Company Registration Number
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LAKE DISTRICT HOLDINGS LIMITED
COMPANY INFORMATION
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LAKE DISTRICT HOLDINGS LIMITED
CONTENTS
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LAKE DISTRICT HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2021
Objectives
The group wishes to remain a leading, family-owned Cumbrian business specialising in tourism and leisure. Strategy The objectives will be delivered by: • Creating special, individual places in outstanding natural surroundings. • Delivering strong, high quality and consistent experiences for our visitors. • Developing our workforce so that they are well-trained, motivated and capable employees. • Acting sustainably and responsibly by putting environmental, community and health and safety considerations at the centre of everything we do.
Principal risks and uncertainties
The group is principally involved in the provision of visitor attractions and public transport, retail outlets and accommodation for visitors and others in the Lake District and Cumbria. As such, the principal risks it faces are: • Events which deter or prevent holidaymakers travelling and using facilities which the group has to offer: such events would include health alarms and pandemics, terrorism and natural disasters, particularly storms and flooding. The group seeks to mitigate the impact of such events both by building in resilience and through insurance. • The economic climate: holiday spending is discretionary and, at a time when people’s budgets are under pressure, spending on holidays can be one of the first things to be cut. Exchange rates also have an effect with more people holidaying in the UK when Sterling is weak. • Interest rates: the group has invested heavily in recent years with much of the funding provided by bank borrowing. As a result, interest is now a significant cost. The group mitigates the risk of adverse interest rates through the use of financial instruments. • The weather: the number of visitors is particularly dependent on good weather, especially in the main summer season between mid-July and the end of August when a substantial part of the income is earned. The group continues to weatherproof its facilities to enable visitors to enjoy themselves whatever the weather. • Health and Safety: there are health and safety risks associated with the group’s business. The group seeks to minimise the likelihood and potential effect of an accident by the implementation of rigorous health and safety policies. It also recognises that sometimes accidents are outside its control and protects itself from any claims that might consequently result by carrying good third-party insurance cover.
Activity during the year was severely disrupted by the Covid-19 pandemic. The year began with plans in place for a strong visitor season with new investment in our holiday parks and self-catering accommodation coming on stream. These were sadly dashed when the rapid advance of Covid 19 necessitated the closure of all activity in mid-March just as the businesses were just in the process of re-opening before Easter. A few days later the Government lock-down restrictions were introduced. We were not able to entertain visitors again until July when the restrictions were gradually lifted. Initially the group took the decision to close down all activity completely and, other than undertaking essential management and security tasks, all staff were asked to remain at home. The group took advantage of the Government’s furlough scheme to enable wages to continue to be paid.
During lockdown management efforts were focused on preparing Business Continuity Plans which set out how the businesses could re-open and operate safely once restrictions were lifted. These required substantial changes to normal operations, such as advance booking, re-organisation of communal spaces to enable social distancing and intensive cleaning regimes. These Business Continuity Plans enabled the businesses to navigate through the confusing period of gradually reducing restrictions and re-start operations on a limited basis.
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LAKE DISTRICT HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2021
Through the summer demand for the group’s lodges, caravans and self-catering accommodation was strong as these enabled visitors to remain in their own bubbles. However, social distancing rules at the attractions severely restricted the numbers that could be carried. Both the Ravenglass & Eskdale Railway and Ullswater Steamers continued to give pleasure to visitors enjoying the Lake District landscape but they were unable to operate profitably. Preparations for the Christmas season were interrupted by the November lockdown and the year ended with a further lockdown in January. The format of the Ravenglass & Eskdale Railway’s Santa Specials was revised to make them Covid-compatible and they were one of the few end-of -year activities that were able to proceed, delighting many young families. Throughout the year, rental property income remained stable bringing a secure cash stream into the business. Retail also performed well when shopping was permitted and a fourth Peter Rabbit and Friends shop was opened in Grasmere in August. This was able to take advantage of the surge of day visitors to the Lake District. The Veg Patch on-line shop which opened in 2019 also extended its range offering children’s toys and activities to those unable to shop in person. With the loss of Easter trade and uncertainties about the future, cash retention was an important consideration for the group. Loan repayment holidays and additional overdraft facilities were agreed with our bankers and the group was able to take advantage of considerable government support through the furlough scheme, rates relief, business grants to rateable businesses and the VAT reduction to 5%. Capital and major maintenance expenditure were severely pruned and dividend payments were halted. For the most part, the group’s business interruption insurance was found not to apply to pandemics although our holiday parks and self-catering holiday business were able make limited claims. These measures allowed the group to begin 2021 in a reasonable cash position. Given the problems that had to be faced, the results for the year with a turnover down 17% at £10.2m and profit before tax down 8% at £2.9m still show considerable resilience and the benefits of our diversified business. 2020 was, in effect, a lost year with plans for investment and development put on ice. The experiences of Covid-19 have led to changes and re-prioritisation of those plans. In particular, rapid development of our digital systems has been necessary to enhance our on-line booking systems and to allow working from home. At the attractions, new timetables and operating procedures have been adopted and the experiences gained will lead to long-term changes. Many of the plans we had in March 2020 will be restarted - investment in improving facilities at our holiday parks, improving our self-catering holiday accommodation and upgrading our properties in general to meet Energy Performance standards. The group is also assessing its carbon footprint and considering what needs to be done to reach net-zero in a reasonable timescale. At the same time, uncertainties over the tourism sector post-Covid and, in particular, the future of both inbound and outbound foreign travel, remain and the group will be cautious in how it proceeds.
