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REGISTERED COMPANY NUMBER: IP27793R (England and Wales) REGISTERED CHARITY NUMBER: XR 43398

GREENWICH LEISURE LIMITED REPORT OF THE COMMITTEE OF MANAGEMENT AND SUMMARY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014

CONTENTS

Report of the Committee of Management .................................................. 3 to 30

Independent Auditor’s statement to the members of GLL ................................ 31

Summary Financial Statements:

Balance Sheet ............................................................................................ 33

Cash flow statement .................................................................................. 33

Statement of Financial Activities .............................................................. 34

(incorporating the Income & Expenditure Statement)

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SECTION 1. REPORT OF THE COMMITTEE OF MANAGEMENT The Committee of Management present their report with the financial statements of the Society for the year ended 31 December 2014. The Committee of Management have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' issued in March 2005.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number: IP27793R (England and Wales) Registered Charity number: XR43398 Registered office Middlegate House The Royal Arsenal London SE18 6SX

Committee of Management J M Sesnan S Ward G Kirk Resigned & re-appointed on 25th June 2014 T Wallace Resigned on 25th June 2014 S Wright J Rham A Ritchie Resigned & re-appointed on 25th June 2014 M Perren L Smith J Davenport Resigned on 25th June 2014 P Brooks H Singh Resigned on 11th June 2014 M Hayes Resigned on 11th June 2014 A Bindon Resigned & re-appointed on 25th June 2014 B Brown Resigned & re-appointed on 25th June 2014 R Durrant Resigned & re-appointed on 25th June 2014 E Anderson Appointed on 25th June 2014 E Northworthy Appointed on 25th June 2014 J Smith Appointed on 11th June 2014 L Bird Appointed on 11th June 2014 Secretary P Donnay

Bankers Coop Bank Lloyds Bank 14 Hythe Street Faryners House Dartford 25 Monument Street DA1 1BD London EC3R 8BQ

Auditors Clair Rayner ACA DChA (Senior Statutory Auditor) McCabe Ford Williams Statutory Auditors and Chartered Accountants Bank Chambers, 1 Central Avenue, SITTINGBOURNE ME10 4AE

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Greenwich Leisure Limited, hereinafter referred to as GLL, is an Exempt Charity and a Registered Society under the Co-operative and Community Benefit Societies Act 2014. The Society operates for the benefit of the wider communities we serve and does not distribute profit. Any surplus is applied solely to a general reserve for the continuation and development of the Society. GLL was established in 1993 with a portfolio of seven leisure centres in one Partnership. In 2014 GLL directly managed over 200 facilities including public leisure centres, play centres and libraries in partnership with 37 local councils and other organisations. The turnover of the Society in 2014 was £163m. GLL is widely acknowledged to be the UK’s leading charitable social enterprise delivering leisure, health and community services. GLL is governed by a Board of Trustees appointed by the annual general meeting. Our governing document is our rules, first registered in 1993, and most recently revised and re-registered with the Financial Conduct Authority on the 17th February 2010. The GLL Board of Trustees has representation from a number of stakeholders including Customers, Local Authority members, Independent skilled professionals and significantly, the Workforce. This stakeholder mix has helped create empowerment, enthusiasm and ownership at all levels of the organisation.

The governance structure reporting to the Board includes the:

• Executive Sub Committee for urgent, investment and minor decisions. • Audit Sub Committee responsible for managing GLL’s risk register • Remuneration Sub Committee responsible for the employment and terms and conditions of the

executive directors and the general pay and remuneration terms of all employees (No members of staff can sit on this sub committee)

The Board of Trustees reviews and sets the Strategy and Objectives annually in the context of the five year corporate plan. It meets quarterly to review progress and consider additional strategy and policy decisions. GLL operates a risk register to record any potential risk the society may face. The risk register is a working document that is updated on an ongoing basis with mitigating strategies as necessary. The register is reviewed by the Audit Sub Committee every quarter. Day to day management and delivery of GLL’s annual corporate plan is delegated to the Managing Director and the Executive Director team. The Managing Director reports to the Board of Trustees and is a full ex officio member of the Board. Recruitment and appointment of new Board Members In exercising its powers to nominate, appoint, reappoint, elect, re-elect, approve and dismiss Members, the Society Members seek to ensure that the Board is representative of the local community and also comprises persons with a broad range of skills who are likely to contribute to the Society's success. Induction and training of new Board Members Board Members follow an induction and familiarisation programme as required, and attend development sessions to discuss improvement proposals, which also feature externally facilitated sessions with leisure industry representatives and health professionals.

Main Board of Trustees

Audit Sub Committee

Executive Sub Committee

Remuneration Sub Committee

(external independent members only)

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Staff Empowerment All eligible staff in GLL are encouraged to join the Society as voting members. This leads to a high level of commitment, empowerment and motivation resulting in an improved quality of service to the community. GLL also enjoys remarkably low absence levels. Currently 70% of eligible staff have opted to join the Society. OBJECTIVES AND ACTIVITIES The objects of the Society are:

(a) to provide or assist in the provision of facilities and services for the public benefit for recreational, sporting or other leisure time occupation in the interests of social welfare, healthy living and education, such facilities being provided to the public at large save that special facilities may be provided for persons who by reason of their youth, age, infirmity or disability, poverty or social or economic circumstances may have need of special facilities and services, and /or

(b) to promote community participation in healthy living, and/or (c) to advance the education of the public in the benefits of healthy lifestyles, and /or (d) to advance the arts, culture and / or heritage, and / or (e) to provide support services relating to the above, and / or (f) to provide consultancy and advise to public, sporting and charitable organisations, and / or (g) such other charitable purposes beneficial to the community consistent with the objects above

as the Trustees shall in their absolute discretion determine. In 2014, GLL worked in direct Partnership with the following Councils and organisations delivering some of their public services including leisure centres, libraries, play centres and children centres::

• Black Prince Trust • Bridgend Borough Council • Cambridge City Council • Chiltern District Council • City of Westminster • City of York • Epsom and Ewell Borough Council • Jubilee Halls Trust • Greater London Assembly (Crystal Palace National Sports Centre) • Henley Town Council • London Legacy Development Corporation • London Borough of Barnet • London Borough of Camden • London Borough of Ealing • London Borough of Lambeth • London Borough of Hackney • London Borough of Hammersmith & Fulham • London Borough of Hillingdon • London Borough of Islington • London Borough of Merton • London Borough of Tower Hamlets • London Borough of Waltham Forest • London Borough of Wandsworth • London Playing Fields Foundation (Peter May Leisure Centre) • Maplewood School • Millbrook School • Prestwood Sport and Leisure Association • Reading Borough Council • Reigate and Bansted Borough Council • Royal Borough of Greenwich

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• Royal Borough of Kensington & Chelsea • Rugby Borough Council • South Bucks District Council • South Oxfordshire District Council • Swindon Borough Council • Vale of White Horse District Council • West Oxfordshire District Council

This partnership approach with the various councils and organisations has been a key plank of our success. However, each relationship is underpinned by a formal contract and each contract is subject to termination dates and possible tendering for renewal. In addition, GLL worked in partnership with fellow social enterprises: Freedom Leisure Limited in delivering the services of 11 public leisure centres in the South and South East for the following Councils:

• Crawley Borough Council • Guildford Borough Council • Mid Sussex District Council (Contract ended during 2014) • Woking Borough Council

Halo Leisure Limited in delivering services in 8 leisure centres for Bridgend County Borough Council. Outside of partnership arrangements, GLL holds and manages a number of “stand alone” facilities including:

- Charlton Lido under a 97 year lease (redeveloped over 2013/14) - 3 stand alone affordable health and fitness facilities under long term leases (Bexleyheath,

Sidcup & Romford) with 4 more planned for 2015. - Barking Sporthouse under long term lease

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CORE PURPOSE GLL’s overarching aim is to deliver sustainable and affordable provision of facilities and services for the public benefit for recreational, sporting, cultural and other leisure time occupation in the interest of social welfare, healthy living and education. GLL has adopted Four Pillars to frame our vision and mission:

1. Service Excellence “BETTER SERVICE” 2. Strong Business “BETTER BUSINESS” 3. Motivated, Engaged and Well Trained Staff “BETTER PEOPLE” 4. Social Impact “BETTER COMMUNITIES”

We seek to drive our business across all four of these objectives using a balanced scorecard to track our progress and ensuring our Charitable Objectives are continuously met.

