Caseware UK (AP4) 2025.0.111 2025.0.111 2026-03-31 2026-03-31 false 2025-04-01 true true true true The principal activity of the Company in the period was that of the provision of health, wellbeing and fitness and leisure services and the society is responsible for managing the majority of leisure centres and libraries in the county of Flintshire.389 373 true false false 15993971 2025-04-01 2026-03-31 15993971 2024-10-02 2025-03-31 15993971 2026-03-31 15993971 2025-03-31 15993971 3 2025-04-01 2026-03-31 15993971 3 2024-10-02 2025-03-31 15993971 d:Director1 2025-04-01 2026-03-31 15993971 d:Director2 2025-04-01 2026-03-31 15993971 d:Director4 2025-04-01 2026-03-31 15993971 d:RegisteredOffice 2025-04-01 2026-03-31 15993971 e:CurrentFinancialInstruments 2026-03-31 15993971 e:CurrentFinancialInstruments 2025-03-31 15993971 e:CurrentFinancialInstruments e:WithinOneYear 2026-03-31 15993971 e:CurrentFinancialInstruments e:WithinOneYear 2025-03-31 15993971 e:ReportableOperatingSegment1 2025-04-01 2026-03-31 15993971 e:ReportableOperatingSegment1 2024-10-02 2025-03-31 15993971 e:UKTax 2025-04-01 2026-03-31 15993971 e:UKTax 2024-10-02 2025-03-31 15993971 e:ShareCapital 2025-04-01 2026-03-31 15993971 e:ShareCapital 2026-03-31 15993971 e:ShareCapital 2024-10-02 2025-03-31 15993971 e:ShareCapital 2025-03-31 15993971 e:RetainedEarningsAccumulatedLosses 2025-04-01 2026-03-31 15993971 e:RetainedEarningsAccumulatedLosses 2026-03-31 15993971 e:RetainedEarningsAccumulatedLosses 2024-10-02 2025-03-31 15993971 e:RetainedEarningsAccumulatedLosses 2025-03-31 15993971 d:OrdinaryShareClass1 2025-04-01 2026-03-31 15993971 d:OrdinaryShareClass1 2026-03-31 15993971 d:OrdinaryShareClass1 2025-03-31 15993971 d:FRS102 2025-04-01 2026-03-31 15993971 d:Audited 2025-04-01 2026-03-31 15993971 d:FullAccounts 2025-04-01 2026-03-31 15993971 d:PrivateLimitedCompanyLtd 2025-04-01 2026-03-31 15993971 e:WithinOneYear 2026-03-31 15993971 e:WithinOneYear 2025-03-31 15993971 e:BetweenOneFiveYears 2026-03-31 15993971 e:BetweenOneFiveYears 2025-03-31 15993971 2 2025-04-01 2026-03-31 15993971 f:PoundSterling 2025-04-01 2026-03-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 15993971 FLINTSHIRE LIBRARIES AND LEISURE LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
FLINTSHIRE LIBRARIES AND LEISURE LIMITED COMPANY INFORMATION
Directors | C Macleod
| R Jones
| A J Bentley
Registered number | 15993971
Registered office | Gwella Head Office Chester Road West
| Queensferry
| Deeside
| Flintshire
| Wales
| CH5 1SA
Independent auditors | WR Partners
| Chartered Accountants & Statutory Auditors
| 3 Royal Court
| Gadbrook Way
| Gadbrook Park
| Northwich
| Cheshire
| CW9 7UT
FLINTSHIRE LIBRARIES AND LEISURE LIMITED CONTENTS
| Page
Strategic report | 1
Directors' report | 2 - 3
Independent auditors' report | 4 - 7
Statement of comprehensive income | 8
Statement of financial position | 9
Statement of changes in equity | 10
Notes to the financial statements | 11 - 26
FLINTSHIRE LIBRARIES AND LEISURE LIMITED STRATEGIC REPORT FOR THE PERIOD ENDED 31 MARCH 2026
Introduction
The directors present the strategic report for the period ended 31 March 2026.
