Bridgnorth Rugby Club Limited - Charities report - 22.2

REGISTERED COMPANY NUMBER: 07777636 (England and Wales)

REGISTERED CHARITY NUMBER: 1198777

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2023

FOR

BRIDGNORTH RUGBY CLUB LIMITED

(A COMPANY LIMITED BY GUARANTEE)

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Statement of Financial Position

6

to

7

Notes to the Financial Statements

8

to

13

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 31st May 2023. 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 Activities

The objectives of the Charity are to promote community participation in healthy recreation by providing facilities for playing rugby union football and other activities to generally encourage and facilitate the playing of rugby union football and to promote any charitable purpose for the benefit of the public as may from time to time be determined by the Trustees in their sole discretion.

The main activities of the Charity include the playing and coaching of rugby union football from mini and junior age 4 years old and upwards through to senior Mens and Womens rugby where Bridgnorth Rugby Club competes in the Regional League structure organised and run by the Rugby Football Union of which the Charity is an affiliated member.

Fund Raising activities include the organising and running of a number of successful events including the Rugby Club Barn Dance, participation in the Bridgnorth Walk, Annual Fireworks Show with just under 5,000 attendees and regular pre match Fundraising Lunches.

The Trustees would like to acknowledge the commitment shown by all the volunteers on which the Charity depends for its existence and their support cannot be commended highly enough.

Achievements and Performance

The rugby playing performances at the differing levels can be characterised by the Mens seniors team finishing 2nd in the Regional 1 Midlands League which is the highest position achieved in its history. The Womens team continued their growth and finished 3rd in the Womens NC 1 Midlands league. The Mini and Junior section for boys and girls which has 270 members is coached by a combination of former and current players. 10 of our youngsters have achieved Academy status at various England and Midlands West levels and we had 2 of our boys selected at under 17 level for North Midlands and 2 of our girls represented North Midlands at under 16 level. Four of our former Colts team will make their debuts for the First XV in the forthcoming season.

Planning Permission to build a New Clubhouse on the Edgar Davies Ground at Bandon Lane, Bridgnorth was granted on 22nd February 2022 by Shropshire Council with work commencing in August 2022. A building contract was awarded to a selected local contractor and work is due for completion in early 2024. The previous Clubhouse in Bridge Street was sold in the market and the completion of the sale took place in October 2023.

A number of local community organisations have been encouraged to share the Charity's facilities including Bridgnorth Canoe Club, Faye's Boot Camp, Lisa's Fitness Training, Kids Camps in school holidays, Crucial Crew for teaching 10/11 year olds critical life skills, Duke of Edinburgh Awards Camping, Bridgnorth Traders Markets, U3A, Shropshire Fire and Rescue Training, Police and local Community Dog Training as well as a number of local sporting clubs, employers and other organisations who have hosted their events at the Edgar Davies Ground.

Financial Review

With the New Clubhouse under construction and the final costs of this project yet to be finalised the Annual Statement of Financial Position is a work in progress as these construction and commissioning works proceed to completion. There was a contribution in the period of £173,197 which includes £113,261 of Funds raised for the New Clubhouse (2021/22 £17,148)) which brings Total Charity Funds to £579,021 (2021/22 £405,824). The increased contribution compared to the previous year was largely due to the fund raising initiatives for the New Clubhouse but also includes an improved trading performance from the Charity due to the increases in Fund Raising Events and Sponsorship offset by some increases in Equipment costs where the tri-annual replacement of kit costs are taken in the year of purchase.

The building of the New Clubhouse commenced in August 2022 and is fully funded by the generous provision of an interest free loan from one of the Rugby Club Vice Presidents, the sale of the existing Clubhouse, several fund raising initiatives including Lottery Funding, a Patrons and Donors Programme, Charity dinners, lunches and sporting events, Crowd Funding initiatives, a Buy a Brick campaign together with sporting and other donations. Any outstanding balance due on the loan will be repaid from existing Charity funds and the surpluses generated from the Charity's activities over the agreed repayment period.

