Company Registration No. 02060782 (England and Wales)
LANGDALE LEISURE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2018
LANGDALE LEISURE LIMITED
COMPANY INFORMATION
Directors
Mr D E Watler
Mr N O Lancaster
Secretary
Mrs A L Durnall
Company number
02060782
Registered office
The Langdale Estate
Great Langdale
Ambleside
LA22 9JD
Auditor
MHA Moore and Smalley
Richard House
9 Winckley Square
Preston
PR1 3HP
LANGDALE LEISURE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
LANGDALE LEISURE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2018
- 1 -
The directors present the strategic report for the year ended 30 April 2018.
Summary
We are able to report our most successful year financially for some time. Profits before tax were £264,754 (2017: loss of £66,601). This was achieved in the first full year of executive leadership under Nick Lancaster so completes a smooth transition from Joe Longmuir. It was the first complete year for some time without any major construction activities and so it was anticipated that it would be financially successful. Nick has been tasked with running the business profitably with an emphasis on standards and customer care. We are reaping the benefits of our developments over the last 5 years, brilliantly designed and constructed under the leadership of Joe Longmuir. In addition, we resolved the kitchen staff issues which plagued the previous year and benefitted from increased turnover and improved cost control. The current year has begun well but we face increased competition.
Financial
The financial improvement was based on increased turnover and proportionately reduced direct costs. Turnover was up to £8,857,804 (2017: £8,319,483) an increase of 6.5%. Cost of sales reduced as a proportion of turnover to 64.5% from 67.1%. Overheads increased by 2.6%.
As indicated above, all these improvements flowed through to net profit before tax of £264,754 (2017: loss of £66,601). The profit for the year, after tax, was £191,076 (2017: £4,855), so our funds as shareholders increased to £4,895,294 (2017: £4,704,218). As there was only modest capital expenditure £408,168 (2017: £2,710,092) our cash at bank strengthened throughout the year to £894,505 (2017: £342,528) and our bank borrowing reduced to £4,896,180 (2017: £5,116,466). The initial 5-year period of the Brimstone Hotel loan expired, and this was renewed at an almost identical fixed rate for another 5 years at 3.55%. The downside of lower capital expenditure and higher cash reserves is that we have to make a payment of Corporation Tax this year.
Principal Risks and Uncertainties
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The company currently has bank borrowing with Barclays, used to fund capital spending projects from previous years. Changes in borrowing facilities could affect the company’s ability to continue its improvement of facilities on the estate
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The business has renewed its loan relating to the Brimstone Hotel for another 5 years at a fixed interest rate of 3.55%. The business maintains good relations with Barclays bank.
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Advancements in Technology
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The company must keep up with changes in technology to ensure it reaches its customers across all digital platforms to maintain bookings and ultimately high occupancy levels
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Direct web bookings continue to increase and the company’s online presence across platforms is carefully managed.
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The company won the award for green hotel of the year in 2013 and therefore has a reputation to maintain. It is also important given increasing utility costs that the company continues its green practices to control such costs
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The company continues to update its working practices wherever it is able and introduces new ones which are greener.
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LANGDALE LEISURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
- 2 -
Principal Risks and Uncertainties (continued)
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The business could be impacted by the loss of key individuals and not being able to recruit quality members of staff
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The company currently provides staff accommodation and is planning on providing additional staff accommodation, which should help with recruitment. Staff facilities have been improved this year with existing accommodation being updated and a refurbishment of the staff canteen being undertaken.
The company promotes internally wherever appropriate
|
Future
We have to ensure we stay ahead of the competition. Brexit will have an impact on the company, however businesses have to operate where they find themselves. In turnover terms it should have a slightly positive impact as staycation is encouraged; such benefits are likely to be offset by increased costs from indirect importation but maintaining a full complement of staff will be challenging. This year should see capital expenditure on staff accommodation and updating of Electrical Distribution Boards as the main items.
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.
Mr N O Lancaster
Director
5 September 2018
LANGDALE LEISURE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2018
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2018.
Principal activities
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.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D E Watler
Mr N O Lancaster
Results and dividends
The results for the year are set out on page 8.
