Love Withington Baths - Charities report - 19.3.2

REGISTERED COMPANY NUMBER: 09515855 (England and Wales)

REGISTERED CHARITY NUMBER: 1167366

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2019

for

Love Withington Baths

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

to

17

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with

the financial statements of the charity for the year ended 31 March 2019. The trustees have adopted the provisions of

Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their

accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)

(effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

OBJECTIVES AND ACTIVITIES

Objectives and aims

1. Objects

The objects of Love Withington Baths are to:

1.1 To advance the education of the public, and the knowledge and appreciation of the heritage of South Manchester by

the preservation of the buildings known as Withington Baths

1.2 To advance education by the provision of facilities for physical education and swimming lessons at the Baths;

1.3 To advance the health of the public by the provision of facilities for swimming, exercise and physical therapies at the

Baths for the Intended Beneficiaries;

1.4 To advance amateur sport by the provision of facilities for swimming and other sports at the Baths for the Intended

Beneficiaries;

1.5 To promote community development in an area of social and economic deprivation by the promotion of urban

regeneration in particular in the areas of Withington and Old Moat, South Manchester, as follows:

1.5.1 the creation of training and employment opportunities by the provision of workspace, buildings, and/or land for

use on favourable terms;

1.5.2 the maintenance, improvement or provision of public amenities;

1.5.3 the preservation of buildings or sites of historic or architectural importance.

1.6 the provision of recreational facilities for the public at large or those who by reason of their youth, age, infirmity or

disablement, financial hardship or social and economic circumstances, have need of such facilities.

1.7 To promote for the benefit of the inhabitants of Withington and Old Moat in South Manchester and the surrounding

area the provision of facilities for recreation or other leisure time occupation of individuals who have need of such

facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances

or for the public at large in the interests of social welfare and with the object of improving the condition of life of the

said inhabitants.

2. Strategy to achieve the objectives

Love Withington Baths took over the running of Withington Baths and Leisure Centre in June 2015. In accordance with

our business plan, the priorities for year 4 continued to focus on the operation of the facility and the provision of our

core services as well as the diversification of activities which take place within the Baths. With regard to the

diversification we completed the refurbishment of the first floor living space into a co-working facility for local

self-employed and sole traders. This will open in April and is a major milestone in our journey into a community hub.

3. Main activities undertaken during the year

Operation of the facility. We have:

- Continued to run external communications including social media

- Carried out repairs to the building's M & E plant and machinery

Provision of our core services. We have:

- Provided gym services to approximately 1,700 members

- Provided swimming for nearly 500 children through our schools swimming programme

- Provided after-school swimming for nearly 500 children every week of the year

- Provided our baby swimming programme for 50 Under 3's

- Introduced 1-2-1 swimming lessons for young people and adults

- Provided a Family Fun swim every Sunday morning

Additional services. We have also:

- Completed the refurbishment of what was originally upstairs living quarters into a co-working space providing 21

workstations for self-employed and sole traders. It includes a kitchen and a meeting room as well as a range of seating

options.

- Secured funding of £80,000 from the National Lottery Heritage Fund for the Development Phase of a project to

refurbish the main pool area and develop an engagement programme for members and non-members

- Run approximately 50 pool parties for children aged 6 - 11

- Hosted community events for Withington Civic Society and drop-in sessions for our local MP

- Hosted 3 PARS classes for the NHS each week for an average of 10 people per class

- Provided a class per week for older people free of charge (Silver Circuits)

4. Trustee Review

This has been another really positive year, building on the achievements of Years 1 - 3. Following the consolidation of

the business during years 1 - 3 whilst we built up our management capacity, we have now introduced a range of new

activities to improve our member experience. These include classes as well as additional equipment for the gym space.

We now have 60 classes per week.

We have also been successful in growing our swim school membership with numbers now approaching 500. This

expansion has been supported by a volunteering programme to grow our teaching capacity and we will be looking to

grow this over the next 12 months.

Local competition from a new gym in the largely student area of Fallowfield has affected our member numbers this year

but these have been in the lowest revenue categories so the impact has been largely offset by the increase in swim school

members. The shallower rise and fall in our users as a result of less students has also helped us to manage the business

more smoothly.

