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2022-06-30-accounts

THE TENNIS & RACKETS ASSOCIATION LIMITED

Company No. 07819045 Charity No. 1167866

Trustees' Report and Consolidated Financial Statements

For the year ended 30 June 2022

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TABLE OF CONTENTS

LEGAL AND ADMINISTRATIVE DATA AT 30 JUNE 2022 ..................................................................................................... 2 TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2022 ................................................................................................. 3 INDEPENDENT EXAMINER'S REPORT TO MEMBERS AND TRUSTEES OF THE TENNIS & RACKETS ASSOCIATION LTD ... 8 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2022 ...................................... 9 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE VEAR ENDED 30 JUNE 2021 .................................... 10 GROUP BALANCE SHEET AT 30 JUNE 2022 ...................................................................................................................... 11 CHARITY BALANCE SHEET AT 30 JUNE 2021 .................................................................................................................... 12 NOTES TO THE ACCOUNTS FOR THE VEAR ENDED 30 JUNE 2022 ................................................................................... 13

THE TENNIS & RACKETS ASSOCIATION LIMITED LEGAL AND ADMINISTRATIVE DATA AT 30 JUNE 2022

TRUSTEES

Fred C Satow (Chairman) Mark K M Farmiloe Charles J Foreman Alan C B Giddins Victoria J Harvey (appointed 24 May 2022) Kathryn J Leppard William J Maltby Andrew C Power (Treasurer) Rory D Sutton Christopher Vigrass

COMPANY SECRETARY Christopher S Davies COMPANY NUMBER 07819045 CHARITY NUMBER 1167866 REGISTERED ADDRESS c/o The Queen's Club Palliser Road West Kensington, London W14 9EQ PORTFOLIO MANAGERS Brown Advisory 18 Hanover Square, London, WlS lJY Sarasin & Partners Juxon House, St Paul's Churchyard, London, EC4M 8BU INDEPENDENT EXAMINERS Haysmacintyre 10 Queen Street Place, London EC4R lAG BANKERS Cater Allen Private Bank 9 Nelson Street, Bradford BDl SAN

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THE TENNIS & RACKETS ASSOCIATION LIMITED (T&RA) TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2022

Introduction

The Tennis & Rackets Association Limited (T&RA) was incorporated on 1 January 2013 and is registered as a company limited by guarantee. Following consultation with the members and approval from the Charity Commission, the Company was granted charitable status on 27 June 2016. The Charity Commission approved the linking of the T&RA's original charitable arm, the Dick Bridgeman TRA Foundation (DBTRAF) to the main charity on 23 May 2019.

The charity is governed by its Board ofTrustees. Members of the Board are the Directors of the Company and the Trustees of the Charity. The Trustees present their Report together with the Financial Statements for the ye::ir ended 30 June 2022_

Objectives and Activities

The T&RA's objects are specifically related to the advancement of amateur sport for the benefit of the public; these objects are achieved through such means as the Trustees think fit including but not limited to:

The activities of the T&RA are funded via membership subscriptions, donations and sponsorship. In addition to the key activities mentioned above, the T&RA is also engaged in:

Values

The T&RA is committed to work for the benefit of all Tennis and Rackets players, at all levels. The T&RA adopts a collaborative, consultative, inclusive and open approach to the running of the Association and aims to communicate effectively at all times. Acting with respect, integrity and professionalism, while delivering the highest standards of service for all members, is at the core of everything that the T&RA strives to achieve.

The T&RA is accountable to its membership at all times. Major decisions affecting the membership will be consulted on and approved by members at the Annual General Meeting.

Achievements and Performance

Following the disruptions caused by covid we have seen high levels of participation returning to both games. Rackets has thrived at virtually every school, showcased by the National Schools Championships. Through the autumn there has been a gradual increase in court utilisation at most Real Tennis clubs. A full season's competition for both sports, professional and amateur has now taken place. International travel facilitated the RT Masters being played in France for the first time.

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The Under 26 Team has returned from Australia with the Van Alen and limb trophies. It was a good year for John Lumley, who won the British Open for the first time, while Claire Fahey successfully defended her Open and World titles.

