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Registration number: 00654281

Lancaster Leisure Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

 

Lancaster Leisure Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 8

Independent Auditor's Report

9 to 12

Consolidated Profit and Loss Account

13

Consolidated Statement of Comprehensive Income

14

Consolidated Balance Sheet

15

Balance Sheet

16

Consolidated Statement of Changes in Equity

17

Statement of Changes in Equity

18

Consolidated Statement of Cash Flows

19

Notes to the Financial Statements

20 to 38

 

Lancaster Leisure Limited

Company Information

Directors

Mrs S E Lancaster

R J R Lancaster

Company secretary

Mrs L M Todd

Registered office

30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

Auditors

Glover Stanbury
Chartered Accountants and Registered Auditors
30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

 

Lancaster Leisure Limited

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the company is a holding company providing management services for the group. The principle activities of the group consists of the operation of holiday parks, hoteliers and the provision of self-catering accommodation.

Fair review of the business

The directors report that group turnover has increased by £0.98m from £20.78m to £21.76m this year due to occupancy numbers increasing throughout the holiday parks and increase prices due to the inflationary pressures in the economy. This has resulted in a strong balance sheet position for the group and net cash resources are on a firm footing.

Forward bookings are promising but as with any seasonal business, forward visibility of income is limited thus it is still uncertain what the recent impacts of inflation, interest rates and the war in Ukraine might have on the group's income over the forthcoming twelve months.

The directors believe in the continuing investment by the group companies into maintaining and, where possible, improving the high standards of accommodation offered throughout the group. Along with the quality food, also value for money choices and the quality of the accommodation being offered to holiday makers continues to be the best that has been available. This is a vital part of ensuring customer satisfaction remains high and repeat business is obtained, which is what the directors’ are committed to achieving for the longer term irrespective of the odd period that may generate lower profits for a particular season. The directors' believe that this has helped to place the Woolacombe Bay Holiday Parks above the standard of offerings provided by other competitors in the South West. Additionally, the recent refurbishment of the hotel's facilities have given them the opportunity to offer an improved and enhanced experience now expected by guests of a four star hotel.

In the winter of 2024/25 the group has plans to develop the Twitchen holiday park further with projects to introduce an outdoor swmming pool , splash park, water slides and wave rider as well as the usual caravan replacement program within the holiday parks and the Woolacombe Bay Hotel is planning to carry out significant work to the tennis courts area. As usual, the regular refurbishment programs will be continued to maintain the standard of the facilities as outlined above.

The group has a very strong balance sheet and at the end of the year, net assets totalled £59,647,832 (2022 - £56,305,576). Given the very significant expense of obtaining and then maintaining valuations of the land and buildings included within the group's fixed assets, the directors' have historically decided to keep these assets at cost. However, they believe that the market value of these assets is well in excess of the value stated in the financial statements, but in the absence of formal valuations have not adopted these values in the financial statements.

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

Financial KPIs

Unit

2023

2022

Turnover

£

21,760,767

20,782,593

Gross profit margin

%

61

64

Profit before tax

£

4,410,940

5,489,838

 

Lancaster Leisure Limited

Strategic Report for the Year Ended 31 December 2023

Section 172(1) statement

The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the Lancaster Leisure Group for the benefit of its members as a whole, and in doing so have regard to a range of matters when making decisions for the long term. Key decisions and matters that are of strategic importance to the various companies in the group are appropriately informed by s172 factors.

There is an open and transparent dialogue with our key stakeholders, we have been able to develop a clear understanding of their needs and monitor their impact on our strategic plans. As part of the Board’s decision-making process, the Board considers the potential impact of decisions on relevant stakeholders whilst also having regard to a number of broader factors, including the impact of the Company’s operations on the community and environment, responsible business practices and the likely consequences of decisions in the long term.

For example; continual investment into maintaining and where possible improvement of the high standards of accommodation offered throughout the group. There is also significant employee involvement throughout the businesses with regular meetings and information is exchanged on performance and strategy and training provided to assist the employees in delivering the high standards of customer service expected across the group. In addition, end of season ‘exit interviews’ are regularly held to obtain active feedback on the staff experience and identifying any areas of improvement. The group maintains very good relationships with its suppliers and uses a wide mix of national and local firm’s depending upon expertise, pricing, standard of delivery and reliability. As part of this key relationship suppliers are all paid on a timely basis. With the large influx of visitors to the holiday parks and also hotel which are all in the North Devon region, it is important that the group maintains and promotes good relationships with the local community. The operational directors are resident within the local area and are actively involved within the community to ensure that the Lancaster group continues to have a positive impact on the area. As part of this, the environmental impact of the groups operations are frequently reviewed to ensure that best practices are being followed.

