Company registration number 03142636 (England and Wales)
LANGDALE OWNERS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
LANGDALE OWNERS PLC
COMPANY INFORMATION
Directors
Mr J Longmuir
Mr W I R Hamilton
Mr M Coletta
Mr R Crook
Mrs S Tetlow
Mr A James
Mr R Smith
(Appointed 19 November 2023)
Secretary
Mrs J A Bell
Company number
03142636
Registered office
The Langdale Estate
Great Langdale
Ambleside
LA22 9JD
Auditor
MHA
14 Mannin Way
Lancaster Business Park
Lancaster
LA1 3SW
LANGDALE OWNERS PLC
CONTENTS
Page
Strategic report
1 - 7
Directors' report
8 - 9
Directors' responsibilities statement
10
Independent auditor's report
11 - 13
Group statement of comprehensive income
14
Group balance sheet
15
Company balance sheet
16
Group statement of changes in equity
17
Company statement of changes in equity
18
Group statement of cash flows
19
Notes to the financial statements
20 - 34
LANGDALE OWNERS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
Chairman's statement

Business Performance

 

In last year’s accounts and at the AGM we reported early indications on trading during the first half of the year were very positive, with revenues and profits showing an upward trend. All areas of the business enjoyed buoyant trading. This trend slowed somewhat in the third quarter, though at the end of month nine, sales were still above the previous year by 12.6% and net profit was ahead of the prior year by a relatively healthy £209,510.

 

Unfortunately, the last three months of the 2023/24 financial year were significantly impacted by the pool hall closure for the roof replacement and solar PV array installation and this was the main driver of the disappointing year end position.

 

The decision to close such an integral part of the operation and a key component of the Langdale experience for all guests, is never taken lightly, we know the disappointment it can cause and the negative impact it has on profits. However, structurally the roof was compromised and in need of urgent repair and there was no alternative other than to carry out the work at the earliest opportunity.

 

Whilst closure has an obvious and direct impact on operating performance of these departments, it was the knock on effect to the Brimstone and Langdale Hotels that had a more significant impact on performance, with over £186k in lost accommodation revenue alone, plus the related impact on demand for food and beverage in Stove and Wainwrights, due to fewer hotel residents over this period.

 

Marketing messages in this time were very challenging indeed, trying to find the right balance of pricing to attract visitors without these facilities being available.

 

The sales and marketing team have responded to the challenging business environment with improved internal marketing activities to hotel guests and lodge owners, to promote the facilities and offerings. These offerings have included improved pre-arrival communications and improved internal promotions.

 

More detail on departmental trading follows in the Managing Director’s Trading Review, though worth noting is that Stove has improved, but has still struggled at times with the consistency of its service delivery, exacerbated by continued difficulties in recruitment and retention of the kitchen brigade. This remains an ongoing challenge, where salaries and benefits need to be always at the upper end. In addition, the year was punctuated with severe challenges with food cost in particular, amplified by abnormal price rises and some challenging kitchen management issues. Both issues have been resolved through food inflation recovery, more appropriate allocations of revenue from dinner bed and breakfast packages, stronger auditing, and the introduction of a more experienced Executive Chef. This appointment is key to bringing standards of delivery back into line, whilst building up the skills, confidence, and capabilities of our kitchen brigade. Chef recruitment generally remains a huge industry challenge.

 

The first quarter of the new financial year has been challenging. There has been a slowdown in demand for accommodation nationally, on the back of nervousness over cost of living and direction of travel for the economy with the change of government. In addition, the poor weather has seen an increase in demand for overseas holidays rise significantly this summer. We are anticipating this will settle towards the autumn and there will be more optimism around the latter part of the year.

 

With continuing cost pressures unlikely to abate, the challenge for the business is to find ways to continue to maintain the traditional strong occupancy and high room rate, while at the same time capturing increased revenue share from guests and looking for efficiencies in our cost base. This is the challenge that Michael Coletta and his team face on a daily basis.

LANGDALE OWNERS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

Shareholder Discounts

 

Shareholders and indeed all Owners benefitted from a record level of discount from the Owner Privilege Card. The total value of the discount in the year was £161,546. This is a direct cost to the P&L, but Directors recognise the value of this to Owners and regard it as a key benefit which we would wish to maintain.

