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REGISTERED NUMBER: 06004556 (England and Wales)













Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023

for

Leisure World Group Limited

Leisure World Group Limited (Registered number: 06004556)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Leisure World Group Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: C M Kinsell
M A Kinsell



SECRETARY: C M Kinsell



REGISTERED OFFICE: Gatherley Road
Catterick Bridge
RICHMOND
Yorkshire
DL10 7JB



REGISTERED NUMBER: 06004556 (England and Wales)



SENIOR STATUTORY AUDITOR: Martin Hobson BA (Hons) FCCA



AUDITORS: Clive Owen LLP
Chartered Accountants
& Statutory Auditors
140 Coniscliffe Road
Darlington
County Durham
DL3 7RT

Leisure World Group Limited (Registered number: 06004556)

Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
The company's principal activity during the period continued to be a retailer of motorhomes and touring caravans, motor vehicles, and all associated accessories and spare parts.

The key financial and other performance indicators during the period were as follows :


31.12.23
£
31.12.22
£

Change
Turnover 19,832,550 16,465,746 20.45%

Number of employees 66 62 6.45%
Turnover per employee 300,493 265,577 13.15%


The business has been on a post Covid-19 journey, having previously experienced a period of a shortage of supply combined with unprecedented consumer demand, the business was previously operating in exceptional circumstances.

During 2023 and 2024, the business, and its sector, have experienced a significant decline in consumer activity due to the economic pressures and lack of consumer confidence caused by the wars in both Ukraine and the Middle East, high inflation rates, significant increases in the cost of living, and the increase in bank interest and mortgage interest rates. At the same time, due to the same economic pressures, the business has also experienced challenges caused by high bank interest rates, and significant increases in operating overheads. In response, the directors strategically acquired market share and turnover through reduced operating margins.

During the last two years, the directors have invested significantly into the Catterick dealership to create a new improved destination dealership, and in a fast-changing marketplace with very different consumer buying habits, the directors decided that there was no longer a requirement for their satellite branch locations to achieve their business objects in 2025 onwards. The directors therefore decided to merge the three businesses into the one supersite location which took place during the autumn and winter of 2024.

This consolidation has achieved and is achieving immediate and significant efficiencies and operational cost savings for the business which the directors considered to be prudent during the challenging marketplace that the sector currently operates in.

On the 28th February 2025, the company completed the sale of its Birtley freehold premises for redevelopment and immediately repaid it's group mortgage, and significantly reduced its short term borrowings. Furthermore, the directors signed an agreement in respect of the York premises, again for this property to be sold for redevelopment.

The directors believe that due to the ongoing investment into the Catterick supersite, along with the consolidation efficiencies and operational cost savings, that the business will have both the financial strength and unique offering for its sector, to position itself as the only destination dealership of its kind in the North East of England.


Leisure World Group Limited (Registered number: 06004556)

Strategic Report
for the Year Ended 31 December 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the company are -

Competitive risk
The company receives a substantial amount of its turnover from customers purchasing caravans and motorhomes. A fall in retail activity within this sector would significantly impact on the turnover of the company.

Exposure to credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Company policies are aimed at minimising such losses, and require that customers provide a deposit in advance of the ordering and sale of goods. Consideration of payment history and customers credit worthiness are taken into account before offering customers deferred payment terms. Details of the company's debtors are shown in note 11 to the financial statements.

Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets.

Supply chain risk
There is a risk that the company isn't able to take delivery of goods ordered due to various issues with the supply chain. The company mitigates this risk by having multiple supplier relationships and agreeing planned deliveries with its key suppliers well in advance of the delivery date.

ON BEHALF OF THE BOARD:





C M Kinsell - Director


20 March 2025

Leisure World Group Limited (Registered number: 06004556)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 261,892 .

