THE LONDON MARATHON CHARITABLE TRUST LIMITED REPORT AND ACCOUNTS 30 SEPTEMBER 2014 COMPANY NUMBER CHARITY NUMBER:

Transcription

1 REPORT AND ACCOUNTS 30 SEPTEMBER 2014 COMPANY NUMBER CHARITY NUMBER: ALLIOTTS Chartered Accountants and Registered Auditors

2 LEGAL AND ADMINISTRATIVE INFORMATION PATRON : HRH Prince Henry of Wales PRESIDENT : John Disley C.B.E. AUDITORS: Alliotts Friary Court High Street Guildford Surrey GU1 3DL SOLICITORS: Kerman & Co. LLP 200 Strand London WC2R 1DJ BANKERS: Santander UK plc 2 Triton Square Regent s Place London NW1 3AN REGISTERED OFFICE: Marathon House 115 Southwark Street London SE1 0JF CHIEF GRANTS OFFICER/ TRUST SECRETARY Sarah Ridley 1

3 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2014 The Board of trustees as directors present their report together with the audited accounts for the year ended 30 September STATUS AND ADMINISTRATION The London Marathon Charitable Trust Limited (a company Limited by Guarantee and not having a share capital) was established in 1981 and is a registered charity (Number ). 2. OBJECTS The objects of the charity as set out in the Company s Memorandum of Association are to provide or assist in the provision of facilities for recreation and leisure activities within the London Boroughs and City of London Area and other areas where the subsidiary entities stage events. In setting our objectives and planning our activities the Board has given careful consideration to the Charity Commission s general guidance on public benefit. A detailed description of the beneficial grants made is given in section 6B Development, Activities and Achievements This Year. 3. BOARD OF TRUSTEES Members of the Board of Trustees who held office were as follows : John Austin John W Bryant - Chairman Simon Cooper Ruth Dombey Peter King CBE Charles Reed Joyce Smith MBE Sir John Spurling KCVO, OBE Sir Rodney Walker Edmond Warner Charles Johnston 4. ORGANISATION The charitable company has a maximum of seven members, whose liability is limited to the sum of 1 in the event of the company being wound up. The Board of Trustees, formed of a maximum of fourteen members, oversees the management of the charity and considers grant applications. 2

4 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER ORGANISATION (Continued) In accordance with the charitable company's Articles of Association the following persons are entitled to be trustees: (a) The Chairman of Sport England (b) The President of UK Athletics (c) Two representatives of London Councils (d) The Chairman of England Athletics (e) John Disley (f) One representative of the Mayor of London and the Greater London Authority (g) The Chairman of the English Federation of Disability Sport (h) Six others nominated by the members of the company, at least one of whom should in the opinion of the Board be a British runner of distinction. The day to day running of the charity is administered by the Chief Grants Officer/Trust Secretary. 5. POLICY The objects of the charity are fulfilled by using the surplus donated to the charity by its subsidiary, the London Marathon Limited which organises the annual London Marathon and other such events in the year. On behalf of the Trustees, the Treasurer receives and examines applications for grant aid for recreation and leisure projects. Applications are welcomed from London Boroughs and independent organisations, clubs and charities. Since 2004, the Trustees have been able to make grants to projects in any area in which the subsidiary company stages an event. This now includes South Northamptonshire, Aylesbury Vale (Silverstone) and Surrey. The Trustees meet once a year to consider applications and are invariably over subscribed. They generally prefer to grant aid projects of a capital nature thereby ensuring a lasting benefit to the community. 6. STRATEGIC REVIEW A. REVIEW OF ACTIVITIES AND FINANCIAL RESULTS For the Charity The Trustees have authorised grants for 2014 to London Boroughs and other organisations amounting to 3,470,113 (2013-3,605,580). They have also set aside a further 1,350,000 for playing fields, major projects and Olympic Legacy. After adjusting for grants not taken up from earlier years and payments made in excess of the original amounts allocated, the total of grants made since 1981 is now 56,454,069 ( ,274,563). The company had net outgoing resources for the year amounting to 555,022 (2013 1,388,144). In order to be able to make occasional additional grants during the year, the Trustees consider it prudent to retain a modest sum in general reserve. At the Balance Sheet date the general reserve amounted to 163,256 ( ,289). For the Group The subsidiary trading company achieved a surplus for the year of 3,503,742 (2013-2,214,468) which was donated to the charitable company as gift aid. The subsidiary retains a balance of 688,169 ( ,169) in its Profit and Loss reserve. 3

