Company Registration No. 02328741 (England and Wales)
WATERSIDE HOLIDAY GROUP LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2022
10 Bridge Street
Christchurch
Dorset
BH23 1EF
WATERSIDE HOLIDAY GROUP LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11 - 12
Statement of changes in equity
13
Notes to the financial statements
14 - 27
WATERSIDE HOLIDAY GROUP LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mrs C V Hilton
Ms O J Jacobs
Mrs M L Harris
Mrs J H Jacobs
Company number
02328741
Registered office
10 Bridge Street
Christchurch
Dorset
BH23 1EF
Auditor
TC Group
10 Bridge Street
Christchurch
Dorset
BH23 1EF
WATERSIDE HOLIDAY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
The directors present the strategic report for the year ended 31 December 2022.
Fair review of the business
Off the back of what was an exceptional year after COVID lockdowns, trade restrictions and Government support, 2022 saw new challenges. With the global economy impacted by the Ukraine/Russian War, Brexit, and the UK government trying to balance repaying debt with rising inflation, costs skyrocketed, and the business navigated these to end 2022 strongly.
In 2022, the board announced the evolution of the brand, elevating ‘Waterside’ from our Bowleaze site to the overarching brand name. Each park gives something unique to visitors, while all reflect Waterside’s strong values as a family-owned business. Our rebrand aims to reinforce the connection between our parks and the Waterside brand, providing a mark of assurance that Waterside’s values are captured across every location. What’s more, the rebrand will set us up for future growth as we entice new customers and strengthen existing customer perceptions with our refreshed image. Such growth will allow us to invest further in our parks, our teams, and our local communities in the future.
The group, which includes Bowleaze Holiday Park & Spa and Chesil Beach Holiday Park achieved total turnover of £22,843,385 with profit before tax at £3,665,235. Both parks outperformed expectation for the period.
Health, safety, risk management and sustainability continue to be a major focus and the business continues to look at new technologies and processes to improve on these areas further. This has been key when choosing suppliers and materials for our capital investment projects and ensuring that the business finds the correct balance between sustainability and cost.
The Board use multiple KPIs to assess the trading success and financial position of the company - ultimately turnover and profit before tax are a strong indication of successful strategy and decision making by the leadership team and Board. These are interlinked with capital investment - providing a measurement of return.
Capital Investment
2022 has been our biggest year for Capital investment, with the development of the ‘Stables’, a 31-pitch expansion to our Bowleaze site incorporating high end lodges and a natural wildlife area. These lodges go on sale summer 2023 and offer luxury surrounded by the beautiful Dorset countryside.
We have also started our Fleet replenishment programme, buying in new units to update some of the older units we have on our sites and started on works to an Activity field on our Bowleaze site to enhance our offering for 2023.
WATERSIDE HOLIDAY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Principal risks and uncertainties
As with most businesses in the UK the business cost base is being impacted by:
The combination has resulted in an increase on our cost base in every aspect of the business, but the Board have taken a balanced approach in a) Negotiating with key suppliers using a procurement specialist, b) cost management through our new PO system and c) ensuring that we are fair and reasonable with any pricing increases.
Although the view is that inflation will reduce from the middle of 2023, there are a lot of uncertainties impacting this out of our control. However, the Waterside brand remains strong, and the Board are confident that the operational model can flex accordingly to any change in the market.
Strategy
The Group's strategy remains focused on 4 strategic pillars: Team, Customers, Financial Performance and Site Growth. Our aim is to offer the best experience to our customer in the industry, and in 2022 we continued to invest in facilities and team to improve our customer offer as well as our levels of service.
We continue to look to add to our park portfolio and have invested at all our sites to strengthen the core business, create further pitch growth, and enhance our leisure and activities offering.
In 2023 it was announced across the national press that Waterside Holiday Group had been ranked 2nd by Which? Magazine in its first ever survey of Holiday Parks across the UK, scoring 5 stars in all its categories.
Mrs M L Harris
Director
7 June 2023
WATERSIDE HOLIDAY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company continued to be that of operating the Waterside Holiday Park.