Service Excellence “BETTER SERVICE” GLL aims to:

- Operate facilities that are accessible by all sections of the community save that special facilities may be provided for persons who by reason of their youth, age, infirmity or disability, poverty or social or economic circumstances may have need of special facilities and services

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

- Deliver services and facilities that are consistently rated as excellent as well as utilise quality benchmarks such as Quest and the Customer Service Excellence Standard

Strong Business “BETTER BUSINESS” GLL aims to:

- Achieve stability and growth in our existing operations whilst developing new products and markets including our online portals

- Continue to improve efficiencies and effectiveness, making sure our available resources are maximised and put to best use

- Develop new business opportunities and partnerships where they can bring added value - Continue to build on our existing partnerships for the long term - Continue to invest into the leisure centre and library buildings - Build our asset portfolio

Motivated, Engaged and Well Trained Staff “BETTER PEOPLE” GLL aims to:

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

- Work with employment agencies and Sector Skills Councils to provide long term career opportunities for local people within sport, leisure and cultural services

- Develop our staff through continuous professional development through our own industry accredited training college (the London Leisure College) and a suite of career-long academies

Social Impact “BETTER COMMUNITIES” GLL aims to:

- Work with volunteers, clubs, national governing bodies, health & social service organisations to provide improved lifestyles, health and education for local communities

- Deliver across the environmental and sustainability agenda - Promote the values that Social Enterprise can bring - Promote the Olympic and Paralympic Games legacy agendas and ideals and to maximise the

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

programme and associated partner schemes - As a charitable organisation, GLL reinvests ALL surpluses into delivering our social aims.

Wider Partnerships GLL works closely with or seeks to have a relationship with many other partners in addition to our local authority partners, these include:

- The London Mayors office and Greater London Assembly - Sports and Recreation Trusts Association (Sporta) - London Legacy Development Corporation (LLDC) - The Sector Skills Council, SkillsActive and the National Skills Academy - Sport England and the London ProActives Network - Greenwich, Newham and Hackney Community Colleges - Social Enterprise London (SEL) and the Social Enterprise Coalition (SE UK) - UK Active (FIA) and CIMPSA - British Swimming / ASA, British Gymnastics, GB Basketball, British Basketball League, England

Basketball, GB Handball, England Netball, UK Athletics, England Athletics, Badminton England, Volleyball England, British Fencing, Squash England and other UK Sports Governing Bodies

We aim to support local and government initiatives that promote the development of services for the benefit of the wider community particularly in the areas of Sport, Health, cultural and Physical Activity. These aims and objectives are delivered through a range of strategies that are listed in GLL’s annual and 5 year Corporate Plans. These plans are managed by the Executive Director team and reviewed by the Board.

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ACHIEVEMENTS AND PERFORMANCE GLL continued the previous year’s momentum with a wide range of achievements and improved performance. With continued growth, mergers and the addition of new partnerships to the GLL family, the following are some of the key highlights and achievements for the year:

• The London Aquatics Centres was opened to the public in March and has outstanding user numbers in its first 10 months of operation.

• The FINA Diving World Series was the first international event to be hosted at the London Aquatics Centre since the London 2012 Olympics and Paralympic Games.

• £500k of funding from Sport England was secured to develop an extreme sports zone at Sporthouse which will target young people and open early 2015.

• £200k of National Lottery funding was secured to support the ‘For the Girls, by the Girls’ project which aims to encourage inactive girls and women aged between 14-25 to take part in physical activity.

• We were successfully reaccredited to the Carbon Trust Standard and ISO 14001. • The London City Read 2014 took place in our Wandsworth Partnership and aimed to bring

reading to life for London residents. The libraries hosted author events for children, filming, language events and exchange letters between schools.

• In April we entered into a new 15 year partnership with the London Borough of Islington to manage their leisure service which will see over £10m of investment on future improvements.

• In September we entered into a new 10 year partnership with South Oxfordshire and Vale of White Horse District Councils.

• We were awarded a 3 year partnership to manage 10 Children’s Centres in East and South Greenwich which further expands the portfolio of services GLL manage.

• We secured a 3½ year partnership with Manchester City Council in October. The partnership notably includes Manchester Aquatics Centre, host of the 2002 Manchester Commonwealth Games, which adds to GLL’s legacy venues.

• We were awarded a 25 year partnership with Swindon Borough Council which commenced in November. The partnership is an asset transfer and includes 7 leisure centres .

• We announced a merger with Carlisle Leisure Limited. From February 2015 GLL will operate all the leisure facilities in Carlisle and Allerdale.

• We secured a 13 year partnership with York City Council to operate the new York Community Stadium and Leisure Complex, Energise Fitness Centre and Yearsley Pool which starts mid 2015.

• We took ownership of Barking Sporthouse and Gym, one of only three newly built training venues for the London 2012 Olympic and Paralympic Games. It also houses the largest sports hall in the UK.

• The new state-of-the-art facility Pancras Square Leisure in Camden was successfully launched, and forms part of a wider Council service centre and library.

• We opened the £14.2m West Norwood Health and Fitness Community Centre built on the site of the formerly unused Norwood Hall.

In summary, 2014 has been another successful year that has seen GLL continue to grow and deliver the key requirements set out under our Corporate Plan Four Pillars.

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FINANCIAL REVIEW The results for the year 2014 (January 1st - December 31st) are set out within the financial statements. Overall GLL overachieved on its financial targets. Turnover grew by 22% in 2014 compared with 2013 to £163m. The net trading surplus from operating activities was £3.3 million for the year representing a 2% margin. Other key performance indicators:

• Total staff cost to income was 50.6% (2008 – 55.7%; 2009 – 52.8%; 2010 – 53.5%; 2011 – 52.1%; 2012 - 52.1%; 2013 – 51.5%).

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

Reserves Policy and Social funds: The Board has considered the risks and opportunities and reviewed the level of cash reserves which it deems prudent to maintain. The funds held are considered adequate for the coming year. A strategy to increase the Company’s cash reserves and asset portfolio over the coming years has been adopted by the Board to support investment plans and protect the organisation against future risks. GLL will evaluate all opportunities as they arise with an aim to build our asset portfolio over time. At 31 December 2014, the Society had accumulated cash balance and working capital of £20.7m. The Society is in a relatively favourable cash flow position because we receive some of our income in advance of expenditure. The Committee of Management recognise the need for a level of financial reserves that will:

1. Allow for planned investment and other similar purposes; 2. Allow for cyclical maintenance expenditure which the Society has an obligation to incur under

various property leases; and 3. Shield the Society from the possibility of adverse unforeseen circumstances.