 

The Company continues to offer Langdale Owners Club an arrangement to reduce the fee due under the management agreement. In addition, all guests staying in the timeshare properties continue to enjoy free access to the Leisure Club facilities, which is not the case in most other resorts.

 

As you will be aware, the Board suspended Shareholder Discount on Management Fees at the start of the pandemic, to protect the balance sheet. Should trading in the second half of the year indicate a recovery, the Board would be minded to cautiously reinstate the Shareholders Discount, beginning at a modest level, from 2025.

 

Governance

 

There are four scheduled formal Board meetings each year, in addition to the AGM. The Board also has a monthly virtual call to discuss business issues. It is the role of the Non-executive Directors to support and constructively challenge the Executive Team, this is achieved by collective discussion at Board meetings and through ongoing interaction with the operational team on a regular basis, where a Non-Executive Directors field of expertise can be of assistance.

 

In the early part on the new year, we have commenced a period of Director refresher training, this has included the subjects Anti-Bribery and Business Ethics, Equality and Diversity and General Data Protection Regulations (GDPR), this has been delivered through the Langdale cloud-based training platform. To date, each course has included a debrief with the Head of HR at Langdale to further understand how our own polices on these topics are being managed and applied, and how the ongoing messaging is being communicated through the business on these very important governance subjects.

 

The Renumeration Committee has reviewed senior management pay levels, to make sure they remain competitive, reflective of our own business performance and relative to our position in the marketplace.

 

A continued major area of focus has been in health and safety, with a great deal of emphasis in two particular areas, fire management systems and food safety including allergens management. Heads of Departments remain a key focus, as like all operating businesses we need them and their respective teams to ensure that health & safety delivery is alive in their day-to-day operational activities. We have further reinforced compliance across the business with the introduction of a Health and Safety Compliance Manager role. In addition, the business is supported through Shield Safety, our third-party partner and our appointed advisor on health and safety.

 

The Treasury Committee has developed and evolved through the year, working with the operating team to develop a greater understanding of the cash requirements of the business. Integral to this is optimising the delivery of the operating business to feed cash flows, and the careful management and timing of ongoing plans to maintain the core central facilities. The more significant demands on cash through this period have been the replacement of the spa & leisure roof and the installation of the solar PV array, this project alone amounted to £935k of capital spend. In addition, the opportunity created by the closure of the facilities allowed for the replacement of the sauna, steam room, spa bath and all gym equipment.

 

Given the significant investment in the Leisure Club roof project and the impact on profits during the work, the development of new staff accommodation has been put on hold. The sourcing of rental accommodation in the local area is affording time to review this project and the need for further major capital investment.

 

The Energy Subgroup has worked in support of the push towards increased on-site energy generation through renewable technology. Since April 2023 117 solar PV panels have been commissioned on the maintenance and Gateway buildings and with a further 190 due to come online from the new Leisure Club roof, this will give a total generation capacity of 133kW on site.

LANGDALE OWNERS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The Team

 

The challenges of obtaining and keeping high quality team members have been well documented. This above all is fundamental to the success of the business in delivering great levels of service and the profits that flow from it.

 

Under the leadership of Tia Marcos, the Human Resources department has continued to grow and develop and is making a strong contribution to the management and implementation of policies. Focus has been firmly on the onboarding of new employees, recruitment and retention tools and various management policies through the introduction of a new staff handbook, allowing the management team to manage more effectively. Key areas of focus remain on training and development and performance management.

 

Part of the operational team succession planning has included the recruiting of some key positions, to build up capability and the operational bench strength of the team, this has included the appointment of a Timeshare Operations Manager to oversee and manage the requirements of lodge management focusing on service delivery, particularly maintenance and lodge cleaning. In addition to the recruitment of a Facilities Operations Manager, to support the delivery of planned and preventative maintenance across the estate.

