Company Registration No. 11228959 (England and Wales)
Lowther Group Ltd
Annual report and
group financial statements
for the year ended 30 September 2024
Lowther Group Ltd
Company information
Directors
James Lowther
Peter Holt
Alastair Maxwell
Company number
11228959
Registered office
Lowther Castle
Lowther
Penrith
Cumbria
CA10 2HH
Independent auditor
Saffery LLP
10 Wellington Place
Leeds
LS1 4AP
Lowther Group Ltd
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Group profit and loss account
11
Group statement of comprehensive income
12
Group balance sheet
13 - 14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 42
Lowther Group Ltd
Strategic report
For the year ended 30 September 2024
1

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

Business review

The Company's principal activity is that of a holding company. Its subsidiaries are engaged in landscape and forestry contracting, property management, farming, retail and tourism.

 

The directors are of the strong belief that the group will continue to deliver profitability into the future despite challenging economic circumstances.

Principal risks and uncertainties

The directors have assessed the main risks facing the group as being availability of and inflationary pressures on materials, food purchases and labour. With respect to Lowther Forestry Group Limited (LFG) the judicious purchasing of materials and where necessary a forward buying strategy has been adopted. Across the group labour shortages are easing although the directors consider the necessity to pay competitively and incentivize performance important to retain staff.

 

Other risks that the directors review and assess include:

 

Financial

 

With inflation now easing the direct purchase of materials has less impact on the group’s profitability. More concerning is the impact of the current economic fluctuations and in the case of Lowther Castle the disposable income of its visitors.

 

To mitigate loss of custom price increases have been minimal and the focus has been on delivering good service and a great product across the group.

 

With respect to LFG, due diligence on new and existing customers and careful monitoring of debtors continues. As such there is minimal bad and doubtful debt.

 

Energy and the war in Ukraine

 

The Group is exposed to energy related risk in that there are buildings including offices, a dairy and multiple vehicles and items of equipment to service and run. Other than minimising usage little can be done, however LCL has been fortunate to have had a lower tariff plan in place during the worst of the energy crisis and it has sought to fuel its biomass boiler with LFG generated chippings to minimize costs.

 

The directors are not aware of any sanctions relating to the war impacting any key suppliers or customers.

 

Covid-19

 

There has been no lasting material impact to the workforce and no changes to business operations following the removal of government support.

 

On the basis of the above, the Board considers the group operation to be a going concern.

Lowther Group Ltd
Strategic report (continued)
For the year ended 30 September 2024
2
Development and performance

At the year end the group had shareholder funds of £14,854,655 (2023: £14,078,457) including retained profits of £7,270,009 (2023: £6,493,811).The directors therefore consider the Group’s position to be strong with current assets of £8,972,661 (2023: £10,173,774) exceeding current liabilities of £2,879,077 (2023: £3,260,078). The cash position remains healthy at £1,589,119 (2023: £2,734,936).

Based on these results the directors continue to believe that each subsidiary now has an established base to take full advantage of growth opportunities and to maximise the profitability of the group.

 

Key performance indicators

Financial Key Performance Indicators monitored by the Board:

2024      2023

Turnover        £15,126,283    £16,451,718

Gross profit        £4,964,326    £6,070,294

Profit before tax        £1,529,979    £2,510,410    

Trade debtors        £2,391,016    £2,540,674

Debtor days        58        56

Lowther Park Farms Ltd

In July 2023 it was decided to expand the partnership namely Lowther Farming Partnership and transfer the remaining trading business of the farm to the partnership. All of the assets, liabilities, cash, employees and contracts transferred to the Partnership. This resulted in the farm holding a partnership share of 6.25% and its ultimate owner Lowther Estate Trust, the second partner holding 93.75%.

 

Within the Partnership the operation of the farm continues much as it has in previous years with the farm plan of rewilding continuing successfully during the past year with further environmental schemes including woodland planting and pasture creation ongoing and in the pipeline.

 

The dairy partnership is well established and selling milk profitably to Arla.

 

Lowther Forestry Group Limited

The company has a strong order book for the coming year with a diverse client base, a high level of client retention and repeat work being key factors to the continued growth of the business. The long term strategy of organic growth continues underpinned by a strong management team country wide focused on tender preparation and contract awards.

