Blue Anchor Leisure Limited - Limited company accounts 23.2

REGISTERED NUMBER: 01091655 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

Blue Anchor Leisure Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

P R F Holmes

Mrs S Woodward

J S Moses

REGISTERED OFFICE:

Robin Hood Park, South Road

Chapel St Leonards

Skegness

Lincolnshire

PE24 5TR

REGISTERED NUMBER:

01091655 (England and Wales)

AUDITORS:

Torr Waterfield Limited

Statutory Auditor

Park House

37 Clarence Street

Leicester

Leicestershire

LE1 3RW

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS

Turnover has shown a small decrease for the company from £31,175,000 in 2022 to £29,249,000 in 2023, and pre tax profits have declined to £2,400,000 (2022 - £4,978,000), which is a decrease of 52% on last year. The directors are pleased with these results given the difficult trading conditions in the year with the increasing energy costs and inflationary pressures being faced in the economy.

Our business remains well financed and in a good position to take advantage of increases in demand as the inflationary pressures faced by customers decline.

PRINCIPAL RISKS AND UNCERTAINTIES

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

Economic risk

The two biggest factors are caravan sales and holiday bookings. Caravan sales can be affected by customer confidence, interest rates and job uncertainty. Caravan sales have started to increase as the economic uncertainty of previous years starts to improve. Holiday bookings have also remained strong.

Competitor risk

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

Financial risk

The company has budgetary and financial reporting procedures, supported by appropriate key performance indicators, to manage credit, liquidity and other financial risk.

SECTION 172(1) STATEMENT

The directors of the company act in accordance and reference to the duties detailed in Section 172 of the Companies Act 2006. These duties may be summaried as:

To act in good faith furthering the success of the group for the benefit of its key stakeholders.

This includes:

- considering both the short term and long term impact of their actions and the decision making process;

- taking account of the interests of the company's employees;

- considering the need to foster the company's relationships with their suppliers, customers and the wider community within which it operates;

- taking account of the impact of the company on its environment;

- maintaining the company's reputation for high standard of business conduct; and

- the need to act fairly regarding the company's stakeholders

Risk management

Directors endeavour to effectively identify, evaluate, mitigate and balance risk within the business. As the environment changes the directors continue to evolve their approach to risk management.

People

Our people are fundamental to the successful operation of the business. See section on 'Engaging with employees' within the Directors report.

Business relationships

Our approach on engagement and management of business relationships with suppliers and customers is discussed within the Directors report.

Community and the environment

We endeavour to use our position to create positive change for both the people and communities that we work with.

FINANCIAL INSTRUMENTS

The company does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cashflow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means that they are not subject to price risk or liquidity risk.

The company is exposed to interest rate fluctuations on its secured bank loans but does not consider this to be material to the assessment of its financial position or profit.

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

FUTURE DEVELOPMENTS

We continue to improve and grow our business and predict another successful year in 2024.

ON BEHALF OF THE BOARD:

P R F Holmes - Director

25 April 2024

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale of new and used caravans and the operation of caravan parks along the east coast of Lincolnshire.

DIVIDENDS

During the year, a dividend of £3,000,000 was recommended and paid (2022 - £6,000,000).

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

P R F Holmes

Mrs S Woodward

J S Moses

ENGAGEMENT WITH EMPLOYEES

We operate an equal opportunities employment policy and take all precautions to ensure the health safety and welfare of our staff.

As a family-run business we know that our fantastic team is crucial to every success, We devote a lot of care in selecting the best people for each job and training them to ensure that they have the right skills to do that job. We aim to build trusting relationships where employees feel motivated and engaged and are encouraged to develop to realise their own potential through support and training.

Gender pay gap

The group strives to ensure that everyone regardless of age, gender, background, race or ethnicity, has an equal opportunity to develop and progress within our organisation. Our desire is to create a group and culture that attracts and retains the best people in out industry, and reflects the communities we are part of. It is important for us therefore to maintain a balance between male and female employees across our different functions.

Employment of disabled persons

We take all reasonable precautions to ensure full and fair consideration to all applications for employment by disabled persons, having regard for their particular aptitudes and abilities. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Customers

Our aim is to deliver the best customer experience, providing everything to ensure that family holidays are enjoyable and memorable. To achieve this we engage with our customers through a variety of channels including emails, website and social media. We ask for feedback from customers on all aspects of their interaction with us. We believe that engaging with our customers, we can understand what they value most and ensure that we are tailoring our services to match their expectations.

Suppliers

We work to develop long term relationships with our suppliers and are committed to supporting local businesses whenever practical. As with customers, suppliers are treated with respect and dealt with in a fair, honest and equitable manner.

