1610 Limlted Report of the Trustees, Strategic Report and Audited Financial Statements For the Year Ended 31 March 2024 Regi$lered Charity Number 1130010 Registered Company Number 06727055 (England and Wales)
1610 Limited Contents of the Financial Statements For the Year Ended 31 March 2024 Reference and Administrative Information Trustees, Annual Report (Incorporating the Strategic Report) Report of the Independent Audllors 13 Statement of Financial Activities (Incorporating the Income and Expenditure Account) Balance Sheet 17 18 Statement of Cash Flows 19 Notes to the Financial Statements 20
I610 Limited Reference and Administrative Information For the Year Ended 31 March 2024 TRUSTEES: Mr M Winlow (resigned 31 July 2024) Mr R Burt (resigned 6 April 2023) R Cardwell (appointed 6 April 2023) P Harvey (appointed 6 April 2023) B Hayward (appointed 6 April 2023, resigned 31 July 2024) J Kelly (appointed 6 April 2023) A Rustad (appointed l August 2024) SECRETARY: MrPFox REGISTERED OFFICE: Trinity Sports & Leisure Chilton Street Bridgwater Somerset TA6 3JA REGISTERED COMPANY NUMBER: 06727055 (England and Wales) REGISTERED CHARITY NUMBER: 1130010 AUDITORS: A C Mole LLP Chartered Accountants and Statutory Auditors Stafford House Blackbrook Park Avenue Taunton Somerset TAI 2PX BANKERS: Natwest 26- 27 Fore Street Taunton Somerset TAI IJQ
1610 Limited Trustees, Annual Report (Incorporating the Strategic Report) For the Year Ended 31 March 2024 The Trustees, who are also Directors for the purposes of Company law, present their annual report and their strategic report with the financial statements for the year ended 31 March 2024. Introduction from our Chair; Peter Harvey Welcome to the 161 O Ltd 2023124 Trustee report. The effects of recent global, national and regional events have continued to have a significant impact on 1610. The instability created by the unprecedented events of the last three to four years is still very much felt by 1610 as a charitable limited company and continues to influence ihe direction and strategic decisions needed within the trust to allow it to continue its charilable objectives. Having negotiated a ditTicult 202212023 year, it became evident that there was urgent pressure for the trust to consolidate its position. A further reduction in overheads enabled 161 O to continue to fulfil its charitable status. We moved into 2023124 in a more finically stable position and to continue to look for partners well placed to support 1610 and the service that it provides. In June 2023 a new CEO was appointed on a seconded basis to lead 1610 into the future. The reduction of senior management and 'back office, support to ensure that overheads match the financial output of the trust has led to 161 O running a very lean team of experienced staff but with limited resources. The trust is also rapidly approaching key milestones in terms of contract horizons. With limited resources, il is in a ditTicult position to re-win existing contracts or bid on new and up and coming contracts. The board, with the help and advice of consultants Strategic Leisure and the CEO began the process in 2023124 of officially pursuing a suitable partner to support 1610 in some way. Either by providing further support or through a form of merger. As part of this process, the trustees were adamant that they find a compatible organisation with similar objectives and values. The pace and scale of evolution ha5 been necessary throughout 2023124 in response to the continuing challenges faced by the trust primarily as a result of the leisure management worldwide events. Consequenlially the trust set a new strategic direct to safeguard ihe 161 O legacy. Structure, Governance and Management Governing Doeument 161 O Limited is a charitable company limited by guarantee, incorporated on 17 October 2008, and registered as a charity on 5 June 2009. The company was established under a Memorandum of Associalion 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 contribute an amount not exceeding £ l. Principgl Actlvities In 2023124 the Trust operated 3 leisure centres on behalf of local Councils in the Southwest UK. These facilities provide community access to sporting / leisure / fitness services ensuring local rural facilities are available to everyone and the promotion of a fit and healthy lifestyle. Complementing the leisure contracts is one 1610 owned Imanaged facility that operate fitness, health, and wellbeing programmes. Organisational Structure 1610 is strategically managed by a Trust Board comprising of Trustee Directors. The Board traditionally met four times p¢r annum. The significant changes to the charitable company that were required in 2023124 led to more regular meetings to address the necessary matters required lo set a and evolve a new strategic direction. The Board is serviced by a part time Company Secretary. Specialist advisers to 1610 e.g. Accountants l Legal / Consultants attend Board meetings to advise Truslees as requlred. The Board delegates responsibility for daily operations to the Chief Executive and General management team.
1610 Limited Trustees, Annual Report (Incoryorating the Strategie Report) For the Year Ended 31 March 2024 This team has responsibility for the delivery of contractual outcomes, service specifications and to agree on Key Perfomiance Indicators. Further pathways of delegation are in place from the CEO / general management team through to the wider management Team to operate the Trust business units across multiple venues in the Southwest. Operational standards are defined through nationally recognised quality leisure management systernslframeworks that comprehensively document activities and preSseS for staff at all levels. Recruitment And Appointment to the Trust Board Directors of the company are also charity Trustees for the pUoseS of charity law. They are elected to serve for 3 years retiring on the third anniversary of their appointment, after which they may be re-elected for a further 3 years. They must retire at the end of that period and may not be re-elected until the expiry of l year from their retirement unless the Trustees consider that it would be in the best interests of the Charity for a particular Truslee or Trustees to continue to serve beyond that period and that Trustee or those Trustees are reappointed in accordance with the company's articles of association. Potentlal new Trustees are identified through networking and recommendation. it is important lo us that Trustees understand our ethos from the outset and are passionate about what we do. In 2023124 three new trustees were appointed to the board. As the board navigated the process of formally seeking a partner organisation to work or merge with further recruitment of truslees was paused. The board currently consists of 4 trustees. Trustee Induction and Tralning New Trustees are invited to meet the Senior Leadership Team and Board members and are given a short induction at Trinity Sport and Leisure centre HQ to advise them on the operations, activities, and key personnel within the Trust. These sessions are led by the Chief Executive and other key senior stsff and include.. A welcome pack: including materials related to Ihe Trust operations and governance (including the financial accounts), legal status and guidance from the Charity Commission on the responsibilities, obligations, and liabilities of becoming a Trustee. Trustees are offered the chance to shadow a Trust Board meeling. New Trustees are given an opportunity to visit one of the main Trust leisure operations to familiarise themselves with the core work and to meet Trust staff. New Trustees are also encouraged to contact the Chair of the Trust, a fellow Trustee, or ihe Company Secretary to gain a further insighl into the day- to- day business and ethos of the organisation. Trustees are regularly updated on training opportunities at Board sessions including key functions around safeguarding and health and safety. All Trustees are given an induclion as part of the Trust health and safety policy. Core training on health/safety and safeguarding is delivered to the Board on an annual basis or as and when significant changes to policy or UK Law dictate the need for a refresh. Our Aims and Objectives 1610 Trust purposes are defined in the objects set out in the company's Memorandum of Association and can be summarised as follows: The advancement and support of education, cultural services, and other related provision through direct management of facilities or related activity programmes. The delivery and management of leisure, recreation, and sports facilities particularly with a focus on provision for 'hard to r¢ach' groups and key target groups thal have barriers to participation. The promotion and delivery of health and wellbeing programmes with an emphasis on sport and physical activity. The advancement of physical education and sport.
