GREENWICH LEISURE LIMITED REPORT OF THE COMMITTEE OF MANAGEMENT AND SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015

Registered company number: IP27793R (England and Wales)

Registered charity number: XR43398

CONTENTSReport of the Committee of Management 4 - 29

Independent Auditor’s statement to the members of GLL 30

Summary Financial Statements

GLL Society Alone:

Balance Sheet 32

Statement Of Financial Activities 33

(Incorporating The Income & Expenditure Statement)

GLL Consolidated Group Accounts:

Balance Sheet 34

Cash Flow Statement 34

Statement Of Financial Activities 35

(Incorporating The Income & Expenditure Statement)

3

PARTNERSHIPS

1-2227

24

25 28

29

26

23

303132

33

34

35

37

36

38

39

40

41

Northern Ireland

37

Within London

1-21

England and Wales

22-36

1. Barking and Dagenham Leisure

2. Barnet Leisure

3. Bexley Leisure

4. Camden Leisure

5. Crystal Palace Leisure

6. Ealing Leisure

7. Greenwich Leisure, Libraries and Childrens services

8. Hackney Leisure

9. Hammersmith and Fulham Leisure

10. Hillingdon Leisure

11. Islington Leisure

12. Kensington and Chelsea Leisure

13. Lambeth Leisure

14. Merton Leisure

15. Queen Elizabeth Olympic Park Leisure

16. Romford Leisure

17. Southwark Leisure

18. Tower Hamlets Leisure

19. Waltham Forest Leisure

20. Wandsworth Libraries

21. Westminster Leisure

22. Cambridge Leisure

23. Chiltern Leisure

24. Epsom and Ewell Leisure

25. Manchester Leisure

26. Reading Leisure

27. Reigate and Banstead Leisure

28. Rugby Leisure

29. South Bucks Leisure

30. South Oxfordshire Leisure

31. Swindon Leisure

32. Vale of White Horse Leisure

33. West Oxfordshire Leisure

34. York Council Leisure

35. Carlisle & Allerdale Leisure

36. Parc Prison Libraries

37. Belfast Leisure

Subsidiaries

40-41

40. Tone

41. NCL

4

SECTION 1: REPORT OF THE COMMITTEE OF MANAGEMENTThe Committee of Management present their report with the consolidated inancial statements of the

Society and its subsidiaries for the year ended 31 December 2015. The Committee of Management

have adopted the provisions of the Statement of Recommended Practice (SORP) (FRS102)

‘Accounting and Reporting by Charities’ effective from 1 August 2014.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number: IP27793R (England and Wales)

Registered Charity number: XR43398

Registered ofice Middlegate House

The Royal Arsenal

London

SE18 6SX

Committee of Management

J M Sesnan

S Ward Resigned & re-appointed on 23rd June 2015

G Kirk

S Wright

J Rham Resigned & re-appointed on 23rd June 2015

A Ritchie

M Perren

L Smith Resigned & re-appointed on 23rd June 2015

E Northworthy

E Anderson

C Hebblewhite

J Smith

L Bird

P Brooks

A Bindon Resigned & re-appointed on 23rd June 2015

B Brown Resigned & re-appointed on 23rd June 2015

R Durrant Resigned & re-appointed on 23rd June 2015

Secretary

P Donnay

Bankers

Coop Bank Lloyds Bank

14 Hythe Street Faryners House

Dartford 25 Monument Street

DA1 1BD London EC3R 8BQ

Auditors

Clair Rayner FCA DChA (Senior Statutory Auditor)

McCabe Ford Williams

Statutory Auditors and Chartered Accountants

Bank Chambers, 1 Central Avenue, SITTINGBOURNE ME10 4AE

5

STRUCTURE, GOVERNANCE AND MANAGEMENTGLL is an Exempt Charity and a Registered Society under the Co-operative and Community Beneit

Societies Act 2014. The Society operates for the beneit of the wider communities we serve and does not

distribute proit. Any surplus is applied solely to a general reserve for the continuation and development

of the Society.

GLL was established in 1993 with a portfolio of seven leisure centres in one Partnership. In 2015 GLL

directly managed 230 facilities including leisure centres, play centres and libraries in partnership with 40

local councils and other organisations.

During the year, “Carlisle Leisure Limited” (CLL) merged into GLL via an IPS transfer of engagement.

GLL also acquired “North Country Leisure Limited” and “Tone Leisure Group Limited” as wholly owned

subsidiaries. It is intended that these subsidiaries will merge fully into GLL during 2016.

Including wholly owned subsidiaries, the GLL Group managed 255 facilities in partnership with 47 local

councils and other organisations.

The income turnover of the Society alone in 2015 was £215m whilst the turnover of the GLL Group in

2015 was £225m.

GLL is widely acknowledged to be the UK’s leading charitable social enterprise delivering leisure, health,

cultural and community services.

GLL is governed by a Board of Trustees appointed by the annual general meeting. Our governing

document is our rules, irst registered in 1993, and most recently revised and re-registered with the

Financial Conduct Authority on the 17th February 2010.

The GLL Board of Trustees has representation from a number of stakeholders including Customers, Local

Authority members, Independent skilled professionals and signiicantly, the Workforce. This stakeholder

mix has helped create empowerment, enthusiasm and ownership at all levels of the organisation.

The governance structure reporting to the Board includes the:

• Executive Sub Committee for urgent, investment and minor decisions.

• Audit Sub Committee responsible for managing GLL’s risk register

• Remuneration Sub Committee responsible for the employment and terms and conditions of the

executive directors and the general pay and remuneration terms of all employees (No members of staff

can sit on this sub committee)

The Board of Trustees reviews and sets the Strategy and Objectives annually in the context of the ive

year corporate plan. It meets quarterly to review progress and consider additional strategy and policy

decisions.

GLL nominates 2 GLL representatives to sit on the Board of Trustees of its subsidiaries.

GLL operates a risk register to record any potential risk the society may face. The risk register is a working

document that is updated on an ongoing basis with mitigating strategies as necessary. The register is

reviewed by the Audit Sub Committee every quarter.

Day to day management and delivery of GLL’s annual corporate plan is delegated to the Managing

Director and the Executive Director team. The Managing Director reports to the Board of Trustees and is

a full ex oficio member of the Board.

Main Board of Trustees

Executive Sub Committee

Audit Sub CommitteeRemuneration Sub

Committee (external independent members only)

6

Recruitment and appointment of new Board Members

In exercising its powers to nominate, appoint, reappoint, elect, re-elect, approve and dismiss Members,

the Society Members seek to ensure that the Board is representative of the local community and also

comprises persons with a broad range of skills who are likely to contribute to the Society’s success.

Induction and training of new Board Members

Board Members follow an induction and familiarisation programme as required, and attend development

sessions to discuss improvement proposals, which also feature externally facilitated sessions with leisure

industry representatives and health professionals.

Staff Empowerment

All eligible staff in GLL are encouraged to join the Society as voting members. This leads to a high

level of commitment, empowerment and motivation resulting in an improved quality of service to the

community. GLL also enjoys remarkably low absence levels.

Remuneration of Key Management PersonnelThe Remuneration Sub Committee (RSC) made up entirely of independent Trustees is responsible

for determining the pay of key management personnel and for setting the annual pay awards for all

employees and workers.

In summary:

- the Remuneration Sub Committee takes responsibility (i) for determining both the policy

and structure for the executive directors’ pay and beneits package, and their pay awards, and

(ii) for approving the directors’ recommendations on the pay awards for other employees and

workers;

- the Director Team is responsible for the pay and beneits packages of all other employees

and workers, and for making recommendations to the Remuneration Sub Committee on the

annual pay award for all employees and workers other than themselves.

The full Board of Trustees remains responsible for the appointment of the Managing Director and,

with him or her, for the appointment of other directors. It is also responsible for the termination of the

employment of the MD and other directors, although any termination payment is to be determined by

the Remuneration Sub Committee.

In conducting its role, the RSC periodically reviews the remuneration of Directors in line with the

development of the Society. Past reviews have included the commissioning of independent surveys to

ensure appropriate benchmarking of pay awards. The last review was conducted in 2013.

