Saddlebrook (Holdings) Limited Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: 12337443

Saddlebrook (Holdings) Limited

Audited Consolidated Financial Statements

For the year ended

31 July 2024

Saddlebrook (Holdings) Limited

Audited Consolidated Financial Statements

Year ended 31 July 2024

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Consolidated statement of comprehensive income	10

Consolidated statement of financial position	11

Company statement of financial position	12

Consolidated statement of changes in equity	13

Company statement of changes in equity	14

Consolidated statement of cash flows	15

Notes to the audited consolidated financial statements	16

Saddlebrook (Holdings) Limited

Officers and Professional Advisers

The board of directors	Mr G P Mayo
	Mrs S Mayo

Registered office	2 Oldfield Road
	Bocam Park
	Bridgend
	CF35 5LJ

Auditor	Xeinadin Audit Limited
	Chartered accountants & statutory auditor
	(Statutory Auditor)
	Suite 2D, Building 1
	Eastern Business Park
	St. Mellons
	Cardiff
	CF3 5EA

Saddlebrook (Holdings) Limited

Strategic Report

Year ended 31 July 2024

Review of business

During the year, turnover remained fairly consistent with the previous year, despite the hospitality sector as a whole experiencing a challenging economic market. The resort managed to keep tight control over its direct costs, achieving a gross profit in line with the 2023 results. However, the overall results this year were impacted by additional administration expenses. These expenses were driven by several decisions made regarding the resorts operating strategy, including: - Non-Capital Investment in Facilities: £142,000 of costs were incurred on non-capital works to the property. These works were associated with expanding the accommodation capacity whilst also continuing to provide the best possible facilities to guest experiences and secure its continued dominance in the locality. - Staff Costs: Staff costs increased by £124,000. The resort has implemented changes to ensure competitive salaries and increased pension contributions. As an entity that gains from retention, and development of experienced staff the resort believes it's important to have an appropriate remuneration package in place. While most of the impact this year was due to decisions made, the results were also adversely affected by additional utility costs of £50,000. This was due to a contract coming to an end without a replacement negotiated. Management has now addressed this issue and negotiated a contract that will significantly improve costs in 2025. From a balance sheet perspective, the capital element of the above-noted works increased the fixed assets held at the year-end. Part of these works was to a property that will generate an additional income stream for the business in the coming years and strengthen the current offering. A combination of these factors, along with the decision to redeem a significant principle business loan (£725,533), led to reduced cash at the year-end. It's believed that the cash flow utilised in the short term this year for works and repayments contributed to this reduction. This investment will have a long-term beneficial impact due to reduced interest rates and an additional income stream.

Principal risks and uncertainties

A risk management process is regularly reviewed to ensure appropriate actions are taken to monitor and mitigate risks. External risks include the impact of the general economic climate on golf and leisure membership, as well as hotel occupancy levels. The company's strategy to mitigate these risks involves offering a range of price options within the resort and continuing to identify and drive new business through a structured marketing campaign. The company uses financial instruments such as borrowings, cash, and other liquid resources, as well as trade debtors and creditors arising directly from its operations. These instruments are used to raise finance for the company's operations. The main risks associated with these instruments are interest rate risk and liquidity risk. The directors actively manage key business risks through appropriate business strategies delivered by a competent and efficient management team. The company has improved its ability to service debt and reduced its trading risk.

Future developments

The resort has continued to invest in expansion works to complete the added accommodation noted above which launch's September 2025.

This report was approved by the board of directors on 4 September 2025 and signed on behalf of the board by:

Mr G P Mayo

Director

Registered office:

2 Oldfield Road

Bocam Park

Bridgend

CF35 5LJ

Saddlebrook (Holdings) Limited

Directors' Report

Year ended 31 July 2024

The directors present their report and the Audited consolidated financial statements of the group for the year ended 31 July 2024 .

Directors

The directors who served the company during the year were as follows:

Mr G P Mayo
Mrs S Mayo

Mrs Sara Mayo was appointed as director on 14 March 2023.

