The Directors present their report and financial statements for the year ended 31 March 2025. This report also serves as the Trustees' report.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)"

Mission Statement

Mid Argyll Community Enterprise Limited (MACPool) is a social enterprise enabling the community to swim and take part in sports, leisure and social activities in support of health and well-being. We deliver this through quality in our facilities, service and partnerships.

Our key objective is to provide and promote swimming and water-based activities for the whole community of Mid Argyll. We do this through the provision of facilities and programmes for people of all ages and abilities.

The Manager and staff are responsible for the day-to-day business of running the MACPool Activity Hub, based on the overall strategy agreed with the Board of Directors in January 2024. In the past year MACPool has made progress around staffing but continues to face challenges with the condition and reliability of our infrastructure and sufficient finances to be able to say we are a going concern.

Our detailed objectives are:

1. To ensure we have well trained and motivated staff

In the past year we have had a change in leadership which has enabled us to focus on staff development education and remuneration. We have looked closely at pay rates and the environment in which people work to ensure MACPool staff are paid appropriately, and the new leadership has been working hard to ensure we have a friendly supportive environment, which makes people feel valued and want to work here.

We are grateful to Becci McBride for stepping up into the role of interim MACPool Activity Hub Manager and we are delighted that subsequently she has been appointed into this role permanently. Becci has developed an environment where staff can continue to grow, learn and improve. We have introduced our training programme which enables staff to progress to higher levels in house.

Improving our in house training, not only supports our future business plans, but also evidences to our staff that they have a career at MACPool, not just a stepping stone to somewhere else. This will also provide new pathways for our customers, by ensuring that we can meet local demand for swimming lessons and adding lifesaving skills training to our services as a clear progression route for young people in Mid Argyll.

2. To manage efficient, well-maintained plant and buildings

In 2021/22 MACPool undertook a major redevelopment programme to improve the changing facilities and utilise the space provided by adjacent buildings. Although these facilities are enabling MACPool to serve our communities in a better way unfortunately we are facing significant challenges with internal structures within the new roof areas. We are currently working with contractors to identify when remedial actions can be taken.

We have a 30 year old pool which requires urgent attention in the following areas:

• The fabric of the main pool building

We will need to plan funding in the next year or two for repair of the main pool roof after survey work last year.

• Reviewing and upgrading our pool plant

• The CO2 dosing system used to balance the PH in the pool has been replaced and is working well but there are two areas which still require urgent attention at a further cost of £120,000:

• The sand filtration system is at the end of its life and will need to be replaced this year if the pool is to continue to operate. This is urgent and we are actively seeking funding to enable this to happen quickly.

• The biomass boiler system is temperamental, especially in the winter months when the fuel gets damp. We have proposals for an alternative energy source which we are also seeking funding to replace.

• Improving our IT Systems

Our new website, learn to swim programme, booking and payment systems have been modernised and updated in 2025. This is a great effort by everybody concerned and will ensure better access control by staff and customers alike.

3. To have sufficient finances to run our operations

In 2024/25 MACPool finished the year with a small operating surplus before depreciation of £22,345 which then became a deficit of £49,483 after depreciation costs were added.

Income is growing but still not in line with increased costs especially staffing costs which have been affected by the living wage increases and the impact of staff absence during the year. In February 2024 we set out a plan to deliver an extra £50k pa of income for the next 3 years to maintain long term viability in MACPool. We planned to achieve this by:

• Growing our own business by improving the quality of teaching and activities we offer; we have worked hard to achieve this through better in house training and staff development.

• Controlling costs, especially looking at our energy and water contracts.

• Developing a way for our community to support the pool, with family fun days and a swimathon which raised £10,000 to fund the purchase of a new aqua run.

• Gaining additional long term support from local wind farms, community councils and community trusts.

The good news for 2024-25 is that we were very grateful to be awarded £71k over the next 3 years by A’Chruach and Foundation Scotland which will allow us to purchase a new disabled hoist and to complete swim teacher training to enable us to rebuild our own income. We were also supported by Ardrishaig Community Trust with a £20,000 award towards supporting our day to day costs. By the Autumn of 2025 we need to have secured sufficient grant funding to replace our filtration and heating systems as well as finding a solution to repairing the issues with our new roof. As of the date of this report, we are delighted to have obtained support of £285,181 which will enable all the pool plant works to be undertaken with work expected to start in January 2026 and be completed by early February 2026.

