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2021-09-30-accounts

Charity Registration No. 1144460

Company Registration No. 02463826 (England and Wales)

WREXHAM TENNIS CENTRE LIMITED

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

WREXHAM TENNIS CENTRE LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J A Webb
J S Ainge
Secretary J A Webb
Charity number 1144460
Company number 02463826
Registered office Wrexham Tennis Centre
Plas Coch Road
Wrexham
Clwyd
LL11 2BW
Independent examiner McLintocks (NW) Limited
The Coach House
25 Rhosddu Road
Wrexham
LL11 1EB
Bankers Unity Trust Bank plc
4 Brindleyplace
Birmingham
B1 2HB
Solicitors Allington Hughes Law
10 Grosvenor Road
Wrexham
LL11 1SD

WREXHAM TENNIS CENTRE LIMITED

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6 - 7
Notes to the financial statements 8 - 17

WREXHAM TENNIS CENTRE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2021

The trustees present their annual report and financial statements for the year ended 30 September 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The charity's objects are detailed in the governing document and in summary are the promotion of community participation in healthy recreation through the provision of playing tennis at all standards of the game.

The current trustees have retained the majority of these Aims and Objectives from previous plan with a review planned during 2022.

Current Objectives:

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

The trustees confirm that they have complied with the Charity Commission's guidance on public benefit.

Achievements and performance

The period October 2020 to September 2021, saw the continuation of Nationwide Covid-19 restrictions, with both full and partial shutdowns from October 2020 through to May 2021, followed by slow recovery in the final few months of the financial year. The closure and restrictions adversely affected income and continued a reliance on the Job Retention Scheme.

Financial review

The continued impact of Covid-19, severely affected income during the periods of full and partial closure due to government guidelines, and also saw difficulty the return to the pre-covid levels of activity due to consumer confidence levels of attending a public facility as well as the effect on customers personal finances during the pandemic directly effecting the priorities on where consumers spend their disposable income.

In the period since the year end gradual recovery shows continued improvement, and we have just hosted 2 major tournaments which saw the facility full to capacity over a sustained period for the first time in the post pandemic era. Activity and associated costs and staffing levels continue to be closely monitored as we steadily progress to what we hope to be pre-covid 19 levels.

Reserves policy

The trustees policy is to retain 10% of turnover in cash monthly.

Risk management

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

WREXHAM TENNIS CENTRE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

The charity operates a tight financial policy that minimises the opportunity for fraud or financial error. The trustees takes no remuneration and the accounting policy is similar to that of a SME. This includes:

Plans for future periods

The future plans of the charity are split into facility and participation:

Facility

Structure, governance and management

Governing document

The charity is a company limited by guarantee by it's Memorandum and Articles of Association, which were adopted by the company on 29th March 2011 and lodged with Companies House on 15th April 2011. It was registered as a charity with the Charity Commission on 27th October 2011, under charity number 1144460.

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

J A Webb
M Morris (Resigned 30 April 2021)
J S Ainge
G V Hawkey (Appointed 30 April 2021 and resigned 2 June 2021)

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Organisational structure

The trustees are volunteers with oversight for strategy, governance, finance and regulation. The board sits every month to review these 4 points together with the centres operations. There is a general manager in position to implement strategy and oversee the running of the centre. The charity has developed subcommittees that report into the board which focus on the 4 core operational areas of the centre.

WREXHAM TENNIS CENTRE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

Induction and training of trustees

For new trustees they will be inducted and trained including the following:

Remuneration policy

Key management remuneration is agreed by the board of trustees.

The trustees' report was approved by the Board of Trustees.

J S Ainge Trustee

24 June 2022

WREXHAM TENNIS CENTRE LIMITED

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF WREXHAM TENNIS CENTRE LIMITED

I report to the trustees on my examination of the financial statements of Wrexham Tennis Centre Limited (the charity) for the year ended 30 September 2021.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Timothy Mitchell BSc FCA

McLintocks (NW) Limited The Coach House 25 Rhosddu Road Wrexham LL11 1EB

Dated: 24 June 2022

WREXHAM TENNIS CENTRE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2021

**Unrestricted ** Unrestricted Unrestricted Restricted Total
funds funds funds
2021 2020 2020 2020
Notes £ £ £ £
Income and endowments from:
Donations and legacies 2 62,284 49,113 - 49,113
Charitable activities 3 184,529 225,835 - 225,835
Other income 4 12,786 15,297 - 15,297
Total income 259,599 290,245 - 290,245
Expenditure on:
Charitable activities 5 292,175 330,715 3,092 333,807
Net expenditure for the year/
Net movement in funds (32,576) (40,470) (3,092) (43,562)
Fund balances at 1 October 2020 359,815 400,285 3,092 403,377
Fund balances at 30 September 2021 327,239 359,815 - 359,815

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

All income and expenditure derive from continuing activities.