1610 Limited Trustees, Annual Report (Incorporating the Strategie Report) For the Year Ended 31 Mareh 2024 Other charitable proposals that have public benefit which are consistent with the corc objectives of the trust. 1610 Trust seeks to deliver high quality services to Somerset and wider Southwest communities. The core aims of our work is to develop 1610 facilities and programmes to improve health, sporting / leisure abilities and participation. Contribute to raising the quality of life for the general Community and supporting schools in their development of young people. Throughout this work, Trustees recognise that there is a need to ensure that the Trust observes Charity Commisston guidance on public benefit to ensure alignment with activities and the core Trust aims and objectives. This model often provides isolated or small rural communities with acces5 to local sports, health, and learning facilities I programmes where there would be insufficient volumes of people to make dedicated leisure centres viable. Through this network of centres, 161 O delivers a diverse programme, often being asked to target hard to reach groups, those that are financially or socially excluded, isolated communitles or to work in areas with significant deprivation issues. 1610 works with groups and individuals creating many examples of life changing experiences. They are often achieved through using leisure I sport / health and fitness as a catalyst for altering the direction of a person's life or by providing new opportunities for a whole community. Strategic Report Achievement and Performance Managing delivery of our aims Senior Managers and the Trustees review the Trust aims, objectives and delivery on an annual basis against the yearly business plan that includes contractual targets and the annual budgets. Each department of the Trust produces annual work stream plans to enable successful programme delivery and overall development of the Trust business. Through the UK Growth Accelerator Programme, 161 O fully embedded the Vision Orbit (VO) strategic business tool to review and develop the organisations performance. The annual VO, Vital Few and Single Page Plan form the basis of business planning within the company. Staff members at every level of the organisation use this tool to align activities. During the 2023124 year the Trust managed a series of public seclor service contracts in Southwest England: A ten-year contract with Futures for Somerset, to operate two dual use leisure facililies as part of ihe PFI Building Schools forthe 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 the £8.5m Dorchester Leisure Centre in Dorchester. Dorset Council extended this contract beyond October 2022- to April 2024. A further contract variation was agreed during the 2023124 year to extend this contract to April 2026. The status of each contract is set out in the key activities section below. Each contract has a comprehensive performance framework that is monitored quarterly / annually by the Senior Leadership Team and the various Council contract commissioning bodies. What sets 161 O apart from other fitnesslleisure providers is the changing role of the Trust- it is much more than just management of leisure centres. Since 2012 th¢ Trust has actively pursued a wider community role, by increasing the choice of activities from healthy living initiatives, adult leaming programmes lo workforce developmenl and traintng for the leisure industry. Health and wellbeing are however the platforn] and common denominator to the activities, and the reason 1610 has an enornious impact on people's lives.
1610 Limited Trustees, Annual Report (Incorporating the Strategic Report) For the Year Ended 31 March 2024 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. Numbers of Children enrolled on Swim Programmes. Number of Trust fitness members. The Focus of Work 2023124 Financial Risk Management l Buslness Stability The Trustees appointed consultants, Strategic Leisure to provide them with a comprehensive report into the trust and what the future possibilities might be possible. This report led to the trustees instructing Strategic Leisure to commence a fornial process to identtfy a suitable organisation to partner. The business continued the trend from 202212023 and grew organically in key revenue lines. Key aetivities 202312024 Operations 1610 sites continued to experience organic growth in fitness memberships and swim memberships, both key revenue lines of 1610 business, The management team has stabilised throughout 2023124 with a number of successful appointment5 Within the junior management team. Dor$et Council Lelsure Contract Extension Early into 2024, Dorset Council approached 161 O to discuss an increase to the existing Leisure Services contract to operate Dorchester Leisure centre. The Council and the Trust agreed a 24-month extension to March 31, 2026. A further extension remains possible. Investment Policy The majority of funds that the Trust generates on an annual basis is committed to annual operation5. It is unlikely, in the short or medium term, that there will be significant funds generated for long term investment. The Board is keen to make provision for the development and growth of the reserve fund. However, it is important that the Trusl uses its cash to develop business and support the agreed charitable outcomes. Cash in hand is held in a special interest-bearing account with Natwest. The bank offers a basic treasury service to maximise the investment of these funds whilst covering day to day operational business needs. Reserves 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 Ihe benefit of the charity's aims and objectives and to maintain financial stability, considering the risks and potential impact in the current economic environment. The Trust Board review the reserve policy annually and has a policy of holding a minimum Reserve of £200,000. As income covers operational costs the need to maintain reserves is based on any unforeseen call on funds, and for future capital and operational expenditure. This has been determined based on the Trust Risk Register. identifying the fiscal impact of these risks being realised, and future of the Trust. This level of reserves is acceptable as it meets the minimum reserves policy and allows the Trust to set aside resources to meet the requirements of the National Living Wage and for future investment projects. For the first time in 1610 operating history the Reserves policy was tested by COVID and the economic conditions. The Trust had total reserves beyond the minimum level and levels of cash reserves never fell below £300,000 in the year.
1610 Limited Trustees, Annual Report (Incoryorating the Strategic Report) For the Year Ended 31 March 2024 The Reserves Policy is annually reviewed. Key Management Remuneration and Performance Criteria Remuneration for all job roles is evaluated according to the role and level of responsibility. and this applies lo members of SLT (Senior Leadership Team), and the CEO. CEO remuneration 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. this is incorporated into the Trust's Vision Orbit Business Plan. These objectives are reviewed on a regular basis both at SLT level and at regular'job chats," which are the equivalent to appraisals. The CEO reports to the Board on the objectives together with performance of those objectives. A general pay increase was awarded of 50/0 to staff where they had not been directly impacted by the legal requirements in 2023124. The impact of Living wage remains a major annual financial pressure for the Trust. Maintaining pay differentials is a difficult balancing act given the need to compete within an increasingly price aggressive sector. 1610 has faced significant pressure in pay due to ihe changes in the employment market and workers moving across sectors for higher paid employment. Given the current financial position of1610 there 15 little opportunity to increase pay beyond statutory awards. Employee Information 161 O is dependent on the skill and enthusiasm of its employees to achieve its business and charitable objectives. The Trustees are therefore committed to effective employee communication and equal opportunities. The selection, training development and promotion policies ensure equal opportunities for all employees regardles5 of gender, marital status, race, age, or disability. Internal communications are designed io ensure that employees are well informed 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. The use of Workplace, a Facebook product for internal business communications, has had a positive impact on staff engagement. Eighty percent of staff have active accounts, and this tool has enabled all staff, including casual and remote based people, to access 1610 information and communications. The Trust continues to 'buy-in' external support for HR matters through Mentor HR services. Recruilment and retention of staff continues to apply pressure to 1610 due to broader challenges wilhin the employment market. This is made more difficult by key national themes being attributed specifically to the leisure industry where it is typically recognised there are national workforce shortages. Staffing is the major cost in leisure sector companies and 1610 has set an agenda to &spire to have fewer, better paid staff in the future. The nature of employment in this sector is also changing. More staff are moving to self mployed roles such as PT trainers I Instructors. Given the financial pressures, the Trust management team has also been focussing on ensuring that the optimal management Teams are deployed at sites. In 2022123 the Trust reviewed the Central Management Team, and as result has reduced this overhead which has significantly reduced financial risk for the business. Staffing levels have fluctuated throughout the year but remain lean. As of the end of March 2024 the trust employed a total of158.