The directors have not recommended a dividend.
Financial instruments
The company holds or issues financial instruments in order to achieve three main objectives, being:
In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.
Auditor
The auditor, MHA Moore and Smalley, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
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.
On behalf of the board
Mr N O Lancaster
Director
5 September 2018
LANGDALE LEISURE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2018
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LANGDALE LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LANGDALE LEISURE LIMITED
- 5 -
Opinion
We have audited the financial statements of Langdale Leisure Limited (the 'company') for the year ended 30 April 2018 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, 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 FRS 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 2018 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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' r
eport 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.
LANGDALE LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANGDALE LEISURE LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where 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.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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.
Auditor's responsibilities for the audit of the financial statements
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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
LANGDALE LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANGDALE LEISURE LIMITED
- 7 -
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.
Jenny McCabe (Senior Statutory Auditor)
for and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
Richard House
9 Winckley Square
Preston
PR1 3HP
13 September 2018
LANGDALE LEISURE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2018
- 8 -
2018
2017
Notes
£
£
Turnover
3
8,857,804
8,319,483
Cost of sales
(5,712,469)
(5,582,395)
Gross profit
3,145,335
2,737,088
Administrative expenses
(2,711,585)
(2,642,537)
Operating profit
4
433,750
94,551
Interest receivable and similar income
7
208
669
Interest payable and similar expenses
8
(169,204)
(161,821)
Profit/(loss) before taxation
264,754
(66,601)
Tax on profit/(loss)
9
(73,678)
71,456
Profit for the financial year
191,076
4,855
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
LANGDALE LEISURE LIMITED
BALANCE SHEET
AS AT
30 APRIL 2018
30 April 2018
- 9 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
10
11,814,082
12,142,649
Current assets
Stocks
11
73,082
65,022
Debtors
12
1,206,796
1,213,672
Cash at bank and in hand
894,505
342,528
2,174,383
1,621,222
Creditors: amounts falling due within one year
13
(3,934,403)
(3,751,978)
Net current liabilities
(1,760,020)
(2,130,756)
Total assets less current liabilities
10,054,062
10,011,893
Creditors: amounts falling due after more than one year
14
(4,589,969)
(4,799,250)
Provisions for liabilities
17
(568,799)
(508,425)
Net assets
4,895,294
4,704,218
Capital and reserves
Called up share capital
20
3,685,000
3,685,000
Profit and loss reserves
1,210,294
1,019,218
Total equity
4,895,294
4,704,218
The financial statements were approved by the board of directors and authorised for issue on 5 September 2018 and are signed on its behalf by:
Mr D E Watler
Mr N O Lancaster
Director
Director
Company Registration No. 02060782
LANGDALE LEISURE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2018
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2016
3,685,000
1,014,363
4,699,363
Year ended 30 April 2017:
Profit and total comprehensive income for the year
-
4,855
4,855
Balance at 30 April 2017
3,685,000
1,019,218
4,704,218
Year ended 30 April 2018:
Profit and total comprehensive income for the year
-
191,076
191,076
Balance at 30 April 2018
3,685,000
1,210,294
4,895,294
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2018
- 11 -
1
Accounting policies
Company information
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.
1.1
Accounting convention
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 a
mounts
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’
paragraph 33.7
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.
1.2
Going concern
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
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 lodge owners for the costs incurred by the company for the upkeep of the lodges. These are recognised in the profit and loss account when the service is provided to the lodge 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.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2-10% per annum
Plant and machinery
5-50% per annum
Fixtures & fittings
5-33% per annum
Motor vehicles
20% per annum
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
.
1.5
Impairment of fixed assets
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
1.6
Stocks
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.
1.7
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
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
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.
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
1
Accounting policies
(Continued)
- 13 -
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 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.
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.
Basic financial 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. A
m
ounts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
1
Accounting policies
(Continued)
- 14 -
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 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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement 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.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
- 15 -
2
Judgements and key sources of estimation uncertainty
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Depreciation
In determining the appropriate depreciation rates for the Company’s assets, management reviews the operating policies of the business and makes judgements as to the applicable useful economic lives of the assets, considering residual values.
