NON-STATUTORY
FINANCIAL STATEMENTS
31 MARCH 2023
SHEFFIELD CITY TRUST
BASIS OF PREPARATION
Preparation of the company financial statements of Sheffield City Trust (the “company”) and the consolidated
financial statements of the company and its subsidiaries (together the “group”) for the year ended 31 March 2023.
The trustees of the company, whose names are set out below, are the persons responsible for the preparation of the
standalone financial statements of the company and the consolidated financial statements of the group. Both sets of
financial statements have, to the best of their knowledge, been prepared in accordance with applicable accounting
standards using the historical cost convention and they give a true and fair view of the respective assets, liabilities and
financial positions of the company and the group as at 31 March 2023 and of the company’s profit and the group’s
surplus for the year 1 April 2022 to 31 March 2023. The trustee report in the statutory consolidated financial
statements of the group includes a fair review of the development and performance of the business and the position
of the company and the group and the undertakings included in the consolidation as a whole, together with a
description of the principal risks and uncertainties that they face.
The trustees are:
D Grey MBE (trustee and chairman)
P Abel (trustee)
H Best (trustee)
L Clarke (trustee)
G Moore (trustee)
A Pettifer MBE (trustee)
R Plews (trustee)
P Taylor (trustee)
J Warner (trustee)
The Financial Statements were approved by the trustees on 26 July 2023.
SHEFFIELD CITY TRUST
COMPANY INFORMATION
StatusUK Company and UK Registered Charity
Directors and trusteesD Grey MBE (Chairman)
P Abel
H Best
L Clarke
G Moore
A Pettifer MBE
R Plews
P Taylor
J Warner
Secretary L M Gavin
Company number2164600
Charity number700520
Registered officeEnglish Institute of Sport - Sheffield
Coleridge Road
Sheffield
S9 5DA
SolicitorHemingways Solicitors Limited
11 Westbourne Road
Sheffield
S10 2QQ
AuditorCrowe U.K. LLP
The Lexicon
Mount Street
Manchester
M3 5NT
BankerBarclays Bank Plc
10-12 Pinstone Street
Sheffield
S1 2HN
SHEFFIELD CITY TRUST
CONTENTS
Page
Trustees’ and directors’ report1 – 9
Statement of directors’ responsibilities10
Independent auditors’ report to the members of Sheffield City Trust11 - 15
Consolidated financial statements
Consolidated statement of comprehensive income16
Consolidated statement of financial position17 - 18
Consolidated statement of changes in reserves19
Consolidated cash flow statement20
Consolidated analysis of net debt21
Notes to the consolidated financial statements22– 43
SHEFFIELD CITY TRUST
TRUSTEES’ AND DIRECTORS’ REPORT
The Trustees, who act as directors for the purpose of company law, are pleased to present their non-statutory report and
financial statements for the year ended 31 March 2023.
Purpose of the charity
The objects of the group are as detailed in the group’s governing document, its Memorandum of Association.
1
An object of the group is to promote the benefit of the inhabitants of South Yorkshire and surrounding counties
2
A further object of the group is to promote and preserve good physical and mental health. The objective is
3
Further objects of the group include the encouragement of the arts and the acquisition, preservation,
Activities
In furtherance of the company’s object to provide facilities for recreation and other leisure time occupations, Sheffield
City Trust operated the following facilities directly in the year:
Beauchief Golf Course
Birley Golf Course
Concord Sports Centre
Heeley Swimming Pool and Gym
Hillsborough Leisure Centre
iceSheffield
Ponds Forge International Sports Centre
Sinfin Golf Course
Springs Leisure Centre
Tapton Park Golf Course
Tinsley Park Golf Course
Westfield Sports Centre
The company has continued to operate the following facilities through Sheffield International Venues Limited:
English Institute of Sport – Sheffield
Utilita Arena Sheffield
Sheffield City Hall
Sheffield International Venues Limited also acts as principal for all commercial activity within the above venues.
Any profits made by Sheffield International Venues Limited, where the company has sufficient distributable reserves,
may be passed back to the charity by way of a gift aided payment.
The operation of leisure facilities continues to be the primary way in which the two main objects of the group are
achieved. The trustees ensure that participation continues to grow and benchmark attendance against national
standards. Prices are set at a level that encourages use by as many people as possible and many facilities are full at
page 1
SHEFFIELD CITY TRUST
TRUSTEES’ AND DIRECTORS’ REPORT (continued)
Activities (continued)
Beginning in March 2021, England began lifting restrictions associated with the Covid-19 lockdown (roadmap), with a
phased removal of all legal limits on social contact. As a trust, we aligned our activities to this roadmap. We have seen
customers return consistently since reopening, but there remains caution in many activities for example gym use,
group exercise and events. However, aquatics and ice activities have seen a really positive take up by individuals and
families, and our learn to swim/skate programmes have also been very popular. A significant loss has been gala dinners
as companies have not returned to large employee celebrations as a way of rewarding performance or building team
spirit. Fundraising events also seem to be much less popular compared to pre-2020 levels. Shortages in supplies, the
challenges we face with recruitment and more recently the impact of Inflation (Cost of Living) have required a
responsive, adaptive and flexible approach over the past 12 months.
In the last two financial years we have included concessionary rates on all activities to try to alleviate the financial
burden to an identified audience that typically would welcome this discount. The 40% discount is applied to all
activities and has seen a very good uptake, specifically from families of children on free school meals. On coached
admissions we have over 2,400 children benefiting from this each week.
The English Institute of Sport – Sheffield continues to be the home for GB Boxing, GB Para Badminton, GB Para Table
Tennis and GB Goalball along with Sheffield Hallam University’s Sport and Physical Activity academic learning. At Ponds
Forge International Sports Centre, the professional basketball team, the Sheffield Sharks extended their training and
Basketball League fixtures whilst they wait for their home court to be finalised. Ponds Forge was also able to host the
British Swimming Championships. The Utilita Arena Sheffield is the home of the Elite Ice Hockey League team, the
Sheffield Steelers.
The charity continues to partner with the National Centre for Sport and Exercise Medicine in Sheffield (‘NCSEM’)
where clinical facilities are co-located with facilities for sport and exercise. At Concord Sports Centre NHS patients are
treated in an environment which promotes physical activity as medicine. The centre also promotes physical activity as
a prime preventer of ill health with exit routes for patients into our Exercise Referral scheme and other activities.
Essential maintenance work has been undertaken on various facilities in partnership with Sheffield City Council. In
February 2023 a 5-month long programme of work on the swimming pool hall began at Hillsborough Leisure Centre,
which would see repairs to the plant room, roof and changing village.
We have had a strong year for our event programme, with both regional, national and international events being
hosted across the group. IceSheffield hosted the ISU Junior Grand Prix in November 2022, which brought significant
profile and recognition to the city and its capabilities to host a large international event.
Golf has continued in its popularity, as it allows exercise while outside and socialising with friends. This has had a
positive effect on the use of all five of the charity’s courses.
During the first full year of operation following the Covid-19 pandemic, the Sheffield City Hall and the Utilita Arena
Sheffield hosted 520 events and welcomed 947,000 guests through the doors.
The venues delivered a wide and varied arts and entertainment programme hosting some of the most popular acts in
music, comedy and theatre. Opera and ballet also appeared in the programme as well as the Sheffield International
Classical Concert Season featuring both international and domestic orchestras. Community events have always been a
major part of the charity’s events diary, and these included the return of the popular community tea dances, local
dance school performances and the local amateur dramatic society, Manor Operatic Society, who performed a week
long musical (Made in Dagenham) and their traditional two week pantomime at Christmas.
Elite League Ice Hockey continued to play a major part of the events programme with the ongoing partnership with
the Sheffield Steelers. This season, together with the Steelers, the Utilita Arena Sheffield hosted 36 games and
welcomed 240,000 fans, predominantly from the local Sheffield area. This attendance is the Steelers highest in the
Elite League era and 2nd all-time attendance behind only the 1994/95 season. The International Ice Hockey
Federation (IIHF) have recently reported that, now all Covid-19 restrictions are removed across all European venues,
the venue was the 24th most attended ice hockey stadium in Europe moving from a pre pandemic position of 28th.
page 2
SHEFFIELD CITY TRUST
TRUSTEES’ AND DIRECTORS’ REPORT (continued)
Activities (continued)
Our community development activities continue to support the local area away from the facilities. Work with school
and education establishments sees engagement and support to over 100 local schools, through coaching, provision of
equipment, tickets and subsidised venue hire.
A Summer Sports Van programme saw large levels of engagement with a continuation in certain locations as we work
closely with Community Officers and Councillors. This sees activity and engagement, as well as food distribution as we
look to engage through different needs for local families.
Our involvement in the Healthy Activities and Food (HAF) programme has again been extensive, with over 10,000
children accessing a range of our facilities as we provide activities and food for children on free school meals during
holiday weeks. This delivery has seen children learning to swim and learning to skate, as well as partnering with
various community organisations to ensure an offer is available to all local families that surround our leisure facilities.
The charity does not set targets for grant giving as it is a comparatively small part of the work undertaken. As stated
above, the provision and management of the facilities is the primary method of meeting the objects of the charity.
The trustees monitor the level of funds in the designated fund in order to ensure that they make best use of the
limited income available and do make grants to community groups in Sheffield in order to support their work
promoting sports and physical activity within their communities.
In measuring achievements against the above objectives, the charity uses financial measures, a review of which is
given below. In addition to financial performance measures, the charity monitors the performance of its venues using
non-financial key performance indicators that give information regarding attendance at each venue by activity, and
split attendances by age and gender. These performance indicators are monitored against targets and previous years’
Financial Review
The funding agreements for the venues between the group and Sheffield City Council and Derby City Council mean the
group is entitled to receive income from these councils to fund its operating activities which in the year amounted to
£5,605,000 (2022: £7,589,000). The funding is split £5,585,000 from Sheffield City Council (2022: £7,569,000) and
£20,000 from Derby City Council (2022: £20,000).
