REGISTERED NUMBER: 11654259 (England and Wales)

Rubicon Leisure Limited

Financial Statements

for the Year Ended 31 March 2025

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

R Delmore

G Langston

G Revans

M G Chambers

J Nasta

R Egan

REGISTERED OFFICE:

Town Hall

Walter Stranz Square

Redditch

United Kingdom

B98 8AH

REGISTERED NUMBER:

11654259 (England and Wales)

AUDITORS:

UHY Hacker Young (Birmingham) LLP,

Statutory Auditor

9-11 Vittoria Street

Birmingham

B1 3ND

FIXED ASSETS

Tangible assets

4

285,056

322,507

CURRENT ASSETS

Stocks

5

44,398

31,067

Debtors

6

381,333

265,654

Cash at bank and in hand

189,510

183,018

615,241

479,739

CREDITORS

Amounts falling due within one year

7

1,115,317

1,246,620

NET CURRENT LIABILITIES

(500,076

)

(766,881

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(215,020

)

(444,374

)

RESERVES

Retained earnings

9

(215,020

)

(444,374

)

(215,020

)

(444,374

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 10 December 2025 and were signed on its behalf by:

G Revans - Director

1.	STATUTORY INFORMATION

Rubicon Leisure Limited is a private limited company limited by guarantee, incorporated in England.

The registered office address of the Company is Town Hall, Walter Stranz Square, Redditch, United Kingdom, B98 8AH.

The principal activity of the Company is to provide leisure, sports, cultural and heritage services for the benefit of the Borough of Redditch and the wider area.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention except for the modification to a fair value basis for certain financial instruments.

These financial statements summarise the Company's transactions for the 2024/25 financial period and its position at the period end of 31 March 2025.

The financial statements are prepared in sterling which is the functional currency of the Company.

Monetary amounts in these financial statements are rounded to the nearest £ unless otherwise stated.

Rubicon Leisure Limited meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are set out below:

Revenue and Expenditure Recognition

Income from trading activities

Revenue in respect of services provided is recognised when (or as) performance obligations are satisfied by transferring promised services to the customer, and is measured at the amount of the transaction price allocated to that performance obligation. Where income is received for a specific performance obligation that is to be satisfied in the following year, that income is deferred.

Income from investments

Interest receivable on investments and payable on borrowings is accounted for respectively as income and expenditure on the basis of the effective interest rate for the relevant financial instrument rather than the cash flows fixed or determined by the contract.

Government Grants Policy

Grants are accounted under the accruals model as permitted by FRS 102.

Grants relating to expenditure on tangible fixed assets are credited to the Profit and loss account at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised within the Profit & Loss Account on an accruals basis.

Expenditure

Supplies are recorded as expenditure when they are consumed - where there is a gap between the date supplies are received and their consumption, they are carried as inventories on the Balance Sheet.

Expenses in relation to services received (including services provided by employees) are recorded as expenditure when the services are received rather than when payments are made.

Cash and Cash Equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in three months or less from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Cash Flow Statement, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Prior Period Adjustments, Changes in Accounting Policies and Estimates and Errors

Prior period adjustments may arise as a result of a change in accounting policies or to correct a material error. Changes in accounting estimates are accounted for prospectively, i.e., in the current and future years affected by the change and do not give rise to a prior period adjustment.

Changes in accounting policies are only made when required by proper accounting practices or the change provides more reliable or relevant information about the effect of transactions, other events and conditions on the Company's financial position or financial performance. Where a change is made, it is applied retrospectively (unless stated otherwise) by adjusting opening balances and comparative amounts for the prior period as if the new policy had always been applied.

Material errors discovered in prior period figures are corrected retrospectively by amending opening balances and comparative amounts for the prior period.

Charges to Revenue for Non-Current Assets

Expenditure includes the following amounts to record the cost of holding fixed assets during the period:

* Depreciation

* Revaluations and impairments.

* Amortisation of intangible fixed assets.

Employee Benefits

Benefits Payable During Employment

Short-term employee benefits are those due to be settled wholly within 12 months of the year-end. They include such benefits as wages and salaries, paid annual leave and paid sick leave, for current employees and are recognised as an expense in the year in which employees render service to the Company. An accrual is made for the cost of holiday entitlements (or any form of leave e.g. time off in lieu) earned by employees but not taken before the year-end which employees can carry forward into the next financial year. The accrual is made at the wage and salary rates applicable in the following accounting year, being the period in which the employee takes the benefit.

