1610 Limited Report ofthe Trnstees. Strategie Re￿rt and Audited FinaDciAI Statements For the Year Ended 31 Marth 2022 Registered Charity Number 1130010 Registered Company Number 06727055 (England 4nd Wgles) llllll *ABIFL141H4 22112f2072 COMPANIES HOUSE A14 W228 1610 Limited Contents ofthe Financial St#¢ements For th¢ Year Ended 31 M*r¢h 2022 Reference and Administrative Inforn)ation Trustees, Annual Report (Incor￿)rating the StrAtegic Report) Report of the Independent Auditors 15 Statement of Financial Activities (Incorporaling the Incowne and Expendilure Account) 19 Balance Sheet 20 Statement of Cash Flows 21 Not¢s to the Financial Statements 23 1610 Limited Reference and Administrative Inforniatio For the Year Ended 31 March 2022 TRUSTEES: Mr M Winlow Mr J Sladden {re5igned 26 July 2022) MrRBurt SECRETARY: MrPFox REGISTERED OFFICE: Trinity Sports & Leisu Chilton Street Bridgwater Somerset TA6 3JA REGISTERED COMPAKY NUMBER: 06727055 (England and Wale5) REGISTERED CHARTTY NUMBER: 1131XIIO AUDITORS: Acmole Chartered A¢¢ountants and Ststutory Auditors Stsfford House BlackbriM)k Park Avenue Taunton Somersei TAI 2PX BANKERS: NatW¢st 26- 27 Fore Street Taunton Somerset TAI IJQ SOLIcrroRS: The Legal Director 107 Cheapside London EC2V 6DN 1610 Limited Trustees, Annual Report Oncorporating the Strn¢egi¢ Report) For the Year Ended 31 Marcb 2022 The Trusiees, who are also Directors for the purposes of company law, present their annual rew)rt and their strategic report with the financial statements for the year ended 31 March 2022. Introduction from our CEO. Tim Nightingale Welcome to the 1610 Limited 2021122 Trustee report. Th¢ 2021r22 1610 Leisure Trust year proved to be equally as challenging as the pervious COVID dominated year. On reflection, it is wiihout doubt that ihe COVID pand¢mi¢. th¢ associated illness and successive lockdowns dramatically changed the landscape of the UK in iemis of leisure business operations. The leisure sector has experienced the full pressu￿$ of social Change impacting on the supply side and demand side of the Trust. Post COVID, community and personal needs have altered. These have been re-shaped. with the public now looking at other forms of health and wellbeing provision. These include th¢ naturnl environment and the wider us¢ of on-line material available, on demand. in your home. Key assets, such as swimming pools and specialist sports spaces were under higher demand. It is evident that these spaces are uniqu¢ and irreplaceable and as such th¢ir importan¢¢ to the 1610 Trust business has grown. The supply side has s¢en ever present pressures on the ditTi¢ulti¢s of securing key busines5 materials. such as pool chemicals. The COVID impact on supply chains has led to short supply and increased costs. In temis of workforce issues 1610, as have many UK busin¢sse& has found recruitment and ret¢ntion of staff to be a huge challenge. Particularly in areas thai ne￿1 ready and qualified staff. Against this backdrop 161 O Leisure Trust set out lo re-esrablish and re-shape its charitable business. For the Trust Board and th¢ senior management team the business f￿vS has had to be maintaining viability and solvency. Key to the recovery and future success has been the requirement to review and re-define how 1610 Limited will mov¢ forward as a Trust and a ¢haritable enterpris¢. As the threats of COVID diminished. February 2022 ushered in a new poteniial busin¢ss-d¢vastating external pressure. The Russia l Ukrdine conflict has geneTated a massive short-tO•medium terni threat to th¢ l¢isvre sector and wider public. The staggering increase in energy costs in the UK threatens to overwhelm Ihe operation of '¢nergy hungry. assets such as switnTning wols. Aligned io this the pardllel threat of recession may impact on the disposable income of the public and therefore has the potenlial to reduce demand for leisure. h¢alth and wellbeing services and facilities. BREXIT. COVID and Ukrain¢ l Russia war combined to ¢r¢at¢ a highly toxic climate in whi¢h to try and operate a charitable company. 1610 Leisure Trust does noi stand alone in facing a highly unstable world and (luctuating business markets. There have been exceedingly difficult and tough business decisions to make in 2021122. 11 is likely that this environment will remain for the near future. The Trust Board and Senior Leadership TeaTn (SLT) do wish to tak¢ this Opportunity to acknowledge. thank and recognise all the people working for or supporting 1610 Leisure Trusl in 2021122. Structure. Governance and Manydgement Governing Document 161 O Limited is a charilable company limited by guaranie¢. in¢orporat¢d on 17 October 2008. and registered a charity on 5 June 2009. The wmpany was established under a Memorandum of Association which establishes the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribut¢ an omount not exceeding £1. 1610 Limi¢ed Trustees, AnnuAI Report Oncorporating ihe Stralegic Report) For the Year Ended 31 March 2022 Principal A¢tivities In 2021122 th¢ Trust operated seven leisure centres on behalf of I￿al Councils in the Southwest UK. Together with 1610 owned sites these facilities provide community access to sp)rting / leisure / fitness service5 ensuring local rural facilities are available to everyone and the promotion of a fit and healthy lifestyle. Completnenting the leisure contracts are four 1610 owned facilities and servi¢es that operat¢ spons developmenL health and wellbeing programmes. OrEanisational Stru¢ture 1610 had 3 Board members in 2021122. The Board nornially meets four times per annum. During the COVID 19 Pandemic the Trust Board has been convened on a regular basis. through Zoom meetings. to update Ttustees on the company position and seek approval for action. The Board is s¢rvi¢ed by a Company Secreiary who is also the 1610 t£gal Advisor. Specialist advisers to 1610 ¢.g.. Accountants l Legal attend Board meetings to advise Trustees as required. The Board delegates responsibility for daily operations io the Chief Executive and the Senior Leadership Team (SLD. This team has responsibility for the delivery of contra¢tual out¢om¢s. service sp¢¢ifi¢ations and to agree on Key Perfotlnance Indicators. Further pathways of del¢gaiion are in pla￿ from the CEO I SLT through to the wider management Team to operdte the Trust business units across multiple venue5 in the Southwest. Operational standards are defined ihrough nationally recogni5ed quality leisure management systems/fram¢works that comprehensively d￿UMent activities and processes for Staff at all levels. Recruitment and Appointment to the Trusi Board Directors of the company are also ¢harity Trustees for the pury)oses of charity law. They are elected to serve for 3 years retiring on the third anniversary of their appointm¢n¢ after whi¢h they may b¢ re-elected for a further 3 years. Potential new Tru5tee5 are identified through networking and r¢wmm¢ndation' it is important ¢0 us that Trustees understand our ethos from the outset and are passionate about what we do. 1610 has faced extraordinarily complex and dilTicult challenges during the past 18 months. In 2019 the Trust Board agreed to s¢¢k a merger or partnership with a 'third party. charitable organisation. Recruitment of new Trustee5 was put on hold as this option was explored. The COVID pandemic and economic uncertainty has not created an environment to successfully recruit new Board members. This is a difficulty that 15 acknowledged acros5 the UK charitable sector. Post pandemic, it is evident that the Board and the Twst business needs to be restructured and re-shaped to r¢fl¢¢t its reduced scale and siz£. New Trusiee recruitment will be a priority for 2022r23. Trustee Induction and Trgining New Trustees are invited to m¢et the Senior Leadership Team and Board members and are given a short induction at Trinity Sport and Leisure cenlre HQ to advise thetn on the operdtions. activitie5. and key personnel within the Trust. These sessions a￿ led by the Chief Executive and other key senior staff and include- A welcome pack.. including materials related to the Trust operdtions and governance (including the financial accounts). legal status and guidan¢¢ from the Charity Commission on the responsibiliti¢& obligations. and liabilities of becoming a Trustee. Trustecs are offered the chance to shadow a Trust Board meeting New Trustees are given an opportunity to Vislt one of the main Trust leisure operation5 lo familiarise Ih¢mselves with the core work and to meet Trust staff. New Truste¢s are also encouraged lo contaci the Chair of the Trusi a fellow Trustee. or the Company Secretary to gain a further insight into the day- to* day business and eth05 of the organi5ation. Trust¢¢s are regularly updated on trdining OPFK)rtunities at Board sessions including key functions around safeguarding and health and safety. 