When considering the financial performance of the charity the trustees examine the results of each facility that the
charity operates. In 2022/23 financial performance and attendance levels from community usage continued to grow
and return more towards the pre Covid-19 levels as confidence returned and all restrictions lifted, however the impact
of continuing difficult economic circumstances on the majority of users continued to be felt.
Group income amounted to £40,859,000 (2022: £31,327,000), total operating costs amounted to £36,966,000 (2022:
£15,621,000) and net finance costs amounted to £1,984,000 (2022: £3,374,000) resulting in a profit before tax of
£1,909,000 (2022: £12,332,000). The profit for the prior year included a credit of £12,957,000 in respect of the
settlement of the South Yorkshire Pension Scheme, following the transfer of the scheme’s assets and liabilities to
Sheffield City Council on 31 March 2022.
The principal activities of Sheffield International Venues Limited in the year under review were the management of the
facilities to deliver commercial income. These activities are in support of the charity’s activities such as providing
public catering in the buildings and supporting elite athletes to use the spaces when not in use by the general public.
Sheffield International Venues also manages unrelated commercial activity that raises the profile of the charity and its
facilities and generates income which is used to support the core charitable activities.
7 Hills Leisure Trust has not traded in the year and the objects of the charity in the year were to allow the orderly wind
up of the charity. On 29 March 2023, the charity, together with its dormant subsidiary, 7 Hills Commercial Limited, and
SIV Enterprises Limited entered a Members Voluntary Liquidation (MVL).
The activities of Sheffield City Trust in the year under review includes the operation of leisure facilities and golf
courses.
Business review
The trustees consider the general trend in financial performance of the venues to be satisfactory considering the
general economic climate. All venue activities continued to grow and by the end of the year had more or less returned
to their pre pandemic levels.
page 3
SHEFFIELD CITY TRUST
TRUSTEES’ AND DIRECTORS’ REPORT (continued)
Business review (continued)
Sheffield City Council has confirmed its support for the charity and discussions with the council continue in a robust,
constructive atmosphere. Sheffield City Trust entered into a legally binding agreement with Sheffield City Council on 31
March 2022, which was updated by a Deed of Extension on 10 July 2023 to ensure it has sufficient funds to continue to
at least 31 December 2024. The support provided gives the certainty necessary for the trustees to develop a plan to
continue to deliver services at its current levels for the foreseeable future. The trustees believe investment can be
made in the facilities in a financially sustainable way in partnership with Sheffield City Council and are working with
Sheffield City Council on the short to medium term strategy.
As disclosed in note 1, the financial viability of the charity is dependent on both continued support from the council
(working capital and venue investment) and to achieving the trading assumptions in the business plan and budgets to
31 December 2024. We believe that the forecasts, including revenue growth and cost assumptions, included in the
plan are achievable, subject to the required investment from Sheffield City Council. The management team continues
to meet on a monthly basis to review performance against the budget and, where there are shortfalls, looks at actions
to address these, including the reduction of costs where necessary. Performance year to date is ahead of budget.
Based on the above, the trustees believe that it remains appropriate to prepare the financial statements on a going
concern basis. However, they note a material uncertainty in respect of the position beyond December 2024 (refer to
note 1). The trustees have considered the impact on the financial statements should the trust not be considered a
going concern and would not anticipate any changes to those presented.
Our pricing policy
Prices are set to enable as many people as possible to use the facilities while ensuring that income generated is
sufficient to cover the costs of the charity. General economic trends are currently showing significant cost rises across
much of our key expenditure items therefore, as far as possible, a higher level of income must be generated by use of
the facilities from both core charitable activities and commercial activities, managed by another company within the
group. However, it is essential that prices are affordable and in no way create a barrier to use of the facilities by any of
the people of Sheffield and concessionary prices are used to ensure that the least wealthy are able to attend.
The trustees review pricing for all charitable activities on an annual basis in order to deliver the best possible facilities
to all citizens of Sheffield at affordable prices.
Investment powers and policy
The trustees balance the needs of the organisation to have funds available for the operations of the group and the need
to maximise investment returns. Recently, interest rates have been rising and the charity has responded by moving its
funds into accounts which generate a better return thus generating additional income.
No funds are invested in non-cash assets such as property or shares. All property owned by the group is in order to
deliver services directly to the beneficiaries. The trustees believe that the level of cash and bank assets owned is
insufficient for the group to consider investment in stock, shares or bonds, particularly in the current volatile climate for
investments.
Pension Scheme
The charitable group contributes to a defined benefit pension scheme provided by South Yorkshire Pension Authority
(“SYPA”). As disclosed in previous years a number of members transferred into the SYPA scheme under the provision of
TUPE. The scheme closed to new members on 1 September 2009.
On 31 March 2022, the group entered into an agreement with Sheffield City Council in which the historic pension assets
and liabilities transferred to Sheffield City Council, thus removing the deficit from the balance sheet of Sheffield City Trust.
Sheffield City Trust continues to pay contributions into the scheme for all eligible employees and the future benefits of
those employees were unaffected by the change.
All new employees since 1 September 2009 who didn’t join under the provisions of TUPE have been eligible to join a
defined contribution, group money purchase scheme. Since 1 January 2014 the group has provided pensions under the
auto-enrolment provisions and all new employees are automatically enrolled into the group money purchase scheme
unless they decide to opt out.
page 4
SHEFFIELD CITY TRUST
TRUSTEES’ AND DIRECTORS’ REPORT (continued)
Reserves policy
The reserves of the group are split between restricted and unrestricted funds. Restricted Reserves are shown as
deferred grant income as set out in note 17. It is the policy of the trustees to spend unrestricted reserves in pursuit of
the charitable objectives in a way that maximises their value in meeting those objectives. At the end of the financial
year, the group had consolidated unrestricted funds of positive £5,611,000 (2022: £3,667,000).
Historically, the trustees believed it was appropriate to hold reserves in order to meet the future depreciation of
capital assets (other than restricted assets) and to provide some “buffer” should future operations fall short of
financial budgets and that an appropriate level of reserves would be sufficient to support operations for six months.
However, as a result of the Covid-19 pandemic, which impacted on the charity’s ability to address the reserves
position, as well as the current rises being seen in the general cost of living, impacting on how individuals choose to
spend their disposable income the trustees have reviewed the charity’s reserves policy. The trustees signed a Funding
Agreement with Sheffield City Council on 31 March 2022, which was updated by a Deed of Extension on 10 July 2023,
to ensure it has sufficient funds to continue to at least 31 December 2024, which provides for the City Council to meet
existing and future liabilities to the extent that they aren’t financed by future operations and, taking this and the
future challenges described above into consideration, the trustees now consider it more appropriate to target a
neutral reserves position. To achieve this the charity will continue to drive an increase in footfall across all venues and
maximise attendances, whilst continuing to grow the programme of events across both the entertainment and
sporting venues. For further information refer to ‘plans for future periods’.
The legally binding funding agreement with Sheffield City Council confirming support for the group to 31 December
2024, together with the positive cash balances held by the charity, provide the trustees with the necessary comfort to
continue trading. The Trustees believe that, in light of the provisions of the Funding Agreement, the level of reserves is
satisfactory at present.
Plans for future periods
The trustees considered the future of the charity and how it might achieve its reserves target and deliver its charitable
objects in the long term. It was determined that the beneficiaries would be best served if all the charitable activities
within the group were delivered by one rather than two charities and hence all charitable operations are now
managed by Sheffield City Trust and so on 29 March 2023, 7 Hills Leisure Trust entered into a Members Voluntary
Liquidation. In doing this the Trustees believe that the streamlined group structure will drive further efficiencies and
ultimately improve the resources available to deliver the charitable objects of both charities.
Activity levels have grown during the year, returning towards pre pandemic levels. It is expected that activity levels
will continue to grow as consumer confidence grows and there is already a significant calendar of events booked in at
both entertainment and leisure venues, although it is anticipated that the current difficult economic conditions
affecting the majority of users may have a negative impact.
As stated above, the trustees are working with Sheffield City Council on longer term funding certainty and have agreed
with Sheffield City Council that the charity will continue to operate the facilities directly, and via its group companies,
until at least 31 December 2024 and jointly look to invest in them as funding permits. This agreement gives a degree of
certainty and enables medium term planning and programme development.
The discussions with the council have included the strategy of the charity to continue to encourage the director of
Sheffield International Venues to pursue such commercial activities as can be performed in and around Sheffield as will
bring in additional income without reducing the ability of the charity to provide services to its beneficiaries.
The performance of the group in the first quarter of 2023/24 was satisfactory, when taking into account the
challenging general economic climate. It is the intention of the trustees to continue to invest in facilities as much as
possible and to maximise attendances, as much as possible during these challenging economic times.
page 5
SHEFFIELD CITY TRUST
TRUSTEES’ AND DIRECTORS’ REPORT (continued)
Reference and administrative details
Charity Registration Number: 700520
Company Registration Number: 2164600
Registered Office
Secretary
Advisers
Solicitor
Hemingways Solicitors Limited
Auditor
Crowe U.K. LLP
Banker
Barclays Bank Plc
Directors and directors’ interests
The trustees, who also act as directors, who held office during the year and after the year end are as follows:
P Abel
H Best
L Clarke
D Grey MBE
G Moore
A Pettifer MBE
R Plews
P Taylor
J Warner
Mr J Warner is chairman of the Group Audit Committee. The Group Audit Committee members are Mr J Warner and
Mr R Plews.
None of the trustees who held office at the end of the financial year had any disclosable interest in debentures of the
company or in any shares or debentures of any other group company.