OBJECTIVES AND ACTIVITIESThe objects of the Society are:

(a) to provide or assist in the provision of facilities and services for the public beneit for recreational,

sporting or other leisure time occupation in the interests of social welfare, healthy living and

education, such facilities being provided to the public at large save that special facilities may be

provided for persons who by reason of their youth, age, inirmity or disability, poverty or social or

economic circumstances may have need of special facilities and services, and /or

(b) to promote community participation in healthy living, and/or

(c) to advance the education of the public in the beneits of healthy lifestyles, and /or

(d) to advance the arts, culture and / or heritage, and / or

(e) to provide support services relating to the above, and / or

(f) to provide consultancy and advise to public, sporting and charitable organisations, and / or

(g) such other charitable purposes beneicial to the community consistent with the objects above as the

Trustees shall in their absolute discretion determine.

In 2015, GLL and its wholly owned subsidiaries worked in direct Partnership with the following Councils

and organisations delivering some of their public services including leisure centres, libraries, play centres

and children centres:

7

This partnership approach with the various councils and organisations has been a key plank of our

success. However, each relationship is underpinned by a formal contract and each contract is subject

to termination dates and possible tendering for renewal.

In addition, GLL worked in partnership with fellow social enterprises:

Freedom Leisure Limited in delivering the services of 6 public leisure centres in the South and South

East for the following Councils:

• Crawley Borough Council

• Guildford Borough Council

• Woking Borough Council

• Allerdale Borough Council

• Bath and North East Somerset Council

• Belfast City Council

• Black Prince Trust

• Bridgend Borough Council

• Cambridge City Council

• Carlisle City Council

• Chiltern District Council

• City of Westminster

• City of York

• Copeland Borough Council

• Eden District Council

• Epsom and Ewell Borough Council

• Jubilee Halls Trust

• Greater London Assembly

• Henley Town Council

• London Legacy Development Corporation

• London Borough of Barnet

• London Borough of Camden

• London Borough of Ealing

• London Borough of Lambeth

• London Borough of Hackney

• London Borough of Hammersmith & Fulham

• London Borough of Hillingdon

• London Borough of Islington

• London Borough of Merton

• London Borough of Tower Hamlets

• London Borough of Waltham Forest

• London Borough of Wandsworth

• London Playing Fields Foundation

• Manchester City Council

• Newcastle City Council

• North Somerset Council

• Prestwood Sport and Leisure Association

• Reading Borough Council

• Reigate and Bansted Borough Council

• Royal Borough of Greenwich

• Royal Borough of Kensington & Chelsea

• Rugby Borough Council

• South Bucks District Council

• South Hams Council

• South Lakeland District Council

• South Oxfordshire District Council

• Swindon Borough Council

• Taunton Deane Borough Council

• Vale of White Horse District Council

• West Oxfordshire District Council

8

Halo Leisure Limited in delivering services in 8 leisure centres for Bridgend County Borough Council.

Outside of partnership arrangements, GLL holds and manages a number of “stand alone” facilities

including:

• Charlton Lido under a 97 year lease (redeveloped over 2013/14)

• 7 stand alone affordable health and itness facilities under long term leases with more planned for 2016.

• Barking Sporthouse under long term lease

CORE PURPOSEGLL’s overarching aim is to deliver sustainable and affordable provision of facilities and services for the

public beneit for recreational, sporting, cultural and other leisure time occupation in the interest of social

welfare, healthy living and education.

GLL has adopted Four Pillars to frame our vision and mission:

1. Service Excellence à “BETTER SERVICE”

2. Strong Business à “BETTER BUSINESS”

3. Motivated, Engaged and Well Trained Staff à “BETTER PEOPLE”

4. Social Impact à “BETTER COMMUNITIES”

We seek to drive our business across all four of these objectives using a balanced scorecard to track our

progress and ensuring our Charitable Objectives are continuously met.

Service Excellence à “BETTER SERVICE”

GLL aims to:

- Operate facilities that are accessible by all sections of the community save that special facilities

may be provided for persons who by reason of their youth, age, inirmity or disability, poverty or

social or economic circumstances may have need of special facilities and services

- Provide a balanced programme and pricing of activities for sport, physical activities and cultural

services.

- Deliver services and facilities that are consistently rated as excellent as well as utilise quality

benchmarks such as Quest and the Customer Service Excellence Standard

Strong Business à “BETTER BUSINESS”

GLL aims to:

- Achieve stability and growth in our existing operations whilst developing new products and

markets including our online portals

- Continue to improve eficiencies and effectiveness, making sure our available resources are

maximised and put to best use

- Develop new business opportunities and partnerships where they can bring added value

- Continue to build on our existing partnerships for the long term

- Continue to invest into the leisure centre and Library buildings

- Build our asset portfolio

9

Motivated, Engaged and Well Trained Staff à “BETTER PEOPLE”

GLL aims to:

- Train our staff well, pay our staff well and ensure they are engaged in the long term future and

success of our business and our mission

- Work with employment agencies and Sector Skills Councils to provide long term career

opportunities for local people within sport, leisure and cultural services.

- Develop our staff through continuous professional development through our own industry

accredited training college (the London Leisure College) and a suite of career-long academies

Social Impact à “BETTER COMMUNITIES”

GLL aims to:

- Work with volunteers, clubs, national governing bodies, health & social service organisations to

provide improved lifestyles, health and education for local communities

- Deliver across the environmental and sustainability agenda

- Promote the values that Social Enterprise can bring

- Promote the Olympic and Paralympic Games legacy agendas and ideals and to maximise the

associated beneits

- Acknowledge and reward young individuals with sporting talent through the GLL Sport

Foundation programme and associated partner schemes

- As a charitable organisation, GLL reinvests ALL surpluses into delivering our social aims

Wider Partnerships

GLL works closely with or seeks to have a relationship with many other partners in addition to our local

authority partners, these include:

• The London Mayors ofice, Greater London Assembly and the London Legacy Development Corporation

(LLDC)

• Sports and Recreation Trusts Association (Sporta)

• The Sector Skills Council, SkillsActive and the National Skills Academy

• Sport England

• Greenwich, Newham and Hackney Community Colleges

• Social Enterprise Coalition (SE UK)

• UK Active (FIA) and CIMPSA

• British Swimming / ASA, British Gymnastics, GB Basketball, British Basketball League, England

Basketball, GB Handball, England Netball, Badminton England, Volleyball England, British Fencing,

Squash England and other UK Sports Governing Bodies

We aim to support local and central government initiatives that promote the development of services for

the beneit of the wider community particularly in the areas of sport, health, culture and physical activity.

These aims and objectives are delivered through a range of strategies that are listed in GLL’s annual and 5

year Corporate Plans. These plans are managed by the Executive Director team and reviewed by the Board.

10

ACHIEVEMENTS AND PERFORMANCEIn 2015, GLL continued the previous year’s momentum with a wide range of achievements and improved

performance.

With continued growth, mergers and the addition of new partnerships to the GLL family, the following

were the key highlights for the year:

• We started our operating partnership with Belfast City Council, which includes 14 leisure centres and an

investment strategy worth £105m across the city

• North Country Leisure became a wholly owned subsidiary of GLL, delivering services in Newcastle and

Cumbria

• Our new Extreme Sports Centre at the Sporthouse in Barking and Dagenham was launched

• Tone Leisure, based in Taunton, became a wholly owned subsidiary of GLL

• We began operating 6 leisure facilities in the City of Bath on behalf of Bath & North East Somerset

Council

• We launched the new £20m+ Greenwich Centre in partnership with the Royal Borough of Greenwich

• We launched the new £20m+ Hough End Leisure Centre in partnership with Manchester City Council

• We were named as the key sport and physical activity partner for Sport Relief 2016

• Our Health team were awarded two new contracts for the delivery of a Physical Activity Referral

Scheme and Young People Weight Management Programme

• We began operating a new partnership with Newcastle City Council, which included 4 leisure centres

• We launched Better Gym East Village on the Queen Elizabeth Olympic Park

• We were awarded preferred bidder status to operate 15 Libraries and support 30 Community Libraries

on behalf of Lincolnshire County Council

In summary, 2015 has been another successful year that has seen GLL continue to grow and deliver the

key requirements set out under our Corporate Plan Four Pillars.

11

FINANCIAL REVIEWThe results for the year 2015 (January 1st - December 31st) are set out within these consolidated

inancial statements.

