Love Withington Baths - Charities report - 18.1

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 2018

for

Love Withington Baths

Love Withington Baths

Contents of the Financial Statements

for the Year Ended 31 March 2018

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 Financial Statements

10 to 15

Love Withington Baths

Report of the Trustees

for the Year Ended 31 March 2018

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 2018. 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

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 3 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. Our core services are: gym

membership, swimming lessons and fitness classes.

3. Main activities undertaken during the year

Operation of the facility

We have:

- Refurbished the poolside showers

- 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 2,000 members

- Introduced a Personal Training programme delivered through staff and an external provider

- Provided swimming for over 450 children through our schools swimming programme

- Provided after-school swimming for 285 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:

- Established a 'treatment room' for physiotherapy, osteopathy and other treatments

- Introduced and hosted a range of classes for babies and toddlers

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

- Hosted community events for Withington Civic Society and Neighbourhood Watch

- 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

4. Trustee Review

This has been a very positive year, building on the achievements of Years 1 and 2. The priorities were to establish the

business more securely; improve the quality of our services; continue the improvement to the building fabric and, to

diversify what was on offer within the facility. Again, we have achieved this and exceeded it.

Most importantly, our gym membership and our swim school revenue remains above projection. These two income

streams provide the basis for the business. Membership has been above target throughout the year and the swim school

has grown gradually over the 12 months. We have significantly improved the quality of our classes and the times at

which they take place.

Financially, we are in good health. We have a reserve policy and a reserve of £40,000 now in place. In addition to the

reserve there is a £120,000 sinking fund which will be used for long term improvements. We have achieved a healthy

surplus - of which this reserve is part - due to effective budgeting, cost management and exceeding our revenue

projections. We are increasing staff salaries in Year 4 by 3% and have established our utility costs for the next 2 years.

These are our 2 largest costs. Operating costs are therefore well known and other projected increases are directly linked

to revenue generating activities.

5. Future developments

In Year 4 we will:

- Sign a long term lease with Manchester City Council

- Grow our sinking fund to address the larger improvements to the building fabric such as the roof

- Undertake capital projects including improvement to the sauna area, Studio 1 and the upstairs co-working space

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

Ms S N Astley

Landlord Property Devmt

Ms H Corr

Marketing Manager

- resigned 10.7.17

Ms A De Araujo

Business Change Manager

D Payne

Self Employed

P Smith

Director

D Shannon

Director

Ms J Green

- appointed 10.7.17

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 13 June 2018 and signed on its behalf by:

P Smith - Trustee

Independent Examiner's Report to the Trustees of

Love Withington Baths

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 2018.

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

ACCA

Ascendis

Chartered Certified Accountants & Business Advisor

Unit 3, Building 2

The Colony Wilmslow

Altrincham Road

Wilmslow

Cheshire

SK9 4LY

13 June 2018

Love Withington Baths

Statement of Financial Activities

for the Year Ended 31 March 2018

2018

2017

Unrestricted fund

Total funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

7,415

14,068

Other trading activities

3

700,351

603,869

Investment income

4

447

429

Total

708,213

618,366

EXPENDITURE ON

Raising funds

5

42,018

28,507

Other

485,972

459,920

Total

527,990

488,427

NET INCOME

180,223

129,939

RECONCILIATION OF FUNDS

Total funds brought forward

106,411

(23,528

)

TOTAL FUNDS CARRIED FORWARD

286,634

106,411

Love Withington Baths

Balance Sheet

At 31 March 2018

2018

2017

Unrestricted fund

Total funds

Notes

£

£

FIXED ASSETS

Tangible assets

11

47,524

21,204

CURRENT ASSETS

Debtors

12

2,968

9,517

Cash at bank and in hand

314,098

163,926

317,066

173,443

CREDITORS

Amounts falling due within one year

13

(77,956

)

(88,236

)

NET CURRENT ASSETS

239,110

85,207

TOTAL ASSETS LESS CURRENT LIABILITIES

286,634

106,411

NET ASSETS

286,634

106,411

FUNDS

15

Unrestricted funds

286,634

106,411

TOTAL FUNDS

286,634

106,411

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 March 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended

31 March 2018 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 special provisions of Part 15 of the Companies

Act 2006 relating to charitable small companies.

