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Company Registration Number 02160419























LAKE DISTRICT HOLDINGS LIMITED





FINANCIAL STATEMENTS





 31 JANUARY 2023
























img6835.png

 
LAKE DISTRICT HOLDINGS 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 V J Russell 
Mrs A P Wix 
Mrs L C B Langton 
Mr T L W Raynsford 
Mr R E W Hensman 
Mrs C Bourne (appointed 21 April 2023)
Mrs A Boyd (appointed 21 April 2023)




Company secretary
Mrs J Litten



02160419



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




Bankers
Barclays Bank PLC
Barclays House

Murley Moss Business Village

Oxenholme Road

Kendal

Cumbria

LA97RL




Registered number
02160419





 
LAKE DISTRICT HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Statement of Financial Position
 
11 - 12
Company Statement of Financial Position
 
13
Consolidated Statement of Changes in Equity
 
14 - 15
Company Statement of Changes in Equity
 
16
Consolidated Statement of Cash Flows
 
17
Consolidated Analysis of Net Debt
 
18
Notes to the Financial Statements
 
19 - 40


 
LAKE DISTRICT HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

Business review
 
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 objectives 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 group 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 group 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 group 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 group 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 group 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 group’s business. The group    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 third-party insurance cover.

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 10% on prior year at £18.1m (PY: £16.4m). Other Operating Income returned to a normal level of £0.1m as all Covid related support and grants ended in the prior year (PY: £1.5m).
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 HOLDINGS LIMITED
 

GROUP 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 both the Ravenglass & Eskdale Railway and Ullswater ‘Steamers’ with both attractions able to operate a full year of services, including Easter, for the first time since 2019. Passenger numbers at both attractions 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 at the Ullswater ‘Steamers’.
The demand for “experiences” remained strong at the attractions and was enhanced at the Railway with the introduction of the Directors Saloon “Ruth” in July. This created much interest from both new customers and the existing customer base.
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.

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 re-introduction of reusable cups and plates.

Page 2

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

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 10% to £18.1m (PY: £16.5m) and gross margin was increased to 66.0% (PY: 63.2%) as a result of the increase in fares at the attractions and continued strong margins on caravan and lodge sales. Operating profit of £2.6m is down on prior year (PY: £3.7m) 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 11 of this report. The cash balance at the year end was £0.8m (PY: £1.4m) with the reduction due to capital investment, particularly pitch development and improving facilities across our caravan and holiday parks.
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. 

Staff
 
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 pre-pandemic 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 HOLDINGS 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 Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group'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 Group 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 the Group 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 the Group 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 £1,682,878 (2022 - £2,219,563).

During the year the company paid dividends of £390,000 (2022 - £140,000).

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 V J Russell 
Mrs A P Wix 
Mrs L C B Langton 
Mr T L W Raynsford 
Mr R E W Hensman 

Page 4

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

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 have been no significant events affecting the Group since the year end.

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 HOLDINGS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Lake District Holdings Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 January 2023, which comprise the Group Statement of Comprehensive Income, the Group and company Statements of Financial Position, the Group Statement of Cash Flows, the Group and company 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 Group's and of the parent company's affairs as at 31 January 2023 and of the Group's 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 Group 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 Group's or the parent 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.





Page 6

 
LAKE DISTRICT HOLDINGS LIMITED
 

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


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.


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 Group 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 Group 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 Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 Group's and the parent 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 Group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
LAKE DISTRICT HOLDINGS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT HOLDINGS 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 Group 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 HOLDINGS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT HOLDINGS 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 directors, 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 directors 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 directors, 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 HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

2023
2022
Note
£
£

  

Turnover
 4 
18,072,241
16,473,326

Cost of sales
  
(6,149,620)
(6,056,599)

Gross profit
  
11,922,621
10,416,727

Administrative expenses
  
(9,911,510)
(8,740,925)

Other operating income
 5 
70,381
1,566,328

Fair value movements
  
508,742
410,155

Operating profit
 6 
2,590,234
3,652,285

Interest receivable and similar income
 10 
12,409
656

Interest payable and similar expenses
 11 
(480,337)
(496,924)

Profit before taxation
  
2,122,306
3,156,017

Tax on profit
 12 
(439,428)
(936,454)

Profit for the financial year
  
1,682,878
2,219,563

Profit for the year attributable to:
  

Owners of the parent company
  
1,682,878
2,219,563

  
1,682,878
2,219,563

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

The notes on pages 19 to 40 form part of these financial statements.

