The Trustees are pleased to present their report together with the financial statements of Legacy Leisure for the year ended 31 December 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 Memorandum and Articles of Association dated 14th March 2013 which was subsequently amended on the 23rd June 2013, 20th September 2013 and 23rd September 2014, by Resolution dated 20th August 2014, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Legacy Leisure is a charitable company limited by guarantee, incorporated on 15th January 2013 and registered as a Charity on 12th June 2013. The Charity was established under a Memorandum of Association which established the objects and powers of the Charity and is governed under its Articles of Association. In the event of the Charity being wound up members are required to contribute an amount not exceeding £1.
The Directors of the company are also the Charity Trustees for the purposes of Charity law and under the Charity’s Articles are known as members of the Management Committee, those who served during the year were:
Eva Holmes (Chair)
Martin Johnson (Trustee)
Stuart Blount (Trustee)
The Charity may by ordinary resolution appoint a person who is willing to act to be a Trustee. The minimum number of Trustees of the Charity is three. If the number of Trustees is less than the number fixed as the quorum, the continuing Trustees, or Trustee may act only for the purpose of filling vacancies or of calling a general meeting.
Two members of the Management Committee give their time voluntarily and receive no benefits from the Charity. The third member of the Management Committee Eva Holmes, receives a remuneration. Expenses are reclaimed from the Charity please refer to note
Key Management Personnel as detailed in note 9 include the Trustees
Directors Duties
The directors (Trustees for the purposes of Charity Law) of the charitable company, as those of all UK companies, must act in accordance with a set of general duties.
These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:
A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
the likely consequences of any decision in the long term,
the interests of the company's employees,
the need to foster the company's business relationships with suppliers, customers and others,
the impact of the company's operations on the community and the environment,
the desirability of the company maintaining a reputation for high standards of business conduct, and
the need to act fairly as between members of the company.
Organisational Structure
Legacy Leisure has a Management Committee of a minimum of three members who meet on a quarterly basis and are responsible for the strategic direction and policy of the Charity. At present the Committee has three members.
Trustee Induction and Training
Potential Trustees are inducted by means of an induction programme that includes:
Background to Legacy Leisure
Purpose of the post, duties, liabilities and responsibilities
The obligations of Management Committee members
The main documents which set out the operational framework for the Charity including the Memorandum and Articles
Resourcing and the current financial position as set out in the latest published accounts
Future plans and objectives
Organisational Management and Decision Making Structure
The Board holds its quarterly meetings which are informed by the Legacy Leisure Governance Calendar and the meeting agenda includes:
Health and Safety
Charitable Objectives & Grant Funding
Financial Performance, Compliance and Governance
Human Resource and our People
Training & Compliance
New Business and Opportunities
Sales and Marketing updates
Operational Performance & Community Engagement
Review of Legacy Directors’ Business interests
A scheme of delegation is in place and day to day responsibility for the provision of services rests with the Managing Director of Legacy Leisure, Regional Directors and site Operational Managers. They are responsible for ensuring that Legacy Leisure delivers the services specified and that the key performance indicators are met. They are also responsible for the individual supervision of the staff teams and for ensuring that the team hold relevant qualifications and they continue to develop their skills and working practices in line with good practice.
Benefits and Rewards
Our Executive compensation includes a range of financial rewards and benefits designed to attract, motivate and retain senior management. The length of service of our senior team reflects this robust approach and is further enhanced by the entrepreneurial spirit harnessed within the business, which creates an environment where senior employees can flourish.
The Charity has established an ongoing process for identifying, evaluating and managing Legacy Leisure’s key risks. This process includes the review of non-financial as well as financial risks. The primary concern of Legacy Leisure is to ensure the Health and Safety of the public and employees at its leisure centres. As part of the risk management process, policies and procedures have been established with the intention of managing risk appropriately and ensuring compliance with appropriate legislation. The Trustees take advice from experts where appropriate. A Risk Register is in place and reviewed annually by the Legacy Board.
Legacy Leisure is also concerned with financial risks, the Management Committee reviews and agrees policies for managing each of these risks and they are summarised below.