Dividends

Particulars of recommended dividends are detailed in note 12 to the Audited consolidated financial statements.

Future developments

There are no significant future developments to report for the group or the company.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the Audited consolidated financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare Audited consolidated financial statements for each financial year. Under that law the directors have elected to prepare the Audited consolidated 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 Audited consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these Audited consolidated financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the Audited consolidated 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 Audited consolidated 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.

This report was approved by the board of directors on 4 September 2025 and signed on behalf of the board by:

Mr G P Mayo

Director

Registered office:

2 Oldfield Road

Bocam Park

Bridgend

CF35 5LJ

Saddlebrook (Holdings) Limited

Independent Auditor's Report to the Members of Saddlebrook (Holdings) Limited

Year ended 31 July 2024

Opinion

We have audited the Audited consolidated financial statements of Saddlebrook (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the Audited consolidated financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 31 July 2024 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the audited consolidated financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the Audited consolidated 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 Audited consolidated financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the Audited consolidated 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 or the parent company's ability to continue as a going concern for a period of at least twelve months from when the Audited consolidated financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the Audited consolidated financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the Audited consolidated 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 Audited consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Audited consolidated 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 there is a material misstatement in the Audited consolidated financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' report for the financial year for which the Audited consolidated financial statements are prepared is consistent with the Audited consolidated financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company Audited consolidated financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the Audited consolidated 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 Audited consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Audited consolidated financial statements, the directors are responsible for assessing the group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the audited consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the Audited consolidated 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 Audited consolidated financial statements. 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law, health and safety, and UK tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. - We understood how the Group is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary. - The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area. - We assessed the susceptibility of the Group financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: - Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; - Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; - Challenging assumptions and judgments made by management in its significant accounting estimates; and - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the Audited consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Audited consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the Audited consolidated financial statements, including the disclosures, and whether the Audited consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated Audited consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Tania Cregg FCCA

(Senior Statutory Auditor)

For and on behalf of

Xeinadin Audit Limited

Chartered accountants & statutory auditor

(Statutory Auditor)

Suite 2D, Building 1

Eastern Business Park

St. Mellons

Cardiff

CF3 5EA

4 September 2025

Saddlebrook (Holdings) Limited

Consolidated Statement of Comprehensive Income

Year ended 31 July 2024

		2024	2023
Note		£	£
Turnover	4	4,305,260	4,341,721

Cost of sales	848,348	912,888
	------------	------------
Gross profit	3,456,912	3,428,833

Administrative expenses		3,080,366	3,039,158
Other operating income	5	25,506	78,822
		------------	------------
Operating profit	6	402,052	468,497

Interest payable and similar expenses	10	107,419	96,894
		------------	------------
Profit before taxation		294,633	371,603

Tax on profit	11	50,855	52,052
		---------	---------
Profit for the financial year and total comprehensive income		243,778	319,551
		---------	---------

Profit for the financial year attributable to:

The owners of the parent company	195,598	149,551
Non-controlling interests	48,180	170,000
	---------	---------
	243,778	319,551
	---------	---------

All the activities of the group are from continuing operations.

Saddlebrook (Holdings) Limited

Consolidated Statement of Financial Position

31 July 2024

	2024	2023
Note	£	£

Fixed assets

Intangible assets	13	115,874	136,323
Tangible assets	14	6,944,783	6,435,390
		------------	------------
		7,060,657	6,571,713

Current assets

Stocks	16	55,192	52,403
Debtors	17	439,942	1,097,450
Cash at bank and in hand		189,186	742,431
		---------	------------
		684,320	1,892,284

Creditors: amounts falling due within one year	18	3,627,461		2,426,902
		------------		------------
Net current liabilities			2,943,141	534,618
			------------	------------
Total assets less current liabilities			4,117,516	6,037,095

Creditors: amounts falling due after more than one year	19		916,580	3,113,468

Provisions

Taxation including deferred tax	21	110,316	76,783
		------------	------------
Net assets		3,090,620	2,846,844
		------------	------------