Overall GLL Society overachieved on its inancial targets. Turnover excluding the newly acquired

subsidiaries and excluding donations attributed from these grew by 31% in 2015 compared with 2014

to £215m. Including subsidiaries but excluding donations disclosures from the acquisitions, the GLL

consolidated turnover grew to £225m.

The net trading surplus from operating activities of the Society alone was £4.4 million for the year

representing a 2% margin (excludes donations disclosures relating to acquisitions and excludes

disclosures relating to pensions actuarial adjustments). On the same basis and including the subsidiaries

trading (part year), the net trading surplus was £3.5m (NCL declared a loss of £1.2m in the year whilst the

Tone Group declared a surplus of £277k).

Other key performance indicators (excluding NCL and Tone Subsidiaries):

- Total staff cost to income was 52% (2008 – 55.7%; 2009 – 52.8%; 2010 – 53.5%; 2011 –

52.1%; 2012 - 52.1%; 2013 – 51.5%; 2014 – 50.6%).

- The Balance Sheet shows a positive liquidity ratio and low gearing.

Reserves Policy and Social funds:The Board has considered the risks and opportunities and reviewed the level of cash reserves which it

deems prudent to maintain. The funds held are considered adequate for the coming year.

A strategy to increase the Company’s cash reserves and asset portfolio over the coming years has been

adopted by the Board to support investment plans and protect the organisation against future risks. GLL

will evaluate all opportunities as they arise with an aim to build our asset portfolio over time.

At 31 December 2015, the Society (parent company) had accumulated cash balance and working capital

of £21.8m.

The Society is in a relatively favourable cash low position because we receive some of our income in

advance of expenditure.

The Committee of Management recognise the need for a level of inancial reserves that will:

1. Allow for planned investment and other similar purposes;

2. Allow for cyclical maintenance expenditure which the Society has an obligation to incur under

various property leases; and

3. Shield the Society from the possibility of adverse unforeseen circumstances.

These unforeseen circumstances include a number of speciic events that have been identiied in the

Society’s Risk Register.

Social Bond IssueAs reported in the previous year’s account, GLL with sustainable bank Triodos successfully raised £5

million of capital funds through a social bond issue in 2013.

The ive-year bond pays 5% gross ixed interest per year. Investors were split evenly between retail

(54%) and institutional investors (46%) with support from the City of London Corporation Social

Investment Fund, Rathbone Ethical Bond Fund and the Bank Workers Charity. The minimum investment

was £2,000 or £200 for GLL employees.

As part of the bond issue and to provide comfort to investors, 2 inancial covenants were put in place.

We are pleased to report against these below:

12

Net Asset Covenant

The Bonds incorporates a Net Asset Covenant which is designed to ensure that the Bond liability is

covered at least two times by the unrestricted net asset value of the Society. The rationale for the Net

Asset Covenant is to provide comfort to Bondholders by ensuring that GLL retains suficient ability to

liquidate or re-inance its assets to repay the Bonds at any time if necessary.

As at the 31st December, the bond liability was covered 3.1 times by the unrestricted net asset value of

the Society. This exceeds the covenant target.

Bond Interest Cover Covenant

The Bonds also include a Bond Interest Cover Covenant which is designed to ensure that the annual Bond

interest payable is covered at least ive times by available surpluses.

The surplus declared for 2015 covers the annual bond interest by more than 17 times and thus

comfortably exceeds the covenant target.

Pensions Disclosures

The FRS102 section 28 pension liability disclosed on the balance sheet jumped from £11m to £20.45m

in 2014 and reduced slightly to £19.8m at the year end (excluding subsidiaries). This movement is mainly

due to the change in discount rate. These pension disclosures relate to Deined Beneit schemes GLL is a

member of.

Pensions valuation and disclosures is a dificult and sometimes controversial topic but it is none the less

an important area that needs to be explained. It is important to appreciate how the LGPS and other DB

pension schemes work and how ongoing contributions requirements are calculated to ensure the scheme

remain or become fully funded in the long term.

FRS102 section 28 is an accounting standard in relation to the calculation and disclosure of company

pension scheme liabilities. It requires that employers make full provision for all pension scheme liabilities

on their balance sheet – both in respect of any outstanding employer contributions (there aren’t any)

and (more signiicantly) any attributable share of the pension scheme actuarial deicit in respect of

deined beneit schemes.

The FRS102 pensions liability calculation used for accounting purposes are based largely on the actuarial

Ongoing Basis calculations (such as inlation, life expectancy etc) but crucially differ in one key respect

– that of the discount factor used to arrive at net present value of any surplus or deficit. Whereas

the “Ongoing Basis” uses estimated actuarial investment returns based on past and expected future

performance, the FRS102 calculation uses a return based speciically on AA rated Government gilts. In

recent years, the FRS102 calculation has resulted in a signiicantly lower discount factor than the Ongoing

Basis – and therefore much higher net present pension scheme deicits. It is therefore quite common for

an organisation like GLL to take on a new local authority contract and a fully funded pension scheme

liability under the Ongoing Basis only to ind that this gives rise to a signiicant FRS102 deicit (which

needs full provision in the accounts) due to the speciic FRS102 discount factor required to be used.

The FRS102 liability is therefore based on the latest tri-annual Ongoing Basis calculations but is re-

calculated each year for the purposes of the annual accounts by the scheme actuaries based on

prevailing discount factors. The FRS102 discount factor used dropped in 2014 by 0.9% from 2013

causing a signiicant increase in the deicit disclosures on the balance sheet for 2014. The discount rate

grew by approximately 0.2% from 2014 reducing the deicit slightly for 2015.

Future employer contributions are calculated at each tri-annual actuarial valuation. The actuaries

calculate the scheme surplus or deicit based on prevailing assumptions around returns, inlation, discount

factors, life expectancy etc and then calculate the employer contribution required to a) maintain and

provide for current

13

and future pensions and b) reduce any deicit over time. The employer contributions required are

communicated to the employers and remain in place until the next tri-annual valuation. For all LPGS, the

last tri-annual actuarial valuation was carried out in 2013/14 and new rates set for 3 years from April

2014.

The employer contribution rates are therefore established by the actuaries on the Ongoing Basis and

have no direct linkage to the FRS102 calculations or provisions. To put it another way, a change in the

FRS102 provision does not on its own impact the employer contribution.

A few key points to note:

• GLL is up to date with all required employer contributions in all of its schemes.

• The majority of GLL’s employees in DB schemes are members of one of the LGPS schemes under

admissions agreements – these are subject to tri-annual actuarial valuations which then establish the

actuarial surplus or deicit and the required ongoing employer contribution rates.

• With a number of these schemes, GLL beneits from indemnities from the local authority which means

GLL has no liability for any scheme deicit in the event of a termination of the contract which gave rise

to the original transfer of staff to GLL. Regardless of these indemnities and because GLL has the risk on

luctuating employer contributions (unless capped), the deicits still have to be disclosed on the balance

sheet in accordance with FRS102.

• When GLL secures new contracts, it always takes on a fully funded pension liability calculated under the

actuarial Ongoing Basis.

• FRS102 requires a different method of calculating a pension scheme deicit – based on AA rated bond

yields rather than actuarial forecast investment returns. Due to this, FRS102 gives rise to signiicantly

higher deicit calculations for accounting purposes – however it is important to understand that

FRS102 is not the recognised actuarial method to calculate the necessary contribution rate and almost

certainly overstates the actuarial liability in the accounts.

• GLL’s required employer contributions only change every three years based on the tri-annual actuarial

valuation on the Ongoing Basis. Changes to the annual FRS102 valuation do not impact GLL’s

employer contribution.

• Government bond yields (on which the FRS102 discount factor calculations are based) are at extremely

low levels – this gives rise to higher net present pension scheme deicits. It seems more likely that

discount factors will increase rather than decrease further in future – which should mean deicits are

more likely to shrink rather than increase.

• GLL does have joint and several liability under most LGPSs in which its employees are members –

although we believe that the major employer (i.e. the local authority) provides an indemnity to third

parties against the failure of other third party employers.

