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Company Registration Number 00346999























LAKE DISTRICT ESTATES COMPANY LIMITED





FINANCIAL STATEMENTS





 31 JANUARY 2023
























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LAKE DISTRICT ESTATES COMPANY LIMITED
 

COMPANY INFORMATION


Directors
Mr P R W Hensman OBE 
Mrs G A Townsend 
Lady J D Boyd 
Mrs C M Seel (resigned 31 December 2022)
Mr E J Clarkson Webb 
Mrs A P Wix 
Mrs L C B Langton 
Mr T L W Raynsford 
Mr R E W Hensman 
Mrs V J Russell 
Mrs C Bourne (appointed 21 April 2023)
Mrs A Boyd (appointed 21 April 2023)




Company secretary
J E Litten



Registered number
00346999



Registered office
Maudlands
Maude Street

Kendal

Cumbria

LA9 4QD




Independent auditors
Armstrong Watson Audit Limited
Chartered Accountants and Statutory Auditors

Fairview House

Victoria Place

Carlisle

Cumbria

CA1 1HP





 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Statement of Comprehensive Income
10
Statement of Financial Position
11 - 12
Statement of Changes in Equity
13
Notes to the Financial Statements
14 - 32


 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

Objectives
 
To be an influential family owned player in the Cumbrian tourism industry, contributing positively to the economy,
community and environment of the region.

Strategy
 
The objective will be delivered by:
• Creating special, individual places in outstanding natural surroundings.
• Delivering consistently high quality experiences and memories for our visitors.
• Developing our workforce so that they are well-trained, motivated and capable employees.
• Acting sustainably and responsibly by putting environmental, community and health and safety
considerations at the centre of everything we do.

Principal risks and uncertainties
 
The company is principally involved in the provision of visitor attractions and public transport, retail outlets and accommodation for visitors and others in the Lake District and Cumbria. As such, the principal risks it faces are:
• Events which deter or prevent holidaymakers travelling and using facilities which the company has to offer: such events would include health alarms and pandemics, terrorism and natural disasters, particularly storms and flooding. The group seeks to mitigate the impact of such events both by building in resilience and through insurance.
• The economic climate: holiday spending is discretionary and, at a time when people’s budgets are under pressure, spending on holidays can be one of the first things to be cut. Exchange rates also have an effect with more people holidaying in the UK when Sterling is weak.
• Interest rates: the company has invested heavily in recent years with much of the funding provided by bank borrowing. As a result, interest is now a significant cost. The company mitigates the risk of adverse interest rates through the use of financial instruments.
• The weather: the number of visitors is particularly dependent on good weather, especially in the main summer season between mid-July and the end of August when a substantial part of the income is earned. The company continues to weatherproof its facilities to enable visitors to enjoy themselves whatever the weather.
• Health and Safety: there are health and safety risks associated with the company’s business. The company seeks to minimise the likelihood and potential effect of an accident by the implementation of rigorous health and safety policies. It also recognises that sometimes accidents are outside its control and protects itself from any claims that might consequently result by carrying good third-party insurance cover.

Business review
Performance during the year ended 31 January 2023
Performance was strong across the business, with all areas open to visitors for the full year without Government lock-downs or social distancing restrictions for the first time since 2019. As a result, turnover was up 7% on prior year at £15.8m (PY: £14.7m). Other Operating Income returned to a normal level of £Nil as all Covid related support and grants ended in the prior year (PY: £953k).
Following the high level of caravan sales in 2021 across our holiday parks we began the year with limited pitch availability. In addition, we have seen fewer owners leaving the parks, reducing the opportunities for new sales. Conversely, we also saw demand begin to slow as we approached the 2022 season. As a result, we achieved lower numbers of caravan sales than planned; however, the limited availability has enabled us to maintain margins in spite of the increased cost of sales. A focus of 2022 was to increase the number of pitches available on our parks and we were successful in our planning application to add 8 new lodge and caravan pitches at Waterfoot, our park on Ullswater. Work began on these in October and the pitches became available for sale shortly after the year end. 
 