Principal risks and uncertainties

Due to the nature of the business, the group’s primary earnings period is over the summer months and therefore it can be difficult to accurately project future earnings as this can be weather dependant, particularly regarding last minute bookings. However, the directors’ actively monitor the booking deposits received, which are a reasonably reliable indicator of the expected earnings, and manage the business accordingly. As noted above the balance sheet position is extremely strong and should be able to withstand any downturn in trade should the economic situation worsen.

Approved by the Board on 17 September 2024 and signed on its behalf by:

Mrs L M Todd
Company secretary

   
     
 

Lancaster Leisure Limited

Directors' Report for the Year Ended 31 December 2023

The directors present their report and the for the year ended 31 December 2023.

Directors of the group

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

R M Lancaster (Died 7 February 2024)

Mrs S E Lancaster

R J R Lancaster

Mrs R J Lancaster (Died 29 April 2024)


Directors' responsibilities

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Dividends

The directors recommend a final dividend payment of £24,496 be made in respect of the financial year ended 31 December 2023. This dividend has not been recognised as a liability in the financial statements.

Financial instruments

Objectives and policies

As the positive cash flow can be orientated towards the Spring and Summer months, the group is managed to ensure that there is sufficient working capital to adequately finance the group through the Winter and also allow ongoing maintenance and refurbishment to proceed where required.

 

Lancaster Leisure Limited

Directors' Report for the Year Ended 31 December 2023

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

The business' principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors. Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Loans comprise loans from the directors and from financial institutions. The interest rate on loans from financial institutions is variable, but the monthly repayments are fixed. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments and hedging is used where appropriate.

The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.

Employment of disabled persons

It is our policy that people with disabilities should have full and fair consideration for all vacancies and training needs. We are committed to interview those people with disabilities who fulfil the minimum criteria, and also endeavour to retain employees in the workforce if they become disabled during employment. We will actively retrain and adjust their environment where possible to allow them to maximise their potential.

Section 172(1) statement

The section 172(1) statement has been included within the Strategic Report due to it's strategic importance.

 

Lancaster Leisure Limited

Directors' Report for the Year Ended 31 December 2023

Employee involvement

The group is committed to employee involvement throughout the business. Employees are kept well informed of the performance and strategy within each company through regular meetings. Provision of this information is undertaken at least on a monthly basis to ensure that all employees are aware of their performance and the targets that are expected. Regular meetings are also held between senior management and the directors which allows employee views to be taken into account. We also conduct leaving interviews at the end of the season for those staff employed only over the spring and summer months to obtain active feedback of areas where improvements may be made.

Future developments

The group is continually seeking to maintain and, where possible, improve the high standard of the holiday accommodation that it offers and so will incur substantial repairs and maintenance costs each year. In addition, where opportunities arise, new attractions and features will be installed to enhance the holiday makers experience.

As part of these aims, the caravan fleet is continually being replaced so that the caravans remain current with any new features then being available to holiday makers. The continual investment into maintaining the holiday park sites help to place the Woolacombe Bay Holiday Parks above the standard of offerings provided by other competitors in the South West.

As is important with a hotel with the four star status that Woolacombe Bay Hotel has earned, the high standards that are currently implemented will be continued. With the hotel enjoying one of the most enviable locations in England and overlooking one of the finest beaches in Europe the directors are confident that the company is well placed to benefit from the ongoing investment program.

Engagement with suppliers, customers and other relationships

We work with a wide range of suppliers to deliver services to our guests which is vital for our long term success. We honour payment terms in contracts with prompt payments.

Understanding what is important to our guests is key to our long-term success. Understanding, acknowledging and appreciating how our guests view our business, product offering and service delivery ensures that we can adapt and change what we do and how we do it to maintain our competitive advantage. Feedback is reviewed from Tripadvisor reviews as well as from feedback from customers when on site and this is fed back to relevant managers and directors and any faults identified are corrected promptly in order to maintain the high customer standards expected within the group.