 

Our people have always been at the heart of the Langdale experience and last December we celebrated over 742 years of loyal service for Langdale Leisure employees, at an awards ceremony for 72 members of the team. We were incredibly proud to celebrate this achievement, in particular for four people serving twenty years, six for twenty-five years and four thirty years. The highlight was a remarkable forty years of service for Andy Dawson, Estate Grounds Manager, who has been tending the grounds on the Estate magnificently since he was a lad. Congratulations again and our thanks to Andy and everyone else for their dedication and commitment to our Company.

 

Succession

 

Board succession has continued with new board members over recent years. The handover from longer serving to new board members has been carefully managed, allowing new members to develop their understanding of Langdale, whilst still having longer serving hands around to assist with that understanding, particularly with regard to the legacy of Langdale, which is so important to us all. We welcome fellow Owner Richard Smith, who joined the Board at the last AGM replacing Founder Director Dale Watler.

 

We have taken the approach that some skill sets should be mirrored at board level with that of the executive team, certainly Finance, Hotel Operations and Property Management to date. The next phase of recruitment will look to introduce a Commercial skillset to the board table. It would be fair to say that for many years Langdale has operated in the relative comfort of a commercial vacuum insulated from market pressures by its unique position, its offering, its self-contained market, and its relatively weak competition. The competitive landscape has changed, there are more competitors in the upscale market, more spa experience venues. A Non-Executive Director with the right balance of commercial experience underpinned by sector specific knowledge, would support and stimulate the right level of challenge for our great commercial team in the ongoing shared goal of profitable business delivery.

 

We will be looking beyond our stakeholders to fill the available next position; an independent director would strengthen Board governance. However, if any shareholders have an interest in joining the board for any future vacancy, please contact the Company Secretary.

 

The next Non-executive Director to step aside creating a vacancy will be myself. I made a commitment, when appointed back in 2019, to serve five years as Chair, which I will honour by retiring after the upcoming AGM. I will be handing over to Robert Crook, who I know will continue to drive the company forward for the benefit of Shareholders and all Owners, while being true to the values set out at the inception of our Company. I wish Robert and the rest of the Board well in their stewardship of the company and thank them sincerely for their valuable contribution and support during my tenure.

LANGDALE OWNERS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -

Succession (continued)

 

I would also like to offer my deepest thanks to Michael Coletta, Managing Director, and his team for all of their efforts and hard work during my time at the helm of LOP.

 

It has been an honour and a privilege to be an integral part of the Langdale story, for nine years as Managing Director and for the last seven years as a Non-Executive Director. I look forward to continuing my association as an Owner and Shareholder.

 

The Annual General Meeting will once again be in the form of a hybrid meeting with the opportunity to attend either online or in person and is scheduled to take place on the evening of 31st October 2024. Given that the significant majority of shareholders attending are now doing so on-line, the meeting has been brought forward to October.

 

Finally, I would like to thank you, our shareholders, and all owners for your continued support. The last five years have been the most challenging of times for all businesses, nevertheless Langdale has come through in good shape and with a strong foundation still in place for future success. The business environment is undoubtedly more challenging than ever before, but with a strong Board and committed team I am sure the Company will continue to flourish, and the Estate remain the incredibly special place we all know and love.

Mr J Longmuir
Chair
6 September 2024
LANGDALE OWNERS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
Directors' strategic report

The directors present the strategic report for the year ended 30 April 2024.

Financial Summary

 

Turnover £10,883,104 - an increase of £674,445 on previous year

Profit Before Interest & Tax £60,444 - a decrease of £146,177 on the previous year.

 

Loss Before Tax £53,582- a decrease of £113,729 on the previous year.

 

Loss After Tax £59,560 - a decrease of £88,410

Total shareholder funds (Net Assets) decreased by 1.4% to £4,081,607.

The cash funds position remains strong, with a balance of £2,747,181, but will come under pressure due to the leisure club roof project.

The increase in creditors falling due within one year is largely as a result of the leisure club roof project.

Loan debt repayments continued as planned, with a creditable loan reduction in the year of £484,499.

The balance sheet is in a strong position, the continued aim is to get net liabilities into a positive position.