Tom Billings and Richard Owen claimed the Rackets World Doubles title in New York, also winning the Brown Advisory Open Doubles, with Tom also winning the Open Singles. Ben Cawston also completed another good season and will challenge Tom for his Singles crown in November. For the ladies, Lea Van der Zwalmen successfully defended her World Singles title, with her contemporaries making real progress as Ladies Rackets goes from strength to strength. Georgie Willis won her first Open Singles title.

The Board and Games Committees have met regularly, as many key projects either continued to develop or evolved. In particular ttle lnvt=::.ling in Profe55iom1l5 (liP) prot,romme has seen its first apprentice (Jack Jo<=<>phs:) s:ecuring ;:i job at Hampton Court, while the other three apprentices continue with their training, with Tim Armstrong joining the programme at Petworth as the first of Tranche 2. There are further adjustments and improvements to make to the programme; key will be to secure roles for the future graduates. David Watson, having stepped down as T&RA Chairman, has taken the leading role to drive the programme forwards. 16 of the current professionals have been accredited by our partners, Sport Structures, with more not far away. The next challenge is to emulate the process for Rackets professionals, equally as vital to the future of the sport. There has been much discussion and Fred Satow, the new T&RA Chairman, has taken a close interest in this development. As for Tennis, the T&RA has pledged support to facilitate the training and a number of options are being explored including taking on undergraduates on coaching courses at university, while continuing with training at Eton, Harrow and Wellington.

Last year saw the T&RA's rebranding process, with a fresher, more dynamic, new look. This year we proceeded to the next step with a Marketing Strategy aiming to find a sponsor for Real Tennis, to work with the T&RA to enhance the future of the sport. We already have sponsors for Rackets in Brown Advisory, with whom we share a first-class partnership. Our links with Pol Roger are as strong as ever and thanks to Situ for their support for the Ladies Rackets World Challenge.

Financial Statements

The consolidated results for the year ended 30 June 2022 show a net loss of £17.6k compared with a profit of £76.4k in the prior year. This reflects a significant increase in grants to £126k from £29.6k the previous year, due to liP programme for Tennis being in its first full year of operation after Covid. This year we saw an increase in donations largely thanks to the Real Champions Club joining the T&RA and clubs in supporting the liP programme. This support, in addition to the continuing contributions from a small number of generous individual patrons and members, saw donations {including appropriate gift aid) rise to £177.8k from a level of £103.8k in 2021. Tournaments resumed following the Covid hiatus and as expected we ran a deficit of £20.8k, underscoring our need to find a sponsor for Tennis tournaments to complement Brown Advisory's welcome sponsorship of Rackets tournaments.

The current year shows movement in funds of minus £217.Sk compared with a positive £379.7k in the previous year. This principally was caused by £199.9k of net losses on investments in 2021/22 compared to investment gains of £303.3k in the prior year. This loss reflected unrealised losses on the investment portfolio related to the declines in financial markets in the first half of calendar year 2022. The year's losses will be transferred to reserves.

Reserves Policy

The Trustees have agreed that, should the T&RA suffer significant reverses, the unrestricted reserves should be sufficient to at least cover:

At 30 June 2022 these amounted to approximately £500k.

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Total reserves at 30 June 2022 were £2,596k {2021: £2,80Sk). Actual unrestricted reserves were £1,80Sk (2021: £1,986k) which are held to ensure adequate income generation and to provide a firm foundation for future grants.

Grants

Grants agreed in the year under review totalled £126k. The principal expenditure was on the liP programme for tennis where a total of £82.2k was invested. In addition, grants for court redevelopment and maintenance were £22k, and expenses to encourage participation in the games were £14.6k.

Over the past nine years, the T&RA has invested over £800k back into the games. £490k has been spent on Courts (covering ten different courts), and ongoing research to examine the possibility of building new Tennis courts in a more efficient, innovative and cost-effective manner. £26Sk has been spent on Professionals' training and development including liP, TRACS (a project to recruit more professionals into the games) and the Club Professional Development programme. A further £90k has been spent on encouraging Participation on schools, universities and the Dedanists' Juniors' programmes.