 

Lancaster Leisure Limited

Directors' Report for the Year Ended 31 December 2023

Energy and carbon regulations

Governance

The group is required to report on its UK energy use and the associated GHG emissions which are set out in the table further below. We have followed the Government’s Guidance on how to measure and report greenhouse gas emissions and have used the financial control approach regarding the subsidiary companies. The CO2 conversion factors have been obtained from the Carbon Trust.

Strategy

Data has been collected for the year ended 31 December 2023. The group has implemented a number of energy efficency actions to limit emissions, including the following:
- A regular replacement program of caravan accommodation is implemented which ensures all new caravans meet the current recommended insulation standards and also have modern energy efficient boilers and heating systems.
- Refurbishment work to existing static accomodation is also carried out to current standards to ensure rooms and villas/lodges are modernised and use the latest energy efficient devices. In addition the hotel within the group utlises a bank system of boilers within its main heating system that only fire according to demand.
- The major refurbishment works carried out to the Twitchen and Holiday Village central amenity blocks has allowed installation of substantially more insulation and utilisation of modern energy efficient glazing which minimises heat build up during the Summer and heat loss from the buildings during the more inclement shoulder months of the season.
- Where appropriate, energy efficient lighting has been used whether that be via replacement of existing bulbs or via replacement light fittings installed during refurbishment projects.
- Energy consumption is monitored to identify areas where energy usage is unusual and it may be possible to achieve reductions. In addtion, water use is also monitored for prompt identification of any leaks and also identify areas for efficientcy of water usage.

Emissions and energy consumption

Summary of scope 1 (direct) greenhouse gas emissions for the year ended 31 December 2023:

Gas

kWh

Co2e tonnes

Gas

5895293

1,293

Electricity grid

3268814

677

Oil

267418

74

   

2,044

Intensity ratio

Greenhouse Gas Emissions Intensity Ratio

Co2e tonnes per £100,000 of revenue. During the year ended 31 December 2023 this was 9.39.

 

Lancaster Leisure Limited

Directors' Report for the Year Ended 31 December 2023

Disclosure of information to the auditor

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

Approved by the Board on 17 September 2024 and signed on its behalf by:

Mrs L M Todd
Company secretary

   
     
 

Lancaster Leisure Limited

Independent Auditor's Report to the Members of Lancaster Leisure Limited

Opinion

We have audited the financial statements of Lancaster Leisure Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2023 and of the group's profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Lancaster Leisure Limited

Independent Auditor's Report to the Members of Lancaster Leisure Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

adequate accounting records have not been kept 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 page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

 

Lancaster Leisure Limited

Independent Auditor's Report to the Members of Lancaster Leisure Limited

Auditor’s responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
1. The nature of the industry and sector, control environment and business performance;
2. results of our enquiries of management about their own identification and assessment of the risks of irregularities;
3. any matters we identified having obtained and reviewed the group’s documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
4. the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in income. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK corporate governance legislation and UK tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.

Audit response to risks identified
As a result of performing the above, we have not identified any contradictory evidence during our enquiries.

 

Lancaster Leisure Limited

Independent Auditor's Report to the Members of Lancaster Leisure Limited

Our procedures to respond to risks identified included the following:
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reading minutes of meetings of those charged with governance; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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 auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.



Nigel Bennett FCA (Senior Statutory Auditor)
For and on behalf of Glover Stanbury, Statutory Auditor

30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

18 September 2024

 

Lancaster Leisure Limited

Consolidated Profit and Loss Account for the Year Ended 31 December 2023

Note

Total
2023
£

Total
2022
£

Turnover

3

21,760,767

20,782,593

Cost of sales

 

(8,400,768)

(7,521,074)

Gross profit

 

13,359,999

13,261,519

Administrative expenses

 

(9,843,844)

(7,905,678)

Other operating income

4

-

2,667

Operating profit

5

3,516,155

5,358,508

Other interest receivable and similar income

7

897,477

246,570

Interest payable and similar expenses

8

(2,692)

(115,240)

   

894,785

131,330

Profit before tax

 

4,410,940

5,489,838

Tax on profit

12

(1,040,774)

(1,032,092)

Profit for the financial year

 

3,370,166

4,457,746

Profit/(loss) attributable to:

 

Owners of the company

 

3,370,166

4,457,746

The group has no recognised gains or losses for the year other than the results above.