Results and dividends
Ordinary dividends were paid amounting to £1,014,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs C V Hilton
Ms O J Jacobs
Mrs M L Harris
Mrs J H Jacobs
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WATERSIDE HOLIDAY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
Auditor
The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mrs M L Harris
Director
7 June 2023
WATERSIDE HOLIDAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WATERSIDE HOLIDAY GROUP LIMITED
- 6 -
Opinion
We have audited the financial statements of Waterside Holiday Group Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
WATERSIDE HOLIDAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WATERSIDE HOLIDAY GROUP LIMITED
- 7 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
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 statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
WATERSIDE HOLIDAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WATERSIDE HOLIDAY GROUP LIMITED
- 8 -
Our approach was as follows:
1) We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations.
2) We focused on specific laws and regulations which we consider may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, health and safety legislation and any other specific compliance measures.
3) We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.
4) Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
5) We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
To address the risk of fraud through management bias and override of controls, we;
a) performed analytical procedures to identify any unusual or unexpected relationships
b) tested journal entries to identify unusual transactions
c) assessed whether judgement and assumptions made in determining the accounting estimates set out in financial statements were indicative of potential bias
d) investigated the rationale behind significant or unusual transactions
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to;
a) agreeing financial statement disclosure to underlying supporting documentation
b) enquiring of management as to actual and potential litigation and claims
c) reviewing correspondence with HMRC, relevant regulator and the company's legal advisors as considered
necessary.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
WATERSIDE HOLIDAY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WATERSIDE HOLIDAY GROUP LIMITED
- 9 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Christopher Ratcliffe ACA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
7 June 2023
Office: Christchurch
WATERSIDE HOLIDAY GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Year
Period
ended
ended
31 December
31 December
2022
2021
Notes
£
£
Turnover
22,843,385
29,348,367
Cost of sales
(7,278,601)
(10,316,528)
Gross profit
15,564,784
19,031,839
Administrative expenses
(11,928,193)
(13,825,241)
Other operating income
248,963
Operating profit
3
3,636,591
5,455,561
Interest receivable and similar income
317,528
219,308
Interest payable and similar expenses
6
(288,884)
(218,907)
Profit before taxation
3,665,235
5,455,962
Tax on profit
7
(892,482)
(515,818)
Profit for the financial year
2,772,753
4,940,144
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 14 to 27 form part of these financial statements
WATERSIDE HOLIDAY GROUP LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 11 -
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
9
1
1
Other intangible assets
9
87,212
124,574
Total intangible assets
87,213
124,575
Tangible assets
10
14,780,907
14,508,096
14,868,120
14,632,671
Current assets
Stocks
11
1,065,237
579,345
Debtors
12
20,388,353
12,999,123
Cash at bank and in hand
6,772,635
10,896,835
28,226,225
24,475,303
Creditors: amounts falling due within one year
13
(10,800,712)
(8,704,025)
Net current assets
17,425,513
15,771,278
Total assets less current liabilities
32,293,633
30,403,949
Creditors: amounts falling due after more than one year
14
(7,009,873)
(7,363,908)
Provisions for liabilities
Deferred tax liability
16
753,963
268,997
(753,963)
(268,997)
Net assets
24,529,797
22,771,044
Capital and reserves
Called up share capital
18
20,000
20,000
Revaluation reserve
265,000
265,000
Profit and loss reserves
24,244,797
22,486,044
Total equity
24,529,797
22,771,044
WATERSIDE HOLIDAY GROUP LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2022
31 December 2022
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 7 June 2023 and are signed on its behalf by:
Mrs M L Harris
Director
Company Registration No. 02328741
The notes on pages 14 to 27 form part of these financial statements
WATERSIDE HOLIDAY GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2020
20,000
265,000
18,712,567
18,997,567
Period ended 31 December 2021:
Profit and total comprehensive income for the period
-
-
4,940,144
4,940,144
Dividends
8
-
-
(1,166,667)
(1,166,667)
Balance at 31 December 2021
20,000
265,000
22,486,044
22,771,044
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
2,772,753
2,772,753
Dividends
8
-
-
(1,014,000)
(1,014,000)
Balance at 31 December 2022
20,000
265,000
24,244,797
24,529,797
The notes on pages 14 to 27 form part of these financial statements
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
1
Accounting policies
Company information
Waterside Holiday Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is 10 Bridge Street, Christchurch, Dorset, BH23 1EF. The principal place of business is Waterside Holiday Park, Bowleaze Cove, Weymouth, Dorset, England, DT 3 6PP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel and transactions with wholly owned subsidiaries within the group.