According to the Register of Trustees’ Interests, no rights to subscribe for debentures of the company or in any shares
or debentures of any other group company were granted to any of the trustees or their immediate families or
exercised by them during the year.
Employees
The group has a policy of offering job opportunities to persons with disabilities where possible. The group has a
formal consultation procedure in respect of employees’ terms and conditions and health and safety issues.
The senior employee of the group is:
Chief ExecutiveAndrew Snelling
Insurance for trustees and officers
Insurance for trustees and officers against liabilities in relation to the group, as permitted by the Companies Act 2006,
is maintained under a policy held by Sheffield City Trust. The cost of this amounted to £15,000 (2022: £14,000).
page 6
SHEFFIELD CITY TRUST
TRUSTEES’ AND DIRECTORS’ REPORT (continued)
Structure, governance and management
Articles of Association. The trustees are the members of the company under company law. The company is domiciled, and
its principal place of business is in the UK
The trustees recognise the importance of communication with beneficiaries and will issue regular newsletters and
updates on specific projects and overall performance. These reports may also include some summary financial
information from the financial statements of the company.
Organisation of the company
At present the company has 9 trustees. It aims to be governed by a board of between 12 and 20 trustees and had been
looking at ways to attract more trustees. This has taken a pause whilst the funding agreement with Sheffield City Council
was negotiated and also whilst Sheffield City Council looks to undertake a tender process for the future operation of the
venues. Once the outcome of the tender process is known, the trustees will consider the appropriate way forward.
Trustees are attracted based on advertising and introductions and are selected based on key skills. An induction process
is carried out and all new trustees are invited to meet with the chairman and senior executives in order to better
understand the operations of the charity. Trustee training is made available on an ad hoc basis when a need is identified.
During the year, the charity had five wholly owned subsidiaries, Sheffield International Venues Limited, SIV Enterprises
Limited, Phoenix Sports Limited, a company limited by guarantee, which has complementary objects, 7 Hills Leisure Trust,
a registered charity, with independent trustees, but of which the charity is the sole member and 7 Hills Commercial
Limited. SIV Enterprises Limited, 7 Hills Leisure Trust and 7 Hills Commercial Limited did not trade during the year. As part
of a planned group simplification programme, these entities, as of 29 March 2023, were placed into Members Voluntary
Liquidation.
Sheffield International Venues Limited undertake all commercial activities in the venues in order to support the charitable
activity.
The overall management and control of the company’s activities and finances are vested in the Chief Executive, Andrew
Snelling. The board of the company meets monthly and Mr Snelling attends all meetings, reporting on all key operational
and financial matters. There is a Group Audit Committee which meets as required and not less than three times in each
financial year. There is a Charitable Purposes Committee which focuses on the work of the charity outside the venues.
The Charitable Purposes Committee has three members, Helen Best, Chairwoman, Graham Moore and Peter Taylor.
Trustee induction and training
New trustees undergo an induction process in which they spend some time with the chairman and chief executive and
then the other senior managers. They will also visit the various facilities of the group in company with a senior manager
and familiarise themselves with the operations of the company and its subsidiaries.
Each trustee is invited to take a special interest in one facility in order to get an in depth understanding of that part of the
company’s operations and to be able to act as a point of contact for senior management. As with any special skills that
any trustees may have, this arrangement adds to the effectiveness of the trustee board but doesn’t change the
responsibility of all trustees for all aspects of the governance and activities of the charity.
Relationship with other charities and organisations
The charity co-operates closely with Sheffield City Council in pursuit of its charitable objectives. The relationship is
conducted in accordance with formal funding agreements. A councillor and an officer of the council are invited to attend
as observers at each meeting of the board. The council did not appoint a nominee director to the board of Sheffield
International Venues Limited in the year. The council reserves the right to appoint a director in the future.
Pay policy for senior staff
The trustees, who act as directors for the purpose of company law, consider that the board of trustees and the chief
executive comprise the key management personnel of the company in charge of directing and controlling and running
and operating the company on a day to day basis. All trustees give their time freely and no trustee received any
remuneration in the year. The pay of the chief executive is reviewed annually by the board of trustees. In view of the
nature of the company, the trustees benchmark against pay levels in other leisure trusts and other similar organisations.
All such organisations are different, and the trustees are aware of the organisational complexities of the group and take
this into consideration when comparing with larger charities. The trustees also look at similar job roles in the local,
Sheffield, economy and other local charitable organisations to ensure that salaries are reasonable within the market.
page 7
SHEFFIELD CITY TRUST
TRUSTEES’ AND DIRECTORS’ REPORT (continued)
Management of risk
The trustees are responsible for ensuring the effective management of risk including a system of internal financial control
which is maintained by the charity. They consider risk management to be an important part of their role and endeavour
to follow best practice.
During the year, the management teams at each venue have again discussed the risks identified with the members of the
senior leadership team and have ensured that proper controls are in place within their venue. They have also considered
each of the objectives set for the venue in the corporate strategy of the charity to ensure that the risks are linked into the
operational objectives and that the process of risk mitigation is embedded in the action plans to deliver the objectives.
This work of monitoring and mitigating risks within the venues continues to be a major work of the general managers at
each venue. The senior leadership team regularly considers corporate risk in its meetings and updates the risk register
accordingly. The Group Audit Committee reviews this process at each of its meetings as a standard agenda item providing
additional checks and specific skill on top of the trustees’ own monitoring process.
The trustees believe one of the key risks to the Charity and group to be the ability of Sheffield City Council to provide
adequate funds to maintain the buildings in the medium term. The trustees of the parent charity have entered into an
agreement with Sheffield City Council ending in December 2024 in order to give greater certainty of future funding and
additional funding has been provided to cover the cost of essential maintenance work on the venues.
The trustees also believe the general economic climate to be a major risk to the group, particularly in respect of the
general rise in cost of living. The general rise in cost of living is impacting on individuals’ disposable incomes and as such
will impact on the ability of customers to pay for the services offered by the company, as they choose where to spend
what disposable income they have.
Rising prices are also considered a major risk to the group, in particular higher energy costs, as energy costs make up a
significant part of the charity’s overall cost base, however these costs are managed to the extent possible through fixed
price contracts.
The trustees continue to monitor the financial performance of the group very closely. The trustees anticipate that now
that business has returned to normal following the pandemic, it will continue to grow and return to normal levels,
however they expect to see some impact of the rising cost of living. The entertainment venues, in particular, have a
strong diary of future events already scheduled. Given the support provided by Sheffield City Council to the Sheffield City
Trust group, the trustees continue to support the going concern basis although they note a material uncertainty beyond
December 2024 (see note 1).
The trustees have identified a number of other risks which they consider to be important to the business and have action
plans to mitigate against them, but believe that the risks considered above are the most significant and their future
strategy addresses them directly.
Public Benefit
The trustees are aware of their duty to ensure that the charity provides a public benefit. Each year the prices charged for
the charitable activities within each venue are reviewed by the trustees in order to ensure that they are reasonable and
affordable to the vast majority of the citizens of Sheffield. The trustees are proud of their fitness membership package
which provides high quality fitness membership at very good value for money, the excellent coached activity programme
which provides affordable access to swimming, gymnastics and trampolining lessons amongst others and of the low
prices of the Sheffield International Concert Season. In increasingly difficult economic times it is becoming difficult to
maintain access to so many citizens. The trustees believe that the high levels of customer service, for which the group
has won awards, demonstrates an ethos of providing the highest possible standards to all. Additionally, the charity offers
concessionary prices on all products, including fitness memberships and coached programmes, at 40% discount. The level
and breadth of discount available are market leading and reflect the charity’s commitment to ensuring services are
available to as many of the citizens of Sheffield as possible.
The charity is the only member of 7 Hills Leisure Trust, a now dormant charity going through Members Voluntary
Liquidation.
page 8
SHEFFIELD CITY TRUST
TRUSTEES’ AND DIRECTORS’ REPORT (continued)
Disclosure of information to auditor
The trustees who held office at the date of approval of the trustees’ report and this strategic report confirm that, so far as
they are each aware, there is no relevant information of which the group’s auditor is unaware; and each trustee has taken
all steps that he/she ought to have taken as a trustee to make himself/herself aware of any relevant audit information
and to establish that the group’s auditor is aware of that information.
Auditor
In accordance with Section 487 of the Companies Act 2006, the auditor will be deemed to be re-appointed and Crowe
U.K. LLP therefore continued in office.
In accordance with Section 414 of the Companies Act 2006, the company has prepared a trustee’s report that includes
information that would be included with a strategic report. The trustees authorise both the trustees’ report and strategic
report below.
By order of the board
D Grey MBE English Institute of Sport - Sheffield
Chairman Coleridge Road
Sheffield
S9 5DA
Company registration number 2164600
Charity registration number 700520 26 July 2023
page 9
SHEFFIELD CITY TRUST
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
The directors of Sheffield City Trust (‘the directors’) have accepted responsibility for the preparation of these non-
statutory accounts for the year ended 31 March 2023 which are intended by them to give a true and fair view of the state
of affairs of the company and of the profit or loss for that period. They have decided to prepare the non-statutory
accounts in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs as
adopted by the EU).
In preparing these non-statutory accounts, the directors have:
selected suitable accounting policies and applied them consistently;
made judgements and estimates that are reasonable and prudent;
stated whether they have been prepared in accordance with IFRSs as adopted by the EU;
assessed the group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern; and
used the going concern basis of accounting unless they either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.
The directors are responsible for such internal control as they determine is necessary to enable the preparation of non-
statutory accounts that are free from material misstatement, whether due to fraud or error, and have general
responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent
and detect fraud and other irregularities.