Financial Outlook

The year to March 2025 has been a difficult year rebuilding the MACPool team, juggling our finances and coping with ageing plant and buildings. Looking forward we have a plan to complete staff training, grow our business and develop the finances to ensure MACPool continues to provide swimming opportunities to the people of Mid Argyll.

We continue to manage our costs and income to provide a balanced budget, but we still do not have reserves to complete any further major work.

The operating result (before transfers) for the year was a deficit of £49,483, with a deficit in relation to the unrestricted funds being £87,249 for the year. We lost £10k as a result of a boiler failure in January/February, have seen staffing costs rise due to the living wage increases and electricity costs increased by over £27k. We had budgeted a break even out turn after receiving £30,000 of additional fund from Argyll and Bute council for this year only and a 3 year grant from A'Chruach.

The Trustees further emphasise that whilst the Balance Sheet indicates that MACPool has significant reserves, the majority of these reserves are in the form of non-liquid, fixed assets which cannot be readily converted to cash or cash equivalents.

Operational Risks

Throughout 2025 the Pool has been forced to close unexpectedly on several occasions due to the failure of the plant room affecting the reputation, income and future of the Pool as the Sand Filtration System was perilously close to the end of its life span. The directors undertook to seek funding and successfully achieved a large grant from Highland & Islands Enterprise in excess of £200K to replace all of the Filtration and Filters systems. This project called Resilience commenced in October with a planned closure of the facility for 6 weeks to install a state of the art system begins on 5 January 2026. This system once installed will secure the future of the Pool for another 30 years.

We undertook a full review of our current heating system as the woodchip system failed at times throughout the year. We achieved £50k in grants from CLLD and are currently researching matched funding to install a secondary heating system which would prevent closure of the facility should this reoccur.

As aforementioned the Pool roof will require a full upgrade over the course of the next year or two and to this end we have submitted a grant request to SSEN.

Retention of Key Staff

Following a review of key staffing roles we have consolidated two key roles within MACPool, that of the Manager and Finance Manager. Both roles remain in development whilst addressing the significant risks associated with the failing plant and new developments coming next year. Working closely with the directors these roles complement each other and provide a solid structure for the development of the MACPool team. We continue to reach out to schools and engage local young people to experience the workplace in a meaningful way by offering training and development opportunities.

Stakeholder engagement and Management

MACPool continues to work very closely with ABC who provide our Service Level Agreement. We had to work hard to achieve the additional £30k this year in light of strains on ABC which we require to remain a going concern. We have a full diary of monthly meetings for 2026 with ABC and remain fully engaged in this relationship.

We worked hard to engage with HIE to acquire the significant grant we required to remain open. We value these relationships hugely and are committed to monitoring and management of Project Resilience with regular updates and meetings. We use Social Media Platforms widely to publicise the support we receive from stakeholders to ensure the public are aware and understand how challenging finding funding is.

We have reached out to GLIC to assist us with larger funding applications and processes which will accrue some cost but the potential outcome of significant grants gained warrants this cost.

Economic Risk

MACPool are acutely aware of the challenges faced by our community in juggling finances and to this end we have sought further funding grants to support free swimming. school swimming has been relaunched alongside Learn to Swim memberships. MAYDS also provide funding for weekly free swimming. We have joined with RMfitness to provide Swim/Gym opportunities bringing new activities to the timetable.

Mid Argyll Community Enterprises Ltd (MACEL) is a company limited by guarantee having no share capital, with charitable status in Scotland. The charity's objects are to advance education through the provision of skills in swimming and life saving.

The Directors, who are also the directors for the purpose of company law, and who served during the year were:

The Board of Directors held regular meetings throughout the year to develop and set strategy as well as to consider reports submitted by key staff and consultants, as deemed necessary. Board Meetings were recorded by Alison Whitefield in 2024 and we welcomed our new minute secretary, Jane Smee in January. The Board would like to thank Alison and Jane for all their hard work over the year.

The Directors' report was approved by the Board of Directors.

I report on the financial statements of the charity for the year ended 31 March 2025, which are set out on pages 7 to 24.

The charity’s directors, who also act as trustees for the charitable activities of Mid Argyll Community Enterprises Limited, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Directors consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the financial statements.

In connection with my examination, no matter has come to my attention:

which gives me reasonable cause to believe that in any material respect the requirements:

to keep accounting records in accordance with section 44(1)(a) of the Charities and Trustees Investment (Scotland) 2005 Act and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006 (as amended); and

to prepare accounts which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations (as amended)

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Iain D C Webster CA

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2025.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

Mid Argyll Community Enterprises Limited is a private company limited by guarantee incorporated in Scotland. The registered office is Mid Argyll Community Enterprises Limited, Oban Road, Lochgilphead, Argyll, PA31 8NG.