 

Lancaster Leisure Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Profit for the year

3,370,166

4,457,746

Total comprehensive income for the year

3,370,166

4,457,746

Total comprehensive income attributable to:

Owners of the company

3,370,166

4,457,746

 

Lancaster Leisure Limited

(Registration number: 00654281)
Consolidated Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed Assets

 

Tangible Assets

13

38,488,729

31,733,976

Current assets

 

Stocks

15

179,598

122,864

Debtors

16

2,873,946

344,655

Cash at bank and in hand

17

30,526,169

31,693,669

 

33,579,713

32,161,188

Creditors: Amounts falling due within one year

18

(10,117,861)

(5,321,266)

Net current assets

 

23,461,852

26,839,922

Total assets less current liabilities

 

61,950,581

58,573,898

Creditors: Amounts falling due after more than one year

18

-

(63,907)

Provisions for liabilities

20

(2,299,335)

(2,204,415)

Net assets

 

59,651,246

56,305,576

Capital and Reserves

 

Called up share capital

22

11,109

11,109

Capital redemption reserve

687,080

687,080

Retained Earnings

58,953,057

55,607,387

Equity attributable to owners of the company

 

59,651,246

56,305,576

Shareholders' funds

 

59,651,246

56,305,576

Approved and authorised for issue by the Board on 17 September 2024 and signed on its behalf by:


Mrs S E Lancaster
Director

 
 

Lancaster Leisure Limited

(Registration number: 00654281)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed Assets

 

Tangible Assets

13

192,318

192,318

Investments

14

21,288

21,288

 

213,606

213,606

Current assets

 

Debtors

16

5,861,282

23,144,157

Cash at bank and in hand

 

20,000,000

630,952

 

25,861,282

23,775,109

Creditors: Amounts falling due within one year

18

(3,376,806)

(1,290,924)

Net current assets

 

22,484,476

22,484,185

Net assets

 

22,698,082

22,697,791

Capital and Reserves

 

Called up share capital

22

11,109

11,109

Capital redemption reserve

687,080

687,080

Retained Earnings

21,999,893

21,999,602

Shareholders' funds

 

22,698,082

22,697,791

The company made a profit after tax for the financial year of £24,786 (2022 - profit of £91,536).

Approved and authorised for issue by the Board on 17 September 2024 and signed on its behalf by:


Mrs S E Lancaster
Director

 
 

Lancaster Leisure Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company

Share capital
£

Capital redemption reserve
£

Retained Earnings
£

Total
£

Total equity
£

At 1 January 2023

11,109

687,080

55,607,387

56,305,576

56,305,576

Profit for the year

-

-

3,370,166

3,370,166

3,370,166

Dividends

-

-

(24,496)

(24,496)

(24,496)

At 31 December 2023

11,109

687,080

58,953,057

59,651,246

59,651,246

Share capital
£

Capital redemption reserve
£

Retained Earnings
£

Total
£

Total equity
£

At 1 January 2022

11,109

687,080

54,174,127

54,872,316

54,872,316

Profit for the year

-

-

4,457,746

4,457,746

4,457,746

Dividends

-

-

(3,024,486)

(3,024,486)

(3,024,486)

At 31 December 2022

11,109

687,080

55,607,387

56,305,576

56,305,576

 

Lancaster Leisure Limited

Statement of Changes in Equity for the Year Ended 31 December 2023

Share capital
£

Capital redemption reserve
£

Retained Earnings
£

Total
£

At 1 January 2023

11,109

687,080

21,999,602

22,697,791

Profit for the year

-

-

24,786

24,786

Dividends

-

-

(24,495)

(24,495)

At 31 December 2023

11,109

687,080

21,999,893

22,698,082

Share capital
£

Capital redemption reserve
£

Retained Earnings
£

Total
£

At 1 January 2022

11,109

687,080

24,932,552

25,630,741

Profit for the year

-

-

91,536

91,536

Dividends

-

-

(3,024,486)

(3,024,486)

At 31 December 2022

11,109

687,080

21,999,602

22,697,791

 

Lancaster Leisure Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

3,370,166

4,457,746

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

1,613,905

1,300,503

Loss/(profit) on disposal of tangible assets

148,439

(19,656)

Finance income

7

(897,477)

(246,570)

Finance costs

8

2,692

115,240

Income tax expense

12

1,040,774

1,032,092

 