The Trustees are confident that plans for funding and building the new Clubhouse and the current Business Plan prepared by the Management Team are achievable with the continued support of the volunteers and staff members who have brought the Charity its continuing successes.

This year has been dominated by the construction of the New Clubhouse with the building works having suffered some delays due to flooding from the adjacent Severn river and several construction related issues which have been resolved. However the current cash position and future income opportunities remain strong and there is no uncertainty the Charity will continue as a going concern.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity is governed by the Articles of Association of Bridgnorth Rugby Club Limited as adopted by Special Resolution dated 19th August 2021 governed by the Companies Act 2006 and is a Company limited by guarantee.

Recruitment and appointment of new trustees

Trustees are elected or re-elected annually at the Annual General Meeting which is held in August.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

07777636 (England and Wales)

Registered Charity number

1198777

Registered office

The Bull

Bridge Street

Bridgnorth

Shropshire

WV15 5AA

Trustees

Lord G G Hamilton

S J Rutherford

Ms S V Themans

S C Roper

J R Graham

Company Secretary

J D Ritson

Independent Examiner

Stanton Ralph & Co Limited

Chartered Accountants

The Old Police Station

Whitburn Street

Bridgnorth

Shropshire

WV16 4QP

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

Approved by order of the board of trustees on 15th January 2024 and signed on its behalf by:

J R Graham - Trustee

Independent examiner's report to the trustees of Bridgnorth Rugby Club Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st May 2023.

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 member of the Institute of Chartered Accountants in England and Wales, 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.

Darren Foot FCA

Stanton Ralph & Co Limited

Chartered Accountants

The Old Police Station

Whitburn Street

Bridgnorth

Shropshire

WV16 4QP

15th January 2024

31.5.23

31.5.22

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

9,425

113,261

122,686

13,500

Charitable activities

Bridgnorth Rugby Club

41,727

-

41,727

42,478

Other trading activities

2

91,900

-

91,900

13,676

Total

143,052

113,261

256,313

69,654

EXPENDITURE ON

Charitable activities

Bridgnorth Rugby Club

83,116

-

83,116

52,506

NET INCOME

59,936

113,261

173,197

17,148

RECONCILIATION OF FUNDS

Total funds brought forward

405,824

-

405,824

388,676

TOTAL FUNDS CARRIED FORWARD

465,760

113,261

579,021

405,824

31.5.23

31.5.22

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

6

836,457

113,261

949,718

181,898

Investments

7

1

-

1

1

836,458

113,261

949,719

181,899

CURRENT ASSETS

Debtors

8

159,165

-

159,165

130,110

Cash at bank

20,045

-

20,045

107,207

179,210

-

179,210

237,317

CREDITORS

Amounts falling due within one year

9

(9,908

)

-

(9,908

)

(13,392

)

NET CURRENT ASSETS

169,302

-

169,302

223,925

TOTAL ASSETS LESS CURRENT LIABILITIES

1,005,760

113,261

1,119,021

405,824

CREDITORS

Amounts falling due after more than one year

10

(540,000

)

-

(540,000

)

-

NET ASSETS

465,760

113,261

579,021

405,824

FUNDS

12

Unrestricted funds

465,760

405,824

Restricted funds

113,261

-

TOTAL FUNDS

579,021

405,824

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st May 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st May 2023 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 15th January 2024 and were signed on its behalf by:

J R Graham - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

Bridgnorth Rugby Football Club Limited is a charitable company limited by guarantee registered in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 3 of these financial statements.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

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

Preparation of consolidated financial statements

The financial statements contain information about Bridgnorth Rugby Club Limited as an individual company and do not contain consolidated financial information as the parent of a group. The charity is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Income

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Support costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life once the asset is brought into use, as follows:

Freehold property - 1% straight line

Property improvements - 10% straight line

Equipment - 20% straight line

Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Going concern

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

2.	OTHER TRADING ACTIVITIES

31.5.23

31.5.22

£

£

Fundraising events

67,099

8,108

Food sales

8,857

5,568

Sponsorships

15,944

-

91,900

13,676

3.	NET INCOME/(EXPENDITURE)

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

31.5.23

31.5.22

£

£

Depreciation - owned assets

8,210

8,208

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st May 2023 nor for the year ended 31st May 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st May 2023 nor for the year ended 31st May 2022.

