The directors present the strategic report for the period ended 24 March 2024.
Structure (continued)
The Pleasure Beach and Hotel operate in a highly competitive tourism and leisure market with the key focus points being the summer period and school holidays. The park is aimed at a wide ranging audience from small children through to adults whilst the hotel has both a family friendly feel as well as appealing to the corporate business market.
Principal activities for these companies are the sale of admission tickets, ride wristbands, hotel bedrooms and conference space with secondary spends coming from catering, retail, car parking, shows and amusement concessions.
The park has a long and distinguished history and offers a high quality visitor experience at an attractive and affordable price point.
Business Review
The group reports a loss before taxation for the year ending 24 March 2024 of £1.7M (2023: £0.3M profit). Turnover for the group is £37.3M (2022: £37.2M).
On park attendances rose slightly by 2% but overall remain depressed against pre pandemic levels. The continuing cost of living crisis has made customers hesitant. Poor weather during key trading periods also acted as a contributor restricting visits to the park and the hotel.
High inflation, high interest rates and significant increases in the minimum wage puts additional stress on our cost lines making profit harder to achieve.
Blackpool Pleasure Beach Limited
The financial year ending 24 March 2024 sees the continuation of the challenges felt in the previous year with the continuing cost of living crisis putting a squeeze on the disposable income of our customers. As a result our attendances have remained relatively flat whilst increasing cost pressures as a result of high inflation and most notably the increase in national minimum wage makes trading again very challenging.
Turnover for the year is £32.1m compared with prior year £31.8m and is reflective of the 2% growth in attendances versus prior year.
Cost of sales sees an 11% increase due primarily to the aforementioned increases in minimum wage but also inflationary increases impacting.
The company has benefited from the government retail, hospitality and leisure business rate scheme and this forms part of the administrative 5% saving versus prior year.
Weather as always remains a significant factor in terms of our overall attendance and 2023 saw fine weather during the off peak periods switching to extremely wet weather for our key summer trading period, weekends in particular were the worst hit in July and August resulting in a negative impact on our attendances.
The net result is an operating loss for the year of £1.1m. This is compounded by higher interest rates pushing up our borrowing costs from £1.1M to £1.5m. The company posts a loss before tax of £2.7m (2023: £521k loss).
Hotel
The cost of living crisis still continues to impact the hotel and is reflected in the occupancy numbers which fall against last year and are still below pre pandemic levels. Our customers are being more cautious in order to protect their disposable income.
Turnover for the year is £4.3M down on prior year’s £4.6M
Cost of sales have remained similar with prior year at 59% of turnover vs 2023: 58% this is despite high inflation including the 10% increase on minimum wage.
Administration costs are at 29% of turnover (2023: 26%). The increase is primarily due to an increase in allocation of group overhead charges.
Profitability for the year before tax excluding exceptional adjustments is £527k (2023: £673k). An intercompany bad debt provision was posted during the year which resulted in a loss before tax for the year of £3m.
Rooms sold decreased by 4% to 31,981 for the year resulting in an overall occupancy of 56%. Total yield per room increased by 3% to £135.
South Shore Mutual Insurance Company
South Shore Mutual Insurance Company reports a pre-tax profit of £0.4M for the year (2023: £0.4M). The company received total investment income of £0.1M (2023: £0.5M) from its portfolio of listed investments and investment properties.
The hospitality and leisure market remains highly competitive and is still recovering from the effects of the pandemic. This has been compounded by the current cost of living crisis where we have seen high interest rates, high inflation and low demand.
This current economic climate means that there is a lot of uncertainty in the market, we have recently started to see inflation fall and as a result a reduction in interest rates.
The group continues to maintain the fabric of the park with its programme of maintenance and repairs so that the park achieves the high standards expected by the public and remains competitive. The company seeks to improve its visitors experience by investing in new attractions and other customer focused improvements.
Utility prices have increased dramatically and the company is committed to finding ways to reduce our energy usage. The company utilises an external company to assist with this together with consideration of greener energy sources.
Weather remains a key factor in terms of overall attendance and turnover. The company has previously used insurance instruments to help mitigate the potential impact of weather. Following review of weather impact on attendance and pricing strategy the decision was made not to use such instruments this year. The Company will continue to consider their use going forward.