These unforeseen circumstances include a number of specific events that have been identified in the Society’s Risk Register. Social Bond Issue As reported in the previous year’s account, GLL with sustainable bank Triodos successfully raised £5 million of capital funds through a social bond issue in 2013. The five-year bond pays 5% gross fixed interest per year. Investors were split evenly between retail (54%) and institutional investors (46%) with support from the City of London Corporation Social Investment Fund, Rathbone Ethical Bond Fund and the Bank Workers Charity. The minimum investment was £2,000 or £200 for GLL employees. As part of the bond issue and to provide comfort to investors, 2 financial covenants were put in place. We are pleased to report against these below: Net Asset Covenant The Bonds incorporates a Net Asset Covenant which is designed to ensure that the Bond liability is covered at least two times by the unrestricted net asset value of the Society. The rationale for the Net Asset Covenant is to provide comfort to Bondholders by ensuring that GLL retains sufficient ability to liquidate or re-finance its assets to repay the Bonds at any time if necessary.

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As at the 31st December, the bond liability was covered 2.1 times by the unrestricted net asset value of the Society. This exceeds the covenant target. The drop in net asset cover is due to the FRS17 accounting disclosures. Bond Interest Cover Covenant The Bonds also include a Bond Interest Cover Covenant which is designed to ensure that the annual Bond interest payable is covered at least five times by available surpluses. The surplus declared for 2014 covers the annual bond interest by more than 16 times and thus comfortably exceeds the covenant target. Pensions Disclosures The FRS17 pension liability disclosed on the balance sheet has jumped from £11m to £20.45m. This is mainly due to the change in discount rate. These pension disclosures relate to Defined Benefit schemes GLL is a member (namely 9 admissions agreements into the Local Government Pension Schemes, 1 agreement into the London Pension Fund Authority scheme and membership into the Citrus plan, a comparable DB scheme) Pensions valuation and disclosures is a difficult and sometimes controversial topic but it is none the less an important area that needs to be explained. It is important to appreciate how the LGPS and other DB pension schemes work and how ongoing contributions requirements are calculated to ensure the scheme remain or become fully funded in the long term. FRS17 is an accounting standard in relation to the calculation and disclosure of company pension scheme liabilities. It requires that employers make full provision for all pension scheme liabilities on their balance sheet – both in respect of any outstanding employer contributions (there aren’t any) and (more significantly) any attributable share of the pension scheme actuarial deficit in respect of defined benefit schemes. The FRS17 pensions liability calculation used for accounting purposes are based largely on the actuarial Ongoing Basis calculations (such as inflation, life expectancy etc) but crucially differ in one key respect – that of the discount factor used to arrive at net present value of any surplus or deficit. Whereas the “Ongoing Basis” uses estimated actuarial investment returns based on past and expected future performance, the FRS17 calculation uses a return based specifically on AA rated Government gilts. In recent years, the FRS17 calculation has resulted in a significantly lower discount factor than the Ongoing Basis – and therefore much higher net present pension scheme deficits. It is therefore quite common for an organisation like GLL to take on a new local authority contract and a fully funded pension scheme liability under the Ongoing Basis only to find that this gives rise to a significant FRS17 deficit (which needs full provision in the accounts) due to the specific FRS17 discount factor required to be used. The FRS17 liability is therefore based on the latest tri-annual Ongoing Basis calculations but is re-calculated each year for the purposes of the annual accounts by the scheme actuaries based on prevailing discount factors. The FRS17 discount factor used dropped by 0.9% from 2013 causing the significant increase in the deficit disclosures on the balance sheet for 2014. Future employer contributions are calculated at each tri-annual actuarial valuation. The actuaries calculate the scheme surplus or deficit based on prevailing assumptions around returns, inflation, discount factors, life expectancy etc and then calculate the employer contribution required to a) maintain and provide for current and future pensions and b) reduce any deficit over time. The employer contributions required are communicated to the employers and remain in place until the next tri-annual valuation. For all LPGS, the last tri-annual actuarial valuation was carried out in 2013/14 and new rates set for 3 years from April 2014.

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The employer contribution rates are therefore established by the actuaries on the Ongoing Basis and have no direct linkage to the FRS17 calculations or provisions. To put it another way, a change in the FRS17 provision does not on its own impact the employer contribution. A few key points to note:

• GLL is up to date with all required employer contributions in all of its schemes. • The majority of GLL’s employees are members of various LGPS schemes under admissions

agreements – these are subject to tri-annual actuarial valuations which then establish the actuarial surplus or deficit and the required ongoing employer contribution rates.

• With a number of these schemes, GLL benefits from indemnities from the local authority which means GLL has no liability for any scheme deficit in the event of a termination of the contract which gave rise to the original transfer of staff to GLL. Regardless of these indemnities and because GLL has the risk on fluctuating employer contributions (unless capped), the deficits still have to be disclosed on the balance sheet in accordance with FRS17.

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

• FRS17 requires a different method of calculating a pension scheme deficit – based on AA rated bond yields rather than actuarial forecast investment returns. Due to this, FRS17 gives rise to significantly higher deficit calculations for accounting purposes – however it is important to understand that FRS17 is not the recognised actuarial method to calculate the contribution required and almost certainly overstates the actuarial liability in the accounts.

• GLL’s required employer contributions only change every three years based on the tri-annual actuarial valuation on the Ongoing Basis. Changes to the annual FRS17 valuation do not impact GLL’s employer contribution.

• Government bond yields (on which the FRS17 discount factor calculations are based) are at extremely low levels – this gives rise to higher net present pension scheme deficits. It seems more likely that discount factors will increase rather than decrease further in future – which should mean deficits are more likely to shrink rather than increase.

• GLL does have joint and several liability under most LGPSs in which its employees are members – although we believe that the major employer (i.e. the local authority) provides an indemnity to third parties against the failure of other third party employers.

In order to illustrate the differences between the valuation methods, GLL commissioned the actuaries to evaluate the position of the funds under both “FRS17” for the accounts and under the “ongoing basis” method and assumptions for DB schemes. The differences are shown below (where an ongoing basis valuation was not obtained, the FRS17 figure is included for total comparison purposes): Pension Fund (£'000) FRS17 Ongoing Basis Difference LPFA (2,457) (697) 1,760 Royal County of Berkshire LGPS (833) (113) 720 London Borough of Barnet LGPS (191) 868 1,059 London Borough of Ealing LPGS (40) (40) 0 CITRUS Pension Plan (198) (210) (12) London Borough of Camden LPGS (237) (86) 151 London Borough of Tower Hamlets LPGS (228) (228) 0 London Borough of Merton LGPS (568) (182) 386 Royal Borough of Greenwich LGPS (multiple agreements) (14,840) (1,991) 12,849 Wiltshire LGPS (Swindon) (580) (580) 0 Northamptonshire LGPS (Cambridge) (281) (135) 146 Total (20,453) (3,394) 17,059

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

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SOCIAL IMPACT AND PUBLIC BENEFIT

GLL is the UK’s largest leisure and cultural charitable social enterprise, operating over 200 facilities with a diverse workforce of 8,500. Our inherent social ethos, linked to our charitable objectives, ensures that accessibility, affordability and equality are at the heart of our community provision. In 2014, GLL welcomed in excess of 39 million visits from users and spectators participating in a wide range of activities. GLL’s Primary Activity Increasing participation in sport and physical activity is identified as the golden thread across all of GLL’s divisions and services. GLL’s ambition is for more people to engage with its services, more often. Increasing participation in sport and physical activity achieves outcomes which support all of GLL’s four Business Pillars:

• Better Communities: Improving access to service, achieving social impact goals, reducing inequalities, Promoting empowerment, integration, cohesion, health and wellbeing.

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

• Better People: Creating new opportunities for employment, continuous professional development and job satisfaction. Encouraging staff to give back to their communities.

• Better Service: Engaging new users, retaining existing users; providing better value and increasing choice through varied programmes.

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

• We exist to make community services and spaces better for everyone. That means providing access to quality community leisure and fitness facilities - and more - at a price everyone can afford.

