2021-04-01-accounts

ANNUAL REPORT

2020/2021

Trustees of Busen Martial Arts & Sports Trust Charitable Incorporated Organisation

Charity No: 1169053

Annual Report of the Trustees of Busen Martial Arts & Sports Trust for the period 1 April 2020 to 31 March 2021

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1. The Charity is named Busen Martial Arts & Sports Trust. The Trust’s Charity Registration number is 1169053.

2. The principal office of the trust is c/o Walker Morris LLP, King’s Court, 12 King Street, Leeds, LS1 2HL.

3. The current trustees are as follows:

Colin Sinclair, Chair Roger Mills Mark Oakley Ian Barclay

1. Key advisor to the trust is as follows:

Frank Perry, Chief Instructor, Martial Arts

1. The objects of the charity are, through the management of a Martial Arts and Fitness Centre for amateur sport, to:

2. Promote accessible, affordable sport and fitness activities for adults and young people catering for a range of different abilities.

3. Be a Centre of Excellence for martial arts, particularly Karate and Judo, providing adults and young people with opportunities ranging from beginner level to international standard.

4. Busen Martial Arts & Sports Trust was granted charitable status in September 2016.

5. In October 2016, the Charity entered into an Agreement to Lease with the London Borough of Richmond upon Thames, with the purpose of building a new Martial Arts and Fitness Centre at a site owned by Richmond Council in Stanley Road, Twickenham. The Agreement to Lease included commitments by the Charity and Richmond Council including the following:

6. Busen Martial Arts & Sports Trust to contribute £450,000 towards the capital costs of the new centre, with the balance of capital funding committed by Richmond Council, Sport England and the London Marathon Charitable Trust. Busen Martial Arts and Sports Trust is additionally committed to funding the costs of fit out and equipment for the new centre.

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• Richmond Council to let and manage the building contract with work to be completed by a long stop date of September 2017.

• Busen Martial Arts & Sports Trust to be granted a 30 year lease with a right to renew for a further 10 years, with the lease coming into operation on the handover of the building to Busen on completion of the building works.

• Limited progress was made on this project during 2016/17, 2017/18 and 2018/19. During 2018/19, the project was re-costed by the Council’s Quantity Surveyors and a funding gap of £867,300 was identified.

In September 2019, the Council’s Finance, Policy & Resources Committee agreed to fund the outstanding £867,300 in order to progress the project.

1. From October 2019 to March 2020, the Council’s Quantity Surveyor reappraised building design and specification with a review to retendering the project

2. In the period April 2020 to March 2021, the following progress was achieved:

April 2020 - Project retendered June 2020 - Return of tenders July 2020 - Tender analysis November 2020 - Building contract signed between London Borough of Richmond upon Thames and Woodland Commercial Ltd January to April 2021 - Awaiting Network Rail approval to commence construction

1. The proposed timescale for the project is now as follows:

July 2021 - Commencement of building works

May 2022 - Completion of building works June 2022 - Handover of building to Busen Martial Arts & Sports Trust and signing of lease between London Borough of Richmond upon Thames and Busen Martial Arts & Sports Trust

• July/August 2022 - Installation of sport and fitness equipment and office furniture September 2022 - Formal opening of the new centre.

• Financial Matters

Capital funding towards the new building

• Busen Martial Arts & Sports Trust £450,000

• • Sport England £250,000
• • London Marathon Charitable Trust £150,000 - London Borough of Richmond upon Thames £1,282,300

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Revenue Funding

Busen Martial Arts & Sports Trust will begin trading once the new centre is completed.

13. Assets of the Charity

• Agreement to Lease.

• 30 year lease with 10 year right to renew to be signed on handover / completion of the new centre.

• Offers of capital funding listed above.

14. Risks to the Charity

The Charity exists to deliver its objectives through the management of a new centre. Current risks are real and are:

• The Council fails to fulfil its commitment as set out in the signed Agreement to Lease. This now seems a minimal risk given that the building is now under construction.

• Project costs rise with inflation such that there is insufficient capital funding available to cover these costs. Given that in the last year the tendering process has been completed, the contract signed and a programme of works drawn up, this is now a minimal risk.

• The contractor is unable to complete the project. Given increased raw material costs and supply concerns post Brexit and in a Covid era, this poses some risk. However, the risk will be diminished as the project progresses.

• Funders including Sport England and the London Marathon Charitable Trust, withdraw their funding due to the delay in progressing the build. Given recent progress, including increased Council funding and progress with retendering the project, withdrawal of funding seems increasingly unlikely.

• Effects of Covid. There are currently no restrictions on the operation of indoor sports and fitness facilities due to Covid. The business plan for the centre is constantly being adjusted to take account of restrictions imposed by Covid, including class sizes, spectator use of the centre etc.

Signed:

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Colin Sinclair, Chair of Trustees Busen Martial Arts & Sports Trust

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