Page 10

 
LAKE DISTRICT HOLDINGS LIMITED
REGISTERED NUMBER: 02160419

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
37,558
78,713

Tangible assets
 15 
21,462,751
21,390,837

Investments
 16 
4,181
4,181

Investment property
 17 
28,775,845
28,677,940

  
50,280,335
50,151,671

Current assets
  

Stocks
 18 
2,202,662
1,572,829

Debtors: amounts falling due within one year
 19 
1,722,050
971,181

Cash at bank and in hand
 20 
781,659
1,414,222

  
4,706,371
3,958,232

Creditors: amounts falling due within one year
 21 
(5,059,169)
(4,588,304)

Net current liabilities
  
 
 
(352,798)
 
 
(630,072)

Total assets less current liabilities
  
49,927,537
49,521,599

Creditors: amounts falling due after more than one year
 22 
(11,189,380)
(12,145,274)

Provisions for liabilities
  

Deferred taxation
 25 
(4,443,505)
(4,418,473)

  
 
 
(4,443,505)
 
 
(4,418,473)

Net assets
  
34,294,652
32,957,852

Page 11

 
LAKE DISTRICT HOLDINGS LIMITED
REGISTERED NUMBER: 02160419

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

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 26 
10,000
10,000

Share premium account
 27 
211,455
211,455

Revaluation reserve
 27 
13,535,421
14,044,163

Other reserves
 27 
135,465
135,465

Profit and loss account
 27 
20,402,283
18,556,741

Equity attributable to owners of the parent company
  
34,294,624
32,957,824

Non-controlling interests
  
28
28

  
34,294,652
32,957,852


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




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


Date: 24 July 2023

The notes on pages 19 to 40 form part of these financial statements.

Page 12

 
LAKE DISTRICT HOLDINGS LIMITED
REGISTERED NUMBER: 02160419

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 16 
43,238
43,238

  
43,238
43,238

Current assets
  

Debtors: amounts falling due after more than one year
 19 
6,804,188
5,835,137

Debtors: amounts falling due within one year
 19 
-
6,270

Cash at bank and in hand
 20 
69,494
35,437

  
6,873,682
5,876,844

Creditors: amounts falling due within one year
 21 
(445,969)
(299,648)

Net current assets
  
 
 
6,427,713
 
 
5,577,196

Total assets less current liabilities
  
6,470,951
5,620,434

  

  

Net assets
  
6,470,951
5,620,434


Capital and reserves
  

Called up share capital 
 26 
10,000
10,000

Share premium account
 27 
211,455
211,455

Profit and loss account brought forward
  
5,398,979
4,515,283

Profit for the year
  
1,240,517
1,023,696

Other changes in the profit and loss account

  

(390,000)
(140,000)

Profit and loss account carried forward
  
6,249,496
5,398,979

  
6,470,951
5,620,434


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


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


Date: 24 July 2023

The notes on pages 19 to 40 form part of these financial statements.

Page 13

 

 
LAKE DISTRICT HOLDINGS LIMITED


 

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



Called up share capital
Share premium account
Fair value reserve - investment property
Other reserves
Profit and loss account
Equity attributable to owners of parent company
Non-controlling interests
Total equity


£
£
£
£
£
£
£
£



At 1 February 2021
10,000
211,455
14,438,105
135,465
16,083,236
30,878,261
28
30,878,289



Comprehensive income for the year


Profit for the year

-
-
-
-
2,219,563
2,219,563
-
2,219,563


Surplus on revaluation of freehold property net of deferred tax
-
-
(393,942)
-
393,942
-
-
-

Total comprehensive income for the year
-
-
(393,942)
-
2,613,505
2,219,563
-
2,219,563



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(140,000)
(140,000)
-
(140,000)



Total transactions with owners
-
-
-
-
(140,000)
(140,000)
-
(140,000)