Capital and reserves

Called up share capital	24	2	2
Profit and loss account	25	746,300	550,702
		---------	---------
Equity attributable to the owners of the parent company		746,302	550,704

Non-controlling interests	2,344,318	2,296,140
	------------	------------
	3,090,620	2,846,844
	------------	------------

These Audited consolidated financial statements were approved by the board of directors and authorised for issue on 4 September 2025 , and are signed on behalf of the board by:

Mr G P Mayo

Director

Company registration number: 12337443

Saddlebrook (Holdings) Limited

Company Statement of Financial Position

31 July 2024

	2024	2023
Note	£	£

Fixed assets

Investments	15		2,020,000	2,020,000

Current assets

Debtors	17	1,549		76,699

Creditors: amounts falling due within one year	18	1,963,457		315,153
		------------		---------
Net current liabilities			1,961,908	238,454
			------------	------------
Total assets less current liabilities			58,092	1,781,546

Creditors: amounts falling due after more than one year	19	–	1,723,304
		--------	------------
Net assets		58,092	58,242
		--------	------------

Capital and reserves

Called up share capital	24	2	2
Profit and loss account	25	58,090	58,240
		--------	--------
Shareholders funds		58,092	58,242
		--------	--------

The loss for the financial year of the parent company was £ 150 (2023: £ 40,000 profit).

These Audited consolidated financial statements were approved by the board of directors and authorised for issue on 4 September 2025 , and are signed on behalf of the board by:

Mr G P Mayo

Director

Company registration number: 12337443

Saddlebrook (Holdings) Limited

Consolidated Statement of Changes in Equity

Year ended 31 July 2024

		Called up share capital	Profit and loss account	Equity attributable to the owners of the parent company	Non-controlling interests	Total
		£	£	£	£	£
At 1 August 2022		2	429,351	429,353	2,166,140	2,595,493

Profit for the year			149,551	149,551	170,000	319,551
		----	---------	---------	------------	------------
Total comprehensive income for the year		–	149,551	149,551	170,000	319,551

Dividends paid and payable	12	–	( 28,200)	( 28,200)	( 40,000)	( 68,200)
		----	---------	---------	------------	------------
Total investments by and distributions to owners		–	( 28,200)	( 28,200)	( 40,000)	( 68,200)

At 31 July 2023		2	550,702	550,704	2,296,138	2,846,842

Profit for the year			195,598	195,598	48,180	243,778
		----	---------	---------	------------	------------
Total comprehensive income for the year		–	195,598	195,598	48,180	243,778

		----	---------	---------	------------	------------
At 31 July 2024		2	746,300	746,302	2,344,318	3,090,620
		----	---------	---------	------------	------------

Saddlebrook (Holdings) Limited

Company Statement of Changes in Equity

Year ended 31 July 2024

		Called up share capital	Profit and loss account	Total
		£	£	£
At 1 August 2022		2	46,440	46,442

Profit for the year			40,000	40,000
		----	--------	--------
Total comprehensive income for the year		–	40,000	40,000

Dividends paid and payable	12	–	( 28,200)	( 28,200)
		----	--------	--------
Total investments by and distributions to owners		–	( 28,200)	( 28,200)

At 31 July 2023		2	58,240	58,242

Loss for the year			( 150)	( 150)
		----	--------	--------
Total comprehensive income for the year		–	( 150)	( 150)

		----	--------	--------
At 31 July 2024		2	58,090	58,092
		----	--------	--------

Saddlebrook (Holdings) Limited

Consolidated Statement of Cash Flows

Year ended 31 July 2024

	2024	2023
	£	£

Cash flows from operating activities

Profit for the financial year	243,778	319,551

Adjustments for:
Depreciation of tangible assets	88,526	217,916
Impairment of tangible assets	–	151,504
Amortisation of intangible assets	20,449	20,449
Interest payable and similar expenses	107,419	96,894
Gains on disposal of tangible assets	(6,257)	–
Tax on (loss)/profit	50,855	52,052
Accrued expenses	11,779	–