Grant Making Policy

In accordance with its charitable objects, the T&RA is dedicated to preserving and strengthening the games throughout the UK. All grants awarded must be consistent with the T&RA's charitable purposes and the Trustees satisfying themselves that such grants are consistent with their charity law obligations. Grants are by way of a contribution to the total cost of the grant recipient's project in line with this policy. The T&RA does not consider grants in retrospect.

The T&RA documents as appropriate the decision-making process in respect of the awarding of grants. In making decisions about grants the T&RA satisfies itself that:

When considering grants to non-charitable organisations the T&RA considers any private benefit issues as private organisations are not subject to the same restrictions as charities and can undertake a much wider range of activities. Any private benefit which may arise in connection with the grant is identified and evaluated compared to the public benefit.

The T&RA conducts appropriate due diligence in respect of all potential grants to confirm that they are clearly in the best interests of the T&RA's charitable purposes.

Structure, Governance and Management

The Board of Trustees supports the principles and procedures of good corporate governance as set out in the Combined Code published by the Financial Reporting Council. The Trustees strive to implement relevant provisions as far as is practicable for a sporting national governing body limited by financial and other resources and membership numbers.

The T&RA is governed by the Trustees named on page 2. The following constitutional matters were approved at the Annual General Meeting, with effect from 24 November 2021: Mr FC Satow succeeded Mr DK Watson as Chairman and the latter stepped down as a Trustee. Mr AC Power was reappointed and approved as a Trustee and Treasurer; Mr MKM Farmiloe was reappointed and approved as a Trustee. The composition of the Board is intended to reflect activity within both sports. No Trustees have been remunerated but were offered out-of-pocket expenses in the current year. A register of Directors' interests is maintained which details all personal or business interests which could give rise to a conflict of interest. The T&RA maintains Directors' and Officers' insurance as permitted by S.234 of the Companies Act 2006. Related party transactions are noted at Note 16.

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The Board has established Games Committees, an Investment Committee and other Sub-Committees, relating to the good management of the sports. The Board and the Games Committees meet four to six times each year to consider reports from the Committees and to formulate policy. Members of Committees are primarily volunteers who give their time to support activities that can be dealt with more effectively on a collective basis.

The Chief Executive is responsible for implementing the strategy approved by the Board, leading and managing the staff and overseeing the T&RA's day-to-day operations. The pay of the Chief Executive and all staff is reviewed annually. In view of the nature of the charity, the Trustees benchmark pay levels against other charities. The remuneration bench-mark is within the range paid for similar roles in similar sized charities.

Linked Charity-The Dick Bridgeman TRA Foundation (DBTRAF)

Andrew Charles Power has performed the role of Trustee since 20 March 2019, with Frederick Charles Satow replacing David Kenneth Watson with effect from 24 November 2021.

DBTRAF had been established by a Deed of Trust dated 21 January 1965 and was previously registered with the Charity Commission number 313843. Its address was registered at 45 Cadogan Gardens, London, SW3 2AQ. The power of appointment of new Trustees was vested in the Tennis & Rackets Association Limited. The Trustees had paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

The Charity Commission directed that as of 23 May 2019 the charity known as The Dick Bridgeman T R A Foundation ('the Linked Charity') be treated as forming part of the charity known as The Tennis & Rackets Association Limited ('the Reporting Charity') for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Act 2011. This direction took effect for the whole of the 2018/19 financial year of the reporting charity. Furthermore, the Charity Commission directed the linking of the charities under section 12 (1) is an administrative linkage, for reporting purposes only. It does not change the separate legal status of the charities, or the nature of restricted funds or endowment, and it does not constitute a merger. The trustees are under a duty to ensure that the funds of each charity are still applied solely in accordance with the respective trusts.

The charity known as The Tennis & Rackets Association Limited was identified as the reporting charity. In reporting the charities' activities, the Trustees of the reporting charity must maintain separate accounting records for each linked charity and ensure that the funds for each charity are applied only in accordance with each charity's separate trusts. This is a requirement of section 130 of the Charities Act 2011.