The financial statements were approved by the Board of Trustees on 13 June 2018 and were signed on its behalf by:

P Smith -Trustee

Love Withington Baths

Cash Flow Statement

for the Year Ended 31 March 2018

2018

2017

Notes

£

£

Cash flows from operating activities:

Cash generated from operations

18

187,724

151,236

-

(6,433

)

Net cash provided by (used in) operating activities

187,724

144,803

Cash flows from investing activities:

Purchase of tangible fixed assets

(31,749

)

(22,090

)

Interest received

447

429

Net cash provided by (used in) investing activities

(31,302

)

(21,661

)

Cash flows from financing activities:

Loan repayments in year

(6,250

)

(18,567

)

Net cash provided by (used in) financing activities

(6,250

)

(18,567

)

Change in cash and cash equivalents in the reporting period

150,172

104,575

Cash and cash equivalents at the beginning of the reporting period

163,926

59,351

Cash and cash equivalents at the end of the reporting period

314,098

163,926

Love Withington Baths

Notes to the Financial Statements

for the Year Ended 31 March 2018

1.	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.

Allocation and apportionment of costs

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.

2.	DONATIONS AND LEGACIES

2018

2017

£

£

Donations

7,415

14,068

3.	OTHER TRADING ACTIVITIES

2018

2017

£

£

Membership fees

532,041

481,219

Shop income

6,468

5,500

Room hire

18,813

10,717

Use of swimming pool

143,029

106,433

700,351

603,869

4.	INVESTMENT INCOME

2018

2017

£

£

Interest receivable - trading

447

429

5.	RAISING FUNDS

Other trading activities

2018

2017

£

£

Purchases

7,048

4,402

Staff costs

34,970

24,105

42,018

28,507

6.	SUPPORT COSTS

Management

Finance

Other

Totals

£

£

£

£

Other resources expended

278,667

111,746

95,559

485,972

7.	NET INCOME/(EXPENDITURE)

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

2018

2017

£

£

Depreciation - owned assets

5,429

2,175

Other operating leases

17,372

62,486

8.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2018 nor for the year ended

31 March 2017.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2018 nor for the year ended 31 March 2017.

9.	STAFF COSTS

2018

2017

£

£

Wages and salaries

287,116

243,984

Social security costs

15,773

15,195

302,889

259,179

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

2018

2017

Wages and salaries

16

16

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

10.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

14,068

Other trading activities

603,869

Investment income

429

Total

618,366

EXPENDITURE ON

Raising funds

28,507

Other

459,920

Total

488,427

NET INCOME

129,939

RECONCILIATION OF FUNDS

Total funds brought forward

(23,528

)

TOTAL FUNDS CARRIED FORWARD

106,411

11.	TANGIBLE FIXED ASSETS

Improvements to property

Plant and machinery

Totals

£

£

£

COST

At 1 April 2017

21,910

1,642

23,552

Additions

31,749

-

31,749

At 31 March 2018

53,659

1,642

55,301

DEPRECIATION

At 1 April 2017

1,827

521

2,348

Charge for year

5,149

280

5,429

At 31 March 2018

6,976

801

7,777

NET BOOK VALUE

At 31 March 2018

46,683

841

47,524

At 31 March 2017

20,083

1,121

21,204

12.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Other debtors

600

1,079

Prepayments

2,368

8,438

2,968

9,517

13.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Other loans (see note 14)

-

6,250

Trade creditors

5,805

9,291

Social security and other taxes

9,815

-

Other creditors

828

10,933

Accruals and deferred income

61,508

61,762

77,956

88,236

14.

LOANS

An analysis of the maturity of loans is given below:

2018

2017

£

£

Amounts falling due within one year on demand:

Other loans

-

6,250

15.	MOVEMENT IN FUNDS

At 1.4.17

Net movement in funds

At 31.3.18

£

£

£

Unrestricted funds

General fund

106,411

180,223

286,634

TOTAL FUNDS

106,411

180,223

286,634

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

708,213

(527,990

)

180,223

TOTAL FUNDS

708,213

(527,990

)

180,223

Comparatives for movement in funds

At 1.4.16

Net movement in funds

At 31.3.17

£

£

£

Unrestricted Funds

General fund

(23,528

)

129,939

106,411

TOTAL FUNDS

(23,528

)

129,939

106,411

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

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

618,366

(488,427

)

129,939

TOTAL FUNDS

618,366

(488,427

)

129,939

16.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2018.

17.

RESERVES

Reserve - £40,000

Sinking fund - £120,000

General operating fund - £126,634

Total per balance sheet - £286,634

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

2018

2017

£

£

Net income for the reporting period (as per the statement of financial activities)

180,223

129,939

Adjustments for:

Depreciation charges

5,429

2,175

Interest received

(447

)

(429

)

Decrease in debtors

6,549

8,599

(Decrease)/increase in creditors

(4,030

)

10,952

Net cash provided by (used in) operating activities

187,724

151,236