REGISTERED NUMBER: 03462245 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
FX LEISURE LIMITED |
REGISTERED NUMBER: 03462245 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
FX LEISURE LIMITED |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Statement of Cash Flows | 14 |
Notes to the Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Financial Statements | 16 |
FX LEISURE LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
BANKERS: | Natwest Bank plc |
PO Box 68 |
4 Standishgate |
Wigan |
WN2 2EL |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The group continues to operate in the gym and leisure sector operating from seven facilities under the "Gymetc" brand and a leisure facility based in Warrington, operating through the subsidiary company under the brand name "Athelis". |
Results and Performance |
The results of the group show a profit on ordinary activities after tax of £2,527k (2022- £2,179k), on turnover of £12.2 million (2022- £10.9 million). |
The group continues to provide an exceptional gym experience in stylish surroundings coupled with a varied and exciting range of fitness classes at affordable prices. In addition, we have continued with our policy of re-investing in the latest gym equipment throughout the year. |
As a consequence, at 31 December 2023 group total membership had grown to 27,126 (2022-26,505) and is continuing to grow in 2024. |
Strategy |
The group's success is based on providing excellent leisure facilities and equipment at price levels our competitors find difficult to compete with. This involves continued investment in the most up to date technology and improvements to our clubs so that our members can continue to enjoy the best facilities. |
We will continue to consolidate our position and concentrate on achieving the maximum growth in our market sector through membership increases and retention and improved efficiencies whilst maintaining the service to our members we pride ourselves on. |
In view of the challenges presented to the business post Covid-19 the Directors are pleased with the resilience shown by the company with overall revenue increased by £1.3 million to £12.2 million with EBITDA rising to £4,880k (2022- £4,190k). |
We will continue to look to expand the business through organic growth but are also prepared to invest further both through the building of another club, should a suitable site be available and by expansion of existing clubs. |
KPI's | 2023 | 2022 |
£'000s | £'000s |
Turnover | 12,181 | 10,892 |
EBITDA | 4,880 | 4,190 |
Number of Members | 27,126 | 26,505 |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The energy crisis which has caused unprecedented rises in supply costs of both gas and electricity looks likely to continue throughout 2024. In addition, other inflationary costs particularly wages will impact performance in 2024. |
Competitor activity is a threat all businesses must contend with but we are confident that our facilities and pricing structure will enable us to manage these risks. |
ON BEHALF OF THE BOARD: |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the provision of fitness and leisure facilities. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FX LEISURE LIMITED |
Opinion |
We have audited the financial statements of FX Leisure Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FX LEISURE LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FX LEISURE LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- we identified the laws and regulations applicable to the group through discussions with directors and other management, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on it's operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, employment legislation, Health and Safety and hygiene regulations. |
- we enquired of the directors and reviewed correspondence with HMRC for evidence of non-compliance with laws and regulations. We also reviewed controls the directors have in place to ensure compliance. |
We assessed the susceptibility of the Group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. |
- we reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above; |
- we enquired of the directors about actual and potential litigation and claims. |
Due to inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FX LEISURE LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 12,181,338 | 10,892,371 |
Cost of sales | 3,316,687 | 2,994,235 |
GROSS PROFIT | 8,864,651 | 7,898,136 |
Administrative expenses | 5,033,677 | 4,864,293 |
3,830,974 | 3,033,843 |
Other operating income | 133,853 | 129,985 |
OPERATING PROFIT | 3,964,827 | 3,163,828 |
Interest receivable and similar income | 2,856 | 2,482 |
3,967,683 | 3,166,310 |