Page 1

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Demand for our self-catering accommodation remained strong and we maintained a similar booking pattern to 2021. We invested in our self-catering offering during the year with a new glamping offering of ‘S-pods’ and through the successful planning application to renovate unused space in the Mansion House at Waterfoot into apartments. This work also began in October and the apartments will be available to book in the Summer. It was a positive year for the Ullswater ‘Steamers’ with the attraction able to operate a full year of services, including Easter, for the first time since 2019. Passenger numbers increased from 2021 but continued to lag behind pre Covid levels. Adverse weather in the autumn impacted visitor numbers and caused a higher number of cancelled sailing days than normal. 
Retail sales have been steady throughout the year and again benefitted from the lack of COVID restrictions; however, many of the physical shops continue to be adversely impacted by the lack of international visitors. In March we opened our new flagship shop in Keswick, with a larger size over two floors allowing us to include a wider range of products and offer a small café. Our online offering, The Veg Patch, has also seen strong growth as a result of focused marketing activity. Supply chain pressures have continued to impact our ability to procure stock and we have seen significant increases in product costs. 
Throughout the year, rental property income remained stable with high occupancy rates bringing a secure cash stream into the business.
Going Concern and Outlook
At this early stage of 2023 trading has been in line with our expectations, with many of the trends seen in 2022 continuing. The domestic holiday market remains strong but booking patterns are moving back to the shorter lead times seen pre-pandemic. We continue to be impacted by limited international visitors and pressures on disposable incomes have intensified further. Our strong cash position going into the year and our forecasted trading over the next 12 months gives us confidence in our ability to continue to operate as a going concern. We are looking forward to seeing the returns from investments in 2022 and continuing the development of our businesses

Financial key performance indicators
 
The directors monitor the performance of the group through turnover, profitability and cash flow. The pandemic continued to reduce the meaningfulness of comparison of turnover and profitability with previous years but performance against forecasts and cash flow was monitored carefully.
The strong trading outlined above resulted in an excellent financial performance for the year. The return to a full year of trading drove an increase in turnover of 7% to £15.8m (PY: £14.7m) and gross margin was increased to 64% (PY: 61%) as a result of the increase in fares at the attractions and continued strong margins on caravan and lodge sales. Operating profit of £2.5m is down on prior year (PY: £3.2m) due to the absence of Covid related grants as well as increasing costs, particularly electricity, employee wages and fuel. Group profitability is shown on page 10 of this report. The cash balance at the year end was £650k (PY: £1.3m) with the reduction due to capital investment, particularly pitch development and improving facilities across our caravan and holiday parks. 
Health & Safety
Health and safety is always a major focus across the group. Health and safety regimes have continued to evolve during the year to ensure that both staff and customers remain safe. The group continued to place increased emphasis on the reduction of our carbon footprint. This is a key area of discussion for new investments but also for improvements that can be made to existing areas of the business with an amount set aside in our budget for these projects. Progress to date includes replacing fossil fuel cars and vehicles with electric vehicles, the introduction of technology to better control heating in our holiday properties and modernising heating systems in our older residential properties. The dependence on single use materials necessary during Covid regardless of the product’s environmental credentials, was also reduced, with the reintroduction of reusable cups and plates.

Page 2

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

People
 
Our people are key to consistently delivering high quality experiences and memories for our visitors and they continue to show great commitment and enthusiasm in providing this. They have responded well to another year of change as we’ve assessed which practices introduced during Covid provide value to the customer and should be kept, such as the online booking systems at the attractions, and where we should transition back to prepandemic ways of working, such as in person greetings for holiday guests. Our people are core to our future success which is why we continue to invest in their training and development. On behalf of the Board, I would like to thank each and every one of them for their valued contribution.


This report was approved by the board and signed on its behalf.



................................................
Mr P R W Hensman OBE
Director

Date: 24 July 2023

Page 3

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

The directors present their report and the financial statements for the year ended 31 January 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the company is the provision of visitor attractions and public transport, retail outlets and accommodation for visitors and others in the Lake District and Cumbria.

Results and dividends

The profit for the year, after taxation, amounted to £1,587,190 (2022 - £1,995,282).

During the year dividends of £1,200,000 (2022 - £1,000,000) were declared.