Business review
2025/26 saw Flintshire Libraries and Leisure Limited's , trading as Gwella, first full year of trading. The business plan for 2025/26 was focused on business as usual whilst identifying future areas for growth and improvement. The results for the period ended 31 March 2026 are set out in pages 8 to 26. The profit for the period, after recognising the defined pension scheme movements, was £77,250 The value of net assets after pension surplus at 31 March 2026 was £202,375. The LGPS pension scheme has reported a surplus of £4,520k although this has been restricted under accounting standard FRS102. No surplus has been recognised in the financial statements of the Company.
Principal risks and uncertainties
The Board and the Executive Leadership Team have considered the risks for Gwella and maintained a strategic risk register, operational department risk registers, a risk management policy and toolkit to mitigate these risks. Aura’s risks and the associated risk registers have been the subject of regular discussion by the Board and the Executive Leadership Team.
Financial key performance indicators
The Company’s financial KPI’s continue to be turnover and profit before tax which are recorded on page 8 of the financial statements. This report was approved by the board on 17 June 2026 and signed on its behalf.
C Macleod Director
Page 1
FLINTSHIRE LIBRARIES AND LEISURE LIMITED DIRECTORS' REPORT FOR THE PERIOD ENDED 31 MARCH 2026 The directors present their report and the financial statements for the period ended 31 March 2026.
Directors' responsibilities statement
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Company's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The profit for the period, after taxation, amounted to £384,250 (2025 - £189,124). Total comprehensive income for the period amounted to £77,250 (2025 - £125,124), after taking account of movements recognised in other comprehensive income, including the actuarial movement on the defined benefit pension scheme. No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who served during the period were:
C Macleod
R Jones (appointed 25 September 2025)
A J Bentley (appointed 1 January 2026) D J Cove (appointed 25 September 2025, resigned 1 January 2026)
Engagement with employees
The Company is an equal opportunities employer, allows its employees to identify their chosen gender, including non-binary, and has taken action to provide employees with information on matters of concern to them and to regularly consult to allow employee views to be considered. Page 2
FLINTSHIRE LIBRARIES AND LEISURE LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2026
Disabled employees
Gwella is committed to promoting equality of opportunity, eliminating discrimination and to recognising and valuing diversity. Our aim is to ensure that we maintain a culture of inclusion which enables us to meet the needs of our diverse workforce for both applicants and employees. All employees receive appropriate mandatory and discretionary training opportunities to develop their career opportunities within Gwella. Should an employee become disabled, they are retained in their existing posts where possible with reasonable adjustments or receive support and training for suitable alternative employment within Gwella.
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Auditors
The auditors, WR Partners, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 17 June 2026 and signed on its behalf.
C Macleod Director
Page 3
FLINTSHIRE LIBRARIES AND LEISURE LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FLINTSHIRE LIBRARIES AND LEISURE LIMITED
Opinion
We have audited the financial statements of Flintshire Libraries and Leisure Limited (the 'Company') for the period ended 31 March 2026, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: ∙give a true and fair view of the state of the Company's affairs as at 31 March 2026 and of its profit for the period then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for 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 United Kingdom, including the Financial Reporting Council'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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Page 4
FLINTSHIRE LIBRARIES AND LEISURE LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FLINTSHIRE LIBRARIES AND LEISURE LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Page 5
FLINTSHIRE LIBRARIES AND LEISURE LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FLINTSHIRE LIBRARIES AND LEISURE LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). We understood how the Company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Page 6
FLINTSHIRE LIBRARIES AND LEISURE LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FLINTSHIRE LIBRARIES AND LEISURE LIMITED (CONTINUED) Fran Johnson BSc BFP FCA (Senior statutory auditor) for and on behalf of WR Partners Chartered Accountants Statutory Auditors 3 Royal Court Gadbrook Way Gadbrook Park Northwich Cheshire CW9 7UT 19 June 2026 Page 7
FLINTSHIRE LIBRARIES AND LEISURE LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 MARCH 2026
| 31 March | 31 March
| 2026 | 2025
Note | £ | £
Turnover | 4 | 10,596,398 | 5,174,544
Cost of sales |  | (7,560,803) | (3,114,831)
Gross profit |  | 3,035,595 | 2,059,713
Administrative expenses |  | (2,920,229) | (1,894,881)
Operating profit | 5 | 115,366 | 164,832
Interest receivable and similar income |  | 634 | -
Other finance income | 9 | 291,000 | 66,000
Profit before tax |  | 407,000 | 230,832
Tax on profit | 10 | (22,750) | (41,708)
Profit for the financial period |  | 384,250 | 189,124
Other comprehensive income for the period |  |  |
Actuarial gains on defined benefit pension scheme |  | (577,000) | 1,511,000
Pension surplus not recognised |  | 270,000 | (1,447,000)
Other comprehensive income for the period |  | (307,000) | 64,000
Total comprehensive income for the period |  | 77,250 | 253,124
The notes on pages 11 to 26 form part of these financial statements.