At 1 February 2022
10,000
211,455
14,044,163
135,465
18,556,741
32,957,824
28
32,957,852



Comprehensive income for the year


Profit for the year

-
-
-
-
1,682,878
1,682,878
-
1,682,878


Transfer for revaluation of investment property net of deferred tax
-
-
(508,742)
-
508,742
-
-
-


Transfer for revaluation of investment property
-
-
-
-
43,922
43,922
-
43,922

Total comprehensive income for the year
-
-
(508,742)
-
2,235,542
1,726,800
-
1,726,800
Page 14  

 

 
LAKE DISTRICT HOLDINGS LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023




Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(390,000)
(390,000)
-
(390,000)



Total transactions with owners
-
-
-
-
(390,000)
(390,000)
-
(390,000)



At 31 January 2023
10,000
211,455
13,535,421
135,465
20,402,283
34,294,624
28
34,294,652



The notes on pages 19 to 40 form part of these financial statements.

Page 15  

 
LAKE DISTRICT HOLDINGS LIMITED
 

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


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 February 2021
10,000
211,455
4,515,283
4,736,738


Comprehensive income for the year

Profit for the year

-
-
1,023,696
1,023,696


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(140,000)
(140,000)


Total transactions with owners
-
-
(140,000)
(140,000)



At 1 February 2022
10,000
211,455
5,398,979
5,620,434


Comprehensive income for the year

Profit for the year

-
-
1,240,517
1,240,517


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(390,000)
(390,000)


Total transactions with owners
-
-
(390,000)
(390,000)


At 31 January 2023
10,000
211,455
6,249,496
6,470,951


The notes on pages 19 to 40 form part of these financial statements.

Page 16

 
LAKE DISTRICT HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,682,878
2,219,563

Adjustments for:

Amortisation of intangible assets
41,155
41,154

Depreciation of tangible assets
787,399
724,242

(Profit)/Loss on disposal of tangible assets
(138,761)
(9,726)

Government grants
-
(208,970)

Interest paid
480,337
496,926

Interest received
(12,409)
(656)

Taxation charge
439,428
936,454

(Increase)/decrease in stocks
(629,833)
82,848

(Increase)/decrease in debtors
(750,869)
446,206

Increase in creditors
632,351
738,504

Net fair value (gains) recognised in P&L
(508,742)
(410,155)

Corporation tax (paid)
(378,739)
(215,711)

Net cash generated from operating activities

1,644,195
4,840,679


Cash flows from investing activities

Purchase of tangible fixed assets
(1,100,394)
(766,889)

Sale of tangible fixed assets
242,592
49,567

Purchase of investment properties
(89,163)
(63,312)

Sale of investment properties
500,000
-

Government grants received
-
208,970

Interest received
12,409
656

Net cash from investing activities

(434,556)
(571,008)

Cash flows from financing activities

Repayment of loans
(971,865)
(822,855)

Dividends paid
(390,000)
(140,000)

Interest paid
(480,337)
(496,924)

Net cash used in financing activities
(1,842,202)
(1,459,779)

Net (decrease)/increase in cash and cash equivalents
(632,563)
2,809,892

Cash and cash equivalents at beginning of year
1,414,222
(1,395,670)

Cash and cash equivalents at the end of year
781,659
1,414,222


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
781,659
1,414,222

781,659
1,414,222


The notes on pages 19 to 40 form part of these financial statements.

Page 17

 
LAKE DISTRICT HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JANUARY 2023




At 1 February 2022
Cash flows
At 31 January 2023
£

£

£

Cash at bank and in hand

1,414,222

(632,563)

781,659

Debt due after 1 year

(12,027,679)

952,392

(11,075,287)

Debt due within 1 year

(986,367)

19,472

(966,895)


(11,599,824)
339,301
(11,260,523)

The notes on pages 19 to 40 form part of these financial statements.

Page 18

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

1.


General information

Lake District Holdings Limited ('the company') is a limited company incorporated in the United Kingdom. The address of its registered office and principal place of business is Maudlands, Maude Street, Kendal, Cumbria, LA9 4QD.
The principal activity of the group is the provision of visitor attractions and public transport, retail outlets and accommodation for visitors and others in the Lake District and Cumbria.

