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2021-03-31-accounts

Company registration number: 07451733 Charity registration number: 1141018

Achieve Lifestyle

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2021

Stewart & Co Accountants LLP Knoll House Knoll Road Camberley Surrey GU15 3SY

Achieve Lifestyle

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 11
Statement of Trustees' Responsibilities 12
Independent Auditors' Report 13 to 16
Statement of Financial Activities 17 to 18
Balance Sheet 19
Statement of Cash Flows 20
Notes to the Financial Statements 21 to 40

Achieve Lifestyle

Reference and Administrative Details

Chief Executive Officer H Aitken
Trustees H Aitken
P G Robinson
J J Dalton
J Taylor
K W Phillips (appointed 2 July 2021)
K Heal
C J Norman (resigned 28 March 2021)
A Boyd (resigned 15 September 2021)
K J Wills (resigned 30 June 2021)
Secretary M Evans
Senior Management Team H Aitken, Chief Executive Officer
M Evans, Business Director
W Midmore, Operations Director
Principal Office Egham Orbit
Vicarage Road
Egham
Surrey
TW20 8NL
The charity is incorporated in England & Wales.
Company Registration Number 07451733
Charity Registration Number 1141018
Solicitors Barlow Robins LLP
Concord House
165 Church Street East
Woking
Surrey
GU21 6HU
Bankers The Co-Operative Bank
1 Balloon Street
Manchester
M4 4BE
Auditor Stewart & Co Accountants LLP
Knoll House
Knoll Road
Camberley
Surrey
GU15 3SY

Page 1

Achieve Lifestyle

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2021.

Objectives and activities

Objects and aims

Achieve Lifestyle has been established for the benefit of the public for the following purposes:

• The provision or assistance in the provision of facilities and services for recreation, amateur sport or other leisure time occupation and the interest of social welfare, such facilities may be provided to the public save that special facilities may be provided to persons who by reason of their youth, age, infirmity or disability, poverty or social or economic circumstances may have need of special facilities or services.

• The advancement and support of education, in particular education on sport, culture, the arts, heritage and history (including the provision of museums, galleries, learning and information centres, libraries, archives and other related services).

• The promotion and preservation of good health through community participation in healthy recreation; and/or other such charitable purposes beneficial to the public and consistent with the objects above, as the Trustees shall in their absolute discretion determine.

Public benefit

Achieve Lifestyle has been established for the benefit of the public for the provision or assistance in the provision of facilities and services for health, leisure and recreation time occupation and in the interest of social inclusion and engagement and the promotion and preservation of good health through community participation in healthy recreation.

The public benefits statement forms the basis for all judgements regarding operational reports to the Board meetings, in order to be reassured that the facilities and services currently managed by the charity continue to meet these criteria. At these meetings the Chief Executive presents the up to date financial position, and operational budget performance.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Page 2

Achieve Lifestyle

Trustees' Report

Achievements and performance

Achieve Lifestyle’s vision is “helping make things achievable” for our local community, and it’s mission is “to be the leading health, leisure and wellbeing provider within the local community” and is represented by its desire to.

Achieve Lifestyle’s key themes for 2020-2021 were:

Based on the vision and themes following achievements were delivered;

Page 3

Achieve Lifestyle

Trustees' Report

Social Impact and Public Benefit

Sport Recreation and Leisure

On 20th March 2020, HM government closed leisure facilities with immediate effect. This meant that Achieve Lifestyle failed to operate in the last 11 days of the business year 2019-2020, as did all other leisure facilities in the UK, and to date there have been three national lockdowns;

The lockdowns amounted to being closed due to lockdown for a total of 233 days in 2020-2021. (NB: Plus 12 days in 2019-2020, and 11 days in 2021-2022)

During the period of opening and closing, there have been a number of challenges as a result of Covid-19 faced by Achieve Lifestyle, which have significantly impacted on normal business performance notably:

Despite the challenges faced of Covid 19, between lockdowns, a number of positives were realised;

Community Impact- Health & Wellbeing

Young People

• A significant number of young people increasing their participation in sport and wellbeing activities (as per government guidelines) than in previous years.

Page 4

Achieve Lifestyle

Trustees' Report

Disability

• When open providing discounted access to facilities for target groups and organising, to allow them to thrive, including Egham Constellations disability swim club.

Corporate responsibility

The development of being environmentally sustainable is a priority in our undertakings, in doing so our commitment is demonstrated through our Environmental Policy which states

• Generate and harvest Photo Voltaic energy from roof solar panels at Egham Orbit, for consumption need.

• Seek energy improvements and efficiencies where practical, financially prudent and achievable, this includes making use of technology e.g. all lights are LED, heating and ventilation systems are on timers.

• Minimise waste by implementing green initiatives such as “keep cup” discounts in our food and beverage offerings as well as provide further education to staff and customers on the benefits of minimising waste.

• Develop further training and information programmes for staff to raise awareness of environmental issues and enlist their support in improving sustainability standards.

• Encourage the use of suppliers and contractors who have adopted sound environmental solutions to reduce their own impact on the environment

• Continue to work with local suppliers to help reduce travel times and carbon emissions

Financial review

Results are for the year ended 31 March 2021

The main funds are raised from the general public in exchange for taking part in health, wellbeing and sports and leisure services.

Income for the year ended 31 March 2021 was £1,699,018 and total expenditure for the year was £2,866,906.