Termination Benefits

Termination benefits are amounts payable as a result of a decision by the Company to terminate an officer's employment before the normal retirement date or an officer's decision to accept voluntary redundancy in exchange for those benefits and are charged on an accruals basis to employee costs at the earlier of when the Company can no longer withdraw the offer of those benefits or when the Company recognises costs for a restructuring.

Post Employment Benefits

Employees of the Company are members of the Local Government Pensions Scheme, administered by Worcestershire County Council known as the Worcestershire Pension Fund (WPF). The scheme provide defined benefits to members (retirement lump sums and pensions), earned as employees working for the Company.

The liabilities of the WPF attributable to the Company are included in the Balance Sheet on an actuarial basis using the projected unit method - i.e. an assessment of the future payments that will be made in relation to retirement benefits earned to date by employees, based on assumptions about mortality rates, employee turnover rates, etc., and projections of projected earnings for current employees.

Liabilities are discounted to their value at current prices, using a discount rate based on the indicative rate of return on a basket of high quality corporate bonds, government gilts and other factors.

The assets of WPF attributable to the Company are included in the Balance Sheet at their fair value:

- quoted securities - current bid price

- unquoted securities - professional estimate

- unitised securities - current bid price

- property - market value.

The change in the net pensions liability is analysed into the following components:

Service cost comprising:

* current service cost - the increase in liabilities as a result of years of service earned this year.

* past service cost - the increase in liabilities as a result of a scheme amendment or curtailment whose effect relates to years of service earned in earlier years.

Post Employment Benefits (cont'd)

* net interest on the net defined benefit liability , i.e. net interest expense for the Company - the change during the period in the net defined benefit liability that arises from the passage of time - this is calculated by applying the discount rate used to measure the defined benefit obligation at the beginning of the period to the net defined benefit liability at the beginning of the period - taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments.

Remeasurements comprising:

* the return on plan assets - excluding amounts included in net interest on the net defined benefit liability.

* actuarial gains and losses - changes in the net pensions liability that arise because events have not coincided with assumptions made at the last actuarial valuation or because the actuaries have updated their assumptions.

* Contributions paid to the WPF - cash paid as employer's contributions to the pension fund in settlement of liabilities; not accounted for as an expense.

Events After the Reporting Period

Events after the balance sheet date are those events, both favourable and unfavourable, that occur between the end of the reporting period and the date when the Statement of Accounts are authorised for issue. Two types of events can be identified:

* Those that provide evidence of conditions that existed at the end of the reporting period - the Statement of Accounts is adjusted to reflect such events.

* Those that are indicative of conditions that arose after the reporting period - the Statement of Accounts are not adjusted to reflect such events, but where a category of events would have a material effect, disclosure is made in the notes of the nature of the events and their estimated financial effect.

Events taking place after the date of authorisation for issue are not reflected in the Statement of Accounts.

Financial instruments

The Company only has financial assets and liabilities of a kind that qualify as basic financial instruments and are not considered to be of a financial nature. Such financial instruments, except for investments classified at fair value through the Profit and Loss Account, are initially recognised at transaction value and subsequently measured at their settlement value.

Trade and other debtors/creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financial restriction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at market rate of interest for a similar debt instrument.

Impairment of financial assets

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised within profit or loss.

For financial assets that are measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Inventories

Inventories are included in the Balance Sheet at the lower of cost and net realisable value. The cost of inventories is assigned using the weighted average costing formula.

Operating Leases

Rentals paid under operating leases are charged as an expense. Charges are made on a straight-line basis over the life of the lease, even if this does not match the pattern of payments (e.g., there is a rent-free period at the commencement of the lease).

Leasehold land and buildings transferred to the company from Redditch Borough Council the ultimate beneficial owner, at little or no consideration are classified as operating leases as the lease term of 30 years is significantly less than the useful economic life of the assets transferred as the leases do not transfer:

* substantially all the risks and rewards incidental to ownership;

* ownership of the land and buildings to the company by the end of the lease term

Materiality

Materiality is an expression of the relative significance or importance of a particular matter in the context of the financial statements as a whole. A matter is material if its omission would reasonably influence the reader of the accounts. Notes are only included where items are considered to be material by value or nature.