The company has a strong cash position and remains open to the potential acquisition of a business that would benefit the future growth and stability of the company. The directors have identified that to achieve its long term aims and to strengthen the existing business, the recruitment of new employees to key positions will be crucial to achieve the aims of the shareholders.

 

The directors continue to ensure that quality standards are maintained across the company as evidenced by successful audits and the achievement and retention of qualifications including those in the ISO sphere.

Lowther Group Ltd
Strategic report (continued)
For the year ended 30 September 2024
3

Lowther Castle limited (LCL)

 

Following a period of closure due to Covid, the company enjoyed remarkable success with ticket sales continuing to grow and visitor numbers of circa 125,000 in 2022/ 23 and 2023/24.

 

The strategy is to continue the garden restoration project with enhanced interpretation and horticultural information plus talks and tours to further enhance the visitor experience. New menus have been introduced in the cafe with seasonal and local produce including that grown in the gardens included in many dishes. The renowned play area has been extended and embellished with new slides and an attractive new toddler area. Further enhancements to the cafe including a 'continental' style outdoor covered seating area with takeaway facilities are planned to increase the number of covers available and ease pressure on the main cafe.

 

Memberships and pre-purchasing marketing initiatives are ongoing.

 

The main risk is loss of key personnel and lack of staff during peak season trading. The directors have increased pay and marketed seasonal roles to local schools and colleges including transport resulting in a considerable reduction in vacancies.

 

The Company has a comfortable cash reserve and overheads are under tight control. On this basis the directors are optimistic that the company will meet its profit target this year and with the enhancements listed above believe that 2024/25 trading will also be successful.

 

Lowther Estates Limited (LEL)

The company has continued to concentrate on achieving planning permission for its stock of properties prior to their sale. This process has been protracted due to the introduction of stringent planning conditions but of !ate this is easing and applications are again being considered.

 

A number of properties have now been sold with the proceeds available to repay loan notes to Lowther Group Limited. A pipeline of sales is lined up for 2025/26 and beyond.

 

Lowther Group Ltd (LGL)

Lowther Group Limited has and will continue to repay the loan to its ultimate parent Lowther Estate Trust.

On behalf of the board

James Lowther
Director
10 June 2025
Lowther Group Ltd
Directors' report
For the year ended 30 September 2024
4

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

Principal activities

The principal activity of the company continued to be that of a holding company. Its subsidiaries are engaged in landscape and forestry contracting, property management, farming, retail and tourism.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £222,836. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

James Lowther
Peter Holt
Alastair Maxwell
Financial instruments
Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

The auditor Saffery LLP is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 auditor of the company 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 auditor of the company is aware of that information.

Lowther Group Ltd
Directors' report (continued)
For the year ended 30 September 2024
5
On behalf of the board
James Lowther
Director
10 June 2025
Lowther Group Ltd
Directors' responsibilities statement
For the year ended 30 September 2024
6

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Lowther Group Ltd
Independent auditor's report
To the members of Lowther Group Ltd
7
Opinion

We have audited the financial statements of Lowther Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group profit and loss account, 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).

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 group and parent 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 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

The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report 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.

 

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.

Lowther Group Ltd
Independent auditor's report (continued)
To the members of Lowther Group Ltd
8

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the 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.

 

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 parent 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 parent 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.

Lowther Group Ltd
Independent auditor's report (continued)
To the members of Lowther Group Ltd
9

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 are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.

 

Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

 

There are inherent limitations in the audit procedures described above and 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. Also, 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Lowther Group Ltd
Independent auditor's report (continued)
To the members of Lowther Group Ltd
10

