The Trustees present their annual report and financial statements for the year ended 31 March 2025.
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 Trust's Memorandum and 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)” (as amended for accounting periods commencing from 1 January 2019)
The Trust's objects are to provide a swimming pool and other recreational facilities for the community of, and visitors to, Arundel. The Trust aims through the provision of a swimming pool and other recreational facilities to improve conditions of life, particularly for those who are disadvantaged by reasons of their youth, age, disability or social economic circumstances, and preserve the community's lido heritage.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Trust should undertake.
This is a financial year that presented both opportunities and challenges for Arundel Lido.
During the year Arundel Lido achieved one of its main aims in that the site remained open all year. The main summer season was extended slightly in length, and during the winter season the cold water swims became firmly established. The Lido continue to play an important part in the local community, including hosting the popular dementia-friendly Elevenses club, providing sporting and social activities for young people and offering swim sessions suitable for swimmers of all levels of experience and fitness. The Lido’s swim teaching service for schools in the area expanded slightly on the previous year with twenty schools participating. The positive feedback on the quality of these swim lessons was maintained.
The Lido site continued to be well maintained and presented an attractive site for visitors to enjoy. This was achieved despite the ageing buildings, many of which are poorly constructed and overdue for replacement. Some incremental improvements were made during the year which will extend the use of these buildings, but investment is needed to upgrade and replace in the near future. The marquee, which accommodates the Elevenses club and other activities, is in particularly urgent need of replacement with a permanent building suitable for community use.
One major achievement for the Lido was attracting large grants from Arun District Council and Sport England of over £90,000 in total which covered the cost of installing solar panels and a replacement pool cover for the main pool. The solar panels were installed around the perimeter of the site and attractively landscaped. They offer a very significant benefit to the Trust in terms of reducing electricity costs and contributing to greater energy efficiency.
The Trust’s income from charitable activities was up by more than twenty percent on the previous year, reflecting a significant increase in visitors using the site for swimming and other activities. During the year there were however financial challenges which resulted in the Trust incurring a small loss for the year on unrestricted funds before transfers compared to the modest surplus that it achieved in the previous financial year. One of the factors contributing to this was the sharp increase in energy costs. The Trust’s fixed price contracts came to an end, and the replacement gas and electricity contracts results in energy costs for the Trust approximately doubling when compared to the previous year. The installation of solar panels that took place towards the end of the financial year is anticipated to have a significant impact on future electricity costs which will be reflected in the next financial year.
In the latter part of the year, important decisions were made on succession planning for the Trust. Plans were put in place for a new team to take over some of the key director roles within the Trust early in the 2025/2026 financial year. By planning the decision in advance a smooth transition will be achieved.
During the year preparations were put in place to celebrate the 21st anniversary of the main Lido pool being reopened by the Trust in 2004. It is anticipated that this event and the associated publicity will reinforce awareness of the important role the Trust plays in the local community.
In purely operational terms, there was a small end-of-year loss.
The Lido Infrastructure Reserve was retained at £128,095. This reserve is set aside to guard against the costs of major replacement items and/or any losses incurred as a result of exceptionally poor summer weather conditions.
Arundel and Downland Community and Leisure Trust held free reserves of £182,602 at 31 March 2025. The table below details how this figure is calculated.
Designated funds represent amounts which the Trustees have set aside to ensure that services can continue to run. Within designated funds a functional fixed assets fund is included, which represents assets used to further the charity's aims on an ongoing basis. This fund is shown separately within the table above for clarity.
Our primary plan for the next few years is to restore the financial stability of the Lido and prepare for future growth including replacement of the marquee.
The Trust is a company limited by guarantee, set up on 20 April 2001 and is a registered charity. The company is managed by the directors, who are also the trustees and who are elected and co-opted under the terms of the Memorandum and Articles of Association.
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:
Regular efforts are made to recruit new Associates, with a view to their becoming full Trustee/Directors in due course. There is currently one Associate Trustee.
Trustees are formally appointed/re-appointed at the Annual General Meeting each year.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute such amount as may be required not exceeding £5 in the event of a winding up.
The full Trust Board meets quarterly (in January, April, July and October) to decide upon strategic matters and key issues. Some Trustees have specific roles.