Price risk
Legacy Leisure consumes significant amounts of energy in the course of its operations due to heating of leisure centre swimming pools and saunas. Therefore, the Charity is exposed to price risk in the energy sector. Details of the management of this risk are included later in this Report.
Credit risk
Legacy Leisure has no significant concentrations of credit risk. The Charity has implemented policies that require appropriate credit checks on potential customers before sales commence.
2) Objectives and Activities
Legacy Leisure’s purpose, as set out in the objectives contained in Legacy Leisure’s Memorandum of Association and detailed below, is to provide or assist in the provision of facilities in the interests of social welfare for recreation or other leisure time occupation of the public at large, or for individuals who have need of such facilities by reason of their age, infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life.
The aim of our Charity is to promote sport and leisure activities in the local community, to improve the health and wellbeing of the public at large through the provision of leisure facilities that promote exercise and provide a social arena. No change in the nature of these activities occurred during the year.
The Focus of our Work
Our main objective for the year was the management of leisure facilities. Legacy Leisure undertakes this activity with a view to promoting sport and leisure in local communities. The strategies we used to meet this objective included:
Our Vision
It is the Vision of Legacy Leisure to inspire communities into active, healthy and fulfilling lifestyles that are culturally alert and ethically aware. This will be achieved through a varied programme that will include recreational activities, cultural events, educational schemes and competitive opportunities.
At the very core of our philosophy lies engagement and outreach. Engagement with the communities that we already serve and outreach to the wider community not yet accessed. Legacy Leisure will provide an open and accessible service to all, through effective programming and marketing of products with a diverse appeal, reflecting the wide demographic blend of our modern day communities.
Legacy Leisure will aspire to be the hub of the community, a trustworthy and dependable focal point for social, recreational and cultural enlightenment and fulfilment.
Our Objectives
Engage:
Inspire:
Educate:
Participate:
Enhance Lifestyles:
Supporting our local communities: By making available grant funds for community groups, clubs and individuals on application, that will support local initiatives and personal sporting or physical activity goals which would otherwise not be possible through other means.
Our Ethos
Excellent customer care: To ensure every customer is treated courteously with respect, attention and care. To provide clean, safe and appropriately maintained facilities.
Socially responsible: To take a positive lead in ensuring people from different backgrounds respect and interact together. To lead by example by providing inspirational employment opportunities to all.
Ethically responsible: To minimise our carbon footprint by being environmentally responsible, maintaining good housekeeping practices and caring for our environment.
Attracting hard to reach groups: To develop a programme that specifically targets hard to reach and minority groups such as the disabled, ethnic or diverse backgrounds, over 50’s, children and inactive people. To provide a range of initiatives that increase opportunities for participation in these demographics.
Awareness: Raise awareness of the opportunities for sport, leisure and cultural interaction within local communities through effective marketing and PR strategies, targeted towards the local population.
Create Loyalty: To ensure all Legacy Leisure products inspire customers to continue with positive lifestyle changes. To support maintained interest and commitment to these lifestyles by providing suitable and accessible facilities delivered to a high standard. To ensure facilities, activities and products are available during each visit, and to promote follow up visits. To consistently offer high quality services, diverse programmes and accessible facilities that the local community feels proud of and that keeps participants engaged over a sustained period of time.
Developing People: To encourage and motivate our staff to be the best in the business. To offer career and personal development opportunities through comprehensive training and succession planning. To deliver volunteer and apprenticeship programmes to create employment opportunities in the local community through partnerships with local schools, colleges and other education centres.
Public Benefit
In order to meet our objectives, the Trustees have considered the Charity Commission's guidance on public benefit in deciding what activities Legacy Leisure should undertake.
All of Legacy Leisure’s activities are focused on the delivery of promoting sport, leisure and health & wellbeing activities to the community local to each of our leisure facilities alongside promoting social interaction. The public benefits delivered below including possible outcomes:
The provision of leisure facilities for the general public use i.e. sports halls, gyms, swimming pools etc.
The advancement of amateur sports by classes, lessons, coaching and the availability of team sports at our leisure facilities and equipment for the purposes of keeping fit and recreational sport. This includes the running of and ability to participate in group activity/competitions.
