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3T's Leisure Limited

Annual Report and Financial Statements
Year Ended 31 October 2023

Registration number: 03311570

 

3T's Leisure Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14 to 28

 

3T's Leisure Limited

Company Information

Directors

Mr D B Milsom

Mrs S P Taylor

Mr A R Lerwill

Mr M J Taylor

Company secretary

Mr J Taylor

Registered office

The South West Caravan Centre
The Airfield
Winkleigh
Devon
EX19 8DW

Auditors

PKF Francis Clark
Statutory Auditor
Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

 

3T's Leisure Limited

Strategic Report for the Year Ended 31 October 2023

The directors present their strategic report for the year ended 31 October 2023.

Principal activity

The principal activity of the company is that of retailing and refurbishing caravans and operating caravan parks.

Fair review of the business

Whilst globally the economy has yet again suffered in general, sales have remained at similar levels as pre-pandemic times. The Holiday Home industry we believe, has a proven track record to cope with dramatic increases in cost due to supply issues and conflicts such as Ukraine, we continue to report positive results, thus proving the sustainability of our industry.

We have however seen a slow down to the level of both retail and trade sales over the last 6 months, and this has been due to the increase to both inflation and the exponential rise in interest rates. This has resulted in our end consumer tempering their lust for new product towards the back end of the season and perhaps opting to stay in their current unit for longer. Due to this knock-on effect, hire fleet orders were depressed and with excess unsold stock available, sales have been harder to come by.

Moving forward and with sales returning to pre-pandemic levels and with both interest rates and inflation starting to reduce we expect to see a return to normal trading at those levels. The amount of interest in retail holiday home purchases on parks is still strong and with the vast majority of our customer base aged between 55 to 75, in general they are less affected by inflation and interest rates fluctuations. Uncertainty abroad and extreme weather conditions only serve to make the UK a safe and attractive proposition.

The used caravan sales market has been a far more competitive place than in the previous three seasons, largely due to increased stock becoming available, however, we have managed to maintain our sales numbers year on year. Higher wage costs following the increase in NMW and increased material prices, both used in the refurbishment process, increased our overhead costs but we still managed to retain strong margins and more on a par with the pre pandemic seasons, which would now be considered a more comparable year and market for comparison. As we go into the new season, we would expect this year’s sales numbers to be broadly similar and although the market is more competitive, causing a reduction in prices, we are still seeing good interest from our established customer base who are continuing to purchase where they see value.

Interest in booking Holidays were up slightly from the previous year and although household finances are under pressure, bookings for this season coming appear to be positive, peak dates remain strong and we would anticipate that with more focus and flexibility with pricing, again, we should achieve similar levels.

Whilst we continue to invest in upgrading the caravan hire fleet on certain Parks where we see growth, the decision elsewhere is still to reduce fleet units to increase retail sales bases instead, this was to match the needs of the market. This will remain the policy for the current season also. High end holidays continue to be sort after, so bookings within our premium sectors i.e., apartments, bungalows, cottages and lodges, remain strong, which justifies the continued investment in our properties we currently own and in the pursuit of further acquisitions where they are viable.

The ability to recruit staff with the correct skill set is still a challenge, however, in taking the time to employ the right type of person, and good training, we feel, is the only way to attract new business and increase our market share and margin, which continues to be our focus.

 

3T's Leisure Limited

Strategic Report for the Year Ended 31 October 2023

The balance sheet remains strong, and the Directors consider that the results are encouraging considering what has been another challenging year whilst there are still conflicts around the world and with the UK’s economic turbulence. we are gradually settling back to pre-pandemic trading, and we remain confident that our balance sheet for this year will continue to be positive.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Sales

£m

32

33

Gross profit margin

%

19

20

Profit before tax

£m

2

3

Net profit margin

%

5

8

Principal risks and uncertainties

Below are the principal risks that could impact the groups business model and future performance.

The directors are aware that the principal risks to the company relate to the wider economic uncertainties and may influence the demand for products and holidays.

Multiple interest rate rises and inclement weather can play a substantial role in depressing the market and inefficient production in the manufacturing process could have an impact on our product supply.

