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Bashley Park Limited
Registered number: 00483690
Annual report
For the year ended 31 January 2022
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BASHLEY PARK LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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BASHLEY PARK LIMITED
CONTENTS
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Independent auditor's report
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Statement of comprehensive income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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BASHLEY PARK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2022
The directors present their Strategic report for the year ended 31 January 2022.
Business review
The principal activity of the company continued to be the operation of holiday and caravan parks. There has been no significant change in the company's principal activity in the period under review.
The company’s turnover increased by 42%. Profit before tax increased by 279%. The prior year results were significantly impacted by the business being closed for 5 of the 12 months due to Covid related lockdowns and restrictions. During this financial year the business was closed for two and a half months through to mid-April, and our food and beverage operation was impacted by government restrictions which remained in place until the summer. A very busy summer followed re-opening with unprecedented demand for UK holidays and holiday homes.
The company compensated our holiday home owners for the periods of time that they were unable to come to our parks due to government imposed restrictions and we were able to fully pass on the reduced rate of VAT to our owners for their pitch fees and other bills, as well as the reduction in rates.
We continued to invest in our parks as well as the underlying technology infrastructure and our operational systems. A new workforce management system was implemented, and further modules added to our HR system, our park management system was upgraded and we launched a new portal for our owners to be able to manage their accounts.
Our commitment to outstanding customer service and ensuring the health and safety of all of our guests and teams continues to be our top priority.
Principal risks and uncertainties
From the perspective of the company, the principal risks and uncertainties are integrated with the principal risks of the Hoburne Limited group and are not managed separately. The key business risks and uncertainties disclosed in the group's financial statements are also applicable to the company. The company's operations are managed on a group level.
Covid-19
The impact of Covid-19 on the company has been significant, but we have well formulated procedures which have been continually adapted to changing circumstances. Our holiday parks opened to holiday guests and owners on 12 April 2021 after the third lockdown. The restrictions on foreign travel have benefited the UK holiday operator sector and our business model has proved resilient. Although we cannot control the risk of future outbreaks or pandemics we have demonstrated that we can adapt and we are used to providing a safe, clean environment for our teams and our customers.
Health and Safety risk
Management of health and safety risk is a key priority for the board and across the organisation and policies and procedures are in place to support this. A key focus for the group is to ensure the safety of our staff, customers, visitors and subcontractors. Our teams are trained on a regular basis, daily audit checks take place and regular external audits are carried out by an independent assessor. Whilst the group has a separate committee for health and safety, the board also review health and safety matters at each meeting.
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BASHLEY PARK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
Our business is wholly UK based so the principal risk remains the UK economy and consumer confidence which any uncertainty would adversely affect the demand for holiday homes, as well as any wider competitive pressures. Supply chain issues following the impact globally of Covid-19 may impact the availability of stock to the industry, however we have good relationships with our suppliers and anticipate only short delays to deliveries this year.
People availability
It is becoming increasingly challenging to recruit the people we need into the business to continue to deliver a great experience to our customers. We strive to be an employer of choice offering opportunities for learning, development, and career progression, we offer support in difficult times through our trained mental health first aiders and our Employee Assistance Programme, and aim to ensure our remuneration remains competitive, paying the Real Living Wage as a minimum.
Technology and cyber security
With an increasingly challenging environment in relation to information security particularly cyber risk, the group is investing in our technical team and systems as well as our governance and processes in this area, in order to mitigate risks and to support the growth ambitions of the group.
Liquidity risk
The group manages risk by ensuring sufficient liquidity is available to meet foreseeable needs. The group utilised the existing Revolving Credit Facility arrangement with NatWest. The group has no exposure to any complex financial instruments.
Credit risk
The group's principal financial assets are cash and trade debtors. The credit risk associated with cash is minimal so the principal risk in this area arises from trade debtors. Credit terms are only offered to creditworthy customers. Holiday homes are not released to customers until payment is received in full.
Interest risk
The group is not significantly exposed to interest rate risk, the group's low gearing would mean that it is well placed to withstand a significant interest rate rise.