In order to illustrate the differences between the valuation methods, GLL and its subsidiaries

commissioned the actuaries to evaluate the position of the funds under both “FRS102” for the accounts

and under the “ongoing basis” method and assumptions for DB schemes. The differences are shown

below (where an ongoing basis valuation was not obtained, the FRS102 igure is included for total

comparison purposes):

14

PENSION FUND (£’000) FRS102 ONGOING BASIS DIFFERENCE

GLLLPFA (2,230) (713) 1,517

Royal County of Berkshire LGPS (789) (101) 688

London Borough of Barnet LGPS (133) 978 1,111

London Borough of Ealing LPGS (38) (29) 9

CITRUS Pension Plan (119) (223) (104)

London Borough of Camden LPGS (210) (101) 109

London Borough of Tower Hamlets LPGS (189) (127) 62

London Borough of Merton LGPS (519) (146) 373

Royal Borough of Greenwich LGPS (multiple agreements)

(13,791) (381) 13,410

Wiltshire LGPS 1 (Swindon) (282) (120) 162

Wiltshire LGPS 2 (Swindon) (1,216) (670) 546

Northamptonshire LGPS (Cambridge) (222) (173) 49

Total (19,738) (1,806) 17,932

TONEDevon (368) 712 1,080

Somerset (1,630) 823 2,453

Total (1,998) (1,535) 3,533

NCLCopeland (266) (266) 0

Newcastle 1 21 21 0

Newcastle 2 391 391 0

Total 146 146 0

GLL Group Total (21,590) (125) 21,465

As can be seen by the valuations in the table above, the difference is signiicant and material. It therefore

needs to be understood when evaluating GLL’s inancial position.

(Note – The balance sheet disclosure exclude the Newcastle Net asset position in these funds)

15

SOCIAL IMPACT AND PUBLIC BENEFITGLL is the UK’s largest leisure and cultural charitable social enterprise. We operate 230 facilities with a

diverse workforce of 10,000+. Our inherent social ethos, linked to our charitable objectives, ensures that

accessibility, affordability and equality are at the heart of our community provision.

In 2015, GLL welcomed in excess of 40 million visits to our facilities across our wide range of activities.

GLL’s Primary ActivityIncreasing participation and modernising provision in sport, leisure and cultural activities are identiied as

the golden threads across all of GLL’s divisions and services. GLL’s ambition is for more people to engage

with its services, more often. Increasing participation and improving services achieve outcomes which

support all of GLL’s four core Operating Pillars::

• Better Communities: Improving access to service, achieving social impact goals, reducing inequalities,

promoting empowerment, integration, cohesion, health and wellbeing.

• Better Business: Income generation, achieving client targets, increasing investment in services and

facilities.

• Better People: Creating new opportunities for employment, continuous professional development and

job satisfaction. Encouraging staff to give back to their communities.

• Better Service: Engaging new users, retaining existing users; providing better value and increasing

choice through varied programmes.

Social Objectives

The following statements encapsulate the organisation’s purpose and social aspirations.

• We exist to make community services, facilities and spaces better for everyone. That means providing

access to quality community leisure, culture, children’s services, sport and itness facilities.

• We’re a charitable social enterprise, which means we work for the beneit of the public, the

communities we work in, the environment, our staff and our partners

• We promote healthy and active lifestyles, giving communities access to facilities that help improve

their health and happiness through participation in activities. It could be gyms, libraries, playgrounds,

children’s centres or world-class venues such as the London Aquatic Centre and Copper Box Arena.

• As a charitable social enterprise, we invest in our communities. And it’s not just money: we also invest

time and effort in encouraging everyone to take advantage of our services.

GLL continues to strive to be the best at delivering social impact across all our partnerships. This social delivery

is a key ethos of the organisation and a relection of our commitment to the communities we serve.

Achieving Better Communities

Through the promotion, provision and delivery of quality community services, GLL will empower the local

communities in which it operates to achieve a better quality of life:

• Improve health and wellbeing by increasing participation in positive and physical activities and sport.

• Reduce inequalities and improve access by investing in services and facilities

• Nurture achievements and performance pathways through high quality services

• Promote learning and development within our services and in our staff

Outlined in this section of the business review are highlights of the programmes delivered in 2015 as well

as some key performance indicators.

In addition to the delivery of community programmes through the local staff teams of each facility we

operate, GLL has a dedicated team of Community Sport Managers, Outreach workers, Sport, Health,

Library and Children’s Centre specialists whose purpose is to reach out into the communities we serve and

deliver targeted speciic programmes.

16

Highlights for 2015 include:

Social Impact and Public Benefit – Community Engagement & Events

We continued to develop and grow a range of attractive and high quality leisure centre based sports

lessons & courses including Swimming, Athletics, Gymnastics, Basketball, Football and Racquets with over

90,000 participants receiving high quality coaching from beginner, improver and performance level every

week.

GLL is committed to actively promote and deliver Water Safety Lessons to all pupils who access our school

swimming programme. During our Better Water Safety Week we delivered Water Safety lessons to over

60,000 pupils in primary and secondary schools.

GLL provides extensive support to encourage increased use by nationally under-represented groups. This

includes promoting sport and physical activity to women & girls, disabled people and older generations.

Activity by GLL on 2015 has included, 11,000 “For the Girls” sessions, 7,000 Disability Sport Sessions and

Better Club Hubs in all GLL Regions for people aged 60+.

GLL supported a wide range of events and open days for library services in 2015. These included

National Libraries Day, World Book Night, Summer Reading Challenge, Book of the Month Challenge,

City Read London. Library usage and book issues at GLL managed libraries have both increased since we

commenced managing Library Services in 2012.

GLL hosted and supported over 450 community events throughout 2015. Examples include:

• ‘GLL Inspired’ events held in every GLL Region, to encourage the next generation of young athletes

and encourage active lifestyles for young people

• Sport & Activity events held to support International Women’s Day across GLL centres

• Delivering activities at partner events such as the Cambridge Big Weekend which attracted over 40,000

people and the Festival on the Fields in Islington which attracted over 8,000 people

• Over 5,000 children enrolled on the Summer Reading Challenge

• Adult sessions held in the libraries to support Adult Learners Week, English for Speakers of Other

Languages and a number of Arts Council funded exhibitions and activities

• National Bookstart Week was celebrated at all libraries

• Participation in the Hay Festival and Creative Writing Workshops held in our HMP Prison service libraries

• In addition to community events our sport and community teams delivered 3,800 hours of outreach to

reach out to target groups to encourage increased physical activity

GLL worked with over 100 local partners to help engage with communities and break down initial barriers.

Partners include; County Sports Partnerships, Interactive, Local Authorities, Public Health, Mencap, Age UK

and Youth Organisations.

Examples of such schemes include:

PROJECT NAME PARTNERSHIP TARGET GROUP KEY PARTNERSDementia friendly

swimming

Manchester, Hackney &

Tower Hamlets

People with early onset

of dementia

ASA, Alzheimer's

society

17

Self-harm referral CarlisleYoung people with

mental health problems

SAFA (self harm

charity)

New life through sport Hackney

People who have

problems with

substance abuse

E. London Health

Foundation, UEL, LBH

‘Get Active’ Programme Waltham Forest Inactive 16-25 year olds London sport, LBWF

Activate – Mobile

Health Bus & Healthy

Schools Programme

Carlisle, Allerdale, Eden,

Copeland & South

Lakes

Inactive communities

Young people and

adults

Cumbrian Sport &

Physical Activity

Alliance

GLL Sport Foundation

During 2015, the GLL Sport Foundation continued to grow and is one of the Country’s largest

independent talent development schemes for young sports people. The GLL Sport Foundation has

extended its working partnership with SportsAid, Universities, Colleges and numerous National Governing

Bodies of Sport to ensure that our programme its with National Sport Development pathways for young

talented athletes.

The GLL Sport Foundation aims to support young people and sporting talent achieve their full potential

by reducing the inancial burden of training, competition and medical costs.

In 2015 1,720 talented young athletes beneitted from a £1m award pot through the GLL Sport

Foundation. The scheme remains a core part of our legacy programme for sport. Since London 2012, GLL

have supported 23% more young athletes with 22% increase in the inancial value of its support. After

helping 53 athletes develop to compete at London 2012, the GLL Sport Foundation has been supporting

a number of athletes who will go on to compete for Team GB at the Rio Olympic Games in 2016.