At the end of March 2021 cash held by the Company totalled circa £324k. This leaves free cash reserves of circa £209k.

The surrender of lease for Achieve Zone has made a significant and positive impact on the financial stability of Achieve Lifestyle.

Achieve Lifestyle reported a deficit of £1,166,552 on the general unrestricted fund. This deficit is due the impact of the Covid-19 pandemic, through lockdowns, government restrictions, social distancing and customer confidence. We have anticipated that the loss of income has been approximately £2.4m over the three lockdowns.

A further impact has been the lack of business at Achieve Zone, which failed to meet its targets due to a range of external factors, primarily the delayed development of the wider residential and commercial spaces, and thus significantly underperforming, resulting in a lack of foot fall to the venue.

Page 5

Achieve Lifestyle

Trustees' Report

Policy on reserves

Trustees regularly review Achieve Lifestyle’s Reserves Policy, Trustees have approved a Reserves Policy in line with guidance issued by the Charity Commission. The purposes of these reserves is to safeguard both against significant loss in income and any unforeseen adverse circumstances to facilitate the continuance of the deliverance of the charitable company’s stated objective.

Achieve Lifestyle’s reserves policy is to have free reserves before FRS 102 adjustments. The Trustees policy is, taking into account the charity's financial circumstances and other relevant factors, to rebuild reserves to a level that facilitates the Company's resilience and capacity to manage unforeseen financial difficulties.

Free reserves of the charity, after pension reserves, amounted to -£2,024,552 at the year-end. This is, as to be expected, significantly different than previous years due to the impact of the pandemic, which saw continued expenditure and limited opportunities to generate income outside of lockdowns.

Post Pandemic, the anticipation is that there will be a rebuild in recovery of the reserves fund to a much higher level, to protect the business for future shocks. This will take a number of years, and will affect business decisions ensuring that the rebuilding of reserves is a priority for the business.

There is a fund set up post year end to build the reserves, with monthly contributions for unforeseen capital maintenance requirements. This fund will be increased in line with affordability, with the target of obtaining a reserve fund of 6 months operational expenditure as soon as practically possible.

Page 6

Achieve Lifestyle

Trustees' Report

Principal risks and uncertainties

The Trustees 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, error and non-compliance with relevant statutory regulations.

The Financial, Compliance and Human Resource Sub Committee of Trustees meets quarterly and has an annual schedule of statutory governance checks to ensure compliance is maintained and achieved, this includes a review of company policies, procedures and activities to ensure that the Trust meets their legal and statutory obligations thus minimising risk to which the charity is exposed.

Procedures are also in place to comply with health and safety legislation; this includes a Health and Safety Policy. There is also external support from a specialist health and safety consultancy which includes meetings with the nominated health and safety lead staff. The purpose of the meeting is to review all systems and safe working practices, including risk assessments, fire safety and support for ensuring a safe and consistent approach is undertaken for insurance purposes.

Due to the pandemic and the current recovery phase unrealistic rents being charged by the land lord and their acknowledgement of this, after a period of lengthy negotiation, the lease of Achieve Zone was surrendered, with no further liability of the lease, and the impact has been increased financial stability for Achieve Lifestyle.

Whilst unlikely as the recovery phase is going as well as planned, and that no further national lockdowns occur, it is anticipated that whilst there is no certainty, there is a small risk insofar as membership levels returning to pre pandemic levels.

The major risks to which the Trust could be exposed to have been reviewed and actions are undertaken to help mitigate these risks.

The key risk regards rent, and discussions taken place over the last two years with the Trust’s landlord (Runnymede Borough Council) in regards to a rent review. The discussions stalled during the pandemic, and to enable and ensure a fair rent in the current climate post pandemic and going forwards, the trust has operated an open book transparent approach to its financial information. The trust is keen to agree new rental terms with the landlord and have an agreement in place to repay agreed back rent that has not been able to be paid due to the effects of the pandemic.

In terms of other risks, management systems continue to be established with remedial actions being taken, to help minimise or alleviate any risk where possible, in the pursuit of a stable financial position, particularly as a result of emerging through from the Covid 19 pandemic.

The trust is not exposed to currency risk and has minimal exposure to interest rate risk, price risk or market risk.

Page 7

Achieve Lifestyle

Trustees' Report

Plans for future periods

Aims and key objectives for future periods

Achieve Lifestyle shall continue to work closely with Runnymede Borough Council and other partners, to deliver quality services to strengthen and develop the contribution that leisure can make to the quality of life of the local community.

The rebranding of Achieve Power to “Addlestone Health & Fitness” will assist in communicating to the local community a more appropriate description of the venue, to aid and attract more memberships.

Partnership work with the NHS through Ashford & St Peters Hospital Trust, has commenced for physiotherapy rehabilitation, as Egham Orbit becomes a physio hub in the community venue. Further NHS services being offered are in partnership with anaesthetists at Ashford and St Peter's hospital and redeveloping perioperative pathways for surgical patients, primarily colorectal cancer patients for people preparing for and recovering from colon cancer treatments.

Therapist staff also offer specialist cancer touch therapy treatments through specially trained Achieve Lifestyle staff and specialist products, delivering a bespoke range of beauty therapy treatments to people with and recovering from cancer.

Developing the website through investment will allow for online ticketing and ease of access to additional booked activities, helping drive forward sales.

Strategies and policies

A three-year business plan and associated financial budget that runs to March 2023 was prepared by management and approved by the board.

