Company registration number: 07451733 Charity registration number: 1141018
## Achieve Lifestyle
(A company limited by guarantee)
Annual Report and for the Year Ended 31 March 2023
Stewart & Co Accountants LLP Knoll House Knoll Road Camberley Surrey GU15 3SY
## **Achieve Lifestyle**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 14|
|Statement of Trustees' Responsibilities|15|
|Independent Auditors' Report|16 to 19|
|Statement of Financial Activities|20 to 21|
|Balance Sheet|22 to 23|
|Statement of Cash Flows|24|
|Notes to the Financial Statements|25 to 43|
## **Achieve Lifestyle**
|**Reference and Administrative Details**|**Reference and Administrative Details**|
|---|---|
|**Chief Executive Officer**|G T Baker|
|**Trustees**|J Taylor|
||K W Phillips|
||K Heal|
||E O'Shea (appointed 1 June 2022)|
||G T Baker (appointed 10 October 2023)|
||D McMeekin (appointed 17 October 2023)|
||J A Febry (appointed 12 October 2023)|
||M R Adams (appointed 1 November 2023)|
|**Secretary**|M Evans|
|**Senior Management Team**|M Evans, Business Director|
||G T Baker, Chief Executive Officer|
|**Registered 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 of the charitable company for the year ended 31 March 2023.
The Trustees confirm that the Annual Report and financial statements of the Company comply with the current statutory requirements, the requirements of the Company's governing document and the provisions of the Statement of Recommended Practice (SORP), 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) as amended by Update Bulletin 1 (effective 1 January 2015).
Since the Company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
## **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, operational budget performance and new initiatives in line with strategic plans.
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 purpose and vision is “helping make things achievable” for our local community, and its mission is “to be the leading health, leisure and wellbeing provider within the local community” and is represented by its desire to;
• Expand the sports, leisure and wellbeing programme to encourage increased participation and health improvements within the community.
- Be inclusive of the community offering a wide range of physical activity, health and wellbeing opportunities.
- Offer excellent value for money
- Offer creative and engaging ways of helping to keep the community healthier.
- Deliver excellent and consistent customer service.
Achieve Lifestyle’s key themes for 2022-2023 were;
• Ensure financial best practice and excellent audit and governance in adhered to consistently, by operating in a cost effective manner.
• Have a positive approach to facility and equipment planned maintenance and investment, to be safe for operational readiness.
- To strive to be an excellent employer, investing in staff, training and offering pathways for development, and
- supporting our people throughout the pandemic.
- Monitor our standards and procedures to ensure safety is paramount.
Based on the vision and themes following achievements were delivered.
Page 3
## **Achieve Lifestyle**
## **Trustees' Report**
## **Social Impact and Public Benefit**
Achieve Lifestyle held a Free Community Day during the August Bank Holiday Monday, the purpose was to encourage activities in the community, this included a 5 a side tournament, fun day activities and social bbq. The event was attended by the local community as well as other charity stall holders.
The local demographics have high numbers of young families, and the programming has activities to help meet their needs and demands, such as; Baby Yoga, Preschool swimming, junior sports courses, parent and toddler sessions.
The learn to swim programme continues to increase in numbers year on year, additional school bookings have increased, noting that the national curriculum requires children 11 years and over to be able to swim 25m. Egham Orbit is helping deliver on achieving this life skill to the local community.
The GP referral and Healthy Living programmes have significantly developed into the “Get Active - Stay Active” programme. This commences with support sessions led by specialist instructors through to a graduation by the participant into self-choice social sports clubs and activities. The key purpose is of helping individuals become more independent, by providing initial support through to improving their health to enjoy other leisure and social pursuits.
Partnership work continues with the NHS through Ashford & St Peters Hospital Trust, for physiotherapy rehabilitation, as Egham Orbit has become a “physio hub in the community” venue, this has included the addition of Junior Physiotherapy (in the pool).
Other specialist pool sessions offered include Aquaphobia for individuals with a water fear. The spa has seen a significant uptake in therapy wellness treatments for individuals with varying conditions such as long Covid, depression, anxiety and cancer. The treatments are delivered by a team of trained staff and bespoke range of therapy products.