Page 8
FLINTSHIRE LIBRARIES AND LEISURE LIMITED REGISTERED NUMBER: 15993971 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026
|  | 2026 |  | 2025
Note |  | £ |  | £
Current assets |  |  |  |  |
Stocks | 11 | 75,538 |  | 78,906 |
Debtors: amounts falling due within one year | 12 | 1,414,350 |  | 2,423,097 |
Cash at bank and in hand | 13 | 480,880 |  | - |
|  | 1,970,768 |  | 2,502,003 |
Creditors: amounts falling due within one year | 14 | (1,768,393) |  | (2,376,878) |
Net current assets |  |  | 202,375 |  | 125,125
Total assets less current liabilities |  |  | 202,375 |  | 125,125
Net assets |  |  | 202,375 |  | 125,125
Capital and reserves |  |  |  |  |
Called up share capital | 15 |  | 1 |  | 1
Profit and loss account | 16 |  | 202,374 |  | 125,124
|  |  | 202,375 |  | 125,125
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 June 2026.
C Macleod
Director
The notes on pages 11 to 26 form part of these financial statements. Page 9
FLINTSHIRE LIBRARIES AND LEISURE LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 MARCH 2026
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
Comprehensive income for the period |  |  |
Profit for the period | - | 189,124 | 189,124
Actuarial losses on pension scheme | - | (64,000) | (64,000)
Total comprehensive income for the period | - | 125,124 | 125,124
Contributions by and distributions to owners |  |  |
Shares issued during the period | 1 | - | 1
Total transactions with owners | 1 | - | 1
At 1 April 2025 | 1 | 125,124 | 125,125
Comprehensive income for the period |  |  |
Profit for the period | - | 384,250 | 384,250
Actuarial movement on defined benefit pension scheme | - | (307,000) | (307,000)
Other comprehensive income for the period | - | (307,000) | (307,000)
Total comprehensive income for the period | - | 77,250 | 77,250
Total transactions with owners | - | - | -
At 31 March 2026 | 1 | 202,374 | 202,375
| The notes on pages 11 to 26 form part of these financial statements.
Page 10
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
1. | General information
Flintshire Libraries and Leisure Limited is a private company limited by shares, incorporated in England & Wales. The registered office and principal place of business is Gwella Head Office, Chester Road West, Queensferry, Deeside, Flintshire, Wales, CH5 1SA. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); ∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A. This information is included in the consolidated financial statements of Flintshire County Council as at 31 March 2026 and these financial statements may be obtained from Flintshire County Council website.
| 2.3 | Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis in preparing the financial statements. Page 11
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably.
| 2.5 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.6 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.7 | Borrowing costs
All borrowing costs are recognised in profit or loss in the period in which they are incurred. Page 12
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.8 | Pensions
Defined benefit pension plan The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan. The liability recognised in the Statement of financial position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled. The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate'). The fair value of plan assets is measured in accordance with the FRS102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'. The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises: a) the increase in net pension benefit liability arising from employee service during the period; and b) the cost of plan introductions, benefit changes, curtailments and settlements. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.