Performance against budget is reported to the Board of Trustees bi-monthly, with a monthly summary also circulated for the most up to date data, which is especially crucial during the current pandemic recovery phase. The business strategy is focussed on the survival and future viability of the business.

During 2020-2021, Achieve Lifestyle reduced its expenditure and embarked on a restructure to ensure business sustainability and be more efficient in the future.

Together with very careful cash flow management, the steps being taken will enable the business to survive and thrive the Covid 19 related downturn. The future strategy is focused on returning to profitability to build on reserves, this involves improvements in processes and making the business more efficient throughout, using new technologies and systems.

Page 8

Achieve Lifestyle

Trustees' Report

Going concern

Achieve Lifestyle has been deeply affected by the Covid 19 pandemic as a result of multiple lockdowns, which have reduced income by significant levels. Therefore during 2020- 2021, Achieve Lifestyle has minimised costs and maximised income to help ensure the survival of the business until the pandemic is over. The following actions are being taken to protect the business and ensure that when trading improves we are well placed to take advantage of the return to normality;

• Achieve lifestyle continue to be in regular communication with the local authority in regards to affordable rents for remaining facilities, and in doing so continuing to provide transparent open book financials to council accountants, to ensure fair and affordable rents are agreed.

Looking to the end of 2021 and beyond, the Achieve lifestyle board and senior management team are very confident that Achieve Lifestyle will return to operating with a surplus, once reasonable rentals have been agreed with the landlord (Runnymede Borough Council), both factors will allow Achieve Lifestyle to have a strong and viable future business.

Structure, governance and management

Nature of governing document

The charitable company is constituted under a Trust deed and is a registered charity number 1141018. It does not have any subsidiary undertakings.

The charitable company is controlled by its governing document The Memorandum and Articles of Association and constitutes a company limited by guarantee as defined by the Companies Act 2006.

Page 9

Achieve Lifestyle

Trustees' Report

Recruitment and appointment of trustees

Recruitment of trustees is done through advertisements as and when vacancies arise, a nominated sub-board of trustees then approve suitable applicants based on the trust's need to support the ongoing development of the trust.

Under the Company’s Memorandum and Articles of Association, the trustees are elected to serve for a period of three years after which they are eligible for re-election at the next Annual General Meeting.

A register of Trustees relevant interests is maintained and updated regularly.

Induction and training of trustees

New Directors / Trustees undergo an induction session with the Chief Executive and Business Director / Company Secretary, to brief them on their legal obligations under Charity and Company law, the content of the Memorandum and Articles of Association at the decision-making processes at board meetings and sub board meetings. They are provided with an induction pack and site visits / guided tours to all venues. Training for Trustees is regularly monitored and reviewed.

Organisational structure

The Company is made up of up to 11 trustees, one of whom is the Chief Executive in an ex officio role. The composition and size of the Board is reviewed regularly to assess skills requirement of the Board for it to meet the needs of the Charity.

The directors of the Company are also charity trustees, for the purposes of charity land legislation. All directors (excluding the Chief Executive) give their time voluntarily. Any expenses reclaimed from the charity are set out in the accounts under Trustees Remuneration and Expenses.

The board meetings take place 4 times per year, with a compliance sub group which meets as a minimum for the same number of times per year. The sub group covers financial, HR, audit and governance.

All directors (excluding the Chief Executive) give their time voluntarily. Any expenses reclaimed from the charity are set out in the accounts under Trustees Remuneration and Expenses.

The decision making process is that Trustees are responsible for the sound governance of the trust, by making sure the organisation runs smoothly and that funds are properly managed. The Chief Executive leads the management team in all aspects of strategic development and operational management decision making.

Page 10

Achieve Lifestyle

Trustees' Report

Employee involvement

Achieve Lifestyle continues to actively engage with its workforce, striving to be a great place to work, giving colleagues job satisfaction and reviewing opportunities for development.

There has been a significant amount of staff training during lockdowns, to enable staff to be ready and fell safe to return to the workplace.

A range of staff satisfaction surveys have been undertaken to establish staff attitudes to their work and returning post lockdown.

All staff receive a comprehensive performance review, with associated personal development training plans.

Achieve lifestyle regularly communicates with staff through department and team meetings, all staff meetings, staff newsletter and feedback. Achieve Lifestyle regularly monitors developments in the external environment for new ways to communicate and engage and are currently looking at greater digital communication tools.

Achieve Lifestyle has a range of policies in place to support staff, they include Health & Safety Policy, Access and Opportunity (Equality), Code of Conduct, Staff Consultation, Modern Slavery and Domestic Abuse.

Achieve Lifestyle recognises its responsibility under the Equality Act 2020, and have long established and fair employment practices in the recruitment, selection and retention and training of staff, particularly for people with protected characteristics.

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

The annual report was approved by the trustees of the charity on 1 December 2021 and signed on its behalf by:

SIGNED SECURELY 06/12/2021 at 9:16:02 AM UTC

......................................... K W Phillips Trustee

Page 11

Achieve Lifestyle

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Achieve Lifestyle for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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.

Approved by the trustees of the charity on 1 December 2021 and signed on its behalf by:

SIGNED SECURELY 06/12/2021 at 9:16:02 AM UTC ......................................... K W Phillips Trustee

Page 12

Achieve Lifestyle

Independent Auditor's Report to the Members of Achieve Lifestyle

Opinion

We have audited the financial statements of Achieve Lifestyle (the 'charity') for the year ended 31 March 2021, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

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 charity 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.