1610 Limited Trustees, Annual Report Oncorporating the Strategi¢ Report) For the Year Ended 31 March 2022 All Trustees are given an induction as part of th¢ Twst health and safety policy. Core training on healthlsaf¢ty and safeguarding is delivered to the Board on an annual basis.or as and when significani changes to poli¢y or UK Law dictaie th¢ n¢¢d for a refresh. The recruitment process and associated documents are due to be updated in 2022123. Our Aims and Objectives 161 O Trusi purposes are defined in the objects set out in the ei)mpany's Memorandum of Association and can be summarised as follows= The advan¢em¢nt and supwrt of education, cultural services, and other related provision through direct management of facilities or ￿lated activity programmes. The delivery and management of leisu￿. recreation, and 5POrts facilities particularly with a focus on provision for 'hard to reach. groups and key target groups thai have barriers to participation. The promotion and delivery of health and wellbeing progrdmrnes with an emphasis on sport and physical activity. The advancement of physical educati{￿ and sporl. Other charitsble prop￿81$ that have public benefit which are consistent with the core objectives of the trust. 1610 Trust seeks to deliver high quality services to Somerset and wider Southwest communitie5. The core aims of our work is to develop 1610 facilittes and programm¢s to improve health, 5POrting I leisure abilities and participation- contribute to raising the quality of life for the general community and supporting schools in their development of young people. Throu8how this work, Trustees rewgnise ihat there is a need to ensure that the Trust observes Charity Commission guidance on public b¢n¢fit to ensu￿ alignment with activilies and the core Trust aims and obj¢ctiv¢s. How activities deliver publie beDefit 1610 serves a rural w)pulation in Southwest England through a network of leisure facilities. Four of th¢ siles ore dual-use in nature and this model maximises the use of leisure assets on school sites. This model often provide5 i501ated or small rural communilies wilh access to local sports. health. and learning facilities I programme5 where there would be insufficient volumes of ￿ople to make dedicated leisure centres viable. Through this network of centres. 1610 d¢liv¢rs a diverse programm¢, often being ask¢d to target hard to reach groups, those that are financially or social excluded. isolated communities or to work in areas with significant d¢privation issues. 1610 works with groups and individua15 creating many examples of life changing exp¢riences. They are often achieved ihrough using leisure / sport I health and filness a5 a catalym for alterin8 the direction of a person's life or by providing new opFK)rllJnities for a whole community. Strategic Report Achievement 4lld PerforniaD¢e MaDaging delivery of our aims In nom)al operating years Senior Managers and the Trustees review the Trust aim5. objectives and delivery on an annual basis against the yearly business plan ihat includes contractual targets and the annual budgets. Each department of the Trust produces annual work stream plans to ¢nable successful programme delivery and overall development of the Trust business. Through ihe UK Growth Accelerator Pro8ramme. 1610 fully embedded the Vision Orbit (VO) straiegic business tool to review and development organisations perforniance. The annual VO. Vital Few and Single Page Plan forn) the basis of business planning within ihe company. Staff members at every level of the organisation use this tool to align activities. 1610 Limited Tru5tees' Annual Report Uncorpor#tillg the Str4tegi¢ Report) For the Year Ended 31 March 2022 During the 2021122 year the Trust managed a s¢ri¢s of public sector setvice contracls in Southwest England: A ten-year leisure contract with Torridge District Council to operate four leisure centre5 in North Devon. TDC confirnjed in 2021122 that is will be moving this contrnct into an 'arni's length, Council led initiative from April 2022. A ten-year contract with Futures for Somers¢1 to operate two dual use leisur¢ facilitie5 as part of th¢ PFI Building Schools for the Future initiative in Bridgwater. Somerset. In 2020 the Futures for Somerset leisure contract was extended for a further five years to end in September 2025. A ten-year contract with Dorset Council to operate th¢ £8.Sm Dorchester Leisur¢ Centr¢ in t)or¢h¢st¢r. Dorset Council has prow)5ed to extend their contrdct for the operation for Dorchester Leisure Centre beyond October 2022 - to October 2024. The status of each contract is set out in the key activities section below. Each contract has a comprehensive perforniance frawnework that is Tnonitored quarterly l arknually by the Senior Leadership Team and the various Council contract commissioning i¥)dies. What sets 1610 apart from other fitnes￿le1Sure providers is the changing rol¢ of the Trust- it is much more than just management of leisure centres. Since 2012 the TTUSt has actively pursued a wider community role, by increasing the choice of activities from healthy living initiatives. adult learning programmes lo workforc¢ development and training for the leisure industry. Health and wellbeing are however the plarform and common denominator to the activities. and the reason 1610 has an enorn]ous impact on people's lives. Key KPIS for the Trust are: Number of people attending our sites. Meeting fitness standards. Number of customer complaints. linked to customer satisfaction. Health & Wellbeing attendances. Number of effective community and club partnerships. Number of children enroll¢d on Swim Programmes. Number of Trust fitness members. The Focus ofwork 2021n2 Financial Risk Management l Busin￿ Stability ' COVID 19 in ihe UK continued to impact on the Trust into 2021f22. Emergence from COVID legislation was in July 2021. The Trust Business plan was simplistic in that th¢ key aim was to resurrxt th¢ company, tsckling Significant risk and financial pr¢ssur¢5-. In the early part of the year national 'lockdowns.' social distancing and various COVID requirements limited 1610 site operdtions and population movement. Increased operating ¢osts to enable enhanced cleaning and sanitisation of ¢ntir¢ facilities. Staff sickness increased through COVID infection. Managing key changes to HR practices linked to the newly introduced Furlough Scheme launched in May 2020. The major focus throughout the 2021122 year for the Trustees, SLT and stsff teams of th¢ 1610 was stabilising and recovering the business amid the unique chaos Created by the COVID pandemic. 1610 Limited Trustees, Annual Report Oncorporating the S¢rattEiC Report) For the Year Ended 31 M2r¢h 2022 Key activi¢i¢s 2021n2 To obtalD 801/10 of Bu5ine&g back p05t COVID The &iTn to recover business to 81P/o had limited success. Swimrning progrdmrne5 for children continued to boom with ihe laient demand created by COVID taking actual perfoTmance above IOOO/o compared to the last full year. Only two sites a¢hi¢ved 8￿/1 pf fithess membership returns. The impact of COVID and changing habits are key factors. Group Exercise also struggled io return to past levels. To re-launch & re-package 1610 Health and Wellbeing Offer The communÉty need for increased mentRI ￿sEllence and mental health issues has been at the heart of the 161 O work. 1610 has sought to upskill staffthrough exlemally funded irdining piogramme5 to deliv¢r specialist wellbeing workshops and events. Whilst traditional group exer¢i5e programmes have not returned th¢ growth in Pilates, yog4 Tai Chi. and meditation classes reflects the growing demand for mental r¢sili¢n¢e help. New activities have been introduced to offer oF*sity and dIa￿teS control education programmes. To begin a Digital Tran5forniationAI Sirategy The Trust has continued work to increase business effici¢n¢y, reduce costs, and improve customer ¢nga8¢menl through digital ¢on¢epts. In particular. the Trust has pursued the re-posilioning of back- o￿lCe systems to Cloud based mixlels. Position all staff to embody the 1610 DNA As with all seciors in the UK, recruitsnent aTkd retenlion of staff has been a very problematic issue foT 1610 Ltd. The lack of suitable qualified stsff for tssks such as lifeguarding. swim teaching and sports coaching has impa¢t¢d on the ability to r¢¢over the business. It has also increased ¢05ts as refr¢sh¢r or new training is ￿quired to upskill existing and new staff. The Trust is exploring the re-launch of the apprenti¢eship mod¢l. In house training for all levels of staff has been an extensive activity across the year to try and re- establish the ideals and core philosophies of ihe Trust. Position 1610 as att environmentally cons¢ioMs busines5 The global drive to switch to become ￿ ¢¢O-fri¢ndly business is an ongoing aspiration. In the year 1610= Worked on the r¢duction of single use plastics across the business 2. Removed plastic shoe covers for all pool environments 3. R¢du¢¢d stsff travel by 650/0. through digital communications 4. Rolled out the us¢ of electric and hybrid vehicles lo ￿plaCe diesel vehicles S. Commissioned Lean Energy to review the 1610 sites and recommend energy savings approach¢s to siie operations looking to move swimming pools to ¢arbon neutral energy soluiion and planl Evolve Ill I610 own facilities to be profitable Throughout 2021122 1610 has been working to reduce the reliance on COVID government grants and support funding. The challenge to reGov¢r the business to 80•/tr+ of pre COVID levels was at the hvdrt of this approach. 