OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

Charity Registration No. 1131013

Company Registration No. 06822082 (England and Wales)

ABSOLUTELY LEISURE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

ABSOLUTELY LEISURE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J H Gillan A C Taylor J E Blackburn B E Edwards Key management personnel G Sinclair (Chief Executive) Charity number 1131013 Company number 06822082 Registered office The Arena Stafferton Way Maidenhead Berkshire United Kingdom SL6 1AY Auditor Azets Audit Services Gladstone House 77-79 High Street Egham Surrey United Kingdom TW20 9HY

ABSOLUTELY LEISURE

CONTENTS

Page
Trustees report 1 - 7
Statement of Trustees responsibilities 8
Independent auditor's report 9 - 12
Statement of financial activities 13
Balance sheet 15
Statement of cash flows 14
Notes to the financial statements 16 - 30

ABSOLUTELY LEISURE

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their report and financial statements for the year ended 31 March 2021.

The Trustees confirm that they comply with the requirements of the Charities Act 2011, as amended by the Companies Act 2006, the Memorandum and Articles of Association and the Charities Statement of recommended Practice (SORP) 2019.

Objectives and activities

Absolutely Leisure is a wholly owned charity that exists to provide or assist in the provision of facilities and services for recreational or other leisure time occupation in the interests of social welfare. Such facilities being provided to the public at large save that special facilities may be provided for persons who by reason of their youth, age, infirmity or disability, poverty or social or economic circumstance may have need of special facilities and services.

Additionally, the Charity aims to promote and preserve good health through community participation in healthy recreation and/or such other charitable purposes beneficial to the community consistent with the objects of the charity.

Achievements and performance

In these extraordinary times the Charity is pleased to have been able to survive and to re-open stronger than before. Furthermore, no staff were made redundant during the Pandemic. Clearly the performance and achievements of the Charity have been severely curtailed and most staff were either fully or flexibly furloughed.

Nonetheless, during the Pandemic the Charity extracted itself from a contract to manage Herschel Sports on behalf of Herschel Grammar School. This contract would have been not cost effective for us to continue.

Management also worked with our various landlords to negotiate workable and amicable compromises that satisfied both parties, and importantly upheld the values of the Charity.

Although the Charity did not qualify for most non-mandatory government and local authority grants, it was successful in securing a number of smaller grants from various trust funds, including – Wooden Spoon (£13,000), L&G (£600), Heart of Bucks (£4,064) and Tesco (£2,000).

Going Concern

Since the year end the Management Team have worked on improving its financial forecasting with the help and support of Kroll Ltd and NatWest Bank. Management have also significantly improved its operational processes, which has resulted in a substantial reduction in staffing costs, and with the launch of new websites have increased revenues. Since re-opening sites post year end the Group has recorded a surplus every month to date. The Statement of Financial Activities and cash flow forecast up to March 2023 shows the charity running to annual surpluses in both YE22 and YE23, with bank balances in excess of £200K.

Further information regarding going concern is contained in note 1.2. In the light of this, the Board have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

ABSOLUTELY LEISURE

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Financial review

The Charity reached the nadir of its financial challenges in March 2020 and was set for a return to profitability and continued growth in 2020/21. The global pandemic that followed created a further unprecedented challenge. The Charity was required to seek a Government backed CBILS loan of £570K to maintain its existence during the subsequent lockdown.

When restrictions eased in July / August 2020 the Charity’s facilities were allowed to slowly re-open, albeit with significant restrictions still in place. Nonetheless, trading was positive and this combined with the continued use of the Government Job Retention Scheme, and with the support of landlords enabled the Charity to make some profits.

However, the Charity was forced to close yet again in November, and bar for a couple of weeks in December at some sites, the Charity remained closed for the rest of the financial year. During this time it received no income other than Government support via community and business based grants. The Management Team worked hard with landlords to agree terms individually. These ranged from rent free periods, half rent periods, to deferment of full rents (effectively increasing the Charity’s indebtedness).

The result of such a turbulent year can be seen in the audited accounts for the period. Despite making an unsurprising significant loss during the year, the Charity was able to remain in existence and has re-opened with renewed vigour.

During the year senior staff agreed a 20% pay cut – from March 2020 through the entire year. There were no inflationary pay awards made during the year except for those receiving the National Minimum Wage increase. Senior management have not received a pay award for 5 years now.

Reserves policy

During the year the Board of Trustees monitored the charity’s reserves to ensure that a minimum reserve to £100K was maintained. However, in order to complete the purchase of the Maidenhead Kart Track, the Board approved the use of this reserve and put in place further monitoring and safeguarding measures. The Board has an aspiration to increase its reserves to a level of £250,000 over the next 5 years.

