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2023-03-31-accounts

Registered Company Number: 04034415 (England and Wales) Registered Charity Number: 1087978

REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 FOR ASHBROOKE SPORTS CLUB LIMITED

(A COMPANY LIMITED BY GUARANTEE)

NE Accountancy Services Ltd Chartered Accountants 27 Park Avenue Sunderland SR6 9NJ

1

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

CONTENTS OF THE FINANCIAL STATEMENTS For the Year Ended 31 March 2023

Page
Report of the Trustees 1 to 4
Independent Examiner’s Report 5 to 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 to 14
Detailed Statement of Financial Activities 15 to 16

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES

For the Year Ended 31 March 2023

The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report for the year ended 31 March 2023. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the charity are as set out in the Memorandum and Articles of Association, namely to provide for the inhabitants of Sunderland and its surrounding area in the interests of social welfare facilities for bowling, cricket, rugby football, squash and other healthy recreation and leisure time occupation, irrespective of ability and with the object of improving the conditions of life for the said inhabitants.

Public benefit

The Trustees have had due regard to the guidance published by the Charity Commission on public benefit.

The work of Ashbrooke Sports Club Limited benefits the people of Sunderland and the surrounding areas who participate in the various sports activities on offer.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Ashbrooke has continued to maintain its commitment to sport. The club is open for access to all in Sunderland and the surrounding area to advance and maintain their fitness, well-being, participation and enjoyment of the facilities.

The Trustees have been satisfied with progress in diversifying the membership and participation, whereby greater opportunity for the women and girls to participate has been advanced significantly, as has the provision for children.

Ashbrooke Sports Club, like many other charities and organisations, suffered greatly due to the Covid pandemic and lock-down and the necessary requirements for social distancing, not conducive to a team sport environment. The aftereffects are still being felt.

On the sports front rugby was decimated with no clearance to play or practice throughout the year due to the requirements to observe the contact rules. Cricket and bowls were able to operate under stringent rules set by their governing bodies from July through to September, with squash further hampered by the fact that it is an indoor sport.

The result has been a reduced membership as many people are now in the habit of not going out to enjoy social activities and a corresponding drop in income as function room hire and bar income has reduced significantly.

Playing facilities are maintained by experienced ground staff and provide some of the best surfaces on which to play sport in the North East of England, something regularly commented upon by visiting teams and officials.

1

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES (Cont) For the Year Ended 31 March 2023

FINANCIAL REVIEW

Financial position

The ongoing economic outlook for the UK following the pandemic and the outbreak of the Ukraine conflict have brought challenges for this club, as it has for virtually every business in the land and all of us as individuals and families.

The Trustee Board have worked incessantly with its partners and stakeholders to ensure that the Club has been able to sustain its way through these challenges.

Our financial results show a further deficit for the year of £46,380 which is an improvement on the disappointing results of the previous year.

Tough trading conditions remain, we need the support of all members as we continue to forge a way forward to a sustainable future with or without Covid.

Despite the deficit for the year the balance sheet remains in a healthy positive position.

Reserves policy

The Trustees have reviewed the charity’s needs for reserves held under review, monitoring the level of reserves held throughout the year as part of the normal monitoring and budgetary process.

After reviewing the reserves held at present, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operation for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing the financial statements.

FUTURE PLANS

For a number of years now our Club has been asset rich, but cash poor. Successive elected Trustees have battled with expenditure constantly exceeding income - something had to change.

This statement is being prepared in May 2024, a full 14 months after the accounts under review in this Report. Trustees have called EGM's over the past 2 years to alert members to the urgency of the financial situation. This culminated in an EGM in February 2024 when a scheme to sell off the Club to a member on a buyback deal was passed. This was however superseded by an offer of a loan of £310,000 from a company linked to another member. This was a much better deal for our Club and a contract was prepared by solicitors. This money was received on 5th April 2024, the initial period being 44 months to allow the Trustees time to progress the land sale.

The Trustees are now working on a 3 pronged plan -

  1. To utilise the £310,000 loan to allow debt reduction, staffing changes and to get all ongoing commitments up to date.

  2. We have agreed in principle to outsource the entire hospitality and bar side of our business to a third party company in return for a quarterly fee. The chosen company will undertake substantial internal improvements in return for a 20 year lease.

  3. A member has agreed to underwrite the additional costs required to revamp the office area, change various entrances, improve the changing rooms and repair the roof. This member is to be ultimately repaid from the ongoing land sale.

