REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
FOR |
PENZANCE LEISURE LIMITED |
REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
FOR |
PENZANCE LEISURE LIMITED |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2024 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 4 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
PENZANCE LEISURE LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 December 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
BANKERS: |
1 Churchill Place |
London |
E14 5HP |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 December 2024 |
The directors present their report with the financial statements of the company for the year ended 31 December 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company is to operate the leisure facility under a PFI contract. |
REVIEW OF BUSINESS |
The profit for the year, after tax, amounted to £75,102 (2023: £366,524) |
No dividend will be paid this year (2023 - NIL). |
DIRECTORS |
Other changes in directors holding office are as follows: |
GOING CONCERN |
The financial statements have been prepared on a going concern basis because the company is continuing to operate in accordance with the financial model of the PFI contract. This indicates that the company will continue as a going concern until the cessation of the contract on 31st August 2036. |
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS |
The company has provided qualifying third party indemnity provisions in respect of the board of directors which were in force during the year and at the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing 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. |
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in the Directors Reports may differ from legislation in other jurisdictions. |
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. |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 December 2024 |
AUDITORS |
The auditors, Fairhurst Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PENZANCE LEISURE LIMITED |
Opinion |
We have audited the financial statements of Penzance Leisure Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, 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 2024 and of its profit 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PENZANCE LEISURE 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 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; or |
- | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 |
PENZANCE LEISURE 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 the audit was considered capable of detecting irregularities, including fraud |
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with those laws and regulations identified during the audit. |
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, and to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate testing and to respond appropriately to fraud or suspected fraud identified during the audit. |
However, it is the primary responsibility of management, with the oversight of those charges with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: |
- | obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with that framework; |
- | enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instance of fraud; |
- | discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
As a result of these procedures we consider that the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliance with may have a material impact on the financial statements which included reviewing financial disclosures, inspecting correspondence with local tax offices and evaluation advice received from external tax advisors. |
The audit engagement team identified the risk of management override of controls and the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed include, but were not limited to, testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant unusual transactions entered into outside the normal course of business. |
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 |
PENZANCE LEISURE 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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
INCOME STATEMENT |
for the Year Ended 31 December 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
TURNOVER |
Administrative expenses |
OPERATING PROFIT | 5 |
Income from fixed asset investments |
Interest receivable and similar income |
136,219 | 116,680 |
552,812 | 828,619 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 December 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Cash flow hedge |
Income tax relating to other comprehensive income |
( |
) |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
STATEMENT OF FINANCIAL POSITION |
31 December 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Cash flow hedge reserves | 17 | ( |
) | ( |
) |
Profit and loss account | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 December 2024 |
Called up | Profit | Cash flow |
share | and loss | hedge | Total |
capital | account | reserves | equity |
£ | £ | £ | £ |
Balance at 1 January 2023 | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2024 | ( |
) |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2024 |
1. | GENERAL INFORMATION |
Penzance Leisure Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below, and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland for smaller entities and the Companies Act 2006. |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3). |
Going concern |
