The Treasurer’s Report

This last seaon, 2021/22, has been an important year in investing behind our strategic priority of developing our cadre of professionals. The Investing in Professionals (IiP) programme has been in incubation for three years, but only partial roll-out could occur in previous years due to covid. In the current financial year, IiP was fully rolled out for Tennis.

In terms of the T&RA profit and loss statement for the year 2021/22, we posted a small loss of £17.6k compared to a profit of £76.4k the previous year. This primarily was due to a significant increase in the size of grants authorised, principally for professionals. Grants totalled £124.3k compared to £34.7k the previous year, a difference of £89.6k. We manage the finances in three areas - Regular Expenditure, Tournaments and Development. With Development expected to be funded by investments and donations. - Regular expenditure; this covers principally subscriptions less the cost of supporting members, including the hard-working office staff, marketing, IT & communications. Regular activities ran a deficit of 35.2k. Subscriptions income was flat as a decline in membership numbers were offset by an increase in subscription rates. Staff numbers were maintained at similar levels to 2021, but costs rose as furlough payments were no longer being received following the end of that programme. - Tournaments; net tournament costs exceeded sponsorship and donations by £23.3k prior to allocation of staff costs to support the organising of tournaments.

This deficit was slightly more than the previous year’s deficit of £2.3k, as tournaments restarted after the covid hiatus. We continue to seek a sponsor for Tennis in order to address this deficit. - Development: This covers court & facilities, building and refurbishment, the recruitment and training of professionals and encouraging participation in the two games. As noted above, 2021/22 saw significant investment in professional development and training.

The Tennis IiP programme investment was £82.2k, and £9.2k was spent supporting Rackets professionals.

The T&RA received a generous donation of £40k from the Real Champions Club to help fund the cost of IiP. In addition, to these investments in the development of professionals, the T&RA provided grants of £22k for court improvements and £12.6k encouraging member participation. - Investments: Interest and dividends were £59k slightly ahead of the previous year. After dividends were reduced by companies early in Covid, these have largely now been restored and in many cases increased. We experienced a loss of £200k in realised/unrealised gains on our investment portfolio, these were all unrealised losses. Over the past year the MSCI World Index is down 9.4%, with the declines occurring in the first half of calendar 2022. - Our objective is to breakeven on Regular activities and Tournaments over time. In contrast, Development costs are expected to be funded by the returns on our investment portfolio - interest, dividends and capital gains and donations. This will not be true every year as development expenditure, particularly on courts is irregular in nature, and investment returns vary depending on stock market conditions. As at year end 2021/22, the T&RA had £2.6 million in assets – £1.8 million in unrestricted funds, £0.5 million in restricted funds and £0.3 million 2021/22 has been an in endowment funds. As a reminder, important year in investing the unrestricted funds are held to behind our strategic priority ensure adequate income and capital generation and to provide a firm of developing our cadre of foundation for future grants; there are professionals. seven restricted funds, these funds having been donated for specific purposes e.g., for the training and development of professional coaches, while we can only use the income from the endowment fund for development of the games. Total assets on the balance sheet have fallen from £2.8 million from the previous year reflecting falls in financial markets in the first half of calendar year 2022. Turning to the outlook for 2021/22. We would expect regular expenditures to become more in line with income as we benefit from a recovery in membership fees following the annual rise in subscriptions rates and a recovery in membership, while we look to maintain staff levels close to current levels. We will continue to spend on upgrading RTO, which has been slightly delayed due to resourcing challenges. We will invest heavily in professional development, with the continuation of IiP and plans to initiate a similar programme for Rackets professionals. The level of grants for courts will depend to the extent current discussions on new courts at Hewell Grange and other locations coming to fruition. Finally, we expect interest and dividends to be slightly higher than the current year, as interest rates rise. Capital gains clearly depend on the performance of financial markets and we have strong confidence in our investment managers to ably manage volatility in these markets.