Financially, we remain in good health. We have a sinking fund of over £200,000 which we will utilise as our

contribution to the NLHF if we are successful at securing delivery phase funding. We will still be able to retain our

£40,000 reserve as set out in our reserve policy. We are increasing staff salaries in Year 5 by 3% to bring in line with the

Living Wage. Gas and water prices are locked in for the next two years but electricity will need to be renewed in June.

5. Future developments

In Year 5 we aim to:

- Secure funding from the National Lottery Heritage Fund for £1M to refurbish the main swimming pool and carry out

other essential remedial work as well as deliver a comprehensive engagement programme to raise member and

non-member awareness of the Baths story

- Promote the co-working space so that we hit our targets for user numbers

- Sign a long-term lease with Manchester City Council

- Undertake an additional capital project to improve the sauna area

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by

guarantee, as defined by the Companies Act 2006.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

09515855 (England and Wales)

Registered Charity number

1167366

Registered office

Unit 3, Building 2

The Colony Wilmslow

Altrincham Road

Wilmslow

Cheshire

SK9 4LY

Trustees

S N Astley Landlord Property Devmt

A De Araujo Business Change Manager

D Payne Self Employed

P Smith Director

D Shannon Director

Ms J Green

Company Secretary

W B R Pinnock

Independent Examiner

Ascendis

Chartered Certified Accountants & Business Advisor

Unit 3, Building 2

The Colony Wilmslow

Altrincham Road

Wilmslow

Cheshire

SK9 4LY

Approved by order of the board of trustees on 11 March 2020 and signed on its behalf by:

P Smith - Trustee

Independent examiner's report to the trustees of Love Withington Baths ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2019.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for

the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act

and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried

out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the

Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm

that I am qualified to undertake the examination because I am a registered member of ACCA which is one of the listed

bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the

examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

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

4.

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

I have no concerns and have come across no other matters in connection with the examination to which attention should

be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Ascendis Business Services Limited

ACCA

Ascendis

Chartered Certified Accountants & Business Advisor

Unit 3, Building 2

The Colony Wilmslow

Altrincham Road

Wilmslow

Cheshire

SK9 4LY

11 March 2020

2019

2018

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

1,446

-

1,446

7,415

Other trading activities

3

730,297

67,850

798,147

700,351

Investment income

4

569

-

569

447

Total

732,312

67,850

800,162

708,213

EXPENDITURE ON

Resources expended

5

547,491

-

547,491

42,018

Other

-

-

-

485,972

Total

547,491

-

547,491

527,990

NET INCOME

184,821

67,850

252,671

180,223

RECONCILIATION OF FUNDS

Total funds brought forward

286,634

-

286,634

106,411

TOTAL FUNDS CARRIED FORWARD

471,455

67,850

539,305

286,634

2019

2018

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

10

78,156

118,433

196,589

47,524

CURRENT ASSETS

Debtors

11

4,768

-

4,768

2,968

Cash at bank and in hand

459,970

-

459,970

314,098

464,738

-

464,738

317,066

CREDITORS

Amounts falling due within one year

12

(71,439

)

(15,804

)

(87,243

)

(77,956

)

NET CURRENT ASSETS

393,299

(15,804

)

377,495

239,110

TOTAL ASSETS LESS CURRENT LIABILITIES

471,455

102,629

574,084

286,634

CREDITORS

Amounts falling due after more than one year

13

-

(34,779

)

(34,779

)

-

NET ASSETS

471,455

67,850

539,305

286,634

FUNDS

15

Unrestricted funds

471,455

286,634

Restricted funds

67,850

-

TOTAL FUNDS

539,305

286,634

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2019 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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

The financial statements were approved by the Board of Trustees on 11 March 2020 and were signed on its behalf by:

P Smith - Trustee

Cash flows from operating activities

Cash generated from operations

1

260,036

187,724

Net cash provided by operating activities

260,036

187,724

Cash flows from investing activities

Purchase of tangible fixed assets

(165,317

)

(31,749

)

Interest received

569

447

Net cash used in investing activities

(164,748

)

(31,302

)

Cash flows from financing activities

New loans in year

53,000

-

Loan repayments in year

(2,416

)

(6,250

)

Net cash provided by/(used in) financing activities

50,584

(6,250

)

Change in cash and cash equivalents in the reporting period

145,872

150,172

Cash and cash equivalents at the beginning of the reporting period

314,098

163,926

Cash and cash equivalents at the end of the reporting period

459,970

314,098

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2019

2018

£

£

Net income for the reporting period (as per the Statement of Financial Activities)

252,671

180,223

Adjustments for:

Depreciation charges

16,251

5,429

Interest received

(569

)

(447

)

(Increase)/decrease in debtors

(1,800

)

6,549

Decrease in creditors

(6,517

)

(4,030

)

Net cash provided by operations

260,036

187,724

1.

