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COMPANY REGISTRATION NUMBER:
00453567
Year ended 31 December 2023
Officers and professional advisers |
1 |
|
|
Independent auditor's report to the members |
8 to 11 |
|
|
Statement of comprehensive income |
12 |
|
|
Statement of financial position |
13 |
|
|
Statement of changes in equity |
14 |
|
|
Notes to the financial statements |
15 to 25 |
|
|
Officers and Professional Advisers |
|
The board of directors |
Mrs. Judith Mary Potter |
|
Mr. John Hector Potter |
|
Miss Sarah Jane Potter |
|
|
Registered office |
2 Westbrook Court |
|
Sharrow Vale Road |
|
Sheffield |
|
S11 8YZ |
|
|
Auditor |
Hebblethwaites |
|
Chartered accountants & statutory auditor |
|
2 Westbrook Court |
|
Sharrow Vale Road |
|
Sheffield |
|
S11 8YZ |
|
|
Year ended 31 December 2023
Development and performance of the business
The principal activity of the company during the year continued to be the provision of holiday and recreational facilities
. Potters Leisure Ltd operates from a single resort in the United Kingdom, at Hopton On Sea on the South East Coast of England. The company continues to invest at the Resort to ensure that it delivers high quality service, accommodation and facilities, combined with numerous activities to cater for loyal guests. "Potters" continues to offer a unique proposition for families in the UK market and now, as a marketed USP, on a fully inclusive basis and, selectively, on an adult only basis. Business has been extremely strong in the so called staycation market, having remained buoyant in the post pandemic era despite a general return to international travel. There remains an element of reluctance, in the target market of the company, to return to overseas holidays which, allied to an expanding short break market, has resulted in strong and ongoing future reservation levels. Financial Performance Following on from the significant recovery in the post pandemic prior year, the latest year has reflected a further year of revenue enhancement, this returning the company to its' pre pandemic and longer terms growth strategy with a net improvement in revenue of 5.5%. Administrative and overhead costs have, however, also increased quite markedly, this largely as a consequence of global and macro-economic issues which have significantly impacted on some of the key cost categories of the business including, in particular, costs of employment and utilities. This ongoing recovery has given rise to a pre tax profit for the year of £2.77 million, if down from the exceptional post pandemic prior year equivalent of £5.2 million, which benefitted from the pent up demand, post COVID, and prior to the cost increases experienced in this latest year, which cost increases are now becoming less volatile and more controlled. The statement of financial position reflects the post tax profit and as a result shareholder funds have increased from £22.6 million to £25.1 million. The significant, and ongoing, capital investment undertaken by the company in recent years is expected to continue to assist in the generation of future, and enhanced, levels of revenue and profitability, in addition to which the company continues to explore new avenues of revenue and profit generation. Key performance indicators Turnover growth 2023: 5.5% (2022: 68%) Gross Profit Percentage 2023: 81.0% (2022: 81.3%) Profit after tax 2023: £2.7m (2022: £5.0m)
Year end position
The year end financial status of the company, as portrayed by the Statement of Financial Position, has improved markedly as a result of the financial performance in the year. The net asset strength and additional support made available by the company bankers provides a significant platform for future expansion and growth in a market of high demand. Ongoing investment in enhanced facilities and high levels of resort maintenance continue to strengthen the underlying asset base as reflected in the Statement of Financial Position. In addition, the intangible value of the reputation, history and service branding of "The Resort" adds synergies and underlying value.