2

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES (Cont) For the Year Ended 31 March 2023

Playing members will be aware that this plan needs everyone to be on board and to do that bit more for our Club. More responsibility for ground preparation and maintenance, in return for the various sections retaining approximately 75% of their member's annual fees is the business model passed by members at a previous EGM in late January 2024.

We now have time to effect the land sale without the day to day lack of money placing undue pressure on Trustees to accelerate progress. When that money is received we expect to have only 4 debts to clear, the above £310,000 loan, a previous £60,000 member's loan (from 2021), our RBS Covid bounce back loan as well as an agreed sum to the member kindly underwriting the above improvements.

We really hope the above changes will give all members confidence that our Club has a manageable plan to ensure our long term prosperity.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Charity constitution

Ashbrooke Sports Club Limited is a charitable company limited by guarantee. The charity was established under a Memorandum of Association, which established the objectives and powers of the company, and is governed under its Articles of Association. The members of the company are the current Trustees and the liability of the members is limited. Every member of the charity promises, if the charity is dissolved while he or she is a member (or within 12 months after he or she ceases to be a member), to contribute such sum (not exceeding £10) as may be demanded of him or her towards payment of the debts and liabilities of the charity incurred before he or she ceases to be a member, and of the costs, charges and expenses of winding up.

Appointment of new Trustees

The management of the charitable company is the responsibility of the Trustees who are appointed under the terms of the Memorandum and Articles of association. At each annual general meeting one third of the directors retire and are eligible for re-election if the vacancies have not been filled.

Organisational structure

The Trustees attend Board meetings throughout the period as required.

3

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

REPORT OF THE TRUSTEES (Cont) For the Year Ended 31 March 2023

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04034415 (England and Wales)

Registered Charity number 1087978

Registered office

West Lawn Ashbrooke Road Sunderland Tyne and Wear SR2 7HH

Trustees

P Geehan F Patterson J Gillon – appointed 10/10/2022 I P McConnell – appointed 01/03/2023 D Carter – appointed 02/03/2023

Independent Examiner

Gerald Henderson FCA FCCA Institute of Chartered Accountants in England and Wales NE Accountancy Services Ltd 27 Park Avenue Sunderland SR6 9NJ

Approved by order of the Board of Trustees on and signed on its behalf by:

J Gillon - Trustee 20 May 2024

4

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

Independent examiner’s report to the Trustees of Ashbrooke Sports Club Limited (A Company Limited by Guarantee) (‘the Company’)

I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 March 2023.

Responsibilities and basis of report

As the charity’s Trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I can confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. Accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. The accounts do not accord with those records; or

  3. The accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  4. The accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

Matters of uncertainty

The charity has made a deficit for the year of £46,380 which is a decrease on the deficit of £73,170 made in 2022. These results follow a protracted period of poor financial results over several years and various committee changes.

As a result of the poor financial performance the charity has struggled to pay its debts as they fall due and would therefore technically be classified as insolvent. This has been alleviated in the short term by the receipt of a loan of £310,000 in April 2024. However the long term future of the charity hinges on the successful sale of land owned by the charity. If this land sale cannot be concluded before the available cash reserves run out then I believe therefore that there will be a material uncertainty as to the charity’s ability to continue as a going concern.

The trustees believe they now have sufficient cash reserves to meet the charity’s financial obligations as they fall due until the land sale can be concluded. They also believe they can secure the future of the charity through the plans stated in the Trustees Report which include a combination of cost cutting, restructuring of the charity’s operations and finances.

On this basis they believe the charity to be a going concern and have drawn up the accounts on a going concern basis. The accounts do not therefore include any adjustments which would result should the charity not be considered a going concern.

5

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

I have no other concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Gerald Henderson FCA FCCA Institute of Chartered Accountants in England and Wales NE Accountancy Services Ltd Chartered Accountants 27 Park Avenue Sunderland SR6 9NJ

20 May 2024

6

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES For the Year Ended 31 March 2023

Note
INCOME AND ENDOWMENTS FROM
Subscriptions, donations and legacies
Other trading activities
2
Grant received
Total Income
EXPENDITURE ON
Raising funds
Charitable activities and support costs
Charitable activities and support costs
Total Expenditure
NET INCOME/(EXPENDITURE) FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
 2023
£
57,438
360,000
24,192
441,630
151,112
336,898
488,010
(46,380)
868,874
822,494
 2022
£
63,550
361,653
42,558
467,761
138,770
402,161