| 2.9 | Taxation
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income. Page 13
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.10 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.11 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.12 | 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 no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
| 2.13 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. Page 14
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.14 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102. Financial instruments are recognised in the Company's Statement of financial position when the Company 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 Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Page 15
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.14 | Financial instruments (continued)
Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Page 16
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026 2.Accounting policies (continued)
| 2.14 | Financial instruments (continued)
Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the varying 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 Defined Benefit Pension Liability The present value 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 provision affects both current and future periods. At 31st March 2026 the scheme is in surplus by £4,520,000 and in accordance with accounting standards, no asset or liability has been recognised in these accounts.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 31 March | 31 March
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Library & leisure services | 10,596,398 | 5,174,544
|  | 10,596,398 | 5,174,544
| All turnover arose within the United Kingdom.
Page 17
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 31 March | 31 March
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Other operating lease rentals | 384 | -
6. | Auditors' remuneration
| During the period, the Company obtained the following services from the Company's auditors:
|  |  |  |  | 31 March | 31 March
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the Company's financial statements | 14,540 | 14,600
| The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
Page 18
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
7. | Employees
| Staff costs were as follows:
|  |  |  |  | 31 March | 31 March
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Wages and salaries | 5,629,871 | 2,467,507
| Social security costs | 630,387 | 167,250
| Cost of defined contribution scheme | 681,631 | 285,534
|  | 6,941,889 | 2,920,291
| The average monthly number of employees, including the directors, during the period was as follows:
|  |  | 31 March | 31 March
|  |  | 2026 | 2025
|  |  | No. | No.
|  | Management | 4 | 3
|  | Administration | 14 | 13
|  | Services | 371 | 357
|  |  | 389 | 373
8. | Interest receivable
|  |  |  |  | 31 March | 31 March
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Other interest receivable | 634 | -
|  | 634 | -
Page 19
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
9. | Other finance costs
|  |  |  |  | 31 March | 31 March
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Interest income on pension scheme assets | 985,000 | 369,000
| Net interest on net defined benefit liability | (694,000) | (303,000)
|  | 291,000 | 66,000
10. | Taxation
|  |  |  |  | 31 March | 31 March
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 22,750 | 41,708
|  | 22,750 | 41,708
| Total current tax | 22,750 | 41,708
| Deferred tax |  |
| Total deferred tax | - | -
|  | 22,750 | 41,708
Page 20
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026 10.Taxation (continued)
| Factors affecting tax charge for the period
| The tax assessed for the period is the same as (2025 - the same as) the standard rate of corporation tax in the UK of 25% (2025 - 25%) as set out below:
|  |  |  |  | 31 March | 31 March
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 407,000 | 227,991
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2025 - 25%) | 74,501 | 56,998
| Effects of: |  |
| Defined benefit pension net notional costs | (51,751) | (15,290)
| Total tax charge for the period | 22,750 | 41,708
| Factors that may affect future tax charges
There were no factors that may affect future tax charges.
11. | Stocks
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Office supplies and goods for resale | 75,538 | 78,906
|  | 75,538 | 78,906
Page 21
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
12. | Debtors
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Trade debtors | 280,051 | 360,000
| Amounts owed by group undertakings | 1,069,848 | 1,990,616
| Other debtors | 64,451 | 72,481
|  | 1,414,350 | 2,423,097
13. | Cash and cash equivalents
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Cash at bank and in hand | 480,880 | -
| Less: bank overdrafts | - | (31,398)
|  | 480,880 | (31,398)
14. | Creditors: Amounts falling due within one year
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Bank overdrafts | - | 31,398
| Trade creditors | 174,177 | 173,132
| Amounts owed to group undertakings | 876,129 | 1,696,779
| Corporation tax | 22,750 | 41,708
| Other taxation and social security | 403,334 | 253,565
| Other creditors | 292,003 | 180,296
|  | 1,768,393 | 2,376,878
15. | Share capital
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 1 (2025 - 1) Ordinary share of £1 | 1 | 1
Page 22
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
16. | Reserves
Profit and loss account The profit and loss reserve represents accumulated profits after tax, net of any dividends paid.