The financial statements have been prepared on a going concern basis notwithstanding the deficiency of net assets because the company is continuing to operate in accordance with the financial model of the PFI contract. This indicates that the company will continue to operate until the cessation of the contract on 31st August 2036. |
On this basis and having considered the company's budget and cash flow forecasts, the directors consider that the company has adequate resources to continue in operational existence for the foreseeable futures, being a period of not less than 12 months from the date of approval of these financial statements, and therefore adopt the going concern basis in preparing the accounts. |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Rendering of services |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all the following conditions are satisfied: |
i. | the amount of revenue can be measured reliably; |
ii. | it is probable that the Company will receive the consideration due under the contract; |
iii. | the stage of completion of the contract at the end of the contract can be measured reliably; and |
iv. | the costs incurred and the costs to complete the contract can be reliably measured. |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method. |
Depreciation is provided on the following basis: |
Buildings | - straight line over the remaining project life |
Fixtures & fittings | - 6 years straight line |
Start up costs | - straight line over the remaining project life |
The assets residual values, useful lives and depreciation method are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income. |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangement entered into. |
A financial liability exists where there is a contractual obligation to deliver cash or another financial asset to another entity, or to exchange financial assets or financial liabilities under potentially unfavourable conditions. In addition, contracts which result in the entity delivering a variable number of its own equity instruments are financial liabilities. Shares containing such obligations are classified as financial liabilities. |
An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Dividends and distributions relating to equity instruments are debited directly to reserves. |
Financial instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash, or other consideration, expected to be paid or received. |
Financial instruments that constitute a financing transaction are measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument. |
Finance costs are charged to the profit and loss over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss. |
Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet when there is an 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. |
The company holds derivative financial instruments in the form of interest rate swaps. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in the profit and loss as appropriate, unless they are included in a hedging arrangement. |
The company applies hedge accounting for transactions entered into to manage the risk of variability in cash flows due to changes in interest rates. Interest rate swaps are held to manage the exposure to variability in forecast interest payment on bank borrowings due to changes in LIBOR and are designated as cash flow hedges. |
Changes in the fair values of derivatives designated as cash flow hedges, and which are effective, are recognised directly in equity. Any ineffectiveness in the hedging relationship (being the excess of the cumulative change in the fair value of the hedging instrument since the inception of the hedge over the cumulative change in the fair value of the hedged item since inception of the hedge) is recognised in profit and loss. |
The gain or loss recognised in other comprehensive income is reclassified to the profit and loss account when the hedge relationship ends. Hedge accounting is discounted when the hedging instrument expires, no longer meets the hedging criteria, the forecast transaction is no longer highly probable, the hedged debt instrument is de recognised or the hedging instrument is terminated. |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
3. | CRITICAL ACCOUNTING JUDGEMENTS & KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the Company's accounting policies, which are described in note 2, the Directors are required to make judgements, estimates and assumptions about the carrying amounts 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 assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are reflected in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. |
- | Derivative financial instruments - the Company uses hedging instruments to reduce exposure to interest rate movements. These instruments are remeasured to their fair value at each reporting date with reference to third party valuations provided by the issuing party and relevant external information in respect of the instrument. There is uncertainty in estimates of future interest rates, which can be affected by global events. The full policy can be found within the financial instruments accounting policy in note 2. |
4. | EMPLOYEES AND DIRECTORS |
The company has no employees other than its directors. The company paid £19,189 (2023 - £19,770) to Equitix Leisure Limited in respect of Directors Fees. |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2024 |
6. | AUDITORS' REMUNERATION |
Fees payable to the company's auditor for the audit of the company's annual financial statements totalled £4,375 (2023: £4,249). |
Fees payable to the company's auditor for corporate tax services totalled £611 (2023 : £612). |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Deferred arrangement costs |