Use of our report

This report is made solely to the parent 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 parent company's members those matters we are required to state to them in an auditors 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Sally Appleton (Senior Statutory Auditor)
For and on behalf of Saffery LLP
13 June 2025
Accountants
Statutory Auditors
10 Wellington Place
Leeds
LS1 4AP
Lowther Group Ltd
Group profit and loss account
For the year ended 30 September 2024
11
2024
2023
Notes
£
£
Turnover
3
15,126,283
16,451,718
Cost of sales
(10,161,957)
(10,381,424)
Gross profit
4,964,326
6,070,294
Administrative expenses
(3,538,808)
(4,308,426)
Other operating income
76,247
714,745
Operating profit
4
1,501,765
2,476,613
Profit share from partnership
(7,684)
-
Interest receivable and similar income
7
162,201
234,857
Interest payable and similar expenses
8
(126,303)
(201,060)
Profit before taxation
1,529,979
2,510,410
Tax on profit
9
(216,945)
(461,588)
Profit for the financial year
1,313,034
2,048,822
Profit for the financial year is all attributable to the owners of the parent company.
Lowther Group Ltd
Group statement of comprehensive income
For the year ended 30 September 2024
12
2024
2023
£
£
Profit for the year
1,313,034
2,048,822
Other comprehensive income
Revaluation of tangible fixed assets
-
0
4,047,306
Actuarial loss on defined benefit pension schemes
(378,000)
(180,000)
Tax relating to other comprehensive income
64,000
33,660
Other comprehensive income for the year
(314,000)
3,900,966
Total comprehensive income for the year
999,034
5,949,788
Total comprehensive income for the year is all attributable to the owners of the parent company.
Lowther Group Ltd
Group balance sheet
As at 30 September 2024
13
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
4,629,568
3,263,482
Investments
12
4,478,270
4,478,270
9,107,838
7,741,752
Current assets
Stocks
14
1,983,646
1,843,416
Debtors
15
5,399,896
5,595,422
Cash at bank and in hand
1,589,119
2,734,936
8,972,661
10,173,774
Creditors: amounts falling due within one year
16
(2,879,077)
(3,260,078)
Net current assets
6,093,584
6,913,696
Total assets less current liabilities
15,201,422
14,655,448
Creditors: amounts falling due after more than one year
17
-
(45,834)
Provisions for liabilities
Provisions
19
187,960
263,354
Deferred tax liability
20
156,807
267,803
(344,767)
(531,157)
Net assets excluding pension liability
14,856,655
14,078,457
Defined benefit pension liability
21
(2,000)
-
Net assets
14,854,655
14,078,457
Capital and reserves
Called up share capital
22
4,336,001
4,336,001
Revaluation reserve
4,047,306
4,047,306
Other reserves
(798,661)
(798,661)
Profit and loss reserves
7,270,009
6,493,811
Total equity
14,854,655
14,078,457

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

Lowther Group Ltd
Group balance sheet (continued)
As at 30 September 2024
14
The financial statements were approved by the board of directors and authorised for issue on 10 June 2025 and are signed on its behalf by:
10 June 2025
James Lowther
Director
Company registration number 11228959 (England and Wales)
Lowther Group Ltd
Company balance sheet
As at 30 September 2024
30 September 2024
15
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
4,776,001
4,776,001
Current assets
Debtors falling due after more than one year
15
2,342,173
2,188,331
Debtors falling due within one year
15
7,825
-
0
Cash at bank and in hand
114
144
2,350,112
2,188,475
Creditors: amounts falling due within one year
16
(550,177)
(753,494)
Net current assets
1,799,935
1,434,981
Net assets
6,575,936
6,210,982
Capital and reserves
Called up share capital
22
4,336,001
4,336,001
Profit and loss reserves
2,239,935
1,874,981
Total equity
6,575,936
6,210,982

