The directors present the strategic report for the year ended 30 April 2026.

The year ended 30 April 2026 was a significant period for Langdale, combining strong revenue growth and commercial progress with substantial cost pressures and a programme of organisational change across the business.

Turnover increased by 7.8% to £11.8m, with particularly encouraging performance from the hotel business. Accommodation revenue increased by 10.0%, supported by improved occupancy and average room rate, while overall hotel revenue increased by 8.0%.

Changes made to the commercial structure during the year contributed to a strengthening of performance, with the Langdale Hotel significantly outperforming its competitor set during the latter part of the financial year.

Performance across the wider operation was also positive. Wainwrights delivered revenue and cover growth, Spa revenues increased, and the Leisure operation benefited from the return to more normal trading following the previous year's disruption.

Despite this revenue growth, profitability remained under considerable pressure. Increases in employment costs, including National Insurance and National Living Wage changes, represented a significant additional cost to the business. The year also included costs associated with the restructuring of the organisation.

Operating profit before interest and tax increased to £215k, while profit before tax was £77k. Although below the Board's original expectations, the result needs to be viewed in the context of the scale of cost inflation and organisational change experienced during the year.

Strengthening the Business

A major focus during 2025/26 has been ensuring that Langdale has the organisational structure, management capability, and governance required for its next stage of development.

Changes to the Executive and operational structure have established clearer accountability across the Hotel and Timeshare businesses, including dedicated General Manager leadership within each area.

The Board's focus now moves from restructuring to embedding the new organisation and ensuring that stronger commercial performance is converted into sustainable improvements in profitability.

Significant work has also taken place during the year to review the longstanding Management Agreement and associated arrangements between Langdale Leisure Limited and Langdale Owners Club.

The development of a clearer Service Level Agreement is intended to provide greater transparency around service expectations, responsibilities, and accountability and represents an important step in strengthening the governance framework across the Langdale organisations.

The Board has continued to maintain close oversight of financial performance, commercial activity, capital expenditure, cash flow, and banking arrangements, alongside its wider strategic responsibilities for the long-term stewardship of the Langdale Estate.

LOOKING FORWARD

Building on the Progress Made

The priorities for the coming period are clear.

Delivering sustainable profit improvement

The commercial progress achieved during 2025/26 provides a stronger platform from which to improve profitability. The focus will increasingly be on converting revenue growth into sustainable margin improvement while maintaining the quality of the Langdale experience.

Food and beverage profitability will remain an area of particular focus as the business continues to manage wage and supply cost pressures alongside the benefits provided to owners and shareholders.

Embedding the new organisation

The Executive and operational changes made during the year represent the beginning rather than the end of the transformation.

The priority is now to embed the new structure, strengthen management disciplines and accountability, and ensure that the organisation consistently delivers against its commercial, operational, and financial objectives.

Investing in the Langdale Estate

Maintaining the quality and competitiveness of the Estate remains fundamental to Langdale's long-term success.

Planning is progressing around the future refurbishment of elements of the hotel bedroom inventory during 2027 and 2028, alongside wider asset maintenance and investment requirements.

All significant capital investment will continue to be subject to detailed evaluation of the commercial return, funding requirements and affordability before being presented to the Board for approval.

Maintaining financial resilience

Langdale remains sensibly geared and maintains strong cash holdings.

The repayment of the £1m Covid Loan during the year and the renewal of banking facilities provide a sound platform from which to consider future investment requirements.

The Board will continue to maintain close oversight of funding, cash generation and future refinancing requirements as the capital programme develops.

Protecting Langdale for the long term

Langdale's distinctive ownership structure and the relationship between shareholders, timeshare owners and the businesses operating across the Estate remain central to its long-term future.

The Board will continue to focus on good governance, succession planning, clear communication and responsible investment in the Estate, ensuring that commercial decisions support both the financial resilience of the business and the long-term stewardship of Langdale.

A STRONGER PLATFORM FOR THE FUTURE

2025/26 has been a year of considerable change.

The financial result reflects the pressures faced by the hospitality sector and the investment required to reshape the organisation. At the same time, the year has delivered stronger commercial performance, a clearer management structure, improved governance and further progress in planning for the future of the Estate.

The Board believes these developments provide Langdale with a stronger platform from which to deliver sustainable performance and protect the long-term interests of its shareholders and the wider Langdale community.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 April 2026.

The principal activity of the company continues to be the operation and management of the Langdale resort, which includes a hotel and timeshare development.

A detailed review of the business is included in the financial statements of the parent company, Langdale Owners Plc, a copy of which can be obtained from Companies House.

The results for the year are set out on page 10.

The directors have not recommended a dividend.

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

The company holds or issues financial instruments in order to achieve three main objectives, being:

• to finance its operations;

• to manage its exposure to interest and currency risks arising from its operations and from its sources of finance and;

• for trading purposes.

In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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 the directors are aware, there is no relevant audit information of which the company's auditor is unaware. Additionally, the directors 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.

