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2024-03-31-accounts

REGISTERED COMPANY NUMBER: 10735297 (England and Wales) REGISTERED CHARITY NUMBER: 1173521

Group Report of the Trustees and Group Financial Statements for the Year Ended 31 March 2024

for Bath Recreation Limited

Sumer Auditco Limited Statutory Auditor Chartered Accountants County Gate County Way Trowbridge Wiltshire BA14 7FJ

Bath Recreation Limited

Contents of the Financial Statements for the Year Ended 31 March 2024

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 6
Report of the Independent Auditors 7 to 9
Consolidated Statement of Financial Activities 10
Consolidated Balance Sheet 11
Charity Balance Sheet 12
Consolidated Cash Flow Statement 13
Notes to the Consolidated Financial Statements 14 to 26

Bath Recreation Limited

Reference and Administrative Details for the Year Ended 31 March 2024

TRUSTEES Jason Dalley (Chair) Naomi Defroand (Vice Chair) Martin Harman CBE Keziah Trump Mark Powell (resigned 25 October 2024) Alistair Colston Angela Lewis (resigned 31 August 2023) Tim Withers (resigned 31 December 2023) Helen Donovan (appointed 20 September 2023) REGISTERED OFFICE Pulteney Mews Bath BA2 4DS

REGISTERED COMPANY NUMBER 10735297 (England and Wales) REGISTERED CHARITY NUMBER 1173521 AUDITORS Sumer Auditco Limited Statutory Auditor Chartered Accountants County Gate County Way Trowbridge Wiltshire BA14 7FJ BANKERS HSBC 41 Southgate Bath BA1 1TN SOLICITORS Veale Wasborough Vizards Narrow Quay House Narrow Quay Bristol BS1 4QA INVESTMENT MANAGER Investec Wealth & Investment Limited 3 Temple Quay 3 Temple Back East Bristol BS1 6DZ

Page 1

Bath Recreation Limited

Report of the Trustees for the Year Ended 31 March 2024

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 2024. 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charitable company has continued to deliver its objectives at the Recreation Ground and other sites; the provision, with or without charge, of property in or near Bath (including, but not limited to, the Bath Recreation Ground) for use as indoor (to assist in providing ancillary recreation facilities such as changing rooms, toilets and clubhouses and the like to support outdoor recreational space) and outdoor recreational facilities for the benefit of the public.

Our strategic focus is to build our influence by acting as a voice for the benefits of recreation and the preservation of key facilities, provide sustainable growth of our organisation and maintain robust financial stability in order to achieve the best impact possible in the recreation property landscape locally.

We have continued to provide recreation facilities for a wide range of organisations and activities; we have produced a separate impact report annually for the last 3 years which is distributed widely to demonstrate our work and impact to beneficiaries. Our foundational work with schools and young people continues to deliver great impact and we have moved to bringing staff to support this work into employed roles rather than rely on contracted suppliers. The aim is to deepen relationships with schools and organisations over the long term, the accounts will show this direct investment in staff costs which the trustees continue to feel is a positive step forward as we create permanent jobs for local people.

We have continued to grow our partnerships with direct support from St John's Foundation, the Medlock Charitable Trust and the George Cadbury Trust specifically to deliver the Glasshouse Academy programme and to target primary schools with high levels of need (such as the number of children entitled to free school meals, with special educational needs or English as a second language). The trustees see this type of collaboration to be a force multiplier as we harness greater skills and capabilities for the good of our shared beneficiaries. An initial 5-year agreement for funding from St Johns Foundation is in the final year and we are working with them to review the impact and look at future collaboration.

As part of our strategy to diversify our capabilities and revenue the wholly owned trading subsidiary, Bath Recreation Trading Limited, has completed a very successful first year of activity. Following an extended period of due diligence and professional advice the Trustees approved the acquisition of an existing, complimentary business. The transaction was for equipment, goodwill and existing client base and was subsumed seamlessly in February 2024. The aim was to accelerate the benefit to the Charity of the Trading Company and the first 6-months of trading have been above budget and expectations.

The activities undertaken across our estate during the year are considered by the Trustees to be of direct benefit to the public at large, and they confirm that they have had regard to the guidance issued by the Charity Commission on public benefit and have followed this in planning and undertaking the activities.

The charitable company does not actively solicit donations from the public and has no need to develop formal policies on its fundraising approach at this stage.