Interest payable and similar expenses | 4 | 597,681 | 468,220 |
PROFIT BEFORE TAXATION | 5 | 3,370,002 | 2,698,090 |
Tax on profit | 6 | 843,333 | 518,591 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,526,669 |
2,179,499 |
Profit attributable to: |
Owners of the parent | 2,308,452 | 2,001,771 |
Non-controlling interests | 218,217 | 177,728 |
2,526,669 | 2,179,499 |
Total comprehensive income attributable to: |
Owners of the parent | 2,308,452 | 2,001,771 |
Non-controlling interests | 218,217 | 177,728 |
2,526,669 | 2,179,499 |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 23,157,767 | 23,130,965 |
Investments | 10 | - | - |
23,157,767 | 23,130,965 |
CURRENT ASSETS |
Stocks | 11 | 19,188 | 12,097 |
Debtors | 12 | 181,020 | 224,365 |
Cash at bank | 1,096,301 | 349,278 |
1,296,509 | 585,740 |
CREDITORS |
Amounts falling due within one year | 13 | 1,714,429 | 2,045,880 |
NET CURRENT LIABILITIES | (417,920 | ) | (1,460,140 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
22,739,847 |
21,670,825 |
CREDITORS |
Amounts falling due after more than one year |
14 |
(10,000,000 |
) |
(11,500,000 |
) |
PROVISIONS FOR LIABILITIES | 17 | (1,483,411 | ) | (1,441,058 | ) |
NET ASSETS | 11,256,436 | 8,729,767 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 700 | 700 |
Revaluation reserve | 19 | 132,746 | 132,746 |
Capital redemption reserve | 19 | 300 | 300 |
Retained earnings | 19 | 10,725,724 | 8,417,272 |
SHAREHOLDERS' FUNDS | 10,859,470 | 8,551,018 |
NON-CONTROLLING INTERESTS | 20 | 396,966 | 178,749 |
TOTAL EQUITY | 11,256,436 | 8,729,767 |
The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by: |
K Carter - Director |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 | 700 | 700 |
Revaluation reserve | 19 | 132,746 | 132,746 |
Capital redemption reserve | 19 | 300 | 300 |
Retained earnings | 19 | 9,534,835 | 7,881,034 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,653,801 | 1,468,589 |
The financial statements were approved by the Board of Directors and authorised for issue on |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 January 2022 | 700 | 6,642,537 | 132,746 |
Changes in equity |
Dividends | - | (227,036 | ) | - |
Total comprehensive income | - | 2,001,771 | - |
Balance at 31 December 2022 | 700 | 8,417,272 | 132,746 |
Changes in equity |
Total comprehensive income | - | 2,308,452 | - |
Balance at 31 December 2023 | 700 | 10,725,724 | 132,746 |
Capital |
redemption | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 300 | 6,776,283 | 1,021 | 6,777,304 |
Changes in equity |
Dividends | - | (227,036 | ) | - | (227,036 | ) |
Total comprehensive income | - | 2,001,771 | 177,728 | 2,179,499 |
Balance at 31 December 2022 | 300 | 8,551,018 | 178,749 | 8,729,767 |
Changes in equity |
Total comprehensive income | - | 2,308,452 | 218,217 | 2,526,669 |
Balance at 31 December 2023 | 300 | 10,859,470 | 396,966 | 11,256,436 |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 4,800,860 | 4,002,021 |
Interest paid | (575,546 | ) | (427,528 | ) |
Interest element of hire purchase payments paid |
(22,135 |
) |
(40,692 |
) |
Tax paid | (832,359 | ) | (509,128 | ) |
Net cash from operating activities | 3,370,820 | 3,024,673 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (941,956 | ) | (632,806 | ) |
Interest received | 2,856 | 2,482 |
Net cash from investing activities | (939,100 | ) | (630,324 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (1,791,879 | ) |
Capital repayments in year | (184,697 | ) | (313,963 | ) |
Amount withdrawn by directors | (1,500,000 | ) | (300,000 | ) |
Equity dividends paid | - | (227,036 | ) |
Net cash from financing activities | (1,684,697 | ) | (2,632,878 | ) |
Increase/(decrease) in cash and cash equivalents | 747,023 | (238,529 | ) |
Cash and cash equivalents at beginning of year |
2 |
349,278 |
587,807 |
Cash and cash equivalents at end of year | 2 | 1,096,301 | 349,278 |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 3,370,002 | 2,698,090 |
Depreciation charges | 915,154 | 1,026,652 |
Loss on disposal of fixed assets | - | 15,832 |
Finance costs | 597,681 | 468,220 |
Finance income | (2,856 | ) | (2,482 | ) |
4,879,981 | 4,206,312 |
(Increase)/decrease in stocks | (7,091 | ) | 7,364 |
Decrease/(increase) in trade and other debtors | 43,345 | (51,550 | ) |
Decrease in trade and other creditors | (115,375 | ) | (160,105 | ) |
Cash generated from operations | 4,800,860 | 4,002,021 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 1,096,301 | 349,278 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 349,278 | 587,807 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank | 349,278 | 747,023 | 1,096,301 |
349,278 | 747,023 | 1,096,301 |
Debt |
Finance leases | (184,697 | ) | 184,697 | - |
(184,697 | ) | 184,697 | - |