Directors

The directors who served during the year were:

Mr P R W Hensman OBE 
Mrs G A Townsend 
Lady J D Boyd 
Mrs C M Seel (resigned 31 December 2022)
Mr E J Clarkson Webb 
Mrs A P Wix 
Mrs L C B Langton 
Mr T L W Raynsford 
Mr R E W Hensman 
Mrs V J Russell 

Page 4

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Future developments

Plans for the future include improvement to the company’s digital systems, improved facilities at the holiday parks, upgrading of properties in general to meet energy performance standards and extending the retail offer. Work will also be carried out to assess the company’s carbon footprint and plans drawn up for moving to net zero.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There were no post balance sheet events to disclose at the date the financial statements were signed.

Auditors

The auditorsArmstrong Watson Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
Mr P R W Hensman OBE
Director

Date: 24 July 2023

Page 5

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT ESTATES COMPANY LIMITED
 

Opinion


We have audited the financial statements of Lake District Estates Company Limited (the 'company') for the year ended 31 January 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 January 2023 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Page 6

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT ESTATES COMPANY LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the 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 or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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 directors' 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 set out on page 4, 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.


Page 7

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT ESTATES COMPANY LIMITED (CONTINUED)


Auditors' 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 Auditors' 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate competence,   capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and    other management, and from our commercial knowledge and experience of the sector;
• we focused on specific laws and regulations which we considered may have a direct material effect on the  financial statements or the operations of the company, such as the Companies Act 2006, taxation     legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.
• we assessed the extent of compliance with the laws and regulations identified above through making    enquiries of management and inspecting legal correspondence; and
• identified laws and regulations were communicated within the audit team regularly and the team remained   alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their    knowledge of actual, suspected and alleged fraud;
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and    regulations; and
• reviewing the key areas of the financial statements most susceptible to fraud whilst tailoring our audit    plans.
To address the risk of fraud through management bias and override of controls, we:
-  performed analytical procedures to identify any unusual or unexpected relationships;
-  tested journal entries to identify unusual transactions;
-  assessed whether judgements and assumptions made in determining the accounting estimates, such as   the investment property valuations were indicative of potential bias;
-  investigated the rationale behind significant or unusual transactions; and
Page 8

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT ESTATES COMPANY LIMITED (CONTINUED)



In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-  agreeing financial statement disclosures to underlying supporting documentation;
-  reading the minutes of meetings of those charged with governance;
-  enquiring of management as to actual and potential litigation and claims;
-  reviewing correspondence with HMRC and the company’s legal advisors; 
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

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 2006Our 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 Auditors' 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.





Joanna Gray (Senior Statutory Auditor)
  
for and on behalf of
Armstrong Watson Audit Limited
 
Chartered Accountants and Statutory Auditors
  

Carlisle


24 July 2023
Page 9

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

2023
2022
Note
£
£

  

Turnover
 4 
15,825,811
14,774,952

Cost of sales
  
(5,745,056)
(5,752,460)

Gross profit
  
10,080,755
9,022,492

Administrative expenses
  
(8,028,407)
(7,118,655)

Other operating income
 5 
-
953,457

Fair value movements
  
508,742
410,155

Operating profit
 6 
2,561,090
3,267,449

Interest receivable and similar income
 10 
2,272
1,696

Interest payable and similar expenses
 11 
(479,681)
(496,093)

Profit before tax
  
2,083,681
2,773,052

Tax on profit
 12 
(496,491)
(777,770)

Profit for the year
  
1,587,190
1,995,282

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 32 form part of these financial statements.

Page 10

 
LAKE DISTRICT ESTATES COMPANY LIMITED
REGISTERED NUMBER: 00346999

STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
37,558
78,713

Tangible assets
 15 
19,504,528
19,366,227

Investments
 16 
242
242

Investment property
 17 
27,075,845
26,977,940

  
46,618,173
46,423,122

Current assets
  

Stocks
 18 
2,079,241
1,468,197

Debtors: amounts falling due after more than one year
 19 
-
88,631

Debtors: amounts falling due within one year
 19 
1,643,352
819,465

Cash at bank and in hand
 20 
650,071
1,320,490

  
4,372,664
3,696,783

Creditors: amounts falling due within one year
 21 
(4,411,808)
(4,147,934)

Net current liabilities
  
 
 
(39,144)
 
 
(451,151)

Total assets less current liabilities
  
46,579,029
45,971,971

Creditors: amounts falling due after more than one year
 22 
(17,336,419)
(17,239,947)

Provisions for liabilities
  

Deferred tax
 24 
(4,108,067)
(3,984,671)

  
 
 
(4,108,067)
 
 
(3,984,671)

Net assets
  
25,134,543
24,747,353

Page 11

 
LAKE DISTRICT ESTATES COMPANY LIMITED
REGISTERED NUMBER: 00346999

STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JANUARY 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 25 
8,569
8,569

Share premium account
 26 
42,845
42,845

Revaluation reserve
 26 
12,279,564
12,788,306

Profit and loss account
 26 
12,803,565
11,907,633

  
25,134,543
24,747,353


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 24 July 2023.