The directors are responsible for preparing and filing the non-statutory accounts of the group in compliance with the
European Single Electronic Format Regulatory Technical Standard (“ESEF RTS”) with the relevant member states
regulator’s storage mechanisms. In preparing the non–statutory accounts in compliance with ESEF RTS, the directors are
required to:
prepare the non-statutory group accounts in a valid xHTML format; and
apply iXBRL markup of the non-statutory accounts using the core taxonomy and the common rules on markups
specified in the ESEF RTS.
page 10
SHEFFIELD CITY TRUST
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF SHEFFIELD CITY TRUST
Opinion
We have audited the non-statutory financial statements of Sheffield City Trust (the “charitable company”) and its
subsidiaries (the ‘group’) for the year ended 31 March 2023 which comprise the Consolidated Statement of
Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Changes in Reserves,
Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The
financial reporting framework that has been applied in the preparation of the non-statutory group financial statements is
applicable law and International Financial Reporting Standards (IFRS) as adopted by the European Union.
In our opinion:
the non-statutory financial statements give a true and fair view of the state of the group’s affairs as at 31 March
2023 and of the Group’s profit for the year then ended;
the non-statutory group financial statements have been properly prepared in accordance with International
Financial Reporting Standards as adopted by the European Union;
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 Auditor’s responsibilities for the audit of the non-
statutory 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 non-statutory financial statements in the UK, including the FRC’s Ethical
Standard as applied to listed entities, 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.
Material uncertainty related to going concern
We draw attention to note 1 in the non-statutory financial statements, which indicates that the Trust has funding
agreements in place through to at least 31 December 2024, although future operations beyond 2024 are subject to a
tender process. As stated in note 1 these events indicate that a material uncertainty exists that may cast significant doubt
on the Trust’s ability to continue as a going concern beyond 2024. Our opinion is not modified in respect of this matter.
In auditing the non-statutory financial statements, we have concluded that the directors’ use of the going concern basis
of accounting in the preparation of the non-statutory financial statements is appropriate.
Our evaluation of the directors’ assessment of the entity’s ability to continue to adopt the going concern basis of
accounting included:
Challenging the Group’s assessment of the ability of Sheffield City Council to provide such support.
Assessing the numerical accuracy of the forecasts.
Considering sensitivities over the level of available financial resources indicated by the Group’s financial
forecasts taking account of reasonably possible (but not unrealistic) adverse effects that could arise from these
risks individually and collectively including the impact of inflation.
Assessing the completeness and accuracy of the matters covered in the going concern disclosures by comparing
the disclosures to our knowledge obtained throughout the audit.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant
sections of this report.
page 11
SHEFFIELD CITY TRUST
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF SHEFFIELD CITY TRUST (continued)
Overview of our audit approach
Materiality
In planning and performing our audit we applied the concept of materiality. An item is considered material if it could reasonably
be expected to change the economic decisions of a user of the financial statements. We used the concept of materiality to both
focus our testing and to evaluate the impact of misstatements identified.
Based on our professional judgement, we determined overall materiality for the financial statements as a whole to be £600k,
based on 1.5% of incoming resources being revenue and other operational income.
We use a different level of materiality (‘performance materiality’) to determine the extent of our testing for the audit of the
financial statements. Performance materiality is set based on the audit materiality as adjusted for the judgements made as to
the entity risk and our evaluation of the specific risk of each audit area having regard to the internal control environment. We
determined performance materiality to be £420k for the group.
Where considered appropriate performance materiality may be reduced to a lower level, such as, for related party transactions
and directors’ remuneration.
We agreed with the Audit Committee to report to it all identified errors in excess of £22.5k. Errors below that threshold would
also be reported to it if, in our opinion as auditor, disclosure was required on qualitative grounds.
Overview of the scope of our audit
In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken at each
of the components by us. Due to the level of activity we considered Sheffield City Trust and Sheffield International Venues
Limited to be significant components, whilst Phoenix Sports Limited to be insignificant but material.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due
to fraud) we identified, including those which had the greatest effect on the overall audit strategy, the allocation of resources in
the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the
financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
In addition to the matter described in the material uncertainty related to going concern section, we have determined the
matters described below to be the key audit matters to be communicated in our report.
Key audit matter
How our scope addressed the key audit matter
Completeness of maintenance grant income
Council a per note 4.
grant income are:
financial reporting standards
the correct period.
income.
We obtained an understanding of the grant agreements and evaluated
new grants obtained during the year and continuing grants.
statement.
in the underlying grant agreement.
statements by reference to the supporting documentation.
page 12
SHEFFIELD CITY TRUST
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF SHEFFIELD CITY TRUST (continued)
Key audit matters (continued)
Key audit matter
How our scope addressed the key audit matter
Event cutoff
creditors as per note 14.
failure in the IT system.
relation to events are:
correct accounting period.
We tested income summaries from all venues for a period of days either
correct reporting period.
Our audit procedures in relation to these matters were designed in the context of our audit opinion as a whole. They
were not designed to enable us to express an opinion on these matters individually and we express no such opinion.
Other information
The other information comprises the information included in the annual report other than the non-statutory financial
statements and our auditor’s report thereon. The directors are responsible for the other information contained within the
annual report.
Our opinion on the non-statutory financial statements does not cover the other information and 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 non-statutory 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 non-statutory 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.
Responsibilities of the directors for the financial statements
As explained more fully in the directors’ responsibilities statement set out on page 10, the directors are responsible for
the preparation of the non-statutory 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 non-statutory financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the non-statutory financial statements, the directors are responsible for assessing the group’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 group or to cease operations, or have no realistic
alternative but to do so.
page 13
SHEFFIELD CITY TRUST
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF SHEFFIELD CITY TRUST (continued)
Auditor’s responsibilities for the audit of the non-statutory financial statements
Our objectives are to obtain reasonable assurance about whether the non-statutory financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 non-statutory 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:
We obtained an understanding of the legal and regulatory frameworks within which the Group and Trust operate. We
considered this context to be the Companies Act 2006 and Charities Act 2011. We identified the greatest risk of material
impact on the non-statutory financial statements from irregularities, including fraud, to be the override of controls by
management. Our audit procedures to respond to these risks included enquiries of management about their own
identification and assessment of the risks of irregularities, sample testing on the posting of journals and reviewing the
accounting estimates for bias.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the non-
statutory financial statements may not be detected, even though the audit is properly planned and performed in
accordance with the ISAs (UK). The potential effects of inherent limitations are particularly significant in the case of
misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to
conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to
us.
A further description of our responsibilities for the audit of the non-statutory financial statements is located on the
Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor’s report.
Report on other legal and regulatory requirements
European Single Electronic Format
We have examined the digital files of the European Single Electronic Format (ESEF) of the non-statutory consolidated
financial statements of Sheffield City Trust for the year ended 31 March 2023 that compare an XHTML file which includes
the non-statutory consolidated financial statements for the financial year and XBRL files with tagging performed by the
entity, which will form part of the non-statutory annual financial report.
The directors of Sheffield City Trust are responsible for presenting the non-statutory annual financial report for the 2023
financial year in accordance with the formatting and markup requirements established in the Delegated Regulation (EU)
2019/815 of 17 December 2018 of the European Commission (hereinafter the ESEF Regulation).
Our responsibility is to examine the digital files prepared by the parent charitable company’s directors, in accordance
with EU legislation. This legislation requires that we plan and execute our audit procedures. In order to verify whether the
content of the non-statutory consolidated annual financial statements that we have audited, and whether the format and
markup of these non-statutory financial statements and of the aforementioned files has been affected, in all material
respects, in accordance with the requirements established in the ESEF Regulation.
In our opinion, the digital files examined completely agree with the audited non-statutory consolidated financial
statements, and these are presented and have been marked up, in all material respects, in accordance with the
requirements established in the ESEF Regulation.
page 14
SHEFFIELD CITY TRUST
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF SHEFFIELD CITY TRUST (continued)
Use of our report
This report is made solely to the company's members, as a body, in accordance with our engagement letter dated 30
March 2022. 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 auditor's 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.
Vicky Szulist
Senior Statutory Auditor
For and on behalf of Crowe U.K. LLP
Statutory Auditor
The Lexicon
Mount Street
Manchester
M2 5NT
26 July 2023
page 15
SHEFFIELD CITY TRUST
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
Note20232022
In thousands of GBP£000 £000
Revenue229,276 20,120
Operating costs 3(36,966 )(15,621 )
Other income411,583 11,207
________________
Operating surplus3,893 15,706
Finance income5103 9
Finance cost6(2,087 )(3,383 )
________________
Profit before tax1,909 12,332
Taxation7 35 396
________________
Profit for the year 1,944 12,728
Other comprehensive income:
Items that will not be reclassified to profit and loss
Re-measurement of defined benefit liability 19- 3,677
_______________
Total comprehensive surplus for the year 1,944 16,405
All activities of the group are continuing.
The accompanying notes form part of the financial statements.
page 16
SHEFFIELD CITY TRUST
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
20232022
In thousands of GBP Note£000 £000
Non-current assets
Intangible assets817 26
Property, plant and equipment (including certain right- 9148,982 151,180
of-use assets)
Right-of-use assets10838 1,391
Trade and other receivables1232,490 32,490
___________________
___________________
Current assets
Corporation tax- 35
Inventories11233 216
Trade and other receivables122,678 1,831
Cash and cash equivalents136,013 2,968
Cash and cash equivalents – third party ticket monies139,036 5,000
___________________
___________________
Total assets200,287 195,137
___________________
Current liabilities
Trade and other payables 14 (18,119 )(12,914 )
Borrowings15(17,804 )(16,791 )
Right-of-use liabilities10(266 )(315 )
Deferred grant income17(3,715 )(2,187 )
Provisions16(115 )-
___________________
(40,019 )(32,207 )
___________________
Non-current liabilities
Borrowings15(126,389 )(127,630 )
Right-of-use liabilities10(527 )(640 )
Deferred grant income17(27,741 )(30,993 )
___________________
(154,657 )(159,263 )
___________________
Total liabilities (194,676 )(191,470 )
___________________
Net assets5,611 3,667
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
Reserves5,611 3,667
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
page 17
SHEFFIELD CITY TRUST
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)
AS AT 31 MARCH 2023
The accompanying notes form part of the financial statements.