5 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2014 A. REVIEW OF ACTIVITIES AND FINANCIAL RESULTS (Continued) The principal risk that the subsidiary company is exposed to is a failure to attract sufficient numbers of entrants to its races and the failure to attract sufficient sponsorship for its flagship event, the London Marathon. Since its inception in 1981 the race has never failed to be less than fully subscribed and sponsorship has always been available. The key performance indicators that the company uses when assessing its business model are the increase in advertising, marketing and sponsorship revenue derived from the continuing success and popularity of the race events that it stages. The directors are pleased to report that it expects the surplus in the financial year 2014/15 to return to the level of previous years. To ensure the continued success of the races entrance fees have remained unchanged for the past few years. B. DEVELOPMENT, ACTIVITIES AND ACHIEVEMENTS THIS YEAR The Trustees are always aware that their main source of income is the surplus generated from its subsidiary. However, with representatives serving on the Board of The London Marathon Limited and a continued high level of competence within the Executive of that company, the Trustees are confident that the surpluses made in recent years will be maintained. The Board has noted the improvement in the financial results of the second RideLondon weekend and, in particular, the receipt of 501,311 in bequested entry fees from the event. It is pleased to receive surplus of 3.5million ( million) from its trading subsidiary. The Trustees are, once again, disappointed to note that some projects for which grants had been made in past years have not been able to proceed for various reasons and a sum in excess of 640,000 ( ,000) has been returned to general reserves for allocation to new projects. The total available for allocation in 2014 was more than 5 million ( million). As a result, the Trustees have continued to follow the Trust's principal objective - to provide facilities for recreation and leisure activities - which will bring a lasting benefit to the communities in which they are established. In line with this objective, they are pleased to report that, although no purchases of playing fields have been made in the year, grants have been confirmed for two proposals which will result in the bringing back into full community use neglected or unused playing fields in RB Greenwich and South Northamptonshire. The Trustees are therefore hopeful that at least two new London Marathon Playing Fields will be secured in In furtherance of its aim to help as wide a cross section as possible, the Trustees have made new grants to a record 70 projects ( projects) across London, South Northamptonshire, Aylesbury Vale and Surrey, as listed in the financial statements in a total sum of 4,820,113 (2013-3,605,580). This sum includes a further reserve of 200,000 towards London Marathon Playing Fields and major projects as mentioned above and 1,150,000 towards the Trust s obligations for the remaining legacy project from the London 2012 Olympics the Community Athletics Track in the Queen Elizabeth II Olympic Park. Other projects once again include the provision of MUGAs and outdoor gyms; improvements to existing children's play areas and the development of new ones; the refurbishment, upgrading and expansion of existing sports and community facilities both indoor and outdoor; the bringing back into use of neglected playing fields. As in previous years, the grants the Trust has made will benefit both the able bodied and the disabled of all ages and include the sports of athletics, gymnastics, swimming, cricket, tennis, skateboarding & BMX, basketball, cycling, rowing, sailing and martial arts. The Trustees believe that the projects to which grants have been made will encourage more participation by the general population in physical activity. 4

6 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2014 B. DEVELOPMENT, ACTIVITIES AND ACHIEVEMENTS THIS YEAR (Continued) With the continued success of the London Marathon itself and the other events staged by the London Marathon Limited, the Trustees are confident that they will be provided with ongoing significant funds to enable them to achieve one of the main objectives set out in the original vision of the Marathon founders, Chris Brasher and John Disley. The Company Secretary and Treasurer, David Golton, has stepped down after 25 years service and the Trustees wish to record their appreciation of his work and to acknowledge the considerable contribution made by him in that time. C. FUTURE DEVELOPMENTS The trustees anticipate an increase in income in the coming year through the operation of events by The London Marathon Ltd The London Marathon Ltd has continued in its joint venture to operate Ride London. The subsidiary company holds 75% of the equity and income of London and Surrey Cycling Partnership LLP, which operates the Ride London events. The trustees note the small overall financial loss on the 2014 events but have every confidence that over the remaining three years of the contract the project will generate considerable surpluses for the Trust. D. INVESTMENT POLICY The trustees have considered the most appropriate policy for investing funds and have decided that, in view of the unpredictable timing of completion of projects and the draw down of grants, easy access to cash is necessary. Accordingly they have found that maintenance of funds in easy access, high interest bank accounts to be satisfactory. This policy is reviewed on a regular basis. E. RISK MANAGEMENT The trustees regularly review the major risks which the charity faces. They believe that the charity is not exposed to any major risk and therefore has no need to maintain high levels of reserves. Their policy is to make grants each year of substantially all the income received. The Trust makes reserves in relation to sums committed on forward projects except for the reserve in relation to London 2012 Legacy Stadia (as referred to in Note 21) for which reserve is being made over the period to ACCOUNTING AND REPORTING RESPONSIBILITIES The Charities Act 2011 and company law require the Trustees as directors of the charitable company to prepare accounts for each financial year which give a true and fair view of its financial activities during the year and its financial position at the end of the year. In preparing those accounts the Trustees are required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - follow applicable accounting standards and the Charities SORP, disclosing and explaining departures in the accounts; and - prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business. 5

7 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER ACCOUNTING AND REPORTING RESPONSIBILITIES (continued) The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the accounts comply with the Companies Act They are also responsible for safe-guarding the assets of the company and ensuring their proper application in accordance with charity law, and hence for taking reasonable steps for the prevention and detection of error, fraud and other irregularities. Statement of disclosure to auditor: 1) so far as the trustees are aware, there is no relevant audit information of which the company s auditors are unaware, and 2) they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the company s auditors are aware of that information. BY ORDER OF THE BOARD Sarah Ridley Secretary 10 December