Page 2

Bath Recreation Limited

Report of the Trustees for the Year Ended 31 March 2024

ACHIEVEMENT AND PERFORMANCE Charitable activities

Following on from the Covid recovery focus last year the Board again set a challenging budget to ensure all in-year revenue was utilised in direct activity. The expansion of the Trading Company has assisted beneficiaries as we have greater capacity and capability to support organisations with increasing costs in maintaining recreation property.

Our property and sites have now built activity back up to pre-covid levels with old activities returning, some that didn’t are now replaced by new activities and bookings. The Recreation Ground played host to Bath Rotary Fireworks, Bath Carnival and a wide range of school festivals during the year. Glasshouse has continued to develop a wide range of beneficiaries with schools activity on the increase. A strong relationship has developed with the Local Authority Children Services team and the site is used for activities and staff training.

As the post covid impact is becoming more clear we have maintained the ability to support key community organisations with advice and financial support. We are focused on our charitable objects and vulnerable recreation property has been at the forefront of our activity. As such we are working closely with a local sports club, Odd Down AFC to protect and enhance their facilities for the good of the community. We expect there to be an increase in owner operated community sites with low liquidity coming under pressure and remain mindful to hold sufficient reserves to assist where appropriate and within our means.

The new management and trustee working group structure introduced last year is now operating coherently supporting our growth and strong decision making between the executive and Board of Trustees. Whilst the Property Working Group maintain focus on the stadium and Odd Down site opportunities the Education Working Group is shifting their focus to add strategic partnerships and future strategy to the oversight of the Glasshouse and Buds programmes.

The Charity subsidiary company has delivered a positive financial contribution and is ahead of budget to meet expectations in the current financial year. Aside from the diversification of revenue the Trading Company is broadening our reach into the recreation community and provides harmonious support to the recreation property landscape. One key secondary benefit is the creation of permanent jobs that preserve key skills needed to support recreation activity such as the maintenance of cricket wickets and fine turf sports pitches. As our operating area is also a Conservation Area, small community organisations can find their obligations to maintain trees a significant burden and this is an additional benefit to the expertise we now possess.

FINANCIAL REVIEW Reserves policy

It is the policy of the Trustees that the charitable company should hold sufficient unrestricted reserves to enable it to meet its ongoing commitments equal to 6 months operating expenditure.

For the year ending 31 March 2024 this was approximately £0.48m and cash held at year end was £0.33m.

A further £1.2m is held in an investment portfolio and this amount is held to provide sufficient resources to enable the Charity to fund any additional opportunities for the charitable company’s objectives to be furthered as they may arise.

Of the remaining reserves £7.4m are not easily realisable as they relate to fixed assets or freehold property.

The Charity has recently designated £400k to capital projects.

Details of the restricted, endowment and unrestricted funds available to the charitable company at the balance sheet date are given in note 19 to these financial statements. The Trustees consider the reserves position at this date to be satisfactory.

Page 3

Bath Recreation Limited

Report of the Trustees for the Year Ended 31 March 2024

Going concern

The charitable company receives the majority of its ongoing income from Bath Rugby and Bath and North East Somerset Council for the ongoing use of its facilities. A significant proportion of this income relates to leases granted by the charitable company which have an end date in 2069 and the Trustees are of the view that this provides sufficient security to mitigate any risk to its continued existence.

Taking into account the operations of the charitable company and the current reserves position, the Trustees are of the opinion that the going concern basis for the preparation of the financial statements is appropriate.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity operating through a company limited by guarantee which is the sole Trustee of Bath Recreation Ground Trust is governed by a Scheme dated 14 December 2016, a Direction given on 3 November 2017 and the Articles of Association. The Articles of Association were amended by resolution on 9 March 2022 to reflect the changing needs for the governance structure. The additional provision for an extra 3-year term of office (changing the maximum period from 6 years to 9 years).

Recruitment and appointment of new trustees

The Company Trustee body is made up of not less than three co-opted trustees. Following the removal of nominating bodies one of the nominated trustees was retained as a co-opted trustee and the recruitment process was started to identify 2 new trustees with specialist knowledge and experience in the property and education fields.

Alistair Colston and Tim Withers joined the Board of Trustees in June 2022 and add strength to key areas as identified above. After serving the charity for 1 year Tim Withers resigned and Helen Donovan joined in September 2023.

