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2024-12-31-accounts

HALO LEISURE SERVICES LIMITED

REPORT OF THE TRUSTEES, STRATEGIC REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

CHARITY NO : 1091543 COMPANY NO : 04335715

HALO LEISURE SERVICES LIMITED

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS for the Year Ended 31 December 2024

Page
Report of the Trustees incorporating strategic report 1-8
Reference and administrative details of the Charity, 1-2
its Trustees and advisors
Structure, governance and management 2-3
Objectives and activities 3
Strategic report 4-8
- Fundraising 3
- Achievements and performance 4
- Financial review 5-6
- Principal risks and uncertainties 6
- Future plans 7
- Disabled persons 7
Statement of Trustees’ Responsibilities 8
Report of the Independent Auditors 9-11
Consolidated Statement of Financial Activities 12
(incorporating an Income and Expenditure Account &
Statement of Other Comprehensive Income)
Consolidated Balance Sheet 13
Company Balance Sheet 14
Consolidated Cash Flow Statement 15
Notes to the Consolidated Cash Flow Statement 16
Notes to the Consolidated Financial Statements 17-46

HALO LEISURE SERVICES LIMITED

REPORT OF THE TRUSTEES INCORPORATING STRATEGIC REPORT for the Year Ended 31 December 2024

The Trustees, who are also Directors of the Charitable Company for the purposes of the Companies Act 2006, present their report with the consolidated financial statements of the Charitable Company and the Group for the year ended 31 December 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) (FRS102) 'Accounting and Reporting by Charities' (effective 1 January 2019).

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS

The name of the parent Charitable Company is Halo Leisure Services Limited.

Principal and registered office:

Telephone:

Website:

Company Registration Number:

Charity Registration Number:

Trustees during the year under review and up to the present date:

Halo Support Centre Lion Yard Broad Street LEOMINSTER Herefordshire HR6 8BT 01568 618980 www.haloleisure.org.uk 04335715 (England and Wales)

1091543

Date of appointment Date of resignation as Director/Trustee as Director/Trustee

R J S Curtis [Chairman] S Brewster A Cavaghan C E Edginton M J Rendall K E Bush R Whelan G Hotchen J Lee W Campion 1 June 2024 S Curry 1 June 2024 Chairman: R J S Curtis Chief Executive: S M Rolfe Company Secretary: J G Huxley Auditors: McCabe Ford Williams Chartered Accountants Statutory Auditors Building 1063, Cornforth Drive, Kent Science Park, Sittingbourne, Kent ME9 8PX Bankers: National Westminster Bank plc 12 Broad Street Hereford HR4 9AH

1 September 2024

Page 1

HALO LEISURE SERVICES LIMITED

REPORT OF THE TRUSTEES INCORPORATING STRATEGIC REPORT

for the Year Ended 31 December 2024

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS - continued

Solicitors:

T.A. Matthews 32-35 Broad Street Hereford HR4 9AR

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Trustees

The Trustees are also the Directors in accordance with the Companies Act 2006. The Board is made up of not less than 5 and no more than 15 Trustees. Trustees are required to retire after a term of three years but may be reappointed for a further three years to a maximum of four consecutive terms of three years. They may be appointed annually for further terms of one year under exceptional circumstances and with unanimous resolution by the Trustees. The Trustees are also members of the Charitable Company which is limited by guarantee.

Structure of the Charity

The Charity is incorporated as a company limited by Guarantee. There is one subsidiary which, through ownership of land, acts as a security to the parent for loans it may have from time to time. The Board of Trustees also act as Directors of the Limited Company and meet regularly during the year. Two sub committees have been established to advise, scrutinise and report to the main Board. These are the Workforce Subcommittee and the Finance, Audit and Compliance Sub-committee. The subsidiary company’s Board is made up of a smaller number to the Trustees of the parent with an additional independent member, and report to the main Board on a regular basis.

A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the Charitable Company, supported by a Senior Management Team.

Induction and training

All Trustees receive induction training with regard to the organisation including its powers and objects and the Charitable Company itself. Regular update and refresher training is also provided regarding their role as Charity Trustees and Charitable Company Trustees.

Organisational structure and decision making process

The Full Board of Trustees retains overall accountability for the management of the Charitable Company and its subsidiaries. It delegates responsibility for day-to-day decision making to the Chief Executive and the Senior Management Team. Finance and Workforce Sub-Committees meet on a regular basis across the year taking responsibility for strategic decision making along with monitoring and review of outcomes. There is a scheme of delegation in place which is reviewed on a cyclical basis.

Remuneration of Key Management Personnel

Remuneration of Key Management Personnel is reviewed annually alongside the other employees of the company by both the Workforce Sub-committee and the Finance, Audit and Compliance Sub-committee, with a recommendation presented to the main Board. No Trustees or Directors receive remuneration other than reimbursement of direct expenses.

Related parties

The Charitable Company collaborates closely with the Local Authorities and bodies who have sub-contracted facility management to the Charity.

The Charitable Company is the sole shareholder of Severn Centre Trust Ltd, which is a registered Charity with similar aims and objects to the Charitable Company.

Page 2

HALO LEISURE SERVICES LIMITED

REPORT OF THE TRUSTEES INCORPORATING STRATEGIC REPORT

for the Year Ended 31 December 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT - continued

Co-operation with other organisations

As a community-based organisation operating in Herefordshire, Bridgend, Merthyr Tydfil, Shropshire, Gloucestershire, Warwickshire and Wiltshire. Halo Leisure Services Limited (Halo) designs it’s strategic planning and operational service delivery with due regard to partner aims and objectives, as specified in the relevant contractual terms. The annual Business plan specifically identifies how Halo will contribute to delivering on broader social agendas, working with the health, education and voluntary sectors across local authorities and both local and national organisations. As a non-profit making charity Halo actively seeks to expand its operations beyond contractual terms through sourcing grants to support innovative wellbeing activities.

Risk Assessment

The Charitable Company maintains a comprehensive risk register to identify the internal and external risks it faces and documents the mitigation controls in place. This document is reviewed on a regular basis by the Trustees.

OBJECTIVES AND ACTIVITIES

Objectives and aims

Strategic themes

As a Social Enterprise, we take our role within the communities we serve seriously and see social responsibility at the heart of all we do. Our four corporate themes are:

  1. To provide a customer experience which exceeds expectations which attracts and retains customers in an increasingly competitive marketplace.

  2. To deliver innovative products for our customers and partners to encourage healthier lifestyles, drive revenue and combat competition.

  3. Employ and reward people who add value through their skills, knowledge and performance while delivering a lean workforce fit for future challenges.

  4. To operate a financially sustainable organisation which uses commercial principles to drive performance and achieve our vision and goals.

FUNDRAISING

The Trustees are responsible for ensuring that the charity operates within a responsible, sustainable financial framework and that it has adequate resources to carry out its objectives. While the Trustees may delegate many of the operations of fundraising to other parts of the organisation, they retain the responsibility for inspiring other fundraisers, demonstrating the perceived importance of fundraising to the organisation.

Fundraising activities carried out by the charity will comply with all relevant laws and the Charity Commission's publication 'Charity Fundraising' (CC20).

Page 3

HALO LEISURE SERVICES LIMITED

REPORT OF THE TRUSTEES INCORPORATING STRATEGIC REPORT

for the Year Ended 31 December 2024

STRATEGIC REPORT

CHIEF EXECUTIVE'S REPORT OPERATING ENVIRONMENT

The leisure industry continues to experience significant transformation, with providers like Halo facing intensifying competition, evolving customer expectations, ongoing cost-of-living pressures, and Local Authority funding constraints. Throughout these challenges, Halo has remained steadfast in its vision of creating healthier communities. The accelerating pace of technological change has substantially impacted leisure consumption patterns, requiring innovative approaches to community health engagement.

During 2024, Halo navigated considerable cost pressures stemming from:

To mitigate these challenges, the company implemented a flexible energy purchasing agreement extending to March 2029, optimising the balance between spot and forward purchases. Additionally, several of Halo's Local Authority partnerships include contractual protections against energy cost escalations. These prudent financial measures help ensure the sustainability of Halo's community health programmes.

Despite these headwinds, Halo's revenue has continued to grow, with participation and membership figures now exceeding pre-pandemic levels—a testament to the community's recognition of the value of health and wellbeing services. The company has pursued strategic expansion through:

This controlled growth enables Halo to distribute corporate overhead across a broader portfolio while enhancing commercial resilience through diversified partnerships with staggered contract durations. More importantly, it extends Halo's mission of creating healthier communities to new regions, increasing its positive social impact.

2024 PERFORMANCE

These accounts represent the twenty-forth year of trading for Halo Leisure Services Limited, marking over two decades of commitment to community health and wellbeing.

Halo's estate expanded during 2024 with additions in Merthyr Tydfil and Meon Vale (Warwickshire), concluding the year with operations across 26 leisure centres spanning Herefordshire, Bridgend, Merthyr Tydfil, Shropshire, Gloucestershire, Wiltshire and Warwickshire. Each new facility represents an opportunity to foster healthier communities through accessible, high-quality leisure services.

Significant capital investment in new fitness equipment yielded positive returns through increased membership acquisition and retention, enabling more community members to engage in regular physical activity. The company also completed the comprehensive refurbishment of the athletics track at Hereford Leisure Centre, reinforcing its commitment to providing high-quality sporting facilities that contribute to community health outcomes.