1610 ended 2021122 with a business surplus on trading. In reality much of this succes5 was underpinned by the external financial support that the Trust secured. The larger 1610 sites did return to profitability in the year. However, the smaller facilities based in more rurnl communities have struggled to recover sufficient business to be viable. 1610 Limited Trustees. Annual Report UneorporntiDg the Strategi¢ Report) For the Year Ended 31 March 2022 161 O continued to review the workforce in 21122 to optimise stslTing in response to scarcity of fresh staff and financial controls. At the beginning of the COVID 19 pandemic 161 O employed 398 staff. it reduced the headcount of ihe company to approximately two hundred people by March 2021. By th¢ end of 2021122. the 1610 headcount had fallen to 185 employees. IDve$tmeni Policy Most of the funds the Trust generates on an annual basis is committed to annual operations. It is unlikely? in the short or medium terni, that th¢r¢ will be significant funds generated for long temi investment. The Board is keen to make provision for the dev¢lopm¢nt and growth of the reserve fund however, it is important that the Trust uses its cash to develop business and support the agreed charithble outcomes. Cash in hand is held in a special interest-bearing account with Natwest. The bank offets a basi¢ treasury service to maximis¢ the inveslment of these funds whi15t covering day to day operational business needs. Reserve5 Policy The Trustees recognise the requirement to establish a reserves policy. in setting the reserves policy the Trustees have Considered the need to manage resources for the benefit of the charity's aims and objectives and to maintain financial stability. considering ihe risks and potential impact in the current economic environment. The Trust Board r¢vi¢w the res¢tve policy annually and has a policy of holding a minimum Reserve of £450,000. As income covers operdtional costs the need to maintain rese￿e$ is based on any unforeseen call on funds. and for future capital and operdtional exp¢nditure. This has b¢¢n d¢tern)ined based on the Trust Risk Register. identifying the fiscal impacl of these risks ￿Ing realised, and future of the Trust. This level of reseryes is acceptable a5 it meets the minimum reserves policy and allows the Trust to set asid¢ resources to meet the requirements of the National Living Wage and for future tnvesthient projects. For the first time in 1610 operating history the Reserves policy was tested by COVID and the economi Conditions. The Trust had iotal resmes beyond the minimum level and levels of cash reserve5 never fell below £300,000 in Ihe year. Key Management Remuneration and Perfom•ttce Criteria Remuneration for all job roles is evaluaied according to the role and level of restKirisibility- and this applies to members of SLT (Senior L£adership Team), and the CEO. CEO remuneraiion is separately reviewed. set by the Trustees and agreed annually by the Board. SLT and the CEO have clear objectives both in their area and at a strategic level. thi5 is incorporated into the Trust's Vision Orbii Business Plan. These objectives are reviewed on a regular basis both at SLT level and at regular'job chats." which are th¢ ¢quivalent to appraisals. The CEO reports io the Board on the objectives together with perfornian¢¢ of those objectives. No general pay increases were awarded beyond the legal tEquir¢m¢nts in 2021122. The itnpact of Living wage remains a major annual financial pressure for the Trnst. Maintaining pay diff¢r¢ntials is a ditTicult balancing act giyen the need to compele within an increasingly price aggressive sector. 1610 has faced significant pressure in pay due lo the changes in the employwnent market and workers moving across s¢¢tors for higher paid ewnployment. Given the current financial position of1610 there is little OP￿rtunity to increase pay beyond sthtutory awards. Employee Infomation 1610 is dependent on the skill and enthusi&sm of its employees to achieve its business and charitable objectives. The Trusiees are therefore committed to effective employee communication and ¢qual opportunities. Th¢ selection, training development and promotion tx)licies ensure equal opportunities for all employees regardless of gender, marital status, race. age, or disability. Internal communications are designed to ensure that employ¢¢s are well infornied about the activities of the charity and staff attitudes are researched so that the Senior Leadership Team can respond positively to the ideas and needs of employees. 1610 Limited Trustees, Annual Report (Ineoryor4ting the Strategic Report) For the Ye•r Ended 31 March 2022 The use of Workplace, a Facebwk product for internal business communication5. has had a positive impact on staff engagement. Eighty perc¢nt of staff hav¢ a¢tive accounts, and this t(K)I has enabled all staff, casual and remote based people, to access 1610 infornjation and wmmunications. During 2021122 1610 removed most staff e mail facilities and now works entirely on a Workplace communications model. The Trust continues to 'buy-in' external support for HR matters through Mentor HR services. Recruitm¢nt and retention are signifi¢ant pressures for all UK business sectors wst COVID. For 1610 Itd this had been one of th¢ top five risk areas throughout th¢ year. In 2021122 There has iKen an in¢reasing reliance on more part time and zero hrs. roles. The ability to flex stsff teams as the Trust works to bring sites back to lOO% operations post the pandemic has b¢¢n an essential tfy)l in the recovery of the business. StatTing is the major costs in leisure sector companies and 1610 has set an agenda to aspire to have fewer. better paid staff in the future. The nature of employment in this sector is also changing. More staff ar¢ moving to self -employed roles such as PT trainers I Instructors. Given the financial pressures. the Trust management Team has also been focussing on ¢nsuring that the optimal management Teams are deployed at Sites. The Trust is reviewing the Central Management Team. as this overhead is potentially a substantial financial risk for th¢ business. StaiTing leve15 at the Trust continue to reduce throughout the year. In April 2021. 1610. employed two hundred staff, at year end the Trust payroll had reduced to 178 people. This trend will continue into 22123 as the trust streamlines operations and exits non-profitsble sites. G¢nd¢r Pay Gap reporting is no longer a requirement for 1610, as it does not meet the 250-employee threshold. Financial Review Full financial details are in the audited accounts. The headline financial inforniation for 2021122: As 1610 business returned over the year the company turnover increas¢d from £3.502,797 Tn 20f21 to £4.383.312 year end March 2022. Th¢ most notable chang¢ in income was th¢ r¢tum of in¢om¢ g¢n¢rated frorn the business vs grants I Government support. Expenditure also returned to more nomal profiles. However, the Trust experienced higher than ¢xp¢¢ted property costs linked to the re-opening of sites and ass(Kiated plant failures. Expenditure was controlled via th¢ various mechanisms set out in the straiegic report. The Trust conlinved to pay down creditor liabilities and is noi seeking to increase bo￿oWIng at this time. The Trust Board still aims is reduce comm¢r¢ial borrowing to £0 by the end of 2022123 The Trust began repayments on the COVID Bounce Back Loan in Dec 2021. The Trust g¢n¢rated a surplus for th¢ 21r22 year of £195,460 (2021-. loss of £227.981). Cash at the bank returned to a much healthier position up to £759,505 at ihe end of 20121 compared to £354.525 in 20121 The Trust LGPS pension liability in the Dorset leisure contract also showed positive movement for the year. down by £146,000 at the end of 21122. The current pension liability is down to (£528,000) from (£674,000). It should be noied that this assessmenl is based on the annual actuarial 8s5essment year-on- year. The underlying actuarial assessment of the 1610 Ltd LGPS liability projects th¢ fund is in surplus when considering the contract in tem)s of a transfer to a new operator tn an 'on-going contract. basis. As a result of the pandemic recovery the Trusts total re5erv¢s increased to £1.261,258 in 2 1122 up from £919.798 in 2020121. -net positive movement in funds up by £341,460. 1610 Ltd successfully negotiated the extreme ftnan¢ial ¢hallenge5 of the COVtD pandemi¢ to emerge in a much more stable and viable financial position. The coming 2022123 year will present Substantial financial pressures. which will play out in reduced diswsable incomes and increased business costs. 