When appointing co-opted Trustees, the Trustees must:

a. identify the needs of the charity regarding skills or knowledge of its Trustees; and

b. consider the extent to which appointees demonstrate the skills or knowledge; and

c. not appoint members of Bath and North East Somerset Council.

Of the co-opted Trustees, the Trustees must appoint at least one whose skills and knowledge include an ability to represent those groups of beneficiaries that use the recreation ground, other than Bath Rugby.

In appointing co-opted Trustees, the Trustees must have regard to the desirability of advertising or using trustee brokerage services. Candidates must be asked to consider and declare any existing or potential conflicts of interest before appointment.

At least three of the Trustees must be resident within 5 miles of Bath Abbey.

The Trustees are responsible for monitoring the ongoing risks facing the charitable company. The Trustees are satisfied that major risks have been reviewed and that systems and procedures appropriately established to manage those risks.

Key management remuneration

Trustees are not remunerated by the charity. Remuneration levels of the charitable company's key management are set in accordance with market rates and kept under review by the Trustees.

Events since the year end

Information relating to events since the end of the year is given in the notes to the financial statements.

Page 4

Bath Recreation Limited

Report of the Trustees for the Year Ended 31 March 2024

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Bath Recreation Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with 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".

Company law requires the trustees to prepare financial statements 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

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:

Page 5

Bath Recreation Limited

Report of the Trustees for the Year Ended 31 March 2024

AUDITORS

The auditors, Sumer Auditco Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 11 November 2024. and signed on its behalf by:

........................................................................ Jason Dalley - Trustee

Page 6

Report of the Independent Auditors to the Members of Bath Recreation Limited

Opinion

We have audited the financial statements of Bath Recreation Limited (the ‘parent charity’) and its subsidiary (‘the group’)for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern 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 uncertainties 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 responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which 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:

Page 7

Report of the Independent Auditors to the Members of Bath Recreation Limited

Responsibilities of trustees

As explained more fully in the Statement 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 the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and sector, we identified that the principal risks of non-compliance with laws and regulations related company and charity legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the charitable company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Statement of Recommended Practice and the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to potential lack of segregation of duties, bookkeeping errors and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included:

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 8

Report of the Independent Auditors to the Members of Bath Recreation Limited

Use of our report

This report is made solely to the 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 audit work, for this report, or for the opinions we have formed. - James Gare (Senior Statutory Auditor) for and on behalf of Sumer Auditco Limited Statutory Auditor Chartered Accountants County Gate County Way Trowbridge Wiltshire BA14 7FJ

Date: 20 November 2024

Page 9

Bath Recreation Limited

Consolidated Statement of Financial Activities
(Incorporating an Income and Expenditure Account)
for the Year Ended 31 March 2024
Unrestricted
Restricted
Endowment
fund
funds
fund
Notes
£
£
£
INCOME AND ENDOWMENTS
FROM
Donations and legacies
2
56,586
-
-
Charitable activities
4
Provision of recreational facilities
and supporting events consistent
with the charitable objects
Other trading activities – income
from subsidiary
416,537
117,014
-
-
Investment income
3
273,048
-
-
Total
863,185
-
-
EXPENDITURE ON
Fundraising
Raising funds – cost of running
subsidiary
41,684
-
-
Charitable activities
5
Provision of recreational facilities
and supporting events consistent
with the charitable objects
922,100
-
-
963,784
-
-
Net gains/(losses) on
investments
58,890
-
-
NET INCOME/(EXPENDITURE)
(41,709)
-
-
RECONCILIATION OF FUNDS
Total funds brought forward
2,941,015
-
6,080,953
TOTAL FUNDS CARRIED
FORWARD
2,899,306
-
6,080,953
Total
2024
Total
funds
£
56,586
416,537
117,014
273,048
863,185
41,684
922,100
963,784
58,890
(41,709)
9,021,968
8,980,259
2023
Total
funds
£
63,300
503,990
53,275
303,880
924,445
26,707
791,890
818,597
(84,964)
20,884
9,001,084
9,021,968

The notes form part of these financial statements

Page 10

Bath Recreation Limited (Registered number: 10735297)