Managing Directors Trading Review

 

2023/24 proved to be a challenging year. It started strongly in accommodation sales, but this closed flat against the prior year. Conversely the investment in and increased focus upon Stove saw food and beverage revenues grow by 10.9% while the Spa continued to improve with 14.5% year on year growth. The end result was an overall 6.6% growth in revenue, which at a time when inflation was falling from double digits down to 4%, cannot be viewed with great enthusiasm.

On reviewing the year, the importance of accommodation sales to the company is clearly visible and it is disappointing to note that at the time of the 2023 AGM, accommodation sales growth was 11% but the impact of the leisure club roof project in particular, which started in late February 2024, resulting in the closure of the swimming pool for the remainder of the financial year, combined with a general downturn in demand in the sector due to the cost of living pressures, wiped all accommodation growth from the financial results. This has highlighted the inflexibility in the company’s cost base and the low margins within which the business operates, meaning that there was no opportunity for recovery in such a short timeline for the company.

The number of hotel rooms sold in 2023/24 was up by 419 in Langdale, but down by 411 in Brimstone, therefore while accommodation revenues were flat, the number of guests on site was similar to the previous year, which benefitted the food and beverage outlets and the Brimstone Spa, where good progress is being made in the development and delivery of the product offerings.

LANGDALE OWNERS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -

Managing Directors Trading Review (continued)

 

In the report last year, the investment in the team at Stove was mentioned and the new menu that had been introduced was well received, with the number of covers in the year increasing by 11.4% (4,561). The impact of this has been a year-on-year increase in revenue of 14.3%. The timeshare ownership has enjoyed the new approach with a 21.4% increase in the value of lodge owner discounts being processed in the year. A new Executive Chef, Duncan McKay, has joined the team and will be building upon the success achieved to date.

 

Wainwrights continues with its upward trajectory posting another record sales year, with growth of 7.2% over the previous year. This could have been higher had there not been some long-term illness within the kitchen brigade which restricted the amount of covers that could be served over the 2023 summer period.

The Brimstone Spa team has stabilised, and this has helped to grow the reputation of Langdale as a Spa destination. Despite the impact of the leisure club roof work and this department posted a record turnover and growth of 18.8%.

 

There were 115 owners’ weeks sold, which was 5 less than the previous year, but the proceeds generated increased to £639,385 from £570,320 (+12.1%), with the average achieved sale price of £5,560 v £4,753 (+16.9%).

The number of weeks available for rent was slightly up on the prior year by 12 to 1,063, but the number of weeks rented out was down by 59, with the average rental price increasing slightly to £1,417 from £1,401. While not confirmed, it is felt that the pool closure will have affected rental bookings.

Langdale in recent years has had a policy of offering base salaries ahead of the National Living Wage as its lowest pay band and as a consequence has moved the percentage of colleagues who fell between the government mandated level and £2 above that from 80% of the workforce to 46%. However, the inflation busting increases of recent years in the National Living Wage have made this a difficult policy to maintain while seeking to secure the financial stability of the company. In April 2023, the increase in National Living Wage was 9.7% which had a significant impact on payroll costs, as has the desire to maintain differentials in pay levels. In addition to this, the increased efficiency of the recruitment team to fill vacancies and the unfortunate shortage of skills in the chef sector generally, which has resulted in increased agency staff, has meant that the payroll costs increased by 11.8% over the previous year.

There has been concern regarding energy costs for the company and the opportunity has been taken in the last 12 months to install solar panels on roofs where significant repairs have been necessary, such as the Gateway building and the Leisure Club and these will bring benefits to the company in future years, but the growth in utility costs was not as high as expected in 2023/24, growing by just 4.9% and good control over other cost lines meant that the overall growth in operational expenditure was restricted to 4.2%

As stated earlier, the impact of the lost revenue in the final quarter of the year meant that it was very difficult to recover the financial performance for the year and with costs increasing at rates higher than our revenue growth, particularly in payroll, the result has seen a £146,177 (70.7%) decline in the reported operating profit, which after interest resulted in a pre-tax loss of £53,582 against the pre-tax profit of the previous year of £60,147.

 

As alluded to in the Chairs report, good progress is being made in the development of our team with our HR department supporting every colleague to be the best that they can be, and this has also assisted in creating a more transparent succession plan within the business. This has prompted an organisational restructuring and a review of the Langdale Culture to ensure that the purpose, vision, and values of the company are being realised in every corner of the operation.