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

WREXHAM TENNIS CENTRE LIMITED

BALANCE SHEET

AS AT 30 SEPTEMBER 2021

2021 2020
Notes £ £ £ £
Fixed assets
Tangible assets 9 282,554 309,264
Investments 10 2 2
282,556 309,266
Current assets
Stocks 12 1,581 793
Debtors 13 50,218 68,021
Cash at bank and in hand 30,269 27,128
82,068 95,942
Creditors: amounts falling due within
one year 14 (35,718) (45,393)
Net current assets 46,350 50,549
Total assets less current liabilities 328,906 359,815
Creditors: amounts falling due after
more than one year 15 (1,667) -
Net assets 327,239 359,815
Income funds
Unrestricted funds 327,239 359,815
327,239 359,815

WREXHAM TENNIS CENTRE LIMITED

BALANCE SHEET (CONTINUED)

AS AT 30 SEPTEMBER 2021

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 24 June 2022

J S Ainge

Trustee

Company registration number 02463826

WREXHAM TENNIS CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

Charity information

Wrexham Tennis Centre Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Wrexham Tennis Centre, Plas Coch Road, Wrexham, Clwyd, LL11 2BW.

1.1 Accounting convention

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

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

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

The charitable company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the charitable company as an individual entity and not about its group.

1.2 Going concern

These financial statements are prepared on the going concern basis. The trustees have a reasonable expectation that the charity will continue in operational existence for the foreseeable future, however, the trustees are aware of certain material uncertainties which may cause doubt on the charity's ability to continue as a going concern.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

WREXHAM TENNIS CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

(Continued)

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

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

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

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

Leasehold land and buildings 4% on cost
Plant and equipment 25% on cost
Fixtures and fittings 25% on cost
Computers 25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Fixed asset investments

Fixed asset investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in net income/(expenditure) for the year.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

WREXHAM TENNIS CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

1 Accounting policies

(Continued)

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

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

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

WREXHAM TENNIS CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

2 Donations and legacies
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Government grants 62,284 49,113
3 Charitable activities
Tennis Tennis
activities activities
2021 2020
£ £
Sales within charitable activities 184,529 225,835
4 Other income
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Rental income 12,786 15,297

WREXHAM TENNIS CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

5 Charitable activities

Tennis Tennis
activities activities
2021 2020
£ £
Staff costs 24,021 27,066
Subcontractors 57,033 87,730
Equipment and running costs 11,070 9,697
92,124 124,493
Share of support costs (see note 6) 190,975 198,101
Share of governance costs (see note 6) 9,076 11,213
292,175 333,807
Analysis by fund
Unrestricted funds 292,175 330,715
Restricted funds - 3,092
Support costs
Support
Governance		 2021Support costs Governance 2020
costs costs costs
£ £ £ £ £ £
Staff costs 94,298 - 94,298 98,509 - 98,509
Depreciation 26,710 - 26,710 26,223 - 26,223
Premises costs 50,322 - 50,322 52,978 - 52,978
Office administration
costs 8,195 - 8,195 9,082 - 9,082
Computer expenses 799 - 799 152 - 152
Cleaning, repairs and
renewals 1,368 - 1,368 4,415 - 4,415
Bank charges and
interest 9,283 - 9,283 6,418 - 6,418
Travel and
accommodation - - - 324 - 324
Independent examiners
fees - 3,180 3,180 - 3,180 3,180
Legal and professional - 5,896 5,896 - 8,033 8,033
190,975 9,076 200,051 198,101 11,213 209,314
Analysed between
Charitable activities 190,975 9,076 200,051 198,101 11,213 209,314

WREXHAM TENNIS CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

8 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
2021 2020
Number Number
11 15
Employment costs 2021 2020
£ £
Wages and salaries 115,014 119,956
Social security costs 1,670 2,996
Other pension costs 1,635 2,623
118,319 125,575

The key management personnel for the charity comprises of the trustees and general managers. Total salaries including employee benefits of the key management personnel were £25,000 (2020: £25,000).

