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Company registration number: 13426457
South Ribble Leisure Limited
Unaudited financial statements
31 March 2024
South Ribble Leisure Limited
Contents
Directors and other information
Strategic report
Directors report
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Notes to the financial statements
South Ribble Leisure Limited
Directors and other information
Directors Mrs Marie Louise Mattinson
Ms Jennifer Anne Mullin Appointed 15 September 2023
Mr Christopher Paul Moister
Company number 13426457
Registered office Civic Centre
West Paddock
Leyland
PR25 1DH
Business address c/o Town Hall
Market Street
Chorley
PR7 1DP
South Ribble Leisure Limited
Strategic report
Year ended 31 March 2024
Structure, Governance and Management
South Ribble Leisure Ltd is a wholly owned subsidiary of South Ribble Borough Council and is a Company Limited by shares.
Appointment of Board Members
The appointment of Board Members is set out in the Company's Articles of Association. The governance arrangements commenced upon Company Incorporation on 28 May 2021.
Board Organisation
Subject to the Rules, the Board of Directors manages the affairs of the Company and comprises of three Directors, one of whom has the role of Managing Director of the Company.
Objectives and Activities
Principal Activity and Object of the Company
The principal activity and object of the Company during the period was:
* provision of leisure and sports facilities and services
The Company's objects, as stated in the Articles of Association are:
* to provide leisure and sports facilities and services;
* to connect the leisure centres with the corporate objectives of improving health and well-being and reducing health inequalities across the Borough;
* to develop a leisure local model from leisure centres which seeks to widen access to facilities in hard to reach areas and groups within the Borough;
* to develop a playing pitch hub at Bamber Bridge Leisure Centre;
* to deliver industry leading usage and retention levels;
* to achieve growing levels of income;
* to pursue charitable aims and objectives to support the provision of leisure facilities and services in order to promote good health and community participation.
* To ensure the leisure service is delivered on a not for profit basis.
South Ribble Leisure Ltd operates the Council's leisure facilities for the benefit of the community on a 'not for profit' basis. South Ribble Leisure Ltd seeks to maximise the benefit to the community through the efficient and effective management of the services, and the use of any future retained surpluses to improve the facilities and services to the residents of the borough. South Ribble Leisure Ltd was granted a 10 year contract effective from 1st September 2021. The long-term aim is to safeguard and improve the delivery of leisure services in the borough and to create a sustainable 'not for profit' organisation with the objective to reduce its level of dependency on South Ribble Council for financial support.
Following on from the pandemic, the impact of the cost of living crisis, rising inflation and global price increases, particularly utilities following the start of the war in Ukraine, have all proved a real challenge for the company in 2023/24. The period ended with an in-year operating loss of £560,400 (before the remeasurement of the net defined benefit pension plan), despite further financial support being provided by South Ribble Council of £800,000.
Going Concern
The financial position for South Ribble Leisure Ltd in 2024/25 may well see further cost increases and potential reductions in income levels as it will take time, along with changes in the national and global economic position, to facilitate a return to pre-pandemic levels. Without financial support from the parent company, South Ribble Council, there may be uncertainty regarding the ability of the Company to remain liquid and therefore in its ability to continue to trade. South Ribble Council has however, including significant investment in the assets used by the company and in the provision of additional revenue resource, confirmed financial support for the Company to ensure that it remains viable as a going concern.
Financial Review
The accounts show a deficit of £0.560m, excluding the remeasurement of the net defined benefit plan.
The key points to note are:
* Income from provision of sports and leisure facilities and classes, including memberships, - £3.179m
* Management fee from South Ribble Council and other financial support - £1.211m
* Salaries, wages and contracted staff (incl national insurance but excluding pensions) - £2.330m
Plans for the Future
Key priorities for the year ahead are:
* Retention of existing members and attraction of new members
* Maximisation of income and minimise expenditure
* Provision of a safe and secure environment for staff and members
The Board Members
The members who served the Company during the period are detailed on page 1 of the accounts. The constitution and requirements of the Board are set out in the Company Articles of Association.
This report was approved by the board of directors on 17 September 2024 and signed on behalf of the board by:
Ms Jennifer Anne Mullin
Director
South Ribble Leisure Limited
Directors report
Year ended 31 March 2024
The directors present their report and the unaudited financial statements of the company for the year ended 31 March 2024.