Material uncertainty in relation to going concern

We draw attention to Note 24 in the financial statements, which indicates that the company incurred a net expenditure, before other recognised gains and losses, of £1,167,888 during the year ended 31 March 2021 and, as of that date, the company’s current liabilities exceeded its total assets by £870,776. As stated in Note 24, these events or conditions, along with other matters as set forth in Note 24, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Page 13

Achieve Lifestyle

Independent Auditor's Report to the Members of Achieve Lifestyle

Opinion on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 12), the trustees 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 charity'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 charity 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.

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

Page 14

Achieve Lifestyle

Independent Auditor's Report to the Members of Achieve Lifestyle

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, we have obtained an understanding of the nature of the industry, the control environment and the legal and regulatory frameworks that the charitable company operates in.

We determined that the most significant applicable legal and regulatory frameworks are those directly relevant to the reporting framework and preparation of the financial statements (FRS 102, Charities Act 2011, Companies Act 2006 and UK tax legislation). We considered the extent to which non-compliance might have a material effect on the financial statements.

We determined the principal risks which could lead to material misstatement of the financial statements to be related to posting inappropriate journal entries and management bias in accounting estimates. We identified the most significant risks in respect of accounting estimates to be the actuarial assumptions used in determining the defined benefit pension liability, and the determination of depreciation policies.

Audit procedures performed by the engagement team included:

The engagement team also remained aware of the need for professional scepticism to identify any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Page 15

Achieve Lifestyle

Independent Auditor's Report to the Members of Achieve Lifestyle

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's 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 its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Gary Robinson FCA (Senior Statutory Auditor) For and on behalf of Stewart & Co Accountants LLP, Statutory Auditor

Knoll House Knoll Road Camberley Surrey GU15 3SY

Date:.............................6 December 2021

Page 16

Achieve Lifestyle

Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Investment income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net expenditure
Other recognised gains and losses
Actuarial gains on defined benefit pension
schemes
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
20		 Unrestricted
funds
£
1,101,420
597,597
1
1,699,018
(2,866,906)
(2,866,906)
(1,167,888)
(404,000)
(1,571,888)
(452,664)
(2,024,552)		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
115,000
115,000		 Total
2021
£
1,101,420
597,597
1
1,699,018
(2,866,906)
(2,866,906)
(1,167,888)
(404,000)
(1,571,888)
(337,664)
(1,909,552)

The notes on pages 21 to 40 form an integral part of these financial statements. Page 17

Achieve Lifestyle

Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Prior Period Statement of Financial Activities

Note
Income and Endowments from:
Charitable activities
4
Investment income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net expenditure
Other recognised gains and losses
Actuarial gains on defined benefit pension
schemes
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
20		 Unrestricted
funds
£
3,014,158
8
3,014,166
(3,588,008)
(3,588,008)
(573,842)
8,000
(565,842)
113,178
(452,664)		 Restricted
funds
£
-
-
-
-
-
-
-
-
115,000
115,000		 Total
2020
£ (As restated)
3,014,158
8
3,014,166
(3,588,008)
(3,588,008)
(573,842)
8,000
(565,842)
228,178
(337,664)

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 20.

The notes on pages 21 to 40 form an integral part of these financial statements. Page 18

Achieve Lifestyle

(Registration number: 07451733) Balance Sheet as at 31 March 2021

Note
Fixed assets
Tangible assets
12
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
15
Creditors: Amounts falling due within one year
16
Net current liabilities
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
17
Net (liabilities)/assets excluding pension liability
Pension scheme liability
19
Net liabilities including pension liability
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
General Funds
Pension reserve
Total unrestricted funds
Total funds
20		 2021
£
313,683
2,420
25,650
323,912
351,982
(1,536,441)
(1,184,459)
(870,776)
(180,776)
(1,051,552)
(858,000)
(1,909,552)
115,000
(1,166,552)
(858,000)
(2,024,552)
(1,909,552)		 2020
£ (As restated)
760,924
14,640
49,241
248,519
312,400
(883,475)
(571,075)
189,849
(81,513)
108,336
(446,000)
(337,664)
115,000
(6,664)
(446,000)
(452,664)
(337,664)

The financial statements on pages 17 to 40 were approved by the trustees, and authorised for issue on 1 December 2021 and signed on their behalf by:

SIGNED SECURELY

06/12/2021 at 9:16:02 AM UTC

......................................... K W Phillips Trustee

The notes on pages 21 to 40 form an integral part of these financial statements. Page 19

Achieve Lifestyle

Statement of Cash Flows for the Year Ended 31 March 2021

Note
Cash flows from operating activities
Net cash expenditure
Adjustments to cash flows from non-cash items
Depreciation
Investment income
5
Loss on disposal of tangible fixed assets
Difference between pension charge & cash contributions
Working capital adjustments
Decrease in stocks
13
Decrease/(increase) in debtors
14
Increase in creditors
16
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
5
Purchase of tangible fixed assets
12
Sale of tangible fixed assets
Net cash flows from investing activities
Cash flows from financing activities
Value of new loans obtained during the period
Repayment of loans and borrowings
16
Repayment of capital element of finance leases and HP contracts
18
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March		 2021
£
(1,571,888)
136,635
(1)
340,873
412,000
(682,381)
12,220
23,591
641,056
(5,514)
1
(400)
(29,867)
(30,266)
150,000
(6,202)
(32,625)
111,173
75,393
248,519
323,912		 2020
£ (As restated)
(573,842)
132,058
(7)
911
39,000
(401,880)
1,518
(22,545)
367,223
(55,684)
7
-
-
7
-
-
(45,350)
(45,350)
(101,027)
349,546
248,519

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 21 to 40 form an integral part of these financial statements. Page 20

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

1 Charity status

The charity is a private company limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation, registered number 07451733 and charity number 1141018.

