REGISTERED NUMBER: 14054477 (England and Wales) |
Atlas Leisure Holdco Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Period 19th April 2022 to 30th September 2023 |
REGISTERED NUMBER: 14054477 (England and Wales) |
Atlas Leisure Holdco Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Period 19th April 2022 to 30th September 2023 |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Contents of the Consolidated Financial Statements |
for the period 19th April 2022 to 30th September 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
Atlas Leisure Holdco Limited |
Company Information |
for the period 19th April 2022 to 30th September 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Group Strategic Report |
for the period 19th April 2022 to 30th September 2023 |
The directors present their strategic report of the company and the group for the period 19th April 2022 to 30th September 2023. |
REVIEW OF BUSINESS |
The principal activity of the group in the period under review was the Design, Manufacture and Sale of Caravan Holiday Homes and Lodges. |
The COVID-19 pandemic led to an unprecedented surge in demand, followed by market instability due to inflation and the war in Ukraine, resulting in an oversupply of caravan holiday homes across parks, dealerships and manufacturers. |
To address these challenges, we have already taken measures such as reducing production, making employees redundant, reducing working hours, and mothballing our second production facility. |
Post year-end we have re-financed the business through a sale and leaseback of the land we owned and used, for storage of finished caravans. This has generated funds to enable the business to clear all the term debt and to provide a provide a significant increase in working capital. |
We have maintained focus on our key relationships or new strategic customers which will ensure a healthy order book now but also in the future. The company fosters strong relationships with its customers, meeting with them regularly so to understand their needs. |
We continue to have a relatively strong order book and have ongoing retail orders from our UK wide dealer network. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The outlook for the coming year is not without challenges and despite these efforts above, the oversupply in our industry persists, and it is unlikely that the market will return to normal manufacturing levels for some time. |
In light of this situation, we have adapted our business to align with the current market conditions while retaining the capacity to grow as industry stock levels reduce and manufacturing demand returns to normal. |
The group continues to build on its long-standing relationships with key suppliers. The purchasing team engage in regular meetings with suppliers to ensure consistent procurement of materials at the best possible price. |
Locally, risks and threats to the business remain the availability of a suitably skilled workforce and to continue to aid this an unprecedented programme of training and development of all employees is ongoing in our pursuit of continuous improvement. Our ability to attract and retain quality staff has significantly benefitted from this approach and continues to do so. A new program has been set up to give our apprentices the lean manufacturing skills they require to kick start their career in the industry. The two-year program will include practical training in all principal areas of the business. On successful completion, our apprentices will be awarded Level 2 Diploma in Manufacturing. |
We also aim to develop our management team's knowledge of Mental Health to help promote a positive work environment for all employees. |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Group Strategic Report |
for the period 19th April 2022 to 30th September 2023 |
SECTION 172(1) STATEMENT |
The Directors fulfil their duty to promote the success of the company by ensuring that there is a strong governance structure and process running through all aspects of the company's operations. |
This strategy was considered by the board with full consideration being given to the company's capital and funding structure and its resilience to existing and emerging risks. |
The company's strategy and business model are underpinned by the work performed by employees. All members of the Board regularly engage with them to ensure their engagement and alignment with the activities of the company. The board is kept informed of all relevant issues by means of several written reports against agreed KPI's. |
During the year, the Board have continued to regularly communicate with all team members to further promote the success of the company. |
i) Regular staff newsletter from the Board to improve staff engagement. |
ii) The continued promotion and support of staff activities to support local charities which are nominated by the staff and publicised both internally (via the newsletter) and externally (via social media). |
iii) Continued emphasis on mental health awareness with training via a Master Class in Mental Health. |
iv) Investment in additional production lines and machine shop at our West Carr Lane site. |