Approved and authorised by the Board on 12 July 2024 and signed on its behalf by:
 

.........................................
Mr M J Taylor
Director

 

3T's Leisure Limited

Directors' Report for the Year Ended 31 October 2023

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

Directors of the company

The directors who held office during the year were as follows:

Mr D B Milsom

Mrs S P Taylor

Mr A R Lerwill

Mr M J Taylor

Financial risk management objectives and policies

The main risks facing the company are set out below:

Price risk, credit risk, liquidity risk and cash flow risk

The company considers the major financial risks of the business to be linked to liquidity, cash flow and cyclical changes in the economy. The company mitigates these risks by carefully managing cash, stock and debt levels through forecasting and budgeting. The company also maintains close contact with its bank keeping them informed of developments and changes within the business. The experience of management enables the company to respond to changes in the economy and to adapt the company's strategy accordingly.

Trustee holdings
A discretionary trust owns 80% of the Ordinary shares in the company. Mr P Collings is one of the three trustees of this trust and is also a Partner of PKF Francis Clark, the company's auditor. Mr P Collings is neither a beneficiary of the trust or a responsible individual for the purposes of Audit Regulation and has no involvement in the audit of the company's accounts.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 12 July 2024 and signed on its behalf by:
 

.........................................
Mr M J Taylor
Director

 

3T's Leisure Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

3T's Leisure Limited

Independent Auditor's Report to the Members of 3T's Leisure Limited

Opinion

We have audited the financial statements of 3T's Leisure Limited (the 'company') for the year ended 31 October 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The 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 October 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

3T's Leisure Limited

Independent Auditor's Report to the Members of 3T's Leisure Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of 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 Statement of Directors' Responsibilities set out on page 5, 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.

 

3T's Leisure Limited

Independent Auditor's Report to the Members of 3T's Leisure Limited

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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:

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the company. We gained an understanding of the company and the industry in which the company operates as part of this assessment to identify the key laws and regulations affecting the company.

We identified the principal risks of non-compliance with laws and regulations as relating to the laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements including the risk of override of controls, and determined that the principal risks were related to fraudulent financial reporting.

We discussed with management how the compliance with these laws and regulations is monitored and obtained copies of the key policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the company complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non compliance with laws and regulations on the company’s ability to continue trading and the risk of material misstatement to the accounts.

We also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

3T's Leisure Limited

Independent Auditor's Report to the Members of 3T's Leisure Limited

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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
James Barrett (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

12 July 2024

 

3T's Leisure Limited

Profit and Loss Account

Year Ended 31 October 2023

Note

2023
£

2022
£

Turnover

3

32,415,647

33,069,410

Cost of sales

 

(26,344,512)

(26,303,485)

Gross profit

 

6,071,135

6,765,925

Administrative expenses

 

(3,502,796)

(3,248,092)

Operating profit

4

2,568,339

3,517,833

Interest payable and similar expenses

8

(367,930)

(166,140)

Profit before tax

 

2,200,409

3,351,693

Tax on profit

9

(545,561)

(680,498)

Profit for the financial year

 

1,654,848

2,671,195

The above results were derived from continuing operations.

 

3T's Leisure Limited

Statement of Comprehensive Income

Year Ended 31 October 2023

2023
£

2022
£

Profit for the year

1,654,848

2,671,195

Surplus on revaluation of fixed assets

-

2,469,358

Deferred tax movement on revalued fixed assets

24,378

(605,308)

24,378

1,864,050

Total comprehensive income for the year

1,679,226

4,535,245

 

3T's Leisure Limited

Balance Sheet

31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

10

9,000

12,000

Tangible assets

11

18,749,591

16,845,409

 

18,758,591

16,857,409

Current assets

 

Stocks

12

14,894,973

4,822,193

Debtors

13

8,976,660

9,805,528

Cash at bank and in hand

 

110,400

2,185,430

 

23,982,033

16,813,151

Creditors: Amounts falling due within one year

15

(17,409,463)

(10,350,083)

Net current assets

 

6,572,570

6,463,068

Total assets less current liabilities

 

25,331,161

23,320,477

Creditors: Amounts falling due after more than one year

15

(4,405,229)

(3,915,349)

Provisions for liabilities

18

(1,273,576)

(1,182,827)

Net assets

 

19,652,356

18,222,301

Capital and reserves

 

Called up share capital

19

10,000

10,000

Revaluation reserve

4,523,604

4,596,738

Other reserves

1,419,449

1,419,449

Profit and loss account

13,699,303

12,196,114

Total equity

 

19,652,356

18,222,301

Approved and authorised by the Board on 12 July 2024 and signed on its behalf by:
 

.........................................
Mr M J Taylor
Director

Company Registration Number: 03311570

 

