Snowdome Group Limited - Limited company accounts 23.1

REGISTERED NUMBER: 05672413 (England and Wales)

Snowdome Group Limited

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 September 2022

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

M J Smith

T Carter

Miss I Chadbourne

J S Smith

SECRETARY:

M J Smith

REGISTERED OFFICE:

Leisure Island

River Drive

Tamworth

Staffordshire

B79 7ND

REGISTERED NUMBER:

05672413 (England and Wales)

AUDITORS:

Haines Watts Tamworth Limited

Chartered Accountants and Statutory Auditors

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

The directors present their strategic report of the company and the group for the year ended 30 September 2022.

The principal activity of the Group during the year continued to be the operation of an indoor real snow, sport and leisure facility.

The principal activity of the Company continued to be that of a holding company.

REVIEW OF BUSINESS

The economy in the year (for a business such as ours) was far calmer than the previous year when, within the previous year, the property was closed during the mandated periods of lockdown. There was however some disruption to our usual winter trade patterns caused by the outbreak of the omicron variant of covid which impacted access into the alpine ski resorts during December 2021 and January 2022. Once this disruption had passed our trade was strong.

The Board are able to report that overall, the Group has traded successfully through this year.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group trades in diverse sectors of the economy e.g. winter sports associated with winter vacation and impulse indoor leisure trades such as ice skating that are popular at short notice and easy to commit to (i.e. low ticket price) and the members health & fitness business that has annual usage paid for through steady monthly direct debits.

The continuation of the Board's planned investment in the Group's activities will only serve to build on the current strength of the business and help mitigate against the threat of both the current and the future wider economic conditions, which they consider to be the principal risk facing the Group.

The Board look forward therefore to continued steady trading results going forwards.

FINANCIAL KEY PERFORMANCE INDICATORS

During the year, the Group's turnover was £10,333,739 (2021 - £4,339,882). Operating profit meanwhile was £2,695,683 (2021 loss - £325,505). The directors consider these to be the Group's key performance indicators.

At the year end, the Group had net assets of £9,594,360 (2021 - £7,835,365) and has sufficient headroom in its agreed facilities to support the Group's future trading needs and growth plans. The Board therefore believe the Group's financial position to be entirely satisfactory.

FINANCIAL INSTRUMENTS

The Group makes use of financial instruments principally through the operation of bank accounts, bank loans and hire purchase contracts. The directors' objectives are to retain sufficient liquid funds to enable the group to meet its day to day obligations as they fall due.

ON BEHALF OF THE BOARD:

M J Smith - Director

24 February 2023

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2022.

PRINCIPAL ACTIVITY

The principal activity of the group during the year continued to be the operation of an indoor real snow, sport and leisure facility.

The principal activity of the Company continued to be that of a holding company.

DIVIDENDS

Details of dividends declared are disclosed in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2021 to the date of this report.

M J Smith

T Carter

Miss I Chadbourne

J S Smith

Other changes in directors holding office are as follows:

G S Baker - resigned 7 June 2022

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Haines Watts Tamworth Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M J Smith - Director

24 February 2023

Opinion

We have audited the financial statements of Snowdome Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2022 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- results of our enquiries of management about their own identification and assessment of the risks and irregularities

- any matters we identified having obtained an understanding of the company policies and procedures relating to

- identifying, evaluating and complying with laws and regulations and whether they are aware of any instances of

non-compliance

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or

alleged fraud

- the internal controls set up to mitigate risks of fraud or non-compliance with laws and regulations

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the

financial statements and any potential indicators of fraud.

- obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on

those laws and regulations that had a direct effect on the financial statements, including UK Companies Act 2006,

pensions and tax legislation

- provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance

with which may be fundamental to the company's ability to operate or to avoid material penalty.These include

on-going monitoring, review and revision of implemented policies and procedures set out by the Health & Safety

Executive (HSE).

As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with

provisions of relevant laws and regulations described as having a direct effect on the financial statements

- enquiring of management concerning actual and potential legal action and claims

- carrying out analytical procedures to identify any unusual or unexpected relationships that may indicate risks of

material misstatement due to fraud

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal

entries and other adjustments; assessing whether the judgements made in making accounting estimates are

indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual

or outside the normal course of business.

- considering performance targets and their influence on efforts made by management to manage earnings

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Stephen Butler (Senior Statutory Auditor)

for and on behalf of Haines Watts Tamworth Limited

Chartered Accountants and Statutory Auditors

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

24 February 2023

TURNOVER

3

10,333,739

4,339,882

Cost of sales

710,910

149,902

GROSS PROFIT

9,622,829

4,189,980

Distribution costs

19,493

-

Administrative expenses

7,498,138

5,303,951

7,517,631

5,303,951

2,105,198

(1,113,971

)

Other operating income

4

590,485

788,466

OPERATING PROFIT/(LOSS)

6

2,695,683

(325,505

)

Interest receivable and similar income

7

3,033

4,344

2,698,716

(321,161

)

Interest payable and similar expenses

8

61,633

47,302

PROFIT/(LOSS) BEFORE TAXATION

2,637,083

(368,463

)

Tax on profit/(loss)

9

491,589

(11,733

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

2,145,494

(356,730

)

Profit/(loss) attributable to:

Owners of the parent

2,145,494

(356,730

)

PROFIT/(LOSS) FOR THE YEAR

2,145,494

(356,730

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,145,494

(356,730

)

Total comprehensive income attributable to:

Owners of the parent

2,145,494

(356,730

)