Principal risks and uncertainties
FRAUD A risk of fraud exists in terms of the possible misappropriation of assets, including the possibility of theft of stock and cash held by the company. The company mitigates this risk through the management structure with appropriate controls in place and regular financial reviews involving the extensive use of business software and related systems. MARKET RISK FACTORS General Economic Conditions The disposable income of guests will be affected by changes in the general economic environment and this could result in a fall in the number of guests and/or a decrease in on-site expenditure. The directors regularly review its product offering and engages with guests to ensure value for money. The current market analysis and review does not indicate any projected diminishing guest numbers, in fact the opposite is the current perception and understanding. Health and pandemic risks Following the global COVID-19 pandemic consequences of recent years, there inevitably remains a risk, in a high occupancy environment such as The Resort, of transmittable diseases, of various types both known and not yet known, posing a threat to the ongoing business. The Resort is managed in such a way as to minimise such risks and to constantly monitor the position and introduce measures and restrictions as necessary to control any such health risks. If these risks and uncertainties materialise, they could result in a material change in the forecast liquidity and trading position of the company, if with ongoing profitability and increasing reserves, the resilience of the company to such issues is enhanced. Competition Potters has a reputation for high quality breaks, but the company competes with other holiday options available to guests. The Directors believe that this risk is mitigated by the strength of the Potters brand and the high volume of return guests who enjoy the continual investment in the accommodation and central facilities, allied to the unique inclusive break packages now on offer to guests. FINANCIAL RISKS The Directors and senior management monitor the financial requirements of the company and associated risks. The company finances its operations and developments via a mixture of retained earnings and an overdraft facility. Loan facilities have been made available to the group, and are facilitated indirectly via the parent company Potters Resorts Limited. As a subsidiary of the group, Potters Leisure Ltd have a fixed and floating charge in place over their assets, this to support the group facilities. The directors have assessed future compliance with financial covenants and at this time do not foresee any breach. Interest rate risk Principal sources of group borrowings are subject to variable rates of interest. Liquidity risk The company maintains sufficient levels of cash and liquidity to meet its medium-term working capital and funding obligations. Rolling forecasts of liquidity requirements are prepared and monitored. Credit risk Cash balances are held on deposit. Credit risk from revenue streams is limited as customers are required to pay in advance of their holiday. Financial reporting risks The company's financial systems are required to process a large number of transactions, such that weaknesses could result in the incorrect reporting of financial results. This risk is mitigated by the production of detailed management accounts which are fully reconciled and controlled and matched with budgets and forecasts on a monthly basis, thus providing a control environment to readily identify any issues.
SECTION 172(1) STATEMENT The Board aims to promote the success of the company for the benefit of its members as a whole and have collectively acted in good faith, making strategic decisions to enable the business to grow and develop. The Board look to ensure the decision making process provides benefit to employees and its stakeholders whist maintaining fairness: The company is looking to invest in the resort to secure the company's long term future. The company relies on its staff to ensure quality service is maintained. Staff are remunerated at the relevant level dependent on role and experience, whilst staff in key roles are involved in the decision making process. It is imperative to maintain a good relationship with our customers and vital for the reputation, to maintain high level of service in the resorts. The supply chain is important to the brand and allow smooth operation within the resort. We maintain a good relationship with our suppliers so that the company can maintain its high standards. Respecting our planet, looking to make energy savings and reduce the carbon footprint of the company where possible.
This report was approved by the board of directors on 29 July 2024 and signed on behalf of the board by:
Mr. John Hector Potter |
Director |
|
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended
31 December 2023
.
Directors
The directors who served the company during the year were as follows:
Mrs. Judith Mary Potter |
|
Mr. John Hector Potter |
|
Miss Sarah Jane Potter |
|
|
|
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Future developments
The company has made significant progress since the enforced closures that impacted the hotel and leisure industry so heavily. This is the second full year of trade since re-opening and no changes to the nature of the business are anticipated in the longer term, but the directors are committed to delivering a safe environment, with the health and safety of our guests and team members being one of our highest priorities. The company is looking to improve efficiencies and reduce its carbon footprint further following the significant solar energy generation investment in 2023.
