REGISTERED COMPANY NUMBER: 04270411 (England and Wales) REGISTERED CHARITY NUMBER: 1090528 REPORT OF THE TRUSTEESAND AUDITED FINANCIALSTATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 FOR HYNDBURN LEISURE {A COMPANY LIMITED BY GUARANTEEI *•• Hyndburn
HYND8URN LEISURE (A COMPANY LIMITED BY GLIARANTEEI CONTENTS OF THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 Pages Report of the Trustees Itolo Report of the Independent Auditors iito13 Statement of Financial Activities 14to15 Balance Sheet 16to17 Cash Flow statement 18tolg Notes to the Flnantlal Statements 20to33
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025 The trustees who are a150 director5 of the company for the purp05e5 of the Companie5 Act 2006p present their report with the financial statements of the charity for the year ended 31 March 2025. The f inancial statement5 comply with the Charltles Act 2011, the Companies Act 2006, the Memorandum and Artlcles of Assoclatlon, and Accountlng and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance wlth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective I" Januéry 20151. REFERENCE ANDADMINISTRATIVE DETAILS Reglstered Company number 042704111 England and Wales) Reglstered Charlty number 1090528 Registered office Accrington Town Hall Blaclcburn Road Accrington Lanca5hire BB5 ILA Trustees Ciaran Wells- Chair Irene Ryan Anne Ellwood Marie Demaine Peter Baron th Melissa Fisher (Appointed 27 May 20251 Loraine Cox Azad Brepotra IAppointed 26th September 20251 John Le8ver IAppointed 26, September 20251 Ruby Ali IAppointed 26, Septernber 20251 Liz Keane IAppointed 26, September 20251 Rlchard Swanney (Appointed 26th September 20251 Key Management Personnel Lyndsey Sims Joanne Mortlmer Linda Horsfield Tina McNiff Position Chief Executlve Head of Qperatlons & Strategic Projects ead of Health & Community Development Nead of Corporate Service5 Company Secretary Lyndsey Sims Page | I
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE} REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025 FOREWORD BY CHAIR Welcome to Hyndburn Leisure's Annual Report for the financlal year 2024125. This report provides an overview of Dur activltlès, highllghts key achl@vÈments, and sets out our priorities for the year ahead. It reflects not just what we have delivered, but the values, commitment, and community splrlt that ¢ontlnue to drlve our organlsation forward. In recent year5, Hyndburn Leisure has achieved a significant amount. We have developed new services to support healthier and more active lifestyles, delivered the Hyndburn Hub throu8h the pandemic, and successfully transitioned to subsidy- free leisure operations. Alon8side this, we have embarked on e major leisure transformation project with Hyndburn Borough Council and taken Steps to reduce our environmental impact all within the wider context of a global health cri51S and an evolving financial landscape. The last few years have presented considerable challenges. External pressures, including rlslng operational and energy costs, have meant that the charity has requlred a subsidy from Hyndburn Borough Council to contlnue operating all facilities and programmes. Our ambition for the next two years is clear.. to work steadily towards returning towards zero subsidy whi le ensuring that essential locel service5 remain acce55ible and sustainable. While we are proud of our progress, we know that it is the stories and people behind the achievements that truly matter, Storles of inclusion, engagement, and personal transformation. Small step5 that lead to healthier lifestyles, greater confidence, or renewed social connection. These storles shared by Indlvlduals and famllles across our borough are what Insplre ou r team every day. Hyndburn Is a vlbrant, dlverse place to live and work, but it is also a community facins real challenges. A5 one of the m05t deprived local authority in England, with low cultural engagement and almost one in three adults living in8Ctive lives, the need for accessible, community-led health and wellbeing services h85 never been greater. Our Trust has 8 vital role to pl8y n addressing these inequalitie5. As a charltable organisatlon, every penny we make Is reinvested back into our community. We do not have shareholders, nor do we operate as a private business. Instoad, we worl( closely with Hyndburn Borough Councll, a range of partners, and our local communities to deliver services that people want and need. We are proudly governed by a Board of Trustees local individuals who volunteer thelr time to guide and support the Trust In pursuit of Its mlssion. None of our achievement5 would be possible without the passion, dedication, and professionalism of our Staff. Our colleagues remain our greatest a55et, consistently golng above énd beyond to deliver high-quality services and warm, welcoming experiences for our customers. I would Ilke to extend my sincere thanks to each member of the team. As we reflect on the last year, we do so wlth pride In how far we have come and a renewed commitment to the journey ahead. With the support of our people, our partners, and our community, we are confident in our ability to navigate challenges, embrace opportunitie5, and continue making a meaningful and lastin8 impact on the health and we51being of Hyndburn'5 re5ident5, Chalr- Claran Wells Page 12
HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEEI REPORT OF THE TRL15TEES FOR THE YEAR ENDED 31ST MARCH 2025 STRUCTURE, GQVERNANCE AND MANAGEMENT vndburn Leisure 15 both a registered charity and a company limited by guarantee,. governed by its Articles of Association. The trustees delegate the day-to-day management to the Chlef Executive, Lyndsey Sims. The Trust adheres to the Nolan rules for Standards In Publlc Life. Whilst undertaking a revlew of governance, the Trustees have also revlewed the recommendation5 in "Good Governance, A Code for the Voluntary and Community Sectorf, and do not believe the Trust has any standards at variance with that code which require disclosure. The Trusgs ethical policy 15,. 'All delegation5 must be exercised in accordance with the law and having regard to any lawful di rection and/or guidance sub5equentl¥ issued by P8rliament and/or any other appropriate funding body. Furthermore, all H R and people issues will be handled fairly, cDnslStently and in accordance with relevant legislation, ACAS Codes of Practice and Chartered Institute of Personnel & Development ICIPDI advlce and best practlce." Directors and Trustees The directors of the limited compeny are its Tru5tee5 for the purpose of charity law and throughout this report are collectively referred to ès the Trustees. Recrultment and appolntment of new Trustees As set out in the Articles of Assoclatlon, the Chalr of the Trustees15 nomlnated by the members of the Board of Trusteos. The Board of Trustees comprises a minimurn of five Trustees and a maximum of fifteen. The Charlty aims to maintain a broad range of 5ki11s on the Board of Trustees to contribute to the success of the Charity. The composition of the Board of Trustees may include two trustees appointed by Hyndburn Borough Council and persons from time to tirlle employed by the charity may collectively appoint one person as a trustee. Trustees Induction and Tralnlng New Trustees undergo orientation sessions and receive literature and tralnlng to provide them wlth an understandlng Df their legal obligations under both charlty and company law, the content of the Articles of Association, the committee and declsion mal<ing process, the business plan and recent f inancial performance of the Charity. The Trust a150 seeks to identify appropriate training and update sessions for the Trustee's, Retirement of Trustees Appoi nted trustees shall stay in office until sueh ti me as they retire or are removed in accordance with the Articles. Board meetlngs The trustees meet every three months. There 15 also a Sub-committee which covers re50u rce management includin8 finance and corporate performance that meets every three months prior to each board meeting. Indemnity Insurance During the year the charity maintained indemnity insurance for the Trustees and senior staff to indemnlfy them agalnst the consoquences of unintentional neglect or default on their part. Page13