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• We’re a charitable social enterprise, which means we work for the benefit of everyone: the public, the communities we work in, the environment, our staff and our partners

• We promote healthy and active lifestyles, giving communities access to facilities that help improve their health and happiness through participation in activities. It could be gyms, libraries, playgrounds, children’s centres even huge, world-class venues such as the London Aquatic Centre and Crystal Palace National Sports Centre. We offer a great variety.

• As a charitable social enterprise, we invest in our communities. And it’s not just money: we also invest time and effort in encouraging everyone to take advantage of our services.

GLL continues to strive to be the best at delivering social impact across all our partnerships. This social delivery is a key ethos of the organisation and a reflection of our commitment to the communities we serve. Achieving Better Communities Through the promotion, provision and delivery of quality community services, GLL will empower the local communities in which we operate to achieve a better quality of life:

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

• Reduce inequalities and improve access by investing in services and facilities • Nurture achievements and performance pathways through high quality services.

Outlined in this section of the business review are highlights of the programmes delivered in 2014 as well as some key performance indicators. In addition to day to day delivery of community programmes through the local staff teams of each facility we operate, GLL has a dedicated team of Community Sport Managers and Sport Specialists whose purpose is to reach out into the communities we serve and deliver targeted specific programmes. Outcomes for Better Communities The Sport and Participation team strive to deliver programmes that provide a clear framework for delivery and that attain five strategic outcomes. These five outcomes are universal ambitions adopted by GLL for everyone, whatever their background or circumstances. 1. Healthy and Active Communities: Enjoying good physical and mental health and living a healthy lifestyle. GLL’s activities support physical, mental and emotional wellbeing and can sign post vulnerable people to services that promote health and positive attitudes. 2. Safe Communities: Protected from harm and neglect. • GLL has policies, systems and training to ensure that customers and staff are: • Safe from maltreatment, neglect, violence and sexual exploitation • Safe from accidental injury and death • Safe from bullying and discrimination • Safe from crime and anti-social behaviour • Are cared for in a safe and secure environment 3. Communities which enjoy and achieve: Getting the most out of life and developing skills. For GLL it is about providing opportunity, building skills and supporting development in work and at leisure: • Building confidence • Talent development • Support and complement education • Achieve personal and social development • Encourage and enjoy recreation and sport

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4. Actively Engaged Communities: Actively engaged in positive activities. Our Customers have a say in how their services are delivered and participate in sport and physical activities which benefit themselves and their community. This includes: • Encouraging decision making and support for their community and environment • Engaging in law-abiding and positive behaviour • Developing positive relationships and choose not to bully and discriminate • Developing self-confidence and successfully dealing with significant life changes and challenges • Developing enterprising behaviour

5. Inclusive Communities and accessible services: Not being prevented by economic disadvantage and inequalities from accessing services. GLL provides services that: • Are value for money • Are targeted to meet the needs of those who may be excluded • Provide routes to further education, employment or training. • Are inclusive • Bring people together

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The Sport and Community Participation team delivers the following programmes and support matching these outcomes. Improving health and wellbeing by increasing participation in positive and physical activities

Service

Healthy & Active

Safe Enjoy & Achieve

Actively Engaged

Inclusive & Accessible

For The Girls

Informal Physical Activity Referrals

Disability sport sessions

Club Sessions & Club Games (+55)

Be inspired Events and Tasters

Reducing inequalities by Improving access to and investment in services and facilities

Service

Healthy & Active

Safe Enjoy & Achieve

Actively Engaged

Inclusive & Accessible

Better Inclusive Disab

Free Swimming

Concessions Memberships

Apprenticeships

Diversionary programmes

GLL Sport Foundation

Nurturing achievements and performance through high quality services and pathways

Service

Healthy & Active

Safe Enjoy & Achieve

Actively Engaged

Inclusive & Accessible

GLL Sport Foundation

School swimming

Sport Development

Lessons & Courses

Disability sport

Volunteering/Work placements

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Highlights for 2014 include:

GLL Sport Foundation

During 2014, the GLL Sport Foundation continued to grow and has become one of the Country’s largest independent talent development schemes for young sports people. The GLL Sport Foundation has extended its working partnership with SportsAid and numerous National Governing Bodies of Sport to ensure that our programme fits with National Sport Development pathways for young talented athletes. More than 1,500 talented young athletes benefitted from a £1m award pot thanks to GLL’s athlete support programme the GLL Sport Foundation (GSF) 37 GSF supported athletes competed at the 2014 Glasgow Commonwealth Games this year winning a combined total of 19 medals. GSF athletes won 5 gold medals, 6 silver and 8 bronze medals.

Community engagement & events

We continued to develop and grow a range of attractive and high quality leisure centre based sports lessons & courses including Swimming, Athletics, Gymnastics, Basketball, Football and Racquets with 92,000 participants receiving high quality coaching from beginner, improver and performance level every week. GLL is committed to actively promote and deliver Water Safety Lessons to all pupils who access our school swimming programme. During RLSS Drowning Prevention Week we delivered Water Safety lessons to over 40,000 pupils in primary and secondary schools. GLL worked with Reach and Teach Basketball to support a community based Central Basketball League. The league caters for ages 12 to 23 year olds and is a mix of female and male participants. 270 hours of total court time was delivered across 4 venues (Britannia Leisure Centre, Canons Leisure Centre, The Copper Box Arena and Crystal Palace National Sport Centre). The league played host to 85 teams in the CBL with over 700 players taking part. GLL hosted and supported over 400 community events throughout 2014. Examples include:

• Supporting the London Mini Marathon and providing a warm up to over 700 competitors

• Hosting ‘Be Inspired’ events, that aim to encourage the next generation of young athletes

• Over 60 GLL centres hosted UK Active’s ‘Power Half Hours’ as part of National Fitness Day, the largest celebration of physical activity in the UK

• Delivering activities at partner events such as the Cambridge Big Weekend which attracted over 40,000 people and the Festival on the Fields in Islington which attracted over 8,000 people

• The Academy Performing Arts Centre held a dance workshop open to students led by dancers from the Rambert Dance Company and Akram Khan Company.

• In addition to community events our sport and community teams delivered 3,800 hours of outreach to reach out to target groups to encourage increased physical activity

GLL worked with over 100 local partners to help engage with communities and break down initial barriers. Partners include; Pro Actives and County Sports Partnerships, Interactive, Local Authorities, Public Health, Mencap, Age UK and London Youth.

Sport Relief GLL played host to a wide range events in support of this years Sport Relief Games. The BBC kicked off the action with a special night of Sport Relief TV presented live from the Copper Box Arena and the Aquatics Centre.

Swimathon GLL hosted a record breaking Swimathon 2014 having the two largest participation venues in the UK; the London Aquatics Centre and London Fields Lido. 46 pools took part in Swimathon attracting over 3,200 participants - a huge increase of over 1,100 participants compared to 2013.

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Other events

The Prince of Wales and The Duke of Cambridge visited Oasis LC in Camden to meet the next generation of scuba divers in an event marking the handover of the British Sub-Aqua Club Presidency between the two Royals.