Pension Costs

Trustees are aware of the pension information required to be included in the statutory accounts. The pension referred to is a Local Government Pension Scheme (LGPS) for a total of 9 employees who have previously been transferred from the local authority. The scheme is underwritten by HM Government.

Trustees understand that the calculations required to be used for statutory purposes are notional and represent only one view of the pension fund, as directed by the FSA. In contrast the latest actuarial review from the Fund Managers appointed actuary, Barnet Waddingham, shows a real position - the fund is in surplus and employers’ contribution for the next 3 years are reducing substantially.

Risk management

The members of the Board have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Board members confirm that the major risks to the Charity have been reviewed and that systems or procedures have been established to manage those risks. With the termination of the SBC contract the principal risk to Absolutely Leisure was clarified and the sites managed by the Charity were returned to the Council after the Charity removed its assets. The Board of Trustees reviewed and updated the Risk register at every Board Meeting and management work to mitigate the risks identified.

The most significant risk that has emerged during the year is the impact of the pandemic on the economy, and leisure in particular. Other risks that have been identified include the loss of contracts and building lease renewals. New competition entering the market is less likely as a consequence of the pandemic.

The Risk Register includes 'events' that would materially impact the performance of the Charity. These include the loss of senior staff, the closure of a site, the potential impact of changes in legislation or taxation, health and safety risks. The Charity's management of the Pandemic and its implications for staff and customers is well documented, as are the steps necessary should restrictive measures be put in place again.

ABSOLUTELY LEISURE

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Plans for future periods

The Trustees have committed to growing the reach of the Charity and to delivering the programmes of Absolutely Together in every community that the Charity works in. Additionally the Trustees want to continue to offer ‘enabling support’ to complementary community groups and charities through the use of our venues.

The charity will return to a steady and sustainable position following the pandemic. Only then will Trustees direct the Management Team to identify and partner with organisations that can help deliver that strategy, and to extend its reach into new communities. This will be delivered through management contracts. In the next year the Charity intends to extend its Absolutely Together programme to encompass every community with at least one programme.

The Board of Trustees approved the disposal of a parcel of land in Maidenhead that it holds the long lease for, and for which it currently sub-lets to a garage for parking. This work continues.

Post year-end the Charity has been able to slowly re-open its facilities in line with the easing of Government restrictions, and did not need any further financial support from its bank. The Charity lost several staff during the lockdown and has re-opened with restricted opening hours, effectively migrating customers towards a 4 – 5 day operations for karting and ten pin. This has resulted in substantial savings in payroll. Management envisage that staff recruitment will become more challenging due to the unsocial working hours and relative low pay of the leisure and hospitality industries. Customer confidence is returning, helped by continued foreign travel restrictions which has meant that more people stayed at home during the summer holiday period, and had greater disposable incomes.

In November 2021, NatWest removed the covenants on the loans held by the charity. These loans expire in 2024.

Structure, governance and management

The Board of Trustees are also Directors of the parent company Absolutely Together (formally Slough Community Leisure) and the wholly owned limited company and subsidiary Absolutely Together Trading Limited (formally Slough Community Trading Limited). Where a taxable profit is made by the subsidiary this is gifted to the Charity. The Board met for formal meetings 6 times during the year to oversee the management and administration of the Charity, and to receive regular updates on various aspects of the Charity’s activities from the Management Team.

New trustees are invited to attend and observe at least 2 Board Meetings before confirming their acceptance to become a trustee. During the year the Board completed skills audit to help inform trustee recruitment. This identified the need for financial, HR and legal experience among new trustees’ skillsets.

The Management Team, led by the Chief Executive, meet fortnightly to review performance and agree workloads to achieve the Charity’s strategy. The Management Team includes Operations, Finance, People Management, Health and Safety and Business Development functions. In addition a quarterly meeting is held with the wider management team to discuss and plan future activities. Two junior managers are invited to attend each quarterly meeting to gain a better insight into the Charity and its management.

Governing document

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

List of Trustees

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

J H Gillan A C Taylor J E Blackburn B E Edwards

ABSOLUTELY LEISURE

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Recruitment and appointment of new Trustees

In exercising its powers to nominate, appoint, reappoint, elect, re-elect, approve and dismiss member, the members shall seek to ensure that the board is representative of the local community and also comprises persons with a broad range of skills who are likely to contribute to the Charity's success.

Board members induction and training

New Trustees are invited to attend and observe at least 2 Board Meetings before confirming their acceptance to become a Trustee. During the year the Board completed skills audit to help inform Trustee recruitment. This identified the need for financial, KR and legal experience amount new Trustees' skillsets.

