Company registration number 04427238 (England and Wales)
LEISURESPACE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
LEISURESPACE LIMITED
COMPANY INFORMATION
Directors
Mr S Freeman
Mrs G Freeman
Mr C Freeman
Mrs A Freeman
Secretary
Mr S Freeman
Company number
04427238
Registered office
Unit 1 Hall Dene Way
Seaham Grange Industrial Estate
Seaham
Co Durham
SR7 0PU
Auditor
Azets Audit Services
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
LEISURESPACE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
LEISURESPACE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

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

Review of the business

The business has produced for the period a profit before taxation of £2,809,231. The directors are pleased with the performance of the business during the year given the economic environment.

 

Turnover has remained consistent with the previous year, with a marginal decrease in profitability levels. This is partly due to the business investing more heavily in new site development and refurbishment/ improvements to existing sites over the period, but is also because some operating costs have increased (i.e. rising energy costs & wages).

Principal risks and uncertainties

Customer Spending – The increase in cost-of-living expenses may result in less discretionary cash spending for families across the regions where the business operates. The company continues to try to provide the best possible value to its customers, alongside offering promotions and discounts where necessary.

 

Competition – Competitors continue to emerge across the UK, with some potentially opening sites in the areas the business operates. The directors continue to monitor these, and where necessary make changes to the business to ensure the organisation remains competitive. They also continue to expand and improve the leisure facilities being offered across existing sites to make them the preferred leisure destination for customers.

 

Regulatory Compliance: The business faces various trading and operational risks, such as those related to employment, health and safety, and public liability. The group's business effectively manages these risks by consistently adhering to industry best practices and maintaining sufficient insurance coverage when required.

 

Energy Costs – The business has faced significant increases in its energy costs across its sites. The directors have implemented measures to reduce energy consumption, alongside organising long term agreements to prevent further unexpected price rises.

Key performance indicators

The business uses a range of financial indicators to monitor performance. The key performance indicators (KPIs) used by the company are:

 

KPI

Current Year

Prior Year

Movement

Turnover

£9,377,176

£9,189,349

£187,827

Operating profit

£2,737,516

£3,249,882

£(512,366)

EBITDA

£3,246,010

£3,728,774

£(482,764)

Net assets

£7,744,386

£6,576,290

£1,186,096

 

On behalf of the board

Mr S Freeman
Director
7 November 2024
LEISURESPACE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

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

 

Change of company name

The company changed its name from Card Trix (Greetings) Limited to Leisurespace Limited effective from 15 May 2023.

Principal activities

The principal activity of the company continued to be that of indoor play activities.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £915,200. The directors do not recommend payment of a final 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 S Freeman
Mrs G Freeman
Mr C Freeman
Mrs A Freeman
Financial instruments
Cashflow and liquidity risk

Cash flow and liquidity risk is the risk that a company's available cash will not be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. Due to the seasonality of Company’s working capital requirements, the company uses a combination of finance leases and hire purchase contracts, cash, intergroup funding and short-term deposits to minimise the Company's exposure to cash flow and liquidity risk.

Price risk

Price risk is the risk that changes in raw material prices have the potential to impact on the profitability of the company.  The pricing and supply of materials and goods have been subject to high inflation over the past twelve months; however, the company’s sales and pricing policies seek to mitigate such risks where possible (this includes effective cost management and utilising long-term supplier agreements).

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

LEISURESPACE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

The company continues to engage with employees across all its sites on an ongoing basis. This is done through a combination of regular site meetings, one-on-one appraisals and ongoing training.

 

The business aims to ensure all staff are given the necessary training and support to excel within their individual roles.

Future developments

The directors continue to look at expanding the business through existing site revenue growth, alongside opening new sites and opportunities across the UK.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually 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.

On behalf of the board
Mr S Freeman
Director
7 November 2024
LEISURESPACE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LEISURESPACE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEISURESPACE LIMITED
- 5 -
Opinion

We have audited the financial statements of Leisurespace Limited (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

Other information

The 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.

Opinions on other matters prescribed by the Companies Act 2006

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

LEISURESPACE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEISURESPACE LIMITED
- 6 -
Matters on which we are required to report by exception

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

 

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

We identified the following applicable laws and regulations as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); and compliance with the UK Companies Act.