v) Investment in a new ERP software system to support best in class back-office support which went live in December 2023. |
The Board of Directors consider that they, both individually and collectively, have acted in a way that would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in S172(1)(a-f) of the Act) in the decisions they have taken during the period from 19 April 2022 to 30 September 2023. In making this statement the Directors considered the longer term needs of stakeholders and the environment and have considered the following: |
" The likely consequences of any decisions in the long term. |
" The interests of the company's employees. |
" The need to foster the company's business relationships with suppliers, customers, and others. |
" The impact of the company's operations on the community and the environment. |
" The desirability of the company maintaining a reputation for high standards of business conduct. |
KEY PERFORMANCE INDICATORS |
Given the comments above the Directors are satisfied with the financial performance, as measured by the key performance indicators of turnover; cost control; cash flow and profitability as is evident from the financial statements and are satisfied that the continuing development of the business is reflected in this sound corporate performance. |
POST BALANCE SHEET EVENTS |
Since the year end the group has renewed its banking facilities. Post year-end we have re-financed the business through a sale and leaseback of the land we owned and used, for storage of finished caravans. This has generated funds to enable the repay bank loans and to provide a provide a significant increase in working capital. |
Current forecasts indicate that the group has adequate finance facilities in place for ongoing working capital purposes. The group has strong relationships with its bankers, who have been constructive and supportive, during another unprecedented year. |
ON BEHALF OF THE BOARD: |
14th August 2024 |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Report of the Directors |
for the period 19th April 2022 to 30th September 2023 |
The directors present their report with the financial statements of the company and the group for the period 19th April 2022 to 30th September 2023. |
INCORPORATION |
The group was incorporated on 19th April 2022 and commenced trading on 27th April 2022. |
DIVIDENDS |
No dividends will be distributed for the period ended 30th September 2023. |
EVENTS SINCE THE END OF THE PERIOD |
Information relating to events since the end of the period is given in the notes to the financial statements. |
DIRECTORS |
The directors who have held office during the period from 19th April 2022 to the date of this report are as follows: |
All the directors who are eligible offer themselves for election at the forthcoming first Annual General Meeting. |
DISABLED EMPLOYEES |
The group gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the group's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate. |
GOING CONCERN |
The financial statements have been prepared on the going concern basis. In making their assessment, the directors have considered the results for the year and the current financial position of the group, as well as, the cash flow forecasts and funding available during the going concern assessment period to September 2025. |
As noted in the Strategic Report, the industry is experiencing an oversupply of product. The directors have taken proactive measures to align our operations with the current market conditions and to right-size the company during this period of volatility. This has included some redundancies within the workforce and mothballing the second production facility. In May 2024, the directors have also renegotiated the company's financing arrangements with the Bank. In addition, the board approved a sale and leaseback of land owned and used, for storage of finished caravans. This deal was completed in August 2024 and the incoming funds were used to repay bank loans. The remaining funds provided a significant increase in working capital. |
The cash flow forecasts have been sensitised to show a severe but plausible downside scenario which reflects the reduced cost base and incorporates the new financing arrangements. This has demonstrated to the directors that the business is sufficiently resourced to navigate the current industry wide volatility and consequently the financial statements continue to be prepared on a going concern basis. |
ENGAGEMENT WITH EMPLOYEES |
The group considers it is important that employees are kept informed on all aspects of its affairs as far as the needs of communication and financial confidentiality will allow. |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Report of the Directors |
for the period 19th April 2022 to 30th September 2023 |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The directors continuously considers key stakeholder relationships and develops them through ongoing support from all employees. The group considers relationships with customers and suppliers on a group and local level and maintains strong relationships with all parties. |
STREAMLINED ENERGY AND CARBON REPORTING |