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

C M Kinsell
M A Kinsell

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Clive Owen LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





C M Kinsell - Director


20 March 2025

Report of the Independent Auditors to the Members of
Leisure World Group Limited

Opinion
We have audited the financial statements of Leisure World Group Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Leisure World Group Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Report of the Independent Auditors to the Members of
Leisure World Group Limited


Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, to detect material misstatements in respect of irregularities, including fraud. Our audit must be alert to the risk of manipulation of the financial statements and seek to understand the incentives and opportunities for management to achieve this.

We undertake the following procedures to identify and respond to these risks of non-compliance:

- Understanding the key legal and regulatory frameworks that are applicable to the Company. We communicated and identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We determined the most significant of these to be general retail regulations, trading standards, employment law, health & safety, tax legislation and company law.

- Enquiry of directors and management as to policies and procedures to ensure compliance and any known instances of non-compliance.

- Enquiry of directors and management as to areas of the financial statements susceptible to fraud and how these risks are managed.

- Challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are disclosed in the accounting policies.

- Identifying and testing unusual journal entries, with a particular focus on manual journal entries.

Through these procedures, we did not become aware of actual or suspected non-compliance.

We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve concealment, collusion, forgery, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Leisure World Group Limited


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 a Report of the Auditors 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.




Martin Hobson BA (Hons) FCCA (Senior Statutory Auditor)
for and on behalf of Clive Owen LLP
Chartered Accountants
& Statutory Auditors
140 Coniscliffe Road
Darlington
County Durham
DL3 7RT

20 March 2025

Leisure World Group Limited (Registered number: 06004556)

Statement of Comprehensive
Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 19,832,550 16,465,746

Cost of sales 16,695,179 13,228,149
GROSS PROFIT 3,137,371 3,237,597

Administrative expenses 3,185,430 2,589,685
(48,059 ) 647,912

Other operating income 108,110 850
OPERATING PROFIT 4 60,051 648,762


Interest payable and similar expenses 5 74,297 55,055
(LOSS)/PROFIT BEFORE TAXATION (14,246 ) 593,707

Tax on (loss)/profit 6 (11,207 ) 124,681
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(3,039

)

469,026

OTHER COMPREHENSIVE INCOME
Freehold property revaluation 1,000,000 -
Income tax relating to other comprehensive
income

(250,000

)

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

750,000

-
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

746,961

469,026

Leisure World Group Limited (Registered number: 06004556)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 37,780 -
Tangible assets 9 4,789,392 3,552,632
4,827,172 3,552,632

CURRENT ASSETS
Stocks 10 10,642,732 8,876,512
Debtors 11 2,346,031 1,918,171
Cash in hand 3,233 4,824
12,991,996 10,799,507
CREDITORS
Amounts falling due within one year 12 12,510,041 10,729,249
NET CURRENT ASSETS 481,955 70,258
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,309,127

3,622,890

CREDITORS
Amounts falling due after more than one
year

13

(1,026,866

)

(64,491

)

PROVISIONS FOR LIABILITIES 17 (442,048 ) (203,255 )
NET ASSETS 3,840,213 3,355,144

CAPITAL AND RESERVES
Called up share capital 18 7,000 7,000
Property revaluation reserve 19 1,397,088 647,088
Retained earnings 19 2,436,125 2,701,056
SHAREHOLDERS' FUNDS 3,840,213 3,355,144

The financial statements were approved by the Board of Directors and authorised for issue on 20 March 2025 and were signed on its behalf by:





C M Kinsell - Director


Leisure World Group Limited (Registered number: 06004556)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up Property
share Retained revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 7,000 2,897,385 647,088 3,551,473

Changes in equity
Dividends - (665,355 ) - (665,355 )
Total comprehensive income - 469,026 - 469,026
Balance at 31 December 2022 7,000 2,701,056 647,088 3,355,144

Changes in equity
Dividends - (261,892 ) - (261,892 )
Total comprehensive income - (3,039 ) 750,000 746,961
Balance at 31 December 2023 7,000 2,436,125 1,397,088 3,840,213

Leisure World Group Limited (Registered number: 06004556)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Leisure World Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.

Going concern
During 2023 and 2024, the business and its sector faced a significant decline in consumer activity driven by global conflicts (Ukraine and the Middle East), high inflation, rising living costs, and increased interest and mortgage rates.