Subordinate loan interest |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Adjustment re prior periods | 39,855 | (23,446 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 25% (2023 - 23.52%). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( |
) |
Current year movement in deferred tax | (71 | ) | (1,493 | ) |
Prior year adjustment re corporation tax | 39,855 | (23,446 | ) |
Adjustments to deferred tax charge in respect of previous periods | - | 5,247 |
Capitalised expenditure allowable | - | (1,396 | ) |
Total tax charge | 97,284 | 87,687 |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2024 |
8. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Cash flow hedge | (54,340 | ) | 163,019 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Cash flow hedge | (12,288 | ) | 36,866 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Start up | and |
Buildings | costs | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2024 |
Additions |
At 31 December 2024 |
DEPRECIATION |
At 1 January 2024 |
Charge for year |
At 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
Finance costs are included in tangible fixed assets to the value of £170,930 (2023: £185,581). |
10. | FIXED ASSET INVESTMENTS |
Investments (neither listed nor unlisted) were as follows: |
2024 | 2023 |
£ | £ |
Investment in preference share | 741,673 | 741,673 |
The investment represents 741,673 12% non-redeemable £1 preference shares in Leisureplan Projects Finance Limited. These shares do not entitle the holder to attend or vote at general meetings of Leisureplan Projects Finance Limited. |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2024 |
11. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 14) |
Subordinate loan (see note 14) |
Tax |
Social security and other taxes |
Accruals and deferred income |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 14) |
Subordinate loan (see note 14) |
Financial instruments | 185,143 | 402,502 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 2,642,657 | 3,109,091 |
Subordinated loan | 232,368 | 325,519 |
2,875,025 | 3,434,610 |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued |
Hedge accounting |
An interest rate swap is held to manage the exposure to fluctuations in interest rates. Hedge accounting is applied and the hedge is designated as a cash flow hedge. |
The interest rate swap had a market valuation as at 31st December 2024 amounting to a liability of £185,143 (2023: £402,502). During 2024, a gain of £217,359 (2023: £49,154) was recognised in other comprehensive income for changes in the fair value of the interest rate swap. |
The fair value of the interest rate swap is based on a valuation using the mark to market value and a pricing model and method as calculated by Sumitomo Mitsui Banking Corporation, with whom the swap is held. |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Subordinated loan |
Amounts falling due between one and two years: |
Bank loans |
Subordinated loan | 53,230 |
Amounts falling due between two and five years: |
Bank loans |
Subordinated loan |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 2,642,657 | 3,109,091 |
Subordinated loan | 232,368 | 325,519 |
2,875,025 | 3,434,610 |
The bank loan is secured on the property and bears interest at 5.733%. The subordinated loan is unsecured and bears interest at 12.7%. The bank loan and subordinated loan will be repaid over the period until 2034. |
Deferred arrangement costs are included and capitalised against the bank loan to the value of £151,137 (2023: £165,306). |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2024 |
15. | PROVISIONS FOR LIABILITIES |
The deferred tax liability is made up as follows : |
2023 |
£ |
Balance at 1 January 2023 | 260,740 |
Other comprehensive income | 12,288 |
Charge to profit and loss | 3,754 |
276,782 |
2023 | 2022 |
£ | £ |
Accelerated capital allowances | 378,618 | 396,358 |
Short term timing differences | (1,210 | ) | (22,704 | ) |
Tax on OCI | (100,626 | ) | (112,914 | ) |
276,782 | 260,740 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary shares | £1 | 320,000 | 320,000 |
17. | RESERVES |
Profit | Cash flow |
and loss | hedge |
account | reserves | Totals |
£ | £ | £ |
At 1 January 2024 | ( |
) | 232,564 |
Profit for the year | - |
Change in fair value of hedge | - | 217,359 | 217,359 |
Tax in respect of items of OCI | - | (54,340 | ) | (54,340 | ) |
At 31 December 2024 | ( |
) | 470,685 |
Cash flow hedge reserve |
Comprises the aggregate movements of the fair value of derivatives designated as cash flow hedges, which are effective, adjusted for deferred tax. The transfer between reserves is a correction to a prior period movement. |
Profit and loss account |
Includes all current and prior period profit and losses |
18. | RELATED PARTY DISCLOSURES |
As a wholly owned subsidiary of Leisureplan Investments Limited, the company is exempt from the requirement to disclose details of transactions with other wholly owned subsidiaries of that company. |
PENZANCE LEISURE LIMITED (REGISTERED NUMBER: 04351391) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2024 |
19. | ULTIMATE CONTROLLING PARTY |
The parent undertaking is Leisureplan Investments Limited, and the immediate parent undertaking is Penzance Holdings Limited, both of which are incorporated in England and Wales. |
Leisureplan Investments Limited has one shareholder, being Equitix Leisure Limited (whose ultimate parent undertaking and controlling party is Equitix Fund I LP). |
Consolidated accounts are available from 3rd Floor (South), 200 Aldersgate Street, London, EC1A 4HD. |