540,931

(73,170)
942,044

868,874

7

ASHBROOKE SPORTS CLUB LIMITED

(A COMPANY LIMITED BY GUARANTEE)

BALANCE SHEET

As at 31 March 2023

Note
FIXED ASSETS
Tangible assets
6
CURRENT ASSETS
Stocks
7
Debtors
8
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
9
NET CURRENT (LIABILITIES) / ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
10
NET ASSETS
FUNDS
Unrestricted funds
13
TOTAL FUNDS		 2023
£
1,159,391
5,500
14,628
26,444
46,572
(276,172)
(229,600)
929,791
(107,297)
822,494

822,494
822,494
 2022
£
1,170,994
5,706
27,575
34,519
67,800
(135,678)
(67,878)
1,103,116
(234,242)
868,874

868,874
868,874

The Trustees consider that the charitable company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the charitable company to obtain an audit for the year in question in accordance with section 476 of the Act.

The Trustees acknowledge their responsibility for

The financial statements were approved by the Trustees on 20 May 2024 and signed on their behalf, by:

J Gillon

8

ASHBROOKE SPORTS CLUB LIMITED

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2023

1. ACCOUNTING POLICIES

Basis of preparation of the financial statements

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and the Companies Act 2006. Ashbrooke meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note. The financial statements are prepared in sterling which is the functional currency of the charity.

Income

All incoming resources are included in the Statement of financial activities when the charitable company is legally entitled to the income and the amount can be quantified with reasonable accuracy. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of receipt.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the liability can be measured reliably. All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributable to particular activities, they have been allocated on a basis consistent with the use of the resources.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the charitable company for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 2% on cost Plant and machinery - 15% on reducing balance Fixtures and fittings - 15% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making allowance for obsolete and slowmoving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

9

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (cont) For the year ended 31 March 20223

ACCOUNTING POLICIES (Cont.)

Hire purchase and leasing commitments.

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the pension scheme are charge to the Statement of Financial Activities in the period to which they relate.

2. OTHER TRADING ACTIVITIES

Bar sales
Hire of rooms and pitches
Hire of squash courts
Sundry income		 2023
£
291,461
54,642
7,802
6,095
360,000		 2022
£
298,572
35,832
8,280
18,969
361,653

3. NET INCOME/(EXPENDITURE)

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

2023 2022
£ £
Depreciation 11,604 10,870
Hire of plant and machinery 7,225 7,921

4. TRUSTEES’ REMUNERATION AND BENEFITS

There were no trustees’ remuneration or other benefits for the year ended 31 March 2023 (2022 - £Nil).

Trustees’ expenses

There were no trustees’ expenses paid for the year ended 31 March 2023 (2022 - £Nil).

10

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (cont) For the year ended 31 March 2023

5. STAFF COSTS

Wages and salaries
Other pension costs		 2023
£
149,687
1,742
151,429		 2022
£
204,763
881
205,644

The average number of monthly employees during the year was as follows:

2023 2022
Club activities 11 14

No employees received emoluments in excess of £60,000.

6. TANGIBLE FIXED ASSETS

COST
As at 1 April 2022
Additions
Disposals
As at 31 March 2023
DEPRECIATION
As at 1 April 2022
Charge for the year
Eliminated on disposals
As at 31 March 2023
NET BOOK VALUE
As at 1 April 2023
As at 1 April 2022		 Freehold
property
£
1,182,176
-
-
1,182,176
44,185
6,653
-
50,838
1,131,338
-
1,137,991		 Plant and
machinery
£
110,714
-
-

110,714

95,423
2,294
-

97,717

12,998

15,291		 Fixtures
and
fittings
£
120,600
-
-
120,600

102,888
2,657
-
105,545

15,055

17,712		 Totals
£
1,413,490
-
-
1,413,490
242,496
11,604
-
254,100
1,159,391
1,170,994

11

ASHBROOKE SPORTS CLUB LIMITED

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (cont) For the year ended 31 March 2023

Included in cost or valuation of land and buildings is freehold land of £959,837 (2022 - £959,837) which is not depreciated.