The group has loan facilities with one governmental body of £1.8m (2023: one: £2.1m). The group also has use of a £6.7M (2023: £7M) revolver facility, this allows us greater flexibility with regards to pay back and drawdown of facilities, a term loan with Lombard North Central Plc. of £3.5m (2023: £4.0m) to which interest is applied at normal commercial rates. The directors believe that associated interest costs can be met for any reasonable foreseeable increase in base rates within the next year. There was also a £4m (2023: £3m) short term facility available to the company with Natwest plc.
The directors review the possibility of utilising financial instruments to reduce the risk of future rises in the cost of interest but believe that these have been too expensive for the level of risk sheltered.
The directors monitor performance through the production of a detailed budget and by comparing actual results against this and the previous year’s performance.
Additionally, the directors monitor key performance indicators to ensure that they are within acceptable parameters. These key indicators include:
Attendance and Sales against budget and previous years to monitor sales activity and economic trends.
Average spend per head monitored against budget and previous performance.
Gross profit percentage on sales - 2024 - 30.1%, 2023 - 36.8%
Operating Profit by division.
Wage costs as a percentage of sale - 2024 - 44.6%, 2023 - 38.9%
Cost of sale as a percentage of sales - 2024 - 69.9%, 2023 - 63.2%
Cash generated from operating activities - 2024: £157k outflow, 2023: £642k inflow
Impact of weather conditions on attendances and average spend per head.
The directors recognise that the health, safety and welfare of all employees is of critical importance to the success of the business. The company operates a number of key policies within the business including equality and diversity, health screening, pastoral care and an extensive training and development programme. Meetings take place to inform and advise employees of the development of the business. The company also operates a number of employee reward schemes. During the year the company commenced construction of a new staff facility incorporating a canteen, changing and locker rooms, showers and training rooms as part of our investment in our staff.
Safety
Safety remains of the very highest priority, and all employees are aware of the company’s safety policy. The company has achieved accreditation in BSI 9001 and 18001 which recognises the rigorous safety systems in place. The Company ensures that employees receive the necessary training to enable them to perform their duties in a safe and competent manner.
Section 172 statement
In their discussions and decision-making during the period ended 24 March 2024, the directors of Blackpool Pleasure Beach Limited have acted in the way that they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole, and in doing so have regard (amongst other matters) to
the likely consequences of any decision in the long term,
the interests of the company's employees,
the need to foster the company's business relationships with all stakeholders
the impact of the company's operations on the community and the environment,
the desirability of the company maintaining a reputation for high standards of business conduct, and
the need to act fairly as between members of the company.
Engagement with all our stakeholders is an important aspect of our business, and we provide examples of our efforts in this regard below:
Customers
The group’s long term success has been built on delivering an exceptional customer experience, whilst maintaining the highest standards of health and safety, to provide them with memories to last a lifetime. We pride ourselves on making the customers experience different each time they visit by reinventing the park with new rides and different experiences.
Employees
The directors consider their employees to be the key resource of the business and are aware that the future success and growth of the business will be down to having a workforce which can deliver the experience our customers have come to expect from the company. We ensure all staff training requirements are met and support a culture which encourages the staff to engage with management on all aspects of their employment.
Suppliers and environment
We are expected to act as a responsible company and employer and to minimise the impact we have on the community and the environment. Consequently, the company maintains the rides to meet high safety standards which allow the company to meet the highest legislative requirements and minimise the impact on the environment. The directors understand how an effective relationship with suppliers and finance providers supports the cash-flow of the company and this is important to continuing the high quality service customer’s demand from the business.
Shareholders
Our commitment is to protect and manage our shareholder’s investments in a responsible and sustainable way. The content of the Strategic Report demonstrates how we are achieving this.
Outlook
Trading in the current year has been extremely difficult due to many external factors beyond our control. The cost of living crisis is ongoing. We do not foresee any short term change. We continue to review our operation with a view to making the business more efficient and sustainable.
The company has instigated a head count review and a review of the assets on park, as a result a number of rides will be closed for the forthcoming season, we are also looking at how we profile the opening and closing times of both individual rides and the park itself with a view to maximising efficiency (and therefore cost) whilst balancing it with achieving great customer satisfaction.
We have what is now a tried and tested operating model which seeks to ensure guest and employee safety whilst maintaining high levels of guest satisfaction.