As a result of the pandemic new health and safety regimes were successfully introduced throughout all the group’s activities to ensure that both staff and customers remained safe. At the same time further progress was made in introducing the Prime monitoring system to all activities thereby helping to improve compliance with agreed policy and procedures.
The directors monitor the performance of the group through turnover, profitability and cash flow. Because of the pandemic, comparison of turnover and profitability with previous years was not particularly meaningful but cash flow was monitored carefully with the preparation of numerous forecasts under different scenarios. Turnover fell 26.7% to £10.2m. Group profitability is shown on page 8 of this report. The Board also tracks gross margin – 63.9% (2020 – 66.5%).
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LAKE DISTRICT HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2021
2020 proved an extremely demanding time for our staff. The paragraphs above list the extensive planning and implementation work that had to be carried out to ensure that the businesses came through this unprecedented period of disruption and change. That they have done so well in such difficult circumstances is a huge compliment to our staff. Whether facing prolonged periods of isolation at home or designing and implementing completely new working practices, they have all responded magnificently to the challenge and the Board is immensely grateful to them all.
This report was approved by the board
and signed on its behalf.
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LAKE DISTRICT HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2021
The directors present their report and the financial statements for the year ended 31 January 2021.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the
consolidated
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year
. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 for the Group's financial statements and then apply them consistently;
∙
make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £
2,518,687
(2020 -
£
2,350,082
)
.
There were no dividends declared or paid during the year.
The directors who served during the year were:
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LAKE DISTRICT HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2021
There have been no significant events affecting the Group since the year end.
The auditors, Armstrong Watson Audit Limited, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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LAKE DISTRICT HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT HOLDINGS LIMITED
We have audited the financial statements of Lake District Holdings Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 January 2021, which comprise the Group Statement of Comprehensive Income, the Group and company Statements of Financial Position, the Group Statement of Cash Flows, the Group and company Statement of Changes in Equity
and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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 or 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.
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LAKE DISTRICT HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Group 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 Group 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 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 Directors' Report.
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LAKE DISTRICT HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT HOLDINGS LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: • the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; • we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; • we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.. • we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and • identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: • making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; • considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and • reviewing the key areas of the financial statements most susceptible to fraud whilst tailoring our audit plans. . To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates, such as the investment property valuations were indicative of potential bias; - investigated the rationale behind significant or unusual transactions; and - reviewed CJRS claims made during the financial year to ensure compliant with HMRC. During our testing of the above, we identified a number of journals made with no supporting evidence. We have therefore undertaken alternative testing to gain assurance that these journals were posted due to a lack of understanding opposed to management override or fraudulent transactions.
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LAKE DISTRICT HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LAKE DISTRICT HOLDINGS LIMITED (CONTINUED)
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual and potential litigation and claims; - reviewing correspondence with HMRC and the company’s legal advisors; There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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 Auditors' Report.
This report is made solely to the company's directors, 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 directors those matters we are required to state to them in an Auditors' 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 directors, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditors
Carlisle
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LAKE DISTRICT HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2021
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LAKE DISTRICT HOLDINGS LIMITED
REGISTERED NUMBER:
02160419
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2021
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LAKE DISTRICT HOLDINGS LIMITED
REGISTERED NUMBER:
02160419
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
31 JANUARY 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 19 to 41 form part of these financial statements.
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LAKE DISTRICT HOLDINGS LIMITED
REGISTERED NUMBER:
02160419
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 19 to 41 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 JANUARY 2021
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LAKE DISTRICT HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 JANUARY 2021
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LAKE DISTRICT HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2021
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LAKE DISTRICT HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2021
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LAKE DISTRICT HOLDINGS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JANUARY 2021
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Lake District Holdings Limited ('the company') is a limited company incorporated in the United Kingdom. The address of its registered office and principal place of business is Maudlands, Maude Street, Kendal, Cumbria, LA9 4QD.
