REGISTERED NUMBER: OC315344 (England and Wales)

Audited Financial Statements

for the Year Ended 31 March 2025

for

Madecorn Leisure LLP

Page

General Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DESIGNATED MEMBERS:

Madecorn (Guernsey) Limited

SFT Enterprises Limited

Destination Leisure Ltd

REGISTERED OFFICE:

Mercia Marina

Findern Lane

Willington

Derbyshire

DE65 6DW

REGISTERED NUMBER:

OC315344 (England and Wales)

AUDITORS:

Mabe Allen LLP

Chartered Accountants

Statutory Auditors

50 Osmaston Road

Derby

DE1 2HU

BANKERS:

Handelsbanken

The Arc, 6 Mallard Way

Pride Park

Derby

Derbyshire

DE24 8GX

FIXED ASSETS

Tangible assets

5

17,246,971

16,871,309

Investment property

6

6,000,000

6,000,000

23,246,971

22,871,309

CURRENT ASSETS

Stocks

11,837

15,903

Debtors

7

325,506

346,816

Investments

8

10,000

821,781

Cash at bank and in hand

1,572,196

136,593

1,919,539

1,321,093

CREDITORS

Amounts falling due within one year

9

1,657,379

1,193,577

NET CURRENT ASSETS

262,160

127,516

TOTAL ASSETS LESS CURRENT LIABILITIES

23,509,131

22,998,825

CREDITORS

Amounts falling due after more than one year

10

(8,650,000

)

(8,600,000

)

PROVISIONS FOR LIABILITIES

(120,574

)

-

NET ASSETS ATTRIBUTABLE TO MEMBERS

14,738,557

14,398,825

LOANS AND OTHER DEBTS DUE TO MEMBERS

12

2,920,050

2,580,318

MEMBERS' OTHER INTERESTS

Capital accounts

1,000

1,000

Other reserves

11,817,507

11,817,507

14,738,557

14,398,825

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

12

2,920,050

2,580,318

Members' other interests

11,818,507

11,818,507

14,738,557

14,398,825

The financial statements have been prepared and delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime.

In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved on behalf of the members of the LLP and authorised for issue on 24 September 2025 and were signed by:

Destination Leisure Ltd - Designated member

1.	STATUTORY INFORMATION

Madecorn Leisure LLP is registered in England and Wales. The LLP's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships.

3.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going Concern

The partnership made a profit for the year of £1,239,732 (2024: £1,088,235) and notwithstanding the net current assets at 31 March 2025 of £262,160 (2024:£127,516) the members have prepared the financial statements on the going concern basis which assumes that the partnership will continue to trade for the foreseeable future. The validity of the assumption is based on the members' assessment of future cash forecasts and revenue projections and for the reasons set out below.

Cost of living and economic uncertainty in the UK

As at the date of approving these financial statements, the impact of cost-of-living on the partnership's trading is continually being assessed and subject to review. The current economic climate in the UK has placed strain on the finances of the general public which going forward could potentially limit their ability to spend on leisure activities. Our 'base case' assumption is that the marina remains open into the future. In assessing the partnership's funding requirements, the members have prepared detailed forecasts/projections to 31 March 2030. The forecasts and projections take into account the funding requirements of the partnership given that mooring fee income is expected to remain robust, whilst the income from investment property which consists of a mix of commercial, retail and leisure may be more volatile and uncertain.

The members have also undertaken an exercise to sensitise the funding requirements, taking account of all reasonably foreseeable circumstances, which indicates that the partnership continues to have access to sufficient funds in the short to medium term to enable it to settle its debts as and when they fall due and to ensure the continuance of the trading operations.

Having assessed the current trading performance and future prospects, the members have concluded that the partnership has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. The financial statements, therefore, do not include any adjustments that would arise if the going concern basis of preparation were inappropriate.

Significant judgements and estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from these estimates under different assumptions and conditions.The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are in relation to specific areas included below:

Revaluation of land and buildings and investment properties

The partnership carries its land and buildings and investment properties at fair value, with changes in fair value being recognised respectively in comprehensive income and profit or loss. The professional valuer initially used a valuation technique which took account of the estimate of fair maintainable turnover and the marketability of the property. The members have continued with this approach to valuation in the current period. The determined fair value of the investment property is most sensitive to the estimated yield as well as the long term vacancy rate.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

Turnover from the sale of goods including lodges is recognised when the risks and rewards of ownership of those goods has been substantially transferred to the customer. Turnover from services provided is recognised to the extent that contractual obligations to customers have been fulfilled.