LEISURESPACE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEISURESPACE LIMITED
- 7 -

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Simon Brown BA ACA DChA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
7 November 2024
Chartered Accountants
Statutory Auditor
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
LEISURESPACE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
9,377,176
9,189,349
Cost of sales
(1,018,979)
(934,698)
Gross profit
8,358,197
8,254,651
Administrative expenses
(5,620,832)
(5,035,084)
Other operating income
151
30,315
Operating profit
4
2,737,516
3,249,882
Interest receivable and similar income
8
179,902
-
0
Interest payable and similar expenses
9
(108,187)
(99,752)
Profit before taxation
2,809,231
3,150,130
Tax on profit
10
(725,935)
(611,051)
Profit for the financial year
2,083,296
2,539,079

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

LEISURESPACE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
£
£
Profit for the year
2,083,296
2,539,079
Other comprehensive income
-
-
Total comprehensive income for the year
2,083,296
2,539,079
LEISURESPACE LIMITED
BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
5,253,950
4,085,855
Current assets
Stocks
13
101,036
60,257
Debtors
14
216,029
197,407
Cash at bank and in hand
5,797,954
5,665,307
6,115,019
5,922,971
Creditors: amounts falling due within one year
15
(1,644,050)
(1,638,201)
Net current assets
4,470,969
4,284,770
Total assets less current liabilities
9,724,919
8,370,625
Creditors: amounts falling due after more than one year
16
(1,127,698)
(1,236,028)
Provisions for liabilities
Deferred tax liability
19
852,835
558,307
(852,835)
(558,307)
Net assets
7,744,386
6,576,290
Capital and reserves
Called up share capital
21
4
4
Profit and loss reserves
22
7,744,382
6,576,286
Total equity
7,744,386
6,576,290
The financial statements were approved by the board of directors and authorised for issue on 7 November 2024 and are signed on its behalf by:
Mr S Freeman
Director
Company Registration No. 04427238
LEISURESPACE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
4
4,891,207
4,891,211
Period ended 30 April 2023:
Profit and total comprehensive income for the period
-
2,539,079
2,539,079
Dividends
11
-
(854,000)
(854,000)
Balance at 30 April 2023
4
6,576,286
6,576,290
Year ended 30 April 2024:
Profit and total comprehensive income for the year
-
2,083,296
2,083,296
Dividends
11
-
(915,200)
(915,200)
Balance at 30 April 2024
4
7,744,382
7,744,386
LEISURESPACE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
3,126,195
3,505,798
Interest paid
(108,187)
(99,752)
Income taxes paid
(604,746)
(886,486)
Net cash inflow from operating activities
2,413,262
2,519,560
Investing activities
Purchase of tangible fixed assets
(1,076,972)
(591,048)
Proceeds from disposal of tangible fixed assets
738
-
0
Interest received
179,902
-
0
Net cash used in investing activities
(896,332)
(591,048)
Financing activities
Repayment of bank loans
(469,083)
(453,749)
Payment of finance leases obligations
-
0
(19,190)
Dividends paid
(915,200)
(854,000)
Net cash used in financing activities
(1,384,283)
(1,326,939)
Net increase in cash and cash equivalents
132,647
601,573
Cash and cash equivalents at beginning of year
5,665,307
5,063,734
Cash and cash equivalents at end of year
5,797,954
5,665,307
LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
1
Accounting policies
Company information

Leisurespace Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1 Hall Dene Way, Seaham Grange Industrial Estate, Seaham, Co Durham, SR7 0PU.

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.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (at date of event), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

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

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

Leasehold land and buildings
2% straight line
Plant and equipment
15% reducing balance
Fixtures and fittings
15% reducing balance
Computers
20% reducing balance
Motor vehicles
25% reducing balance

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.

LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

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 of 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 for 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversaion and other costs incurred in bringing the stock to its present location and condition.

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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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 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 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.

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. 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.

LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has 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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

 

There are considered to be no significant judgements that management has made in the process of applying the entity's accounting policies which effect the amounts recognised in the financial statements.

 

There are considered to be no estimates and assumptions have been considered to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
9,377,176
9,189,349
2024
2023
£
£
Other revenue
Interest income
179,902
-

All revenue is derived in the UK.

LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
508,494
478,892
Operating lease charges
842,215
964,720
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
16,350
15,000
6
Employees

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

2024
2023
Number
Number
Other departments
299
288

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,187,041
1,995,862
Social security costs
103,978
99,143
Pension costs
255,565
195,289
2,546,584
2,290,294
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
17,940
18,720
Company pension contributions to defined contribution schemes
240,000
180,000
257,940
198,720
LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
179,902
-
0
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
179,902
-
0
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
4,738
-
Other interest on financial liabilities
103,094
95,571
107,832
95,571
Other finance costs:
Interest on finance leases and hire purchase contracts
355
4,181
108,187
99,752
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
439,997
556,340
Adjustments in respect of prior periods
(8,590)
2,572
Total current tax
431,407
558,912
Deferred tax
Origination and reversal of timing differences
294,528
40,654
Changes in tax rates
-
0
11,485
Total deferred tax
294,528
52,139
Total tax charge
725,935
611,051
LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
(Continued)
- 20 -

