Impulse Leisure will deliver face-lo-face, twice weekly exercise programmes for12 weeks in seven locations across Ihe MSE I￿alitY to provide pre-and rehabilitation to cancer palienls. The service will have the goal of delivering.. Improvement in function, frailty level, physical activity, health-related quality of life and mobility as well as leading to a greater sense of control, lower levels of anxiely and improved motivation. For prehabilitation this will ready patients lo cope with besl-in-class cancer Irealment, reduce hospital stays and emergency admissions and reduce treatment related side effects. For rehabilitation this will help patients lo recover from cancer treatment and cope with ongoing treatment and for some cancers reduce the Chan￿ of the cancer recurring. Outcomes: To improve local access to specialist face-lo-face exercise programme Promoting Health and improved quality of life Reduced side effects of cancer Irealmenl such as fatigue, slress and anxiety and depression Place Partnershlp To act in a senior capacity lo diive the development phase of Thurrock Place Partnership work supporting the Thurrock Place. In this period, the individual is not representing the organisalion they work for, bul the local system, funding is provided for a limited period to create the development phase into a full application. This is achieved Ihrough.. Working in partnership with Ihe Active Essex leam. Building momentum and commitment to Place Partnership across multiple partners and senior people. Influencing, where possible in Ihe limeframe of the development phase, relevant identified policies, plans, programmes, projects, budgets to priorilise physical aclivity, Overseeing the development phase delivery plan, and in some cases, leading on some of the delivery plan lasks, such as sel up lesl and learn projects. Gel involved with some of the development phase workshops and co.design meetings. Helping co-design an appropriate governance structure for the 3-year main phase. Helping wilh the wod(ing up of the 3-year plan and budget Weight Management 12 Week programme with a focus on tackling high levels of inaclivilylHypertensionlobesily in Tilbury and Chadwell areas. TCL Limited Ua Impulse Leisure based on this lunding offers Hybrid solution of face to face and impulse on demandlvirtual platform, The 12-week programme is for 30 inclusive memberships for all. We offer guidan￿ and support throughout with education and regular weigh-in. Initially, we have 30 minutes initial consultation. We can have referrals from self-referral, GP surgeries, Social Prescribers, Community Health Champions, Local Area Co-ordinator's. Page 148 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 23. MOVEMENT IN FUNDS- continued Weight Management. continued TCL Limited Va Impulse Leisure offers a 12-week membership to our 3 main cenlres with no restriction to times and days. With participants that are unable to easily visit our centres will be supported by with our 'on demand virtijal library,, Once a week, TCL Limited Ua Impulse Leisure will check in with participant for weight, food diary, activity log via telephone or zoom call. Active Essex Park Run This is Junior parkrun at Belhus Pafk Leisure Centre in South Ockendon al present pending as we recruit volunteers. The distance Is 2Km and the targeted audien￿ are 410 14 years. They are encouraged to walk, jog or run the distance and must be accompanied by an adult. This would encourage families to be active together. TCL Limited Va Impulse Leisure are working in co-operation wlh the council (commissioned this run) to work with schools, family hubs, public health team for children and young people Pension Fund The pension fund covers the actuarial valuation of the pension scheme. Swimmlng pool support fund The charity received £nil {2024'. £240,544) of swimming pool support funding from Sport England. All of this funding was spenl in Ihe year, with funds of £nil being carried forward, 24. EMPLOYEE BENEFIT OBLIGATIONS Employees of Thurrock Community Leisure are admitted to the Essex County Council Pension Fund, a defined benefit scheme which is administered by Essex County Council under the regulations governing the Local Government Pension Scheme. The figures disclosed below have been derived by approximate methods from Ihe lasl full actuarial valuation of the fund carried out by Mercer Human Resource Consulting Lld as at 31 March 2016. The amounts recognised in the balance sheel are as follows,. Defined benefit pension plans 31.03.25 31.03.24 Present value of funded