STREAMLINED ENERGY AND CARBON REPORTING

The company is required to report under the Streamlined Energy and Carbon Reporting (SECR) framework under the Companies and Limited Liabilities Partnerships Regulations 2018. We have followed the governments guidance on how to measure and report greenhouse gas emissions and have used the 2023 UK Government's Conversion Factors for Company Reporting.

This is the first reporting year for the company, therefore previous years data has not been utilisied to act as a comparison function. January 2023 to December 2023 will act as a baseline for future years reporting.

Greenhouse gas emissions and energy use data for the year 1 January 2023 to 31 December 2023

2023

kWh

Energy consumption

Aggregate of energy consumption in the year

10,283,400

2023

tCO2e

Scope 1 - direct emissions

Gas

816

Scope 2 - indirect emissions

Electricity

1,363

Total gross emissions

2,179

Intensity ratio

Tonnes CO2e per £    of revenue

0.075

Intensity measurement

The chosen intensity measurement ratio is the gross emissions in metric tonne per £    of revenue in the year.

Measures taken to improve energy efficiency

The directors have reviewed the energy and carbon emissions of the company and are commencing a project to install electric car charging points at all sites.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

P R F Holmes - Director

25 April 2024

Opinion

We have audited the financial statements of Blue Anchor Leisure Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

The capability to detect irregularities is based on the auditor identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, and then designing and performing audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

a) 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, the following approach was taken:

-

Understanding the nature of the industry and sector, control environment and business performance;

-

Consideration of the results of our enquiries of management and those charged with governance about their own identification and assessment of the risks of irregularities;

-

Understanding the company's policies and procedures on compliance with laws and regulations and management of fraud risk, including documentation of instances of non-compliance of laws and regulations and instances of actual, suspected or alleged fraud;

-

Consideration of matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;

-

Understanding the legal and regulatory frameworks that the company operates in through enquiry of management and those charged with governance and understanding the company's industry and sector. The key laws and regulations that were considered to have an effect on material amounts and disclosures in the financial statements included the Companies Act and tax legislation.

b) Audit response to risks identified

Based on this understanding, the following audit procedures were designed and performed to respond to the risks identified:

-

Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations described as having a direct effect on the financial statement;

-

Enquiring of management, those charged with governance and, where applicable, the company's solicitors concerning actual and potential litigation and claims;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

Reviewing minutes of meetings of those charged with governance and, where applicable, correspondence with regulators;

-

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business;

-

Communication of potential fraud risks to all engagement team members and remaining 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.

Mark Torr (Senior Statutory Auditor)

for and on behalf of Torr Waterfield Limited

Statutory Auditor

Park House

37 Clarence Street

Leicester

Leicestershire

LE1 3RW

26 April 2024

TURNOVER

3

29,249

31,175

Cost of sales

(23,805

)

(23,792

)

GROSS PROFIT

5,444

7,383

Administrative expenses

(2,166

)

(2,141

)

OPERATING PROFIT

5

3,278

5,242

Interest receivable and similar income

46

110

3,324

5,352

Interest payable and similar expenses

6

(924

)

(374

)

PROFIT BEFORE TAXATION

2,400

4,978

Tax on profit

7

(654

)

(983

)

PROFIT FOR THE FINANCIAL YEAR

1,746

3,995

OTHER COMPREHENSIVE INCOME

Deferred tax adjustment

104

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

104

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,850

3,995

FIXED ASSETS

Tangible assets

9

83,345

81,798

Investments

10

-

-

83,345

81,798

CURRENT ASSETS

Stocks

11

3,017

3,665

Debtors

12

7,602

7,264

Cash in hand

21

15

10,640

10,944

CREDITORS

Amounts falling due within one year

13

(18,156

)

(17,039

)

NET CURRENT LIABILITIES

(7,516

)

(6,095

)

TOTAL ASSETS LESS CURRENT LIABILITIES

75,829

75,703

CREDITORS

Amounts falling due after more than one year

14

(6,289

)

(5,230

)

PROVISIONS FOR LIABILITIES

17

(7,425

)

(7,208

)

NET ASSETS

62,115

63,265

CAPITAL AND RESERVES

Called up share capital

18

974

974

Revaluation reserve

19

28,602

28,498

Capital redemption reserve

19

26

26

Retained earnings

19

32,513

33,767

SHAREHOLDERS' FUNDS

62,115

63,265

The financial statements were approved by the Board of Directors and authorised for issue on 25 April 2024 and were signed on its behalf by:

P R F Holmes - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£'000

£'000

£'000

£'000

£'000

Balance at 1 January 2022

974

35,772

28,498

26

65,270

Changes in equity

Profit for the year

-

3,995

-

-

3,995

Total comprehensive income

-

3,995

-

-

3,995

Dividends

-

(6,000

)

-

-

(6,000

)

