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Registered number: 07652841
TRANQUILITY PARKS LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MARCH 2020
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TRANQUILITY PARKS LIMITED
REGISTERED NUMBER: 07652841
BALANCE SHEET
AS AT 31 MARCH 2020
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Stock and work in progress
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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TOTAL ASSETS LESS CURRENT LIABILITIES
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Creditors: amounts falling due after more than one year
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PROVISIONS FOR LIABILITIES
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Page 23
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TRANQUILITY PARKS LIMITED
REGISTERED NUMBER: 07652841
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2020
The Directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 26 to 37 form part of these financial statements.
Page 24
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TRANQUILITY PARKS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
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Surplus on revaluation of freehold property
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Deferred tax on revaluation of freehold property
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Surplus on revaluation of freehold property
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Deferred tax on revaluation of freehold property
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Disposal of freehold property
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The notes on pages 26 to 37 form part of these financial statements.
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Page 25
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
Tranquility Parks Limited is a private Company limited by shares incorporated in England and Wales within the United Kingdom. The address of the registered office is Tennyson House, Cambridge Business Park, Cambridge, CB4 0WZ. The principal activity of the Company continued to be that of the ownership and operation of residential and leisure parks.
This Company is part of a group.
2.ACCOUNTING POLICIES
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BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The Company's functional and presentational currency is Pounds sterling.
The level of rounding is to the nearest £.
The following principal accounting policies have been applied:
Following the year end the Company has been affected by restrictions imposed by the UK Government in response to the COVID-19 pandemic. The result of this is that the Company’s premises have closed and the company has temporarily had to suspend its operations. This has resulted in a loss of income for the company and in addition the effect on the Company’s customers has meant a potential reduction in demand for leisure holidays. However the residential property market has reopened and since the reporting date the Company has gained residential planning permission on Europa Park and therefore is able to sell residential park homes on the Park.
The loss of income and cashflow has been partially offset by additional financial support from the bank in deferring capital and interest payments,along with support from the directors.
The Directors consider that the resources available to the Company will be sufficient for it to be able to continue as a going concern during the restrictions and once the full restrictions are lifted. However, there is a high level of uncertainty about how long the restrictions will last and the level of demand once the restrictions have ended which could affect this assessment.
The financial statements do not contain any adjustments that would be required if the Company were not able to continue as a going concern.
Page 26
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.ACCOUNTING POLICIES (CONTINUED)
Turnover is recognised by the Company to the extent that it obtains the right to consideration in exchange for its performance. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, Value Added Tax and other sales taxes. Monies received in advance are treated as deferred income and held as payments on account.
Pitch and Site Fees
Pitch and fees are recognised on an accruals basis in the period to which they relate.
Sales of Lodges and Mobile Homes
Sales of lodges and mobile homes are recognised when the risks and rewards of ownership are transferred to the customer, usually on occupation when the park home agreement is signed or legal completion takes place.
Recharge of expenditure
The recharge of expenditure is recognised on an accruals basis in the period to which they relate.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Income and Retained Earnings over its useful economic life.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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.
Page 27
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.ACCOUNTING POLICIES (CONTINUED)
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TANGIBLE FIXED ASSETS (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
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Freehold property & site improvements
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No depreciation has been provided on freehold property and site improvements as the property is maintained in such a state of repair that its residual value is at least equal to its net book value. As a result the corresponding depreciation would not be material, and therefore is not charged to the profit and loss account.
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REVALUATION OF TANGIBLE FIXED ASSETS
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Individual freehold properties are carried at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance Sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
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STOCKS AND WORK IN PROGRESS
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Stocks and work in progress are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price.
Page 28
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.ACCOUNTING POLICIES (CONTINUED)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
Short term creditors are measured at the transaction price.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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PROVISIONS FOR LIABILITIES
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Page 29
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.ACCOUNTING POLICIES (CONTINUED)
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CORPORATION AND DEFERRED TAXATION
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The tax expense for the year comprises corporation and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
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The average monthly number of employees, including directors, during the year was 3 (2019 - 2).