5,278,499

6,639,355

Working capital adjustments

 

Increase in stocks

15

(56,734)

(55,492)

(Increase)/decrease in trade debtors

16

(2,529,291)

507,764

Increase/(decrease) in trade creditors

18

1,401,653

(3,819,391)

Cash generated from operations

 

4,094,127

3,272,236

Income taxes paid

12

(570,638)

(1,302,474)

Net cash flow from operating activities

 

3,523,489

1,969,762

Cash flows from investing activities

 

Interest received

897,477

246,570

Acquisitions of tangible assets

(8,866,725)

(5,287,037)

Proceeds from sale of tangible assets

 

349,627

31,283

Net cash flows from investing activities

 

(7,619,621)

(5,009,184)

Cash flows from financing activities

 

Interest paid

8

(2,692)

(115,240)

Payments to finance lease creditors

 

(62,711)

(1,306,416)

Dividends paid

(24,496)

(3,024,486)

Net cash flows from financing activities

 

(89,899)

(4,446,142)

Net decrease in cash and cash equivalents

 

(4,186,031)

(7,485,564)

Cash and cash equivalents at 1 January

 

31,693,669

39,179,233

Cash and cash equivalents at 31 December

 

27,507,638

31,693,669

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

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

These financial statements present the results of the Lancaster Leisure Group.

The address of its registered office is:
30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

The principal place of business is:
Woolacombe Bay Hotel
WOOLACOMBE
Devon
EX34 7BN

These financial statements were authorised for issue by the Board on 17 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

All amounts are in £'s.

Summary of disclosure exemptions

The parent company, as a qualifying entity, has taken advantage of the disclosure exemptions under FRS102 paragraph 1.12 not to include a statement of cashflows, nor disclosure of key management personnel compensation.

Going concern

The financial statements have been prepared on a going concern basis.

Judgements

There are no judgements which management have made in the process of applying the accounting policies.

Key sources of estimation uncertainty

There are no key sources of estimation uncertainty that have a significant risk of causing a material adjustment to assets and liabilities to be disclosed.

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and all its subsidiary undertakings. No profit and loss account is presented for the company as permitted by Section 408 of the Companies Act 2006.

A subsidiary is an entity controlled by the Company. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the Group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the Company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Revenue recognition

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

Group revenue recognition:
The hotel company’s self-catering accommodation revenue is recognised when residents depart and a bill is produced. Revenue relating to the car park, spa, cinema and non-account extras are recognised at the point of delivery of service. Function income is recognised on the date of the event. Revenue relating to the gym is recognised at the point of delivery of the service except for revenue from gym memberships which are recognised over the life of the membership contract. The holiday parks recognise revenue when residents arrive. Revenue relating to the bars and other activity and amenity areas is recognised at the point of delivery of service.

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Government grants

Grants have been recognised in the accounts under the accrual model. Under the accrual model, grants relating to revenue shall be recognised as income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the UK where the group operates and generates taxable income.

Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred corporation tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible Assets

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.

Depreciation

No depreciation is provided on freehold land . Freehold buildings are also not depreciated as it is company policy to maintain them to such a standard that the estimated aggregate residual values are so high that any depreciation is not material to the accounts. Any impairment in the value of the assets is recognised in the profit and loss account when incurred.

Depreciation is provided on tangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% reducing balance basis

Fixtures and fittings

20% straight line basis and for Hotel 4 equal annual instalments

Office equipment

15% reducing balance basis

Other equipment

25% reducing balance basis

Motor vehicles

25% reducing balance basis

Motor vessel

25% reducing balance basis

Caravans

10% reducing balance basis

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

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 the undiscounted amount of the cash expected to be received (i.e. net of impairment). A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debts.

Stocks

Stock is valued at the lower of cost and net realisable value on a first in first out basis, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less selling costs.

Work in progress comprises direct materials and, where applicable, direct labour costs incurred in bringing the inventories to their present location and condition. At each reporting date, work in progress is assessed for impairment. If work in progress is impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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 group 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 and subsequently measured at the undiscounted amount of the cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at transaction price 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 group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Leases

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

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

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

Share capital

Ordinary and preference shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Financial instruments

Classification
Basic financial assets include trade and other debtors, cash and bank balances. Basic financial liabilities include trade and other payables, bank loans and loans from fellow Group companies.