8 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE LONDON MARATHON CHARITABLE TRUST LIMITED We have audited the financial statements of The London Marathon Charitable Trust Limited for the year ended 30 September 2014 which comprise the Company and Consolidated Statement of Financial Activities, the Company and Consolidated Balance Sheet, the Consolidated Cash Flow Statement and related notes set out on pages 15 to 28. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Generally Accepted Accounting Practice. This report is made solely to the charitable company s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act Our audit work has been undertaken so that we might state to the charity s trustees those natters we are required to state to them in an auditor s report and for no other purposes. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity s trustees as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors and auditors As explained more fully in the Trustees Responsibility Statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s (APB s) Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statement is free from material misstatement, whether caused by fraud or error. This includes an assessment of whether the accounting policies are appropriate to the charitable company s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees, and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees Annual Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies, we consider the implications for our report. Opinion on financial statement In our opinion the financial statements: give true and fair view of the state of the group and charitable company s affairs as at 30 th September 2014 and of its incoming resources and applications of resources, including its income and expenditure for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the requirements of the Companies Act 2006 Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements. 7

9 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE LONDON MARATHON CHARITABLE TRUST LIMITED (Continued) Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or the financial statement are not in agreement with the accounting records and returns; or certain disclosures of trustees remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.. Richard Hopes FCA (Senior Statutory Auditor) For and on behalf of Alliotts Chartered Accountants & Statutory Auditors Dated: Friary Court High Street Guildford Surrey GU1 3DL 8

10 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME & EXPENDITURE ACCOUNT YEAR ENDED 30 SEPTEMBER 2014 Unrestricted Funds General Designated Total Total Notes Fund Fund INCOMING RESOURCES Income from Charitable Activities Activities for generating funds Trading income 3 28,450,609-28,450,609 25,312,144 Investment income 212, , ,420 Donations Total Incoming Resources 28,663,541-28,663,541 25,786,045 RESOURCES EXPENDED Costs of generating funds Trading Expenditure 3 24,456,360-24,456,360 22,839,723 Bank interest 10,208-10,208 12,970 Charitable Activities Grantmaking 9 80,000 4,656,495 4,736,495 4,305,996 Governance 15,500-15,500 15,500 Total Resources Expended 24,562,068 4,656,495 29,218,563 27,174,189 RESOURCES BEFORE TRANSFERS 4,101,473 (4,656,495) (555,022) (1,388,144) Transfers between funds (4,099,506) 4,099, NET INCOME/(EXPENDITURE) FOR THE YEAR 1,967 (556,989) (555,022) (1,388,144) Fund balances at 1 October ,458 13,654,951 14,504,409 15,892,553 FUND BALANCES AT 30 SEPTEMBER ,425 13,097,962 13,949,387 14,504,409 All amounts relate to continuing activities All recognised gains and losses in the current and prior year are included in the statement of financial activities. The notes on pages 15 to 28 form part of these financial statements. 9

11 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME & EXPENDITURE ACCOUNT YEAR ENDED 30 SEPTEMBER 2014 Unrestricted Funds General Designated Total Total Notes Fund Fund INCOMING RESOURCES Income from Charitable Activities Activities for generating funds Income from trading subsidiaries 3 3,503,742-3,503,742 2,214,468 Bequests from trading subsidiaries 3 501, , ,495 Investment income 176, , ,408 Donations Total Incoming Resources 4,181,473-4,181,473 2,917,852 RESOURCES EXPENDED Costs of generating funds Charitable Activities Grantmaking 9 80,000 4,656,495 4,736,495 4,305,996 Governance Total Resources Expended 80,000 4,656,495 4,736,495 4,305,996 NET INCOMING/(OUTGOING) RESOURCES BEFORE TRANSFERS 4,101,473 (4,656,495) (555,022) (1,388,144) Transfers between funds (4,099,506) 4,099, NET INCOME/(EXPENDITURE) FOR THE YEAR 1,967 (556,989) (555,022) (1,388,144) Fund balances at 1 October ,289 13,654,951 13,816,240 15,204,384 FUND BALANCES AT 30 SEPTEMBER ,256 13,097,962 13,261,218 13,816,240 All amounts relate to continuing activities All recognised gains and losses in the current and prior year are included in the statement of financial activities. The notes on pages 15 to 28 form part of these financial statements. 10

12 CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2014 FIXED ASSETS Notes Tangible Fixed Assets 11 2,259,903 2,284,485 Investments ,259,903 2,284,485 CURRENT ASSETS Debtors 13 7,485,671 6,756,368 Bank and cash 19,067,321 18,897,587 26,552,992 25,653,955 CREDITORS Amounts due within one year 14 (12,601,104) (11,566,408) NET CURRENT ASSETS 13,951,888 14,087,547 TOTAL ASSETS 16,211,791 16,372,032 CREDITORS Amounts due after more than one year 15 (2,262,404) (1,867,623) TOTAL NET ASSETS 13,949,387 14,504,409 UNRESTRICTED FUNDS General Fund , ,458 Designated Fund 16 13,097,962 13,654,951 13,949,387 14,504,409 Approved by the Board on 10 December 2014 and signed on its behalf by : John W Bryant - Chairman Company Registration No