Property, Plant and Equipment

Individual fixed assets costing more than £1,000 are capitalised at cost. Fixed assets are stated at historical cost, less accumulated depreciation and any provision for impairment.

Depreciation is provided on all tangible fixed assets including fixtures and fittings at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life, as a percentage of value of each class of asset as advised by a suitably qualified officer.

Provisions

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefits or service potential, and a reliable estimate can be made of the amount of the obligation. For instance, the Company may be involved in a court case that could eventually result in the making of a settlement or the payment of compensation.

Value Added Tax

VAT payable is included as an expense only to the extent that it is not recoverable from HM Revenue and Customs. VAT receivable is excluded from income.

Current and deferred taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date.

Deferred tax is provided on the timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller that the corresponding income or expenses.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Going Concern

The directors believe that the company's financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support from Redditch Borough Council will be adequate to meet the company's needs for a period of at least 12 months from the date of approval of these financial statements.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 229 (2024 - 179 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Plant and

Computer

fittings

machinery

equipment

Totals

£

£

£

£

COST

At 1 April 2024

94,974

275,257

61,953

432,184

Additions

17,913

4,035

3,218

25,166

At 31 March 2025

112,887

279,292

65,171

457,350

DEPRECIATION

At 1 April 2024

16,537

82,149

10,991

109,677

Charge for year

21,042

28,747

12,828

62,617

At 31 March 2025

37,579

110,896

23,819

172,294

NET BOOK VALUE

At 31 March 2025

75,308

168,396

41,352

285,056

At 31 March 2024

78,437

193,108

50,962

322,507

5.

STOCKS

2025

2024

£

£

Stocks

44,398

31,067

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

55,476

(82,023

)

Other debtors

-

6,061

VAT

325,857

230,636

Accrued Income

-

110,980

381,333

265,654

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

10,249

36,930

Amounts owed to group undertakings

66,942

207,127

Social security and other taxes

59,135

-

Deferred income

814,770

844,288

Accrued expenses

164,221

158,275

1,115,317

1,246,620

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2025

2024

£

£

Within one year

9

9

Between one and five years

36

36

In more than five years

162

171

207

216

9.

RESERVES

Retained

earnings

£

At 1 April 2024

(444,374

)

Profit for the year

263,354

Actuarial gain

(34,000

)

At 31 March 2025

(215,020

)

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for disclaimer of 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 February 2021, the company and its parent, implemented a new accounting system. Issues identified with the recording and processing of transactions resulted in a disclaimer of opinion being placed on the financial statements for the years ended 31 March 2022, 31 March 2023 and 31 March 2024.

As a result of the disclaimer of opinion in the previous year, we are unable to express an opinion as to whether

the comparative amounts contained within these financial statements are free from material misstatement.

We have also therefore been unable to obtain sufficient, appropriate audit evidence to support opening

balances. We consider the impact of these items to be pervasive to the financial statements and therefore we

are unable to determine whether adjustments may be necessary in order for prior year comparative amounts

to give a true and fair view.

During the year ended 31 March 2025, sufficient, appropriate audit evidence has been obtained to support the

closing balances contained within the balance sheet and the in-year balances in relation to items included in

the statement of profit and loss, with the exception of amounts written off totalling £104,792.

Malcolm Winston (Senior Statutory Auditor)

for and on behalf of UHY Hacker Young (Birmingham) LLP,

11.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

12.	ULTIMATE CONTROLLING PARTY

The immediate and ultimate controlling party of the company is Redditch Borough Council by virtue of its 100% controlling interest in the company.

The smallest and largest entity to prepare consolidated financial statements that include this company is Redditch Borough Council, copies of which are available from Redditch Borough Council, Walter Stranz Square, Redditch, B98 8AH

13.	PENSION AND SIMILAR OBLIGATIONS

The company's employees belong to one principal pension scheme: the Local Government Pension Scheme (LGPS) which is managed by Worcestershire County Council Pension Fund. The scheme is a defined benefit scheme.

Following the transfer of employees from the local authority, Redditch Borough Council, to the company on 1 December 2018 there was a transfer of employers LGPS liabilities of £1,113,000 under Transfer of Undertakings (Protection of Employment) Regulations 2006.

The total pension cost to the company during the year ended 31 March 2025 was £47,000 (2024: £92,000).

