REGISTERED COMPANY NUMBER: 08447331 (England and Wales) REGISTERED CHARITY NUMBER: 1154831 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 FOR TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE Mccabe Ford Williams Slalutory Auditors and Chartered Accountants Building 1063 Cornforth Drive Kent Science Park Sitlingbourne Kent ME9 8PX TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Page Report of the Trustees 1 10 15 Report ofthe Independent Auditors 16 to 19 statement of Flnanclal Actlvltles 20 Balance Sheet 21 Cash Flow Ststement 22 Notes to the Cash Flow Statement 23 Notes to the Flnanclal Ststements 24 10 43 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 The Trustees who are also Directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 31 March 2025. The Trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Finan¢ial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) (effective 1 January 2019). OBJECTIVES AND ACTIVITIES Objectives and aims The objects of the Charitable Company are: to provide or assist in the provision of both indoor and outdoor facilities in the interests of social welfare for recreation or other leisure time occupalion of individuals who have need of such by reason of their youth, age, infimiity or disability, financial hardship or social circumstances or for the public at large with the object of improving their conditions of life, and lor,. to promote community participation in healthy recreation a¢tivilies,' to provide or assist in the provision of community facilities to be available to all sections of the community without distinction, including use for meetings, lectures and classes andlor other forms of recreation and leisure time occupation with the object of improving the conditions of life for all those who use the facilities; to develop the capacity and skills for those members of the communily who are socially andlor economically disadvantaged in such a way as to enable them to idenlify, and help meet, their needs and to participate more fully in society, and lor,. to pursue such other charitable purposes consistent with the above as the Trustees in their absolute discretion shall detemine. Page1 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 OBJECTIVES AND ACTIVITIES Clear about its purpose and dlrectlon: The Trust has a Vision, Mission Statement and Values outlined in the current strategic Three-year Business Plan {April 2025 - March 2028}, Taking the national agenda of ukactive, the representative UK body and delivering that agenda locally the Trust's Vision of'more people, more active, more often, mirrors the objects and powers of the Trust. The Mission Statement develops the manner in which the Vision will be delivered by confirming 'Our mission is to provide a clean, safe and happy leisure experience on an inclusive basis to residents and visitors to Tonbridge and Malling for the benefit of their physical and mental health and wellbeing, We will achieve this in a sustainable way through excellence in our people, policies and practice., The Vision and Mission Statement is underpinned by nine core values,. Leadership Integrity Innovation Improvement Accessibility - Customer Focus - Teamwork Professionalism Environmental awareness The values are further defined in the Three-year Business Plan {2025-2028) endorsed by the Board of Trustees. During 2025 Ihe Vision, Mission and Core Values will be reviewed by a broad range of team members and Trustees to assess for Continuing relevance and to ensure they reftect the future focus of the Trust. - A strong board: Selection and recruitment of the Trust Board is planned and structured to ensure the appointment of a range of interested and committed volunteers who bring a range of professional disciplines and experience to the boardroom. The full Board currently comprises 8 Community Trustees with a blend of professional experience including financial, IT, legal, human resources and risk management. This is complemented by the appoinlment of two TMBC elected Member Trustees and a Staff Trustee. The Board promotes the aims and objectives of the Trust and provides strong, challenging support to the Executive Management Team. All of the Trustees are residents of the Borough with the exception of the current Staff Trustee. The main objectives during the year included the seamless transition from the outgoing Chief Executive to the incoming following a14-month handover period. A key focus for the Board has been the future plans for the Angel Leisure Centre redevelopment. The Trust was officially appointed in November 2024 as the operator of the new leisure centre upon completion. This appointment was the catalyst for the commencement of negotiations regarding the extension to the contract term for the whole portfolio managed by the Trust for TMBC and the initial and continuing financial arrangements associated with the Angel Leisure Centre project. There has also been an enhanced focus on the community aspect of the Trust supporting its charitable objectives with additional staffing resources appointed to aid further expansion of oulreach delivery and launch of the Talented Athlete Scheme. Page 2 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 OBJECTIVES AND ACTIVITIES Financially sound and prudent: Suslainability is a key Business Plan objective of the Trust. Following the depletion of the Trust's reserves during the global pandemic the reseNes have recovered to an encouraging level largely aided by the supportive relationship wilh TMBC and the creative yet prudent approach to management and operations by the Trust. The Core servi￿ fee from TMBC to the Trust remained at zero, The continuing uncertainty regarding global events impacting energy prices meant that the tariff protection Glauses within the Management Agreement were further suspended in favour of a Utilities Service Fee of £134,400. The Board had carried out a detailed review of the reserves policy with consideration given to potential capital investment and long term sustainability. -Fit for purpose: Following the retirement of the Trusvs inaugural Chief Executive the post of Deputy Chief Executive was removed when its incumbent took over the role of Chief Executive in September 2024. Other changes during the year, included the introduction of a Business Development Manager to lead the enhanced commercial focus of the Trust helping support long tem financial sustainability. The Executive Management Team {EMT) led by the Chief Executive now comprises the Chief Financial Officer, the Chief Operating Officer, Head of Facilities and Compliance, Head of Marketing, Media and Communications, Head of People and Culture and the Business Development Manager. Operation of the Trust is assured through an existing but evolving suite of policies and procedures contained in an Integrated Management System. Roles and responsibilities in temis of govemance and executive management are based upon guidance from the Association of Chief Executives of Voluntary Organisations (ACEVO). Key policies affecling health and safety and employment issues are also subject to Board approval. Overall achievement of the objectives of the Trust is managed through the Business Plan and the Annual Service Delivery Plan which is reviewed on a quarterly basis and reported to TMBC. Learning and improving. The Trust is committed to being fully engaged in the sector in which it operales by contributing on a local level to a national agenda. This is aided by the Trust being an aclive member of Community Leisure UK (CLUK), the principal representative organisation for the sector with general and regional meetings. The Executive Management Team has reviewed the engagement with CIMSPA, the Chartered Institute representing the leisure industry, to help promote membership to the wider team and actively engage wilh the learning and development opportunities across the whole establishment. This partnership will continue to develop over the forthcoming year and to ensure the offer that is suitable for all. The Trust conlinues to challenge its management and delivery and currently remains committed to benchmark this through Quesl, the national quality scheme for sport and leisure to ensure industry best practice. The Trust has reported financial and usage information to the Moving Communities platfom. The Trust has a training plan to ensure the continuing professional development of staff al all levels of the seNice. Training is delivered through an online platform with records uploaded to the workforce management software to analyse and track completion. Page 3 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 OBJECTIVES AND ACTIVITIES . Accountable and transparent The work of the Trust sits entirely in the public domain and the Trust utilises its Customer Charter, meetings with key users, surveys, mystery visits and feedback mechanisms to encourage transparently and develop improvement action plans when required. As a key stakeholder the Trust reports to senior officers at TMBC on a formal recorded basis against the approved Annual Service Delivery Plan and comprehensive Quartedy Update Reports. A monthly strategic meeting is held to discuss financial and operational issues related to the ongoing performance, development and sustainability of the Trust. A separate contracuservice fee meeting with TMBC was introduced in 2024125 to ensure focus and momentum on these specific time sensitive issues. Soclal investments The Trust recognises the importance of investing resources in activities and service that enhances social impact and improves the lives of the local community. During 2024125 the community programme brand changed from 'tmactive 150, to 'Active Communities, emphasising the Trusvs objective and vision. Additional team members were recruited to support delivery and expansion of Ihe program across the Borough. The launch of this rebrand coincided with the Talented Athlete Scheme launch thal supports sports men and woman from the borough