Queen Elizabeth Olympic Park, Copper Box Arena & London Aquatics Centre

GLL, in partnership with the London Legacy Development Corporation (LLDC), successfully opened the London Aquatics Centre in March 2014. The management of the London Aquatic Centre adds to our existing management of the Copper Box Arena on the Queen Elizabeth Olympic Park. A range of high profile international sporting events have already been hosted at these venues, creating a sporting reputation and track record as one of London’s leading sport event venues. These events have included World, European, International and National events including; diving, swimming, netball, basketball, wheelchair basketball, boxing, badminton, fencing and handball. High profile events have been hosted in 2014 including the FINA World Diving Championships, GB Basketball Internationals, England Netball Internationals and International Boxing Championships. The Copper Box has had over 400,000 visits and the London Aquatics Centre over 750,000 visits making them the most visited legacy venues on the Queen Elizabeth Olympic Park. During 2014, GLL partnered with Tom Daley, GB Olympic Diver to establish the Tom Daley Diving Academy (TDDA) at the London Aquatics Centre. The TTDA teaches young people and adults to learn to dive and develop diving skills. The TDDA has since commenced operation in a number of GLL pools and already has 450 students within the first 6 months of operation. The Copper Box hosted the Camden International Cadet Sabre Competition, sponsored by GLL, and saw 200 of Europe’s top fencers compete from 18 countries. The FINA Diving World Series was the first international event to be hosted at the London Aquatics Centre since the London 2012 Olympics and Paralympic Games. The Invictus Games were launched at the Copper Box Arena by Prince Harry. The Games use the power of sport to inspire recovery, support rehabilitation and generate a wider understanding and respect for those who serve their country. Both the Copper Box Arena and the London Aquatics Centre were anchor competition venues for the Games The London Aquatics Centre and Copper Box Arena played host to the Queens Baton relay and launch of Active People, Active Park – the biggest mass participation event the Queen Elizabeth Olympic Park has seen. The Copper Box Arena hosted the Panathlon London Final a sporting competition for severely disabled young people. Over 750 students attended from special schools across London.

Funding

GLL successfully secured external funding for a number of projects including: • £500k of funding from Sport England to develop an extreme sports zone at Sporthouse

which will target young people and open early 2015. • £200k of National Lottery funding to support the ‘For the Girls, by the Girls’ project

which aims to encourage inactive girls and women aged between 14-25 to take part in physical activity.

• Over £250k of funding from various bodies to deliver community initiatives across GLL.

Awards GLL’s Young@Heart programme in Tower Hamlets won the ‘Community Physical Activity Project of the Year’ award at the London Sport and Physical Activity Awards.

Better Inclusive

Better Inclusive, a membership that targets disabled people, was rolled out across GLL in Jan 2012 has now reached over 3,750 members, a four-fold increase.

Partnerships with top flight sports

Streatham Ice hosted its first National Ice Dance Competition. 18 Streatham Skaters qualified to skate at the British Solo Ice Dance Championships.

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teams

Rivermead Leisure Centre hosted the International Open Friendship Taekwondo Championship attracting over 1,000 people including teams from Canada, America, Nepal and across Europe. A number of Commonwealth Games training camps were held at GLL venues in 2014; including significant training camps for athletes from England, Wales and Canada. The Copper Box Arena hosted the biggest worldwide audience ever for a Club Netball game, selling over 5,000 seats for the Surrey Storm vs Hertfordshire Mavericks encounter. In addition it has developed as the home of BBL professional team London Lions Basketball; UEFA’s fastest rising Futsal club; Baku Utd; and is to become the national match venue for Volleyball England.

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SOCIAL IMPACT AND PUBLIC BENEFIT – EMPLOYMENT

GLL provides employment for over 8,500 people. The statement that resonated most with employees’ pride at working for GLL in our 2014 staff survey, was “believing in our company ethos and values”.

Location We aim to place employees in facilities near to where they live. Many of our facilities, especially within Greater London, are in some of the most deprived areas in the UK. The latest Indices of Deprivation Report from the Department for Communities and Local Government in 2010 lists seven of our London locations as being within the top 10% of the UK’s most deprived areas: Hackney, Islington, Waltham Forest, Tower Hamlets, Barking & Dagenham, Greenwich and Lambeth. 70% of all our staff live and work in the same Borough. That % is higher (with the exception of Greenwich) in all of those deprived areas. We believe that giving employment to those from deprived areas brings greater wealth and social cohesion to those areas.

Local partnerships

Olympic Legacy is a key initiative for GLL and we operate two venues on the Queen Elizabeth Olympic Park. Continuing our relationship with the LLDC (London Legacy Development Corporation), we are looking at further initiatives to bring even more people from the surrounding areas into employment on the Park. During 2014, GLL employed 162 people on the Park, 90 of which were new appointments. We issue regular job updates to our partners from the Olympic Host Boroughs incl: Greenwich Local Labour and Business Scheme (GLLaB); Tower Hamlets Local Labour Business Scheme; HVB Enterprise Centre (LB Hackney’s business/labour scheme); Worknet (LB Waltham Forest’s business/labour scheme); London Borough of Barking and Dagenham’s Skills and Employment department; The University of East London; London Legacy Development Corporation.

Company-wide partnerships

We recognise that different local communities often have specific characteristics and issues. We work closely with agencies/groups with local or specialist knowledge that provide direct access to those we are trying to reach. Underpinning GLL’s entry-level recruitment strategy is our partnership with Jobcentre Plus (JCP) and our membership of a Local Employment Partnership. All of our entry-level vacancies are advertised across the JCP network and we work closely with their regional representatives and account managers to ensure that they have a good understanding of our organisation and our recruitment and training needs so that they can communicate these clearly to potential applicants.

Socio-demographics Our social ethos and charitable objectives ensure accessibility, equality and opportunity for all – and as such we are an Equal Opportunities Employer with a commitment to bring employment to those who may otherwise be overlooked or not see a career as within their grasp. We aim for best practice and accreditation where possible.

We also aim to offer long-term career development and progression by way of career paths for all our current employees as well as our Trainee Management Graduate programme which fast-tracks talented graduates to management positions.

Included in our wider recruitment remit are specific groups that we reach out to: BME, Women, Disability/Learning Difficulties, Graduates, NEETs.

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BME Policy Exchange, the UK’s leading think tank, claimed the UK’s BME population in 2014 to be at 14%. The ONS states unemployment amongst the BME community at 13.9% for those aged 16+. GLL has bucked this trend and hires more people from BME backgrounds than is the ratio for the UK population as a whole. We are continuing to reach out to specific BME groups through specific initiatives within Partnerships with large BME populations. In London, 33% of GLL’s workforce is from a BME background, with 24% of our total UK workforce coming from BME backgrounds.

Gender GLL has been seeking to redress the balance of a male-dominated leisure industry by making our environment, behaviours and customer attraction more female-friendly. GLL’s ‘For the Girls’ campaign, coupled with Sport England’s ‘This Girl Can’ campaign are making the leisure and sporting environment more accessible and less intimidating places for women and girls to both exercise and work. Flexible working patterns and casual hours have been an effective and attractive offer for mothers returning to work and we are continuing to see an increase in the number of females that we hire (with only a slight dip at Supervisory level) across all levels of the business. Women now make up almost 54% of our workforce and nearly 35% of our management-level positions are held by women.

GLL ran its first Women’s Diversity Forum which generated in excess of 45 expressions of interest from the business – mainly women from management positions who were keen to progress. A key aim of the Forum is to further increase the number of women moving through the ranks by merit, not by quota, and ensuring they feel empowered to do so. The Forum is sponsored at Director Level. The Forum aims to meet at least once per annum to hold sessions on networking, coaching & mentoring, careers advice, learning, external benchmarking and to invite inspirational guest speakers.

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Disability/Learning Difficulties Disabled people are underrepresented in the workforce and leisure in general. We know that people with disabilities are less likely to have formal qualifications and more likely to be unemployed. This issue has been a focus of our Workforce Equality Strategy. We’ve been delivering targeted programmes alongside partners with specialist knowledge and access to this group.

