Company Registration Number: 00927469
31 MARCH 2025
HOLKER ESTATES CO. LIMITED
COMPANY INFORMATION
HOLKER ESTATES CO. LIMITED
CONTENTS
HOLKER ESTATES CO. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present the strategic report for the year ended 31 March 2025.
Business activities of the company continued to be the operation of Holker Hall and Gardens, the letting and management of domestic, industrial and agricultural land, holiday park management and the administration of Holker Estate.
Business activities of the company continued to be the operation of Holker Hall and Gardens, the letting and management of domestic, industrial and agricultural land, holiday park management and the administration of Holker Estate.
Holiday Parks
Holker Estates Co. Limited operates two private holiday parks: Old Park Wood and Longlands. Situated in the South Lake district, the parks offer breath-taking views and provide the perfect luxury holiday home alongside a unique feeling of space and tranquillity. Across the parks we are keen to invest in the continued development of facilities and infrastructure and remain committed to providing our residents with an excellent experience. The market has stabilised since the surge in demand following Covid-19 and the business model continues to be effective.
Visitor Attractions
At Holker Hall, the company operates a visitor attraction where guests can immerse themselves in the history and splendour of the Hall and beauty of the Gardens and Parklands. Throughout the year, the picturesque setting hosts a range of unique events, allowing visitors to absorb Holker’s rich heritage whilst offering an unforgettable day out. Visitor numbers and revenues have remained consistent in the current year despite economic pressures on discretionary spend. The objective of Holker’s visitor services operation is to provide guests with captivating experiences which will in-turn drive growth in visitor numbers.
Property Portfolio
The estate manages a diverse property portfolio, including residential properties, commercial buildings, and land investments. Occupancy levels are consistently around 100% with a low turnover of tenants. We have made significant additional investment in property repairs throughout the year and remain committed to improving property standards in the future. The objectives of the property entity are:
• To provide South Lakes residents with quality housing in a market saturated by holiday lets.
• Capital appreciation through effective maintenance and property value growth.
• Maintaining rental values in line with market benchmarks.
Holker Estates Co. Limited operates two private holiday parks: Old Park Wood and Longlands. Situated in the South Lake district, the parks offer breath-taking views and provide the perfect luxury holiday home alongside a unique feeling of space and tranquillity. Across the parks we are keen to invest in the continued development of facilities and infrastructure and remain committed to providing our residents with an excellent experience. The market has stabilised since the surge in demand following Covid-19 and the business model continues to be effective.
Visitor Attractions
At Holker Hall, the company operates a visitor attraction where guests can immerse themselves in the history and splendour of the Hall and beauty of the Gardens and Parklands. Throughout the year, the picturesque setting hosts a range of unique events, allowing visitors to absorb Holker’s rich heritage whilst offering an unforgettable day out. Visitor numbers and revenues have remained consistent in the current year despite economic pressures on discretionary spend. The objective of Holker’s visitor services operation is to provide guests with captivating experiences which will in-turn drive growth in visitor numbers.
Property Portfolio
The estate manages a diverse property portfolio, including residential properties, commercial buildings, and land investments. Occupancy levels are consistently around 100% with a low turnover of tenants. We have made significant additional investment in property repairs throughout the year and remain committed to improving property standards in the future. The objectives of the property entity are:
• To provide South Lakes residents with quality housing in a market saturated by holiday lets.
• Capital appreciation through effective maintenance and property value growth.
• Maintaining rental values in line with market benchmarks.
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HOLKER ESTATES CO. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The principal risks and uncertainties to the business relate to:
The continuous uncertainty of the economy amid the cost-of-living squeeze affecting consumer discretionary spending and government policy on taxes, living wages and property legislation driving up costs.
Changes in legislation across our operations, including the government proposals requiring all let properties to achieve a minimum energy efficiency rating of Band C on the EPC scale by 2030. A significant portion of the Group’s residential property portfolio currently falls below this threshold. Compliance with these upcoming requirements will necessitate investment in energy efficiency improvements, which will increase capital expenditure in the coming years and a review of the property portfolio yields.