................................................
Mr P R W Hensman OBE
................................................
Mr T L W Raynsford
Director
Director

The notes on pages 14 to 32 form part of these financial statements.

Page 12

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023


Called up share capital
Share premium account
Investment property fair value reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 February 2021
8,569
42,845
12,959,030
10,741,627
23,752,071


Comprehensive income for the year

Profit for the year

-
-
-
1,995,282
1,995,282


Other comprehensive income for the year
-
-
-
-
-


Total comprehensive income for the year
-
-
-
1,995,282
1,995,282


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(1,000,000)
(1,000,000)

Transfer between other reserves
-
-
(170,724)
170,724
-


Total transactions with owners
-
-
(170,724)
(829,276)
(1,000,000)



At 1 February 2022
8,569
42,845
12,788,306
11,907,633
24,747,353


Comprehensive income for the year

Profit for the year

-
-
-
1,587,190
1,587,190


Other comprehensive income for the year
-
-
-
-
-


Total comprehensive income for the year
-
-
-
1,587,190
1,587,190


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(1,200,000)
(1,200,000)

Transfer between other reserves
-
-
(508,742)
508,742
-


Total transactions with owners
-
-
(508,742)
(691,258)
(1,200,000)


At 31 January 2023
8,569
42,845
12,279,564
12,803,565
25,134,543


The notes on pages 14 to 32 form part of these financial statements.

Page 13

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

1.


General information

Lake District Estates Company Limited ('the company') is a limited company incorporated in the United
Kingdom. The address of the registered office and principal place of business is Maudlands, Maude
Street, Kendal, Cumbria, LA9 4QD.
The principal activity of the company is the provision of visitor attractions and public transport, retail outlets
and accommodation for visitors and others in the Lake District and Cumbria.
These financial statements have been presented in Pound Sterling as this is the currency of the primary
economic environment in which the company operates. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A.

This information is included in the consolidated financial statements of Lake District Holdings Limited as at 31 January 2023 and these financial statements may be obtained from the Registered Office.

 
2.3

Going concern

At the balance sheet date, the company had £39k of net current liabilities and net assets of £25,134k after a profit after tax of £1,587k.
Included in current liabilities is £1,570k deferred site fee income, which is not a creditor requiring to be settled via cash.
The Directors continue to monitor the cash position and have produced cashflow forecasts to ensure that there is sufficient cash to pay creditors as liabilities fall due for at least 12 months from signing the financial statements. They therefore deem the going concern basis appropriate. 

Page 14

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.6

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 15

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Page 16

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
10
years

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 17

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)


2.14
Tangible fixed assets (continued)

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2% straight line
Plant and machinery
-
2% - 25% straight line
Motor vehicles
-
20% - 25% straight line
Fixtures and fittings
-
10% - 20% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Investment property

Investment property is carried at fair value; the decision to revalue is determined by the directors annually and any valuation is carried out by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the Statement of Comprehensive Income. Where the directors cannot reasonably determine this value, they use an independent and qualified valuer to undertake a third party valuation.
Deferred tax is provided on these gains at the rate expected to apply when the property is sold.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 18

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.21

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

  
2.22

VAT deferral

Where the payment of VAT liabilities has been deferred, the liability is included within other taxation
and social security within creditors due within one year.