Price risk
The board consider that the group faces the usual pricing risk of any other company operating in a competitive, commercial environment. Rising inflation is impacting the cost base of the business with actions to mitigate ongoing.
Property risk
The group has appropriate insurance policies in place to cover many risks surrounding the properties including damage, business interruption, employer's and public liability.
Cash flow risk
The group manages cash flow through regular forecasting to reflect cash requirements with procedures and controls in place on spending across the business. The borrowing that has been secured gives the group available headroom to allow the business to operate and continue to grow over the medium term whilst withstanding any overall downturn in the wider economy.
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BASHLEY PARK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
The board review the strategy for the group on a regular basis and are committed to ongoing investment to build and optimise the returns for shareholders over the long term. A number of opportunities remain for increasing the number of pitches within the existing portfolio, in addition to continuing to further upgrade the facilities and enhancing the experience that we can offer our customers.
The directors maintain their view that well directed investment will maintain and enhance the group's position in the market and will increase future sales and profitability. This will in turn continue to deliver long term value to shareholders.
Key performance indicators
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The directors consider turnover, gross profit, profit before tax and capital expenditure to be the most effective measures of performance against the company's objectives and to be the main key performance indicators (KPls). Turnover for the year ended 31 January 2022 was £9,965,155 (2021: £7,009,631). Gross profit was £6,757,832 (2021: profit of £4,349,413). Profit before tax was £2,263,559 (2021: profit of £596,564). Capital expenditure was £685,042 (2021: £476,600).
As well as financial measures, we take a balanced scorecard approach to our performance using a number of tools for example Feefo; used as an opportunity to learn from our customers and to benchmark our performance, we also use Trip Advisor scores as a measure of customer advocacy for our parks. In addition, we monitor health and safety audit performance, energy usage and levels of recycling, and measures of employee engagement. All these elements underpin our strategy for long term sustainable growth.
This report was approved by the board and signed on its behalf by:
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BASHLEY PARK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2022
The directors present their report and the audited financial statements for the year ended 31 January 2022.
The profit for the year, after taxation, amounted to £1,759,699 (2021: profit of £442,484).
The directors do not recommend the payment of a dividend for the year (2021: £nil).
The directors who served during the year and to the date of this report were:
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J A Forward (appointed 4 October 2021)
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R P Tucker (resigned 30 November 2021)
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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BASHLEY PARK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
The directors have closely considered the financial position of the company, the borrowing facilities available and the projected operating performance of the business. The directors consider that the company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Economic impact of the COVID-19 pandemic
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The COVID-19 pandemic continues to affect the UK and global economies however the recent lifting of social restrictions by the government means the directors anticipate the UK and global economies to return to growth in due course. It is not possible to predict how quickly and to what degree this may happen. The priority of the directors remains to comply with any remaining regulatory requirements to the fullest extent possible, and to maintain the safety and well-being of the company's personnel.
Qualifying third party indemnity provisions
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The company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in place at the date of this report. No claim or notice of a claim in respect of these indemnities has been received in the year.
Matters covered in the Strategic report
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As permitted by paragraph 1A of schedule 7 to the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008, certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report on pages 1 to 3. These matters relate to risks and future developments.
Provision of information to the auditor
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the directors are aware, there is no relevant audit information of which the company's auditor is unaware, and
∙the directors have taken all the steps that ought to have been taken as directors in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Post balance sheet events
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On 24 February 2022 Russian Forces entered Ukraine, resulting in reactions from Western nations including announcements of sanctions against Russia and Russian interests worldwide and an economic ripple effect on the global economy. The directors have carried out an assessment of the potential impact of Russian forces entering Ukraine on the business, including the impact of mitigation measures and uncertainties, and have concluded that this is a non-adjusting post balance sheet event with the greatest impact on the business expected to be from the economic ripple effect on the global economy, particularly from increased energy prices.
During the year, Mazars LLP was appointed as auditor.