In line with the Streamlined Energy and Carbon Reporting legislation, the group is required to report its energy consumption and greenhouse gas emissions arising in the UK. All scope 1 & 2 sources of energy and emissions have been disclosed as well as mandatory scope 3 sources of energy and emissions. |
In an effort to reduce our scope 1 greenhouse gas emissions we have installed 2 electric vehicle charging points at our Wiltshire Road site and have changed all of our company cars to hybrid or fully electric models. We have also changed our leased vans to more modern and efficient models. One of our highest consuming sites has now changed its electricity to a 100% renewable supply from Drax and in turn has reduced our scope 2 emissions by 19.93 tonnes of CO2e during this period. A cycle to work scheme has been put in place to reduce our scope three emissions. |
Destratification fans have been installed in the roof areas to save money on heating bills. Also, PVC was installed on all our roller shutter doors to save money on the heating bills and several of the shutters that were slow to close have been replaced. ESOS P3 Reports will be completed this reporting year to look for further consumption-based savings. |
All conversion factors and fuel properties used in this disclosure have been taken from the 2023 “UK Government Greenhouse Gas Conversion Factors for Company Reporting” published by the Department for Energy Security & Net Zero (DESNZ) and the Department for Environment, Food & Rural Affairs (DEFRA). All greenhouse gas emissions have been expressed in terms of their carbon dioxide equivalence. |
Tonnes of CO2 |
2023 |
Emissions from combustion of gas | 1124 |
Emissions from combustion of fuel for transport purposes | - |
Emissions from electricity purchased for own use | 343 |
Total | 1465 |
Energy consumption used to calculate emissions MWh | 6917 |
Ratio of tonnes CO2 to £m revenue | 13.9 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable 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. |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Report of the Directors |
for the period 19th April 2022 to 30th September 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Atlas Leisure Holdco Limited |
Opinion |
We have audited the financial statements of Atlas Leisure Holdco Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 30th September 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30th September 2023 and of the group's profit for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Atlas Leisure Holdco Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages five and six, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
Report of the Independent Auditors to the Members of |
Atlas Leisure Holdco Limited |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with relevant regulators and the company's legal advisors. |
Due to 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 or non-compliance with regulation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Consolidated Income Statement |
for the period 19th April 2022 to 30th September 2023 |
Notes | £ |
TURNOVER | 102,307,350 |
Cost of sales | 90,683,896 |
GROSS PROFIT | 11,623,454 |
Administrative expenses | 7,256,217 |
OPERATING PROFIT | 4 | 4,367,237 |
Exceptional item | 5 | 660,235 |
3,707,002 |
Interest payable and similar expenses | 6 | 2,836,985 |
PROFIT BEFORE TAXATION | 870,017 |
Tax on profit | 7 | 345,840 |
PROFIT FOR THE FINANCIAL PERIOD |
Profit attributable to: |
Owners of the parent | 524,177 |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Consolidated Other Comprehensive Income |
for the period 19th April 2022 to 30th September 2023 |
Notes | £ |
PROFIT FOR THE PERIOD | 524,177 |
OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
524,177 |
Total comprehensive income attributable to: |
Owners of the parent | 524,177 |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Consolidated Balance Sheet |
30th September 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 2,081,971 |
Tangible assets | 10 | 5,727,684 |
Investments | 11 | - |
7,809,655 |
CURRENT ASSETS |
Stocks | 12 | 6,590,582 |
Debtors | 13 | 16,168,966 |
Cash at bank and in hand | 161,261 |
22,920,809 |
CREDITORS |
Amounts falling due within one year | 14 | 22,674,698 |
NET CURRENT ASSETS | 246,111 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
8,055,766 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(2,745,536 |
) |
PROVISIONS FOR LIABILITIES | 19 | (786,053 | ) |
NET ASSETS | 4,524,177 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100 |
Share premium | 21 | 3,999,900 |
Retained earnings | 21 | 524,177 |
SHAREHOLDERS' FUNDS | 4,524,177 |
The financial statements were approved by the Board of Directors and authorised for issue on 14th August 2024 and were signed on its behalf by: |
S J McGawn - Director |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Company Balance Sheet |
30th September 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Consolidated Statement of Changes in Equity |
for the period 19th April 2022 to 30th September 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Changes in equity |
Issue of share capital | 100 | - | 3,999,900 | 4,000,000 |
Total comprehensive income | - | 524,177 | - | 524,177 |