The address of its registered office is: Egham Orbit Vicarage Road Egham Surrey TW20 8NL

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Achieve Lifestyle meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

These financial statements cover the individual charity and are presented in sterling, which is the functional currency of the charity, and are rounded to the nearest £.

Going concern

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements. For further details see note 23.

Page 21

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Prior period errors

Upon review of the rent free accrual for 2020 our recalculation showed a material misstatement of the year end balance. Therefore, the previous year's figures have been restated to correct this error.

Relating to
Relating to Relating to prior periods
the current the prior before the
period period prior period
disclosed in disclosed in disclosed in
these financial these financial these financial
statements statements statements
£ £ £
Rent 605,985 690,348 558,068
Accruals & deferred income 835,770 495,943 363,663
Unrestricted funds - general (1,166,552) (6,664) 125,616

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions which affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Key sources of estimation uncertainty

Pension benefits: The cost of defined benefit pension plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates and retail price inflation. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty. In determining the appropriate discount rate, management considers the interest rates of high quality corporate bonds. The mortality rate is based on publicly available mortality tables for the specific country. Future salary increases and pension increases are based on expected future inflation rates for the respective country. For further details, including the carrying amount at the end of the reporting period, see note 18.

Useful economic lives of tangible assets: The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. These are amended when necessary to reflect current estimates, based on economic utilisation and physical condition of the assets.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Investment income

Interest received on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

Page 22

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Charitable activities

The considerable majority of income relates to gym membership and leisure services. Membership income received in advance is deferred on a straight line basis over the contract term. Income from the hire and use of leisure facilities is recognised at the time of use. Retail income is recognised at the point of sale.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, rent allocated on the estimated floor area occupied by an activity and depreciation charges allocated on the portion of the asset’s use. Other direct and support costs are allocated on a reasonable basis with consideration of the usage of the resource for each activity,

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £500.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Long-term leasehold property Over the lease term
Plant & machinery 5 years straight line
Fixtures & fittings 3 years straight line
Gym & studio equipment 5 - 7 years straight line

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).

Page 23

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

The charity holds cash and bank deposits only. They do not hold other short-term highly liquid investments.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 24

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Hire purchase and finance leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. Assets held under finance leases are capitalised in the balance sheet as tangible fixed assets and are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The capital elements of future obligations under the leases are included as liabilities in the balance sheet. Lease payments are charged to the Statement of Financial Activities and are apportioned between finance costs and the reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability

The interest element of the rental obligation is charged to the Statement of Financial Activities over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

The charity also operates a defined benefit pension scheme. A full actuarial valuation is undertaken at least every three years to determine whether the Statutory Funding Objective is met. The most recent full actuarial valuation was carried out as at 31 March 2019. See note 20 for further details.

The charity contributes to the Surrey Pension Fund with the Local Government Pension Scheme ('LGPS'), a multi-employer defined benefit pension scheme, on behalf of certain employees whose employment was transferred from Runnymede Borough Council as part of the Transfer of Undertakings (Protection of Employment) Regulations 2006. The LGPS is a funded defined benefit scheme, and is contracted out of the State Earnings-Related Pension Scheme. The Assets of the scheme are held separately from those of the 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 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 gains and losses on the settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the Statement of Financial Activities if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period vesting occurs. The expected return on assets and the interest cost are shown as net finance amount of the finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in other gains and losses.

Pension costs are allocated to charitable activities in line with the cost centres of staff members.

Termination benefits

Termination benefits are recognised as an expense in profit or loss immediately when the charity is committed by legislation, by contractual or other agreements or by a constructive obligation to make payments (or provide other benefits) to employees when it terminates their employment.

Termination benefits are measured at the best estimate of the expenditure that would be required to settle the obligation at the reporting date.

Page 25

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

3 Income from donations and legacies

Grants receivable Unrestricted
funds
General
£
1,101,420
1,101,420		 Total
2021
£
1,101,420
1,101,420		 Total
2020
£
-
-

4 Income from charitable activities

Health and fitness
Sports and activities
Retail and other income		 Unrestricted
funds
General
£
422,628
133,083
41,886
597,597		 Total
2021
£
422,628
133,083
41,886
597,597		 Total
2020
£
2,450,237
413,423
150,498
3,014,158

Page 26

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

£3,014,158 of prior period income was unrestricted; £nil of prior period income was restricted.