Changes in consumer preferences and travel patterns may create future uncertainty within the UK leisure and tourism sectors.
Climatic conditions have a significant impact upon our tourism, leisure and letting operations and legislation. Climate change and government carbon reduction commitments create further medium and long-term uncertainty.
We have a zero-based approach within the business for risk management and identification. Significant risks are reviewed by the executive team. This enables us to remain fluid and react quickly to legislative changes and market conditions.
The continuous uncertainty of the economy amid the cost-of-living squeeze affecting consumer discretionary spending and government policy on taxes, living wages and property legislation driving up costs.
Changes in legislation across our operations, including the government proposals requiring all let properties to achieve a minimum energy efficiency rating of Band C on the EPC scale by 2030. A significant portion of the Group’s residential property portfolio currently falls below this threshold. Compliance with these upcoming requirements will necessitate investment in energy efficiency improvements, which will increase capital expenditure in the coming years and a review of the property portfolio yields.
Changes in consumer preferences and travel patterns may create future uncertainty within the UK leisure and tourism sectors.
Climatic conditions have a significant impact upon our tourism, leisure and letting operations and legislation. Climate change and government carbon reduction commitments create further medium and long-term uncertainty.
We have a zero-based approach within the business for risk management and identification. Significant risks are reviewed by the executive team. This enables us to remain fluid and react quickly to legislative changes and market conditions.
Total revenue saw a decline of 5% compared to the previous year, driven primarily by a reduction in static van sales.
The gross profit margin increased from 73% to 79%. As a result, gross profit increased from £5.3m to £5.5m, showcasing the resilience of the diverse activities across the company.
Despite this, the operating loss increased in 2025. This was attributable to staff costs; with the statutory minimum wage uplift being a key driver.
The gross profit margin increased from 73% to 79%. As a result, gross profit increased from £5.3m to £5.5m, showcasing the resilience of the diverse activities across the company.
Despite this, the operating loss increased in 2025. This was attributable to staff costs; with the statutory minimum wage uplift being a key driver.
We continue to build upon the Holker brand and strong foundations laid in prior years and whilst new economic challenges to the hospitality and tourism sectors exist, we are well positioned and continue to put customers, staff, local stakeholders and the environment first in terms of our decision making.
Holker Estates Co. Limited continues to perform as the core, primary public facing part of the Holker Group, emphasising everything that is positive about the organisation, its ethos and its values. The company recognises its pivotal role in supporting and developing the interests of the local and wider community, and the strength of the underlying business is key in maintaining, supporting and growing local, regional residential and business ventures.
Tourism is key to the South Lake District and wider Cumbrian economy and in order to further define the Holker footprint, our tourism and leisure strategy remains under constant review. Quality, service and value will be at the forefront in everything we do as the business seeks to deliver a fantastic programme of events across the wider Estate. Holker Estates Co. Limited is proud of its roots in the Cartmel Peninsula and will continue to invest in people, infrastructure, assets and community relationships.
Holker Estates Co. Limited continues to perform as the core, primary public facing part of the Holker Group, emphasising everything that is positive about the organisation, its ethos and its values. The company recognises its pivotal role in supporting and developing the interests of the local and wider community, and the strength of the underlying business is key in maintaining, supporting and growing local, regional residential and business ventures.
Tourism is key to the South Lake District and wider Cumbrian economy and in order to further define the Holker footprint, our tourism and leisure strategy remains under constant review. Quality, service and value will be at the forefront in everything we do as the business seeks to deliver a fantastic programme of events across the wider Estate. Holker Estates Co. Limited is proud of its roots in the Cartmel Peninsula and will continue to invest in people, infrastructure, assets and community relationships.
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HOLKER ESTATES CO. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
This report was approved by the board and signed on its behalf.
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HOLKER ESTATES CO. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
The loss for the year, after taxation, amounted to £296,033 (2024 - loss £185,960).
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The directors who served during the year were:
Holker Estate Co. Limited continues to perform at the core of the Holker Group, emphasising everything which is positive about the organisation and its values. The business is at the centre of the wider community and continues to play a pivotal role in supporting and developing the fortunes of the local and wider community.