13 CHARITY BALANCE SHEET AS AT 30 SEPTEMBER 2014 Notes FIXED ASSETS Tangible Fixed Assets - - Investments CURRENT ASSETS Debtors 13 3,503,742 2,561,963 Bank and cash 9,757,472 11,254,273 13,261,214 13,816,236 CREDITORS Amounts due within one year - - NET CURRENT ASSETS 13,261,214 13,816,236 TOTAL ASSETS 13,261,218 13,816,240 UNRESTRICTED FUNDS General Fund , ,289 Designated Fund 16 13,097,962 13,654,951 13,261,218 13,816,240 Approved by the Board on 10 December 2014 and signed on its behalf by : John W Bryant Company Registration No

14 GROUP CASH FLOW STATEMENT AS AT 30 SEPTEMBER 2014 Reconciliation of incoming / (outgoing) resources to net cash inflow / (outflow) from operating activities Net expenditure (555,022) (1,388,144) Depreciation 34,474 37,910 Decrease in stock - 4,988 Increase in debtors (729,303) (1,243,459) Increase in creditors within one year 1,028,031 1,356,282 Tax provision 11,087 4,422 Interest paid 10,208 12,970 Interest received (212,863) (473,420) Net cash outflow from operating activities (413,388) (1,688,451) Net cash outflow from operating activities (413,388) (1,688,451) Returns on investments and servicing of finance Bank and other interest received 212, ,420 Interest paid (10,208) (12,970) 202, ,450 Taxation (4,422) (7,035) Capital expenditure Payments to acquire tangible assets (9,892) (46,401) (9,892) (46,401) Financing Advertising in advance 507,710 (275,155) Repayment of debt (112,929) (110,168) 394,781 (385,323) Increase / (decrease) in cash in the year 169,734 (1,666,760) 13

15 GROUP CASH FLOW STATEMENT AS AT 30 SEPTEMBER 2014 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS : Increase / (decrease) in cash in the year 169,734 (1,666,760) Repaid in year 112, ,168 Increase / (decrease) in net funds 282,663 (1,556,592) Net funds at 1 October ,434,079 19,990,671 Net funds at 30 September ,716,742 18,434,079 ANALYSIS OF CHANGES IN NET FUNDS At At 1 October Cash 30 September 2013 Flow 2014 Cash at bank 18,897, ,734 19,067,321 Bank loans : Due within one year (105,000) - (105,000) Due after more than one year (358,508) 112,929 (245,579) 18,434, ,663 18,716,742 14

16 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER ACCOUNTING POLICIES a) Basis of Accounting The accounts have been prepared under the historical cost convention and they have been drawn up under the provisions of the Companies Act 2006 and in accordance with Statement of Recommended Practice Accounting by Charities (SORP 2005) issued in March 2005 and applicable accounting standards. The accounts consolidate the results of The London Marathon Charitable Trust, its wholly owned subsidiary The London Marathon Limited, and The London Marathon Limited s subsidiary undertaking London & Surrey Cycling Partnership LLP, on a line by line basis. b) Tangible Fixed Assets c) Stock d) Turnover Tangible fixed assets other than freehold property are stated at cost less depreciation. In accordance with FRS 11 the directors carry out an annual impairment review of the freehold property. For the other fixed assets depreciation is provided at rates calculated to write off the cost, less estimated residual value of each asset over its estimated useful life as follows: - Buildings Freehold Nil - Motor vehicles 25% on cost - Fixtures and equipment 25% on cost It is policy only to capitalise items with a value of 5,000 or greater. No depreciation is provided in respect of freehold land. No depreciation is made in the accounts for freehold buildings on the grounds that the directors believe it would be immaterial due to the estimated useful economic life of the building being greater than 50 years and the estimated residual value of the building is greater than the carrying value in the accounts. The directors completed an impairment review at the year end and no adjustment is required in the financial statements. Stock is valued at the lower of cost and net realisable value. Turnover represents amounts received from sponsorships, marketing, entrance fees and bequests net of VAT. Turnover is recognised when events are held. Sponsorships are usually multi-year agreements and the income is recognised in the accounts when the sponsored event occurs. An accrual or deferral is made where the agreed amount is not invoiced in the year or invoiced for next year's event in advance. Marketing income is recognised when the event to which the advertising relates to takes place. Any marketing income received in advance is deferred to future years and is included within 'accruals and deferred income' on the face of the balance sheet. Entrance fees relate to the income received from runners for the current year's event. 15