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;

• 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 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.

We have audited the financial statements of Langdale Leisure Limited (the 'company') for the year ended 30 April 2026 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including material 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 30 April 2026 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor 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 ethical responsibilities in accordance with those 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 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.

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 directors' 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, is detailed below:

• enquiring of management and those charged with governance about any known or suspect instances of non-compliance with laws and regulations and fraud;

• enquiring of management and those charged with governance of any actual and potential litigation and claims;

• reviewing the financial statement disclosures and testing of supporting documentation to assess compliance with the relevant laws and regulations. For Langdale Leisure Limited we consider these to be health and safety laws, compliance with food safety and licencing regulations, employment law and compliance with the Companies Act;

• assessing whether the judgements made in making accounting estimates are indicative of any potential bias;

• auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;

• reviewing board minutes and resolutions; and

• auditing the risk of fraud in revenue, including through the testing of the cut off of income at the year end and sales transaction testing to ensure revenue is complete and occurred in the financial statements and recognised in the correct accounting period.

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

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

Langdale Leisure Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Langdale Estate, Great Langdale, Ambleside, LA22 9JD.

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 on the historical cost convention. The principal accounting policies adopted are set out below.

As a qualifying entity, the company has taken advantage of the reduced disclosure exemptions permitted under FRS 102 as follows:

• The requirements of Section 7 ‘Statement of Cash Flows’ and Section 3 'Financial Statement Presentation' paragraph 3.17(d).

• The requirements of Section 11 ‘Basic Financial Instruments’ paragraphs 11.29 to 11.28A and Section 12 ‘Other Financial Instrument Issues’ paragraphs 12.26 to 12.29A.

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

Langdale Leisure Limited is a wholly owned subsidiary of Langdale Owners PLC and the results of Langdale Leisure Limited are included in the consolidated financial statements of Langdale Owners PLC which are available from Companies House, Cardiff.

The directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements. In preparing those forecasts, the directors have considered expected trading performance, available cash resources, scheduled loan repayments and the company’s banking facilities. At 30 April 2026, the company had cash at bank of £3,005,942 and bank loans of £2,989,724. Although the company had net current liabilities of £2,288,684,true included within current liabilities is deferred income of £2,574,965, representing income received in advance from customers for services to be provided in future periods. This balance does not represent a future cash outflow or repayment obligation, but rather income that will be recognised in the profit and loss account as the related services are delivered, the directors are therefore satisfied that the company has adequate resources to continue operating for the foreseeable future. The financial statements have therefore been prepared on a going concern basis.

Timeshare resales income relates to the commission receivable on any timeshares sold on behalf of the owners during the year. This is recognised when the invoice is raised.

Timeshare commission sales are the commissions receivable on sub-lets managed on behalf of the timeshare holders during the period. These are recognised when the week stay occurs.

Timeshare management fees are the annual fees paid by the timeshare owners for the costs incurred by the company for the upkeep of the timeshare units. These are recognised in the profit and loss account when the service is provided to the unit owner. Any amounts invoiced in advance of the customers stay are held in deferred income.

Income received from all other sources are recognised when the service is provided to the customer.

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

Depreciation is recognised so as to write off the cost 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 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).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

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 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, which include debtors and cash and bank balances, 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, 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.

Financial assets 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 the statement of comprehensive income.

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 the statement of comprehensive income.

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 and bank loans, 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 receipts 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.

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.

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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement in respect of employees whom served during the year is fully accrued in the period.

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.

The company operates a defined contribution scheme for the benefit of its employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The annual depreciation charge is based on estimates of the useful economic lives and residual values of tangible fixed assets. Management reviews these estimates at each reporting date, taking account of factors such as expected usage, technical obsolescence and physical condition. Changes in these estimates could result in material adjustments to depreciation charges in future periods.

An analysis of the company's turnover is as follows:

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2025 - 2)

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

Freehold land and buildings with a carrying amount of £6,942,169 (2025 - £7,115,420) have been pledged to secure borrowings of the company.

The bank borrowings are secured by a debenture and cross guarantee between Langdale Leisure Limited and Langdale Owners PLC. Two loans with Barclays Bank are repayable by quarterly instalments until they are due to be refinanced in March 2031 and September 2027. The interest rate is calculated at 2.00% above base rate and 5.68% respectively.The third loan with Barclays Bank is repayable in monthly instalments and is due to end in 1 year. Interest is being charged on this loan at a variable rate.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following 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.

The company has taken advantage of the exemption permitted under Section 33 'Related Party Disclosures' paragraph 33.1A from disclosing transactions with its parent company.

At 30 April 2026, the company's ultimate parent company was Langdale Owners Plc which is a parent of both the smallest and largest groups of which the company is a member. Copies of the consolidated financial statements of Langdale Owners Plc are available from Companies House.

The directors consider that there is no ultimate controlling party as no individual shareholder exercises control over Langdale Owners PLC.