STATE AID

During the year Love Withington Baths received a £53,000 loan, 33.5% (£17,755) of this constituted state aid.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been

prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement

of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial

Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)',

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost

convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it

is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the

charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and

the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has

been classified under headings that aggregate all cost related to the category. Where costs cannot be directly

attributed to particular headings they have been allocated to activities on a basis consistent with the use of

resources.

Tangible fixed assets

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

life.

Improvements to property

-

15% on reducing balance

Plant and machinery

-

25% on reducing balance

Taxation

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

Fund accounting

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

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions

arise when specified by the donor or when funds are raised for particular restricted purposes.

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis

over the period of the lease.

The total future minimum operating lease repayments are as follows:

- Not later than one year £5,244

- Later than one year and not later than five years £1,748

Total lease payments recognised as expense during year ended March 2019: £5,244

3.	OTHER TRADING ACTIVITIES

2019

2018

£

£

Membership fees

531,053

532,041

Shop income

7,235

6,468

Room hire

22,592

18,813

Use of swimming pool

169,417

143,029

Government grant

67,850

-

798,147

700,351

4.	INVESTMENT INCOME

2019

2018

£

£

Deposit account interest

363

-

Interest receivable - trading

206

447

569

447

5.	RESOURCES EXPENDED

Raising donations and legacies

2019

2018

£

£

Support costs

486,238

-

6.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2019

2018

£

£

Depreciation - owned assets

16,252

5,429

Other operating leases

5,244

17,372

7.	TRUSTEES' REMUNERATION AND BENEFITS

Trustees' remuneration totalled £1,500 for the year ended 31st March 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2019 nor for the year ended 31 March 2018.

8.	STAFF COSTS

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

2019

2018

Average employees

18

16

No employees received emoluments in excess of £60,000.

9.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

7,415

-

7,415

Other trading activities

700,351

-

700,351

Investment income

447

-

447

Total

708,213

-

708,213

EXPENDITURE ON

Resources expended

42,018

-

42,018

Other

485,972

-

485,972

Total

527,990

-

527,990

NET INCOME

180,223

-

180,223

RECONCILIATION OF FUNDS

Total funds brought forward

106,411

-

106,411

TOTAL FUNDS CARRIED FORWARD

286,634

-

286,634

10.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

property

machinery

Totals

£

£

£

COST

At 1 April 2018

53,659

1,642

55,301

Additions

153,835

11,482

165,317

At 31 March 2019

207,494

13,124

220,618

DEPRECIATION

At 1 April 2018

6,976

801

7,777

Charge for year

15,746

506

16,252

At 31 March 2019

22,722

1,307

24,029

NET BOOK VALUE

At 31 March 2019

184,772

11,817

196,589

At 31 March 2018

46,683

841

47,524

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Other debtors

-

600

Prepayments

4,768

2,368

4,768

2,968

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Other loans (see note 14)

15,804

-

Trade creditors

6,393

5,805

Social security and other taxes

4,947

9,815

Other creditors

23,707

828

Accruals and deferred income

36,392

61,508

87,243

77,956

13.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Other loans (see note 14)

34,779

-

14.

LOANS

An analysis of the maturity of loans is given below:

2019

2018

£

£

Amounts falling due within one year on demand:

Other loans

15,804

-

Amounts falling due between two and five years:

Other loans - 2-5 years

34,779

-

15.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.18

in funds

31.3.19

£

£

£

Unrestricted funds

General fund

286,634

184,821

471,455

Restricted funds

Northern Impact Fund

-

27,000

27,000

Heritage Lottery Fund

-

40,850

40,850

-

67,850

67,850

TOTAL FUNDS

286,634

252,671

539,305

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

732,312

(547,491

)

184,821

Restricted funds

Northern Impact Fund

27,000

-

27,000

Heritage Lottery Fund

40,850

-

40,850

67,850

-

67,850

TOTAL FUNDS

800,162

(547,491

)

252,671