1610 Limited Trustees, Annual Report ￿ncorpOrating tbe Strntegic Report) For the Year Ended 31 M2reh 2022 161 O Ltd successfully negotiated the extreme financial challenges of the COVID pandemic to ¢m¢rg¢ in a much more stsble and viable financial w5ition. The COTning 2022123 year will present substantial financial pressures. which will play out in reduced disrM)sable incomes and increased b￿sinesS C05tS. The ending of all Government financial supwTrrt provided during COVSD will challenge organisations ihat have not adjusted to the new economic environment. Going Comeern The financial statements have been P￿Pared on a going Concern basis. which assum¢s that the company will have suificient funds to pay debts as and when they fall due and continue in operation for a period of at least twelve months from the dat¢ of authorisation of the financial statements. As detailed in the post balance sheet events section of the Trustees, RepotL the COVtD 19 pandemic emerged after the budget year end. The resulting impact on ihe company's operntions and measuTes taken by Government to contain the Vin￿ have negatively affe¢t¢d results in subsequent re￿rtIng peri￿$. Plans for Future Periods 2022123 In nornial years, the TnL5t prepares annual business plans and financial forernsts for the delivery of commissioned services and developmental work. Post COVID the business plans have been simplified as the core objective of the Tntst has been to regain business and re-FwJsition the company and its resources The 2022123 Trnst Plan s¢t out.. l. As a minimum success measure 1610 to achieve a beak even budget position in March 2023. 2. To Set up a robust utility management system to help protect and manage the potential risks that will arise from the volatile and Tising ulility costs. 3. To position 1610 as an environmentally conscious and thoughtful business. reducing it5 carbon footprint. 4. To develop and train all 1610 stsff to eMb￿lY its wre DNA and values ihrough enhanced trainin improved internal communication and identify key influencers in the busin¢ss. 5. Develop 3-5 busines5 development projects to SUPIM)rt bu5ines5 growth and ¢uslomer satisfaction. 6. Assess 1610,5 social value impact as a charity. Identifying key metrics to report to stak¢holders highlighting the impact of charitable objeciives. 7. In¢rease ihe W¢llness membership base by 20Yty by March 2023 To rollout 1610 marketing siralegy for each facility lo enable budgets and business grofflh 9. To improve the quality of setvices and offer ai ev¢ry 1610 centre by setting out five quality measures. 10. Increase income and profitsbility through programme and pr(￿U¢l development The key ttsks for the Trust will ￿ to continue the re-launch all site5 with COVID safe environments to build customer confidence and aid their return to activity. There are new wmpetitors ihat have emerged during lockdowns- online providers. outdwr activity and home gym solutions have all gained traction in the fitness market due to people being Confined to hom¢ or the immediate loulity Financial viability remains paramount for the Trust. This will Involve the switching frorn considerable external funding support back to growing and Sustsining the usual 1610 business income streams. To aid ihis iransition 1610 h&8 successfully helped Council partners to secure funding from the Sport England National Leisure Recovery Fund. These funds will be available to pump prime the return of activity programmes, ext¢nd opening hours. and subsidise activity to all time for cu5tom¢rs to develop confidence to retum to sites post Lockdown. This funding is scheduled to end in Sept 2022. 10 1610 Limited Trustees, Anllual Report Oncorporating the Strategic Report) For tlke Year End￿ 31 Mar¢h 2022 Prineipal Risks and Uncertsittties A full review of the Business Risk Register tsk¢s place throughout the year. this is reviewed on a regular basi5 and the Board is presented with a Business Risk Improvement Plan at each Board meetin& together with any additional risks that are identified. The risk assessment covers all areas of ihe business including operational. financial, compliance. external and governance risk% particularly in the light of any new projects undertaken and ¢hang¢s to the politi￿1 ¢limate and I￿al economies. The current principal risks and uncertainties faced by the Trust are.. The on-going impact of COVID 19- and the potential for further lockdown closures Impact of the increase in energy cost linked to Ukrain¢ l Russia War Recruitsneni and retention of stsff Difficulty in recruiting new Trusiees Further exlension of existing 161 O public sector contracts Reliance on low margin activities. Major Plant failu￿ at sites where 1610 has full repairing liabilities Growth of online leisure providers l Home fitness market I new oUtd￿r leisure provision Loss of key management {TrusieelCEOISLT) Failure of Duty of Care (Health & Safety and safeguarding) Increasing Pension liabilities with the Dorset LGPS Viability of smaller 1610 leisure sites and their resilience to reium to profit post COVID pandemic Heigh*ned safeguarding requirements impacting on operations on Sch(x)I b&sed dual use sites Sy5t¢ms and proc¢ss¢s have been put in place to manage and mitigate the risks 1610 face. For h¢alih and safety and safeguardin& external consultants are used to a5se55 operational perfomJanc¢. highlight risk manag¢m¢nt issues 8nd a¢iions needed and provide on-going training. All staff undergo fornial training and regular uplat¢s and ¢ours¢s to ensure they understand their responsibilities regarding safeguarding. Recruitment processes are robust ensuring everyone follows due process. and all staff are Disclosure and Barring Service (DBS) cleared befor¢ they can commence employment wilh the Trusi. The Trust Uses QUEST. a national accredited quality &ssuran¢e swrts framework, to externally assess all aspects of operdtional performance - highlighting excellence and aTeas for improvements. These external processes support periodic reviews at Board level prompting adjustment to operations as risks change or new challenges arise. Mentor Natwest provide ¢xt¢rnal HR support and advice. In 2021122 1610 Ltd appointed Right Directions - a nation UK HIS provider - to audit all aspects of the Trust operation4 provide refresher training for staff and produce a plan to ensure that the re-opened sites and services had a hIgh￿llaI1ty HIS system in place. Robust and rigorous financial prwesses are in pla¢¢ to ¢nsur¢ wfornian¢¢ TS regularly reviewed on a daily I weekly and monthly level and corrective action laken quickly. This has been essenti81 during the COVID pandemic. whil￿ si8nificant r¢lian¢¢ is placed on the CEO and SLT'S 5ki115- each has a dedicated team suprthing them and no individual work5 in isolation. ensuring adequate cover Can be put in place immediately, temporary cover could also be provided by re¢ruitin8 external professionals. iogeiher with support from the Trustees. Ai a more strategic level. legal and financial risks are identified and mitigaied through our work with professional advisers and auditors. 161 O continually strives to improve their margins by developing iheir own branded products and reviewing work practices to ensure the Trust operates as e￿icientIY as possible. 1610 remains flexible in its approach to ensure it can adapt to changes in legislation and contractual requests. 1610 Limited Trustees, Annual Report (Incorporating ihe Strategic Re￿rt) For ihe Year Ended 31 March 2022 Pool plant failure will always relnain a risk that is dilTi¢ult for 1610 to mitigate againsL however we collabornte closely with our contractual partner5 to ensure the plant is maintsined appropriately where it is our direct contractual responsibility to do 50. Risk managetnent is a standing item on the monthly Senior iud¢rship Team agenda and quarterly Board agenda. Financial Risk Management Objeetives and Policles The trustees are r¢sponsibl¢ for monitoring financial risk. Appropriate policies have been developed and implemented to idenlify. evaluate. and manage the key risks. a) Price ri5k- The Charity is exposed to price risk as a result of its operydtions. Due to the economic climate and new leisure budget operator ¢omp¢tition the ¢harity must sell and provide services at COTnpetitive price to maintain m¢mb¢rship levels. b) Credit risk- Due lo the charity's activities. CTedTt Ès very rarely given. Any credit extended to customers is Subject to appropriate r¢vi¢w and monitorin8. c) Liquidity risk~ COVID 19 pandemic has mad¢ this the wre focu5 of daily life. Trustees have regularly been updated on cash flow and financial risk. Support been requested by the Trusi from financial advisors and commercial lender5 to help manage the Trust business through the pandemic. d) Cash flow risk- the CEO / Finan¢¢ T¢am have provided ihe Board with quarterly update5 on cashflow throu&h the COVID pandemic period. In addition to upJat¢s when