5 Investment income

Interest receivable and similar income;
Interest receivable on bank deposits
6
Expenditure on charitable activities
Analysis by fund
Health and fitness
Sports and activities
Retail and other income
Total for 2021
Total for 2020		 Unrestricted
funds
Total
General
£
2021
£
1
1
Unrestricted funds
General
£
Other
£
1,800,507
2,667
598,573
2,666
459,826
2,667
2,858,906
8,000
3,549,008
39,000		 Total
2020
£
8
Total
funds
£
1,803,174
601,239
462,493
2,866,906
3,588,008

Analysis by charitable activity

Health and fitness
Sports and activities
Retail and other income
Total for 2021
Total for 2020		 Activity
undertaken
directly
£
1,079,052
366,397
279,542
1,724,991
2,732,978		 Activity
support costs
£
724,122
234,842
182,951
1,141,915
722,750		 Total
expenditure
£
1,803,174
601,239
462,493
2,866,906
3,455,728

Page 27

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Analysis of costs of activities undertaken directly

Wages & Salaries
Staff NIC
(Employers)
Staff pension costs
Net finance cost on
pension scheme
Subcontractor costs
Maintenance
Purchases
Rent & rates
Utilities
Support costs
Insurance		 Health and
fitness
£
386,371
14,849
15,958
3,334
49,250
26,020
34,338
424,189
116,218
-
8,525
1,079,052		 Sports and
activities
£
145,731
4,792
832
3,333
-
10,402
16,381
151,497
24,904
-
8,525
366,397		 Retail and
other income
£
170,543
5,733
4,980
3,333
-
4,735
26,491
30,299
24,904
-
8,524
279,542		 Total
2021
£
702,645
25,374
21,770
10,000
49,250
41,157
77,210
605,985
166,026
-
25,574
1,724,991		 Total
2020
£ (As restated)
1,318,137
88,524
74,436
10,000
-
149,829
106,252
690,348
286,765
76,251
35,716
2,836,258

Page 28

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

7 Analysis of governance and support costs

Support costs
Management & admin salaries
Other overhead costs
Advertising & promotion
Irrecoverable VAT
Service agreements
Maintenance agreements
Legal & professional fees
Depreciation charge
Profit/loss on disposal of fixed
assets
Bank charges
Travel & subsistence
Governance costs
Audit & accountancy fees		 Health and
fitness
£
121,091
70,512
3,108
41,229
11,262
30,892
8,775
88,335
310,006
34,006
162
719,378
4,744
724,122		 Sports and
activities
£
121,090
27,612
3,107
12,387
6,421
11,033
8,775
33,216
-
6,296
162
230,099
4,743
234,842		 Retail and
other
income
£
121,091
10,713
3,107
9,484
4,270
2,207
8,776
15,084
-
3,315
161
178,208
4,743
182,951		 Total
2021
£
363,272
108,837
9,322
63,100
21,953
44,132
26,326
136,635
310,006
43,617
485
1,127,685
14,230
1,141,915		 Total
2020
£
279,399
11,483
21,235
167,719
40,534
26,374
22,706
132,058
-
34,642
600
736,750
15,000
751,750

8 Trustees remuneration and expenses

During the year the charity made the following transactions with trustees:

H Aitken

During the year, H Aitken received remuneration of £85,551 (2020: £85,035) for services other than those of a trustee, as specifically permitted within the charity's governing document. The salary costs incurred by the charity are included under management salaries and include employers pension costs. £92 (2020: £Nil) of expenses were reimbursed to H Aitken during the year. Expenses reimbursed related to car parking costs, and contribution towards eye examination.

At the balance sheet date the amount due H Aitken was £Nil (2020: £Nil).

Other trustees

Other trustees received benefits in the form of free gym membership from the charity during the current year and prior year. No other trustees incurred expenses which were reimbursed during the year. No other trustees received any remuneration from the charity during the year.

Page 29

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

9 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2021
£
986,308
53,615
24,366
1,064,289		 2020
£
1,568,536
88,524
103,436
1,760,496

Included within wages and salaries is £21,022 of termination benefits (2020: £Nil) in relation to redundancy pay.

The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:

Management
Operations
Gym
Coaches & instructors
Administration and front of house		 2021
No
10
21
9
23
18
81		 2020
No
7
35
23
25
50
140

The number of employees whose emoluments (excluding employers pension contributions) fell within the following bands was:

£60,001 - £70,000

2021 2020
No No
1 1

The total employee benefits of the key management personnel of the charity were £185,388 (2020 - £200,294).

The chief executive officer, as the highest paid member of staff, received benefits totalling £85,551 (2020 - £85,035).

10 Auditors' remuneration

Audit of the financial statements
Other fees to auditors
All other non-audit services		 2021
£
10,800
3,430		 2020
£
11,400
3,600

Page 30

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

11 Taxation

The charity is a registered charity and is therefore exempt from taxation.

12 Tangible fixed assets

Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
Eliminated on
disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Long-term
leasehold
property
£
395,227
-
(358,987)
36,240
36,633
15,274
(47,981)
3,926
32,314
358,594		 Fixtures &
fittings
£
86,496
400
-
86,896
62,504
16,908
-
79,412
7,484
23,992		 Plant &
machinery
£
164,586
-
-
164,586
50,760
29,756
-
80,516
84,070
113,826		 Gym & studio
equipment
£
523,915
-
-
523,915
259,403
74,697
-
334,100
189,815
264,512		 Total
£
1,170,224
400
(358,987)
811,637
409,300
136,635
(47,981)
497,954
313,683
760,924

Included within the net book value of land and buildings above is £Nil (2020 - £Nil) in respect of freehold land and buildings and £32,314 (2020 - £358,594) in respect of leaseholds.