The auditor, Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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BASHLEY PARK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
This report was approved by the board and signed on its behalf by:
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BASHLEY PARK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BASHLEY PARK LIMITED
Opinion
We have audited the financial statements of Bashley Park Limited (the ‘company’) for the year ended 31 January 2022 which comprise the Statement of comprehensive income, the Statement of financial position, 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 31 January 2022 and of its profit for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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BASHLEY PARK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BASHLEY PARK LIMITED
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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BASHLEY PARK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BASHLEY PARK LIMITED
Responsibilities of Directors
As explained more fully in the Directors' responsibilities statement set out on page 4, 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 intend either 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, non-compliance with implementation of government support schemes relating to COVID-19.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
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BASHLEY PARK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BASHLEY PARK LIMITED
In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to the impairment of fixed assets, depreciation of fixed assets, the stock provision, provision in relation to the multi-employer pension scheme, the bad debt provision, deferred tax, and revenue recognition (which we pinpointed to the cut-off and completeness assertion, and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 auditor’s report.
Use of the audit report
This report is made solely to the company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body for our audit work, for this report, or for the opinions we have formed.
Lesley Fox (Senior statutory auditor)
For and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
5th Floor
Merck House
Seldown Lane
Poole
BH15 1TW
2 August 2022
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BASHLEY PARK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2022
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Profit for the financial year
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The Statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
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There was no other comprehensive income for 2022 (2021:£NIL).
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The notes on pages 14 to 29 form part of these financial statements.
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BASHLEY PARK LIMITED
REGISTERED NUMBER: 00483690
STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2022
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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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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 29 form part of these financial statements.
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BASHLEY PARK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2022
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Comprehensive income for the year
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Comprehensive income for the year
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The notes on pages 14 to 29 form part of these financial statements.
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
Bashley Park Limited is a private company limited by shares, incorporated in England and Wales. The company's registered number is 00483690. The address of the company's registered office is 10 Hoburne Lane, Christchurch, Dorset, England, BH23 4HP.
The principal activity of the company is the operation of a holiday and caravan park.
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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the company operates and is rounded to the nearest pound.
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙ the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.19A;
∙the requirement of paragraph 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Hoburne Limited as at 31 January 2022 and these financial statements may be obtained from Companies House.
The directors have closely considered the financial position of the company, the borrowing facilities available and the projected operating performance of the business. The directors consider that the company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
2.Accounting policies (continued)
Turnover from caravan sales is recognised when the group has fulfilled all of its obligations in respect of the sale which is typically when all sale documentation is completed and all the proceeds have been received. Turnover from holidays sold, and other onsite sales is recognised in the accounting period in which the holiday occurs. Turnover from pitch fees and other services is recognised evenly over a twelve month period to the date of the next renewal.
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Foreign currency translation
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Functional and presentation currency
The company's functional and presentation currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
All other foreign exchange gains and losses are presented in the Statement of comprehensive income within 'administrative expenses'.
The UK government offered a range of financial support packages to help companies, including government backed financing arrangements, furlough schemes, deferment of VAT payments and, for some sectors, business rate holidays. Of the offered schemes, the company used the furlough scheme. In addition to this, the company also received a Local Authority grant. The income from these grant schemes has been recognised within 'Other operating income'. The income is recognised when the company has reasonable assurance that they will comply with the conditions attached to the grant, and that the grant will be received.
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
2.Accounting policies (continued)
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 other creditors as a liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.
Defined benefit scheme
The company is a member of the group defined benefit pension scheme operated jointly by its ultimate holding company, Hoburne Limited and also the Burry and Knight Limited group, providing benefits based on final pensionable pay. As a consequence of the joint nature of the scheme the directors are of the opinion that the share of the underlying assets and liabilities relating to the company cannot be identified on a consistent and reasonable basis. Under the terms of FRS102 s.28, in these circumstances contributions are accounted for as if the scheme were a defined contribution scheme based on actual contributions paid throughout the period.
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.
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.
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
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 on the following bases:
Depreciation is provided on the following basis:
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Freehold land and buildings
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4-15 years straight line.
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Fixtures, fittings and equipment
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4-15 years straight line.
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4-13 years straight line.
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Freehold land is not depreciated.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on an actual cost basis.
At each reporting 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, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
- 17 -
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
2.Accounting policies (continued)
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.
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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 reporting 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 Statement of financial position.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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 current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting 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 reporting 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 reporting date.