Risk Management

The major financial and operational risks to which the T&RA is exposed are of an indirect nature through its coordination of sporting events nationally. The T&RA has a Health and Safety Policy which aims to implement all reasonable measures to reduce identified risks. Work is ongoing to address specific areas of concern, in particular, eye protection for players, which has formulated policy advice and a best practice list of suitable eyewear. The Board has approved a Safeguarding Policy which has been distributed and clarified to all Clubs, with a voluntary National Designated Officer reporting to the Chief Executive. Disclosure and Barring Service checks, which facilitate the process, are monitored by the T&RA office. Directors' and officers' risks are further mitigated by a comprehensive insurance policy and by the T&RA's incorporation into a limited company. The liability of each member is limited to £1.00, being the amount that each member undertakes to contribute in the event of the winding-up of the Company. The Company endeavours to protect, as far as reasonably practicable and in conjunction with partner organisations where relevant, the health, safety and welfare of employees, volunteers, members and its guests whilst they are in the Association's offices or at one of its events, and in compliance with all relevant club or school rules and legal requirements.

The major strategic risks facing the T&RA in the near future are considered to be:

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All significant risks, along with current mitigation actions, are reviewed regularly throughout the year by the Trustees. The Trustees are satisfied that systems have been developed and are in place to mitigate identified risks to an acceptable level.

Future Plans

The T&RA maintains a Strategic Plan which is reviewed regularly. The plan contains specific targets for membership, participation and court development, and these are monitored by the Board. The longer-term objective is to promote amateur sport to the general public by developing both games in the UK. This will be achieved by supporting the development of new courts, increasing participation (with an emphasis on the young) and to develop the training of new and existing coaches via a structured programme.

Funds held as Custodian Trustee on behalf of others

There are no funds held on behalf of other organisations or entities.

Trustees' Responsibilities

The Trustees, who are also Directors of the T&RA for the purpose of company law, are responsible for preparing the Trustees' Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year and not approve the financial statements unless they are satisfied that the financial statements give a true and fair view of the state of the affairs of the Charity as at the balance sheet date and of its incoming resources and application of resources for the year then ended.

In preparing those financial statements which give a true and fair view, the Trustees should follow best practice and:

The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable Company's website.

By Order of the Board

C S Davies, Chief Executive and Company Secretary

On behalf of the Board 17 August 2022

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INDEPENDENT EXAMINER'S REPORT TO MEMBERS AND TRUSTEES OF THE TENNIS & RACKETS ASSOCIATION LTD

I report to the Trustees on my examination of the accounts of the Tennis and Rackets Association Limited for the year ended 30 June 2022 which are set out on pages 9 to 19.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ("the 2006 Act"). The trustees are satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination.

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

Independent examiner's statement

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

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

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination; or

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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

Thomas Wilson ACA Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

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THE TENNIS & RACKETS ASSOCIATION LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2022

£000s
Notes
INCOME
Donations
3
Charitable activities
5
Trading activities
7
Investments
Total Income
EXPENDITURE
Raising funds
4
Charitable activities
5
Trading activities
7
Total Expenditure
Net income
Net gains/(losses) on investments
8
Net movement in funds
20
Total funds brought forward
20
Total funds carried forward
20		 Unrestricted
Funds
66.6
217.1
61.1
45.1
389.9
12.6
328.8
84.5
425.9
(36.0)
(145.4)
{181.4)
1986.4
1805.0		 Restricted
Funds
127.0
0.8
9.5
5.1
142.4
2.3
113.4
6.9
122.6
19.8
(34.0)
(14.2)
551.9
537.8		 Endowment
Fund
0.0
0.0
0.0
9.4
9.4
-
--
2.0
0.9
0.0
2.9
6.4
(20.5)
(14.1)
266.9
252.8		 Year ended
Year ended
30 Jun 22
30 Jun 21
Total
Total
193.6
103.8
217.9
167.6
70.6
0.0
59.6
56.3
541.7
327.7
16.9
11.6
443.1
239.7
91.4
0.0
551.4
251.3
(9.7)
76.4
(199.9)
303.3
(209.6)
379.7
2805.2
2425.5
2595.6
2805.2

The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 13-19 form part of these financial statements.