In response, the directors strategically acquired market share and turnover through reduced operating margins, and invested in developing a single destination dealership, resulting in the decision being made that satellite branches were no longer necessary to achieve business objectives. As a result, the three businesses were consolidated into one supersite during autumn and winter 2024, delivering immediate operational efficiencies and cost savings.

On 28 February 2025, the company completed the sale of its Birtley freehold premises for redevelopment, repaid its mortgage, and significantly reduced short-term borrowings. An agreement has also been signed to sell the York premises for redevelopment.

The directors are confident that continued investment in the Catterick destination dealership, combined with consolidation efficiencies, will strengthen the business financially and uniquely position it as the only destination dealership of its kind in the North East of England.

The parent entity has also provided a letter of support, confirming its willingness to raise funds against unencumbered group property if needed. Accordingly, the directors believe it is appropriate to prepare the financial statements on a going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Leisure World Group Limited (Registered number: 06004556)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Stock provisions - Management applies procedures to identify defective, slow moving and obsolete stocks. An estimation is made of the price obtainable in the market in which the goods are expected to be sold and any costs of completion and sale are taken into account. The value of stock is reduced by the deficit between the cost and estimated net realisable value of the stock in the form of a stock provision.

Freehold and leasehold property valuations - property is held at fair value and management is required to estimate the value at the period end. A report was produced by an independent RICS registered valuer and the figures from this have been reflected in the financial statements.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Income recognition
Income is recognised on the delivery of a caravan, car or motorhome, point of sale of an accessory or when a service is performed.

Intangible assets
Intangible assets relate to website development costs. These are initially recognised at cost and subsequently at cost less any accumulated amortisation and any accumulated impairment losses.

The website development costs are being amortised evenly over their estimated useful life of four years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - not provided
Long leasehold - not provided
Improvements to property - 2% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - 20% on cost
Computer equipment - 25% on cost

Long leasehold and freehold properties are held at their fair value, as assessed by an independent valuer.

Other tangible assets are held at cost less accumulated depreciation and impairments.

The directors perform annual impairment reviews to determine whether there is any indication that assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

Stocks
Stocks have been valued at the lower of cost and estimated selling price less costs to complete and sell, after making allowance for obsolete and slow moving items.

Financial instruments
Basic financial instruments are recognised at amortised cost with changes recognised in profit or loss.


Leisure World Group Limited (Registered number: 06004556)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Realised exchange differences are taken into account in arriving at the operating result. Unrealised gains or losses arising on translation at the balance sheet date are recognised in the Statement of Other Comprehensive Income.

Operating leases
All operating leases are charged to the profit and loss account on a straight line basis over the lease term.

Finance stock not delivered
Finance stock not delivered consists of vehicles which have been purchased on finance and invoiced, however the company cannot yet access or control this stock. Once the company can access and control the stock, it is recognised within stock.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,620,394 1,419,811
Social security costs 131,147 125,839
Other pension costs 29,500 24,858
1,781,041 1,570,508

Leisure World Group Limited (Registered number: 06004556)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Administration and sales 66 60
Directors 2 2
68 62

2023 2022
£    £   
Directors' remuneration 25,140 23,814
Directors' pension contributions to money purchase schemes 294 92

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 76,946 78,739
Depreciation - assets on hire purchase contracts 49,500 43,691
Profit on disposal of fixed assets - (16,220 )
Development costs amortisation 12,594 -
Auditors' remuneration 22,080 15,500

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 64,757 39,455
Other interest payable 9,540 15,600
74,297 55,055

6. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax - 80,989

Deferred tax (11,207 ) 43,692
Tax on (loss)/profit (11,207 ) 124,681

Leisure World Group Limited (Registered number: 06004556)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

6. TAXATION - continued

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
(Loss)/profit before tax (14,246 ) 593,707
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

(3,562

)

