COMPANY REGISTRATION NUMBER: 10076004
CHARITY REGISTRATION NUMBER: 1174371
Leisure United
Company Limited by Guarantee Financial statements
31 March 2023
Leisure United
Company Limited by Guarantee
Financial statements
Year ended 31 March 2023
| Page | |
|---|---|
| Trustees' annual report (incorporating the directors' report) | 1 |
| Independent auditor's report to the members | 10 |
| Statement of financial activities (including income and expenditure account) | 14 |
| Balance sheet | 15 |
| Statement of cash flows | 16 |
| Notes to the financial statements | 17 |
Leisure United
Company Limited by Guarantee
Trustees' annual report (incorporating the directors' report)
Year ended 31 March 2023
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.
Reference and administrative details
Registered charity name Leisure United Charity registration number 1174371 Company registration number 10076004 Principal office and registered SGP Graves office Bochum Parkway Sheffield S8 8JR
The trustees
The trustees who served during the year and at the date of approval were as follows:
Mr D J Gallagher (Chairman) Mrs S Wakefield (Vice Chair) Mr S Ardley Mr S Everett Company secretary Muckle Secretary Limited Managing Director Mrs M Crossland Auditor Lovewell Blake LLP Chartered accountants & statutory auditor Bankside 300 Peachman Way Broadland Business Park Norwich NR7 0LB Bankers National Westminster Bank Plc 53 London Road North Lowestoft Suffolk NR32 1BJ
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Leisure United
Company Limited by Guarantee
Trustees' annual report (incorporating the directors' report) (continued)
Year ended 31 March 2023
Objectives and activities
The objectives of the charity are:
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To provide or assist in the provision of facilities in the interest of social welfare for recreation or other leisure time occupation for the public at large or for individuals who have need of such facilities by reason of their youth, age, infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life;
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The promotion of community participation in healthy recreation.
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To advance the education and training (both academic and vocational) of the public and in particular (but not limited to) young people from the age of 16 in the subject of sports, sports management and related subjects, with a particular focus (but not limited to) football.
The objectives of the charity are fulfilled through the management of leisure and football facilities throughout the UK on behalf of public and private sector organisations.
Public benefit
The trustees have taken due regard to the guidance published by the Charity Commission on public benefit. It is considered that the charity provides a public benefit through it vision to provide first class leisure facilities, which are accessible and affordable for the whole community.
Our pledge
To ensure affordable, accessible, engaging facilities for all. For the facilities to be operated efficiently ensuring first class presentation throughout contract term. To reinvest surplus profits to further develop a sustainable football and fitness offer.
Our vision
To bring together communities for football, fitness, social and education.
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Leisure United
Company Limited by Guarantee
Trustees' annual report (incorporating the directors' report) (continued)
Year ended 31 March 2023
Achievements and performance
With the impacts of Covid 19 now receding Leisure United had another strong year, which has seen continued growth in its portfolio.
The continued roll out of the Football Foundations 'Hubs Programme" has seen the opening of two additional sites in Newcastle being Blakelaw Park and Bullocksteads. These are alongside the existing sites in Sheffield, Liverpool, Sunderland and temporary arrangements at Woodburn Road in Sheffield and Wednesbury in Sandwell both part year operational management.
Firm commitments to contracts and long-term operational agreements are all agreed in principle and are in the final process of completion. Improved terms and conditions have been secured, compared to the previous arrangements that were in place prior to the Covid 19 pandemic.
Since starting in 2016 Leisure United has recorded user registrations in excess of 360,000 and visits of 4.6million plus.
This winter season has been impacted by adverse weather from mid-December interrupting Football, Food and Beverage and Education across the LU estate for almost two weeks.
Whilst the closures due to the adverse weather impacted December's income numbers the teams on site were able to reschedule many of the Football bookings to January. Resulting in a small amount of refunds being processed due to the closures.
Alongside the thriving Football programme, Gym participation numbers have continued to show a growing trend and Food and Beverage continues to perform strongly.
With most of its reserve now in place for the sites that have been operating in previous years, a healthy cashflow evident and an agreement from its partners to support the opening resource requirements, as new sites come online and start to operations, Leisure United is on a sound financial footing.
Plans are also in place to replace well used, old and outdated equipment within the portfolio, new branding and the development of a new website, plus improvements to the front of house management software system, will support the retention and growth of the charity.