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Sport Relief & Swimathon

GLL played an active role in supporting major National Charity fundraising through sport. This includes

hosting a wide range of events in support of this year’s Sport Relief Games. The BBC kicked off the action

with a special night of Sport Relief TV presented live from the Copper Box Arena and the Aquatics Centre.

Negotiations in 2015 have already succeeded in securing a lead role for GLL as a National Sponsor for

Sport Relief 2016. This is a signiicant milestone for GLL as both a major contributor to this fund raising

cause and underlining GLL’s proile as a signiicant National operator.

GLL also played host Swimathon 2015 having the two largest participation venues in the UK; the London

Aquatics Centre and London Fields Lido. GLL have consistently been the largest and most successful host

for this National Event with many thousand of participants participating across 106 swimming pools.

GLL Community Foundation

GLL continues to be a pioneer in its sector and work to democratise the provision of sport and activity.

In 2015 it created a standardised community engagement mechanism which accesses new resources

(cash, volunteers and equipment/space) that allows people to realise their own local ‘active’ dreams. It

will create a new innovative model of increasing resource and capability in a community by empowering

residents and local organisations.

This model will be a catalyst in the leisure sector for increasing sport & physical activity in the community

and clearly deine and demonstrate GLL as a charitable social enterprise.

Its objectives are to:

• Generate stakeholder, customer and employee awareness of GLL social commitments and re-

investment in to its communities.

• Increase community participation and support local community’s needs in a way that differentiates

GLL from its competitors.

• Create an alternative source of funding for community focused/social impact projects.

• Develop a consistent and evaluated response to local demands and allow GLL to support projects that

add value and reinforce its core business.

• To provide an alternative and positive response by GLL to client and community demand for cash and

in-kind support for local initiatives.

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Social Impact and Public Benefit – EmploymentGLL provides employment for over 10,000 people. In 2015, we achieved the Investors in People Silver

award (previously bronze). Investors in People said: “Compared to many organisations we visit, GLL

applies its values and social enterprise principles to its workforce in a very genuine way. There is a deep

commitment to ‘growing our own’ managers. The workforce relects the local community that it serves

and there were many examples of people starting as frontline staff but through support and development

becoming supervisors and managers, either through GLL’s various schemes (e.g. the award-winning

Trainee Manager scheme and GTI) or through coaching”.

LocationWe aim to place employees in facilities near to where they live. Many of our facilities, especially within

Greater London, are in some of the most deprived areas in the UK. The latest Indices of Deprivation

Report from the Department for Communities and Local Government in 2010, lists seven of our London

locations as being within the top 10% of the UK’s most deprived areas: Hackney, Islington, Waltham

Forest, Tower Hamlets, Barking & Dagenham, Greenwich, Lambeth. Almost 70% of our staff live and

work in the same Borough. That % is higher (with the exception of Greenwich) in all of those deprived

areas. We believe that giving employment to those from deprived areas brings greater wealth and social

cohesion.

Local partnershipsOlympic Legacy is a key initiative for GLL and we operate two venues on the Queen Elizabeth Olympic

Park. Continuing our relationship with the LLDC (London Legacy Development Corporation), we are

looking at further initiatives to bring even more people from the surrounding areas into employment on

the Park. During 2015, GLL employed 269 people on the Park, 70 of which were new appointments. We

issue regular job updates to our partners from the Olympic Host Boroughs incl: Greenwich Local Labour

and Business Scheme (GLLaB); Tower Hamlets Local Labour Business Scheme; HVB Enterprise Centre (LB

Hackney’s business/labour scheme); Worknet (LB Waltham Forest’s business/labour scheme); London

Borough of Barking and Dagenham’s Skills and Employment department; London Legacy Development

Corporation.

Company-wide partnershipsWe recognise that different local communities often have speciic characteristics and issues. We work

closely with agencies/groups with local or specialist knowledge that provide direct access to those we are

trying to reach. Underpinning GLL’s entry-level recruitment strategy is our partnership with Jobcentre

Plus (JCP), the Northern Ireland Jobcentre and our membership of a Local Employment Partnership.

All of our entry-level vacancies are advertised across the JCP network and we work closely with their

regional representatives and account managers to ensure that they have a good understanding of our

organisation and our recruitment and training needs so that they can communicate these clearly to

potential applicants.

Socio-demographicsOur social ethos and charitable objectives ensure accessibility, equality and opportunity for all – and

as such we are an Equal Opportunities Employer with a commitment to bringing employment to those

who may otherwise be overlooked or not see a career as within their grasp. We aim for best practice and

accreditation where possible.

We also aim to offer long-term career development and progression by way of career paths for all our

current employees as well as our Trainee Management Graduate programme which fast-tracks talented

graduates to management positions. Our internal GTI (GLL Talent Initiative) scheme is available to all of

our non-senior staff who wish to progress their career. In 2015, nearly 50 GLL employees took part in our

GTI scheme with three gaining promotions following the scheme and the others working on development

plans to aid their progression.

20

Included in our wider recruitment remit are speciic groups that we reach out to: BME, Women, Disability/

Learning Dificulties, Graduates and NEETs.

BMEPolicy Exchange, the UK’s leading think tank, claimed the UK’s BME population in 2014 to be at 14%.

The ONS states unemployment amongst the BME community at 13.9% for those aged 16+. GLL has

bucked this trend and hires more people from BME backgrounds than is the ratio for the UK population

as a whole. We are continuing to reach out to speciic BME groups through speciic initiatives within

Partnerships with large BME populations. In London, 33% of GLL’s workforce is from a BME background,

with 24% of our total UK workforce coming from BME backgrounds.

GenderGLL has been seeking to redress the balance of a male-dominated leisure industry by making our

environment, recruitment attraction, behaviours and customer attraction more female-friendly. GLL’s

‘For the Girls’ campaign, coupled with Sport England’s ‘This Girl Can’ campaign are making the leisure

and sporting environment more accessible and less intimidating places for women and girls to both

exercise and work. Flexible working patterns and casual hours have been an effective and attractive offer

for mothers returning to work and we are continuing to see an increase in the number of females that

we hire (with only a slight dip at Supervisory level) across all levels of the business. Women now make up

almost 55% of our workforce and nearly 35% of our management-level positions are held by women.

21

Disability/Learning DifficultiesDisabled people are underrepresented in the workforce and leisure in general. We know that people with

disabilities are less likely to have formal qualiications and more likely to be unemployed. This issue has

been a focus of our Workforce Equality Strategy. We’ve been delivering targeted programmes alongside

partners with specialist knowledge and access to this group.

We work with Remploy (a leading provider of employment services to the disabled), to identify and

make suitable adjustments for disabled applicants and employees. In 2015, we engaged in a 9-month

‘Steps into Work’ programme providing job coaching and work experience for 6 students with learning

disabilities. They gain life skills, such as improved communication and the ability to use public transport

to get to work. They also develop the ‘soft skills’ that are so vital in the workplace, such as reliability,

punctuality and a better understanding of social norms and acceptable behaviour at work. Following the

programme, all students are guaranteed an interview with GLL.

We also work with an organisation called Aspire, who run the Instructability scheme for people with spinal

injuries. The project helps to get disabled people into the workplace and provides them with free itness-

industry training, leading to an internationally recognised CYQ Level 2 Gym Instructor qualiication.

As part of the Disability Agenda, GLL successfully achieved the Two Tick Accreditation. It recognises

employers who have taken action to meet ive commitments regarding the employment, retention,

training and career development of disabled employees and is known by people with disabilities that we

are positive about disabled people and will welcome their job applications. In 2015, we employed 214

people with disabilities.

Graduates

GLL have supported the employment of graduates for over 20 years with our graduate Trainee

Management scheme. We’ve recruited over 140 people via the TM scheme. It’s a fast-track into

management and offers two years of experience in core roles within GLL as well as offering training,

qualiications and a salary. In 2015, there were 29 TMs on the scheme; almost 40% of Trainee Managers

are now working in management positions for GLL fulilling our long-term working relationship aim.

NEETs

GLL is committed to offering employment opportunities into our entry-level positions to those who

struggle to ind employment due to a lack of work experience and/or qualiications. We offer two main

routes to employment:

GLL Apprentice SchemeGLL continued to deliver our well-established apprenticeship programmes for Lifeguards, Customer

Service and Fitness Instructors. The scheme worked with training partners and GLL’s London Leisure

College (LLC) to deliver parts of the course such as the Level 2 National Pool Lifeguard Qualiication.

