REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 January 2024 |
for |
Lowdham Leisureworld Ltd |
REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 January 2024 |
for |
Lowdham Leisureworld Ltd |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Contents of the Financial Statements |
for the Year Ended 31 January 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Energy and Carbon Report forming part of the Strategic Report |
4 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
Lowdham Leisureworld Ltd |
Company Information |
for the Year Ended 31 January 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants & Business Advisers |
Alexandra House |
43 Alexandra St |
Nottingham |
Nottinghamshire |
NG5 1AY |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Strategic Report |
for the Year Ended 31 January 2024 |
PRINCIPAL ACTIVITY |
The principal activity of the Company is the retail of caravans, motorhomes and campervans, along with parts, accessories and servicing work. |
FAIR REVIEW OF BUSINESS |
Market conditions |
The leisure industry continues to change with motorhomes and campervans proving more popular, as the transition to electric cars impacts on the practicality of caravan ownership for some. |
The disruption on supply chains caused by the COVID 19 pandemic has lessened in the year and towards the end of the year vehicle availability improved for some ranges, but not all. The supply chain for parts has still to fully recover. |
The restrictions on international travel have now generally been removed allowing some to return to foreign holidays, though for others holidays in the UK remain popular. |
Higher interest rates impacted business overheads, in particular vehicle stocking charges. They also have an impact on the customers desire to borrow for a new vehicle. |
With higher mortgage levels and higher inflation rates household budgets have also been impacted, reducing the ability for some to commit to a new leisure vehicle. |
Results (including a consideration of key performance indicators) |
There has been an increase in turnover overall for the current year, with the increase in sales of motorhomes more than offsetting a reduction in caravans. |
With improved availability of caravans, gross margins have been impacted. |
Overheads have increased with higher vehicle stocking charges flowing from the higher interest rates and improved stock availability. |
The result for the year was in line with expectations. |
2024 2023 |
£'000 £'000 |
Turnover 64,893 58,583 |
Gross profit 7,004 7,753 |
Gross profit % 10.8% 13.2% |
Net profit before taxation 992 2,056 |
Balance sheet |
With vehicle availability improving, and with the typical cost of each vehicle increasing over recent years, stock held at the year end increased to £23.3m (2023 £17.1m), mainly financed through an increase in vehicle wholesale funding with the year end funding level being £16.7m (2023 £11.8m). |
With a strong trading performance, net assets grew from by £0.7m to £8.2m at the year end. |
PRINCIPAL RISKS AND UNCERTAINTIES |
As there is no certainty with regard to supply of caravans and motorhomes in terms of both volumes and timings, along with pricing, this makes affecting sale and achieving delivery difficult. However, as we maintain close relationships with our manufacturers it is anticipated that we should be able to negate some of these issues. |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Strategic Report |
for the Year Ended 31 January 2024 |
SECTION 172(1) STATEMENT |
The directors have complied with their duty to act, in good faith, to promote the success of the Company for the benefit of its members as a whole and in particular have had regard to the following matters: |
The likely consequences of any decision in the long term |
The Company makes decisions with the long term in mind as it continues to respond to the changing external environment. It reinvests its profit back into the business and builds long term relationships with its key suppliers. |
The interests of the Company's employees |
The success of the Company is dependent on its employees and it ensures that their interests are taken care of in several ways. It nurtures talent and builds careers, providing training for industry recognised qualifications. It provides a reward package at least in line with the market. |
The need to foster the Company's business relationships with suppliers, customers and others |
The Company seeks to have long term relationships with its suppliers and customers. Employees build relationships with suppliers at all levels. The Company collects feedback from customers (on satisfaction questionnaires, on social media and Trustpilot), these are reviewed and improvements made where necessary. The Company operates 'My Lowdhams' membership scheme with an extensive range of benefits. |
The impact of the Company's operation on the community and the environment |
The Company makes charitable donations to local clubs and societies and it lends vehicles to support local events. Through events held at Gunthorpe it brings custom to businesses in the local area. When investing, the Company has regard for the environment with recent investments including LED lighting, air source heating systems, and electric vehicle charging points. |
The desirability of the Company maintaining a reputation for high standards of business conduct |
The Company is a member of the National Caravan Council (NCC) and the Chairman sits on the board of this industry trade body. It helps to promote best practice in the industry, providing expert advice and guidance to help the Company be efficient in activities and at the same time increase consumer confidence in the industry. The Company's workshops are inspected and approved by 'The Approved Workshop Scheme', (a joint enterprise between the NCC, The Caravan and Motorhome Club and The Camping and Caravanning Club). |
The need to act fairly as between members of the Company |
The Company is owned by three generations of the same family, with the Chairman being the son of the founder of the business. All members are involved in key decisions made by the Company, balancing the needs of different stakeholders to ensure the long term success of the Company. |