All new members joining the Board received a full induction that is aimed at training them in their statutory responsibilities under Charity and company law. The induction will normally include:

Organisation structure & how decision are made

The Board of Trustees has responsibility for administering the charity. The Trustees have appointed a Chief Executive Officer to manage the operations of the Charity, The Board has agreed to delegated powers to manage this arrangement.

The Management Team, led by the CEO, meet fortnightly to review performance and agree workloads to achieve the Charity's strategy. The Management Team includes Operations, Finance, People Management, Health and Safety and the Business Development function. In addition a quarterly meeting is held with the wider management team to discuss and plan future activities. Two junior managers are invited to attend each quarterly meeting to gain a better insight into the Charity and its management.

Setting of pay

The People Development Scheme is a company policy that endorses all pay rate levels across both Absolutely Together and Absolutely Leisure, Both Boards approve any pay rises on an annual basis and these are then confirmed with the policy.

The pay of the Chief Executive is set in line with an historical survey of similar sized and complex organisations in the wider Third Sector, as well as in regard to the skills and experience of the postholder. The Chief Executive sets the pay for his immediate team, based on the framework detailed within the Charity’s People Development Scheme, and again with reference to the skills ad experience of the postholders.

During the entire financial year the Chief Executive along with other full time staff took a 20% pay cut.

ABSOLUTELY LEISURE

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Chair's Report

Like so many other charities and businesses, the last year has been an extremely challenging time for Absolutely Leisure. The charity was forced to close all of its centres and cease operations for all but 12 weeks of the year, as the first wave of the pandemic struck the UK in March 2020. Some activities were able to open with a restricted programme from August 2020 and were then closed by the second lockdown from November 2020. The Charity did not recommence business for the remainder of the 2020 -21 financial year.

The Charity was required to obtain a CBILs loan in order for it to continue to be viable and be able to re-open its facilities and begin slowly to support groups and charities within the communities it works in. Throughout the lockdown the Charity largely remained mothballed and furloughed all staff to retain as much cash as possible.

During the year the Trustees agreed to rename the parent organisation from Slough Community Leisure, to Absolutely Together. Absolutely Together has been the ‘brand’ that all the charity’s targeted children focused programmes were named, and this change better reflects the direction of the charity moving forward.

It remains our intention to focus on children with additional needs continually and permanently, and to further embed ‘Absolutely’ into every community we work in – putting smiles on faces.

I, and my fellow Trustees, would like to thank the staff of the Charity, our stakeholders and of course our customers, for supporting Absolutely Leisure and making our work possible.

Jackie Gillan Chair

23 November 2021

ABSOLUTELY LEISURE

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Public Benefit Statement

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives, and in planning future activities.

During normal operation the charity’s Absolutely Together programme provides free leisure activities to local families that have children with additional needs. The programmes provide free use of Absolutely Leisure activities as well as donating vouchers for free access to other local “partner” leisure facilities. During the national lockdown between March and July, and again later in the year, both our own and the partner leisure facilities were forced to close to the public, meaning that the traditional programmes could not be delivered.

The team therefore looked at further opportunities to help families confined to their homes, with the challenge of keeping their children occupied during this difficult period.

Smile Boxes

With the assistance of a grant from the Tesco’s Bag for Help scheme, and working with the local Age Concern charity in Berkshire. Absolutely Leisure redistributed some of the toys, games and children’s books from local charity shops unable to trade due to local restrictions.

Smile Boxes were created, including some of these items as well as arts and crafts packs and other activities that families could participate in together at home. Working closely with local SEND schools over 40 boxes were distributed to families in Berkshire and Buckinghamshire.

The feedback from the families that received the boxes was extremely positive, families were so grateful and commented on the lift that it gave their children and themselves at a very challenging time. The aim was to improve families’ mental wellbeing through this difficult period.

Together Karting

Following a grant from the Wooden Spoon, Absolutely Leisure has been able to expand its successful Together Karting programme. The programme offers children with additional needs the unique opportunity to experience karting through the use of specialist dual seat karts. The grant enabled the purchase of 2 additional karts, allowing the capacity of the existing programme at Maidenhead to be doubled and the launch of a new programme in Aylesbury. Despite facility closures the group were able to provide 41 sessions across the two facilities, between September and October 2020.

Absolutely Leisure remains the only charity in the UK delivering dual seat karting for free to families that have children with additional needs. Feedback from the sessions shows that not only do participants enjoy the experience, it significantly helps them develop their co-ordination and confidence.