1610 Limited Trustees, Annual Report (Incorporating the Strategic Report) For the Year Ended 31 March 2024 Financial Review Full financial details are in the audited accounts. The headline financial inforniation for 2023124: The company turnover decreased from £3,291,211 in 2022123 to £3,227,370 year end March 2024. While the company turnover h&g decreased for a successive year, the restructuring process completed in 22123 has achieved a significantly reduced expenditure posltion reducing from £4,305,382 to £3,225,505 in the year end 2024. Generally, income trended ahead of expected projections for the year. Key income successes included sports hall usage and pool usage. The trust also performed well in fitness membership income- exceeding the trust's aim. The trust continues to encounter higher property costs due to the ageing condition of one of ihe key contracts in place. Expenditure controls have remained stringent throughout the year. The Trust began repayments on the COVID Bounce Back Loan in Dec 2021, the balance remaining as of March 2024 is £27,435. The trust managed to report a small surplus of £1,865 in 23124. While this is only a small surplus it represents a huge improvement on the 22123 position. Cash at the bank had risen from £430,550 as of the end of March 2023 to £476,905 as of March 2024. The Trust liability for the LGPS pension scheme for the Dorset Contract showed a positive movement from a surplus of £3,000 to a surplus of £21,000. It should be noted that this &sse5sment is based on the annual actuarial assessment year-on-year. The underlying actuarial assessment of the 161 O Ltd LGPS liability projects the fund is in surplus. when considering the contract in terms of a transfer to a new operator in an 'on-going contract, basis. 161 O Ltd has successfully steered its way through major restruclure and reductions in central support to largely maintain its revenue streams whilst significantly reducing operating expenditure, allow the trust to post a surplus position. The coming financial year should be in a position to conlinue to Ihe momentum gained in 23/24. Going Concern The financial statements have been prepared on a going concern basis, which assumes that the company will have sufficient funds to pay debts as and when they fall due and continue in operation for a period of at least twelve months from the date of authorisation of the financial statements. Plans for Future Periods 202412025 Historically, the Trust prepares annual business plans and financial forecasls for the delivery of commissioned services and developmental work. In recenl years the business plans have been simplified as the core objective of the Trust has been to regain business and re-position the company and its resources post major global and national events. This will largely remain the same. The 2024125 Trust Plan set out: l. As a minimum success measure 1610 to achieve a £l15k surplus budget position by March 2025. 2. To position 161 O as an environmentally conscious business and ensuring truly sustainable approaches are taken. 3. Drive staff retention of colleagues who exhibit the 161 O DNA, values and team first approach. 4. Assess 1610,5 social value impact as a charity and identify key metrics that are reported to 1610 stakeholders to highlight the impact of its charitable work. 5. Review all front of house systems. 6. Implement new trust timeline planning tool to organise strategic and top end operational planning approaches. 7. Increase the Wellness membership base by 150/0 by March 2025
1610 Limited Trustees, Annual Report (Incorporating the Strategic Report) For the Year Ended 31 March 2024 8. To rollout 1610 marketing Strate tailored to each facility to help dellver its financial outcomes &s set out in the budgets. 9. To improve the quality of service and offer at every 161 O centre by setting out quality assurance metrics. 10. To achieve contract extensions and acquisitions. Financial viability remains paramount for the Trust. This will involve a continuation of building bacl growing and sustatning the usual 161 O business income streams. In addition to building back the business levels the trust will have to carefully balance this against the backdrop of the cost-of-living crisis which brings two key risks. Firstly, that the Trust's core user base may find their disposable income is squeezed leading to a drop in demand for leisure services undermining the trusts ambitions of organic growth. Secondly is the ever increases in cost to the trust when purchasing the key resources leading to increasing expenditure. The later of these will need to be carefully managed with leisure faculties often being energy hungry, The trust will continue its work in 202412025 to seek a suitable partner to help move the trust forwards by seeking opportunities through its leisure management consultants to merge in some form with a another leisure operator with a shared vision and shared values. Principal Rlsks and Uncertainties A full review of ihe Business Risk Regisler lakes place throughout the year, this is reviewed on a regular basis and the Board is presented with a Business Risk Improvement Plan at each Board meeting, together with any additional risks that are identified. The risk assessment covers all areas of the business including operational, financial, compliance, external and governance risks, particularly in the lighi of any new projects undertaken and changes to the political climate and local economies. The current principal risks and uncertainties faced by the Trust are: Impact of the increase in energy cost linked to Ukraine / Russia War. Recruitment and retention of staff. Further extension of existing 161 O public sector contracts. Reliance on low margin activities. Major Plant failure at sites where 1610 has full repairing liabilities. Growth of online leisure provider5 1 Home fitness market / new outdoor leisure provision. Loss of key management (TrusteelCEO/SLT). Failure of Duty of Care (Health & Safety and safeguarding). Increasing Pension liabilities with the Dorset LGPS. Heightened safeguarding requirements impacting on operations on School based dual use sites. The remaining short timespan on the two remaining Council leisure services contracts, Financial viability of a much smaller Trust operation particularly linked to inflation costs. Systems and processes have been put in place to manage and mitigate the risks 1610 face. For health and safety and safeguardin& external consultants are used to assess operational performance, highlight risk management issues and actions needed and provide on-going training. All staff undergo fomial training and regular updates and courses to ensure they understand their responsibilities regarding safeguarding. Recruitment processe5 are robust ensuring everyone follows due process, and all staff are Disclosure and Barring Service (DBS) cleared b¢fore they can cornmence employment with the Trust, The Tt uses QUEST, a national accredited quality assurance sports framework, to externally assess all aspects of operational performance - highlighting excellence and areas for improvements. These external processes support periodic reviews at Board level prompting adjustment to operations as risks change or new challenges arise. Mentor Natwest is available, on demand, for external HR support and advice.