Approved by the Board and authorised for issue on 26 July 2023.
D Grey MBE (Director)
page 18
SHEFFIELD CITY TRUST
CONSOLIDATED STATEMENT OF CHANGES IN RESERVES
AS AT 31 MARCH 2023
GeneralPensionTotal
In thousands of GBP£000£000£000
At 1 April 20213,197 (15,935 )(12,738 )
Surplus for the year470 12,258 12,728
Other comprehensive income- 3,677 3,677
_____________ ______
At 31 March 2022 and 1 April 20223,667 - 3,667
Surplus for the year1,944 - 1,944
___________________
At 31 March 20235,611 - 5,611
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
The accompanying notes form part of the financial statements.
page 19
SHEFFIELD CITY TRUST
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
Note20232022
In thousands of GBP£000£000
Cash flows from operating activities
Surplus for the year1,944 12,728
Adjustments for:
Depreciation and impairments8/9/104,805 3,910
Profit on disposal(5 )(534 )
Amortisation of borrowing issue costs4 4
Finance Income5(103 )(9 )
Finance cost2,083 3,379
Tax - (396 )
Pension receipts in excess of current service cost- (12,600 )
Grant receipts172,715 4,116
Release of grants17(4,439 )(2,580 )
Provision for dilapidations16115 -
__________________
Operating cash flows before movement in working capital7,119 8,018
Increase in inventories11(17 )(93 )
(Increase)/decrease in trade and other receivables12 (847 )1,250
Increase in trade and other payables145,205 413
__________________
Cash generated by operations11,460 9,588
Interest received5103 9
Interest paid(2,083 )(3,037 )
Tax received35 43
__________________
Net cash inflow from operating activities9,515 6,603
__________________
Cash flows from investing activities
Acquisition of plant and equipment9/10(2,045 )(3,641 )
Proceeds from disposal of tangible fixed assets5 1,009
__________________
Net cash used in investing activities(2,040 )(2,632 )
__________________
Cash flows from financing activities
Net repayments of bank borrowings(16,953 )(16,060 )
Proceeds of other borrowings16,559 15,910
__________________
Net cash used in financing activities(394 )(150 )
__________________
Net increase in cash and cash equivalents7,081 3,821
Cash and cash equivalents at 31 March 20227,968 4,147
__________________
Cash and cash equivalents 31 March 202315,049 7,968
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
Cash15,049 7,968
_________ _________
The accompanying notes form part of the financial statements.
page 20
SHEFFIELD CITY TRUST
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023
£000
£000
£000
£000
page 21
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
1.Accounting policies
1.1Basis of preparation
Financial Reporting Standards (IFRS) as adopted by the European Union. The Financial Statements are prepared
under the historical cost convention. All standards and interpretations that have been issued and are effective at
the start of the reporting period have been applied. No other accounting standards coming into effect in the year
have had any effect on the financial statements.
The company has debt securities listed on the Luxembourg Stock Exchange and the Luxembourg Stock Exchange
has required the filing of financial statements that have been prepared pursuant to the IFRS financial framework
applicable. These accounts have been commissioned in order to facilitate the company’s compliance with the
requirement of the Luxembourg Stock Exchange and with the Rules and Regulations of the Luxembourg Stock
Exchange as to debt securities listed there and the filing of documents.
1.2Going concern
Sheffield City Council provides legally binding support to Sheffield City Trust as follows:
‘Shortfall Funding Agreement’ Sheffield City Council will continue to provide additional funding support in respect of
three legacy venues (Utilita Arena Sheffield, Hillsborough Leisure Centre and Ponds Forge International Sports Centre)
in line with the ‘Shortfall Funding Agreement’ held between both parties, including a guarantee for the amounts due
under the bonds. The ‘Shortfall Funding Agreement’ is a legally binding commitment to 31 March 2024.
Additionally, Sheffield City Trust entered into a legally binding Funding Agreement with Sheffield City Council on 31
March 2022 to provide the funds and cashflow support necessary to run the trust through to 31 August 2024. On 10
July 2023 a Deed of Extension to this funding agreement extended the necessary support to run the trust through to at
least 31 December 2024.
Sheffield City Council has indicated its intention to continue to make available such funds as are needed by the charity
for the period of at least 12 months from the date of signing of the financial statements and in fact to at least 31
December 2024. As with any charity placing reliance on a partner for financial support, the Trustees acknowledge that
there can be no certainty that this support will continue although, at the date of approval of these financial
statements, they have no reason to believe that it will not do so. Management have prepared a business plan to cover
the period to 31 December 2024 which sets out planned income and expenditure across all venues and is broken down
by type of income and expense.
The management team is committed to achieving the plan and have robust action plans in place to enable them to do
this. The management team continues to meet on a monthly basis to review performance against the budget and,
where there are shortfalls, looks at actions to address these, including the reduction of costs where necessary.
Performance year to date is ahead of the plan.
The plan includes trading assumptions which are reliant on further capital investment in venues, which is only
achievable with assistance from Sheffield City Council. The additional capital investment is required to support the
plan, but because of the legal arrangements regarding the bond and related assets and the funding agreement entered
into on 31 March 2022, together with the Deed of Extension to this agreement, it is not necessary for the group to
continue as a going concern.
The operating environment presents a number of challenges which could contribute to the group failing to achieve its
operational cash flow forecasts. These risks and uncertainties include but are not limited to, the continued impact of
the current economic climate, achieving forecast levels of fitness members, achieving forecast footfall in venues and
achieving continuing control over the level of underlying cost base. As such, the reliance on the intended legally
binding assistance from Sheffield City Council is even more important.
The trustees have considered all of these factors and have had discussions with representatives from Sheffield City
Council. Sheffield City Council is guarantor of the bond and entered into the new Funding Agreement (31 March 2022),
extended by Deed of Extension on 10 July 2023, to emphasise its commitment to the future of Sheffield City Trust. The
trustees also consider that the provisions of the funding agreement provide for significant liabilities beyond 2024 and
that the group remains sustainable beyond this date.
page 22
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
1.2Going concern (continued)
Operations Post 2024
On 17 November 2021, Sheffield City Council began a Leisure and Entertainment Facility and Services Review. The
review included an intention to put out to competitive tender the management of the major sporting facilities, leisure
facilities and entertainment venues currently managed by the Trust.
As part of this approved leisure strategy, Sheffield City Council decided to run the tender as three separate public
procurement processes: leisure facilities including golf sites, Utilita Arena Sheffield and Sheffield City Hall. The first two
processes were initiated on 28 June 2023. The third, Sheffield City Hall, is due to begin in the Autumn of 2023.
The Trust has already communicated to Sheffield City Council that it does not intend to bid to operate the facilities
from the potential hand back date in 2024. The Trustees have however agreed to continue to operate the facilities
beyond the expected end of the original arrangements, supported by the Deed of Extension, signed on 10 July 2023 in
order to enable Sheffield City Council the time to identify and contract with a new operator(s) or determine what other
arrangements might be appropriate in the medium term. Other arrangements could involve the Trust continuing to
directly manage one or more of the venues.
It is expected that the outcome of the procurement processes will be known in the Autumn of 2024 and if a successful
bidder(s) identified, for handover to be by 31 December 2024. It is however the view of Trustees that it is too early in
the overall tender process for them to have any certainty about its outcome. Taken as a whole, the tender itself is a
complex, multi-faceted process which is subject to negotiations with interested bidders and is further complicated by
extremely difficult market conditions including high inflation, significant volatility in the energy market, high
construction and material costs which increases repair and renewal cost and risk on large and aging public buildings
and a difficult employment market. All these factors lead to a high level of uncertainty regarding the appetite of the
market to bid for the three contracts and, where final bids are received, whether the cost, risk and reward profile
meets Sheffield City Council’s expectations. As such, there is significant uncertainty over whether the tender will result
in the Trust no longer managing all of the venues.
The Trustees’ intention is to deliver services in line with the charitable objects of Sheffield City Trust for the benefit of
its beneficiaries and to continue to do this save to the extent that Sheffield City Council, the charity’s main lessor and
funding partner ceases to provide the funding required to support the relevant activity. The Trustees are considering
whether the Trust might continue to deliver its charitable objects if and when another operator becomes Sheffield City
Council’s principal contractor for the facilities now operated by the Trust. It may be that some services delivered
within communities, away from the venues, might continue through the Trust, either as principal or as agent for the
Council or a new venue operator. The Trustees remain fully committed to supporting the health and wellbeing of the
people of Sheffield in any way they can.
Conclusion
In light of the above, Trustees consider the Charity to be a going concern but with a material uncertainty as to the
future of operations beyond December 2024. This conclusion is based upon both the intent of Trustees to continue to
operate the Charity for as long as they are able to deliver its charitable objects, willing to adapt the provision to suit its
circumstances, and the significant uncertainty over how the market will respond to Sheffield City Council’s tender
process.
As a result of the legal arrangements with Sheffield City Council, the trustees are confident that the group will have
sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of
the financial statements and through to at least December 2024.
The Trustees have considered the impact on the financial statements should they not consider the Trust to be a going
concern once the outcome of the tender process is known. They believe that on ceasing to operate, the business
would be transferred as a going concern and as such do not therefore believe that any additional provisions for
liabilities, impairment of assets or re-classification of any non-current assets or liabilities to current ones would be
necessary.
page 23
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
1.3Presentation Currency
The financial statements are presented in GBP, which is the company’s functional currency. All amounts have
been rounded to the nearest thousand, unless otherwise indicated.