1,000s of Smiles

Following a grant from the “Heart of Bucks” foundation, Absolutely Together were able to launch a 1,000’s of smiles campaign in Buckinghamshire. The programme purchases vouchers at discounted rates from local leisure providers which are then distributed at no cost to local families that have children with additional needs. These activities are supplemented with free activities at Absolutely Leisure facilities. Despite the challenges of facility closures, the programme launched in October and ensured that families were able to get some well needed leisure activity during the half term break. Despite the quick turnaround, vouchers where distributed to 47 families in Bucks providing 162 smiles for them during the last week of October.

As the majority of leisure facilities remained closed from the beginning of November until the summer of 2021, the remainder of the 1,000 smiles programme will be completed during the second 6 months of 2021.

Below are a sample of the feedback received from parents after participating in Absolutely Together programmes:

“A big thankyou to Absolutely Together a fantastic charity that gives kids with special needs the opportunity to experience the fun of Go Karting, with double Go karts so that a child can have the chance to drive with an adult. My son suffers from ASD and finds it hard to interact and socialise, he visited the track in Maidenhead and the staff are so friendly, his confidence has grown. Hope this charity gets the recognition they so rightly deserve, Daniel was so pleased to have his brother and dad join in too.”

PARENT A

ABSOLUTELY LEISURE

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Just wanted to get in touch to thank you for providing us with a swimming voucher. We used it today and had an amazing 2hours of family fun. The water was warm, it wasn't too crowded and our children were relaxed and happy throughout. It enabled us to have 1-2-1 in turn with each of our children and just have fun. Each one of us laughed, splashed and just enjoyed being in each other’s company. Family outings are always planned weeks in advance so we can prepare our children and many SEN sessions are charged at a higher rate than 'normal' which can price some options out if our budget. Thank you and the charity for providing us with a much needed family fun day!

PARENT B

On behalf of our group I would like to thank Absolutely Karting for generously accommodating the variety of special needs within our large party of families last weekend. Everyone had an exciting morning experiencing both Go Karting and Lazer Quest for the first time and those sharing karts with your kind staff had an especially thrilling session! The feedback was that it was one of the best group activities we have ever one. We all had an amazingly memorable time and are particularly grateful for the caring attention shown to the children needing individual attention.

PARENT C

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

This report has been prepared in accordance with the provisions applicable to companies entitles the small companies exemption.

The Trustees r eport was approved by the Board of Trustees.

.............................. J H Gillan Trustee Dated: .........................

23 November 2021

ABSOLUTELY LEISURE

STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees, who are also the directors of Absolutely Leisure for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (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 Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate 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 reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

ABSOLUTELY LEISURE

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ABSOLUTELY LEISURE

Opinion

We have audited the financial statements of Absolutely Leisure (the ‘Charitable Company’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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:

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 the audit of the financial 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 the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. We also draw attention to the disclosures in note 1.2 regarding going concern. Our opinion is not modified in this respect.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and , except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to 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 information, we are required to report that fact.

We have nothing to report in this regard.

ABSOLUTELY LEISURE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ABSOLUTELY LEISURE

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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 material misstatements in the d irectors ' r eport included within the Trustees r eport.

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:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees r esponsibilities, the Trustees, who are also the directors of the Charitable Company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

ABSOLUTELY LEISURE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ABSOLUTELY LEISURE

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

ABSOLUTELY LEISURE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ABSOLUTELY LEISURE

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s members in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees 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 members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Creasey (Senior Statutory Auditor) for and on behalf of Azets Audit Services

24 November 2021

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

Chartered Accountants Statutory Auditor

Gladstone House 77-79 High Street Egham Surrey United Kingdom TW20 9HY

ABSOLUTELY LEISURE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Unrestricted
funds funds
2021 2020
Notes
£		 £
Income from:
Donations and legacies 3 895,507 325,108
Charitable activities :
Leisure activities 4 882,805 3,901,665
Funding income 4 73,440 101,640
Total income 1,851,752 4,328,413
Expenditure on:
Charitable activities 5 2,877,072 4,780,677
Net expenditure for the year/
Net outgoing resources (1,025,320)
(452,264)
Other recognised gains and losses
Actuarial (loss)/gain on defined benefit pension schemes (792,000)
367,000
Net movement in funds (1,817,320)
(85,264)
Fund balances at 1 April 2020 (822,590)
(737,326)
Fund balances at 31 March 2021 (2,639,910)
(822,590)