17 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2014 Bequests represent the entry fees amounting to 1,897,141 (2013-1,664,810) donated by runners and riders unsuccessful in the ballot by which entrants in The London Marathon and Ride London are accepted. The ballot for The London Marathon takes place at the end of the previous financial year but, as the results are not known until the start of the financial year in which the event takes place, the income is carried forward into that financial year. Relevant direct expenditure is also only recognised in the Statement of Financial Activities when the events are held. e) Investment Income Interest receivable on fixed term bank deposits is recognised when received. f) Foreign Currencies Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Assets and liabilities in foreign currencies are translated into sterling at the rates ruling at the balance sheet date. Gains or losses arising on the translation of foreign currencies and other exchange differences are taken to the profit and loss account. g) Fixed Asset Investments h) Pensions i) Taxation j) Designated Funds 2. GIFT AID Fixed asset investments are stated at cost less provision for diminution in value. The company operates a defined contribution pension scheme. Pension costs are charged to the profit and loss account when payable in accordance with FRS17. The assets of the scheme are held separately from those of the company in independently administered funds. The London Marathon Charitable Trust Limited has charitable status and is not subject to corporation tax on its charitable activities. The subsidiary company is liable to Corporation Tax on its taxable profits, including its share of profits and losses of London & Surrey Cycling Partnership LLP. Designated Funds represent grants awarded to projects in the years stated but for which the grant conditions laid down in the award have not yet been fulfilled. Once the project is complete and the conditions fulfilled, the trust will release the grant awarded. The London Marathon Charitable Trust Limited has received from The London Marathon Limited, under Gift Aid provisions, an amount calculated by a formula which after corporation tax leaves the London Marathon Limited with neither profit nor loss from trading activities. At 30th September 2014 the board of The London Marathon Limited resolved, as permitted by their Articles of Association, to retain in reserve a sum representing income not subject to corporation tax. 16

18 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER INCOME FROM SUBSIDIARIES' TRADING ACTIVITIES The company owns the whole of the share capital of The London Marathon Ltd which is responsible for generating income from the staging of the London Marathon and other races. The London Marathon Limited is a designated member of London & Surrey Cycling Partnership LLP and is deemed to have control over the LLP under the agreement between the members. London & Surrey Cycling Partnership LLP is responsible for generating income from the staging of Ride London and other races. The trading results of the company and LLP for the year, as extracted from the audited accounts are summarised below : The London Marathon Limited London & Surrey Cycling Partnership LLP Turnover 21,687,696 20,583,794 6,762,913 4,728,350 Operating costs (including bequests) (17,802,656) (16,424,274) (7,159,428) (6,774,022) Gross profit 3,885,040 4,159,520 (396,515) (2,045,672) Investment income (396,515) (2,045,672) - - Interest receivable 36, , Interest payable (10,208) (12,970) - - Operating profit 3,514,829 2,218,890 (396,515) (2,045,672) Gift aid donation (3,503,742) (2,214,468) - - Profit before taxation 11,087 4,422 (396,515) (2,045,672) Taxation (11,087) (4,422) - - Losses allocated to members ,515 2,045,672 Retained Profit The assets and liabilities of the subsidiaries were: Fixed assets 2,259,903 2,284, Current assets 14,564,825 12,580,229 2,383,342 2,004,716 Current liabilities (13,874,151) (12,308,918) (2,383,342) (2,004,716) Non-current liabilities (2,262,404) (1,867,623) - - Total net assets 688, , Aggregate share capital and reserves 688, ,

19 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER OTHER INCOME & DONATIONS Company Marathon Course Workers East End Homes - 81 Isle of Dogs EXPENDITURE Trading activity expenditure includes Group Depreciation 34,474 37,910 Auditors' remuneration (trading subsidiaries) 15,500 15,500 6 STAFF COSTS Group Total staff costs comprise : Wages & salaries 2,300,689 1,806,354 Social security costs 267, ,080 Pension contributions 89,186 74,497 2,656,985 2,079,931 Number of employees : The average monthly number of employees during the year was 39 ( ) The number of employees whose annual emoluments were 60,000 or more was : Group Number Number 60,001-70, ,001-80, ,001-90, , , , , , , , , , , , , , , Contributions were made to defined contribution pension schemes for ten employees of 62,057 ( ,348 for six employees). Company The company employs no staff. 7 TRUSTEES None of the trustees (or any person connected with them) received any remuneration or were reimbursed for expenses during the year. 18