Directors
The directors who served the company during the year were as follows:
Mrs Marie Louise Mattinson
Ms Jennifer Anne Mullin (Appointed 15 September 2023)
Mr Christopher Paul Moister
Dividends
This report was approved by the board of directors on 17 September 2024 and signed on behalf of the board by:
Ms Jennifer Anne Mullin
Director
South Ribble Leisure Limited
Directors responsibilities statement
Year ended 31 March 2024
The directors are responsible for preparing the strategic report, directors report 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). 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 profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
South Ribble Leisure Limited
Statement of comprehensive income
Year ended 31 March 2024
2024 2023
Note £ £
Turnover 3,178,570 2,799,851
Cost of sales ( 2,744,127) ( 2,608,995)
_______ _______
Gross profit 434,443 190,856
Administrative expenses ( 2,205,760) ( 1,803,252)
Other operating income 1,210,950 1,240,211
_______ _______
Operating loss ( 560,367) ( 372,185)
Loss before taxation ( 560,367) ( 372,185)
Tax on loss - -
_______ _______
Loss for the financial year ( 560,367) ( 372,185)
_______ _______
Remeasurement of the net defined benefit plan 481,000 2,795,000
_______ _______
Total comprehensive income/(loss) for the year ( 79,367) 2,422,815
_______ _______
All the activities of the company are from continuing operations.
South Ribble Leisure Limited
Statement of financial position
31 March 2024
2024 2023
Note £ £ £ £
Current assets
Debtors 5 83,229 377,605
Cash at bank and in hand 245,281 767,342
_______ _______
328,510 1,144,947
Creditors: amounts falling due
within one year 6 ( 609,041) ( 846,765)
_______ _______
Net current (liabilities)/assets ( 280,531) 298,182
_______ _______
Total assets less current liabilities ( 280,531) 298,182
Net (liabilities)/assets excluding
defined benefit pension plan (280,531) 298,182
Pension scheme asset 750,268 250,958
_______ _______
Net assets 469,737 549,140
_______ _______
Capital and reserves
Called up share capital 1 1
Profit and loss account 469,772 549,139
_______ _______
Shareholders funds 469,773 549,140
_______ _______
Suspense account (36) (-)
_______ _______
469,737 549,140
_______ _______
For the year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
These financial statements were approved by the board of directors and authorised for issue on 17 September 2024 , and are signed on behalf of the board by:
Ms Jennifer Anne Mullin
Director
Company registration number: 13426457
South Ribble Leisure Limited
Statement of changes in equity
Year ended 31 March 2024
Called up share capital Profit and loss account Total
£ £ £
At 1 April 2022 1 ( 1,873,676) ( 1,873,675)
Loss for the year ( 372,185) ( 372,185)
Other comprehensive income for the year:
Remeasurement of the net defined benefit plan 2,795,000 2,795,000
_______ _______ _______
Total comprehensive income for the year - 2,422,815 2,422,815
_______ _______ _______
At 31 March 2023 and 1 April 2023 1 549,139 549,140
Loss for the year ( 560,367) ( 560,367)
Other comprehensive income for the year:
Remeasurement of the net defined benefit plan 481,000 481,000
_______ _______ _______
Total comprehensive income for the year - ( 79,367) ( 79,367)
_______ _______ _______
At 31 March 2024 1 469,772 469,773
_______ _______ _______
South Ribble Leisure Limited
Notes to the financial statements
Year ended 31 March 2024
1. General information
The Company is a not-for-profit, private company limited by shares, registered in England and Wales. The address of the registered office is Civic Centre, West Paddock, Leyland, PR25 1DH. The Company has one shareholder, South Ribble Borough Council.The liability of the member is limited to £1, being the amount the member undertakes to contribute to the assets of the Company in event of it being wound up.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis and in accordance with applicable Financial Reporting Standards.
Going concern
The financial statements have been prepared on a going concern basis.As at 31 March 2024, the net assets of the Company are reported to be £0.470m. This is due to therequirement to report actuarial gains/losses in respect of defined benefit scheme. This does not impact on the cash flows or the financial health of the Company. Net assets excluding the net pension scheme asset are £0.281m.The Company has a contract with South Ribble Council for 10 years, commencing 1st September 2021, with an option to extend for 5 years with agreement of both parties.After making appropriate enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future based on cash flow forecasts. Accordingly, the going concern basis has been adopted in preparing the financial statements.
