WINANDER_LEISURE_LIMITED - Accounts

The directors present the strategic report for the year ended 31 January 2022.

The remit of the Board of Winander Leisure Limited is to consider policy, strategy, and planning for the group, and to control and supervise the operating companies. The company is a privately-owned medium-sized limited company operating in the Lake District National Park, a designated World Heritage Site.

The Board has established a medium-term plan which includes:-

• Retaining the operating subsidiaries

• Investment into the subsidiary businesses to achieve organic growth

• Development of the group’s property assets

• Growth through investment in complementary new business activities

• Acquisitive growth through targeted off-market acquisitions in the same sectors and geographic areas as the existing businesses

The company provides management and professional services to its subsidiary companies and a related party. The range of services provided to the operating subsidiaries includes marketing, public relations, finance, human resources, and information/communication technology (ICT) support. In addition, the company provides asset finance to its subsidiary companies and has funded, by way of a long funding lease, the MV Swift, a 300-seater passenger vessel operated by Windermere Lake Cruises Limited.

During the year, the company acquired a strategically significant property, adjacent to the main operating base of Windermere Lake Cruises Limited in Bowness Bay. The transaction was an off-market purchase and the company had to pay a premium in order to secure the property, which post acquisition has been written down to fair value. The rationale behind the purchase was to ensure that the group is better able to control the activities that take place immediately adjacent to the main location of its largest subsidiary, and to avoid the detriment that might have occurred had the property fallen into the hands of an operator who intended to use it for a purpose incompatible with a family visitor attraction. A short-term lease and licence arrangement has been entered into with a company connected with the vendor, which has occupied the property post completion.

Performance

The company’s performance in the year ended 31 January 2022 has again been impacted by the Covid-19 pandemic. While the provision of management services has continued and the company has received all amounts due to it under the long funding lease arrangement, no dividends have been received from the subsidiary companies and no dividends have been paid to the parent company.

As a result of stronger demand for management services, total turnover in the year was £877,750, an increase of 4.6% on the previous year, but still some 13.9% down on the year ended 31 January 2020, the last year before the Covid-19 pandemic. Total interest revenue has increased to £133,012 from £48,202 as the long funding lease has been in place for the whole of the year, whereas lease income was only received for part of the preceding year. Other operating income comprises rental income from the property acquired during the year, together with a small amount of Coronavirus Job Retention Scheme grant funding. However, as stated above, the value of the property acquired during the year has been written down to its fair value, which has resulted in a charge to the Statement of Comprehensive Income of £261,128.

As a result of the above, the company has reported a loss before taxation of £88,726 compared to a profit for preceding year of £84,521. Had it not been necessary to write down the value of the property acquired on 28 July 2021 the company would have been profitable in the current year.

The company’s balance sheet remains strong with net assets having decreased to £8,164,679 from £8,286,596.

The principal risks and uncertainties can be categorised as commercial, financial, and operational.

Commercial

As the company is a holding company and ordinarily receives dividends from its trading subsidiaries, the main risks and uncertainties relate to the future performance of the trading subsidiaries, as any downturn may have an adverse impact on both the level of dividend income received and the carrying value of the investments. Details of the principal risks and uncertainties that the subsidiary companies are required to disclose are contained in the financial statements of the relevant subsidiary.

Financial

Due to the nature of the company’s leasing and rental activities, where assets and properties are owned and lease/rent payments are collected in advance, there is not deemed to be a significant risk of irrecoverable debtors or negative cashflows.

Operational

In relation to the management services provided, the principal risk is the ability to secure and retain directors and staff with the necessary skill sets to deliver the professional services the group requires. The company is therefore proud to continue its long-term policy of investing in staff training and development, to mitigate this risk.

Covid-19

Clearly the consequences of the UK Government’s policy response to a global pandemic, such as Covid-19, has had fundamental impacts on the businesses to which this company provides assets and services, which the directors cannot control. The decision by the Government, from the earliest onset of the pandemic, to adopt non-pharmaceutical interventions, such as lockdowns, enforced closure of businesses, social distancing, and the mandating of wearing face coverings on public transport, as its primary policy response, had a devastating impact on the subsidiary companies, notwithstanding Government support for the visitor economy. Despite the rollout of a vaccination programme for the UK, and a phased “roadmap out of lockdown,” should non-pharmaceutical interventions be used in the future, as part of the Government’s policy response to mitigate a pandemic, it is likely to have seriously adverse consequences for businesses that provide services directly to the public and their supply chains. The impact of a future pandemic, and the Government’s policy response to such events, remains a risk that cannot be fully mitigated.

The directors intend to continue their policy of investing in the quality of the subsidiary companies’ assets and enhancing their services. The MV Swift, the new 300-seater passenger vessel which this company has funded and is operated by Windermere Lake Cruises Limited, has proved very popular with passengers.

Given the straightforward nature of the business, the directors are of the opinion that further analysis using Key Performance Indicators is not necessary for an understanding of the development, performance, or position of the business.

The performance of the company during the year is underpinned by the hard work, endeavour, commitment, skills and focus of our staff and the directors wish to record their appreciation for the contribution made by personnel at all levels in the business throughout a particularly difficult year.

Whilst it is disappointed to report a loss for the financial year, which results from the write down of a strategic property purchase, the directors believe that the long term benefits of securing key premises, which should enable improvements to be made to the environment in which the company and its largest subsidiary operate, will be significant and will more than negate any short term reduction in the carrying value of that asset.

Given the truly unprecedented challenges that the business has faced because of the Covid-19 pandemic, and which has a significant impact on the company during the financial year, the measures taken by the management team, with the support of the entire workforce, have resulted in the best possible outturn in the circumstances.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 January 2022.

