Company Registration Number 00346999
LAKE DISTRICT ESTATES COMPANY LIMITED
COMPANY INFORMATION
LAKE DISTRICT ESTATES COMPANY LIMITED
CONTENTS
LAKE DISTRICT ESTATES COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2026
Our core objective is to be an influential, family-owned business within the vibrant Cumbrian tourism sector, positively impacting the local economy, community well-being, and environmental sustainability.
To realise our objectives, our strategy encompasses several key pillars:
Distinctive Destinations
We are committed to delivering special and memorable visitor experiences set within the stunning landscapes of Cumbria and surrounding area. Our offers are carefully considered to ensure that each site delivers a distinctive experience with enduring appeal.
Delivering Outstanding Guest Experiences
Our goal is to provide consistently exceptional service and create lasting memories for every visitor. We strive for excellence at every stage of the customer journey, from the initial enquiry to the moment of departure.
Investing in Our People
Our workforce is central to our success. We are dedicated to building a knowledgeable, motivated, and high performing team through continuous training, mentoring, and support. We aim to empower our staff to grow and thrive within the business.
Operating Responsibly and Sustainably
We take our responsibilities seriously and embed sustainability, community engagement, and health and safety into every aspect of our operations. We are committed to reducing our environmental impact, supporting our local communities, and ensuring a safe, inclusive environment for our guests and employees alike.
Distinctive Destinations
We are committed to delivering special and memorable visitor experiences set within the stunning landscapes of Cumbria and surrounding area. Our offers are carefully considered to ensure that each site delivers a distinctive experience with enduring appeal.
Delivering Outstanding Guest Experiences
Our goal is to provide consistently exceptional service and create lasting memories for every visitor. We strive for excellence at every stage of the customer journey, from the initial enquiry to the moment of departure.
Investing in Our People
Our workforce is central to our success. We are dedicated to building a knowledgeable, motivated, and high performing team through continuous training, mentoring, and support. We aim to empower our staff to grow and thrive within the business.
Operating Responsibly and Sustainably
We take our responsibilities seriously and embed sustainability, community engagement, and health and safety into every aspect of our operations. We are committed to reducing our environmental impact, supporting our local communities, and ensuring a safe, inclusive environment for our guests and employees alike.
Risk Management Framework
The company maintains a comprehensive risk register, which forms a central part of its risk management framework. This register is used to systematically identify, assess, and manage key risks that may affect the organisation’s operations, financial performance, and long-term sustainability.
Each risk is assigned a severity rating, a designated owner, and a set of mitigating actions. The register is reviewed on a regular basis to ensure that emerging risks are captured and that existing risks are reassessed in light of changing internal and external conditions.
The Group operates a diverse portfolio of visitor attractions, public transport services, retail outlets, and accommodation. As such, it is exposed to a number of risks and uncertainties, including:
External Events
The business is vulnerable to external events that may deter or prevent visitors from travelling, such as health crises, pandemics, terrorism, natural disasters, and extreme weather. The Group mitigates these risks through operational resilience planning and appropriate insurance coverage.
The company maintains a comprehensive risk register, which forms a central part of its risk management framework. This register is used to systematically identify, assess, and manage key risks that may affect the organisation’s operations, financial performance, and long-term sustainability.
Each risk is assigned a severity rating, a designated owner, and a set of mitigating actions. The register is reviewed on a regular basis to ensure that emerging risks are captured and that existing risks are reassessed in light of changing internal and external conditions.
The Group operates a diverse portfolio of visitor attractions, public transport services, retail outlets, and accommodation. As such, it is exposed to a number of risks and uncertainties, including:
External Events
The business is vulnerable to external events that may deter or prevent visitors from travelling, such as health crises, pandemics, terrorism, natural disasters, and extreme weather. The Group mitigates these risks through operational resilience planning and appropriate insurance coverage.
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LAKE DISTRICT ESTATES COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2026
Economic Conditions
Consumer spending on holidays is discretionary and can decline during periods of economic uncertainty or pressure on household budgets. Currency fluctuations also influence domestic tourism, with a weaker Sterling typically encouraging more people to holiday in the UK.
Interest Rates
Following significant capital investment in recent years, much of which was financed through bank borrowing, the Group now faces increased exposure to interest rate fluctuations. Rising interest rates represent a material cost and are closely monitored and managed.