20 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER ANALYSIS OF TOTAL RESOURCES EXPENDED Group Staff Costs Other Costs Depreciation Total Costs of generating funds Trading costs of subsidiary 2,656,985 21,764,901 34,474 24,456,360 Bank interest - 10,208-10,208 Charitable activities Grantmaking - 4,736,495-4,736,495 Governance - 15,500-15,500 Total resources expended 2,656,985 26,527,104 34,474 29,218,563 Company Staff Costs Other Costs Depreciation Total Costs of generating funds Charitable activities Grant making - 4,736,495-4,736,495 Total company resources expended - 4,736,495-4,736,495 9 GRANTS PAID IN THE YEAR - Company 2014 LB Wandsworth - Tooting Athletics Track 30,000 City of London - Golden Lane Estates 27,000 LB Southwark - Bethwin Road Playground 30,000 LB Ealing - London Tigers 100,000 LB Greenwich - Charlton Lido 100,000 LB Islington - Peabody, Palmer Field 50,000 LB Lambeth - Kangley Bridge Road 8,000 LB Lambeth - Sydenham Wells Park 25,000 LB Merton - Pollards Hill Rec 50,000 LB Redbridge - Vicarage Lane Play Area 146,000 LB Richmond - Twickenham Brunswick Club 150,000 LB Southwark - Blackfriars Settlement 75,000 LB Wandsworth - Barn Elms Sports Centre 30,000 City of Westminster - Royal Parks 125,000 City of Westminster - Porchester Centre 100,000 LB Bexley - Belvedere Cricket Club 10,000 LB Camden - Talacre Community Sports Centre 66,662 LB Ealing - Hanwell School of Boxing 46,377 RB Greenwich - Blackheath Cricket Club 100,000 RB Greenwich - Charlton Lido 121,000 RB Greenwich - Hornfair Park 70,000 LB Hackney - Stoke Newington School 150,000 LB Islington - Body & Soul 12,579 LB Lambeth - Black Prince Trust 131,934 LB Lewisham - Manor House Gardens 33,500 LB Merton - 19th Wimbledon Scouts 150,025 LB Richmond - NPL Sports Club 20,717 LB Sutton - Sutton Common Park 35,000 carried forward 1,993,794 19

21 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER GRANTS PAID IN YEAR - Company brought forward 1,993,794 City of Westminster - Marylebone Green Playground 150,000 Sth Northamptonshire - Pattishall Parish Hall 26,665 Mapledown School 30,000 TS Broadway 10,000 KIDS 19,555 LB Harrow 27,000 Tolworth Gymnastics Club 10,000 LB Richmond upon Thames 25,000 Kew & Ham Sports Association 43,850 Broad Street Amateur Boxing Club 46,637 LB Wandsworth 10,000 Leatherhead & Dorking Gym Club 31,000 Capel Parish Council 23,000 Headley Playground Steering Group 12,000 Challengers 7,085 LB Merton Canons Leisure Centre 80,000 London Marathon Playing Fields/Major Projects 40,910 London 2012 Legacy Stadia - Reserve 2,150,000 4,736, TAXATION The company is a registered charity and therefore no liability to taxation arises on its charitable activities. The subsidiary company is liable to Corporation Tax on its taxable profits after gift aid has been donated. 20

22 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER TANGIBLE FIXED ASSETS Group Cost Freehold Motor Office Property Vehicles Equipment Total At 1 October ,196,345 83, ,266 2,705,339 Additions - - 9,892 9,892 Disposals At 30 September ,196,345 83, ,158 2,715,231 Depreciation At 1 October , , ,854 Charge for the year - 11,630 22,844 34,474 Disposals At 30 September , , ,328 Net Book Value At 30 September ,196,345 5,546 58,012 2,259,903 At 30 September ,196,345 17,176 70,964 2,284,485 The Company holds no fixed assets. 12 FIXED ASSETS INVESTMENTS a) The company holds 4 ordinary shares of 1 each in its wholly owned trading subsidiary London Marathon Limited which is incorporated in England and Wales. The activities and results of this company are summarised in note 3. b) Group investment income of 212,862 ( ,420) from bank interest arose in the year. Company investment income amounted to 176,350 ( ,408). 21

23 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER DEBTORS Group Company Trade debtors 1,707,897 1,446, Amounts owed by group undertakings - - 3,503,742 2,561,963 Other debtors 1,739,775 1,602, Prepayments 4,037,999 3,706, Amounts falling due after more than one year and included in the debtors above : 7,485,671 6,756,368 3,503,742 2,561,963 Group Company Prepayments 1,010, , CREDITORS Amounts falling due within one year Group Company Bank loan 105, , Trade creditors 823, , Corporation tax 11,087 4, Accruals and deferred income 11,661,269 10,799, ,601,104 11,566,

24 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER CREDITORS Amounts due after more than one year Group Company Bank loans 245, , Other creditors 2,016,825 1,509, ,262,404 1,867, Analysis of bank loan Within one year 105, , In one to two years 110, , In two to five years 135, , After five years Less included in Current liabilities (105,000) (105,000) , , The loan is repayable by instalments over 20 years with an interest rate of 2% above base rate and is secured by a charge over the freehold property at 115 Southwark Street, London SE1 0JF. 16 UNRESTRICTED FUNDS Balance at Balance at 1 October Incoming Resources 30 September 2013 Resources Expended Transfers 2014 General Reserve 161,289 4,181,473 (80,000) (4,099,506) 163,256 Designated Funds 13,654,951 - (4,656,495) 4,099,506 13,097,962 Company 13,816,240 4,181,473 (4,736,495) - 13,261,218 Subsidiary company and LLP 688,169 24,482,068 (24,482,068) - 688,169 Group 14,504,409 28,663,541 (29,218,563) - 13,949,387 23