 Recognition and measurement
Basic financial assets are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. Other debtors are classified as current assets if payment is due within
one year or less and are initially recorded at transaction price and subsequently measured at the undiscounted amount of the cash expected to be received. Trade debtors are referred to above.

Basic financial liabilities are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Other creditors are classified as current liabilities if payment is due within one year or less and are recognised initially at transaction price and subsequently measured at the undiscounted amount of the cash expected to be paid. If not, they are presented as non-current liabilities and are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Trade creditors and leases are referred to above.

 Impairment
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Accommodation and associated facilities sales

21,588,704

20,613,867

Rental income from property

172,063

150,726

Management charges receivable

-

18,000

21,760,767

20,782,593

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2023
£

2022
£

Government grants

-

2,667

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

1,613,905

1,300,503

Operating lease expense - plant and machinery

19,197

33,007

Loss/(profit) on disposal of property, plant and equipment

148,439

(19,656)

6

Government grants

The group received government grants relating to the Coronavirus Job Retention Scheme (CJRS) in the previous year and also received property based rates grants and business support grants.

The amount of grants recognised in the financial statements was £Nil (2022 - £2,667).

There are no unfulfilled conditions or other contingencies attaching to the grants that have been recognised in income

7

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank balances

892,227

245,884

Other finance income

5,250

686

897,477

246,570

8

Interest payable and similar charges

2023
£

2022
£

Interest on obligations under finance leases and hire purchase contracts

1,751

19,315

Interest expense on other finance liabilities

849

95,860

Other finance costs

92

65

2,692

115,240

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

9

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements and consolidation

8,739

8,323

Audit of the financial statements of subsidiaries of the company pursuant to legislation

18,387

17,684

27,126

26,007

Other fees to auditors

Taxation compliance services

1,250

1,200

All other non-audit services

25,349

23,793

26,599

24,993


 

10

Staff costs

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

2023
£

2022
£

Wages and salaries

6,746,246

6,248,755

Social security costs

373,915

526,585

Pension costs, defined contribution scheme

73,650

211,651

7,193,811

6,986,991

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

2023
 No.

2022
 No.

Administration and management

21

21

Bar, restaurant, entertainment, maintenance and other staff

340

304

361

325

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

317,798

686,517

Contributions paid to money purchase schemes

1,431

73,821

319,229

760,338

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

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

2

2

In respect of the highest paid director:

2023
£

2022
£

Remuneration

158,736

248,010

Company contributions to money purchase pension schemes

1,321

35,821

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

12

Taxation

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

2023
£

2022
£

Current taxation

UK corporation tax

945,854

663,296

Deferred taxation

Arising from origination and reversal of timing differences

94,920

368,796

Tax expense in the income statement

1,040,774

1,032,092

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 23.51% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

4,410,940

5,489,838

Corporation tax at standard rate

1,036,936

1,043,069

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

21

12

Tax increase/(decrease) from effect of capital allowances and depreciation

3,817

(10,989)

Total tax charge

1,040,774

1,032,092

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Tangible Assets

Group

Freehold land and buildings
£

Furniture, fittings and caravans
£

Motor vehicles
 £

Other property, plant and equipment
£

Total
£

Cost

At 1 January 2023

21,561,572

13,026,892

249,792

11,010,276

45,848,532

Additions

4,783,212

2,875,194

22,561

1,185,758

8,866,725

Disposals

-

(1,300,982)

(30,350)

-

(1,331,332)

At 31 December 2023

26,344,784

14,601,104

242,003

12,196,034

53,383,925

Depreciation

At 1 January 2023

-

6,195,221

112,911

7,806,425

14,114,557

Charge for the year

-

644,014

35,671

934,220

1,613,905

Eliminated on disposal

-

(803,579)

(29,687)

-

(833,266)

At 31 December 2023

-

6,035,656

118,895

8,740,645

14,895,196

Carrying amount

At 31 December 2023

26,344,784

8,565,448

123,108

3,455,389

38,488,729

At 31 December 2022

21,561,572

6,831,671

136,881

3,203,852

31,733,976

Included within the net book value of land and buildings above is £23,887,981 (2022 - £21,561,572) in respect of freehold land and buildings and £2,456,803 (2022 - £Nil) in respect of short leasehold land and buildings.
 