Consolidated Balance Sheet Consolidated Balance Sheet
31 March 2024
2024 2023
Notes £ £
FIXED ASSETS
Intangible assets 12 Intangible assets 12 442,500- -
Tangible assets 13 3,763,612 3,712,421
Investments
Investments 14 1,193,287 1,116,880
Investment property 15 3,670,000 3,670,000
9,069,399 8,499,301
CURRENT ASSETS
Debtors 16 74,188 156,993
Cash at bank 329,644 536,559
403,832 693,552
CREDITORS
Amounts falling due within one year 17 (192,972) (170,885)
NET CURRENT ASSETS 210,860 552,667
TOTAL ASSETS LESS CURRENT LIABILITIES 9,280,259 9,021,968
CREDITORS
Amounts falling due after more than one year 18 (300,000) -
NET ASSETS 8,980,259 9,021,968
FUNDS 19
Unrestricted funds 2,499,306 2,941,015
Designated funds 400,000 -
Endowment funds 6,080,953 6,080,953
TOTAL FUNDS 8,980,259 9,021,968

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

The financial statements were approved by the Board of Trustees and authorised for issue on 11 November 2024 and were signed on its behalf by:

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.............................................
Jason Dalley - Trustee
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The notes form part of these financial statements

Page 11

Bath Recreation Limited (Registered number: 10735297)

Charity Balance Sheet
31 March 2024
2024 2023
Notes £ £
FIXED ASSETS
Intangible Assets 12 442,500 - 442,500 -
Tangible assets 13 3,763,612 3,712,421
Investments
Investments 14 1,193,288 1,116,881
Investment property 15 3,670,000 3,670,000
9,069,400 8,499,302
CURRENT ASSETS
Debtors 16 139,529 205,158
Cash at bank 228,855 482,603
368,384 687,761
CREDITORS
Amounts falling due within one year 17 (187,158) (166,663)
NET CURRENT ASSETS 181,226 521,098
TOTAL ASSETS LESS CURRENT LIABILITIES 9,250,626 9,020,400
CREDITORS
Amounts falling due after more than one year 18 (300,000) -
NET ASSETS 8,950,626 9,020,400
FUNDS 19
Unrestricted funds 2,469,673 2,939,447
Designated funds 400,000 -
Endowment funds 6,080,953 6,080,953
TOTAL FUNDS 8,950,626 9,020,400

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

The financial statements were approved by the Board of Trustees and authorised for issue on 11 November 2024 and were signed on its behalf by:

............................................. Jason Dalley - Trustee

The notes form part of these financial statements

Page 12

Bath Recreation Limited

Consolidated Cash Flow Statement
for the Year Ended 31 March 2024
2024
Notes
£
Cash flows from operating activities
Group cash generated from operations
22
425,967
Net group cash (used in)/provided by operating activities
425,967
Group cash flows from investing activities
Purchase of tangible fixed assets
(150,000)
Purchase of fixed asset investments (396,672)

Acquisition of trade
(450,000)
Sale of fixed asset investments
347,000
Investment fees charged
10,742
Interest received
6,048
Net group cash used in investing activities
(632,882)
Change in group cash and cash
equivalents in the reporting period
(206,915)
Group cash and cash equivalents at the
beginning of the reporting period
536,559
Group cash and cash equivalents at the
end of the reporting period
329,644
2023
£
52,228
52,228
(24,717)
(297,347)
-
274,144
10,770
1,966
(35,184)
17,044
519,515
536,559

The notes form part of these financial statements

Page 13

Bath Recreation Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES

Basis of preparing 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 Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 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, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Bath Recreation Limited as a charitable company established in England and Wales. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company. The address of the registered office is given in the reference and administrative details on page 1 of these financial statements. The nature of the charitable company's operations and principal activities are described in the Report of the Trustees.

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The functional currency of the charitable company, and the presentation currency of these financial statements is the pound sterling ("£").

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from approving these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Preparation of consolidated financial statements

The financial statements consolidate the results of the Charity and its wholly-owned subsidiary Bath Recreation (Trading) Limited both of which make up their financial statements to 31 March. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006.

Income

All income is recognised in the Statement of Financial Activities once the charitable company has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Fees and rental income receivable

Fees and rental income receivable are recognised in the Statement of Financial Activities in the period to which they relate. Where fee or rental income is received or receivable in advance of the period to which it relates, its recognition is deferred and included in creditors as deferred income.

Donations

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing.