 

Change in culture takes time and can be challenging in itself, but the early indications are that the team understand what needs to be done and are rising to meet the challenges with which they are presented. This should come as no surprise because the team care deeply about Langdale and the business. In many cases it’s more than just a job, it’s a way of life and this is reflected in their attitude towards the difficult final quarter of the financial year.

LANGDALE OWNERS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
Managing Directors Trading Review (continued)

 

There was huge disappointment at the downturn in trade and concern that Owners and guests were not able to enjoy their time in Langdale to the levels they have in the past. I would like to acknowledge and praise the team for the approach that they always adopt and the enthusiasm to do the best that they possibly can, every time.

 

The new year is proving to be difficult and the weight of this is showing in some areas, but there is a sense of togetherness around the business and a determination to overcome the economic conditions that is being experienced by everyone and bring Langdale through yet more stormy waters.

 

It has been a tough 4 years for all businesses and it is easy to forget the impact that this has had on everyone at Langdale, but I am proud of every member of the team who keep on driving to achieve the very best that they can and I would like to record my thanks to them all for their hard work. Without them Langdale is just another place in the Lakes, with them it is an incredibly special place to visit, work and which many call home.

Mr J Longmuir
Director
9 September 2024
LANGDALE OWNERS PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The company and its subsidiary, the Group, are primarily engaged in the operation and management of the Langdale Estate consisting of hotels, timeshare development and public house.

Results and dividends

The results for the year are set out on page 14.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr J Longmuir
Mr D E Watler
(Resigned 18 November 2023)
Mr W I R Hamilton
Mr M Coletta
Mr R Crook
Mrs S Tetlow
Mr A James
Mr R Smith
(Appointed 19 November 2023)
Future developments

The Board and Langdale Management are concentrating their efforts on improving the service delivery and the financial performance of The Langdale Estate, whist also developing its Corporate Social Responsibility in relation to people, the environment, and the local community.

 

The Board is not actively seeking other business opportunities outside the Langdale area.

Auditor

The auditor, MHA, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. true

Statement of disclosure to auditor

So far as the directors are aware, there is no relevant audit information of which the company's auditor is unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

LANGDALE OWNERS PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
On behalf of the board
Mr J Longmuir
Director
6 September 2024
LANGDALE OWNERS PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -

The directors are responsible 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 company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

LANGDALE OWNERS PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LANGDALE OWNERS PLC
- 11 -
Opinion

We have audited the financial statements of Langdale Owners PLC (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.

LANGDALE OWNERS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANGDALE OWNERS PLC
- 12 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

Matters on which we are required to report by exception

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

LANGDALE OWNERS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANGDALE OWNERS PLC
- 13 -

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 is available on the Financial Reporting Council’s website at: https://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.

Jenny McCabe FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Lancaster, United Kingdom
9 September 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
LANGDALE OWNERS PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
Notes
£
£
Turnover
3
10,883,104
10,208,659
Cost of sales
(7,574,374)
(6,850,118)
Gross profit
3,308,730
3,358,541
Administrative expenses
(3,494,806)
(3,339,763)
Other operating income
3
246,520
187,843
Operating profit
4
60,444
206,621
Interest receivable and similar income
7
70,883
34,377
Interest payable and similar expenses
8
(184,909)
(180,851)
(Loss)/profit before taxation
(53,582)
60,147
Tax on (loss)/profit
9
(5,978)
(31,297)
(Loss)/profit for the financial year
(59,560)
28,850
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

LANGDALE OWNERS PLC
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
9,756,308
10,007,532
Current assets
Stocks
13
58,009
37,969
Debtors
14
1,173,315
991,275
Cash at bank and in hand
2,747,181
2,957,906
3,978,505
3,987,150
Creditors: amounts falling due within one year
15
(5,340,217)
(5,048,395)
Net current liabilities
(1,361,712)
(1,061,245)
Total assets less current liabilities
8,394,596
8,946,287
Creditors: amounts falling due after more than one year
16
(3,421,833)
(3,903,677)
Provisions for liabilities
Deferred tax liability
18
891,156
901,443
(891,156)
(901,443)
Net assets
4,081,607
4,141,167
Capital and reserves
Called up share capital
20
1,158,500
1,159,000
Share premium account
743,939
743,939
Capital redemption reserve
252,500
252,500
Profit and loss reserves
1,926,668
1,985,728
Total equity
4,081,607
4,141,167

