The directors present the strategic report for the period ended 29 December 2024.

The Company began trading on 27 March 2024 and has achieved sales of £4,374,110 in the period to 29 December 2024 and a loss before tax of £13,798,965. A significant portion of this loss relates to depreciation, amortisation and interest costs. EBITDA for the period ended at (£57,992). At year end the Company had net liabilities of £13.7m which is mainly driven by parent company loans of £35.9m.

Operational recovery and legacy issues

The business was acquired from administration and inherited operational challenges, including deferred maintenance, incomplete records, and legacy customer issues. Management have focused on bringing in new management systems and implementing controls to mitigate these risks. Key supplier and customer data have been re-established, and capital investment has been prioritised for essential maintenance and infrastructure improvements.

Market and economic conditions

The Company’s performance depends on the strength of the UK domestic tourism and leisure market. Economic uncertainty, inflation, and reduced discretionary spending could reduce holiday occupancy and caravan sales. The Company focuses on flexible pricing strategies, a diversified product mix, and targeted marketing are used to maintain volume and revenue. Management monitors trading trends closely and adjusts operations accordingly.

Reputation and brand transition

Operating under new ownership and the Meadow Bay Villages brand, there is a risk of customer confusion or reputational impact from the insolvency of the former operator. Management have implemented clear lines of communication and a full rebranding plan. Active engagement with owners, guests, and local authorities reinforces the new ownership and operational standards.

Health, safety and regulatory compliance

The Company must comply with a wide range of health, safety, environmental, and licensing regulations. Non-compliance could result in penalties, reputational harm, or disruption to trading. Regular internal audits and external compliance reviews are undertaken. Ongoing staff training ensures compliance and awareness across all operational areas.

Weather and environmental risks

Severe weather, flooding, or other environmental incidents may disrupt operations or cause property damage as well as reducing the demand for holidays. Comprehensive insurance cover is maintained. Investment has been made in drainage, flood defences, and emergency response planning to reduce potential impact.

Liquidity and working capital

As a new business, maintaining sufficient liquidity is critical. Lower than forecast trading or unexpected costs could place pressure on cash resources. The Company maintains detailed cash flow forecasting and monitoring. The Company also benefits from shareholder funding and adequate committed facilities to support working capital needs.

IT systems and data protection

As with many businesses, the Company relies heavily on IT systems to help manage the business, including customer data. Significant investment has been made in new cloud based management systems and enhanced security protocols which is supported by staff training.

The Group considers the key financial performance indicators to be revenue and EBITDA and these are closely monitored on a monthly basis.

The directors remain focused on enhancing the long-term value and sustainability of the Company’s holiday park portfolio. Over the coming year, investment will continue in upgrading site infrastructure and facilities to improve the guest experience and support higher occupancy levels.

Ongoing efficiency initiatives and digital improvements to booking and customer engagement systems are expected to strengthen operating margins and customer retention. The directors will continue to monitor wider economic conditions and consumer confidence levels.

On behalf of the board

The directors present their annual report and financial statements for the period ended 29 December 2024.

The principal activity of the company through the period was the sale of holiday homes and the management of Hayling Island holiday park.

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

Saffery LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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;

• 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.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

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 Country and Coastal Parks 2 Limited (the 'company') for the period ended 29 December 2024 which comprise the statement of comprehensive income, the statement of financial position, 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 29 December 2024 and of its loss for the period 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 period 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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The income statement has been prepared on the basis that all operations are continuing operations.

Country and Coastal Parks 2 Limited is a private company limited by shares incorporated in England and Wales. The registered office is 100 Avebury Boulevard, Milton Keynes, England, MK9 1FH.

These financial statements for the period ended 29 December 2024 are the first financial statements of Country and Coastal Parks 2 Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The current reporting period is from incorporation on 22 February 2024 to 29 December 2024.

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 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 Country and Coastal Parks 2 Holdco Limited. These consolidated financial statements are available from its registered office, 100 Avebury Boulevard, Milton Keynes, England, MK9 1FH.