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. Expenditure 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.

Page 14

continued...

Bath Recreation Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES - continued

Intangible fixed assets

Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is 10 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings - Nil Glasshouse building - 2% on straight line basis Improvements to property - 10% on reducing balance Machinery and equipment - 25% on reducing balance Motor vehicles - 25% on reducing balance

No depreciation is charged on land. Assets costing over £250 are capitalised.

Investments

Listed investments are included in the balance sheet at fair value (their market value).

The realised and unrealised gains on investments are reflected in the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value as the period end and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the statement of financial activities.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Taxation

The charitable company is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charitable company. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

The charitable company has a single permanent endowment which represents the land and buildings of the Bath Recreation Ground. As described in Note 23, the recreation ground is held by a linked charity

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Linked charities

Branch accounting has been adopted for the linked unincorporated charitable trust, see Note 24.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Debtors

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

Cash at bank

Cash at bank includes cash and short term highly liquid investments with a short 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.

Page 15

continued...

Bath Recreation Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES - continued

Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transition value and subsequently measured at their settlement value.

Debtors

Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The charitable company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant impact on the carrying amounts of assets and liabilities within the next financial year are:

Critical areas of judgement

The charitable company includes its investment property at an estimated value of £3.67m. In the absence of an intention to sell and a committed buyer, this figure is a matter of judgement for the Trustees in consultation with their professional advisers.

2. DONATIONS AND LEGACIES

Other donations
3.
INVESTMENT INCOME
Rent from Bath & North East Somerset Council
Dividend income
Deposit account interest
Other interest receivable
4.
INCOME FROM CHARITABLE ACTIVITIES
2024
£
56,586
2024
£
238,742
28,258
6,048
-
273,048
2023
£
63,300
2023
£
278,711
23,020
1,966
183
303,880
2024
Provision
of
recreational
facilities
and
supporting
events
consistent
with the
charitable
£
Bath Rugby
246,670
Other income
140,667
Grants
29,200
416,537
2023
Total
activities
£
294,649
178,316
31,025
503,990

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Bath Recreation Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

4. INCOME FROM CHARITABLE ACTIVITIES – continued

Rental income

The charity has the following amounts of rent due to it under operating lease agreements with various tenants at the Recreation Ground site:

Due within two and five Due in more than Due in more than Due in more than
Due within one year years five years
Rental income due 416,294 944,067 8,318,944
5. CHARITABLE ACTIVITIES COSTS
Support
Direct costs (see
Costs note 6) Totals
£ £ £
Provision of recreational facilities and
supporting events consistent with the 820,247 101,853 922,100
charitable objects
6. SUPPORT COSTS
Governance
Other costs Totals
£ £ £
Provision of recreational facilities and
supporting events consistent with the 27,778 74,075 101,853
charitable objects
7. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2024 2023
£ £
Depreciation - owned assets 98,812 100,154
Goodwill amortisation 7,500 -
8. AUDITORS' REMUNERATION
2024 2023
£ £
Fees payable to the charity's auditors for the audit of the charity's financial
statements 13,300 11,000
Fees payable to the charity's auditors for other services:
Accounts, VAT advice and payroll 745 3,750
Total audit fees 14,045 14,750

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no other trustees' remuneration or benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.

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Bath Recreation Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

9. TRUSTEES' REMUNERATION AND BENEFITS - continued

Trustees' expenses

During the year reimbursed expenses totalling £1,016 (2023: £765) were paid to five (2023: five) trustees for travel and training.

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
2024
£
310,144
25,209
7,614
342,967
2023
£
233,649
19,682
5,196
258,527

Included in wages and salaries are redundancy payments amounting to £nil (2023 - £nil).

The average monthly number of employees during the year was as follows:

Management and administration
Ground management
2024
3
7
10
2023
1
7
8

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2024 2023
£70,001 - £80,000 - 1
£80,001 - £90,000 1 -

The key management personnel of the charity comprise the trustees and the Chief Executive, to whom responsibility for the day-to-day activities of the charity is delegated. The total employee benefits received by key management personnel during the year were £89,785 (2023: £79,593).