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 6 September 2024 and are signed on its behalf by:
06 September 2024
Mr J Longmuir
Director
Company registration number 03142636 (England and Wales)
LANGDALE OWNERS PLC
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 16 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
11
3,822,114
3,822,114
Current assets
Debtors
14
254
9,199
Cash at bank and in hand
66,302
44,953
66,556
54,152
Creditors: amounts falling due within one year
15
(18,981)
(13,519)
Net current assets
47,575
40,633
Net assets
3,869,689
3,862,747
Capital and reserves
Called up share capital
20
1,158,500
1,159,000
Share premium account
743,939
743,939
Capital redemption reserve
252,500
252,500
Profit and loss reserves
1,714,750
1,707,308
Total equity
3,869,689
3,862,747

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £6,941 (2023 - £11,253 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 6 September 2024 and are signed on its behalf by:
06 September 2024
Mr J Longmuir
Director
Company registration number 03142636 (England and Wales)
LANGDALE OWNERS PLC
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 May 2022
1,159,000
743,939
252,500
1,956,878
4,112,317
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
28,850
28,850
Balance at 30 April 2023
1,159,000
743,939
252,500
1,985,728
4,141,167
Year ended 30 April 2024:
Loss and total comprehensive income
-
-
-
(59,560)
(59,560)
Reduction of shares
20
(500)
-
-
500
-
0
Balance at 30 April 2024
1,158,500
743,939
252,500
1,926,668
4,081,607
LANGDALE OWNERS PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 May 2022
1,159,000
743,939
252,500
1,696,056
3,851,495
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
-
11,252
11,252
Balance at 30 April 2023
1,159,000
743,939
252,500
1,707,308
3,862,747
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
-
6,942
6,942
Reduction of shares
20
(500)
-
-
500
-
0
Balance at 30 April 2024
1,158,500
743,939
252,500
1,714,750
3,869,689
LANGDALE OWNERS PLC
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
888,390
1,359,962
Interest paid
(184,909)
(180,851)
Income taxes paid
(3,739)
(42,075)
Net cash inflow from operating activities
699,742
1,137,036
Investing activities
Purchase of tangible fixed assets
(496,851)
(469,172)
Interest received
70,883
34,377
Net cash used in investing activities
(425,968)
(434,795)
Financing activities
Net (repayment)/drawdown of bank loans
(484,499)
(449,014)
Net cash used in financing activities
(484,499)
(449,014)
Net (decrease)/increase in cash and cash equivalents
(210,725)
253,227
Cash and cash equivalents at beginning of year
2,957,906
2,704,679
Cash and cash equivalents at end of year
2,747,181
2,957,906
LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
1
Accounting policies
Company information

Langdale Owners PLC (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is The Langdale Estate, Great Langdale, Ambleside, LA22 9JD.

 

The group consists of Langdale Owners PLC and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company, as an individual entity, is a qualifying entity for the purposes of FRS 102, being the parent of a group that prepares publicly available consolidated financial statements which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company, as an individual entity, has taken advantage of exemptions from the following disclosure requirements for parent company information presented within these consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated financial statements incorporate those of Langdale Owners PLC and its subsidiary (an entity that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -

Langdale Leisure Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of Langdale Leisure Limited for the year.

1.4
Going concern

The directors consider the group to have a sufficient level of working capital to see it through the upcoming months and therefore remains wholly solvent at this time.

1.5
Turnover

Timeshare resales income relates to the commission receivable on any timeshares sold on behalf of the owners during the year. This is recognised when the invoice is raised.

 

Timeshare commission sales are the commissions receivable on sub-lets managed on behalf of the timeshare holders during the period. These are recognised when the invoice is raised.