The principal activity of the group is the provision of visitor attractions and public transport, retail outlets and accommodation for visitors and others in the Lake District and Cumbria.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using merger accounting. The Group recognised a merger reserve which arose on a past business combination that was accounted for in accordance with UK GAAP as applied at that time. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income and Statement of Financial Position from the date on which this restructure occurred.
At the balance sheet date, the Group had net assets of £30,878k, net current liabilities of £2,122k after making a profit for the year of £2,519k. The Group has therefore improved on its overall financial position in an unusual year caused by the pandemic.
The directors continue to monitor the Group's financial performance and cashflow forecasts closely through the winter months. Demand for staycations and caravans remain high, and the directors deem there to be sufficient cash resources to meet liabilities as they fall due in the upcoming 12 months from signing the accounts. They therefore deem the going concern basis appropriate.
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
2.
Accounting policies (continued)
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
2.
Accounting policies (continued)
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
2.
Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Page 22
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
2.
Accounting policies (continued)
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Deferred tax is provided on these gains at the rate expected to apply when the property is sold.
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
2.
Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
2.
Accounting policies (continued)
Judgments and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (a) Establishing useful economic lives for depreciation purposes of property, plant and equipment Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant portion of the total fixed assets. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The directors regularly review these assets useful economic lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation charges for the period. Details of the depreciation policies based on estimated useful economic lives are included in accounting policies note 2.15. (b ) Revaluation of investment property Under FRS102, investment property must be accounted for at its fair value in the financial statements. The directors have carried out a revaluation during the year, which required their judgement to apply reasonable assumptions when calculating the true and fair value of each investment property. The directors deemed using a yield percentage of annual rental income an appropriate measure to calculate the fair value of each investment property to the company.
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Page 26
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Page 27
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Page 28
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
12.
Taxation (continued)
An increase in the UK corporate tax from 19% to 25% was announced in the 2021 budget, this is scheduled to take effect from April 2023. The rate for small profits under £50,000 will remain at 19%, and there will be taper relief for businesses with profits between £50,000 and £250,000. Since the proposal to increase the rate to 25% had not been substantively enacted at the balance sheet date, its effects are not included in these financial statements
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Page 30
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Page 31
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
15.
Tangible fixed assets (continued)
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Page 33
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
The 2021 valuations were made by H & H Land & Estates and the Directors, on an open market value for existing use basis.
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Page 35
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
The bank loans included above are secured by a legal charge over specific land and buildings held by the group.
The group has two unsecured loans. One of £26,700 is repayable on the winding up of a subsidiary company, or in the event of a binding contract being entered into by a subsidiary company for the sale of its physical assets employed in the operation of the railway. The second loan of £100,000 is repayable in ten equal installments over 10 years with the first repayment having been made on 31 October 2015. It bears interest at 1% over base rate. A payment holiday was offered and accepted during the year. The total amount therefore outstanding on this loan at the year end date is £50,000 (2020 - £50,000) of which £10,000 is due within one year as normal repayment terms resume. Included in deferred income due more than one year is £nil (2020 - £33,891) relating to a deferred government grant.
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Page 37
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Page 38
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
25.
Deferred taxation (continued)
The Company has one class of ordinary shares which carry equal voting rights but no right to fixed income.
Page 39
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Share premium account
Investment property revaluation reserve
Other reserves
Land and buildings revaluation reserve This reserve represents the cumulative revaluation gains and losses on revaluation of land and buildings held as tangible assets.
Profit and loss account
The group is party to a Composite Accounting Agreement dated 22 January 2019 with Barclays Bank and 30 December 2019 with Lloyds Bank PLC. Under the terms of each agreement, the bank is authorised to set-off for interest purposes and in certain circumstances to off-set the credit balances and apply them in reduction of liabilities including debit balances within the agreement.
An unlimited guarantee has been given by the group companies in respect of the group's borrowings with Barclays Bank Plc.
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £139,281 (2020 - £133,237). Contributions totaling £Nil (2020 - £Nil) were payable to the fund at the reporting date.
Page 40
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LAKE DISTRICT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
A balance of £19,816 was owed to the group by a director as at 1 February 2020. The loan was repaid in full during the year.
In the opinion of the directors, there is no ultimate controlling party.
Page 41
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