1610 Limited Trustees, Annual Report (Incorporating the Strategic Report) For the Year Ended 31 March 2024 161 O Ltd appointed Right Directions a nation UK HIS provider - to audit all aspects of the Trust operations, provide refresher training for staff and produce a plan to ensure that the re-opened sites and services had a high-quality HIS system in place. Robust and rigorous financial processes are in place to ensure performance is regularly reviewed on a daily I weekly and monthly level and corrective action taken quickly. This has been essential during the COVID pandemic. Whilst significant relianc¢ is placed on the CEO and SLT'S skills. ¢ach has a dedicated team supporting them and no individual works in isolation, ensuring adequate cover can be put in place immediately, temporary Cover could also be provided by recruiting external professionals, together with support from the Trustees, At a more strategic level, legal and financial risks are identified and mitigaled through our work with professional advisers and auditors. 1610 continually strives to improve their margins by developingtheir own branded products and reviewing work practices to ensure the Trust operates as efficiently as possible. 1610 remains flexible in its approach to ensure it Can adapt to changes in legislation and contractual requests. Pool plant failure will always remain a risk that is difficult for 1610 to mitigate against, however we collaborate closely with our contractual partners to ensure the plant is maintained appropriately where il is our direct contractual responsibility to do so. Risk management is a standing item on the monthly Senior Leadership Team agenda and quarterly Board agenda. Financial Risk Management Objectives and Pollcles The Trustees are responsible for monitoring financial risk. Appropriate policies have been developed and iniplemented to identify, evaluate, and manage the key risks. a) Price risk - The charity is exposed to price risk as a result of its operations. Due to the economic climate and new leisure budget operator competilion the charity must sell and provide services at competilive price to maintain membership levels, b) Credit risk - Due to the charity's activities, credit is very rarely glven. Any credit extended to customers is subject to appropriate review and monitoring. c) Liquidity risk Trustees have regularly been updated on cash flow and financial risk. Support has been requested by the Trust from financial advisors and commercial lenders to help manage the Trust business. d) Cash flow risk- the CEO / Finance Team have provided the Board with quarterly updates on cashflow through the COVID pandemic period. In addition to updates when significant changes have occurred. Cashflow can be tracked daily via the Xero finance system. This data is available to all Trustees and Senior staff daily. e) Economic risk - The charity's performance is directly impacted by the economic environment. To manage this risk, the charity strives to deliver competitively priced products and services. The charity is actively concentrating on improving efficiency and reducing costs. 0 Credit Rating- the Trust is aware that it is essential to maintain a strong, positive financial profile. The Trust credit rating is reviewed periodically to monitor the health of the Trust finances. 10
1610 Limited Trustees, Annual Report (Incorporating the Strategic Report) For the Year Ended 31 Mareh 2024 Post balance sheet events - April 2024 onwards Business returns 1610 income and revenue lines have continued with expected industry trends, with income trending ahead projections. Cashflow The Trust cashflow position and cash reserves remain positive and as of September 2024 total cash in the bank stood at £523,752. Workforce & Recruitment 161 O is now operaling with a workforce of176 staff. The labour market fluctuates throughout the year and at times recruitment can be a challenge for 161 O due to the transient nature of the workforce. Financial Performance The trust has been able to remain in stable position for the first 6 months of 2024125 and is expected to make a surplu5 at the end of the 2024125 year. Change in Ownership In August 2024 1610 Limited became a wholly owned subsidiary of Wealden Leisure Limited (Trading a5 Freedom Leisure).
1610 Limited Trustees, Annual Report (Incorporating the Strategic Report) For the Year Ended 31 March 2024 Trustees, Responslbility Statement The Trustees, who are also Directors of 1610 Limited for the purposes of company law, are responsible for preparing the Trustees, Report (incorporating the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard l 02: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 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 charilable company and of the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to., select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements. prepare the financial statements on the going concern b&8is unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking re&sonable steps for the prevention and detection of fraud and other irregularities In so far as the Trustees are aware: there is no relevant audit information of which the charitable company'5 auditors are unaware. and The Trustees have taken all steps that they ought to have taken to make themselve5 aware of any relevant audit information and to establish that the auditors are aware of that information. Authorisatlon of Fingnclal Statements, Trustees, Report and Slralegic Report The financial statements, which incorporate the Trustees, Report, the Trustees, Responsibilities, and the Strategic Report, were approved by the Board of Trustees on 23 January 2025 and signed on their behalf by: P. Harvey Trustee 12
1610 Limited Independent Audilor's Report to the Trustees of 1610 Llmited For the Year Ended 31 March 2024 Opinion We have audited the financial statements of 1610 LimAt¢d (the 'Charithble company) for the year ended 31 March 2024 whi¢h comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cashflows and notes to the financial statements, including stgnificant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its income and expenditure for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. have been prepared in accordance with the requirements of the Companies Act 2006. 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 Auditor's responsibilities for Ihe audit of the financiaI statements section of our report. We are independent of the charitable 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 responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sU1clent and appropriate to provide a basis for our opinion. Concluglons relating to going Concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubl on the entity's ability to continue as a going concern for a period of at least 12 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 relevanl sections of this report. Other inforniation The other infonnation comprises the information included in the annual report, including the trustees, report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other inforniation contained within the annual report. Our opinion on the financial statements does not cover the other infonnation and, except to the extent otherwise explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. 13
1610 Limited Independent Auditor's Report to the Trustees of 1610 Limited For the Year Ended 31 March 2024 Our responsibility is to read the other inforniation 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 k materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detern)ine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement 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 Act 2006 In our opinion, based on the work undertake in the course of the audit: the information given tn the trustees, report (incorporating the strategic report and the directors, report) prepared for the purpose of company law, for the financial year for which the financial stalements are prepared is consistent with the financial statements. and the trustees, report (incorporating the strategic report and the directors, report) have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by ex¢eptlon In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified Inaterial Inisstatements in ihe trustees, report (incorporating the strategic and directors, report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate and proper accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us, the financial statements are not in agreement with ihe accounting records and returns. certain disclosures of trustees, remuneration specified by law are not made. or we have not obtained all the information and explanations necessary for the purposes of our audit. Responsibilities of the trustees As explained more fully in the trustees, responsibilities statement, 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 15 necessary to enable the preparation of financial statements that are free from material misstatetnent, whether due to fraud or error. In preparing the financia] statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosin& 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. 14