Significant judgements
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies, and that have the most significant effect on the amounts recognised in the financial statements, are as follows:* Calculation of accruals and deferred income;* Pension and other post-employment benefits. The cost of defined benefit pension plans and other post-employment benefits are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty. In determining the appropriate discount rate, management considers the interest rates of corporate bonds, the mortality rate is based on publicly available mortality tables for the specific sector, and future salary increases and pension increases are based on expected future inflation rates for the respective sector.
Revenue Recognition
Sales of goods are recognised at the point of sale.Income in respect of the provision of sports and leisure facilities, including subscription income, is recognised when the service is provided. This includes sport membership income, which is recognised over the period of the membership.Income from South Ribble Council for the delivery of the leisure services contract is recognised when due.Rental income is recognised in respect of the period to which it relates.Other income is recognised when due.All income is stated exclusive of Value Added Tax.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit.Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Defined benefits plans
The organisation is an admitted body of the Lancashire Pension fund ('the scheme') which is a funded, defined benefit scheme.The organisation operates a defined benefit pension scheme for employees. The assets of the scheme are held separately from those of the Company.Current service costs, past service costs and gains and losses on settlements and curtailments are charged to the statement of comprehensive income. Past service costs are recognised over the vesting period, or immediately if the benefits have vested. When a settlement (eliminating all obligations for benefits already accrued) or a curtailment (reducing future obligations as a result of a material reduction in the scheme membership, or a reduction in future entitlement) occurs, the obligation and related plan assets are re-measured using current actuarial assumptions, and the resultant gain or loss is recognised in the statement of comprehensive income during the period in which the settlement or curtailment occurs.The interest cost and the expected return on assets are shown as a net amount in the Statement of Comprehensive Income within the Cost of Sales figure. Actuarial gains and losses are recognised immediately in the Statement of Comprehensive Income within the figure for the Remeasurement of the net defined benefit plan.Pension scheme assets are valued at fair value at the Balance Sheet date. Fair value is based on market price information and in the case of quoted securities, this is at the published bid price. Pension scheme liabilities are measure on an actuarial basis using the projected unit method and are discounted to their present value using a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. Pension scheme deficits are recognised in full on the Balance Sheet.
Debtors
All debtors are measured at transaction price, less any impairment.
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty or notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Creditors
All creditors are measured at transaction price.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 166 (2022/23: 162), including full-time, part-time and casual staff.
5. Debtors
2024 2023
£ £
Trade debtors 31,282 223,592
Other debtors 51,947 154,013
_______ _______
83,229 377,605
_______ _______
6. Creditors: amounts falling due within one year
2024 2023
£ £
Trade creditors 398,567 742,787
Accruals and deferred income 131,099 95,941
Social security and other taxes 33,242 -
Other creditors 46,133 8,037
_______ _______
609,041 846,765
_______ _______
7. Employee benefits
The LGPS is a defined-benefit scheme, with the assets held in separate funds administered by the Lancashire Pension Fund. The total contributions made for the period ended 31 March 2024 were £392,000 [2023: £310,000] of which employer's contributions totalled £292,000 [2023: £228,000] and employees' contributions totalled £100,000 [2023: £82,000].