1.4Operating Segments
IFRS 8 requires operating segments to be identified on the basis of the internal financial information reported to
the Board of Trustees, who are primarily responsible for the allocation of resources to segments and the
assessment of performance of the segments.
The Trustees believe that the Group comprises a single reporting segment, that being the provision of facilities to
enable the public to participate in recreational activities, which promotes the health and well being of the
people of Sheffield and surrounding areas.
The only major customer of the Trust is Sheffield City Council which accounts for revenue and other income of
£10,446,000 (2022: £9,264,000).
1.5Consolidation
The group’s financial statements consolidate the financial statements of Sheffield City Trust and all its
subsidiaries. Subsidiaries are consolidated from the date on which control transfers to the group and are
included until the date on which the group ceases to control them. Transactions and year end balances
between group companies are eliminated on consolidation. All entities have coterminous year ends.
1.6Revenue
Revenue is measured at the fair value of consideration received or receivable for service or goods provided
in the course of ordinary activities, net of discounts and sales-related taxes.
Revenue for the sale of goods is recognised at the point of sale.
Revenue for the hosting of events or general admission to venues is recognised at the date at which the
event takes place. When revenue is received for an event taking place in a future reporting period, this
revenue is deferred.
Revenue for memberships and multiple week courses are recognised over the period to which the
membership relates. Where this spans across two reporting periods, revenue is apportioned between the
two reporting periods and revenue is deferred to the reporting period to which it relates.
Grant income is recognised over the period to which the underlying activities for which the grant has been
provided relate. Grants provided for the construction of tangible fixed assets are recognised over the useful
economic life of those assets.
1.7Property, plant and equipment
Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset
over its expected useful life, as follows:
Leasehold buildings (other than venues)life of lease
Fitness equipment10% to 33% per annum
Computer equipment10% to 33% per annum
Other Fixtures, fittings & equipment5% to 100% per annum
No depreciation is provided on freehold or leasehold land.
Residual values and estimated useful lives are re-assessed annually.
The directors consider that it would be inappropriate to depreciate the leases on the original venues as there is a
future obligation on Sheffield City Council to accept an assignment of the leases in exchange for forgiveness of
obliged to maintain the venues occupied under the lease structure to standards appropriate for international
sports facilities and generally in good condition to prolong their useful lives.
page 24
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
1.8Goodwill
exceeds the fair value of the identifiable net assets acquired, the excess is recorded as goodwill. If the cost of
an acquisition is less than the fair value of the identifiable net assets acquired, the difference is recognised
immediately in the income statement. Please refer to note 24 for further detail on negative goodwill.
1.9Inventories
1.10Trade and other receivables
Trade and other receivables are stated at their nominal value as reduced by appropriate allowances for
estimated credit losses.
1.11Borrowings
Borrowings are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method. Transaction costs are recognised in the income statement as incurred.
1.12Trade and other payables
1.13Tax
Sheffield City Trust is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2012 and
therefore meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the
charity is potentially exempt from tax in respect of income or capital gains received within categories covered
by Chapter 3 Part 11 Corporation Tax Act 2013 or Section 256 of the Taxation of Chargeable Gains Act 1992,
to the extent that such income or gains are applied exclusively to charitable purposes.
Sheffield International Venues Limited is the trading subsidiary of the Trust. The company has a policy of
making gift aid payments equivalent to at least its taxable profit subject to sufficient distributable reserves
being available. Therefore, it does not expect to incur any tax charges and deferred tax accounting is not
considered to be necessary.
1.14Retirement benefit costs
No retirement benefit asset or liability has been recognised in the statement of financial position as on 31
March 2023, the historic assets and liabilities of the South Yorkshire Pension Scheme were subsumed by the
Sheffield City Council South Yorkshire Pension Scheme and the group has been discharged of its net pension
liability. Prior year operating costs comprise the current service cost. Prior year finance income or cost
comprises the expected return on fund assets less the interest on fund liabilities. Prior year actuarial gains or
losses, comprising differences between the actual and expected return on defined benefit assets, changes in
fund liabilities due to experience and changes in actuarial assumptions, are recognised immediately in other
comprehensive income.
Pension costs for members of the defined contribution scheme represent contributions payable in the year.
1.15Grants
Grants received of a capital nature are capitalised and released to income over the same period in which the
associated asset is depreciated and when performance conditions have been met. Revenue grants are being
released during the appropriate period to match the related expenditure incurred and in line with any
restrictions associated with the applicable grant. The grant releases are deducted in the cashflow as a non
cash item.
1.16Leases
Lease income from operating leases where the group is a lessor is recognised in income on a straight-line
basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the
carrying amount of the underlying asset and recognised as an expense over the lease term on the same basis
page 25
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
1.17Cash and cash equivalents
Cash and cash equivalents for cash flow purposes includes cash-in-hand, cash-at-bank and bank overdrafts. In
the statement of financial position, bank overdrafts that do not have the right of set-off are included in
current liabilities.
1.18EU Endorsed International Financial Reporting Standards in issue but not yet effective
Certain new accounting standards and interpretations have been published that are not mandatory for 31
March 2023 reporting periods and have not been early adopted by the group. These standards are not
expected to have a material impact on the entity in the current or future reporting periods and on foreseeable
future transactions.
2.Revenue
The revenue of the group for the year has been derived from its principal activities, being the management of
sporting, recreational and entertainment facilities, wholly undertaken in the United Kingdom. The analysis is
as follows:
20232022
In thousands of GBP£000£000
Sales from operation of venues29,27620,120
____________
29,27620,120
____________
3.Operating costs20232022
In thousands of GBP£000£000
Employee benefits16,085(550)
Insurance582455
Repairs and maintenance4,1653,393
Marketing297391
Legal and professional334451
Auditor’s remuneration99101
Raw materials and consumables2,8231,704
Rent and rates681264
Utility costs4,1263,567
Other costs2,9691,935
_____________
36,96615,621
_____________
4.Other income20232022
In thousands of GBP£000£000
Grant Income from Sheffield City Council10,1979,011
Grants released during the period1,3371,044
Coronavirus Job Retention Scheme grant-100
____________
11,58311,207
page 26
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
5.Finance income20232022
In thousands of GBP£000£000
_____________
1039
_____________
6. Finance cost20232022
In thousands of GBP£000£000
Interest paid137 91
Interest on finance leases6577
Pension finance cost-342
_____________
2,0873,383
_____________
7.Tax20232022
In thousands of GBP£000£000
Adjustment in respect of prior periods(35)-
______________
Total current tax(35)-
Deferred tax charge
Origination and reversal of timing differences-(396)
______________
Total tax credit for the year(35)(396)
______________
Sheffield City Trust is considered to meet the definition of a charitable company for the purposes of UK
corporation tax and is therefore potentially exempt from tax in respect of gains received to the extent that
such income or gains are applied exclusively to charitable purposes.
page 27
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
7.Tax (continued)
Sheffield International Venues Limited has historically recognised deferred tax movements however given its tax
strategy of making a gift aid payment to its charitable parent, Sheffield City Trust, of any taxable profits and the
level of historical tax losses, it now considers this accounting to no longer be required.
8.Intangible Assets - Software
Total
In thousands of GBP £000
Cost
At 1 April 202247
_________
At 31 March 202347
_________
Amortisation
At 1 April 202221
Charge for year9
_________
At 31 March 202330
_________
Closing net book amount
At 31 March 202317
‗‗‗‗‗‗‗
At 1 April 202226
page 28
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
9.Property, plant and equipment (including certain right-of-use assets)
landuse land fittings &under
and buildingsequipmentconstructionTotal
In thousands of GBP£000£000£000£000£000
Cost
At 1 April 2021288173,74021,353263195,644
Additions -- 633,556 3,619
Disposals(288) - (1,735)-(2,023)
Transfers - -3,423(3,476)(53)
Transfer from ROU assets (note 10)--2,031-2,031
_________________________________________________
At 31 March 2022 & 1 April 2022-173,74025,135343199,218
Additions-- 641,7411,805
Disposals--(57)-(57)
Transfers--1,408(1,408)-
Transfer from ROU assets (note 10)--778-778
_________________________________________________
At 31 March 2023-173,74027,328676201,744
_________________________________________________
Depreciation
At 1 April 2021-30,15614,045-44,201
Charge for year -1,1402,434-3,574
Disposals--(1,733)-(1,733)
Transfer from ROU assets (note 10)--1,996-1,996
_________________________________________________
At 31 March 2022 & 1 April 2022 -31,29616,742-48,038
Charge for year-1,1403,371-4,511
Disposals--(57)-(57)
Transfer from ROU assets (note 10)--270-270
_________________________________________________
At 31 March 2023-32,43620,326-52,762
_________________________________________________
Closing net book amount
At 31 March 2023-141,3047,002676148,982
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
At 1 April 2022-142,4448,393343151,180
Within right of use land and buildings there are assets with a book value of £108,000,000 (2022: £108,000,000) which
are not being depreciated. The value of these assets will be realised in full upon exercise of the break clause contained
within the related lease.