The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The financial statements have been prepared on a going concern basis. In forming this judgement, the Directors have considered the Company’s financial performance, cash position, available facilities and trading forecasts for a period of at least 12 months from the date of approval of these financial statements.true

For the period ended 29 December 2024, the Company reported a loss before tax of £13.8m, including £3.9m of finance costs, the majority of which relate to intercompany facilities where interest may be paid-in-kind and therefore does not require immediate cash settlement. Post year end trading is showing positive EBITDA, reflecting improved margins and tighter controls over holiday home sales and stock purchasing.

The company also had access to available liquidity through undrawn bank facilities and stock financing. Forecast operating costs are expected to be met through normal trading cash flows, with the Company’s working capital cycle providing regular receipts aligned to expenditure.

The Directors monitor cash flow forecasts on a rolling basis and consider that the Company has sufficient resources to meet its obligations as they fall due for the foreseeable future. Accordingly, the going concern basis of preparation remains appropriate.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods, being the sale of holiday homes and other ancillary items, is recognised when all of the following conditions are satisfied:

• the Group has transferred the significant risks and rewards of ownership to the buyer;

• the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• the amount of revenue can be reliably measured;

• it is probable that the Group will receive the consideration due under the transaction; and

• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from on park spending, being retail, catering and other income, is recognised at the point of sale as this is when the performance obligations are met.

Rendering of services

Revenue from services, being site fees and holiday bookings, is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

• the amount of revenue can be reliably measured;

• it is probable that the Company will receive the consideration due under the contract;

• the stage of completion of the contract at the end of the reporting period can be measure reliably; and

• the costs incurred and the costs to complete the contract can be reliably measured.

For site fees, this revenue is recognised on a straight line basis over the contract period.

Holiday bookings revenue is recognised as when the performance obligation is met, which falls in line with when the holiday is taken. Extras such as pet fees and additional guests are considered to be bundled goods and therefore all revenue is recognised as the holiday is taken.

Goodwill arising on the acquisition of trade and assets represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities 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 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

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 and intangible 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 sell, which is equivalent to net realisable value.

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.

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 company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 occurred 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 flows 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 derecognised 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, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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 income statement 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

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

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 are reviewed on an ongoing basis. 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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

At acquisition management had to determine the fair value of the assets acquired. A number of valuation methods were used.

Land and buildings that had existing development on were valued on the basis of fair maintainable trade while bare land was valued based on a market approach where judgements included determining the capitalisation factor and risk factor to be applied. Market evidence was considered where it was available and internal benchmarking was applied where external data is limited.

Hire fleet and stock units were valued using BREGO valuations and judgement was applied to these figures where stock was significantly older, in worse condition than expected or where there was other evidence such as a recent purchase of the same unit.

Management exercises judgement in assessing whether any impairment of goodwill has arisen.
Goodwill is allocated to the cash-generating unit (CGU) representing the individual holiday park that is expected to benefit from the acquisition.

It was deemed that goodwill primarily represents the underutilised pitches and the development opportunity within these.

Management has applied the following steps:

(a) Recoverable Amount

Recoverable amounts are determined using the higher of value in use (based on discounted cash flow projections) or fair value.

Forecast cash flows are derived from management-approved forecasts and development forecasts covering a reasonable period.

Judgement is applied in:

• Estimating the pace of pitch development or conversion (holiday to residential or owner-occupied),

• Assessing achievable sales values per pitch and corresponding development costs, and

• Determining future site income and margins from both existing and expanded operations.

(b) Discount Rate Selection

The discount rate reflects the risk profile of the cash flows, taking into account borrowing rates and the inherent uncertainty of future developments, to future changes in market conditions, planning outcomes, and financing costs.

Management have exercised judgement in determining the useful economic life of goodwill arising on acquisition.

For the Company’s acquisitions, goodwill primarily represents the expected long-term benefits from the development potential arising from the acquired parks. These benefits are expected to be realised over an extended period. Management have considered the anticipated timeframe expected to deliver development and conversion plans and the period over which the benefits of this are expected to arise.

Management has determined that a 10-year useful economic life is appropriate.