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 19

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of these financial statements require management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
Judgments and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. 
(a) Establishing useful economic lives for depreciation purposes of property, plant and equipment
Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant portion of the total fixed assets. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The directors regularly review these assets useful economic lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation charges for the period. Details of the depreciation policies based on estimated useful economic lives are included in accounting policies note 2.15.
(b) Revaluation of investment property
Under FRS102, investment property must be accounted for at its fair value in the financial statements. The directors review the revaluation each year, which requires their judgement to apply reasonable assumptions when calculating the true and fair value of each investment property. The directors deemed using a yield percentage of annual rental income an appropriate measure to calculate the fair value of each investment property to the group. They also use professional surveyors to help assess the fair value of the investment property portfolio.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Ownership and operation of caravan parks and other property
12,209,656
11,933,016

Passenger craft on Lake Ullswater
1,736,321
1,367,579

Specialised retail outlets
1,879,834
1,474,357

15,825,811
14,774,952


All turnover arose within the United Kingdom.

Page 20

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

5.


Other operating income

2023
2022
£
£

Other operating income
-
750

Coronavirus Job Retention Scheme income
-
174,811

Other grant income
-
777,896

-
953,457



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation on tangible fixed assets
689,013
625,639

Amortisation of intangible assets
40,250
40,250

Fair value movements on investment property
(508,742)
(410,155)

Other operating lease rentals
186,679
136,820


7.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
13,937
12,830

Page 21

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,658,815
2,545,843

Social security costs
208,677
190,347

Pension scheme costs
97,490
87,872

2,964,982
2,824,062


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Holiday park and retail
99
95



Steamers operations
32
34



Management
5
5

136
134


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
142,701
134,218

142,701
134,218



10.


Interest receivable

2023
2022
£
£


Other interest receivable
2,272
1,696

2,272
1,696

Page 22

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
479,681
495,763

Other interest payable
-
330

479,681
496,093


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
373,095
478,281

Adjustments in respect of previous periods
-
(15,359)


373,095
462,922


Total current tax
373,095
462,922

Deferred tax


Origination and reversal of timing differences
123,396
-

Movement on revaluation surplus
-
314,848

Total deferred tax
123,396
314,848


Taxation on profit on ordinary activities
496,491
777,770
Page 23

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,083,682
2,773,052


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
395,900
526,880

Effects of:


Non-tax deductible amortisation of goodwill and impairment
-
1,642

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
13,690
2,709

Capital allowances for year in excess of depreciation
7,664
15,796

Fair value adjustment
108,740
(77,929)

Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
(152,899)
(6,176)

Movement in deferred tax
123,396
314,848

Total tax charge for the year
496,491
777,770


Factors that may affect future tax charges

In May 2021 the UK Parliament substantively enacted an increase in the rate of Corporation tax to 25%
which will apply from 1 April 2023.


13.


Dividends

2023
2022
£
£


Dividends
1,200,000
1,000,000

1,200,000
1,000,000

Page 24

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

14.


Intangible assets




Goodwill

£



Cost


At 1 February 2022
827,611



At 31 January 2023

827,611



Amortisation


At 1 February 2022
748,898


Charge for the year on owned assets
41,155



At 31 January 2023

790,053



Net book value



At 31 January 2023
37,558



At 31 January 2022
78,713



Page 25

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

15.


Tangible fixed assets





Freehold and leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 February 2022
16,744,199
7,387,164
366,949
457,156
24,955,468


Additions
316,360
707,354
-
40,973
1,064,687


Disposals
(48,535)
(495,225)
(30,965)
(13,320)
(588,045)


Transfers between classes
(137,250)
(41,369)
-
41,369
(137,250)



At 31 January 2023

16,874,774
7,557,924
335,984
526,178
25,294,860



Depreciation


At 1 February 2022
889,507
4,089,555
329,081
281,099
5,589,242


Charge for the year on owned assets
180,915
459,408
12,279
36,409
689,011


Disposals
-
(447,060)
(27,541)
(13,320)
(487,921)


Transfers between classes
-
(41,369)
-
41,369
-



At 31 January 2023

1,070,422
4,060,534
313,819
345,557
5,790,332



Net book value



At 31 January 2023
15,804,352
3,497,390
22,165
180,621
19,504,528



At 31 January 2022
15,854,692
3,297,610
37,868
176,057
19,366,227

The carrying value of freehold land which is not subject to depreciation is £9,329,929 (2022 - £9,329,929).
Disposals in the current year include a write off following a physical verification exercise. All assets removed had a nil net book value and a combined cost and accumulated depreciation of £337k.

Page 26

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

16.