Total | 164,581 | 931,720 | 1,096,301 |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
FX Leisure Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements include the results of FX Leisure Limited and its subsidiary undertaking ASAT Ventures Limited for the year to 31 December 2023. |
ASAT Ventures Limited is exempt from the requirements of the Companies Act relating to the audit of their accounts by virtue of s479A Companies Act 2006. |
The consolidated financial statements include the results of the activities described in the Report of the Directors, all of which are continuing. |
In the company's financial statements, investments in subsidiary undertakings are stated at cost less impairment. |
Investment in subsidiaries |
The consolidated financial statements incorporate the financial statements of the company and entities controlled by the group using accounting policies consistent with those of the parent. All intra group transactions, balances, income and expenses are eliminated in full on consolidation. |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include: |
(a) Impairment of fixed assets |
The carrying amount of the Group's assets are reviewed annually to determine whether there is any indication of impairment. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. |
(b) Useful economic lives |
The useful economic lives of fixed assets are assessed on an annual basis based on the latest available information. Management believe that the useful economic lives being used currently are still appropriate. |
Turnover |
The group and company derives its income principally from the sale of fitness club memberships and associated joining and administration fees, with secondary income from the sale of related food and drink and swimming fees. |
Membership income from individuals is recognised over the membership term, limited to the cash received. Income related to joining and administration fees, food and drink and swimming fees is recognised immediately on the basis that the related service has been performed. |
Sales of any goods are recognised when the title of goods has passed. Revenue is recognised net of value added tax. |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold and long leasehold property are carried at their revalued amounts, being fair value at the date of valuation less subsequent depreciation and any impairment losses. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. |
Other tangible fixed assets are stated at cost less depreciation and any impairment losses. |
Depreciation is calculated to write down the cost or valuation less estimated residual value of all tangible fixed assets, other than freehold land, over their estimated useful lives as follows: |
Freehold property | - 2% on cost or valuation |
Long leasehold property | - over the 125 year lease period |
Improvements to property | - over the 18 year lease period |
Gym equipment | - 10% on cost |
Fixtures and fittings | - 10% on cost and 20% on cost |
Impairment of assets |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit or loss. |
If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss is recognised immediately in the profit or loss. |
Investment property |
Investment property is shown at the most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the statement of income. |
Stocks |
Stocks are measured at the lower of cost and selling price less cost to sell. |
Financial instruments |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans and related party loans shall be measured at amortised cost using the effective interest rate. Financial liabilities that have no stated interest rate and are payable within one year shall be measured at the undiscounted amount due. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Leases |
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the company. All other leases are classified as operating leases. |
Assets held under finance leases are recognised initially at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. |
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term. The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Employee benefits |
Short-term employee benefits are recognised as an expense in the period in which they are incurred. |
Government income |
Government income comprises grants and subsidies provided as a direct result of the Covid-19 pandemic. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,317,581 | 2,119,175 |
Social security costs | 81,002 | 73,995 |
Other pension costs | 1,211 | 1,321 |
2,399,794 | 2,194,491 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 7 | 7 |
Fitness centre staff | 155 | 149 |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration | 113,467 | 128,464 |