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ABSOLUTELY LEISURE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
23
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Net cash used in investing activities
Financing activities
Repayment of borrowings
New bank loans in the year
Repayment of bank loans
Payment of obligations under finance
leases
Net cash generated from/(used in)
financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Relating to:
Cash at bank and in hand
Bank overdrafts included in creditors
payable within one year		 2021
2020
£
£
£
£
(337,722)
199,456
(2,549)
(61,012)
-
6,622
(2,549)
(54,390)
(15,145)
(83,251)
570,000
-
(37,001)
(43,954)
(50,838)
(149,541)
467,016
(276,746)
126,745
(131,680)
(46,696)
84,984
80,049
(46,696)
80,049
3,995
-
(50,691)

ABSOLUTELY LEISURE

BALANCE SHEET

AS AT 31 MARCH 2021

2021 2021 2020
Notes £ £ £ £ £
£
Fixed assets
Tangible assets 9 2,324,108 2,662,843
Current assets
Stocks 10 6,240 6,240 15,171 15,171
Debtors 11 183,107 183,107 110,350 110,350
Cash at bank and in hand 80,049 80,049 3,995 3,995
269,396 269,396 129,516 129,516
Creditors: amounts falling due within
one year 14 (2,845,475) (2,468,108)
Net current liabilities (2,576,079) (2,338,592)
Total assets less current liabilities (251,971) 324,251
Creditors: amounts falling due after
more than one year 15 (914,939) (522,841)
Net assets excluding pension liability (1,166,910) (198,590)
Defined benefit pension liability 17 (1,473,000) (624,000)
Net liabilities (2,639,910) (822,590)
Income funds
Unrestricted funds:
General unrestricted funds (1,166,910) (198,590)
Pension reserve (1,473,000) (624,000)
(2,639,910) (822,590)
(2,639,910) (822,590)

The financial statements were approved by the Trustees on ......................... 23 November 2021

.............................. J H Gillan Trustee

Company Registration No. 06822082

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Absolutely Leisure is a private company limited by guarantee incorporated in England and Wales. The registered office is The Arena, Stafferton Way, Maidenhead, Berkshire, SL6 1AY, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Charitable Company is a Public Benefit Entity as defined by FRS 102.

Absolutely Leisure meets the definition under FRS 102 of a public benefit entity.

The financial statements are prepared in sterling , which is the functional currency of the Charitable Company . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Reduced Disclosures

In accordance with FRS 102, the Charitable Company has taken advantage of the exemptions from the following disclosure requirements:

The financial statements of the Charitable Company are consolidated in the financial statement of Absolutely Together. the consolidated financial statements of Absolutely Together are available from its registered office, The Arena, Stafferton Way, Maidenhead, Berkshire, SL6 1AY.

1.2 Going concern

As described in the Trustees Report, the Covid-19 pandemic has been challenging for the leisure industry with two national lockdowns imposed in the financial year. As a result, even after various Government support packages, the charity suffered a loss for the year of £1,817,320 which includes an actuarial loss on our defined benefit pension scheme of £792,000. Net current liabilities amounted to £2,576,079 and total charity net liabilities at the year end were £2,639,910.

Since the year end, restrictions have ceased and we re-opened our leisure and gym sites in accordance with Government guidelines. A combination of summer staycations, a less than brilliant weather and pent up demand has enabled the group to trade strongly and cash positively in the year to date.

Management have produced forecasts for the period to March 2023 which after suitable contingency planning show a continued recovery of cash positive trading.

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

In relation to the year-end balance sheet liabilities:

In the light of the above, management and the Board have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements .

1.3 Charitable funds

Unrestricted fund s can be used in accordance with the charitable objectives at the discretion of the Trustees.

Restricted funds are used to account for situations where the donor required the funds must be spent on a particular purpose.

1.4 Income

All income on the Statement of Financial Activities is recognised when the Charitable Company is legally entitled to the income and the amount can be quantified with reasonable accuracy. Certain income is received in advance of the provision of the relevant service and as such is deferred until the service commences. Income for annual memberships is accounted for over the membership year.

Income from leisure activities are recognised as the related good and service are provided.

Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probably that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Management fees are unrestricted income which available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

1.5 Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold property straight line over 25 years Improvements to property straight line over 4 yers Plant and machinery straight line over 3 years or the life of the lease

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Stocks

Stocks are valued at the lower of cost and net realisable value, on a first-in-first-out basis, after making due allowance for obsolete and slow moving items.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less .

1.9 Financial instruments

The Charitable Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial assets and liabilities are recognised when the Charitable Company becomes a party to the contractual provisions of the instrument, and are offset only when the Charitable Company currently has a legally enforceable right to set off the recognised amounts and tends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets and liabilities

The Charitable Company's debtors and creditors that meet the definition of either a financial asset of a financial liability are initially recognised at the transaction value and thereafter are stated at amortised cost suing the effective interest method.