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI REPORT OF THE TRUSTEES FOR THE YEAR ENOED 31ST MARCH 2025 Related partl@s The Trust has a close relatlonshi p with Hyndburn Borough Council Icouncill for whom it manages the borough's sports leisure and Culture faclllties and two communlty centres. Councll facilities Include; Hyndburn Lelsure Centre, Mercer Hall Leisure Centre, The Cath Thorn Leisure Centre, Accrington Town Hall, Wilson's Playing Fields Athletics track, Bank Mill House and Oswaldtwistle West End. The facilities estate includes,. one swimming pool, two stste-of-the-art gyms, a soft play centre, two thermal 5Ulte5, three 5qua5h courts and an events and entertainment venue. There are two Council nominated trustee on the Board. In addition, the Chief Executive of the Trust has regular meetings with the Executive Director (Resources), who is the Trusf s liaison, who also attends Board meetings. Rlsk management The major risks to which the charity 15 exposed, a5 identified by the trustees, have been reviewed and sy5tem5 have been established to mitigate those ris. Pay and Remuneration l<ey management personnel of the charity comprise the trustees, the Chief Executive, the Head of Operations & Strategic Projects, Head of Corporate Service5 and the Head of Health & Community Development. The total employee benefits of the l<ey management personnel of the charity were £190, 13012024.. £159,9081, in additlon, employer pension contribu¢lons of £30,65712024: £23,006) were paid in respect of their services OBJECTIVES AND ACHIEVEMENTS Hyndburn Leisure IHLI is 8 company l imited by guarantee with charitable status, It was formed in 2002 to manage the borough's sport and leisure facilities and in 2005 also took on the Council's Arts & Entertainment facilities and community buildi ngs. HL'S objects as stated in its governing document are.. "the provision or assisting in the provision of facilities for recreation or other leisure time occupation for the general public in or in connection with the Borou8h of Hyndburn and its nei8hbourhood in the intere5t5 of social welfare by imprtsving onditions of life" In planning and delivering its action plan Trustees have considered Charity Commission guidance relating to public benefit, including tho setting of affordablo fees and charges 2nd ensurlng that programmeg and actlvities meet charitsble objectives. Pase14
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) REPORTOF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025 QBJECTIVES ANDACHIEVEMENTS Key area5 of activity The Trust seeks to provide accessible ond affordable sports, leisure, arts and cultural activitie5 to every Member of the Hyndburn community, irrespective of age, background Or abllltv. We further our charftable objective5 by operating in the following key areas: The Lelsure Activity Passport gcheme Offers slgnificantly reduced admlsslon charges to a wlde range of Indlvlduals who are on limited incomes, Includlng those who are unemployed, receiving Council Tax or Housing Benefit, those receiving Income Support or Job seekers Allowance, 5tudent5 and those receivin8 Worklng Tax Credit. The Leisure Activity Passport a150 provides reduced admission for key priority groups including Hyndburn residents over 60 years of age and the registered disabled (including FREE access tD carers). Our Swimming Programme offers reduced rate swimming for 4 to 16 year olds du rin8 school holiday period5, Senior citizens and children receive concessionary rates on tho purchase of tickets for our sport and lelsure activities and entertainment programme. In additlon, free use is offered to children participating in themed activltles and events, Use of ou r public halls and community facilitie5 is Made available to charitable and non-profit makin8 groups at conce5sionary rate5. We also offer free use for certain categories of users. Our Health & Wellbeing seDJlces support our communities to improve their health outcomes. The team work in the heart of our commun ities, workplaces and schools, u51ng their expert knowled8e and experlen¢e In supportlng positive l ifestyle changes. Free acce55 to leisure provision for armed forces personnel. Free access to leisure facilities and flnancial su pport for talented athletes, We want to help our community feel healthier, more active, and more connected. This takes many form5-from leèrning an essential life skill like swimming, to joining friends for an exercise class, or simply finding joy and confidence through movement. Alongside Accrington Town Hal l and our community centres, which together host a diverse programme of cultur81, social, and educational activlties, we are treating spaces where people can learn, celebrate, and build meani ngful connections. Through these facilities and programmes, we continue to support residents of all ages to lead healthler, happier, and more connected lives. Pagel 5
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE} REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025 ACHIEVEMENTS AND PERFORMANCE At Hyndburn Leisure, our mission is rooted in improvin8 the health, wellbeing, and connectedness of our community. Over the past year, we heve strengthened our impact acr055 leisure, culture, and health providing Services shaped by a deep understanding of the people we Serve. From swimming lessons and fitne55 programmes to creative activities, wellbeing initiatives, and community-led events, our offer continues to support healthier, happier, and more connected lives. Our servlces are Intentionally deslgned to feel welcoming, inclusive, 2nd empowering. Whether someone is learning a life sl<ill like swimming, building fitness and confidence, exploring creativlty, or taklng part In a wellbeinB programme, they are supported by skilled teams who place people at the centre of everythi ng they do. This people-first approach is backed bv our commitment to listenin8 and adaptin8; we shape oursenrices around real-llfe needs and asplrations, ensurlng relevance and 8cce55ibility. This year, we made significant progress in enhancing how we communicate and connect with our customer5. The launch of our new, user-friendly moblle 8pp has glven customers greater flexibility to manage bookings, memberships, end Inform2tlon on the go. Complementing this, our newly established contatt centre has transformed customer engagement achieving a 72% Increase In call response rates and enabling faster, more effective support. These developments have 8reatly improved customer experience and stren8thened our relationships with users. We also continued to embed sustainability across gur operztions. Through ener8y-efficient upgrades, waste reduction initiatives, and stronger partnerships with environmentally responsible suppliers, su5tainabilitV 15 now a core component of our decision-making processes. From procurement through to programme design, we are ensuring our impèct benefits both people 8nd the planet. Partnership working remains central to our abillty to drive meaningful change. Ovor the past year, we worked closely with lesUre trust5, community Drganisations, local authorities, funders, and public health partners to co-design Initiatives that address the root causes of poor health. Through projects such as Hyndburn Way and Levs Move Hyndburn, we strengthened comrllunity partner5hip5 and de5ivered programmes i nformed by local insight and lived experience. We are proud tD highlight a number of key achievements from 2024-2025.. Co-produced a new Active Environment Strategy for Hyndburn, includlng the development of a new Green Social Prescribing Service in partnership with the Primary Care Network and Hyndburn & Rossendale CVS. Shared learning from the Hyndburn Way project at national platforms, including King's Fund, New Local, and National Lottery conferences, Secured investment for Phase l of Mercer Hall redevelopment, through close collaboration with the Mercer Hall Repu rposing Group. To support Continuous improvement a¢r09s our org2nlgation, we continued to strengthen systems, processes, and digital capablllty. Thls Investment enabled Improved operational efficiency, redueed manual workload, and enhanced data analysi5 allowing u5 to make rnore informed decisions and tallor servlces more effectively. As a regult, we $2w an Il% increase In income from fee5 and charges and delivered E223,CIOO in in-year savi ngs and growth initiatives, demonstrating strong financial stewardship alon8side Strategic investment. Our impact is reflected in the strong engaEement across our facilities and programme5. In 2024-2025, we recorded 611,941 attendances, with total reach estimated at more than I million attendances when including family mernbers and supporters. This level of engagement highlights the essential role we play in supporting the health, wellbeing, and social connectedness of residents acr055 the borough. At the centre of all our achievements is our dedicated workforce. Our staff have once again demonstrated re5illence, compassion, and unwaverlng commitment 8ppOrtIng people to learn new skills, improve their health, enhance their mental wellboing, build friendshlps, and enjoy cre2tive experiences. Their professional ism and passion remain the driving force behind our positive Impact, Page | 6
HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEEI REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025 The Future A5 we look to the year ahead, our focus is firmly on build ing on the strong foundatlons of 2024-2025 ènd continuing to evolve our offer In l ine with community need5. Our ambitlon Is to ralse standards, deepen our Impact, and ensure our service5 remain acce55ible, relevanL and sustalnable for the future. A key priority Is to continue strengthening our partnerships. We will build on the collaborative work undertaken through Hyndburn Way, Levs Move Hyndburn, and other borough-wide initiative5 expandin8 relationships across health, community. and Cultural sectors. By working c105ely with public health collezgues, funders, stakeholders, and cornmunity leaders, we will develop more Integrated approaches to addressing health inequalities and en8bling active, connected lives. We will also conti nue to advance our environmental commltments. This includes progressing energy-efficiency upgrades, exploring renewable energy options, reducing waste further, and embedding envlronmentally responsible prattlces across all service areas. Sustainabil ity will continue to shape our decisions as we strive to minimise environmental impact while maximislng community benefit. Digltal transformation remains a key enabler of future success. Building on the progres5 made throu8h our new app and improved systems, we will eontinue to enhance digital tools to improve custDmer experience, streamline operations, 3nd 5tren8then data-drlven decision-making. This innovation will support us to deliver services more efficiently and responsivelv. Our workforce will remain 8 central focus. We will invest in staff development, wellbeln& and leadership capaclty ensuring teams feel empowered, supported, and equipped to deliver excellent experiences. By nurturing a culture of collaboratlon, accountabillty, and continuous learning, we will sUPPOrt our people to continue making a meaningful difference every day. Final ly, we wlll continue to embed a cornmunity-first model ensuring Dur programmes are shaped by lived experience, local insight, and the voice5 of those we serve. By listening, adapting, and responding, we will maintain services that truly reflect the needs and aspirations of our community, Together with our teams, partners, and communitie5 we are confident in our ability to continue dellverlng positive, lasting impact for the people of Hyndburn, Pa8e17
HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 315T MARCH 2025 GOING CONCERN The trustees have considered their obli8ations to prepare these financial statements on an appropriate basis, having specific re88rd to the charity's net liability PQ51tion within unrestricted funds a5 at 31 March 2025. The trustees have reviewed budgets and cash f low forecasts, Efflciency savings are being delivered and new external grant income streams have been attracted by the management team. The trustees have consldered the foreca5t5, grant funding secured and proposed savings, znd conslder them to be reasonable. The trustees reco8nise the support provided by Hyndburn BC, and are aware of the letter of support recelved from the council. After making enquiries end considering the issues described above, the trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. For these reasons they continue to adopt the going concern basis of 8c¢ounting In preparing these financial statements. FINANCIAL REVIEW The f inancial statement5 have been prepared on a Boing concern basis, which presumes that the trust will receive no financial support from the Council by mean5 of a mana8ernent fee. Total income for the year 2024125 was £5,851,11412023124'. £5,475,857) an Increase of £375,25716.85/01, The increase in income is the result of improved performance at the leisure sites and additional support from the Council. Total expenditure for-the year 2024125 was £5,905,15412023124'. £6,109,489). a decrease of £204,33513.34%1. This was a result of the savinES made on the premises costs. The trust had an overall funds Surplus as at 31 March 2025 of £796,87512024,. deficit of £375,085). This was after the positive change in the pension Scheme which experienced a £1,352,000 increase and was a balance Sheet a55et of £3,306.00012024'. EI,954,0001 at the year end. To supplement the provision of high quality leisure facilities the charity Is committed to developing a high quality serwice, The trust is working with partner organisations to Introduce cost effective, fit for purpose, peer quallty assurznce processes. Reserves pollcy It is the aim of the Trustees to build up unrestricted reserves to cover a rea50nable level of future management, administration and support cost5. At presont the Trust has insufficient reserves to ensure that it can deal with major unexpeeted adverse developments wlthout direct support from Hyndburn Borough Council. Both Trustees and Executives mai ntain a regular dialoEue with the council to ensure that, should malor unexpected adverse developrnent5 arise, any difficulties that requlre attention are addressed in a mutually agreeable manner. Trustees are confident that the charity has established diversity of operations, sufficient versatility and control of expendltures of such nature that it is able to adapt to changing circumstances that will arise from ti me-to-time under normal business condltions. Trustees have agreed the reserves as follows- Hold a minimum cash balance in the bank account of at least £50,000. Long term aim to increase the mlnimum cash balance In the bank account to £200,000. The Trustee5 have considered the current adverse economic climate when reviewi ng their re5erve5 policv. Page 18
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025 FINANCIAL REVIEW ICONTINUEDI Investment Powers and Pollcy Under the Memorandum and Articles of Assoclatlon, the Trust has the power to Invost in any way the Trustee5 wish. The Trust having regard to the liquidity requirements of operating leisure facilities, and to the reseraes policyi operate a policy of keeping surplus funds available In Interest bearing bank accounts. Principal risks and uncertainties The Trust is extremely reliant on income from fees & charges, therefore the charity 15 open to a number of risks which can negatively impact upon the sustaln3bility of the organisation i ncluding.. Uncgntrollable bud8et pressures placed upon the Trust w111 reduce the Trusts capabllity to plan and manage the busines5 effectively The Trust is subject to elastieity in Its demand Income and o level of uncontrollable costs Delay in progressing the Leisure Transformation will defer income opportunities Changes In assumptions in relation to the deflned penslon scheme liabilities Volatility within the investments held within the defined benefit pension scheme Uncontrollable Increases in the wholesale price of g3s and electric The Ul< cost of livin8 crisi5 currently being experienced. Page | 9