5.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

13,500

-

13,500

Charitable activities

Bridgnorth Rugby Club

42,478

-

42,478

Other trading activities

13,676

-

13,676

Total

69,654

-

69,654

EXPENDITURE ON

Charitable activities

Bridgnorth Rugby Club

52,506

-

52,506

NET INCOME

17,148

-

17,148

RECONCILIATION OF FUNDS

Total funds brought forward

388,676

-

388,676

TOTAL FUNDS CARRIED FORWARD

405,824

-

405,824

6.	TANGIBLE FIXED ASSETS

Freehold

Leasehold

property

improvements

Equipment

Totals

£

£

£

£

COST

At 1st June 2022

161,218

68,906

10,968

241,092

Additions

776,030

-

-

776,030

At 31st May 2023

937,248

68,906

10,968

1,017,122

DEPRECIATION

At 1st June 2022

14,991

35,702

8,501

59,194

Charge for year

807

6,891

512

8,210

At 31st May 2023

15,798

42,593

9,013

67,404

NET BOOK VALUE

At 31st May 2023

921,450

26,313

1,955

949,718

At 31st May 2022

146,227

33,204

2,467

181,898

7.	FIXED ASSET INVESTMENTS

Shares in

group

undertaking

£

COST LESS IMPAIRMENT

At 1st June 2022 and 31st May 2023

1

NET BOOK VALUE

At 31st May 2023

1

At 31st May 2022

1

There were no investment assets outside the UK.

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

Bridgnorth Rugby Club (Trading) Limited

Registered office: The Bull, Bridge Street, Bridgnorth, Shropshire, WV15 5AA

Nature of business: Public house and professional rugby

%

Class of share:

holding

Ordinary

100

31.5.23

31.5.22

£

£

Aggregate capital and reserves

7,112

14,781

Loss for the year

(1,342

)

(7,669

)

8.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.23

31.5.22

£

£

Amounts owed by group undertakings

65,318

45,048

VAT

91,760

2,020

Prepayments

2,087

83,042

159,165

130,110

9.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.23

31.5.22

£

£

Trade creditors

3,808

2,337

Accrued expenses

6,100

11,055

9,908

13,392

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

31.5.23

31.5.22

£

£

Other loans (see note 11)

540,000

-

11.

LOANS

An analysis of the maturity of loans is given below:

31.5.23

31.5.22

£

£

Amounts falling due between two and five years:

Other loans - 2-5 years

135,000

-

Amounts falling due in more than five years:

Repayable by instalments:

Other loans more 5yrs instal

405,000

-

Other loans relate to a facility provided by a member of the Club to provide an unsecured loan of up to £1.5million to be used solely for the purpose of the construction of the new clubhouse.

The loan is to be repaid by instalments over 20 years, repayments starting on the second anniversary following the new clubhouse being brought into use. The loan is provided interest-free.

12.	MOVEMENT IN FUNDS

Net

movement

At

At 1.6.22

in funds

31.5.23

£

£

£

Unrestricted funds

General fund

405,824

59,936

465,760

Restricted funds

Restricted funds

-

113,261

113,261

TOTAL FUNDS

405,824

173,197

579,021

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

143,052

(83,116

)

59,936

Restricted funds

Restricted funds

113,261

-

113,261

TOTAL FUNDS

256,313

(83,116

)

173,197

Comparatives for movement in funds

Net

movement

At

At 1.6.21

in funds

31.5.22

£

£

£

Unrestricted funds

General fund

388,676

17,148

405,824

TOTAL FUNDS

388,676

17,148

405,824

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

69,654

(52,506

)

17,148

TOTAL FUNDS

69,654

(52,506

)

17,148

Restricted funds of £113,261 (2022: £nil) relate to donations made by members for the specific purpose of the construction of the new clubhouse.

13.	RELATED PARTY DISCLOSURES

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

There were no other related party transactions for the year ended 31 May 2023.