Amounts received in respect of service contracts where the company provides a service and has obligations to customers over a period of time are credited to the balance sheet and recognised as revenue on a straight line basis over the period to which the contract relates.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold land and buildings

-

Straight line over 50 years

Assets under construction

-

not provided

Plant and machinery

-

at varying rates on cost

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

20% on reducing balance

Computer equipment

-

10% on reducing balance

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

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 if 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 from 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.

Assets in the course of construction

Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use and are reviewed for impairment at each reporting date.

Investments

Current asset investments are measured at fair value with changes in fair value recognised in the profit and loss.

Investment properties are measured at fair value with changes in fair value recognised in the profit and loss.

The investment property fair value of £6,000,000 (2024: £6,000,000) was determined by the members who sought to identify current market value. See note 7.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Basic financial instruments

Trade and other debtors/creditors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financial transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.

Leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Impairment

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occured after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flow discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are de-recognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Provisions

A provision is recognised in the balance sheet when the partnership has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Exceptional items

The LLP classifies certain one-off charges or credits that have a material impact on the LLP's financial results as ‘exceptional items’. These are disclosed separately to provide further understanding of the financial performance of the LLP.

4.	EMPLOYEE INFORMATION

The average number of employees during the year was 25 (2024 - 27 ) .

5.	TANGIBLE FIXED ASSETS

Freehold

Assets

land and

under

Plant and

buildings

construction

machinery

£

£

£

COST OR VALUATION

At 1 April 2024

16,005,055

26,916

2,941,962

Additions

400,425

287,002

15,765

Disposals

-

-

-

Impairments

(141,116

)

-

-

At 31 March 2025

16,264,364

313,918

2,957,727

DEPRECIATION

At 1 April 2024

73,833

-

2,082,016

Charge for year

85,170

-

144,146

Eliminated on disposal

-

-

-

Impairments

(47,974

)

-

-

At 31 March 2025

111,029

-

2,226,162

NET BOOK VALUE

At 31 March 2025

16,153,335

313,918

731,565

At 31 March 2024

15,931,222

26,916

859,946

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 April 2024

116,552

24,560

27,074

19,142,119

Additions

3,973

-

3,542

710,707

Disposals

-

(5,975

)

-

(5,975

)

Impairments

-

-

-

(141,116

)

At 31 March 2025

120,525

18,585

30,616

19,705,735

DEPRECIATION

At 1 April 2024

84,007

15,252

15,702

2,270,810

Charge for year

7,303

1,861

1,491

239,971

Eliminated on disposal

-

(4,043

)

-

(4,043

)

Impairments

-

-

-

(47,974

)

At 31 March 2025

91,310

13,070

17,193

2,458,764

NET BOOK VALUE

At 31 March 2025

29,215

5,515

13,423

17,246,971

At 31 March 2024

32,545

9,308

11,372

16,871,309

Included in cost or valuation of land and buildings is freehold land of £ 12,100,000 (2024 - £ 12,100,000 ) which is not depreciated.

Cost or valuation at 31 March 2025 is represented by:

Freehold

Assets

land and

under

Plant and

buildings

construction

machinery

£

£

£

Valuation in 2011

3,967,206

-

-

Valuation in 2016

969,819

-

-

Valuation in 2017

236,087

-

-

Valuation in 2018

1,992,402

-

-

Valuation in 2023

2,816,639

-

-

Cost

6,282,211

313,918

2,957,727

16,264,364

313,918

2,957,727

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

Valuation in 2011

-

-

-

3,967,206

Valuation in 2016

-

-

-

969,819

Valuation in 2017

-

-

-

236,087

Valuation in 2018

-

-

-

1,992,402

Valuation in 2023

-

-

-

2,816,639

Cost

120,525

18,585

30,616

9,723,582

120,525

18,585

30,616

19,705,735

If Marina land and buildings had not been revalued they would have been included at the following historical cost:

2025

2024

£

£

Cost

6,282,211

6,022,902

Aggregate depreciation

1,260,993

1,135,349

Value of land in freehold land and buildings

678,002

678,002

Marina land and buildings were valued on a fair value basis on 30 October 2023 by Knight Frank LLP .