The amounts recognised in the statement of financial position are as follows:
The statement of financial position net defined benefit asset is determined as follows:
2024 2023
£ £
Present value of defined benefit obligations ( 4,115,000) ( 3,883,000)
Fair value of plan assets 4,864,000 4,131,000
_______ _______
749,000 248,000
_______ _______
The above values are rounded to the nearest £1,000 for the purpose of this note
The statement of financial position net defined benefit asset is determined as follows:
2024
£
Present value of defined benefit obligations ( 4,115,000)
Fair value of plan assets 4,864,000
_______
749,000
_______
2023
£
Present value of defined benefit obligations ( 3,883,000)
Fair value of plan assets 4,131,000
_______
248,000
_______
Changes in the present value of the defined benefit obligations are as follows:
£
At 1 April 2023 3,883,000
Current service cost 281,000
Interest expense 184,000
Benefits paid (8,000)
Contributions by plan participants 100,000
Remeasurements:
Actuarial gains and losses ( 325,000 )
_______ |
At 31 March 2024 4,115,000
_______ |
Changes in the fair value of plan assets are as follows:
£
At 1 April 2023 4,131,000
Interest income 203,000
Benefits paid ( 8,000 )
Contributions by employer 292,000
Contributions by plan participants 100,000
Administration expenses ( 10,000 )
Remeasurements:
Actuarial gains and losses 156,000
_______ |
At 31 March 2024 4,864,000
_______ |
The total costs for the year in relation to defined benefit plans are as follows:
2024 2023
£ £
Recognised in profit or loss:
Current service cost 281,000 549,000
Net interest expense ( 19,000) 57,000
Administration expenses 10,000 8,000
_______ _______
272,000 614,000
_______ _______
Recognised in other comprehensive income:
Remeasurement of the liability:
Actuarial gains and losses 268,000 2,795,000
_______ _______
The total costs for the year in relation to defined benefit plans are as follows:
2024 2024
£ £
Recognised in profit or loss:
Current service cost 281,000 281,000
Net interest expense ( 19,000) ( 19,000)
Administration expenses 10,000 10,000
_______ _______
272,000 272,000
_______ _______
Recognised in other comprehensive income:
Remeasurement of the liability:
Actuarial gains and losses 268,000 268,000
_______ _______
2023 2023
£ £
Recognised in profit or loss:
Current service cost 549,000 549,000
Net interest expense 57,000 57,000
Administration expenses 8,000 8,000
_______ _______
614,000 614,000
_______ _______
Recognised in other comprehensive income:
Remeasurement of the liability:
Actuarial gains and losses 2,795,000 2,795,000
_______ _______
The fair value of the major categories of plan assets are as follows:
2024 2023
£ £
Equity instruments 5,000 4,000
Debt instruments 5,000 8,000
Property 63,000 62,000
Cash and cash equivalents 88,000 33,000
Other 4,703,000 4,024,000
_______ _______
4,864,000 4,131,000
_______ _______
The return on plan assets are as follows:
2024 2023
£ £
Return on assets of benefit plan 359,000 109,000
_______ _______
The fair value of the major categories of plan assets are as follows:
2024 2024
£ £
Equity instruments 5,000 5,000
Debt instruments 5,000 5,000
Property 63,000 63,000
Cash and cash equivalents 88,000 88,000
Other 4,703,000 4,703,000
_______ _______
4,864,000 4,864,000
_______ _______
2023 2023
LGPS Total
£ £
Equity instruments 4,000 4,000
Debt instruments 8,000 8,000
Property 62,000 62,000
Cash and cash equivalents 33,000 33,000
Other 4,024,000 4,024,000
_______ _______
4,131,000 4,131,000
_______ _______
The return on plan assets are as follows:
2024 2024
LGPS Total
£ £
Return on assets of benefit plan 359,000 359,000
_______ _______
2023 2023
LGPS Total
£ £
Return on assets of benefit plan 109,000 109,000
_______ _______
The principal actuarial assumptions as at the statement of financial position date were:
2024 2023
Discount rate 4.90 4.70
Expected rate of salary increase 4.10 4.20
Expected rate of increase in pensions 2.70 2.80
Inflation assumption 3 3
8. Key Management Personnel Remuneration
The Board of Directors consider that the Key Management Personnel of the Company (i.e. those persons having authority and responsibility for planning, directing and controlling the activities of the Company) are the Board of Directors themselves.The Directors aggregate remuneration in respect of their services to the Company was: NIL
9. Related Party Transactions
The Company is wholly owned by South Ribble Council. South Ribble Council signed a Deed of Guarantee with the Lancashire County Pension Fund on 22nd October 2022, through which it has given an undertaking to guarantee the pension obligations of South Ribble Leisure Ltd, including any potential scheme liabilities arising in the event that south Ribble Leisure Ltd exits the pension fund. Within the Statement of Financial Position as at 31 March 2024, the amount included within Trade Debtors as owed by South Ribble Council to South Ribble Leisure Ltd was NIL and the amount included in Creditors that was owed to South Ribble Council by South Ribble Leisure Ltd was £70, 400. During the year, funding was receivable from South Ribble Council of £411,000 for the provision of leisure services, £800,000 for additional support to address the impact of inflationary pressures in respect of utility and salary costs; all of these amounts have been have been shown in the accounts as Other Operating Income within the Statement of Comprehensive Income.