Leisure United has continued its positive working relationships with its parent company, The National Football Trust (NFT) which draws trustee representation from the Football Association, Sport England, and the Premier League.
The Football Foundation remains as a key working partner alongside the Leisure United Executive team. Strong governance is in place across the board, with good communication and strategic vision. Leisure United is working closely with the NFT to develop its inaugural 4-year Strategy which is expected to launch in April 2024, the strategy will focus on making sure each Hub site is reflective of its local community, ensuring everyone has equal and affordable access.
The Central Head Office Team continues to develop, with additional accountancy and retail support added during the year, further development to support projects, training and development, plus the management of operations are on track to be implemented during 23/24, this will support the next phase of site openings and development needs of a growing organisation. The Football Foundation will provide additional support that will add to our combined executive resource and delivery of new facilities, whilst we ensure progress and relationships are maintained within the existing operating hubs.
The Leisure United board has retained a stable membership and continued with its committee function and monthly Executive briefing throughout the year, meeting as a board on a quarterly basis and sharing all reporting information to ensure good governance is retained.
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Leisure United
Company Limited by Guarantee
Trustees' annual report (incorporating the directors' report) (continued)
Year ended 31 March 2023
Achievements and performance (continued)
During the year Leisure United provided a temporary management function at Phoenix Collegiate's (PC) Friar Park site in Sandwell. The 6-month operating period that was agreed with NFT Trustees and was extended to October 2023, whilst a long-term solution can be evaluated, if successful this will be added to the portfolio.
Financial review
The results for the year are shown on pages 14 to 28.
Income continued to increase during the year as a result of the continued expansion of the charity leading to an overall increase in income of 7% with charitable activity income increasing from £3,967k to £4,060k and trading income increasing from £1,145k to £1,529k.
With the increase in activity expenditure for the year also increased, however by a greater percentage level to that of income at 24% mostly due to an increase in wages and repairs. Despite this the charity achieved a significant surplus.
Overall movements in the charity's balance sheet were insignificant with largest increase being cash at bank which rose from £1,611k to £2,137k.
Reserves policy
The current reserves policy has been set at six months of the operational requirement of each facility, this has been based on closure costs similar to those experienced under Covid 19 and without the ability to receive income and attract funding such as government grants. An appropriate budget has been set for each facility and regional cluster, this forms part of all contractual negotiations moving forward and to date had been accepted in principle by all parties. However, with the projected growth and security of Leisure United more of a certainty the policy has been reviewed, as part of NFT discussions consideration has been given to not only retain a reserve at an acceptable level (now estimated as six months of people costs in each region) but also to look to secure additional accounts that can earn some interest whilst ensuring that there is a mechanism where the funds can be readily transferred if required, in times of need. Amounts held in account and available to LU will be reviewed quarterly to ensure the best possible financial outcome is achieved.
Moving forwards, from October 2023 and following each annual audit, LU will review any outstanding surplus above the agreed reserves level for each hub city then allocate this to either a fixed term product account or a notice account depending on NFT and LU requirements and preference. To ensure sufficient reserves are assigned to each city LU will review the amount allocated to each hub on an annually basis. The review will focus on ensuring any new leases agreements are included and that the people costs are increased in line with LU annual pay review.
At 31 March 2023 the charity had free reserves of £1,725,440 (2022: £1,376,922).
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Leisure United
Company Limited by Guarantee
Trustees' annual report (incorporating the directors' report) (continued)
Year ended 31 March 2023
Plans for future periods
Facility Development Programme
Moving forward it is expected that further sites will come online over the next two years, those already under construction at Wigan - where two Hubs were opened in August 2023.
Parloes Park, in Barking and Dagenham, will open November 2023, with the refurbished Woodbourn Road, Sheffield scheduled to be open the same week.
Derby Racecourse Hub, construction is underway and almost complete. The scheme comprises four new full-size 3G pitches and the extension of an existing changing pavilion to create a new 'front of house' featuring a reception, community café, education rooms and toilet facilities to be opened in February 2024. Subject to funding approvals construction of a new Hub in Wealden is expected to get underway in Summer 2024 - featuring two full-size 3G pitches alongside outdoor netball, tennis and padel courts.
The Football Foundation is in the process of receiving final funding applications from Leeds City Council for each of its three Hub projects. Each project comprises of three full-size 3G pitches supported off the pitch with four-team changing rooms, café and meeting space, the Matthew Murray facility also includes a GP Surgery, Pharmacy and health and fitness club. The three projects are the last of the near pipeline of Hubs at full application stage. These should all come on-line in 2024/25.
