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.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2.
Going Concern Disclosure
The financial statements have been prepared on a going concern basis.
As at 31 March 2025, the net assets of the Company are reported to be £1.385m (2024: 0.470m). This is due to the
requirement 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 -£0.282m (2024: £-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
2.3.
Significant judgements and estimations
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.
2.4.
Turnover
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.
South Ribble Leisure Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
2.5.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
2.6.
Pensions
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.
South Ribble Leisure Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
2.7.
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.
2.8.
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.
3.
Average Number of Employees
Average number of employees, including directors, during the year was: 106 (2024: 166)
4.
Debtors
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
|
|
|
| Other debtors | 121,145 | 52,269 | |
|
|
|
||
| Due after more than one year | |||
| Other debtors | 1,667,911 | 750,268 | |
|
|
|
||
South Ribble Leisure Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
5.
Creditors: Amounts Falling Due Within One Year
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Trade creditors |
|
|
|
| Other creditors | 222,598 | 177,554 | |
| Taxation and social security |
|
|
|
|
|
|
||
7.
Pension Commitments
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 2025 were £392,000 (2024: £392,000) of which employer's contributions totalled £292,000 (2024: £292,000) and employees' contributions totalled £100,000 (2024: £100,000).
|
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:
|
|||
|
2025
|
2024
|
||
|
£
|
£
|
||
|
Present value of defined benefit obligations
|
(4,115,000)
|
(4,115,000)
|
|
|
Fair value of plan assets
|
4,864,000
|
4,864,000
|
|
![image](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 2" preserveAspectRatio="none">
<line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/>
</svg>){kind=small}
|
|
||
|
749,000
![image](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 5" preserveAspectRatio="none">
<line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/>
<line x1="0" y1="4" x2="80" y2="4" stroke="black" shape-rendering="crispEdges"/>
</svg>){kind=small}
|
749,000
|
||
|
The above values are rounded to the neareat £1,000 for the purpose of this note.
|
|
Changes in the present value of the defined benefit obligations are as follows:
|
|
|
£
|
|
|
At 1 April 2024
|
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 2025
|
4,115,000
|
South Ribble Leisure Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
|
Changes in the fair value of plan assets are as follows:
|
|
|
£
|
|
|
At 1 April 2024
|
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 2025
|
4,864,000
|
|
The total costs for the year in relation to defined benefit plans are as follows:
|
|||
|
2025
|
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
|
|
|
|
|
||
|
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:
|
|||
|
2025
|
2024
|
||
|
£
|
£
|
||
|
Equity instruments
|
5,000
|
5,000
|
|
|
Debt instruments
|
5,000
|
5,000
|
|
|
Property
|
63,000
|
63,000
|
|
|
Cash and cash equivalents
|
88,000
|
63,000
|
|
|
Other
|
4,703,000
|
4,703,000
|
|
|
|
|
||
|
4,864,000
|
4,864,000
|
||
|
The return on plan assets are as follows:
|
|||
|
2025
|
2024
|
||
|
£
|
£
|
||
|
Return on assets of benefit plan
|
359,000
|
359,000
|
South Ribble Leisure Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 March 2025
|
The principal actuarial assumptions as at the statement of financial position date were:
|
|||
|
2025
|
2024
|
||
|
Discount rate
|
4.9
|
4.9
|
|
|
Expected rate of salary increase
|
4.1
|
4.1
|
|
|
Expected rate of increase in pensions
|
2.7
|
2.7
|
|
|
Inflation assumption
|
2.6
|
2.6
|
8.
Related Party Disclosures
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 2025, 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.
9.
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