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE} REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2025 TRUSTEES. RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS The trustees (who are also directors of Hyndburn Leisure for the purposes of company lawl are responsible for preparin8 the trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accountin6 Standards Iunited Kingdom Generally Accepted Accounting Practice), Company law requires the trustees to prepare financial statements for each financi81 year which give a true and fair view of the state 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 that period. In preparing these flnancial statements. the trustees are required to: select suitable accounting pollcles and then apply them consistently, observe the methods and principles in the CharStles SORP, make judgements and estimates that are reasonable and prudent, State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and prepare the financial statements Dn a going concern ba515 unle55 It is inappropriate to assume that the charitable company will continue in operation. The tru5tee5 are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statement5 comply with the Companles Act 2006. They are also responsible for safeguardlng the assets of the charitable company and hence for taki ng reasonable steps for the prevention and detectlon of fraud and other irregularities. Statement of Disclosure to Auditors In so far as the trustees are aware, there 15 no relevant information of whlch the charitable company's auditor is unaware, and the trustees have taken all steps that they Ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that informatlon. Auditors The auditors, Ainsworths Limited, will be proposed for re-appointment at the forthcoming Annual Gener81 Meeting. This report has been prepared in accorda nce with the special provisions of Part 15 of the Companies Aet 2006 relating to small ¢ompanie5. Approval th This report was approved by the trustees on 11 December 2025 and signed on it5 behalf by C12ran Wells Tru5teelChair of the Board Page | 10
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE} Oplnlon We have audited the financial statements of Hyndburn Lelsure Ithe 'charity'l for the year ended 31" March 2025 which comprise the Statement of Financial Activlties, Balance Sheet, Cash Flow Statement and Notes to the Financial Statements, including a summary of signlflcant accounting Policies. The financlal reporting framework that has been applied in their preparation Is applicable law and United Kingdom A¢¢ountin8 Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applieable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practlcel In Dur Opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31, March 2025 and of its incomln8 resources and applicètion of resources, including its income ond expenditure, for the year then ended,. have been properly prepared In accordance with United Klngdom Generally Accepted Accountin8 Practice,. and have been prepared in accordance wlth the requirement5 of the Companies Act 2006, Basis for oplnlon We conducted our audit in accordance with Internation81 Standards on Auditing IUKI IISAg IU Kll and applicable law. Our responsibilities under those Standards are further described In the Auditors, responsibllities for the audit of the financial statement5 Section of our report. We are independent of the charity in accordance wlth the ethical requirements that are relevant to our audit of the financial statements in the U K, Includlng the FRC'S Ethical Standard, and we have fulfilled our Other ethical responsibilities in 2ccordancÈ with these requirements. We believe that the audit evidence we have obtained is sufficient and approprlate to provide a basis for our opinion, Conclusion relating to golng con¢ern In audltlng the f inancial statements, we have con¢luded that the directors. use of the going concern basls accounting in the preparation of the financi815tatements is appropriate. O(Jr responsi bllltles and the responsibilities of the directors with respect to going concern are descri bed in the relevant sectlons of this report. We draw attentlon to the Accounting Policles, which hlghlight the charity's reliance on the sUPPOrt f rom Hyndburn Borough Council. The board members have concluded that the charity remains a going concern, however these events mean a material uncertalnty exlsts that may cast doubt on the charitvs ability to continue as a going concern. Our opinion is not modifled Sn respect of this matter. Other Information The trustees are responsible for the other information. The other information comprises the Information in the Report of the Trustees, but does not include the flnanci21 statemEnt5 and our Report of the Auditor5 thereon. Our opinion on the financial statements doe5 not cover the other information and we do not express any form of assurance concl usion thereon. In connection with our audit of the financial statement5, our responsibility Is to resd the other information and, in dolng so, consider whether the other information is materlally inconsistent with the financlal statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in thi5 regard. Oplnlon on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken i n the course of the audit.. the information given in the Report of the TrLJStees for the financial year for which the financial statements are prepared is conslstent with the financial statements,. and the Report of the Trustees has been prepad in accordance with applicable legal requirements. Page | 11
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI Matters on which we are required to report by exception In the light of the knowledge understanding of the company and its environment obtained in the course of the audit, we have not Identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companles Act 2006 requires us to report to you if, in our opinion: adequate accountin8 records have not been kept, or returns adequate for our audlt have nat been received from branches not vlslted by us,, or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees, remuneration Specified by law are not made,. or we have not received all the information and explanations we requi re for our audit; or the trustees were not entitled to prepare the fTnanclal statements in accordanee with the small companies regime and tal(e advantage of the small companies, exemption from the requ irement to prÈpare a Strateg1¢ Report or in preparing the Report of the Trustees. Responsibililies of trustees As explained more fully in the Statement of Tru5tees' Re5pon5ibilitie5 set out on page ten, the trustee5 (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being s8tSsfied that they glve a true and fai r view, and for such intern81 control as the trustees determlne necessary to enable the preparation of financial statements that are freo from materlal mlsstaternent, whether due to fraud or error. In preparing the financlal statements. the trustees are responsible for a55e55ing the charity's abillty to continue as a going concern, disclosing, as applicable, matters related to goin8 Concern and using the going concern basis of accountin8 unle55 the trustee5 either intend to liquidate the charity or to ce35e operations, or have no realistic alternative but to do so. Our rÈsponslbllltlos for the audit of the financial statements Our oblectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materlal misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but15 not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements, Identi In 2nd assessin otenti21 risl<s related to irre ularlties In identifying and assessing risks of material misstatement in respect of irregularities, we considered tho followlng: the nature of the industry and sector, control envlronment and business performance; result5 r)f our enquiries of management about their own identification and assessment of the rlsl<s of irregularities,. any matter5 we identified havins made enqu iries of mana8ement about their policie5 and procedures relating to,, identifying, evaluating and complying with laws and regulations and whether they were aware of any instance5 of noncompliance,. detecting and responding to the risks of fraud and whether they have knowledge Df any actual, suspected or alleged fraud,. the internal controls established to rllitigate risks of fraud or non-compliance with laws and re8ulations,' the matters discussed among the audit engagement team regardi ng how and where fraud might occur in the f inancial statements and any potentlal Indlcators of fraud. As a result of these procedures, we considered the tspportunlties and Incentlves that mav exist wlthin the organisation for f r8ud. In common with all audits under ISAS IUKI, we are also required to perform specific procedure5 to respond to the risk of malla8ement override. Page | 12