112,804

Effects of:
Expenses not deductible for tax purposes 2,788 8,096
Depreciation in excess of capital allowances 1,845 3,781
Group relief (12,278 ) -
Total tax (credit)/charge (11,207 ) 124,681

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Freehold property revaluation 1,000,000 (250,000 ) 750,000

7. DIVIDENDS
2023 2022
£    £   
Interim 261,892 665,355

8. INTANGIBLE FIXED ASSETS
Development
costs
£   
COST
Additions 50,374
At 31 December 2023 50,374
AMORTISATION
Amortisation for year 12,594
At 31 December 2023 12,594
NET BOOK VALUE
At 31 December 2023 37,780

Leisure World Group Limited (Registered number: 06004556)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS
Improvements
Freehold Long to
property leasehold property
£    £    £   
COST OR VALUATION
At 1 January 2023 2,104,659 950,000 -
Additions - - 305,308
Revaluations 1,000,000 - -
Reclassification (79,659 ) - 79,659
At 31 December 2023 3,025,000 950,000 384,967
DEPRECIATION
At 1 January 2023 - - -
Charge for year - - 4,646
At 31 December 2023 - - 4,646
NET BOOK VALUE
At 31 December 2023 3,025,000 950,000 380,321
At 31 December 2022 2,104,659 950,000 -

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST OR VALUATION
At 1 January 2023 632,739 336,686 204,765 4,228,849
Additions 43,481 - 14,417 363,206
Revaluations - - - 1,000,000
Reclassification - - - -
At 31 December 2023 676,220 336,686 219,182 5,592,055
DEPRECIATION
At 1 January 2023 385,671 96,133 194,413 676,217
Charge for year 53,700 49,500 18,600 126,446
At 31 December 2023 439,371 145,633 213,013 802,663
NET BOOK VALUE
At 31 December 2023 236,849 191,053 6,169 4,789,392
At 31 December 2022 247,068 240,553 10,352 3,552,632

Leisure World Group Limited (Registered number: 06004556)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS - continued

Cost or valuation at 31 December 2023 is represented by:

Improvements
Freehold Long to
property leasehold property
£    £    £   
Valuation in 2014 36,695 221,504 -
Valuation in 2017 72,976 45,418 -
Valuation in 2021 180,000 (8,786 ) -
Valuation in 2021 115,000 75,000 -
Valuation in 2023 1,000,000 - -
Cost 1,620,329 616,864 384,967
3,025,000 950,000 384,967

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
Valuation in 2014 - - - 258,199
Valuation in 2017 - - - 118,394
Valuation in 2021 - - - 171,214
Valuation in 2021 - - - 190,000
Valuation in 2023 - - - 1,000,000
Cost 676,220 336,686 219,182 3,854,248
676,220 336,686 219,182 5,592,055

The freehold and leasehold property was valued as at 31 December 2023 by an independent valuer. For the freehold properties this is supported by one having been sold in February 2025, and for the other an agreed price for a sale which is aimed to complete in 2025.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST OR VALUATION
At 1 January 2023
and 31 December 2023 268,310
DEPRECIATION
At 1 January 2023 26,831
Charge for year 49,500
At 31 December 2023 76,331
NET BOOK VALUE
At 31 December 2023 191,979
At 31 December 2022 241,479

Leisure World Group Limited (Registered number: 06004556)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

10. STOCKS
2023 2022
£    £   
Stocks 10,642,732 8,876,512

Stock, including finance stock not delivered (note 11), valued at £9,924,480 (2022 : £7,551,741) is pledged as security in respect of stock financing agreements.