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Page 30
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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Charge for the year on owned assets
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Page 31
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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Charge for the year on owned assets
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Cost or valuation at 31 March 2020 is as follows:
Page 32
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
5.TANGIBLE FIXED ASSETS (CONTINUED)
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The freehold property, Trading as Tranquility Park Homes, was valued by Avison Young in June 2020. The directors have adopted this valuation, allowing for work undertaken between the period end and June 2020.
The valuation report prepared by Avison Young includes a Material Valuation Uncertainty Clause due to the impact of the Novel Coronavirus (COVID-19). The report states that the declaration does not mean that the valuation cannot be relied upon, rather that the declaration has been included to ensure transparency of the fact that in the current extraordinary circumstance, less certainty can be attached to the valuation that would otherwise be the case.
The directors have considered the impact of COVID-19 and the valuation and believe that valuation report should be adopted at the date of signing the financial statements.
Freehold property includes additional property at a cost of £730,000 as at the year end. This property was not included in the valuation undertaken, however in the directors' opinion the market value is not materially different from the cost adn has therefore not been revalued during the year.
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If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
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Investments in subsidiary companies
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Page 33
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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STOCKS AND WORK IN PROGRESS
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Work in progress - pitch development
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Unit stock is included in a stocking facility in which the creditor is secured against the relevant stock units and included in hire purchase creditors.
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Amounts owed by group undertakings
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Prepayments and accrued income
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CASH AND CASH EQUIVALENTS
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Page 34
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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CREDITORS: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Hire purchase contracts are secured against the stock asset it relates to. This includes stock that is held by other companies wihtin the Group. Hire purchase liabilities are shown as due within one year as liabilities repayable on the sale of the relevant stock unit.
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CREDITORS: Amounts falling due after more than one year
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The following liabilities were secured:
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Details of security provided:
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The loans are secured over the assets to which it relates.
Page 35
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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Analysis of the maturity of loans is given below:
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AMOUNTS FALLING DUE WITHIN ONE YEAR
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AMOUNTS FALLING DUE 1-2 YEARS
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AMOUNTS FALLING DUE 2-5 YEARS
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AMOUNTS FALLING DUE AFTER MORE THAN 5 YEARS
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The aggregate amount of creditors for which security has been given amounted to £2,110,815 (2019 - £2,418,545).
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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On revaluation of freehold property
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Allotted, called up and fully paid
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100 (2019 - 100) ordinary shares of £1.00 each
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Page 36
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TRANQUILITY PARKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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RELATED PARTY TRANSACTIONS
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During the period, the Company operated a loan account with Mr H Simmons, a director of the Company. The balance due to him at the period end was £40,290 (2019 - £94,212) and is included in other creditors. This loan is interest free and repayable on demand.
During the period the Company operated a loan account with Pinehurst Country Park Limited, a Company that is a subsidiary of H & S Simmons Limited. The balance owed to the Company at the period end was £520,732 (2019 (Owed by) - £386,084) and is included in other creditors. This loan is interest free and repayable on demand.
During the period the Company operated a loan account with Organford Manor Country Park Limited, a Company that is a subsidiary of H & S Simmons Limited. The balance owed by the Company at the period end was £2,462,227 (2019 - £1,679,321). This loan is interest free and repayable on demand.
During the period the Company was charged a management charge by Organford Manor Country Park Limited of £75,000 (2019 - £nil) which has been charged on a commercial basis.
During the period the Company operated a loan account with White Horse Park Limited, a Company that is a subsidiary of H & S Simmons Limited. The balance owed to the Company at the period end was £178,644 (2019 - £Nil). This loan is interest free and repayable on demand.
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POST BALANCE SHEET EVENTS
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As at 1st April 2020 COVID-19 continued to be considered a global pandemic. The directors consider this to be a non-adjusting event after the reporting date. Since the reporting date this has caused increasing disruption to populations, to business and economic activity.
As this situation is rapidly developing, it is not yet practicable to estimate the potential impact this may have on the Company.
The directors consider that the above events to be a non-adjusting event after the reporting date.
The controlling party of the Company is H & S Simmons Limited by virtue of a 100% shareholding in Tranquility Parks Limited.
The Ultimate Controlling Party is Mr H Simmons and Mrs G Simmons by virtue of their joint shareholding in H & S Simmons Limited.
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