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) We also obtalnèd an understandlng of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amount5 and disc105ures In the flnanclal statements. The key laws and regulatlons we consldered In thls context Included the UK Companies Act and local tax legislation, In addition. we considered provi51ons of other law5 and regulation5 that do not have a direct effert on the financial statements, but compllance wlth whlch may be fundamèntal to the company's ability to operate. Audlt res onse to risks Identified As a result of performing the above our procedu res to respond to the risks identified Included the following.. reviewing the financial statements disclosure and testing to supportinE documentation to assess compliance with provisions of relevant laws and regulations described as havin£ a direct effect on the financlal statements. enquiring of management about actual and potential litigation and claims,. performlng analytical procedures to identify any unusual or unexpected relationship5 that may indicate rlsk of material misstatement due to fraud; in addressing the risk of fraud through management override of controls, testing the approprlateness of journal entrie5 and other adjustments. a55e5sing whether the judgements made in making accounting estimates are indicative of a potential bia5,' and evaluating the business rationale of any slgnlflcant transactlons that are unusual or outside the normal course of business. We a150 communicated relevant identified law5 and regu lations and potential fraud risks to all engagement team members and remained alert to any indicatiDns of fraud or noncompliance with laws and regulations throughout the audlt. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Cou ncil'5 web51te at www.frc.org.uk/auditorsresponsibilities, Thls description forms part of our Report of the Auditors. Use of our report This report is made solely to the charity's members, as a bodyi in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our aLtdlt work has been undertaken 50 that we might state to the charitable company's trustee5 those matters we are required to state to them in a Report of the Auditors and for no other pu rpose. To the fullest extent permitted by law, we do not accept or assume responslbllity to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Mark 5unter (Senior Statutory Auditor) for and on behalf of Ainsworths Limited Chartered Accountants and Statutory Auditors Charter House Stansfield street Nelson Lancashire BB9 9XY Date: 18, December 2025 Page | 13
HYNDBURN IE15URE (A COMPANY LIMITED BY GUARANTEE? STATEMENT OF FINANCIAL AcfiviTIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2025 31.3.25 Total funds 31.3.24 Total Funds Unrestrlcted funds Re5trlcted funds Nate5 INCOME Income from donatlons Donations 270,325 270,325 274,492 Income from charitable activities Operatlon of sports facilities Operation of town hall and slmilar buildlngs 3,457,610 219,968 1,799,743 5,257,353 219.968 4,899,563 218,595 Income from other activltles Commercial operations 99,772 99,772 80,104 Investments 3,696 3,696 3,103 Total Income 4,051.371 1.799,743 5,851,114 5,475,857 EXPENDITURE Charitable actlvities Operation of sports facilities Operation of town hall and similar buildi ngs 3,895,853 239,732 1,895,569 5,791A22 239,732 5,788,448 389,041 Pension operating charge Net interest on pension scheme liability 124,000) 1102,000) 124,0001 1102,0001 11,0001 167,0001 18 Total expendlture 4,009,585 1,895,569 5,905,154 6,109,489 NET INCOMEIIEXPENDITUREI 41,786 195,8261 154,0401 1633,6321 Transfers between funds 41,786 195,826 {54,0401 1633,6321 Other recognlsed galns and losses Penslon scheme artuarlal gain/llossI 18 1,226,000 1,226,000 639,000 NET MOVEMENT IN FUNDS 1,267,786 {95,8261 1,171,960 5,368 Page114
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIALACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31ST MARCH 2025 31.3.25 Totsl funds 31.3.24 Total Fund5 Unrestricted funds Restrirted funds Notes NET MOVEMENT IN FUNDS 1,267,786 195,8261 1,171,960 5,368 RECONCILIATION OF FUNDS Total funds brought forward 1706,2391 331,154 1375,0851 1380,4531 TOTAL FUNDS CARRIED FORWARD 561,547 235,328 796,875 1375,0851 The statement of financial activities includes all gains and losses recognlsed in the year, All income and expenditure derive f rom continuing activities. Page | 15
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI BALANCE SHEEr AT 31ST MARCH 2025 31.3.25 31.3.24 Notes FIXED ASSETS Tangible assets 439,960 472,618 CURRENT ASSETS Stock Debtor5 Cash at bank and in hand io li 14,702 193,346 138.007 10,189 241,152 581,711 346,055 833,052 CURRENT LIABILITIES Amounts falling d ue within one year 12 12,204,481) 12,475,Q401 NET CU RRENT LIABILITIES 11,858,426) 11,641,9881 TOTAL ASSETS LESS CURRENT LIABILITIES 11,418,466) 11,169,370) LONG TERM LIABILITIES Amounts fallin8 due after more than one year 13 11,090,659] 11,159,715) NET LIABILITIES EXCLUDING PENSION DEFICIT 12,509,125) 12,329,085) PENSION SCHEME SURPLUS/{DEFICIT) 18 3,306,000 1,954,000 NET LIABILITIES INCLUDING PENSION DEFICIT 796,875 1375,0851 FUNDS Unrestricted funds Restricted funds Pension scheme surpluslldeficitl 16 17 18 12,744A53 235,328 3,306,000 12,660,239) 331, 154 1,954,000 TOTAL FUNDS 796,875 1375,0851 Page | 16
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI 8ALANCE SHEET FOR THE YEAR ENDED 31ST MARCH 2025 The trustees have prepared the accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charitie5 Act 2011. These financial statement5 have been prepared in 8¢cordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable compan ies and with the Financial Reporting Standard 102 leffective I, January 20151. The financial statements were approved by the Board of Trustees on Il, December 2025 and were signed on its behalf by: Ciaran Wells Trustee/Chair of the Board Page | 17
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2025 31.3.25 31.3.24 Notes Cash flows from charitable activitles Cash generated from artivltles (291,1551 (291,1551 332,632 Net cash from charitable activities 332,632 Cash flows from investing aCtitIeS Interest Income Interest paid Sale proceeds Purchase of tangible fixed assets 3,696 (32,3011 3,103 134,3341 119,4911 Net cash from investing activities 148,0961 131,2311 Cash flows from financing artlvitles New borrowings in the yesr Capital repayment5 in the year 1104,4531 163,6981 Net cash from financing activities (104,45 63,6981 Incroasolldecreaso) In cash and cash equivalents 1443,7041 237,703 Cash and cash equlvalents at the beginning of the year 581,711 344,008 Cash and cash equlvalents at the end of the year 138,007 581,711 Page | 18
HYNDBURN LEISURE (A COMPANY LIMITED BYGUARANTEE) CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2025 RECONCILIATION OF DEFICITTO CASH GENERATED FROM ACTIVITIES 31.3,25 21.3.24 Defltit for the year Ibefore 8a1 n5 and losses on the pension scheme) Interest receivable Interest payable Depreciation charges Penslon scheme operatlng and Interest costs 154,0401 13,6961 32,301 52,149 1126,0001 1633,6321 13,1031 34,334 88,611 168,0001 199,286) 14,5131 47,806 1235,1621 {291,155) 1581,7901 Decreasellincreasel in stocks Decreasellincreasel in trade and other debtors IDecreasel/increase in trade and other creditors Cash generated from charltable artlvltles 148,191 766,231 332,632 CASH AND CASH EQUIVALENTS The amounts disclosed on the Cash Flow Statement In respect of cash and cash equivalents are i n respect of these Balance Sheet amounts: Year ended 31" March 2025 31.3,25 1.4.24 Cash and cash equivalents 138,007 581,711 Year ended 31, March 2024 31.3,24 1.4.23 Cash and cash equivalents 581,711 344,008 Page | 19
HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE} NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 ACCOUNTING POLICIES Company information vndburn Leisure Is a charltable company, Ilmited by guarantee, re81Stered in Ensland and Wales, The ¢hariVs registered number and registered office address can be found on the Company Information pa8e. Each member's personal liability is limited to an amount not exceeding £1, Basls of preparlng thÈ flnanclal statements The financial statements have been prepared on s going concern basis which assumes that the company wlll be able to meet Its liabllities as they fall due. The related party, Hyndburn Borough Councll, have confirmed their commitment to financial support of the charity, including continued 5UPPOrt of the charity In Its cash flow requirements within agreed term5 and levels. The trustees have considered this support, along with the cashflow foreca5t5 and budgets, Accordinglyi the trustees have concluded that it 15 appropriate for these financial statement5 to be prepared on the goin8 concern b8SiS. Accountlng convention The flnancial statements have been prepared under the hlstorlcal cost conventlon. and in accordance wlth Accountin8 and Reporting by Charities: Statement of Recommended Prattice applicable to charities preparing their accounts in accordance wlth the Financial Reporting Standard applicable in the U K and Repu blic of Ireland IFRS 1021 leffective I" January 20151 (Charities SORP IFRS10211, the Financial Repcrtins Standard applicable in the UK and Republic of Ireland IFRS 1021, the Companies Act 2006 and the Charities Act 2011. Hyndburn Leisure meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historlcal cost or transaction value unless otherwlse stated In the relovant accounting policy note. Incoming resources All incoming resources are included on the Statement of Fi nancial Attivitie5 when the charity is legally entitled to the income and the amount can be quantified wlth reasonable accuracy, In¢ome Is the amount derived from ordi nary activities, and stated after trade discounts, other sales taxes and net of VAT. Grants recelvable are accounted for when due. Income is dÉferred when it is received In advance of the period to which it relates. Investment incorne 15 recognised on a receivable ba515. Resources expended Expenditure is accounted for on an accruals basis and has been classified under heading5 that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resource5. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activitie5 and SeiCe5 for its beneficiarie5. It includes both c05t5 that can be allocated directly to Such activities and those costs of an indirect nature necessary to support them, Governance costs include those costs associated with meeting thè constitutional and statutory requirements of the charity and include audit fees and costs linked to the strateEic management and administratlon of the charity. All support Costs are allocated between the artivity expenditure categorie5 on a basis designed to reflett the use of the resource, Support Costs are apportioned on an appropriate basis e.g. time spent, floor area5, or estimated ussge, Page | 20
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 ACCOUNTING POLICIE5 (CONTINUEDI Tanglble fixed assets and depreciation Depretiation is provlded at the following annual rates in order to write off each a55et over its estimated useful Ilfe or, If held under a finance lease, over the lease term, whichever is the shorter. Freehold property Improvement5 to property 2% Straight l ine IO% Straight line Fully depreciated 10-25% Strai8ht line 15% StraiBht line Fixtures ènd equipment Plantand machinery Fixed assets are stated at cost less accumulated depreciation. Assets are also subject to an annual review to identify any Indicators of impairment. Taxatlon The charity is exempt frorn corporation tax on it5 charitable activltles, Fund accountlng Unrestricted funds tan be used in accordance with the eharitable objectives at the discretion of the trustees. Restrlcted funds can only be used for particular restricted purposes withln the objects of the charity. Restrictions arise when specified by the donor or when funds are ralsed for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financlal statements. Pension costs and other post-retirement benefits The charity particlpates in the Lancashire County Pension Fund defined benefit scheme. Although the scheme 15 a multi-employer scheme it is possible to allocate a share of the assets and liabilities to the charity and hence contributions are accounted for as a defined beneflt scheme In accordance with FRS 102, The charity a150 Participates in the NHS Pension Fund defined benefit scheme. The scheme is not designed to be run in a way that would enable the charity to identify its share of the underlying s¢heme assets and liabilities, The pension contributions made du ring the financial period are therefore treated as if the scheme is a defined contribution scheme and recognised i n the Statement of Financial Activitie5. Stock Stock is valued at the lower of cost and net realisable value, after making due allowances for slow and obsolete item5. Leaslng Rentals payable under operating leases are charged against income on a straight line basis over the lease term. Debtors and Creditors Short term debtors and credltors are measured at transaction price, less any i mpairment. Significant judgements and estimates Prep2ration of the financial statements requ ires management to make significant judgements and estimates. The major item In the fin2nclal st2tements where these judgements and estimates must be made 15 in relation to the pension scheme. Management consult with experts to provide appropriate assumptions on which to calculate projected funding position for the scheme. Pase | 21
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 DONATIONS 31.3.25 31.3.24 Gifts in kind- use of bulldings Corporate donations 270,325 270,325 4,167 270,325 274,492 In 2024, of the total donation income, £270,325 was unrestricted funds. CHARITABLE A1VITIEs 31.3.25 31.3.24 Unrestricted Income.. Operational income from Hyndburn Borough Council Income from the operation of leisure and art5 facilities i.ot)o,000 2.677,578 490,000 2,583,419 3,677,578 3,073,419 Restricted income: Ar¢hite¢tural Heritage Fund Arts Council England Business Health Matters Cardiac Grant Change Grow Live Communlty Ownership Fund Culture and Heritage Fund Clayton Community Centre Feasibility Grant Holiday Activlty Fund Household Support Fund Hyndburn Way Innovate UK Invest to Save King'5 Coronation Together an Active Future- Sport England Warm Space Grant Weight Management/PAStA 10,000 32,500 32,500 49,060 16.500 3,000 10,000 219,041 17,053 244,089 1.500 10,000 405,750 832,930 168,728 2,600 8,OOQ 4,300 179,704 500 102,126 419,372 697,462 182,354 178,332 1,000 16,081 1,799,743 7,190,570 2,044,739 5,118,158 Page | 22
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 OTHER AcfiviTIES- COMMERCIAL OPERATIONS 31,3,25 31.3.24 Other com mercial income 99,772 80,104 99,772 80,104 In 2024. of the total other activities income, £14,414 was un restricted funds. EXPENDITURE ON CHARITABLE ACTIVITIES- 2025 Sports facilities Town hall & buildings Total 2025 Unrestrlcted expenses: Costs dlrectly allocated to activlties: Salaries, N l and pensions Other staff costs Premises costs Promotions and marketing Dopreci2tion Gifts in kind- use of bu i5dings Other costs 1,729,121 11,140 729,334 24,520 34,795 270,325 516,534 3,315,769 94.692 517 78,732 1,809,973 11,657 808,066 24,520 36,816 270,325 541,947 2,021 25,413 201,375 3,517,144 Support and governance costs allocated: Support Costs Inote 61 Governance costs (note 61 522,076 58,008 580,084 34,521 3,836 38,357 556,597 61,844 618A42 3A95,853 239,732 4,135,586 Restricted expenses Inote 17}: Salaries, Nl and pensions Other staff costs Promotions and marketing Depreciation Project del ivery costs Other costs 449,996 356 708 8.320 1,428,355 7,834 1,895,569 449,996 356 708 8,320 1,428,355 7.834 1,895.569 5,791822 239,732 6,031,154 Page | 23