Changes in:
Stocks	( 2,789)	( 4,821)
Trade and other debtors	657,508	( 42,317)
Trade and other creditors	( 17,629)	( 25,701)
	------------	---------
Cash generated from operations	1,153,639	785,527

Interest paid	( 107,419)	( 96,894)
Tax paid	( 138,819)	( 79,782)
	------------	---------
Net cash from operating activities	907,401	608,851
	------------	---------

Cash flows from investing activities

Purchase of tangible assets	( 645,700)	( 248,865)
Proceeds from sale of tangible assets	54,038	–
	------------	---------
Net cash used in investing activities	( 591,662)	( 248,865)
	------------	---------

Cash flows from financing activities

Proceeds from borrowings	( 1,049,617)	450,000
Repayments of borrowings	–	( 515,243)
Payments of finance lease liabilities	180,635	34,951
Dividends paid	–	( 68,200)
	------------	---------
Net cash used in financing activities	( 868,982)	( 98,492)
	------------	---------

Net (decrease)/increase in cash and cash equivalents	( 553,243)	261,494
Cash and cash equivalents at beginning of year	742,431	480,937
	---------	---------
Cash and cash equivalents at end of year	189,188	742,431
	---------	---------

Saddlebrook (Holdings) Limited

Notes to the Audited Consolidated Financial Statements

Year ended 31 July 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 2 Oldfield Road, Bocam Park, Bridgend, CF35 5LJ.

2. Statement of compliance

These Audited consolidated financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The Audited consolidated financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The Audited consolidated financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making their assessment the director has reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report. The group has reviewed its cash flow requirements for the coming months and the director has a reasonable expectation the group has sufficient cash available to meet its present obligations. The director concludes it is appropriate to prepare the financial statements on a going concern basis.

Consolidation

The Audited consolidated financial statements consolidate the Audited consolidated financial statements of Saddlebrook (Holdings) Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Non-controlling interests

Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination.

The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.

Judgements and key sources of estimation uncertainty

Estimate and judgements are continually evaluated and are based on historical experiences and other factors including expectations of future events that are believed to be reasonable under the circumstances. In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The key sources of estimation uncertainty that have significant affect on the amounts recognised in the financial statements are described below: (i) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimate, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See the notes to the financial statements for the carrying amount of the tangible fixed assets, and above for the useful economic lives for each class of assets. (ii) Useful economic lives of intangible assets The annual depreciation charge for intangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimate, based on technological advancement, future investments and economic utilisation of the assets. See the notes to the financial statements for the carrying amount of the intangible fixed assets, and above for the useful economic lives for each class of assets.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and services. (i) Sale of goods The subsidiary company sells a variety of goods including items at the restaurant/bar, health products and equipment from the golf club. Sales of goods are recognised when all of the significant risks and rewards of ownership have been passed to the customer, being the point at which goods are acquired by the customer. (ii) Provision of services The subsidiary company sells golf subscriptions to its members to allow them to use the facilities provided by the company. Revenue is recognised in the accounting period in which the memberships relate and is deferred accordingly on a monthly basis. The subsidiary company also offers its facilities to customers for functional events. Revenue is recognised in the accounting period in which the function is rendered and is deferred until the function takes place. The parent company has no turnover to report. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill represents the excess of the cost of a business combination over the fair value of the group’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in ‘intangible assets’. Goodwill amortisation is calculated by applying the straight-line method to its estimated useful life. If a reliable estimate cannot be made, the useful life of goodwill is presumed to be 10 years. Goodwill is being amortised to ‘administrative expenses’ over pa period of 10 years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	10 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Property improvements	-	20 to 50 years
Plant and machinery	-	10% straight line
Fixtures and fittings	-	10% straight line
Motor vehicles	-	20% reducing balance
Computers	-	25% straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

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

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Hotel	917,260	930,370
Bars	821,414	824,619
Health Club	716,526	744,564
Restaurants and functions	1,465,827	1,468,378
Golf Club	318,986	302,785
Pro Shop	65,247	71,005
	------------	------------
	4,305,260	4,341,721
	------------	------------

