The trustees present their annual report and financial statements for the period ended 31 August 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". The Foundation is registered with the Charity Commission for England and Wales (Registered Charity No. 1207414).
Charitable Objects
The objects of the Foundation are:
To promote community participation in healthy recreation by providing facilities for playing basketball and other sports.
To provide and maintain basketball-related facilities in Greater London for the public benefit in the interests of social welfare, with the object of improving the conditions of life of persons who need such facilities; and
To advance any purpose which is charitable under the laws of England and Wales.
In furthering its objects, the Foundation worked closely with its sole Member, London Lions Group Limited during the period, and other organisations in the field of basketball to develop policies and strategies that maximise collective impact and efficiency.
Public Benefit
The Trustees confirm that they have had regard to the Charity Commission’s guidance on public benefit when reviewing the Foundation’s aims and activities. The Foundation’s work is directed towards the benefit of the public, and in particular those in Greater London who stand to benefit from access to basketball facilities and participation in community sport.
Financial Management and Oversight
The Trustees are responsible for ensuring that the Foundation’s income and assets are applied solely in furtherance of its charitable objects. No part of the Foundation’s income or property may be paid or transferred by way of dividend, bonus, or profit to the Member or to Trustees, except as expressly permitted by the Articles.
The Foundation maintains proper financial records and accounts in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. Annual financial statements are prepared and filed with both the Registrar of Companies and the Charity Commission as required. The Trustees review management accounts regularly and ensure adequate financial controls are in place.
Reserves Policy
The Trustees recognise the importance of maintaining appropriate reserves to ensure the Foundation can continue to meet its charitable objectives. The Board reviews the Foundation’s reserves position regularly and sets aside funds for special purposes or as reserves against future expenditure as it considers appropriate.
The Trustees are committed to continuing to develop the Foundation’s activities in support of its charitable objects. Key priorities for the coming period include:
Expanding access to basketball facilities and programmes across Greater London.
Deepening community engagement, particularly in areas of social need.
Building sustainable funding streams to support the long-term delivery of the Foundation’s charitable purposes.
Strengthening governance arrangements and Board effectiveness; and
Continuing to work with BC London Lions Limited and other partners to maximise collective impact.
Organisational Structure
The Foundation is governed by a Board of Trustees, which is responsible for the Charity's overall management and strategic direction. The sole Member of the Foundation was London Lions Group Limited (the “Member”), which holds significant reserved powers, including the appointment and approval of Trustees. A special resolution resolved that BC London Lions Limited was appointed as the successor member of the Charity in place of London Lions Group Limited and this was passed on 24 April 2025.
Appointment, Retirement, and Removal of Trustees
Trustees may be appointed by the Member or by the Board of Trustees with the prior written consent of the Member. Any Trustee appointment made by the Board is subject to Member approval within 28 days; if no response is received, consent is deemed granted. The Articles always require a minimum of three Trustees, of whom at least two must be Independent Trustees (i.e., persons who are not directors, officers, shareholders, employees, or paid consultants of the Member, nor connected with such a person).
Each Trustee retires from office at the third Annual Retirement Meeting following the commencement of their term of office. Retiring Trustees may be reappointed, but a Trustee who has served three consecutive terms must take a break from office before being eligible for reappointment. No person under the age of 18 may be appointed as a Trustee.
A Trustee ceases to hold office in the event of, among other things: disqualification under charity or company law; resignation (subject to a minimum of three Trustees remaining); failure to attend three consecutive meetings; removal by resolution of the Board; or removal by the Member by written notice.
Trustee Induction and Training
New Trustees receive an induction covering the Foundation’s objects, governing document, policies, and their legal duties as charity trustees and company directors. The Board is committed to ensuring all Trustees have the skills, knowledge, and experience necessary to fulfil their responsibilities effectively. Trustees are encouraged to undertake ongoing training and development as appropriate.
The Trustee, who is also the director for the purpose of company law, and who served during the period and up to the date of signature of the financial statements was:
Decision-Making
The Board of Trustees makes decisions collectively. Decisions are made by a majority of Trustees present and voting at a quorate meeting. The quorum for Trustees’ meetings is a minimum of two Trustees. The Chair of the Trustees holds a casting vote in the event of a tied vote. Where appropriate, decisions may also be made without a meeting, provided that a majority of Trustees indicate their agreement by any means and the outcome is formally recorded.