- 18 -
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
2.Accounting policies (continued)
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.
Financial assets
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 identified, an impairment loss is recognised in profit or loss.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and its recoverable amount, which is an estimate of the amount that the company would receive for the asset if it were to be sold at the reporting date.
Financial liabilities
Basic financial liabilities, including trade and other payables are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the debt instrument is measured at the present value of the future receipts discontinued at a rate of interest.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transactions price and subsequently measured at amortised costs.
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
- 19 -
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
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Judgements in applying accounting policies and key sources of estimation uncertainty
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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.
The directors have recognised that the purchase costs of the used caravan stocks were in excess of the net realisable value of the underlying stocks and have written down the excess in the profit and loss account. An amount of £62,354 (2021: £71,711) was written down on the used caravan stock held at the year end.
The directors have also recognised provisions in relation to bad debts of £41,832 (2021: £76,663)
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 provision for bad debt has been based on the latest position of outstanding debts and includes a provision for any liabilities likely to materialise for the company where customers have taken out credit with a third-party provider.
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An analysis of turnover by class of business is as follows:
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All turnover arose within the United Kingdom.
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- 20 -
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
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Government grants receivable
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During the year, the company received a Local Authority grant of £22,714 (2021: £27,035). The company also received an amount of £124,808 (2021: £460,306) from the government under the Coronavirus Job Retention Scheme (CJRS).
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The operating profit is stated after charging/(crediting):
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Fees payable to the company's auditor for the audit of the company's financial statements
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Depreciation of tangible fixed assets
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Impairment of tangible fixed assets
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Profit on disposal of tangible fixed assets
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- 21 -
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
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Staff costs were as follows:
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The average monthly number of employees, including the directors, during the year was as follows:
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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|
- 22 -
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
8.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2021: higher than) the standard rate of corporation tax in the UK of19% (2021:19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021: 19%)
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Tax effect of expenses that are not deductible in determining taxable profit
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Depreciation on assets not qualifying for tax allowances
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Deferred tax adjustments in respect of prior years
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Deferred tax adjustments in respect of rate change
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Adjustments to tax charge in respect of prior periods
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Total tax charge for the year
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Factors that may affect future tax charges
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The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.
- 23 -
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
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Freehold land and buildings
|
Plant and machinery and motor vehicles
|
Fixtures, fittings and equipment
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Transfers between classes
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Impairment tests were carried out where appropriate and no impairment losses were recognised in profit or loss (2021: £8,711).
Included in freehold land and buildings is an amount of £19,022 (2021: £19,022) relating to land which has not been depreciated.
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Finished goods and goods for resale
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Stocks are stated at net of provisions of £62,354 (2021: £71,711).
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- 24 -
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|
BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
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Prepayments and accrued income
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Trade debtors are stated at net of a provision of £41,832 (2021: £76,663).
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Cash and cash equivalents
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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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Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
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Charged to profit or loss
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- 25 -
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
14.Deferred taxation (continued)
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The provision for deferred taxation is made up as follows:
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Fixed asset timing differences
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Short term timing differences
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Allotted, called up and fully paid
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500,000 (2021: 500,000) ordinary shares of £1 each
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Each ordinary share has attached to it full voting, dividend and capital distribution rights.
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- 26 -
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
|
|
Retirement benefit schemes
|
Defined benefit scheme
The Hoburne Limited group operates a pension scheme jointly with the Burry and Knight Limited group, providing benefits based on final pensionable pay. As a consequence of the joint nature of the scheme the directors are of the opinion that the share of the underlying assets and liabilities relating to the group cannot be identified on a consistent and reasonable basis. Under the terms of FRS 102 s.28, in these circumstances contributions are accounted for as if the scheme were a defined contribution scheme based on actual contributions paid through the year.
The pension charge relating to the final salary scheme for the period was £3,913 (2021: £21,641), this includes the employer's basic contribution, the costs of running the scheme and providing death in service benefits plus payments under the recovery plan.
The assets of the scheme are held in a separate trustee administered fund. Contributions to the scheme are charged to the profit and loss account so as to spread the cost of pensions over employees' working lives with the group.