3T's Leisure Limited

Statement of Changes in Equity

Year Ended 31 October 2023

Share capital
£

Revaluation reserve
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 November 2022

10,000

4,596,738

1,419,449

12,196,114

18,222,301

Profit for the year

-

-

-

1,654,848

1,654,848

Other comprehensive income

-

24,378

-

-

24,378

Total comprehensive income

-

24,378

-

1,654,848

1,679,226

Dividends

-

-

-

(249,171)

(249,171)

Transfers

-

(97,512)

-

97,512

-

At 31 October 2023

10,000

4,523,604

1,419,449

13,699,303

19,652,356

Share capital
£

Revaluation reserve
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 November 2021

10,000

2,780,813

1,419,449

10,150,444

14,360,706

Profit for the year

-

-

-

2,671,195

2,671,195

Other comprehensive income

-

1,864,050

-

-

1,864,050

Total comprehensive income

-

1,864,050

-

2,671,195

4,535,245

Dividends

-

-

-

(673,650)

(673,650)

Transfers

-

(48,125)

-

48,125

-

At 31 October 2022

10,000

4,596,738

1,419,449

12,196,114

18,222,301

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
The South West Caravan Centre
The Airfield
Winkleigh
Devon
EX19 8DW

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

FRS 102 grants a qualifying entity exemptions from the full requirements of FRS 102. The following exemptions have been taken in these financial statements as the company is deemed to be a qualifying entity.

The company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that it is a qualifying entity and its ultimate parent company, SBL Parks & Leisure Holdings Limited, includes the company’s cash flows in its own consolidated financial statements. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related party transactions entered into between the company and SBL Parks & Leisure Holdings Limited.

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

Judgements

The company obtains periodic independent valuations of its freehold property and caravan fleet asset classes to ensure that carrying value in the financial statements does not differ materially from fair value. The directors have judged that based on the latest valuation obtained the fair value of freehold property and the caravan fleet considered individually does not differ materially from the carrying value of these assets at year end.

Key sources of estimation uncertainty

The directors estimate the recovery of all amounts included in trade debtors and provide for a bad debt provision. This estimate is subject to increased uncertainty due to the long credit terms offered to customers. As at the year end the company has estimated that the potential bad debt provision is immaterial to the accounts.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation 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 taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Freehold land and buildings are stated in the balance sheet at valuation. An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve.

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land

Not depreciated

Freehold and long leasehold buildings

2% straight line

Fixtures and fittings

10% reducing balance

Motor vehicles

25% reducing balance

Caravan fleet

10 - 15% reducing balance

Plant and machinery

10% reducing balance

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Website

20% straighline

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

29,610,028

30,585,382

Rendering of services

2,805,619

2,484,028

32,415,647

33,069,410

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

The analysis of the company's turnover for the year by market is as follows:

2023
 £

2022
 £

UK

30,130,491

31,340,192

Europe

2,285,156

1,729,218

32,415,647

33,069,410

4

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

424,660

321,314

Amortisation expense

3,000

3,000

Operating lease expense - property

32,400

36,600

Operating lease expense - plant and machinery

996

699

Operating lease expense - other

65,271

-

(Profit)/loss on disposal of property, plant and equipment

(68,856)

54,644

5

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

1,667,846

1,550,830

Social security costs

177,793

156,650

Pension costs, defined contribution scheme

26,501

34,885

1,872,140

1,742,365

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
 No.

2022
 No.

Production

33

36

Administration and support

23

22

56

58

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

307,687

288,712

Contributions paid to money purchase schemes

2,836

3,991

310,523

292,703

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2023
£

2022
£

Remuneration

162,687

138,050

Company contributions to money purchase pension schemes

1,994

3,991

7

Auditor's remuneration

2023
£

2022
£

Audit of the financial statements

13,000

12,500


 

8

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

325,747

163,740

Finance charges

42,183

2,400

367,930

166,140

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

9

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

430,434

584,910

Deferred taxation

Arising from origination and reversal of timing differences

115,127

95,588

Tax expense in the income statement

545,561

680,498

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 22.52% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

2,200,409

3,351,693

Corporation tax at standard rate

495,484

636,822

Effect of expense not deductible in determining taxable profit (tax loss)

38,772

27,681

Deferred tax expense relating to changes in tax rates or laws

11,431

22,941

Decrease from effect of tax incentives

(126)

(6,946)

Total tax charge

545,561

680,498

On 1 April 2023 there was an increase in the main rate of corporation tax to 25%, with the rate prior to that date being 19%. Consequently there has been an increase in the applicable tax rate to 22.52% (2022 - 19%), being the average rate for the year.