Meetings are convened by the Chair or by any two Trustees with at least seven clear days’ notice (unless all Trustees agree to shorter notice or urgent circumstances require it). Trustees may participate in meetings remotely, by telephone or video conference.
Delegation
The Board may delegate powers and functions to committees or to individuals, including day-to-day operational management and investment decisions. Any such delegation is subject to appropriate terms and conditions and to the Trustees’ ongoing oversight. All delegated activity is reported back to the Board regularly. The Board retains overall responsibility for the Foundation's management and affairs.
Conflicts of Interest
Trustees are required to declare any direct or indirect interests that may conflict with their duties to the Foundation. The Foundation maintains a Register of Trustees’ Interests. Where a conflict of interest or conflict of duties arises, the relevant Trustee must comply with the conflict of interest provisions in the Articles of Association, which may require that Trustee to withdraw from the relevant part of the decision-making process and to abstain from voting.
Trustees are prohibited from receiving financial benefits from the Foundation except as expressly permitted by the Articles (such as reimbursement of reasonable expenses, or remuneration for goods or services supplied, subject to applicable conditions and authorisation). These restrictions apply to persons connected with Trustees as well as to the Trustees themselves.
In the event of the winding up or dissolution of the Foundation, any net assets remaining after payment of all debts and liabilities shall be applied or transferred to one or more organisations with charitable purposes similar to those of the Foundation, as directed by the Member or, in the absence of a Member resolution, by the Trustees. Net assets shall not be returned to the Member. If no resolution is passed in this regard, the net assets shall be applied as directed by the Charity Commission.
The trustees report was approved by the Board of Trustees.
The trustees, who are also the directors of London Lions Foundation for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report to the trustees on my examination of the financial statements of London Lions Foundation (the charity) for the period ended 31 August 2024.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
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 charity as required by section 386 of the Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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 period. All income and expenditure derive from continuing activities.
London Lions Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is C/o Factotum Group LLP, Kinetic Business Cenre, Theobald Street, Borehamwood, Hertfordshire, WD6 4PJ.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". 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 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 financial statements have been prepared on the going concern basis.
In assessing the appropriateness of the going concern basis of accounting, the trustees have considered the charity's current financial position, expected future cash flows, available resources and the principal risks and uncertainties facing the charity. The trustees have also considered the charity's operational and strategic plans for a period of at least twelve months from the date of approval of these financial statements.
The trustees remain committed to pursuing the Foundation's charitable objectives through the continued development of its activities. Their plans include expanding access to basketball facilities and programmes across Greater London, deepening community engagement, building sustainable funding streams to support the long-term delivery of the Foundation's charitable purposes, strengthening governance arrangements and continuing to work with BC London Lions Limited and other strategic partners to maximise the Foundation's impact.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity 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 charity 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.
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.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of employees during the period was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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.
At the reporting date, the charity had an outstanding balance of £144,901 due to London Lions Group Limited, which had entered into administration on 30 July 2024.
Subsequent to the year end, the administrators have outlined in the statement of affairs that the corresponding receivable has been written down in the company's accounting records.
As at the date of approval of these financial statements, the charity has not received any formal release or waiver of its obligation to settle the outstanding balance. Accordingly, the liability continues to be recognised within creditors at the balance sheet date.
The trustees have considered this matter in accordance with FRS 102 Section 32, Events after the End of the Reporting Period, and concluded that the administration and subsequent write-down do not provide evidence of conditions that existed at the reporting date that would require adjustment to these financial statements. Consequently, this has been treated as a non-adjusting post balance sheet event and there are no adjustments as a result of the above event.
The trustees will continue to monitor the administration process and will account for any formal release, waiver or settlement of the liability in the accounting period in which it occurs.
The trustee's conclusions on the charity being a going concern are set out in the accounting policies (note 1.2).
During the period, management recharges were payable to London Lions Group Limited of £173,743 as included in the accounts.
Included within other creditors is a balance payable to London Lions Group Limited of £144,901. Further details on this is disclosed in note 12.