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 315T MARCH 2025 EXPENDITURE ON CHARITABLE ACTIVITIES {CONTINUED)_ 2024 Sports facilities Town hall & buildin85 Total 2024 Unrestrlcted expenses: Costs dlr@ctly 811ocated to actlvltles.. Salaries, Nl and pensions Other staff costs Premises costs Promotions and marketing Depreciation Gifts in kind- use of buildings Other costs 1,576,344 8,271 947,698 3,028 77,713 270,325 352,079 3,235,458 150.998 1,368 109,645 454 2,406 1,727,342 9,639 1,057,343 3,482 80,119 270,325 415,233 63,154 328,025 3,563,483 Support and governance costs allocated: Support costs (note 61 Governance costs (note 61 586,005 27,315 613,320 58,299 2,717 644,304 30,032 61,016 674,336 3,848,778 389,041 4,237,819 Restricted expense5: Salarie5, Nl and pensions Other staff Costs Promotions and marl(eting Depreciation Project delivery costs Other costs 501,918 72 6,886 8,492 1,412,198 10,104 1,939,670 501,918 72 6,886 8.492 1,412,198 10,104 1,939,670 5,788,448 389,041 6,177,489 GOVERNANCE AND SUPPORT COSTS The Cha rity Inltlally identifles the cost of its support functions. It then identlfle5 those costs which relate to the governance function. Having identified its governance costs, the remaining 5UPPOrt cost5 together with the governance costs are apportioned between the two charitable activities (see note 51 in the year. The costs are apportioned on the following basis.. Salaries, N l and pensions- Allocated on a tlme basls All other costs- Pro rata to direct Inon-salary relatedl costs Page | 24
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL5TATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 NET MOVEMENT IN FUNDS Net resources are stated after charging: 31,3.25 31.3.24 Auditors, remuneratlon.. Audit fee Auditors, remuneration: Non-audit services Operatin8 lease rentals- property Depreciation 8,600 1,898 270,325 52,149 8,200 3,997 270,325 88,611 STAFF COSTS 31.3.25 31.3.24 Wages and galaries Social security costs Qther pension costs 2,221,089 137.972 262,140 2,117,449 125,386 258,155 2,621,201 2,500,990 The average monthly number of employee5 duri ng the year was 85 fol lows,, 31.3.25 31.3.24 Employees 160 161 Due to reliance on seasonal workers, class instructors and casual bank staff, the number Df employees can vary materially durin8 the course of any one year. The number of employees whose total employee benefits excluding pension contributions earning over £60,000, classified within bands of £10,000 is as follows, 31.3.25 31.3.24 £70,000-£79.999 Key man3gement personnel of the charity comprise the trustees, the Chief Executive, the Head of Operations & strategic Projects, Head of Corporate SeNices and the Head of Health & Community Development. The total employee benefits of the key management personnèl of the eharity were £190,13012024'. £159,9Q81, In add ition employer pension contributions of £30,65712024'. £25,705) were paid in respect of their services. Trustees, Remuneration No tru5tee5 received rernuneration for their roles as trustees for the year ended 31 March 2025 nor for the yearended 31"March 2024. Trustoos, Expenses There were no trustees, expenses paid for the year ended 31" March 2025 nor for the year ended 31 March 2024. Page | 25
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 TANGIBLE FIXED ASSETS Freehold Improvements Properly to property Facllltles Flxtures & Equipment Tota15 COST At I" April 2024 Additions 392,871 435,602 15,936 371,163 1,304,268 3,555 2,503,904 19,491 At 31" March 2025 392,871 451,538 371,163 1,307,823 2,523,395 DEPRECIATION At I. April 2024 Charge for year 13,870 7,857 373,605 19,025 371,163 1,272,648 25,267 2,031,286 52,149 At 31" March 2025 21,727 392.630 371,163 1,297,915 2,083,435 NET BOOK VALUE At31"March 2025 371,144 58,908 9,908 439,960 At 3151 March 2024 379,001 61,997 31,620 472,618 io. STOCK 31.3.25 31.3.24 Bar sto¢l<s Pool chemicals Vendi ng and food 6,637 3,076 4,989 6,771 1,085 2,333 14,702 10,189 ii. DEBTORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.25 31.3.24 Trade debtors Prepayments and accrued income 51,206 133,839 8,301 72,776 168,376 VAT 193,346 241,152 Debtors Include £nil in respect of grant5 receivable at the year end. All amounts shown under debtors fall due for payment withi n one year. Page | 26
HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.25 31,3.24 Trade creditors Taxation and social security Amounts owed to Hyndburn Borough Council Accruals and deferred Income 116,197 45,404 1,686,355 356,525 131,284 106,299 1,780,704 456,753 2,204,481 2,475,040 13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 31.3.Z5 31.3.24 Amounts owed to Hyndburn Borough Council 1,090,659 1,159,715 1,090,659 1,159,71S Included in the above amount owed to Hyndburn Borough Council is an amount total ling £806,253 which is rep2yable In more than 5 years and by Instalments. Hyndburn Borough Council have a fixed and floating charge over all assets of the charity in relation to all balances owed to them. OPERATING LEASE COMMITMENrs The fol lowing operatin8 lease payment5 are committed to be paid within one year.. 31.3.25 31,3.24 Explry date: Within l year Between one and five year5 15. ANALYSIS OF NET LIABILITIES BETWEEN FUNDS 31.3.25 Total funds 31.3,24 Total Funds Unrestricted funds Restricted funds Fixed assets Current as5et5 Current liabil ities Long term liabilities Pension scheme surplus 285,995 178,198 12,204,481) 11,090,659) 3,306,000 153,965 81,363 439,960 472,618 259,561 833,052 (z,204,4811 12,475,040) 11,090,659) 11,159,715) 3,306,000 1,954,000 475,053 235,328 710,381 1375,0851 Page | 27
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI NOTES TOTHE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 16. UNRESTRICTED FUNDS Pension (deflcltllsurplus Goneral funds Deslgnated funds Total funds Balance at i$t April 2024 Net income I lexper)diturÈl Tr£nsfers between funds 1,954,000 1,352,000 12,661,731) 1169,2161 1,492 11,4921 1706,2391 1.181,292 3306,000 12,830,947) 475,053 General fund The general fund consists of the total of f ree reserves available to spend on the objectives of the charity. As these are negative, the trustee5 have considered this when reviewi ng the golng concern status of the eharlty and are satisfied that the charity remains a going concern particularly in light of the on-golng support provided by Hyndburn Borough Councll. 17. RESTRICTED FUNDS At I" Aprll 2024 Incoming resources Outgoing resources Fund transfer5 At 31, March 2025 Project fund Architectural Heritage Fund Arts Council England IACEI Cardiac Grant Community Ownership Fund Culture and Herlt3ge Fund Clayton Community Centre Events at Accrlngton Town Hall Feasibility grant Fixed assets oliday Activity Fund Iqousehold Support Fund Hyndburn Way Fund Invest to save Together an Active Fund Warm Space Weight ManagementlPA5TA 10,000 32,500 17,053 iio,oooi 165,0001 117,0531 IID,0001 1287.4541 11,5001 12,2821 iio,0001 18,3201 1394,9021 1697,4621 1177,1671 18,0001 178,332 1178,3321 1,000 11,5001 16,081 {26,5971 1,799,743 11,895,569) 32,500 10,000 43,365 244.089 1,500 2,282 10,000 162,285 18,315 153,965 42,785 419,372 697,462 182.354 33,391 8,000 38,578 500 10,516 331,154 235,328 Page | 28
HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 17. RESTRICTED FUNDS ICONTINUEDI Cardiac Gront The cardlac grant supports 17 hour5 to provide a 12 week cardiac rehab referral pro8ramme, that provides low level classes and education sessions, supported by the Health Activator team, Communlty Ownershlp Fund A fund to support community groups take ownerghi p of assets which are st risk of being lost to the community, Events ot Accrington Town Hall Fundin8 from the council to contribute to events run from Accrington Town H811. FixedA55et Fund Restricted element of grants received for the purchase of fixed assets. Heolthier Communities This programme was set up and funded to empower voluntary and community sector organisations to work tC8ether with the local health and care settor to boost the health and wellbeing of their communitie5, HolidayActive FL4nd The purpose of this funding was to make free place5 at holiday clubs available in the Summer, Spring, znd Winter hol iday period5 to children in their local authority area in receipt of benefits-related free school meals. Household Support Fun The Household Support Fund, provlded by the Department for Work and Pensions, was introduced In October 2021 last year to support vulnerable households with essentials like food, ener8y and water bills and household iterns. Hyndburn Way Hyndburn Leisure has been awarded £45Ok from the National Lottery to lead a partnership project to improve local people's health and reduce health inequalities in the borough over the next three years. The not-for-profit leisure trust is Ljsing the f unds to launch The Hyndburn Way., a project dedicated to improving IDcal people, health and reducing health inequalities. Together an Actffve Fund Funding hés been received from Sport Englend to identify innovative solutions to make it easier for people in specif ic area5 to access sport and physical attivity. Weight Management Wo are seeking to provide an accessible tier 2 adult weight management service, which supports obese adults to lose weight and Improves knowledge and skills in maintainins healthy weight, as part of wider programmes which promote healthy weight and physical activity in localities. This will form an integral part of the NH5 Health Checks care pathway and wider obesity pathways, Pase | 29
HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE) NOTES TOTHE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 18. PENSION ARRANGEMENTS Net Penslon surplus: 31,3.25 31.3.24 Lancashire County Penslon Scheme 3,306,000 1,954,000 3,306POO 1,954,000 Lancashire County Penslon Fund The charity participates In the Lancashire County Penslon Fund whlch Is a funded defined benefit scheme providing benefits based on flnal remuneratlon. The a55ets of the scheme are held separately from those of the charlty. Whllst this Is a multi-employer scheme, the actuary 15 able to segregate the assets and liabilities relating to the charity. During the year, normal employer pension contributions of £262,14012024', £258,155) were paid to the scheme. The following calculations as at 31, March 2025 have been provided by the actuarles. Mercer Lirnlted, using the projected unit actuarial costs method. Prlnclpal actuarial assumptions used by the actuary were as follows.. 31.3.25 2.60 4.10 2.70 5.90 22.30 31.3.24 2,60 4,10 2.70 4.90 22.40 Rate of CPI Inflation Rate of increase in salaries Rate of increase in pen510llS Discount rate Life expectancy of a male future pensloner aged 65 In 20 years, time fe expectancy of a female future pensloner aged 65 In 20 years, time Life expectancy of a male current pensioner aged 65 Life expectancy of a female current pensioner a8ed 65 25.40 25,30 21.10 23.60 21,10 23,50 The amounts recogni5ed in the balance sheet are as follows.. 31.3.2S 31.2.24 Present value of funded Dbligations Falr value of plan agsets 16.718,000) 10,024,000 17,626,000) 9,580,000 Net pension surplus 3.306,000 1,954,000 Page | 30
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 18. PENSION ARRANGEMENTS {CONTINUEDI Analysis of amounts charged to the Statement of Financial Actlvitles: 31.3.25 31,3,24 Operating charge Current service c05t Administration expenses 226,000 10,000 249,000 10,000 Total operatin8 charge 236.000 259,000 Other flnance costs Expected return on pension scheme assets Interest on pension scheme liabilities 1473,0001 371,000 1422,0001 355,000 Net ch£r8e 1102,QOOI 167,0001 Total charge to resources expended in Statement of Financial Activlties 134,000 192,000 Analysis of the actuarial g2ins and losses shown In the Statement of Financial Artivlties.. 31.3.25 31,3.24 Actuarial gainslllossesl on assets Actuarial gains/llosse51 on liabilitie5 1149,000) 1,375,000 307,000 332,000 Actuarial sain / Ilossl recognised 1,226,000 639,000 Changes i n the fair value of the defined benefit obllgation £ re as follows., 31.3.25 31.3.24 Opening defined benefit obligation Current Service cost Interest on pension scheme liabilities Employee contributiony Actuarial Igainsl/los5es Beneflts pald / transfers 7,626,000 226,000 371,000 96,000 11,375,000) 1226,0001 7,465,000 249,000 355,000 98,000 1332,0001 1209,0001 Closing def ined beneflt obligatlons 6,718,000 7,626,000 Page131
HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE} NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 18. PENSION ARFIANGEMENTS (CONTINUED) Changes in the fair value of plan assets are as follows,. 31.3.25 31.3.24 Opening fair value of plan assets Expected return on plan a55ets Actuarial gainslllosses Employer contri butions Employee contributions Administration expenses Beneflts paid / transfers 9,580,000 473,000 {149,000) 260.000 96,000 iio,000) 1226,000) 8,712,000 422,000 307,000 260,000 98,000 iio,0001 1209,0001 Closing fair value of plan assets 10,024,000 9,580,000 The split of assets between investment estegories is as follows,. 2025 2025 2024 2024 Equities Other bonds Property Cash/liquidity Other 11,000 10,000 120,000 150,000 9,733,000 o.io 0,10 1.20 1.50 97.10 9,000 10,000 125,000 172.000 9,264,000 o.io o.io 1.30 1.80 96.70 10,024,000 loo.00 9,580,000 loo.00 Amounts for the current and prevlous periods are as follows.. 2025 2024 2022 2021 Defined benefit obligation Plan assets {6,718,000) 10,024,000 17,626,0001 9,580,000 17,465,000) 111,807,000) 8,712.000 8,501,000 Surplus/lDeficit 3,306,000 1,954,000 1,247,000 13,3D6,0001 A full actuarial review of the Scheme was undertaken as at 31, March 2025. Following the full actuarlal valuation at 31$1 March 2025, employer contributions were agreed to stay at a rate of 13.70% with effect from l Aprll 2025, and reduce to 10.9% from I" April 2026. The current estimate of employer contribution5 for the year ended 31 March 2026 is £260.000. Implied service cost Is estimated at £149,000 and a net interest and administration cost at1£202,0001 resulting in the surpl us increasing by an estimated £313,000 to £3,619,000. Page | 32
HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 19. RELATED PARTY TRANSACTIONS The charity receives a level of grant fundinE from Hyndburn Borough Council. The Council also has the power to appoint up to two trustees of the charity. The grant fundlng received during the year and the amounts owed to Hyndburn Borough Councll at 31 March 2025 are summarised as follows.. 31.3.25 31.3.24 Unre5trirted operation81 income Net amounts owed to Hyndburn Borough Council 1,000,000 2,777,014 490,000 2,992,680 Certain propertle5, occupied and operated by the charlty, are provlded by Hyndburn Borough Councll on a peppercorn rent in accordance wlth the earllest lease expiring on 31 March 2027. The e5tlmated benefit of the low rentals for these properties is £270,32512024'. £270,325). The charity a150 ha5 tran5action5 in the year with Rishton United FC, Accrington Stanley Community Trust and Carers Link Lancashire who each have common trustees. The nature of these transactions relates to the hlre of pitches, sports hall and room facilities from the Leisure trust on an arm's length basis. 20. GOING CONCERN AND POST BALANCE SHEET EVENTS In preparing this Annual Report and Account5, the trustees have considered their statement made reg8rding preparation of the financial Statements on 3 going-concern ba515. The finzncial statements have been produced on a going concern basis, despite the existence of net current liabilities and net total liabilities (excluding the pension scheme surplus) as at 31st March 2025 because the trustees sre satisfied that subject to the reservations identified in th@ Going Concern paragraph in the Trustees Report and Accounting Policies, the charity will meet all its obligations as and when they fall due over the foreseeable future. In formlng this opinion, the trustees have pa id particular regard to: al The nature of and future prospect5 for the economic climate in which the charity operates,. bl The adequacy of the liquidity in the business demonstrated through the current 12-month forecast; cl The continued support of the Hyndburn Borough Council,. dl Tho remalning term to March 2027 of the leases,. el The competencies of the executive staff employed by the charlty,. fl The actua I performance to date for the financi81 year ending 31 March 2026,. gl The details included in the Report of the Trustee5 which sets out the impact of the ener price rise5 and cost of living crisi5. The trustees are not aware of any other reporta ble post balance sheet events at the time of this report. Page | 33