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Differences between accumulated depreciation and capital allowances

441,976

Deferred tax on revalued property, plant and equipment

831,600

1,273,576

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

2022

Liability
£

Differences between accumulated depreciation and capital allowances

326,849

Deferred tax on revalued property, plant and equipment

855,978

1,182,827

Tax relating to items recognised in other comprehensive income or equity

2023
£

2022
£

Deferred tax related to items recognised as items of other comprehensive income

(24,378)

605,308

10

Intangible assets

Website
 £

Cost

At 1 November 2022

15,000

At 31 October 2023

15,000

Amortisation

At 1 November 2022

3,000

Amortisation charge

3,000

At 31 October 2023

6,000

Carrying amount

At 31 October 2023

9,000

At 31 October 2022

12,000

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

11

Tangible assets

Land and buildings
£

Plant and machinery
 £

Fixtures and fittings
 £

Motor vehicles
 £

Caravan fleet
 £

Total
£

Cost or valuation

At 1 November 2022

16,268,207

1,270,339

441,124

214,627

1,553,272

19,747,569

Additions

1,873,899

42,121

14,920

-

437,145

2,368,085

Disposals

-

-

-

(44,977)

(150,718)

(195,695)

At 31 October 2023

18,142,106

1,312,460

456,044

169,650

1,839,699

21,919,959

Depreciation

At 1 November 2022

695,301

746,776

282,926

146,133

1,031,024

2,902,160

Charge for the year

206,414

56,568

17,311

10,641

133,726

424,660

Eliminated on disposal

-

-

-

(33,429)

(123,023)

(156,452)

At 31 October 2023

901,715

803,344

300,237

123,345

1,041,727

3,170,368

Carrying amount

At 31 October 2023

17,240,391

509,116

155,807

46,305

797,972

18,749,591

At 31 October 2022

15,572,906

523,563

158,198

68,494

522,248

16,845,409

Included within the net book value of land and buildings above is £17,240,390 (2022 - £15,572,906) in respect of freehold land and buildings and £1 (2022 - £1) in respect of short leasehold land and buildings.
 

Revaluation

The fair value of the company's Freehold land and buildings and Caravan fleet was revalued on 2 March 2023 by an independent valuer.

The valuation was performed based on market value of the assets. Based on this valuation the fair value of the assets was found not to be materially different from the carrying value in the financial statements. Owing to the age of the assets it has not been possible to identify the carrying amount under the historical cost model.

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Motor vehicles

-

9,067

     
 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

Restriction on title and pledged as security

All fixed assets of the company with a carrying amount of £18,749,591 (2022 - £16,845,409) has been pledged as security for the bank loans and overdraft.

12

Stocks

2023
£

2022
£

Work in progress

63,738

65,640

Finished goods and goods for resale

14,831,235

4,756,553

14,894,973

4,822,193

The carrying amount of stocks pledged as security for liabilities amounted to £14,894,973 (2022 - £4,822,193).

13

Debtors

2023
£

2022
£

Trade debtors

7,375,614

8,821,152

Amounts due from group undertakings

500,000

500,000

Other debtors

1,009,308

409,642

Prepayments

91,738

74,734

8,976,660

9,805,528

14

Cash and cash equivalents

2023
£

2022
£

Cash on hand

20,605

19,682

Cash at bank

89,795

2,165,748

110,400

2,185,430

Bank overdrafts

(101,666)

-

Cash and cash equivalents in statement of cash flows

8,734

2,185,430

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

15

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

16

822,011

391,975

Trade creditors

 

16,081,229

8,914,551

Corporation tax

 

1,498

253,915

Social security and other taxes

 

32,137

33,735

Outstanding defined contribution pension costs

 

6,297

5,543

Other creditors

 

216,115

374,403

Accrued expenses

 

250,176

375,961

 

17,409,463

10,350,083

Due after one year

 

Loans and borrowings

16

4,405,229

3,915,349

16

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

4,126,133

3,915,349

Hire purchase contracts

279,096

-

4,405,229

3,915,349

2023
£

2022
£

Current loans and borrowings

Bank borrowings

669,948

388,741

Bank overdrafts

101,666

-

Hire purchase contracts

50,397

3,234

822,011

391,975

Included in the loans and borrowings are the following amounts due after more than five years:

2023
£

2022
£

After more than five years by instalments

1,426,580

1,466,316

-

-

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

Bank loans and overdrafts

The bank loans are repayable by instalments with the final instalment scheduled to be paid within 2-20 years from the balance sheet date. Interest is chargeable on the bank loans at 2.0% above the bank base rate. The loans are secured by a First Legal Charge over the Freehold Property of the company and additional charges over all other assets of the company.