Page 4

HALO LEISURE SERVICES LIMITED

REPORT OF THE TRUSTEES INCORPORATING STRATEGIC REPORT for the Year Ended 31 December 2024

STRATEGIC REPORT - continued

STRATEGIC PRIORITIES FOR 2025

Halo's strategic focus for 2025 centres on two key objectives, both underpinned by the vision of creating healthier communities:

1. Performance Enhancement of Established Operations

2. Integration of New Partnerships

By advancing these strategic priorities, Halo remains committed to its foundational purpose of creating healthier communities across all the regions it serves.

FINANCIAL REVIEW

The group has returned a surplus of £3,952,582 (2023: £3,406,867) before defined benefit pension remeasurement adjustments for the year ended 31 December 2024.

The Charitable Company continues to target a trading surplus.

The challenge has been addressed by a combination of additional cost savings, business expansion and service development, including modernization of systems and processes driven through investment, leading to improved sustainability and reduction in cost of employment. For example: secure access systems.

Key factors behind the reported performance of the Charitable Company have been:

  1. Operational revenue recovering with membership numbers up 17% year on year and participants on swimming courses up 6.7% year on year.

  2. Funding > £800,000 for major projects including the refurbishment of the athletic track in Hereford, tennis courts in Leominster, facilities in Ogmore Leisure Centre and solar panels at Ross.

Page 5

HALO LEISURE SERVICES LIMITED

REPORT OF THE TRUSTEES INCORPORATING STRATEGIC REPORT for the Year Ended 31 December 2024

STRATEGIC REPORT – continued

FINANCIAL REVIEW - continued

Reserves policy

The Charitable Company’s principal financial management policy centers on the need to retain sufficient cash reserves to operate within the Charity Commission’s guidelines.

Halo Leisure Services Limited has a relatively favourable cash flow as it receives much of its income in advance of its expenditure, but the impact of inflation and energy costs had a detrimental effect on cash generation from core business trading; leading to capital investment being sourced through financing options. The Trustees recognise the need for a level of financial reserves that will shield the Charitable Company from the possibility of adverse unforeseen circumstances. These include a number of specific risks that have been identified in the Charitable Company’s Risk Register. The company’s reserves policy is to achieve “a level of reserves sufficient to cover an average of three months expenditure plus a level of reserves sufficient to cover any actuarially determined crystalised pension deficit contribution that may be required, in excess of existing bonds.”

The reserves policy suggests a desired level of unrestricted reserves of at least £3.9m, excluding any pension asset or liability. This compares with current unrestricted reserves, excluding the current pension asset, which are £557,154. The trustees will aim to build reserves. However, this will take a number of years given the continuing uncertainty. The Charitable Company also continues to seek opportunities where it can deliver both social benefit and financial improvement, and to maintain and improve cost control and efficiency across the business. The company is also following advice from the pension fund managers and the pension scheme actuaries to ensure that the pension scheme is funded at a rate which is sufficient, over the next 20 to 25 years.

Before accounting for any asset/liability arising from the Charitable Company’s defined benefit pension scheme accumulated reserves for the group amounted to £5,062,029 (2023: £5,133,447), including restricted funds of £4,504,875 (2023: £3,503,629) and unrestricted funds of £557,154 (2023: £1,629,818).

However, after accounting for the Charitable Company’s defined benefit pension scheme asset at the year end of £1,510,000 (2023: £1,983,000) the group has an unrestricted reserve surplus of £2,067,154 (2023: £3,612,818).

The pension asset/liability does not affect the Charitable Company’s resources for general application as the Charitable Company pays pension contributions in line with the rates prescribed by professionally qualified actuaries which are calculated to prevent any potential pension deficit in the long term. The Trustees are satisfied that the Charitable Company can meet its obligations as and when they fall due.

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees maintain a register of the key business risks faced by the Charitable Company and seeks to ensure that appropriate policies are in place to manage, monitor or mitigate those risks.

Much of the Charitable Company’s income is received from short term membership commitments and daily till income with no guarantees of renewal. Whereas Halo has longer term commitments to staff and maintenance of the property portfolio. The variance between the timing of Halo’s commitments and its customers’ commitments is judged to be a risk that Halo faces, along with the stability of some of its key partners in the form of Local Authority funding in the short and medium term.

Page 6

HALO LEISURE SERVICES LIMITED

REPORT OF THE TRUSTEES INCORPORATING STRATEGIC REPORT for the Year Ended 31 December 2024

STRATEGIC REPORT – continued

FUTURE PLANS

Halo will continue to promote an environment of high performance from a happy and well-motivated workforce alongside driving down energy consumption through a combination of good practice and targeted investment. The company will continue to work with its partners to provide the best possible service and promote the overall objectives of preserving and improving good health and wellbeing amongst the population. Halo has a strategic objective to grow through acquisition of new contracts, in circumstances where the geographical proximity complements the existing business.

DISABLED PERSONS AND DIVERSITY

The parent Charitable Company and its subsidiary undertakings’ policy is to give full and fair consideration to applications for employment by disabled persons, having regard for their particular aptitudes and abilities. Disabled employees receive appropriate training to promote their career within the organisation. Employees who become disabled are retained in their existing posts where possible or retrained for suitable alternative posts.

Halo has a strong commitment to diversity inclusion and engagement and works with partners to target groups and break down barriers to activity and participation, taking positive steps to increase representation and participation from under-represented groups, believing in a culture of safety, value and inclusion.

Halo has partnered with the National Centre for Diversity and achieved the Investors in Diversity Award during 2023.

Page 7

HALO LEISURE SERVICES LIMITED

REPORT OF THE TRUSTEES INCORPORATING STRATEGIC REPORT

for the Year Ended 31 December 2024

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Report of the Trustees incorporating a Strategic Report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice, including FRS102 (the financial reporting standard applicable in the UK and R.O.I).

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the Trustees are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each Trustee has taken all the steps that he or she ought to have taken as a trustee in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

APPROVAL OF REPORTS

In approving the Report of the Trustees, the Trustees of the Charitable Company also approve the Strategic Report in their capacity as Directors.

ON BEHALF OF THE BOARD:

...............................................

R J S Curtis – Chairman

............................................... J G Huxley – Secretary

.............................................. G Hotchen – Trustee

Date: ..............................................

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HALO LEISURE SERVICES LIMITED

Opinion

We have audited the consolidated financial statements of Halo Leisure Services Limited Group for the year ended 31 December 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or 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 this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HALO LEISURE SERVICES LIMITED

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and charitable company and their 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 Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

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

Our responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the Group's and Charitable Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HALO LEISURE SERVICES LIMITED

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Board of Trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

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

Ashley Phillips FCCA (Senior Statutory Auditor) for and on behalf of McCabe Ford Williams Statutory Auditors and Chartered Accountants Building 1063, Cornforth Drive Kent Science Park Sittingbourne Kent ME9 8PX

Date:

Page 11

HALO LEISURE SERVICES LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating a consolidated Income and Expenditure Account and Statement of Other Comprehensive Income) for the Year Ended 31 December 2024

NOTE
INCOME
Donations and legacies
3
Income from charitable activities:
Operation of Leisure sites
4
Investment income
5
Other income
7
TOTAL INCOME
EXPENDITURE
Expenditure on charitable activities:
Leisure activities
12
TOTAL EXPENDITURE
NET (EXPENDITURE) / INCOME
BEFORE TAXATION AND
TRANSFERS
GROSS TRANSFERS BETWEEN
FUNDS
NET (EXPENDITURE) / INCOME
BEFORE ACTUARIAL
(LOSSES)/GAINS UNDER FRS102
OTHER RECOGNISED GAINS AND
LOSSES
Remeasurements on defined benefit
pension schemes
28
NET INCOME / (EXPENDITURE)
FUNDS BROUGHT FORWARD
FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
165
17,507,591
112,353
201,300
17,821,409
18,894,073
18,894,073
(1,072,664)
-

(1,072,664)
-

(1,072,664)
1,629,818
557,154		 Restricted
Funds
FRS 102 s.28
Unrestricted
Funds
£
£
563,311
-
1,118,419
-
-
-
-
-
1,681,730
-
680,484
(4,024,000)
680,484
(4,024,000)
1,001,246
4,024,000
-
-
1,001,246
4,024,000
-
(4,497,000)
1,001,246
(473,000)
3,503,629
1,983,000
4,504,875
1,510,000		 Total Funds
Year to
31.12.2024
£
563,476
18,626,010
112,353
201,300
19,503,139
15,550,557
1 15,550,557
3,952,582
-

3,952,582
(4,497,000)

(544,418)
7,116,447
6,572,029		 Total Funds
Year to
31.12.2023
£
499,251
17,227,624
42,920
104,870
17,874,665
14,467,798
14,467,798
3,406,867
-
3,406,867
(2,840,000)
566,867
6,549,580
7,116,447

All of the above results are derived from continuing activities. The group has no other recognised gains and losses other than those stated above.