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 £587,790 (2023 - £1,075,210 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 10 June 2025 and are signed on its behalf by:
10 June 2025
James Lowther
Director
Company registration number 11228959 (England and Wales)
Lowther Group Ltd
Group statement of changes in equity
For the year ended 30 September 2024
16
Share capital
Revaluation reserve
Reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
4,336,001
-
0
(798,661)
4,785,099
8,322,439
Year ended 30 September 2023:
Profit for the year
-
-
-
2,048,822
2,048,822
Other comprehensive income:
Revaluation of tangible fixed assets
-
4,047,306
-
-
4,047,306
Actuarial losses on defined benefit plans
-
-
-
(180,000)
(180,000)
Tax relating to other comprehensive income
-
-
0
-
33,660
33,660
Total comprehensive income for the year
-
4,047,306
-
1,902,482
5,949,788
Dividends
10
-
-
-
(193,770)
(193,770)
Balance at 30 September 2023
4,336,001
4,047,306
(798,661)
6,493,811
14,078,457
Year ended 30 September 2024:
Profit for the year
-
-
-
1,313,034
1,313,034
Other comprehensive income:
Actuarial losses on defined benefit plans
-
-
-
(378,000)
(378,000)
Tax relating to other comprehensive income
-
-
0
-
64,000
64,000
Total comprehensive income for the year
-
-
-
999,034
999,034
Dividends
10
-
-
-
(222,836)
(222,836)
Balance at 30 September 2024
4,336,001
4,047,306
(798,661)
7,270,009
14,854,655
Lowther Group Ltd
Company statement of changes in equity
For the year ended 30 September 2024
17
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
4,336,001
993,541
5,329,542
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
1,075,210
1,075,210
Dividends
10
-
(193,770)
(193,770)
Balance at 30 September 2023
4,336,001
1,874,981
6,210,982
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
587,790
587,790
Dividends
10
-
(222,836)
(222,836)
Balance at 30 September 2024
4,336,001
2,239,935
6,575,936
Lowther Group Ltd
Group statement of cash flows
For the year ended 30 September 2024
18
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,220,909
5,802,613
Interest paid
(10,303)
(10,052)
Income taxes paid
(361,317)
(707,416)
Net cash inflow from operating activities
849,289
5,085,145
Investing activities
Purchase of fixed asset investments
-
(4,229,325)
Purchase of intangible assets
-
(2,407)
Disposal of intangible fixed assets
-
67,866
Purchase of tangible fixed assets
(1,758,115)
(1,120,038)
Proceeds on disposal of tangible fixed assets
8,400
48,075
Other disposal of tangible fixed assets
598,060
Profit share from partnership
(7,684)
-
Interest received
26,201
24,857
Net cash used in investing activities
(1,731,198)
(4,612,912)
Financing activities
Repayment of bank loans
(41,072)
(201,466)
Payment of finance leases obligations
-
(7,363)
Dividends paid to equity shareholders
(222,836)
(193,770)
Net cash used in financing activities
(263,908)
(402,599)
Net (decrease)/increase in cash and cash equivalents
(1,145,817)
69,634
Cash and cash equivalents at beginning of year
2,734,936
2,665,302
Cash and cash equivalents at end of year
1,589,119
2,734,936
Lowther Group Ltd
Notes to the group financial statements
For the year ended 30 September 2024
19
1
Accounting policies
Company information

Lowther Group Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is Lowther Castle, Lowther, Penrith, Cumbria, CA10 2HH.

 

The group consists of Lowther Group Limited and all of its subsidiaries.

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 £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Lowther Group Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 September 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.

 

In 2018 the company acquired 100% of the share capital of Lowther Castle Limited, Lowther Park Farm Limited and Lowther Forestry Group Limited in a direct share for share exchange. The transaction was not an acquisition of a business but a group restructure whereby the Trustees of Lowther Estate Trust maintain the same interest in the newly formed Lowther Group Limited. Therefore the financial statements of Lowther Group Limited represent a continuation of the activities and operations of the Group previously held by Lowther Estate Trust. Accordingly, merger accounting has been used to account for this transaction as it meets the criteria as per Companies Act 2006 and FRS102.

 

The Group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
20
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. At the balance sheet date, the group had net current assets of £6,093,584 and net assets of £14,854,655 following a profit for the year of £1,313,034. The directors have assessed the upcoming 12 months and are confident that there is sufficient headroom to pay all liabilities as they fall due. They have also received confirmation from the trustees of the Lowther Estate Trust, the ultimate controlling party, of their continuing support should this be required.

 

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
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 of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), 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.

Revenue from contracts for the provision of landscaping and other services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Revenue from property sales is recognised when the significant risks and rewards of ownership have passed to the buyer, the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control of the property sold, 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.

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.

1.5
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.

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
21

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:

Freehold land and buildings
Nil
Leasehold land and buildings
2-20% straight line, 4-45 year straight line/over the term of lease
Plant and equipment
8-50% straight line, 33% reducing balance
Fixtures and fittings
10-50% straight line
Computers
20-33% straight line
Motor vehicles
10-50% straight line
Other fixed assets
2-25% straight line

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.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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.

1.7
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
22

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.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their 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.

1.9
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.

1.10
Financial instruments

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

Basic financial assets, which include debtors, 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.

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
23
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 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.

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 group 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

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.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
24
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 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

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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

1.13
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.14
Employee benefits

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.

1.15
Retirement benefits

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The costs are recognised as an expense in measuring profit or loss in the period.

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
25

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.16
Leases

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 leased 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.

1.17
Government grants

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.

