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REGISTERED NUMBER: OC315344 (England and Wales)







Audited Financial Statements

for the Year Ended 31 March 2024

for

Madecorn Leisure LLP

Madecorn Leisure LLP (Registered number: OC315344)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

General Information 1

Balance Sheet 2

Notes to the Financial Statements 4


Madecorn Leisure LLP

General Information
for the Year Ended 31 March 2024







DESIGNATED MEMBERS: Madecorn (Guernsey) Limited
SFT Enterprises Limited
Destination Leisure Ltd



REGISTERED OFFICE: Mercia Marina
Findern Lane
Willington
Derbyshire
DE65 6DW



REGISTERED NUMBER: OC315344 (England and Wales)



AUDITORS: Mabe Allen LLP
Chartered Accountants
Statutory Auditors
50 Osmaston Road
Derby
DE1 2HU



BANKERS: National Westminster Bank Plc.
159 High Street
Burton-on-Trent
Staffordshire
DE14 1JG

Madecorn Leisure LLP (Registered number: OC315344)

Balance Sheet
31 March 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 5 16,871,309 17,028,872
Investment property 6 6,000,000 6,000,000
22,871,309 23,028,872

CURRENT ASSETS
Stocks 15,903 15,214
Debtors 7 346,816 355,715
Investments 8 821,781 -
Cash at bank and in hand 136,593 517,154
1,321,093 888,083
CREDITORS
Amounts falling due within one year 9 1,193,577 1,117,353
NET CURRENT ASSETS/(LIABILITIES) 127,516 (229,270 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

22,998,825

22,799,602

CREDITORS
Amounts falling due after more than one
year

10

8,600,000

8,650,000
NET ASSETS ATTRIBUTABLE TO
MEMBERS

14,398,825

14,149,602

LOANS AND OTHER DEBTS DUE TO
MEMBERS

12

2,580,318

2,342,083

MEMBERS' OTHER INTERESTS
Capital accounts 1,000 1,000
Other reserves 11,817,507 11,806,519
14,398,825 14,149,602

TOTAL MEMBERS' INTERESTS
Loans and other debts due to members 12 2,580,318 2,342,083
Members' other interests 11,818,507 11,807,519
14,398,825 14,149,602

Madecorn Leisure LLP (Registered number: OC315344)

Balance Sheet - continued
31 March 2024


The financial statements have been prepared and delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime.

In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved on behalf of the members of the LLP and authorised for issue on 14 October 2024 and were signed by:





Destination Leisure Ltd - Designated member

Madecorn Leisure LLP (Registered number: OC315344)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. STATUTORY INFORMATION

Madecorn Leisure LLP is registered in England and Wales. The LLP's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships.

3. ACCOUNTING POLICIES

Accounting convention
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going Concern
The partnership made a profit for the year of £1,088,235 (2023: £1,175,912) and notwithstanding the net current assets at 31 March 2024 of £127,516 (2023: liabilities of £229,270) the members have prepared the financial statements on the going concern basis which assumes that the partnership will continue to trade for the foreseeable future. The validity of the assumption is based on the members' assessment of future cash forecasts and revenue projections and for the reasons set out below.

Cost of living and economic uncertainty in the UK
As at the date of approving these financial statements, the impact of cost-of-living crisis on the partnership's trading is continually being assessed and subject to review. The current economic climate in the UK has placed strain on the finances of the general public which going forward could potentially limit their ability to spend on leisure activities. Our 'base case' assumption is that the marina remains open into the future. In assessing the partnership's funding requirements, the members have prepared detailed forecasts/projections to 31 March 2028. The forecasts and projections take into account the funding requirements of the partnership given that mooring fee income is expected to remain robust, whilst the income from investment property which consists of a mix of commercial, retail and leisure may be more volatile and uncertain.

The members have also undertaken an exercise to sensitise the funding requirements, taking account of all reasonably foreseeable circumstances, which indicates that the partnership continues to have access to sufficient funds in the short to medium term to enable it to settle its debts as and when they fall due and to ensure the continuance of the trading operations.

Having assessed the current trading performance and future prospects, the members have concluded that the partnership has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. The financial statements, therefore, do not include any adjustments that would arise if the going concern basis of preparation were inappropriate.