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

2024
2023
£
£
Profit before taxation
2,809,231
3,150,130
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
702,308
613,960
Tax effect of expenses that are not deductible in determining taxable profit
32,218
479
Tax effect of income not taxable in determining taxable profit
-
0
(24,937)
Adjustments in respect of prior years
(8,591)
2,572
Effect of change in corporation tax rate
-
0
11,485
Depreciation on assets not qualifying for tax allowances
-
0
4,142
-
0
3,350
Taxation charge for the year
725,935
611,051
11
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Interim paid
228,800.00
213,500.00
915,200
854,000
LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2023
1,584,700
110,715
5,596,534
37,782
88,335
7,418,066
Additions
50,755
10,557
1,583,837
10,783
21,395
1,677,327
Disposals
-
0
-
0
(738)
-
0
-
0
(738)
At 30 April 2024
1,635,455
121,272
7,179,633
48,565
109,730
9,094,655
Depreciation and impairment
At 1 May 2023
218,810
82,620
2,971,978
26,262
32,541
3,332,211
Depreciation charged in the year
31,918
5,346
450,639
3,968
16,623
508,494
At 30 April 2024
250,728
87,966
3,422,617
30,230
49,164
3,840,705
Carrying amount
At 30 April 2024
1,384,727
33,306
3,757,016
18,335
60,566
5,253,950
At 30 April 2023
1,365,890
28,095
2,624,556
11,520
55,794
4,085,855
13
Stocks
2024
2023
£
£
Raw materials and consumables
101,036
60,257
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,985
765
Other debtors
-
0
4,063
Prepayments and accrued income
214,044
192,579
216,029
197,407
LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
459,058
455,751
Obligations under finance leases
18
236,295
-
0
Trade creditors
239,867
54,030
Corporation tax
201,938
375,277
Other taxation and social security
182,631
442,265
Other creditors
84,167
242,234
Accruals and deferred income
240,094
68,644
1,644,050
1,638,201
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
763,638
1,236,028
Obligations under finance leases
18
364,060
-
0
1,127,698
1,236,028
Amounts included above which fall due after five years are as follows:
Payable by instalments
37,635
112,708
17
Loans and overdrafts
2024
2023
£
£
Bank loans
1,222,696
1,691,779
Payable within one year
459,058
455,751
Payable after one year
763,638
1,236,028
LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
17
Loans and overdrafts
(Continued)
- 23 -

The CBILS loan is denominated in sterling with a nominal interest rate of 1.49% and the final installment is due in May 2026, the carrying amount at year end is £320,000 (2023 - £493,333).

 

The CBILS loan is denominated in sterling with a nominal interest rate of 2.93% and the final installment is due in July 2026, the carrying amount at year end is £530,911 (2023 - £770,910).

 

The bank loan is denominated in sterling with a nominal interest rate of. 3.18% and the final installment is due in October 2029, the carrying amount at year end is £371,785 (2023 - £427,535).

 

The loans was secured by way of a fixed and floating charge over all present property as well as a fixed charge over book and other debts.

 

 

18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
236,295
-
0
In two to five years
364,060
-
0
600,355
-
0

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
853,619
558,667
Retirement benefit obligations
(784)
-
Short term timing difference
-
(360)
852,835
558,307
LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
19
Deferred taxation
(Continued)
- 24 -
2024
Movements in the year:
£
Liability at 1 May 2023
558,307
Charge to profit or loss
294,528
Liability at 30 April 2024
852,835
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
255,565
195,289

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Included in the statement of financial position are unpaid pension contributions of £2,586 (2023 - £2,820).

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4
4
4
4

Each share has full rights in the company with respect to voting, dividends and distributions.

22
Reserves
Equity reserve

Profit and loss account include all current and prior period retained profits and losses.

23
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
191,282
-
0
Between two and five years
813,174
-
0
In over five years
1,205,925
-
0
2,210,381
-
0
LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
352,348
-
25
Directors' transactions

Dividends totalling £915,200 (2023 - £854,000) were paid in the year in respect of shares held by the company's directors.

Description
% Rate
Opening balance
Closing balance
£
£
Loan account
-
(35)
(35)
Loan account
-
(35)
(35)
Loan account
-
(26,382)
(26,382)
Loan account
-
(26,382)
(26,382)
(52,834)
(52,834)
26
Ultimate controlling party

The ultimate controlling party is considered to be the board of directors as a whole.

27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,083,296
2,539,079
Adjustments for:
Taxation charged
725,935
611,051
Finance costs
108,187
99,752
Investment income
(179,902)
-
0
Depreciation and impairment of tangible fixed assets
508,494
478,892
Movements in working capital:
Increase in stocks
(40,779)
(19,067)
Increase in debtors
(18,622)
(112,972)
Decrease in creditors
(60,414)
(90,937)
Cash generated from operations
3,126,195
3,505,798
LEISURESPACE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
28
Analysis of changes in net funds
1 May 2023
Cash flows
New finance leases
30 April 2024
£
£
£
£
Cash at bank and in hand
5,665,307
132,647
-
5,797,954
Borrowings excluding overdrafts
(1,691,779)
469,083
-
(1,222,696)
Obligations under finance leases
-
-
(600,355)
(600,355)
3,973,528
601,730
(600,355)
3,974,903
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