Following a training period, apprentices combine 12 months of work alongside study – for which they are

paid a salary. Apprentices undertake vocational qualiications such as an NVQ Level 2 in Active Leisure,

Learning & Wellbeing, Level 2 Award in Employment Awareness in Active Leisure & Learning and Level 2

in Leisure Operations amongst others. In 2015, GLL ran ive apprenticeship scheme cohorts plus extra ad

hoc apprentice recruitment across the UK. 64 individuals participated in the scheme with a far larger

scheme planned for 2016. Typically following the 12-month scheme, 68% of participants successfully

complete the scheme and gain employment with GLL.

22

The GLL AcademyThe Academy, run with our funding partner The Princes Trust, is an entry-level route into leisure as a

Recreation Assistant or Customer Service Assistant. Run in GLL leisure centres, they’re a mix of classroom

and practical training, recognised qualiications and supervised work experience. Previous participants

said that it has improved their self conidence, belief, self esteem and itness. Successful completion

usually leads to casual or full time employment with GLL. In 2015, 36 people went through the

Academies and 11 were successful in gaining employment with us.

Current Employees

We take our commitment to current employees very seriously and their well-being, training and

development remain an area of focus for the business. In 2015, c.2,000 staff gained new qualiications

and c. 4,500 staff completed various forms of in-house training and development modules. Social and

team bonding events are a key ixture of the GLL year and have a direct impact on employees building

strong working relationships. C. 2,500 employees attended our annual staff communications day with

staff across the UK attending various other social events from football tournaments to theatre trips.

23

2012 GAMES AND SPORTING LEGACY GLL committed to invest signiicant corporate energy into supporting the legacy opportunities arising

from the successes of the Olympic and Paralympic Games in 2012. In January 2013, we launched our

Corporate Legacy Strategy ‘GLL Inspired’ through to 2015. These enduring legacy programmes are

carried out in every partnership with GLL managed facilities and are amongst the most innovative within

the sporting sector.

‘GLL Inspired’, our corporate legacy strategy has 47 commitments covering the following service areas:

• Sport and Activity

• Community, health & inclusion

• Economy, employment and skills development

• Environment

• The Queen Elizabeth Olympic Park

Some headline targets and results from the ‘GLL Inspired’ commitment are reported as follows:

SPORT AND ACTIVITY TARGETS 2015 TARGET 2015 ACTUALRaising participation

Increased annual GLL visits. 40.5m 40.7m

GLL everyday sport sessions. 365 529

Support community and sport events. 400 414

GLL Sport Foundation (GSF) / talent pathways

Annual number of GSF supported athletes. 1,500 1,720

To provide GSF support in GLL partner Regions. 30 34

To extend GSF support to partner sport trusts. 3 5

SportsAid partnership. P P

Sports and activity brands

Core set of sport and activity brands in GLL partner regions. 30 34

Increase sports and activity course spaces offered. 2,500,000 3,680,000

Sport development and National Governing Bodies (NGB)

Formal memorandum of understanding with NGB’s 5 6

NGB partnership programmes in key regions. 5 6

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COMMUNITY, HEALTH AND INCLUSION TARGETS 2015 TARGET 2015 ACTUALProgrammes for young people

GLL “Kids for a Quid” in GLL partner regions. 30 34

Young people itness offer in GLL partner 30 34

Dedicated women / girls activity sessions (p.wk). 200 229

Free swimming

GLL free swimming initiative in GLL partner regions. 30 33

GLL ‘Swim Guarantee’ initiative in GLL partner regions. 30 33

People over 55 Years

GLL senior club in all partner regions 30 33

Hold annual GLL senior games tournament. P P

Disability Sport

One IFI registration in key GLL partner regions. 20 20

GSF / GLL support to key disability sport clubs. 6 5

To increase the Better Inclusive use by 5% per annum 4,000 6,300

Queen Elizabeth Olympic Park

GLL operate the London Aquatics Centre and Copper Box Arena in partnership with the London Legacy

Development Corporation (LLDC). Both venues have held a series of International and National Sporting

events as part of the legacy commitments from London 2012.

These events have included World, European, International and National Championships; including

Diving, Swimming, netball, basketball, Wheelchair Basketball, boxing, fencing and handball.

As well as host major events the venues also provide community activities and services. In 2015, over

1.3m people have used the two GLL managed venues, exceeding our legacy targets and making them the

most visited Legacy venues on the Queen Elizabeth Olympic Park.

25

GLL’S “GREEN AGENDA” GLL takes responsibility about the environment seriously. To this aim, each year we strive to reduce energy

consumption and our impact on the environment through investment into proven and new technologies

and the adoption of best practices.

In 2015 GLL continued our work on key environmental objectives through the delivery of our Strategic

Action Plan as well as the corporate plan. The key principles of reducing carbon emissions and energy use

remain core agenda items.

Waste and RecyclingGrundon Waste Services and their regional partners collected general waste and recycling from 90 GLL

Leisure Centres including new partnerships in Swindon, Bath and Manchester. The key objectives and

achievements in 2015 are below:

• Achieved zero waste to landill by the end of 2015 (within Grundon Contract)

• 21.4% Recycling rate by weight in 2015

• Long term goal to increase recycling to 50% by 2020

• Total number of 90 premises covered across 24 Partnerships

• Total waste collected 1,279 tonnes of waste collected under the contract

• 406 tonnes of CO2 saved in 2015 through energy recovery

GLL GREEN – Continuous ImprovementsGLL continues to invest. For example:

As part of the partnership with the London Borough of Islington a number of energy saving projects were

identiied and delivered in 2015:

• Pool cover replacements at Archway Leisure Centre

• Poolside lighting upgrade at both Archway and Cally Pools

• Air Handling system replacement at Archway Leisure Centre

• 250kW Solar Photo Voltaic array has been installed at Sobell Leisure centre that is due to reduce the

energy consumption at the centre by 200,000 kWh per annum and lowering Carbon emissions by 97

tonnes.

Investments in Cambridge have reduced energy use and Carbon emissions in 2015

• 10kWe Solar Panel installation at Cherry Hinton Village centre generating over 10,000kWh of electricity

per annum

26

• 30kW thermal Heat pump has been installed at Kings Hedges Pool, producing low carbon heat for

the swimming pool and saving 52 t/CO2 per annum. The heat pump had reduced electricity use by

50,000kWh in the irst 6 months of operation.

• The combined heat and power (CHP) unit at Parkside Pools has been fully refurbished and has reduced

the annual electricity consumption by 50%

• Carbon savings through the unit were over 130 t/CO2 in 2015

Other investments highlighted for 2016 include:

• Wantage Pool & Sports Hall LED lighting replacements

• Farringdon Sports hall LED light replacement

• Bath Sports Centre – upgrade of heating and ventilation

• Investigation into the use of natural Spa Water at Bath Sports Centre for swimming pool heating.

Energy use in like for like centres – Year on Year

In 2015 the utility consumption in like for like centres showed the following results against 2014:

• Gas consumption increased by 8.74% overall, a rise 12.5m kWh was recorded. The increases are partly

due to there being a 6% increase in the heating requirement based on lower average temperatures

and increased trade. It does however highlight the need for good practice and continued investment

across the organisation and this is featured in GLL’s corporate plan.

• Electricity consumption decreased by 1.8m kWh (-3.2%)

• Electricity savings exceed the GLL corporate target of an annual 2% reduction.

• Absolute carbon emissions increased due to the continued growth of the organisation, with GLL’s

carbon eficiency remaining very similar to 2014 at 426.9 tCO2e/£m

Carbon Efficiency & organisational changes

2015 brought the addition of a new partnership in Northern Ireland adding 14 new Leisure Centres, in

addition to the merger with Carlisle Leisure Limited.

New leisure centres in Greenwich, Kensington and the Bath and North East Somerset Partnership added

new premises under GLL’s responsibility in 2015 and these partnerships are now included in the total C02

igures below increasing GLL’s measured footprint by 22% .

The continued increase in energy supplies has seen the total Carbon Footprint for the organisation

increase signiicantly and will be relected in GLL’s reporting in 2016.