Additional sites currently under consideration for 2025 and beyond, include Bradford, Sandwell, and Stockton. Possible sites in Manchester, Redbridge and Thurrock are in the early stages of the evaluation process.
Structure, governance and management
Governing document
Leisure United was constituted as a company in March 2016. The company achieved charitable registration in August 2017. The memorandum and articles of association were amended in October 2021.
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Leisure United
Company Limited by Guarantee
Trustees' annual report (incorporating the directors' report) (continued)
Year ended 31 March 2023
Structure, governance and management (continued)
Recruitment and appointment of trustees
Trustees shall be persons who through residence, occupation, employment or otherwise have a special knowledge of the area of benefit or who are otherwise able, by virtue of their personal or professional qualifications, to make a contribution to the pursuit of the objectives of the charity.
Trustees are directors of the company for the purposes of company law. The number of Trustees shall be a minimum of three and a maximum of six.
Trustees who held office throughout the period are as listed on page 1.
Trustee training and induction
On appointment the Trustees are provided with:
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The charity's Memorandum and Articles of Association
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Key roles in the organisational structure
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Trustee person specification
In addition, Trustees are encouraged to read Charity Commission and other newsletters, and to attend courses designed to keep them abreast of their duties and responsibilities.
Key management remuneration policy
The trustees set the salary of the management team in line with industry expectations. These salaries are reviewed yearly by the trustees.
Risk assessment
The trustees acknowledge the Charity Commission's recommendation for them to undertake a review of the major risks to which the charity is exposed. The Trustees have undertaken a full risk assessment during the year and as a result the Trustees have identified the following risks to the charity:
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Financial Planning/Management
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Pipeline hubs being delayed
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Lack of resource to operate the trust effectively
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Systems/data are compromised by cyber attacks
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Increase in energy costs
The Trustees are satisfied that there are systems in place or being developed effectively to mitigate those risks.
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Leisure United
Company Limited by Guarantee
Trustees' annual report (incorporating the directors' report) (continued)
Year ended 31 March 2023
Structure, governance and management (continued)
Organisational structure
The charity has a board of trustees who meet regularly, on a formal and informal basis, during the year and are responsible for the strategic direction and policy of the charity. Leisure United has one place on the board of its parent charitable company The National Football Trust and frequent discussions take place, mostly through the Partnership Board and its members, as a vehicle to track progress and monitor the operations and rollout of the football hubs programme.
Leisure United established a committee function, created by the main board of trustees to provide additional detailed scrutiny and overall corporate direction. It can make timely decisions which has been invaluable during an exceptional year, where both the impacts of Covid 19 and significant growth possibilities have required greater business focus. This structure fits neatly into the Executive Partnership Board where clear reporting lines and responsibilities have been established.
The management of the charity is delegated to Managing Director and Executive Team.
The Executive Team is headed by the Managing Director, Director of Operations and Executive Consultant. They are supported directly by two senior managers Head of Finance and Head of Business Systems. The executive and senior managers are further supported by a central head office team which includes: HR and Payroll Manager, Management Accountant, Learning and Content Manager, National Operations Manager and Group Retail Manager (formerly National Partnership Manager).
Each facility is supervised by a General Manager on a day to day basis, they are supported by an Assistant Manager and Duty Manager, plus a range of ancillary staff that provide support for all the activities and operational aspects of the football and fitness hubs.
Governance arrangements that were put in place with the Football Foundation have established further resilience and overall expertise to manage the existing provision and review future opportunities.
Related parties
The Trust received administration and management support from SLT Enterprises Limited in the prior year. SLT Enterprises Limited is part of the SLT Group, of which Mr S Ardley is a Trustee. The Trust also receives management consultancy from DGEMS Ltd of which Mr D Gallagher is a Director and SQ1 Management of which Warren Ormerod is a Director.
Leisure United has a single representative on the board of The National Football Trust (NFT) which supports community facilities through facility development throughout the UK.
A board meeting was held on 8 October 2021 that voted to become a member of the NFT. As a consequence Leisure United has become the operational arm of NFT and is now a subsidiary company of NFT.
Any related party transactions are disclosed as required in the notes to these financial statements.