Balance at 31 December 2022

974

33,767

28,498

26

63,265

Changes in equity

Profit for the year

-

1,746

-

-

1,746

Other comprehensive income

-

-

104

-

104

Total comprehensive income

-

1,746

104

-

1,850

Dividends

-

(3,000

)

-

-

(3,000

)

Balance at 31 December 2023

974

32,513

28,602

26

62,115

1.	STATUTORY INFORMATION

Blue Anchor Leisure Limited is a private company limited by shares registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements are presented in sterling and all values are rounded to the nearest round thousand (£   ) except where otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about Blue Anchor Leisure Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Blue Anchor Leisure Holdings Limited, Robin Hood Park, South Road, Chapel St Leonards, Skegness, Lincolnshire, PE24 5TR.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the process of applying the company's accounting policies, the company is required to make certain judgements, estimates and assumptions that it believes are reasonable based on the information available. The significant judgements relate to the following:

Tangible fixed assets

Tangible fixed assets except freehold land are depreciated over the useful lives of the assets. Useful lives are based on management's estimates of the period that the assets will generate revenue, which are reviewed annually for continued appropriateness. The carrying values are tested for impairment when there are indications that the value of assets might be impaired. When carrying out impairment tests these would be based upon future anticipated income yields and these would be based upon management judgement. Future events could cause the assumptions to change and this could have an adverse effect on the future results of the company.

Recoverability of trade debtors

The estimates and assumptions used to assess the recoverability of trade debtors consist of the payments received against balances and payment history and the credit worthiness of the customer.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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

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

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

Sales of log cabins are recognised upon completion.

Other takings are recognised on receipt.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

15% on cost

Fixtures and fittings

-

15% on cost and 10% on cost

Motor vehicles

-

25% on reducing balance

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated.

In previous years the company adopted a policy of revaluing its freehold properties. On adoption of FRS102 on 1 January 2015, the directors chose not to follow a revaluation policy and to recognise these at deemed cost.

Stocks

Caravan and sundry stock are valued at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs.

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

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

Financial assets that are measured at cost and amortised are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The balance sheet has net current liabilities of £7,516,000 (2022 - £6,095,000). Included in creditors is deferred income of £9,044,000 (2022 - £8,443,000) which relates to park rental and are non-refundable, being allocated to the statement of comprehensive income when earned.

The directors have prepared forecasts which show that the company will continue to operate within its agreed bank facilities and will be able to meet its liabilities as and when they fall due. As a result the directors consider that there are no indicators to suggest that the company is not a going concern.

3.

TURNOVER

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

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

31.12.23

31.12.22

£'000

£'000

Sale of Caravans

7,383

9,372

Site rentals

15,066

14,481

Log cabin sales

1,014

1,094

Other takings

5,786

5,418

Sale of land

-

810

29,249

31,175

4.	EMPLOYEES AND DIRECTORS

31.12.23

31.12.22

£'000

£'000

Wages and salaries

7,871

7,310

Social security costs

746

740

Other pension costs

233

210

8,850

8,260

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

31.12.23

31.12.22

Holiday caravan site staff

270

249

Office and management

21

21

291

270

31.12.23

31.12.22

£

£

Directors' remuneration

609,434

661,031

Directors' pension contributions to money purchase schemes

24,869

26,444

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

31.12.23

31.12.22

£

£

Emoluments etc

358,668

393,561

Pension contributions to money purchase schemes

7,500

10,000

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.23

31.12.22

£'000

£'000

Depreciation - owned assets

1,272

1,208

Profit on disposal of fixed assets

(35

)

(10

)

Auditors' remuneration

30

21

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.23

31.12.22

£'000

£'000

Bank interest

924

374

7.

TAXATION

Analysis of the tax charge

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

31.12.23

31.12.22

£'000

£'000

Current tax:

UK corporation tax

334

796

Deferred tax

320

187

Tax on profit

654

983

UK corporation tax has been charged at 23.50% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss

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

31.12.23

31.12.22

£'000

£'000

Profit before tax

2,400

4,978

Profit multiplied by the standard rate of corporation tax in the UK of 23.500% (2022 - 19%)

564

946

Effects of:

Expenses not deductible for tax purposes

63

48

Capital expended

-

(1

)

Enhanced capital allowances

(4

)

(55

)

Change in tax rate for deferred tax provision

31

45

Total tax charge

654

983

Tax effects relating to effects of other comprehensive income

31.12.23

Gross

Tax

Net

£'000

£'000

£'000

Deferred tax adjustment

104

-

104

The UK corporation tax rate was 19% until 1 April 2023 when the tax rate increased to 25% for the remainder of the year ended 31 December 2023.

Deferred taxes at the balance sheet date have been measured using these enacted rates and reflected in these financial statements. Deferred tax has been calculated at 25%.

8.

DIVIDENDS

31.12.23

31.12.22

£'000

£'000

Ordinary shares of £1 each

Interim

3,000

6,000