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Assets held under finance leases and hire purchase contracts

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

 

2023
£

2022
£

Caravans

202,583

225,093

     

Company

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Total
£

Cost

At 1 January 2023

192,318

91,907

23,894

308,119

At 31 December 2023

192,318

91,907

23,894

308,119

Depreciation

At 1 January 2023

-

91,907

23,894

115,801

At 31 December 2023

-

91,907

23,894

115,801

Carrying amount

At 31 December 2023

192,318

-

-

192,318

At 31 December 2022

192,318

-

-

192,318

Included within the net book value of land and buildings above is £192,318 (2022 - £192,318) in respect of freehold land and buildings.
 

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

14

Investments

Group

Details of undertakings

Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Woolacombe Bay Hotel Limited

Ordinary

100%

100%

Woolacombe Bay Holiday Village Limited

Ordinary

100%

100%

Lancasters Trading & Development Company Limited

Ordinary

100%

100%

Subsidiary undertakings

The principal activity of Woolacombe Bay Hotel Limited is hoteliers.

The principal activity of Woolacombe Bay Holiday Village Limited is provision of self catering accommodation.

The principal activity of Lancasters Trading & Development Company Limited is property development and maintenance.

For each subsidiary the address of the registered office is the same as disclosed for Lancaster Leisure Limited in note 1 to the accounts.

 

Company

2023
£

2022
£

Investments in subsidiaries

21,288

21,288

Subsidiaries

£

Cost

At 1 January 2023

21,288

Carrying amount

At 31 December 2023

21,288

At 31 December 2022

21,288

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

15

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Work in progress

6,310

19,829

-

-

Consumable stocks and goods for resale

173,288

103,035

-

-

179,598

122,864

-

-

16

Debtors

   

Group

Company

Current

Note

2023
£

2022
£

2023
£

2022
£

Trade Debtors

 

36,990

2,339

-

-

Amounts owed by group undertakings

26

-

-

3,635,439

23,144,157

Other debtors

 

428,316

119,972

-

-

Directors' current accounts

 

2,225,843

-

2,225,843

-

Prepayments

 

182,797

222,344

-

-

   

2,873,946

344,655

5,861,282

23,144,157

17

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash on hand

5,211

8,663

-

-

Cash at bank

10,510,958

31,675,006

-

630,952

Short-term deposits

20,010,000

10,000

20,000,000

-

30,526,169

31,693,669

20,000,000

630,952

Bank overdrafts

(3,018,531)

-

(3,018,531)

-

Cash and cash equivalents in statement of cash flows

27,507,638

31,693,669

16,981,469

630,952

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

18

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

23

3,082,437

62,711

3,018,531

-

Trade Creditors

 

3,550,967

581,969

2,982

-

Amounts owed to group undertakings

26

-

-

59,032

37,642

Social security and VAT

 

652,321

521,660

277,547

167,800

Outstanding defined contribution pension costs

 

36,466

32,976

1,673

1,404

Other payables

 

5,946

382,752

1

379,320

Accruals

 

2,151,212

2,847,324

14,672

108,121

Corporation tax liability

12

638,512

263,296

2,368

21,487

Directors' current accounts

 

-

628,578

-

575,150

 

10,117,861

5,321,266

3,376,806

1,290,924

Due after one year

 

Loans and borrowings

23

-

63,907

-

-


The bank overdraft is secured by a fixed and floating charge over assets, including stock, of the company.

19

Obligations under leases and hire purchase contracts

Group

Finance leases

The finance lease and hire purchase contracts are secured against the specific assets financed.

The total of future minimum lease payments is as follows:

2023
 £

2022
 £

Not later than one year

63,907

62,711

Later than one year and not later than five years

-

63,907

63,907

126,618

Operating leases

The total of future minimum lease payments is as follows:

2023
 £

2022
 £

Not later than one year

72,430

73,658

Later than one year and not later than five years

143,644

196,775

Later than five years

-

19,300

216,074

289,733

The amount of non-cancellable operating lease payments recognised as an expense during the year was £63,644 (2022 - £78,578).

Company

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

6,142

7,370

Later than one year and not later than five years

-

6,142

6,142

13,512

The amount of non-cancellable operating lease payments recognised as an expense during the year was £7,512 (2022 - £6,756).

20

Deferred tax and other provisions

Group

Deferred tax
£

Total
£

At 1 January 2023

2,204,415

2,204,415

Increase (decrease) in existing provisions

94,920

94,920

At 31 December 2023

2,299,335

2,299,335

The deferred tax provision comprises the difference between accumulated depreciation and capital allowances.