Greenhouse gas emissions and energy consumption
|
Unit |
2023 |
2022 |
Electricity Grid and Renewable |
tCO2e |
897 |
939 |
Petrol and Diesel |
tCO2e |
18 |
18 |
Natural Gas |
tCO2e |
1,405 |
1,410 |
|
|
------- |
------- |
Total emissions |
tCO2e |
2,320 |
2,367 |
Greenhouse Gas Emissions Intensity metric - CO2 per £100,000 of Revenue |
|
7.84 |
8.51 |
|
|
------- |
------- |
|
|
|
|
Methodologies for energy and emissions calculations
Data has been collected in respect of the period ended 31 December 2023 and reported on a consistent basis with that used for the Company's Energy Savings Opportunity Scheme (ESOS) reporting.
Principal measures taken to increase energy efficiency
The Company has implemented a number of energy efficiency actions to limit emissions, including the following:
- In 2023 the company completed a significant Solar energy generation investment with full year benefits to be seen in 2024
- The installation of the Solar array is expected to generate upto 20% of the resort's expected ongoing electricity consumption.
- Installation of Voltage Reduction Equipment to help reduce overall electricity usage, net saving of 6.9%
- A significant programme of changing lighting to LED across the resort
- A significant programme of gas boiler modern replacements to reduce emissions and gas consumption
- Installation of EV charge points for resort and guest use and expand use of EV in company fleet
- Implement additional sub-metering where appropriate to support targeted efficiency actions
- Introduction of an Energy Awareness Team to establish resort wide good working practice to reduce unnecessary usage
- Review & implement cost effective opportunities to implement large scale carbon reduction schemes
- Ongoing development of long-term energy usage and emissions plans to support UK government aims for 2030 & beyond
- All ESOS 1, ESOS 2 & ESOS 3 phases are complete and the Company looks forward to working with engaged consultants on the next round
- Energy consumption and electricity generation is constantly measured, reported visibly across the company and regularly reviewed
The headline 2023 CO2e tonnes per £100,000 of revenue ratio of 7.84 has been substantially reduced from 2022 and 2021 following the implementation of the above measures.
Employment of disabled persons
The company has a policy of equal opportunities and is committed to training, developing and promoting employees of all nationalities, religions, gender or physical ability.
Employee involvement
The company has continued its' policy of consultation with employees relative to the provision of information and in the context of performance and awareness of factors affecting the company.
Financial instruments
The company finances it's operations through a mixture of retained earnings and borrowings as required.
Liquidity risk is managed by ensuring sufficient levels of cash are available to enable the company to meet its short and medium-term working capital and debt service obligations.
Credit risk in respect of the company's revenue streams is limited as the vast majority of customers pay in advance.
Research and development
No research and development activities were undertaken during the year.
Disclosure of information in the strategic report
The company has set out, on pages 2 and 3, the Strategic Report for the year, which incorporates the business review for the year.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
29 July 2024
and signed on behalf of the board by:
Mr. John Hector Potter |
Director |
|
Independent Auditor's Report to the Members of
Potter's Leisure Ltd |
|
Year ended 31 December 2023
Qualified opinion
We have audited the financial statements of Potter's Leisure Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, except for the effects of the matter described in the basis for qualified opinion section of our report, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