Weather Dependency
Visitor numbers, particularly during the key summer months from mid-July to the end of August, are heavily influenced by weather conditions. The Group continues to invest in weather-resilient facilities to ensure a quality visitor experience in all conditions.
Health and Safety
Operating public attractions, accommodation, and transport services presents inherent health and safety risks. The Group actively manages these through robust policies, staff training, and regular audits. Comprehensive third-party insurance is also maintained to protect against potential claims arising from incidents beyond the Group’s control.
Governmental Policy and Legislative Change
Evolving government policy continues to present challenges across several areas of the business. Above inflation increases to the National Living Wage (NLW), together with last year’s changes to National Insurance, have contributed to sustained cost pressures. The forthcoming implementation of the Employment Rights Act, due to come into force in July, is expected to introduce further obligations for employers. In addition, the Renters’ Rights Act is now in place, bringing additional compliance requirements. Continued mandated increases to the NLW will inevitably impact pricing and may influence employment opportunities.
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LAKE DISTRICT ESTATES COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2026
Performance Highlights (Year Ended 31 January 2026)
Within Holiday Parks, trading conditions have continued to improve gradually, particularly in the lodge market, with sales strengthening as the year progressed. We are well placed to benefit further from this up turn with the creation of new lodge pitches at our Hill of Oaks Park in Windermere.
Our holiday sales have continued to perform well across all of our self-catering types with occupancy levels holding up across all accommodation styles. This performance continues to be supported by very positive guest feedback.
The year saw a strong start at our visitor attraction – the Ullswater ‘Steamers’ – which experienced a very positive spring helped by sustained favourable weather driving higher visitor numbers. Trading conditions became more challenging during the summer season as periods of unsettled and unfavourable weather impacted visitor attendance, creating some pressure on trading compared with the earlier part of the year. Throughout the year, secondary spend has been below expectations, particularly within our catering operations with the on going ‘cost of living’ crisis which has squeezed disposable income for families, the likely cause.
The ‘Steamers’ has had to manage an added complication of the closure of Kirkstone Pass, a main route for visitors to reach Glenridding Pier, from November 2025. Initial reports suggested that the road will remain closed for several months but current estimates suggest the road will reopen in July 2026. Further to that, Pooley Bridge Pier was closed for a 12-week period during the year to facilitate the replacement of the wooden deck. While this required the ‘Steamers’ to operate an amended timetable towards the end of the season, the works have delivered a higher-quality visitor experience, alongside enhanced safety features including anti-slip planking.
Our retail operations have underperformed expectations, reflecting the wider challenges in secondary spend observed across our attractions. This trend has been felt across the Lakes with many businesses reporting similar trading patterns. Online, our retail business has continued to see the decline in sales linked to supply disruption relating to one of our major sales lines. Notwithstanding these issues, customer response remains positive.
During the previous year, we made the strategic decision to identify and prepare selected residential properties for sale reflecting our commitment to reallocating capital from lower-yielding assets into areas of the business that offer stronger growth and return potential. This process has been well under way this year with a number of properties being sold and marketed for sale.
Health, Safety & Environmental Initiatives
We remain firmly committed to the health, safety and well-being of our employees and guests, which continues to be our highest operational priority. Our health and safety framework is regularly reviewed and strengthened to reflect evolving best practice, regulatory requirements and the specific risks across our operations, ensuring a safe and secure environment for all.
Alongside this, sustainability remains an important focus for the Group and is embedded within both new investments and enhancements to existing operations. We have allocated dedicated budget to support these initiatives, reflecting our long-term commitment to reducing our environmental footprint.
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LAKE DISTRICT ESTATES COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2026
Despite the on-going head winds in the economy this year, turnover increased to £16.0m (PY: £14.1m). Gross profit margin decreased to 68% (PY: 72%) due to changes in sales mix. The increase in turnover was primarily driven by higher caravan and lodge sales, while revenue streams such as property rental, and fares remained stable. Retail income declined from last year reflecting the ongoing challenges to discretionary spend.
Administrative expenses fell by 2% to £9.1m, driven by efforts to control costs where possible.
Fair value gains were £0.7m in the current year, up from £nil in the prior year, reflecting property value growth. Group operating profit saw a significant increase in the year at £2.4m (PY: £0.9m), as shown on page 11 of this report.