ON BEHALF OF THE BOARD: |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Energy and Carbon Report |
forming part of the Strategic Report |
for the Year Ended 31 January 2024 |
EMISSIONS AND ENERGY CONSUMPTION |
We have considered the recommendations of the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. Lowdham Leisureworld Ltd supports these recommendations and are committed to disclosing the relevant information which can be found below. |
In our principal activities being the retail of caravans and motorhomes, parts and accessories and aftersales servicing work, we have no manufacturing footprint to minimise. |
This section has been prepared in accordance with our regulatory obligation to report greenhouse gas ("GHG") emissions pursuant to The Companies (Directors Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 which implements the Government's policy on Carbon Reporting. |
Our methodology to convert Kilowatt-hours to tonnes of C02e is based upon the UK Government GHG Conversion Factors for Company Reporting 2020 issued by DEFRA on 22 June 2022. |
During the year ended 31 January 2024 the Company recorded greenhouse gas emissions from: |
CO2 KWH |
(tonnes) |
Direct (scope1) emissions from on site combustion of |
Fuels 118.4 - |
Gas 78.5 436,287 |
Indirect (scope 2) emissions from the purchase of |
Electricity 86.0 415,580 |
Total 282.9 |
It has been impractical to obtain the emissions data relating to the consumption of fuel for the purposes of transport as the transport of goods for the company are organised by third parties and the emission data has not been shared. |
Intensity ratio |
Turnover (£m) 64.6 |
Emissions per £'m of Turnover 4.4 |
ON BEHALF OF THE BOARD: |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Report of the Directors |
forming part of the Strategic Report |
for the Year Ended 31 January 2024 |
The directors present their report with the financial statements of the company for the year ended 31 January 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 January 2024. |
FUTURE DEVELOPMENTS |
Whilst the order book previously reported has now been fulfilled the improved availability of vehicle stock allows the Company to provide a better service to customers with choice from stock and improved lead times. |
The Company is anticipating a further reduction in caravan sales as motorhomes and campervan demand continues to grow. |
The increase in the National Living Wage to be applied in April 2024 will be appreciated by relevant colleagues, it does however create additional cost pressures for the Company. |
Further investments in the facilities at Gunthorpe are being considered for 2024 continuing to improve the customer experience. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The company is funded through retained earnings, a loan from a connected company, an approved overdraft and through stocking facilities with various providers. The Company aims to manage liquidity risk whilst at the same time manage interest costs (and receipts foregone) together associated charges. |
Vehicle stock is managed on a continual basis to ensure that availability and choice for customers is maintained, balanced against the costs of the stocking facility and risk of any downward revaluation. |
Credit risk to customers is minimised with policies to ensure vehicles are not sold until payment received, either direct from the customer or from approved finance providers. |
QUALIFYING INDEMNITY PROVISION |
The company takes out indemnity insurance on behalf of the directors. |
ENGAGEMENT WITH SUPPLIERS |
The Company aims to ensure suppliers are paid on time within the terms agreed at the outset of the contract. |
DISCLOSURE IN THE STRATEGIC REPORT |
The directors have prepared a review of the business, together with a summary of the principal risks and uncertainties affecting the company, and these are detailed within the Strategic Report. The report includes an explanation of the company's financial risk management policies. |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Report of the Directors |
forming part of the Strategic Report |
for the Year Ended 31 January 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and 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. |
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. |
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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
forming part of the Strategic Report |
Lowdham Leisureworld Ltd |
Opinion |
We have audited the financial statements of Lowdham Leisureworld Ltd (the 'company') for the year ended 31 January 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 January 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 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 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 Strategic Report and the Report of the Directors 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 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, 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. |
Report of the Independent Auditors to the Members of |
forming part of the Strategic Report |
Lowdham Leisureworld Ltd |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page 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 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. |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. |
Our approach included obtaining an understanding of the legal and regulatory frameworks that are applicable to the company and we determined those that are most significant. Based on the results of our risk assessment we designed audit procedures to identify non-compliance with such laws and regulations. The specific procedures included enquiry of management and those charged with governance around actual and potential litigation and claims. |
In addition, and based on the results of our risk assessment we designed audit procedures to identify and address material misstatements in relation to fraud. Specifically we considered the risk of fraud through management override that may lead to a misappropriation of assets or inappropriate financial reporting. In response, we performed audit work over the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 |
Statutory Auditors |
Chartered Accountants & Business Advisers |