## _**Community Impact- Health & Wellbeing**_
Despite the challenges faced by the post pandemic recovery which had a huge impact on leisure and sports facilities, the trust continued its recovery;
• Membership numbers continue to rise in line with recovery predictions at Egham Orbit.
• Social values were realised with enhancements to the pricing structure, in getting hard to reach and low income families back into or becoming involved in community health and wellbeing activities and to assist in helping to meet community affordability.
• Supporting Ukrainian refugees with free and discounted facility access, and offering a social hub for displaced families.
## _**Young People**_
• Swim lessons continue to increase, and demand is yet to be satisfied, as there are waiting lists for swimming lessons to levels higher than pre pandemic.
• The increasing number of young people participating in sport and wellbeing activities continues to rise, especially in the gym and fitness sector.
• Supporting the local swim clubs, groups and associations with subsidised pool hire charges.
Page 4
## **Achieve Lifestyle**
## **Trustees' Report**
## _**Disability**_
• Providing discounted access to facilities for target groups and organisations to allow them to thrive, including weekly sessions by Egham Constellations disability swim club and the Dramatize disability school as well as other disability bookings.
• Providing accessible swimming sessions during all open hours through regular pool programming, specialist equipment, and promoting a culture of inclusion.
## **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, by actively supporting local suppliers and contractors.
• Seeking local council support to enhance a local bus route to assist in travel choices for Egham Orbit.
## **Financial review**
Results are for the year ended 31 March 2023
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 2023 was £3,274,503 and total expenditure for the year was £2,827,597.
The Company utilised cash reserves of £62,704 to working capital during the year.
At the end of March 2023 cash held by the Company totalling £480,700.
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 £916,124 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 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.
## _**Investment policy and objectives**_
Funds that are not immediately required for operational needs and cannot be applied to either reduce existing borrowings or avoid the raising of new borrowings will be held in cash reserves, to gain interest.
The current priority is to ensure that any surplus cash is available at short notice to provide short term liquidity and protect the business from unplanned post Covid challenges.
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 with the Trust’s landlord (Runnymede Borough Council) in regards to a rent review.
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.
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 is now working much closer with Runnymede Borough Council in supporting council community aims, providing discounted access to sport, health and wellbeing activities through agreements with the council, and it is expected that this will continue to grow and develop.
Discussion have taken place on enhancing the Egham campus, by looking at partnership opportunities, such as; 1. The sale of a small parcel of land to seed fund enhancements
2. Working with organisations to bring other sub tenants to the external grounds
Work continues with other partners, through a number of sports club and association bookings to deliver quality services to strengthen and develop the contribution that leisure can make to the quality of life of the local community.
Work also continues with the local NHS trust, to seek to offer access to services that can be supported outside a hospital setting.
Going forward, the key elements for Achieve Lifestyle are:
- Finalise rent agreement with Runnymede Borough Council
- A drive to increase membership growth at Addlestone Health & Fitness
- Review current income generation opportunities within both facilities
- Securing the best options for utilities contracts
Page 8
## **Achieve Lifestyle**
## **Trustees' Report**
## _**Strategies and policies**_
As the rent review is scheduled to be effective from April 2023, the business plan and associated financial budget runs to 31 March 2024. This was 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.
With effective cash flow management, the trust is operationally solvent and the steps being taken with the landlord will help enable the business to thrive.
The future strategy is focused on profitability and building on reserves, this involves;
Rent negotiations
Income generation opportunities Effective expenditure management Innovation and improvements to ensure continued levels of quality service standards
Page 9
## **Achieve Lifestyle**
## **Trustees' Report**
## **Senior Management Team Remuneration Policy**
The pay and remuneration of the senior management is set in reference to the complexity of each role band is benchmarked with similar to organisations in the region and charity sector.
Annual pay progression is discretionary and subject to performance, affordability and the prevailing market rate for the role.
## **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.
All staff receive a comprehensive performance review, with associated personal development training plans.
Achieve lifestyle regularly communicates with staff through department and individual and team meetings, all staff meetings, staff newsletter, staff handbook and general 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.
## **Future Development**
Achieve Lifestyle is now working much closer with Runnymede Borough Council in supporting council community aims, providing discounted access to sport, health and wellbeing activities through agreements with the council, and it is expected that this will continue to grow and develop.
