The trustees present their annual report and financial statements for the year ended 30 September 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)".
The charity’s objects are detailed in the governing document and in summary are:
to promote community participation in healthy recreation through the provision of facilities for tennis
the advancement of physical education of young people through the provision of facilities for tennis
The trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission.
Activities undertaken include:
Provision of pay and play facilities for tennis
Provision of tennis coaching for juniors and adults
Running inclusive programmes for schools, disability groups, and local communities
Hosting local and regional competitions and events
Maintenance and development of facilities to ensure accessibility and safety
Secured funding from Shared Prosperity Fund, Wrexham County Borough Council and Sport Wales
Completed refurbishment of indoor facility, outdoor courts and indoor lighting
Completed build of 3 new covered padel courts
The period October 2023 to September 2024 was affected by much uncertainty with regard to the start date for a major, multi-million pound redevelopment project. The closure necessitated the termination of commercial rental arrangements which ended the rental revenue stream from February 2024, and furthermore resulted in staff redundancies through July to September 2024 as operations were affected on a large scale.
The accounts for the year ended 30 September 2024 show total income of £313,796 and costs of £348,029, resulting in a net deficit of £34,233.
Coaching fees
Court and equipment hire income
Event hire income
Grant funding
Grant Funding
During the financial year the tennis centre received the following grants:-
£1,561,952 Shared Prosperity Fund
£200,000 Sport Wales
£21,302 LTA
£34,000 Wrexham County Council
The trustees will consider the level of reserves that is prudent for Wrexham Tennis Centre Limited to have when agreeing the annual budget. Consideration will be given to future strategy, potential redundancy liabilities, and any other significant factors that should be taken into account. The specific reserves policy including any designation of reserves for specific purposes will be agreed by trustees on an annual basis. At the year end the charity held reserves of £284,927.
In the period since the year end, the redevelopment of the centre has been realised. This has made the venue more attractive to all users, and has introduced additional playing opportunities, with three brand new covered padel courts and two indoor pickleball courts. As a result of this new revenue stream, we have seen an excess of £80,000 of revenue in the first four months of 2025 alone.
Over the next year, the charity also plans to:
Host the Lexus Wrexham Open, the largest tennis tournament in the UK outside of the grass court season
Expand our staff, with a particular focus on appointments at senior level
Expand our padel programme to attract new users
Expand our pickleball offering to attract new users
Further develop our community outreach
Develop and promote our inclusive tennis programme
Improve the efficiency of our operations
Explore additional funding opportunities to improve our infrastructure
Governing document
The charity is a company limited by guarantee by it's Memorandum and Articles of Association, which were adopted by the company on 29th March 2011 and lodged with Companies House on 15th April 2011. It was registered as a charity with the Charity Commission on 27th October 2011, under charity number 1144460.
In the event of the company being wound up, members are required to contribute an amount not exceeding £10.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Trustees are appointed based on their expertise and knowledge.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees are volunteers with oversight for strategy, governance, finance and regulation. The board sits bi-monthly to review these four points together, along with the centre’s operational performance. There is a staff body in place to implement strategic decisions and to oversee the running of the centre, led by an Operations Manager.
For new trustees they will be inducted and trained including the following:
Facility overview to include health and safety and risk assessment awareness
Insight into our programme and the opportunities we offer the community
The charity's governance and communication structure
Safeguarding orientation
The role of the charity
The legal and regulatory responsibilities of a charity trustee.
Key management remuneration is agreed by the board of trustees.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Wrexham Tennis Centre Limited (the charity) for the year ended 30 September 2024.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, 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 that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements 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 financial statements 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 financial statements to be reached.
Timothy Mitchell BSc FCA
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Wrexham Tennis Centre Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Wrexham Tennis Centre, Plas Coch Road, Wrexham, LL11 2BW.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The charitable company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the charitable company as an individual entity and not about its group.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The average monthly number of employees during the year was:
Redundancy and termination payments totalling £11,076 were made in the reporting period.
The key management personnel for the charity comprises of the trustees and general managers. Total salaries including employee benefits of the key management personnel were £60,121 (2023: £39,067).
Wages are recharged to subsidiaries for related work undertaken.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income relates to site management fees and restricted grants received for the redevelopment cost of the tennis centre. The costs are currently included as an asset under construction.
Deferred income is included in the financial statements as follows:
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The charity has received restricted grants to cover the redevelopment costs of the tennis centre. This grant receipt is currently included within deferred income and the proportion spent is included within assets under construction. The overall net asset figure included within restricted funds at the year end is £nil.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds, where applicable, which have been set aside out of unrestricted funds by the trustees for specific purposes.
During the year the charity entered into the following transactions with related parties:
During the year a trustee was paid by the charity for services provided. Total amount paid during the year was £11,115. At the year end the the charity owed £584.
Details of the charity's subsidiaries at 30 September 2024 are as follows: