The director presents the strategic report for the year ended 31 December 2024.

Broughton Leisure continues to be proud of its position as the exclusive supplier of ABI, Atlas, Carnaby, and Sunseeker holiday homes across South and West Wales. Our showground situated in the heart of Pembrokeshire showcases a wide variety of new and pre owned holiday homes offering something to suit every lifestyle and budget.

In recent years, the UK caravan market has enjoyed exceptional growth, with domestic tourism booming as more families chose to holiday closer to home. This created a surge in demand for caravans and similar leisure accommodation. However, as international travel has reopened and consumer behaviour shifted back towards pre pandemic patterns, the market has inevitably cooled.

Reflecting these wider industry trends, 2025 has been a more challenging year for Broughton Leisure, with turnover falling by £8.5 million (55%) compared to the prior year. While this represents a significant change in trading levels, the business has responded proactively. Through careful cost control, efficiency improvements and a focus on sustainable operations, profitability has remained resilient. Gross profitability has remained strong and gross profit margins have held steady at 14.7% (2023: 15.6%), underlining the strength of our business model despite the market downturn.

Looking ahead, Broughton remains confident in its long term prospects. The demand for high quality holiday homes in South and West Wales continues to be supported by the regions enduring appeal as a tourist destination. By strengthening partnerships with lead manufacturers, enhancing the customer experience and adapting our offering to evolve to customer needs we are well placed to take full advantage of future opportunities as the market stabilises and returns to more sustainable levels of demand

             2024         2023

Revenue        £6,765,550    £15,339,586
Gross Profit        £996,902    £2,399,686
GPM %            14.7%        15.6%
Profit before tax        £360,949    £1,931,323

As with many businesses in the leisure and tourism sector, the caravan and holiday home industry is influenced by a range of external factors which create both risk and uncertainties for future performance.

A key area of risk is the general economic environment. Sales of holiday homes are discretionary, and therefore closely tied to levels of consumer confidence, disposable income and access to affordable finance. Rising interest rates, inflationary pressures, or broader economic downturns can reduce affordability and lead to lower demand. In response to changing economic conditions, the business has implemented robust controls maintaining flexibility in its operating model to adapt quickly to variations in the markets.

Supply chain and cost environment
Caravan manufacturing depends on the availability of stock. Supply chain disruption, increased material costs, or production delays can affect both the availability of stock and profitability of sales. Broughton works closely with with its key manufacturing partners to secure reliable stock availability while maintaining a balance of inventory levels to manage fluctuations in demand.

Price risk
Competition within the sector remains strong with several established dealers and manufacturers operating across overlapping markets. This creates potential for pricing pressure and margin erosion, particularly if consumer demand weakens. To mitigate this, Broughton focuses on service quality, after sales support, and long term relationships with many returning customers.

Credit risk
Many customers choose to purchase holiday homes using finance agreements, and rising interest rates or tighter lending criteria could reduce affordability and restrict demand. In addition, shifts in market demand can affect the residual value of pre owned stock impacting trade in activity and associated profitability. Broughton maintains strong relationships with finance providers and regularly reviews customer affordability, ensuring appropriate products remain available to meet a broad range of customer needs.

Climate legislation risk
The potential impact of climate change and the associated future legislation on our business is a concern. We are proactively investing in the future and exploring ways to adapt to the changing landscape.

Manufacturers are under pressure to deliver holiday homes that meet higher standards of energy efficiency, insulation, and sustainability. Consumer expectations are also evolving, sustainability becoming a key consideration for many buyers. Business that fail to adapt risk losing relevance or market share. Therefore, Broughton is proactively working with manufacturers to promote energy efficient and sustainable models that comply with evolving regulatory environments. By supporting holiday park operators with stock that meets new standards and by aligning with customer expectations around sustainability, Broughton is positioning itself to benefit from long term shifts in consumer behaviour and government policy.

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company continued to be that of caravan sales.

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £350,000. The director does not recommend payment of a further dividend.

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

The auditors, Redwood Wales Limited, will be proposed for re appointment at the forthcoming Annual General Meeting.

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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.

We have audited the financial statements of Broughton Leisure Ltd (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 director's 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 director 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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the director's 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 director's 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 director's 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 director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect or irregularities, including fraud.

We obtain an understanding of the legal frameworks that the company operates in, focusing on those laws and regulations that have a direct effect on the Financial Statements or that have a fundamental effect on the operations of the company. The key laws and regulations we consider in this context include the 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 procedures 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 statements disclosures and testing to support 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 closely related to events and transactions reflected in the financial statements. The risk of not detecting material misstatements due to fraud is higher that the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forger or intentional misrepresentation, 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

The 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 ant the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

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

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

Broughton Leisure Ltd is a private company limited by shares incorporated in England and Wales. The registered office is C/o Saundersfoot Bay Leisure Ltd, Broadfield, Saundersfoot, UK, SA69 9DG.

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 under the historical cost convention. The principal 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 4 'Statement of financial position': Reconciliation of the opening and closing number of shares;

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

The financial statements of the company are consolidated in the financial statements of Henson Leisure Holdings Limited These consolidated financial statements are available from its registered office,

The financial statements have been prepared on the going concern basis which assumes that the company will continue in operational existence foe 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.true

The company meets its day to day working capital requirements from its cash reserves and overdraft facilities, from the company's forecasts and projections. However, the extent of reduced consumer spending is unclear and it is difficult to evaluate all potential implications on the company's trade, customers, suppliers and the wider economy.

The directors have a reasonable expectation that with the support of its funded and parent company, in the form of a facility levels which it has historically been provided with, in the scenarios reviewed the company will be able to continue to operate within those facilities.

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 comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is twenty five years.

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.

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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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.

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Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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:

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Henson Leisure Holdings Limited is the ultimate parent company of Broughton Leisure Ltd.

Henson Leisure Holdings Limited prepare consolidated financial statements of which the results of the company are included. The consolidated financial statements are available at the registered office.