Blue Anchor Leisure Limited - Limited company accounts 18.2

REGISTERED NUMBER: 01091655 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2019

for

Blue Anchor Leisure Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

P R F Holmes

Mrs S Woodward

J S Moses

REGISTERED OFFICE:

Robin Hood Park, South Road

Chapel St Leonards

Skegness

Lincolnshire

PE24 5TR

REGISTERED NUMBER:

01091655 (England and Wales)

AUDITORS:

Torr Waterfield Limited

Statutory Auditor

Park House

37 Clarence Street

Leicester

Leicestershire

LE1 3RW

The directors present their strategic report for the year ended 31 December 2019.

REVIEW OF BUSINESS

We are pleased to report pre tax profits of £2,186,000 (2018 - £3,134,000). After adjusting for the profit on the sale of

the Summerlands park in 2018 the pre tax profit for 2019 is showing a small increase on last year. Operations of caravan

parks in the year was excellent as UK customers continued to switch their holidays to UK destinations as opposed to

overseas. The sales of caravans has also increased in the year as consumer confidence has increased.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider that the principal risks and uncertainties faced by the company are in the following categories:

Economic risk

The two biggest factors are caravan sales and holiday bookings. Caravan sales can be affected by customer confidence,

interest rates and job uncertainty. Caravan sales have started to increase as the economic uncertainty of previous years

starts to improve. Holiday bookings have also remained strong.

Competitor risk

The directors manage competition through close attention to customer service levels.

Financial risk

The company has budgetary and financial reporting procedures, supported by appropriate key performance indicators, to

manage credit, liquidity and other financial risk.

FINANCIAL INSTRUMENTS

The company does not actively use financial instruments as part of its financial risk management. It is exposed to the

usual credit risk and cashflow risk associated with selling on credit and manages this through credit control procedures.

The nature of its financial instruments means that they are not subject to price risk or liquidity risk.

The company is exposed to interest rate fluctuations on its secured bank loans but does not consider this to be material

to the assessment of its financial position or profit.

The company has minimal exposure to foreign exchange risks as all significant material supplies are contracted in

sterling.

FUTURE DEVELOPMENTS

We continue to improve and grow our business and predict another successful year in 2020.

ON BEHALF OF THE BOARD:

P R F Holmes - Director

9 April 2020

The directors present their report with the financial statements of the company for the year ended 31 December 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale of new and used caravans and the

operation of caravan parks along the east coast of Lincolnshire.

DIVIDENDS

During the year, a dividend of £1,000,000 was recommended and paid (2018 - £1,000,000).

The directors do not recommend the payment of a final dividend.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this

report.

P R F Holmes

Mrs S Woodward

J S Moses

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

P R F Holmes - Director

9 April 2020

Opinion

We have audited the financial statements of Blue Anchor Leisure Limited (the 'company') for the year ended

31 December 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, 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 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 31 December 2019 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 Auditors' 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 identified material misstatements in the Strategic Report or the Report of the Directors.

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 Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Mark Torr (Senior Statutory Auditor)

for and on behalf of Torr Waterfield Limited

Statutory Auditor

Park House

37 Clarence Street

Leicester

Leicestershire

LE1 3RW

9 April 2020

TURNOVER

3

22,239

21,043

Cost of sales

(17,354

)

(16,331

)

GROSS PROFIT

4,885

4,712

Administrative expenses

(2,359

)

(2,266

)

OPERATING PROFIT

5

2,526

2,446

Profit/loss on sale of operation

6

-

1,041

2,526

3,487

Interest payable and similar expenses

7

(340

)

(353

)

PROFIT BEFORE TAXATION

2,186

3,134

Tax on profit

8

(461

)

(434

)

PROFIT FOR THE FINANCIAL YEAR

1,725

2,700

OTHER COMPREHENSIVE INCOME

-

(200

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(200

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,725

2,500

FIXED ASSETS

Tangible assets

10

77,298

75,744

Investments

11

-

-

77,298

75,744

CURRENT ASSETS

Stocks

12

2,401

2,949

Debtors

13

6,743

7,167

Cash in hand

15

13

9,159

10,129

CREDITORS

Amounts falling due within one year

14

17,620

16,062

NET CURRENT LIABILITIES

(8,461

)

(5,933

)

TOTAL ASSETS LESS CURRENT LIABILITIES

68,837

69,811

CREDITORS

Amounts falling due after more than one year

15

(3,333

)

(5,225

)

PROVISIONS FOR LIABILITIES

18

(4,775

)

(4,582

)

NET ASSETS

60,729

60,004

CAPITAL AND RESERVES

Called up share capital

19

974

974

Revaluation reserve

20

30,452

30,452

Capital redemption reserve

20

26

26

Retained earnings

20

29,277

28,552

SHAREHOLDERS' FUNDS

60,729

60,004

The financial statements were approved and authorised for issue by the Board of Directors on 9 April 2020 and were signed on its behalf by:

P R F Holmes - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£'000

£'000

£'000

£'000

£'000

Balance at 1 January 2018

974

24,921

32,583

26

58,504

Changes in equity

Profit for the year

-

2,700

-

-

2,700

Other comprehensive income

-

1,931

(2,131

)

-

(200

)

Total comprehensive income

-

4,631

(2,131

)

-

2,500

Dividends

-

(1,000

)

-

-

(1,000

)