The promotion of health and well-being by strategies put in place to increase participation in community sports and links with other health promotion providers.
Arrangements for members of societies with special needs, the elderly and people with disabilities to ensure inclusion for all.
Financial/Business Review
Principal Risks and Uncertainties
The Autumn Budget 2024 saw the Government increase employer’s National Insurance (NI) contributions from 13.8% to 15%, and lower the level at which businesses start paying NI contributions, from £9,100 to £5,000. These changes along with further increases to the National Minimum Wage will inevitably impact the business from April 2025. Work has already commenced in considering how to best adapt our workforces to meet the financial and operational challenges ahead, whilst ensuring compliance with legal obligations.
Utility costs continue to be volatile, with geo-political factors influencing market rates. We have continued to invest in innovative technology and have also been very successful in receiving Public Sector Decarbonisation Scheme funding, as well as grants from the Sport England Swimming Pool Support fund. The subsequent mechanical and electrical enhancements in technology will not only reduce our carbon emissions but also reduce our overall utility cost exposure.
Principal Funding Source
The Charity’s principal source of income is from the provision of leisure facilities to the general public, through the operation of local authority leisure centres. The local authority leisure centres are used by the public for a variety of purposes including recreation, fitness and lessons. The facilities operated by the Charity comprise swimming pools, fitness gyms, sports halls, tennis courts and outdoor playing fields/pitches. This forms the Charity’s Unrestricted Funds.
To enable the leisure facilities to provide a wider range of programmes, individual centres also look to acquire grant funding and subsidies from government schemes. This forms the Charity’s Restricted Funds.
Reserves Policy
Plans for the Future/New Business
As a result of the strong and positive negotiations we conduct with our Local Authority partners we were well placed to explore future new business opportunities in 2024.
Open procurement has increased across 2024 and we did see an increase in UK public sector contracts coming to market at the end of 2024.
Our focus will clearly be on winning new business which we feel we are well positioned to explore but also to secure contract extension in facilities we already operate. We will continue to review and manage any changes as they happen and as soon as practically possible.
Legacy Leisure will also continue to look for new forms of funding and grants that will allow it to provide or assist in the provision of facilities in the interests of social welfare for recreation or other leisure time occupation of the public at large or for individuals who have need of such facilities by reason of their youth, age, infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life.
Community and the Environment
The Charity aims to be sensitive to the local communities' cultural, social and economic needs, and seeks to ensure that its activities enhance the communities as places to work and live in. We aim to ensure that our operations do not have a negative impact on the environment. Apart from compliance with all environmental regulations, we endeavour to promote the effective management of natural resources (including renewables) and encourage energy efficiency as well as waste minimisation and recycling where economically viable means of doing so are available. Legacy Leisure seeks to be respectful custodians of the environment whilst carrying out our business activities, by reducing our negative impacts on the environment. Our commitment to maintaining an Environmental Management System (EMS) that meets the requirements of BS EN ISO 14001 aids our dedication to best practice and continual improvement and demonstrates to our employees, partners and other stakeholders our commitment to the environment by promoting environmentally responsible practices and incorporating sustainable principles into our work.
The principles of BS EN ISO 14001 and the fact we have adhered to these strong processes for over 10 years provide a strong foundation for the future utility cost and carbon reduction challenges ahead. The delivery of the internationally recognised standard ensures we evidence our commitment to mitigating our environmental impact by reducing carbon emissions, energy consumption, water usage, whilst at the same time minimising pollution, promoting sustainable raw material sourcing practices and adopting renewable energy sources. Furthermore, we look to our supply chain, through rigorous procurement principles, to equally promote environmental stewardship in an effort to minimise our ecological footprint across the entire value chain.
Ultimately we are striving to breed a culture amongst our workforce, customers, partners and stakeholders that drives innovation and is market leading in our approach to energy and environmental management. Our sustainability action plan captures performance measurement and sets tangible assessment and review to ensure continual improvement.
In 2024, we continued to invest in technology to improve our facilities efficiency and reduce carbon emissions, installing solar PV, upgrades to building management systems and installing variable speed drives. Together, our investment in energy efficiency schemes across the Charity is projected to save 78 tonnes of CO2e annually moving forward.