Discussion have taken place on enhancing the Egham campus, by looking at partnership opportunities, such as; 1. The sale of a small parcel of land to seed fund enhancements
2. Working with organisations to bring other sub tenants to the external grounds
Work continues with other partners, through a number of sports club and association bookings to deliver quality services to strengthen and develop the contribution that leisure can make to the quality of life of the local community.
Work also continues with the local NHS trust, to seek to offer access to services that can be supported outside a hospital setting.
Page 10
## **Achieve Lifestyle**
## **Trustees' Report**
## **Going concern**
An agreement with the landlord (Runnymede Borough Council) on rents payable to March 2024 has been agreed and is being upheld, a further review has been agreed to commence in early 2024 for the longer term, this is to assist in achieving realistic rents in the current market environment as well as ensure there is provision for supporting the council in their health and wellbeing targets.
In January 2022 a Partnership Forum was set up with the trust and the landlord (Runnymede Borough Council), the purpose of the Partnership Forum is to ensure that best value is derived from the relationship for both parties, both in financial terms and in community and social value. The meetings take place quarterly, and the council have indicated strongly their desire to support the trust in developing the Egham campus as a destination venue with mutual benefit.
There are ongoing reviews for action of two key expenditure items;
1. Utilities - Securing the best options for utilities contracts.
2. Employee Costs - There continues to be a dynamic staffing structure, to ensure job roles match customer demand and that the organisation is fit for purpose.
3. Reviewing all contractual agreements regularly with suppliers, and phased payment agreements where possible to aid cash flow.
## **Trustees and officers**
The trustees and officers serving during the year and since the year end were as follows:
Trustees: J Taylor K W Phillips K Heal E O'Shea (appointed 1 June 2022) G T Baker (appointed 10 October 2023) D McMeekin (appointed 17 October 2023) J A Febry (appointed 12 October 2023) M R Adams (appointed 1 November 2023) J J Dalton (resigned 15 August 2022) H Aitken (resigned 19 November 2023) P G Robinson (resigned 10 October 2023)
Page 11
## **Achieve Lifestyle**
## **Trustees' Report**
Chief Executive Officer: G T Baker (appointed 10 October 2023) Secretary: M Evans Senior Management / Leadership H Aitken, Chief Executive Officer (resigned 10 October 2023) Team: M Evans, Business Director G T Baker, Chief Executive Officer (appointed 10 October 2023)
## **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.
## _**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.
## _**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.
Page 12
## **Achieve Lifestyle**
## **Trustees' Report**
## _**Organisational structure**_
The Company is made up of up to 8 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.
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.
A register of Trustees relevant interests is maintained and updated regularly.
There are no funds held as custodian trustees on behalf of others.
## _**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.
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, staff handbook and general 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.
## **Reappointment of auditor**
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Stewart & Co Accountants LLP as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.
Page 13
## **Achieve Lifestyle**
## **Trustees' Report**
The annual report was approved by the trustees of the charity on 12 December 2023 and signed on its behalf by: **SIGNED SECURELY**
**14/12/2023 at 2:45:10 PM UTC**
......................................... K W Phillips Trustee
Page 14
## **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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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 the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that can 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.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the trustees of the charity on 12 December 2023 and signed on its behalf by: **SIGNED SECURELY**
**14/12/2023 at 2:45:10 PM UTC**
......................................... K W Phillips Trustee
Page 15
## **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 2023, which comprise the and , 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).
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 25 in the financial statements, which indicates that the company incurred a net income, before other recognised gains and losses, of £446,906 during the year ended 31 March 2023 and, as of that date, the company’s current liabilities exceeded its total assets by £716,591. As stated in Note 25 these events or conditions, along with other matters as set forth in Note 25 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 16
## **Achieve Lifestyle**
## **Independent Auditor's Report to the Members of Achieve Lifestyle**
## **Opinion on other matter prescribed by the Companies Act 2006**
- In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Trustees' Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charity 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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities (set out on page 15), 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 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 17
## **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:
- Identifying those members of the charitable company who have the primary responsibility for ensuring compliance with laws and regulations;
- Enquiries with management, to understand managements’ approach to ensuring compliance with laws and regulations, and to obtain knowledge of any non-compliance or potential non-compliance with laws and regulations that could affect the financial statements;
- Evaluating managements’ incentives and opportunities for manipulation of the financial statements (including management override of controls);
- Testing journal entries and performing analytical procedures to identify any unusual transactions, or those outside the normal course of business, which may indicate risks of material misstatement due to fraud;
- Testing of balances and transactions that are subject to estimation uncertainty by review of evidence supporting the assumptions and judgements used, and determining whether those judgements used indicate potential bias;
- Reading minutes of meetings of those charged with governance;
- Review of legal expense accounts to identify spend which may be indicative of breaches of laws and regulations;
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with the provisions of laws and regulations described above.