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 31 January 2015.

 
2.3

Going concern

At the balance sheet date, the Group had net assets of £34,294k, net current liabilities of £352k after making a profit for the year of £1,682k. The Group has therefore improved on its overall financial position after the unusual years caused by the pandemic.
Included in current liabilities is £1,570k deferred site fee income, which is not a creditor requiring to be settled via cash. The net current liability position of £352k does not therefore reflect a deficit position in terms of working capital.
The directors continue to monitor the Group's financial performance and cashflow forecasts closely. Demand for staycations and caravans remain high, and the directors deem there to be sufficient cash resources to meet liabilities as they fall due in the upcoming 12 months from signing the accounts. They therefore deem the going concern basis appropriate.

Page 19

 
LAKE DISTRICT HOLDINGS 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 Group 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 Group has transferred the significant risks and rewards of ownership to the buyer;
the Group 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 Group 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 Group 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 Group 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 Group 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 20

 
LAKE DISTRICT HOLDINGS 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 Consolidated 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 Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

Page 21

 
LAKE DISTRICT HOLDINGS 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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 the Group's share 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 Consolidated 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

Page 22

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

2.Accounting policies (continued)

 
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.

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% on cost or valuation
Plant and machinery
-
between 10% and 25% on cost
Motor vehicles
-
25% on cost
Caravan site services
-
5% on cost
Passenger craft
-
between 2% and 5% on cost
Equipment and boats
-
between 20% and 25% on cost

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. The directors also engage RICS qualified valuers for professional valuations for some of the investment property where fair value is harder to ascertain.
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.

Page 23

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

2.Accounting policies (continued)

 
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.

 
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.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
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 Group 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 Consolidated 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 Group 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.

Page 24

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

2.Accounting policies (continued)

 
2.22

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.


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 group 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 2.14.
(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 the 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.

Page 25

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

4.


Turnover

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


2023
2022
£
£

Ownership and operation of caravan parks and other property
12,202,456
11,925,816

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

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

Narrow gauge passenger railway
2,253,629
1,705,575

18,072,240
16,473,327


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Other operating income
11,724
15,033

Net rents receivable
58,657
58,005

Covid-19 support grants
-
352,896

Job retention scheme income
-
208,970

Other government grants
-
54,924

Heritage Lottery grant
-
876,500

70,381
1,566,328





6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
787,399
724,242

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

Other operating lease rentals
188,979
136,820

Amortisation of intangible assets, including goodwill
41,154
41,154

Page 26

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the company's auditors for the audit of the consolidated and parent company's financial statements
33,455
30,880


8.


Employees

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


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
4,582,096
4,134,955
1,077,027
858,830

Social security costs
353,758
299,231
96,112
67,086

Pension scheme costs
177,154
154,765
45,447
34,011

5,113,008
4,588,951
1,218,586
959,927


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Management
14
14
9
9



Administration
15
15
7
7



Operations
173
172
15
15

202
201
31
31


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
195,437
221,203

195,437
221,203


The highest paid director received remuneration of £50,583 (2022 - £39,290).

Page 27

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

10.


Interest receivable

2023
2022
£
£


Other interest receivable
12,409
656

12,409
656


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
479,681
495,763

Other loan interest payable
656
831

Other interest payable
-
330

480,337
496,924


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
387,332
511,236

Adjustments in respect of previous periods
(17,068)
(15,359)


370,264
495,877


Total current tax
370,264
495,877

Deferred tax


Origination and reversal of timing differences
67,722
125,729

Movement on revaluation surplus
1,442
314,848

Total deferred tax
69,164
440,577


Taxation on profit on ordinary activities
439,428
936,454
Page 28

 
LAKE DISTRICT HOLDINGS 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
2,122,305
2,219,563


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
403,238
599,643

Effects of:


Expenses not deductible for tax purposes
13,776
4,431

Capital allowances for year in excess of depreciation
(53,548)
(24,555)

Intangible asset amortisation not allowed
-
1,164

Short term timing difference leading to an increase (decrease) in taxation
(26,076)
-

Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
(57,043)
(6,877)

Chargeable gains
107,079
-

Fair value adjustment
-
(77,929)

Movement in deferred tax
52,002
440,577

Total tax charge for the year
439,428
936,454


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
£
£


Ordinary dividends
390,000
140,000

390,000
140,000

Page 29

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

14.