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

5. Other operating income

	2024	2023
	£	£
Other operating income	25,506	78,822
	--------	--------

6. Operating loss

Operating profit or loss is stated after charging/crediting:

	2024	2023
	£	£
Amortisation of intangible assets	20,449	20,449
Depreciation of tangible assets	88,526	217,916

Impairment of tangible assets recognised in:

	Administrative expenses	–	151,504
Gains on disposal of tangible assets		( 6,257)	( 1,667)
		--------	---------

7. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the audited consolidated financial statements	11,800	11,000
	--------	--------

8. Staff costs

The average number of persons employed by the group during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Production staff	139	119
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	1,623,367	1,568,874
Social security costs	115,470	85,771
Other pension costs	75,551	35,607
	------------	------------
	1,814,388	1,690,252
	------------	------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	8,060	25,828
Company contributions to defined contribution pension plans	5,630	10,920
	--------	--------
	13,690	36,748
	--------	--------

The number of directors who accrued benefits under company pension plans was as follows:

	2024	2023
	No.	No.
Defined contribution plans	2	2
	----	----

10. Interest payable and similar expenses

	2024	2023
	£	£
Interest on banks loans and overdrafts	94,697	83,034
Interest on obligations under finance leases and hire purchase contracts	12,722	7,642
Other interest payable and similar charges	–	6,218
	---------	--------
	107,419	96,894
	---------	--------

11. Tax on (loss)/profit

Major components of tax income

	2024	2023
	£	£

Current tax:

UK current tax income	17,322	123,564

Deferred tax:

Origination and reversal of timing differences	33,533	( 71,512)
	--------	--------
Tax on (loss)/profit	50,855	52,052
	--------	--------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 25 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	294,633	371,603
	---------	---------
Profit on ordinary activities by rate of tax	78,808	92,901
Effect of expenses not deductible for tax purposes	( 1,564)	451
Effect of capital allowances and depreciation	( 59,133)	15,852
Deferred tax	33,533	( 71,512)
Other tax adjustments	(789)	–
Changes in UK tax rates	–	(23,515)
Revaluation losses	–	37,875
	---------	---------
Tax on (loss)/profit	50,855	52,052
	---------	---------

12. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2024	2023
	£	£
Dividend on Ordinary A Shares	–	40,000
Dividend on Ordinary B Shares	–	28,200
	----	--------
	–	68,200
	----	--------

13. Intangible assets

Group	Goodwill on consolidation
	£
Cost
At 1 August 2023 and 31 July 2024	204,485
	---------
Amortisation
At 1 August 2023	68,162
Charge for the year	20,449
	---------
At 31 July 2024	88,611
	---------
Carrying amount
At 31 July 2024	115,874
	---------
At 31 July 2023	136,323
	---------

The company has no intangible assets.

Goodwill arising on consolidation is being amortised over the director's estimate of its useful life of 10 years.

14. Tangible assets

Group	Land and buildings	Plant and machinery	Fixtures, fittings and equipment	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 August 2023	6,065,017	592,218	187,481	52,168	6,896,884
Additions	335,428	227,228	83,044	–	645,700
Disposals	–	( 22,456)	( 25,325)	–	( 47,781)
	------------	---------	---------	--------	------------
At 31 July 2024	6,400,445	796,990	245,200	52,168	7,494,803
	------------	---------	---------	--------	------------
Depreciation
At 1 August 2023	–	355,995	98,543	6,956	461,494
Charge for the year	–	59,078	22,493	6,955	88,526
	------------	---------	---------	--------	------------
At 31 July 2024	–	415,073	121,036	13,911	550,020
	------------	---------	---------	--------	------------
Carrying amount
At 31 July 2024	6,400,445	381,917	124,164	38,257	6,944,783
	------------	---------	---------	--------	------------
At 31 July 2023	6,065,017	236,223	88,938	45,212	6,435,390
	------------	---------	---------	--------	------------

The company has no tangible assets.