The financial statements of the company are consolidated in the financial statements of Waterside Holiday Parks Limited. These consolidated financial statements are available from its registered office, 10 Bridge Street, Christchurch, Dorset, United Kingdom, BH23 1EF.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
1.3
Reporting period
The comparative reporting figures represent a 14 month trading period, due to the group extending the reporting date to 31 December. On this basis, the comparative figures are not entirely comparable.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from holidays sold, and associated income, is recognised in the accounting period in which the holiday occurs. Caravan sales are recognised in the accounting period in which the company has fulfilled all of its obligations in respect of the sale which is typically when all the proceeds have been received and ownership is transferred. Income from pitch fees and other services is recognised in the accounting period in which the income is due to the company.
1.5
Intangible fixed assets - goodwill
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
5 years
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
4% on cost
Fixtures and fittings
15% on reducing balance
Motor vehicles
25% on reducing balance
Caravans
10% on reducing balance
Other assets
15% on reducing balance, 10% on cost and 4% on cost
Computer equipment (Hardware) included with fixed assets is depreciated at 20% on cost.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.9
Stocks
Stock is measured at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised.
Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
The fixed asset depreciation charge is derived from the estimated useful economic life and residual value of the asset. These are reviewed annually alongside any impairment indicators.
The directors assess the closing debtor balances for recoverability and those not considered probable of recovery are provided for in full. For the current year, the directors have assessed the balances outstanding and consider no provision to be required against these.
Accruals for goods or services not yet invoiced are estimated based on historic activity with the supplier or quotations received ahead of invoicing. Accrued management fee charges are recognised at the invoice value raised post year end by the third party.
Prepayments are based on actual invoices received and costs allocated across the relevant accounting period on a straight line basis of the time period in which the service relates to.
Deferred income represents owners' site fees and rates paid in advance. These are deferred based on a monthly basis, applied under a straight line method, over the contracted period of 12 months.
Stock is held at the lower of cost and net realisable value which is based on the estimated sales value of the asset at the year end in relation all market data available to the directors.
There were no other key sources of estimation uncertainty.
3
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(248,963)
Fees payable to the company's auditor for the audit of the company's financial statements
40,000
36,000
Depreciation of owned tangible fixed assets
1,265,355
1,491,401
Profit on disposal of tangible fixed assets
(93,970)
(58,311)
Amortisation of intangible assets
37,362
36,668
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Administration and site support
231
192
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
6,039,600
7,302,092
Social security costs
499,062
764,788
Pension costs
144,676
117,401
6,683,338
8,184,281
5
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
49,797
63,341
Company pension contributions to defined contribution schemes
-
667
49,797
64,008
For reporting purposes, the directors consider they are the key management personnel of the company.