We work with Remploy (a leading provider of employment services to the disabled), to identify and make suitable adjustments for disabled applicants and employees and engage in a 9-month ‘Steps into Work’ programme providing job coaching and work experience for students with learning disabilities usually within our Head Office. They gain life skills, such as improved communication and the ability to use public transport to get to work. They also develop the ‘soft skills’ that are so vital in the workplace, such as reliability, punctuality and a better understanding of social norms and acceptable behaviour at work. Following the programme, all students are guaranteed an interview with GLL. Previous schemes with Remploy have resulted in up to 50% employment.

We also work with an organisation called Aspire, who run the Instructability scheme for people with spinal injuries. The project helps to get disabled people into the workplace and provides them with free fitness-industry training, leading to an internationally recognised CYQ Level 2 Gym Instructor qualification.

As part of the Disability Agenda, GLL successfully achieved the Two Tick Accreditation. It recognises employers who have taken action to meet five commitments regarding the employment, retention, training and career development of disabled employees and is known by people with disabilities that we are positive about disabled people and will welcome their job applications. In 2014, we employed 171 people with disabilities.

Graduates GLL have supported the employment of graduates for 20 years with our graduate Trainee Management scheme. It’s a fast-track into management and offers two years of experience in core roles within GLL as well as offering training, qualifications and a salary. In 2014, there were 29 TMs on the scheme. A third of Trainee Managers are now working in management positions for GLL fulfilling our long-term working relationship aim.

NEETs GLL are committed to offering employment opportunities into our entry-level positions to those who struggle to find employment due to a lack of work experience and/or qualifications. We offer two main routes to employment:

GLL Apprentice Scheme

GLL has continued to deliver our well-established apprenticeship programme with training partners ICON and the Institute of Swimming. The scheme also continued to work via our London Leisure College (LLC) to deliver parts of the course such as the Level 2 National Pool Lifeguard Qualification. Following a training period, they combine 12 months of work alongside study – for which they are paid a salary. Apprentices undertake vocational qualifications such as an NVQ Level 2 in Active Leisure, Learning & Wellbeing, Level 2 Award in Employment Awareness in Active Leisure & Learning and Level 2 in Leisure Operations amongst others. In 2014, GLL ran six apprenticeship scheme cohorts (four for Recreation Assistants and two for CSAs) with c. 60 people on the scheme. We plan to extend our apprenticeship provision with the addition of Ice and Tennis Apprenticeships as well as throughout our UK operations.

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The GLL Academy

The Academy, run with our funding partner The Princes Trust, is an entry-level route into leisure as a Recreation Assistant or Customer Service Assistant. Run in GLL leisure centres, they’re a mix of classroom and practical training, recognised qualifications and supervised work experience. Previous participants said that it has improved their self confidence, belief, self esteem and fitness. Successful completion usually leads to casual or full time employment with GLL. In 2014, 39 people went through the Academies and c.50% went on to gain employment with us.

Current Employees We take our commitment to current employees very seriously and their well-being, training and development remain an area of focus for the business. In 2014, c.1600 staff gained new qualifications and c. 4650 staff completed various forms of in-house training and development modules. Social and team bonding events are a key fixture of the GLL year and have a direct impact on employees building strong working relationships. In excess of 1600 employees attended our annual staff communications day and c.2000 people attended a range of other social events from spa days to trekking challenges.

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2012 GAMES AND SPORTING LEGACY GLL committed to invest significant corporate energy into supporting the legacy opportunities arising from the successes of the Olympic and Paralympic Games in 2012. In January 2013, we launched our Corporate Legacy Strategy ‘GLL Inspired’ through to 2015. These enduring legacy programmes are carried out in every partnership with GLL managed facilities and are amongst the most innovative within the sporting sector. ‘GLL Inspired’, our corporate legacy strategy has 47 commitments covering the following service areas: • Sport and Activity • Community, health & inclusion • Economy, employment and skills development • Environment • The Queen Elizabeth Olympic Park Some headline targets and results from the ‘GLL Inspired’ commitment are reported as follows: SPORT AND ACTIVITY TARGETS 2014 target 2014 actual 2015 target Raising participation Increased annual GLL visits. 39.5m 39.7m 40.5m GLL everyday sport sessions. 310 404 365 Support community and sport events. 48 48 52 GLL Sport Foundation (GSF) / talent pathways Annual number of GSF supported athletes. 1,200 1,553 1,250 To provide GSF support in GLL partner Regions. 29 32 30 To extend GSF support to partner sport trusts. 3 3 3 SportsAid partnership. ✓ ✓ ✓ Sports and activity brands Core set of sport and activity brands in GLL partner regions.

27 33 30

Increase sports and activity course spaces offered. 2,016,000 2,832,250 2,160,000 Sport development and National Governing Bodies (NGB) Formal memorandum of understanding with NGB’s 5 6 6 NGB partnership programmes in key regions. 5 6 6

COMMUNITY, HEALTH AND INCLUSION TARGETS

2014 target 2014 actual 2015 target

Programmes for young people GLL “Kids for a Quid” in GLL partner regions. 30 33 30 Young people fitness offer in GLL partner 30 33 30 Dedicated women / girls activity sessions. 28 25 30 Free swimming GLL free swimming initiative in GLL partner regions. 28 33 30 GLL ‘Swim Guarantee’ initiative in GLL partner regions.

28 33 30

People over 55 Years GLL senior club in all partner regions 24 33 30 Hold annual GLL senior games tournament. ✓ ✓ ✓ Disability Sport One IFI registration in key GLL partner regions. 18 20 20 GSF / GLL support to key disability sport clubs. 6 2 6 To increase the Better Inclusive membership base by 5% per annum

3,500 3,787 4,000

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CASE STUDY: Case Study: By The Girls, For The Girls In 2014, GLL received £196,000 from a Sport England and SpoRTA funding programme to deliver a women and girls sport and physical activity programme in Tower Hamlets, Greenwich, Hackney, Cambridge and South Oxfordshire. The aim of the ‘Make Your Move / By the Girls, For the Girls’ programme is to increase the number of women and girls (14 years+) taking part in regular sport and physical activity. The programme was launched in November and supports local girls contribute to the design of exercise programmes, promote activities to their friends and provide opportunities to become coaches and exercise instructors. GLL employs five part-time ‘Activators’ to deliver the project in the five regional partnerships. Activities focus around Netball, Boxing, Cheerleading, Volleyball, Basketball, Football, Aquatics and Street Dance. The programme achieved over 9,000 visits in 2014 with an additional 5,500 attending other weekly physical activity events.

GLL launched the campaign at the Copper Box Arena on the Queen Elizabeth Olympic Park, which was supported by former Big Brother winner and fitness trainer Josie Gibson and GB Olympian Jade Johnson

CASE STUDY: Case Study: Greenwich Healthwise GLL celebrated the tenth anniversary of the Healthwise Physical Activity Referral Scheme at the Waterfront Leisure Centre in November 2014. The scheme commenced in partnership with the Royal Borough of Greenwich and NHS Greenwich Clinical Commissioning Group. The Healthwise Scheme has enabled health professionals such as GPs to refer patients with existing medical conditions to benefit from specially designed low cost exercise sessions. Originally operating within five GLL managed centres across Greenwich, the scheme is now delivering health interventions in 17 GLL partnerships with over 12,000 referrals across the UK. Participants are offered subsidised membership after taking part in a tailored programme lasting from 12 to 26 weeks, giving them access to both Healthwise and other health and fitness activities offered at our sport and leisure facilities. GLL also delivers a range of classes as part of our healthy living programme such as weight management, smoking cessation clinics, musculoskeletal classes and mental health classes. Our staff members are trained to signpost individuals to local external courses where appropriate.