The company continues to ensure that all our guests receive a quality experience and value for money. This is monitored through a comprehensive programme of guest research and satisfaction surveys. The company continues to invest in its infrastructure to ensure that the business is well promoted through marketing and improved control systems to ensure we are able to maximise our returns and reduce our exposure to potential loss.
The Company continues to monitor and adapt and develop its strategic plan for the short to long term.
On behalf of the board
The directors present their annual report and financial statements for the period ended 24 March 2024.
The results for the period are set out on page 14.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
The movements in tangible fixed assets during the year are set out in note 12 to the financial statements.
Based on formal valuations carried out in December 2018, the market value of land and buildings exceeds the carrying value in the financial statements.
In the period covered by the report, Blackpool Pleasure Beach has continued their rollout of LED across the site, which reduces the energy used on site. There has been a new staff canteen built equipped with a ground source heat pump. This innovative system harnesses renewable geothermal energy further contributing to the organisation’s environmental stewardship.
Significant energy improvements have been seen at the Valhalla site. The Valhalla site has reopened after removing the Snow Scene Cauldrons, resulting in reduced energy consumption. Additionally, a modulating boiler has been installed to further enhance energy efficiency by adjusting power output based on real-time heating demands. Further, all Valhalla lighting changed to LED in the reporting period. These measures demonstrate a commitment to sustainability and efficiency.
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.
The directors consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not reflect any adjustments as a result of the increase in economic uncertainty. Further details regarding the adoption of the going concern basis can be found in the accounting policies note within the financial statements.
We have audited the financial statements of Blackpool Pleasure Beach (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 24 March 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).
Basis for 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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.
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:
Enquiries with management, about any known or suspected instances of non compliance with laws and regulations and fraud;
Challenging assumptions and judgements made by management in their significant accounting estimates, including recoverability of intercompany balances;
Reviewing board minutes and legal and professional expenditure to identify any evidence of ongoing litigation or enquiries;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
Testing key revenue lines, in particular cut off, for evidence of management bias;
Obtaining third party confirmation of material bank balances; and
Documenting and verifying all significant related party balances.
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.
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 £0 (2023 - £0 profit).
Blackpool Pleasure Beach (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Pleasure Beach, Ocean Boulevard, Promenade, Blackpool, FY4 1EZ.
The group consists of Blackpool Pleasure Beach (Holdings) Limited and all of its subsidiaries.
The current reporting period relates to the 52 week period ending 24 March 2024. The comparative reporting period relates to the 53 week period ending 26 March 2023.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, 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 has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Blackpool Pleasure Beach (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 24 March 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The company is party to cross guarantees securing all bank and local government debts of the group to which the company belongs, as disclosed in note 23 to the financial statements. The group meets its day to day working capital requirements through a short term loan and an overdraft. In addition the group is funded through longer term bank and local government loans.
The directors have prepared detailed forecasts including cash flow projections which indicate that the group and the company will have sufficient funds to meet its liabilities as they fall due for the foreseeable future. In preparing their forecasts the directors have had to make key assumptions and there are therefore uncertainties. The key assumptions include visitor numbers for 2025/26 increasing by 2% over 2024/25 numbers, bank and loan facilities remaining in place and the cost saving plan approved by the directors being successfully implemented. The directors are confident that the assumptions made are modest and achievable.
Based on the forecasts, the directors expect that the company and group will meet its obligations in respect of loan repayments and interest payments but certain financial covenants attached to the revolving credit facility will not be met. Notwithstanding this, the company and group’s most recent forecasts present a more favourable position than was presented to the bank during the most recent refinancing in December 2024.
The directors are in regular communication with the bank and expect that the revolving credit facility will remain in place for the foreseeable future and the short term facilities will be renewed as required during the latter part of 2025.
If trading were to fall short of the forecasts to the extent that a shortfall in funding would result, then the directors believe asset realisations or additional cost savings are achievable that would enable the group and the company to continue to operate.
After making enquiries and considering the uncertainties described above the directors confidently expect the group will have adequate resources to continue trading for the foreseeable future. It is therefore appropriate to prepare the financial statements of the company on a going concern basis.
Turnover derived from the amusement park operations including ticket, retail, concession, car parking and food and beverage sales, which fall within the company's ordinary activities, are stated net of value added tax. Turnover is recognised on the date of the provision to customers of goods and services or deferred to the balance sheet for future dates.