Assets that were on a finance lease where the lease has come to an end, and the assets are now owned by the charity,
have been transferred from right of use assets to property, plant and equipment.
page 29
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
10.Right-of-use assets and leases
Amounts included in the balance sheet
In addition to the right-of-use land and buildings shown in note 9, the balance sheet shows the following
amounts relating to leases:
In thousands of GBP
Right-of-use assets
FitnessComputer
BuildingsVehiclesequipmentequipmentOtherTotal
£000£000£000£000£000£000
Cost
At 1 April 2021 861169105002,5304,817
Additions-22-53-75
Disposals-(16)---(16)
Transfer to PPE--(737)(200)(1,094)(2,031)
_________________________________________________________
At 31 March 2022 & 1 April 2022 861221733531,4362,845
Additions----240240
Disposals----(11)(11)
Transfer to PPE----(778)(778)
_________________________________________________________
At 31 March 2023 861221733538872,296
_________________________________________________________
Depreciation
At 1 April 2021 20388133611,7503,135
Charge for year9373582110327
Disposals -(12)---(12)
Transfer to PPE--(732)(200)(1,064)(1,996)
__________________________________________________________
At 31 March 2022 & 1 April 2022 29631162437961,454
Charge for year8911316391285
Disposals----(11)(11)
Transfer to PPE----(270)(270)
__________________________________________________________
At 31 March 2023 385141473066061,458
__________________________________________________________
NBV
At 31 March 202347682647281838
‗‗‗‗‗‗‗ ‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
At 1 April 2022 56519571106401,391
Lease liabilities20232022
In thousands of GBP£000 £000
Current266315
Non-current527640
____________________
793955
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
Additions to the right-of-use assets during the 2023 financial year were £240,000 (2022: £75,000). Lease liabilities
paid during the 2023 financial year were £162,000 (2022: £357,000).
page 30
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
10.Right-of-use assets and leases (Continued)
Amounts included in the statement of comprehensive income
The statement of profit or loss shows the following amounts relating to leases:
In thousands of GBP£000£000
Buildings8993
Vehicles117
Fitness equipment3135
Computer equipment6382
Others91110
____________________
285327
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
The group’s leasing activities and how these are accounted for
The group leases various properties, equipment and vehicles. Rental contracts are typically made for fixed periods
but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of
different terms and conditions.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include
the net present value of the following lease payments:
Fixed payments, less any lease incentives receivable; and
Payment and penalties for terminating the lease, if the lease term reflects the group exercising the option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases in the group, the lessee’s incremental borrowing rate is used,
being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of
similar value to the right-of-use asset in a similar economic environment with similar terms, security and
conditions. To determine the incremental borrowing rate, the group where possible, uses third-party financing
received by the individual lessee as a starting point, adjusted as necessary to reflect changes in financing
conditions since the third party financing was received.
The group is exposed to potential future increase in variable lease payments based on an index or rate, which is
not included in the lease liability until they take effect. When adjustments to lease payments based on an index or
rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over
the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for
each period.
page 31
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
10.Right-of-use assets and leases (Continued)
Right-of-use assets are measured at cost, being the initial measurement of the lease liability any additional direct
costs less any lease incentives received. Right-of-use assets are generally depreciated over the shorter of the
asset's useful life and the lease term on a straight-line basis. If the group is reasonably certain to exercise a
purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life.
The group has taken advantage of the practical expedient in the amendment to IFRS 16 for Covid related rent
concessions in respect of the one lease for which the required conditions are met. The amount recognised in the
statement of comprehensive income as a result of applying the practical expedient is £27,000 (2022: £23,000).
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets, defined
as assets with a value of less than £4,500 when new, are recognised on a straight-line basis as an expense in profit
or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT
equipment, catering equipment and small items of office furniture.
11.Inventories 20232022
In thousands of GBP £000£000
Goods for resale233216
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
The value of inventory recognised as an expense in the year was £2,028,000 (2022: £1,149,000).
12.Trade and other receivables20232022
In thousands of GBP£000£000
Current
Trade receivables883434
Prepayments and accrued income836900
Other receivables959497
____________________
2,6781,831
Non-current
Prepayments and accrued income32,49032,490
____________________
Total35,16834,321
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
Prepayments and accrued income includes £32,490,000 (2022: £32,490,000) of grant income due from Sheffield
City Council following the disposal of Don Valley Stadium and the restructuring of the finance leasing
arrangements. This debtor is expected to be settled at the date at which the bonds are settled in 2024 under the
funding arrangements referred to in note 15.
The carrying value of trade receivables is considered a reasonable approximation of fair value. All trade and other
receivables have been reviewed for indicators of impairment using the estimated credit loss method. Certain
trade receivables over 90 days old were found to be impaired and a provision of £27,000 has been recorded
accordingly.
page 32
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
12.Trade and other receivables (continued)
In addition, some of the unimpaired trade receivables are past due as at the reporting date. The age of financial
assets past due but not impaired is as follows:
In thousands of GBP20232022
£000£000
Up to three months7017
Over three months5215
____________________
12232
13.Cash at bank and in hand
In thousands of GBP20232022
£000£000
Cash at bank and in hand6,0132,968
Third party ticket money9,0365,000
____________________
15,0497,968
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
Third party ticket monies represent amounts held on behalf of third party event promotors for tickets sold, that
will be paid to the promotor when the event has taken place.
14.Trade and other payables20232022
In thousands of GBP£000£000
Other creditors including social security and other taxes11,2969,238
Accruals and deferred income5,0142,342
____________________
18,11912,914
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
Included within other creditors are amounts due to third party event promotors of £9,094,000 (2022: £7,303,000).
The carrying amount of trade and other payables approximates to their fair value.
page 33
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
15. Borrowings20232022
In thousands of GBP£000£000
Bank loans200232
Bonds17,60416,559
____________________
17,80416,791
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
Non-current
Bank loans59259
Other loans3,5133,513
Bonds-17,600
Sheffield City Council122,817106,258
____________________
126,389127,630
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
The group has four bank loans to fund the purchase of fixed assets at a rate of 4.5%, 3.87%, 3.87% and 4.9% with
an outstanding balance of £120,000, £19,000, £37,000 and £83,000 respectively, at the year end.
During 2014 the group took a five year loan of £3,500,000 from Sheffield City Council for the refurbishment of
the Utilita Arena Sheffield at an interest rate, per annum, of 2.0% above the Bank of England’s base rate and
during 2015 the group took a five year loan of £1,750,000 from Sheffield City Council for the refurbishment of
Ponds Forge International Sports Centre at an interest rate, per annum, of 2.0% above the Bank of England’s
base rate. These loans were consolidated into a combined loan of £1,575,000 in January 2019 over five years at
a rate of 2% above the Bank of England’s base rate, with a balance at 31 March 2023 of £1,313,000.
In 2020, the group received a five year loan of £1,000,000 from Sheffield City Council to assist with cashflow at
an interest rate of 2%, above the Bank of England’s base rate and during 2021 the charity received a further four
year loan of £1,200,000 from Sheffield City Council to assist with cashflow at an interest rate of 2% above the
Bank of England’s base rate. No capital repayments are now required on these loans from Sheffield City Council
until August 2024.
Under the terms of the funding agreement between the charity and Sheffield City Council, the council makes
payments bi-annually sufficient in value to enable the charity to meet its bond repayment obligations. These
receipts are repayable to Sheffield City Council in 2024. We consider the fair value of the bond to be £17,608,000
which represents the amounts due to bond holders within one year to fully settle the liability excluding related
issue costs. In 2022, the fair value was considered to be £38,236,000 which reflects the unit value of the bond
multiplied by the last market traded value.
20232022
In thousands of GBP£000£000
Maturity of bank loans & other loans
In one year or less, or on demand200232
Between 2-5 years inclusive3,5723,772
____________________
3,7724,004
____________________
On 1 March 2000 the company issued £140,425,000 of bonds at a premium of 0.719%. The bonds are carried
at amortised cost, attract interest payments of 6.25% bi-annually and are repayable at dates between 2015
and 2024. The bonds are guaranteed by Sheffield City Council. No additional bonds have been purchased or
page 34
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
16. Provisions
Dilapidation provision
A provision of £115,000 has been included for the cost of repair work required to one of the groups leased
properties, in accordance with the terms of the lease, that is due to come to an end on 17 September 2023.
Other
Acceleratedtiming20232022
tax depreciationdifferencesTotalTotal
In thousands of GBP£000£000£000£000
At 1 April 2021396(847)(451)137
Movement in year(259)(314)(573)(588)
_______________________________________
At 31 March 2022 & 1 April 2022137(1,161)(1,024)(451)
Movement in year(105)822717(573)
________________________________________
At 31 March 202332(339)(307)(1,024)
________________________________________
Recognised----
Unrecognised32(339)(307)(1,024)
________________________________________
32(339)(307)(1,024)
________________________________________
The deferred tax asset has not been recognised on the grounds that there is insufficient evidence that the asset
17.Deferred grant income
20232022
In thousands of GBP£000£000
At 1 April 202233,18031,644
Grants received2,7154,116
Released in the year(4,439)(2,580)
__________________
At 31 March 202331,45633,180
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
Current3,7152,187
Non-current27,74130,993
__________________
31,45633,180
‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗
Deferred grant income relates to grants received in relation to capital assets and revenue grants in relation to
ongoing projects. Capital grants are being released over the periods in which the related assets are being
depreciated. Revenue grants are being released during the appropriate period to match the related
expenditure incurred and in line with any restrictions associated with the applicable grant.
page 35
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
18. Commitments
The group leases various equipment and vehicles under non-cancellable operating leases. From 1 April 2019, the
group has recognised right-of-use assets for these leases, except for short term and low-value leases which are
included below, see note 10 for further information.
Total commitments under non-cancellable operating leases are as follows:
At 31 March 2023, the group had commitments to purchase fixed assets amounting to £244,000. This expenditure
will be funded by either the essential maintenance grant from Sheffield City Council or the EISS Lifecycle fund held
by Phoenix Sports Limited.
19.Movement in net defined benefit liability
Defined contribution pension scheme
The group operates a defined contribution retirement benefit scheme. The pension cost charge for the year
represents contributions payable by the group to the scheme and amounted to £360,000 (2022: £210,000).
Contributions amounting to £39,000 (2022: £35,000) were payable to the scheme at the year end and are included
in creditors.
Defined benefit pension scheme
The group contributed to a defined benefit pension scheme operated by South Yorkshire Pension Authority. On 31
March 2022, the historic assets and liabilities of the groups South Yorkshire Pension Scheme were subsumed into
the Sheffield City Council South Yorkshire Pension scheme. The group was discharged of its net liability on this
date. The net liability discharged, included in settlements in the prior year, was £12,957,000. The Trust has no
liability to the plan for other entities obligations.