Classification of finance and operating leases
At the inception of each lease, management undertake an assessment of the terms of the lease including payments to be made over the life of the lease, the fair value of the asset subject to the lease, the length of the lease and whether the terms of the lease transfer substantially all of the risks and rewards of ownership.
Based on this assessment, management will determine whether the lease should be classified as a finance or operating lease.
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.
The residual value and estimated useful life of freehold property
At the acquisition date of the property, management made an assessment of the useful life of the property. They have used their knowledge of the business, geographical area and the property itself in reaching a decision of a useful life of 50 years.
Management have also assessed the estimated residual value of the property at the end of its 50 year useful life. Using the factors noted above they have reached an appropriate residual value which has been applied in the depreciation calculation.
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
- 16 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2018
2017
£
£
Turnover analysed by class of business
Timeshare Sales
106,719
161,689
Timeshare Commissions
213,776
216,598
Timeshare Management Fees
1,404,063
1,459,498
Hotel Accommodation
3,138,843
2,922,431
Food & Beverages
2,830,418
2,742,081
Club
869,037
541,316
Services
294,948
275,870
8,857,804
8,319,483
2018
2017
£
£
Other significant revenue
Interest income
208
669
2018
2017
£
£
Turnover analysed by geographical market
United Kingdom
8,857,804
8,319,483
4
Operating profit
2018
2017
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,934
8,338
Depreciation of owned tangible fixed assets
728,967
645,934
Depreciation of tangible fixed assets held under finance leases
2,055
49,420
Loss on disposal of tangible fixed assets
2,221
-
Cost of stocks recognised as an expense
1,647,529
1,764,468
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
- 17 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2018
2017
Number
Number
Part time
14
20
Full time
170
155
184
175
Their aggregate remuneration comprised:
2018
2017
£
£
Wages and salaries
3,418,830
3,041,519
Social security costs
257,761
235,727
Pension costs
67,008
56,133
3,743,599
3,333,379
6
Directors' remuneration
2018
2017
£
£
Remuneration for qualifying services
82,260
99,948
Company pension contributions to defined contribution schemes
8,354
8,501
90,614
108,449
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2017 - 1).
7
Interest receivable and similar income
2018
2017
£
£
Interest income
Interest on bank deposits
208
669
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
- 18 -
8
Interest payable and similar expenses
2018
2017
£
£
Interest on bank overdrafts and loans
166,266
156,573
Interest on finance leases and hire purchase contracts
2,938
5,248
169,204
161,821
9
Taxation
2018
2017
£
£
Current tax
UK corporation tax on profits for the current period
13,304
(3,739)
Deferred tax
Origination and reversal of timing differences
60,374
22,005
Changes in tax rates
-
(89,722)
Total deferred tax
60,374
(67,717)
Total tax charge/(credit)
73,678
(71,456)
Factors affecting future tax and charges
In his budget speech on 16 March 2016, the UK Chancellor of the Exchequer announced changes which have an effect on the company's future tax position. He announced a reduction in the rate of UK corporation tax to 17% from 1 April 2020. A reduction in the rate of UK corporation tax from 20% to 19% from 1 April 2017 had previously been announced.
As at the balance sheet date, the reductions in the rate of corporation tax had been substantively enacted and therefore any deferred tax has been provided at these rates.