Social Value, Health, Wellbeing and Active Communities
Legacy Leisure is committed to supporting and delivering place-based community physical activity services, recognising the key role that physical activity can play in supporting physical and mental health, educational attainment and social cohesion.
Our community-based work is framed by contract-specific healthy communities plans, setting out key target groups, partnerships, interventions and resourcing. Specific examples of delivery during 2024 include:
Expansion of Musculoskeletal (MSK) Hubs across 12 facilities, in partnership with UK Active, Goodboost, Escape Pain and Arthritis Action, to include further women’s health-focused initiatives and new products such as Bump Boost, supporting activity for pregnant women, and over 3,000 ‘caught short’ kits providing free period products in our centres;
Completion of accessibility audits across our whole estate and implementation of associated action plans to maximise access to our facilities and services, in association with Thomas Pocklington Trust and Sunflower Hidden Disabilities;
Delivery of additional CPD to support community engagement and service delivery;
Partnership with Bluecrest to deliver health checks in our centres, piloted at 3 locations initially.
We were delighted to receive the 2024 Health Impact Award from Swim England for our MSK Hubs work in England, alongside a similar Health Impact Award from Swim Wales for our Hubs across South Wales.
We continue to measure the social value of our services, in association with Sport England’s Moving Communities platform, which enables contract-specific impact reporting. In addition, we continue to support key industry agencies including Sport England, Sport Wales, UK Sport and UK Active, as part of our ethos of supporting sector development and learning.
Relationships with other Groups, Charities and Individuals
Legacy Leisure works closely with Local Authorities, for which we run leisure centres, along with National Governing Bodies & Community Groups/Clubs to ensure that the community’s needs for access to the leisure facilities are met & that the programming is all inclusive and accessible.
Related Parties
Legacy Leisure does not currently have any related parties other than its current members.
Disabled Persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort will be made to ensure that their employment within Legacy Leisure continues and that the appropriate support & training is provided. It is the policy of the Charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Management and Staff
Our people first culture is vital to our success and remains a business focus at Legacy Leisure. By nurturing our people we are committed to supporting our employees in their career adventures, providing new opportunities and a culture where people can achieve their goals. Achievement of our goals and ambitions depends on the professionalism, engagement and skilled contribution of all our staff.
In 2024, we continued to improve our cloud-based HR and Payroll solution, People XD, which replaced our outdated systems. Enhancements included:
Development of “social hub” which is a platform that supports onboarding guidance for new starters and rehires, it provides important Charity information and resources, including tasks to be completed and custom content pages.
Implemented manager dashboards that provide real-time insights into team performance, attendance, and other key metrics.
Introduced the employee self-service portal, allowing employees to easily access and update their personal information, view pay slips, and request time off.
Created user guides and online resources to support ongoing learning.
The transition to People XD is now fully integrated into daily operations and our focus has now shifted to enhancing the overall employee experience. Our future roadmap for People XD includes streamlining processes with digital forms and automated workflows, creating a more efficient and welcoming experience for employees. Deliverables will support an improved employee experience (monitored through feedback), the streamlining and simplification of people processes and the identification of clearer accountabilities.
We continue to work with the Royal Society for the Prevention of Accidents (RoSPA) and Chartered Institute for the Management of Sport and Physical Activity (CIMSPA). We have also extended the Coach Mentoring Programme for Managers, to help support our future Succession Plans.
Workforce Responsibility and Employee Engagement
The Charity is committed to providing a safe, welcoming work environment that fosters inclusive working practices. Furthermore, we aim to provide an employee experience that makes our people feel supported and promotes their engagement with the Charity's strategic aims and objectives.
Legacy Leisure is committed to employing a workforce that reflects the community it serves. We aim to implement an equality, diversity and inclusion strategy that harnesses an environment where colleagues feel valued and encourages them to proactively contribute to the business. We recognise human rights throughout the Charity's operations, and supply chain, and value commitment to fair and ethical business practice.
