ENJOY EAST LOTHIAN LIMITED (A company Ilmlted by guarantee) Report and Financlal Statements Forthe year ended 31 March 2025 Company number- SC356338 Charity number- SC040527 ENJOY EAST LOTHIAN LIMITED Financlal Statements For the year ended 31 March 2025 Contents Page$ Trustees, Report (incorporating the Trustees, Strategic Report) Independent Audilols Report Group Statement of Financial Activities {incorporating the Income and Expenditure Account) Charity Statement of Financial Activities (incorporating the Income and Expenditure account) Group and Charity Balance Sheet Group Cash Flow Statement Charity Cash Flow Statement Notes to the Financial Statements 2-17 18-21 22 23 24 25 26 27-43 ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 JOINT INTRODUCTION BY THE CHAIR AND CHIEF EXECUTIVE We are delighted to present the 2024125 Annual Report for Enjoy East Lolhian Ltd {enjoyleisurel. As the charitable health, wellbeing and leisure trust of East Lothian, our commitment to making our community a healthier and more prosperous place for everyone to live and visit is even stronger today than it was at our foundation in 2009. We continue to play an important role, alongside all our partners. in enriching the lives of the communities we serve,. and we vndersland tliatproviding access to leisure facilities continues to be more vital th8n ever for our local communities in order lo supp4rt their ￿￿.1¢￿. 0Dd mental health and wellbeing. The 2024125 financial year has been challenging in many ways for Enjoy, but we are delighted to see increasing visitor numbers to our siles, despite the continued closure of the swimming pool al Ihe Loch Centre and our Trampolining Room and Squash Courts at North Berwick due to RAAC issues. Whilst the COVID pandemic is now 3-4 years in the past, we do still feel the impact that il brought and so do our customers. Ongoing cost-of-living issues continue to mean high costs for the supplies we need to effectively run Ihe business and has meant a year of price increases for our customers. The new government have also introduced additional financial pressures that we will need lo budget for in 2025126 relating to above-inflation increases in the minimum wage and additional National Insurance costs for Employers. Our strong partnership with East Lothian Council continues to ensure that Enjoy is able to deliver the services that our communities need and want. Local area group and community impact funding has seen significant investment into installing 8 new pool pod at Musselburgh and a material contribution to repairs required to the wave machine at Dunbar Leisure Pool during 2025. Through some excellent work with many other bodies within the region, both public and private, additional funding ha5 been secured for swimming equipment and bleed control kits as well as funding prowded for lifeguard qualifications to be offered to a handful of applicants free of charge. The Athletics track at Meadowmill was repla￿d during 2024 giving East Lothian a venue with accreditation to host events and potential for possibly hosting national events in the future. Our partnership with East Lolhian Council remains in place until 2031. Our partnership supports Enjoy's drive forward to provide affordable access to sport and leisure with an emphasis on customer safety and Setvice. East Lothian Council faces many of the same financial issues as other public sector organisalions nationally and their support to us has proven invaluable to Enjoy during 2024125. However, Enjoy wasn't immune from the secondary impact of East Lolhian Council's financial pressures, as we experienced 2 £100,000 reduction in our annual contract payment for the 2024125 financial year. Sadly, a tough decision was made in March 2025 to shut our café's to the public. This was an extremely difficult decision for us to take and we fully recognise the benefit that our café's provided to the communities of East Lolhian within our sport centres. However, finanaally, the café's had been making losses year-upon-year and a full review of the business model was required to secure financial and governance viability going forward. We will be sad to say goodbye to all the staff involved in working at the café's when our doors finally close in August 2025. We report in the following pages our achievements over the financial year 2024125 which we are proud to have accomplished despite the ¢onsiderable challenges presented to us this year. The success of enjoy since il was established over 15 years ago has demonstrated that we are an innovative and 8dapl8ble organisation. ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 We would like to take this opportunity to thank all our colleagues throughout enjoy, who have endured another challenging and ￿n￿rtain year with grace and strength. We also wish to extend our gratitude lo our loyal customers, who have supported enjoy through the difficulties over the last few years. Miller Mathieson Chair of Enjoy East Lothlan Ltd (enjoyleisure) Bill Axon Chief Executive ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 The Trustees are pleased lo present their annual report (including their strategic report) and audited financial statements for the year ended 31 March 2025. OBJECTIVES AND ACTIVITIES The primary objective of enjoyleisure, as East Lothian's charitable health, well-being and leisure trust, is lo improve lives by inspiring active living.11 is our mission to enrich the physical and mental wellbeing of our communities, by putting people at the heart of everything we do.. We provide opportunities for people of all ages to enjoy recreational facilities in East Lolhian. with the objective of improving their conditions of life. We develop and create our own recreational coached activity programmes to create development pathways for both competitive and non-compelilive athletes. We contribute to advancing the wellbeing of the inhabitants of and visitors to East Lothian through our wide ranging fitness class activity programme, Bodyworks Gyms, and Swimming Pool programmes. We provide local residents on low income or disability benefits the opportunity to engage in physical activity at concessionary rates. We provide a Macmillan Move More programme for the benefit of indiwduals living with and beyond cancer in East Lothian to engage in gende exercise and movement classes, providing physical, social, emotional, and mental wellbeing support for those who need it. We provide a long-term conditions Physical Activity Referral Scheme (PARSI, Parkinson's referral ¢la8se$ and provide support lo the Mid & East Lothian Drugs and Alcohol Partnership {MELDAPI. This is achieved through specialist classes and gym provision via our dedicated Health and Wellbeing team. We have strong links with lo¢al schools providing access for both public and private educational facilities, so children of all ages and abilities are able to engage in sporting activities. We provide sports halls, dance studios, pitches, and pavilions for local sports clubs and community organisations to host their training sessions, competitions, matches. dance rehearsals, theatre productions, and community meetings. Enjoy East Lolhian Limited lenjoyl was set up to manage and develop all East Lolhian Council's indoor and outdoor leisure facilities for the benefit of the communities within East Lothian. Our corporate objective is to bring a business-focused approach to the management of leisure SeNi￿S with surpluses generated retained and reinvested in se￿1￿, activity, and facility improvement. enjoy's existence is for the sole purpose of promding superior sporting. leisure, and fitness facilities at affordable prices. Wa do this in partnership wth East Lolhian Council. and WOTk to ensure the communities of East Lothian reap the long-temi benefits of high quality facilities and equitable opportunities for participation. We are committed. along wlh our partners, to continuing to improve our facilities by making them sustainable, accessible, and equipped to the highest standard. As a Leisure Trust one of our main responsibilities and commitments is to ensure wherever possible that all our facilities are both affordable and accessible to all individuals and groups. We uphold this commitment by continuing lo keep our prI￿S competitive and by providing a number of membership and discounted access schemes to promote f￿quent use at beneficial rates. The 'A￿sS to Leisure, scheme, a joint initiative with East Lothian Council, continues to provide significantly redU￿d admission rates off-peak for East Lothian residents on low incomes, in re￿ipt of benefits, or enrolled in health programmes. Our Sem￿$ and farilities are based in all the major towns in East Lolhian and the vast majority are accessible by public transport. This provides the majority of residents the opportunity lo gain access to sports facilities within a short time of leaving their own front door. TRUSTEES, STRATEGIC REPORT 2024125 ACHIEVEMENTS AND PERFORMANCE One of our biggest challenges during 2024125 was to ensure the ongoing financial viability of Enjoy now and many years into the future. Our overarching strategic plan is to ensure that we have as close lo a balanced budget as possible, which will allow us to then invest into improving the services we offer. Obstacles are continually being presented to us, not least the significant additional costs that increases in minimum wage and employer National Insurance costs will present. We also needed to review the ongoing financial losses that the café's within our sport cenlres were incurring. The decision to close the café's was taken in March 2025 and was a very difFicull decision to make as we know that they support the sport ￿nIreS as community hubs and a place to meet friends over a coffee. Unfortunately, there have been continued financial losses for many years, significantly so since COVID hit in 2020. After this, our costs significantly increased but the usage of our facilities and the income generated sadly did not match this pace of cost increase. ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 We continue lo work closely with our partners and colleagues in East Lothian Council lo ensure that the current and future financial pressures that we fa￿ are fully visible and that we work together to ensure that we continue offering our current level of servi￿8 across the county. Our strategy includes an aim lo at least maintain, but ideally grow, our reserves so that we have a bedrock of financial stability underpinning the business. The next few years will be challenging with the policy decisions the new government have already introduced for 2025126 onwards adding finanaal pressures to the business that will require difficult decisions to be made by the management team. Year in Review The Pool at the Loch Centre continued to remain dosed during the whole of 2024125. Initially being closed in earfy 2023, as a result essential Maintenan￿ and inspection works being carried out, during 2024125 East Lolhian Council eamiarked £5m of capital funding to secure major refurbishment works al the cenlre. This work will see the re-opening of the pool during 2027 but will mean a period of additional closure during 2026-2027. Resident swimming clubs, Tranenl ASC and ELST, both continue to ulilise pool lime al Musselburgh and Aubigny Sports Centres. RAAC {reinforced autoclaved aerated concretel continues to be an issue at North Benmick Sports Centre where a partial closure of the centre has been in place Sin￿ July 2023, resulting in the Squash Courts and Trampolining Room remaining inaccessible. The precise timeline and costs for repairs at North Berwick still remains un￿rtain as we enter 2025126 but is expected to have a significant cost allached. Dunbar Leisure Pool is the only asset that Enjoy owns and isn't a part of the East Lothian Council estate. During 2024125 a significant level of structural works were identified by ongoing inspection regimes that will need remedial a¢lion over the next 12-24 months. Around a third of these works relates to our wave machine, which will be replaced during the summer of 2025, but will cost around £100k to deliver. A significant amount of funding, £50k, has been provided by the Community Intervention Fund to part-fund these works, for which Enjoy are extremely grateful. Health partnerships set up over the last few years continue to thrive, for example with Parkinson's UK and Mid & East Lolhian Drugs and Alcohol Partnership (MELDAPI. New schemes were added during 2024125 further supporting our communities in their healthy lifestyle planning, bul crucially continuing to deliver long-term benefits to our partners within East Lothian Council and the NHS. Staffing and recruitrnent issues continued to affect the Servi￿ and remains a pattern that has been exacerbated since the COVID pandemic of 2020. However, the position is more positive than it was last year and we have seen fewer vacanaes. Continued use of designated fast-tracking recruitment pro￿$$eS has continued to assist US. Our staff pay structures are an area where we have also suffered signific8nlly during the COVID years. Our ability to pay staff increases was severely limited with no income coming into the business for a prolonged period. As a result. our pay structure is now tied inextricably lo the National Minimum Wage {NMW). We paid an increase lo staff amounting lo 4.950/0 during 2024125. We remain financially unable lo pay the Real Living Wage IRLW, which sils al £12.601hour. The rate of pay for NMW al 1" April 2025 will be £12.21 Ihour la 6.70A increase) and we predict annual increases to be applied by the government over the next 34 financial years of around 5 % annually. 2024125 saw a much more stable Senior Management Team in place. Both the Sports Development Manager and Health and Wellbeing Manager posts saw new employees in post by April 2024 and there has been no movement in management team positions since. Vlsltor Statlstl¢s Visitor numbers in 24125 grew versus the visitor numbers in 2023124. This is atlribut2ble to two main areas,- firstly a slight relenting of the cost-of-living crisis with economy-wide inflation sitting at an average of 2.50/0 over 2024125, a return to levels last seen in the summer of 2021. Early indications for 2025126 are that this rale will be increasing and this will affect our customers personal budgets if this eventually transpires. Secondly, after the introduction of new Leisure Management software in May 2023, we have made significant strides in improving the accuracy of recorded visitor numbers to siles where electronic access is required. and also to those where it is not (e.g. football pitches etc.) Please note the below table which sets out the visitor slatislics for 2024125 in more detail as well as a summary of recent year statistics too.. 2021122 750 000 512,799 2022123 933,500 765,600 2023124 781000 685,000 2024125 996,800 836,000 Totsl Visitor Numbers Sports Centres Customers Golf Courses 68,117 48,900 48.400 52,817 ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 In relation to Golf visitors, the Winterfield Golf Course has been transferred to the Winterfield Golf Club, from Enjoy management. with effect 1$1 April 2025. This has been achieved under the Community Empowerment Act 2015, which allows East Lothian Council to implement a 'communily asset transfer, from the Council to a community group or organisation. Future year Golf visitor numbers will reduce accordingly for 2025126 onwards as a result of this transfer. Success Stories Despite the challenges, enjoy made strides to improve its business, services, and activities. Our achievements for 2024125 are highlighted below.. Faclli erations & Transformations Enjoy has continued to deal with iwo major building wort< issues at Loch Centre and North Benmick Sports Cenlre. The Loch Centre pool closed in January 2023 due to concerns over the roofing structure. East Lolhian Council have £5.5m in their capital programme for significant refurbishment and modernisation of the Loch Cenlre. with works looking sel to commence sometime in mid-2026. In the interim, the Loch Centre continues to operate without a swimming pool and is a 'dry' sile bul remains a vital community hub. The issues around RAAC at the North Berwick Sports Centre remain unresolved, with initial repair estimates now significantly higher than originally projected. Al present, there remains no immediate plan to commence those works from East Lothian Counal and no capital funding has been eamarked. This continues to mean that the Squash Court, Trampolining Room and male dry-side showers at North Benmick remain out ofcommission. Other significant works during the year saw week-long closures al Aubigny Sports Centre and Dunbar Leisure Pool during 2024 for hot water works and 'wet-side' tiling and repair issues. There was also a significant power cul at Musselburgh in February 2025 that caused immediate problems at the centre, bul also subsequent problems within the pool due to reheating when the power came back on. VVhil8t not a building issue, Musselburgh's Soft play area was shut from September 2024 to March 2025 due to a necessary refurbishment of the faalily. We undertook deep cleans and invested additional funds into the area whilst adding additional seating facilities and play equipment. We continued to have recruitment challenges in specific areas of activity, such as swimming and gymnastics teachers, although the overall situation during 2024125 was much more positive than the previous year. From a budgetary perspective, we are required to hold back the equivalent of 1.5 full lime equivalent Leisure Assistant posts at each cenlre, and we have overall achieved that in 24125, but wlh some sport centres suffering more than others. For example, Dunbar Leisure Pool has had more diffi¢ulty recwiling to vacancies during 2024125 and other siles have been overall more suC￿$SfUl. Our close work with Direct Partners and Pathways to Leisure employment programme have aided us immensely. A long-serving servi￿ Manager retired during 2024 and we also saw the resignation of a temporary Service Manager in early 2024125. Some internal movements were also included in a round of changes in Service Manager postings. As such we had two Assistant Service Manager vacancies which were filled, one internally and one externally. ECOLABS cleaning materials and dispensing devi￿$ {¢onlrolled dosage) were rolled-out across our centres in 2024, with additional paper products from Tork being pro¢u￿d. The latter restricts the usage of paper towels lo a sheet al a lime, with a view to reduce both wastage and cost across our sites. Pool Chemicals were tendered and a revised arrangement with the incumbent supplier was agreed in principle pending finalisalion of contracts. This will save us around £15k per annum, assuming unil price and volumes remain constant. A huge decision taken by