1610 Limlted Independent Auditor's Report to the Trustees of 1610 Limited For the Year Ended 31 Mareh 2024 Auditor's responsAbilities for the audit of the financial statements Our objectives are to obtain re&sonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assuran¢¢ is a high level of &8surance, 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 responstbilities, 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: Identifying and assessing potential rlsk8 of material misstatement due to irregularities We considered the following when identifying and assessing risk5 of material misstatement due to irregularities. including fraud and non-compliance with laws and regulations: the legal and regulatory framework in which the charitable company operates the sector in which the charitable company operates the control environment and controls established to mitigate such risks the results of our enquiries of management about their identification and &8sessment of risks of irregularities discussions with the audit engagement team about where fraud might occur th¢ incentives for fraud. Laws and regulations which are considered to be significant to the charitable company include those relating lo the requirements of financial reporting framework FRS102, the Companies Act 2006, the Charities Act 2011, UK tax legislation, employment law and health and safely. In addition, we consider other laws and regulation which may not directly impact the financial stalements bul may impact on the operation of the charitable company. As a result of these procedures we concluded, in accordance with Inlernational Auditing Standards, that a risk in relation to the potential for management override of controls exisled. Audit responses to rfi$k8 identified We undertook audit procedures to respond to Ihe risks identified, and designed our audit testing to respond to these risks. The additional procedures we undertook included the following.. gaining an understanding of the charitable company's procedures for ensuring compliance with laws and regulations testing the appropriateness of journal entries and other adjustments considering whether accounting estimates were indicative of potential bias considering whether any transactions arose outside the normal course of business making enquirles of management corroboraling our enquiries through review of Board Minutes and correspondence. We also communicated relevant laws and regulations and potential fraud risks to all engagement team Members and remained alert to any indicators of fraud or non-compliance with laws and regulations throughout the audit. A further description of our responsibilities for the audit of the financial statements is locatcd on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor'5 report. 15
1610 Limited Independent Auditor's Report to the Trustees of 1610 Limited For the Year Ended 31 March 2024 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 Compani¢s 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 auditor's 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 mernbers as a body, for our audit work, for this report, or for the opinions we have formed. Michael Cook Bsc FCA (Senior Statutory Auditor) For and on behalf of A C Mole LLP Chartered Accountants and Statutory Auditors Stafford House Blackbrook Park Avenue Taunton Somerset TAI 2PX 27 2025 A C Mole LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 16
1610 Limited Statement of Financial Activities (incorporating the Income and Expenditure Account) For the Year Ended 31 March 2024 As Restated Total Funds 2023 Unrestricted Funds Restricted Funds Total Funds 2024 Note INCOME FROM Donations and legacies Charitable activities Other trading activities Investments Total Income 14,835 3,061,146 145,641 5,748 3,227J70 14.835 3,061,146 145,641 5,748 3,227,370 36,464 3,110,564 141,352 2,831 3,291,211 EXPENDITURE ON Raising funds 76,427 76,427 92,018 Charitable activities Reorganisation costs 3,149,078 3,149,078 4,026,887 186,477 4,213,364 3,149,078 3,149,078 Total Expendlture 3,225,505 3,225,505 4,305,382 Net Income/(Expenditure) 1,865 1,865 {1,014,171) Transfer between funds 20 Nel incomel(expenditure) after transfers 1,865 1,865 {1,014,171) Other recognised gains Remeasurement of defined benefit pension schemes 21 18,000 18,000 549,000 Net movement in funds (16,135) (16,135) (465,171) Total funds brought forward 650,049 651351 1,116,522 Total funds carried forward 20 633,914 1,302 635,216 651J51 The results for the period derive from continuing activities and there are no gains or losses other than those shown above. The notes forni part of these financial statements. 17
1610 Limiled Balance Sheet (registered no: 06727055) As at 31 Mareh 2024 As Restated 2023 2024 FIXED ASSETS Tangible assets Investments Note io 509,460 597,314 509,461 597.315 CURRENT ASSETS Stocks Debtors Cash al bank 12 13 10,940 135.150 476,905 622,995 7.289 94,723 430.550 532,562 CREDITORS Amounts falling due within one year 14 482,883 471,255 NET CURRENT ASSETS LESS CURRENT LIABILITIES 140,112 61,307 CREDITORS Amounts falling due after more than one year 15 (17,357) (28,271) PENSION ASSET 21 3,000 21,000 NET ASSETS 635,216 651,351 CAPITAL AND RESERVES Unrestricted income funds Designated funds Total unreslrleted funds 19 19 609,908 626,043 633,914 650,049 Restricted funds 19 1,302 1,302 Total Reserves 635,216 651,351 The flnancial statements were approved by ihe Board of Directors on 23 January 2025 and were signed on their behalf by: P Harvey TRUSTEE R Cardwell TRUSTEE The notes forni part of these financial statements.
1610 Linjited Statement of Cashflows For the Year Ended 31 March 2024 Restated 2023 2024 Note Cash flows from operating activities Net cash generated/(used) by operating activities 41,255 248,077 Cash flows from investing activities Purchase of tangible fixed assets Sale of tangible fixed assets Interest received Net cash (used)/generated by investing activities (10,544) (69,569) 68,553 2,831 1,815 5,748 4,796 Cash flows from financing activities Loan (repayments) Hire purchase new borrowinW(repayments) Net cash generated/(used) in financing activities (10,648) 20,544 9,896 (10,648) 72,045 82,693 Increase/(Decrease) In cash and cash equivalents 46,355 (328,955) Cash and cash equivalents at beginning of year 430,550 759,505 Cash and casb equlvalents at end of year 476 905 430 550 The notes fonn part of these financial statements. 19
1610 Limited Notes to the Financial Statements For tkne Year Ended 31 March 2024 I RECONCILIATION OF NET INCOME/(EXPEIYDITURE) TO CASH GENERATED FROM OPERATIONS Restated 2023 2024 Net in¢ome/(expenditure) Net interest (income)/expense Depreciation charges Profit on disposal of fixed assets {Increase)/Decrease in stocks (Increase)/Decrease in debtors (Decre&se) in creditors (Re-measurement)/lmpairment of fixed assets 1,865 (2,330) 152,588 (1,014,171) 4,984 241,585 292,792 8,390 364,581 (175,588) 29,350 (3,651) (40,427) (12,600) (54,190) Cash generatedl(used) by operations 41,255 248 077 2 CASH AND CASH EQUIVALENTS The amounts disc105ed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Balance Sheet amounts,, 2024 2023 Cash at bank and in hand Short term investments - deposit account 10,158 466,747 (3,448) 433,998 476 905 430 550 20