Fixed asset investments





Listed investments

£



Cost or valuation


At 1 February 2022
242



At 31 January 2023
242





Listed investments


The aggregate market value of listed investments is £498 (2022 - £498) which differs from the carrying value in the financial statements.



17.


Investment property


Investment property

£



Valuation


At 1 February 2022
26,977,940


Additions at cost
89,163


Disposals
(500,000)


Surplus on revaluation
508,742



At 31 January 2023
27,075,845

The 2023 valuations were made by Savills in January 2023, on an open market value for existing use basis.



At 31 January 2023



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
10,246,010
10,246,010

Accumulated depreciation and impairments
(1,008,899)
(803,979)

9,237,111
9,442,031

The Directors believe the fair value to be appropriate at 31 January 2023.

Page 27

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

18.


Stocks

2023
2022
£
£

Retail finished goods
708,910
478,227

Caravans and other finished goods
1,370,331
989,970

2,079,241
1,468,197



19.


Debtors

2023
2022
£
£

Due after more than one year

Amounts owed by group undertakings
-
88,631

-
88,631


2023
2022
£
£

Due within one year

Trade debtors
1,147,788
501,402

Prepayments and accrued income
495,564
318,063

1,643,352
819,465



20.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
650,071
1,320,490

650,071
1,320,490


Page 28

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

21.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
956,895
976,367

Trade creditors
792,997
564,275

Amounts owed to group undertakings
22,000
22,000

Corporation tax
203,112
286,708

Other taxation and social security
29,203
25,834

Other creditors
1,891
1,500

Accruals and deferred income
2,405,710
2,271,250

4,411,808
4,147,934


The bank loans included above are secured by a legal fixed charge over specific land and buildings held
by the company.


22.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
11,028,591
11,970,979

Amounts owed to group undertakings
6,307,828
5,268,968

17,336,419
17,239,947


Page 29

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

23.


Loans


The company has variable rate bank loans secured with fixed and floating charges against certain assets of the group. Interest is payable at variable rates, at between 1.1% and 2.8% (1.1% and 2.8% 2022) above the Bank of England Base Rate.
Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
956,895
976,367


956,895
976,367

Amounts falling due 1-2 years

Bank loans
942,180
956,894


942,180
956,894

Amounts falling due 2-5 years

Bank loans
2,751,553
3,086,610


2,751,553
3,086,610

Amounts falling due after more than 5 years

Bank loans
7,334,858
7,927,475

7,334,858
7,927,475

11,985,486
12,947,346



24.


Deferred taxation




2023


£






At beginning of year
(3,984,671)


Charged to profit or loss
(123,396)



At end of year
(4,108,067)

Page 30

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
 
24.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(1,076,345)
(795,202)

Revaluation of investment property
(3,031,722)
(3,189,469)

(4,108,067)
(3,984,671)


25.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



8,569 (2022 - 8,569) Ordinary shares of £1.00 each
8,569
8,569



26.


Reserves

Share premium account

This reserve represents the amount above the nominal value received for issued share capital, less
transaction costs.

Investment property revaluation reserve

This reserve represents the cumulative revaluation gains and losses on revaluation of investment properties held by the company less any deferred tax recognised in respect of this property.

Profit and loss account

This reserve represents cumulative profits and losses.


27.


Contingent liabilities

An unlimited guarantee has been given by the company in respect of the Lake District Holdings Group's
borrowings with Barclays Bank Plc.

Page 31

 
LAKE DISTRICT ESTATES COMPANY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

28.


Capital commitments


At 31 January 2023 the company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
204,000
-

204,000
-


29.


Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £97,490 (2022 - £87,872). Contributions totaling £NIL (2022 - £NIL) were payable to the fund at the reporting date.


30.


Commitments under operating leases

At 31 January 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
116,086
124,318

Later than 1 year and not later than 5 years
269,878
350,793

Later than 5 years
209,641
244,811

595,605
719,922

A total of £186,679 (2022 - £136,820) was recognised as an operating lease expense in the period.


31.


Related party transactions

The remuneration of key management personnel is borne by the parent company, Lake District Holdings
Limited.


32.


Controlling party

The ultimate parent undertaking is Lake District Holdings Limited, a company registered in England and Wales.
The entity has taken the exemption not to disclose related party transactions with wholly owned subsidiaries.


Page 32