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

Their aggregate remuneration comprised:

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

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

Goodwill impairment has been recognised based on the review of the development potential of the land acquired. The company has used the fair value less cost to sell basis to value the goodwill, this was compared to the value in use present values of the operational business future cash flows. Due to the distressed nature of the sale and the limited information available at completion, the initial values applied were indicative only. The impairment review has therefore been undertaken at the acquisition date. The impairment charge is presented as an exceptional item and does not impact cash flows.

More information on impairment movements in the period is given in note 9.

Goodwill relates to the acquisition of the trade and assets of Hayling Island Holiday Park on 27 March 2024. See note 20 for details regarding this.

Amortisation and impairment of intangible assets is charged to administrative expenses.

As part of the business combination, the freehold property assets acquired were measured at fair value in accordance with FRS 102. In determining fair value, the Company considered a recent independent valuation prepared in respect of the trading assets which applied a fair maintainable trade approach, assessing the level of sustainable turnover and profit reasonably achievable by an efficient operator and capitalising those earnings using market-supported parameters relevant to the sector.

For areas of undeveloped land not capable of being captured within a fair maintainable trade model, fair value was assessed separately using an income-based approach. This reflected the potential future economic benefits of development, adjusted for risk, infrastructure requirements and other relevant costs.

Hire-fleet assets were valued using an established third-party valuation tool widely adopted in the automotive and caravan industry, referencing individual unit characteristics and prevailing market data at the acquisition date.

All other property, plant and equipment — including fixtures, fittings and equipment — were recognised at fair value based on amounts allocated within the agreed purchase arrangements at the acquisition date.

Included in the above is land at a carrying value of £19,782,200 which is not subject to depreciation.

At the period end a loan balance totalling £35,893,526 was owed to Country And Coastal Parks 2 Holdco limited the immediate parent company. The balance is repayable on 26 September 2027, is unsecured and has an interest rate of 15% per annum.

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

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The above is the analysis of the deferred tax balances (after offset) for financial reporting purposes.

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.

On 27 March 2024 the company acquired 100% of the trade and assets of Hayling Island Holiday Park. The acquisition was accounted for using the acquisition accounting method. Recognised amounts of identifiable assets acquired and liabilities assumed at the acquisition date were as follows:

Goodwill arising from acquisition was £9,871,903. This arose from the excess of the consideration transferred over the fair value of the net assets acquired. The goodwill arising on the acquisition of the business is attributable to the uplift in value associated with the group’s strategy for the site. The useful life is anticipated to be 10 years.

No consideration was settled in cash by the company. The controlling shareholders of the company made payment directly to the administrators in settlement of a debt owed by the administrators to the shareholders. This has been recognised in the company through a formal loan from the shareholders. The loan balance due to the ultimate owners can be seen in note 16 of the financial statements.

The loss since acquisition includes impairment losses to goodwill of £9,356,903.

At the period end £35,893,526 was due to the entity's immediate and ultimate parent undertaking - Country and Coastal Parks 2 Holdco Limited. The amount relates a loan repayable on 27 September 2027. The balance is unsecured and interest has been charged at 15%. See note 16 for further details.

At the period end £3,232,125 was owed to Country and Coastal Parks 1 Limited and £138,704 was owed to Country and Coastal Parks 3 Limited, both entities under common control to this entity.

During the year interest was charged on cash transferred from entities under common control totalling £66,141. Interest was charged at 12.5%. Interest was charged by Country and Coastal Parks 1 Limited of £63,068 and Country and Coastal Parks 3 Limited of £3,073.

During the year, interest was received on cash balances transferred to the entities under common control totalling £19,241. Interest was charged at 12.5%, based on the entities borrowing rate. Total interest was received from Country and Coastal Parks 1 Limited of £18,000 and from Coastal and Country Parks 3 of £1,240.

During the period, management charges totalling £514,843 have been charged by Country and Coastal Parks 1 Limited, an entity under common control.

The immediate and ultimate parent undertaking is Country And Costal Parks 2 Holdco Limited, a company registered in England and Wales.

The smallest and largest group undertaking for which group accounts which include the financial results of the company is Country and Coastal Parks 2 Holdco Limited. The registered office is 100 Avebury Boulevard, Milton Keynes, England, MK9 1FH. These consolidated financial statements are publicly available at Companies House.