Madecorn Leisure LLP (Registered number: OC315344)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

3. ACCOUNTING POLICIES - continued

Significant judgements and estimates
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates under different assumptions and conditions.The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are in relation to specific areas included below:

Revaluation of land and buildings and investment properties
The partnership carries its land and buildings and investment properties at fair value, with changes in fair value being recognised respectively in comprehensive income and profit or loss. The professional valuer initially used a valuation technique which took account of the estimate of fair maintainable turnover and the marketability of the property. The members have continued with this approach to valuation in the current period. The determined fair value of the investment property is most sensitive to the estimated yield as well as the long term vacancy rate.

Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

Turnover from the sale of goods including lodges is recognised when the risks and rewards of ownership of those goods has been substantially transferred to the customer. Turnover from services provided is recognised to the extent that contractual obligations to customers have been fulfilled.

Amounts received in respect of service contracts where the company provides a service and has obligations to customers over a period of time are credited to the balance sheet and recognised as revenue on a straight line basis over the period to which the contract relates.

Madecorn Leisure LLP (Registered number: OC315344)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold land and buildings - Straight line over 50 years
Assets under construction - not provided
Plant and machinery - at varying rates on cost
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 20% on reducing balance
Computer equipment - 10% on reducing balance

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

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 credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount if the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset from which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Assets in the course of construction
Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use and are reviewed for impairment at each reporting date.

Investments
Current asset investments are measured at fair value with changes in fair value recognised in the profit and loss.

Investment properties are measured at fair value with changes in fair value recognised in the profit and loss.

The investment property fair value of £6,000,000 (2023: £6,000,000) was determined by the members who sought to identify current market value. See note 7.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Madecorn Leisure LLP (Registered number: OC315344)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

3. ACCOUNTING POLICIES - continued

Basic financial instruments
Trade and other debtors/creditors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financial transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.

Leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Impairment
Financial assets, other than those held at fair value through profit and loss, 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 occured 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 flow discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

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 profit or loss.

Financial assets are de-recognised 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.

Provisions
A provision is recognised in the balance sheet when the partnership has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Exceptional items
The LLP classifies certain one-off charges or credits that have a material impact on the LLP's financial results as ‘exceptional items’. These are disclosed separately to provide further understanding of the financial performance of the LLP.

4. EMPLOYEE INFORMATION

The average number of employees during the year was 27 (2023 - 28 ) .

Madecorn Leisure LLP (Registered number: OC315344)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

5. TANGIBLE FIXED ASSETS
Freehold Assets
land and under Plant and
buildings construction machinery
£    £    £   
COST OR VALUATION
At 1 April 2023 16,000,000 - 2,932,745
Additions 5,055 26,916 38,619
Disposals - - (29,402 )
At 31 March 2024 16,005,055 26,916 2,941,962
DEPRECIATION
At 1 April 2023 - - 1,964,505
Charge for year 73,833 - 143,201
Eliminated on disposal - - (25,690 )
At 31 March 2024 73,833 - 2,082,016
NET BOOK VALUE
At 31 March 2024 15,931,222 26,916 859,946
At 31 March 2023 16,000,000 - 968,240

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST OR VALUATION
At 1 April 2023 110,746 26,060 27,074 19,096,625
Additions 5,806 500 - 76,896
Disposals - (2,000 ) - (31,402 )
At 31 March 2024 116,552 24,560 27,074 19,142,119
DEPRECIATION
At 1 April 2023 75,187 13,645 14,416 2,067,753
Charge for year 8,820 2,327 1,286 229,467
Eliminated on disposal - (720 ) - (26,410 )
At 31 March 2024 84,007 15,252 15,702 2,270,810
NET BOOK VALUE
At 31 March 2024 32,545 9,308 11,372 16,871,309
At 31 March 2023 35,559 12,415 12,658 17,028,872

Included in cost or valuation of land and buildings is freehold land of £ 12,100,000 (2023 - £ 12,100,000 ) which is not depreciated.