The notes form part of these financial statements

Page 12

Company Registered number: 04335715 Registered Charity number: 1091543

HALO LEISURE SERVICES LIMITED

CONSOLIDATED BALANCE SHEET

31 December 2024

31.12.24 31.12.23
Notes £ £ £ £
FIXED ASSETS
Intangible assets 14 10,333 -
Tangible assets 15 14,476,921 13,737,649
14,487,254 13,737,649
CURRENT ASSETS
Stocks 17 12,489 25,058
Debtors 18 596,799 376,074
Cash at bank and in hand 1,780,160 2,909,656
2,389,448 3,310,788
CREDITORS
Amounts falling due within one year 19 3,690,779 3,515,949
NET CURRENT (LIABILITIES)/ASSETS (1,301,331) (205,161)
TOTAL ASSETS LESS CURRENT
LIABILITIES 13,185,923 13,532,488
CREDITORS
Amounts falling due after more than
one year 20 (8,070,171) (8,320,798)
DEFERRED INCOME 24 (53,723) (78,243)
NET ASSETS BEFORE PENSION (ASSET)/LIABILITY
5,062,029		 5,133,447
PENSION (ASSET)/LIABILITY 28 (1,510,000) (1,983,000)
FUNDS
Unrestricted income funds 25 2,067,154 3,612,818
Restricted funds 25 4,504,875 3,503,629
TOTAL FUNDS 25 6,572,029 7,116,447
5,062,029 5,133,447
ON BEHALF OF THE BOARD:
.............................................. ..............................................
R J S Curtis - Chairman G Hotchen - Trustee
..............................................
J G Huxley - Company Secretary
Date:

The notes form part of these financial statements

Page 13

Company Registered number: 04335715 Registered Charity number: 1091543

HALO LEISURE SERVICES LIMITED

COMPANY BALANCE SHEET COMPANY BALANCE SHEET COMPANY BALANCE SHEET COMPANY BALANCE SHEET COMPANY BALANCE SHEET
31 December 2024
31.12.24 31.12.23
Notes £ £ £ £
FIXED ASSETS
Intangible assets 14 10,333 -
Tangible assets 15 12,593,387 11,801,350
12,603,720 11,801,350
CURRENT ASSETS
Stocks 17 12,489 25,058
Debtors 18 538,674 369,165
Cash at bank and in hand 1,734,418 2,807,286
2,285,581 3,201,509
CREDITORS
Amounts falling due within one year
19		 3,647,927 3,465,964
NET CURRENT (LIABILITIES)/ASSETS (1,362,346) (264,455)
TOTAL ASSETS LESS CURRENT
LIABILITIES 11,241,374 11,536,895
CREDITORS
Amounts falling due after more than
20		 (8,070,173) (8,320,798)
one year
DEFERRED INCOME 24 (53,723) (78,243)
NET ASSETS BEFORE PENSION (ASSET)/LIABILITY 3,117,478 3,137,854
PENSION (ASSET)/LIABILITY 28 (1,510,000) (1,983,000)
FUNDS
Unrestricted income funds 25 1,991,894 3,546,206
Unrestricted designated funds 25 - -
Restricted funds 25 2,635,584 1,574,648
TOTAL FUNDS 25 4,627,478 5,120,854
3,117,478 3,137,854
ON BEHALF OF THE BOARD:
.............................................. ..............................................
R J S Curtis - Chairman G Hotchen - Trustee
..............................................
J G Huxley - Company Secretary
Date:

The notes form part of these financial statements

Page 14

HALO LEISURE SERVICES LIMITED

CONSOLIDATED CASH FLOW STATEMENT

for the Year Ended 31 December 2024
Year to

31.12.24

Notes
£
Cash flows from operating activities
Cash generated from operations
1
1,335,302
Interest received
(34,420)
Net cash from operating activities
1,300,882
Cash flows from investing activities
Purchase of intangible fixed assets
(12,000)
Purchase of tangible fixed assets
(1,803,161)

Interest received
34,420
Net cash from investing activities
(1,780,741)
Cash flows from financing activities
New finance lease agreements in year
667,786
Repayment of bank loans
(150,000)
Hire purchase repayments in year
(601,805)
Interest element of hire purchase and lease payments
(565,618)
Net cash from financing activities
(649,637)
Change in cash and cash equivalents in the reporting period
(1,129,496)
Cash and cash equivalents at the
beginning of the reporting period
2,909,656

Cash and cash equivalents at the
2
end of the reporting period
1,780,160		 Year to
31.12.23
£
2,802,754
(42,920)
2,759,834
-
(2,486,050)
42,920
(2,443,130)
148,680
(150,000)
(207,426)
(111,264)
(320,010)
(3,306)
2,912,962
2,909,656		 Year to
31.12.23
£
2,802,754
(42,920)
2,759,834
-
(2,486,050)
42,920
(2,443,130)
148,680
(150,000)
(207,426)
(111,264)
(320,010)
(3,306)
2,912,962
2,909,656
2,909,656

The notes form part of these financial statements

Page 15

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT

for the Year Ended 31 December 2024

1. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Net movement in funds
Actuarial (gains)/losses on defined benefit pension schemes
Interest element of hire purchase/finance lease payments
Depreciation/amortisation charges
Losses on asset revaluation
Gain on finance lease revaluation
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Movement in deferred capital grants
Difference between pension charge, including finance costs, and cash
contributions
Net cash inflow from operating activities
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand and at bank
Total cash and cash equivalents		 Year to
31.12.24
£
(544,418)
4,497,000
565,618
1,065,556
-
-
12,569
(220,725)
8,222
(24,520)
(4,024,000)
1,335,302
Year to
31.12.24
£
1,780,160
1,780,160		 Year to
31.12.23
£
566,867
2,840,000
111,264
838,154
1,783,370
(4,189,337)
15,000
186,589
752,513
(25,666)
(76,000)
2,802,754
Year to
31.12.23
£
2,909,656
2,909,656

2. ANALYSIS OF CASH AND CASH EQUIVALENTS

3. ANALYSIS OF CHANGES IN NET DEBT

Cash in hand & bank
Debt due within one
year
Debt due greater than
one year		 31.12.2023
2,909,656
(529,850)
(8,320,798)
(5,940,992)		 Cash Flows
Non-Cash
New
Finance
Leases /
Bank Loans
(1,129,496)
-
17,253
(150,000)
1,575,170
(667,786)
462,927
(817,786)		 Changes
Other non-
cash changes
-
(33,861)
(656,757)
(690,618)		 31.12.2024
1,780,160
(696,458)
(8,070,171)
(6,986,469)

The notes form part of these financial statements

Page 16

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

for the Year Ended 31 December 2024

1. ACCOUNTING POLICIES

Halo Leisure Services Limited is a private company limited by guarantee, registered in England and Wales. The company is also a charity registered in England and Wales. The company number, charity number and registered office can be found on the company information page.

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the provisions of FRS 102 (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. There were no material departures from that standard.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

Revenue has continued to grow through 2024 as marketing activity and investment in new gym equipment drive sales and retention of members. This has been enhanced by price increases to cover both general inflationary increases and the wage cost increases driven by changes to the National Living Wage.

Cost of utilities, primarily gas and electricity, remain a risk, although prices have softened through 2024 and Halo maintains a flexible purchasing agreement for forward purchases.

Group and charitable company cash flow forecasts have been produced based on revenue and cost forecasts for the foreseeable future. These forecasts indicate that the group and charitable company will remain within the group’s financing facilities for the foreseeable future and will be able to meet their financial obligations as they fall due.

The Board of Trustees has determined that the actions that it has taken mitigate the uncertainties and has therefore prepared the financial reporting on a going concern basis.

Page 17

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2024

  1. ACCOUNTING POLICIES - continued

Functional currency and presentation currency

The group’s functional currency is British Pound Sterling (GBP), which is also the presentation currency for the group. The financial statements are therefore presented in British Pound Sterling.

Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity 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 or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Income recognition

Items of income are recognised and included in the accounts when all of the following criteria are met:

Income represents net sales of goods and services, excluding Value Added Tax and discounts to customers and management fees. Income received in respect of future events has been deferred and will be released when the event is complete or over the period to which the income relates. Membership income is deferred over the period of membership.

Management fee

The management fee is unrestricted funding which is available for use at the discretion of the Trustees in furtherance of the general objectives of the Charitable Company. Income received for capital expenditure is treated as deferred income and is credited to the Statement of Financial Activities by instalments over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.

Expenditure recognition

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 obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings 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 resources.

Support costs

Support costs are those that assist the work of the Charitable Company but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the Charitable Company and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Irrecoverable VAT

Given the nature of the Charitable Company's activities it attracts exempt supplies, which results in the Charitable Company falling under the partial exemption scheme. Input VAT is fully recovered on taxable supplies, together with a proportion of non-attributable input VAT. Irrecoverable VAT is written off to the Statement of Financial Activities.

Page 18

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Individual fixed assets costing £2,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives.

In respect of leases held over the leisure facilities, capitalised when deemed to be finance leases due to their duration, cost is determined on the basis of the net present value of minimum lease payments calculated in accordance with the Charitable Company’s incremental borrowing rate.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold Property - 2% on cost Leasehold Property - over remaining term of lease Improvements to Property - over remaining term of lease Plant and Machinery - straight line over 10 years, 15% on cost Fixtures and Fittings - straight line over 5 years, 15% on cost Fitness Equipment - straight line over 5 years and straight line over 3 years Computer Equipment - straight line over 3 years

Intangible fixed assets

Amortisation is provided at the following annual rate in order to write off the asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. Computer Software - straight line over 3 or 5 years

Stocks

Stocks have been valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items.

Group financial statements

The financial statements consolidate the results of the Charitable Company and its wholly owned subsidiary, Severn Centre Trust Ltd, on a line by line basis. A separate Statement of Financial Activities and Income and Expenditure Account is not presented for the Charitable Company itself in accordance with the exemptions afforded by paragraph 397 of the SORP.

Charitable Company status

The Charitable Company is a company limited by guarantee. At 31 December 2024 there were ten members, each of whom, on winding up, has undertaken to contribute an amount not exceeding £1.

Debtors

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

Cash at bank and in hand

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

Creditors and provisions

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

Financial instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 19

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2024

1. ACCOUNTING POLICIES – continued

Service Concession Arrangements

The Charitable Company has a Service Contract with a Local Authority for the maintenance and operation of leisure centres owned by the Local Authority to which it has a lease and management service contract. The Authority has rights under the contract to specify the activities offered by the centres and have influence over the prices charged for them and also may have certain exclusive rights for the use of the centres at certain times. The contract specifies minimum standards for the services to be provided, with deductions from the service management fee payable being made if facilities are unavailable or performance is below the minimum standards.

Property, plant and equipment

The buildings and plant at the centres are leased to the Charitable Company as part of the overall contractual relationship with the Authority but the Authority maintains ultimate control of these assets. Accordingly the access which the Charitable Company has in the use of these assets is to enable it to operate the leisure centres, so that the Charitable Company can provide the public service it is contracted to provide, not to effectively own these public service assets. The leased buildings are for such a length of time that they are recognized as finance leases on the Charitable Company’s Balance Sheet however other assets leased from the Local Authority are not recognised on the Charitable Company's Balance Sheet.

Receipts

The Charitable Company receives an agreed payment from the Authority each year which is adjusted each year by inflation and can be reduced if the Charitable Company fails to meet availability and performance standards in any year but which is otherwise fixed.

In cases where the receipt from the Authority includes funding for specific works to be carried out in accordance with specifications laid down in the contract but which has not been spent at the year end a provision is included in the financial statements to reflect this.

Taxation

The Charitable Company is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Leasing and hire purchase

Property, plant and equipment acquired under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Charitable Company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Government grants

Government grants are recognised when the performance related conditions imposed upon the receipt of the grant have been met. Where these have not been satisfied, these grants are recognised as liabilities. If grants are not conditional on future performance related conditions, then income is recognised when the grant proceeds are receivable. During the year, the following grants were received:

Government Business Grants relate to the retail, hospitality and leisure industries.

Page 20

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2024

1. ACCOUNTING POLICIES – continued

Pension costs and other post-retirement benefits

The Charitable Company accounts for the pension scheme in accordance with the Financial Reporting Standard 102.

The Charitable Company operates three defined benefits pension schemes for which pension charges are based on full actuarial valuations dated 31 March 2022, rolled forward to the balance sheet date, for the Worcestershire County Council Pension Fund, Shropshire County Pension Fund and the Rhondda Cynon Taf County Borough Council Pension Fund. A further defined benefit pension scheme is operated in respect of the Gloucestershire Local Government Pension scheme however this is not recognized on the balance sheet of the Charitable Company due to a pass-through arrangement.

The Charitable Company provides pension benefits for eligible staff through these administered pension schemes. The administered schemes are multi-employer schemes which provide benefits based upon final pensionable pay.

For defined benefit schemes the amounts charged to resources expended on charitable activities are the current service costs and any gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately if the benefits are vested. If the benefits have not vested, the costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown as a net amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in the Statement of Financial Activities.

The defined benefit scheme is funded, and the assets of the scheme are held separately from those of the charity in a trustee administered fund. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on long dated high quality corporate bonds of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. See note 28 for further information in connection with the Charitable Company's defined benefit schemes.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from the estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 28, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuations performed have been used by the actuaries in valuing the pensions liability at 31 December 2024. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension asset/liability. In determining the value of the pension asset/liability the impact of an asset ceiling has been included to assess for recoverability, in accordance with the requirements of FRS102.

The recoverability of certain assets and valuation of investments within the Local Government Pension Fund may have been impacted by COVID-19, however it is not possible to determine at the current time to what extent that is.

Page 21

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

2. FINANCIAL ACTIVITIES OF THE CHARITABLE COMPANY

The financial activities shown in the Consolidated Statement of Financial Activities include those of the Charitable Company’s wholly owned subsidiary, Severn Centre Trust Ltd.

The financial activities shown in the Consolidated Statement of Financial Activities include those of the
Charitable Company’s wholly owned subsidiary, Severn Centre Trust Ltd.		 The financial activities shown in the Consolidated Statement of Financial Activities include those of the
Charitable Company’s wholly owned subsidiary, Severn Centre Trust Ltd.		 The financial activities shown in the Consolidated Statement of Financial Activities include those of the
Charitable Company’s wholly owned subsidiary, Severn Centre Trust Ltd.		 The financial activities shown in the Consolidated Statement of Financial Activities include those of the
Charitable Company’s wholly owned subsidiary, Severn Centre Trust Ltd.		 The financial activities shown in the Consolidated Statement of Financial Activities include those of the
Charitable Company’s wholly owned subsidiary, Severn Centre Trust Ltd.
A summary of the financial activities undertaken by the Charitable Company is set out below:
Year to Year to
31.12.24 31.12.23
£ £
Incoming resources 19,234,640 17,637,510
Expenditure on charitable activities after LGPS adjustment (15,231,016) (14,189,950)
Net (expenditure)/income 4,003,624 3,447,560
Actuarial (losses)/gains on defined benefit pension schemes
5,201,000		 1,077,000
Impact of asset ceiling movement (9,698,000) (3,917,000)
493,376 607,560
3. DONATIONS AND LEGACIES
Unrestricted Restricted Total funds
Total funds
funds funds Year to
Year to
31 31 31
31
December December December
December
2024 2024 2024
2023
£ £ £ £
National Exercise Referral Scheme (see - 265,596
265,596
197,635
note 25)
Donations 165 500
665
150
Other project grants - 297,215 297,215 301,466
Total 165 563,311 563,476 499,251

4. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
funds
31
December
2024
£
Operation of leisure centres
15,935,302
Management fee
1,547,769
Government grants
24,520
Total
17,507,591		 Restricted
funds
31
December
2024
Total funds
Year to
31
December
2024
Total funds
Year to
31
December
2023
£
£
£
722,225
16,657,527
15,429,434
-
1,547,769
1,464,870
396,194
420,714
333,320
1,118,419
18,626,010
17,227,624

Page 22

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

5.INVESTMENT INCOME
Unrestricted
funds
31
December
2024
£
Interest received
34,420
Rental income
77,933
Total
112,353
6.
OTHER INCOME
Unrestricted
funds
31
December
2024
£
Insurance claim
201,300
Total
201,300		 Restricted
funds
31
December
2024
Total funds
Year to
31
December
2024
Total funds
Year to
31
December
2023
£
£
£
-
34,420
42,920
-
77,933
-
-
112,353
42,920
Restricted
funds
31
December
2024
Total funds
Year to
31
December
2024
Total funds
Year to
31
December
2023
£
£
£
-
201,300
104,870
-
201,300
104,870

In 2024, the Group received £201,300 (2023: £104,870 COVID-19 relief) of income related to the flooding of Hereford Leisure Centre on its insurance policy.

8. NET EXPENDITURE/INCOME OF THE PARENT CHARITABLE COMPANY

As permitted by section 408 of the Companies Act 2006, the income and expenditure account of the parent Charitable Company is not presented as part of these financial statements. The parent Charitable Company’s net deficit after the actuarial gains/losses under defined benefit schemes for the financial year was £493,376 (2023: £607,560 surplus).

Page 23

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2024

9. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES, AND THE COST OF KEY MANAGEMENT PERSONNEL


Wages and salaries
Social security costs
Other pension costs
Defined benefit pension scheme adjustments
 Year to
31.12.24
£
9,659,043
640,548
592,059
(3,754,000)
7,137,650		 Year to
31.12.23
£
8,249,440
553,710
493,090
143,000
9,439,240

Included within 2024’s wages and salaries above are settlements totaling £12,758, relating to three employees, there were no such payments in 2023.

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

The average monthly number of employees during the period was as follows:
Year to Year to
31.12.24 31.12.23
Leisure Centres 664 607
Support 60 57
Management and administration 4 4
728 668

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

Year to Year to
31.12.24 31.12.23
Leisure Centres 225 215
Support 59 47
Management and administration 4 4
288 266

The number of employees whose emoluments as defined for taxation purposes amounted to over £60,000 in the year was as follows:

£60,000 in the year was as follows:
Year to Year to
31.12.24 31.12.23
£60,001 - £70,000 1 2
£70,001 - £80,000 1 -
£80,001 - £90,000 1 1
£90,001 - £100,000 - -
£100,001 - £110,000 1 1

During the year, Trustees received £nil remuneration (2023: £nil) and Trustees received £nil benefits in kind (2023: £nil).

The Trustees neither received nor waived any emoluments during the year.