Tangible assets held at valuation

Under the revaluation model, an item of property, plant and equipment whose fair value can be measured reliably shall be carried at a revalued amount, being its fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. The company obtained a valuation on 27 March 2023 by an independent valuer, Fleuret Leisure Property Specialists. The revaluation remains accurate and appropriately current as of the reporting date. The methods and significant assumptions used to ascertain the fair value of £6,000,000 are as follows: - The property is freehold. - The property has a good location from both an accessibility and setting perspective. - The property is well laid out and in generally good repair. - The property is an attractive 4 star resort and would attract interest from local entrepreneurs/investors. In addition to the above, the property would be subject to the following additional special assumptions to remove the value of goodwill: - The property is presented with vacant possession. - The property would be sold as if the business was closed. - Accounts or records of trade are not available to a prospective purchaser so the purchaser is effectively bidding for the property without the benefit of evidence supporting the previous trading history. - The stock has been removed for furnishing and equipping the property appropriate to the style of business. - The licences, consents, certificates and permits are lost or breached. Since the valuation of £6,000,000, the company incurred property development expenditure of £400,445 resulting in a total carrying value of £6,400,445 at the reporting period. The historic cost equivalent of land and buildings included at the most recent revaluation was £4,790,555. There are no revaluation reserves to report on consolidation because the historical surplus was pre acquisition of the subsidiary. As there is no revaluation surplus on consolidation, the decrease in value of the asset by £151,504 has been reported in the profit and loss.

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

Group	Plant and machinery	Motor vehicles	Total
	£	£	£
At 31 July 2024	310,525	38,256	348,781
	---------	--------	---------
At 31 July 2023	214,465	90,424	304,889
	---------	--------	---------

15. Investments

The group has no investments.

Company	Shares in group
	£
Cost
At 1 August 2023 and 31 July 2024	2,020,000
	------------
Impairment
At 1 August 2023 and 31 July 2024	–
	------------

Carrying amount
At 1 August 2023 and 31 July 2024	2,020,000
	------------
At 31 July 2023	2,020,000
	------------

Subsidiaries, associates and other investments

Details of the investments in which the parent company has an interest of 20% or more are as follows:

	Class of share	Percentage of shares held
Subsidiary undertakings
Bryn Meadows Golf & Country Club Limited	Ordinary	50

The parent does not own, directly or indirectly through subsidiaries, more than half of the voting power of its subsidiary undertaking, Bryn Meadows Golf & Country Club Limited. However, control exists because the minority shareholder of the subsidiary undertaking also has significant influence over the parent company.

16. Stocks

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Total stock	55,192	52,403	–	–
	--------	--------	----	----

17. Debtors

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Trade debtors	92,300	85,228	–	–
Amounts owed by group undertakings	–	–	1,547	76,697
Prepayments and accrued income	124,222	98,027	–	–
Directors loan account	4,520	–	–	–
Other debtors	218,900	914,195	2	2
	---------	------------	-------	--------
	439,942	1,097,450	1,549	76,699
	---------	------------	-------	--------

18. Creditors: amounts falling due within one year

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Bank loans and overdrafts	91,630	439,073	–	–
Trade creditors	297,885	322,539	–	–
Accruals and deferred income	618,938	566,848	2,030	2,030
Corporation tax	140,164	261,661	–	–
Social security and other taxes	242,566	203,163	–	–
Obligations under finance leases and hire purchase contracts	67,109	33,345	–	–
Director loan accounts	–	81,719	–	–
Other creditors	2,169,169	518,554	1,961,427	313,123
	------------	------------	------------	---------
	3,627,461	2,426,902	1,963,457	315,153
	------------	------------	------------	---------

19. Creditors: amounts falling due after more than one year

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Bank loans and overdrafts	661,742	1,282,197	–	–
Obligations under finance leases and hire purchase contracts	254,838	107,967	–	–
Other creditors	–	1,723,304	–	1,723,304
	---------	------------	----	------------
	916,580	3,113,468	–	1,723,304
	---------	------------	----	------------