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 18
## **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
18 December 2023
Page 19
## **Achieve Lifestyle**
## **Statement of Financial Activities for the Year Ended 31 March 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Charitable activities
Investment income
Total income
**Expenditure on:**
Raising funds
Charitable activities
Total expenditure
Net income
**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|**Unrestricted**
**funds**
**£**
3,273,347
1,156
3,274,503
3,293
(2,830,890)
(2,827,597)
446,906
676,000
1,122,906
(2,039,030)
(916,124)|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-
115,000
115,000|**Total**
**2023**
**£**
3,273,347
1,156|
|---|---|---|---|
||||3,274,503|
||||3,293
(2,830,890)|
||||(2,827,597)|
||||446,906
676,000|
||||1,122,906
(1,924,030)|
||||(801,124)|
Page 20
## **Achieve Lifestyle**
## **Statement of Financial Activities for the Year Ended 31 March 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
## _**Prior Period Statement of Financial Activities**_
|**Note**
**Income and Endowments from:**
Donations and legacies
Charitable activities
Total income
**Expenditure on:**
Raising funds
Charitable activities
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|**Unrestricted**
**funds**
**£**
128,097
2,811,171
2,939,268
530
(3,227,276)
(3,226,746)
(287,478)
273,000
(14,478)
(2,024,552)
(2,039,030)|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-
115,000
115,000|**Total**
**2022**
**£**
128,097
2,811,171|
|---|---|---|---|
||||2,939,268|
||||530
(3,227,276)|
||||(3,226,746)|
||||(287,478)
273,000|
||||(14,478)
(1,909,552)|
||||(1,924,030)|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note .
Page 21
## **Achieve Lifestyle**
## **(Registration number: 07451733) Balance Sheet as at 31 March 2023**
|**Note**
**Fixed assets**
Tangible assets
**Current assets**
Stocks
Debtors
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
**Net current liabilities**
**Total assets less current liabilities**
**Creditors: Amounts falling due after more than one year**
**Provisions**
**Net liabilities excluding pension liability**
**Pension scheme liability**
**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**|**2023**
**£**
189,330
6,243
67,093
480,700
554,036
(1,459,957)
(905,921)
(716,591)
(64,533)
(33,000)
(814,124)
13,000
(801,124)
115,000
(950,124)
34,000
(916,124)
(801,124)|**2022**
**£**
244,579
2,950
32,183
543,404|
|---|---|---|
|||578,537
(2,006,846)|
|||(1,428,309)|
|||(1,183,730)
(116,300)
-|
|||(1,300,030)
(624,000)|
|||(1,924,030)|
|||115,000
(1,415,030)
(624,000)|
|||(2,039,030)|
|||(1,924,030)|
For the financial year ending 31 March 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
Page 22
## **Achieve Lifestyle**
## **(Registration number: 07451733) Balance Sheet as at 31 March 2023**
The financial statements were approved by the trustees, and authorised for issue on 12 December 2023 and signed on their behalf by:
**SIGNED SECURELY**
**14/12/2023 at 2:45:10 PM UTC**
.........................................