1.10 Employee benefits

Termination benefits are recognised immediately as an expense when the Charitable Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

The Charitable Company operates a defined contribution pension scheme Contributions payable to the Charitable Company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

The Charitable Company has also assumed responsibility for a pension scheme providing benefits base on final pensionable pay. Contributions to the defined benefit scheme are charged to income and expenditure in order to allocation the cost of providing the pensions recognising any actuarial gain or loss (where appropriate), over the working lives of the relevant employees as assessed in accordance with the advice of a professional qualified actuary.

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

The LGPS is a funded multi-employer scheme and the assets are held separately from those of the Charitable Company in separate Trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introduction, benefit charges, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses.

Under section 28 (Defined Benefit Pension) of FRS102, the net deficit of the pension scheme has been included in the Financial Statements and the reserves have therefore been reduced by the pension deficit creating net liabilities of £2,639,910 (2020: £822,590) at the year end. The Trustees are satisfied that the company will be able to meet all of its obligations as and when they fall due.

1.12 Leases

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to income and expenditure so as to produce a constant periodic rate of charge of the net obligation outstanding in each period.

Rentals payable under operating leases are charged as an expense on a straight line basis over the lease term.

1.13 Irrecoverable VAT

VAT on revenue expenditure which can not be recovered is charged as a separate cost to the Statement of Financial Activities. VAT on capital expenditure which can not be recovered is capitalised as part of the cost of acquiring the relevant asset.

2 Critical accounting estimates and judgements

In the application of the Charitable Company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Critical judgements

Leases

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred tot he Charitable Company as lessee.

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

2 Critical accounting estimates and judgements

(Continued)

Key sources of estimation uncertainty

Carrying value of assets and liabilities

The Charitable Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 17 will impact the carrying amount of the pension liability.

3 Donations and legacies

Government grants
Donation from fellow group company Absolutely Together Trading Ltd
Other donations		 2021
£
870,984
4,662
19,861
895,507		 2020
£
-
314,128
10,980
325,108

The income from donations of £24,523 (2020: £325,108) was all unrestricted. The £870,984 (2020: £Nil) of government grants relate to CJRS income and local authority grants as a result of the pandemic.

4 Charitable activities :

Leisure Management Total Leisure Management Total
activities fees 2021 activities fees 2020
2021 2021 2020 2020
£ £ £ £ £ £
Charitable activities 882,805 73,440 956,245 3,901,665 101,640 4,003,305

The income from charitable activities of £956,245 (2020: £4,003,305) was all unrestricted.

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

5 Charitable activities

Direct Costs
2021
£
Staff costs
1,133,868
Depreciation
-
Overheads
52,073
Lease Charges
-
Other Loan Interest
-
Bank Charges
-
Legal and Professional
-
Premises Expenses
-
Defined Benefit
Pension Costs
-
Consultancy
-
Governance costs
Auditors Remuneration
-
1,185,941		 Support
Costs
2021
£
-
341,285
1,171,751
11,544
4,700
55,303
-
-
57,000
36,723
12,825
1,691,131		 Total
2021
Direct Costs
2020
£
£
1,133,868
1,637,267
341,285
-
1,223,824
77,142
11,544
-
4,700
-
55,303
-
-
-
-
-
57,000
-
36,723
-
12,825
-
2,877,072
1,714,409		 Support
Costs
2020
£
-
424,485
2,302,438
17,228
14,515
55,496
2,180
45,510
116,000
76,416
12,000
3,066,268		 Total
2020
£
1,637,267
424,485
2,379,580
17,228
14,515
55,496
2,180
45,510
116,000
76,416
12,000
4,780,677

The expenditure on charitable activities of £2,553,662 (2020: £4,780,677) was all from unrestricted funds.

6 Trustees

The Trustees did not receive any remuneration during the year ended 31 March 2021 (2020: £nil). There were no Trustees' expenses paid for the year ended 31 March 2021 (2020: £nil).

7 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
Leisure activities 89 124

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

7 Employees (Continued)
Employment costs 2021 2020
£ £
Wages and salaries 1,018,277 1,463,780
Social security costs 58,879 96,034
Other pension costs 56,712 77,453
1,133,868 1,637,267
The number of employees whose annual remuneration was £60,000 or more were:
2021 2020
Number Number
£80,001 - £80,000 1 -
£80,001 - £90,000 - 1

The remuneration of key management personnel is £90,156 (2020: £112,690).

8 Taxation

No liability to UK corporation tax arose on ordinary activities for the year ended 31 March 2021 or the year ended 31 March 2020.

