Company registration number 12888724 (England and Wales)
LEISURESK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
LEISURESK LIMITED
COMPANY INFORMATION
Directors
Mr D P Monkhouse
Mrs N C McCoy-Brown
Mr J Denniston
(Appointed 12 July 2023)
Ms C D Morgan
(Appointed 12 July 2023)
Ms D A Roberts
(Appointed 1 December 2023)
Company number
12888724
Registered office
Council Offices
The Picture House
St. Catherines Road
Grantham
Lincs
NG31 6TT
Senior Statutory Auditor
Theo Banos BA FCA
Auditor
Duncan & Toplis Audit Limited Statutory Auditor
3 Castlegate
Grantham
Lincolnshire
NG31 6SF
LEISURESK LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
LEISURESK LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
87,087
6,517
Current assets
Stocks
17,691
821
Debtors
5
90,887
121,834
Cash at bank and in hand
195,719
37,888
304,297
160,543
Creditors: amounts falling due within one year
6
(534,370)
(216,250)
Net current liabilities
(230,073)
(55,707)
Total assets less current liabilities
(142,986)
(49,190)
Creditors: amounts falling due after more than one year
7
(102,755)
Net liabilities
(245,741)
(49,190)
Reserves
Income and expenditure account
(245,741)
(49,190)
Members' funds
(245,741)
(49,190)
The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements in accordance with Section 444 of the Companies Act 2006.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 22 December 2023 and are signed on its behalf by:
Director
Mrs N C McCoy-Brown
Company Registration No. 12888724
LEISURESK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
LeisureSK Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Council Offices, The Picture House, St. Catherines Road, Grantham, Lincs, NG31 6TT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
1.2
Going concern
The company incurred a deficit of £196,551 during the year to 31 March 2023 and at the year end had net liabilities of £245,741. The company is dependent on funding and financial support from its parent, South Kesteven District Council. The financial statements have been prepared on the going concern basis, which assumes that the company will continue in operational existence for the foreseeable future. The company has a leisure operating and maintenance contract with South Kesteven District Council to provide leisure centre services to 31 March 2024 with an option to extend to 31 December 2025. The directors believe that the going concern basis is appropriate because the company intends to pursue the option to extend the contract to 31 December 2025.true
1.3
Income and expenditure
Income and expenses are included in the financial statements as they become receivable or due, and is shown net of VAT and other sales related taxes. Fees and charges for use of the leisure centre are recognised on a visit by visit basis. Membership fees received are recognised over the period for which the membership relates.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% straight line
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 credited or charged to surplus or deficit.
1.5
Impairment of fixed assets
At each reporting period end date, the company 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
LEISURESK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and 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.
1.8
Financial instruments
The company 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 company's balance sheet 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 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.
Classification of 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 deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 business 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.
LEISURESK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.9
Taxation
The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.13
The company has taken advantage of exemption, under the terms of "Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose related party transactions with wholly owned subsidiaries within the group. The company is a subsidiary of South Kesteven District Council (SKDC). Consolidated financial statements of SKDC can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
160
159
3
Directors' remuneration
2023
2022
£
£
Remuneration paid to non-executive director
15,000
15,000
LEISURESK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022
8,254
Additions
102,773
At 31 March 2023
111,027
Depreciation and impairment
At 1 April 2022
1,737
Depreciation charged in the year
22,203
At 31 March 2023
23,940
Carrying amount
At 31 March 2023
87,087
At 31 March 2022
6,517
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,191
33,560
Prepayments and sundry debtors
88,696
88,274
90,887
121,834
6
Creditors: amounts falling due within one year
2023
2022
£
£
SKDC loan
27,396
Trade creditors
71,654
17,243
Taxation and Social security
26,413
32,056
Accruals and deferred income
408,907
166,951
534,370
216,250
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
SKDC loan
102,755
LEISURESK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
8
Members' liability
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Statutory Auditor Duncan & Toplis Audit Limited
10
Parent company
LeisureSK Limited is under the full control of South Kesteven District Council.