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
9
Taxation
(Continued)
- 19 -
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2018
2017
£
£
Profit/(loss) before taxation
264,754
(66,601)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2017: 20.00%)
50,303
(13,320)
Tax effect of expenses that are not deductible in determining taxable profit
67
-
Effect of change in corporation tax rate
-
(89,722)
Group relief
(736)
-
Depreciation on assets not qualifying for tax allowances
31,157
31,481
Other permanent differences
(7,104)
105
Deferred tax adjustments in respect of prior years
(9)
-
Taxation charge/(credit) for the year
73,678
(71,456)
10
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Fixtures & fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2017
8,754,120
5,998,912
4,030,283
60,949
18,844,264
Additions
137,462
137,689
113,616
19,401
408,168
Disposals
-
(95,824)
(169,929)
(5,249)
(271,002)
At 30 April 2018
8,891,582
6,040,777
3,973,970
75,101
18,981,430
Depreciation and impairment
At 1 May 2017
1,404,832
2,280,480
2,981,569
34,734
6,701,615
Depreciation charged in the year
163,983
341,144
212,815
13,080
731,022
Eliminated in respect of disposals
-
(90,111)
(169,929)
(5,249)
(265,289)
At 30 April 2018
1,568,815
2,531,513
3,024,455
42,565
7,167,348
Carrying amount
At 30 April 2018
7,322,767
3,509,264
949,515
32,536
11,814,082
At 30 April 2017
7,349,288
3,718,432
1,048,714
26,215
12,142,649
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
10
Tangible fixed assets
(Continued)
- 20 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2018
2017
£
£
Plant and machinery
-
106,978
Fixtures & fittings
22,608
111,100
Motor vehicles
-
10,119
22,608
228,197
Depreciation charge for the year in respect of leased assets
2,055
49,420
Freehold land and buildings with a carrying amount of £7,322,767 (2017 - £7,349,288) have been pledged to secure borrowings of the company.
11
Stocks
2018
2017
£
£
Raw materials and consumables
73,082
65,022
12
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
327,583
359,253
Corporation tax recoverable
-
3,739
Amounts owed by group undertakings
-
4,112
Other debtors
238,138
165,395
Prepayments and accrued income
641,075
681,173
1,206,796
1,213,672
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
- 21 -
13
Creditors: amounts falling due within one year
2018
2017
Notes
£
£
Bank loans and overdrafts
15
318,555
317,216
Obligations under finance leases
16
8,213
33,928
Trade creditors
1,000,345
1,004,358
Amounts due to group undertakings
6,713
-
Corporation tax
13,304
-
Other taxation and social security
344,141
331,217
Other creditors
65,555
55,172
Accruals and deferred income
2,177,577
2,010,087
3,934,403
3,751,978
14
Creditors: amounts falling due after more than one year
2018
2017
Notes
£
£
Bank loans and overdrafts
15
4,577,625
4,799,250
Obligations under finance leases
16
12,344
-
4,589,969
4,799,250
15
Loans and overdrafts
2018
2017
£
£
Bank loans
4,896,180
5,116,466
Payable within one year
318,555
317,216
Payable after one year
4,577,625
4,799,250
The bank borrowings are secured by a debenture and cross guarantee between the company and its parent company Langdale Owners PLC. The loans with Barclays Bank are repayable by quarterly instalments until they are due to be refinanced in February 2021 and July 2022. The interest rate is calculated at 3.51%.
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
- 22 -
16
Finance lease obligations
2018
2017
Future minimum lease payments due under finance leases:
£
£
Within one year
8,213
33,928
In two to five years
12,344
-
20,557
33,928
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Finance lease obligations are secured over the assets to which they relate.
17
Provisions for liabilities
2018
2017
Notes
£
£
Deferred tax liabilities
18
568,799
508,425
18
Deferred taxation
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:
Liabilities
Liabilities
2018
2017
Balances:
£
£
Accelerated capital allowances
571,162
545,261
Tax losses
-
(35,423)
Short term timing differences
(2,363)
(1,413)
568,799
508,425
2018
Movements in the year:
£
Liability at 1 May 2017
508,425
Charge to profit or loss
60,374
Liability at 30 April 2018
568,799
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
18
Deferred taxation
(Continued)
- 23 -
As at the signing date of these financial statements, the company has not finalised its capital expenditure programme for the forthcoming year and therefore an assessment as to the likely movement of other relating timing differences cannot be made.
19
Retirement benefit schemes
2018
2017
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
67,008
56,133
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.
20
Share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
3,685,000 Ordinary shares of £1 each
3,685,000
3,685,000
3,685,000
3,685,000
21
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2018
2017
£
£
Within one year
-
18,660
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2018
2017
£
£
Acquisition of tangible fixed assets
-
85,000
LANGDALE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2018
- 24 -
23
Related party transactions
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 the balance sheet date the company was owed £72,375 (2017: £26,185) by an organisation under common control.
24
Controlling party
At 30 April 2018, 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.
2018-04-30
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