Alexandra House |
43 Alexandra St |
Nottingham |
Nottinghamshire |
NG5 1AY |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Income Statement |
for the Year Ended 31 January 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
858,654 | 1,917,549 |
Other operating income | 5 |
OPERATING PROFIT |
Interest receivable and similar income |
1,012,898 | 2,063,792 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION | 8 |
Tax on profit | 10 |
PROFIT FOR THE FINANCIAL YEAR |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Other Comprehensive Income |
for the Year Ended 31 January 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Note |
Prior year adjustment | 11 |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
1,267,527 |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Balance Sheet |
31 January 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank | 16 |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 | 6,461,488 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Statement of Changes in Equity |
for the Year Ended 31 January 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 February 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 January 2023 |
Prior year adjustment | - |
As restated |
Changes in equity |
Total comprehensive income | - |
Balance at 31 January 2024 |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Cash Flow Statement |
for the Year Ended 31 January 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) |
Loans from related party | 2,102,762 | - |
Net cash from financing activities | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
2,207,036 |
Cash and cash equivalents at end of year | 2 | 3,395,246 | 2,245,993 |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Notes to the Cash Flow Statement |
for the Year Ended 31 January 2024 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
as restated |
£ | £ |
Profit for the financial year |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 20,696 | 7,501 |
Finance income | (10,089 | ) | - |
Taxation |
1,248,387 | 2,290,300 |
Increase in stocks | ( |
) | ( |
) |
Decrease in trade and other debtors |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
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: |
Year ended 31 January 2024 |
31.1.24 | 1.2.23 |
£ | £ |
Cash and cash equivalents | 3,395,246 | 2,245,993 |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
as restated |
£ | £ |
Cash and cash equivalents | 2,245,993 | 2,207,036 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.2.23 | Cash flow | At 31.1.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,245,993 | 1,149,253 | 3,395,246 |
2,245,993 | 3,395,246 |
Total | 2,245,993 | 1,149,253 | 3,395,246 |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Notes to the Financial Statements |
for the Year Ended 31 January 2024 |
1. | STATUTORY INFORMATION |
Lowdham Leisureworld Ltd is a |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. |
These financial statements have been prepared using the historical cost convention. |
The financial statements are prepared in sterling, which is the functional currency of the entity rounded to the nearest £. |
The financial statements have been prepared on a going concern basis. |
Significant judgements and estimates |
The company did not make any significant judgements (apart from those involving estimations which are detailed in the notes below) that have a significant effect on the amounts recognised in the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. |
The company recognises revenue when: |
- The amount of revenue can be reliably measured; |
- It is probable that future economic benefits will flow to the entity; |
- and specific criteria have been met for each of the company's activities. |
The reliability of measurement and probability of flow of economic benefits generally occurs at the completion of the transaction which is also the point of transfer of title at delivery. |
Tangible fixed assets |
Land and Buildings | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out method (FIFO) method. |
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the profit and loss. |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
Classification |
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. |
Recognition and measurement |
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of future payments discounted at a market rate of interest for similar debt instrument. |
Impairment |
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. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets of group of assets. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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. |
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. |
Leases |
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit and loss on a straight-line basis over the period of the lease. |
Defined contribution pension obligation |
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. |
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
3. | ACCOUNTING POLICIES - continued |
Investments |
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. |
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
Trade debtors |
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. |
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. |
Trade creditors |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. |
Trade creditors are recognised initially at the transaction price. |
Borrowings |
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing. |
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. |
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. |
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 balance sheet 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 less 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. |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
as restated |
£ | £ |
The turnover is all generated within the UK. |
5. | OTHER OPERATING INCOME |
2024 | 2023 |
as restated |
£ | £ |
Rents received |
6. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
as restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
as restated |
Workshop and parts | 50 | 51 |
Administrative | 25 | 26 |
Sales | 30 | 29 |
Management | 6 | 6 |
2024 | 2023 |