2
Critical accounting judgements and key sources of estimation uncertainty

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.

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
2
Critical accounting judgements and key sources of estimation uncertainty (continued)
26
Key sources of estimation uncertainty

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.

Revenue recognition and amounts recoverable on long term contracts

The company recognises income on a stage by completion basis. Amounts recoverable on long term contracts is calculated on an input basis where the margins are consistent through the project with revenue matching costs incurred at each stage. Judgement is used when estimating accounts recoverable on long term contracts and the completion of each stage.

Provisions

The company enters into contracts for tree planting containing remediation commitments to replant within a certain period if the trees do not establish satisfactorily. Estimates are made by the directors based on historic experience of the economic outflows that may arise under these contracts.

Provision for doubtful debts

The company makes an estimate of the recoverable value of trade and other debtors. The company uses estimates based on historical experience in determining the level of debts, which the company believes, will not be collected. These estimates include such factors as the credit rating of the debtor, the ageing profile of debtors and historical experience. Any significant change in the level of customers that default on payments or significant improvements that resulted in a change in the level of bad debt provision would have an impact on the operating results. The level of provision required is reviewed on an ongoing basis.

Pension asset/(liability)

The present value of the defined benefit pension liability depends on a number of factors that are determined on an actuarial basis using a number of assumptions, including discount rates. Any changes in these assumptions will impact on the carrying value of the pension liability.

 

When the scheme is estimated to be in surplus, the recoverability of the asset is assessed with reference to future deficit contributions. If the actuarial advice is to continue to fund the pension scheme at the same or an increased level, then the directors do not deem the asset recoverable via reduced contributions and do not recognise this in the financial statements.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Forestry contract income
13,008,244
12,640,252
Lowther Castle income
2,033,677
2,042,134
Lowther Park Farm income
-
1,052,983
Property sales
84,362
716,349
15,126,283
16,451,718
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
15,126,283
16,451,718
Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
3
Turnover and other revenue (continued)
27
2024
2023
£
£
Other revenue
Interest income
162,201
234,857
Grants received
-
609,671
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(609,671)
Depreciation of owned tangible fixed assets
375,681
348,143
Profit on disposal of tangible fixed assets
(8,241)
(34,600)
Amortisation of intangible assets
-
83,242
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 group and company
4,100
3,000
Audit of the financial statements of the company's subsidiaries
27,500
29,900
31,600
32,900
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
5
2
-
2
Employees
111
100
-
-
Total
116
102
-
0
2
Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
6
Employees (continued)
28

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,107,158
3,204,859
-
0
-
0
Social security costs
344,821
352,988
-
-
Pension costs
241,521
169,878
-
0
-
0
3,693,500
3,727,725
-
0
-
0
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
23,667
24,781
Interest on the net defined benefit asset
136,000
210,000
Other interest income
2,534
76
Total income
162,201
234,857
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
23,667
24,781
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
-
12,852
Other finance costs:
Interest on finance leases and hire purchase contracts
-
208
Net interest on the net defined benefit liability
116,000
188,000
Other interest
10,303
-
Total finance costs
126,303
201,060
Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
29
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
273,499
445,047
Adjustments in respect of prior periods
(15,774)
23,417
Total current tax
257,725
468,464
Deferred tax
Origination and reversal of timing differences
(40,780)
(28,856)
Adjustment in respect of prior periods
-
0
21,980
Total deferred tax
(40,780)
(6,876)
Total tax charge
216,945
461,588

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
1,529,979
2,510,410
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
382,495
552,541
Tax effect of expenses that are not deductible in determining taxable profit
2,702
7,446
Tax effect of income not taxable in determining taxable profit
1,286
(7,321)
Adjustments in respect of prior years
(15,774)
23,417
Group relief
(11,175)
-
0
Permanent capital allowances in excess of depreciation
-
0
(60,771)
Other non-reversing timing differences
767
-
0
Under/(over) provided in prior years
(30,500)
-
0
Deferred tax adjustments in respect of prior years
(114,078)
(61,951)
Difference in deferred tax rate
-
0
21,415
Other tax adjustments
1,222
(13,188)
Taxation charge
216,945
461,588
Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
9
Taxation (continued)
30