K W Phillips
Trustee
Page 23
## **Achieve Lifestyle**
## **Statement of Cash Flows for the Year Ended 31 March 2023**
|**Note**
**Cash flows from operating activities**
Net cash income/(expenditure)
**Adjustments to cash flows from non-cash items**
Depreciation
Investment income
Difference between pension charge & cash contributions
**Working capital adjustments**
Increase in stocks
Increase in debtors
(Decrease)/increase in creditors
Increase in provisions
Net cash flows from operating activities
**Cash flows from investing activities**
Interest receivable and similar income
Purchase of tangible fixed assets
Sale of tangible fixed assets
Net cash flows from investing activities
**Cash flows from financing activities**
Repayment of loans and borrowings
Repayment of capital element of finance leases and HP contracts
Net cash flows from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March|**2023**
**£**
1,122,906
82,554
(1,156)
(637,000)
567,304
(3,293)
(34,910)
(533,866)
33,000
28,235
1,156
(27,543)
238
(26,149)
(26,515)
(38,275)
(64,790)
(62,704)
543,404
480,700|**2022**
**£**
(14,478)
111,142
-
(234,000)|
|---|---|---|
|||(137,336)
(530)
(6,533)
466,922
-|
|||322,523|
|||-
(42,038)
-|
|||(42,038)|
|||(25,334)
(35,659)|
|||(60,993)|
|||219,492
323,912|
|||543,404|
All of the cash flows are derived from continuing operations during the above two periods.
Page 24
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
## **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 25.
Page 25
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **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 19.
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.
## _**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,
Page 26
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## _**Raising funds**_
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
## _**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.
## **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|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).
## **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.
Page 27
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **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.
## **Provisions**
Provisions are recognised when the charity has an obligation at the reporting date as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
## **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 28
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **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 2022. See note 19 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 29
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **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**
|**3**
**Income from donations and legacies**|||
|---|---|---|
|Grants receivable|**Total**
**2023**
**£**
-
-|**Total**
**2022**
**£**
128,097|
|||128,097|
## **4 Income from charitable activities**
|Health and fitness
Sports and activities
Retail and other income|**Unrestricted**
**funds**
**General**
**£**
2,265,458
622,540
385,349
3,273,347|**Total**
**2023**
**£**
2,265,458
622,540
385,349
3,273,347|**Total**
**2022**
**£**
1,663,437
954,356
193,378|
|---|---|---|---|
||||2,811,171|
Page 30
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **5 Investment income**
|Interest receivable and similar income;
Interest receivable on bank deposits|**Unrestricted**
**funds**
**General**
**£**
1,156|**Total**
**2023**
**£**
1,156|
|---|---|---|
## **6 Expenditure on charitable activities**
## _**Analysis by fund**_
|Health and fitness
Sports and activities
Retail and other income
Governance costs
**Total for 2023**
**Total for 2022**|**Unrestricted funds**
**General**
**£**
**Other**
**£**
1,738,367
4,000
737,468
4,000
300,630
-
13,425
-
2,789,890
8,000
3,219,276
8,000|**Total**
**funds**
**£**
1,742,367
741,468
300,630
13,425|
|---|---|---|
|||2,797,890|
|||3,227,276|
## _**Analysis by charitable activity**_
|Health and fitness
Sports and activities
Retail and other income
Governance costs
**Total for 2023**
Total for 2022|**Activity**
**undertaken**
**directly**
**£**
1,037,980
402,179
283,368
-
1,723,527
2,194,277|**Activity**
**support costs**
**£**
704,387
339,289
17,262
13,425
1,074,363
1,032,999|**Total**
**expenditure**
**£**
1,742,367
741,468
300,630
13,425|
|---|---|---|---|
||||2,797,890|
||||3,227,276|
Page 31
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## _**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
Insurance|**Health and**
**fitness**
**£**
447,277
22,481
37,786
18,000
183,858
78,455
(389)
56,606
168,563
25,343
1,037,980|**Sports and**
**activities**
**£**
287,534
14,289
5,584
-
-
25,899
-
15,555
46,321
6,997
402,179|**Retail and**
**other income**
**£**
103,099
8,868
2,603
-
-
1,443
138,006
18,040
11,309
-
283,368|**Total**
**2023**
**£**
837,910
45,638
45,973
18,000
183,858
105,797
137,617
90,201
226,193
32,340
1,723,527|**Total**
**2022**
**£**
806,745
54,103
17,325
18,000
138,648
84,442
132,922
619,347
287,239
35,506|
|---|---|---|---|---|---|
||||||2,194,277|
Page 32
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **7 Analysis of 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
Bank interest payable
Hire purchase interest
**Governance costs**
Audit & accountancy fees|**Health and**
**fitness**
**£**
205,213
142,676
18,135
140,076
7,496
45,892
39,067
64,759
238
45,000
3,967
8,368
720,887
10,531
731,418|**Sports and**
**activities**
**£**
205,213
39,567
4,983
38,493
2,060
12,611
22,701
17,795
-
12,366
-
-
355,789
2,894
358,683|**Retail and**
**other**
**income**
**£**
875
15,575
537
-
275
-
-
-
-
-
-
-
17,262
-
17,262|**Total**
**2023**
**£**
411,301
197,818
23,655
178,569
9,831
58,503
61,768
82,554
238
57,366
3,967
8,368
1,093,938
13,425
1,107,363|**Total**
**2022**
**£**
406,725
155,685
12,528
145,287
50,717
56,817
9,955
111,142
-
48,721
18,195
-|
|---|---|---|---|---|---|
||||||1,015,772|
||||||17,227|
||||||1,032,999|
## **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 £90,452 (2022: £93,495) 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. £Nil (2022: £Nil) of expenses were reimbursed to H Aitken during the year.