During the year, expenses of £434 (2023: £304) were reimbursed to Trustees of the Charitable Company for travel expenses to board meetings.

The total amount of employee benefits received by key management personnel is £415,107 (2023: £395,932). The trust considers its key management personnel comprise of the Chief Executive, Finance Director, HR Director and Operations Director.

Page 24

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

10. NET INCOME FOR THE YEAR

The net income is stated after charging:


Equipment repairs, maintenance and lease
Depreciation - owned assets
Depreciation - assets on hire purchase contracts or finance leases
Computer software amortisation
Impairment losses on tangible fixed assets
Auditors remuneration
Non audit work – statutory accounts preparation
INTEREST PAYABLE AND SIMILAR CHARGES
Finance lease and hire purchase interest		 Year to
31.12.24
£
129,020
565,525
498,364
1,667
-
36,900
18,436
Year to
31.12.24
£
565,618
565,618		 Year to
31.12.23
£
138,130
503,924
334,230
-
1,783,370
26,870
8,200
Year to
31.12.23
£
(4,068,780)
(4,068,780)

11. INTEREST PAYABLE AND SIMILAR CHARGES

Finance lease interest was a large credit last year due to a revaluation of the finance lease liabilities caused by renegotiation of the property leases to which they relate.

12. RESOURCES EXPENDED ON CHARITABLE ACTIVITIES

Direct costs
£
Staff costs
£
Leisure centres
3,537,018
7,137,650
Major components of Support Costs
Premises Costs
Advertising & Promotions
Office Administration
Finance and Compliance
Other Finance Costs re FRS 102
Irrecoverable VAT
Equipment Repairs, Maintenance and Lease
Other Costs
Governance Costs		 Support
costs
£
Total for
Year to
31.12.24
£
Total for
Year to
31.12.23
£
4,875,889
15,550,557
14,467,798
Year to
Year to
31.12.24
31.12.23
£
£
1,561,469
1,569,090
153,385
66,940
348,049
348,784
996,556
(3,702,790)
(271,000)
(225,000)
1,043,983
871,860
129,020
138,130
859,091
1,131,754
55,336
35,070
4,875,889
233,838

Major components of Support Costs

All staff and support costs relate to the sole activity of the Charitable Company and its wholly owned charitable subsidiary, being the provision of leisure facilities. Governance costs are made up of auditors’ remuneration of £36,900 (2023: £26,870).

Page 25

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

NOTE
INCOME
Donations and legacies
3
Income from charitable activities:
Operation of Leisure sites
4
Investment income
5
Other income
6
TOTAL INCOME
EXPENDITURE
Expenditure on charitable activities:
Leisure activities
12
TOTAL EXPENDITURE
NET (EXPENDITURE) / INCOME
BEFORE TAXATION AND
TRANSFERS
TAXATION
Taxation on trading profit
GROSS TRANSFERS BETWEEN
FUNDS
NET INCOME BEFORE ACTUARIAL
(LOSSES)/GAINS UNDER FRS102
OTHER RECOGNISED GAINS AND
LOSSES
Remeasurements on defined benefit
pension schemes
28
NET INCOME / (EXPENDITURE)
FUNDS BROUGHT FORWARD
FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
150
15,547,323
42,920
104,870
15,695,263
13,463,512
13,463,512
2,231,751
-
-

2,231,751
-

2,231,751
(601,933)
1,629,818		 Restricted Funds
£
499,101
1,680,301
-
-
2,179,402
1,080,286
1,080,286
1,099,116
-
-
1,099,116
-
1,099,116
2,404,513
3,503,629		 FRS 102 s.28
Unrestricted
Funds
£
-
-
-
-
-
(76,000)
(76,000)
76,000
-
-
76,000
(2,840,000)
(2,764,000)
4,747,000
1,983,000		 Total Funds
Year to
31.12.2023
£
499,251
17,227,624
42,920
104,870
17,874,665
14,467,798
14,467,798
3,406,867
-
-
3,406,867
(2,840,000)
566,867
6,549,580
7,116,447

Page 26

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

14. INTANGIBLE FIXED ASSETS

Group
Computer
software
£
COST
At 1 January 2024 -
Additions 12,000
At 31 December 2024 12,000
AMORTISATION
At 1 January 2024 -
Amortisation charged in the year 1,667
At 31 December 2024 1,667
NET BOOK VALUE
At 31 December 2024 10,333
At 31 December 2023 -
Company
Computer
software
£
COST
At 1 January 2024 -
Additions 12,000
At 31 December 2024 12,000
AMORTISATION
At 1 January 2024 -
Amortisation charged in the year 1,667
At 31 December 2024 1,667
NET BOOK VALUE
At 31 December 2024 10,333
At 31 December 2023 -

Page 27

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

15. TANGIBLE FIXED ASSETS

Group

COST
At 1 January 2024
Additions
Disposals
Reclassification
Revaluation
At 31 December 2024
DEPRECIATION
At 1 January 2024
Charge for year
Eliminated on disposal
At 31 December 2024
NET BOOK VALUE
At 31 December 2024
At 31 December 2023		 Freehold
property
£
2,297,613
191,594
-
-
-
2,489,207
368,631
59,976
-
428,607
2,060,600
1,928,982		 Leasehold
property
£
8,611,767
-
-
-
-
8,611,767
809,159
139,317
-
948,476
7,663,291
7,802,608		 Improvement
to property
£
5,563,212
792,660
-
-
-
6,355,872
2,714,209
329,445
-
3,043,654
3,312,218
2,849,003		 Plant and
machinery
£
576,872
69,205
-
-
-
646,077
208,667
103,979
-
312,646
333,431
368,205		 Fixtures
and fittings
£
651,488
55,970
-
-
-
707,458
418,912
77,344
-
496,256
211,202
232,576		 Fitness
equipment
£
847,919
672,732
-
-
-
1,520,651
517,341
258,024
-
775,365
745,286
330,578		 Computer
equipment
£
287,414
-
-
-
-
287,414
61,717
95,804
-
157,521
129,893
225,697		 Assets
Under
Construction
-
21,000
-
-
-
21,000
-
-
-
-
21,000
-		 Totals
£
18,836,285
1,803,161
-
-
-
20,639,446
5,098,636
1,063,889
-
6,162,525
14,476,921
13,737,649

continued...

Page 28

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

15. TANGIBLE FIXED ASSETS - continued

Group - continued

Cost or valuation at 31 December 2024 is represented by:

Initial valuation
Valuation in 2023
Cost
Initial valuation
Valuation in 2023
Cost		 Assets
Under
Construction
£
-
-
21,000
21,000		 Freehold
property
£
-
-
2,489,207
2,489,207
Fixtures
and
fittings
£
-
-
707,458
707,458		 Long
leasehold
£
-
(1,783,370)
10,395,137
8,611,767
Fitness
equipment
£
-
-
1,520,651
1,520,651		 Improvements
to
Plant and

property
machinery
£
£
-
-
-
-
6,355,872
646,077
6,355,872
646,077
Computer

equipment
Totals
£
£
-
-
-
(1,783,370)
287,414
22,422,816
287,414
20,639,446

If long leasehold property had not been revalued it would have been included at the following historical cost:

Cost
Aggregate depreciation		 31.12.24
£
10,395,137
948,476		 31.12.23
£
10,395,137
809,159

continued...

Page 29

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

15. TANGIBLE FIXED ASSETS - continued

Group - continued

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows:

COST
At 1 January 2024
Additions
Disposals
Transfer to ownership
Revaluation
At 31 December 2024
DEPRECIATION
At 1 January 2024
Charge for year
Elimination on disposal
Transfer to ownership
At 31 December 2024
NET BOOK VALUE
At 31 December 2024
At 31 December 2023		 Leasehold
property
£
8,611,767
-
-
-
-
8,611,767
809,159
139,314
-
-
948,473
7,663,294
7,802,608		 Improvement
to property
£
612,914
-
-
-
-
612,914
510,762
51,076
-
-
561,838
51,076
102,152		 Plant and
machinery
£
148,681
3,820
-
-
-
152,501
-
55,229
-
-
55,229
97,272
148,681		 Fixtures
and fittings
£
493,101
-
-
-
-
493,101
282,070
49,310
-
-
331,380
161,721
211,031		 Fitness
equipment
£
280,961
660,147
-
-
-
941,108
132,347
203,435
-
-
335,782
605,326
148,614		 Computer
equipment
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Totals
£
10,147,424
663,967
-
-
-
10,811,391
1,734,338
498,364
-
-
2,232,702
8,578,689
8,413,086

continued...