the Senior Management Team and Enjoy Board was to confimi that after many years of dedicated Servi￿ to our Sport Centres, the café's would close. This was announced in March 2025 and the café's will finally close their doors in August 2025. Unfortunately, this has meant staff being made redundant, bul we were in the extremely difficult position of continued financial losses being subsidised by the Charity. Our future business model will see additional vending machines incorporating a wider range of products being implemented across all sites, but crucially at the 4 sites where café's were operational. The Wallyford Learning Campus 3G pitches were operated by Enjoy until July 2024, when East Lothian Council moved the management of these facilities over to a commercial entity. The exiension to the gym at Aubigny sports centre was under construction during 2024 with the new gym being open to members and the public from February 2025. The official opening will occur in April 2025. The new facility has been very well received by our visitors and has had the bonus of generating new and additional membership income for Enjoy. A ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 well-managed and collaborative project with East Lothian Council, using Housing Developer contributions required under house-building regulations, has seen this visionary project become a reality for the public of East Lolhian. We have lrialled and implemented a revised method of purchasing and selling items for the public to purchase in relation to swimming costumes, goggles and eqLJipment. Previously. Enjoy purchased items directly, at our own expense and then sold them on to customers. Under the new model of operating the supplier will visit our sites to detemine the products that are best to sell, and these products remain under their ownership until they are sold, when Enjoy lakes Ihe income. We are then billed for sold items. This is beneficial for us as it means retail decisions are taken out of our hands when this isn't our area of expertise. All centres, ex￿pt Dunbar. were live with this new way of working by 31s1 March 2025, with Dunbareamarked for moving over by summer2025. Some excellent work in partnership with East Lothian Council ensured that the running track at Meadowmill was opened and fully operational. This new and improved running track is approved and certified at Trackmark Level 1 meaning an ability to host events, with possible Trackmark Level 2 awreditalion in the future to potentially host national events. We have ComMen￿d a project to review and update our uniform across the Enjoy teams, to reinvigorate the look of the uniforms being worn, and to link into the ongoing work around brand improvement being undertaken by the marketing team. Sports Development The previous poslholder left Enjoy in February 2024 and the new Sports Development Manager commenced on 1" April 2024., Averaging around 2,300 children a week receiving Swimming Lessons and 450 for Gymnastics Lessons. we continue to provide physical education and life-saving skills to the children of East Lolhian,. We have developed, and continue to do so, strategies to reduce swimming lesson wailing lists whilst seeking solutions to ongoing teacher recruilmenl issues. Recruitment of both swimming and gymnastics teachers has proven extremely challenging during 2024125., Our Sports Development OffI￿r continues to develop relationships with ELC'S Active Business Unit and other partners to provide coaching programmes and other activities within school holidays covering a variety of sports., We have established a temporary post within the team to develop 2nd improve our annual training programme in terms of professional competence and accreditation. This post will also improve our ability lo recruit Leisure Assi8lanls and train staff to become qualified in their NPLQ. Further, there will be an element of income generation as it relates to any external training given., Trialling of 8 Rookie Lifeguard programme at North Ben￿iCk sports centre., The team successfully managed the transition of our recreational trampolining programme to Two Foot Higher during 2024125., Specialist ASN swimming sessions developed and delivered for our customers with specific ASN needs., Future Sports Development Plans Increase ASN and disability sport programmes across our sites., Increase swim and gymnastic lesson capacity through improvement of Ihe current IT systems supporting the administration of them., Continue working with Head of Business Development to apply for ftjnding to support sports provisions,. Continued partnership building with governing bodies and other charities to look lo expand our sports offering for the community- Focussing on the recruitment of qualified and nonqualified coaches to deliver sports sessions across all siles. Health and Wellbeing After the previous Health and Wellbeing Manager was suc￿Ssful in securing the Head of Operations position, a new postholder was appointed and in the role by mid-April 2024.. Over the course of 2024125 over 470 referrals were made to the team, )Mth 51 Oh of those referrals continuing to engage with physical activity through Enjoy membership schemes and pay-as-you-go options after the conclusion of their support programme with us. Our key aim is to support those referred to us via the most appropriate physical activities suitable to the individual.. Various referral pathways are in place, continued from previous years, now as an East Lolhian-wide physical activity referral scheme. The development of the Macmillan Move More programme and the Parkinson's programme are now all under the health and wellbeing banner., We continue to collaborate with our partners in the NHS, looking at areas around supporting the East Lothian rehabilitation pathway, weight management 2nd Parkinson's. We run around 18 group sessions per week across the county supporting each of these area8 of activity., ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 We are supported by income streams from partners to facililale the continuance of many of our schemes, with funding re￿iVed from the NHS, Mid and East Lolhian Drug and Alcohol Pattnership IMELDI, Parkinson's UK and Ma¢Millan Cancer Support. The funding we re￿1ve is invested in ensuring we deliver these highly-valued programmes- We seek regular feedback from our customers to ensure that we remain on the right track and that we are offering the value that we strive towards. Many of the comments we gel are extraordinary and highlight the immense impact the various schemes we deliver can benefit the public of East Lolhian,. We Suc￿ssfullY started a new MELD gym support class from Aubigny Sports cenlre, now offering sessions perweek., We have continued to build relationships throughout East Lothian with regular catch ups with NHS health promotions team and Ageing Well to develop smoother transitions bebmeen referrals and sign posting to local aclivilies., We have showcased our activity to East Lothian Council, and other partners, at events held at Meadowmill during 2024125, seeking to shine a light on the work we are undertaking as well as the benefit it brings across the community. Our desire is to ensure that all partners involved in Health and Wellbeing within East Lolhian are working towards common goals, but with 2 concurrent acceptance that these are long-term plans, with diS￿rnIble benefits delivered over decades rather than months and years., We joined the national 'on￿ For Scotland, group lo bring strength to Scotland wider physical activity referral programme data.. We supported another student through their third year Sports Rehabilitslion placement with multiple lined up for next year which give the opportunity for people to see the difference between learning and real-life rehabililalion., The team supports the internal community within Enjoy by delivering the Health and Wellbeing Steering Group where we offer physical and mental health advice, signpost employment support tools and lifestyle coaching, to name a few. Business Development The year under review has seen sustained progress in developing strategic partnerships, securing grant funding and exploring new income St￿aM$. During the financial year, corporate partnership activity continued to expand, with many businesses benefitting from corporate memberships. Our ongoing collaboration with the Fitness Education Academy has provided members with a¢￿sS to qualified personal trainers, while generating rental income from the use of gym space. Grant funding of over £100,OOQ was secured during the year. This includes £50,000 from the East Lothian Community Intervention Fund towards essential repairs to the wave machine at Dunbar Leisure Pool, and over £25,000 for the installation of a Pool Pod at Musselburgh Sports Centre, improving accessibility for customers with disabilities or mobility challenges. Additional funding was also received from a range of local partners, including.. Dunbar Community Council, Safer Deposits Scotland, and the Dunbar Area Partnership- forswimming lesson equipment, first aid supplies and Iraumatic bleed control kits., North Berwick Comrnon Good Fund- towards the cost ofgoal posts at Recreation Park., EDF Torness- to fund NPLQ training for two trainees,. and Mlller Homos- for swimming equipment. All funds are allocated to clearty defined projects in consultation with the respective funders. Alongside funding achievements, operational changes were also planned to address areas of the business requiring additional focus to improve Servi￿ delivery. As part of ongoing operational reviews, significant preparatory work was undertaken in anticipation of the planned closure of Enjoy cafés in August 2025. This induded a compreherisive review of current catering operations, detailed financial analysis of performance trends and market research into alternative senri￿ models. Other Inltlatlves Completed Durlng the Year InPost Lockers- not progressed following a detailed assessment of suitability. Soft Play Memberships - launched following a suc￿Ssful trial, offering monthly and annual packages. Junior Swim Memberships - introduc£d for children completing the Learn to Swim programme. ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 Future Business Development Our corporate engagement strategy continues to deliver benefits, strengthening partnerships that both enhance membership stability and reinforce our position within corporate and community contexts. Discussions are underway with a major corporate partner to deliver tailored health, wellbeing, sport and fitness programmes. This initiative is being developed in collaboration with Health & Wellbeing and Sport Development teams, with detailed cosb'ng and commercial positioning in progress. The model is intended for future scaling to other employers with similar objectives. Other planned future initiatives include.. Maintaining a proactive grant stewardship programme, ensuring regular funder updates and targeted applications for new opportunities., Implementing seclor-specific external mystery shopping to inform continuous improvement in customer serMce- Transitioning lo an enhanced vending model following café closures., and Launching our sports lottery initiative. which retains 50QA of ticket sales through a dedicated platform, providing a ¢ost-free income stream aligned with our stralegy to diversify revenue sources. These activities. alongside planned initiatives, place Enjoy in a stronger position to maintain seNice delivery, support community engagement and work towards greater financial stsbilily. Marketing and Communications 2024125 has been a year of significant development and progress, aided by a Marketing and Communications Manager who has been in post for the full year after 6 months of instability during 2023124. Several new developments and workstreams have been developed and the benefits to Enjoy are starting to bear fruit. Our work here is both oubNard (customer) facing and internal {employeel fa¢ing, supporting the strategic programmes of improvement that we are engaging in. A key piece of work we have been developing is around the Enjoy Brand and how we position ourselves within our communities. This is not limited to items such as logo's and colours but also how we interact with our communities. how we deliver physical education and how we collaborate with our partners. To support us in this journey we commissioned a marketing agency during 2024 to worf< on our brand, v81ues and a delivery plan. Delivery on this plan remains undetway as we enter 2025126 but some aspects have been delivered and improvements will be notie£d at some ofour season and golf facilities in terms of signage and branding. Key to developing our brand is ensuring that we have a renewed focus on customer retention. Slalistics indicate that our attrition rale is higher than we would like, with most cancellations we re￿1ve being due to inactivity on customer memberships. We are highly conscious of the ongoing cost-of-living crises and that our customers have less money in their pocket now than in previous years and try to encourage retention and new custom via our competitive pricing plans and offers. With cancellations, however, we can positively report that new memberships continue to outpace cancellations and our overall membership numbers grew in 2024125. We eXperIen￿d a spike in new memberships at the end of 2024125 due to the new Aubigny Gym Extension opening its doors in late February 2025 (official opening in April 2025). The jump in members from Dec'24 to Mar'25 was around 500 new members. a good number of which is allribulable to the new and revamped gym within Aubigny sports centre. Internal and external communications have been improved to now incorporate a monlhly customer and member newsletter (Enjoy Insights) and a weekly internal magazine called The Huddle. Both these communication tools hava been well received and well accessed and continues to ensure that we remain open and transparent about what is happening within Enjoy. Our regular Connections meetings with staff at our 6 main centres secure regular contact 2nd conversations wlh our staff on issues that affect them personally. We have had some significant events during 2024125 that we have posted onlo Social Media channels. Aubigny Sports Centre celebrated ils 501h anniversary. wlh Enjoy offering 50pence swims for a day lo mark the occasionl The Aubigny Gym Extension was under construction during 2024125 and opened to the public in February 2025. Regular updates on ils progress was shared along the way on our media channels. Future Developments - Marketlng and Communications Continue to work on the implementation of our rebranding, social media and marketing strategy,. Focus on the improvement and expansion of communication channels for our customers, members and colleagues.. ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 Ensure that marketing and communications campaigns are based on data to oplimise their success., Development and expansion ofour member retention programme.. Expansion of our partnership with Les Mills fitness around our website, class names and Mrtual class options on a trial basis., and Oplimising the use of management information from our Leisure Management software tool People We have had a successfully year in implementing new and important policies and delivering training lo our staff. Our new Neurodiversity and Dignity al Work policies alongside Equality and Diversity training for all managers ensures that our managers have the appropriate awareness and tools in their armoury to deal with these important issues in the workplace. We continue lo operate our Leadership Development Programme with an additional five members of our team in the cohort for this year, with their project presentation being a research paper and propos81 to introduce a probationary period for all new employees supported by a new induction programme. This programme continues to give staff the appropriate development to become future leaders of Enjoy. Recruitment challenges remain for the business but were not as impaclive as they were in previous ye8rs. Vacancies were fell in a more pronounced fashion at Dunbar Leisure Pool during 2024125 than al other centres but that impact was reducing as we approach the end of the year. All cenlres retain the requirement to hold the equivalent of 1.5 full lime equivalent vacancies as a budgetary measure, and this was broadly mel in 2024125, bul in itself does cause operational issues for us. We had new colleagues employed via the New Pathways to Wort< in Leisure programme via our work with Direct Partners and East Lolhian Works. A significant business decision was announced in March 2025 confirming that the café's at Aubigny Sports Centre, Dunbar Leisure Pool, the Loch Centre and Musselburgh Sports Centre will be closing in August 2025. This was a very difficult decision bul was made due lo ongoing financial losses over several years resulting in the charity subsidising the café's. Staff will be made redundant as a result, although every effort will be made to deploy affected staff into leisure posts within the business and direct support for individuals, in achieving their exil strategies. Our headcount is under ongoing review as we actively ensure relief members of staff are removed after a certain period of lime. This saw quite high reductions at the end of 2023124, and for 2024125 our headcount stands at around 271 at the 31 $1 March 2025. of which 148 were pemianenl staff and 123 were relief colleagues. Annu81 colleague survey. We continue to survey colleagues, and we were pleased that the completion rate had increased on the previous year with a 12Q/o uplift. Areas such as communication had improved and colleagues, awareness to health and safety. Managers have received details on their individual centre surveys and are reviewing areas of opportunity with their teams. Training & Development Enjoy continued to focus heavily on training and development with colleagues. accessing fijnding through the Apprenti￿shiP Levy and continuing to fund training ourselves. However, Ihe funding a¢￿ssIble via Ihe Apprenticeship Levy stopped in late 2023 after 6 years., During the year enjoy enrolled 5 members of staff in a Leadership Programme, supported by Edinburgh College. The members of staff studied 7 modules and completed a project looking at introducing probationary periods and a dedicated induction programme. Their projects were presented lo Senior Management Team and the Chair of the Board in February 2025., and Our continued partnership with Direct Partners, who assist in offering modern apprenticeship training and qualifications lo young colleagues across our centres has been focussing on our'Palhway lo Leisure" programme. This is a funded programme lo assist young people to get into leisure. The funding covers a period of training and