As disclosed in note 17 to the financial statements, one of the directors is indebted to the company by way of loan in the sum of £5,314,152 (2022 £5,318,154), this balance having no formal terms for repayment, hence being included as a debtor repayable within one year. The loan is unsecured. Recoverability of this loan balance is dependent on the personal financial position and activities of the director in relation to which we have been unable to obtain sufficient appropriate supporting evidence as repayment is dependent on future events and financial transactions. We are therefore unable to categorically determine whether this loan balance will be repaid in full.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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: We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: - the nature of the industry and sector, control environment and business performance, including the identification of related party transactions, and matters which could potentially impact on the company's continuation as a going concern; - results of our enquiries of management and assessment of the risks of irregularities; - any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; - the matters discussed among the audit engagement team, including how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Corporate Governance Code and local tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
Richard Murdoch BA (Hons) FCA |
(Senior Statutory Auditor) |
|
For and on behalf of |
Hebblethwaites |
Chartered accountants & statutory auditor |
2 Westbrook Court |
Sharrow Vale Road |
Sheffield |
S11 8YZ |
|
30 July 2024
Statement of Comprehensive Income |
|
Year ended 31 December 2023
|
2023 |
2022 |
Note |
£ |
£ |
Turnover |
4 |
29,583,217 |
28,045,962 |
|
|
|
|
Cost of sales |
(
5,630,078) |
(
5,250,537) |
|
------------- |
------------- |
Gross profit |
23,953,139 |
22,795,425 |
|
|
|
Administrative expenses |
(
21,138,447) |
(
17,524,804) |
Other operating income |
5 |
– |
6,000 |
|
|
------------- |
------------- |
Operating profit |
6 |
2,814,692 |
5,276,621 |
|
|
|
|
Other interest receivable and similar income |
10 |
31 |
– |
Interest payable and similar expenses |
11 |
(
44,085) |
(
23,152) |
|
------------- |
------------- |
Profit before taxation |
2,770,638 |
5,253,469 |
|
|
|
|
Tax on profit |
12 |
(
71,497) |
(
242,121) |
|
------------ |
------------ |
Profit for the financial year and total comprehensive income |
2,699,141 |
5,011,348 |
|
------------ |
------------ |
|
|
|
|
All the activities of the company are from continuing operations.
Statement of Financial Position |
|
31 December 2023
Fixed assets
Tangible assets |
14 |
|
23,714,702 |
23,357,836 |
|
|
|
|
|
Current assets
Stocks |
16 |
212,886 |
|
201,548 |
Debtors: due within one year |
17 |
16,973,459 |
|
15,150,839 |
Debtors: due after more than one year |
17 |
1,352,589 |
|
1,353,940 |
Cash at bank and in hand |
42,757 |
|
94,312 |
|
------------- |
|
------------- |
|
18,581,691 |
|
16,800,639 |
|
|
|
|
|
Creditors: amounts falling due within one year |
18 |
16,719,703 |
|
17,191,616 |
|
------------- |
|
------------- |
Net current assets/(liabilities) |
|
1,861,988 |
(
390,977) |
|
|
------------- |
------------- |
Total assets less current liabilities |
|
25,576,690 |
22,966,859 |
|
|
|
|
|
Creditors: amounts falling due after more than one year |
19 |
|
6,304 |
17,111 |
|
|
|
|
|
Provisions
Taxation including deferred tax |
21 |
|
426,900 |
355,403 |
|
|
------------- |
------------- |
Net assets |
|
25,143,486 |
22,594,345 |
|
|
------------- |
------------- |
|
|
|
|
|
Capital and reserves
Called up share capital |
25 |
|
24,000 |
24,000 |
Capital redemption reserve |
26 |
|
6,199,407 |
6,199,407 |
Profit and loss account |
26 |
|
18,920,079 |
16,370,938 |
|
|
------------- |
------------- |
Shareholders funds |
|
25,143,486 |
22,594,345 |
|
|
------------- |
------------- |
|
|
|
|
|
These financial statements were approved by the
board of directors
and authorised for issue on
29 July 2024
, and are signed on behalf of the board by:
Mrs. Judith Mary Potter |
Mr. John Hector Potter |
Director |
Director |
|
|
Company registration number:
00453567
Statement of Changes in Equity |
|
Year ended 31 December 2023
|
Called up share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
£ |
£ |
£ |
£ |
At 1 January 2022 |
24,000 |
2,295,957 |
16,363,040 |
18,682,997 |
|
|
|
|
|
Profit for the year |
|
|