The information disclosed below is in respect of the whole of the plans for which the group is either the
sponsoring employer or has been allocated a share of cost under an agreed group policy throughout the periods
shown.
page 36
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
19.Movement in net defined benefit liability (continued)
Movements in present value of defined benefit obligation
______
______
-
-
______
______
Movements in fair value of plan assets
______
______
______
______
Expense recognised in the statement of comprehensive income
______
______
______
______
page 37
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
19.Movement in net defined benefit liability (continued)
The following amounts were recognised in other comprehensive income
The total amount recognised in other comprehensive income in respect of actuarial gains is £nil (2022: gain
£3,677,000).
The fair value of the plan assets was as follows:
______
______
______
_______
-
4,700
______
______
Principal actuarial assumptions (expressed as weighted averages) at the period end were as follows:
History of plans
The history of the plans for the current and prior periods is as follows:
Statement of financial position
______
______
______
______
______
______
______
______
______
______
page 38
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
19.Movement in net defined benefit liability (continued)
History of plans (continued)
Experience adjustments
2023
2022
2021
2020
2019
%
%
%
%
%
-
-
14.1
(8.4)
6.1
-
-
14.2
(8.7)
3.0
______
______
______
______
______
The group expects to contribute at a rate of 17.5% in respect of active members of its defined benefit plan in the
next financial year, the assets and liabilities of which have been subsumed within the Sheffield City Council South
Yorkshire Pension Authority Scheme.
On retirement, individuals that were members of the defined benefit pension scheme prior to April 2008 receive a
cash lump sum on retirement, which they can elect to increase to a maximum of 25% of their pensionable pay and
will receive the remainder of their pension in equal instalments over the remainder of their life, with 50% of their
annual pension then being paid to their spouse. Members of the scheme joining after April 2008, do not
automatically receive a lump sum on retirement, but can elect to receive up to 25% of their pensionable pay, and
will receive the remainder of their pension in equal instalments over the remainder of their life, with 50% of their
annual pension then being paid to their spouse.
Other entities responsibilities for governance of the plan
The LGPS is a funded, statutory, public sector pension scheme administered, managed and funded at a local level.
Sheffield City Trust is an admission body for the purpose of the LGPS and the scheme in which it participates
further to the admission agreement entered into with the Administering Authority.
The Administering Authority governs each regional LGPS with the support from Local Pension Board and the
Scheme Advisory Board. Nonetheless, it is the Administering Authority who has the primary responsibility for the
management and administration of its LGPS fund.
Under relevant legislation and policy, the underlying investment fund of the Administering Authority is
consolidated into a larger regional fund under a single investment body. The funds administered by the South
Yorkshire Pension Authority are consolidated into the Border to Coasts fund.
The Local Pension Board assists the Administering Authority to secure compliance with the LGPS regulatory
framework and generally to ensure the efficient and effective governance and administration of the LGPS. The
Scheme Advisory Board is a single Board existing at national level with responsibility for providing advice to the
Secretary of State on the desirability of making future changes to the LGPS. The Board also provides advice to the
Administering Authority and Local Pension Board in relation to administration and management of the LGPS and
its funds.
In addition to the above, the Pensions Regulator is responsible for setting standards of governance and
administration in public service pension schemes and has extended regulatory oversight of such schemes.
page 39
SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
20.Related party transactions
Remuneration amounting to £489,000 (2022: £468,000) was paid to directors and other key management during
the year. In addition, the charity made contributions of £56,000 (2022: £58,000) to defined benefit schemes in
21Significant accounting estimates and judgements
In preparing these financial statements, the directors have had to make the following judgements:
Determine whether there are indicators of impairment of the company’s non-current assets. Factors taken
into consideration in reaching such a decision include the economic viability and expected future financial
performance of the asset and where it is a component of a larger cash-generating unit, the viability and
expected future performance of that unit.
Going Concern; As disclosed in note 1, the financial viability of the Trust is dependent on both continued
support from the council (working capital and venue investment) and on achieving the trading assumptions in
the business plan to December 2024. The operating environment presents a number of challenges which
could contribute to the Trust failing to achieve its operational cash flow forecasts. The plan is monitored
closely by the Trustees.
Other key sources of estimation uncertainty are:
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where
appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending
on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life
cycles and maintenance programmes are taken into account. Residual value assessments consider issues
such as future market conditions, the remaining life of the asset and projected disposal values.
Defined benefit pension liabilities are calculated using assumptions and estimates over key metrics and
drivers of change. The group relies upon an expert third party, an actuary, to calculate the impact of these
assumptions upon any pension liability. Management assesses the adequacy of assumptions used on an
annual basis. The assumptions used have been included in note 19.
22.Risk management policies
The group’s financial risk is managed by the directors and focuses on actively securing the group’s short to
medium term cash flows. The most significant financial risks to which the group is exposed are described below.
•Credit risk - The group’s exposure to credit risk is primarily attributable to its trade and other receivables
which are stated in the balance sheet net of doubtful receivables. Details are shown in note 12 to the
•Liquidity risk - The group’s policy is to ensure continuity of funding by carefully monitoring cash outflows
due in the normal course of business. The maturity of borrowings is shown below whilst short term
flexibility is achieved by overdraft facilities.
Financial assets
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SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
22.Risk management policies (continued)
The carrying value of financial assets is the same as their fair value.
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the effect of netting agreements:
Interest rate risk - The group’s policy to manage interest rate risk is to regularly review the costs of capital and to
maintain an appropriate mix between fixed and floating rate borrowings.
Per the terms of each agreement, an event of default includes failure by a party to make payment terms when due or
failure by a party to perform any obligation required by the agreement.
23.Subsidiary undertakings (all registered in England and Wales)
*In respect of Phoenix Sports Limited and 7 Hills Leisure Trust, whilst their corporate structures are limited by
guarantee they are treated as investments by the Group on the basis of control.
**7 Hills Commercial is held indirectly by 7 Hills Leisure Trust
***SIV Enterprises is held indirectly by Sheffield International Venues Limited
On 29 March 2023, 7 Hills Leisure Trust, 7 Hills Commercial Limited and SIV Enterprises Limited entered into Members
Voluntary Liquidations.
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SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
24.Reconciliation to IFRS
These non-statutory consolidated financial statements have been prepared under International Financial
Reporting Standards (IFRS) as adopted by the European Union.
The group’s statutory consolidated financial statements have been prepared in accordance with United Kingdom
Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in
the United Kingdom and Republic of Ireland” and the related charities SORP (Charities SORP (FRS102)). UK
charitable companies are not permitted to adopt IFRS when preparing their statutory accounts.
The reconciliation to non-statutory IFRS reporting has resulted in a number of changes from the statutory financial
statements, both in terms of presentation and accounting principles.
•Presentation
The Charities SORP (FRS 102) requires charitable companies to present a statement of financial activities
broadly analysed between incoming resources and resources expended. Incoming resources have been re-
analysed as appropriate between revenue, other income and finance income in the consolidated statement
of comprehensive income prepared under IFRS. Similarly, resources expended have been re-analysed
between operating costs and finance costs. There is no difference between Charities SORP (FRS 102) and
IFRS in respect of the treatment of tax and pension scheme actuarial gains and losses. UK company law
prescribes the format for the group balance sheet whereas the consolidated financial position analyses the
year end position between total assets (non-current and current) and total liabilities (non-current and
current).
•Accounting principles
The main changes in accounting principles that have a significant impact on the amounts reported under
Charities SORP (FRS 102) and IFRS are as follows:
a)Negative goodwill
The Charities SORP (FRS 102) requires negative goodwill to be carried on the balance sheet and
released over the same period as the assets/costs to which it relates.
IFRS requires any negative goodwill to be recognised immediately in the income statement.
b)Grants
UK charities are required to recognise grants received as incoming resources and therefore as part
of the fund balance, irrespective of whether they are capital or revenue grants. IFRS requires
grants received of a capital nature to be capitalised and released to income over the same period
in which the associated asset is depreciated.
c)Leases
The Charities SORP (FRS102) requires operating leases for lessees to be recognised as an expense
in the Statement of Financial Activities on a straight-line basis over the life of the lease. IFRS 16
requires operating leases and other contracts that contain a lease to be recognised on the balance
sheet as a right to use asset, with a corresponding finance lease creditor. Depreciation and finance
lease interest are charged to the income statement over the life of the asset/lease.
d)Sheffield City Council funding – deferred income
The Charities SORP (FRS 102) requires funding to be taken through the Statement Of Financial
Activity immediately upon receipt. IFRS requires the funding to be deferred and released in the
period to which it relates.
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SHEFFIELD CITY TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 MARCH 2023
24.Reconciliation to IFRS (continued)
Income reconciliation
The reconciliation of net income between IFRS and the Charities SORP (FRS 102) is as follows:
20232022
In thousands of GBP£000£000
Net income per Charities SORP (FRS 102) accounts2,53314,475
Amortisation of negative goodwill(205)(205)
Grants received(2,715)(4,116)
Deferred grant release4,4392,580
IFRS 16 net adjustment(5)(6)
Funding deferred income(2,103)-
__________
Net profit per IFRS accounts1,94412,728
__________
Net assets reconciliation
Net assets per Charities SORP (FRS 102) accounts32,86330,330
Negative goodwill through income statement6,3686,573
Deferred grant re-classified(31,456)(33,180)
IFRS 16 adjustment(61)(56)
Funding deferred income(2,103)-
__________
Net assets per IFRS accounts5,6113,667
__________
25.Post balance sheet events
After the year end, the charity gave notice in respect of its operation and management of Westfield Sports Centre.
As such, the operation and management of this venue will pass to another operator from January 2024.
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