11. COMPARATIVES FOR THE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Provision of recreational facilities and
supporting events consistent with the
charitable objects
Other trading activities – Income from
subsidiary
Investment income
Total
EXPENDITURE ON
Charitable activities
Provision of recreational facilities and
supporting events consistent with the
charitable objects
Raising funds – cost of running Subsidiary
Net gains / (Losses) on investments
Unrestricted
fund
£
63,300
503,990
53,275
303,879
924,445
791,890
26,707
(84,964)
Restricted
funds
£
-
-
-
-
-
-
-
-
Endowment
fund
£
-
-
-
-
-
-
-
Total
funds
£
63,300
503,990
53,275
303,879
924,445
791,890
26,707
(84,964)

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Bath Recreation Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

11. COMPARATIVES FOR THE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES - continued

NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
12.
INTANGIBLE FIXED ASSETS
CHARITY AND GROUP
COST
Additions
AMORTISATION
Charge for year
NET BOOK VALUE
At 31 March 2024
At 31 March 2023
Unrestricted
fund
£
20,884
2,920,131
2,941,015
Restricted
funds
£
-
-
-
Endowment
fund
£
-
6,080,953
6,080,953
Total
funds
£
20,884
9,001,084
9,021,968
Goodwill
£
450,000
7,500
442,500
-

Goodwill has arisen on the acquisition of Capital Projects. The charity has adopted amortisation over 10 years.

13.
TANGIBLE FIXED ASSETS
CHARITY AND GROUP
COST
At 1 April 2023
Additions
At 31 March 2024
DEPRECIATION
At 1 April 2023
Charge for year
Eliminated on disposal
At 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023
Land and
buildings
£
2,410,953
-
2,410,953
-
-
-
-
2,410,953
2,410,953
Glasshouse
building
£
745,441
-
745,441
31,041
14,908
-
45,949
699,492
714,400
Improvement
to
property
£
869,013
-
869,013
408,261
46,075
-
454,336
414,677
460,752

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continued...

Bath Recreation Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

13. TANGIBLE FIXED ASSETS - continued

COST
At 1 April 2023
Additions
At 31 March 2024
DEPRECIATION
At 1 April 2023
Charge for year
Eliminated on disposal
At 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023
Machinery
and
equipment
£
323,439
45,000
368,439
197,123
33,451
-
230,574
137,863
126,316
Motor
vehicles
£
-
105,000
105,000
-
4,375
-
4,375
100,625
-
Totals
£
4,348,846
150,000
4,498,846
636,425
98,809
-
735,234
3,763,612
3,712,421

Land and buildings represent the Bath Recreation Grounds and the main fabric of the various outbuildings erected on the land between 1894 and 1954. Land is not depreciated and the main fabric of these outbuildings is deemed to have an indefinite useful life and are therefore not depreciated either.

Impairment is considered periodically and commercial valuations are obtained to facilitate this. The latest valuation was obtained from Carter Jonas as at 31 March 2022.

The Land and buildings of the Bath Recreation Ground are held by a linked charity - The Bath Recreation Ground Trust.

Improvement to properties represents the conversion of an outbuilding to become the charity's office, creation of changing facilities and other building improvements. These improvements have a limited useful life and are depreciated over 10 years.

The freehold of a park off Broadmoor Lane, Bath currently generates no rental income yet incurs annual maintenance costs. Given that the land does not produce a yield to the charitable company, nor has any resale value, the Trustees have decided not to value the land in its financial statements.

The leasehold of the Glasshouse playing fields does not generate a significant surplus. Given that the land does not produce a net yield to the charitable company, nor has any resale value, the trustees have decided not to value the land in its financial statements.

Page 20

continued...

Bath Recreation Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

14. FIXED ASSET INVESTMENTS

Group

MARKET VALUE
At 1 April 2023
Additions
Disposals
Revaluations
Investment management charges
At 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023
Charity
MARKET VALUE
At 1 April 2023
Additions
Disposals
Revaluations
Investment management charges
At 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023
There were no investment assets outside the UK.
Cost or valuation at 31 March 2024 is represented by:
Valuation in 2024
Investment
portfolio
£
1,116,880
396,672
(347,000)
37,477
(10,742)
1,193,287
1,193,287
1,116,880
Shares in
group
undertakings
£
1
-
-
-
-
1
1
1
Shares in
group
undertakings
£
1
Totals
£
1,116,880
396,672
(347,000)
37,477
(10,742)
1,193,287
1,193,287
1,116,880
Investment
portfolio
£
1,116,880
396,672
(347,000)
37,477
(10,742)
1,193,287
1,193,287
1,116,880
Investment
portfolio
£
1,193,287
Totals
£
1,116,881
396,672
(347,000)
37,477
(10,742)
1,193,288
1,193,288
1,116,881
Totals
£
1,193,288