as restated |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
as restated |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
as restated |
£ | £ |
Loan |
Interest payable |
8. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2024 | 2023 |
as restated |
£ | £ |
Hire of plant and machinery |
Operating leases- property |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
9. | AUDITORS' REMUNERATION |
2024 | 2023 |
as restated |
£ | £ |
Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
16,500 |
8,300 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
10. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
as restated |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods |
Deferred tax expense relating to changes in tax rates or laws | (33,650 | ) | 10,413 |
Tax rate difference | (10,772 | ) | - |
Total tax charge | 240,645 | 386,434 |
11. | PRIOR YEAR ADJUSTMENT |
The directors have re-assessed the accounting of management charges in the year ended 31 January 2023. |
Following this review, it was agreed to reduce the management charges incurred by the company from a connected company, Lowdham Outdoor Leisure Limited by £637,000. The corporation tax charge has been updated accordingly, resulting in increasing the tax charge by £121,030. |
Consequently, the net increase in reserves at 31 January 2023 was £515,970. |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
Land and | Plant and | and | Motor |
Buildings | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 February 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 January 2024 |
DEPRECIATION |
At 1 February 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
Included within the net book value of land and buildings above is £1,931,297 (2023 - £1,986,088) in respect of short leasehold land and buildings. |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
13. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
PROVISIONS |
At 1 February 2023 |
and 31 January 2024 | 345,181 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Lowdham Road, Gunthorpe, Nottingham, NG14 7ES, England and Wales |
Nature of business: |
% |
Class of shares: | holding |
The principal activity of Colin's Caravans of Berkshire Limited is dormant. |
Group accounts have not been prepared as Colin's Caravans of Berkshire Limited is an immaterial subsidiary. |
14. | STOCKS |
2024 | 2023 |
as restated |
£ | £ |
Finished goods |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
as restated |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments |
16. | CASH AT BANK |
2024 | 2023 |
as restated |
£ | £ |
Cash at bank and in hand | 3,395,246 | 2,245,993 |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
as restated |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | 19,364 | 87,535 |
Accruals and deferred income |
Trade creditors include an amount of £16,678,455 (2023 £11,778,719) which related to stock funding which is secured on the related stock. Included within this balance is an amount of £8,542,555 (2023 £5,483,812) which is also secured by way of a fixed and floating charge over all assets of the Company. There is also a cross guarantee with Lowdham Outdoor Leisure Limited amounting to £nil (2023 £2,598,870). |
Any bank borrowings are secured by a fixed and floating charge over the assets of the company, together with a charge on the property occupied by the Company at Gunthorpe, owned by W R Crafts, director of the Company. |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
as restated |
£ | £ |
Other creditors |
19. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
as restated |
£ | £ |
Within one year |
Between one and five years |
The amount of non-cancellable operating lease payments recognised as an expense during the year was £143,823 (2023 - £151,664). |
20. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
as restated |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 February 2023 |
Credit to Income Statement during year | ( |
) |
Balance at 31 January 2024 |
Lowdham Leisureworld Ltd (Registered number: 05223956) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | as restated |
£ | £ |
Ordinary | £1 | 1,000,002 | 1,000,002 |
22. | RESERVES |
Profit and loss account. |
This reserve records retained earnings and accumulated losses. |
23. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The pension costs charge for the year represents contributions payable by the company to the scheme and amounted to £110,181 (2023 - £112,459). |
24. | RELATED PARTY DISCLOSURES |
Summary of related party transactions |
Mr W R Crafts had a directors' loan account, which remained in credit throughout the period and therefore no interest has been charged. |
At the year end £19,394 (2023 - £87,537) is payable, categorised as falling due within one year. |
The company operates from premises in Bingham owned by Elite Recruitment pension fund which provides retirement benefits for all of the Directors and a key manager.The rent paid to the pension fund was £45,000 (2023 - £45,000). |
Summary of transactions with subsidiaries |
Colin's Caravans of Berkshire Limited. A 100% owned subsidiary of Lowdham Leisureworld Limited. |
The company is dormant and therefore no transactions have occurred between the companies during the year. |
Summary of transactions with other related parties |
Lowdham Outdoor Leisure Limited and Lowdham Leisureworld Limited are under common ownership. |
Sales of £nil (2023 - £528,681) were made to Lowdham Outdoor Leisure Limited during the year. Purchases of £nil (2023 - £856,786) were made from Lowdham Outdoor Leisure Limited during the year. Recharges of £nil (2023 - £25,000) were made to Lowdham Outdoor Leisure Limited during the year. An intercompany loan of £2,102,762 (2023 - £nil) was made from Lowdham Outdoor Leisure Limited, of which £2,762 (2023 - £nil) was interest charged at a rate of 4%. This balance is reported within creditors at the year end. |
25. | POST BALANCE SHEET EVENTS |
On 1 March 2024 the directors approved an interest free loan to Mr S R Sharpe, the Managing Director of £400,000. The loan is interest free and is due to be repaid no later than 30 September 2024. |
26. | ULTIMATE CONTROLLING PARTY |
The company is controlled by the directors who own 100% of the called up share capital. |