The trustees present their annual report and financial statements 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 Club's Articles of Association, 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).
Purposes of the charity
The Club is established for the following purposes, defined in the Articles of Association:
a) The promotion of community participation in healthy recreation, in particular by the provision of facilities for the playing of Real Tennis in the Midlands of England.
b) To conserve, preserve and improve for the public benefit as a building of historic interest the Real Tennis Court at Moreton Morrell, Warwickshire CV35 9AL, and to educate the public about the history and heritage of the building.
Activities in relation to those purposes
The main activities in support of the purposes are:
- Provision of a serviceable playing facility for real tennis
- Provision of services to support tennis activity, namely lessons, court booking management, manufacture of balls, sale of equipment and membership management
- Maintenance of the tennis court building, including reactive and emergency works and planned maintenance based on a quinquennial building survey
- Fundraising to augment subscriptions and court fees, including events and merchandise sales.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Club should undertake.
The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the trustees to present a strategic report.
The year has been significant for the club as our Head Professional of 25 years decided to retire with 3 months notice and we had to urgently advertise and secure a replacement. This process was mobilised quickly and a excellent successor was found in Darren Long who, with help from his club (Manchester T&RC) started promptly, leaving us with only a two month gap. Thanks go to our Assistant Professional, Lloyd Pettiford, for bridging the gap very ably.
Despite this interruption, court bookings for the year have been healthy with a welcome strengthening over last year and a further upward trend being seen in 2025. Court utilisation overall for the last calendar year was 70% (2023: 66%, 2022: 68%) split between weekdays 79% and weekends 46%. The club continues to explore ways of increasing utilisation, especially at weekends. A weekend membership category has been introduced to encourage weekend play and particularly for members of Leamington TCC and those who have second homes in the catchment and may be remote during the week. The professionals continue to run a rich variety of tournaments and matches during the season, to encourage participation at all skill levels.
Membership over the past year and through annual renewal in January has suffered with playing membership reducing by 1 to 155 and Friends of the Court dropping by 6. The latter has been largely due to deaths but both have been affected by the rising cost of living. This has driven some to leave when playing less regularly or when members of other clubs as well. Finding new members is a constant challenge and continues to be 100% through existing member introductions. Increasing awareness of the game through open days and creating the table tennis league team has been positive but with little real effect.
The game of real tennis requires both physical and mental (strategy) input and provides a longer playing life than most other racket games. We are pleased to support many players of retirement age, with over 25% being over 65 years of age.
The expansion of the sporting elements into table tennis in the prior year has proved worthwhile, with an enthusiastic group of players competing in the local league and achieving a mid-placed result. In February 2025, the space used for table tennis was cleared to revert back to American Squash Tennis and an unofficial world championship of this game was held for the first time in 10 years, with the official world champion (from 1995) travelling from the USA to compete. The club boasts the only court in the world in regular use and are proud to preserve the court and game.
The historic building around the court continued to provide challenges. Roof leakage into the Professional’s apartment during storms and repairs to window frames and glazing have been the focus of this year. We continue to work on defining the longer term programme of building works to keep water out and heat in, using the results of the building survey done in 2021. A consultant has been engaged to specify this complex programme and then secure suitable contractors through a competitive tender process in what continues to be a difficult construction supply chain situation.
Fundraising for the building programme continues in parallel through events and grants. We have early promises and have won the opportunity to host the World Championship Doubles in April 2026, through which we hope to attract sponsorship as well as revenue from ticket sales. Other fundraising events during the tournament such as an amateur competition, another Squash Tennis world championship, and a gala dinner are planned. As always, volunteers from the membership do the work to deliver these events and we are reliant on their efforts.
As well as fundraising for exceptional expenditure, we have carried out a (now) annual review of regular revenue through subscriptions and court fees. These have been raised broadly in line with the inflationary effects seen in our operational costs. In addition, Gift Aid continues to provide a valuable source of revenue.
Promotion of our ancient game as an excellent way of keeping healthy is central to our mission. We continue to run a junior development programme (with financial support from the Dedanists Foundation and building a list of c. 25 junior players) and explore ways to engage more with the local community to encourage awareness and participation. Table tennis home matches have increased footfall of the unaware and we opened for the Heritage Open Days again this year, increasing to four days access where host volunteers introduce members of the public to the game and its history.
The trustees are pleased to report that despite a deficit of £23,869 (2023: deficit £8,786) in the year, the charity's financial position is considered to be good, with ongoing support from loyal members and court usage high, and with the ability to receive gift aid on subscriptions and other donations, we continue to breakeven on ordinary operations.
The deficit is after spending £26,340 on maintenance and upkeep of our treasured historic building. This brings property upkeep to over £44,000 in the last two years.
The trustees anticipate further grant income towards these ongoing works but this is not reflected in these accounts as it has not yet been secured.
It is the policy of the Club that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between six and nine month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Club’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The Club is a company limited by guarantee.
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 are as shown on the contents page above.
Trustees are appointed in accordance with the Articles of Association.
Induction and training of new trustees
It is the charity's policy that new Trustees undergo an orientation process to brief them on their legal obligations under charity law, the charity's governing documents, the committee decision making process, the business plan and recent financial performance of the charity. Trustees are encouraged to attend any appropriate external training events that will assist them in carrying out their role.
The finances and performance of the Club is overseen by the trustees who meet quarterly but more frequently when required to respond to changes in government guidance, to monitor the work of the club and how we are meeting our charitable aims.
The trustees have employed a head professional, an assistant professional and an administrative assistant. We also have engaged a number of individuals to cover cleaning and building activities who are all self-employed.
The trustees' report, including the strategic report, was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Moreton Morrell Tennis Court Club Limited (the Club) for the year ended 31 December 2024.
Having satisfied myself that the financial statements of the Club are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Club’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
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 Club as required by section 386 of the 2006 Act; or
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 2006 Act other than any requirement that the accounts 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 accounts 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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Moreton Morrell Tennis Court Club Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is The Tennis Club, Moreton Morrell, Warwickshire, CV35 9AL, England.
The financial statements have been prepared in accordance with the Club's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) 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)" (effective 1 January 2019). The Club is a Public Benefit Entity as defined by FRS 102.
The Club 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 Club. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. 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 Club 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 Club 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.
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.
At each reporting end date, the Club reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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 Club 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 Club's balance sheet when the Club 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 Club’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 Club 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:
None of the Trustees or key management personnel received any remuneration.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income is included in the financial statements as follows:
The Club operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Club in an independently administered fund.
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 which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2023 - none).