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 ACCOUNTING POLICIES General information 161 O Limited carries out its objects as noted in the Trustees, annual report. The company is a charitable company and is incorporated and domiciled in the UK. The address of the registered office is Trinity Sports and Leisure, Chilton Street, Bridgwater, Somerset, TA6 3JA. Basis of preparation and statement of complianee The financial staternents have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019)- Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 1610 Llmited meets the definition of a public benefit enttty under FRS 102. The financial statements have been prepared under the historical cost convention unless othenvise stated in the relevant accounting policy note(s). Preparation of the aecounts on a golng concern basis The Irustees have considered the going concern requirements and are of the opinion that the accounts should be prepared on this basis as the company has sufficient funds to continue trading for the foreseeable future. We believ¢ 1610 has sufficient reserves to continue to trade for at least 12 months from the date of signing the report. Summary of significant accounting policies The principal accounting policies adopted, critical accounting estimates, judgements and key sources of estimation uncertainty in the preparation of the financial statements are sel out below. These policies have been applied consistently unless otherwise stated. Income All income is recognised once the Charity has entitlement to the resources, it is probable that the income will be received and ihe monetary value of the income can be measured with sufficient reliability and is not deferred. Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably. Where the criteria for recognition are met in advance of grants actually being received then the income is recognised within ihe statement of financial activities and amount due included within accrued income in debtors. Where income is received in advance, it is included within deferred income in creditors until the income recognition criteria are met. 21
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 ACCOUNTING POLICIES - Continued. Expenditure Liabililies are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals b&sis and has been classified under the headings that aggregate all costs related to the category. Expenditure includes any VA T which cannot be fully recovered and is reported as part of support costs. Raising funds comprises all costs associated with raising additional funds for Charity through vending and other sales. Charitable activities comprise all costs directly incurred in undertaking activities to fulfil the Charity's objects, together with any support costs allocated in accordance with the support cost accounting policy as described below. Other expenditure represents those items not falling into any other heading. Support costs include administration and head office costs not directly attributable to particular charitable activities are apportioned to charitable activities as delailed in note 7 to the financial statements. Fund accountlng The unrestricted general fund represents the accumulation of the Charity's income and expenditure that has not been earmarked for specific projects and is not considered by the Trustees lo be for a restricted purpose. To Ihe extent thal the fund is represented by readily realisable assets it provides a means of financing the day-to-day operations. Designated funds represent amounts sel aside by the Trustees for a particular purpose. Restricted funds represent the funds received by the Charity for particular purposes as directed by the donors. Hire purchase and leasing commltments Assets obtained under hire purchase contracts or finance leases are Capitalised on the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. Rentals paid under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. 22
1610 Limited Notes lo the Financial Statements For the Year Ended 31 March 2024 ACCOUNTING POLICIES- Continued. Tangible Fixed Assets Tangible fixed assets costing over £500 are initially recorded at cost. Depreciation is provided at the following annual rates in order to write off the cost less estimate residual value of each asset over its estimated useful life: Leasehold improvements Sports equipment.. straight-line over the remaining lease term. straight-line over l O years or over the remaining lease temi, Resistance equipment - straight-line over 10 years or over the remaining lease tenn. straight-line over l O years. straight line over l O years. Cardio equipment All other fixtures and equipment Computer Software Investments in Subsidiary Undertakings Investments in subsidiary undertakings are measured at cost and reviewed annually for impairnient. On the basis that the substdiary is not material to the group, consolidated accounts have not been prepared. Stocks Stocks and work in progress is stated at the lower of cost and net realisable value. Cash gnd cash equivalents C&sh and cash equivalents include cash in hand, deposits and other short-term highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value. Provisions Provisions are recognised where the charity has a present obligation resulting from a p&8t event that will probably result in the transfer of funds to a third party and ihe amount due to settle ihe obligation can be measured or estimated reliably. Creditors and provisions are nornlally recognised at their settlement amount after allowing for any trade discounts due. Financial instrument$ Basic financial assets, including trade and other debtors, cash and bank balances and investments in term deposits, are initially recognised at transaction price. Such assets are subsequently carried at amortised Cost. Al Ihe end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impaimient. Any impairment losses are recognised in profit or loss. Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price. Trade and other creditors are measured at amortised cost using the effective interest method. Debi instruments are subsequently carried at amortised cost, using the effective interest rate method. Pension costs and other post-retlrement benefits Defined contribution pension plan (a) The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contribulions to a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. 23
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 ACCOUNTING POLICIES- Continued Defined benefiipensionplan (b) The company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan. The asset/liability recognised in the balance sheet in respect of the defined benefit plan is the shortfalVex¢ess of the present value of the defined benefit obligation at the end of the reporting date less, the fair value of the plan assets at the reporting date. The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is detemined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating the estimated period of future payments (discount rate). The fair value of plan assets is measured in accordance wilh 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 arising from experience adjustments and changes in actuarial assumptions are charged or credited to the statement of financial activities. These amounts logether with the return on plan assets, les5 amounts included in net interest, are disclosed as "Remeasuremeni of net defined benefit liability" The cost of the defined benefit plan, recognised in the profit or loss as employee costs, except where included in the cost of an asset, comprises: i) The increase in pension benefit liability arising from employee Service during the period. and ii) The cost of plan introductions, benefit changes, curtailments and settlements. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. The cost is recognised in the statemenl of financial activities as a finance expense. Critie81 accounting estimates and judgements The preparation of the financial statement5 in conformity with FRS 102 requires management to make j udgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Estimales and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates or assumptions that have a significant risk of causing a materiaI adjustment to the carrying amounts of assets and liabllities within the next financial year are set out below. 24
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 ACCOUNTING POLICIES- Continued. Defined benefitpension scheme (a) The company has an obligation to pay pensions beneftts to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including: life expeclancy, salary increases, &8set valuations and the discount rate on corporate bonds. Management estimate these factors in detemlining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See note 21 for the disclosures relating to the defined benefit pension scheme. Prior period adjustment Wher¢ corrections are required to comparative figures, these are adjusted in the earliest period to which they relale. Details of such restatements are included in note 26. NET INCOMEI(EXPENDITURE) Net incomel(expenditure) is stated after (crediting)Icharging:" As Reslaled 2023 2024 Depreciation Auditors remuneration for audit work Auditors remuneration for accountancy services Auditors remuneration for taxation and other services Loss on disposal of fixed assets Interest on bank loans Interest on hire purchase Rentals under operating le&ses- plant and machinery Impairment of sports equipment 152,558 14,550 6,925 28,605 241,585 12,700 3,700 4,950 292,792 1,062 6,753 3,457 29,350 812 2,606 719 ,908 DONATIOIYS AND LEGACIES 2024 Total 2023 Total Unrestrieted Restricted Unrestricted Re$trlcted Grants & donations 14,835 14,835 18,512 17,952 36,464 14,835 14,835 18,512 17,952 36,464 25
