Love Withington Baths - Charities report - 20.2

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 2020

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 2020. The trustees have adopted the provisions of

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

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

(effective 1 January 2019).

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 5 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 of

our services we had our first full year of operating Withington Works which went well, though we do need to increase

usage to bring us in line with forecasts. A key activity this year has been our success in securing a £0.8M grant from

National Lottery Heritage Fund towards a £1.0M refurbishment project which will restore and repair the swimming pool,

studios and carry out essential structural repairs.

3. Main activities undertaken during the year

Operation of the facility. We have:

- Continued to run external communications including social media

- Completed the refurbishment of our sauna to create a really high-quality space, equipped with showers

Provision of our core services. We have:

- Provided gym services to approximately 1,800 members

- Provided swimming for 480 children through our schools swimming programme

- Provided after-school swimming for over 550 children every week of the year

- Provided our Baby Swimming programme for 50 Under 3's

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

- Provided a Family Fun swim every Sunday morning

Additional services. We have also:

- Secured funding of £0.8M from the National Lottery Heritage Fund for the Delivery 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 3 PARS classes for the NHS each week for an average of 10 people per class

- Delivered 2 classes per week for older people free of charge (Silver Circuits) and introduced 2 weekly table tennis

sessions also targeting older people

4. Trustee Review

This has been another really positive year, building on the achievements of Years 1 - 4, but it closed as Covid -19 hit and

the national lockdown was initiated. We therefore head into 2020/21 with a huge amount of uncertainty regarding the

short term impact upon the Baths and the longer term impact on the leisure sector as a whole. We have performed very

well in the years since we opened so we can head into this uncertainty with sufficient reserves to weather initial storms

but the majority of our reserves are allocated to specific projects, including our NLHF project where we are contracted

to contribute £220,000. This project is critical for our long term sustainability as it will address the physical

improvements to the building which have been identified as urgent in our building condition survey.

We have also been successful in growing our swim school membership with numbers now approaching 550. 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 continue to be in the lowest revenue categories so the financial impact is limited.

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 £60,000 reserve

as set out in our reserve policy. We are increasing staff salaries in Year 5 by 3% to remain 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 2020/21 we aim to:

- Re-open the facility following Covid-19 and restore membership numbers to 2019 levels

- Look after our staff during any lockdowns supporting their general wellbeing

- Initiate our National Heritage Lottery Project

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

- Sign a long-term lease with Manchester City Council

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 31 March 2021 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 2020.

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

31 March 2021

2020

2019

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

3

7,140

-

7,140

1,446

Other trading activities

4

911,632

-

911,632

798,147

Investment income

5

886

-

886

569

Total

919,658

-

919,658

800,162

EXPENDITURE ON

Resources expended

6

693,055

-

693,055

547,491

Other

5,307

-

5,307

-

Total

698,362

-

698,362

547,491

NET INCOME

221,296

-

221,296

252,671

RECONCILIATION OF FUNDS

Total funds brought forward

471,455

67,850

539,305

286,634

TOTAL FUNDS CARRIED FORWARD

692,751

67,850

760,601

539,305

2020

2019

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

12

190,051

102,629

292,680

196,589

CURRENT ASSETS

Debtors

13

1,762

-

1,762

4,768

Cash at bank

529,749

-

529,749

459,970

531,511

-

531,511

464,738

CREDITORS

Amounts falling due within one year

14

(28,811

)

(18,039

)

(46,850

)

(87,243

)

NET CURRENT ASSETS

502,700

(18,039

)

484,661

377,495

TOTAL ASSETS LESS CURRENT LIABILITIES

692,751

84,590

777,341

574,084

CREDITORS

Amounts falling due after more than one year

15

-

(16,740

)

(16,740

)

(34,779

)

NET ASSETS

692,751

67,850

760,601

539,305

FUNDS

17

Unrestricted funds

692,751

471,455

Restricted funds

67,850

67,850

TOTAL FUNDS

760,601

539,305

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 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 and authorised for issue on 31 March 2021 and were signed on its behalf by:

P Smith - Trustee

Cash flows from operating activities

Cash generated from operations

1

227,676

260,036

Net cash provided by operating activities

227,676

260,036

Cash flows from investing activities

Purchase of tangible fixed assets

(142,979

)

(165,317

)

Interest received

886

569

Net cash used in investing activities

(142,093

)

(164,748

)

Cash flows from financing activities

New loans in year

-

53,000

Loan repayments in year

(15,804

)

(2,416

)

Net cash (used in)/provided by financing activities

(15,804

)