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the LGPS 31 March 2022.

Contributions amounting to £Nil (2024: £ Nil) were payable to the LGPS scheme at 31 March 2025 and are included within creditors.

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, with the assets held in a separate trustee administered funds. The total contributions made for the year ended 31 March 2025 was £123,000 (2024: £129,000), of which employers contributions totalled £81,000 (2024: £86,000) and employees contributions totalled £42,000 (2024: £43,000). The agreed contributions for future years are on average 16.6% (2024: 16.6%) for employers and 5.5% (2024: 5.5%) for employees.

Principal Actuarial Assumptions

The major assumptions used by the actuary were:

2025

2024

% per

% per

Annum

Annum

Discount Rate

5.9%

4.9%

Salary increases

4.2%

4.3%

Pension increase

2.7%

2.8%

Sensitivity analysis for the principal assumptions used to measure the scheme liabilities were as follows:

2025

2024

Approx

Approx

£

£

Discount rate reduced by 0.1% per annum

93,000

120,000

Pension increased by 0.1% per annum

92,000

107,000

Salary growth increased by 1.0% per annum

4,000

15,000

Life expectancy at retirement increased by 1 year

153,000

189,000

PENSION AND SIMILAR OBLIGATIONS (cont'd)

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:

2025

2024

Longevity at age 65 retiring today

Years

Years

- Men

21.2

21.3

- Women

23.6

23.6

Longevity at age 65 retiring in 20 years

- Men

22.5

22.6

- Women

25.4

25.5

The Company's share of the assets in the scheme were:

Fair value

Fair value

at 31

at 31

March

March

2025

2024

£

£

Equity instruments

2,522,000

3,350,000

Debt instruments

268,000

142,000

Property

993,000

1,133,000

Cash

38,000

94,000

Total market value of assets

3,821,000

4,719,000

2025

2024

£

£

Present value of scheme liabilities

- Funded

(3,821,000

)

(4,719,000

)

- Unfunded

-

-

Total liabilities

(3,821,000

)

(4,719,000

)

Deficit in the scheme

-

-

The actual return on the scheme assets in the year was £108,000 (2024: £673,000).

PENSION AND SIMILAR OBLIGATIONS (cont'd)

Amounts recognised in the Statement of Profit and Loss

2025

2024

£

£

Current service cost

112,000

126,000

Past service cost

-

-

Curtailments

-

-

Interest income

(294,000

)

(254,000

)

Interest cost

229,000

220,000

Administrative Expenses

-

-

Total operating charge

47,000

92,000

2025

2024

Changes in deficit during the period

£

£

Balance at 1 April 2024

-

-

Movement in year:

- Employer service cost (net of employee contributions)

112,000

126,000

- Employer contributions

(81,000

)

(86,000

)

- Expected return on scheme assets

(294,000

)

(254,000

)

- Administrative Expenses

-

-

- Interest cost

229,000

220,000

- Actuarial (gain)/losses

(949,000

)

(722,000

)

- Restriction on scheme assets

983,000

716,000

Deficit in the scheme at 31 March 2025

-

-

Changes in the present value of defined benefit obligations were as follows:

2025

2024

£

£

Balance at 1 April 2024

4,719,000

4,762,000

Current service cost

112,000

126,000

Past service cost

-

-

Curtailments

-

-

Interest cost

229,000

220,000

Contributions by scheme participants

42,000

43,000

Benefits paid

(146,000

)

(129,000

)

Actuarial (gain)/losses

(1,135,000

)

(303,000

)

Scheme liabilities at 31 March 2025

3,821,000

4,719,000

PENSION AND SIMILAR OBLIGATIONS (cont'd)

Changes in the fair value of company's share of scheme assets:

2025

2024

£

£

Balance at 1 April 2024

4,719,000

4,762,000

Interest on plan assets

294,000

254,000

Actuarial gains / (losses)

(186,000

)

419,000

Administrative Expenses

-

-

Contributions by employer

81,000

86,000

Benefits paid

(146,000

)

(129,000

)

Contributions by scheme participants

42,000

43,000

Restriction on scheme assets

(983,000

)

(716,000

)

Fair value of scheme assets at 31 March 2025

3,821,000

4,719,000

The estimated value of employer contributions for the year ended 31 March 2026 is £91,000 (2025: £93,000).