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Leisure United
Company Limited by Guarantee
Trustees' annual report (incorporating the directors' report) (continued)
Year ended 31 March 2023
Trustees' responsibilities statement
The trustees (who are also directors for the purposes 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. Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
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they have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
Small company provisions
This report has been prepared taking advantage of the small companies' exemption of section 415A of the Companies Act 2006.
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Leisure United
Company Limited by Guarantee
Trustees' annual report (incorporating the directors' report) (continued)
Year ended 31 March 2023
The trustees' annual report was approved on 28 November 2023 and signed on behalf of the board of trustees by:
Mr D J Gallagher (Chairman) Trustee
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Leisure United
Company Limited by Guarantee
Independent auditor's report to the members of Leisure United
Year ended 31 March 2023
Opinion
We have audited the financial statements of Leisure United (the 'charity') for the year ended 31 March 2023 which comprise the statement of financial activities (including income and expenditure account), balance sheet, statement of cash flows and the related notes, 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity'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.
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Leisure United
Company Limited by Guarantee
Independent auditor's report to the members of Leisure United (continued)
Year ended 31 March 2023
Other information
The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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:
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the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.
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Leisure United
Company Limited by Guarantee
Independent auditor's report to the members of Leisure United (continued)
Year ended 31 March 2023
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor’s report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Enquiry of management and those charged with governance to confirm there are no instances of fraud or non-compliance with laws and regulations.
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Review of key accounting estimates, to ensure reasonable and no signs of management bias.
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Review of disclosures within the financial statements and vouching these to supporting documentation to ensure compliance with applicable laws and regulations.
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Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of activities and reviewing accounts estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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Leisure United
Company Limited by Guarantee
Independent auditor's report to the members of Leisure United (continued)
Year ended 31 March 2023
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 auditor’s report.
Use of our report
This report is made solely to the charity'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 charity's members those matters we are required to state to them in an auditor's 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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mark Proctor FCA DchA (Senior Statutory Auditor)
For and on behalf of Lovewell Blake LLP Chartered accountants & statutory auditor Bankside 300 Peachman Way Broadland Business Park Norwich NR7 0LB
20 December 2023
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Leisure United
Company Limited by Guarantee
Statement of financial activities (including income and expenditure account)
Year ended 31 March 2023
| 2023 | 2023 | 2022 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Charitable activities | 5 | 4,059,799 | 4,059,799 | 3,967,083 |
| Other trading activities | 6 | 1,529,602 | 1,529,602 | 1,145,238 |
| Other income | 7 | 17,191 | 17,191 | 124,243 |
|
|
|
||
| Total income | 5,606,592 | 5,606,592 | 5,236,564 | |
|
|
|
||
| Expenditure | ||||
| Raising funds | ||||
| Costs of other trading activities | 8 | (744,998) | (744,998) | (455,799) |
| Charitable activities | 9 | (4,369,513) | (4,369,513) | (3,648,925) |
| Other expenditure | 10 | – | – | (14,316) |
|
|
|
||
| Total expenditure | (5,114,511) | (5,114,511) | (4,119,040) | |
|
|
|
||
| Net income before transfer of funds | 492,081 | 492,081 | 1,117,524 | |
| Surplus transfer to parent | 15 | (10,000) | (10,000) | – |
|
|
|
||
| Net movement in funds | 482,081 | 482,081 | 1,117,524 | |
| Reconciliation of funds | ||||
| Total funds brought forward | 1,376,923 | 1,376,923 | 259,399 | |
|
|
|
||
| Total funds carried forward | 1,859,004 | 1,859,004 | 1,376,923 | |
|
|
|
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 17 to 28 form part of these financial statements.
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Leisure United
Company Limited by Guarantee
Balance sheet
31 March 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | £ | £ | |
| Fixed assets | |||||
| Intangible assets | 16 | 96,415 | – | ||
| Tangible fixed assets | 17 | 37,148 | – | ||
| Investments | 18 | 1 | 1 | ||
|
|
||||
| 133,564 | 1 | ||||
| Current assets | |||||
| Stocks | 19 | 38,211 | 7,757 | ||
| Debtors | 20 | 143,768 | 127,800 | ||
| Cash at bank and in hand | 2,137,443 | 1,611,458 | |||
|
|
||||
| 2,319,422 | 1,747,015 | ||||
| Creditors: Amounts falling due within | |||||
| one year | 21 | (593,982) | (370,093) | ||
|
|
||||
| Net current assets | 1,725,440 | 1,376,922 | |||
|
|
||||
| Total assets less current liabilities | 1,859,004 | 1,376,923 | |||
|
|
||||
| Funds of the charity | |||||
| Unrestricted funds | 1,859,004 | 1,376,923 | |||
|
|
||||
| Total charity funds | 22 | 1,859,004 | 1,376,923 | ||
|
|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
These financial statements were approved by the board of trustees and authorised for issue on 28 November 2023, and are signed on behalf of the board by:
Mr D J Gallagher (Chairman) Trustee
Company registration number: 10076004
The notes on pages 17 to 28 form part of these financial statements.