The Trust Management Team (comprising 2/3 Trustees) meets, with the Lido Manager, fortnightly in the Winter, but weekly in the Summer Swim Season.
The Lido Manager is the only full-time employee. She recruits some 30 part-time staff (Duty Managers, Lifeguards, Receptionists, Shop and Kitchen staff) for the Summer Swim Season each year.
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Arundel and Downland Community Leisure Trust (the Trust) for the year ended 31 March 2025.
Having satisfied myself that the financial statements of the Trust 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 Trust’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.
Since the Trust’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. 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 Trust 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.
Investments
Income from trading subsidiaries
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Arundel and Downland Community Leisure Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Arundel Lido, Queen Street, West Sussex, Arundel, BN18 9JG.
The financial statements have been prepared in accordance with the Trust's Memorandum and Articles of Association, 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 Trust is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Trust. 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.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust 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.
Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
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 Trust 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.
Grants, including grants for the purchase of fixed assets, are recognised as incoming resources when receivable. Where grants are given in relation to a set period which straddles a year end, recognition of an appropriate portion of the grant is deferred.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts.
All expenditure is accounted for on an accruals basis and includes attributable VAT which cannot be recovered.
Governance costs are those associated with constitutional and statutory requirements.
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.
Assets below £500 are not capitalised.
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 Trust. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting end date, the Trust 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 Trust 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 Trust's balance sheet when the Trust 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 Trust’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 Trust 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.
In the application of the Trust’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.
Grants receivable
Clubs and ticket sales
Kiosk sales
Facilities rental
Manager's activities
Arundel Community Trust Services Ltd
Kiosk purchases
Utilities and rates
Insurance
Cleaning
Repairs and maintenance
Health and safety costs
Manager's activities expenses
Other staff costs
Booking costs
Elevenses
The trustees consider that all support and governance costs should be allocated to the charitable activities of the Trust.
The average monthly number of employees during the year was:
The remuneration of key management personnel is 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.
There has been a transfer from restricted to unrestricted funds of £103,094 due to the fixed assets that were funded by restricted grants being fully built and in use at the balance sheet date.
Assets not recognised in the balance sheet
The charity maintains Arundel Lido, its grounds and the adjacent car park. These were acquired in 2002 by way of a 125-year lease from the Arundel Town Council, with the freehold of the land remaining with Arun District Council.
The value of these items at the time of acquisition, and any increase in value that has occurred since that date, are not included in the balance sheet of the charity.
The cost of major enhancement work to the pools, grounds and gardens, and any capital work to the buildings that does not represent repair or maintenance, is capitalised on the balance sheet.
The Trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Trust in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £1,867 (2024 - £1,013).
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.
Small Pool Covers
A grant was received from Arundel District Council to fund the purchase of the small pool covers which were purchased last year. There has been a transfer to unrestricted funds as the pool covers were in use at the balance sheet date.
Main Pool Covers
A grant was received from Sport England to fund the purchase of the pool cover for the main pool which was purchased last year. There has been a transfer to unrestricted funds as the pool covers were in use at the balance sheet date..
Solar Panels
A grant was received from Arun District Council to fund the purchase of the solar panels which was made this year. There has been a transfer to unrestricted funds as the solar panels had been fully installed and were in use at the balance sheet date..
Youth Gym
A grant was received from Arundel Town Council to cover the cost of running the Youth Gym for a year.
Marquee Replacement
A donation was received during the year toward the cost of the upcoming marquee replacement.
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.
Infrastructure Reserve
This fund is set aside to guard against the costs of major replacement items and any losses incurred as a result of exceptionally poor summer weather conditions.
Fixed Asset Fund
The fixed asset fund is an amount equivalent to the net book value of fixed assets at the balance sheet date. The transfer between this fund and the General funds has been made to correct the balance from last year.
Subsidiary Reserve
To recognise amounts due which will be needed to subsidise the Lido's general operations in future years.
At the balance sheet date there were financial commitments of £3,197 (2024 - £0) that haven't been accrued in the accounts.
During the year there was £97,273 (2024 - £97,248) gift aid receivable from the subsidiary.
These financial statements are separate Trust financial statements for Arundel Downland Community Leisure Trust.
Details of the Trust's subsidiaries at 31 March 2025 are as follows:
The Trust had no material debt during the year.