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
(64,000)
(33,660)
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
222,836
193,770
Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
31
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Other fixed assets
Total
£
£
£
£
£
£
£
£
£
Cost
At 1 October 2023
273,235
2,689,614
274,760
1,431,027
300,529
45,014
1,169,424
160,352
6,343,955
Additions
1,009,479
-
0
204,326
177,963
8,432
161,682
73,736
122,497
1,758,115
Disposals
-
0
(5,388)
-
0
(29,950)
(11,401)
(647)
(50,240)
(10,591)
(108,217)
Transfers
-
0
-
0
(349,276)
-
0
-
0
154,529
-
0
194,747
-
0
At 30 September 2024
1,282,714
2,684,226
129,810
1,579,040
297,560
360,578
1,192,920
467,005
7,993,853
Depreciation and impairment
At 1 October 2023
-
0
1,097,977
-
0
903,144
156,014
42,118
853,532
27,688
3,080,473
Depreciation charged in the year
-
0
69,202
-
0
120,653
46,557
10,563
117,231
11,475
375,681
Eliminated in respect of disposals
-
0
(2,320)
-
0
(29,950)
(11,211)
-
0
(43,992)
(4,396)
(91,869)
At 30 September 2024
-
0
1,164,859
-
0
993,847
191,360
52,681
926,771
34,767
3,364,285
Carrying amount
At 30 September 2024
1,282,714
1,519,367
129,810
585,193
106,200
307,897
266,149
432,238
4,629,568
At 30 September 2023
273,235
1,591,637
274,760
527,883
144,515
2,896
315,892
132,664
3,263,482
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
32
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
4,776,001
4,776,001
Unlisted investments
4,478,270
4,478,270
-
0
-
0
4,478,270
4,478,270
4,776,001
4,776,001
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 October 2023 and 30 September 2024
4,478,270
Carrying amount
At 30 September 2024
4,478,270
At 30 September 2023
4,478,270
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
4,776,001
Carrying amount
At 30 September 2024
4,776,001
At 30 September 2023
4,776,001
13
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
13
Subsidiaries (continued)
33
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Lowther Castle Limited
Lowther Castle, Lowther, Penrith, Cumbria, CA10 2HH
Ordinary
100.00
Lowther Forestry Group Limited
Lowther Castle, Lowther, Penrith, Cumbria, CA10 2HH
Ordinary
100.00
Lowther Park Farms Limited
Lowther Castle, Lowther, Penrith, Cumbria, CA10 2HH
Ordinary
100.00
Lowther Estates Limited
Lowther Castle, Lowther, Penrith, Cumbria, CA10 2HH
Ordinary
100.00
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
1,875,903
1,762,476
-
-
Finished goods and goods for resale
107,743
80,940
-
0
-
0
1,983,646
1,843,416
-
-
Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
34
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,391,014
2,540,674
-
0
-
0
Gross amounts owed by contract customers
1,118,551
724,265
-
0
-
0
Corporation tax recoverable
21,711
66,827
-
0
-
0
Amounts owed by participating interest
185,381
625,000
7,825
-
Other debtors
298,382
213,668
-
0
-
0
Prepayments and accrued income
199,806
153,152
-
0
-
0
4,214,845
4,323,586
7,825
-
Deferred tax asset (note 20)
41,692
47,908
-
0
-
0
4,256,537
4,371,494
7,825
-
Amounts falling due after more than one year:
Trade debtors
55,893
136,462
-
0
-
0
Amounts owed by group undertakings
-
-
1,254,707
1,100,865
Amount owed by related parties
1,087,466
1,087,466
1,087,466
1,087,466
1,143,359
1,223,928
2,342,173
2,188,331
Total debtors
5,399,896
5,595,422
2,349,998
2,188,331
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
54,762
50,000
-
0
-
0
Trade creditors
957,767
1,210,339
12,968
12,908
Amounts owed to group undertakings
-
0
-
0
493,091
730,000
Amounts owed to participating interest
500
5,766
500
5,266
Corporation tax payable
173,957
322,665
38,318
-
0
Other taxation and social security
252,544
312,543
-
-
Other creditors
60,575
66,131
-
0
-
0
Accruals and deferred income
1,378,972
1,292,634
5,300
5,320
2,879,077
3,260,078
550,177
753,494

Included in creditors due within one year is £50,000 (2023 - £50,000) relating to the Coronavirus Business Interruption Loan. The loan is secured by way of a fixed charge debenture over the assets of the Group.