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Leisure United
Company Limited by Guarantee
Statement of cash flows
Year ended 31 March 2023
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net income | 492,081 | 1,117,524 |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 3,078 | 10,079 |
| Interest payable and similar charges | 119,958 | 94,578 |
| Loss on disposal of tangible fixed assets | – | 14,316 |
| Transfer to parent | (10,000) | – |
| Changes in: | ||
| Stocks | (30,454) | (3,872) |
| Trade and other debtors | (15,968) | (55,217) |
| Trade and other creditors | 226,454 | 88,352 |
|
|
|
| Cash generated from operations | 785,149 | 1,265,760 |
| Interest paid | (119,958) | (94,578) |
|
|
|
| Net cash from operating activities | 665,191 | 1,171,182 |
|
|
|
| Cash flows from investing activities | ||
| Purchase of tangible assets | (40,226) | – |
| Purchase of intangible assets | (96,415) | – |
|
|
|
| Net cash used in investing activities | (136,641) | – |
|
|
|
| Cash flows from financing activities | ||
| Proceeds from loans from group undertakings | (2,565) | – |
|
|
|
| Net cash used in financing activities | (2,565) | – |
|
|
|
| Net increase in cash and cash equivalents | 525,985 | 1,171,182 |
| Cash and cash equivalents at beginning of year | 1,611,458 | 440,276 |
|
|
|
| Cash and cash equivalents at end of year | 2,137,443 |
1,611,458 |
The notes on pages 17 to 28 form part of these financial statements.
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Leisure United
Company Limited by Guarantee
Notes to the financial statements
Year ended 31 March 2023
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is SGP Graves, Bochum Parkway, Sheffield, S8 8JR.
2. Statement of compliance
The charity constitutes a public benefit entity as defined by FRS 102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
3. Accounting policies
(a) Basis of preparation
The financial statements have been prepared on the historical cost basis.
The financial statements are prepared in sterling, which is the functional currency of the entity.
(b) 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 the 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity be to able to continue as a going concern.
The charity's reserves have continued to increase following the year end and trading throughout the 2023/24 season is anticipated to be strong.
(c) Consolidation
The charity is not required to prepare consolidated accounts in accordance with the Charities Act 2011, and has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the charity and its subsidiary undertakings comprise a small group.
(d) Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
- 17 -
Leisure United
Company Limited by Guarantee
Notes to the financial statements (continued)
Year ended 31 March 2023
3. Accounting policies (continued)
(e) Income
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
-
Income from trading activities includes income earned from activities to raise funds for the charity and is recognised when entitlement has occurred.
-
Income from charitable activities includes income earned from charitable activities and is recognised when entitlement has occurred.
-
Income from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.
(f) Expenditure
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
-
Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
-
Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
-
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
(g) Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.
(h) Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
(i) Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Equipment - 33% straight line Motor vehicles - 33% straight line
- 18 -
Leisure United
Company Limited by Guarantee
Notes to the financial statements (continued)
Year ended 31 March 2023
3. Accounting policies (continued)
(j) Investments
Unlisted investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
(k) Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
(l) Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
4. Limited by guarantee
The Company is limited by guarantee. In the event of winding up, each member is liable to contribute a sum not exceeding £1.
5. Charitable activities
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Pitch income | 2,955,832 | 2,955,832 | 2,830,259 | 2,830,259 |
| Education income | 302,334 | 302,334 | 251,067 | 251,067 |
| Gym memberships | 801,633 | 801,633 | 601,141 | 601,141 |
| Grants from government or public bodies | – | – | 284,616 | 284,616 |
|
|
|
|
|
| 4,059,799 | 4,059,799 | 3,967,083 | 3,967,083 | |
|
|
|
|
During the year ended 31 March 2023 £Nil (2022: £126,416) was received from government or public bodies. During the year ended 31 March 2023 £Nil (2022: £158,300) of Covid 19 grant funding was received.