Intangible assets

Group and Company





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
41,156



At 31 January 2023

790,054



Net book value



At 31 January 2023
37,557



At 31 January 2022
78,713



Page 30

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

15.


Tangible fixed assets

Group






Freehold land and buildings
Plant and equipment
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 February 2022
18,419,352
9,742,963
422,475
28,584,790


Additions
338,870
761,524
-
1,100,394


Disposals
(48,535)
(923,320)
(49,555)
(1,021,410)


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



At 31 January 2023

18,572,437
9,581,167
372,920
28,526,524



Depreciation


At 1 February 2022
1,302,503
5,506,843
384,607
7,193,953


Charge for the year on owned assets
214,679
560,441
12,279
787,399


Disposals
-
(871,448)
(46,131)
(917,579)



At 31 January 2023

1,517,182
5,195,836
350,755
7,063,773



Net book value



At 31 January 2023
17,055,255
4,385,331
22,165
21,462,751



At 31 January 2022
17,116,849
4,236,120
37,868
21,390,837

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 £779k.

Page 31

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

           15.Tangible fixed assets (continued)


Company






Plant and equipment
Motor vehicles
Total

£
£
£

Cost or valuation


At 1 February 2022
46,051
26,506
72,557


Disposals
-
(18,590)
(18,590)



At 31 January 2023

46,051
7,916
53,967



Depreciation


At 1 February 2022
46,051
26,506
72,557


Disposals
-
(18,590)
(18,590)



At 31 January 2023

46,051
7,916
53,967



Net book value



At 31 January 2023
-
-
-



At 31 January 2022
-
-
-







16.


Fixed asset investments

Group





Investments in subsidiary companies
Listed investments
Unlisted investments
Total

£
£
£
£



Cost or valuation


At 1 February 2022
(101)
242
4,040
4,181



At 31 January 2023
(101)
242
4,040
4,181




Page 32

 
LAKE DISTRICT HOLDINGS LIMITED
 

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





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 February 2022
39,198
4,040
43,238



At 31 January 2023
39,198
4,040
43,238





Listed investments


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



Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Class of shares

Holding

Lake District Estates Company Limited
Ordinary
100
Ullswater Navigation and Transit Company Limited
Ordinary
99.87
The Ravenglass and Eskdale Railway Company Limited
Ordinary
100

All subsidiary undertakings are incorporated in the United Kingdom and share the same registered office as Lake District Holdings Limited.

The aggregate of the share capital and reserves as at 31 January 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings was as follows:

Name
Profit/(Loss)
£

Lake District Estates Company Limited
24,747,353

Ullswater Navigation and Transit Company Limited
22,000

The Ravenglass and Eskdale Railway Company Limited
2,637,765

Page 33

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

17.


Investment property

Group


Freehold investment property

£



Valuation


At 1 February 2022
28,677,940


Additions at cost
89,163


Disposals
(500,000)


Surplus on revaluation
508,742



At 31 January 2023
28,775,845

The 2023 valuations were made by Savills and the Directors, on an open market value for existing use basis.

The Directors believe the fair value to be appropriate 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
11,020,054
10,246,010

Accumulated depreciation and impairments
(1,004,953)
(803,979)

10,015,101
9,442,031

The 2023 valuations were made by Savills and the Directors, on an open market value for existing use basis.


18.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
2,202,662
1,572,829

2,202,662
1,572,829


Page 34

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

19.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Amounts owed by group undertakings
-
-
6,804,188
5,835,137

-
-
6,804,188
5,835,137


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,147,788
502,628
-
-

Other debtors
7,499
15,000
-
-

Prepayments and accrued income
566,763
453,553
-
-

Deferred taxation
-
-
-
6,270

1,722,050
971,181
-
6,270



20.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
781,659
1,414,222
69,494
35,437