The company's investments at the balance sheet date in the share capital of companies include the following:

The charity has a wholly owned trading subsidiary, Bath Recreation (Trading) Limited, company number 13553734. The company is incorporated in the United Kingdom and its registered office is Bath Recreation Ground, Pulteney Mews, Bath, England, BA2 4DS. The company was incorporated on 6 August 2021 and did trade during the period from 31 March 2023 to 31 March 2024. Note 26 provides further information on the activities of the subsidiary.

The investment portfolio consists of £1,156,494 listed investments and £36,793 cash balance.

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Bath Recreation Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

15.
INVESTMENT PROPERTY
Group and Charity
FAIR VALUE
At 1 April 2023
and 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023
£
3,670,000
3,670,000
3,670,000

The investment property built on the Bath Recreation Ground is held by a linked charity - the Bath Recreation Ground Trust.

Bath Sports & Leisure Centre became part of the Trust's assets following a decision of the Charity Tribunal in March 2014 which was reflected in an order of the Tribunal in April 2014. Attached to the asset is an obligation to demolish the building when it becomes life expired. It was not possible to recognise the value of the Sports and Leisure Centre fully until agreement was reached with Bath and North East Somerset Council on how the leisure centre would be used. The Trust have negotiated a lease and other arrangements with Bath and North East Somerset Council which resulted in Bath and North East Somerset Council paying substantial rent to the Trust from 1 April 2014 and assuming the obligation to demolish. The lease and ancillary documents were completed on 22 July 2016 and the full valuation including the Sports and Leisure Centre was included in the year ended 31 March 2018.

The £3,670,000 valuation of the land and buildings as at 31 March 2022 is based on an independent report prepared by Carter Jonas. The Trustees will take professional advice on the carrying amount of the investment property every five years.

Fair value at 31 March 2024 is represented by:

Fair value at 31 March 2024 is represented by:
Valuation in 2017
Valuation in 2022
£
1,700,000
1,970,000
3,670,000

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2024
£
Trade debtors
28,736
Amounts owed by group undertakings
-
Other debtors
499
Prepayments and accrued income
44,953
74,188
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
2024
£
Trade creditors
48,342
Social security and other taxes
VAT
Accruals and deferred income
13,824
20,251
110,555
192,972
2023
£
7,927
-
499
148,567
156,993
2023
£
22,382
12,593
16,982
118,928
170,885
Charity
2024
£
10,111
83,966
499
44,953
139,529
Charity
2024
£
47,293
13,824
15,486
110,555
187,158
2023
£
3,061
53,031
499
148,567
205,158
2023
£
21,834
12,593
13,308
118,928
166,663

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Deferred income at 31 March 2024 of £97,589 (2023: £87,200) represents income invoiced in advance.

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continued...

Bath Recreation Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

18.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
Deferred consideration
19.
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Group
Unrestricted
Restricted
fund
funds
£
£
Fixed assets
1,795,159
-
Investments
1,193,287
-
Current assets
403,832
-
Current liabilities
(492,972)
-
2,899,306
-
20.
MOVEMENT IN FUNDS
Group and Charity
Unrestricted funds
General fund
Designated funds – Capital Projects
Endowment funds
Bath Recreation Ground
FUNDS OF CHARITY
Funds of subsidiary company
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Incoming
resources
in funds
£
Unrestricted funds
General fund
746,171
Designated funds – Capital Projects
-
TOTAL FUNDS
746,171
ONE YEAR
2024
2023
£
£
300,000
-
2024
2023
Endowment
Total
Total
fund
funds
funds
£
£
£
2,410,953
4,206,112
3,712,421
3,670,000
4,863,287
4,786,880
-
403,832
693,552
-
(492,972)
(170,885)
6,080,953
8,980,259
9,021,968
Net
movement
At
At 1.4.23
in funds
31.3.24
£
£
£
2,939,446
(469,773)
2,469,673
-
400,000
400,000
6,080,953
-
6,080,953
9,020,399
(69,773)
8,950,626
1,569
28,064
29,633
9,021,968
(41,709)
8,980,259
Resources
Gains and
Movement
expended losses / Transfers
£
£
£
(874,834)
(341,110)
(469,773)
-
400,000
400,000
(874,834)
58,890
(69,773)

Page 23

continued...