- 19 -
Leisure United
Company Limited by Guarantee
Notes to the financial statements (continued)
Year ended 31 March 2023
6. Other trading activities
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Catering income | 1,438,919 | 1,438,919 | 1,091,697 | 1,091,697 | |
| Other trading income | 90,683 | 90,683 | 53,541 | 53,541 | |
|
|
|
|
||
| 1,529,602 | 1,529,602 | 1,145,238 | 1,145,238 | ||
|
|
|
|
||
| 7. | Other income | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Other income | 17,191 | 17,191 | 110,862 | 110,862 | |
| Covid 19 Job Retention Scheme | – | – | 13,381 | 13,381 | |
|
|
|
|
||
| 17,191 | 17,191 | 124,243 | 124,243 | ||
|
|
|
|
||
| 8. | Costs of other trading activities | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Catering costs | 744,998 | 744,998 | 455,799 | 455,799 | |
|
|
|
|
- 20 -
Leisure United
Company Limited by Guarantee
Notes to the financial statements (continued)
Year ended 31 March 2023
9. Expenditure on charitable activities
| Total Funds | Total Funds | |||
|---|---|---|---|---|
| Unrestricted | 2023 | Unrestricted | 2022 | |
| £ | £ | £ | £ | |
| Wages and salaries | 2,733,883 | 2,733,883 | 2,295,062 | 2,295,062 |
| Rates and water | 141,554 | 141,554 | 78,395 | 78,395 |
| Light and heat | 471,271 | 471,271 | 229,757 | 229,757 |
| Repairs and maintenance | 252,463 | 252,463 | 195,632 | 195,632 |
| Insurance | 5,276 | 5,276 | 46,294 | 46,294 |
| Equipment purchase | 29,828 | 29,828 | 57,012 | 57,012 |
| Telephone | 29,460 | 29,460 | 22,541 | 22,541 |
| Other office costs | 153,540 | 153,540 | 131,020 | 131,020 |
| Uniform | 2,813 | 2,813 | 9,606 | 9,606 |
| Licences and subscriptions | 159,469 | 159,469 | 107,867 | 107,867 |
| Advertising and marketing | 121,308 | 121,308 | 82,613 | 82,613 |
| Support services | 134,520 | 134,520 | 272,241 | 272,241 |
| Depreciation | 3,078 | 3,078 | 10,079 | 10,079 |
| Bank charges | 119,958 | 119,958 | 94,578 | 94,578 |
| Governance costs | 11,092 | 11,092 | 16,228 | 16,228 |
|
|
|
|
|
| 4,369,513 | 4,369,513 | 3,648,925 | 3,648,925 | |
|
|
|
|
|
| Analysis of Governance costs | ||||
| 2023 | 2022 | |||
| £ | £ | |||
| Audit fees | 16,300 | 13,900 | ||
| Prior year over accrual | (5,208) | – | ||
| Prior year under accrual | – | 2,328 | ||
|
|
|||
| 11,092 | 16,228 | |||
|
|
10. Other expenditure
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Loss on disposal of tangible fixed assets | |||||
| held for charity's own use | – | – | 14,316 | 14,316 | |
|
|
|
|
||
| 11. | Net income | ||||
| Net income is stated after charging/(crediting): | |||||
| 2023 | 2022 | ||||
| £ | £ | ||||
| Depreciation of tangible fixed assets | 3,078 | 10,079 | |||
| Loss on disposal of tangible fixed assets | – | 14,316 | |||
|
|
- 21 -
Leisure United
Company Limited by Guarantee
Notes to the financial statements (continued)
Year ended 31 March 2023
12. Auditors remuneration
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Fees payable for audit | 11,092 | 16,228 |
|
|
|
| Other professional services | 345 | – |
|
|
13. Staff costs
Total staff costs and employee benefits for the reporting period are analysed as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 2,405,528 | 2,075,082 |
| Social security costs | 175,482 | 118,645 |
| Employer pension costs | 88,651 | 59,590 |
|
|
|
| 2,669,661 | 2,253,317 | |
| Self employed instructors | 64,222 | 41,745 |
|
|
|
| 2,733,883 | 2,295,062 | |
|
|
The average number of persons employed by the charity during the year amounted to 159 (2022: 155)
The number of employees that received emoluments in the following bands:
| 2023 | 2022 | |
|---|---|---|
| £60,000 - £69,999 | 1 | – |
| £70,000 - £79,999 | – | 1 |
| £90,000 - £99,999 | 1 | – |
| £110,000 - £119,999 | 1 | – |
| £120,000 - £129,999 | – | 1 |
|
|
The key management personnel of the charity comprise of the Managing Director, Director of Operations, Executive Consultant, Head of Finance and Head of Business Systems. The total employee benefits of the key management personnel of the charity were £487,426 (2022: £327,826 relating to five employees). The Executive Consultant also provided management consultancy throughout the year receiving fees in total of £5,415 (2022: £7,310), detailed on note 25.