50,584

Change in cash and cash equivalents in the reporting period

69,779

145,872

Cash and cash equivalents at the beginning of the reporting period

459,970

314,098

Cash and cash equivalents at the end of the reporting period

529,749

459,970

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

2020

2019

£

£

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

221,296

252,671

Adjustments for:

Depreciation charges

46,888

16,251

Interest received

(886

)

(569

)

Decrease/(increase) in debtors

3,006

(1,800

)

Decrease in creditors

(42,628

)

(6,517

)

Net cash provided by operations

227,676

260,036

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.19

Cash flow

At 31.3.20

£

£

£

Net cash

Cash at bank and in hand

459,970

69,779

529,749

459,970

69,779

529,749

Debt

Debts falling due within 1 year

(15,804

)

(2,235

)

(18,039

)

Debts falling due after 1 year

(34,779

)

18,039

(16,740

)

(50,583

)

15,804

(34,779

)

Total

409,387

85,583

494,970

1.

STATE AID

During the year of 2019 Love Withington Baths received a £53,000 loan. During 2020 they made repayments on

this loan of £19,000, leaving a remaining balance of £34,000, 33.5% (£11,390) 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 2019)', Financial

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

Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 £18,039

- Later than one year and not later than five years £16,740

Total lease payments recognised as expense during year ended March 2020: £5,307

3.	DONATIONS AND LEGACIES

4.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Membership fees

582,632

531,053

Shop income

6,814

7,235

Room hire

26,260

22,592

Use of swimming pool

295,926

169,417

Government grant

-

67,850

911,632

798,147

5.	INVESTMENT INCOME

2020

2019

£

£

Deposit account interest

886

363

Interest receivable - trading

-

206

886

569

6.	RESOURCES EXPENDED

Raising donations and legacies

2020

2019

£

£

Support costs

611,396

486,238

Other trading activities

2020

2019

£

£

Purchases

12,369

5,302

Staff costs

69,290

45,845

Support costs

-

10,106

81,659

61,253

Aggregate amounts

693,055

547,491

7.	SUPPORT COSTS

Management

Finance

Other

Totals

£

£

£

£

Raising donations and legacies

371,394

115,927

124,075

611,396

Other resources expended

-

5,307

-

5,307

371,394

121,234

124,075

616,703

8.	NET INCOME/(EXPENDITURE)

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

2020

2019

£

£

Depreciation - owned assets

46,888

16,252

Other operating leases

5,244

5,244

9.	TRUSTEES' REMUNERATION AND BENEFITS

Trustees' remuneration totalled £9,270 for the year ended 31st March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2020 nor for the year ended 31 March 2019.

10.	STAFF COSTS

2020

2019

£

£

Wages and salaries

397,710

318,846

Social security costs

19,646

15,766

417,356

334,612

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

2020

2019

Average employees

21

18

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

11.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

1,446

-

1,446

Other trading activities

730,297

67,850

798,147

Investment income

569

-

569

Total

732,312

67,850

800,162

EXPENDITURE ON

Resources expended

547,491

-

547,491

NET INCOME

184,821

67,850

252,671

RECONCILIATION OF FUNDS

Total funds brought forward

286,634

-

286,634

TOTAL FUNDS CARRIED FORWARD

471,455

67,850

539,305

12.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

property

machinery

Totals

£

£

£

COST

At 1 April 2019

207,494

13,124

220,618

Additions

131,677

11,302

142,979

At 31 March 2020

339,171

24,426

363,597

DEPRECIATION

At 1 April 2019

22,722

1,307

24,029

Charge for year

41,684

5,204

46,888

At 31 March 2020

64,406

6,511

70,917

NET BOOK VALUE

At 31 March 2020

274,765

17,915

292,680

At 31 March 2019

184,772

11,817

196,589

13.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Prepayments

1,762

4,768

14.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Other loans (see note 16)

18,039

15,804

Trade creditors

3,384

6,393

Social security and other taxes

9,761

4,947

Other creditors

1,177

23,707

Accruals and deferred income

14,489

36,392

46,850

87,243

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

2020

2019

£

£

Other loans (see note 16)

16,740

34,779

16.

LOANS

An analysis of the maturity of loans is given below:

2020

2019

£

£

Amounts falling due within one year on demand:

Other loans

18,039

15,804

Amounts falling due between two and five years:

Other loans - 2-5 years

16,740

34,779

17.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.19

in funds

31.3.20

£

£

£

Unrestricted funds

General fund

471,455

221,296

692,751

Restricted funds

Northern Impact Fund

27,000

-

27,000

Heritage Lottery Fund

40,850

-

40,850

67,850

-

67,850

TOTAL FUNDS

539,305

221,296

760,601