 

Timeshare management fees are the annual fees paid by the timeshare owners for the costs incurred by the company for the upkeep of the timeshare units. These are recognised in the profit and loss account when the service is provided to the unit owner. Any amounts invoiced in advance of the customers stay are held in deferred income.

 

Income from all other sources is recognised when the service is provided to the customer.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
2-10% per annum
Plant and machinery
5-50% per annum
Fixtures, fittings & equipment
5-33% per annum
Motor vehicles
20% per annum

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 22 -
1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

1.9
Stocks

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 the statement of comprehensive income.

 

If there is a 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 the statement of comprehensive income.

LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 23 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 24 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement in respect of employees whom served during the year is fully accrued in the period.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable. The assets of the scheme are held separately from those of the group.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation

In determining the appropriate depreciation rates for the group’s assets, management reviews the operating policies of the business and makes judgements as to the applicable useful economic lives of the assets, considering residual values.

Classification of finance and operating leases

At the inception of each lease, management undertake an assessment of the terms of the lease including payments to be made over the life of the lease, the fair value of the asset subject to the lease, the length of the lease and whether the terms of the lease transfer substantially all of the risks and rewards of ownership.

 

Based on this assessment, management will determine whether the lease should be classified as a finance or operating lease.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The residual value and estimated useful life of freehold property

At the acquisition date of the property, management made an assessment of the useful life of the property. They have used their knowledge of the business, geographical area and the property itself in reaching a decision of a useful life of 50 years.

 

Management have also assessed the estimated residual value of the property at the end of its 50 year useful life. Using the factors noted above they have reached an appropriate residual value which has been applied in the depreciation calculation.

LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Hotel Accommodation
3,692,497
3,691,066
Food and Beverages
3,313,047
2,988,133
Timeshare Management Fees
2,148,305
1,951,653
Spa and Leisure
977,613
853,608
Services
383,608
359,858
Rental Commissions
242,106
250,278
Resale Commissions
125,928
114,063
10,883,104
10,208,659
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,883,104
10,208,659
2024
2023
£
£
Other revenue
Interest income
70,883
34,377
Grants received
220,000
155,833

Grants received during the year, represent local council support grants.

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(220,000)
(155,833)
Fees payable to the group's auditor for the audit of the group's financial statements
3,900
3,700
Depreciation of owned tangible fixed assets
748,075
768,728
LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Part time
40
40
8
7
Full time
161
151
-
-
Total
201
191
8
7

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
4,562,138
4,077,636
79,434
93,363
Social security costs
385,309
352,397
3,510
4,664
Pension costs
137,900
152,761
-
0
-
0
5,085,347
4,582,794
82,944
98,027
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
78,499
78,499
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
70,883
34,377
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
184,909
180,851
LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
16,265
3,739
Deferred tax
Origination and reversal of timing differences
(9,478)
27,558
Adjustment in respect of prior periods
(809)
-
0
Total deferred tax
(10,287)
27,558
Total tax charge
5,978
31,297

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(53,582)
60,147
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
(10,181)
11,428
Tax effect of expenses that are not deductible in determining taxable profit
876
891
Tax effect of income not taxable in determining taxable profit
-
0
(10,186)
Effect of change in corporation tax rate
(3,794)
6,288
Permanent capital allowances in excess of depreciation
(1,912)
-
Depreciation on assets not qualifying for tax allowances
22,801
22,876
Deferred tax adjustments in respect of prior years
(810)
-
0
Tax at marginal rate
(1,002)
-
0
Taxation charge
5,978
31,297
LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
10
Tangible fixed assets
Group
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
8,876,837
6,724,821
4,187,050
137,247
19,925,955
Additions
223,012
201,116
72,723
-
0
496,851
At 30 April 2024
9,099,849
6,925,937
4,259,773
137,247
20,422,806
Depreciation and impairment
At 1 May 2023
2,295,649
3,953,225
3,555,143
114,406
9,918,423
Depreciation charged in the year
137,701
390,723
201,807
17,844
748,075
At 30 April 2024
2,433,350
4,343,948
3,756,950
132,250
10,666,498
Carrying amount
At 30 April 2024
6,666,499
2,581,989
502,823
4,997
9,756,308
At 30 April 2023
6,581,188
2,771,596
631,907
22,841
10,007,532
The company had no tangible fixed assets at 30 April 2024 or 30 April 2023.