14. Trustee remuneration and expenses
Other than that noted in note 25, no remuneration or other benefits from employment with the charity were received by the trustees.
- 22 -
Leisure United
Company Limited by Guarantee
Notes to the financial statements (continued)
Year ended 31 March 2023
15. Surplus transfer to parent
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Surplus transfer committed | 10,000 | – |
|
|
At the year end the Trust committed £10,000 to the parent company as a contribution towards administration costs incurred by the parent.
16. Intangible assets
| Website | |||
|---|---|---|---|
| development | |||
| £ | |||
| Cost | |||
| Additions | 96,415 | ||
|
|||
| At 31 March 2023 | 96,415 | ||
|
|||
| Amortisation | |||
| At 1 April 2022 and 31 March 2023 | – | ||
|
|||
| Carrying amount | |||
| At 31 March 2023 | 96,415 | ||
|
|||
| At 31 March 2022 | – | ||
|
|||
| Tangible fixed assets | |||
| Motor | |||
| vehicles | Equipment | Total | |
| £ | £ | £ | |
| Cost | |||
| At 1 April 2022 | – | – | – |
| Additions | 18,468 | 21,758 | 40,226 |
|
|
|
|
| At 31 March 2023 | 18,468 | 21,758 | 40,226 |
|
|
|
|
| Depreciation | |||
| At 1 April 2022 | – | – | – |
| Charge for the year | 3,078 | – | 3,078 |
|
|
|
|
| At 31 March 2023 | 3,078 | – | 3,078 |
|
|
|
|
| Carrying amount | |||
| At 31 March 2023 | 15,390 | 21,758 | 37,148 |
|
|
|
|
| At 31 March 2022 | – | – | – |
|
|
|
17. Tangible fixed assets
- 23 -
Leisure United
Company Limited by Guarantee
Notes to the financial statements (continued)
Year ended 31 March 2023
18. Investments
| Shares in | |
|---|---|
| group | |
| undertakings | |
| £ | |
| Cost or valuation | |
| At 1 April 2022 and 31 March 2023 | 1 |
|
|
| Impairment | |
| At 1 April 2022 and 31 March 2023 | – |
|
|
| Carrying amount | |
| At 31 March 2023 | 1 |
|
|
| At 31 March 2022 | 1 |
|
All investments shown above are held at valuation.
Leisure United Enterprises Limited was incorporated on 28 March 2021, the company is a wholly owned subsidiary of Leisure United. The company was dormant from date of incorporation to 31 March 2023 and has net assets of £1 being 100% share capital.
19. Stocks
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Items for resale | 38,211 | 7,757 |
|
|
|
| Stock held at the year end represents food held for resale. | ||
| Debtors | ||
| 2023 | 2022 | |
| £ | £ | |
| Trade debtors | – | 11,939 |
| Prepayments and accrued income | 98,164 | 25,169 |
| Other debtors | 45,604 | 90,692 |
|
|
|
| 143,768 | 127,800 | |
|
|
|
| Creditors: Amounts falling due within one year | ||
| 2023 | 2022 | |
| £ | £ | |
| Trade creditors | 187,216 | 86,182 |
| Amounts owed to group undertakings | 7,436 | 1 |
| Social security and other taxes | 105,907 | 81,063 |
| Accruals and deferred income | 281,324 | 187,818 |
| Other creditors | 12,099 | 15,029 |
|
|
|
| 593,982 | 370,093 | |
|
|
20. Debtors
21. Creditors: Amounts falling due within one year
- 24 -
Leisure United
Company Limited by Guarantee
Notes to the financial statements (continued)
Year ended 31 March 2023
21. Creditors: Amounts falling due within one year (continued)
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Deferred income brought forward | 16,890 | – |
| Released during the year | (16,890) | – |
| Deferred during the year | 52,480 | 16,890 |
|
|
|
| Deferred income carried forward | 52,480 | 16,890 |
|
|
Deferred income relates to season fees received for future periods.