Page 30

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

15. TANGIBLE FIXED ASSETS - continued

Company

COST
At 1 January 2024
Additions
Disposals
Reclassification
Revaluation
At 31 December 2024
DEPRECIATION
At 1 January 2024
Charge for year
Eliminated on disposal
At 31 December 2024
NET BOOK VALUE
At 31 December 2024
At 31 December 2023		 Freehold
Property
£
-
191,594
-
-
-
191,594
-
286
-
286
191,308
-		 Leasehold
property
£
8,611,767
-
-
-
8,611,767
809,159
139,323
-
948,482
7,663,285
7,802,608		 Improvement
to property
£
5,563,207
792,665
-
-
-
6,355,872
2,714,209
329,445
-
3,043,654
3,312,218
2,848,998		 Plant and
machinery
£
559,801
60,166
-
-
-
619,967
198,919
101,853
-
300,772
319,195
360,882		 Fixtures
and fittings
£
647,584
55,970
-
-
-
703,554
415,008
77,344
-
492,352
211,202
232,576		 Fitness
equipment
£
847,923
672,728
-
-
-
1,520,651
517,334
258,031
-
775,365
745,286
330,589		 Computer
equipment
£
287,412
-
-
-
-
287,412
61,715
95,804
-
157,519
129,893
225,697		 Assets
Under
Construction
-
21,000
-
-
-
21,000
-
-
-
-
21,000
-		 Totals
£
16,517,694
1,794,123
-
-
-
18,311,817
4,716,344
1,002,086
-
5,718,430
12,593,387
11,801,350

continued...

Page 31

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

15. TANGIBLE FIXED ASSETS - continued

Company - continued

Cost or valuation at 31 December 2024 is represented by:

Initial valuation
Valuation in 2023
Cost
Initial valuation
Valuation in 2023
Cost		 Assets
Under
Construction
£
-
-
21,000
21,000		 Freehold
property
£
-
-
191,594
191,594
Fixtures
and
fittings
£
-
-
703,554
703,554		 Long
leasehold
£
-
(1,783,370)
10,395,137
8,611,767
Fitness
equipment
£
-
-
1,520,651
1,520,651		 Improvements
to
Plant and

property
machinery
£
£
-
-
-
-
6,355,872
619,967
6,355,872
619,967
Computer

equipment
Totals
£
£
-
-
-
(1,783,370)
287,412
20,095,187
287,412
18,311,817

If long leasehold property had not been revalued it would have been included at the following historical cost:

Cost
Aggregate depreciation		 31.12.24
£
10,395,137
948,482		 31.12.23
£
10,395,137
809,159

continued...

Page 32

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2024

15. TANGIBLE FIXED ASSETS - continued

Company - continued

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows:

COST
At 1 January 2024
Additions
Disposals
Transfer to ownership
Revaluation
At 31 December 2024
DEPRECIATION
At 1 January 2024
Charge for year
Eliminated on disposal
Transfer to ownership
At 31 December 2024
NET BOOK VALUE
At 31 December 2024
At 31 December 2023		 Leasehold
property
£
8,611,767
-
-
-
-
8,611,767
809,164
139,314
-
-
948,478
7,663,289
7,802,603		 Improvement
to property
£
612,914
-
-
-
-
612,914
510,763
51,076
-
-
561,839
51,075
102,151		 Plant and
machinery
£
148,678
-
-
-
-
148,678
-
54,274
-
-
54,274
94,404
148,678		 Fixtures
and fittings
£
493,099
-
-
-
-
493,099
283,570
49,310
-
-
332,880
160,219
209,529		 Fitness
equipment
£
212,250
660,147
-
-
-
872,397
63,630
203,435
-
-
267,065
605,332
148,620		 Computer
equipment
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Totals
£
10,078,708
660,147
-
-
-
10,738,855
1,667,127
497,409
-
-
2,164,536
8,574,319
8,411,581

continued...

Page 33

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

16. FIXED ASSET INVESTMENTS

Company

Halo Leisure Services Limited is the 100% controlling company of Severn Centre Trust Limited, a company limited by guarantee.

Subsidiary

Severn Centre Trust Ltd

Nature of business: Provision of leisure facilities

%
Class of shares:
holding
Limited by guarantee
100.00
Aggregate funds
STOCKS
Group
31.12.24
31.12.23
£
£
Stocks
12,489
25,058		 31.12.24
31.12.23
£
£
1,944,557
1,995,598
Company
31.12.24
31.12.23
£
£
12,489
25,058		 31.12.23
£
1,995,598

17. STOCKS

Page 34

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

18. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
31.12.24
31.12.23
£
£
Trade debtors
335,376
221,664
Amounts owed by group undertakings
-
-
Other debtors
17,645
12,520
Prepayments and accrued income
243,778
141,890
596,799
376,074		 Company
31.12.24
31.12.23
£
£
266,761
149,560
11,607
66,320
17,645
12,520
242,661
140,765
538,674
369,165		 Company
31.12.24
31.12.23
£
£
266,761
149,560
11,607
66,320
17,645
12,520
242,661
140,765
538,674
369,165
369,165

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Finance leases & hire purchase (note 21)
Trade creditors
Other creditors
Other Taxes and PAYE
Accruals
Deferred income (excluding capital grants)
Bank loans
Deferred income (excluding capital grants)
Deferred income at 1 January
Resources deferred in the year
Amounts released from previous periods
Deferred income at 31 December		 Group
31.12.24
31.12.23
£
£
546,458
379,850
1,330,815
1,304,690
23,684
60,110
227,730
391,879
1,356,559
1,115,864
55,533
113,556
150,000
150,000
3,690,779
3,515,949
Group
31.12.24
31.12.23
£
£
113,556
171,578
55,533
113,556
(113,556)
(171,578)
55,533
113,556		 Company
31.12.24
31.12.23
£
£
543,048
379,850
1,324,685
1,296,310
23,383
59,810
221,024
383,569
1,345,145
1,094,683
40,642
101,742
150,000
150,000
3,647,927
3,465,964
Company
31.12.24
31.12.23
£
£
101,742
162,842
40,642
101,742
(101,742)
(162,842)
40,642
101,742		 Company
31.12.24
31.12.23
£
£
543,048
379,850
1,324,685
1,296,310
23,383
59,810
221,024
383,569
1,345,145
1,094,683
40,642
101,742
150,000
150,000
3,647,927
3,465,964
Company
31.12.24
31.12.23
£
£
101,742
162,842
40,642
101,742
(101,742)
(162,842)
40,642
101,742
101,742

Deferred income at 31 December 2024 represents annual leisure membership income and swimming courses income, where the consideration has been received in the year ended 31 December 2024 but the services were provided in the year ending 31 December 2025.

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

Finance leases & hire purchase (note 21)
Bank loans		 Group
31.12.24
31.12.23
£
£
7,945,171
8,045,798
125,000
275,000
8,070,171
8,320,798		 Company
31.12.24
31.12.23
£
£
7,945,173
8,045,798
125,000
275,000
8,070,173
8,320,798		 Company
31.12.24
31.12.23
£
£
7,945,173
8,045,798
125,000
275,000
8,070,173
8,320,798
8,320,798

Page 35

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

21. FINANCE LEASES AND HIRE PURCHASE

An analysis of the maturity of finance lease and hire purchase agreements is given below:

Due in less than 1 year
Due between 1-2 years
Due between 2-5 years
Due in more than 5 years		 Group
31.12.24
31.12.23
£
£
546,458
379,850
465,953
406,590
1,065,082
835,500
6,414,136
6,803,708
8,491,629
8,425,648		 Company
31.12.24
31.12.23
£
£
543,048
379,850
465,953
406,590
1,065,082
835,500
6,414,136
6,803,708
8,488,219
8,425,648		 Company
31.12.24
31.12.23
£
£
543,048
379,850
465,953
406,590
1,065,082
835,500
6,414,136
6,803,708
8,488,219
8,425,648
8,425,648

22. SECURED DEBTS

At the year end there were £275,000 in secured debts included within creditors (2023: £425,000). The debenture dated 9 September 2020 is over all assets of the company. The loan is further secured over all the assets of subsidiary, Severn Centre Trust Ltd, by way of fixed and floating charges.

Charges dated 4 April 2012 and 28 July 2015 are held in favour of National Westminster Bank plc over bank deposit balances of £91,100 and £27,000 and all amounts credited to the charitable company’s bank account in the future.

23. OBLIGATIONS UNDER OPERATING LEASE AGREEMENTS

Total future minimum lease payments under non-cancellable operating leases are as follows:

Group Other
Land and operating
buildings leases
31.12.24 31.12.23 31.12.24
31.12.23
£ £ £ £
Payments falling due:
Within one year - - 11,449
11,769
Within one to two years - - 7,216
7,872
Within two to five years - - - 7,216
- - 18,665 26,857
Company Other
Land and operating
buildings leases
31.12.24 31.12.23 31.12.24
31.12.23
£ £ £ £
Payments falling due:
Within one year - - 11,449
11,769
Within one to two years - - 7,216
7,872
Within two to five years - - - 7,216
- -
 18,665 26,857

Page 36

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2024

24. DEFERRED CAPITAL INCOME

DEFERRED CAPITAL INCOME
Group Company
31.12.24 31.12.23 31.12.24 31.12.23
£ £ £ £
Deferred capital grants 53,723 78,243 53,723 78,243

During the year £24,520 (2023: £25,666) of deferred capital grants were released into the Statement of Financial Activities as income.