significani changes have occurred. Cashflow can be tracked daily via the Xero finance system. Thi5 data is available to all Trnste¢s and senior staff daily. e) Economic risk - The charity's performance is directly impacted by the economic environment. To manage this risK th¢ Charity strives to deliver competitively priced products and services. The charity is a¢tiv¢ly concentrdting on improvin8 efficiency and red￿Ing costs. D Credit Rating- the Trust is aware that it is essential to maintain a strong, positive financial profile. The Trust cr¢dit rating is reviewed periodically to monitor the health of the Trust finan￿S. Post balydnce Sheet Events- April 2022 onwards Business Returll 161 O has s¢¢n subsiantial parts of business return since re￿￿nIng in April 2021. Th¢ key area of Swim programme has experienc￿ up 10 80Yo return of members within three months. Fitness membership return ￿en approximately 65•/0 of business return within the first 3 months of full re-opening. Cashflow The Trust cashflow position and cash reserve5 have been stsbilised. Res¢tv¢s are back at PTe£OVID levels with approximately £75Q.000 available. Workforce & Reernitmettt 1610 is now operating with a workfo￿¢ of185 staff- down from 379 staff in May 2020. As with many UK businesses in the firsi 6 months of 2021122 1610 has faced particularly challenging condition in the labour market. This has had a detritnenthl irnpact on the re-opening and r¢-growth of the business. 1610 fully exiled the Furlough scheme at the end of June 2021. COVID related illness still presents business risks across all sites. Finaocial PerforniaDee The Trust had been able to move back into profit during the first six months of re-opening and re- launching business activity in 2021122. However. the Cofflpany w&5 unable to set a positive budget for 2022123, as the various supwrt streams from Government w¢re withdrawn as COVID eased. Longer 12 1610 Limited Tru$t¢es' ADDual Report ￿ncorpOrating the Strategic Report) For the Year Ended 31 Marth 2022 ierm forecasts for 2023124 also indi¢aied a fvnher opernting loss. The BoaTd has fa¢ed unprecedented challenges to address the risks of operatin8 in deficii. Sealing back of 1610 Ope￿tIons In Jun¢ 2022. the Trust Board requested that the Trust Management Team undertake to either identify a potential partner for merger or initiate the orderly 'wind down, of the business. Given ihe financial posilion of the operation. it wa5 evident that a paTtner would wt readily be identifiable. li was agreed to reduce the Trust operations for the 2023124 budget year down. to sites that wer¢ profitable. This will result in the closure of the loss makin& smaller 1610 sites. It is intended io exit three facilities by the end of March 2023. This will include di5tx)sal of the 1610 Swimming Pool facility in South Molton. Devon. R¢¢ruilmeD¢ of new Trustees The105s of one of the three Tnjstees in July 2022 raised the importance of recruiting addilional Trustees as quickly ￿ possibl¢. It is acknowledged thaL nationally. this is an issue for all charitable bodies. A recruitment campaign is in plac¢ to increase the Board size io five members. The need to stabilise the finances of the business and secure the future of the Trust was recognised &$ being essential to achieving a successful recruitment ¢ampaign. 1610 Central MaDagemellt re•organisation In October 2022. the Tnjst Board agreed a proposal to re-shape and reduce the Cenlral Manag¢ment Team. The reduction of Sites in the business required a major review and slimming down of the central team personnel. The resultant changes to site operations and reduction in stsff ieams ha5 enabled 1610 to forecast a surplus budget for 2023124. securing the immediate fvture of th¢ business. A new interim central management structure will be in place for the Trust from l January 2022. The Tn￿t will undertake further analysis and recruitment to put in place a pernianent management structure for April 2023. Dorset Council i*isure Colltrnct tn October 2022.1610 and IX)rset Council agreed an inilial six-month extension of the Operating contraci for Dorchester Leisure centre- to 31 March 2023. The Council is seeking to offer a further 12- Tnonih extension to March 2024. This will be Subject to commercial discussions on the potential commercial support available to offset the energy rssk issues created by the on80ing Ukrnine l Russia conflict. Torridge District Council I￿lsure Contract The Council ¢onfimied that it is intended io move their leisure operations in Torridge back to an 'inhouse' model ai the end of the ten-year contract period. 161 O completed the transfer of assets back to the Council in March 2022. All mattets linked to this ¢ontracl were finalis¢d in September 2022. FiDgneig1 Performance 2022123 Financial wojections for the 2022r23 year set out a significant operating loss. This is accentuated by the redundancy costs required io reconfigure ihe bu5ines5 to become financially viable. Once restructuring of the management team and closure of105s-making sit¢S 15 wmpleted the Trust is scheduled to return to a profitable posilion. 13 1610 Limited Trustees, Annual Report ￿n(Orpo￿ting tbe StTateEiC Report) For the Year Ended 31 Marcb 2022 Trustees, Responsibility Stgtement The Trusiees, who are also Directors of 1610 Limit￿ for the purposes of company law. are resp)nsible for weparing the Trusiees, Report {incorporaling the Strategic Reix)rt) and the financial ststemenis in accordance with applicable law and United Kingdom Accounting Standards. including Financial Reporting Stsndard 102: The Financial Reporting Standard applicable in the UK and Republic of ireland (United Kingdom Generally Accepted Accounting Prdctice). Company law requires ihe Trustees io prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitsble company and of the income and expenditure. of the charitable cotnpany for that period. In preparing these financial ststements. the Trustees are required to.. select suitable ac¢ounling policies and then apply them consistently. observe the methods and principles in the Charities SORP. make judgements and estimates that are reasorkable and prudent. slat¢ whether applicable UK A¢¢ounting Standards have been followed. subject to any material departures disclosed and explained in the financial statements. prepare the financial statements on the going con¢¢rn basis unless it is inappropriate to pr¢sum¢ Ihat the charitable company will continue in busines5. The Trustees are responsible for keeping proper accounting records thai disclose with reasonable accuracy at any tim¢ the finan¢ial posilion of the charitable company and enable them to ensure that the financial statement5 comply with the Companies A¢t 2006. Th¢y are also responsible for safeguarding the assets of the charitable company and hence for taking re￿inable steps for th¢ pr¢v¢ntion and d¢t¢ction of fraud and other irre8ularities In so far as th¢ Trustees are aware: there is no relevant audit inforniation of which the charttable company'5 auditors are unaware; and The Trustees have tsken all steps that they OLtght to have taken to make themselves awar¢ of any ￿ l¢vant audii inforniaii¢)n and to establish ihai the auditors are aware of that inforniation. AuthorisatioD of FiD#nci#l StatemeDty Trustees. Report and StThlegie Report The financial statement5, which incorpordte the Trustees, ReporL th¢ Trustees. Responsibilities, and ihe Strategic Repor¢ were approved by the Board of T￿￿e5 on and signed on their behalf by: M. Winlow Trnstee IS 2 14 1610 Limited Independent Auditor's Report to the Trus¢ees of 1610 Limited For the Year Ended 31 March 2022 OpiDion We have audited the financial statements of 1610 Limited (the 'Charitsble company) for the year ended 31 March 2022 which comprise the Statement of Financial Aclivities. Ihe Balance Sheet, the Statement of Cashflows and notes to the financial ststement4 including significant accounting policies. The financial reporting frdrnework that h&5 been applied in their preparaiion is applicable law and United Kingdom Accounting Standards. including Finan¢ial R¢porting Standard 102= The Financial Reporting Stsndard pplicable in the UK and Republic of Ireland (Uniied Kingdom Generally Accepted Accounting Practi¢¢). Thi5 report is made solely to the charilable company's members, as a tKxJy* in aecordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit WOTk has l*en undertaken so that we might stsle to the charitable company's m¢mb¢rs those matters we are required to state to them in an auditor's rewrt and for no other putpose. To the fullest exieni pervnlt￿d by law. we do not accept or &s5ume resw)nsibility to anyone other than the charitable company and the Ch￿Itable company's members as a b￿￿y. for our audit work, for this report, or for the opinions we have formed. In our opinion, th¢ finan¢ial statrments- give a true and fair view of the stale of the Charitable company's affairs as at 31 March 2022 and of its income and expenditure