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THE TENNIS & RACKETS ASSOCIATION LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2021

£000s
Notes
INCOME
Donations
3
Charitable activities
5
Trading activities
7
Investments
Total Income
EXPENDITURE
Raising funds
4
Charitable activities
5
Trading activities
7
Total Expenditure
Net income
Net gains/(losses) on investments
8
Net movement in funds
20
Total funds brought forward
20
New funds
18
Total funds carried forward
20		 Unrestricted
Funds
70.4
167.6
0.0
42.0
280.0
8.3
216.9
0.0
225.2
54.8
219.0
273.8
1711.0
1.6
1986.4		 Restricted
Endowment
Funds
Fund
33.4
0.0
0.0
0.0
0.0
0.0
5.5
8.8
38.9
9.4
1.6
1.7
19.9
2.9
0.0
0.0
21.5
4.6
17.4
4.2
58.0
26.3
75.4
30.5
478.1
236.4
(1.6)
0.0
551.9
266.9		 Year ended
30 Jun 21
Total
103.8
167.6
0.0
56.3
327.7
11.6
239.7
0.0
251.3
76.4
303.3
379.7
2425.5
0.0
2805.2

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Company Number: 07819045

THE TENNIS & RACKETS ASSOCIATION LIMITED GROUP BALANCE SHEET AT 30 JUNE 2022

£000s
FIXED ASSETS
Tangible Assets
Listed Investments
Unrestricted funds
Restricted funds
Endowment fund
Total Investments
Total Fixed Assets
CURRENT ASSETS
Stocks
Debtors and payments in advance
Cash at bank and in hand
Total Current Assets
CURRENT LIABILITIES
Creditors and accruals
TOTAL NET ASSETS
FUNDS
Unrestricted funds
Restricted funds
Endowment fund
TOTAL FUNDS
Notes
10
11
12
13
19
19
19
19		 30 Jun 22
0.0
1758.8
418.5
250.6
2427.9
2427.9
14.3
63.8
186.4
264.5
(96.8)
2595.6
1805.0
537.8
252.8
2595.6
30 Jun 21
1.2
1904.9
413.6
271.1
2589.6
2590.8
18.0
54.0
240.7
312.7
(98.3)
2805.2
1986.4
551.9
266.9
2805.2

For the financial year ending 30 June 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.

The Directors acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies, subject to the small companies' regime.

Approved and authorised for issue by the Board on 17 August 2022 and signed on its behalf by:

F C Satow, Chairman

AC Power, Treasurer

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Company Number: 07819045

THE TENNIS & RACKETS ASSOCIATION LIMITED CHARITY BALANCE SHEET AT 30 JUNE 2021

£000s 30 Jun 22 30 Jun 21
FIXED ASSETS
Tangible Assets 0.0 1.2
Listed investments
Unrestricted funds 811.6 880.2
Restricted funds 418.5 413.6
Total listed investments 1230.1 1293.8
Investment in subsidiary 0.1 0.1
Total Investments 1230.2 1293.9
Total Fixed Assets 1230.2 1295.1
CURRENT ASSETS
Stocks 14.3 18.0
Debtors and payments in advance 98.7 56.4
Cash at bank and in hand 59.0 163.4
Total Current Assets 172.0 237.8
CURRENT LIABILITIES
Creditors and accruals (112.2) (89.1)
TOTAL NET ASSETS 1290.0 1443.8
FUNDS
Unrestricted funds 764.4 904.0
Restricted funds 525.6 539.8
TOTAL FUNDS 1290.0 1443.8

The Charity's income for the year ended 30 June 2022 is £416.7k, expenditure is £468.6k and net loss on investments are £101.8k; the deficit for the year is £153.7k.

Approved and authorised for issue by the Board on 17 August 2022 and signed on its behalf by:

F C Satow, Chairman

A C Power, Treasurer

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THE TENNIS & RACKETS ASSOCIATION LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2022

1. Accounting Policies

Basis of Preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) (effective 1 January 2015) and the Companies Act 2006. No separate SOFA has been presented for T&RA alone, as permitted by Section 408 of the Companies Act 2006.