17. | Pension commitments
The Company operates a Defined benefit pension scheme. On 2 October 2024, the scheme surplus of £3,215,000 was transferred into the company. A pension asset ceiling adjustment is applied to this surplus to reduce this to £Nil. The basis of this adjustment is that the directors consider there is currently no evidence that the pension asset is recoverable. Details of the movements during the year are shown below. The last valuation for Company accounting purposes was carried out with an accounting date as at 31 March 2025.
| Reconciliation of present value of plan liabilities:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Reconciliation of present value of plan liabilities |  |
| At the beginning of the year | 11,835,000 | -
| Brought forward unrecognised surplus | 3,215,000 | -
| Transferred in on incorporation | - | 13,585,000
| Current service cost | 324,000 | 150,000
| Interest cost | 694,000 | 303,000
| Actuarial gains/losses | (24,000) | (2,037,000)
| Contributions | 164,000 | 70,000
| Benefits paid | (379,000) | (236,000)
| Derecognition of surplus | - | 3,215,000
| At the end of the year | 15,829,000 | 15,050,000
Page 23
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026 17.Pension commitments (continued)
| Reconciliation of present value of plan assets:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| At the beginning of the year | 16,625,000 | -
| Brought forward surplus unrecognised | (1,575,000) | -
| Transferred in on incorporation | - | 16,800,000
| Interest income | 985,000 | 378,000
| Actuarial gains/losses | (601,000) | (526,000)
| Contributions | 164,000 | 70,000
| Benefits paid | (379,000) | (236,000)
| Administration expenses | (21,000) | (9,000)
| Employer contributions | 361,000 | 148,000
| Derecognition of surplus | 270,000 | (1,575,000)
| At the end of the year | 15,829,000 | 15,050,000
| Composition of plan assets:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Equities | 2,759,000 | 2,543,000
| Bonds | 7,676,000 | 6,135,000
| Property | 548,000 | 715,000
| Cash/liquidity | 1,559,000 | 798,000
| Other | 4,592,000 | 6,434,000
| Total plan assets | 17,134,000 | 16,625,000
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Fair value of plan assets | 15,829,000 | 15,050,000
| Present value of plan liabilities | (15,829,000) | (15,050,000)
| Net pension scheme liability | - | -
Page 24
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026 17.Pension commitments (continued)
| The amounts recognised in profit or loss are as follows:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Current service cost | (345,000) | (150,000)
| Interest on obligation | (694,000) | (303,000)
| Interest income on plan assets | 985,000 | 369,000
| Total | (54,000) | (84,000)
| The cumulative amount of actuarial gains and losses recognised in the Statement of comprehensive income (loss) was £(577,000) (2025 - £1,511,000). The gain is offset by a pension asset ceiling adjustment of £553,000.
| The Company expects to contribute £206,000 to its Defined benefit pension scheme in 2027.
| Principal actuarial assumptions at the reporting date (expressed as weighted averages):
|  | 2026 | 2025
|  | % | %
| Discount rate | 6.4 | 5.9
| Future salary increases | 4.15 | 3.85
| Future pension increases | 3 | 2.7
| Inflation assumption | 2.9 | 2.6
| Mortality rates |  |
| - for a male aged 65 now | 21 | 21.1
| - at 65 for a male aged 45 now | 22.1 | 22.4
| - for a female aged 65 now | 23.6 | 23.6
| - at 65 for a female member aged 45 now | 25.2 | 25.4
Page 25
FLINTSHIRE LIBRARIES AND LEISURE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2026
18. | Commitments under operating leases
| At 31 March 2026 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2026 | 2025
|  |  |  |  | £ | £
| Not later than 1 year | 1,428 | 1,428
| Later than 1 year and not later than 5 years | 3,927 | 5,712
|  | 5,355 | 7,140
19. | Related party transactions
| Included within trade debtors are amounts due from Flintshire County Council of £118,627
20. | Controlling party
Flintshire Libraries and Leisure Limited is a wholly owned subsidiary of FCC Holdco Limited. The ultimate controlling party is Flintshire County Council, County Hall, Raikes Lane, Mold, CH7 6NA
Page 26