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
35
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
-
0
45,834
-
0
-
0

Included in creditors due more than after one year is £nil (2023 - £45,834) relating to the Coronavirus Business Interruption Loan. The loan is secured by way of a fixed charge debenture over the assets of the Group.

18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
54,762
95,834
-
0
-
0
Payable within one year
54,762
50,000
-
0
-
0
Payable after one year
-
0
45,834
-
0
-
0
19
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Remediation provision
187,960
263,354
-
-
Movements on provisions:
Remediation provision
Group
£
At 1 October 2023
263,354
Other movements
(75,394)
At 30 September 2024
187,960

The company enters into contracts for tree planting containing remediation commitments to replant within a certain period if the trees do not establish satisfactorily. Estimates are made based on historic experience of the economic outflows that may arise under these contracts.

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
36
20
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
156,807
267,803
41,692
47,908
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
219,895
-
Credit to profit or loss
(150,593)
-
Effect of change in tax rate - profit or loss
45,813
-
Liability at 30 September 2024
115,115
-

The deferred tax liability set out above is expected to reverse within 12 months and relates mainly to accelerated capital allowances that are expected to mature within the same period.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
143,521
65,798

A defined contribution pension scheme is operated for certain employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
21
Retirement benefit schemes (continued)
37
Defined benefit schemes

The company operates a defined benefit scheme.

 

Pension arrangements for the Company's directors and senior employees are managed by the 'Lakeland Investments Limited (1976) Retirement Fund'. Up to 1 June 2016 this fund was deemed a multi employer scheme under the provisions of Financial Reporting Standard 17 'Retirement Benefits'.

 

The individual company's pension obligations under the fund of defined benefits regulated by statute, with members making fixed percentage contributions of their remuneration. Employer contributions are set by the fund's consulting actuary at a sufficient level to cover the balance of the cost and are charged to the accounts annually.

 

The fund is subject to a triennial actuarial valuation. The last triennial actuarial valuation was as at 31 May 2021. At that date, there was a surplus in the funding of £860,000 on the Statutory Funding Objective (SFO) basis. This represented a funding level of 111%.

 

Following completion of the 2015 valuation, the Scheme actuary recommended monthly contributions amounting to £200,000 per annum, to be paid by the participating Employers from 1 June 2016 to 31 May 2021. During the period it was agreed by the employers within the group plan to split the shortfall in funding on a revised basis so that contributions are as follows:

 

 

The split of total contributions between the participating Employers may differ to those set out above providing that the total combined contributions are no less that £200,000 per annum.

 

Due to the agreement to make contributions as above under the provisions of FRS 102 this constitutes a group pension plan.

 

The total contributions of £200,000 per annum comprise £100,000 in respect of the shortfall in funding calculated in accordance with the Recovery Plan dated 22 April 2016, £70,000 per annum in respect of assumed ongoing Scheme expenses and an allowance of £30,000 in respect of the assumed PPF levy.

 

The employers can make contributions in excess of those given above at any time.

2024
2023
Key assumptions
%
%
Discount rate
5.1
5.5
Expected rate of increase of pensions in payment
3.1
3.3
Expected rate of salary increases
2.5
2.6
Proportion of employees opting for early retirement
3.1
3.3
Inflation assumption
2.5
2.6
Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
21
Retirement benefit schemes (continued)
38
Mortality assumptions
2024
2023

Assumed life expectations on retirement at age 65:

Years
Years
For a male or female aged 65 now
- Males
21.4
21.4
- Females
23.9
23.9
At 65 for a male or female aged 45 now
- Males
22.6
22.6
- Females
25.3
25.3

As the directors do not deem the pension scheme asset of £185,000 (2022: £328,000) to be recoverable, the actual return on assets has been restricted by the movement on the unrecognised asset of £143,000 to bring the overall position of the pension scheme to £nil on the balance sheet.