9 Tangible fixed assets

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation and impairment
At 1 April 2020
Depreciation charged in the year
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 Leasehold
property
Improvements
to property
£
£
1,832,270
603,782
-
-
1,832,270
603,782
109,936
603,782
73,291
-
183,227
603,782
1,649,043
-
1,722,334
-		 Plant and
machinery
£
2,832,362
2,549
2,834,911
1,891,852
267,994
2,159,846
675,065
940,509		 Total
£
5,268,414
2,549
5,270,963
2,605,570
341,285
2,946,855
2,324,108
2,662,843

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

9 Tangible fixed assets

(Continued)

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £77,922 (2020 - £77,066) for the year.

Plant and machinery
10
Stocks
Finished goods and goods for resale
11
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
Amounts falling due after more than one year:
Other debtors
Total debtors		 2021
£
175,820
2021
£
6,240
2021
£
15,361
45,506
122,240
183,107
2021
£
-
183,107		 2020
£
253,741
2020
£
15,171
2020
£
14,973
-
49,871
64,844
2020
£
45,506
110,350

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

12 Loans and overdrafts

Bank overdrafts
Bank loans
Other loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2021
£
-
1,911,402
45,069
1,956,471
1,436,609
519,862
81,105		 2020
£
50,691
1,378,403
60,214
1,489,308
1,444,239
45,069
-

The finance lease liabilities of the Charitable Company, £72,936 (2020: £77,745) of which fall due in less than one year, with £148,409 (2020: £194,439) falling due in more than one year, are secured over the assets which form part of the finance lease agreements.

The bank loans of £1,419,413 (2020: £1,387,403) within one year and £491,989 (2020: £Nil) after one year are secured by way of a fixed and floating charge, in favour of National Westminster Bank Plc, over the assets of the Charitable Company.

The loans of £17,196 (2020: £15,145) within one year and £27,873 (2020: £27,873) after one year are secured by way of a fixed and floating charge, in favour of Asset Advantage Limited and Louise Cox, over the assets of the Charitable Company.

The bank loan is subject to covenant clauses, whereby the Company is required to meet certain key financial ratios. The Company did not fulfil the debt servicing ratio as required in the agreement.

Due to this breach of the covenant clause, the bank is contractually entitled to request for immediate repayment of the outstanding loan amount of £1,341,402. The outstanding balance is presented within current liabilities as at 31 March 2020 and 2021.

Since the year end the covenants have been formally waived and the debt is no longer payable on demand. Has this agreement been in place at the year end, net current liabilities would have improved by £1,284,015.

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

13 Finance lease commitments

Future minimum lease payments due under finance leases:

Within one year
Within two and five years		 2021
£
72,936
148,409
221,345		 2020
£
77,745
194,439
272,184

14 Creditors: amounts falling due within one year

Notes
Bank loans and overdrafts
12
Obligations under finance leases
13
Other borrowings
Other taxation and social security
Deferred income
16
Trade creditors
Amounts owed to fellow group undertakings
Other creditors
Accruals and deferred income
Creditors: amounts falling due after more than one year
Notes
Bank loans
12
Obligations under finance leases
13
Other borrowings
Other creditors
Deferred income
Arising from block bookings/events		 2021
£
1,419,413
72,936
17,196
33,519
136,800
526,635
323,410
88,877
226,689
2,845,475
2021
£
491,989
148,410
27,873
246,667
914,939
2021
£
136,800		 2020
£
1,429,094
77,745
15,145
37,776
103,035
190,168
324,067
84,594
206,484
2,468,108
2020
£
-
194,439
45,069
283,333
522,841
2020
£
103,035

15 Creditors: amounts falling due after more than one year

16 Deferred income

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

16 Deferred income

(Continued)

Deferred income related to advance payments for block bookings/events at the sites that related to future dates.

17 Retirement benefit schemes

Defined contribution schemes

The Charitable Company operates a defined contribution pension scheme . The contributions payable during the year amounted to £23,886 (2020: £33,546). At 31 March 2021 there was £3,804 (2020: £5,279) owing to the scheme and this is included within other creditors.

The pension contributions and liability is all allocated from unrestricted funds which is the only fund basis of the Charity.