Balance at 30th September 2023 | 100 | 524,177 | 3,999,900 | 4,524,177 |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Company Statement of Changes in Equity |
for the period 19th April 2022 to 30th September 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Changes in equity |
Issue of share capital | - |
Balance at 30th September 2023 |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Consolidated Cash Flow Statement |
for the period 19th April 2022 to 30th September 2023 |
Notes | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 6,536,330 |
Interest paid | (2,836,985 | ) |
Tax paid | (215,061 | ) |
Net cash from operating activities | 3,484,284 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (537,155 | ) |
Purchase of fixed asset investments | (1,570,443 | ) |
Cash on acquisition of subsidiary | 806,894 |
Net cash from investing activities | (1,300,704 | ) |
Cash flows from financing activities |
Loan repayments in year | (2,022,321 | ) |
Share issue | 2 |
Net cash from financing activities | (2,022,319 | ) |
Increase in cash and cash equivalents | 161,261 |
Cash and cash equivalents at beginning of period |
2 |
- |
Cash and cash equivalents at end of period |
2 |
161,261 |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Notes to the Consolidated Cash Flow Statement |
for the period 19th April 2022 to 30th September 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
£ |
Profit before taxation | 870,017 |
Depreciation charges | 1,441,067 |
Finance costs | 2,836,985 |
5,148,069 |
Decrease in stocks | 513,059 |
Decrease in trade and other debtors | 5,020,024 |
Decrease in trade and other creditors | (4,144,822 | ) |
Cash generated from operations | 6,536,330 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 30th September 2023 |
30.9.23 | 19.4.22 |
£ | £ |
Cash and cash equivalents | 161,261 | - |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 19.4.22 | Cash flow | At 30.9.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | - | 161,261 | 161,261 |
- | 161,261 | 161,261 |
Debt |
Debts falling due within 1 year | - | (732,143 | ) | (732,143 | ) |
Debts falling due after 1 year | - | (2,745,536 | ) | (2,745,536 | ) |
- | (3,477,679 | ) | (3,477,679 | ) |
Total | - | (3,316,418 | ) | (3,316,418 | ) |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Notes to the Consolidated Financial Statements |
for the period 19th April 2022 to 30th September 2023 |
1. | STATUTORY INFORMATION |
Atlas Leisure Holdco Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include- certain items at fair value. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Going concern |
The financial statements have been prepared on the going concern basis. In making their assessment, the directors have considered the results for the year and the current financial position of the company, as well as the cash flow forecasts and funding available during the going concern assessment period to September 2025. The Directors have concluded that there are no indications of material uncertainties that may cast doubt on the company's ability to continue to trade as a going concern and therefore continue to adopt the going concern basis of preparation. |
Basis of consolidation |
The consolidated accounts include the accounts of the company and its subsidiaries, Atlas Leisure Homes Limited and Atlas Saturn Holdco Limited, using the acquisition method. Inter company transactions have been eliminated on consolidation. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Sale of goods |
Turnover from the sale of holiday homes is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the company. |
Goodwill |
Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is 5 years. Provision is made for any impairment. |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Notes to the Consolidated Financial Statements - continued |
for the period 19th April 2022 to 30th September 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold land is not depreciated. Other tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Freehold buildings | - 2% on cost or valuation |
Leasehold property | - over the period of the lease |
Plant and machinery | - 20% on cost or valuation |
Motor vehicles | -20% on cost |
Computer equipment | -50% on cost and 33% on cost |
Stocks |
Stocks and work in progress is stated at the lower of cost and net realisable value. Cost represents that expenditure which has been incurred in the normal course of business in bringing the product or service to its present location and condition. |
In the case of raw materials, cost means purchase price including transport and handling costs, less trade discounts, calculated on a first in first out basis. In the case of work in progress and finished goods, cost consists of direct materials, direct labour and attributable production and other overheads based on normal levels of activity. |
Net realisable value means estimated selling price less all further costs to completion and all costs to be incurred in marketing, selling and distribution. |
Taxation |