25 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER ANALYSIS OF NET ASSETS BETWEEN FUNDS Fixed Investments Net Current Long term Total Assets Assets/ (Liabilities) (liabilities) Unrestricted funds ,261,214-13,261,218 Company - 13,261,214-13,261,218 Subsidiary company 2,259,903 (4) 690,674 (2,262,404) 688,169 Group 2,259,903-13,951,888 (2,262,404) 13,949, RECONCILIATION OF MOVEMENT IN MEMBERS' FUNDS Group Company Opening members' funds 14,504,409 15,892,553 13,816,240 15,204,384 Net movement in funds (555,022) (1,388,144) (555,022) (1,388,144) Closing members' funds 13,949,387 14,504,409 13,261,218 13,816, CAPITAL COMMITMENTS At 30 September 2014 the group had no capital commitments. 20 DESIGNATED FUNDS In 2014 the Trustees made further commitments from current year's income totalling 4,740,113 (2013-3,605,580) which after adjusting previous years' allocation by 640,607 ( ,613) results in transfer from designated funds of 4,099,506 (2013-2,840,967). This sum together with the previous years' unpaid allocation results in a total of 13,097,962 ( ,654,951) as Designated Funds. 24

26 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER DESIGNATED FUNDS (continued) Approved in 2007 LB Southwark - Bells Gardens 24,870 24,870 Approved in 2009 City of Westminster - Jubilee Sports Centre 100, ,000 Approved in 2010 LB Hackney - St Paul's Church 75,000 LB Tower Hamlets - Victoria Park 235, ,000 Approved in 2011 LB Barnet - Hadley Wood Sports Trust 150,000 LB Bexley - Dartfordians Community SC 100,000 LB Brent - Marine Society & Sea Cadets 40,000 LB Brent - Sudbury Court Pavilion & pitches 75,000 LB Bromley - Orpington Football Club 5,000 LB Hounslow - CB Hounslow United Football Club 200,000 LB Lambeth - Norwood Park 60,000 LB Lewisham - Community Teachsport 42,000 LB Newham - Tessa Sanderson Foundation & Academy 37,500 LB Wandsworth - Harroway Road 15, ,500 Approved in 2012 LB Barnet - Copthall Playing Fields 150,000 LB Camden - Royal Parks, Primrose Hill 75,000 LB Ealing - Ramgarhia Sports Club 250,000 RB Greenwich - Eastney Street Residents Association 10,000 LB Hammersmith & Fulham - Friends of South Park 44,720 LB Hammersmith & Fulham - Urban Partnership, Masbro Centre 14,611 LB Islington - Highbury Roundhouse 100,000 LB Kensington & Chelsea - Peabody, Dalgarno Estate 16,500 LB Lambeth - Rookery Road 135,000 LB Lambeth - Clapham Common 54,000 LB Lewisham - Community Teachsport 100,000 LB Southwark - Southwark Park Sports Complex 150,000 LB Sutton - Collingwood Recreation Ground 40,000 LB Wandsworth - Leaders Gardens 12,500 LB Wandsworth - Battersea Park Athetics Track 50,000 LB Wandsworth - Barn Elms Boat House 7,500 City of Westminster - Queens Park Gardens 100,000 Sth Northamptonshire - Greens Norton Community Centre 50,000 1,359,831 Carried forward 2,519,201 25

27 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2014 Brought forward 2,519,201 Approved in 2013 LB Islington - Sobell Leisure Centre 150,000 LB Barnet - Peabody, Strawberry Vale Estate 30,000 LB Brent - Friends of Tiverton Green 40,000 LB Ealing - Ealing Cricket Club 125,000 LB Enfield - Enfield Grammar School 150,000 LB Enfield - Wilbury Park 25,000 RB Greenwich - Royal Parks 40,000 LB Hackney - Butterfield Green 80,000 LB Hackney - Circus Space 62,500 LB Hammersmith & Fulham - Fulham Court 96,244 LB Hammersmith & Fulham - Peabody, Hammersmith Estate 45,000 LB Haringey - Northumberland Park 15,000 LB Haringey - Friends of Priory Park 30,000 LB Haringey - Greig City Academy 20,000 LB Hillingdon - GLL, Botwell Green Leisure Centre 13,500 LB Hillingdon - Pield Heath School 50,000 LB Hounslow - Strand on the Green Res Assn 50,000 LB Hounslow - Isleworth Explorers Club 25,000 LB Islington - Archway Park 50,000 RB Kingston - Alexandra Recreation Ground 30,000 LB Lambeth - GLL, Clapham Leisure Centre 13,500 LB Lambeth - Oasis Children's Venture 34,000 LB Lambeth - Peabody, Peabody Hill 40,000 LB Lewisham -Grove Park Community Group 27,000 LB Lewisham - Folkestone Gardens 50,000 LB Lewisham - Leisure Connection, Downham LC 13,500 LB Newham - LLDC, Aquatic Centre 30,000 LB Redbridge - Vision Redbridge,Ashton Playing Fields 150,000 LB Richmond - Hampton Common Friends 25,000 LB Richmond - Richmond Cricket Club 77,296 LB Southwark - Nunhead Green 80,000 LB Southwark - Southwark Park 50,000 LB Tower Hamlets - Broad Street Amateur Boxing Club 3,363 LB Tower Hamlets - St John's park 70,000 LB Tower Hamlets - Victoria Park Harriers, Mile End Stadium 28,750 LB Tower Hamlets - Development through Challenge 42,000 LB Waltham Forest - LPFF, Peter May Sports Ground 75,000 City of Westminster - Porchester Centre 100,000 South Northamptonshire - Helmdon Primary School 61,800 South Northamptonshire - Hartwell Community Centre 50,000 South Northamptonshire - Silverstone Racers JFC 100,000 Surrey - Guildford City Youth Project 12,000 Surrey -East Horsley Parish Council 50,000 Surrey - Girlguiding Surrey East 100,000 Surrey -Queen Elizabeth Gardens, Horsell 50,000 Surrey - Capel Cricket Club 50,000 Surrey - Leatherhead FC 50,000 2,560,453 Carried forward 5,079,654 26