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

Going Concern

The Trustees consider there are no material uncertainties about the Charity's ability to continue as a going concern. The review of the financial position, reserve levels and future plans gives the Trustees confidence that the Charity remains a going concern for the foreseeable future. In light of the post-Covid 19 fallout, special attention has been paid to cashflows, year-end cash balances and unrestricted reserves, all of which remain healthy.

Income Recognition

Investment income is recognised on a receivable basis once the amounts can be measured reliably. Individual Memberships Subscriptions, Donations, Entertainment and Development Income are recognised on a cash basis unless otherwise designated. Corporate Membership Fees, Sponsorship, Advertising, Sales of ball cloth, Rackets balls, etc. are recognised when invoiced or otherwise fall due.

Grants

Grants payable are recognised once the application has been approved under the appropriate level of authority within the T&RA.

Governance Costs

Governance costs, comprising audit fees and accountancy costs, are included within support costs.

Support Costs

Support costs shown within Charitable Activities, including staff costs, communications and IT, governance costs and general administration, have been allocated to Trading Activities on the basis of a weighted average estimate of 7% (2021: 0%} of the time spent on sponsorship and professional tournaments.

Operating Leases

Rental charges are charged on a straight-line basis over the life of the lease.

Investments

Investments are a form of basic financial instruments and are shown in the financial statements at market value.

Profits and losses on the realisation of investments are shown as realised gains and losses in the Statement of Financial Activities. Realised gains and losses on investments are calculated between sales proceeds and their opening carrying values or their purchase value if acquired subsequent to the first day of the financial year. Movements in the market values of investments are shown as unrealised gains and losses in the Statement of Financial Activities. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Stocks

Stocks are valued at the lower of cost and net realisable value.

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Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Funds

Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the Charity. Restricted funds are those funds which are to be used in accordance with specific instructions imposed by the donor or trust deed. Endowment funds are funds held where the charity is only permitted to spend the income but not the capital sum.

Employee Benefits

The T&RA operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held independently from those of the T&RA in an independently administered fund. The pensions costs charged in the financial statements represent the contributions payable during the year.

Cash Flow Statement

The Trustees have taken advantage of the provisions of FRS102 (SORP2015) for smaller charities and have chosen not to prepare a cash flow statement.

Legal Status

The T&RA is a company limited by guarantee and has no share capital. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

2. Judgement

The Trustees are required to consider financial and other issues which may affect these accounts and, where necessary, disclose material matters. In their view, there are no significant judgemental matters affecting these accounts.

3. Donations
£000 2022 2021
Benefactors 16.6 28.2
Charitable Donations 141.6 37.1
Gift Aid 35.4 38.5
Total donations 193.6 103.8
4. Raising Funds
£000 2022 2021
Investment management fees 16.9 11.6

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5. Charitable activities

£000 2022 2021
Income
Membership subscriptions 166.3 152.5
Amateur tournaments 16.6 1.4
Sales of ball cloth, rackets balls, etc. 22.1 7.1
Advertising in annual report 2.4 3.8
Other 10.5 2.8
Total income 217.9 167.6
Expenditure
Grants - in pursuit of the Company's objects:
Courts - new courts and improvements to existing courts 22.0 4.5
Professional coaches - training and development 90.1 18.1
Participation - encouraging more people to play, particularly the young 14.6 5.4
Other 7.2 1.6
Total grants 133.9 29.6
Amateur tournaments 37.3 3.7
Support and Governance Costs
Staff costs 205.3 142.8
Cost of sales of ball cloth, etc. 20.6 4.4
Communications and IT 30.6 43.4
Examiner's remuneration 2.8 2.2
Other administrative costs 29.1 13.6
Total support costs 288.4 206.4
Less: allocated to trading activities {16.5} (0.0}
271.8 206.4
Total net expenditure 443.1 239.7
6. Staff Costs and Numbers
2022 2021
£000
Salaries and wages 184.0 126.3
Social security costs 9.7 7.6
Pension Contributions 9.7 8.9
Total 205.4 142.8

The total remuneration including benefits of the charity's key management personnel amounts to £64.2k (2021: £63.0k).