Freehold land and buildings with a carrying amount of £6,666,499 (2023 - £6,581,188) have been pledged to secure borrowings of the company.

11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
3,822,114
3,822,114
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
3,822,114
Carrying amount
At 30 April 2024
3,822,114
At 30 April 2023
3,822,114
LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
12
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Langdale Leisure Limited
England and Wales
Ordinary
100.00
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
58,009
37,969
-
-
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
604,296
496,262
-
0
-
0
Amounts owed by group undertakings
-
-
149
9,199
Other debtors
196,163
214,733
105
-
0
Prepayments and accrued income
372,856
280,280
-
0
-
0
1,173,315
991,275
254
9,199
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
17
494,888
497,543
-
0
-
0
Trade creditors
719,370
590,600
-
0
-
0
Corporation tax payable
16,265
3,739
2,710
3,739
Other taxation and social security
391,346
420,726
1,487
4,178
Other creditors
451,710
200,858
5,360
-
0
Accruals and deferred income
3,266,638
3,334,929
9,424
5,602
5,340,217
5,048,395
18,981
13,519
LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
3,421,833
3,903,677
-
0
-
0
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,916,721
4,401,220
-
0
-
0
Payable within one year
494,888
497,543
-
0
-
0
Payable after one year
3,421,833
3,903,677
-
0
-
0

The bank borrowings are secured by a debenture and cross guarantee between Langdale Leisure Limited and Langdale Owners PLC. Two loans with Barclays Bank are repayable by quarterly instalments until they are due to be refinanced in March 2026 and September 2027. The interest rate is calculated at 2.96% and 5.68% respectively.The third loan with Barclays Bank is repayable in monthly instalments and is due to end in 2 years. Interest is being charged on this loan at a variable rate.

18
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
891,156
947,643
Tax losses
-
(43,498)
Short term timing differences
-
(2,702)
891,156
901,443
The company has no deferred tax assets or liabilities.
LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
18
Deferred taxation
(Continued)
- 32 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
901,443
-
Credit to profit or loss
(10,287)
-
Liability at 30 April 2024
891,156
-

As at the signing date of these financial statements, the group has not finalised its capital expenditure programme for the forthcoming year and therefore an assessment as to the likely movement of other relating timing differences cannot be made.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
137,900
152,761

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

20
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £500 each
2,217
2,218
1,108,500
1,109,000
Founder shares of £1 each
50,000
50,000
50,000
50,000
52,217
52,218
1,158,500
1,159,000

Ordinary Shares of £500 each

 

The holders of ordinary shares are entitled to attend and vote at general meetings and subject to the rights of preference share holders are entitled to dividends and to payment of a surplus on the return of capital on a winding up or otherwise.

 

Founder shares of £1 each

 

The holders of founder shares are not entitled to attend or vote at general meetings of the company. Other than in exceptional circumstances as noted in the articles of association, the holders of founder shares are not entitled to any dividend or distribution of assets on return of capital on a winding up or otherwise.

LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
21
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
519,724
-
-
-
22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
228,019
219,839
Other information

Company

The company has taken advantage of the exemption permitted under Section 33 'Related Party Disclosures' paragraph 33.1A from disclosing ttransactions with its subsidiary company.

23
Cash generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(59,560)
28,850
Adjustments for:
Taxation charged
5,978
31,297
Finance costs
184,909
180,851
Investment income
(70,883)
(34,377)
Depreciation and impairment of tangible fixed assets
748,075
768,728
Movements in working capital:
Increase in stocks
(20,040)
(16,223)
(Increase)/decrease in debtors
(182,040)
672,380
Increase/(decrease) in creditors
281,951
(271,544)
Cash generated from operations
888,390
1,359,962
LANGDALE OWNERS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 34 -
24
Analysis of changes in net debt - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
2,957,906
(210,725)
2,747,181
Borrowings excluding overdrafts
(4,401,220)
484,499
(3,916,721)
(1,443,314)
273,774
(1,169,540)
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