also the cost of completing an NPLQ course. At the end of the programme. we guarantee participants an interview for vacancies we have. We are proud that we been able to offer Leisure Assistant positions to 9 young people. HR Developments Our recruitment portal is live and this is allowing us to respond quickly to vacancies that we have. Plans are ongoing to extend this to the onboarding portal, this is expected to be live 2025., Continue building the learning and development strategy that enhances our team's capabilities to support recovery, growth and succession through the Enjoy Leisure Leadership Development Programme., and Support Operations to deliver sector leading Servi￿ and standards through the feedback of customer surveys from visiting centres ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 Governance The Directors would like to thank the Board for the attendance, enthusiasm, detailed reporting, and engagement over 2024125, with overall attendance of 80010 throughout the year, as we continue to develop the organisation. The three Sub-committee's {Finance & Risk, People, and Business Development) met regularly throughout the rinancial year, and oversight from these Committees has been exemplary. PREPARATIONS FOR 2025126 We have detailed in the above paragraphs financial COn￿rnS we have over the coming few years. These impact us here at Enjoy, but also our key partners at East Lothian Council, the NHS elc. as well as our customers. The new government has introduced policies that have added significant financial pressures to our longer-term financial strategy and we have Concerns that the cost-of-living crisis may actually worsen after a period of recovery during 2024-25, with indications that inflation is on the rise. These factors collectively need careful consideration as we navigate this fragile economic landscape. We will continue to work with our primary partner, East Lothian Council, lo ensure we are delivering the seNices expected of us and that we have regular and robust discussions around the levels of funding that we are provided. However, we are acutely aware that the impact of a potentially re-emerging cosl-of-living crisis and the financial pressures being imposed by the new Government mean that Local Authority fInan￿S are being squeezed continuously too. As part of the 2025126 annual funding payment made to Enjoy by East Lothian Council, we will see a £200,000 increase in the annual payment. Wthilsl this increase is welcomed by Enjoy, this injection of funding has been provided by East Lolhian Council to recompense Enjoy for the removal of Winlerfield Golf Course from the management of Enjoy. As detailed earlier in this report. the Winlerfield Golf Course has been transferred lo the Winterfield Golf Club under a Community Asset Transfer. The additional £200,000 from East Lothian Council will recompense most of the net income Enjoy would have othe￿iSe expected to achieve. There remain ongoing additional cost pressures for enjoy via inflationary increases in the costs of supplies and services. Additionally, the national minimum wage will rise to £12.21 in April 2025, and we fully expect similar increases of at least 5°A to be implemented by the government annually over the upcoming few years. This increase in wage costs will need to be reflected at other pay scales within our structure to ensure that we relain a sustainable pay structure that supports our operational needs. We will ensure that our ability to be a 'Real Living Wage (RLW), employer are continually held under review. This is a longer-lerm strategic desire of Enjoy, which under our current plan we would like to see fully implemented by 2029. However, our ability to achieve il will be inextricably linked to economic factors outside of our control. The continued closure of the Loch Centre swimming pool in Tranent will continue into 2025126, however works will Commence on-site in April l May 2026. This will result in a year-long closure of the whole sile, but then in June 2027 the entire centre will re-open inclusive of the swimming pool. This is fantastic news for the residents of Tranenl, and the whole of East Lolhian, wlh the Council investing over £5million into refurbishing the centre. Plans for Future Periods New and ongoing initiatives include.. Strateg1¢ Developments A continued focus on the challenges enjoy is facing (supply issues, energy cost increases, and cost of living impacting membership numbers).. Creation of new strategic corporate objectives in line with the new Funding Agreement., Continuing lo ulilise the functionality within the recently implemented systems for Leisure Management and HR., Continuing to diversify income streams in conjunction with Business Development, streamline funding application pro￿sses, and improve service and modernise ils approach,. and A holistic overview of the operations of the business to identify potential income generation opportunities and efficiency savings. Servlce Delivery Developments Further development expansion of the existing Get in the Swim and GymnastiGS Coaching Programmes- Consideration of the creation of other Children's Coaching Programmes and Frameworks, including athletics. tennis, badminton, and multi-sports., Develop the offering of online and virtual classes.. and ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 Transforming the pricing structure to encourage consistency of approach between venues and sports, with benchmarking and an understanding of our cost base underpinning enloy's charging policies. IT Developments Continue to identify and implement additional functionality Inhe￿nI within the Legend Leisure Management software system. Embracing the 'modernisation' project that Legend are undertaking and embedding any and all resultant improvements into every part of our business., Our key focus here will be on improving the customer experience and journey, accessibility to our Se￿iceS and facilities and using the information that is stored., Create a digital strategy for enjoyleisure to streamline and improve connectivity across IT systems., Work with East Lolhian Council IT colleagues to ensure that the use of TEAMS, and the many opportunities is gives to businesses, is developed and cascaded throughout the enjoy., Upgrade the current finance system to the most current version available and capilalize on this with business improvement, reporting improvement and wider processes efficiencies., Improve the network and WIFI connectivity and reliability available within our sport ￿ntreS.. and Look at areas of development such as virtual class delivery and 'smart tile, access options. to name but two. that will improve customer attraction, retention and generate additional income to invest into the next project. Finance Developments Upgrade the finance system and reporting capabilities in order to provide Management with valuable data and insights, including the potential use of a KPI dashboard.. Integration of Finance data and Leisure Management data to produce regular and infomiative analyses for Senior Management Team and Centre Man8gers-, Review, update and publish Finan￿ Policies., Continue to review compliance with finan￿ policies in terms of VAT, cash control, asset recording and all other relevant processes.. Continue to review spending and VAT activities to leverage contractual opportunities available lo us via procurement frameworks and seek opportunities for reducing our VAT liabilities wherever possible., Making use of current and benefiaal banking investment rates to ensure that our surplus cash is working for us productively,. and Financial management training for all senior managers within the organization. SUMMARY The Enjoy management team and wider Board have clear strategic aims to deliver service improvements, reduce costs and grow income over the coming years, but there is a recognition by all that we are subject lo macro-level economic pressures that could affect our plans. We have detailed budgets with various scenario-planning undertaken so we Can prepare in advance risk mitigations and aspire to securing our Current levels of service delivery. We will continue to wod( very closely with our partners and colleagues at East Lothian Council to achieve this. The Board would like to acknowledge and thank all colleagues within enjoy for their continLJed support. commitment, and the shared emphasis placed on delivering a welcoming 2nd safe environment for customers and colleagues over the past 12 months. FINANCIAL REVIEW Total income for the charitable group for the financial year was £7,082,861. The charity's income from direct funding was £1,776,662. Income from the charity's activities was £4,800,455, an increase of £233,424 on 2023124. Expenditure on charitable activities for the year was £7,088,830, excluding defined benefit pension scheme adjustments. The trading subsidiary's loss for the year is £77,802 down from a loss of £73,785 in 2023124. Net expenditure for the group for the year is £140,81212024.' net income of £72,936). At 31 March 2025 the FRS 102 valuation of the pension scheme resulted in a net pension asset of £nil which is recognised in the Balance Sheet. The valuation has resulted in an actuarial loss of £253,000 being recognised in the Slalement of Financial Activities in the year. The balance on the pension fund will change annually according to economic conditions and the Trustees will keep the position under review. Dunbar Leisure Pool, which is wholly owned by enjoy, was last revalued as at 31 March 2025. The building and land are rev81ued at least every 5 years in line wlh insurall￿ requirements. 