Balance at 31 December 2018

974

28,552

30,452

26

60,004

Changes in equity

Profit for the year

-

1,725

-

-

1,725

Total comprehensive income

-

1,725

-

-

1,725

Dividends

-

(1,000

)

-

-

(1,000

)

Balance at 31 December 2019

974

29,277

30,452

26

60,729

1.	STATUTORY INFORMATION

Blue Anchor Leisure Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling and all values are rounded to the nearest round thousand (£   )

except where otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements,

as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

•

the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 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, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about Blue Anchor Leisure Limited as an individual company and

do not contain consolidated financial information as the parent of a group. The company is exempt under

Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it

and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its

parent, Blue Anchor Leisure Holdings Limited, Robin Hood Park, South Road, Chapel St Leonards, Skegness,

Lincolnshire, PE24 5TR.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the process of applying the company's accounting policies, the company is required to make certain

judgements, estimates and assumptions that it believes are reasonable based on the information available. The

significant judgements relate to the following:

Tangible fixed assets

Tangible fixed assets except freehold land are depreciated over the useful lives of the assets. Useful lives are

based on management's estimates of the period that the assets will generate revenue, which are reviewed annually

for continued appropriateness. The carrying values are tested for impairment when there are indications that the

value of assets might be impaired. When carrying out impairment tests these would be based upon future

anticipated income yields and these would be based upon management judgement. Future events could cause the

assumptions to change and this could have an adverse effect on the future results of the company.

Recoverability of trade debtors

The estimates and assumptions used to assess the recoverability of trade debtors consist of the payments received

against balances and payment history and the credit worthiness of the customer.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and

the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or

receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover in respect of the specific revenue streams is recognised as follows:

Caravan sales are included in turnover in the year in which they are contracted for by the customers.

Site rentals are recognised in the year to which the income relates.

Sales of log cabins are recognised upon completion.

Other takings are recognised on receipt.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Plant and machinery

-

15% on cost

Fixtures and fittings

-

15% on cost and 10% on cost

Motor vehicles

-

25% on reducing balance

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any

accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the

asset to the location and condition necessary for it to be capable of operating in the manner intended by

management.

Land is not depreciated.

In previous years the company adopted a policy of revaluing its freehold properties. On adoption of FRS102 on

1 January 2015, the directors chose not to follow a revaluation policy and to recognise these at deemed cost.

Stocks

Caravan and sundry stock are valued at the lower of cost and net realisable value after making due allowance for

obsolete and slow-moving stocks. Cost includes all direct costs.

Land for sale is valued at the lower of cost and net realisable value.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial

assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third

parties and loans to related parties.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are

measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to

be paid or received.

Financial assets that are measured at cost and amortised 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, which is an approximation of the amount that the company would

receive for the asset if it were to be sold at the balance sheet date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Going concern

The balance sheet has net current liabilities of £8,461,000 (2018 - £5,933,000). Included in creditors is deferred

income of £6,838,000 (2018 - £6,648,000) which relates to park rental and are non-refundable, being allocated

to the statement of comprehensive income when earned.

The directors have prepared forecasts which show that the company will continue to operate within its agreed

bank facilities and will be able to meet its liabilities as and when they fall due. As a result the directors consider

that there are no indicators to suggest that the company is not a going concern.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.19

31.12.18

£'000

£'000

Sale of Caravans

6,646

5,286

Site rentals

10,871

10,966

Log cabin sales

665

963

Other takings

4,057

3,828

22,239

21,043

4.	EMPLOYEES AND DIRECTORS

31.12.19

31.12.18

£'000

£'000

Wages and salaries

6,293

5,718

Social security costs

649

601

Other pension costs

187

160

7,129

6,479

The average number of employees during the year was as follows:

31.12.19

31.12.18

Holiday caravan site staff

206

198

Office and management

24

21

230

219

31.12.19

31.12.18

£

£

Directors' remuneration

1,541,506

1,540,000

Directors' pension contributions to money purchase schemes

51,000

50,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

31.12.19

31.12.18

£

£

Emoluments etc

894,049

905,000

Pension contributions to money purchase schemes

26,000

25,000

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.19

31.12.18

£'000

£'000

Depreciation - owned assets

819

723

Loss on disposal of fixed assets

1

86

Auditors' remuneration

29

35

6.	EXCEPTIONAL ITEMS

31.12.19

31.12.18

£'000

£'000

Profit/loss on sale of operation

-

1,041

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.19

31.12.18

£'000

£'000

Bank interest

340

353

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.19

31.12.18

£'000

£'000

Current tax:

UK corporation tax

268

425

Deferred tax

193

9

Tax on profit

461

434

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

31.12.19

31.12.18

£'000

£'000

Profit before tax

2,186

3,134

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

415

595

Effects of:

Expenses not deductible for tax purposes

30

34

Adjustments to tax charge in respect of previous periods

(10

)

-

Capital profit relief

-

(198

)

Other matters

27

8

Group relief surrendered/(Claimed)

(1

)

(5

)

Total tax charge

461

434

Tax effects relating to effects of other comprehensive income

31.12.18

Gross

Tax

Net

£'000

£'000

£'000

Deferred tax adjustment

(200

)

-

(200

)

9.

DIVIDENDS

31.12.19

31.12.18

£'000

£'000

Ordinary shares of £1 each

Final

1,000

1,000