for th¢ period then ended. have been properly prepared in accordance with unit￿ Kingdom Generally Accepted Accounting Practice- hav¢ be¢n prepared in accordance wtth the requtrefflents of the Companie5 Act 2006. Basls for OPiDiOD We conducted our audit in accordan¢e with Internaiional Srandards on Audiling {UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audil of the financial 5tstements section of our report. We are independent of the ¢haritsble company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including ihe FRC'S Ethical Standard and we have fulfilled our other ethical reSkX)nsibiliti¢s in accordance with these requirements. W¢ b¢li¢v¢ that the audit evidence we have obtained i5 SLsificient and appropriate to provide a ba515 for our opinion. Conelusioms relatittg to going cotscern In auditing the financial statements, we have concluded that the trustees. use of the going concern basis of accounting in the prepardtion of the financial statrrnents is appropriats. Based on the work we have performed, we have not identified any material uncertainties relating to events or Conditions thaL individually or collectively. may cast significant doubt on the entity's ability to continue as a going concern for a period of at [￿t 12 months from when the financial Sfatements are authorised for issue. Our responsibilities and the reswnsibililies of the trustees with re5pectto going concern are described in relevant sections of this report. Otber inforniatjOD The other infornation Comprises the information included in the annual report, including ih¢ trustees. report, other than the financial slatements and our auditor's report thereon. The trustees are responsible for the other infom)alion Contained within the annual rep)rt. Our opinion on the financial 5tstements does not ¢over th¢ other infomiation and, excepi io the exteni otherwise explicitly stated in our repori we do nol express any forni of assurance conclusion th¢r¢on. 15 1610 Limited Independent Auditor's Report to the Trustees of 1610 Limited For the Year Ended 31 M#rch 2022 Our responsibility is to read the other inforniation and. in doing so. consider whether the other infortnation is materially in¢onsist¢nt wilh th¢ ftnancial s¢atem¢nts or our knowledge obtained in the audit or otherwise appear5 to be materially misswed. If we Tdeniify such material inconsisiencies or apparent Tnaterial misslatement5, we ar¢ required lo deiennine wheth¢r ihere is a maierial misstatemeni in the financial statements themselves. If. based on the work w¢ have perforn)ed, we conclude that there is a material misststetnent of this other inforniation, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies A¢1 21rf16 In our opinion, based on the work undertske in the course of the audit." the inforniation given in the trus*es' report (incorpordting the strdtegic report and the directors. report) prepared for the purpose of company law. for the financial year for which the financial statements are prepared is ¢onsistent with ihe financial statements- and the trustee5' report (incorEX)rating the strategic rewrt and the directors. report) have been pr¢pared in accordance wilh applicable legal requirements. Matters o* which we art required to report by exception In the light of the knowledge and under5tandin¢F of the charitsble company and its environment obtsin¢d in the course of the audit, we have not identified material misstatements in the truste¢s' report (]nco￿lratJng ihe strategic and directors" report). W¢ have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to rew)rt to you if. in our opinion= adequate and proper accounting reo)rds hav¢ not b¢¢n k¢pt or retums adequate for our audit have not been received from bran¢hes noi visited by us. the financial staiements are not in agreement with the accounting records and returns. certain disclosures of trustees. remuneraiion specified by law are nol made" or we have not obtained all the infonnation and explanations nec¢ssary for the purposes of our audit. Responsibilities of ¢be truslees As explained rnore fully in the trustees, responsibilities statemenL the imstees (who are also the directors of the. charitable COTnpany for the purp05e5 of company law) are responsible for the preparaiion of the financial ststements and for being satisfied that they give a true and fair view, and for Such internal ¢ontrol as the trustees deterniine is necessary to enable the preparation of financial stat¢m¢nts thal are free from material misstatemenL wheth¢r due to frdud or ¢tnx. In preparing the financial statement& the trustees are res￿nSIble for assessing the charitable company's ability to continue as a going conc¢rn, disclosing, as applicable. matters related to going ￿nCern and using the going concern basis of accounting unless the trusiees either intend io liquidate the charitsble company or to cease operations, or have no r¢alisti¢ aliernative bui to do so. 16 1610 Limited IndependeD( Auditor'5 Report to the Trusteu of1610 IAmited For the Year Ended 31 Mareh 2022 AMdi¢or's respoDsibilitie5 for the audit of the fillancial st21ements Our objectives are to obtain reasonable assuranc¢ aiM)ul whether the financial statements as a whole are free from material misslat¢men( whether due to frdud or error. and to issue an auditor's report that includes our opinion. Reasonable wuran¢¢ is a high level of assurance, bul 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 ¢rror and are considered material if, individually or in the aggregate. they could re￿onablY expected to influen¢¢ the economic decisions of users taken on the basis of these financial statements. Irregularities. including frnud. are instances of nonnds thai are denominated in sterling and that have ternis approximating the ¢stimat¢d period of future payments (discount rate). The fair value of plan assets is measured in accordance with FRS 102 fair value hierarchy and in accordance with the company's policy for similarly held assets. This includes the use of appropriate valuation techniques. Actuarial gains and losses artsing from ¢xperi¢nc¢ adjustments and changes in actuari81 assumptions are charged or credited to the statement of financial a¢livities. These amounts iogether with the return on plan assets, less amounts included in net interest. are disclosed as "Remeasuremeni of net defined benefit Th¢ cost of the defined benefit plan. recognised in the profit or Ios5 as employ¢e Costs. except where included in th¢ cost of an ass¢L ¢omprises'. i) The increase in pension benefit liability arising from employee service during the period. and ii) The cosi of plan introductions. benefit changes. curtailm¢nts and Settlements. The net interest cost is calculaied by applying the discount rdte to the net balance of the defined benefit obligation and the fair valu¢ of plan assets. The cost is recognised in the statement of financial activities as a finance expense. Critical aCCOUDtiDg estimates and judgements The preparation of the financial statements in conformity with FRS 102 rquires management to make judgements. ¢stimates and assumptions that affect the application of wlicies and reported amounts of assets and liabilities, income and expenses. Estimates and judgements are ¢ontinually ¢valuated and are based on historical experience and other factors. including expectations of future events that are believed to be reasonabl¢ under the circumstances. The company rnakes estimates and assumptions con¢eming th¢ firture. The resulting accountin8 ¢Stimat¢s will. by definition. seldom equal the r¢lat¢d actual results. The estimates or assumptions that have a significant risk of causing a material adjustment lo the Carrying amounts of assets and liabilities Within th¢ next financial year are set out below. 26 1610 Limited Notes to the Finantial St*temeDts For the Year Ended 31 March 2022 ACCOUNTING POLICIES- Continued. Defined benefiipension scheme (a) The Company has an obligation to pay pensions benefits to certain employees. The c05t of these benefits and the present value of the obligation depend on a number of factors, including.. life expectancy, salary increases, asset valuations and the discount rdle on corporate EM)nds. Management estimate these factors in deterniining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See note 21 for the disc105ures relating to the defined benefil pension scheme. Prior period adjustments Where corrections are required to comparative figure% th￿¢ are adjusted in the earlTest period to which they relate. Details of such restat¢ments are in¢lud¢d in note 26. NET INcOMEl￿XPENDfTuRE) Net incomel(expenditur¢) is ststed after chargingl(crediting)- 2022 2021 Depreciation Auditors remuneration for audit work Auditors rewnuneration for accountancy services Auditors r¢munerntion for t&xation and other services {ProfityLoss on disposal of fixed assets Interest on bank loans Interest on hire purchase Rentals under operating leases- plant and machinery 314,819 12,000 3,000 10,286 (17.147) 1.646 7,873 6.195 332,910 13,800 5,000 15.775 127.605 1.787 12,336 16.042 27 1610 Limited Notes to the FiDan¢ial Statements Forihe Year Ended 31 March 2022 DONATIONS AIYD LEGACIES 2022 Total 2021 Totsl Uttrestri¢ted Restrieted Unrestricted Restricted Grants & donations 225286 225,286 319.221 319.221 225,286 225,286 319.221 319,221 28 1610 Limited Notes to the Fillancial Stgtements For the Ye•r Ethded 31 March 2022 INCOME FROM CHAIUTABLE AcrIvrrIES MaDagemeDI Change of tAW Sport5 Activities & Swimming Pool Other Income Membersbip Devon wntract BSF contract Dorset contract Activities 128.754 128.