22. Analysis of charitable funds
| At 31 | March | Surplus | At 31 March | |||
|---|---|---|---|---|---|---|
| 2022 | Income | Expenditure | transfer | 2023 | ||
| £ | £ | £ | £ | |||
| General funds | 1,376,923 | 5,606,592 | (5,114,511) | (10,000) | 1,859,004 | |
|
|
|
|
|
||
| Year ended 31 March 2022 | ||||||
| At 31 | March | Surplus | At 31 March | |||
| 2021 | Income | Expenditure | transfer | 2022 | ||
| £ | £ | £ | £ | |||
| General funds | 259,399 | 5,236,564 | (4,119,040) | – | 1,376,923 | |
|
|
|
|
|
||
| Analysis of net assets between | funds | |||||
| Unrestricted | Total Funds | |||||
| funds | 2023 | |||||
| £ | £ | |||||
| Fixed assets | 133,563 | 133,563 | ||||
| Investments | 1 | 1 | ||||
| Current assets | 2,319,422 | 2,319,422 | ||||
| Creditors less than 1 year | (593,982) | (593,982) | ||||
|
|
|||||
| 1,859,004 | 1,859,004 | |||||
|
|
|||||
| Year ended 31 March 2022 | ||||||
| Unrestricted | Total Funds | |||||
| funds | 2022 | |||||
| £ | £ | |||||
| Investments | 1 | 1 | ||||
| Current assets | 1,747,015 | 1,747,015 | ||||
| Creditors less than 1 year | (370,093) | (370,093) | ||||
|
|
|||||
| 1,376,923 | 1,376,923 | |||||
|
|
23. Analysis of net assets between funds
- 25 -
Leisure United
Company Limited by Guarantee
Notes to the financial statements (continued)
Year ended 31 March 2023
24. Analysis of changes in net debt
| At | |||
|---|---|---|---|
| 31 March 202 | |||
| At 1 April 2022 | Cash flows | 3 | |
| £ | £ | £ | |
| Cash at bank and in hand | 1,611,458 | 525,985 | 2,137,443 |
| Debt due within one year | (1) | (7,435) | (7,436) |
|
|
|
|
| 1,611,457 | 518,550 | 2,130,007 | |
|
|
|
- 26 -
Leisure United
Company Limited by Guarantee
Notes to the financial statements (continued)
Year ended 31 March 2023
25. Related parties
The Trust received administration and management support from SLT Enterprises Limited in the prior year. SLT Enterprises Limited is a part of the SLT group, of which Mr S Ardley is a Trustee.
During the year the following related party transactions were undertaken:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| SLT Enterprises Limited | ||
| Administration and management support | – | 98,491 |
|
|
|
| Administration and management support paid in advance (service not | ||
| received due to liquidation) | – | 66,641 |
|
|
|
| Amounts owing to SLT Enterprises Limited at the year end were £Nil (2022: £Nil). | ||
| SLT Group | ||
| Recharged expenses | – | 243 |
|
|
The Trust also wrote off a bad debt due from Sentinel Leisure Trust in relation to the education agreement with Leisure United in the prior year.
Sentinel Leisure Trust (subsidiary of SLT Group)
| Bad debt written off | – |
(22,930) |
|---|---|---|
The Trust receives administration and management support from DGEMS Ltd of which Mr D J Gallagher is a director.
During the year the following related party transactions were undertaken:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| DGEMS Ltd | ||
| Administration and management support | 18,000 | 18,000 |
|
|
|
| Amounts owing to DGEMS Ltd at the year end | – | 4,500 |
|
|
|
| The Trust received administration and management support from SQ1 | Management | which is |
| controlled by Mr W Ormerod (Executive Consultant of the Trust). | ||
| During the year the following related party transactions were undertaken: | ||
| 2023 | 2022 | |
| £ | £ | |
| SQ1 Management | ||
| Administration and management support | 5,415 |
7,310 |
The Trust received administration and management support from SQ1 Management which is controlled by Mr W Ormerod (Executive Consultant of the Trust).
- 27 -
Leisure United
Company Limited by Guarantee
Notes to the financial statements (continued)
Year ended 31 March 2023
26. Ultimate parent company
The immediate and ultimate parent company of this company is The National Football Trust, a registered charity (charity number: 1184825) and a company limited by guarantee (11535526) registered in England and Wales.
- 28 -