Directors' pension contributions to money purchase schemes | 1,211 | 1,321 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
4. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | - | 7,012 |
Other interest | 575,546 | 420,516 |
Hire purchase | 22,135 | 40,692 |
597,681 | 468,220 |
5. | PROFIT BEFORE TAXATION |
The profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 784 | - |
Depreciation - owned assets | 833,308 | 934,088 |
Depreciation - assets on hire purchase contracts | 81,846 | 92,564 |
Loss on disposal of fixed assets | - | 15,832 |
Auditors' remuneration | 10,250 | 10,250 |
Auditors' remuneration - taxation services | 9,000 | 9,000 |
Rental of property | 187,920 | 182,067 |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 800,481 | 510,460 |
Under provision in prior year | 499 | - |
Total current tax | 800,980 | 510,460 |
Deferred tax: |
Deferred tax - current year | 44,120 | 7,137 |
Deferred tax - prior year | (1,767 | ) | 994 |
Total deferred tax | 42,353 | 8,131 |
Tax on profit | 843,333 | 518,591 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 3,370,002 | 2,698,090 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) |
792,624 |
512,637 |
Effects of: |
Expenses not deductible for tax purposes | 967 | 1,395 |
Adjustments to tax charge in respect of previous periods | 499 | - |
Fixed asset differences | 42,396 | 44,129 |
Adjustments to deferred tax charge in respect of previous periods | (1,767 | ) | 327 |
Adjust deferred tax to average rate | 4,535 | - |
Movement in deferred tax not recognised | 6,379 | (4,329 | ) |
Remeasurement of deferred tax | (2,300 | ) | (35,568 | ) |
Total tax charge | 843,333 | 518,591 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | - | 227,036 |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS |
Group |
Long |
Freehold | leasehold | Investment |
property | property | property |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 | 18,351,789 | 4,649,580 | 1,432,495 |
Additions | 605,824 | 1,798 | - |
At 31 December 2023 | 18,957,613 | 4,651,378 | 1,432,495 |
DEPRECIATION |
At 1 January 2023 | 2,380,227 | 760,858 | - |
Charge for year | 326,460 | 151,440 | - |
At 31 December 2023 | 2,706,687 | 912,298 | - |
NET BOOK VALUE |
At 31 December 2023 | 16,250,926 | 3,739,080 | 1,432,495 |
At 31 December 2022 | 15,971,562 | 3,888,722 | 1,432,495 |
Improvements | Fixtures |
to | Gym | and |
property | Equipment | fittings | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 | 220,095 | 4,682,467 | 2,090,449 | 31,426,875 |
Additions | 959 | 209,564 | 123,811 | 941,956 |
At 31 December 2023 | 221,054 | 4,892,031 | 2,214,260 | 32,368,831 |
DEPRECIATION |
At 1 January 2023 | 208,905 | 3,397,535 | 1,548,385 | 8,295,910 |
Charge for year | 4,380 | 288,884 | 143,990 | 915,154 |
At 31 December 2023 | 213,285 | 3,686,419 | 1,692,375 | 9,211,064 |
NET BOOK VALUE |
At 31 December 2023 | 7,769 | 1,205,612 | 521,885 | 23,157,767 |
At 31 December 2022 | 11,190 | 1,284,932 | 542,064 | 23,130,965 |
Included in cost or valuation of land and buildings is freehold land of £2,851,508 (2022 - £2,851,508) which is not depreciated. |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 31 December 2023 is represented by: |
Long |
Freehold | leasehold | Investment |
property | property | property |
£ | £ | £ |
Valuation in 2000 | 296,852 | - | - |
Valuation in 2008 | 1,737,257 | 1,181,356 | - |
Cost | 16,923,504 | 3,470,022 | 1,432,495 |
18,957,613 | 4,651,378 | 1,432,495 |
Improvements | Fixtures |
to | Gym | and |
property | Equipment | fittings | Totals |
£ | £ | £ | £ |
Valuation in 2000 | - | - | - | 296,852 |
Valuation in 2008 | - | - | - | 2,918,613 |
Cost | 221,054 | 4,892,031 | 2,214,260 | 29,153,366 |
221,054 | 4,892,031 | 2,214,260 | 32,368,831 |
If freehold/leasehold property had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 20,393,528 | 19,785,906 |
Aggregate depreciation | 3,267,089 | 2,926,396 |
Value of land in freehold land and buildings | 2,851,508 | 2,851,508 |
Freehold land and buildings and long leasehold property were valued on a fair value, existing use basis on 28 February 2016 by Shaun B Skidmore FRICS and the directors reviewed the valuations and decided that they are not materially different from the amounts being carried on the balance sheet. |
The net book value of tangible fixed assets includes £NIL (2022 - £ 546,325 ) in respect of assets held under hire purchase contracts. |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Long |
Freehold | leasehold | Investment |
property | property | property |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Improvements | Fixtures |
to | Gym | and |
property | Equipment | fittings | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Cost or valuation at 31 December 2023 is represented by: |