Page 31

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

Gym & studio equipment
13 Stock
Stocks
14 Debtors
Trade debtors
Prepayments
Other debtors
15 Cash and cash equivalents
Cash in hand
16 Creditors: amounts falling due within one year
Bank loans
Trade creditors
Hire purchase and finance leases
Other taxation and social security
Other creditors
Accruals and deferred income		 2021
£
133,834
2021
£
2,420
2021
£
5,899
15,030
4,721
25,650
2021
£
323,912
2021
£
25,231
566,209
35,614
45,302
28,315
835,770
1,536,441		 2020
£
161,277
2020
£
14,640
2020
£
4,468
34,567
10,206
49,241
2020
£
248,519
2020
£ (As restated)
-
274,136
48,935
39,155
25,306
495,943
883,475

Page 32

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Bank borrowings

Coronavirus Business Interruption Loan is denominated in with a nominal interest rate of 3.73% (2020 - £Nil), and the final instalment is due on 16 June 2026. The carrying amount at year end is £150,000 (2020 - £Nil).

The loan is secured by a fixed and floating charge over all property and undertaking of the charitable company.

The loan is repayable over 6 years, with initial repayment for the first 6 months being interest only. Under the terms of the scheme, the interest is paid by the Government for the first 12 months.

Deferred income

Deferred income at 1 April 2020
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2021
£
16,880
106,808
(16,880)
106,808		 2020
£
4,343
16,880
(4,343)
16,880

Deferred income represents memberships paid for in advance.

17 Creditors: amounts falling due after one year

Bank loans
Hire purchase and finance leases		 2021
£
118,567
62,209
180,776		 2020
£
-
81,513
81,513

18 Obligations under leases and hire purchase contracts

The total value of future minimum lease payments was as follows:

Within one year
In two to five years		 2021
£
35,614
62,209
97,823		 2020
£
48,935
81,513
130,448

Page 33

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Operating lease commitments

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

Land and buildings
Within one year
Between one and five years
After five years
Other
Within one year		 2021
£
525,001
2,100,004
9,378,082
12,003,087
-		 2020
£
379,167
2,100,000
9,887,500
12,366,667
42,585

The above operating lease commitments at 31 March 2021 include a 25 year lease taken out in February 2019 in relation to the Egham Orbit site. Under this lease, annual rents are stepped, starting at £175,000 in year 1, increasing to £350,000 in year 2 and £525,000 thereafter for the remainder of the lease. The discounted rent period represents a lease incentive under FRS 102 and has been spread over the lease term.

The Trustees continue to be engaged in negotiations with the landlord to reduce the rent commitments at the Egham Orbit site, in order to ensure that the Company can continue to operate its leisure facilities and meet its liabilities as they fall due. The negotiations are ongoing and the existing lease stands at the date of this report.

19 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £18,428 (2020 - £27,478).

Defined benefit pension schemes Surrey Pension Fund

The charitable company contributes to the Surrey Pension fund, part of the Local Government Pension Scheme (LGPS), on behalf of its employees who are members.

The pension costs are assessed in accordance with the advice of independent chartered actuaries. Hymans Robertson LLP are the appointed actuary of the local Surrey fund. The pension charge and balance sheet liability is based on an actuarial valuation dated 31 March 2021. A full actuarial valuation is undertaken at least every three years to determine whether the Statutory Funding Objective is met.

The date of the most recent comprehensive actuarial valuation was 31 March 2019. The most recent comprehensive valuation was carried out by Hymans Robertson LLP, and adjustments to the valuation have been based on assumptions as detailed further below. The adjustments for the current period have been calculated by the Hymans Robertson LLP. The actuary reviews the assets and liabilities of the scheme on a triennial basis for funding purposes. Interim valuations will continue to be performed at the end of each accounting year for the purposes of FRS 102 disclosures.

Page 34

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was 65,000 (2020 - £62,000).

The total cost relating to defined benefit schemes for the year included in the cost of an asset was - (2020 - £-).

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the statement of financial position are as follows:

The amounts recognised in the statement of financial position are as follows:
Fair value of scheme assets
Present value of defined benefit obligation
Defined benefit pension scheme deficit		 2021
£
2,034,000
(2,892,000)
(858,000)		 2020
£
1,514,000
(1,960,000)
(446,000)

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

Present value at start of year
Current service cost
Interest cost
Actuarial gains and losses
Benefits paid
Contributions by scheme participants
Present value at end of year		 2021
£
1,960,000
55,000
46,000
825,000
(5,000)
11,000
2,892,000

Page 35

Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

Fair value at start of year
Interest income
Actuarial gains and losses
Employer contributions
Contributions by scheme participants
Benefits paid
Fair value at end of year
Analysis of assets
The major categories of scheme assets are as follows:
Cash and cash equivalents
Equity instruments
Debt instruments
Property
Return on scheme assets
Return on scheme assets		 2021
%
3
76
16
5
100
2021
£
421,000		 2021
£
1,514,000
36,000
421,000
57,000
11,000
(5,000)
2,034,000
2020
%
2
74
17
7
100
2020
£
(216,000)

The pension scheme has not invested in any of the charity's own financial instruments or in properties or other assets used by the charity.

Principal actuarial assumptions

The principal actuarial assumptions at the statement of financial position date are as follows:

Discount rate
Future salary increases
Future pension increases		 2021
%
2.05
3.70
2.80		 2020
%
2.30
2.70
1.80

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Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Post retirement mortality assumptions

Current UK pensioners at retirement age - male
Current UK pensioners at retirement age - female
Future UK pensioners at retirement age - male
Future UK pensioners at retirement age - female		 2021
Years
22.00
247.00
23.00
26.00		 2020
Years
23.00
23.00
24.00
24.00

Vita Curves with improvements in line with the CMI 2018 model assuming long term rates of improvement of 1.25% p.a.