The freehold property at Ashbrooke Sports Club, Ashbrooke Road, Sunderland was professionally valued in March 2012 by Robertson Simpson Ltd and Chadwick Property Consultants. Three separate bases of valuation were given, as follows:

  1. Present occupation by the club as a going concern £600,000.

  2. Vacant possession £600,000.

  3. With planning consent for 4-star hotel accommodation with associated car parking etc £1,240,000.

The professional valuation given in October 2009 was £900,000, at which figure it remains in the accounts. Under the transitional provisions of FRS 102 this valuation is treated as deemed cost and consequently there is no requirement to update this valuation.

7. STOCKS

Stock
8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Prepayments		 2023
£
5,500
2023
£
2,133
12,495
14,628		 2022
£
5,706
2022
£
2,049
25,526
27,575

12

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (cont) For the year ended 31 March 2023

9.CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts (see note11)
Hire purchase
Trade creditors
Social security and other taxes
VAT
Brewery loan
Other creditors
Accrued expenses
0. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans (see note 11)
Other loan
Hire purchase
1. LOANS
n analysis of the maturity of loans is given below:
Amounts falling due within one year on demand
Amounts falling due between two and five years
Amounts falling due in more than five years: repayable by instalments		 2023
£
158,683
5,112
31,475
879
17,157
37,717
310
24,839
276,172

2023
£
39,601
61,859
5,837
107,297

2023
£
196,401
101,935
-		 2022
£
27,959
5,700
17,678
4,474
7,030
47,097
172
25,568
135,678

2022
£
164,404
60,813
9,025
234,242

2022
£
75,056
199,875
25,342

10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

11. LOANS

An analysis of the maturity of loans is given below:

13

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (cont) For the year ended 31 March 2023

12. SECURED DEBTS

The following secured debts are included within creditors:

Bank loans 2023
£
198,285
 2022
£
192,363

The bank loan is secured against the freehold property.

13. MOVEMENT IN FUNDS

2023
UNRESTRICTED FUNDS
General Funds
Designated
TOTAL FUNDS
2022
UNRESTRICTED FUNDS
General Funds
Designated
TOTAL FUNDS		 At
01.04.2022
£
385,150
483,724
868,874

At
01.04.2021
458,320
483,724
942,044
 Incoming
resources
£
441,630
-
441,630

Incoming
resources
467,761
-
467,761
 Resources
expended
£
(488,010)
-
(488,010)
Resources
expended
(540,931)
-
(540,931)		 At
31.03.2023
£
338,770
483,724
822,494
At
31.03.2022
385,150
483,724
868,874

14. OPERATING LEASE COMMITMENTS

Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases of £8,668 (2022 £8,668).

14

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

For the Year Ended 31 March 2023

INCOME AND ENDOWMENTS
Donations and sponsorship
Subscriptions
Other trading activities
Bar and café sales
Hire of rooms and pitches
Hire of squash courts
Sundry income
Grant Received
Total incoming resources
EXPENDITURE
Other trading activities
Bar expenditure
Licences and subscriptions
Stocktaking fees
Satellite TV		 2023
£
12,454
44,984
57,438
291,461
54,642
7,802
6,095
360,000
24,192
441,630

142,058
1,195
1,478
6,381
151,112
 2022
£
39,590
23,960
63,550
298,572
35,832
8,280
18,969
361,653
42,558
467,761

130,610
2,116
1,280
4,764
138,770

15

ASHBROOKE SPORTS CLUB LIMITED (A COMPANY LIMITED BY GUARANTEE)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES (cont) For the Year Ended 31 March 2023

Charitable activities
Wages and national insurance
Staff pensions
Hire of equipment
Rates and water
Insurance
Advertising
Light and heat
Telephone
Printing, postage and
stationery
Bad debt
Sundry expenses
Repairs and maintenance
Cleaning, recycling and hygiene
services
Sports equipment and kit expenses
Depreciation
Donations to affiliated sporting sections
Bank charges
Bank loan interest
Hire purchase interest
Support costs
Legal and professional fees
Consultancy
Fundraising costs
Accountancy
Independent examiner fees
Total resources expended
NET INCOME / (EXPENDITURE)		 2023
£
149,687
1,742
7,225
8,979
10,836
-
14,594
1,199
362
125
2,201
20,565
19,563
-
11,604
5,000
4,012
13,034
1,924
272,652

15,394
38,294
3,300
3,298
3,960
64,246
488,010
(46,380)		 2022
£
204,763
881
7,921
6,207
11,332
145
26,145
1,270
1,064
-
1,928
19,797
29,538
103
10,870
39,800
4,917
7,627
-

374,308

3,468
15,285
3,900
1,600
3,600
27,853
540,931

(73,170)

16