achieve their sporting potential and serve as inspiration to others. The Trust selected Porchlight as their chosen charity to help raise funds wilh over £14,000 being raised by activities attended by staff and customers including, charity golf day, family fun day, CEO Sleep Out and New Year outdoor swim. Fundralslng The Trustees are responsible for ensuring the charity operates within a responsible, sustainable financial framework and that it has adequate resources to carry out ils role in engaging with residents in the local community. While the Trustees may delegate many of the operations of fundraising to other parts of the organisation, they retain the responsibility for inspiring olher fundraisers, demonstrating the perceived importance of fundraising to the organisation, and demonslrating their leadership in this area. In Carrying out fundraising, the charity adheres to the following standards.. The Trustees will have regard to the Charity Commission's publication 'Charity Fundraising, {CC20}. Fundraising activities carried out by the Charity will comply with all relevant laws. Any communicalions to the public made in the course of carrying out a fundraising activity shall be truthful and non-deceptive. All monies raised via fundraising activities will be for the stated purpose of the appeal and will comply with the charity's stated mission and purpose. The charity will comply with GDPR Legislation in relation to all personal data collected. Nobody directly or indirectly employed by or volunteering for the charity shall accept commissions, bonuses or payments for fundraising activities. No general solicitations shall be undertaken by telephone or door-to-door. Fundraising activilies should not be undertaken if they may be detrimental to the good name or community standing of the charity, All Trustees, pemianent, casual and contract staff and volunteers are responsible for adhering to these procedures. Fundraising activilies should not be undertaken if they will expose the charity to significant financial risk. Complaints will be dealt with in accordance with the Charity Commissions guide CC20, Page 4 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Achievements and performance Charitable Activities The Trust's Head Office is at 1-5 Martin Square, Larkfield, Kent, ME20 6QL. The Offices are leased by TMBC to the Trust. The Twst conducts business and generates income from the following locations.. -Larkfield Leisure Cenlre -Angel Leisure Centre, including Sports Pitches and AWPA at The Farm Sports Ground. -Tonbridge Swimming Pool and Racecourse Sports Ground -Poult Wood Golf Course -Leybourne Lakes Country Park -Kings Hill Sports Park In 2023124, in line with the new Two-year Business Plan (2023-20251 negotiations recommenced for the Service fee to cover the next four-year period to 31 March 2028. This resulted in further agreement for the servi￿ Fee, now designated as the Core Service Fee, to remain at zero until 31st March 2028. The budget for 2024125 forecast a surplus of £139,250, After the budget was sel an agreement was reached with TMBC for the Trust to assist with customer car parking arrangements at the Angel Leisure Centre and Tonbridge Swimming Pool. The budget also assumed payment from TMBC of £410,000 as a Utility Service Fee in lieu of the continued waiver of the tariff protection agreement. Due to the softening of the gas and electricity prices over the year the utility Se￿ice fee was reduced to £134,400. The financial performance was exceptional throughout the year with the actual end of year surplus being £789,878. This surplus over budget arose from outperfomiing income reflecting continuing service to customers and a strong control over expenditure. Key areas of the business that perfomied particularly well include health and filness1+70/0), catering {+45 % }, golf memberships (+190/0), driving range income (+33'/0), Kings Hill 3G hire (+7/0) and Prima dance (+16%). It is encouraging that a broad range of activities across the portfolio are contributing to the positive financial position. The key priorities identified within the Two-year Business Plan are used to highlighl areas of progress. The Annual SeNice Delivery Plan was used to drive specific objectives, and the Balanced Scorecard was revised and continued to be used to measure idenlified KPIS and provide a view of the overall health of the business in terms of financial, operational, customer and staff perspectives. PARTICIPATION Around 1.4m customer visits were recorded in 2024125 representing an increase of 40/0 against the previous year and 14,/0 higher than pre-covid. Health and fitness attendance increased by 50/0 With memberships increasing by 8 % from the previous year. Following the surge in Swim School enrolments post pandemic the growth conlinued with a 3,/0 increase from the previous year and still represents a significant achievement with 3575 Ghildren enrolled in the school. Casual swimming experienced a challenging year due to unpredictable weather. Poult Wood Golf Course also experienced challenging weather conditions early in the year yet there was still a 17% increase in rounds of golf played compared to 2023124, Page 5 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 AWARENESS- The Trust continued to maintain awareness of the profile of the brand increasingly through social media. The Trust continued to promote its charitable ethos to customers through the website and social channels to raise awareness of the reinvestment of funds using marketing material from Community Leisure UK. New large 'Seriously Social, boards were introduced at sites to raise awareness of the contribution by the Trust to the local community. HEALTHY LIFESTYLES - The previous tmactive150 health and wellbeing brand was reinvigorated in 2024125 and relaunched as 'Active Communities,, This represents the enhanced focus of this aspect of the Trust's business wilh the programme continuing to grow. Participation increased by 30% with additional outreach locations added to the programme to increase accessibility to activities. The Talented Athlete Scheme was launched with 16 young sports men and woman now supported during 2024125 by the Trust to assist with achieving their sporting gaols and act as tmactive ambassadors within the community. CUSTOMER SATISFACTION - The primary feedback mechanisms used in 2024125 were mystery visits undertaken by industry professionals, Pro-lnsight and the Net Promoter Score. Each of the four main sites were subject to a mystery visit each quarter and the average score throughout the year was an impressive 85010 representing an improvement of 2 % from 2023124. The visits are utilised to highlight further improvements in customer service. The Net Promoter Score is derived from automated customer surveys asking the likelihood of the customer recommending the facility to friends and family on a scale of 0-10, with only scores of 9 and 10 rated as promoters and scores of 0-6 regarded as detractors. This measure showed the Trust score as 55 /• against a national industry average The Trust continued to use Google review scores. Across all sites the Trust Google Review score averaged 4.33 out of a maximum of 5, The Trust also continued to undertake a range of targeted customer surveys for Swim School, group exercise and catering to help shape future planning and investment and Servi￿ delivery. The internal inspections inilially completed by the Deputy CEO continued to be completed by the Chief Operating Officer. These visits provide an internal assessment of facility operation and presentation and help identify areas for improvement. SOCIAL INCLUSION The Trust has continued to deliver concessionary use to Leisure Pass holders. Concessionary prices continue to be extended to people on low income, senior citizens, studenls, juniors and people living with disabilities. The Active Communities programme continued to promote low cost as well as free a¢￿sS to individuals and families experiencing financial difficulties. CHARITABLE - The Trust continued to support charitable causes within the community with over £14,000 being raised for ils current nominated charity, Porchlight. Just under £3000 was also donated in the form of vouchers for activity use to othergood causes to help them raise funds. ENVIRONMENTAL In line with TMBC'S ambition to be carbon net zero by 2030 they have, with support from the Trust, progressed several environmental initiatives aimed at reducing carbon emissions and improving energy efficiency. Solar panels instslled at Tonbridge Swimming Pool and Larkfield Leisure Centre generated a combined 134 Mwh for the year, accounting for 7Q/o and 50/0 of each site's electricity usage respectively, and delivering total savings of £26,000. An additional 278 panels were installed at LLC in early 2025, funded through the Sport England Swimming Pool Support Fund Phase 2. TMBC also secured PSDS Wave 3c funding for the installation of air source heat pumps at Larkfield Leisure Centr& to replace aging boilers providing air and water heating to the fitness pool. Installation started in March 2025 with completion due in early 2026, Page 6 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 The Trust has established a carbon footprint monitoring platfom, recording a baseline of 2,175 tonnes of carbon dioxide equivalent for the year ending 31 March 2025. The Leybourne Lakes Country Park utility vehicle has transitioned from diesel to biodiesel. QUALITY The Trust continued to commit lo Quest, the national quality scheme for sport and leisure. The three main indoor leisure sites underwent Quest assessments during the year with scores ranging from good to excellent. The Health & Safety Committee chaired by the Chief Executive, with attendees representing all sites, met quarterly. Extemal expert support also attended these meetings to advise on legislative changes and provide industry updates. The Trust re-committed to the industry accredited LeisureSafeTM standard. Three sites were