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1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 OTHER TRADING ACTIVITIES Income from Vending and Bar Sales 2024 Raising Funds - Cost of Sales 2023 2024 2023 BSF contract Dorset contract Activities 114,950 25,878 4,813 115,599 17,449 8,304 60,825 11,384 4,218 70,841 14,901 6,276 Total Sites 145,641 141J52 76,427 92,018 27
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1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 8 STAFF COSTS 2024 2023 Salaries and wages Social security costs Pension costs Redundancy costs 1,519.098 85,035 38,107 1,898,696 130,374 60,283 96,660 1,642,240 2,186,013 No employee's emoluments fell within the band of £80,000 - £89,999 (2023: One). No employee's emoluments fell within the band of £260,000 - £269,999 (2023: One). Some employees are members of a defined benefit pension scheme, details of which are provided in note 21. Key management personnel remuneration is disclosed in note 22. The average number of employees during the period, analysed by contract, was as follows: 2024 2023 BSF Contract Dorset Contract Activities Total Direct Staff Head Office Admin Support 66 66 19 66 66 151 153 158 161 TRUSTEES, REMUNERATION During the period, no remuneration has been paid to the Trustees or any person connected with them (2023: £Nil). No travelling expenses were paid to Trustees (2023,, £Nil). 29
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 10 FIXED ASSETS - As Restated Leasehold Property Improvements Fixtures and Equipment Computer Software Total Cost At l April 2023 Additions 922,128 1,261,940 10,544 126,793 2,310,861 10,544 At 31 March 2024 922,128 1,272,484 126,793 2,321,405 Depreciatlon At l April 2023 Charge for year Impairmentl(remeasurement) 624,399 57,987 1,047,577 81,476 54,190 41,571 13,125 1,713,547 152,588 54,190 At 31 March 2024 682,386 1,074,863 54,696 1,811,945 Net Book Value At 31 March 2024 239,742 197,621 72,097 509,460 At 31 March 2023 297,729 214,363 85,222 597,314 Included within fixed assets are assets with a net book value of £32,658 (2023: £9,509) relating to assets held under finance lease agreements. The depreciation charged in the period in respect of assets held under finance lease agreements amounted to £31,041 (2023: £16,596). During the year on renewal of finance leases, the net realisable value of the relating assets was reviewed. The assets were subsequently upwardly remeasured by £54,190 to the remaining lease value (2023.. £29,350) li INVESTMENTS Total Cost At l April 2023 and at 31 March 2024 Net Book Value At 31 March 2024 At 31 March 2023 161 O Limited owns l OOO/o of the subsidiary Incedo Limited. The Company's principal activity is to carry out trading activities on behalf of161 O Limited. 30
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 12 STOCKS 2024 2023 Trading stock 10,940 7,289 10,940 7,289 13 DEBTORS 2024 2023 Trade debtors Other debtors Prepayments Amount owed by subsidiary undertaking 60,202 24,926 48,820 1,202 28,832 29,280 35,409 1,202 135,150 94,723 14 CREDITORS: AMOUIYTS FALLING DUE WITHIN ONE YEAR Restaled 2023 2024 Trade creditors Social security and other taxes Finance leases Other creditors Bank loans Accruals Deferred income 118,819 33,757 32,659 5,021 10,078 217,802 64,747 82,845 38,400 9,509 6,794 9,000 263,044 61,663 482,883 471,255 31
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 15 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2024 2023 Bank loans 17,357 28,271 17.357 28271 An analysis of the maturity of loans is given below: 2024 2023 Bank loans Amounts falling due within one year 10,078 9,000 Amounts falling due between one and two years 10,332 10,906 Amounts falling due between two and five years 7,025 17,365 16 SECURED DEBTS The following secured debts are included within creditors: 2024 2023 Credltors: amounts falllng due within one year: Finance leases Bank loans 32,659 10,078 9,509 9,000 Creditors: amounts falling due after one year: Bank loans 17,357 28,271 60,094 46,780 The finance leases are secured on the related leased 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 charg¢ over all other property assets and rights of the company. The loan was drawn down in November 2020 under the provisions of the Coronavirus Business Interruption Loan Scheme (CBILS). The loan carries interest at the rate of 2.5 % and will be fully repaid by Novernber 2026. 32
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 17 CONTINGEIYT LIABILITY The Charity had guaranteed its payment obligations under a contract for the management of leisure facilities by arranging performance bonds for £115,744 and £90,528 which expire in January 2025 and £29,000 and £IOO,000 which expired in October 2024. 18 LEASE COMMITMENTS Hire purchase eontracts Minimum lease payments fall due as follows.. 2024 2023 Net obligations repayable: Within one year 32,659 9,509 32,659 9,509 Other operating leases 2024 2023 Non-caneellable operatlng leases Minimum paymenls under the leases are as follows',- Leases expiring: Within one year Between one and five years 719 2,738 719 719 3,457 33
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 19 ANALYSIS OF NET ASSETS BETWEEN FUNDS Tangible rixed assets Net current assets Long terni Liabilities Pension Liability Total Restricted Income Funds GAP funding 1,302 1,302 Total Restricted Funds 1,302 IJ02 Unrestrieted Income Funds Trinity sinking fund - designated Unrestricted income funds Pension reserve 24,006 114,804 24,006 606,908 3,000 509,461 (17,357) 3,000 Total Unrestricted Funds 509,461 138,810 (17J57) 3,000 633,914 Total Funds 509,461 140.112 (17,357) 3,000 635,216 Purposeg of Restricted Funds GAP funding is for supporting the programme of play schemes in Glastonbury. The money was for purchasing and maintaining equipment to benefit the children. Purposes of Designated Funds The Trustees have set &side the following designated fund: The Trinity sinking fund - which represents fund set aside in respect of future facilities management services of the Trinity c¢ntre. The Pension reserve relates to the defined benefit pension scheme as detailed in note 21. 34
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 20 MOVEMENT IN FUNDS Restated Balanee as at l April 2023 Balance as at 31 March 2024 Actuarial Gain Income Expenditure Transfers GAP fundtng Total Restricted Funds 1,302 ,302 1,302 1,302 Trinity sinking fund - designated Unrestricted income funds Pension reserve 24,006 24,006 605,043 21,000 3,227,370 (3,225,505) 606,908 3,000 (18,000) Total Unrestrl¢ted Funds 650,049 3,227,370 (3,225,505) {18,000) 633,914 Total Funds 651J51 3,227J70 {3,225,505) (18,000) 635,216 35
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 21 EMPLOYEEBENEFITOBLIGATIONS West Dorset District Council scheme During the y¢aT ended 31 March 2013, 1610 Limited agreed a contract to provide leisure services for West Dorset District Council. Part of this contract included the transfer of employees and their associated pension benefit obligations. As part of the transfer agreement the defined pension obligations in respect of transferred employees became the responsibility of 1610 Limited from l October 2012. These pension scheme obligations at the balance sheet date showed a surplus of £3,000 (2023: Surplus of £21,000). The employer contributlons expected to be paid to WDCC scheme during the period ending 31 March 2025 are £4,000. The assets of this defined benefit scheme are held separately from those of the company and comprise segregated funds of the Dorset County Council Pension Fund in respect of pension benefits provided by the Local Govemment Pension Scheme (LGPS) to employees of1610 Limiled. The LGPS is a defined benefit statutory scheme administered in accordance with Local Government Pension Scheme Regulations 2014. It is contracted out of the State Second Pension and currently provides benefits based on career average revalued salary and length of service on retirement. The scheme is now closed to new members. Contributions are set every three years as a result of the actuarial valuation of the Funds required by the Regulations. The most recent full valuation was 31 March 2019. The next actuarial valualion of the Funds will be carried out as at 31 March 2022 and will set contributions for the period from l October 2023 to 31 March 2026. There are no minimum funding requirements in the LGPS but the contributions are generally set to target a funding level of l 00% using ihe actuarial valuation assumptions. The company does not operate any unfunded schemes. 36