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2024

and 31 March 2025

6,000,000

NET BOOK VALUE

At 31 March 2025

6,000,000

At 31 March 2024

6,000,000

Fair value at 31 March 2025 is represented by:

£

Valuation in 2016

(72,902

)

Valuation in 2017

125,000

Valuation in 2023

952,270

Cost

4,995,632

6,000,000

The development was valued on a fair value basis on 30 October 2023 by Knight Frank LLP .

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

158,556

273,736

Prepayments

166,950

73,080

325,506

346,816

8.	CURRENT ASSET INVESTMENTS

2025

2024

£

£

Sterling Money Market

Investment

10,000

821,781

10,000

821,781

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts

-

50,000

Trade creditors

418,496

130,253

Social security and other taxes

37,966

86,424

Other creditors

171,944

107,634

Accruals and deferred income

1,028,973

819,266

1,657,379

1,193,577

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Bank loans

8,650,000

8,600,000

11.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Bank loans

8,650,000

8,650,000

The bank loans and overdrafts are secured against assets of the limited liability partnership by way of a debenture.

12.

LOANS AND OTHER DEBTS DUE TO MEMBERS

Unsecured debt due to members will rank equally with debts due to other unsecured creditors in a winding up.

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for qualified opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the LLP 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.

The independent auditor's opinion on the financial statements and the statement of financial position for Madecorn Leisure LLP for the financial year 31 March 2025 were qualified in respect of the following:

The value of land and buildings at £16,153,335 (2024 : £15,931,222) and investment properties at £6,000,000 (2024 : £6,000,000) as reported at 31 March 2025 is based on the last professional valuers report which was undertaken on the 30 October 2023. The members believe that the fair value of the land, buildings and investment properties has not moved materially upward since this last professional valuers report.

In our opinion the most up to date information available at the time indicated that a material upward adjustment was required to fair value at the reporting dates of 31 March 2024 and 31 March 2025. As a result we believed there arose a material misstatement of land and buildings, and investment properties.

As there had been no agreed remeasurement of fair value it was not practical to fully quantify the financial effects of any amendment on the financial statements for the year ended 31 March 2025 and 31 March 2024.

Matters required to report by exception

Except for the matters described in the Basis for qualified opinion section of the audit report, based on the work undertaken in the course of the audit, we have nothing to report in respect of the following matters where the Companies Act 2006 as applied to LLPs 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

- we have not received all the information and explanations we require for our audit; or

- the members were not entitled to prepare the financial statements in accordance with the small LLPs regime.

Neil Higgins FCCA (Senior Statutory Auditor)

for and on behalf of Mabe Allen LLP

14.	CONTINGENT LIABILITIES

Contingent liabilities include an amount of £32,381 for a potential liability relating to a s106

agreement with Derbyshire County Council and South Derbyshire District Council. The agreement being contingent on planning permission being granted for further residential berths at the marina.

15.	OTHER FINANCIAL COMMITMENTS

At the year end the partnership has financial commitments amounting to £145,728 (2024: £37,482), £18,126 (2024: £37,482) of which relating to operating leases.

16.	RELATED PARTY DISCLOSURES

Madecorn Developments Limited is a company under common control. The company is charged with building a new development called "The Promenade" on land owned by Madecorn Leisure LLP. The LLP was responsible for obtaining planning permission, preparing the ground and providing utilities to the site of the development.

Madecorn Leisure LLP has offered an inter-company loan facility of up to £700,000 to Madecorn Developments Limited. Whilst the loan facility had not been utilised as at 31.03.2025, a total of £692,917 had been drawn down following the year end up to the date of approval of the financial statements.

In addition, Madecorn Leisure LLP is acting as guarantor to a £5,355,000 loan facility provided by Handelsbanken which is available to Madecorn Developments Limited.

The guarantee is secured by legal charges over property owned by Madecorn Leisure LLP.