Defined benefit schemes

Key assumptions

2021 2020
% %
Discount rate 2.05 2.35
Expected rate of increase of pensions in payment 2.80 1.75
Expected rate of salary increases 3.80 2.75

Mortality assumptions

T he assumed life expectations on retirement at age 65 are:
Retiring today
- Males
- Females
Retiring in 20 years
- Males
- Females
Amounts recognised in the profit and loss account:
Current service cost
Net interest on defined benefit liability/(asset)
Other costs and income
Total costs		 2021
Years
21.2
23.9
22.5
25.4
2021
£
91,000
14,000
1,000
106,000		 2020
Years
21.5
24.1
22.9
25.5
2020
£
130,000
21,000
34,000
185,000

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17 Retirement benefit schemes

(Continued)

Amounts taken to other comprehensive income:

Actual return on scheme assets
Less: calculated interest element
Return on scheme assets excluding interest income
Actuarial changes related to obligations		 2021
£
(140,000)
26,000
(114,000)
906,000		 2020
£
3,000
25,000
28,000
(395,000)

The amounts included in the balance sheet arising from the Charitable Company's obligations in respect of defined benefit plans are as follows:

defined benefit plans are as follows:
2021 2020
£ £
Present value of defined benefit obligations 2,760,000 1,699,000
Fair value of plan assets (1,287,000) (1,075,000)
Deficit in scheme 1,473,000 624,000
Movements in the present value of defined benefit obligations:
2021
£
Liabilities at 1 April 2020 1,699,000
Current service cost 91,000
Contributions from scheme members 24,000
Actuarial gains and losses 906,000
Interest cost 40,000
At 31 March 2021 2,760,000

The defined benefit obligations arise from plans which are wholly or partly funded.

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17 Retirement benefit schemes (Continued)
Movements in the fair value of plan assets:
2021
£
Fair value of assets at 1 April 2020 1,075,000
Interest income 26,000
Return on plan assets (excluding amounts included in net interest) 114,000
Contributions by the employer 49,000
Contributions by scheme members 24,000
Other (1,000)
At 31 March 2021 1,287,000
The fair value of plan assets at the reporting period end was as follows:
2021 2020
£ £
Equity instruments 771,000 607,000
Debt instruments 210,000 100,000
Property 159,000 148,000
Cash 59,000 127,000
Target ratio portfolio 53,000 45,000
Commodities - 6,000
Infrastructure 105,000 88,000
Longevity insurance (70,000) (46,000)
1,287,000 1,075,000
18 Analysis of net assets between funds
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Fund balances at 31 March 2021 are represented by:
Tangible assets 2,324,108 2,662,843
Current assets/(liabilities) (2,576,079) (2,338,592)
Long term liabilities (914,939)
(522,841)
Provisions and pensions (1,473,000)
(624,000)
(2,639,910)
(822,590)

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

19 Operating lease commitments

At the reporting end date the Charitable Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2021
£
557,211
2,246,022
711,790
3,515,023		 2020
£
475,151
1,628,883
1,740,140
3,844,174

20 Events after the reporting date

In November 2021, NatWest formally agreed to remove the covenants on the bank loans. Instead the charity must ensure that a minimum bank balance of £150,000, including the overdraft, is maintained at all times. Has this agreement been in place at the year end, net current liabilities would have improved by £1,284,015.

21 Ultimate parent undertaking and controlling related party

The ultimate parent company is Absolutely Together, a company limited by guarantee and incorporated in Great Britain by virtue of being the sole member. Company Registration No: 08466394 and Registered Charity No: 1152093. This is the smaller and largest group to consolidate these financial statements. Copies of the financial statement can be obtained from The Arena, Stafferton Way, Maidenhead, Berkshire, SL 6 1AY or on companies house website www.companieshouse.gov.uk.

The Trustees consider the Board of Trustees of Absolutely Together, a company limited by guarantee, to be the ultimate controlling party.

22 Limited by guarantee

The Charity is a company limited by guarantee and has no share capital. the liability of each member in the event of winding up is limited to £1.

ABSOLUTELY LEISURE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

23 Cash generated from operations 2021 2020
£ £
Deficit for the year (1,025,320) (452,264)
Adjustments for:
Depreciation and impairment of tangible fixed assets 341,285 424,485
Difference between pension charge and cash contributions 57,000 116,000
Movements in working capital:
Decrease in stocks 8,931 4,556
(Increase)/decrease in debtors (72,757) 228,601
Increase/(decrease) in creditors 319,374 (123,461)
Increase in deferred income 33,765 1,539
Cash (absorbed by)/generated from operations (337,722) 199,456
24 Analysis of changes in net (debt)/funds
At 1 April 2020 Cash flows At 31 March 2021
£ £ £
Cash at bank and in hand 3,995 76,054 80,049
Bank overdrafts (50,691) 50,691 -
(46,696) 126,745 80,049
Loans falling due within one year (1,393,548) (43,061) (1,436,609)
Loans falling due after more than one year (45,069) (474,793) (519,862)
Obligations under finance leases (272,184) 50,838 (221,346)
(1,757,497) (340,271) (2,097,768)