28 20 DESIGNATED FUNDS (continued) THE LONDON MARATHON CHARITABLE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2014 Brought forward 5,079,654 Approved in 2014 LB Merton - St Mark's School 35,000 TS Broadsword 45,000 LB Bexley - Hall Place Park 17,500 Peabody - Abbey Way 60,000 LB Ealing - Osterley Cricket Club 70,000 William Perkins C of E School 150,000 SLM Trust - Perivale Track 100,000 LB Enfield - Hazelwood Rec 45,000 Mayfield Athletic Club 16,500 AHOY Centre 100,000 RB Greenwich - Poolpods 58,960 Leap Training 90,000 Willow Dene School 13,500 Lea Rowing Club 100,000 Shakespeare Walk Adventure Playground 7,800 Thames Valley Harriers 95,000 Groundwork London - White City Plaza 72,504 Wormwood Scrubs Pony Centre 16,000 Tottenham Community Sports Centre 20,000 LB Haringey - Finsbury Park 40,000 LB Harrow - Queensbury Rec 25,000 LB Harrow - Harrow Leisure Centre 30,000 Flash Musicals 23,000 LB Hillingdon - Warren Park 45,000 Heathrow Gymnastics Club 70,000 Friends of Boston Manor 30,000 Spa Green Management 52,844 Heart of Westbourne T & R Association 36,883 Groundwork London - Elthorne Estate 100,000 Tolworth Gymnastics Club 125,000 RB Kingston - Kind Edwards & Elm Road Recs 40,000 Friends of Dysart School 15,000 Black Prince Trust 100,000 The Kennington Association 42,660 Streatham Youth & Community Trust 81,700 Peabody - Peabody Hill Estate 20,000 Wheels for Wellbeing 20,513 Wimbledon RFC 61,337 Bonny Downs Community Association 40,000 Vicarage Lane Play Park 35,613 LB Richmond/Busen 150,000 Kew & Ham Sports Association 65,000 Royal Parks - Richmond Park 20,000 Addison Road Community Group 115,780 Skerries for School 37,800 Peckham Town Football Club 76,950 Play Association Tower Hamlets 22,325 Docklands Sailing & Watersports Centre 43,405 Walthamstowe Cricket Club 30,672 The Limes Community Children's Centre 16,000 LB Wandsworth - Kind George's Park 30,000 Peabody Tachbrook Estate 30,000 City of Westminster - Lisson Green Estate 40,000 City of Westminster - Queens Park Court 48,600 Westminster Boating Base 66,467 Aylesbury Vale DC - Berryfields 60,000 Eydon Village Hall 15,000 Abinger Parish Recreation Grounds Charity 25,000 Charlwood Parish Council 39,800 Brockham Parish Council 45,000 Holland Sports Athletics Club 25,000 Horley Town Council 10,000 Frensham Parish Council 8,000 Runnymede Rockets BMX Club 50,000 Abinger Cricket Club 12,000 Byfleet Cricket Club 35,000 Carried forward 3,265,113 5,079,654 27

29 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER DESIGNATED FUNDS (continued) Brought forward 3,265,113 5,079,654 Approved in 2014 (continued) Wey Kayak Club 50,000 Newdigate Cricket Club 70,000 Oakwood Hill Cricket Club 5,000 3,390,113 London 2012 Legacy Stadia - allocated in prior years 850,000 London 2012 Legacy Stadia - allocated in ,150,000 London Marathon Playing Fields and major projects - allocated in prior years 2,428,195 London Marathon Playing Fields and major projects - allocated in ,000 8,018,308 13,097, FUTURE COMMITMENTS The company has made a commitment to provide a further 3.5m of funding in relation to the London 2012 Legacy Stadia. Of this amount, 2m has been designated and the balance of 1.5m will be designated from charitable activities in 2015 and