The Board recognises the need to capture employee feedback and to ensure our business objectives and principles are being delivered and recognised by our workforce. Therefore employee engagement and seeking the views of our workforce are key strategic objectives. There are a number of ways that this is achieved. The principal mechanism for employee engagement in the Charity is the employee forums which are attended by Directors. The forums provide an opportunity for employees to be informed about strategic issues and their views, and ideas are actively sought by the Directors who attend. Topics of discussion include details of business strategy, economic factors affecting us as a Charity, financial performance and health and safety updates. Employees who attend gather feedback and issues from their local colleagues, to be raised at the forums, and there are open sessions for feedback and questions with the Directors. Updates and responses from questions raised to the Directors at the forum are subsequently circulated to each centre.
In 2024 we also conducted our Charity wide employee survey, with over a third of the workforce providing invaluable feedback. The headline results were:
90% of employees enjoy their job.
82% would welcome more updates about their site and the wider business.
91% consider their manager to be approachable and supportive with personal issues.
85% believe Health & Safety is a priority in their workplace.
90% say their workplace embraces diversity and inclusion.
85% believe the Charity offers training opportunities to keep skills up to date.
Such feedback helps inform our strategic planning and as a result of the survey a number of additional employee benefits have been introduced during the course of the year. These developments include:
Employee Boards delivered to all sites to ensure every colleague knows who their representative is for H&S, Safeguarding and Employee Forums.
A new Employee Benefits website launched, to allow every colleague to more easily access the library of national discounts available through partners and our own leisure estate.
Improved health, wellbeing and nutrition support, including access to ARVRA (health, nutritional advice and workout videos) and 24 hour online GP support via our partners at Health Heroes.
Long Service milestones introduced to celebrate 10 years (and longer) service.
Payroll system developed to acknowledge key dates and awards (work anniversaries, Birthdays, Employee of the Month/Quarter)
Provision of ‘Mental Health First Aider ’ support for all colleagues.
The Charity recognises that the most successful organisations are those where staff feel engaged, empowered and valued. Engaged staff are happier in their jobs and this leads to better performance. Our employees are at the heart of everything that we do, so listening to their ideas and suggestions is important to us, to ensure continual improvement. Furthermore, we strive to be fair and ethical in our business practices, whilst also fostering inclusive and safe workplaces, protecting workers in the supply chain and promoting social welfare.
Business Ethics, Corporate Governance and Stakeholder Relationships
Legacy Leisure takes a robust approach to business ethics and is committed to ensuring a positive culture of health and safety management within the Charity - from top to bottom.
Our framework for ensuring consistently high standards of service delivery in a safe and ethical working environment is embedded within our integrated management system - The Oracle. This library of documents contains all our policies, procedures and files that help inform and train our staff in the appropriate practices/processes. The Oracle is reviewed periodically within agreed timeframes and updates are automatically communicated throughout the business. Our training regimes are based on the Oracle documents and reinforce our core principles. Key documents, such as our health & safety procedures are reviewed by independent third party specialists, ensuring they meet all statutory/regulatory obligations and adhere to best practice.
Environmental, Social and Governance (ESG) has been incorporated into our core plan and is now a reporting mainstay within Board meetings. As a Charity, we recognise that not only should there be a moral commitment to this part of business planning but there are clear commercial benefits of developing such an approach. These include:
Reduced risk: Organisations with strong ESG practices are less likely to be exposed to environmental, social, and governance risks, thereby safeguarding the Charity from financial setbacks.
Improved financial performance: Studies have shown that organisations with strong ESG practices tend to outperform organisations with weak ESG practices.
Positive impact on society: ESG investing can help to promote environmental sustainability, social justice, and good corporate governance, which can benefit society as a whole.
By taking these steps, Legacy Leisure aims to create a positive impact on the environment, society and the economy. It can attract and retain top talent, improve employee morale and productivity, reduce risk of regulatory fines, increase brand value and customer loyalty and access capital from socially responsible investment.
All of our employees seek to be honest and fair in relationships with customers and suppliers. Every attempt is made to ensure that services are provided to the agreed standards and all reasonable steps are taken to ensure the safety and quality of those services.