12 ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 There were no significant one-off items of expenditure charged lo the statement of financial activities in either 2024125 or 2023124. All costs incurred were in support of the key objectives of enjoy. The 2025126 financial year will bring new and continued financial challenges for enjoy. We have concerns that the relenting of the cosl-of-living crisis over the last 12-24 months will start lo re-appear during 2025126 and impact our customers finances as well as the cost of our key supplies and services. The new Government have implemented policies that will add significant financial pressures on our budgets. and we await future year budget announcements to be able to fully assess the impact. Our financial planning will ensure that we have full visibility of any current and future risks and that we are able to respond appropriately. Additional funding will be requested from East Lothian Council to aid with the reduction of financial pressures on Enjoy. In light of these risks, the Directors have assessed enjoy's viability as a going concern, and our ongoing financial sustainability. We believe, based on our forecasting and cashflow modelling over the next 18 months and the committed support of our partners al East Lothian Council, that enjoy is a going concern 2nd that while our reserves will be significantty reduced we will have sufficient cash balances to sustain our ongoing operational costs. Principal Funding Sources Enjoy received a management Servi￿ fee of £1,776.66212024'. £1,873,579} from East Lolhian Council in the year ended 31 March 2025. Investment Policy The charitable company had no funds held on short-term deposits during the year to 31 March 2025. The Board will invest any excess funds as and when it benefits the company and indeed there are plans lo do so during the 2025126 financial year. Reserves Pollcy It 18 the intention of the Board to accumulate a reseNes fund to provide some protection and mitigate against fijlure economic conditions. Monies equating to the amount determined in enjoy's reserves policy will be sel aside for this purpose. General funds are unrestricted funds available for use at the discretion of the Trustees in furtherance of the general objectives of the company, which have not been designated for any other purpose. Designated funds are unreslricled funds set-aside for a specific purpose, which wll be utilised during the next and future 8CCOLJnling periods against specific expenditure for asset improvement. It is the intention of the Board to set aside specific reserves for future capital work to Dunbar Leisure Pool. Restricted funds are funds which are to be used in accordance wlh specific reslriclions imposed by donors or which have been raised by the company for particu12r purposes. The costs of raising and administering such ftjnds are charged against the specific fund. The aim of each restricted fund is set out in the notes to the financial statements. The balan￿ of restricted funds as al 31 March 2025 is £128,249 {2024'. £70,195). Rlsk Management The key risks that the charitable company is exposed to are identified in the risk register, together with actions to minimise these risks. The risk register is reviewed by the Finan￿ and Risk Committee and ultimately the Board. The risk register records finanual, strategic and operational risks. The Board will assess and record the major risks lo which the company is exposed, in particular those related to the operations and finances of the company and wll be satisfied systems are in place to miligale those risks. Workshops will be held during 2025126 for members of the Board and Senior Managers to revise the current risk register in line with best practice. Ongoing challenges with regards the continuing levels of public funding being available to local authorities remains a major uncertainty and the￿fore a significant risk to the ongoing success of Enjoy East Lolhian Limited. The ability of our main partners to sustain contract payment levels and their capaaty to maintain and improve current building stock are both subjects that will continue to be a topic of dialogue be￿en relevant parties lo ensure any actions required in maintaining setvice delivery are fully considered. We also need to ensure that policy deasions being made by the new Government are fully costed and budgeted for as part of our finanaal planning processes 13 ENJOY EAST LOTHIAN LIMITED Trustees, Report For the year ended 31 March 2025 STRUCTURE. GOVERNANCE AND MANAGEMENT The company has charitable status under sections 466 10 493 Corporation Tax Act 2010. The Scottish Charity Number is SC040527. Enjoy East Lolhian Limited {¢nloyl is a company limited by guarantee, govemed by ils memorandum and articles of assoaation and does not have any share capital. The charitable company was incorporated on 10 March 2009 and Commenced trading on 1 October 2009. Each Trustee has undertaken to contribute an amount not exceeding one pound towards any deficit arising in the event of the charitsble company being wound up. The charitable company is a not for profit distributing organisalion and any surplus generated, other than that required to keep the reserves al the agreed level, is available to reinvest in the charitable company to maintain and improve the service. Enjoy East Lothian Limited has one wholly owned trading subsidiary, Enjoy East Lolhian Trading Limited, the principal activity of which is the operation of cafes. Organisational Structure The Board meets regularly with Trustee8 and Senior Management present. Decisions are taken to set the overall strategy for the business as well as to monitor its acliwlies. There are currently three Sub-committees of the Board dealing with specqfic areas of the business. Each Sub-committee meets quarterly. The Finan￿ and Risk Sub-committee assists the Board with issues in relation to Governance, Scrutiny, and Policy in the 8reas of Finance, Audit, IT, Legal, Admin, and Procurement, reviewing the suitability and effectiveness of the company's financial management and internal controls. The People Sub-committee reviews policies and prO￿dureS regarding HR matters and acts as the Appeals Panel for the company's discipline and grievance prO￿dure. The Business Development Sub-committee reviews ongoing and planned projects and wod O roc) roaj ¢> ENJOY EAST LOTHIAN LIMITED Notes to the financial statements For the year ended 31 March 2025 Voluntary income Group and Charlty 2025 2024 Grant income Non business Incomes 102,280 20,423 149,460 6,472 122,703 155,932 Income from sales, fees and charges Income is attributable to sporting activity fees and other sales. In addition, a management service fee of £1,776,662 (2024: £1.873.5791 was received by the group from East Lolhian Council for the year. Investment Expendlture 2025 2024 Net interest defined benefit pension scheme 326,000 277,000 Charitable actlvltles- membership services 2025 2024 Group and Charlty Employee related costs Defined benefit scheme adjustrnenls Propety costs Supplies and seNices Support ServI￿S Bank charges Governance costs - Audit and other professional fees Govemance Costs - Trustee indemnity insurance 4,156,648 73,000 1,605,142 1,064,157 145,688 15.457 28,738 3,976,708 73,OOQ 1,457.466 970.461 176,530 41,046 26,297 5,313 6,726,821 7,088,830 Support seNices include the cost of insuran￿, advertising, professional fees and the provision of IT, payroll, HR and facilities support by East Lothian Council. None of these amounts are individually material. staff Co$ls and Numbers Group Charity 2025 2024 2025 2024 Wages and salaries Social security costs Other pension Costs Defined benefit scheme adjustrnenls 3.594.964 205,913 489,573 73.000 4.363,450 3,432,097 201,597 474.563 73,000 4 181,257 3,439,423 199,696 469.988 73,000 4,182,107 3,284,091 195,738 454,743 73,000 4.007,572 Employees earning more than £60,000 in the year.. Group Charity 2025 Number 2024 Number 2025 Number 2024 Number £70.000 - £80,000 £80,000- £90,000 32 ENJOY EAST LOTHIAN LIMITED Notes to the financial statements For the year ended 31 March 2025 staff Costs and Numbers (¢ontlnued) The senior management team comprised of 7 staff members during the year, for the year to 31 March 2025., the Chief Executive {also the Group secretary) and senior managers received a total remuneration and benefits cost of £417,298 (2024.. £470,968). During the year no Trustee ￿CeiVed any remuneration12024.' None). No Trustee received reimbursement of expenses in the year (2024.. None). The average number of employees within the group during the period was made up as follows.. 