25. RECONCILIATION OF MOVEMENTS IN FUNDS

Group

Unrestricted
Funds
£
At 1 January 2024
3,612,818
Incoming resources
17,821,409
Outgoing resources
(14,870,073)
Actuarial gains on defined benefit schemes
(4,497,000)
At 31 December 2024
2,067,154

Company
Unrestricted
Funds
£
At 1 January 2024
3,546,206
Incoming resources
17,552,910

Outgoing resources
(14,610,222)
Actuarial gains on defined benefit schemes
(4,497,000)
At 31 December 2024
1,991,894		 Restricted
Funds
Totals
£
£
3,503,629
7,116,447
1,681,730
19,503,139
(680,484) (15,550,557)
-
(4,497,000)
4,504,875
6,572,029
Restricted
Funds
Totals
£
£
1,574,648
5,120,854
1,681,730
19,234,640
(620,794) (15,231,016)
-
(4,497,000)
2,635,584
4,627,478		 Restricted
Funds
Totals
£
£
3,503,629
7,116,447
1,681,730
19,503,139
(680,484) (15,550,557)
-
(4,497,000)
4,504,875
6,572,029
Restricted
Funds
Totals
£
£
1,574,648
5,120,854
1,681,730
19,234,640
(620,794) (15,231,016)
-
(4,497,000)
2,635,584
4,627,478
4,627,478

Page 37

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

25. RECONCILIATION OF MOVEMENTS IN FUNDS - continued

Restricted Funds – Group

estricted Funds – Group
NERS scheme
Severn Centre Building Fund
Cycle Track
Athletics Track
Other restricted project income
Donations
Other grant income
Total		 At 1
January
2024
Incoming
Resources
Outgoing
Resources
Transfers
At 31
December
2024
£
£
£
£
£
-
265,596
(265,596)
-
-
1,928,981
-
(59,690)
-
1,869,291
1,573,153
70,555
(54,136)
-
1,589,572
-
651,670
(1,852)
-
649,818
1,495
297,215
(298,710)
-
-
-
500
(500)
-
-
-
396,194
-
-
396,194
3,503,629
1,681,730
(680,484)
-
4,504,875

Restricted Funds – Company

estricted Funds – Company
NERS scheme
Cycle Track
Athletics Track
Other restricted project income
Donations
Other grant Income
Total		 At 1
January
2024
Incoming
Resources
Outgoing
Resources
Transfers
At 31
December
2024
£
£
£
£
£
-
265,596
(265,596)
-
-
1,573,153
70,555
(54,136)
-
1,589,572
-
651,670
(1,852)
-
649,818
1,495
297,215
(298,710)
-
-
-
500
(500)
-
-
-
396,194
-
-
396,194
1,574,648
1,681,730
(620,794)
-
2,635,584

NERS scheme

The Charitable Company received grant funding from the Welsh Government in relation to the National Exercise Referral Scheme.

Severn Centre Building Fund

The buildings were funded by grants and are restricted for use by the Severn Centre as leisure facilities. The balance is reducing as the buildings depreciate and agrees to the balance of the relevant tangible fixed asset.

Cycle Track

Grants and community funding have been received to build a 1km cycle track in Hereford.

Athletics Track

Grants have been received to build an athletics track in Hereford.

Other restricted project income

The charity is in receipt of a number of smaller grants and income, which are restricted for use towards the costs of the projects to which the grants or income relate to.

Other grant income

Various grants are received from the local councils and other sources to facilitate operational changes at the applicable sites.

Page 38

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

25. RECONCILIATION OF MOVEMENTS IN FUNDS - continued

Unrestricted Funds – Group

At 31
At 1 January Incoming Outgoing Gains, losses, December
2024 Resources Resources & transfers 2024
£ £ £ £ £
Unrestricted pension 1,983,000 - 4,024,000 (4,497,000) 1,510,000
Unrestricted general 1,629,818 17,821,409 (18,894,073) - 557,154
Total unrestricted 3,612,818 17,821,409 (14,870,073) (4,497,000) 2,067,154

Unrestricted Funds – Company
At 31
At 1 January Incoming Outgoing Gains, losses, December
2024 Resources Resources & transfers 2024
£ £ £ £ £
Unrestricted pension 1,983,000 - 4,024,000 (4,497,000) 1,510,000
Unrestricted general 1,563,206 17,552,910 (18,634,222) - 481,894
Total unrestricted 3,546,206 17,552,910 (14,610,222) (4,497,000) 1,991,894

26. COMPARATIVE YEAR MOVEMENTS IN FUNDS

Group

Group
Unrestricted Restricted
Funds Funds Totals
£ £ £
At 1 January 2023 4,145,067 2,404,513 6,549,580
Incoming resources 15,695,263 2,179,402 17,874,665
Outgoing resources (13,387,512) (1,080,286) (14,467,798)
Actuarial gains on defined benefit schemes (2,840,000) - (2,840,000)
At 31 December 2023 3,612,818 3,503,629 7,116,447
Company
Unrestricted Restricted
Funds Funds Totals
£ £ £
At 1 January 2023 4,097,456 415,838 4,513,294
Incoming resources 15,458,108 2,179,402 17,637,510
Outgoing resources (13,169,358) (1,020,592) (14,189,950)
Actuarial gains on defined benefit schemes (2,840,000) - (2,840,000)
At 31 December 2023 3,546,206 1,574,648 5,120,854

Page 39

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

26. COMPARATIVE YEAR MOVEMENTS IN FUNDS – continued

Restricted Funds – Group

estricted Funds – Group
NERS scheme
Severn Centre Building Fund
Cycle Track
Other restricted project grants
Total
estricted Funds – Company
NERS scheme
Cycle Track
Other restricted project grants
Total		 At 1
January
2023
Incoming
Resources
Outgoing
Resources
Transfers
At 31
December
2023
£
£
£
£
£
-
197,635
(197,635)
-
-
1,988,675
-
(59,694)
-
1,928,981
-
1,680,302
(107,149)
-
1,573,153
415,838
301,465
(715,808)
-
1,495
2,404,513
2,179,402
(1,080,286)
-
3,503,629
At 1
January
2023
Incoming
Resources
Outgoing
Resources
Transfers
At 31
December
2023
£
£
£
£
£
-
197,635
(197,635)
-
-
-
1,680,302
(107,149)
-
1,573,153
415,838
301,465
(715,808)
-
1,495
415,838
2,179,402
(1,020,592)
-
1,574,648

Restricted Funds – Company

NERS scheme

The Charitable Company received grant funding from the Welsh Government in relation to the National Exercise Referral Scheme.

Severn Centre Building Fund

The buildings were funded by grants and are restricted for use by the Severn Centre as leisure facilities. The balance is reducing as the buildings depreciate and agrees to the balance of the relevant tangible fixed asset.

Cycle Track

Grants and community funding have been received to build a 1km cycle track in Hereford.

Athletics Track

Grants have been received to build an athletics track in Hereford.

Other restricted project income

The charity is in receipt of a number of smaller grants and income, which are restricted for use towards the costs of the projects to which the grants or income relate to.

Page 40

continued...

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

26. COMPARATIVE YEAR MOVEMENTS IN FUNDS – continued

Unrestricted Funds – Group

At 31
At 1 January Incoming Outgoing Gains, losses, December
2023 Resources Resources & transfers 2023
£ £ £ £ £
Unrestricted pension 4,747,000 - 76,000 (2,840,000) 1,983,000
Unrestricted general (601,933) 15,695,263 (13,463,512) - 1,629,818
Total unrestricted 4,145,067 15,695,263 (13,387,512) (2,840,000) 3,612,818
nrestricted Funds – Company
At 31
At 1 January Incoming Outgoing Gains, losses, December
2023 Resources Resources & transfers 2023
£ £ £ £ £
Unrestricted pension 4,747,000 - 76,000 (2,840,000) 1,983,000
Unrestricted general (649,544) 15,458,108 (13,245,358) - 1,563,206
Total unrestricted 4,097,456 15,458,108 (13,169,358) (2,840,000) 3,546,206

Unrestricted Funds – Company

27. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Group

Fixed assets
Current assets
Current liabilities
Long term liabilities
Accruals and deferred income
Pension asset

ompany
Fixed assets
Current assets
Current liabilities
Long term liabilities
Accruals and deferred income
Pension asset
 Unrestricted
funds
£
10,378,573
1,993,254
(3,690,779)
(8,070,171)
(53,723)
-

557,154
Unrestricted
funds
£
10,364,330
1,889,387
(3,647,927)
(8,070,173)
(53,723)
-

481,894		 LGPS
£
-
-
-
-
-
1,510,000
1,510,000
LGPS
£
-
-
-
-
-
1,510,000
1,510,000		 Restricted
funds
£
4,108,681
396,194
-
-
-
-
4,504,875
Restricted
funds
£
2,239,390
396,194
-
-
-
-
2,635,584		 31.12.24
Total
funds
£
14,487,254
2,389,448
(3,690,779)
(8,070,171)
(53,723)
1,510,000
6,572,029
31.12.24
Total
funds
£
12,603,720
2,285,581
(3,647,927)
(8,070,173)
(53,723)
1,510,000
4,627,478		 31.12.23
Total
funds
£
13,737,649
3,310,788
(3,515,949)
(8,320,798)
(78,243)
1,983,000
7,116,447
31.12.23
Total
funds
£
11,801,327
3,201,514
(3,465,945)
(8,320,798)
(78,243)
1,983,000
5,120,855

Company

Page 41

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

28. EMPLOYEE BENEFIT OBLIGATIONS

The Charitable Company has employees who are admitted into one of three Local Government Pension Schemes administered either by Worcestershire County Council, Rhondda Cynon Taf County Borough Council or Shropshire County Council. The deficits for past service up to the point of transfers have been guaranteed by Rhondda Cynon Taf County Borough Council and Shropshire County Council respectively.