5,011,348 |
5,011,348 |
|
-------- |
------------ |
------------- |
------------- |
Total comprehensive income for the year |
– |
– |
5,011,348 |
5,011,348 |
|
|
|
|
|
Dividends paid and payable |
13 |
– |
– |
(
1,100,000) |
(
1,100,000) |
Redemption of shares |
– |
3,903,450 |
(
3,903,450) |
– |
|
-------- |
------------ |
------------- |
------------- |
Total investments by and distributions to owners |
– |
3,903,450 |
(
5,003,450) |
(
1,100,000) |
|
|
|
|
|
At 31 December 2022 |
24,000 |
6,199,407 |
16,370,938 |
22,594,345 |
|
|
|
|
|
Profit for the year |
|
|
2,699,141 |
2,699,141 |
|
-------- |
------------ |
------------- |
------------- |
Total comprehensive income for the year |
– |
– |
2,699,141 |
2,699,141 |
|
|
|
|
|
Dividends paid and payable |
13 |
– |
– |
(
150,000) |
(
150,000) |
|
---- |
---- |
--------- |
--------- |
Total investments by and distributions to owners |
– |
– |
(
150,000) |
(
150,000) |
|
|
|
|
|
|
-------- |
------------ |
------------- |
------------- |
At 31 December 2023 |
24,000 |
6,199,407 |
18,920,079 |
25,143,486 |
|
-------- |
------------ |
------------- |
------------- |
|
|
|
|
|
|
Notes to the Financial Statements |
|
Year ended 31 December 2023
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 2 Westbrook Court, Sharrow Vale Road, Sheffield S11 8YZ and the trading premises are located at The Resort Hopton on Sea, Great Yarmouth, Norfolk NR31 9BX.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Potters Resorts Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company.
Consolidation
The company is a subsidiary of Potters Resorts Limited, a company registered in the UK. The company has taken advantage of Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as its subsidiaries are immaterial and did not trade. These financial statements therefore present information about the company as an individual undertaking and not about its group.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the opinion of management, there are no areas of judgement or key sources of estimation uncertainty that have a significant effect on the financial statements, other than those highlighted below. The directors review the estimated useful lives of property, plant and equipment at the end of each reporting period. During the current year, the directors have concluded that no revision is required to these estimates and that residual values exceed carrying values.
Revenue recognition
The turnover shown in the profit and loss account is exclusive of Value Added Tax and represents both residential income and daily income from operations. Residential income is recognised on completion of the guests stay, adjusted for breaks spanning the year end. Daily income from operations is recognised on the day of receipt.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Plant, equipment, fixtures and fittings |
- |
2 - 10 year
straight line |
|
Motor vehicles |
- |
25% straight line |
|
Computer and IT equipment |
- |
2 - 5 year straight line
|
|
|
|
|
Depreciation is not provided on freehold buildings as the value in use of the properties concerned and the anticipated long expected useful life, coupled with high expected residual value, mean that any depreciation charge would not be material.
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Investments in associates
Investments in associates are accounted for in accordance with the cost model and are recorded at cost less any accumulated impairment losses.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4.
Turnover
Turnover arises from:
|
2023 |
2022 |
|
£ |
£ |
Provision of holiday accommodation and associated guest spend |
29,583,217 |
28,045,962 |
|
------------- |
------------- |
|
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Other operating income
|
2023 |
2022 |
|
£ |
£ |
Government grant income |
– |
6,000 |
|
---- |
------- |
|
|
|
Government grant income in the prior year was in relation to premises related support provided through the local authority.
6.
Operating profit
Operating profit or loss is stated after charging:
|
2023 |
2022 |
|
£ |
£ |
Depreciation of tangible assets |
1,256,948 |
658,552 |
|
------------ |
--------- |
|
|
|
7.