2025 Number 2024 Number Head office Facilities 22 264 18 331 286 349 10. Net incoming resources- Group 2025 2024 The net In¢omlng resources are stated after ¢harglng: Auditors, remuneration (including expenses) - for audit - for other servI￿S 28,000 2,000 905 26,500 2,000 4,269 Hire of other assets- operating leases 11. Retlrement benefltscheme- Group and Charlty The group pension cost charge for the year, made up of pensions contributions and defined benefit scheme adjustments amounted to £562,573 (2024.. £547.563). The charge for the charity amounted to £542,988 (2024.. £527,743). The charity is an admitted body of the Lothian Pension Fund. The Superannuation Fund 18 a defined benefit 8¢heme into which employee, and employer's contributions, and interest and dividends from investments are paid and from which pensions, lump sums and superannuation benefits are paid out. Employees, contributions are fixed by stalule and employerfs basic contributions are assessed every three years by an actuary and are fixed to ensure the fund remains solvent and, in a position, lo meet its future liabilities. The actuarial method used is known as Projected Unil Credit Method. The last actuarial valuation was at 31 March 2025 and following this valuation employer's contributions were set at 16.6 /0 for the years ended 31 March 2025. Employer's contributions for group for the year to 31 March 2025 amounted to £489,000 {2024.' £497,000). The pension scheme was transferred to th8 charitable company with effect from 1 October 2009, at which date the actuarial valuation showed a liability of £220,000. Under the Transfer Agreement entered into be￿een Enjoy East Lolhian Limited and East Lolhian Council, the Council have undertaken to guarantee the pension scheme should the liability crystallise and insufficient funds be held by Enjoy East Lothian Limited to settle their obligation. In accordance with Chapter 28 of FRS 102 (Employee benefits) a valuation of the fund was carried out al 31 March 2025, by Hymans Robertson, independent actuaries. Hymans Robertson calculated the pension assets and liabilities as al 31 March 2025 by rolling forward its full actuarial valuation dated 31 March 2023, allowing for the changes in financial assumptions as prescribed under FRS 102. The estimated group employer contributions for the year to 31 March 2025 are £489,000. Maln assumptlons 31 March 2025 per annum 31 March 2024 '/• per annum Inflation I Pension Increase Rale Salary Increase Rale Discount Rate 2.75/0 2.75 % 3.250 The return on the fund in market value terms for the period to 31 March 2025 was estimated based on actual fund returns as provided by the administering authority and index returns where necessary. 33 ENJOY EAST LOTHIAN LIMITED Notes to the financial statements For the year ended 31 March 2025 11. Retlrement beneftt scheme- Group and Charlty (¢ontlnued) Mortality Life expectancy is based on the Fund's Vita Curves with improvements in line with the CMI 2023 model, wlh a 150 weighting of 2023 land 20221 data, standard smoothing {Sk7), initial adjustment of 0.25 % and a long lemi rale of improvement of 1.5'/0 p.a. Based on these assumptions, the average future life expectancies at age 65 are summarised below for both males and females.. Male$ 19.5 years 20.3 years Females 23.1 years 24.6 years Current Pensioners Future Pensioners MaJor categorles of plan assets as a per¢¢ntage of total plan a$set$ The estimated split of assets as al 31 March 2025 is as shown below.. 31 March 2025 31 March 2024 Equities Bonds Property Cash 200/0 9° 17% 8° 3¥0 20 Changes in the Fairvalue of Plan Assets, Defined Benefit Obligation and Net Liability foryearend 31 March 2025 Net asset I {liability) Assets Obligations Opening Position as at 31 March 2024 Impact of net asset ceiling adjustment Opening Position as at 31 March 2024 21,302,000 6,772,000 14 530 000 {14,530,0001 6,772,000 6,772,000 14 530 000 Current service cost Past service Cost Total Servlce Cost (562.0001 (562,0001 (562,000) (562,0001 Interest income on plan assets Interest cost on defined benefit obligation Totsl net Interest 1,040,000 1.Q40,000 714,000 326,000 714,000 (714,000) 1,040,000 Total defined benefit cost recognised in Profit or (Loss) 1 Q40 000 1,276,000 236,000 Cash flows Plan participants, contributions Employer contributions Benefits paid Expected ¢loslng position 164,000 489,000 332.000 15,891,000 (164,000) 489.000 332,000 115,638,000) 253,000 Remeasur8ments Changes in financial assumptions Changes in demographic assumptions Other experience Return on assets excluding amounts included in net interest Total remeasurements re¢ognlsed In Other Comprehenslve Income 2,862,000 22,000 128,000 2,862,000 22,000 128,000 1,302,000 1.302,000 {1,302,0001 3,012,000 1,710,000 Impact of nel asset ceiling adjustment {1.963,0001 {1,963,0001 Closing position as at 31 March 2025 12,626,000 12,626,000 34 ENJOY EAST LOTHIAN LIMITED Notes to the financial statements For the year ended 31 March 2025 An asset ceiling has been applied which restricts the actuarial loss to £253,000 {2024.' £663,000) and restricts the pension asset lo £nil. 12. Fixed assets Group and Charity flxed assets Land and bulldlngs Plant and machinery Furniture and equipment Total Cost or valuatlon Al 1 April 2024 Additions Revaluation Disposals At 31 March 2025 6,757,855 3,919 517,741 153,839 582 799,093 68,334 7,710,787 72.835 517.741 7,279.515 154421 867,427 8.301,363 Depreclation At 1 April 2024 Charge for year Revaluation Disposals At 31 March 2025 856,141 285,612 (1,141,753) 137,583 6,197 647.774 60,267 1,641,498 352,076 {1,141,753) 143,780 708 041 851,821 Net book value At 31 March 2025 7,279,515 159,386 7,449.542 At 31 March 2024 5 901714 16,256 151.319 6 069,289 The charitable company's land and buildings at Dunbar were revalued at 31 March 2025 by DVS Propety Specialists, a commercial ami of the Valuation offi￿ Agency IVOAI, on the depreciated replacement cost basis. The Trustees are not aware of any material changes Sin￿ this valuation. If the property had not been revalued, il would be included on the historical cost basis al the following amounts.. 2025 2024 Co81 Depreaalion 4,340,076 1,683,120 2,656.956 4,336,157 1.487.447 2 848710 13. Stocks Group Charity 2025 2024 2025 2024 Finished goods and goods for resale 46,843 78,865 34,672 66,694 46,843 78,865 34,672 66,694 14. Debtors Group Charlty 2025 2024 2025 2024 Trade debtors Prepayments and accrued income Balance due from trading subsidiary 128,148 86,445 122,114 59,687 111,688 91,759 624,130 122,114 59,574 271.586 214,593 181.801 827,577 453,274 35 ENJOY EAST LOTHIAN LIMITED Notes to the financial statements Forthe year ended 31 March 2025 15. Creditors Group Charlty 2025 2024 2025 2024 Trade creditors Balan￿ due lo East Lothian Council Other taxes and social security Accruals and deferred income Other creditors VAT 169,189 66.084 46,206 204,097 47,004 95,092 36,842 40,418 40,354 406,526 48,418 116,830 168,294 66,084 46,206 181.747 47,005 94,334 34,214 40.418 40,354 380,746 48,418 116,830 627,672 689.388 603,670 660,980 16. Share Capital The charitable company is limited by guarantees of £1 per Director and has no share capital. At 31 March 2025 there were bmelve Directors (2024.. Iwelve). 17. Reserves Group Reserves Balance at Incoming 31 Mar 2024 Resource$ Resources Expended Other Gainl Balance at Loss 31 Mar 2025 Funds Unrestrlcted Non designated Revaluation reserve Pension reserve Total unrestricted 3,620,825 3,583,914 6,992,767 17,444,633) 3,168,959 5.243.408 1.659.494 253.000 1406,494 253 000 7,191,633 7,204,739 6,992,767 8,412,367 Restricted Old Course Pulling Gre&n Inst811alion Musselburgh Common Good Miller Homes Dunbar Community Council Gymnastics Equipment Throwing Cage {470AI Throwing Cage {50 %) Pool Pods Installation Dunbar Harbour Trust Exercise Support Programme NHS Weight Management Macmillan East Lothian Community InteNenlion Fund EDF Torness 7.800 7,800 21,599 25.478 400 1,936 {3.8791 {4001 {1,936) (311 (4,975) (5,338) (6,286) (1,5001 11,7401 12,4921 12,8831 31 17,154 18,404 23,566 1,500 1,740 12,179 13,066 17,280 8.817 2,863 50,000 600 6,325 50,000 600 32,040 70,195 128.249 Total funds 7,274,934 7,082,861 7,223,673 1406 494 8,540,616 36 ENJOY EAST LOTHIAN LIMITED Notes to the financial statements For the year ended 31 March 2025 17. ReseNes (contlnued) Group Res8￿eS Balance at Incoming 31 Mar 2023 Resources Resources Other Galnl Balance at Expended Loss 31 Mar 2024 Funds Unrestricted Non designated Revaluation reseNe Pension reserve Total unrestricted 3,803,991 3,583,914 459 000 7,846,905 6,829.627 (7,012,793) 3,620,825 3,583,g14 204,000 6,808,793 663,000 663,000 6.829 627 7,204,739 Restrlcted Old Course Putting Green Inslallalion Macmillan Move More Proje¢l ELC Young Carer Scheme Exercise Referral Gymnastics Equipment Throwing Cage1470/01 Throwing Cage1500/0 Pool Pods Installatio Soutsr Trust Dunbar Harbour Trust Exercise Support Programme poli￿ Scotland Parkinson's UK 7,800 7,800 30,699 10.000 29,227 (30,6991 110,0001 135,112) 5,885 31 31 17,154 18,404 23,566 19,900 21,350 29,657 527 {2,746) (2,946} 16,0911 {5271 1,500 1,740 500 637 1,500 1,740 15001 13,6371 3,000 18,093 7,864,998 144,360 6,973,987 92,258 6,901051 70,195 7,274,934 Total funds 663,QOO Charity reserves Balan¢0 at Incoming 31 Mar 2024 Resources Resources Expended Other Gainl Balance at Loss 31 Mar 2025 Funds Unrestricted Non designated Revaluation reserve Pension reserve Total unrestricted 3,824,822 3,583,914 6,609,726 {6,983,790) 3,450,758 5,243,408 1,659,494 253,000 1,406,494 253,000 6 730,790 7,408,736 6 609 726 8,694.166 Restrlcted Old Course Putting Green Installation Musselburgh Common Good Miller Homes Dunbar Community Council Gymnastics Equipment Throwing Cage1470/0) Throwing Cage {50 /0) Pool Pods Installation Dunbar Harbour Trust Exercise Support Programme NHS Weight Management Macmillan East Lothian Community Inletvenlion Fund EDF Torness 7,800 7,800 21,599 25.478 400 1,936 13,8791 14001 11.9361 {31) {4,975) {5,338) (6,2861 (1,500} (1,7401 12,4921 12,8631 31 17,154 18,404 23,566 1.500 1,740 12,179 13,066 17,280 8,817 2,863 50.000 60Q 6,325 