Interest costs decreased to £0.7m, down 22% on the prior year, helped primarily by falling interest rates and the proceeds of some early residential property sales. The year-end net cash position was £0.1m (PY: £1.5m overdrawn) reflecting improved trade in the year and proceeds from property sales, while total borrowings decreased to £11.7m (PY: £12.6m) as a result of scheduled capital repayments.
Administrative expenses fell by 2% to £9.1m, driven by efforts to control costs where possible.
Fair value gains were £0.7m in the current year, up from £nil in the prior year, reflecting property value growth. Group operating profit saw a significant increase in the year at £2.4m (PY: £0.9m), as shown on page 11 of this report.
Interest costs decreased to £0.7m, down 22% on the prior year, helped primarily by falling interest rates and the proceeds of some early residential property sales. The year-end net cash position was £0.1m (PY: £1.5m overdrawn) reflecting improved trade in the year and proceeds from property sales, while total borrowings decreased to £11.7m (PY: £12.6m) as a result of scheduled capital repayments.
Following a year that has seen a degree of recovery in caravan and lodge sales we remain cautiously optimistic about the year ahead and anticipate a continuation of trends seen in the prior year, though at the time of writing the full impact of the geopolitical situation in the Middle East is as yet unknown.
Our programme of residential property disposals continues to progress and is expected to further strengthen our balance sheet and leverage position, allowing us to reinvest in high-returning areas and support the Group’s long-term growth ambitions.
In summary, despite significant headwinds in the year, the Group has taken proactive steps to manage costs and strengthen its position. Early trading in 2026 has shown positive signs, and we are well placed to build on this momentum. Our focus remains on delivering excellent visitor experiences, supporting our team and managing our financial position so that we can invest sustainably for the future.
People
We remain sincerely appreciative of the commitment shown by our teams across all areas of the business. In what has been a challenging trading environment, their resilience, adaptability and continued focus have been instrumental. We remain committed to investing in the training, support and development of our people, recognising their central role in delivering sustainable performance and future success.
Our programme of residential property disposals continues to progress and is expected to further strengthen our balance sheet and leverage position, allowing us to reinvest in high-returning areas and support the Group’s long-term growth ambitions.
In summary, despite significant headwinds in the year, the Group has taken proactive steps to manage costs and strengthen its position. Early trading in 2026 has shown positive signs, and we are well placed to build on this momentum. Our focus remains on delivering excellent visitor experiences, supporting our team and managing our financial position so that we can invest sustainably for the future.
People
We remain sincerely appreciative of the commitment shown by our teams across all areas of the business. In what has been a challenging trading environment, their resilience, adaptability and continued focus have been instrumental. We remain committed to investing in the training, support and development of our people, recognising their central role in delivering sustainable performance and future success.
This report was approved by the board and signed on its behalf.
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LAKE DISTRICT ESTATES COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2026
The directors present their report and the financial statements for the year ended 31 January 2026.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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.
The profit for the year, after taxation, amounted to £1,316,544 (2025 - loss £41,458).
During the year dividends of £Nil (2025 - £Nil) were declared.
The directors who served during the year were:
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LAKE DISTRICT ESTATES COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2026
Plans for the future include improvement to the company’s digital systems, improved facilities at the holiday parks, upgrading of properties in general to meet energy performance standards and extending the retail offer. Work will also be carried out to assess the company’s carbon footprint and plans drawn up for moving to net zero.
There were no post balance sheet events to disclose at the date the financial statements were signed.
Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited will be deemed to have been reappointed as auditors 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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LAKE DISTRICT ESTATES COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT ESTATES COMPANY LIMITED
We have audited the financial statements of Lake District Estates Company Limited (the 'company') for the year ended 31 January 2026, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, 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 Auditors' 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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LAKE DISTRICT ESTATES COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT ESTATES COMPANY 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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LAKE DISTRICT ESTATES COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT ESTATES COMPANY 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 Auditors' 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:
The extent to which the audit was considered capable of detecting irregularities including fraud
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:
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, and from our commercial knowledge and experience of the sector;
∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the 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 enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
∙reviewing the key areas of the financial statements most susceptible to fraud whilst tailoring our audit plans.