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GLL’s “GREEN AGENDA” GLL takes responsibility about the environment seriously. To this aim, each year we strive to reduce energy consumption and our impact on the environment through investment into proven and new technologies and the adoption of best practices. In 2014 GLL continued our work on key environmental objectives through the delivery of our Strategic Action Plan as well as the corporate plan. The key principles of reducing carbon emissions and energy use remain core agenda items. Some key highlights completed in 2014 include:

• GLL successfully retained the Carbon Trust Standard showing a continued commitment to Carbon Reduction.

• The GLL waste and recycling policy has been implemented at a further 25 GLL premises with company wide recycling target rates of 20%

• An increase to the scope of GLL’s ISO14001:2004 certification was completed with the addition of 8 new premises completed in November 2014.

• 8 Energy Champion training sessions were delivered to frontline staff across the organisationview current bills and run energy consumption reports.

Waste and Recycling Grundon Waste Services and their regional partners collected general waste and recycling from most GLL Leisure Centres including new partnerships in Swindon and Manchester. The key objectives of the new contract are below:

• Zero waste to landfill by the end of 2015 • Increase in recycling to 50% • Reduction in General waste volume over the 3 year contract • Collect waste figures for whole GLL estate in order to set baselines and reduction targets

2014 Achievements

• Zero waste to Land through Grundon Contract • 28% recycling rate achieved in 2014 • 241 tonnes of CO2 saved • 78 Leisure Centres across 21 partnerships included in the scheme

GLL GREEN – Continuous Improvements A number of projects have been completed as part of our commitment to continuous investment:

• Boiler Replacements at Cherry Hinton Village Centre and Abbey pools to increase the efficiency of the respective heating systems.

• LED lighting projects have been completed at Thame Leisure Centre as well as others in the South Oxfordshire Partnership.

• Solar Photovoltaic installations at Canons Leisure Centre and Wimbledon Leisure Centre in the London Borough of Morden.

As part of the new partnership with the London Borough of Islington a number of energy saving projects have been identified. Planning has started on the projects below with all projects being completed over 2014 and 2015. Those completed to date at Cally Pools include:

• Poolside air handling upgrade • Poolside lighting replacement with high efficiency fittings and controls • Improved controls of the pool circulation and dosing system to increase efficiency and reduce water

and heating costs. Other investments highlighted for 2015 include:

• Pool cover replacements at Archway Leisure Centre and Highbury Pools

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• Replacement of the air handling system at Archway • Lighting and control upgrades at Islington Tennis Centre

Renewable projects have been completed in 2014 to provide low and zero carbon electricity and heat the centres in Cambridge. It is predicted that we will reduce Carbon emissions by over 250 tonnes per annum. Renewable energy investments include:

• 10kWe Solar Panel installation at Cherry Hinton Village centre generating 9,000kWh of electricity per annum

• 30kWt Heat pump unit at Kings Hedges Pool, producing low carbon heat for the swimming pool and saving 10 t/CO2

. Energy use in like for like centres – Year on Year In 2014 the utility consumption in like for like centres showed the following results against 2013:

• Gas consumption reduced by 15% overall, a reduction of 21m kWh was recorded. The savings are partly due to a warmer year overall but also good practice and investments across the organisation

• Electricity consumption decreased by 1.5m kWh (-3.2%) remaining broadly similar to 2013. • Both gas and electricity savings exceed the GLL corporate target of an annual 2% reduction.

Carbon Efficiency & organisational changes 2014 Brought the addition 5 new partnerships including 4 Leisure and the addition of Children Centres to the GLL portfolio. The growth in Islington, Vale of White Horse, Swindon, Manchester & Greenwich added a total of 34 new premises under GLL’s responsibility. The increase in energy supplies has seen the total Carbon Footprint for the organisation increase significantly and this will be reflected in GLL’s reporting in 2015 for the 2014/15 year

April to March 2010-11 2011-12 2012-13 2013-14

Total Carbon Footprint (tCO2e) 47,345 52,495 57,063 57,000

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

Carbon Efficiency tCO2e/£m turnover 507 481 464 427

Cumulative Change % 0.00 -5.15 -8.64 -15.77

As the table above show, although GLL’s total Carbon footprint has increased in the last 4 years by approximately 20%, the efficiency of the facilities has increased when compared to turnover. GLL’s turnover has increased by 42% over the broadly same period equating to a 15.7% reduction in the amount of Carbon GLL emits per £1m of turnover

Carbon Reduction Commitment Energy Efficiency Scheme • GLL registered a CRC Annual footprint of 57,000 t/CO2e in year 4 of the scheme (2013-2014) which

was the first year of Phase 2. • The figure is very similar to the previous year as in addition to new premises joining GLL, other

facilities closed or left the organisation. • Also due to changes in the reporting rules for Phase 2, GLL has benefitted from having reduced

emissions through the 18 Combined Heat and Power units across the organisation. The Gas used to generate electricity is not counted by Phase 2 CRC rules and therefore this low carbon technology has reduced the cost to GLL by £15,000

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• The allowance cost for GLL was around £1.1m for the 2013/14 compliance year with allowances costing around £16 per tonne

• Moving into the second phase of the scheme in 2014 will pose significant challenges to GLL as the cost of allowances increase and the company continues to grow in size keeping GLL’s sustainability plans at the top of the agenda.

Awards & Recognition GLL continues to hold ISO14001:2004 and recertified to the standard in 2014. In addition to Rivermead Leisure Complex GLL increased the scope of its Environmental management system and certifying a further 9 Leisure facilities across the Islington partnership and also the Queen Elizabeth Olympic Park. This agenda is an on-going process that GLL is fully signed up to.

GLL also retained its accreditation to the Carbon Trust Standard in 2014. The whole organisation is covered by the award and showed a Carbon Reduction of 6.8% (up to December 2013) using the turn over benchmark showing its continued commitment to Carbon reduction started in 2010 when the company was first awarded the standard

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LOOKING TO THE FUTURE and DELIVERING OUR AMBITION As a charitable social enterprise, GLL’s social responsibility is central to each part of our business. Everything we do is designed to ‘add value’ and improve the lives and health of the communities we serve. It is important for us that the public understand the difference between GLL and some other types of providers and we will work hard to demonstrate this difference in all we do. Our service delivery and community benefits are made possible by the commitment and dedication of our staff and volunteers. These people are predominantly from the local communities in which they work. We positively support this local impact and actively develop career structures within GLL as a significant local employer.

Our vision is to be recognised as: o The Country’s leading inclusive sport and leisure provider

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

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

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

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

benefit our aims and social impact Meaningful ambition however, requires meaningful delivery. To work towards this we have focused on our delivery of our corporate ambition

• To provide service quality and excellence to our customers and our service partners

• To help make the communities in areas we operate more active, empowered and culturally engaged.

• To be a successful business with inherent social and environmental responsibility

• To be recognised as Social Enterprise pioneers and to promote replication of ‘socially focussed’ business

• To be known as responsible, accessible organisation respected by customers, partners and our staff

• To actively partner with other leisure and cultural social enterprises in collaborative subsidiary

structures and company mergers to develop social enterprise within our sector and provide sustainable business growth

• To work in partnership to support the growth of social enterprises in other service sectors

• To promote the development of sporting opportunities for young people and provide additional

funding and opportunities through our GLL Sport Foundation

• To protect our non-profit distributing and charitable status

• To continue to be staff-led and to promote the development of our people.