Madecorn Leisure LLP (Registered number: OC315344)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

5. TANGIBLE FIXED ASSETS - continued

Cost or valuation at 31 March 2024 is represented by:

Freehold Assets
land and under Plant and
buildings construction machinery
£    £    £   
Valuation in 2011 3,967,206 - -
Valuation in 2016 969,819 - -
Valuation in 2017 236,087 - -
Valuation in 2018 1,992,402 - -
Valuation in 2023 2,816,639 - -
Cost 6,022,902 26,916 2,941,962
16,005,055 26,916 2,941,962

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
Valuation in 2011 - - - 3,967,206
Valuation in 2016 - - - 969,819
Valuation in 2017 - - - 236,087
Valuation in 2018 - - - 1,992,402
Valuation in 2023 - - - 2,816,639
Cost 116,552 24,560 27,074 9,159,966
116,552 24,560 27,074 19,142,119

If Marina land and buildings had not been revalued they would have been included at the following historical cost:

2024 2023
£    £   
Cost 6,022,902 6,017,847
Aggregate depreciation 1,135,349 1,014,353

Value of land in freehold land and buildings 678,002 678,002

Marina land and buildings were valued on a fair value basis on 30 October 2023 by Knight Frank LLP .

Madecorn Leisure LLP (Registered number: OC315344)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

6. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 April 2023
and 31 March 2024 6,000,000
NET BOOK VALUE
At 31 March 2024 6,000,000
At 31 March 2023 6,000,000

Fair value at 31 March 2024 is represented by:
£   
Valuation in 2016 (72,902 )
Valuation in 2017 125,000
Valuation in 2023 952,270
Cost 4,995,632
6,000,000

The development was valued on a fair value basis on 30 October 2023 by Knight Frank LLP .

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 273,736 284,966
Prepayments 73,080 70,749
346,816 355,715

8. CURRENT ASSET INVESTMENTS
2024 2023
£    £   
Sterling Money Market
Investment 821,781 -
821,781 -

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts 50,000 -
Trade creditors 130,253 217,735
Social security and other taxes 86,424 98,441
Other creditors 107,634 95,743
Accruals and deferred income 819,266 705,434
1,193,577 1,117,353

Madecorn Leisure LLP (Registered number: OC315344)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans 8,600,000 8,650,000

11. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 8,650,000 8,650,000

The bank loans and overdrafts are secured against assets of the limited liability partnership by way of a debenture.

12. LOANS AND OTHER DEBTS DUE TO MEMBERS

Unsecured debt due to members will rank equally with debts due to other unsecured creditors in a winding up.

Madecorn Leisure LLP (Registered number: OC315344)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

13. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for qualified opinion
As outlined in the notes to the financial statements, the value of land and buildings at £15,931,222 and investment properties at £6,000,000 as reported at the 31 March 2024 is based on the last professional valuers report which was undertaken on the 30 October 2023. The members believe that the fair value of the land, buildings and investment properties has not moved materially upward since this last professional valuers report.

In our opinion the most up to date information available indicates that a material upward adjustment is required to fair value at the reporting date of 31 March 2024. As a result we believe there arises a material misstatement of land and buildings, and investment properties.

As there has been no agreed remeasurement of fair value it is not practical to fully quantify the financial effects of any amendment on the financial statements for the year ended 31 March 2024.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Matters required to report by exception
Except for the matters described in the Basis for qualified opinion section of the audit report, based on the work undertaken in the course of the audit, we have nothing to report in respect of the following matters where the Companies Act 2006 as applied to LLPs requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by use; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit; or
- the members were not entitled to prepare the financial statements in accordance with the small LLPs regime.

Neil Higgins FCCA (Senior Statutory Auditor)
for and on behalf of Mabe Allen LLP

14. CONTINGENT LIABILITIES

Contingent liabilities include an amount of £32,381 for a potential liability relating to a s106
agreement with Derbyshire County Council and South Derbyshire District Council. The agreement being contingent on planning permission being granted for further residential berths at the marina.

Contingent liabilities include an amounts of £120,574 for a potential liability relating to a draft s106 agreement with South Derbyshire District Council. The agreement being contingent on planning permission being granted for a "Promenade" development at the marina.

15. OTHER FINANCIAL COMMITMENTS

At the year end the partnership has financial commitments amounting to £37,482 (2023: £218,613), £37,482 (2023: £56,838) of which relating to operating leases.