Full actuarial valuation
Contributions are assessed in accordance with the advice of a qualified actuary using the Projected Unit method. The latest full actuarial valuation of the scheme was at 1 December 2018. The key financial assumptions made in the actuarial valuation at 1 December 2018 were:
Pre-retirement discount rate 3.50% p.a.
Post-retirement discount rate 3.50% p.a.
Recovery plan return on assets 3.50% p.a.
Members' pensionable earnings increase 3.70% p.a.
RPI (Retail Price Index) increase 3.30% p.a.
CPI (Consumer Price Index) increase 2.00% p.a.
Rate of increase in pensions in deferment 2.60% p.a.
At 1 December 2018 the full actuarial valuation showed the market value of the scheme's assets to be £24,070,000. The actuarial value of the benefits that had accrued to the members after allowing for expected future increases in earnings was £24,967,000 thereby giving total shortfall for the joint scheme of £897,000. Based on this, the funding shortfall of the scheme was expected to be eliminated by 30 June 2022. However, the market performance of the scheme's assets since the triennial valuation has led to an increased shortfall, indicating the volatility of the market and the likelihood that the employer companies will be required to continue to make shortfall payments at a higher level.
Therefore, a provision of £1,616,127 (2021: £1,616,127) has been made in Hoburne Limited for the group's obligation to contribute to the recovery plan of the pension scheme by making monthly payments of £22,200 until 1 February 2030.
FRS102 valuation
Each year reviews under FRS102 s.28 for disclosure in the annual financial statements are prepared by the actuary. The assumptions used for the FRS102 s.28 disclosures are different from those used in the triennial valuation and the results are therefore not directly comparable. The FRS102 s.28 disclosures at 1 February 2021 showed market value of the scheme's assets of £27,315,000 and present value of plan liabilities of £33,251,000 with a resulting shortfall of £5,936,000.
- 27 -
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BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
|
|
Retirement benefit schemes (continued)
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Defined contribution schemes
|
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Charge to profit or loss in respect of defined contribution schemes
|
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|
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. Contributions totalling £146 (2021: £234) were payable to the fund at the reporting date and included in creditors.
|
18.Financial commitments, guarantees and contingent liabilities
The company has a contingent asset in respect of VAT by reason of the group registration for VAT. At year end, this asset totalled £241,196 (2021: £206,463).
The company has a contingent liability in respect of capital gains rolled over in previous years. At current rates of corporation tax, the tax on these gains amounts to £102,959 (2021: £70,012).
The company has provided an unlimited guarantee, debenture and freehold first legal charge as security against bank borrowing facilities entered into by its parent company, Hoburne Limited.
|
|
Related party transactions
|
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|
The company has taken advantage of the exemption under paragraph 33.1A of Financial Reporting Standard 102 not to disclose transactions with other wholly owned members of the group.
R S Kennar. J D Butters and T R Knight, directors of the company, are interested in various contracts, entered into the in the normal course of business, between the company and Burry and Knight Limited and its subsidiaries, by virtue of their interests in the issued share capital of each of the respective holding companies. Charges incurred in the year relating the contracts amounted to £27,054 (2021: £4,716).
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|
Post balance sheet events
|
On 24 February 2022 Russian Forces entered Ukraine, resulting in reactions from Western nations including announcements of sanctions against Russia and Russian interests worldwide and an economic ripple effect on the global economy. The directors have carried out an assessment of the potential impact of Russian forces entering Ukraine on the business, including the impact of mitigation measures and uncertainties, and have concluded that this is a non-adjusting post balance sheet event with the greatest impact on the business expected to be from the economic ripple effect on the global economy, particularly from increased energy prices.
- 28 -
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|
BASHLEY PARK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
The immediate and ultimate parent company is Hoburne Limited, a company incorporated in England and Wales. The address of its registered office is 10 Hoburne Lane, Highcliffe, Christchurch, Dorset, BH23 4HP.
The smallest and largest group which prepares consolidated financial statements in which the company is included is Hoburne Limited, whose financial statements are publicly available. A copy of the consolidated financial statements can be obtained from Companies House.
- 29 -
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