At the balance sheet date the amount due H Aitken was £Nil (2022: £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 33
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **9 Staff costs**
The aggregate payroll costs were as follows:
|The aggregate payroll costs were as follows:|||
|---|---|---|
|**Staff costs during the year were:**
Wages and salaries
Social security costs
Pension costs|**2023**
**£**
1,173,366
63,798
121,658
1,358,822|**2022**
**£**
1,107,603
74,278
88,017|
|||1,269,898|
Included within wages and salaries is £Nil of termination benefits (2022: £8,674) in relation to redundancy pay.
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
|charity during the year expressed as full time equivalents was as follows:|||
|---|---|---|
|Management
Operations
Gym
Coaches & instructors
Administration and front of house|**2023**
**No**
8
23
15
24
25
95|**2022**
**No**
9
22
11
26
20|
|||88|
The number of employees whose emoluments (excluding employers pension contributions) fell within the following bands was:
|£60,001 - £70,000|**2023**
**No**
1|**2022**
**No**
1|
|---|---|---|
The total employee benefits of the key management personnel of the charity were £188,244 (2022 - £205,853).
The chief executive officer, as the highest paid member of staff, received benefits totalling £90,452 (2022 - £93,495).
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## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **10 Auditors' remuneration**
|**10 Auditors' remuneration**|||
|---|---|---|
|Audit of the financial statements
**Other fees to auditors**
All other non-audit services|**2023**
**£**
9,925
2,750|**2022**
**£**
9,360|
|||2,600|
## **11 Taxation**
The charity is a registered charity and is therefore qualifies for the small trading tax exemption. In prior years the charity was under the limits and hence there was no corporation charge. In 2023, the charity exceeded the limits and tax is payable on all profits from the trading activity.
## **12 Tangible fixed assets**
|**Cost**
At 1 April 2022
Additions
Disposals
At 31 March 2023
**Depreciation**
At 1 April 2022
Charge for the year
Eliminated on
disposals
At 31 March 2023
**Net book value**
At 31 March 2023
At 31 March 2022|**Long-term**
**leasehold**
**property**
**£**
36,240
-
-
36,240
5,738
1,812
-
7,550
28,690
30,502|**Fixtures &**
**fittings**
**£**
93,498
11,462
-
104,960
87,888
6,751
-
94,639
10,321
5,610|**Plant &**
**machinery**
**£**
169,130
4,943
(2,934)
171,139
108,014
29,134
(2,696)
134,452
36,687
61,116|**Gym & studio**
**equipment**
**£**
540,094
11,138
-
551,232
392,743
44,857
-
437,600
113,632
147,351|**Total**
**£**
838,962
27,543
(2,934)|
|---|---|---|---|---|---|
||||||863,571|
||||||594,383
82,554
(2,696)|
||||||674,241|
||||||189,330|
||||||244,579|
Included within the net book value of land and buildings above is £Nil (2022 - £Nil) in respect of freehold land and buildings and £28,690 (2022 - £30,502) in respect of leaseholds.
