Company No: 04320275 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2025		2024
		£		£
Fixed assets
Intangible assets	3	28,956		31,411
Tangible assets	4	4,327,071		3,880,703
		4,356,027		3,912,114
Current assets
Stocks		6,227		14,350
Debtors	5	80,809		44,608
Cash at bank and in hand		11,394		321
		98,430		59,279
Creditors: amounts falling due within one year	6	( 2,302,115)		( 2,469,907)
Net current liabilities		(2,203,685)		(2,410,628)
Total assets less current liabilities		2,152,342		1,501,486
Creditors: amounts falling due after more than one year	7	( 649,558)		( 608,597)
Provision for liabilities		( 170,500)		( 158,500)
Net assets		1,332,284		734,389
Capital and reserves
Called-up share capital	8	2		2
Revaluation reserve		125,502		209,502
Profit and loss account		1,206,780		524,885
Total shareholders' funds		1,332,284		734,389

For the financial year ending 31 March 2025 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Tunnels Beaches Limited (registered number: 04320275) were approved and authorised for issue by the Board of Directors on 09 September 2025. They were signed on its behalf by:

Mr J Mclintock Director

Mrs Z Mclintock Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Tunnels Beaches Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Tunnels Beaches, Bath Place, Ilfracombe, EX34 8AN, Devon, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Prior year adjustment

The presentation of revalued Land and Buildings have been adjusted for the 31 March 2024 year. The net book values of the assets or total reserves figure have not been adjusted, however the presentation of accumulated depreciation, cost, revaluation reserve and profit and loss reserve splits have been adjusted to accurately represent the values of the properties and revaluations.

Values at 31 March 2024
Land and buildings Cost - £3,745,533 (previously £4,246,691)
Land and buildings Accumulated depreciation - £427,597 (previously £928,755)
Revaluation reserve - £209,502 (previously £710,660)
Profit and loss reserves - £524,885 (previously £23,727)

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer.

Turnover from the sale of goods is recognised when the goods are physically delivered to the customer.

Revenue from services is recognised as they are delivered.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on tax rates and laws substantively enacted at the balance sheet date. Deferred tax assets and liabilities are not discounted.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Goodwill	20 years straight line
Website costs	15 % reducing balance
Other intangible assets	25 years straight line

Goodwill

Goodwill arises on business combination and represents any excess of consideration given over the fair value of the identifiable assets and liabilities acquired. Goodwill is initially recognised as an intangible asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis over its useful economic life, which is 20 years.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	25 years straight line
Plant and machinery	15 % reducing balance
Vehicles	25 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Properties are held at fair value at the date of valuation less subsequent depreciation and impairment.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a gain reverses a previously recognised loss, or a loss exceeds the accumulated gains in equity.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets receivable within one year, such as trade debtors and bank balances, are measured at transaction price less any impairment.

Basic financial assets receivable within more than one year are measured at amortised cost less any impairment.

Basic financial liabilities
Basic financial liabilities that have no stated interest rate and are payable within one year, such as trade creditors, are measured at transaction price.

Other basic financial liabilities are measured at amortised cost.

2. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	29		33

3. Intangible assets

	Goodwill		Website costs		Other intangible assets		Total
	£		£		£		£
Cost
At 01 April 2024	34,500		40,316		8,965		83,781
Additions	0		7,500		0		7,500
Disposals	0		0		( 8,965)		( 8,965)
At 31 March 2025	34,500		47,816		0		82,316
Accumulated amortisation
At 01 April 2024	27,444		20,904		4,022		52,370
Charge for the financial year	1,725		3,287		0		5,012
Disposals	0		0		( 4,022)		( 4,022)
At 31 March 2025	29,169		24,191		0		53,360
Net book value
At 31 March 2025	5,331		23,625		0		28,956
At 31 March 2024	7,056		19,412		4,943		31,411

4. Tangible assets

	Land and buildings		Plant and machinery		Vehicles		Total
	£		£		£		£
Cost
At 01 April 2024	3,745,533		1,348,007		202,049		5,295,589
Additions	403,755		58,948		273,034		735,737
Disposals	0		( 484,893)		( 126,305)		( 611,198)
At 31 March 2025	4,149,288		922,062		348,778		5,420,128
Accumulated depreciation
At 01 April 2024	427,597		849,250		138,039		1,414,886
Charge for the financial year	45,589		74,502		76,280		196,371
Disposals	0		( 423,825)		( 94,375)		( 518,200)
At 31 March 2025	473,186		499,927		119,944		1,093,057
Net book value
At 31 March 2025	3,676,102		422,135		228,834		4,327,071
At 31 March 2024	3,317,936		498,757		64,010		3,880,703
Leased assets included above:
Net book value
At 31 March 2025	970,803		0		221,228		1,192,031
At 31 March 2024	650,024		0		81,896		731,920

Included in Land and buildings is a leasehold property with the net book value of £970,803 (2024:£650,024).

5. Debtors

	2025		2024
	£		£
Prepayments	72,398		35,897
Other debtors	8,411		8,711
	80,809		44,608

6. Creditors: amounts falling due within one year

	2025		2024
	£		£
Bank loans and overdrafts (secured)	290,607		258,854
Trade creditors	311,960		85,208
Amounts owed to directors	27,823		0
Other loans	0		50,304
Accruals and deferred income	11,882		21,027
Taxation and social security	257,381		396,362
Obligations under finance leases and hire purchase contracts (secured)	81,474		43,905
Other creditors	1,320,988		1,614,247
	2,302,115		2,469,907

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

	2025		2024
	£		£
Bank loans (secured)	466,471		603,174
Obligations under finance leases and hire purchase contracts (secured)	183,087		5,423
	649,558		608,597

The COVID bounce back loan is government guaranteed, the balance of this loan at the financial year end being £79,167 (2024: £129,167).

The remaining loans and overdraft are secured against the Woodlands, Runnymede House, the lease of the Tunnels Complex and a debenture. There is also a cross guarantee provided by the directors.

The hire purchase agreements are secured on the assets to which they relate.

Amounts repayable after more than 5 years are included in creditors falling due over one year:

	2025		2024
	£		£
Bank loans (secured / repayable by instalments)	169,425		211,960

8. Called-up share capital

	2025		2024
	£		£
Allotted, called-up and fully-paid
2 Ordinary shares of £ 1.00 each	2		2

9. Financial commitments

Commitments

	2025		2024
	£		£
Total future minimum lease payments under non-cancellable operating lease	1,584,114		1,899,000

The company rents the Tunnels complex and Bath House from the directors, the terms of the lease being 21 years beginning on 1 October 2013.
The total annual rent is £180,000 (2024: £180,000).

During the year the company entered into 2 operating leases in relation to computer equipment. Both being 24 month terms, with 20 months minimum term length left at the year end.

10. Related party transactions

Transactions with the entity's directors

	2025		2024
	£		£
Amounts owed to the directors	11,321		145,305

Payments are repayable on demand and interest is charged on overdrawn balances, owed by the directors, at HMRC's official rate.

Other related party transactions

	2025		2024
	£		£
Amounts owed to partnership in which the directors are partners	63,035		36,000

This balance is largely made of underpaid rent for the premises, as well as some expenses paid on behalf of the Partnership. Payments are repayable on demand of the partners.