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

10,790,827

11,150,883

Investments

14

-

-

10,790,827

11,150,883

CURRENT ASSETS

Stocks

15

23,893

22,242

Debtors

16

2,563,124

251,748

Cash at bank

848,648

3,455,781

3,435,665

3,729,771

CREDITORS

Amounts falling due within one year

17

2,431,963

3,300,396

NET CURRENT ASSETS

1,003,702

429,375

TOTAL ASSETS LESS CURRENT LIABILITIES

11,794,529

11,580,258

CREDITORS

Amounts falling due after more than one year

18

(2,060,798

)

(3,571,596

)

PROVISIONS FOR LIABILITIES

22

(139,371

)

(173,297

)

NET ASSETS

9,594,360

7,835,365

CAPITAL AND RESERVES

Called up share capital

23

11,448

11,448

Share premium

24

14,238

14,238

Capital redemption reserve

24

1,460

1,460

Retained earnings

24

9,567,214

7,808,219

SHAREHOLDERS' FUNDS

9,594,360

7,835,365

The financial statements were approved by the Board of Directors and authorised for issue on 24 February 2023 and were signed on its behalf by:

M J Smith - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

9,567,897

9,762,681

Investments

14

-

-

9,567,897

9,762,681

CURRENT ASSETS

Debtors

16

6,597,894

4,304,472

Cash at bank

18,962

4,547

6,616,856

4,309,019

CREDITORS

Amounts falling due within one year

17

15,847,321

12,079,051

NET CURRENT LIABILITIES

(9,230,465

)

(7,770,032

)

TOTAL ASSETS LESS CURRENT LIABILITIES

337,432

1,992,649

CREDITORS

Amounts falling due after more than one year

18

(2,060,798

)

(3,571,596

)

PROVISIONS FOR LIABILITIES

22

(121

)

-

NET LIABILITIES

(1,723,487

)

(1,578,947

)

CAPITAL AND RESERVES

Called up share capital

23

11,448

11,448

Share premium

14,238

14,238

Capital redemption reserve

1,460

1,460

Retained earnings

(1,750,633

)

(1,606,093

)

SHAREHOLDERS' FUNDS

(1,723,487

)

(1,578,947

)

Company's profit for the financial year

241,959

208,451

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 24 February 2023 and were signed on its behalf by:

M J Smith - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 October 2020

11,448

8,666,949

14,238

1,460

8,694,095

Changes in equity

Dividends

-

(502,000

)

-

-

(502,000

)

Total comprehensive income

-

(356,730

)

-

-

(356,730

)

Balance at 30 September 2021

11,448

7,808,219

14,238

1,460

7,835,365

Changes in equity

Dividends

-

(386,499

)

-

-

(386,499

)

Total comprehensive income

-

2,145,494

-

-

2,145,494

Balance at 30 September 2022

11,448

9,567,214

14,238

1,460

9,594,360

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 October 2020

11,448

(1,312,544

)

14,238

1,460

(1,285,398

)

Changes in equity

Dividends

-

(502,000

)

-

-

(502,000

)

Total comprehensive income

-

208,451

-

-

208,451

Balance at 30 September 2021

11,448

(1,606,093

)

14,238

1,460

(1,578,947

)

Changes in equity

Dividends

-

(386,499

)

-

-

(386,499

)

Total comprehensive income

-

241,959

-

-

241,959

Balance at 30 September 2022

11,448

(1,750,633

)

14,238

1,460

(1,723,487

)

Cash flows from operating activities

Cash generated from operations

1

241,467

1,734,377

Interest paid

(60,118

)

(43,875

)

Interest element of hire purchase payments paid

(1,515

)

(3,427

)

Tax paid

(340,397

)

(224,695

)

Net cash from operating activities

(160,563

)

1,462,380

Cash flows from investing activities

Purchase of tangible fixed assets

(447,566

)

(261,380

)

Interest received

3,033

4,344

Net cash from investing activities

(444,533

)

(257,036

)

Cash flows from financing activities

New loans in year

-

1,000,000

Loan repayments in year

(1,600,000

)

-

Capital repayments in year

(15,538

)

(38,039

)

Equity dividends paid

(386,499

)

(502,000

)

Net cash from financing activities

(2,002,037

)

459,961

(Decrease)/increase in cash and cash equivalents

(2,607,133

)

1,665,305

Cash and cash equivalents at beginning of year

2

3,455,781

1,790,476

Cash and cash equivalents at end of year

2

848,648

3,455,781

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2022

2021

£

£

Profit/(loss) before taxation

2,637,083

(368,463

)

Depreciation charges

807,621

798,833

Finance costs

61,633

47,302

Finance income

(3,033

)

(4,344

)

3,503,304

473,328

Increase in stocks

(1,651

)

(15,951

)

Increase in trade and other debtors

(2,311,376

)

(72,591

)

(Decrease)/increase in trade and other creditors

(948,810

)

1,349,591

Cash generated from operations

241,467

1,734,377

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 September 2022

30.9.22

1.10.21

£

£

Cash and cash equivalents

848,648

3,455,781

Year ended 30 September 2021

30.9.21

1.10.20

£

£

Cash and cash equivalents

3,455,781

1,790,476

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.21

Cash flow

At 30.9.22

£

£

£

Net cash

Cash at bank

3,455,781

(2,607,133

)

848,648

3,455,781

(2,607,133

)

848,648

Debt

Finance leases

(37,134

)

15,538

(21,596

)

Debts falling due within 1 year

(700,000

)

100,000

(600,000

)

Debts falling due after 1 year

(3,550,000

)

1,500,000

(2,050,000

)

(4,287,134

)

1,615,538

(2,671,596

)

Total

(831,353

)

(991,595

)

(1,822,948

)