assessed in 2024125 with impressive scores being achieved ranging from 77 % - 90 % . The remaining three siles will be assessed in 2025126. STAFF Staff turnover of contracted staff showed a 9./0 decrease from the previous year. Following the increase in April 2024 of the National Living Wage by 9,8'/o the further increase in April 2025 of 6. %, coupled with the increased employer National Insurance {Nl) conlributions and the lowering of the Nl threshold from whi¢h employer Nl is paid, has provided additional financial challenges which have also increased the ongoing establishment baseline costs, A range of Human Resource policies and procedures were approved by the Board throughout the year. All policies and procedures are issued to staff via the UKG App with regular updates communicated. Page 7 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Achlevements and performance Publlc benefit The Trustees confirm they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission's general guidan￿ on public benefit, The Trustees have referred to the Charity Commission's general guidance on public benefit when reviewing the aims and objectives and in planning future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set. The Trust has been operating for twelve years and can clearly demonstrate success against 'The Hallmarks of an Effective Charity, outlined in the Charity Commission guidance. -Equality and Diverslty: The Trusfs Equality and Diversity Policy and Procedure cornmits to providing a workplace free from discrimination, harassment, and victimisation, ensuring fair treatment and equal opportunities for all. The policy defines equality and diversity, outlining responsibilities for managers, employees, and leadership to foster dignity, respect, and full participation. The policy applies to all employment stages and Servi￿ delivery, promoting diverse recruitment, accessibility, reasonable adjustments, and the removal of barriers for underrepresented groups. It includes clear commitments to address and challenge discrimination across all protected characteristics, ensure equitable access to employment, training, development, and pay, and provide mechanisms for grievances and complaints. Regular monitoring and review underpin its aim to value individual differences, promote faimess, and maximise the potential and contributions of all staff. Key performance indicators The Trust's key Performan￿ indicators for 2025 compared to the previous year were,. 2025 £11.2m £10.4m 2024 £11.1m £10.5m Total Income Total Expenditure Wages as a Q/0 of turnover Health & Fitness Membership Swim & Spa Membership Swim School Membership 5,447 1,686 3,575 5,199 1,598 3,470 Financial revlew Financial positlon The Board approved a budget surplus of £139,250. The actual year end surplus was £789,878 which represents a significant outperfomiance, Total income rose to £11,2m. The total cost of electricity and gas in 2024125 fell from £1.53m in 2023124 to £1.18m due to softening of prices which resulted in a reduction in the Utilities Service Fee. Totsl expenditure reduced from the prior year of £10.5m to £10.4m. Despite increased staffing overall expenditure reduced. Page 8 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Financial review Reserves policy The 2023124 financial year saw a fundamental change to the Trusvs reserves policy, where instead of an identified minimum net asset position, specific individual reseNes were identified and funds allocated to each. The level of required reserves is reviewed annually and for 2024125 the overall reserve continues to incorporate these four specific areas,. O erational This identifies the level of working capital to cover seasonal fluctuations and anticipated strain on cash llow during the financial year. Risks To include geographical events including cost of living challenges, future pandemics and increased local compelition. Develo ment Plans A range of capital development projects have been identified to improve the customer experience and have a positive impact on revenue, It is acknowledged that whist a significant contribution will be made to the Angel Leisure Centre development it is irnperative that investment continues across the whole portfolio. Contin enc Funds for unexpected events that may not be foreseen such as sudden full or partial closure of facilities or unexpected increase in costs not covered within the annual budget. The 2023124 financial year largeted an overall reserve position of £1.7million. The review process for 2024125, due to a combination of the Trust's increased scale and the identification of further developmental projects, has meant a change to the targeted overall reseNe to £1.885 million. Total Funds Total funds held at 31 March 2025 were £2,512,160 {2024: £1,740,282} of which £53,641 {2024.' £64,016) were restricted. The Board has designated funds as detailed below: General Fund The Trust has established a General Fund, which provides a level of security and sustainability reflective of the overall size of the organisation. Net current assets at 31 March 2025 were £1,581,516 (2024.. £828,179). Currently the Trust holds £2,314,98412024'. £1,529,162} of undesignated reserves within Ihe General Fund before accounting for the pension assevliability which is currently £nil. IT Replacement Fund In 2016117 the Trust reached agreement with TMBC to asset transfer the IT hardware for the rest of the conlract period, This decision was approved by the Board and a lump sum of £200,000 was paid lo the Trust. New IT hardware has been purchased, and the balance is placed in a designated reserve to allow future replacement which currently stands at £122,358 (2024.. £125,927), Page 9 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Financlal revlew Telephone Replacement Fund In 2021122 the Trust reached agreement with TMBC to asset Iransfer the telephony hardware for the rest of the contract period. The decision was approved by the Board and a lump sum of £35,300 was paid to the Trust. During the year there was no expenditure . The reseNe currently holds £21,177 (2024.. £21,177). FRS102 Penslon Fund Total unrestricted funds before accounting for the pension surplus held at the 31 March 2025 were £2,458,519 (2024 £1,676,266). A pension surplus of £nil {2024: £nil) has been included in the Financial Statements to comply with the provisions of FRS 102. After accounting for the pension position, total funds including restricted funds amount to a surplus balance of£2,512,160 (2024.'£1,740,282). Restricted Funds Total restricted funds held at 31 March 2025 were £53,641 (2024 £64,016). Investment Pollcy There are no investments held beyond cash deposits retained with the major UK clearing banks. Risk management The Trustees have a duty to identify and review the risks to which the char¢ty is exposed and to ensure appropriate controls are in pla￿. The Board has approved a series of detailed risk statements which form Ihe Trust's Corporate Risk Register. Each of the identified risks is rated based upon likelihood and severity and prioritised. Risk Managers are identified. The Register includes corporate risk, business continuity risks and high-level operational risks. An individual Trustee was appointed as the Board Risk Champion and helped guide and develop the original register which is now reviewed annually or more frequently by exception. The Corporate Risk Register is arranged under a range of key headings., Charitable Status - changes to or failure to comply with charitable legislation and objectives Company Legislation - changes to or failure to comply with company legislation Relationship with Council - failure to secure contract extension past 2033 andlor change in local authority policy Health & Safely Legislation changes in legislation andlor serious breach of legislative requirements Data Protection & IT Security - breach of data protection legislation andlor cyber attack Environmental Issues I Climate Change - breach or change in legislation andlor long term adverse environmental conditions especially on outdoor facilities Business Continuity - loss or failure of key suppliers including IT systems providers and severe recruitment difficulties Financial Sustainability - general inflation including utilities costs andlor withdrawal of local authority funding support through changes to the ManagementAgreement Service Disruption - major plant or equipment failure, fire, flood or pandemic FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS Neither the charitable company nor any of its Trustees held any funds as custodian Trustee. Page10 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRATEGIC REPORT Plans for future periods The Trust's Three-year Business Plan covering the period 1 April 2025 to 31 March 2028 has been approved by the Board and shared with TMBC. The three-year plan completes the 5-year period 2023-2028. Previously five-year plans had been produced but following the challenges of recovery from COVID it was deemed that a 2-year plan during the business recovery period followed by a Ihree-year plan would be more appropriate. The new three-year plan focuses on a period of transfomiation to prepare the Trust for the opportunities and challenges ahead. To support the continued positive financial perfomance there will be an enhanced focus on commerciality. The Trust is also committed to community engagement ensuring that services and programmes are appropriate for a broad range of the community. The Trust is excited to further develop the 'A¢tive Communities, programme that offers facility based and out in the community services, delivering a varied programme accessible to all, including those within specific needs or hard to reach groups. The Trust is committed to breaking down barriers to participation. These two core themes are'gupported by five core priorities,. contract and financial stability, efficiency and effectiveness, environment, Gustomer joumey and community engagement. A further review of capital development