Long |
Freehold | leasehold | Investment |
property | property | property |
£ | £ | £ |
Valuation in 2000 | 296,852 | - | - |
Valuation in 2008 | 1,737,257 | 1,181,356 | - |
Cost | 7,961,650 | 3,470,022 | 1,432,495 |
9,995,759 | 4,651,378 | 1,432,495 |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements | Fixtures |
to | Gym | and |
property | Equipment | fittings | Totals |
£ | £ | £ | £ |
Valuation in 2000 | - | - | - | 296,852 |
Valuation in 2008 | - | - | - | 2,918,613 |
Cost | 221,054 | 4,123,970 | 1,340,177 | 18,549,368 |
221,054 | 4,123,970 | 1,340,177 | 21,764,833 |
If freehold/leasehold property had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 11,431,674 | 11,015,619 |
Aggregate depreciation | 2,682,785 | 2,481,352 |
Value of land in freehold land and buildings | 1,360,000 | 1,360,000 |
Freehold land and buildings and long leasehold property were valued on a fair value, existing use basis on 28 February 2016 by Shaun B Skidmore FRICS. The directors have reviewed the valuations, taking into account current market conditions, and decided that they are not materially different from the amounts being carried on the balance sheet. |
The net book value of tangible fixed assets includes £NIL (2022 - £ 143,447 ) in respect of assets held under hire purchase contracts. |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
% | Direct/ |
Subsidiary | Principal Activity | Holding | Indirect Holding |
ASAT Ventures Limited | Provision of fitness and leisure facilities | 75 | Direct |
The above company is registered in England and Wales. |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
11. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 19,188 | 12,097 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 5,232 | 2,734 |
Amounts owed by group undertakings | - | - |
Prepayments and accrued income | 175,788 | 221,631 |
181,020 | 224,365 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 15) | - | 184,697 |
Trade creditors | 152,445 | 271,936 |
Tax | 354,081 | 385,460 |
Social security and other taxes | 404,296 | 347,883 |
Other creditors | 121,789 | 68,655 |
Accruals and deferred income | 681,818 | 787,249 |
1,714,429 | 2,045,880 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Directors' loan accounts | 10,000,000 | 11,500,000 | 10,000,000 | 11,500,000 |
The directors' loan accounts are unsecured and attract interest of 2.5% over base rate per annum. |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | - | 184,697 |
Company |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 118,574 | 151,474 |
Between one and five years | 474,295 | 474,295 |
In more than five years | 909,066 | 1,027,640 |
1,501,935 | 1,653,409 |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts | - | 184,697 | - | 34,104 |
The company's bankers, Natwest Bank PLC hold fixed and floating charges over the commercial property assets of the company. |
Hire purchase contracts are secured on the assets to which they relate. |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
17. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 1,483,411 | 1,441,058 | 921,147 | 961,810 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 1,441,058 |
Provided during year | (1,767 | ) |
Charge to Statement of Comprehensive Income during year | 44,120 |
Balance at 31 December 2023 | 1,483,411 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year | ( |
) |
Credit to Income Statement during year | ( |
) |
Balance at 31 December 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
700 | A Ordinary | 1p | 7 | 7 |
69,300 | B Ordinary | 1p | 693 | 693 |
700 | 700 |
19. | RESERVES |
Group |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 8,417,272 | 132,746 | 300 | 8,550,318 |
Profit for the year | 2,308,452 | - | - | 2,308,452 |
At 31 December 2023 | 10,725,724 | 132,746 | 300 | 10,858,770 |
FX LEISURE LIMITED (REGISTERED NUMBER: 03462245) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
19. | RESERVES - continued |
Company |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 7,881,034 | 132,746 | 300 | 8,014,080 |
Profit for the year | 1,653,801 | - | - | 1,653,801 |
At 31 December 2023 | 9,534,835 | 132,746 | 300 | 9,667,881 |
Retained earnings includes all current and prior period retained profits and losses. |
The revaluation reserve relates to freehold and long leasehold property assets. |
The capital redemption reserve has arisen as a result of the purchase of own ordinary shares. |
20. | NON-CONTROLLING INTERESTS |
Minority interests represent a holding of 25% of the Ordinary shares in ASAT Ventures Limited. |
21. | RELATED PARTY DISCLOSURES |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
22. | ULTIMATE CONTROL |