Auditor's remuneration
|
2023 |
2022 |
|
£ |
£ |
Fees payable for the audit of the financial statements |
17,000 |
12,000 |
|
-------- |
-------- |
|
|
|
Fees payable to the company's auditor and its associates for other services:
Taxation compliance services |
5,000 |
4,000 |
Other assurance services |
2,740 |
1,646 |
Other non-audit services |
10,595 |
7,500 |
|
-------- |
-------- |
|
18,335 |
13,146 |
|
-------- |
-------- |
|
|
|
8.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
2023 |
2022 |
|
No. |
No. |
Production staff |
430 |
413 |
Administrative staff |
9 |
9 |
Management staff |
55 |
55 |
|
---- |
---- |
|
494 |
477 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2023 |
2022 |
|
£ |
£ |
Wages and salaries |
10,846,368 |
9,645,119 |
Social security costs |
879,896 |
775,676 |
Other pension costs |
416,385 |
335,999 |
|
------------- |
------------- |
|
12,142,649 |
10,756,794 |
|
------------- |
------------- |
|
|
|
9.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
|
2023 |
2022 |
|
£ |
£ |
Remuneration |
256,994 |
257,738 |
Company contributions to defined contribution pension plans |
4,500 |
4,500 |
|
--------- |
--------- |
|
261,494 |
262,238 |
|
--------- |
--------- |
|
|
|
Remuneration of the highest paid director in respect of qualifying services:
|
2023 |
2022 |
|
£ |
£ |
Aggregate remuneration |
206,994 |
206,146 |
|
--------- |
--------- |
|
|
|
10.
Other interest receivable and similar income
|
2023 |
2022 |
|
£ |
£ |
Interest on cash and cash equivalents |
31 |
– |
|
---- |
---- |
|
|
|
11.
Interest payable and similar expenses
|
2023 |
2022 |
|
£ |
£ |
Interest on banks loans and overdrafts |
34,955 |
22,678 |
Interest on obligations under finance leases and hire purchase contracts |
1,138 |
474 |
Other interest payable and similar charges |
7,992 |
– |
|
-------- |
-------- |
|
44,085 |
23,152 |
|
-------- |
-------- |
|
|
|
12.
Tax on profit
Major components of tax expense
Deferred tax:
Origination and reversal of timing differences |
71,497 |
242,121 |
|
-------- |
--------- |
Tax on profit |
71,497 |
242,121 |
|
-------- |
--------- |
|
|
|
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: lower than) the
standard rate of corporation tax in the UK
of
23.50
% (2022:
19
%).
|
2023 |
2022 |
|
£ |
£ |
Profit on ordinary activities before taxation |
2,770,638 |
5,253,469 |
|
------------ |
------------ |
Profit on ordinary activities by rate of tax |
651,100 |
998,159 |
Effect of capital allowances and depreciation |
1,795 |
4,124 |
Utilisation of tax losses |
(
581,398) |
(
845,459) |
Impact of change in tax rate on deferred tax |
– |
85,297 |
|
------------ |
------------ |
Tax on profit |
71,497 |
242,121 |
|
------------ |
------------ |
|
|
|
13.
Dividends
|
2023 |
2022 |
|
£ |
£ |
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year ) |
150,000 |
1,100,000 |
|
--------- |
------------ |
|
|
|
14.