The principle activity is the provision of management services and asset finance to subsidiary companies and related parties.

The principal activities of the trading subsidiaries are the operation of a fleet of passenger carrying vessels on Windermere, the provision of associated services and the operation of a motor museum.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors recommend that the loss for the year amounting to £121,917 be taken to reserves.

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

Azets Audit Services Limited were appointed auditor to the company following their acquisition of the trade of Garbutt & Elliott Audit Limited on 1 December 2021. In accordance with s487(2) of the Companies Act 2006 they are deemed reappointed annually.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•     select suitable accounting policies and then apply them consistently;

•     make judgements and accounting estimates that are reasonable and prudent;

•     state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

•     prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Winander Leisure Limited (the 'company') for the year ended 31 January 2020 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•     give a true and fair view of the state of the company's affairs as at 31 January 2022 and of its loss 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

•     adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

•     the financial statements are not in agreement with the accounting records and returns; or

•     certain disclosures of remuneration specified by law are not made; or

•     we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the directors and other management, and from inspection of the company's regulatory and legal correspondence. We discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance during the audit.

The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and further laws and regulations that could indirectly affect the financial statements, comprising of employment legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. These procedures did not identify actual or suspected non-compliance.

To identify risks of material misstatement due to fraud we considered the opportunities and incentives and pressures that may exist within the company to commit fraud. Our risk assessment procedures included enquiry of directors to understand the high level policies and procedures in place to prevent and detect fraud, reflecting the nature of the company being the provision of management services to subsidiaries. We communicated identified fraud risks throughout our team and remained alert to any indications of fraud during the audit.

As a result of these procedures we identified the greatest potential for fraud is the risk of management override of controls.

We performed the following procedures to address the risks of fraud identified:

- identifying and testing high risk journal entries through vouching the entries to supporting documentation; and

- assessing significant accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

Winander Leisure Limited is a private company limited by shares incorporated in England and Wales. The registered office is Winander House, Glebe Road, Bowness-on-Windermere, Cumbria, LA23 3HE.

These financial statements have been prepared in accordance with The Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared on the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

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

The company has taken advantage of the disclosure exemptions of Section 33.1A of FRS102 which permit it to not present details of its transactions with members of the group headed by Winander Group Holdings Limited where relevant group companies are all wholly owned. Details of outstanding balances as at the year end are given in notes notes 15 to 19.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Winander Leisure Limited is a wholly owned subsidiary of Winander Group Holdings Limited. The results of Winander Leisure Limited are included in the consolidated financial statements of Winander Group Holdings Limited. The registered office of Winander Group Holdings Limited is Winander House, Glebe Road, Bowness-on-Windermere, Cumbria, LA23 3HE.

The directors have considered all factors, including in the wider economy, as part of their assessment oftrue going concern. Although the current economic climate creates both cashflow and profitability risks for the group, the group continues to trade profitably and is cash generative. Budgets and cashflows have been prepared using assumptions for customer demand and supply chain costs as well as expectations for legal and regulatory environmental impacts. These budgets and cashflows indicate continuing profitability and cash generation, consequently the directors believe on balance that they have sufficient resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements. Accordingly, these financial statements have been prepared on the going concern basis.

Turnover represents amounts receivable in respect of management charges net of VAT.

Revenue form finance lease agreements, which is reported within other interest receivable and similar income, is recognised by spreading interest and charges over the period of repayment in proportion to the net cash investment. Amounts due from customers under finance lease agreements are included in debtors. Rentals derived from investment properties is included within other operating income and recognised on an accruals basis.

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has applied the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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

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

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of leases.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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

As required by FRS 102, properties which qualify as investment properties are revalued to fair value at each period end. The directors have made use of external specialists to obtain market valuations to ensure values are suitable, however there remains inherent uncertainty. In particular, company's properties are specialist in nature and as such there exists a limited portfolio of properties against which these can be benchmarked. However, on balance the directors do not consider this to give rise to a material risk as at the year end.

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

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 2).

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

Investment property comprises of land and buildings. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 January 2022 by an independent valuer, who is not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.

These financial statements are separate company financial statements for Winander Leisure Limited.

Details of the company's subsidiaries at 31 January 2022 are as follows:

(i) Wholly-owned subsidiaries of Lakeland Motor Museum Limited

(ii) Wholly-owned subsidiaries of Windermere Lake Cruises Limited

The registered office of all of the above subsidiaries is: Winander House, Glebe Road, Bowness-On-Windermere, Cumbria, LA23 3HE.

The loan from parent has no fixed date for repayment although it is anticipated it will not be repaid within the next five years.

During the preceding year the company entered into a financial leasing arrangement with Windermere Lake Cruises Limited, a subsidiary, for the MV Swift vessel. The initial term of the finance lease is 25 years.

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. At the year end, £4,045 (2021 - £3,409) was unpaid and included within creditors. The company also contributes to a small self administered pension scheme for certain executive directors of the company.

Bowness Acquisitions Syndicate

Bowness Acquisitions Syndicate is an unincorporated syndicate of property investors the majority of whom are directors and shareholders of Winander Group Holdings Limited, this company’s ultimate parent company. The financial statements include a charge to Bowness Acquisitions Syndicate of £4,750 (2021- 4,750) in respect of management services.  At the balance sheet date £5,700 (2021- £Nil) was included in debtors.

The ultimate parent company and controlling party is Winander Group Holdings Limited. Group financial statements for Winander Group Holdings Limited are prepared and can be obtained from their registered office at Winander House, Glebe Road, Bowness-on-Windermere, Cumbria, LA23 3HE. Winander Group Holdings Limited is the smallest and largest group into which Winander Leisure Limited is consolidated.