Bath Recreation Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

20. Comparatives for movement in funds - continued

Unrestricted funds
General fund
Endowment funds
Bath Recreation Ground
FUNDS OF CHARITY
Funds of subsidiary company
TOTAL FUNDS
Comparative net movement in funds, included in
Unrestricted funds
General fund
Endowment funds
Bath Recreation Ground
TOTAL FUNDS
At 1.4.22
£
2,920,131
6,080,953
9,001,084
1
9,001,085
the above are as follows:
Incoming
Resources
resources
expended
£
£
896,169
(791,890)
-
-
896,169
(791,890)
Net
movement
in funds
£
19,315
-
19,315
1,568
20,883
Gains and
losses
£
(84,964)
-
(84,964)
At
31.3.23
£
2,939,446
6,080,953
9,020,399
1,569
9,021,968
Movement
in funds
£
19,315
19,315

Bath Recreation Ground

This endowment fund represents the valuation of the land and buildings known as The Recreation Ground and the Sports Centre built upon it.

Page 24

continued...

Bath Recreation Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

21. RELATED PARTY DISCLOSURES

During the year wages of £4,080 (2023: £5,760) were paid to H Flinn, the son of the Chief Executive Officer J Flinn.

22. ULTIMATE CONTROLLING PARTY

There is no ultimate controlling party of the charity.

23. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
2024 2023
£ £
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities) (41,709) 20,884
Adjustments for:
Depreciation charges 98,809 100,154
Amortisation charges 7,500
Losses/(gain) on investments (37,477) 84,964
Loss on disposal of fixed assets - -
Interest received (6,048) (1,966)
(Increase)/decrease in debtors 82,805 (144,498)
(Decrease)/increase in creditors 322,087 (7,310)
Net cash (used in)/provided by operations 425,967 52,228
ANALYSIS OF CHANGES IN NET FUNDS
Group
At 1.4.23 Cash flow At 31.3.24
£ £ £
Net cash
Cash at bank 536,559 (206,915) 329,644
Charity
At 1.4.23 Cash flow At 31.3.24
£ £ £
Net cash
Cash at bank 482,603 (253,748) 228,855

24. ANALYSIS OF CHANGES IN NET FUNDS

Page 25

Bath Recreation Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

25. CORPORATE STRUCTURE AND LINKED CHARITY

The charitable company is an incorporated charity (the new charity), previously its activities were administered through the Bath Recreation Ground Trust (the old trust). The new charity was incorporated on 21 April 2017, but had no activities or transactions until 1 January 2018 when it took over the old trust's assets and operations, with the exception of the Bath Recreation Ground itself. Under trust law the land of the Recreation Ground cannot be held directly by the Charitable Company. Under a scheme agreed with the Charity Commission, from 1 January 2018, the new charity became the sole Trustee of old trust and the old trust became a linked charity to Bath Recreation Limited (linked charity number 1173521-1) and the assets and activities are included in these accounts under the rules of branch accounting.

26.

SUBSIDIARY COMPANY

The charity has a wholly owned trading subsidiary, Bath Recreation (Trading) Limited, company number 13553734. The company is incorporated in the United Kingdom and its registered office is Bath Recreation Ground, Pulteney Mews, Bath, England, BA2 4DS. The company was incorporated on 6 August 2021 and did trade during the period from 31 March 2023 to 31 March 2024. The company donates all its taxable profits to Bath Recreation.

A summary of the financial performance of the subsidiary is shown below:

Turnover
Expenditure
Profit for the financial period
The assets and liabilities of the company were:
Current assets
Current liabilities
Long term liabilities
Net current assets
Reserves
Share capital
Net current assets
2024
£
117,014
(88,950)
28,064
2024
£
119,413
(89,780)
-
29,633
29,632
1
29,633
2023
£
53,275
(51,707)
1,568
2023
£
58,822
(57,253)
-
1,569
1,568
1
1,569

27. Financial results of the charity

The gross income for the year of the charity alone is £793,437 (2023: £896,170) and the deficit for the year of the charity alone is £72,535 (2023: £104,279 surplus).

Page 26