The Charity understands its role in accountability and has adopted an Anti-bribery Policy and Procedure in order to identify and mitigate any risks that may arise from its dealings with current or prospective clients, contractors, suppliers or consultants that may act on behalf of the Charity.
Our message to colleagues is simple:
We aim to provide a happy and healthy experience to our customers,
We look to offer clear career pathways,
We look to communicate effectively through interactive platforms,
We want to offer safe facilities, supported through comprehensive health & safety training and guidance to all staff,
We aim to be innovative and professional in the way we deliver services,
We look to support the Charity in delivering excellent service in a friendly and welcoming environment.
Throughout 2024 our open book, transparent and collaborative approach in working with our partners has been well received and has further enhanced our already strong working relationships. We are also mindful of our regulatory requirements and to safeguard shareholder rights and interests, therefore our commitment to strong corporate governance remains steadfast.
The business ethics and corporate governance standards we set internally are also expected to be met by our supply chain. Therefore during 2024 we have introduced further robust metrics to ensure our procurement of suppliers not only captures commercial metrics but also their approach to broader environmental, safety and workforce principles. We recognise that by selecting suppliers that prioritise ethical labour practices, environmental sustainability and community engagement, that this can enhance our reputation and contribute to a more sustainable and equitable world. Furthermore, it ensures that the chosen vendors align with our values of sustainability, fairness and transparency.
Core Principles
We are an experienced business, who remain committed to providing bespoke services in the communities that we serve. We continue to not look to drive our corporate identity, instead, we market the facilities and the activities within the local communities that we operate in.
Our mission is to create strong, lasting partnerships, built on a foundation of efficient and effective delivery, to encourage happier and healthier lifestyles. Our collaborative approach is based on honesty and transparency, working closely with local authorities to deliver against their own corporate, commercial and social objectives.
Safe and welcoming environments are the foundation, but our interaction goes much further than facility operation, making a difference to the health and wellbeing of all of our communities.
We can only achieve this through our team's collective dedication and passion. At Legacy Leisure, we foster a culture of collaboration, innovation, and continuous learning. Our team members are not just employees; they are partners in our collective success. A motivated and empowered team is the driving force behind our achievements.
These core principles remain at the heart of what we do and are the foundation by which we deliver the services on behalf of our partners.
A resolution proposing that Kendall Wadley LLP be reappointed as auditor of the Charity will be put to the Members.
The Trustees' report, including the strategic report, was approved by the Board of Trustees.
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Legacy Leisure Limited (the ‘Charity’) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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:
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity 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.
In auditing the financial statements, we have concluded that the Trustees' 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 Charity’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 Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the Trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and
the strategic report and the directors' report included within the Trustees' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the Trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, 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 Trustees determine is 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 Trustees are responsible for assessing the Charity’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 Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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 an auditor's report 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.
It is ensured that the engagement team have, collectively, the appropriate competence, capabilities and skills to be involved in the assignment, are fully briefed and understand the risks specific to the charitable company.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable 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 charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
Legacy Leisure Limited is a private company limited by guarantee incorporated in England and Wales and a charity registered in England and Wales. The registered office is 5 Deansway, Worcester, Worcestershire, WR1 2JG.
Activities are transacted through a number of leisure centres, details of which can be found on the website www.legacyleisure.org.uk.
The financial statements have been prepared in accordance with the Charity Act 2011 and the Charity's Memorandum of Association, the Companies Act 2006, "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and FRS 102. The Charity is a Public Benefit Entity as defined by FRS 102.
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 accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources and that there are no material uncertainties about its ability 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 the furtherance of their charitable objectives.
Restricted funds are subject to the specific conditions imposed by donors as to how they may be expended. The purposes and uses of the restricted funds are set out in the notes to the accounts.
Grant income is recognised in the statement of financial activities when received in accordance with the SORP.
Other sources of income represent monies received in the pursuit of leisure activities or hire of facilities, net of VAT and is recognised in the statement of financial activities at the point at which the activity is undertaken.
Investment income is included in the statement of financial activities in the year in which it is receivable.
Liabilities are included in the financial statements as soon as recognised.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity.
All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, whereas other costs are apportioned on a basis of estimated usage.