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 25,263 56,539
Other debtors 676,466 953,845
Finance stock not delivered 914,796 765,068
Directors' current accounts 617,424 96,462
Prepayments and accrued income 112,082 46,257
2,346,031 1,918,171

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 14) 930,987 876,925
Hire purchase contracts (see note 15) 47,016 47,016
Payments on account 519,366 366,255
Trade creditors 10,269,497 7,688,767
Amounts owed to group undertakings - 311,376
Corporation tax 471,900 714,767
Taxation and social security 71,166 -
Other creditors 47,747 599,353
Accruals and deferred income 152,362 124,790
12,510,041 10,729,249

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 14) 272,553 -
Hire purchase contracts (see note 15) 17,475 64,491
Amounts owed to group undertakings 736,838 -
1,026,866 64,491

Leisure World Group Limited (Registered number: 06004556)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 821,966 391,412
Bank loans 109,021 485,513
930,987 876,925

Amounts falling due between two and five years:
Bank loans - 2-5 years 272,553 -

15. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£    £   
Net obligations repayable:
Within one year 47,016 47,016
Between one and five years 17,475 64,491
64,491 111,507

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 821,966 391,412
Bank loans 381,574 485,513
Hire purchase contracts 64,491 111,507
1,268,031 988,432

The bank borrowings are secured against the freehold property, and a fixed and floating charge over the assets of the company. The loan is due for repayment by April 2027 Interest on the loan is 3.15% above base rate per annum.

Hire purchase contracts are secured on the assets to which they relate.

17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 442,048 203,255

Leisure World Group Limited (Registered number: 06004556)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

17. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2023 203,255
Credit to Statement of Comprehensive Income during year (11,207 )
Def. tax property. reval. 250,000
Balance at 31 December 2023 442,048

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
7,000 Ordinary £1 7,000 7,000

19. RESERVES
Property
Retained revaluation
earnings reserve Totals
£    £    £   

At 1 January 2023 2,701,056 647,088 3,348,144
Deficit for the year (3,039 ) (3,039 )
Dividends (261,892 ) (261,892 )
Revaluation of property - 1,000,000 1,000,000
Deferred tax - (250,000 ) (250,000 )
At 31 December 2023 2,436,125 1,397,088 3,833,213

Retained earnings includes all current and prior period retained profits and losses less distributions made.

Property revaluation reserve reflects the historical increases in the fair value of land and buildings prior to transition to FRS102 and subsequent revaluations of property and the related deferred tax.

20. ULTIMATE PARENT COMPANY

The ultimate parent company is LWG Group Limited, a company registered in England and Wales. The registered office of LWG Group Limited is Gatherley Road, Brompton on Swale, Richmond, North Yorkshire, DL10 7JB.

21. OTHER FINANCIAL COMMITMENTS

Leisure World Group Limited has provided a cross guarantee to the company's bankers in respect of the group overdraft facility also utilised by Tyneside Leisure World Limited and Ebor Leisure World Limited. There are also cross guarantees and indemnities in place in respect of stock financing agreements with several suppliers.

With the trades of both Ebor Leisure World Limited and Tyneside Leisure World Limited having transferred over to Leisure World Group Limited at the 1 January 2021, both the bank balances and stock financing liabilities are included in the balance sheet of Leisure World Group Limited. This has been the case for all subsequent years including the current financial year.

The composite group bank overdraft at the end of the period was £821,966 (2022 £391,412) and the amount owed by the group in respect of stock financing agreements was £9,924,480 (2022: £7,551,741).

Leisure World Group Limited (Registered number: 06004556)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

22. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022:

2023 2022
£    £   
C M Kinsell
Balance outstanding at start of year 84,046 296,360
Amounts advanced 260,962 84,867
Amounts repaid - (297,181 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 345,008 84,046

M A Kinsell
Balance outstanding at start of year 12,416 -
Amounts advanced 260,000 12,416
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 272,416 12,416

23. RELATED PARTY DISCLOSURES

31.12.2023 31.12.2022
£ £
Amounts due to other related parties nil 455,462

Amounts due from directors 617,424 96,462


Key management personel only consist of the directors whose remuneration we disclose in note 3.

24. POST BALANCE SHEET EVENTS

In the autumn of 2024 the company decided to close its satellite trading branches in York and Tyneside, moving products and staff across to the company's super site at Catterick. This is explained further in the Strategic Report.

25. ULTIMATE CONTROLLING PARTY

The company is controlled by C M Kinsell by virtue of his majority shareholding in the parent company, LWG Group Limited.