50.000 1600) 90,094 32,040 128249 Total funds 7,478,931 6,699.820 6 762,830 1,406,494 8,822,415 37 ENJOY EAST LOTHIAN LIMITED Notes to the financial statements For the year ended 31 March 2025 17. ReseNes {continuedl Charity resenies Balan¢0 at Incoming 31 Mar 2023 Resources Resources Expended Other Gainl Balance at Loss 31 Mar 2024 Funds Unrestricted Non designated Revaluation reserve Pension reseNe Total unrestricted 3,934,203 3,583,914 459,000 7,977,117 6,492,881 16,602,262) 3,824,822 3,583,914 204.000 6,398,262 663.000 663,000 6,492,881 7,408,736 Restricted Old CoLJrse Putting Green Installation Exercise Referral Gymnastics Equipment Throwing Cage147'/0) Throwing Cage {50Yo) Pool Pods Installation Soutar Trust Dunbar Harbour Trust Exercise Support Programme Poli￿ Sco118nd Parkinson's UK 7.800 5,885 31 7,800 29,227 {35,112) 31 17,154 18,404 23.566 19,900 21,350 29.657 527 (2,7461 (2,9461 (6,091) 15271 1,500 1.740 500 637 18,093 1,500 1,740 {500) 3,637 51,559 3,000 103,661 70,195 Total funds 7,995.210 6,596,542 6,449,821 663.000 7.478.931 Old Course Puttlng Green Installation: These funds were made available from East Lothian Council IELCI to create a putting green at the Musselburgh Old Golf Course. managed by enjoy. Exercise Referral.. East Lammemuir Community Council funding to fund training of coaches in an exercise referral qualification. Gymnastlcs Equlpment.. Community Benefit Funding via the Gordon Fraser Charitable Trust for the purchase of an gymnastics equipment for the benefit of the East Lothian's chiklren. Soutar Trust: Money received to purchase Pickelb211 equipment. Throwing Cage {470kl: Partial funding provided for the installation of a throwing cage by Grantscape. Throwing Cage {50 /ol: Partial funding provided for the installation of a throwing cage by Valencia Communities Fund. Pool Pods Installatlon: North Berwick Trust grant provided for accessibility improvements and maintenance of the pools al Dunbar Leisure Cenlre. Dunbar Community Trust: Funds made available to fund two pool platforms. Dunbar Harbour Trust: The Harbour Trust agreed lo fund 50 % of the cost of repairing the Harbour Wall, which sils within Enjoy's ownership of Dunbar Leisure Cenlre. EDF Energy: As a large employer obtaining corporate memberships, EDF offered £1000 which is being used to fund 4 NPLQ qualifications. Exercise Support Programme.. Funding provided by Mid & East Lothian Drugs & Alcohol Support Group to carry out an exercise support programmes Police Scotland: Funds provided lo hire pitches to redurE antisocial beh2viour over period of lime. Parkinson's UK: Funding provided lo conduct a 12-week exercise programme for those with Parkinson's. Mu$selburgh Common Good: Funding to install a Pool Pod al Musselburgh Sports Centre. Includes full purchase, install, delivery and 1 year Maintenan￿ -'resources expended, relates lo the revenue element only- in this case, non-capital costs and then annual depreciation costs. Miller Homes: Funding from Miller Homes Community Fund approved for swim equipment. Dunbar Communlty Councll: Funding for bleed control kits. East Lothian Community Intervention Fund: Wave Machine at Dunbar requiring ar¢a £100k of repairs - Ihis is a £50k contribution towards this cost. EDF Torne5s: Funding from EDF Communication and Community Team to part-fund provision of NPLQ courses. 38 ENJOY EAST LOTHIAN LIMITED Notes to the financial statements For the year ended 31 March 2025 17. Reserves {contlnuedl Analy$ls of net assets between funds Forthe year ended 31 March 2025 Group funds Unrestrlcted Funds Deslgnated Funds Restricted Fund8 Total Fund$ Fixed assets Net cutrent assets Retirement benefit scheme deficit 2,096,823 1,072,136 5,243,408 114,124 14,125 7,454,355 1,086,261 3,168,959 5.243.408 128,249 8,540,616 Charity funds Unrestricted Funds Deglgnated Funds Restricted Funds Total Fund$ Fixed assets Nel current assets Retirement benefit scheme deficit 2,092,010 1,358,748 5,243,408 114.124 14,125 7,449,542 1,372,873 3,450.758 5,243,408 128,249 8,822,415 Forthe year ended 31 March 2024 Group funds Unrestricted Funds Designated Funds Restrlcted Funds Total Funds Fixed assets Nel current assets Retirement benefit scheme deficit 2,426.251 1,194,574 3,583,914 59,124 11,071 6.069,289 1,205,645 3.620,825 3,583,914 70.195 7,274,934 Charity fundg Unrestricted Funds Designated Funds Restricted Funds Total Fund$ Fixed assets Net current assets Retirement benefit scheme deficit 2,426.251 1,398,571 3,583,914 59,124 11,071 6.069.289 1,409,642 3,824,822 3,583,914 70,195 7,478,931 39 ENJOY EAST LOTHIAN LIMITED Notes to the financial statements For the year ended 31 March 2025 18. Reconclliatlon of net incoming resources to net cash inflow from operating activities Group 2025 2024 Nel incomingl{outgoing) resour￿5 Depre￿atIOn on tangible fixed assets Decreasellincrease) in stocks Ilncrease)Idecrease in debtors (Decreasellincrease in creditors Defined benefit pension scheme realised movement (140,812) 352,076 32,022 (32,795) 161,713) 1253.0001 72,936 344,787 1,848 13,1701 1214,3861 1204,0001 Net ¢a$h Inflowlloutflowl from operatlng actlvltles 104,222 Charity 2025 2024 Nel incominglloutgoing) resources Depreciation on tangible fixed assets Decreasellincrease) in stocks Decreasellincrease) in debtors IDecrease)lincrease in creditors Defined benefit pension scheme realised movement {63,0101 352.076 32,022 {374,3011 {57,3121 (253,0001 146,721 344,787 2,655 73,810 {208.465) {204,000) Net cash Inflowlloufflow) from operatlng a¢tlvltle$ 363,525 155508 19. Operatlng lease commltments The annual commitments under operating leases and fixed temi rentals are analysed according to the year in which the lease expires as follows: Group and Charlty 2025 Other 2024 Other Operating lease- within one year Operating lease- bebNeen fvjo and five years Operating lease- more than five years 3,115 6,250 4,269 9,250 9,365 13,519 40 ENJOY EAST LOTHIAN LIMITED Notes to the financial statements For the year ended 31 March 2025 20. Capital commitments Amounts contracted for bul not provided in the financial slalements are as follows.. Group and Charity 2025 2024 Acquisition of tangible fixed assets 187,362 Funded by.. Grants Private finance ReseNes 50,000 137 362 187,362 41 ENJOY EAST LOTHIAN LIMITED Notes to the financial statements For the year ended 31 March 2025 21. Subsldlary undertakings and basis of consolidatlon The group accounts include the accounts of Enjoy East Lothian Limited and ils wholly owned subsidiary Enjoy East Lothian Trading Limited {'the subsidiary,). The principal activity the subsidiary is the operation of cafes. The subsidiary is a private company limited by shares and has called up share capital of £1. The subsidiary has a 31 March year end and is registered in Scotland. During the year, the subsidiary did not make a Gift Aid payment to the Company12024.' £nil). Its overall result for the year after taxation was a loss of £77,802 (2024.. £73,785). Exemption has been taken under FRS 102 section 33.. 'Related Party Disclosures paragraph 33.1A from disclosing group related transactions as the entire share capital and voting rights of all subsidiaries are held within the group. 22. Income from subsidiary trading actlvltles The subsidiary's trading results for the year, as extracted from the financial statements, are summarised below. Full audited accounts are filed with Companies House. 2025 2024 Turnover Cost of sales 378,959 {164,711) 372,789 {159,3161 Gross profit 214 248 213473 Administrative expenses {296,132) (291,9141 Operatlng loss (81,884) {78,4411 Interest receivable Taxation 4,082 4,656 Loss for the flnan¢lal year 73,785 23. Members Interests Due to the nature of the charitable company's operations and composition of ils Board, being comprised of individuals. and representatives from the public sector, community, and commercial organisalions, il is inevitable that transactions will take place with companies and organisalions in which a member of Enjoy East Lothian Limited has an interest. The charitable company works in partnership wth East Lothian Council with which Iransa¢lions have been undertaken during the year. The following is a list of members of the Board {Committee of Management) who held potentially connected pyjsilions during the year. Table showing potential for Trustee's Connected Interests-. Enloy Trustee Company Occupation Counallor Date Jolned Date Resigned John Mcmillan East Lolhian Council 15 May 2012 Colin McGinn East Lolhian Council Councillor 4 May2018 Lee-Anne Menzies East Lolhian Council Councillor 24 May 2022 Brooke Ritchie East Lothian Council Councillor 24 May 2022 42 ENJOY EAST LOTHIAN LIMITED Notes to the financial statements For the year ended 31 March 2025 24. Post balance sheet events A decision was made in March 2025 to shut the café to the public. Although we fully recognise the benefit that our café's provided lo the communities of East Lolhian within our sport cenlres, financially, Ihe café had been making losses year- upon-year and a full review of the business model was required to secure financial and govemance Mability going fo￿ard. We will be sad to say goodbye to all the staff involved in working at the café when our doors finally close in August 2025. There were no other post balance sheet events for the year ended 31 March 2025. 25. Non audit 8eNlces In common with many other businesses of our size and nature we used our auditors to assist with the preparation of the financial statements. 43