The average number of employees during the year was 8 (2021: 5).

The Trustees were not entitled to any remuneration, nor did they receive any.

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7.
Trading activities
£000 2022 2021
Income
Sponsorship 23.0 0.0
Non-charitable donations 27.0 0.0
Professional tournaments 27.6 0.0
Total income 70.6 0.0
Expenditure
Professional tournaments 74.0 0.0
Allocated support costs 17.4 0.0
Total expenditure 91.4 0.0
8.
Net gains/(losses) on investments
£000 Unrestricted Restricted Endowment Total 2022
Total 2021
Realised gains/(losses) on investments
Historical cost gains/(losses) 27.0 4.8 3.8 35.6 121.0
Less (gains)/losses recognised in prior years 19.1 0.9 3.8 23.8 50.2
Gains/(losses) recognised in current year 7.9 3.9 0.0 11.8 70.8
Unrealised gains/(losses) on investments
Market value at 30 June 1747.0 402.0 250.6 2399.6 2589.6
Cost at 30 June (1735.5) (399.7) (248.6} (2383.7) (2358.8)
Unrealised gain in portfolio 11.5 2.4 2.0 15.9 230.8
Less recognised in prior years (167.1} (41.2) (22.5) (230.8) (220.6)
Transferred to realised gain 2.4 0.9 (0.0) 3.3 222.8
Accrued income (0.0) (0.0) 0.0 (0.0) (0.5)
Unrealised gains/(losses) in current year (153.3) (37 .9) (20.5) (211.7) 232.6
Net gains/(losses) on investments (145.4) (34.0) (20.5) (199.9) 303.3
9.
Operating Lease
Rentals payable in respect of a property lease:
£000 2022 2021
Less than one year 2.0 2.0
Two to five years 8.0 8.0
More than five years 20.0 22.0
10. Investments
Group £000 Unrestricted Restricted Endowment
Total 2022		 Total 2021
Listed Investment assets in the UK:
Market value at beginning of period 1904.9 413.6 271.1 2589.6 2021.3
Cash 11.8 16.4 0.0 28.2 0.0
Additions to investments at cost 193.0 118.8 0.0 311.9 1389.5
Additions to investments Other 0.0 0.0 0.0 0.0 0.5
Sales proceeds from disposals (205.5) (96.4) 0.0 (302.0) (1125.1)
Net realised gains/(losses) on disposals 7.9 3.9 0.0 11.8 70.8
Net unrealised gains/(losses) on revaluation (153.3) (37.9) (20.5) (211.7) 232.6
Market value at 30 June 2022 1758.8 418.5 250.6 2427.9 2589.6

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11. Stocks

£000 2022 2021
Ball cloth 9.7 7.1
Rackets balls 0.0 7.1
Merchandise 1.2 2.2
Wine and Other 3.4 1.6
Total 14.3 18.0
12.
Debtors and Payments in Advance
£000 2022 2021
Debtors 2.2 3.8
HM Revenue & Customs 1.6 4.7
Payments in Advance 32.7 15.5
Other Debtors 27.3 30.0
Total 63.8 54.0
13. Creditors and Accruals
£000 2022 2021
Accounts Payable 6.6 13.5
Accruals 56.7 59.2
Deferred Income 24.4 17.6
Other payables 9.1 8.0
Total 96.8 98.3

14. Linked Charity

DBTRAF is a linked charity and is treated as forming part of the TRAL charity. A summary of DBTRAF's financial activity for the year ended 30 June is shown below:

£000 2022 2021
Statement of Financial Activities
Total income 54.4 51.3
Total expenditure (12.2) (26.0)
Net (deficit)/income 42.2 25.3
Net (losses)/gains on investments {98.1) 122.6
Total funds brought forward 1361.4 1213.5
Total funds carried forward 1305.5 1361.4
Balance Sheet
Fixed asset investments 1197.7 1295.8
Current assets 114.5 74.2
Current liabilities {6.7) (8.6)
Total net assets 1305.5 1361.4

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15. Subsidiary Undertaking

The company has one subsidiary undertaking, T&RA Trading Limited {TRAT), as detailed below.