Included within creditors: amounts falling due after more than one year is an amount of £386,756 (2023: £949,658) for the group and £Nil (2023: £474,829) for the company in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

HSBC Bank plc hold a legal mortgage over the assets of Bryn Meadows Golf & Country Club Limited, and a first legal mortgage over the Bryn Meadows Hotel, The Bryn, Maesycwmmer. HSBC Bank plc also hold a composite unlimited Multilateral Guarantee dated 28 October 2011 given by Bryn Meadows Golf & Country Club Limited, Eatfresh Wales Limited and Mayo Dining Limited. HSBC Bank plc hold fixed and floating charge over the assets of the company and undertaking both present and future dated 28 October 2011. The bank loans are repayable over a term of 120 months and are subject to an interest rate of 2.64% and 3.00% above the Bank of England base rate. In February 2024, there was a full redemption of its flexible business loan. DBW Investments (10) Limited hold a fixed and floating charge over the company assets.

20. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Not later than 1 year	67,109	33,345	–	–
Later than 1 year and not later than 5 years	254,838	107,967	–	–
	---------	---------	----	----
	321,947	141,312	–	–
	---------	---------	----	----

The outstanding hire purchase liabilities as of the reporting date are secured on the assets to which they relate.

21. Provisions

Group	Deferred tax (note 22)
	£
At 1 August 2023	76,783
Additions	33,533
	---------
At 31 July 2024	110,316
	---------

The company does not have any provisions.

22. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Included in provisions (note 21)	110,316	76,783	–	–
	---------	--------	----	----

The deferred tax account consists of the tax effect of timing differences in respect of:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Accelerated capital allowances	110,316	76,783	–	–
	---------	--------	----	----

23. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 38,986 (2023: £ 22,437 ).

24. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary A shares of £ 1 each	1	1	1	1
Ordinary B shares of £ 1 each	1	1	1	1
	----	----	----	----
	2	2	2	2
	----	----	----	----

25. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

26. Analysis of changes in net debt

	At 1 Aug 2023	Cash flows	At 31 Jul 2024
	£	£	£
Cash at bank and in hand	742,431	(553,245)	189,186
Debt due within one year	(554,137)	395,398	(158,739)
Debt due after one year	(1,390,164)	473,584	(916,580)
	------------	---------	---------
	( 1,201,870)	315,737	( 886,133)
	------------	---------	---------

27. Capital commitments

Capital expenditure contracted for but not provided for in the Audited consolidated financial statements is as follows:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Tangible assets	–	325,000	–	–
	----	---------	----	----

28. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Not later than 1 year	14,656	27,674	–	–
Later than 1 year and not later than 5 years	27,037	32,715	–	–
	--------	--------	----	----
	41,693	60,389	–	–
	--------	--------	----	----

29. Directors' advances, credits and guarantees

As at the balance sheet date, the directors owed the company the following amounts:

		2024
		£
	Creditor as at 1 August 2023	(81,719)
	Net drawings	86,240
		--------
	Debtor as at 31 July 2024	4,521

The loan is repayable within 9 months of the year-end. No interest is charged on the balance above.

Saddlebrook (Holdings) Limited

Notes to the Audited Consolidated Financial Statements (continued)

Year ended 31 July 2024

30. Related party transactions

Group

Mayo Property Development Limited

		2024
		£
	Debtor as at 1 August 2023	896,013
	Net transfers during the year	(693,466)
		---------
	Debtor as at 31 July 2024	202,547
		---------

The company is related through common control.

Company

Mayo Property Development Limited

		2024
		£
	Creditor as at 1 August 2023	238,123
	Creditor as at 31 July 2024	238,123

The company is related through common control. Bryn Meadows Golf & Country Club Limited

		2024
		£
	Debtor as at 1 August 2023	76,547
	Net transfers during the year	(75,000)
	Dividends	–
		---------
	Debtor as at 31 July 2024	477,793
		---------

The company is related through common control.

31. Controlling party

In the opinion of the director, there is no ultimate controlling party.