(M)O 235.798 78.518 78.931 20.540 144,152 376,581 430,058 284.627 368.614 623.591 579.781 123,362 24.254 3.028 2.710 374.746 Totsl 2022 492.552 177.989 1.235,418 .695,348 404.738 Total 2021 495,050 893.845 304.5(KI 262,630 65,306 29 1610 Limited Notes to the Financial Stgtements For ¢he YearEnd¢d 31 M4r¢h 2022 OTHER TRADING ACTIVITIES Income from Vending and Bar Sales 2022 Raising FuDds- Cost of Sale5 2021 2022 2021 Devon contrdct BSF contract Dorset ¢ontrnct Activities 2.901 63,258 10,596 (565) 214 652 36.235 1.453 6,722 5.896 6.741 1.900 2.190 9.486 2,923 394 Total Sites 76.190 13,017 55.062 16,727 1610 Limited Notes to the Finattcial Statements For tbe Yvar Ended 31 Marcb 2022 6 EXPENDITURE ON CHARrfABLE AcrivrrIES Premises & Equipment Costs Onsite Admin Costs Tolal Dire¢¢ Costs Otber Costs Staff Costs (r Devon contract BSF contract Dorset Contract Actlvllies 495,817 579,197 611,640 309,545 362.322 157,657 325.600 299.031 3,470 11,024 9,822 12.982 861.609 750,708 947.062 631,947 2.830 10.389 Total 2022 1.996,199 1,144ffi10 37298 13219 3,191J26 Tol*l 2021 1.943255 973558 10262 10,163 2,937238 SUPPORT COSTS IT& oirice Costs Legal & Professiongl Staff Costs Prernise5 Costs Devon contract BSF contract Dorset contra¢t Activities 29.933 30.773 59,866 89.900 165,648 151,883 146.653 35.662 40.085 38.749 67.827 8.037 11.728 11.514 24.121 Total 2022 120573 554,084 182J23 55,400 To¢al 2021 99944 405.636 159.717 90,684 Support costs have been allocated to ihe contracts on rhe basis of direcily relaiing to a 5pecTfic conrrnct or apportioned ls follows.. Siaff costs- based on percentage of income from each contract.. Orh¢r costs- by number of contracts. 31 1610 Limited Notes to tbe Finan¢ial Statements For the Year Ended 31 Mar¢h 2022 8 STAFF COSTS 2022 2021 Salaries and Wages Social securiry COSIS Pension costs 1,928,200 110,131 78.441 1,881.244 97,675 64.280 2,116.772 2,043,199 One employee's emoluments fell within the band of £1 l O.¢100 - £119.999 and Fn5ion contributions on behalf of this employee amounted to £24.800 for the year. (2021.. One employee's emoluments fell within the band of £ I I 0.000 - £119.999 and pension contributions on behalf of this employee amounted to £2.467 for ihe year). Some employees are members of a defined benefit ￿nSIOn scheme. details of which are pmvided in note 21. Key management personnel remuneration is disclosed in note 22. Th¢ average number of employees during the period, ￿alysed by COntr￿l was as follows.. 2022 2021 Devon Contra BSF Contract 45 71 61 81 Dors¢i Contract Activities Tolal Direct Sthff Head Office Admin Support 58 26 190 13 67 41 260 14 203 274 TRUSTEES. REMUNERATION During the period. no remuneration has been paid to the Trustees or any person connected with them (2021: £Nil). No travelling expenses were paid to Trustees (2021.. £Nil). 32 1610 Limited Notes to the FinaD¢ial SiatemeDts For the Year Ended 31 Marcb 2022 io FIXED ASSETS tka5ehold Property Improvements Fixtures and Eqwipmellt Computer Software To¢al Cost At l April 2021 Additions Disw)sals .556.566 1,965.095 28.350 {26,992) 109.680 42.727 3.631.341 71.077 (146,771) {119.779) At 31 March 2022 1,436,787 .966.453 152.407 3.555,647 Depreciation At l April 2021 Charge for year Eliminated on disposal 698.366 172,875 (113.968) 1.405.660 128.169 (25.381) 23.695 13,775 2.127.721 314.819 (139,349) At 31 March 2022 757,273 1.508.448 37.470 2,303,191 Ne¢ Book Value At 31 March 2022 679.514 458.005 114.937 .252,456 At 31 March 2021 858.200 559.435 85.985 .503.620 In¢lud¢d within fixed assets ar¢ assets with a net book value of £188.641 {2021- £216,232) relating to assets held under finance lease agreements. The depreciation charged in th¢ period in r￿pect of assets held under finance lease agreement5 amounted to £27.591 (2021.. £27.591). li YVESTMENTS. Total Cost At l April 2021 and at 31 March 2022 Net Book Value At 31 March 2022 At 31 March 2021 161 O Limited owns l OOYO of the subsidiary Incedo Limited. The company's principal activity is to carry out trading activities on behalf of1610 Limited. 33 16AO Limited Note$ to the Financial Stalemen¢$ For the Year Ended 31 March 2022 12 STOCKS 2022 2021 Trading stock 15.679 20,784 15,679 20.784 13 DEBTORS 2022 2021 Trade debiors Other debtors Prepayments Accrued income Amount owed by subsidiary undertaking 116.750 33.888 61.443 239.075 8.148 162.473 33.888 57.022 303.580 6,866 459J04 563829 14 CREDITORS: AMOUNTS FALLtNG DUE WITHIN ONE YEAR 2022 2021 Trade creditors Social security and other t&xes Finance le&ses Other creditors Bank loan5 Accruals 185.497 55.090 65,292 45,642 9,586 236,249 53,551 142.833 130.534 71.508 50,743 7.641 147.861 138.428 Deferred inwme 650.907 689548 34 1610 Limited Notes lo tbe Financial Statements For the YtAr Ended 31 March 2022 15 CREDrroRS: AMOUNTS FALLING DUE AFfER MORE THAN ONE YEAR 2022 2021 Finance leases Deferred income Bank loans 9.509 77.310 35,547 46,556 37,271 46,780 159,413 An analysis of the maturity of loans is given below= 2022 2021 Bank loans Amounts fallin8 due within one year 9,586 7,641 Amounts falling due between one and two years 9,829 i 0.000 Amounts falling due between two and five years 27.442 36.556 16 SECURED DEBTS The following secured debts are includ¢d within creditOTS: 2022 2021 Creditors: amouttts falling due withio one year: Finan¢¢ leases Bank loans 65.292 9.586 71.508 7,641 Creditors: amounts falling due after one year. Finance leases Bank loan5 9.5¢19 37,271 77.310 46.556 121,658 203,015 The finance leases are secured on the related le&sed assets. The bank loans are secured by a fixed charge over all plant and machinery and goodwill, owned now or in the future and a floating charge over all other property ￿ets and rights of the company. The loan wa5 drawn down in Nov¢mkr 2020 under the provision5 of the Coronavirus Business Interruption Loan Scheme 35 1610 Limited Notes to the Financial S¢ateJnents For the Year Ended 31 March 2022 (CBILS). The l(wi ¢arri¢s interest at ih¢ rdte of 2.5D/o and. following a 12 month inlerest and capitsl repayment holding, the loan will be fully repaid by November 2026. 17 cowrINGENT LIABILITY The Charity had guaranteed its payment obligations under a contract for the mana8ement of leisure facilities by arranging perfomiance bonds for £94,607 and £73,966 which expire in January 2023 and £29,000 and £1 00,000 which expire in OC￿ber 2023. 18 LEASE COMMTfMENrs Hire pur¢hase comtracts Minimum lease payments fall due as follow5: 2022 2021 Net obligations repayable= Within one year Between one and five years 65.293 9.509 77.467 71 J51 74,802 148.818 Other operating leases 2022 2021 Non-cancellable operating leases Minimum payments under the leases ar¢ as follows.'- Leas¢s ¢xpiring= Within one year Between one and five years 2,738 3,457 9,188 6,854 195 16.042 36 1610 Limited Notts to the Fillaneial Statements For the Year Ended 31 March 2022 19 ANALYSIS OF NET ASSETS BETWEEN FUNDS Tangible fixed assets Net turrent assets ng terni Liabilities Pen$io• Liability Total Res(rieltd ID¢ome Funds GAP fut￿1n8 T0￿idge South Molton .302 1.302 556 131.132 556 131,132 Totsl Restricted Funds 131.688 132.Y)O Unrestricted ID¢ome Funds Trinity Sinking Fund - designated Unrestricted Income Funds Pension Reserve 23.271 559.008 23.271 1.632.997 (528.000) 1,120.769 {46.780) (528.000) Totsl Unrestri¢¢ed Funds 1,120.769 582379 (46.780) (528,000) 1.128268 Total Funds 1252.457 $83381 (46.780) (528,000) 1261258 Purwses of Restri¢ted Funds GAP funding 15 for supporting the programme of play schemes in Gl&stonbury. The money was for Pu￿haSing and maintaining equipment to benefit the children. T0￿idge District Council provided funds to improve the facilities at Torridge. South Molion provided funds to cover any deficit caused by runnin8 this facility. Purposes of Desigllattd FU￿d$ The Trustees have set &side the following designated fund: The Trinity sinking fund - which represents fund set aside in respect of future facililies management services of the Trinity centre. The Pension Reserve relates to the defined benefit pension scheme as detailed in note 21. 