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STATEMENT OF THE COMMITTEE OF MANAGEMENT’S RESPONSIBILITIES The Committee of Management are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Society law requires the Committee of Management to prepare financial statements for each financial year. Under that law the Committee of Management have elected to prepare the financial statements in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the Society and of the surplus or deficit of the Society for that period. In preparing those financial statements, the Committee of Management are required to

- select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material

departures explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to

presume that the Society will continue in business. The Committee of Management are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Society and to enable them to ensure that the financial statements comply with the Industrial and Provident Societies Act 1965 to 2002. They are also responsible for safeguarding the assets of the Society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the Committee of Management are aware, there is no relevant information (as defined by the Industrial and Provident Societies Acts 1965 to 2002) of which the Society’s auditors are unaware, and each committee member has taken all the steps that he or she ought to have taken as a Committee Member in order to make himself or herself aware of any audit information and to establish that the Society’s auditors are aware of that information. The summarised financial statements in this report are not the statutory accounts but a summary of information relating to both the sofa and the balance sheet. An audit has been carried out on the full financial statements from which the summary is derived and the audit report on the statutory financial statements is not qualified. The full annual accounts, auditors report and the report of the committee management can be obtained by contacting the secretary Mr P Donnay at the registered office address as shown in the summarised financial statements. The annual accounts were approved by the board on the 8th June 2015. The annual report and the statutory accounts have been filed with the Financial Conduct Authority. ON BEHALF OF THE COMMITTEE OF MANAGEMENT: J M Sesnan – Committee Member S Ward – Committee Member Date: 8th June 2015

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SECTION 2.

INDEPENDENT AUDITOR'S STATEMENT TO THE MEMBERS OF GREENWICH LEISURE LIMITED We have examined the summarised financial statement for the year ended 31 December 2014.

Respective responsibilities of the Committee of Management and the Auditor

The Committee Members are responsible for preparing the summarised financial statement in accordance with applicable United Kingdom law. Our responsibility is to report to you our opinion on the consistency of the summarised financial statement with the full annual financial statements and the Committee of Managements Report.

We conducted our work in accordance with Bulletin 2008/3 issued by the Auditing Practices Board. Our report on the company’s full annual financial statements describes the basis of our opinion on those financial statements and on the Committee of Managements Report.

Opinion

In our opinion the summarised financial statement is consistent with the full annual financial statements and the Committee of Managements Report of Greenwich Leisure Limited for the year ended 31 December 2013.

Clair Rayner ACA DChA (Senior Statutory Auditor) for and on behalf of McCabe Ford Williams Statutory Auditors and Chartered Accountants Bank Chambers 1 Central Avenue SITTINGBOURNE Kent ME10 4AE Date: 8th June 2015

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

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

Alternatively, a handful of copies of the full Report of the Committee of Management and audited Financial Statements for the year ended 31 December

2014 will be available for viewing before and after the Annual General Meeting on the 23rd June 2015.

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SECTION 3. - SUMMARY FINANCIAL STATEMENTS BALANCE SHEET AT 31 DECEMBER 2014

As at 31st December 2014

As at 31st December 2013

£ £

£ £

FIXED ASSETS Intangible assets

651,986

834,102 Tangible assets

29,348,359

17,919,882

Investments

1,011

10,011 Investment Properties

997,690

997,690

30,999,046

19,761,685

CURRENT ASSETS Stock

196,907

155,277 Debtors within 1 year

19,068,689

21,924,160

Debtors after 1 year 7,003,397 4,669,663 Cash at bank and in hand

20,683,810

18,331,327

46,952,802

45,080,427 CREDITORS

Amounts falling due within 1 year

40,420,401

37,107,551

NET CURRENT ASSETS

6,532,401

7,972,876

TOTAL ASSETS LESS CURRENT LIABILITIES

37,531,447

27,734,561

Amounts falling due after more than 1 year

(11,668,879)

(5,028,067) Provisions for liabilities

-

(150,000)

NET ASSET BEFORE PENSION LIABILITY

25,862,568

22,556,494

Pensions Liability

20,453,000

11,000,743 Funds:

General unrestricted funds

5,274,092

11,401,926 Share capital

36,575

29,125

Restricted funds

98,900

124,700

5,409,568

11,555,751

25,862,568

22,556,494 The financial statements were approved by the Committee of Management on the 08/06/15 and were signed by:

J M Sesnan - Committee Member

S Ward - Committee Member

P Donnay – Secretary

CASHFLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2014

2014 (£)

2013 (£)

Net cash inflow from operating activities

12,648,343

2,309,375 Returns on investments and servicing of finance

(224,946)

200,921

Capital Expenditure and financial investment

(16,969,171)

(6,588,562)

(4,545,774)

(4,078,266)

Financing

6,898,257

4,739,850 increase in cash in the period

2,352,483

661,584

Reconciliation of net cash flow to movement in net funds/debt

Increase in cash in the period

2,352,483

661,584 Cash (inflow)/outflow from (increase)/decrease in debt and lease financing

(6,890,807)

(4,732,500)

Change in net funds resulting from cash flows

(4,538,324)

(4,070,916) Net fund at 1 January

13,200,460

17,271,376

Net funds at 31 December

8,662,136

13,200,460

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SUMMARY STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure account and Statement of Total Recognised Gains and Losses)

For the Year ended 31 December 2014

For the Year ended 31 December 2013

Unrestricted Funds

Restricted Funds

FRS17 Adjustments

Total Funds Unrestricted Funds

Restricted Funds

FRS17 Adjustments

Total Funds

£ £ £ £

£ £ £ £ INCOME RESOURCES:

Income resources from generated funds Investment Income

218,103 - - 218,103

316,273 - - 316,273 Income resources from charitable activities:

Operation Income

140,733,582 - - 140,733,582

112,997,967 - - 112,997,967 Management Fee Income

21,380,867 - - 21,380,867

18,927,598 - - 18,927,598

Other funding

968,762 56,659 - 1,025,421

1,115,129 - - 1,115,129 Total income from Charitable activities

163,083,211 56,659 - 163,139,870

133,040,694 - - 133,040,694

Other incoming resources

- - - -

- 129,000 - 129,000 TOTAL INCOMING RESOURCES

163,301,314 56,659 - 163,357,973

133,356,967 129,000 - 133,485,967

RESOURCES EXPENDED: Cost of generating funds: Investment management costs

23,954 - - 16,095

16,095 - - 16,095 Charitable activities:

Operation Cost

159,647,520 56,659 152,000 159,856,179

129,260,737 - 461,397 129,722,134 (Gains) /losses on settlements

- - 476,257 476,257

- - (1,044,000) (1,044,000)

Inherited pension deficit

- - - -

- - 392,000 392,000 Governance Costs

44,010 - - 44,010

52,500 - - 52,500

Other resources expended

261,407 25,800 - 287,207

41,667 4,300 - 45,967 TOTAL RESOURCES EXPENDED

159,976,891 82,459 628,257 160,687,607

129,370,999 4,300 (190,603) 129,184,696

Net Income / (outgoing) resources before other recognised gains & losses

3,324,423 (25,800) (628,257) 2,670,366

3,985,968 124,700 190,603 4,301,271

Actuarial losses on defined benefit pension schemes

- - (8,824,000) (8,824,000)

- - (163,202) (163,202) Net income after other recognised gains and losses

3,324,423 (25,800) (9,452,257) (6,153,634)

3,985,968 124,700 27,401 4,138,069

Shares issued

7825 - - 7825

8,150 - - 8,150 Shares Cancelled

(375) - - (375)

(800) - - (800)

Total funds brought forward

22,431,794 124,700 (11,000,743) 11,555,751

18,438,476 - (11,028,144) 7,410,332

Total funds carried forward

25,763,667 98,900 (20,453,000) 5,409,567

22,431,794 124,700 (11,000,743) 11,555,751

Continuing Operations - All incoming resources and resources expended arise from continuing activities

GREENWICH LEISURE LIMITED

Registered Company number: IP27793R (England and Wales)

Registered Charity number: XR43398

Registered office: Middlegate House The Royal Arsenal

London SE18 6SX