21

Pension schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £73,650 (2022 - £211,651).

Contributions totalling £36,467 (2022 - £32,975) were payable by the group to the scheme at the end of the year and are included in creditors.

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

22

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

3,609

3,609

3,609

3,609

5% Non-cumulative preference shares of £1 each

7,500

7,500

7,500

7,500

 

11,109

11,109

11,109

11,109

Redeemable preference shares

The 5% Preference shares are redeemable at the option of the company. They are redeemable at £1 per share and carry no voting rights. Winding up value for redeemable preference share is £1.

Rights

Ordinary shares have the following rights:
Unrestricted ordinary shares with full voting rights and distribution of dividends.

5% Non-cumulative preference shares have the following rights:
Right to 5% annual payment without voting rights.

23

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Finance lease liabilities

-

63,907

-

-

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank overdrafts

3,018,531

-

3,018,531

-

HP and finance lease liabilities

63,906

62,711

-

-

3,082,437

62,711

3,018,531

-

Bank Overdraft
The bank overdrafts are secured by fixed and floating charges over assets. The aggregate secured liabilities disclosed below are stated before offset of any positive bank balances. However, in the consolidated accounts the group is in an overall positive bank position, which is why no bank overdrafts are reflected above.

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Group

Aggregate of secured liabilities

The aggregate of secured liabilities at the year end is £3,330,148 (2022 - £3,399,471).

The finance lease liabilities are secured against the specific assets concerned.
The bank overdraft is secured by fixed and floating charges over assets.

24

Dividends

   

2023

 

2022

   

£

 

£

Final dividend of £6.79 (2022 - £6.79) per ordinary share

 

24,496

 

24,496

Interim dividend of £Nil (2022 - £1,696.83) per ordinary share

 

-

 

2,999,990

   

24,496

 

3,024,486

         

The directors are proposing a final dividend of £6.79 (2022 - £6.79) per share totalling £24,496 (2022 - £24,496). This dividend has not been accrued in the Balance Sheet.

25

Contingent liabilities

Company

The company has given an unlimited multilateral guarantee for the overdrafts of companies in the Lancaster group. The potential liability at 31 December 2023 of all other company overdrafts amounted to £3,266,241 (2022 - £3,262,853). Included within this guarantee is a net overdraft position of £3,266,241 (2022 - £3,262,853) relating to Lancasters Trading & Development Co Limited, a company which has a deficit balance sheet position of £1,250,172 at 31 December 2023 (2022 deficit position - £1,299,656). The Lancaster Leisure Group companies, of which Lancaster Leisure Limited is a member, have agreed to provide continuing financial support to Lancasters Trading & Development Co Limited.

 

Lancaster Leisure Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

26

Related party transactions

Group

   

2023
£

 

2022
£

       

Dividends paid to directors during the year

 

24,496

 

3,024,486

         

Other transactions with directors
£2,225,843 was owed by the directors at the balance sheet date. In 2022 £628,578 was owed to the directors and interest was credited at 1.5% over bank base rate to the directors' in respect of this balance, which amounted to £91,098. Key management compensation is the same as directors' remuneration which is as disclosed in note 11 to the financial statements above.

Woolacombe Court Flat and Bay Lodge
During the year the Lancaster Group acquired the leasehold property of Woolacombe Court Flats at open market value of £2,456,803 and the Bay Lodge freehold property at open market value for £863,198 from Mr R M & Mrs R J Lancaster, who are both Directors.
The Woolacombe Bay Hotel Limited incurred some shared expenses and overheads on behalf of these properties during the year. These items have been recharged to the directors' and reimbursed at cost. A management charge of £Nil (2022 - £18,000) was received by the group from this business.

Summary of transactions with other related parties

Lancaster Leisure Retirement and Death Benefit Scheme.
From July 2021 Woolacombe Bay Holiday Village Limited rented the laundry building owned by Lancaster Leisure Retirement and Death Benefit Scheme, which is a small self administered pension scheme of which all of the directors are trustees and members.
The rentable value has been determined using an open market value, and during the year £26,400 was charged for rent (2022 - £33,000).
At the balance sheet date the amounts due to Lancaster Leisure Retirement and Death Benefit Scheme was £Nil (2022 - £Nil).