REGISTERED NUMBER: |
Audited Financial Statements |
for the Year Ended 31 March 2024 |
for |
Madecorn Leisure LLP |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
50 Osmaston Road |
Derby |
DE1 2HU |
BANKERS: |
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 |
Investment property | 6 |
CURRENT ASSETS |
Stocks |
Debtors | 7 |
Investments | 8 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 9 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
10 |
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 |
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 |
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 |
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 |
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 |
Freehold land and buildings | - |
Assets under construction | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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 |
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 |
Additions |
Disposals | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
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 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
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 |
Prepayments |
8. | CURRENT ASSET INVESTMENTS |
2024 | 2023 |
£ | £ |
Sterling Money Market |
Investment |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
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 |
11. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
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. |
for and on behalf of |
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. |