Wages are recharged to subsidiaries for related work undertaken.

There were no employees whose annual remuneration was more than £60,000.

WREXHAM TENNIS CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

9 Tangible fixed assets

Tangible fixed assets
Leasehold
Plant and
Fixtures and
Computers		 Total
land and
equipment		 fittings
buildings
£ £ £ £ £
Cost
At 1 October 2020 576,392 7,815 4,253 6,967 595,427
Disposals - - - (4,418) (4,418)
At 30 September 2021 576,392 7,815 4,253 2,549 591,009
Depreciation and impairment
At 1 October 2020 276,668 3,582 1,062 4,851 286,163
Depreciation charged in the year 23,056 1,954 1,063 637 26,710
Eliminated in respect of disposals - - - (4,418) (4,418)
At 30 September 2021 299,724 5,536 2,125 1,070 308,455
Carrying amount
At 30 September 2021 276,668 2,279 2,128 1,479 282,554
At 30 September 2020 299,724 4,233 3,191 2,116 309,264

WREXHAM TENNIS CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

10 Fixed asset investments

Other
investments
Cost or valuation
At 1 October 2020 & 30 September 2021 2
Carrying amount
At 30 September 2021 2
At 30 September 2020 2
2021 2020
Other investments comprise: Notes £ £
Investments in subsidiaries 11 2 2
11 Subsidiaries
Details of the charity's subsidiaries at 30 September 2021 are as follows:
Name of undertaking Registered Nature of business Class of % Held
office shares held **Direct ** Indirect
Wrexham Tennis Centre Plas Coch Road
Production of electricity		 Ordinary 100.00
Energy Limited Wrexham LL11
2BW
Wrexham Tennis Centre Plas Coch Road Retail at Tennis Centre Ordinary 100.00
Retail Limited Wrexham LL11
2BW
12 Stocks
2021 2020
£ £
Stock 1,581 793

WREXHAM TENNIS CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

13 Debtors
2021 2020
Amounts falling due within one year: £ £
Trade debtors 5,981 1,434
Other debtors 33,925 60,378
Prepayments and accrued income 10,312 6,209
50,218 68,021
14 Creditors: amounts falling due within one year
2021 2020
Notes £ £
Borrowings 7,375 12,313
Other taxation and social security 845 1,277
Deferred income 16 4,000 7,013
Trade creditors 11,729 17,975
Other creditors 635 858
Accruals and deferred income 11,134 5,957
35,718 45,393
15 Creditors: amounts falling due after more than one year
2021 2020
£ £
Borrowings 1,667 -
16 Deferred income
2021 2020
£ £
Arising from Grants received and management
fees 4,000 7,013
Deferred income relates to site management fee in 2021. For 2020 the deferred income related to site
management fee, room hire, grants for women's and girls tennis sessions and tournament revenue.
Deferred income is included in the financial statements as follows:
2021 2020
£ £
Deferred income is included within:
Current liabilities 4,000 7,013
Movements in the year:

WREXHAM TENNIS CENTRE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021

16 Deferred income (Continued) (Continued)
Deferred income at 1 October 2020 7,013 7,092
Released from previous periods (3,013) (79)
Deferred income at 30 September 2021 4,000 7,013

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement
in funds
Balance at Resources Balance at Incoming Balance at
1 October 2019 expended 1 October 2020 resources 30 September
2021
£ £ £ £ £
Tennis Wales Player Support 3,092 (3,092) - - -

Tennis Wales Player Support funding is used to fund coach related expenditure.

18 Related party transactions

At the year end the total amount owed to Wrexham Tennis Centre Retail Limited, subsidiary, was £841 (2020: owed from Wrexham Tennis Centre Retail Limited £36,640).

At the year end the total amount owed from Wrexham Tennis Centre Energy Limited, subsidiary, was £28,025 (2020: £24,947).

Creditors include loans outstanding of £4,873 (2020: £12,313) owed to previous directors. The balance is expected to be fully repaid within the next 12 months.