APRIL TO MARCH 2010-11 2011-12 2012-13 2013-14 2014-15Total Carbon Footprint (tCO2e) 47,345 52,495 57,063 57,000 69,739

GLL Turnover (prior full year audited) £93m £109m £123m £133m £163m

Carbon Efficiency tCO2e/£m turnover 507 481 464 427.4 426.9

Cumulative Change % 0.00 -5.15 -8.64 -15.77 -15.88

As the table above shows, although GLL’s total Carbon footprint has increased in the last 5 years by

approximately 47%, the eficiency of the facilities has increased when compared to turnover.

GLL’s turnover has increased by 75% over the broadly same period equating to a 15.9% reduction in the

amount of Carbon GLL emits per £1m of turnover.

Carbon Reduction Commitment Energy Efficiency Scheme

GLL registered a CRC Annual footprint of 69,739 t/CO2e in year 5 of the scheme (2014/15) which was the

second year of Phase 2.

27

The igure is signiicantly larger than previous years due to new partnerships that went live at the end of

2014 being included in the reporting for the irst time

The allowance cost for GLL was around £1.1m showing the signiicant impact of the scheme. A cost that

the society had to absorb.

Energy Savings Opportunity Scheme (ESOS) Legislation

In 2015 GLL and its subsidiaries were required to comply with new environmental legislation under

the Energy Savings Opportunity Scheme (ESOS). This involved ensuring 90% of GLL’s energy use was

covered by a recognised audit giving recommendations for energy saving measures.

Energy consumption included all fuels as well as transport emissions from company vehicles and travel.

Reporting to the Environment Agency was completed by the 5th December deadline through the

production display energy certiicates and their associated advisory reports.

Awards & RecognitionGLL continues to hold ISO14001:2004 and re-certiication was completed in October 2015 to include the

London Aquatics Centre in addition to the Copper Box Arena and 8 other premises across Islington and

Reading. A new version of the Standard ISO14001:2015 was published in 2015 and GLL will be making

the necessary changes to its Environmental Management System to ensure continued compliance.

This agenda is an on-going process that GLL is fully signed up to.

GLL also retained its accreditation to the Carbon Trust Standard in 2015.

28

LOOKING TO THE FUTURE AND DELIVERING OUR AMBITIONAs a charitable social enterprise, GLL’s social responsibility is central to each part of our business.

Everything we do is designed to ‘add value’ and improve the lives and health of the communities we

serve. It is important for us that the public understand the difference between GLL and some other types

of providers and we will work hard to demonstrate this difference in all we do.

Our vision is to be recognised as:• The Country’s leading inclusive sport, leisure and physical activity health provider

• The Country’s leading social enterprise provider of library and cultural services

• The Country’s leading social enterprise delivering social and environmental values and ethics

• The service provider of choice for our service partners, customers and communities

• A service provider that will consider further social enterprise opportunities and service sectors that will

beneit our aims and social impact

We will continue to work tirelessly to promote and protect the reputation and standards of genuine

charitable and social organisations within our sector and co-operatively work with others on this agenda.

GLL will continue to look to diversify services and interests in 2016, across expanded services, partnerships

and long term assets.

We will continue to look at innovation and new products within our sector and services to improve the

eficiency, effectiveness and accessibility of our offer. This will be increasingly important as we face

continued economic pressure on customer spend and local authority funding for public services.

As part of our commitment to the development and learning agendas for our employees, GLL plan to

launch new vocational training college partnerships in 2016 as well as expanding Apprenticeship and

route to work programmes.

29

STATEMENT OF THE COMMITTEE OF MANAGEMENT’S RESPONSIBILITIESThe Committee of Management are responsible for preparing the inancial statements in accordance

with applicable law and United Kingdom Generally Accepted Accounting Practice.

Society law requires the Committee of Management to prepare inancial statements for each inancial

year. Under that law the Committee of Management have elected to prepare the inancial statements

in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom

Accounting Standards and applicable law). The inancial statements are required by law to give a true

and fair view of the state of affairs of the Society and of the surplus or deicit of the Society for that

period. In preparing those inancial statements, the Committee of Management are required to

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable accounting standards have been followed, subject to any material

departures explained in the inancial statements;

- prepare the inancial statements on the going concern basis unless it is inappropriate to

presume that the Society will continue in business.

The Committee of Management are responsible for keeping proper accounting records which disclose

with reasonable accuracy at any time the inancial position of the Society and to enable them to ensure

that the inancial statements comply with the Co-operative and Community Beneit Society Act 2014.

They are also responsible for safeguarding the assets of the Society and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the Committee of Management are aware, there is no relevant information (as deined by the

Co-operative and Community Beneit Society Act 2014) of which the Society’s auditors are unaware,

and each committee member has taken all the steps that he or she ought to have taken as a Committee

Member in order to make himself or herself aware of any audit information and to establish that the

Society’s auditors are aware of that information.

The summarised inancial statements in this report are not the statutory accounts but a summary of

information relating to both the sofa and the balance sheet.

An audit has been carried out on the full inancial statements from which the summary is derived and the

audit report on the statutory inancial statements is not qualiied.

The full annual accounts, auditors report and the report of the committee management can be obtained

by contacting the secretary Mr P Donnay at the registered ofice address as shown in the summarised

inancial statements.

The annual accounts were approved by the board on the 19th May 2016.

The annual report and the statutory accounts have been iled with the Financial Conduct Authority.

ON BEHALF OF THE COMMITTEE OF MANAGEMENT:

J M Sesnan – Committee Member S Ward – Committee Member

Date: 19th May 2016

30

SECTION 2.INDEPENDENT AUDITOR’S STATEMENT TO THE MEMBERS OF GREENWICH LEISURE LIMITED We have examined the summarised inancial statements which comprise the summary balance sheets for

both the society and the group and the summary of inancial activities for both the society and the group

for the year ended 31 December 2015.

Respective responsibilities of the Committee of Management and the Auditor

The Committee Members are responsible for preparing the summarised inancial statement in

accordance with applicable United Kingdom law. Our responsibility is to report to you our opinion on

the consistency of the summarised inancial statement with the full annual inancial statements and the

Committee of Managements Report.

We conducted our work in accordance with Bulletin 2008/3 issued by the Auditing Practices Board. Our

report on the company’s full annual inancial statements describes the basis of our opinion which is

‘unqualiied’ on those inancial statements and on the Committee of Managements Report.

Opinion

In our opinion the summarised inancial statement is consistent with the full annual inancial statements

and the Committee of Managements Report of Greenwich Leisure Limited for the year ended 31

December 2015.

Clair Rayner FCA DChA (Senior Statutory Auditor)

for and on behalf of McCabe Ford Williams

Statutory Auditors and Chartered Accountants

Bank Chambers

1 Central Avenue

SITTINGBOURNE

Kent

ME10 4AE

Date: 19th May 2016

31

The accounts presented in this document represent summaries only of the Balance Sheets, Cash low and the Statement of Financial Activities.

The committee of management report in this document represents the complete report which can be found in the full annual inancial statements.

In addition, this document includes commentary on the group’s membership of deined beneit pension schemes.

For a complete set of accounts including notes and disclosures,please contact the Secretary.

Alternatively, a handful of copies of the full Report of the Committee of Management and audited Financial Statements for the year ended 31 December 2015 will be available for viewing before and after the Annual General Meeting on the 27th June 2016.