options has been presented to the Board and investment projects in 2025 - 26 include wet changing rooms at Larkfield Leisure Centre, course signage improvements at Poult Wood Golf Course, development of the reception area at Larkfield Leisure Centre with introduction of cashless operations, additional inclusive gym equipment at the Angel Leisure Centre and drowning detection technology at Larkfield Leisure Centre and Tonbridge Swimming Pool. The board has also agreed a significant contribution to the new Angel Leisure Centre development. The Trust's main focus continues to be its current portfolio of facilities , with TMBC and Kings Hill Parish Council, however serious consideration will be given to potential new facility management contracts that appropriately meet the Trust's objectives and do not detract from these. The Trust has entered a period of transformation to ensure that it is fit for the future and able to react positively to challenges. Through the Trusts managerial expertise and successful initial 12 years of management of leisure facilities the Trust has demonstrated its capability to embrace opportunities utilising the knowledge and experience of the management team, STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng document The charitable company, a company limited by guarantee, was established under a Memorandum of Association which formed the objects and powers of the charitable company and is governed under its Articles of Associalion. Recruitment and appolntment of new Trustees The current Board consists of11 Trustees of which 8 are Community Truslees. Recruitment of Community Trustees is subject to general advertisement and approval of the Board in accordance with the Articles of Association. Recruitment will highlight relevant skills and experience that are deemed appropriate to complement the existing profile of Trustees. New Community Trustees will be required to live andlor work within the Borough to ensure truly local interest and representation. The appointment of the Staff Trustee will be at the approval of the Board and through a transparent process that allows consideration of any pemianently Contracted employee of the Trust whether full or part time. Page11 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Organisatlonal structure In addition to the 8 Community Trustees and the Staff Trustee, the Leader of Tonbridge & Malling Borough Council nominates two Members to the Board making up the full complement of11, At 31 March 2025 there were no vacancies on the Board. According to the Articles of Associalion three Trustees retired by rotation at the Annual General Meeting held in December 2024. All Ihree relirees, Vidhya Ratnam, Duncan Scott and Mark Davis, were unanimously re-elected. The Chair, Alan Nicholl was re-elected unopposed, and Simon White was re-elected unopposed to the role of Vice Chair. Following the year end one Trustee, Duncan Scott, resigned. This means there is Currently one vacancy. The Trustees will ca￿fUllY consider an appoinlment to ensure the Trust has the required range of skills to support the transformation of the Trust. Board Meetlngs The Board had 4 scheduled General Meetings in 2024125. The Annual General Meeting was held in December 2024. The Board received detailed quarterly updates at Board meetings in respect of the financial position, strategic and key operational matters, staff and customer related issues. One EGM was held to approve the audited Financial Statements for the year ended 31 March 2024 together with the Report of the Trustees, Induction and tralnlng of new Trustees Induction of new Trustees is undertaken using the original Induction Pack prepared by WS Law that outlines the duties and responsibililies of a Director and Trustee. WS Law continue to be retained by the Trust and can deliver the training directly if felt appropriate. The Chair and the Chief Executive will provide a comprehensive introduction to the facilities, background to the Trust, business, operational and financial plans. In addition, the Chair and the Chief Executive will provide a detailed oveNiew of the suite of documents that form the agreement between the Trust and Tonbridge & Malling Borough Council, Remuneration of Key Management Personnel In 2024125 an approved cost of living award of 40/0 was made to all key rnembers of the Executive Management Team, The Board considers the recommendation of the Chief Executive annually in the context of Ihe overall draft budget. Factors taken into account include the increase to the national minimum wage and its consequenlial impact of the Trust's salary scales and the pay differential between team members affordability, local competitors, and the Community Leisure UK Annual HR report which benchmarks rates of pay across all roles within the sector. Page12 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Engagement with employees Staff notice boards displaying urgent matters and points of interest along wilh insurance certificates for public and employee liability are maintained in each of the staff rooms across all sites. The implementation of the UKG workforce management system has allowed for greater engagement. All policies are available on the plattorm along with the staff handbook. The system also allows slaff to request shift changes and annual leave as well as providing the platform for automated timesheets and clocking in. Biannial Line Manager meetings are held, everyone in a supervisory role is asked to attend along with the CEO and COO. Financial and operating performance are relayed with the intention of this being passed on to all employees. There is opportunity for the discussion of key issues with senior management requesting suggestions and questions. The Trustees receive staff related information at each Board Meeling and are responsible for approving pay reviews, any potential restructures, and all HR policy documents. There is a staff Trustee elected by their colleagues, who is equal in status to other Board Members. A number of the current Trustees are regular users of the Trusl's facilities and thereby have informal direct access to slaff members outside of senior management. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 08447331 (England and Wales) Reglstered Charity number 1154831 Reglstered office 1-5 Martin Square Larkfield AYLESFORD Kent ME20 6QL Trustees A C Nicholl S King (resigned 20.4.24) M Davis K Bennett D Scott (resigned 10,6.25) T Bishop S White P Philbey S Ratnam K S Tunstall A P Burdon (appointed 3.6.24} J F Buttery (appointed 3.6,24) Page13 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 REFERENCE AND ADMINISTRATIVE DETAILS Company Secretary D Sayle Audltors Mccabe Ford Williams Statutory Auditors and Chartered Accounlants Building1063 Cornforth Drive Kent Science Park Sittingboume Kent ME9 8PX Sollcitors Winckworth Sherwood Minerva House 5 Montague Close London SE19BB Bankers National Westminster Bank PLC Chatham Cuslomer Service Centre Western Avenue Waterside Court Chalham Maritime Chatham Kent ME4 4RT Company tradlng name tmactive Executive management team Members of the team for the whole financial period, unless otherwise stated were,. M Guyton - Chief Executive {retired 31 st August 2024) E Wood - Chief Executive {1 st September 2024. Deputy Chief Executive1 April 2024 - 31 st August 2024) D Sayle - Chief Financial Officer K Brimsted - Chief Operating Offi￿r W Parker- Head of Media, Marketing and Communications l Mansfield - Head of Facilities and Compliance C Bushell - Head of People and Culture Page14 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees {who are also the Directors of Tonbridge and Malling Leisure Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial slatements in accordan￿ with applicable law and United Kingdom Accounting Standards (United Kingdom Generally AC￿pted Accounting Practice) including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law requires the Trustees to prepare financial slatements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to select suitable accounting policies and then apply them consistently. obsenie the methods and principles in the Charity SORP., make judgements and estimates that are reasonable and prudent., 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 which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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, In so far as the Trustees are aware: there is no relevant audit informalion of which the Charitable company's auditors are unaware., and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that infomiation. Report of the trustee direclors, on incorporating a strategic report, approved by order of the board of trustees, as the company A C Nicholl - Trustee Page 15 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TONBRIDGE AND MALLING LEISURE TRUST Opinion We have audited the financial statements of Tonbridge and Malling Leisure Trust (the 'charitable companl) for the year ended 31 March 2025 which comprise the Statement of Financial Activilies, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,. In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 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 Accepled Accounting Practi￿, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance wilh International Standards on Audiling {UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordan￿ 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 lo provide a basis for our opinion. Conclusions relating to golng concem In auditing the financial statements, we have concluded Ihat the trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate, Based on the work we have performed, we have not identified any material ￿n￿rtaIntIeS relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibililies of the trustees with respect to going concern are described in the relevant sections of this report. Other informatlon 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 Report of the Independent Auditors thereon. Our opinion on the financial slatements 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 statemenls, our responsibility is to read the other information and, in doing so, consider whether the other infomation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misslated. If we identify such material inconsistencies or apparent material misstatements, we are required to dete￿Ine whether this gives rise to a material misstatement in the financial statemenls themselves. If, based on the work we have performed, we conclude that there is a material misstalement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements,, and the Report of the Twstees has been prepared in accordan￿ with applicable legal requirements. Page 16 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TONBRIDGE AND MALLING LEISURE TRUST Matters on whlch we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. 