6
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
288,884
218,907
7
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
407,516
825,072
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
7
Taxation
2022
2021
£
£
(Continued)
- 22 -
Deferred tax
Origination and reversal of timing differences
484,966
(309,254)
Total tax charge
892,482
515,818
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
3,665,235
5,455,962
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
696,395
1,036,633
Group relief
(235,238)
Capital allowances in excess of depreciation
214,865
(274,498)
Profit / loss on fixed asset disposals
(18,778)
(11,079)
Taxation charge for the year
892,482
515,818
8
Dividends
2022
2021
£
£
Final paid
1,014,000
1,166,667
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
9
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2022 and 31 December 2022
1
187,961
187,962
Amortisation and impairment
At 1 January 2022
63,387
63,387
Amortisation charged for the year
37,362
37,362
At 31 December 2022
100,749
100,749
Carrying amount
At 31 December 2022
1
87,212
87,213
At 31 December 2021
1
124,574
124,575
10
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Caravans
Other assets
Total
£
£
£
£
£
£
Cost
At 1 January 2022
12,442,986
9,511,551
331,937
4,112,005
2,234,647
28,633,126
Additions
945,626
55,620
922,005
16,765
1,940,016
Disposals
(861,057)
(861,057)
At 31 December 2022
12,442,986
10,457,177
387,557
4,172,953
2,251,412
29,712,085
Depreciation and impairment
At 1 January 2022
4,271,431
6,511,253
222,707
1,489,445
1,630,194
14,125,030
Depreciation charged in the year
257,362
607,787
38,900
272,652
88,654
1,265,355
Eliminated in respect of disposals
(459,207)
(459,207)
At 31 December 2022
4,528,793
7,119,040
261,607
1,302,890
1,718,848
14,931,178
Carrying amount
At 31 December 2022
7,914,193
3,338,137
125,950
2,870,063
532,564
14,780,907
At 31 December 2021
8,171,555
3,000,298
109,230
2,622,560
604,453
14,508,096
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
10
Tangible fixed assets
(Continued)
- 24 -
The freehold land and buildings that the company held at 1 March 1989 were revalued at this date by a firm of professional valuers at £2,765,000, being the deemed cost for the asset and generating a revaluation surplus of £265,000.
The above valuation formed part of a one off uplift allowed under UKGAAP. All tangible fixed assets continue to be measured at cost less any accumulated depreciation and impairment losses.
11
Stocks
2022
2021
£
£
Bar stock
28,482
22,111
Caravan stock
1,036,755
557,234
Total
1,065,237
579,345
12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,366,795
1,063,625
Corporation tax recoverable
1,389,376
134,866
Amounts owed by participating interests
15,709,030
11,243,594
Other debtors
29,431
17,444
Prepayments and accrued income
1,893,721
539,594
20,388,353
12,999,123
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
13
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
15
424,842
424,842
Trade creditors
446,336
122,817
Amounts owed to participating interests
2,647,833
217,314
Taxation and social security
672,206
785,470
Other creditors
6,609,495
7,153,582
10,800,712
8,704,025
Directors' current accounts £1,715 (2021 - £5,938), are included within Other Creditors. These are not secured and are considered repayable on demand.
14
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
15
7,009,873
7,363,908
15
Loans and overdrafts
2022
2021
£
£
Bank loans
7,434,715
7,788,750
Payable within one year
424,842
424,842
Payable after one year
7,009,873
7,363,908
The outstanding loan balance is secured against the assets of Waterside Holiday Group Limited.
The bank loan is repayable in equal monthly instalments over a 5 year term (2025 year end) and attracts interest of 2.35% above base rate.
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Deferred tax
753,963
268,997
2022
Movements in the year:
£
Liability at 1 January 2022
268,997
Charge to profit or loss
484,966
Liability at 31 December 2022
753,963
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
144,676
117,401
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
2,000,000
2,000,000
20,000
20,000
The details of the rights, preferences and restrictions attached to each class of share are available at Companies House.
WATERSIDE HOLIDAY GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 27 -
19
Reserves
The revaluation reserve represents the uplift on freehold land and buildings held at 1 March 1989 taken to be the revised deemed cost of the assets. No further application of the revaluation model has been applied for valuation of assets.
The profit and loss reserve represents cumulative profits or losses, net of dividends and other adjustments.
20
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
20,833
11,064
Between two and five years
12,401
9,121
33,234
20,185
21
Capital commitments
At the year end, the company had entered into capital commitments totaling £2,277,851 (2021 - £nil) whereby goods and services would be received post year end.
22
Related party transactions
During the period, there were net transactions with a company under common ultimate control, but external to the Waterside Holiday Parks Limited group, of £2,416,519 (2021 - £471,342). At the reporting date, £2,633,833 (2021 - £217,314) was due to the company under common ultimate control. These transactions represent a management charge (£63,797) and recharges performed at cost value and provision of cash funding (£2,352,163).
23
Ultimate controlling party
Waterside Holiday Group Limited is a wholly owned subsidiary of Waterside Holiday Parks Limited. Consolidated accounts can be found on Companies House. The registered office address of this entity is 10 Bridge Street, Christchurch, Dorset, United Kingdom, BH23 1EF.
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