TRAT

TRAT is a wholly owned subsidiary company of T&RA and commenced operations on 5 July 2016. It undertakes the non-charitable activities ofT&RA: the execution of professional tournaments and securing sponsorship and donations to facilitate professional tournaments. A summary ofTRAT's financial activity for the year ended 30 June 2022 is shown below:

£000
Income Statement
Total turnover
Total expenditure
Operating profit
Donation to T&RA
Profit for the period
Balance Sheet
Current assets
Current liabilities
Total net assets		 2022
85.6
{69.1)
16.5
(16.5)
0.0
12.8
(12.7)
0.1		 2021
0.0
(0.0)
0.0
0.0
0.0
16.4
{16.3)
0.1

TRAT was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies. Its registered address is: The Queen's Club, Palliser Road, West Kensington, London W14 9EQ.

16. Related Party Transactions

The aggregate amount of donations from Trustees during the year was £1.8k { 2021: £2.3k). There were no other related party transactions in the year.

17. Memorabilia

The collection of T&RA memorabilia, including trophies, books and art, is not included in the accounts but is insured for full replacement value. A t the date of these accounts, the value of such assets is estimated to be in excess of £250k.

18. Description of Restricted and Endowment Funds

Restricted funds

Endowment fund

Peter Kershaw Bursary Fund ( PKBF): £200k was given to the charity on 10 December 2001 to be used to support Real Tennis and Rackets coaches, repairs and improvements to Real Tennis and Rackets facilities or any other purpose within the objects of the charity as approved by the trustees of the Peter Kershaw Charitable Trust (PKCT).

Income arising from the investments held should be applied for the above purposes within two consecutive years or else the value of the fund is repayable to the original donor trust. An annual report is made to the trustees of PKCT regarding the projects supported by the fund. Support has continued and no negative feedback relating to expenditure within the charity's objects has been received.

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19. Summary of fund movements

Gains/
£000 2021 Income Expenditure (Losses) 2022
Unrestricted
T&RA 904.0 331.7 (403.5) (67.8) 764.4
DBTRAF 1082.4 45.1 (9.3) (77.6) 1040.6
TRAT 0.0 85.6 (85.6) 0.0 0.0
Consolidation
adjustments 0.0 {72.5) 72.5 0.0 0.0
1986.4 389.9 (425.9) {145.4) 1805.0
Restricted
YPF 465.2 6.5 (4.4) (34.0) 433.3
Smithie 10.0 0.0 0.0 0.0 10.0
Cockroft 35.5 0.0 (0.2) 0.0 35.3
TSF 3.9 0.0 0.0 0.0 3.9
ILRT o.o 18.0 (6.9) 0.0 11.1
HB/K 12.1 0.0 (0.0) 0.0 12.1
liP 8.6 113.7 (90.2) 0.0 32.1
Washington 16.6 4.2 (20.8) 0.0 o.o
551.9 142.4 (122.5) (34.0) 537.8
Endowment
PKBF 266.9 9.4 (2.9) (20.5) 252.8
Total 2805.2 541.7 (551.4) (199.9) 2595.6

20. Analysis of net assets by fund

2022

£000 Unrestricted Restricted Endowment Total 2022
Fixed Assets 1758.8 418.5 250.6 2427.9
Stock 14.3 0.0 0.0 14.3
Debtors 30.7 33.1 0.0 63.8
Cash and bank 143.0 31.0 12.4 186.4
Creditors (141.8) 55.2 (10.2) {96.8)
Total 1805.0 537.8 252.8 2595.6

2021

£000 Unrestricted Restricted Endowment Total 2021
Fixed Assets 1906.1 413.6 271.1 2590.8
Stock 18.0 0.0 0.0 18.0
Debtors 53.8 0.2 0.0 54.0
Cash and bank 170.0 63.5 7.2 240.7
Creditors (161.5) 74.6 (11.4) (98.3)
Total 1986.4 551.9 266.9 2805.2

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