The directors present the strategic report for the year ended 31 December 2024.

The Company’s principal activity continued to be that of the operation of Folly Farm Leisure Limited, an adventure park and zoo situated in Pembrokeshire. Since opening our doors in 1988, we have grown into Wales’ biggest independent visitor attraction, and we remain a proud, family-run business with a reputation for excellence, innovation, and award-winning experiences.

The UK tourism sector has shown resilience in recent years amid shifting economic conditions. Increased interest in sustainable travel and UK-based short breaks has continued to benefit our sector, with Folly Farm’s holiday village proving a particularly successful addition. We have seen ongoing demand from families seeking memorable, good-value leisure experiences, and are pleased to report growth in both visitor numbers and average guest spend.

These positive trends contributed to a 5.18% increase in turnover, rising from £10,484,773 in 2023 to £11,028,227 in 2024.

These results are encouraging and support the Company’s commitment to further expansion, creating more opportunities and jobs for Pembrokeshire’s tourism economy and local communities.

Key Performance Indicators

The Company remains mindful of ongoing economic uncertainty, with leisure activities sometimes viewed as discretionary spending. In the context of elevated living costs, there is a risk that households may limit or postpone visits to attractions. However, the domestic tourism market has remained robust, with many families continuing to prioritise UK holidays, particularly in regions like Wales that offer high-quality, family-friendly destinations.

Weather remains a factor influencing park attendance. However, we continue to invest in our facilities to ensure a strong mix of all-weather and indoor attractions, helping to mitigate this risk and maintain steady visitor engagement throughout the year.

While broader challenges such as inflation, interest rates, and global geopolitical tensions may affect consumer confidence, the Company remains well positioned. Our longstanding reputation, ongoing reinvestment in infrastructure, and strong local partnerships provide a solid foundation for long-term sustainability and growth.

Employees and Community Impact

Our people remain at the heart of everything we do. Folly Farm’s continued success is a direct result of the dedication, professionalism, and passion of our employees across all departments — from animal care and customer service to hospitality, maintenance, and administration.

As one of the largest employers in the region, we are proud to support the local economy by providing year-round and seasonal jobs, offering structured training opportunities, and helping young people begin careers in tourism, hospitality, and animal welfare. We remain committed to fair employment practices, personal development, and fostering a positive workplace culture that reflects our values as a family-run business.

Future Developments

The Company will continue to focus on long-term sustainability and growth. New attractions and park enhancements introduced in recent years have boosted visitor numbers and repeat attendance. Further developments are in the pipeline, supported by our ongoing programme of reinvestment in infrastructure, animal habitats, and guest facilities. This includes improved accessibility, enriched animal experiences, and eco-conscious innovation, all of which contribute to the park’s appeal as a top-tier destination.

We remain agile in our development plans, balancing expansion with quality, welfare, and sustainability.

Financial and Operational Risk Management Objectives and Policies

The Company operates a range of risk management policies to minimise exposure to financial and operational risk.

Liquidity and Cash Flow Risk

The Company utilises a variety of financial instruments including bank loans, overdrafts, and hire purchase arrangements to finance operations. Our main exposure arises from borrowings at variable interest rates, which introduce cash flow risk. This is closely managed through careful forecasting and prudent use of borrowing facilities.

At the date of this report, the Company does not actively hedge against interest rate risk.

Credit Risk

Given the nature of our business — predominantly based on cash and card transactions with the public — we face minimal credit risk exposure.

Price Risk

We actively manage pricing risk by agreeing fixed terms with suppliers and entering contracts in advance, where appropriate, to protect against inflationary pressures and supply chain disruptions.

Zoo and Theme Park Operational Risks

Operating a mixed attraction including a zoo and amusement park brings unique responsibilities. These include strict compliance with animal welfare legislation, ride safety and inspection standards, and public liability controls. The Company maintains comprehensive risk assessment frameworks and undergoes regular independent inspections by governing bodies to ensure best practice in all areas of operation.

Emergency response training, animal welfare audits, and robust health and safety procedures form a key part of our risk mitigation strategy.

Environmental Risks and Sustainability

Tourism and leisure businesses have an inherent impact on the environment. We acknowledge our responsibility to minimise this and continue to invest in energy-efficient technologies and sustainable infrastructure.

We are committed to reducing our carbon footprint and supporting broader biodiversity and conservation goals, both locally and globally.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company continued to be that of the operation of Folly Farm, a leisure attraction and holiday park.

The results for the year are set out on page 6.

Ordinary dividends were paid amounting to £1,500,000. The directors do not recommend payment of a further dividend.

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

Redwood Wales Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act.

In the reporting period, Folly Farm Leisure Limited total purchased electricity was approximately 1,862,000 kWh.