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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.

The Directors believe that Argyll and Bute Council will continue to provide revenue grant support (by way of an ongoing contract of services) to the company and, on this basis, consider it appropriate to prepare the accounts on the going concern basis.

Unrestricted funds are available for use at the discretion of the Directors in furtherance of the charitable objectives unless the funds have been designated for other purposes.

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 charity has been notified of the donation, unless performance conditions require deferral of the amount.

Other trading activities represents amounts receivable from those wishing to make use of the facilities available at the swimming pool.

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure. it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure is incurred.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

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 charity 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).

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 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 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 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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

In the application of the charity’s accounting policies, the Directors 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.

(UF) = unrestricted, (RF) = Restricted funds.

The average monthly number of employees during the year was:

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

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.

Deferred income comprise of amounts received for which the services to be delivered fall into the following financial year.

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.

The restricted funds of the charity represent the net book value of the assets held for the charity's use and the unexpended portions of funds received for specific purposes.

Restricted Funds

The restricted funds of the charity represent unexpended portions of funds received for specific purposes as detailed below.

Redevelopment Project

The funds received for the Redevelopment project, as shown at Note 24, were transferred to unrestricted reserves in 2024.

The funds held as a VAT provision represents capital costs where VAT was claimed which is subject to the Capital Goods Scheme whereby future VAT liabilities are to be met from these grants.

Redevelopment funds totalling £23,603 represent unexpended funds held for the redevelopment of the Pool.

Other restricted funding includes:

Foundation Scotland – Funding for ‘Float Fit’ equipment, training and delivery of classes.

Health and Wellbeing Trust – Funding received from the Argyll & Bute Health and Social Care Partnership to run an All Ability Cycling Project in partnership with Ardrishaig Bothy and Cycling UK to purchase equipment and deliver training and bike classes.

Paths for All – Funding for training and to deliver health walks in the local community.

WG Edwards Charitable Foundation – Funding received to Subsidise Movement for Life class for Leisure Link Members.

Tai Chi – A donation received to subsidise swimming lessons for children.

Living Well (NHS) – Funding received from NHS Highland to subsidies Movement and Mobility classes.

Mid Argyll Youth Development Service (MAYDS) - To ongoing support with lifeguard training and general entry into the pool.

Scottish Land Fund - To support ongoing costs with the pool.

Highland and Islands Enterprise - To the purchase of various IT equipment.

Argyll & Bute Council - To provide concessionary rates for entry to the pool for individuals who are on benefits.

Awards for All - To provide swimming lessons to less able bodied individuals.

A'Chruach and other restricted donations - To provide an accessibility hoist for the poolside and applicable ongoing training costs.

InspireAlba - To provide ongoing staff training costs.

Transfers

The transfer from restricted funds of £26,594 represent the follwong:

• Input VAT of £13,354 repayable to HMRC under the Capital Goods Scheme which is covered by grants received for the redevelopment.

• Cost of admission to the Pool which were covered by grant funding from grants from the A'Chruach fund and Awards for All.

The Trustees wish to acknowledge the support of various funding bodies which are set out separately at Note 24.

Redevelopment Project

The Trustees wish to acknowledge the support of the bodies below who offered grant and other support for the redevelopment of the pool in 2023:

• Scottish Land Fund,

• National Lottery,

• Foundation Scotland,

• Big Lottery,

• Highlands and Island Enterprise,

• A'Chruach Fund,

• Viridor,

• Hugh Fraser Foundation,

• Tarbert & Skipness Community Trust,

• EB Scotland,

• RCGF,

• The Robertson Trust and Sports Scotland.

Some of the above funding was a combination of revenue and capital elements.

Other auxillery funding includes:

• FCC Scottish Communities – Funding received to part fund the purchase of a new calorex air handling unit.

• Co-op Local Community Fund– Funding received to purchase Soft Play Equipment.

• CRF Hydro – Donation from CRF Hydro power towards the redevelopment project.

• Various restricted donations – Funding received by way of donations towards the redevelopment project.

• Adapt & Thrive (Redevelopment - revenue) – To support the redevelopment and cover costs of staff salaries whilst the charity is closed.

There were no disclosable related party transactions during the year or for the previous year.