20 Funds

Unrestricted funds
General
Other
Total unrestricted funds
Restricted funds
Total funds		 Balance at 1
April 2020
£
(6,664)
(446,000)
(452,664)
115,000
(337,664)		 Incoming
resources
£
1,263,397
-
1,263,397
-
1,263,397		 Resources
expended
£
(2,423,285)
(8,000)
(2,431,285)
-
(2,431,285)		 Other
recognised
gains/(losses)
£
-
(404,000)
(404,000)
-
(404,000)		 Balance at
31 March
2021
£
(1,166,552)
(858,000)
(2,024,552)
115,000
(1,909,552)

Restricted sinking funds were set aside in 2011 by Runnymede Borough Council for the benefit of the facilities as part of the original agreement transferring the services of operating these facilities to the Company. These funds were originally restricted to support the repair or replacement of equipment associated with the artificial football pitches at Egham Leisure Centre.

During 2017, Runnymede Borough Council authorised payment of these funds to the Company, for the purpose of funding the development of the 4G Pitch at Egham Orbit and improvements to car parking.

During the year ended 31 March 2021, no expenditure was incurred from restricted funds.

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Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

Other Balance at
Balance at 1
Incoming		 Resources recognised 31 March
April 2019
resources		 expended gains/(losses) 2020
£
£		 £ £ £
Unrestricted funds
General 528,178
1,696,029		 (2,230,871) - (6,664)
Other (415,000)
-		 (39,000) 8,000 (446,000)
Total unrestricted funds 113,178
1,696,029		 (2,269,871) 8,000 (452,664)
Restricted funds 115,000
-		 - - 115,000
Total funds 228,178
1,696,029		 (2,269,871) 8,000 (337,664)
21 Analysis of net assets between funds
Total funds at
Unrestricted funds Restricted 31 March
General Other funds 2021
£ £ £ £
Tangible fixed assets 313,683 - - 313,683
Current assets 236,982 - 115,000 351,982
Current liabilities (1,536,441) - - (1,536,441)
Creditors over 1 year (180,776) - - (180,776)
Pension scheme liability - (858,000) - (858,000)
Total net assets (1,166,552) (858,000) 115,000 (1,909,552)
Total funds at
Unrestricted funds Restricted 31 March
General Other funds 2020
£ £ £ £ (As restated)
Tangible fixed assets 760,924 - - 760,924
Current assets 197,400 - 115,000 312,400
Current liabilities (883,475) - - (883,475)
Creditors over 1 year (81,513) - - (81,513)
Pension scheme liability - (446,000) - (446,000)
Total net assets (6,664) (446,000) 115,000 (337,664)

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Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

22 Analysis of net funds
Cash and cash equivalents
Cash at bank and in hand
Borrowings
Short term borrowings
Long term borrowings
Finance leases and hire purchase contracts
Net debt
Cash and cash equivalents
Cash at bank and in hand
Borrowings
Finance leases and hire purchase contracts
Net debt		 At 1 April
2020
£
248,519
248,519
-
-
(130,448)
(130,448)
118,071
At 1 April
2019
£
349,546
349,546
(175,798)
(175,798)
173,748		 Financing cash
flows
£
75,393
75,393
(25,231)
(118,567)
(32,625)
(176,423)
(101,030)
Financing cash
flows
£
(101,027)
(101,027)
45,350
45,350
(55,677)		 At 31 March
2021
£
323,912
323,912
(25,231)
(118,567)
(163,073)
(306,871)
17,041
At 31 March
2020
£
248,519
248,519
(130,448)
(130,448)
118,071

23 Related party transactions

There were no further related party transactions other than those already disclosed in the Trustees and key management remuneration notes in both the current and prior year.

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Achieve Lifestyle

Notes to the Financial Statements for the Year Ended 31 March 2021

24 Going concern

The Company has been loss-making in the year, generating an operating loss of £1,163k and is also in a net liability position at the balance sheet date. This performance and financial position is primarily the result of the Covid-19 pandemic which lead to three national lockdowns over the course of the year, significantly reducing income for the year.

Combined with this are significant fixed costs, primarily being the site rental at Egham Orbit - see Note 17 of the financial statements for further details. Whilst negotiations between the Trustees and the local council landlord in respect of the annual rental charges are ongoing, the terms of the existing lease stand at the date of this report, which are not sustainable based on the Company's results for the financial year ended 31 March 2021.

Staff costs are also a significant cost, but the impact of this has been offset by income from the Coronavirus Job Retention Scheme as many staff were put on furlough throughout the year.

Sites were able to reopen within social distancing measures in place from April 2021. Since the year end the charity has seen a significant increase in membership numbers, although have not year reached those at pre-pandemic levels.

The charity relinquished the lease for Achieve Zone in December 2020 and therefore the financial impact of this lease is no longer being felt.

After reviewing the Company’s forecasts and projections the Trustees’ have reasonable expectation, on the basis that the ongoing rental negotiations are positively concluded and the COVID-19 pandemic remains under control in the UK, that the Company has adequate resources to continue to operate and generate income levels sufficient to meets its liabilities as they fall due. As such, the Trustees have concluded that the Company is a going concern and the financial statements have been prepared on a going concern basis. The Trustees considered this to be an appropriate basis, despite the inherent material uncertainties resulting from the Covid-19 pandemic, based on the information available to them at the signing date.

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