obligalions Fair value of plan assets Impact of asset ceiling 13,499,000) 14,028,000) 7,853,000 7,542,000 4,354,000) 3,514,000) Surplus l {Deficil} Asset l {Liabilily} Page 149 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 24. EMPLOYEE BENEFIT OBLIGATIONS- continued The amounts recognised in Ihe statement of financial activities are as follows,. Defined benefit pension plans 31.03.25 31.03.24 Current service cost Nel interest from net defined benefit asseuliabilily 85,000 (3,000) 88,000 1130,000) 5,000 5,000 Total loss I (profit) 87,000 37,000) Changes in Ihe present value of Ihe defined benefit obligation are as follows,. Defined benefit pension plans 31.03.25 31.03.24 Opening defined benefit obligation Current service cost Past service cost Contributions by scheme participants Interest cost Change in financial assumptions Actuarial lossesllgainsl Change in demographic assumptions Benefits paid 4,028,000 85,000 4,056,000 88,000 34,000 195,000 {610,000) (7,0001 (9,0001 217,0001 33,000 192,000 (165,000) 11,000 152,000) 135,000) 3,499,000 4,028,otxJ Changes in the fair value of scheme assets are as follows.. Defined benefit pension plans 31.03.25 31.03.24 Opening fair value of scheme assets Interest on assets Administration expenses Contributions by employer Contributions by scheme participanls Expected return Other actuarial gainslllossesl Benefits paid 7,542,000 372,000 {5,0001 116,000 34,000 11,000 6,714,000 322,000 15,000) 108,000 33,000 505,000 217,0001 135,000) 7,853,000 7,542,000 Page 150 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 24. EMPLOYEE BENEFIT OBLIGATIONS- continued The amounts recogrsised in olher recognised gains and losses are as follows: Defined benefit pension plans 31.03.25 31.03.24 Actuarial gainslllosses) from changes in demographic assumplions Actuarial gainslllosses) 9.000 617,000 52,000 154,000 626,000 206,000 The major categories of scheme assets as a percentage of lolal scheme assets are as follows.. Defined benefit pension plans 31.03.25 31.03.24 Equities Gills other bonds Property Cash Other managed funds Alternative assets 20k 8/. 20 2/ Assel breakdown 31,03.25 £OOOs 4,311 119 31.03.24 £OOOs 4,177 135 Equities Gills Other bonds Property Cash Other managed funds Allemalive assets 634 153 1,452 1,184 521 186 1,376 1,147 7,853 7,542 Projected employer contributions for the year ending 31 March 2025 are £118,000. Principal acluarial assumptions at the balance sheet dale (expressed as weighted averages) 31,3.25 31.3,24 Discount rale Future salary increases Future pension increases 2.90Yo 2.85% THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 24. EMPLOYEE BENEFIT OBLIGATIONS- contlnued The following table sets out the impact of a small change in the discount rales on the defined benefit obligation and projected SeN1￿ cost along with a +1- 1 year age rating adjustment lo the mortality assumption.. Adjustment lo discount rale Present value of lolal obligation Projected service cost +0.1Y. 3,954 68 +0.10/0 3,499 70 4,104 72 Adjustment to long term salary increase Present value of total obligation Projected service cost 4,037 70 +0.10/0 3,499 70 4,019 70 -0.101. Adjustment lo pension increases and deferred revaluation Present value of lotal obligation Projected seTvice cost 4,096 72 +1 year 3,499 70 None 3,692 68 -1 year Adjuslmenl to life expectancy assumptions Present value of total obligation Projected service cost 4,155 73 3,499 70 3,905 67 25. CAPITAL COMMITMENTS Al 31 March 2025 there was capital commitments tolalling £nil (2024.. £77,841 relating lo gym refurbishment at Blackshots leisure cenlrel. 26. RELATED PARTY TRANSACTIONS Thurr(ck Community Leisure Limited ITCL) owns 100010 shares of TCL Trading Ltd (TCLT). During the year following Iransactions occurred between the group companies.. TCLT: During the year, TCL paid commission of £46,494 {2024.' £37,309) and management charges of £256,783 (2024.. £244,788) to TCLT lor management of the golfclub and shop. TCL charged a management fee of£44,820 to TCLT (2024.. £42,726). TCLT gift aided £10,508 {2024: £48,568) to TCL. At the year end, TCL owed £nil (2024: £nil) to TCLT. TCLT owed £7,109 {2024.' £55,715) to TCL. Trustees, remuneration and expenses are disclosed in note 9. There are no donations from related parties which are outside the normal course of business and no reslricled donations from related parties. 27. LEGAL STATUS OF THE CHARITY The charity is a company limited by guaranlee and has no share capital. The liability of each member in the event of winding up is limiled lo £1. Page152