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2024
2023
Group
£
£
Present value of defined benefit obligations
2,235,000
2,156,000
Fair value of plan assets
(2,233,000)
(2,156,000)
Deficit in scheme
2,000
-
The company had no post employment benefits at 30 September 2024 or 1 October 2023.
Group
2024
2023

Amounts recognised in the profit and loss account

£
£
Net interest on net defined benefit liability/(asset)
(20,000)
4,000
Other costs and income
98,000
80,000
Total costs
78,000
84,000
Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
21
Retirement benefit schemes (continued)
39
Group
2024
2023

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
188,000
(347,000)
Less: calculated interest element
136,000
73,000
Return on scheme assets excluding interest income
324,000
(274,000)
Actuarial changes related to obligations
54,000
63,000
Total costs/(income)
378,000
(211,000)
Group
2024

Movements in the present value of defined benefit obligations

£
Liabilities at 1 October 2023
3,487,000
Liabilities disposed by way of group restructure
(1,331,000)
Benefits paid
(91,000)
Actuarial gains and losses
54,000
Interest cost
116,000
At 30 September 2024
2,235,000

The defined benefit obligations arise from plans which are wholly or partly funded.

Group
2024

Movements in the fair value of plan assets

£
Fair value of assets at 1 October 2023
3,487,000
Assets disposed by way of group restructure
(1,331,000)
Interest income
136,000
Return on plan assets (excluding amounts included in net interest)
(324,000)
Benefits paid
(91,000)
Contributions by the employer
454,000
Other
(98,000)
At 30 September 2024
2,233,000
Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
21
Retirement benefit schemes (continued)
40

Fair value of plan assets at the reporting period end

Group
Group
2024
2023
£
£
LDI/cash
49,000
72,000
Buy-out aware funds
-
2,084,000
2,184,000
-
2,233,000
2,156,000
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,336,001
4,336,001
4,336,001
4,336,001
23
Reserves

Merger Reserve

 

This reserve is created on consolidation in line with merger accounting and records the adjustment required to eliminate all subsidiary investments in the group.

 

Profit and loss account

 

This reserve records retained earnings and accumulated losses.

24
Operating lease commitments
Lessee

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:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
23,056
42,356
-
-
Between two and five years
37,522
56,830
-
-
60,578
99,186
-
-
Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
41
25
Related party transactions

The group has taken advantage of FRS 102 section 33.1A exemption from disclosing transactions with group undertakings where 100% of the voting rights are held within the group.

 

During the year the group entered into several transactions with the Lowther Estates Trust, a trust in which a director is also a trustee. Sales totalling £9,565 and purchases totalling £222,836 were made between the group and Lowther Estate Trust. The net amount owed by the group to the trust was £8,684. The amounts are interest free, unsecured and repayable on demand.

 

The group leases Lowther Castle from Lowther Castle and Gardens Trust, an unincorporated entity under common control, for a peppercorn rent.

 

During the year sales totalling £1,130,377 and purchases totalling £591,751 were made between the group and Lowther Farming Partnership. At the year end £118,809 was owed by and £15,688 was owed to Lowther Farming Partnership.

 

Additionally, £60,500 was owed from Lowther Farming Partnerships in respect of a loan which was originally in place with Lowther Park Farms, previously a 100% group company, and has subsequently transferred to Lowther Farming Partnerships.

 

During the year purchases totalling £886 were made between the company and JN Lowther Holdings Limited. At the year end £49 was owed to JN Lowther Holdings Limited.

 

 

 

26
Controlling party

The share capital of Lowther Group Limited is registered in the name of L.E.T. Nominees 1 Limited, which holds the shares as nominee for the Lowther Estate (1992) Trust.

Lowther Group Ltd
Notes to the group financial statements (continued)
For the year ended 30 September 2024
42
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,313,034
2,048,822
Adjustments for:
Profit share from partnership
7,684
-
Taxation charged
216,945
461,588
Finance costs
126,303
201,060
Investment income
(162,201)
(234,857)
Gain on disposal of tangible fixed assets
(8,241)
(34,600)
Fair value loss on properties
-
4,047,306
Amortisation and impairment of intangible assets
-
83,242
Depreciation and impairment of tangible fixed assets
375,681
348,143
Pension scheme non-cash movement
(356,000)
(161,008)
Decrease in provisions
(75,394)
(118,546)
Movements in working capital:
(Increase)/decrease in stocks
(140,230)
758,327
Decrease in debtors
144,194
249,526
Decrease in creditors
(237,056)
(1,846,390)
Cash generated from operations
1,204,719
5,802,613
28
Analysis of changes in net funds - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
2,734,936
(1,145,817)
1,589,119
Borrowings excluding overdrafts
(95,834)
41,072
(54,762)
2,639,102
(1,104,745)
1,534,357
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