37 1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2022 20 MOVEMENT tN FUNDS Baiantt #$ at l April 2021 Bg18nct as at 31 March 2022 Actu*rial Gain Ineomt Expendi¢ur¢ Tr*Thsfer5 GAP funding South Molton To￿ld8¢ Leisure Recovery Fund 1.302 136,833 8,567 1,302 131,132 556 (5.701) (8.011) 91.320 (91.320) Total Restricted Funds 146.702 91J20 (105032) 132.990 Trinity Sinking Fund - designated Unr¢stri¢trd Income Funds P¢nsion R¢s¢rve 23.271 23,271 1,423.825 (674.000) 4.291.992 (4.082.820) 1.632,997 (528.000) 146.000 Total Unrestricted Fundy 773,096 429J.992 (4.082,820) 146,0(K) 1,128268 TotAI Funds 919,798 4J83J12 {4,ISI,852) 146,000 1261,258 38 1610 Limited Notes to the Financial Statemellts For the Year Ended 31 March 2022 21 EMPLOYEE BENEFrfoBLIGATIONS West Dorset District Council scheme During the year ended 31 March 2013. 1610 Limiied agreed a contract to provide leisure services for West Dorset District Council. Part of thi5 contract included the transfer of employees and their associated pension benefit obligations. As part of the trdnsfer agreement the defined pension obligations in respect of trdnsferred employees became the responsibility of 1610 Limited from l October 2012. These pension scheme obligation5 at the balance sheet date showed a deficit of £528.0(M) (2021= £674.000). The employer contributions expected to be paid to W[￿c scheme during the period ending 31 March 2023 are £3.000. The assets of this defined benefit scheme are held separntely from those of the company and comprise Sc￿egated funds of ihe Dorset County Council Pension Fund in respect of pension benefits provided by the Local Government Pension Scheme (LGPS) io employees of1610 Limited. The LGPS is a defined benefit statutory scheme administ¢r¢d in accordance with L(Kal Government Pension S¢heTne Regulations 2014. It is ¢ontra¢led out of the State Second Pension and currenily provides benefits based on career avernge walued salary and len8th of setvice on retirement. The scheme is now ¢losed to new members. Contributions are Set every three years &s a Tesuli of the actuarial valuation of the Funds required by the Regulations. The most recent fu15 valuation was 31 March 2019. The nexi actuarial valuation of the Fund5 will be carried out as at 31 March 2022 and will set contributions for the peri¢￿ from l October 2023 to 31 Ma￿h 2026. There are no minimum funding r¢quir¢m¢nts in the LGPS but the contributi0Ths ￿ 8en¢rally set to target a funding lev¢1 of l OOYO using the a¢tuarial valuation assumptions. The company does not operdte any unfijnded ￿h¢m¢S. 39 1610 Limited otes to the Financial Statements For the Year Ended 31 March 2022 21 EMPLOYEE BENEF￿OBLIGATloNS- continued The atnounts recognised in th¢ statement of financial activitie5 are as follows.. 2022 Total 2021 Totsl D¢fin¢d ben¢fit s¢h¢m¢: Current s¢rvic¢ cost 10.o(K) 6.000 Tothl charge in operaling profit 10.000 6.000 Defined benefil scheme: Net interest expense Admin exp¢nses 13.000 1.000 7.000 Total charge 24,IM)O 13,0(N) Defined Benefit Pension Plans 2022 Tolal 2021 TotAI Present value of funded obligations Fair value of plan assets (1.307.000) 779.000 (1.385,000) 711,000 Pension fund liabilities (528.000) (674,000) The principal actuarial assumptions at the balaxee Sheet date wtre: 2022 2021 Discount rate Future salary increases Future pension increases Consumer Price Index price increase Retail Price Index price increase 2.60/0 2.80/0 2.80/0 2.80/0 3.lyo 3.IY• 3.lQ/o 40 16111 Limited Notes ¢0 the Financial Statements For the Year Ended 31 March 2022 21 E￿[PLOyEE BENEFIT OBLIGATIONS - continued Mortality Assumption5 regarding future monality experience aTe set b￿ed on actuarial advice in accordance with published statistics and experience. The post retirement mortality tables adopted are the S3PA tables with a multiplier of 9￿/0 for males and l OOO/• for females. These base tables are then projected using the CMI 2020 Model, with an allowance for future longevity improvement of 1.250/0 per annum. smoothing parameter of 7.5fy/0, an initial addition parameter of 0.50/opa and a 2020 weighing of 25•/0.The 2020 weight parameter refl￿1$ the exceptional mortality due to the coronavlrus Fondemic. The effect on assumed life expeclancies is d￿nonstrated in the table below. The average life eX￿c￿ncY in year5 for a member from the age of 65 are: 2022 lye2rs) 23.1 24.7 24.4 26.1 2021 (years) 23.1 24.6 24.4 26 Retiring today-. Males Females Males Females Retiring in 20 years Demographic I statistical assumptions: A set of demographic assumptions that are Consisteni with those used for the most recent fund valuation as at March 2022 were adopted. RecDDeili4tioD ofsebeme gssets aDd liabilities Assets Liabilities TotAI £000 (674) £000 711 (7) £000 (1.385) At l April 2021 Benefits paid Employer contribulions Contributions by scheme participants Curreni seryice cost Inieresi income/(expense) Admin Expenses R¢m¢asuremenl Actuarial gains Return on plan as5et5 ¢x¢ludin8 inter¢st iD¢om¢ (i) (10) (28) (10) (13) (i) 15 (i) in losses 110 110 57 57 At 31 March 2022 779 iJo 528 41 1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2022 21 EMPLOYEE BENEFIT OBLIGATIONS- continued The fair value of ¢he major ¢a¢egories ofseheme *ssets are a5 follow5: Defimed Benefit Pension Plalls-Total 2021 £o(N) 389 81 IS8 67 16 2022 £000 414 97 179 73 16 Equities Liability Driven Investment Other Bonds Property Cash 779 711 Tbe return on plan ￿Sets was: 2022 £000 15 57 2021 £000 14 123 Interest income R￿Uffl on plan assets less interest incom¢ Total return oll plan assets 72 137 22 RELATED PARTY TRANsA￿loNs During th¢ yearthe company paid for good5 and service5 on behalf of Incedo Limited, a wholly owned subsidiary, to the value of £20,730 (2021 £Nil). A balance of £8.148 {2021= £6.866) was owing from Incedo Limited at the balance sheet date. The key m2nag¢ment of the charity comprise the Chief Executive Officer and the Senior Leadership Team. The total employee benefits of the key managemeni personnel were for the year £299.128 {2021: £263.914). 23 COMPANY LIKrrED BY GUARANfEE The company is limited by guarantee and no authorised or issued share capital. In the event of the company being wound up members are required to contribute an amount not exceeding £1. 24 ULTIMATE CONTROLLING PARTY As a company limited by guarantee. the company is not under the control of any one individual. All decisions are laken by the Board of Direciors who are the mewnbers of the company. 42 1610 Limited Notes to tbe Financial Ststements For the Year Ended 31 March 2022 25 COMPA114TIVE INFORMATION STATEMENT OF FINANCIAL ACTIVITtES IINCORPORATING THE INCOME AND EXPENDfTURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021 Restated Total Funds 2021 Unrestrieted Fullds Restricted Funds INCOME FROM Donations and legacie5 Charitable activitie5 Other trnding in¢om¢ Investments 319.221 3.170.415 13.017 319,221 3.170.415 13,017 144 Total 3.502.797 3.502.797 EXPENDITURE ON Raising funds Charitable activities 16.727 3.700.969 16.727 3.714,051 13,082 Tothl 3.717.696 13.082 3,730,778 Nel expenditure (214099) (13.082) (227,981) Trdnsfers between funds Net eX￿ndItUre after transfers Remeasurement of defined benefit pension schemes 15.296 (199,603) (336.0(K)) (15,296) (28,378) (227.981) (336.000) Net Movement in funds (535.603) (28.378) {563,981) Total fvnds brought forward 1.308.699 175.080 1.483.779 Tolal funds urried forward 773,096 146.702 919,798 43 1610 Limited Notes to the Finan¢ial Sialements For the Year Ended 31 Mareh 2022 25 COMPARATIVE INFORMATION (CoDtinued) NALYSIS OF NET ASSETS BETWEEN FUNDS AS AT 31 MARCH 2021 Net Current Assets Tangible Fixed Assets Term Liabililie5 Pension Liability Total Restrieted Incomt Futhds GAP Funding Torridge South Molton .302 1.302 8.567 136.833 8,567 136.833 Total Restrieted Funds 145.400 1.302 146.702 Unrestritled IDeome Futtds Trinity Sinking Fund_ Designate Unresiricted Income Funds Pension R¢5¢rve 23.271 225,017 23.271 1.423,825 (674.000) 1,358,221 {159.413) (674.0(K)) Total UDreslri¢¢ed Funds lJ58.221 248.288 (159,413) (674,000) 773.096 Total Fund$ .503.621 249.590 (159.413) (674.0(Y)) 919,798 1610 Limited Y4otes to the Financial Statements For the Year Ended 31 March 2022 25 COMPARATtVE INFORMATION {Continued) MOVEMENT IN FiiNDS FOR THE YEAR ENDED 31 MARCH 2021 B*lanc¢ as at l April 2020 BglaDfe as at 31 Mareh 2021 Actu*ri81 Gain lts¢ome Expenditure Transfers GAP funding 1.302 1.302 South Molion Torridge 157,200 16.578 (5,071) (8,011) {15.296} 136.833 8.567 Total Restricted Funds 175.080 (13.082) (15.296) 146.702 Trinity Sinking Fund _ designated Unrestricted Income Funds Pension R¢serYe 23.271 23,271 1.623,428 (338.000) 3.502.797 (3,717.696) 15.296 1,423.825 (674.000) (336.000) Totsl Unrestricted Fund5 1.308.699 3,502.797 (3.717.696) 15.296 (336,000) 773.096 Total Fllnds ,483,779 3.502.797 (3,730.778) (336.000) 919.798 26 PRIOR YEAR ADJUSTMENT lllcome Classifiegtion The prior year comparatives have been restsied to reflect a cc¢rection to the classification of income. Income from CoronaviNs Job Retention S¢heme was £l.149,084. This amount has been reclassified as income from ¢haritabl¢ activities in accordance with recommend￿10n$ from the SORP Commiltee. There is no net impact on totsl income of Ihis adjustment. 45