Stocks are stated at the lower of cost and estimated selling price. Cost comprises direct materials and, where applicable, those overheads that have been incurred in bringing the stocks to their present location and condition.
Cash and cash equivalents include cash in hand and deposits held at call with banks.
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. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
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.
The charitable company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the statement of financial activities in the year they are payable.
The charitable company also has a small number of employees who are members of defined benefit pension schemes. These schemes are multi-employer schemes and the charity is unable to identify its share of the underlying assets and liabilities in them on a consistent and reliable basis. As such the contributions are accounted for as if the schemes were defined contribution and contributions are charged as they become payable.
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
IBNR Provision
From 1 December 2021 the Company has adopted a policy of self-insuring certain losses up to £50,000. The balance of the IBNR provision as at the year end was £273,000 (2023: £216,000). During the year £127,000 was charged (2023: £35,000) and £70,000 was utilised (2023: £69,000) during the year.
Activities for generating funds
All costs are in connection with the running of the centres, including the operation of activities for which restricted funding has been received (note 15) and grants awarded (note 6).
The Trustee E Holmes received remuneration amounting to £18,000 (2023: £18,000) as allowed under the governing documents of the charity for services other than being a trustee, together with pension contributions of £353 (2023: £353).
None of the other trustees (or any persons connected with them) received any remuneration during the year.
One Trustee was also reimbursed £904 (2023: one Trustee, £1,130) in connection with travelling, subsistence, accommodation and other expenses.
The average monthly number of full time equivalent employees during the year was: 560 (2023: 514). On a head count basis the average number is as follows:
Included in the above costs for wages and salaries is £365 (2023: £3,776) in respect of redundancy costs.
Pension contributions in respect of the higher paid staff amounted to £27,733 (2023 - £27,783).
The remuneration of key management personnel was as follows:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
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 charge to income and expenditure in respect of defined contribution schemes was £199,057 (2023: £188,918).
Contributions to defined benefit schemes treated as defined contribution schemes (see accounting policies) were £223,992 (2023: £262,572).
The deferred income shown above arises from membership fees and services invoiced in advance. The whole amount is released in full in the subsequent accounting period.
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 Swimming Pool Support Fund is a government scheme to support facilities with swimming pools with increased cost pressures, leaving them most vulnerable to closure or significant service reduction.
Health Promotion Officer - Public Health England have provided funding to the Council for Weight Management Service for residents in West Berkshire. Legacy Leisure in partnership with Weight Watchers offer the provision of a Health Promotion Officer (Weight Management Coordinator & client instructor) and an The Activity for Health Coordinator.
Free swimming lessons under the shark scheme - (West Berkshire Borough Council) - To provide free swimming lessons for children who are identified as non swimmers in years 1, 2 and 3 (and down to foundation year). The sessions run on a 50 week continuous program.
Holiday Activity and Food Programme - funding received under the government initiative to assist in providing activity and food during school holidays to those children in receipt of benefits-related free school meals.
Vale of Glamorgan Council - funding received towards the provision of table tennis equipment.
Cancer Rehab (West Berkshire Borough Council) - To provide a cancer rehabilitation programme for people living with or recovering from cancer.
The Charity is working with its advisors to resolve issues raised by HMRC in 2025 relating to the Charity's use of the VAT sporting exemption in its business. It is possible this may result in a material liability to the Charity, however at this stage the value of these payments cannot be quantified due to the range of outcomes that are still the subject of discussions with HMRC. The Trustees consider that it could therefore be misleading to assign a value to this potential liability.
As a result of the Covid-19 pandemic and the enforced closures of facilities in both March 2020 and, according to tier and geographical location, in September and October 2020, a claim was made to the entity’s insurers for restitution under business interruption clauses.
During the year a without prejudice interim payment was received for the March 2020 claim. Subsequent to the year end the model for the calculation of the quantum for October 2020 is in the process of being agreed between all parties and at this time the likely return is not capable of being quantified. Any income received will have an impact on Professional Services fees and Contract fees payable under such agreements in place at the time of the lock downs.
There were no disclosable related party transactions during the year (2023 - none), other than those shown in note 8.
The Charity had no material debt during the year.