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## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **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||**2023**
**£**
138,058
**2023**
**£**
6,243
**2023**
**£**
4,865
25,726
36,502
67,093
**2023**
**£**
480,700
**2023**
**£**
27,416
776,788
23,889
14,133
19,061
598,670
1,459,957|**2022**
**£**
138,058
**2022**
**£**
2,950|
|---|---|---|---|
||||**2022**
**£**
7,854
24,329
-|
||||32,183|
||||**2022**
**£**
543,404|
||||**2022**
**£**
26,098
1,195,170
38,230
4,162
7,767
735,419|
||||2,006,846|
Page 36
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **Bank borrowings**
Coronavirus Business Interruption Loan is denominated in with a nominal interest rate of 3.73% (2022 - £4%), and the final instalment is due on 16 June 2026. The carrying amount at year end is £91,949 (2022 - £118,464).
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**|||
|---|---|---|
|Deferred income at 1 April 2022
Amounts released from previous periods
Deferred income at year end|**2023**
**£**
43,590
(12,503)
31,087|**2022**
**£**
106,808
(63,218)|
|||43,590|
Deferred income represents memberships paid for in advance.
## **17 Creditors: amounts falling due after one year**
|Bank loans
Hire purchase and finance leases|**2023**
**£**
64,533
-
64,533|**2022**
**£**
92,366
23,934|
|---|---|---|
|||116,300|
## **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|**2023**
**£**
23,888
-
23,888|**2022**
**£**
38,230
23,934|
|---|---|---|
|||62,164|
Page 37
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **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|**2023**
**£**
250,000
1,750,000
6,936,473
8,936,473|**2022**
**£**
525,000
210,000
8,925,000|
|---|---|---|
|||9,660,000|
The above operating lease commitments at 31 March 2023 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. In November 2022, an agreement was reached with the landlord to agree a reduced, more sustainable, annual rental charge for the Egham Orbit site for the period 1st April 2023 - 31st March 2024. This agreement meant that the rent has been discounted to £300,000 for years 4 and 5. The discounted rent period represents a lease incentive under FRS 102 and has been spread over the lease term.
## **19 Provisions**
|Credited to the statement of recognised gains and losses|**Provision for**
**legal expenses**
**£**
33,000|**Total**
**£**
33,000|
|---|---|---|
Post year end two ex-employees, who were employed during the year, submitted claims against the charity. The provision represents the expected economic outflows in relation to the claims.
## **20 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 £23,707 (2022 - £18,428).
## **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 2023. A full actuarial valuation is undertaken at least every three years to determine whether the Statutory Funding Objective is met.
Page 38
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
The date of the most recent comprehensive actuarial valuation was 31 March 2023. 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.
The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £90,000.00 (2022 - £97,000).
The total cost relating to defined benefit schemes for the year included in the cost of an asset was £0.00 (2022 - £0.00).
## _**Reconciliation of scheme assets and liabilities to assets and liabilities recognised**_
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 surplus/(deficit)|**2023**
**£**
1,944,000
(1,931,000)
13,000|**2022**
**£**
2,133,000
(2,757,000)|
|---|---|---|
|||(624,000)|
## _**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|**2023**
**£**
2,757,000
72,000
77,000
(982,000)
(5,000)
12,000|
|---|---|
||1,931,000|
Page 39
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## _**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|**2023**
**£**
2,133,000
59,000
(306,000)
51,000
12,000
(5,000)|
|---|---|
||1,944,000|
## _**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|**2023**
**%**
2
64
27
7
100
**2023**
**£**
(156,000)|**2022**
**%**
2
64
26
8|
|---|---|---|
|||100|
|||**2022**
**£**
(7,000)|
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|**2023**
**%**
5
4
3|**2022**
**%**
3
4
3|
|---|---|---|
Page 40
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## _**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|**2023**
**Years**
22
25
23
26|**2022**
**Years**
22
25
23
26|
|---|---|---|
Vita Curves with improvements in line with the CMI 2020 model assuming long term rates of improvement of 1.5% p.a.