32

SECTION 3. - SUMMARY FINANCIAL STATEMENTS

BALANCE SHEET AT 31 DECEMBER 2015 – GLL SOCIETY ONLY AS AT 31ST DECEMBER 2015 AS AT 31ST DECEMBER 2014

£ £ £ £

FIXED ASSETS

Intangible assets 536,447 651,986

Tangible assets 31,747,080 29,348,359

Investments 12 1,011

Investment Properties 1,162,038 997,690

33,445,577 30,999,046

CURRENT ASSETS

Stock 278,044 196,907

Debtors within 1 year 27,083,279 19,068,689

Debtors after 1 year 8,202,945 7,003,397

Cash at bank and in hand 21,770,337 20,683,810

57,334,605 46,952,803

CREDITORS

Amounts falling due within 1 year 48,780,446 40,420,403

NET CURRENT ASSETS 8,554,159 6,532,400

TOTAL ASSETS LESS CURRENT LIABILITIES 41,999,736 37,531,446

Amounts falling due after more than 1 year (11,327,548) (11,668,879)

NET ASSET BEFORE PENSION LIABILITY 30,672,188 25,862,567

Pensions Liability 19,738,000 20,453,000

Funds:

General unrestricted funds 10,821,013 5,274,092

Share capital 40,075 36,575

Restricted funds 73,100 98,900

Total funds 10,934,188 5,409,567

30,672,188 25,862,567

The inancial statements were approved by the Committee of Management on the 19/05/16 and were signed by:

J M Sesnan - Committee Member S Ward - Committee Member P Donnay – Secretary

SUMMARY STATEMENT OF FINANCIAL ACTIVITIES - GLL SOCIETY ONLY (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)

FOR THE YEAR ENDED 31 DECEMBER 2015 FOR THE YEAR ENDED 31 DECEMBER 2014 UNRESTRICTED

FUNDSRESTRICTED FUNDS FRS102S28

ADJUSTMENTS TOTAL FUNDS UNRESTRICTED

FUNDS RESTRICTED FUNDS FRS102S28

ADJUSTMENTS TOTAL FUNDS

£ £ £ £ £ £ £ £

INCOME RESOURCES:

Income Resources - Donations 425,587 - - 425,587 - - - -

Income resources from generated funds

Investment Income 196,454 - - 196,454 218,103 - - 218,103

Income resources from charitable activities:

Operation Income 214,633,334 134,191 - 214,633,334 163,083,211 56,659 - 163,139,870

TOTAL INCOMING RESOURCES 215,121,184 134,191 - 215,255,375 163,301,314 56,659 - 163,357,973

RESOURCES EXPENDED:

Cost of generating funds:

Investment management costs 24,091 - - 24,091 23,954 - - 23,954

Charitable activities:

Operation Cost 210,003,765 134,191 1,552,000 211,689,956 159,691,530 56,659 862,000 160,610,189

(Gains) /losses on settlements - - - - - - 476,257 476,257

Other resources expended 261,407 25,800 - 287,207 261,407 25,800 - 287,207

TOTAL RESOURCES EXPENDED 210,289,263 159,991 1,552,000 212,001,254 159,976,891 82,459 1,338,257 161,397,607

Net Income / (outgoing) resources before

other recognised gains & losses 4,831,921 (25,800) (1,552,000) 3,254,121 3,324,423 (25,800) (1,338,257) 1,960,366

Actuarial losses on deined beneit pension schemes - - 3,783,000 3,783,000 - - (8,114,000) (8,114,000)

Pension Deicit inherited on new contracts (1,516,000) (1,516,000)

Net Income after other recognised gains and losses 4,831,921 (25,800) 715,000 5,521,121 3,324,423 (25,800) (9,452,257) (6,153,634)

Shares issued 7,725 - - 7,725 7825 - - 7825

Shares Cancelled (4,225) - - (4,225) (375) - - (375)

Total funds brought forward 25,763,667 98,900 (20,453,000) 5,409,567 22,431,794 124,700 (11,000,743) 11,555,751

Total funds carried forward 30,599,088 73,100 (19,738,000) 10,934,188 25,763,667 98,900 (20,453,000) 5,409,567

The statement of inancial activities includes all gains and losses recognised in the year.

All incoming resources and resources expended arise from acquired and continuing activities. 33

34

BALANCE SHEET AT 31 DECEMBER 2015 – GLL GROUP CONSOLIDATED

AS AT 31ST DECEMBER 2015 AS AT 31ST DECEMBER 2014£ £ £ £

FIXED ASSETS

Intangible assets 536,447 651,986

Tangible assets 39,273,252 29,348,359

Investments 12 1,011

Investment Properties 1,162,038 997,690

40,971,749 30,999,046

CURRENT ASSETS

Stock 353,236 196,907

Debtors within 1 year 26,738,486 19,068,689

Debtors after 1 year 8,202,945 7,003,397

Cash at bank and in hand 22,966,943 20,683,810

58,261,610 46,952,803

CREDITORS

Amounts falling due within 1 year 51,152,340 40,420,403

NET CURRENT ASSETS 7,109,270 6,532,400

TOTAL ASSETS LESS CURRENT LIABILITIES 48,081,019 37,531,446

Amounts falling due after more than 1 year (15,142,737) (11,668,879)

NET ASSET BEFORE PENSION LIABILITY 32,938,282 25,862,567

Pensions Liability 22,150,000 20,453,000

Funds:

General unrestricted funds 10,433,751 5,274,092

Share capital 40,075 36,575

Restricted funds 314,456 98,900

Total funds 10,788,282 5,409,567

32,938,282 25,862,567

The inancial statements were approved by the Committee of Management on the 19/05/16 and were signed by:

J M Sesnan - Committee Member S Ward - Committee Member P Donnay – Secretary

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 20152015 (£) 2014 (£)

Net cash inlow from operating activities 12,543,316 12,576,275

Cash used in inancing activities 464,014 6,898,257

Cash used on investing activities (10,724,197) (17,122,049)

increase in cash in the period 2,283,133 2,352,483

Cash and cash equivalent at the beginning

of the year20,683,810 18,331,327

Total cash and cash equivalent at the end of

the year22,966,943 20,683,810

FOR THE YEAR ENDED 31 DECEMBER 2015 FOR THE YEAR ENDED 31 DECEMBER 2014 UNRESTRICTED

FUNDSRESTRICTED FUNDS FRS102S28

ADJUSTMENTS TOTAL FUNDS UNRESTRICTED

FUNDS RESTRICTED FUNDS FRS102S28

ADJUSTMENTS TOTAL FUNDS

£ £ £ £ £ £ £ £

INCOME RESOURCES:

Income Resources - Donations 425,587 - - 425,587 - - - -

Income resources from generated funds

Investment Income 190,693 - - 190,693 218,103 - - 218,103

Commercial trading operations 409,581 - - 409,581

Income resources from charitable activities:

Operation Income 225,036,155 155,568 - 225,191,723 163,083,211 56,659 - 163,139,870

TOTAL INCOMING RESOURCES 226,062,016 155,568 - 226,217,584 163,301,314 56,659 - 163,357,973

RESOURCES EXPENDED:

Cost of generating funds:

Investment management costs 24,091 - - 24,091 23,954 - - 23,954

Commercial Trading Operations 317,492 - - 317,492 - - - -

Charitable activities:

Operation Cost 221,366,733 263,574 1,978,000 223,608,307 159,691,530 56,659 862,000 160,610,189

(Gains) /losses on settlements - - - - - - 476,257 476,257

Losses on acquisitions (2,763,709) (350,019) 4,756,000 1,642,272 - - - -

Other resources expended 261,407 25,800 - 287,207 261,407 25,800 - 287,207

TOTAL RESOURCES EXPENDED 219,206,014 60,645 (6,734,000) 225,879,369 159,976,891 82,459 1,338,257 161,397,607

Net Income / (outgoing) resources before

other recognised gains & losses 6,856,002 216,213 (6,734,000) 338,215 3,324,423 (25,800) (1,338,257) 1,960,366

Transfer of funds 657 (657) - - - - - -

Re-measurement gains / (losses) on DB schemes - - 6,553,000 6,553,000 - - (8,114,000) (8,114,000)

Inherited pension deicit on new contracts - - (1,516,000) (1,516,000) - - - -

Net Income after other recognised gains and losses 6,856,659 215,556 (1,697,000) 5,375,215 3,324,423 (25,800) (9,452,257) (6,153,634)

Shares issued 7,725 - - 7,725 7,825 - - 7,825

Shares Cancelled (4,225) - - (4,225) (375) - - (375)

Total funds brought forward 25,763,667 98,900 (20,453,000) 5,409,567 22,431,794 124,700 (11,000,743) 11,555,751

Total funds carried forward 32,623,826 314,456 (22,150,000) 10,788,282 25,763,667 98,900 (20,453,000) 5,409,567

The statement of inancial activities includes all gains and losses recognised in the year.

All incoming resources and resources expended arise from acquired and continuing activities. 35

SUMMARY STATEMENT OF FINANCIAL ACTIVITIES - GLL GROUP CONSOLIDATED (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)

GREENWICH LEISURE LIMITED

Registered Company number: IP27793R (England and Wales)

Registered Charity number: XR43398

Registered office:

Middlegate House

The Royal Arsenal

London

SE18 6SX