Halo participates as an employer in the Gloucestershire Local Government Pension Fund under a passthrough arrangement with Greenshaw Trust and the liability for those members therefore sits with the Greenshaw Trust, as a result there is no provision in these financial statements

The pension costs and provision for the year ended 31 December 2024 are based on the advice of a professionally qualified actuary. The most recent formal valuation is dated 31 March 2022 for all 3 pension funds.

The amounts recognised in the balance sheet are as follows:

Defined benefit Defined benefit
pension plans
31.12.24 31.12.23
£ £
Present value of funded obligations (21,638,000) (24,342,000)
Fair value of plan assets 32,846,000 30,242,000
11,208,000 5,900,000
Present value of unfunded obligations - -
Surplus/ (Deficit) 11,208,000 5,900,000
Impact of asset ceiling (9,698,000) (3,917,000)
Surplus/(deficit) recognised 1,510,000 1,983,000

The amounts recognised in the Statement of Financial Activities are as follows:

Current service cost
Past service cost
Net Interest from net defined benefit asset/liability
Administration expenses
Effect of curtailments
Actual return on plan assets		 Defined benefit
pension plans
31.12.24
31.12.23
£
£
375,000
386,000
-
-
(271,000)
(225,000)
1,000
6,000
-
-
105,000
167,000
5,201,000
2,221,000

Page 42

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2024

28. EMPLOYEE BENEFIT OBLIGATIONS - continued

Changes in the present value of the defined benefit obligation are as follows:

Opening defined benefit obligation
Current service cost
Change in financial assumptions
Past service cost
Contributions by scheme participants
Interest cost
Remeasurement (gains) / losses
Curtailments
Benefits paid
Changes in the fair value of scheme assets are as follows:
Opening fair value of scheme assets
Interest on plan assets
Contributions by employer
Contributions by scheme participants
Remeasurement gains / (losses)
Administration expenses
Benefits paid
The amounts recognised in other comprehensive income are as follows:
Remeasurement gains/ (losses)
Cumulative amount of actuarial
remeasurement losses		 Defined benefit
pension plans
31.12.24
31.12.23
£
£
24,342,000
22,684,000
375,000
386,000
(4,152,000)
(162,000)
-
-
124,000
125,000
1,121,000
1,069,000
315,000
593,000
-
-
(487,000)
(353,000)
21,638,000
24,342,000
Defined benefit
pension plans
31.12.24
31.12.23
£
£
30,242,000
27,431,000
1,392,000
1,294,000
212,000
243,000
124,000
125,000
1,364,000
1,508,000
(1,000)
(6,000)
(487,000)
(353,000)
32,846,000
30,242,000

31.12.24
31.12.23
£
£
5,201,0001,077,000
(5,578,000)
(10,779,000)

Page 43

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

28. EMPLOYEE BENEFIT OBLIGATIONS - continued

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Defined benefit Defined benefit
pension plans
31.12.24 31.12.23
Equities 63.57% 65.10%
Government bonds 3.83% 3.23%
Corporate bonds 5.07% 4.07%
Other bonds 6.90% 5.80%
Cash/liquidity 0.97% 1.00%
Property 11.33% 6.57%
Other 8.33% 14.23%
100.00% 100.00%
Principal actuarial assumptions at the balance sheet date:
31.12.24
31.12.23
Discount rate 4.95 – 5.55% 4.40 – 4.80%
Rate of Inflation 2.60 – 2.70% 2.40 – 2.60%
Future salary increases 3.85 – 4.20% 3.65 – 4.10%
Future pension increases 2.60 – 2.70% 2.40 – 2.70%

The following table sets out the sensitivity analysis produced by the actuary reporting in respect of the Worcestershire County Council Pension Fund:

Change in assumption at 31 December
2024:		 Approximate %
increase to Defined
Benefit Obligation		 Approximate
monetary amount
0.1% decrease in Real Discount Rate 2% 277,000
1 year increase in member life expectancy 4% 480,000
0.1% increase in Salary Increase Rate 0% 11,000
0.1% increase in the Pension Increase Rate 2% 273,000

Page 44

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

28. EMPLOYEE BENEFIT OBLIGATIONS - continued

The following table sets out the sensitivity analysis produced by the actuary reporting in respect of the Rhondda Cynon Taf County Borough Council Pension Fund:

+0.1% p.a.
Base figure
-0.1% p.a.
Adjustment to discount rate
Present value of total obligation (£) 8,354,000
8,524,000
8,964,000
% change in present value of total obligation (2.0%) 2.0%
Projected service cost (£) 127,000
132,000
137,000
Approximate % change in projected service cost
(3.69%)		 4.0%
Adjustment to salary increase rate
Present value of total obligation (£) 8,541,000
8,524,000
8,507,000
% change in present value of total obligation 0.2% (0.2%)
Projected service cost (£) 132,000
132,000
132,000
Approximate % change in projected service cost
0%		 0%
Adjustment to pension increase rate
Present value of total obligation (£) 8,677,000
8,524,000
8,371,000
% change in present value of total obligation 1.8% (1.8%)
Projected service cost (£) 137,000
132,000
127,000
Approximate % change in projected service cost
4.0%		 (3.69%)
Adjustment to mortality age rating assumption
Present value of total obligation (£) 8,729,000
8,524,000
8,319,000
% change in present value of total obligation 2.4% (2.4%)
Projected service cost (£) 136,000
132,000
128,000
Approximate % change in projected service cost
3.2%		 (3.2%)
he following table sets out the sensitivity analysis produced by the actuary reporting in respect of the
hropshire County Pension Fund:
Central + 0.5% discount +0.25% 1 year increase
rate inflation in life
expectancy
£ £ £ £
Liabilities
1,106,000		 1,027,000 1,148,000 1,128,000
Assets
(1,363,000)		 (1,363,000) (1,363,000) (1,363,000)
Deficit/(surplus)
(257,000)		 (336,000) (215,000) (235,000)
Projected service
18,000		 19,000 19,000 18,000
cost for next year
Projected interest
(14,000)		 (12,000) (12,000) (13,000)
cost for next year

The following table sets out the sensitivity analysis produced by the actuary reporting in respect of the Shropshire County Pension Fund:

Page 45

HALO LEISURE SERVICES LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2024

28. EMPLOYEE BENEFIT OBLIGATIONS - continued

Amounts for the current and previous four periods are as follows:

31.12.24 31.12.23 31.12.22 31.12.21 31.12.20
Defined benefit pension plans £ £ £ £ £
Defined benefit obligation (21,638,000) (24,342,000) (22,684,000) (42,588,000) (41,627,000)
Fair value of scheme assets 32,846,000 30,242,000 27,431,000 29,882,000 26,345,000
Surplus/(deficit) 11,208,000
5,900,000
4,747,000		 (12,706,000) (15,282,000)
Experience gains/(losses) 5,201,000
1,077,000		 18,334,000
3,458,000		 (5,666,000)
Impact of asset ceiling (9,698,000) (3,917,000)
-
-
-
Surplus/(deficit) recognised 1,510,000
1,983,000
4,747,000		 (12,706,000) (15,282,000)

In addition to the accounting disclosures under FRS102, it is important to appreciate how the LGPS pension schemes work and how ongoing contributions requirements are calculated to ensure the schemes remain or become fully funded in the long term.

FRS102 is an accounting standard in relation to the calculation and disclosure of company pension scheme liabilities. It requires that employers make full provision for all pension scheme liabilities on their balance sheet – both in respect of any outstanding employer contributions and any attributable share of the pension scheme actuarial deficit in respect of defined benefit schemes.

The FRS102 pensions asset/liability calculation used for accounting purposes are based largely on the actuarial ongoing basis calculations (such as inflation, life expectancy etc) but crucially differ in one key respect – that of the discount factor used to arrive at net present value of any surplus or deficit. Whereas the “ongoing basis” uses estimated actuarial investment returns based on past and expected future performance, the FRS102 calculation uses a return based specifically on AA rated Government gilts. In recent years, the FRS102 calculation has resulted in a significantly lower discount factor than the ongoing basis – and therefore much higher net present pension scheme deficits.

The FRS102 asset/liability is therefore based on the latest tri-annual ongoing basis calculations but is re-calculated each year for the purposes of the annual accounts by the scheme actuaries based on prevailing discount factors.

29. RELATED PARTY DISCLOSURES

The parent Charitable Company, Halo Leisure Services Limited, has taken advantage of the exemption afforded under FRS 102 from disclosing transactions and balances with its wholly owned subsidiary, Severn Centre Trust Ltd, within these consolidated financial statements.

30. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the Board of Trustees and management team who are responsible for the strategic and operational decisions of the Charitable Company.

31. CONTINGENT LIABILITIES

Performance Guarantees

The Charitable Company has contingent liabilities in respect of Performance Guarantees amounting to £276,500 with Rhondda Cynon Taff C.B.C (2023: £166,600) and £85,000 held with Shropshire County Pension Fund (2023: £85,000).

32.

CAPITAL COMMITMENTS

At 31 December 2024 the group and charitable company had capital commitments to the value of £nil (2023: £424,139) in respect of fitness equipment.

Page 46