Tangible assets
|
Land and buildings |
Plant, equipment, fixtures and fittings |
Motor vehicles |
Computer and IT Equipment |
Investment Property |
Total |
|
£ |
£ |
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
|
|
At 1 Jan 2023 |
20,376,621 |
15,480,480 |
248,028 |
125,201 |
693,473 |
36,923,803 |
Additions |
– |
1,441,202 |
54,833 |
117,779 |
– |
1,613,814 |
Disposals |
– |
(
194,634) |
(
79,416) |
(
504,802) |
– |
(
778,852) |
Transfers |
– |
(
778,443)
|
50,600 |
727,842 |
– |
(1)
|
|
------------- |
------------- |
--------- |
--------- |
--------- |
------------- |
At 31 Dec 2023 |
20,376,621 |
15,948,605 |
274,045 |
466,020 |
693,473 |
37,758,764 |
|
------------- |
------------- |
--------- |
--------- |
--------- |
------------- |
Depreciation |
|
|
|
|
|
|
At 1 Jan 2023 |
– |
13,340,433 |
174,786 |
50,748 |
– |
13,565,967 |
Charge for the year |
– |
1,024,371 |
51,832 |
180,745 |
– |
1,256,948 |
Disposals |
– |
(
194,634) |
(
79,416) |
(
504,802) |
– |
(
778,852) |
Transfers |
– |
(
660,074)
|
35,862 |
624,211 |
– |
(1)
|
|
------------- |
------------- |
--------- |
--------- |
--------- |
------------- |
At 31 Dec 2023 |
– |
13,510,096 |
183,064 |
350,902 |
– |
14,044,062 |
|
------------- |
------------- |
--------- |
--------- |
--------- |
------------- |
Carrying amount |
|
|
|
|
|
|
At 31 Dec 2023 |
20,376,621 |
2,438,509 |
90,981 |
115,118 |
693,473 |
23,714,702 |
|
------------- |
------------- |
--------- |
--------- |
--------- |
------------- |
At 31 Dec 2022 |
20,376,621 |
2,140,047 |
73,242 |
74,453 |
693,473 |
23,357,836 |
|
------------- |
------------- |
--------- |
--------- |
--------- |
------------- |
|
|
|
|
|
|
|
The Investment property was acquired in a previous year, and is included at it's fair value. The property has not been valued by an independent valuer, but is based on the opinion of the directors
.
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
|
Motor vehicles |
|
£ |
At 31 December 2023 |
18,013 |
|
-------- |
At 31 December 2022 |
27,019 |
|
-------- |
|
|
15.
Investments
|
Shares in group undertakings |
|
£ |
Cost |
|
At 1 January 2023 and 31 December 2023 |
306,525 |
|
--------- |
Impairment |
|
At 1 January 2023 and 31 December 2023 |
306,525 |
|
--------- |
|
|
Carrying amount |
|
At 31 December 2023 |
– |
|
--------- |
At 31 December 2022 |
– |
|
--------- |
|
|
The subsidiary companies detailed below were dormant and did not trade during the current and previous year.
Subsidiaries, associates and other investments
|
Class of share |
Percentage of shares held |
Subsidiary undertakings |
|
|
Potters Holidays Limited |
Ordinary |
100 |
Potters Abroad Limited |
Ordinary |
100 |
|
|
|
16.
Stocks
|
2023 |
2022 |
|
£ |
£ |
Stocks of food, beverages and consumables |
212,886 |
201,548 |
|
--------- |
--------- |
|
|
|
17.
Debtors
Debtors falling due within one year are as follows:
|
2023 |
2022 |
|
£ |
£ |
Trade debtors |
819 |
– |
Amounts owed by group undertakings |
10,882,227 |
8,852,412 |
Prepayments and accrued income |
474,345 |
479,189 |
Corporation tax repayable |
1,351 |
1,168 |
Directors loan account |
5,314,152 |
5,318,154 |
S 455 Tax recoverable |
(
1,352,589)
|
(
1,353,940)
|
Other debtors |
1,653,154 |
1,853,856 |
|
------------- |
------------- |
|
16,973,459 |
15,150,839 |
|
------------- |
------------- |
|
|
|
Debtors falling due after one year are as follows:
|
2023 |
2022 |
|
£ |
£ |
S 455 Tax recoverable |
1,352,589 |
1,353,940 |
|
------------ |
------------ |
|
|
|
Included within other debtors above is an amount of £1,352,589 (2022 £1,353,940) which is repayable after one year at the earliest. This balance relates to tax paid in respect of director's loan accounts, and is repayable to the company nine months following the company year-end in which the director's loan account is repaid to the company.
18.