781,659
1,414,222
69,494
35,437



21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
956,895
976,367
-
-

Other loans
10,000
10,000
-
-

Trade creditors
873,443
624,925
-
-

Corporation tax
215,263
333,550
549
19,257

Other taxation and social security
317,714
170,975
288,511
137,234

Other creditors
1,892
1,500
-
-

Accruals and deferred income
2,683,962
2,470,987
156,909
143,157

5,059,169
4,588,304
445,969
299,648


Page 35

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

22.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Other loans
46,700
56,700

Bank loans
11,028,587
11,970,979

Other creditors
114,093
117,595

11,189,380
12,145,274


The bank loans included above are secured by a legal charge over specific land and buildings held by the group.
The group has two unsecured loans. One of £26,700 is repayable on the winding up of a subsidiary company, or in the event of a binding contract being entered into by a subsidiary company for the sale of its physical assets. The second loan of £100,000 is repayable in ten equal installments over 10 years with the first repayment having been made on 31 October 2015. It bears interest at 1% over base rate. A repayment holiday was offered in the prior year and accepted. The total amount outstanding on this loan at the year end date is £30,000 (2022 - £40,000) of which £10,000 is due within one year as normal repayment terms resume.

Page 36

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

23.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2023
2022
£
£

Amounts falling due within one year

Bank loans
956,895
976,367

Other loans
10,000
10,000


966,895
986,367

Amounts falling due 1-2 years

Bank loans
942,176
956,894

Other loans
46,700
56,700


988,876
1,013,594

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

12,042,182
13,014,046


The parent company has no borrowings or debt obligations at the year end date.

Page 37

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

24.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
781,900
1,418,262
73,534
35,437

Financial assets that are debt instruments measured at amortised cost
1,155,288
517,630
6,804,189
4,835,137

1,937,188
1,935,892
6,877,723
4,870,574


Financial liabilities

Financial liabilities measured at amortised cost
(15,715,571)
(16,229,054)
-
-


Financial assets measured at fair value through profit or loss comprise bank and cash.


Financial assets that are debt instruments measured at amortised cost comprise intercompany balances and other debtors.


Financial liabilities measured at amortised cost comprise intercompany balances, other creditors and accruals and deferred income.


25.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(4,418,474)
(3,982,987)


Charged to profit or loss
(25,031)
(435,487)



At end of year
(4,443,505)
(4,418,474)

Page 38

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

Company


2023
2022


£

£






At beginning of year
6,270
6,270


Charged to profit or loss
(6,270)
-



At end of year
-
6,270
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(1,120,025)
(938,315)
-
6,270

Revaluation of investment property
(3,323,480)
(3,480,159)
-
-

(4,443,505)
(4,418,474)
-
6,270


26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



200,000 (2022 - 200,000) Ordinary shares of £0.05 each
10,000
10,000


The Company has one class of ordinary shares which carry equal voting rights but no right to fixed income.


27.


Reserves

Share premium account

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

Other reserves

This reserve represents amounts arising on consolidation of the group.

Land and buildings revaluation reserve
This reserve represents the cumulative revaluation gains and losses on revaluation of land and buildings held as tangible assets.

Profit and loss account

This reserve represents cumulative profits and losses.

Page 39

 
LAKE DISTRICT HOLDINGS LIMITED
 

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

28.


Contingent liabilities

An unlimited guarantee has been given by the group companies in respect of the group's borrowings with Barclays Bank Plc.


29.


Capital commitments




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


Group
Group
2023
2022
£
£

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

204,000
-


30.


Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £117,154 (2022 - £150,381). Contributions totaling £Nil (2022 - £Nil) were payable to the fund at the reporting date.


31.


Commitments under operating leases

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


Group
Group
2023
2022
£
£

Not later than 1 year
116,086
73,318

Later than 1 year and not later than 5 years
269,878
194,793

Later than 5 years
209,641
244,811

595,605
512,922
A total of £188,979 was recognised as an operating lease expense in the period (2022 - £136,820).



32.


Related party transactions

The company have taken advantage of the exemptions included in FRS102 section 33 'Related Party Disclosures' not to disclose transactions entered into between wholly owned group members.
Key management personnel remuneration in the period amounted to £409,093 (2022 - £341,988).


33.


Controlling party

In the opinion of the directors, there is no ultimate controlling party.


Page 40