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 slalements are not in agreement with the accounting records and returns,, or certain disclosu￿S of trustees, remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit. Responslbillties of trustees As explained more fully in the Stalement of Trustees, Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing Ihe financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as appli¢able, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic altemative but to do so. Page 17 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TONBRIDGE AND MALLING LEISURE TRUST Our responsibilities for the audlt 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordan￿ 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 Influen￿ the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Irregularities, including fraud, are inStan￿S 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.. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team colleclively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations,. we identified the laws and regulations applicable to the company through discussions with directors and our experience of the sector,. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Charitable Company, including, but not limited to, the Companies Act 2006, UK tsx legislation,. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management,. and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the Charitable Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud,. considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. perfomied analytical protsdures to idenlify any unusual or unexpected relationships. tested journal entries to identify unusual transactions,. reviewed management conlracts where contract variations had arisen. assessed whether judgements and assumptions made in detemiining the accounting estimates set out in note 1 were indicative of potential bias., and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularilies and non-compliance with laws and regulations, we designed procedures, which included, but were not limited to: agreeing financial statement disclosures to underlying supporting documentation,. reading the minutes of meetings of those charged with governance., enquiring of management as to actual and potential litigation and claims. and reviewing correspondence with HMRC and the relevant regulator. Page 18 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TONBRIDGE AND MALLING LEISURE TRUST There are inherent limitalions in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Committee of Management and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc,org.uklauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report This report is made solely to Ihe charitable company's members, 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 charitable company's members those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audil work, for this report, orfor the opinions we have formed. Clai Rayner FCA DChA (Senior Statutory Auditor) for and on behalf of Mccabe Ford Williams Statutory Auditors and Chartered Accountants Building 1063 Cornforth Drive Kent Science Park Sittingbourne Kent ME9 8PX Date.. Page 19 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 31.3,25 Total funds 31.3.24 Total funds Unrestricted funds FRS102 Pension Restricted funds Notes INCOME AND ENDOWMENTS FROM Charitable activities Operation of leisurelgolf centreslcountry park 11,140,104 17,422) 11,132,682 11,056,033 Investment income 73,544 73,544 50,657 Total 11,213,648 17,422) 11,206,226 11,106,690 EXPENDITURE ON Charitable activities Operation of leisurelgolf centreslcountry park 10,431,395 {18,000) 2,953 10,416,348 10,547,665 NET INCOMEI(EXPENDITURE) Other recognlsed gainsl{losses) Actuarial gainsl{lossesJ on defined benefit schemes 782,253 18,000 (10,375) 789,878 559,025 (18,000) (18,000) (62,0001 Net movement In funds 782,253 (10,375) 771,878 497,025 RECONCILIATION OF FUNDS Total funds brought fotward 1,676,266 64,016 1,740,282 1,243,257 TOTAL FUNDS CARRIED FORWARD 2,458,519 53,641 2,512,160 1,740,282 The notes form part of these financial statements Page 20 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE REGISTERED NUMBER: 08447331 BALANCE SHEET 31 MARCH 2025 31.3.25 Total funds 31.3,24 Total funds Unrestricted funds FRS102 Pension Restricted funds Notes FIXED ASSETS Tangible assets 10 877,003 53,641 930,644 912,103 CURRENT ASSETS Stocks Debtors Investments Cash at bank and in hand 11 12 13 118,762 398,515 1,077,707 1,604,898 118,762 398,515 1,077,707 1,604,898 116,190 403,459 962,442 857,226 3,199,882 3,199,882 2,339,317 CREDITORS Amounts falling due within one year 14 (1,618,366) (1,618,366) (1,511,138) NET CURRENT ASSETS 1,581,516 1,581,516 828,179 TOTAL ASSETS LESS CURRENT LIABILITIES 2,458,519 53,641 2,512,160 1,740,282 NET ASSETS 2,458,519 53,641 2,512,160 1,740,282 FUNDS Unrestricted funds Restricted funds 16 2,458,519 53,641 1,676,266 64,016 TOTAL FUNDS 2,512,160 1,740,282 he fina cial statements were approved by the Board of Trustees and authorised for issue on and were signed on its behalf by,. A C Nicholl - Trustee The notes form part of these financial statements Page 21 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 31.3.25 31.3.24 Notes Cash flows from operating activities Cash generated from operations 934,343 609,469 Net cash provided by operating activities 934,343 609,469 Cash flows from investing activities Purchase of tangible fixed assets Deposit account investment movement Interest received (144,950) (115,265) 73,544 (155,177) 1709,659} 50,657 Net cash used in invesling activities (186,671 } (814,179) Change in cash and cash equivalents in the reporting perlod Cash and cash equivalents at the beginning of the reportlng period 747,672 {204,710) 857,226 1,061,936 Cash and cash equlvalents at the end of the reporting perlod 1,604,898 857,226 The notes fomi part of these financial statements Page 22 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 31.3.25 31.3.24 Net Income for the reporting period (as per the Statement of Financial Actlvities) Adjustments for: Depreciation charges Interest received Increase in stocks DeGreasel(increase) in debtors Increase in creditors Difference between pension charge and cash contributions 789,878 559,025 126,409 (73,544) (2,572) 4,944 107,228 (18,000) 106,425 (50,657) {17,952) (132,185) 157,813 113,000) Net cash provided by operations 934,343 609,469 ANALYSIS OF CHANGES IN NET FUNDS At1.4.24 Cash flow At 31.3.25 Net cash Cash at bank and in hand 857,226 747,672 1,604,898 857,226 747,672 1,604,898 Llquid resources Oeposils included in cash Current asset investments 962,442 115,265 1,077,707 962,442 115,265 1,077,707 Total 1,819,668 862,937 2,682,605 The notes form part of these financial statements Page 23 TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES Basis of preparing the financial statements Tonbridge and Malling Leisure Trust is a private Gompany limited by guarantee, registered in England and Wales. The company is also a Charlty registered in England and Wales. The company number, charity number and registered office can be found on the company infomiation page. The preserstation currency is GBP and numbers are not rounded within the financial statements, The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charilies SORP (FRS 102) 'Accounting and Reporting by Charities.. Statement of Recommended practi￿ 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),, Financial Reporting Slandard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. Critical accountlng judgements and key sources of estimation uncertalnty In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from the estimates. The estimales and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting eslimates are recognised in the period in which Ihe estimate is revised if the revision affecls only that period, or in the period of the revision and future periods if the revision affecls both current and future periods. Management consider the key sources of estimalion uncertainty. depreciation and amortisation charges for assets included in the Statement of Financial Position based on the estimated useful economic life of the assets and deferred and accrued income is recorded over the period for which the memberships relate. In addition to the above, the present value of the Local Government Pension Scheme defined benefit asset I liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions, The assumplions used in determining Ihe net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 17, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation perfomied at 31 March 2022 has been used by the actuary in valuing the pension position at 31 March 2025. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carying amount of the pension asset I liability. Going concern Although the economic turbulence caused by nalional and intemational events since the beginning of 2020 has stabilized, the threat of global geopolitical issues reoccurring in the future remains a risk. Despite these continuing uncertainties, membership levels and public attendance at the Trust's facilities continue to exceed pre-pandemic levels. The comfort created by this level of popularity, coupled with the combination of miligating factors available to Ihe Trust and detailed below means that the Charitable Company remains in a strong position to cope with any resultant adverse impacts, if and when they arise. The Trust's recent trading performance has created a slrong reserve position in terms of liquid funds in the form of current accounts and fixed term, interest beartng deposits. Page 24 continued.., TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES- ¢ontinued Golng concern Despite rising staffing costs in the form of increased employels national insurance and national minimum wage rates that came into effect in April 2025, the Trust is again forecasting a surplus budget for the 25126 financial year. This detailed budgeting for the year ended 31st March 2026 and the cashflow forecast for a further year suggests that the Trusvs financial position will Continue to remain al a robust level. The utility tariff protection agreement with TMBC, by which the Charitable Company is protected against increases above inflation in the price of gas and electricity remains in place, In respect of the lariff protection agreement, the Charitable Company have successfully negotiated an amendment by which a setvice fee arrangement provides for quarterly interim payments made to the Charitable Company by TMBC which, therefore, protects cash flow throughout the year. The defined benefit pension protection agreement with TMBC negates the Trusl's exposure to rises in employer contribution rates for all staff that transferred to the Trust at the point of inception. The staff that fall into this category represent the majority of employees who are members of the local govemment defined benefit scheme, The Executive Management Team continue to work with TMBC via regular strategic level meetings on a financially transparent basis to ensure the sustainable future of the Charitable Company. Arrangements have been made for investment by TMBC in energy savings schemes at operational sites, some of which are already in place with others planned for future implementation. This is with the view of reducing energy costs but is in line with the Council's stated policy target of becoming net zero by 2030. It is considered that the demography of the Charitable Company's customer base will continue to protect the Trust should any deterioration in the cost of living arise. However, the Board will continue to monitor the position and support targeted offers with the aim of minimising any reduction in customer levels. As a resull of the strong reserves position and the mitigating actions detailed above the Board believes that no material Un￿rtaintY exists that the charitable Company will remain able to meet its financial obligations as they fall due for the foreseeable future and it has therefore prepared the financial slaternents on a going concern basis. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the arnount can be measured reliably. Government grants Government grants are recognised when it is reasonably certain that the conditions attached to the grant are met. Income from grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. Page 25 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES. continued Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expendilure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category, Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Redundancy I termination payments Redundancy costs are recognised in the statement of financial activities in the financial period the entity is demonstrably committed to teminate employment or make payment due to an offer made to encourage redundancy. Allocatlon and apportionment of costs Charitable activities are those costs incurred directly in the running of each of the recreation and leisure siles. Charitable activities are split into leisure activities, which are Ihose costs incurred directly in the running of each of the sites, and support costs which are those costs inGurred directly in support of expenditure on the objects of the charitable company, Governance costs are those incurred in the governance of the charitable company and its assets and are primarily associated with constitutional and statutory requirements. Tangible fixed assets Fixed assets costing in excess of £2,000 are shown in the financial statements at cost including irrecoverable VAT in respect of these assets. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Office equipment - straight line over 5 to10 years Plant and machinery- straight line between 3 to10 years Improvements to leasehold property - SL over remaining tem of lease (3111012033) Stocks Stocks are valued at the lower of cost and net realisable value, on a first-in-first-out basis, after making due allowance for obsolete and slow moving items. Taxation The charitable company is exempt from corporalion tax on its charitable activities. Fund accountlng Unrestricled funds are incoming resources receivable or generated for the objects of the charitable company without further specified purpose and are available as general funds or designated funds, which are set aside by the trustees for a specific purpose. Restricted funds are to be used for specific purposes as laid down by the donor, Expenditure which meets these criteria is charged to the funds. Page 26 conlinued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES . continued Pensions The charitable company operates a pension scheme through Kent County Council providing benefits based previously on final pensionable pay but amended from 1 April 2014 to career average revalued earnings (CARE). The assets of the scheme are held separately in an independently administered fund. Tonbridge & Malling Borough Council has given a legal undertaking indemnifying the charitable company in respect of all transferring staff. Employees who joined the charitable company after the point of the business transfer are classified wilhin 'Limb c, and it is the pensions of these employees which the charitable company is liable for. Accordingly, the financial statements for the year ended 31 March 2025 show a pension asseuliability of £Nil {2024 asset.. £Nill as calculated by the scheme actuary, The LGPS is a funded multi-employer scheme and the assets are held separately from those of the trust in separate Trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted al 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 oblained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the cUr￿n1 seNice costs and the costs of scheme introductions, benefit changes, settlements and curtailments, They are included as part of staff costs as incurred. Net interest on the net defined benefit liabilitylasset is also recognised in the Statement of Financial Activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, Gal¢ulated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual retum on the scheme assets is recognised in other recognised gains and losses. Actuarial remeasurement gains and losses are recognised immediately in other recognised gains and losses. In addition, the ¢haritable company operates a defined contributions pension scheme for new staff, the cost of which is charged to the Statement of Financial Activities as incurred. Financial instruments The company enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties. a) Trade and other debtors Trade and other debtors are initially recognised at fair value and thereafter slated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated al cost less impairment losses for bad and doubtful debts, b) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand. c} Impairment of financial assets Financial assets Ihat are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. Page 27 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES. continued Flnancial instruments For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carying amount and the present value of estimated cash flows discounled at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impaiment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impaimient loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date. d) Trade and other credltors Debt instruments like loans and other accounts payable are initially measured al present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable within one year, typically trade payables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid, However, if the arrangements of a short-term instrument conslitute a financing transaction, like the payment of a trade debt deferred beyond nomial business terms or financed at a rate of interest that is not a market rate or in case of an oulright short-term loan not at market rate, the financial asset is measured, initially and subsequently, at the present value of the future payments dis¢ounted at a market rate of interest for a similar debt insliument. Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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. Impairment of non.financial assets At each reporting date non-financial assets not carried at fair value, like plant and equipment, are reviewed, to determine whether there is an indicalion that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with ils Carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss. Inventories are also assessed for impairment at each reporting date. Each item of inventory is compared to the last sold date and an impairment loss recognised on a percentage basis in profit and loss. If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit and loss. Service concesslons arrangements The charitable company has a SeNice Contract with Tonbridge & Malling Borough Council for Ihe operation of leisure ￿ntres, golf courses, and a counlry park owned by the Council lo which it has lease and management service contracts. Tonbridge & Malling Borough Council has rights under the contracts to specify the activities offered by the centres and the minimum standards for the services to be provided, Page 28 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES. contlnued Financial Instruments Propertyg plant and equlpment The buildings and plant at the centres are leased to the charitable company as part of the overall contractual relationship with Tonbridge & Malling Borough Council but the Council maintains ultimate control of these assets. Accordingly the a¢¢ess which the charitable company has in the use of these assets is to enable il to operate the leisure centres, golf courses and country park, so Ihat the charitable company can provide the public service it is contracted to provide, not to effectively own these public Servi￿ assets. These assets are therefore not recognised on the charilable company's Balance Sheet. Improvements to property funded by the Trust are shown in the balance sheet as fixed assets and are depreciated over the term of the lease. Current asset Investments Funds held within deposit accounts with an original maturity date over three months are Classified under current asset investments. INVESTMENT INCOME 31.3.25 31.3.24 Deposit account interest 73,544 50,657 INCOME FROM CHARITABLE ACTIVITIES 31.3.25 31.3.24 Activity Operation of leisurelgolf centreslcountry park Operation of leisurelgolf centreslcountry park Operation of leisurelgolf centreslcounlry park Leisure ￿ntre income 11,140,104 10,996,670 Insurance claim 908 Grants {7,422) 58,455 11,132,682 11,056,033 The grant of £7,422 shown above relates to unspent monies from the KCC Reconnect Funding received, which has been returned in the year. Grants received, included in the above, are as follows,. 31,3.25 31.3.24 KSP Leasehold Grant 58,455 Page 29 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2025 CHARITABLE ACTIVITIES COSTS Support costs (see note 5) Direct Costs Totals Operation of leisurelgolf centreslcountry park 9,327,351 1,088,997 10,416,348 SUPPORT COSTS Govemance costs Management Totals Operation of leisurelgolf centreslcountry park 1,060,592 28,405 1,088,997 NET INCOMEI(EXPENDITURE} Net incomel(expenditure) is stated after chargingl(crediting)'. 31.3.25 31.3.24 Audit Fee Other non-audit services Depreciation - owned assets 24,156 4,249 126,409 21,882 4,040 106,425 TRUSTEES, REMUNERATION AND BENEFITS Stsff Trustees only receive remuneration in respect of services they provide undertaking their roles as staff and not in respect of their seNices as trustees. Other Trustees did not receive any payments, other than expenses, from the charitable company in respect of their role as Trustees. The value of the Trustees, remuneration during the period was as follows.. K Bennett (staff trustee) £25,027 {2024'. £21,617), pension contributions £5,598 (2024., £5,140). Page 30 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2025 TRUSTEES, REMUNERATION AND BENEFITS- continued Trustees, expenses During the period, reimbursed expenses amounting to £39 (2024,. £nil) were paid to a trustee for thank you gifts for sites. The expense was incurred by the staff trustee in their capacity of an employee of the trust. STAFF COSTS 31.3.25 31.3,24 Wages and salaries Social security costs Other pension costs 5,415,773 373,657 286,778 5,226,444 353,858 290,446 6,076,208 5,870,748 The average monthly number of employees during the year was as follows.. 31.3.25 31,3.24 Senior management Leisure activities Support 429 12 402 12 448 422 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 31.3.25 31.3.24 £60,001- £70,000 £70,001- £80,000 £80,001- £90,000 £90,001- £100,000 £120,001- £130,000 The total amount of employee benefits received by key management personnel (KMPI is £646,247 (2024: £747,316), Those considered to be KMP are listed on page14 of the Trustees report. Page 31 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2025 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted FRS102 funds Pension Restricted funds Total funds INCOME AND ENDOWMENTS FROM Charitable activities Operation of leisurelgolf centreslcountry park 10,997,578 58,455 11,056,033 Investment income 50,657 50,657 Total 11,048,235 58,455 11,106,690 EXPENDITURE ON Charitable activities Operation of leisurelgolf centreslcountry park 10,556,384 {13,000) 4,281 10,547,665 NET INCOME Transfers between funds other recognised gainsl(losses) Actuarial gainsl(losses) on defined benefit schemes 491,851 {600) 13,000 54,174 600 559,025 (62,000) {62,000) Net movement in funds 491,251 {49,000) 54,774 497,025 RECONCILIATION OF FUNDS Total funds brought forward 1,185,015 49,000 9,242 1,243,257 TOTAL FUNDS CARRIED FORWARD 1,676,266 64,016 1,740,282 Page 32 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS. continued FOR THE YEAR ENDED 31 MARCH 2025 10. TANGIBLE FIXED ASSETS Improvements to property Plant and machinery Office equipment Totals COST At1 April 2024 Additions Disposals 1,143,356 62,446 366,212 41,192 (66,762) 80,318 41,312 (9,856) 1,589,886 144,950 (76,618) At 31 March 2025 1,205,802 340,642 111,774 1,658,218 DEPRECIATION At1 April 2024 Charge for year Eliminated on disposal 414,281 79,794 200,989 40,478 (66,762) 62,513 6,137 (9,856) 677,783 126,409 (76,618) At 31 March 2025 494,075 174,705 58,794 727,574 NET BOOK VALUE At 31 March 2025 711,727 165,937 52,980 930,644 At 31 MarGh 2024 729,075 165,223 17,805 912,103 11. STOCKS 31.3.25 31.3,24 Stocks 118,762 116,190 12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.25 31.3.24 Trade debtors Other debtors Prepayments and accrued income 188,189 392 209,934 231,962 709 170,788 398,515 403,459 Page 33 continued.. TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2025 13. CURRENT ASSET INVESTMENTS 31,3.25 31.3.24 Unlisted investments 1,077,707 962,442 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.25 31.3.24 Trade creditors Social security and other taxes VAT Other creditors Deferred income Accrued expenses 378,162 91,848 55,601 53,892 684,716 354,147 309,690 107,561 56,056 79,254 620,871 337,706 1,618,366 1,511,138 15. LEASING AGREEMENTS Minimum lease payments under non-cancellable operating leases fall due as follows.. 31.3.25 31,3.24 Within one year Between one and five years 51,248 1,612 56,986 15,860 52,860 72,846 The charitable company holds a lease of £37,000 per annum for office rental which ends 31 March 2028, however this lease can be cancelled with 12 months noti￿, This lease is included within the table above. Page 34 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2025 16. MOVEMENT IN FUNDS Net movement in funds At 31,3.25 At1.4.24 Unrestricted funds General fund IT Repla￿ment Fund Telephone replacement 1,529,162 125,927 21,177 785,822 (3,569) 2,314,984 122,358 21,177 1,676,266 782,253 2,458,519 Restrlcted funds KCC Reconnect KSP Leasehold Grant 7,422 56,594 {7,422) {2,953) 53,641 64,016 (10,375) 53,641 TOTAL FUNDS 1,740,282 771,878 2,512,160 Net movement in funds, included in the above are as follows.. Incoming resources Resources expended Gains and losses Movement in funds Unrestricted funds General fund IT Replacement Fund FRS102 Pension 11,213,648 (10,427,826) {3,569) 18,000 785,822 (3,569) {18,000) 11,213,648 (10,413,395) 118,000) 782,253 Restricted funds KCC Reconnect KSP Leasehold Grant (7,422) (7,422) (2,953) (2,953) {7,422) (2,953) {10,3751 TOTAL FUNDS 11,206,226 (10,416,348) (18,000) 771,878 Page 35 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2025 16. MOVEMENT IN FUNDS . contlnued Comparatives for movement in funds Net movement in funds Transfers between funds At 31,3.24 At1.4.23 Unrestricted funds General fund IT Replacement Fund FRS102 Pension Telephone replacement 1,035,198 128,640 49,000 21,177 494,564 (2,713) {49,000) (600) 1,529,162 125,927 21,177 1,234,015 442,851 (600) 1,676,266 Restricted funds KCC Reconnect KSP Leasehold Grant 9,242 {1,820) 55,994 7,422 56,594 600 9,242 54,174 600 64,016 TOTAL FUNDS 1,243,257 497,025 1,740,282 Comparative net movement in funds, included in the above are as follows: Incoming resources Resources expended Gains and losses Movement in funds Unrestrlcted funds General fund IT Repla￿ment Fund FRS102 Pension 11,048,235 (10,553,671) (2,713) 13,000 494,564 (2,713) (49,000) {62,000) 11,048,235 (10,543,384) (62,000) 442,851 Restricted funds KCC Reconnect KSP Leasehold Grant (1,820} {2,461) {1,820) 55,994 58,455 58,455 (4,281) 54,174 TOTAL FUNDS 11,106,690 (10,547,665) (62,000} 497,025 Page 36 conlinued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS. continued FOR THE YEAR ENDED 31 MARCH 2025 16. MOVEMENT IN FUNDS . continued A current year12 months and prior year12 months combined position is as follows., Net movement in funds Transfers between funds At 31.3.25 At1.4.23 Unrestrlcted funds General fund IT Replacement Fund FRS102 Pension Telephone replacement 1,035,198 128,640 49,000 21,177 1,280,386 16,282) (49,000) (600) 2,314,984 122,358 21,177 1,234,015 1,225,104 {600) 2,458,519 Restrlcted funds KCC Reconnect KSP Leasehold Grant 9,242 (9,242) 53,041 600 53,641 9,242 43,799 600 53,641 TOTAL FUNDS 1,243,257 1,268,903 2,512,160 A Gurrent year 12 months and prior year12 months combined net movement in funds, included in the above are as follows.. Incoming resources ReSoUr￿S expended Gains and losses Movement in funds Unrestricted funds General fund IT Replacement Fund FRS102 Pension 22,261,883 (20,981,497) (6,282) 31,000 1,280,386 (6,282) (49,000) (80,000) 22,261,883 (20,956,779) (80,000) 1,225,104 Restricted funds KCC Reconnect KSP Leasehold Grant (7,422) 58,455 {1,8201 {5,4141 {9,242) 53,041 51,033 {7,234) 43,799 TOTAL FUNDS 22,312,916 (20,964,013) 180,000) 1,268,903 Designated Fund Included within carried foNard unrestricted general funds of £2,314,984 is a designated amount of £44,966 in respect of the Kings Hill Parish Council Sports Facility. This amount has been ring fenced in accordance with the contract for reinvestment in the sports park. Page 37 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2025 16, MOVEMENT IN FUNDS. continued IT Replacement Fund During the year 31 March 2017 an amount of £200,000 was received from TMBC in respe¢t of the replacement costs of IT equipment. Unspent funds at 31 March 2025 were £122,35812024: £125,927). Telephone System Replacement Fund During the year 31 March 2022 an amount of £35,300 was received from TMBC in respect of the repla￿ment costs ofthe telephone system, Unspent funds at 31 March 2025 were £21,17712024.' £21,177). KCC Reconnect Fund During the year 31 March 2022 an amount of £31,784 was received from KCC to deliver a programme of activities for children and young people through to August 2022. The aim of the grant is to help reconnect children and young people with activities they missed during the COVID-19 pandemic. During the year 31 March 2023 an additional amount of £7,946 was received upon final receipt of the monitoring data. Unspent funds at 31 March 2025 were £nil the unspent amount of £7,422 in 2024 was repaid. {2024'. £7,422). KSP Leasehold Grant During the year 31 March 2024 an amount of £58,455 was received from FCC Community Foundation in respect of the provision of floodlights at tennis courts. This amount was spent in 2024 via capital expenditure, the funds balance at 31 March 2025 of £53,641 (2024.. £56,594) represents the net book value of the assets. 