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 21 EMPLOYEE BENEFIT OBLIGATIONS- continued The amounts recognised in the statement of financial activities are &5 follows: 2024 Total 2023 Total Defined benefit scheme.. Current service cost 5,000 10,000 Total charge in operating profit 5,000 i 0,000 Defined benefit scheme.. Net interest {income)lexpense Admin expenses ( 1,000) 1,000 13,000 1,000 Tolal charge 5,000 24,000 Defined Benefit Pension Plans 2024 Total 2023 Total Present value of funded obligations Fair value of plan assets Impact of asset ceiling (696,000) 797,000 (98,000) (695,000) 716,000 Pension fund assets 3,000 21,000 The principal Aetugrial a5suinptions at the balance sheet date Ivere: 2024 2023 Discount rate Future salary increases Future pension increases Consumer Price Index price incre&se 4.95 % 2,90/0 4.8% 2.90/0 2.9% 2.9% 2.9% 37
1610 Limited Notes to the Financial Statements For the Year Ended 31 Mareh 2024 21 EMPLOYEE BENEFIT OBLIGATIONS - continued Mortality Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience. The post retiremenl mortality tables adopted are the S3PA tables with a multiplier of 900/0 for males and l OOO/o for females. These base tables are then projected using the CMI 2020 Model, with an allowance for future longevity improvement of1.250/0 per annum, smoothing parameter of 7.5 %, an initial addition parameter of 0.50/opa and a 2020 weighing of 250/0.The 2020 weight parameter reflects the exceptional mortality due to the coronavirus pandemic. The effect on assumed life expectancies is demonstrated in the table below. The average life expectancy in years for a member from the age of 65 are: 2024 (years) 21.8 23.9 23.1 25.40/0 2023 (years) 22.2 24.2 23.5 25.6 Retiring today.. Male5 Females Males Females Retiring in 20 years Demographic / statistical assumptions; A set of demographic assumptions thal are consistent with those used for Ihe most recent fund valuation as at March 2024 were adopted. Reconciliation of seheme assets and liabilities Assets £000 716 (7) Liabilities £000 (695) Total £000 21 At l April 2023 Benefits paid Employer contributions Contributions by scheme participants Current service cost Interesl income/(expense) Admin Expenses (i) (5) (33) (5) 34 (i) (i) Remeasuremenl Actuarial gains Relurn on plan assets excluding interest income Impact of asset ceiling ainsl losses 31 31 51 (98) (98) At 31 March 2024 699 696 38
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 21 EMPLOYEE BENEFIT OBLIGATIONS- continued The fair value of the major categories of scheme assets are as follows: Defined Benefit Pension Plans-Total 2023 £000 446 2024 £000 499 Equities Liability driven investment Other bonds Diversified Growth Fund Infrastructure Multi asset credit Property Cash 52 53 59 55 62 17 47 48 54 47 58 12 797 716 The return on plan assets was: 2024 £000 34 2023 £000 20 55 Inlerest income Return on plan assets less interest income Total return on plan assets (17) {35) 22 RELATED PARTY TRANSACTIONS During the year the company paid for goods and services on behalf of Incedo Limited, a wholly owned subsidiary to the value of £1,219 (2023: £2,869). A balance of £1,202 (2023: £1,202) was owing from Incedo Limited at the balance sheet date. The key management of the charity comprises the Chief Executive Officer. The total employee benefits of the key managemeni personnel were for the year £55,976 (2023 CEO and SL T: £517,715). 23 COMPANY LIMITED BY GUARANTEE The company is limited by guarantee and has 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 taken by the Board of Directors who are the members of the company. 39
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 25 COMPARATIVE INFORMATION STATEMEIYT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR EIYDED 31 MARCH 2023- AS RESTATED Unrestrieted Funds Restricted Total Funds 2023 Funds INCOME FROM Donations and legacies Charitable activities Other trading income Investments 18,512 3,110,564 141,352 2,831 17,952 36,464 3,110,564 141,352 2,831 Total 3,273,259 17,952 3,291,211 EXPENDITURE ON Raising funds Charitable activities Reorganisalion cost5 92,018 3,945,199 186,477 92,018 4,026,887 186,477 81,688 Total 4,223,694 81,688 4,305,382 Net expenditure Transfer between funds (950,435) 67,952 (63,736) (67,952) (1,014,171) Remeasurement of defined benefit pension schemes 549,000 549,000 Net movement in funds (333,483) (131,688) (465,171) Total funds brought fonvard 983,532 132,990 ,116,522 Total funds carried forward 650,049 1,302 651JS1 40
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 25 COMPARATIVE INFORMA TION (Contlnued) ANALYSIS OF NET ASSETS BETWEEN FUNDS AS AT 31 MARCH 2023- AS RESTATED Net Current Assets Long Term Liabilities Tangible Fixed Assets PeDSiOD Liability Total Restrieted Income Funds GAP Funding 1,302 1,302 Total Restricted Funds ,302 1,302 Unrestricted Income Funds Trinity sinking fund - designated Unrestricted incorne funds Pension reserve 24,006 35,999 24,006 605,043 21,000 597,315 (28,271) 21,000 Total Unrestrieted Funds 597,315 60,005 (28,271) 21,000 650,049 Total Fund5 597,315 61,307 (28,271) 21,000 651,351 41
1610 Limited Notes to the Financial Statements For the Year Ended 31 March 2024 25 COMPARATIVE INFORMATION (ContAnued) MOVEMENT IN FUNDS FOR THE YEAR EIYDED 31 MARCH 2023- AS RESTATED Balance as at l April 2022 Balance a5 at 31 March 2023 Actuarial Gain Income Expenditure Transfers GAP funding 1,302 ,302 South Molton Torridge 131,132 556 (81,132) (556) (50,000) ATP lights 17,952 (17,952) Total Restricted Funds 132,990 17,952 (81,688) (67,952) ,302 Trinity sinking fund - designated Unreslricled income funds Pension reserve 23,271 735 24,006 1,488,261 (528,000) 3,273,259 (4,223,694) 67,217 605,043 21,000 549,000 Total Unrestricted Funds 983,532 3,273,259 (4,223,694) 549,000 67,952 650,049 Total Funds 1,116,522 3,291,211 (4,305,382) 549,000 651,351 42
1610 Limited Notes lo the Financial Statements For the Year Ended 31 March 2024 26 PRIOR YEAR ADJUSTMENT Income Recognition During the year it was identified that income recognition timing in respect of membership fees was not consistent with the requirements of the Statement of Recommended Practice. Accordingly, the prior year comparatives have been restated. An opening balance adj ustment has been recorded to rectify the deferred income balance reducing opening net assets by £52,305, Th¢ comparative figures have also been updated increasing deferred income as al 31 March 2023 by £58,677. The impact of this adjustment is a £6,372 reduction to income in the comparative figures and a £58,677 reduction to net assets as at 31 March 2023. Fixed Asset Impairment During the year it was identified that fixed assels held under leases had not been depreciated in line with the lease term. Accordingly, the prior year comparatives have been restated to reflect the impairment of the assets reducing netbook value to the remaining lease value. An opening balance adj ustment to rectify the value of those assels has been recorded, reducing opening net assets by £92,431. The comparative figures have also been updated to reflect an impairment expense of £29,350 during the 2023 year. The overall impact is a reduction of nel assets of £121,781 as at 31 March 2023. Expenditure Recognition During Ihe year it was identified that expenditure accruals in respect of wages and profit share were understaled by £92,955. The comparative figures have been updated to reflect this additional expenditure. The impact of this adjustment is an increase of £92,955 to unrestricted expenditure and a decrease in net assets as at 31 March 2023. The effect of the above prior period adjuslments on reserves as at l April 2022 is as follows:. Unrestrleted Restrlcted Funds Funds Total Funds As previously reported Adjuslment of impairment of assets Adjustment of deferred income As restated at l April 2022 1,128,268 (92,431) 52,305 983,532 132,990 1,261,258 (92,431) 52,305 132,990 1,116,522 27 POST BALANCE SHEET EVENTS On l August 2024 Walden Leisure Limited, a Co-operative and Community Benefit Society, registration number IR29336R, has taken over the ownership of1610 Limited, 43