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only 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 balance sheet date that are expected to apply to the reversal of timing differences. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's |
pension scheme are charged to the profit and loss account in the period to which they relate. |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Notes to the Consolidated Financial Statements - continued |
for the period 19th April 2022 to 30th September 2023 |
2. | ACCOUNTING POLICIES - continued |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. |
Subsequently, they are measured at amortised cost using the effective interest rate method, less |
impairment. If an arrangement constitutes a finance transaction it is measured at present value. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at |
each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
3. | EMPLOYEES AND DIRECTORS |
£ |
Wages and salaries | 22,889,533 |
Social security costs | 2,136,204 |
Other pension costs | 447,469 |
25,473,206 |
The average monthly number of employees during the period was as follows: |
2023 |
No |
Production wages | 386 |
Administration wages | 64 |
450 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
£ |
Depreciation - owned assets | 617,963 |
Goodwill amortisation | 823,104 |
Auditors' remuneration | 34,556 |
Operating lease rentals - plant and machinery | 1,294,351 |
Operating lease rentals - other | 295,847 |
5. | EXCEPTIONAL ITEMS |
£ |
Exceptional item | (660,235 | ) |
Included in the accounts are exceptional items for expenses in relation to redundancy costs. |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Notes to the Consolidated Financial Statements - continued |
for the period 19th April 2022 to 30th September 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
£ |
Bank loan interest | 203,101 |
Other interest | 2,633,884 |
2,836,985 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
£ |
Current tax: |
UK corporation tax | 97,568 |
Corporation tax over provision in prior period | (21,454 | ) |
Total current tax | 76,114 |
Deferred tax | 269,726 |
Tax on profit | 345,840 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
£ |
Profit before tax | 870,017 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % |
217,504 |
Effects of: |
Expenses not deductible for tax purposes | 210,811 |
Effect of super-deduction on fixed assets | (34,323 | ) |
Underprovision in earlier years | (48,152 | ) |
Total tax charge | 345,840 |
The expected net reversal of deferred tax assets and liabilities in 2024 is £111,175. This is due to the reversals of accelerated capital allowances and other short term timing differences. |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Notes to the Consolidated Financial Statements - continued |
for the period 19th April 2022 to 30th September 2023 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
Reclassification/transfer | 2,905,075 |
At 30th September 2023 | 2,905,075 |
AMORTISATION |
Amortisation for period | 823,104 |
At 30th September 2023 | 823,104 |
NET BOOK VALUE |
At 30th September 2023 | 2,081,971 |
On 27th April 2022 the company acquired 100% of the share capital of Atlas Saturn Holdco Limited. This has been consolidated using the acquisition method. The amounts recognised at the acquisition date for each class of assets, liabilities and contingent liabilities and cost of the business combination are as follows: |
Amounts recognised at the acquisition date | £ |
Tangible fixed assets | 5,808,488 |
Stocks | 7,103,641 |
Debtors | 21,118,990 |
Cash at bank | 806,894 |
Creditors, accruals and deferred income | (13,780,931) |
Bank loans | (5,500,000) |
Invoice discounting | (11,945,387) |
Provision for liabilities (deferred tax) | (516,327) |
Net assets acquired | 3,095368 |
Goodwill on acquisition | 2,975,075 |
6,070,443 |
Goodwill is being amortised over 5 years. |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Notes to the Consolidated Financial Statements - continued |
for the period 19th April 2022 to 30th September 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
Additions | - | 110,650 | 270,378 |
On acquisition of subsidiary | 4,272,580 | 660,726 | 1,786,781 |
At 30th September 2023 | 4,272,580 | 771,376 | 2,057,159 |
DEPRECIATION |
Charge for period | 6,589 | 84,754 | 440,712 |
On acquisition of subsidiary | 243,054 | 58,537 | 722,480 |
At 30th September 2023 | 249,643 | 143,291 | 1,163,192 |
NET BOOK VALUE |
At 30th September 2023 | 4,022,937 | 628,085 | 893,967 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
Additions | 87,965 | 68,162 | 537,155 |
On acquisition of subsidiary | 107,253 | 185,044 | 7,012,384 |
At 30th September 2023 | 195,218 | 253,206 | 7,549,539 |
DEPRECIATION |
Charge for period | 23,662 | 62,246 | 617,963 |
On acquisition of subsidiary | 70,661 | 109,160 | 1,203,892 |
At 30th September 2023 | 94,323 | 171,406 | 1,821,855 |
NET BOOK VALUE |
At 30th September 2023 | 100,895 | 81,800 | 5,727,684 |
Included in cost of land and buildings is freehold land of £4,017,947 which is not depreciated. |
Tangible fixed assets with a carrying value of £5,727,684 are pledged as security |
for the group's bank loans and borrowings. |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Notes to the Consolidated Financial Statements - continued |