17. EMPLOYEE BENEFIT OBLIGATIONS The charitable company operates a defined benefit pension scheme for some employees administered by Kent County Council, the administering authortty to the Kent County Council Pension Fund. The charitable company has admitted body status to the Kent County Council Pension Fund. The calculation can also be very sensitive to the actuarial assumptions used in valuing the scheme. The figures disclosed below have been derived by approximate methods from the full actuarial valuation of the fund carried out by the actuary as at 31 March 2025. Tonbridge & Malling Borough Council has given a legal undertaking indemnifying the charilable company in respect of pension contributions of all transferring staff. Employees who joined the charitable company after the point of the business transfer are classified within 'Limb c, and it is the pensions of these employees which the charitable company is liable for. Accordingly, the financial statements for the year ended 31 March 2025 show a pension assevliability of £nil (2024.. £nil asset). Movement on im act of asset ceilin The impact of the asset ceiling also had £6,000 worth of interest associated with it, which is recorded within the SOFA, The impact of asset ceiling in the current year totalled £419,000, adding the £6,000 of interest recognised in the SOFA, plus an opening position of £125,000, gives the closing position of £550,000, Page 38 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2025 17. EMPLOYEE BENEFIT OBLIGATIONS. contlnued The amounts recognised in the Balance Sheet are as follows.. Defined benefit pension plans 31.3.25 31,3.24 Present value of funded obligations Fair value of plan assets (1,248,000) {1,549,000) 1,798,000 1,674,000 550,000 125,000 Present value of unfunded obligations Impact of asset ￿lling {550,000) (125,000) Deficit Net liability The amounts recognised in the Statement of Financial Activities are as follows: Defined benefit pension plans 31.3.25 31.3.24 Current service cost Net interest from net defined benefit assevliability Past service cost Administrative expenses 50,000 48,000 (2,000) (4,000) 2,000 1,000 50,000 45,000 Actual return on plan assets 85,000 77,000 Page 39 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 MARCH 2025 17. EMPLOYEE BENEFIT OBLIGATIONS . continued Changes in the present value of the defined benefit obligation are as follows.. Defined benefit pension plans 31.3.25 31.3.24 Opening defined benefit obligation Current seNice cost Contributions by scheme participants Interest cost Estimated benefits paid net of transfers in Remeasurements.. Actuarial (gains)Ilosses from changes in demographic assumptions Actuarial (gains)Ilosses from changes in financial assumptions Oblig other remeasurement 1,549,000 50,000 26,000 77,000 1,527,000 48,000 22,000 73,000 (25,000) (40,000) (3,0001 (17,000) (422,000) (4,000) {69,000) 5,000 1,248,000 1,549,000 Changes in the fair value of scheme assets are as follows: Defined benefit pension plans 31.3.25 31.3.24 Opening fair value of scheme assets Administration expenses Contributions by employer Contribulions by scheme participants Interest on assets Estimated benefits paid plus unfunded net of transfers in Return on plan assets (excluding interest income) 1,674,000 (2,000) 68,000 26,000 85,000 1,576,000 {1,000) 58,000 22,000 77,000 {25,000) (40,000) {28,000) (18,000} 1,798,000 1,674,000 Page 40 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2025 17. EMPLOYEE BENEFIT OBLIGATIONS . continued The amounts recognised in other recognised gains and losses are as follows.. Defined benefit pension plans 31.3.25 31.3.24 Actuarial (gains)Ilosses from changes in demographic assumptions Actuarial {gains)Ilosses from changes in financial assumplions Oblig other remeasurement Retum on plan assets (excluding interest income) Impact of asset ceiling 3,000 17,000 422,000 4,000 69,000 (5,0001 (28,000) (419,000) {18,0001 (125,000) (18,000) {62,000) The major calegories of scheme assets as a per￿ntage of total scheme assets are as follows., Defined benefit pension plans 31.3.25 31.3.24 Equities Gilts Other Bonds Infrastructure Property Cash Absolute Return Fund 15% 5/0 8/0 5Yo Page 41 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2025 17. EMPLOYEE BENEFIT OBLIGATIONS- continued Sensitivlty analysis Adjustment to discount rate Present value of total obligalion Projected service cost +0.1Q/o 0.0% 1,248,000 30,000 .0.1Y. 1,281,000 31,000 1,216,000 28,000 Adjustment to long term salary increase Present value of total obligation Projected seNice seNice cost +0.1 0/0 1,250,000 30,000 o.ooA 1,248,000 30,000 .0.10/0 1,246,000 30,000 Adjustment to pension increases and deferred revaluation Present value of total obligation Projected service cost +0.10/0 1,593,000 32,000 +0.0% 1,248,000 30,000 .0.1•/0 1,217,000 28,000 Adjusted to life expectancy assumptions Present value of totsl obligation Projected service cost +1 Year 1,277,000 31,000 None 1,248,000 30,000 .1 Year 1,219,000 29,000 Principal actuarial assumptions at the Balan￿ Sheet date (expressed as weighted averages): 31.3.25 31.3.24 Discount rate Future salary increases Future pension increases Pension supporting information FRS102 section 28 is an accounling standard in relation to the calculation and disclosure of company pension scheme liabilities. It requires that employers make full provision for all pension scheme liabilities on their balan sheet - both in respect of any outstanding employer contrtbulions and any attributable share of the pension sGheme actuarial deficit in respect of defined benefit schemes. The FRS102 pensions liability calculation used for accounting purposes are based largely on the actuarial Ongoing Basis calculations (such as inflation, life expectancy etc.) but crucially differ in one key respect - Ihat of the discount factor used to arrive at net present value of any surplus or deficit. Whereas the Ongoing Basis uses estimated actuarial investment retums based on past and expected future performance, the FRS102 calculation uses a return based specifically on AA rated Government gilts. The volatility of the discount rate assumption can lead to higher liabilities being shown than if the liabililies were calculated by the Ongoing Basis. Future employer contributions are calculated at each tri-annual acluarial valuation, The actuaries calculate the scheme surplus or deficit based on prevailing assumplions around returns, inflation, discount factors, life expectancy etc. and then calculate the employer contribution required to a) maintain and provide for current and future pensions and b) reduce any deficit over time. The employer contrtbutions required are communicated to the employers and remain in place until the next tri-annual valuation. For all LPGS, the last triennial actuarial valuation was carried out in 2022 and new rates set for 3 years from April 2023. The employer contribution rates have been set at18.60/0 for the next 3 years. Page 42 continued... TONBRIDGE AND MALLING LEISURE TRUST TIA TMACTIVE A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 MARCH 2025 18. CAPITAL COMMITMENTS 31.3.25 31.3.24 Contracted but not provided for in the financial statements 41,164 32,295 As at 31 March 2025, the Charitable Company had committed to contribute to the refurbishment of the Tonbridge Pool Health Suite. The contribution amount was unknown at the year end but a contribution of £41,164 has subsequently been agreed. 19. RELATED PARTY DISCLOSURES During the year there were the following transactions with related parties.. The Trust made sales of £5,144 (2024.. £5,378) to Tonbridge Juddians Rugby Football Club, where M Davis, a Trustee, is vice-president. There were no amounts due to the Trust at 31 March 2025 (2024: £nil}. The Trust made purchases of £11,240 (2024.. £8,728) from and sales of £100 to CP Digital for social media services, The spouse of W Parker, a member of Key Management Personnel, is a director of CP Digital. There was a balance of £816 owed by the Trust at 31 March 2025 {2024'. £1,296). The spouse of l Mansfield, a member of Key Management Personnel, was employed by the Trust during the financial year and was paid £25,529. During the year M Guyton has continued to use a vehicle leased by the trust after retirement from his role as Chief Executive Officer. The total post employment benefit is £28,675 which is being treated as ex gratia. M Guylon made a personal contribution towards the lease cost totalling £9,000, 20. LEGAL STATUS The charity is a company limiled by guarantee and has no share capital. The liability of each member in Ihe event of winding up is limited to £1. Page 43