Although not required to disclose under the Streamlined Energy and Carbon Reporting (SECR) framework due to our medium-sized status, the Group recognises the importance of transparency around environmental impact and is committed to minimising its carbon footprint.

We continue to monitor energy usage and are exploring initiatives aimed at improving energy efficiency across our operations, including:

In recent years, Folly Farm has:

- Installed LED lighting across the park and facilities to reduce energy consumption

- Introduced solar panels on suitable rooftops to generate renewable electricity

- Adopted a Biomass heating system to heat accommodation units to lower carbon emissions

- Improved recycling and waste management systems for guests and staff

- Developed conservation-led education programmes for visitors

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 directors have 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 company meets its day to day working capital requirements from its cash reserves, overdraft facilities and parent company support if necessary. At the date of signing the report sales to all key markets have continued to meet budgeted levels. With no indication that at the current time this position will change, the company's forecasts and projections show that the company will be able to operate within those faculties.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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; and

• 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

We have audited the financial statements of Folly Farm Leisure Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• 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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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, 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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We obtain an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on operations of the company. The key laws and regulations we consider in this context include UK Companies Act and relevant tax legislation.

Audit procedures performed by the engagement team to respond to the risk of irregularities and non-compliance with laws and regulations, including fraud, include the following:

- discussions with management to enquire of any known instances of non-compliance with laws and regulations, including fraud;

- discussions with management in respect of any actual or potential litigation claims;

- performing analytical procedure to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- testing the appropriateness of journal entries and other adjustments to address the risk of fraud through management override of controls;

- review of the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations; and

- evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

There are inherent limitations in the audit procedures which means we are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting material misstatement due to fraud is higher than the risk of non detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forger or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

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

Folly Farm Leisure Limited is a private company limited by shares incorporated in England and Wales. The registered office is Folly Farm, Begelly, Kilgetty, UK, SA68 0XA.

The principal activity of the company continued to be that of operation of Folly Farm, a leisure attraction in West Wales.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Hayloft Holdings (Wales) Limited.

The financial statements have been prepared on a going concern basis which assumes that the company willtrue continue in operational existence for the foreseeable future. In making their assessment the directors have 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 singing the report.

The company meets its day to day working capital requirements from its cash reserves, overdraft facilities and parent company support if necessary. At the date of signing the report sales to all markets have continued to meet budgeted levels. With no indication that at the current time this position will change, the company's forecasts and projections show that the company will be able to operate within those faculties.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue represents the amounts received (excluding VAT and similar taxes) in the areas set out below:

Gate tickets & Guest spend revenue - represents admissions tickets, retail and beverage sales and other offerings such as photo and animal adoptions. Tickets and other services can be bought in advance online and are recognised at the point of sale. Revenue from annual passes that entitles a customer to continued visits over a period of time is deferred and then recognised over the period that the pass is valid for. Retail and food revenue is recognised at the point of sale.

Holiday village revenue- represents overnight stay revenue and is recognised at the time when a customer stays at the accommodation.

Other revenue - represents farm goods sales such as hay is recognised at the point of sale.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The company operates a defined contribution pension scheme for directors and employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Related party transactions

The company entered into several transactions with a related party during the year. The related party being a wholly owned subsidiary within the group where such transactions are eliminated upon consolidation in the consolidated accounts of Hayloft Holdings (Wales) Limited. The company has taken advantage of the exemption under FRS 102 not to disclose such transactions.

In the application of the company's accounting policies, the directors are required to make judgements,

estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions in relation to the useful economic lives of assets are reviewed on an ongoing basis. The annual depreciation charges for tangible assets is sensitive to changes in the useful estimated useful economic lives and residual values of the assets, which are reassessed annually. The are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See below for the depreciation rates of each class of asset.

Revisions to accounting estimates are recognised in the period in which the estimate is revised where the

revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Obligations under hire purchase agreements are secured by charges on individual assets to which the liabilities relate.

Bank loans are secured by a fixed and floating charge over the assets of the company.

Bank loans are interest bearing and are secured by a fixed and floating charge over the assets of the company and parent company Hayloft Holdings (Wales) Limited.

Obligations under hire purchase agreements are secured by charges on individual assets to which the liabilities relate.

Bank loans and overdrafts are secured by a fixed and floating charge over the assets of the company.

Obligations under hire purchase agreements are secured by charges on individual assets to which the liabilities relate.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Under the provisions of the group registrations for Value Added Tax. Folly Farm Leisure Limited and its parent are jointly liable for the indebtedness of each other.

Amounts contracted for but not provided in the financial statements:

The company is a wholly owned subsidiary of Hayloft (Holdings) Wales Limited, a company incorporated in England and Wales. Hayloft (Holdings) Wales Limited prepares publicly available consolidated accounts within which the results of this company are included.