Financial Risk
The business principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.
In respect of the bank balance, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. The business makes use of money market facilities where funds are available.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Loans comprise interest-free loans from the group companies and connected entities and variable rate loans from financial institutions. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the repayments.
The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.
The business principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.
In respect of the bank balance, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. The business makes use of money market facilities where funds are available.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Loans comprise interest-free loans from the group companies and connected entities and variable rate loans from financial institutions. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the repayments.
The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.
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HOLKER ESTATES CO. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Armstrong Watson Audit Limited will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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HOLKER ESTATES CO. LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙make judgments 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 to 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.
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HOLKER ESTATES CO. LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HOLKER ESTATES CO. LIMITED
We have audited the financial statements of Holker Estates Co. Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of 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 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.
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.
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HOLKER ESTATES CO. LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HOLKER ESTATES CO. LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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HOLKER ESTATES CO. LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HOLKER ESTATES CO. LIMITED (CONTINUED)
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and other management;
• we assessed the extent of compliance with the laws and regulations identified above through making enquires of management; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non compliance throughout audit.
We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
• making enquires of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions; and
• reviewed the application of accounting policies, particularly in relation to those judgemental or uncertain areas.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• enquiring of management as to actual and potential litigation and claims.
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HOLKER ESTATES CO. LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HOLKER ESTATES CO. LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's 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.
for and on behalf of
Statutory Auditors
Chartered Accountants
Carlisle
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HOLKER ESTATES CO. LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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HOLKER ESTATES CO. LIMITED
REGISTERED NUMBER: 00927469
BALANCE SHEET
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 31 form part of these financial statements.
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HOLKER ESTATES CO. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Holker Estates Co. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cavendish House, Kirkby-in-Furness, Cumbria, LA17 7UN.
2.Accounting policies
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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
Holker Estates Co. Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements. Exemptions have been taken in relation to presentation of a cash flow statement, financial instruments and remuneration of key management personnel. Holker Holdings Limited is the parent of the group in whose consolidated financial statements the results of Holker Estates Co. Limited are included. The consolidated financial statements of Holker Holdings Limited are publicly available. The registered office of Holker Holdings Limited is Cavendish House, Kirkby-In-Furness, Cumbria, LA17 7UN.
• Historical performance
• Available funding
• Cost management
• Customer and supplier relationships
• Economic climate, industry outlook and volatility
While the directors are confident in the Company's ability to continue as a going concern, they recognise that there are inherent uncertainties in the business environment, including economic conditions, market competition, and unforeseen events. The directors are committed to closely monitoring these factors and taking necessary actions to ensure the Company's continued viability.
On the basis of the company’s forecasts and having confirmed the continuing financial support of the group and associated entities, the Directors have formed the judgement that, at the time of approving the financial statements, there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Directors continue to adopt the going concern basis in preparing the financial statements.
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Government grants relating to turnover include the Basic Payment Scheme and Environmental Stewardship Schemes and are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
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.
Current 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
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exception.
Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reversed, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Investment property rented to other group entities and accounted for under the cost model is stated at historical cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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.
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value , the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Financial instruments are recognised in the company's balance sheet 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
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
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.
Derecognition of financial assets
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.
Classification of financial liabilities
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.
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Basic financial 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Provisions
Provision is made for bad and doubtful debts and obsolete stock. These provisions require management's best estimate of the recoverability of trade debtors and the expected future use of stock.
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
9.Taxation (continued)
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Capital redemption reserve
Profit and loss account
(b) The Company has given a restoration bond amounting to £150,000 to Hydrocarbon Resources Limited in respect of the land the Company is currently working.
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HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 30
HOLKER ESTATES CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The immediate parent undertaking is Holker Holdings Limited , a company incorporated and registered in England and Wales. This is the smallest and largest group in which this company is consolidated. Copies of the Holker Holdings Limited financial statements are available from its registered office at Cavendish House, Kirkby-In-Furness, Cumbria, LA17 7UN.
The company is under the ultimate control of theCavendish 1959 Settlement .
The company is under the ultimate control of the
Page 31