## **21 Funds**
|**Unrestricted funds**
General
Other
**Total unrestricted funds**
**Restricted funds**
**Total funds**
**Unrestricted funds**
General
Other
**Total unrestricted funds**
**Restricted funds**
**Total funds**|**Balance at 1**
**April 2022**
**£**
(1,415,030)
(624,000)
(2,039,030)
115,000
(1,924,030)
**Balance at 1**
**April 2021**
**£**
(1,166,552)
(858,000)
(2,024,552)
115,000
(1,909,552)|**Incoming**
**resources**
**£**
2,643,368
-
2,643,368
-
2,643,368
**Incoming**
**resources**
**£**
2,355,772
-
2,355,772
-
2,355,772|**Resources**
**expended**
**£**
(2,178,462)
(18,000)
(2,196,462)
-
(2,196,462)
**Resources**
**expended**
**£**
(2,604,250)
(39,000)
(2,643,250)
-
(2,643,250)|**Other**
**recognised**
**gains/(losses)**
**£**
-
676,000
676,000
-
676,000
**Other**
**recognised**
**gains/(losses)**
**£**
-
273,000
273,000
-
273,000|**Balance at**
**31 March**
**2023**
**£**
(950,124)
34,000|
|---|---|---|---|---|---|
||||||(916,124)
115,000|
||||||(801,124)|
||||||**Balance at**
**31 March**
**2022**
**£**
(1,415,030)
(624,000)|
||||||(2,039,030)
115,000|
||||||(1,924,030)|
Page 41
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
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 2023, no expenditure was incurred from restricted funds.
## **22 Analysis of net assets between funds**
|**Unrestricted funds**
**General**
**£**
**Other**
**£**
Tangible fixed assets
189,330
-
Current assets
439,036
-
Current liabilities
(1,459,957)
-
Creditors over 1 year
(64,533)
-
Provisions
(33,000)
-
Pension scheme liability
-
13,000
Total net assets
(929,124)
13,000
**Unrestricted funds**
**General**
**£**
**Other**
**£**
Tangible fixed assets
244,579
-
Current assets
463,537
-
Current liabilities
(2,006,846)
-
Creditors over 1 year
(116,300)
-
Pension scheme liability
-
(624,000)
Total net assets
(1,415,030)
(624,000)
**23 Analysis of net funds**
**At 1 April**
**2022**
**£**
Cash at bank and in hand
543,404
Debt due within one year
(26,098)
Debt due after more than one year
(92,366)
Finance leases and hire purchase contracts
(62,164)
Net debt
362,776|**Restricted**
**funds**
**£**
-
115,000
-
-
-
-
115,000
**Restricted**
**funds**
**£**
-
115,000
-
-
-
115,000
**Financing cash**
**flows**
**£**
(62,704)
(1,318)
27,833
38,276
2,087|**Total funds at**
**31 March**
**2023**
**£**
189,330
554,036
(1,459,957)
(64,533)
(33,000)
13,000|
|---|---|---|
|||(801,124)|
|||**Total funds at**
**31 March**
**2022**
**£**
244,579
578,537
(2,006,846)
(116,300)
(624,000)|
|||(1,924,030)|
|||**At 31 March**
**2023**
**£**
480,700
(27,416)
(64,533)
(23,888)
364,863|
Page 42
## **Achieve Lifestyle**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
|Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Finance leases and hire purchase contracts
Net debt|**At 1 April**
**2021**
**£**
323,912
(25,231)
(118,567)
(163,073)
17,041|**Financing cash**
**flows**
**£**
219,492
(867)
26,201
100,909
345,735|**At 31 March**
**2022**
**£**
543,404
(26,098)
(92,366)
(62,164)|
|---|---|---|---|
||||362,776|
## **24 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.
## **25 Going concern**
The Charity has been profit-making in the year, generating an operating profit of £446,906 (2022 loss: £287,478). However it remains in a net liability position at the balance sheet date. The performance and financial position are primarily the result of the Covid-19 pandemic which led to three national lockdowns, significantly reducing income for 2022 and 2021.
Combined with this are significant fixed costs, primarily being the site rental at Egham Orbit - see Note 18 of the financial statements for further details. However, in November 2022 an agreement was reached with the landlord to agree a reduced, more sustainable, annual rental charge for the Egham Orbit site for the period 1st April 2023 – 31st March 2024.
Sites were able to reopen from April 2021. Since then, the charity has seen a significant increase in membership numbers, although recently the increase in the cost of living in the UK has caused the growth in membership numbers to stagnate but significantly they have not dropped.
After reviewing the Charity’s forecasts and projections and after agreeing a reduced rental charge for the Egham Orbit site, the Trustees’ have reasonable expectations that the Charity 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 Charity 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 and the increase in the cost of living in the UK, based on the information available to them at the signing date.
Page 43