Creditors:
amounts falling due within one year
|
2023 |
2022 |
|
£ |
£ |
Bank loans and overdrafts |
769,159 |
192,431 |
Trade creditors |
1,474,538 |
1,323,982 |
Amounts owed to group undertakings |
4,542,222 |
5,393,922 |
Accruals and deferred income |
8,568,077 |
8,756,365 |
Social security and other taxes |
910,304 |
1,143,052 |
Obligations under finance leases and hire purchase contracts |
10,808 |
10,808 |
Director loan accounts |
336,625 |
285,805 |
Other creditors |
107,970 |
85,251 |
|
------------- |
------------- |
|
16,719,703 |
17,191,616 |
|
------------- |
------------- |
|
|
|
The bank overdraft facility is secured by a fixed and floating charge over all current and future assets of the company. Interest accrues at a rate of 2.38% above base rate and is repayable on demand. The obligations under finance leases of £10,808, (2022 £10,808) are secured on the assets to which the finance relates.
19.
Creditors:
amounts falling due after more than one year
|
2023 |
2022 |
|
£ |
£ |
Obligations under finance leases and hire purchase contracts |
6,304 |
17,111 |
|
------- |
-------- |
|
|
|
The obligations under finance leases of £6,304, (2022 £17,111) are secured on the assets to which the finance relates.
20.
Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
|
2023 |
2022 |
|
£ |
£ |
Not later than 1 year |
10,808 |
10,808 |
Later than 1 year and not later than 5 years |
6,304 |
17,111 |
|
-------- |
-------- |
|
17,112 |
27,919 |
|
-------- |
-------- |
|
|
|
21.
Provisions
|
Deferred tax (note 22) |
|
£ |
At 1 January 2023 |
355,403 |
Additions |
71,497 |
|
--------- |
At 31 December 2023 |
426,900 |
|
--------- |
|
|
22.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2023 |
2022 |
|
£ |
£ |
Included in provisions (note 21) |
426,900 |
355,403 |
|
--------- |
--------- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2023 |
2022 |
|
£ |
£ |
Accelerated capital allowances |
426,900 |
355,403 |
|
--------- |
--------- |
|
|
|
Deferred tax has been provided at 25% in accordance with the expected timing of the reversal. Subject to further capital expenditure an element of the above is expected to reverse within 12 months, if with the potential for offset by reference to tax allowances and reliefs.
23.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
416,385
(2022: £
335,999
).
24.
Government grants
The amounts recognised in the financial statements for government grants are as follows:
Recognised in other operating income:
Government grants released to profit or loss |
– |
6,000 |
|
---- |
------- |
|
|
|
25.
Called up share capital
Issued, called up and fully paid
|
2023 |
2022 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
24,000 |
24,000 |
24,000 |
24,000 |
|
-------- |
-------- |
-------- |
-------- |
|
|
|
|
|
26.
Reserves
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
27.
Directors' advances, credits and guarantees
Included in debtors due within one year is a balance owing from a director amounting to £5,314,152, (2022 £5,318,154). There are no formal terms for repayment of the above balance and interest is not being charged.
28.
Related party transactions
During the year, the company incurred consultancy charges amounting to £401,735 (2022 £300,000) from a related company, this being an entity under the control of one of the directors of Potters Leisure Ltd. At the reporting date, the company is indebted to its' holding company in the sum of £4,542,222 (2022: £5,393,922). The loan is interest free with no formal terms of repayment, In addition the company is owed £10,882,227 (2022: £8,852,412) from a group sister company. The loan is interest free with no formal terms of repayment and included within current debtors.
29.
Controlling party
Potters Leisure Ltd underwent a reorganisation during 2021, with shares in the company being transferred to
Potters Resorts Ltd
, which has since been, and continues to be, the 100% parent company. There is no ultimate controlling party of the company. The principal place of business of Potters Leisure Ltd and Potters Resorts Ltd is located at The Resort, Hopton on Sea, Great Yarmouth, Norfolk, NR31 9BX.