Turnover derived from the provision of hotel operations which fall within the company's ordinary activities, are stated net of value added tax. Turnover is recognised on the date of customer occupancy. Pre-booked revenue is deferred at the year end.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
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.
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in or .
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.
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). 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset.
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, 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.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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, including creditors, bank loans and loans from fellow group companies, 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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.
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 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.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The Company's investments in subsidiaries are reviewed to determine whether there are indicators of impairment that may affect their value. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the subsidiaries.
Insurance contracts are those contracts that transfer significant insurance risk. The group considers that all the contracts it underwrites carry insurance, rather than financial risk. The insurance risk relates to both the uncertainty of an insured event occurring for any of the insurance contracts issued by the company and the uncertainty of the amount of the resulting claim. By the very nature of an insurance contract this risk is random and therefore unpredictable.
The group carries only its investment properties and other financial investments at fair value. All financial investments are held at quoted prices in an active market. All investment properties are fair valued in accordance with professional valuations carried out every 5 years with the directors reviewing the market values in intervening years.
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.
Amounts owed by group undertakings and other related parties are assessed for recoverability at each reporting date. The directors base their assessment on the financial position and expected financial performance of the related parties.
At the period end, the directors consider the amounts owed by related parties included in debtors totalling £5,617,794 (2023: £4,301,909) to be recoverable and no provisions have been made against these debts.
Tangible assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the asset and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technologies innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as market conditions, The remaining life of the asset and projected disposal values.
Turnover is wholly attributable to the principal activity of the company. All of the turnover arises within the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the period was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023 - 0).
There are no key management personnel other than the directors of the company.
The actual charge for the period can be reconciled to the expected (credit)/charge for the period based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 24 March 2024 are as follows:
Registered office addresses (all UK unless otherwise indicated):
* Blackpool Leisure and Amusement Consultancy Limited has taken the exemption in Section 479A of the Companies Act 2006 ("the Act") from the requirements in the Act for the their individual accounts to be audited for the period ended 24 March 2024. The guarantee given by the company under Section 479A of the Act is disclosed in Note 26.
Loans and overdrafts includes the following facilities:
Bank revolving credit facility
Balance: 2024 £6.7m, 2023 £7.0m
Repayment terms: Fixtures repayable in 1, 3 or 6 months. Facility expires in June 2026.
Interest rate: SONIA plus 3%
Security: Cross guarantee with group and related companies. Freehold first legal charge. Postponement of loans and repayments to related parties.
The revolving credit facility is shown within creditors due within one year at the period end as bank covenants relating to earnings have not been met. Based on discussions with the bank, the directors expect the facilities to remain in place.
Bank working capital loan
Balance: 2024 £4.0m, 2023 £nil
Repayment terms: £1m in July 2024, £2m in August 2024, £1m in September 2024
Interest rate: Base rate plus 3%
Security: Cross guarantee with group and related companies. Freehold first legal charge. Postponement of loans and repayments to related parties.
In December 2024, the working capital loan was renewed with the bank with the new facility totalling £6m. The repayment dates are £2m in July 2025, £2m in August 2025, £1m in September 2025 ,and £1m in October 2025.
Bank overdraft
Balance: 2024 £3.8m, 2023 £3.5m
Repayment terms: Rolling
Interest rate: Base rate plus 3.5% up to the net limit, base rate plus 15% above the net limit
Security: Cross guarantee with group and related companies. Freehold first legal charge. Postponement of loans and repayments to related parties.
Governmental term loan
Balance: 2024 £1.8m, 2023 £2.1m
Repayment terms: Over 10 years from December 2019
Interest rate: 5.75%
Security: Cross guarantee with group and related companies. Mortgage charge over freehold land. Fixed charge over property and tangible fixed assets. Fixed and floating charges over all assets.
Lombard loan
Balance: 2024 £3.5m, 2023 £4.0m
Repayment terms: 8 payments per year over 9 years from March 2021
Interest rate: 4.94%
Security: Cross guarantee with group and related companies. Fixed charge over the ICON amusement device and freehold land.
Director loans
Balance: 2024 £212k, 2023 £201k
Repayment terms: Repayable on demand, ranks after other secured loans
Interest rate: Base rate plus 4%
Security: Not secured
Other provisions relate to the directors' assessment of the likely costs to settle public liability claims where the incident occurred prior to the period end.