17

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

50,745

3,582

Later than one year and not later than five years

202,979

-

Later than five years

76,117

-

329,841

3,582

Operating leases

The total of future minimum non-cancellable lease payments is as follows:

2023
 £

2022
 £

Not later than one year

66,885

40,847

Later than one year and not later than five years

62,608

1,551

129,493

42,398

The amount of non-cancellable operating lease payments recognised as an expense during the year was £97,671 (2022 - £68,746).

18

Deferred tax and other provisions

Deferred tax
£

At 1 November 2022

1,182,827

Increase in existing provisions

90,749

At 31 October 2023

1,273,576

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

19

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A shares of £1 each

1,050

1,050

1,050

1,050

Ordinary C shares of £1 each

50

50

50

50

Ordinary D shares of £1 each

8,000

8,000

8,000

8,000

Ordinary E shares of £1 each

500

500

500

500

Ordinary F shares of £1 each

200

200

200

200

Ordinary G shares of £1 each

200

200

200

200

 

10,000

10,000

10,000

10,000

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
All ordinary shares have identical rights and rank pari passu. Dividends may be paid to the holders of one or more classes of shares to the exclusion of the other classes and at different rates.

20

Dividends

   

2023

 

2022

   

£

 

£

Interim dividend of £24.92 (2022 - £67.37) per ordinary share

 

249,171

 

673,650

         

21

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £26,501 (2022 - £34,885).

Contributions totalling £6,297 (2022 - £5,543) were payable to the scheme at the end of the year and are included in creditors.

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

22

Related party transactions

The company has taken advantage of the exemption in FRS 102 "Related Party Disclosures" from disclosing transactions with wholly owned members of the group.

Transactions with directors

2023

At 1 November 2022
£

Advances to director
£

Repayments by director
£

At 31 October 2023
£

Director 1

Interest free, unsecured and repayable on demand

39,264

557,188

(394,771)

201,681

         

Director 2

Interest free, unsecured and repayable on demand

(160)

63,949

(64,600)

(811)

         

Director 3

Interest free, unsecured and repayable on demand

28,000

2,000

(31,000)

(1,000)

         

Director 4

Interest free, unsecured and repayable on demand

(2,000)

2,000

(1,000)

(1,000)

         

2022

At 1 November 2021
£

Advances to director
£

Repayments by director
£

At 31 October 2022
£

Director 1

Interest free, unsecured and repayable on demand

459,112

306,706

(726,554)

39,264

         
       

Director 2

Interest free, unsecured and repayable on demand

(4,834)

23,274

(18,600)

(160)

         
       

Director 3

Interest free, unsecured and repayable on demand

(2,000)

32,000

(2,000)

28,000

         
       

Director 4

Interest free, unsecured and repayable on demand

(2,000)

2,000

(2,000)

(2,000)

         
       

 

 

3T's Leisure Limited

Notes to the Financial Statements

Year Ended 31 October 2023

Summary of transactions with other related parties

During the year the company entered into transactions with a director's SIPP. Transactions entered into, and trading balances outstanding at the year end, are shown below. Outstanding balances with entities are unsecured, interest free and cash settled.
 

Expenditure with and payables to related parties

2023

Other related parties
£

Purchase of land

201,915

Leases

2,400

204,315

2022

Other related parties
£

Leases

6,750

23

Parent and ultimate parent undertaking

The company's immediate and ultimate parent is SBL Parks & Leisure Holdings Limited, incorporated in England and Wales.

 The ultimate controlling party is Mr M J Taylor throughout the current year by virtue of shares held by the John and Sylvia Taylor Settlement Trust (in which he is the beneficiary) and his individual shareholding in the parent company.

The parent of the smallest and largest group in which these financial statements are consolidated is SBL Parks & Leisure Holdings Limited, incorporated in England and wales .

The address of SBL Parks & Leisure Holdings Limited is:
South West Caravan Centre
The Airfield
Winkleigh
Devon
EX19 8DW