To address the risk of fraud through management bias and override of controls, we:
∙performed analytical procedures to identify any unusual or unexpected relationships;
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LAKE DISTRICT ESTATES COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT ESTATES COMPANY LIMITED (CONTINUED)
∙tested journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates, such as the investment property valuations were indicative of potential bias;
∙investigated the rationale behind significant or unusual transactions; and
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 Auditors' 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 Auditors' 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.
Chartered Accountants and Statutory Auditors
Carlisle
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LAKE DISTRICT ESTATES COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2026
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LAKE DISTRICT ESTATES COMPANY LIMITED
REGISTERED NUMBER: 00346999
STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2026
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LAKE DISTRICT ESTATES COMPANY LIMITED
REGISTERED NUMBER: 00346999
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JANUARY 2026
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
The notes on pages 15 to 33 form part of these financial statements.
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LAKE DISTRICT ESTATES COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2026
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
Lake District Estates Company Limited ('the company') is a limited company incorporated in the United Kingdom. The address of the registered office and principal place of business is Maudlands, Maude Street, Kendal, Cumbria, LA9 4QD.
The principal activity of the company is the provision of visitor attractions and public transport, retail outlets and accommodation for visitors and others in the Lake District and Cumbria.
These financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the company operates.
The principal activity of the company is the provision of visitor attractions and public transport, retail outlets and accommodation for visitors and others in the Lake District and Cumbria.
These financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the company operates.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A.
This information is included in the consolidated financial statements of Lake District Holdings Limited as at 31 January 2026 and these financial statements may be obtained from the Registered Office.
At the balance sheet date, the company had £600k of net current liabilities and net assets of £27.7m after a profit after tax of £1.12m.
The Directors continue to monitor the cash position and have produced cashflow forecasts to ensure that there is sufficient cash to pay creditors as liabilities fall due for at least 12 months from signing the financial statements. They therefore deem the going concern basis appropriate.
The Directors continue to monitor the cash position and have produced cashflow forecasts to ensure that there is sufficient cash to pay creditors as liabilities fall due for at least 12 months from signing the financial statements. They therefore deem the going concern basis appropriate.
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
2.Accounting policies (continued)
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
2.Accounting policies (continued)
Land is not depreciated. Depreciation on other assets 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.
Deferred tax is provided on these gains at the rate expected to apply when the property is sold.
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
2.Accounting policies (continued)
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at cost less impairment. the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at cost less impairment. the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
Judgments and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(a) Establishing useful economic lives for depreciation purposes of property, plant and equipment
Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant portion of the total fixed assets. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The directors regularly review these assets useful economic lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation charges for the period. Details of the depreciation policies based on estimated useful economic lives are included in accounting policies note 2.14.
(b) Revaluation of investment property
Under FRS102, investment property must be accounted for at its fair value in the financial statements. The directors review the revaluation each year, which requires their judgement to apply reasonable assumptions when calculating the true and fair value of each investment property. The directors engage with experts to value investment property on a 3 year cycle. On years where an expert isn't used, the directors use existing valuations together with their own assumptions to assess the fair value. The directors deem using a yield percentage of annual rental income an appropriate measure to calculate the fair value of each investment property to the company.
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
12.Taxation (continued)
There were no factors that may affect future tax charges.
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
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LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
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Page 27
LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
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The 2025 valuations were made by H&H Land & Estates, on an open market value basis.
The directors have reviewed the value of investment properties at the year end and are comfortable with the valuation.
The directors have reviewed the value of investment properties at the year end and are comfortable with the valuation.
Page 28
LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
Page 29
LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
Page 30
LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
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Page 31
LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
23.Deferred taxation (continued)
Share premium account
Investment property revaluation reserve
Profit and loss account
An unlimited guarantee has been given by the company in respect of the Lake District Holdings Group's borrowings with Barclays Bank Plc.
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £104,511 (2025 - £106,570 ). Contributions totaling £NIL (2025 - £NIL) were payable to the fund at the reporting date.
Page 32
LAKE DISTRICT ESTATES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2026
The ultimate parent undertaking is Lake District Holdings Limited , a company registered in England and Wales.
The entity has taken the exemption not to disclose related party transactions with wholly owned subsidiaries. Key management personnel have been disclosed at group level within Lake District Holdings Limited financial statements.
The entity has taken the exemption not to disclose related party transactions with wholly owned subsidiaries. Key management personnel have been disclosed at group level within Lake District Holdings Limited financial statements.
Page 33