for the period 19th April 2022 to 30th September 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakin |
£ |
COST |
Additions |
At 30th September 2023 |
NET BOOK VALUE |
At 30th September 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Wiltshire Road, Hull, HU4 6PD. |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Wiltshire Road, Hull, HU4 6PD. |
Nature of business: |
% |
Class of shares: | holding |
12. | STOCKS |
Group |
£ |
Raw materials | 2,265,068 |
Work-in-progress | 1,678,543 |
Finished goods | 2,646,971 |
6,590,582 |
Stock recognised in cost of sales during the period as an expense was £63,898,567. |
The groups stock has been pledged as security for borrowings. |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Notes to the Consolidated Financial Statements - continued |
for the period 19th April 2022 to 30th September 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
£ |
Trade debtors | 14,999,393 |
Other debtors | 43,205 |
VAT | 359,746 |
Prepayments and accrued income | 766,622 |
16,168,966 |
Included within trade debtors are balances totalling £14,999,393 that are subject to invoice discounting arrangements. The trade debtor balances have been transferred to the counterparty, although the transaction does not qualify for derecognition on the basis that the late |
payment risk is retained by the group. |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
£ | £ |
Bank loans and overdrafts (see note 16) | 732,143 |
Trade creditors | 5,131,104 |
Amounts owed to group undertakings | - |
Tax | 21,576 |
Social security and other taxes | 294,782 |
Other creditors | 1,636,094 |
Invoice discounting advances | 13,125,230 | - |
Accrued expenses | 1,733,769 |
22,674,698 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
£ |
Bank loans (see note 16) | 2,745,536 |
16. | LOANS |
The group received a £2,500,000 bank loan in March 2023. At 30th September 2023 the amount outstanding on the loan is £2,321,429. The loan is repayable by monthly instalments over a 4 year period with the remaining balance being payable in March 2027. The interest rate on this loan is SONIC plus a margin of 3.1%. |
At 30th September 2023 the group had a government support loan during the year amounting to £1,156,250 (2022 : £1,500,000). Interest is payable on the loan at a rate of 3.99% over the Bank of England Base Rate. |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Notes to the Consolidated Financial Statements - continued |
for the period 19th April 2022 to 30th September 2023 |
Group |
Non- | cancellable | operating | leases |
£ |
Within one year | 822,977 |
Between one and five years | 1,066,914 |
1,889,891 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
£ |
Bank loans | 3,477,679 |
Invoice discounting | 13,125,230 |
16,602,909 |
The bank loans are secured by fixed and floating charges over the company's assets and the invoice discounting facility by an assignment of debts. |
19. | PROVISIONS FOR LIABILITIES |
Group |
£ |
Deferred tax |
Accelerated capital allowances | 354,162 |
Other timing differences | 431,891 |
786,053 |
Group |
Deferred |
tax |
£ |
Provided during period | 269,726 |
On acquisition of subsidiary | 516,327 |
Balance at 30th September 2023 | 786,053 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal |
value: | £ |
Ordinary | 100 | 100 |
Atlas Leisure Holdco Limited (Registered number: 14054477) |
Notes to the Consolidated Financial Statements - continued |
for the period 19th April 2022 to 30th September 2023 |
20. | CALLED UP SHARE CAPITAL - continued |
During the period the company issued 2 Ordinary shares for £2 and a further 98 Ordinary shares in a share for share exchange in consideration for the company's purchase of the entire share capital of Atlas Leisure Holdco Limited. |
21. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
Profit for the period | 524,177 | 524,177 |
Share for share exchange | - | 3,999,900 | 3,999,900 |
At 30th September 2023 | 524,177 | 3,999,900 | 4,524,077 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
Profit for the period |
Share for share exchange | - | 3,999,900 | 3,999,900 |
At 30th September 2023 | 3,999,900 |
22. | PENSION COMMITMENTS |
Payments have been made under a defined contribution pension scheme resulting in a charge to the profit and loss account of £451,205. At 30th September 2023 there were outstanding contributions of £50,909. |
23. | POST BALANCE SHEET EVENTS |
Since the year end the group has renewed its banking facilities. Post year-end we have re-financed the business through a sale and leaseback of the land we owned and used, for storage of finished caravans. This has generated funds to enable the repay bank loans, see Note 16 and to provide a provide a significant increase in working capital. |
Current forecasts indicate that the group has adequate finance facilities in place for ongoing working capital purposes. The group has strong relationships with its bankers, who have been constructive and supportive, during another unprecedented year. |
24. | ULTIMATE CONTROLLING PARTY |
The group is controlled by Mr S McGawn and Mr C Jeffrey by virtue of their holding the entire share capital of Atlas Leisure Holdco Limited. |