Having regard to the reported incidents and public liability claims received by the Group, and the Limitation Act 1980 (which governs the time within which claims can be brought), the directors consider the provision carried forward to be reasonable and proportionate.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
During the period. government grants of £500,000 (2023: £nil) were released from creditors to the profit and loss accounts as other operating income following the conditions of the grants being met.
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.
The A Ordinary share rank pari passu for the purpose of participation in profits and assets with the remainder of the share capital. However, the holders of A Ordinary shares shall not be entitled to receive notices of such meetings or to be present or to vote at General Meetings. The directors may at any time with the consent of the holders of the share capital affected convert any of the A Ordinary shares into Ordinary shares. In the event of a winding up, the Liquidator may decide how to divide the assets between the different classes of members.
The other reserve represents the net surpluses arising on the revaluation of listed investments and investment properties in South Shore Mutual Insurance Company Limited, a subsidiary undertaking.
The total bank and governmental body borrowings outstanding at the year end, under group guarantees were £19,587,197 (2023: £16,542,863).
The following fellow subsidiary undertakings were party to the cross guarantee:
Blackpool Leisure and Amusement Consultancy Limited
Blackpool Pleasure Beach Limited
Cable Chutes (Blackpool) Limited
Ocean Boulevard II Limited
Hotchkiss Patents & Investments Limited
The following related undertakings was party to the cross guarantee:
Cable Chutes II Limited
Subsidiary audit exemption
In order for the subsidiary, Blackpool Leisure and Amusement Consultancy Limited, noted within Note 14 to take the audit exemption in Section 479A of the Companies Act 2006, the company has guaranteed all outstanding liabilities of the subsidiary at 24 March 2024 until those liabilities are satisfied in full.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the period the group entered into the following transactions with related parties:
Ocean Boulevard III Ltd
Nature of relationship: Company under common control
Transactions: Rendering of services £2,847,537 (2023: £nil)
Balance: £4,547,969 debtor (2023: £3,281,925)
Cable Chutes II Ltd
Nature of relationship: Company under common control
Transactions: Rendering of services £nil (2023: £15,000)
Balance: £26,822 debtor (2023: £18,000 debtor)
Blackpool Pleasure Beach Self-Administered Pension Scheme
Nature of relationship: Pension scheme including certain directors and ultimate shareholders as beneficiaries.
Transactions: Pension payments of £90,000 (2023: £90,000)
Balance: £4,299 creditor (2023: £nil)
Monitor & Merrimac Ltd
Nature of relationship: Minority ultimate shareholder, controlled by a director
Transactions: No transactions
Balance: £191,418 creditor (2023: £191,418)
B J Thompson
Nature of relationship: Former director, repayments made from estate.
Transactions: £627
Repayments: -£106,287
Balance: £35,261 debtor (2023: £142,072 debtor)
N W R Thompson
Nature of relationship: Director
Transactions: -£5,274
Interest: £3,600
Balance: £52,326 debtor (2023: £54,000 debtor)
F C Gilje
Nature of relationship: Director
Transactions: £142
Interest: -£14,083
Balance: £137,941 creditor (2023: £124,000 creditor)
A J Thompson
Nature of relationship: Director
Transactions: £17,368
Interest: -£14,083
Balance: £126,715 creditor (2023: £130,000 creditor)
Directors loan accounts incur interest at 4% per annum over base rate and are repayable after all group bank loans are repaid.
The following prior period adjustments have been made:
Tangible fixed assets depreciation adjustment:
The directors identified an error on the fixed asset register whereby certain assets had been depreciated in excess of the cost of the asset. The directors have corrected the error of £1,972,327 by adjusting the depreciation brought forward at 21 March 2022.
Investment impairment adjustment:
The company holds an investment of £1,020,000 in subsidiary Cable Chutes (Blackpool) Ltd. This subsidiary has been dormant since 2012. The investment of £1,020,000 is matched by a balance owing to Cable Chutes (Blackpool) Ltd of £1,117,383. As the subsidiary is dormant, the directors have concluded that the investment value should have been impaired to £nil and the creditor reduced by the impairment amount of £1,020,000. The error was corrected in the brought forward balance sheet at 21 March 2022 with no effect on the profit and loss reserves.