27 July 2022

Belvedere Leisure Resorts plc

 ("Belvedere" or the "Company" or the "Group")

Final results for the year ended 30 June 2021

Belvedere, the luxury holiday resort developer, announces its final results for the year ended 30 June 2021.

Strategic report for the year ended 30 June 2021

Review of the business

On 30^th June 2021, the Company entered into a joint venture agreement with Apple Invest Limited at an initial cost of £2,977,460 towards the acquisition of sites at Barnsoul Caravan Park at Irongray, Dumfries and Galloway and Barncrosh Farm at Castle Douglas, Dumfries and Galloway. Apple Invest Limited completed the acquisition of the Barnsoul Caravan Park on 19th May 2021 and Barncrosh Farm shortly after the year end on 6th July 2021.

The objectives of the joint venture arrangement were to obtain funding towards the acquisition and development of these sites into a new holiday resort.

Under the joint venture arrangements, the Company has taken control of the operation of Barnsoul site, and its existing business.

Additionally, under the terms of the joint venture agreement, the Company has secured the development of Barncrosh Farm, a  purpose-built leisure resort planned to deploy over 400 lodges in the next five years.

The Company has directly acquired land at Barncrosh Meadows which will be operated alongside Barncrosh Farm.

On 16^th September 2021 the company entered a Park Marketing and Management Agreement with Landal Greenparks (UK) Limited. Under this agreement Landal Green Parks, one of Europe's leading holiday resort operators with now over 100 locations in 9 countries, will take over the management and marketing of the new resort, to be re-named Landal Barnsoul, from August 2022 upon the launch of the new holiday resort.  The Company will increase the number of lodge units over the course of the next two years to enhance the existing staycation offering within the 160 acre site.

Between the three locations the Company will have the ability to develop and install up to 700 lodges in South West Scotland over the next five years, all to be marketed and managed by Landal GreenParks with the aim to make the region a destination venue.  Dumfries and Galloway sits in a coastal position and benefits from having a microclimate on the gulf-stream.  Under the joint venture arrangements, the properties at Barnsoul Park and Barncrosh Farm are owned by Apple Invest Limited but subject to a development arrangement whereby the Company develops and operates the businesses at both sites and profits are shared between the parties in an agreed split.

This combination of property, trading business and assets provides the Company with access to almost 300 acres of UK leisure real estate under its control, with an established operational business already trading profitably at one of the locations.  

Update on progress since the year end

The Directors are pleased to report that since the year end the business has made significant progress in developing the site at Barnsoul. The first part of Phase One is nearly complete with the site expected to open to its first customers from August 2022, with Landal GreenParks already active on site having assembled its operations team and have been taking bookings via its online platform. The first phase of the development includes 30 state of the art sited lodges supported by reception facilities and an on-site shop. Additionally substantial landscaping has been completed to compliment this first phase development and extensive works have been undertaken on its groundworks, roads and infrastructure.

This will be a significant milestone for the Company as the opening will generate a significant increase in revenue income. Equally important is that Landal have advised that their AWR bookings for the resort is 11% higher than their UK average which is extremely encouraging as the Company looks to secure its next round of fund raising. This is again expected to be via debt finance although the Directors long term plans are strategizing on the potential to raise future finds via an IPO.

The Directors are also pleased to confirm that the significant investment in the sites since the year end have seen recent valuations indicated to be in well in excess of £10 million.

Funding

The Company launched a 5 year bond on the Aquis Stock Exchange Growth Market giving a 6.25% coupon per annum to raise a total amount of £25million. The bond issue is a new product in this market and this investment sector is lucrative, generating a high yield return to the investor. The capital raised by the listing of the bond is primarily targeted to be invested in the land owned both through acquisition and Joint Venture arrangements.

This is set to be the first UK purpose built Landal GreenParks resort and the first in the UK to be managed by the holiday giant. The funds will be deployed to build out phase one and the opening of the resort to the public of the first Landal Barnsoul resort. The first part of phase one comprises of 30 lodges plus reception with the second part of phase one to then include more facilities and lodges in line with Landal GreenParks' requirements. Landal GreenParks will be responsible for all bookings, occupancy and management of the resort and revenues are shared between both parties in line with the 25 year marketing and management services agreement which is legally in force.

Board

There were no changes to the board during the financial year.

Results for the year

The Company has incurred a loss for the year of £1,511,562 (2020 - £499,109) representing the costs of establishing the business. All of these costs have been necessarily incurred and are in line with the original business plan.

Principal risks and uncertainties

The Directors consider the key risks to the business through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with regulations, legal and ethical standards is a high priority for the Group and the finance department takes on an important oversight role in this regard, to ensure that a proper internal control framework exists to manage financial risks and that the controls operate effectively.

The key risk to the business at year end is the ongoing economic uncertainty that COVID19 continues to cause further potential business interruption. With the change in strategy implemented by the Board of Directors however progress is being made with regards to widening its project development opportunities and its efforts in stimulating new channels of fundraising are proving most productive.

The Company also manages the risks by providing added value to its investors through securing land with asset value & scope for leisure development with then enhancing its asset value, and maintaining strong strategic professional & commercial relationships and given the increased popularity of domestic tourism gives the Company even greater strength and opportunity for the next 12 months.

Key Performance Indicators

The main financial metrics used by the Directors in assessing business performance remains successful new issuances of bond subscriptions, now that the Company is coming out of the UKs national lockdown. It is now making excellent traction and generating interest from funds both domestically and internationally; these KPI's are regularly circulated to the key management team & Directors to ensure full visibility by those helping drive the business forward.

Future Developments

The business is focused on progressing its fundraising strategy and pushing forward on its UK leisure development project opportunity. Management remains wary of the economic climate and have reflected this within its forecasts. The results for the year to date show the business to be in line with its projections given the timing of its corporate bond listing & the impact that the pandemic has had on industry and the economy. The Directors are cautiously optimistic that their forecasts for the forthcoming 12 months can be achieved.

Since the year ended to 30 June 2021, the Company have progressed in accordance with the above, attracting further inward investment into the bonds. Momentum is gathering and much more subscriptions are due and will be reflected in the Company's listing.

Chairmans Statement 

When I sat down to prepare this statement, it gave me the opportunity to reflect on what an incredibly challenging two years it has been for the Company and the wider leisure& hospitality industry has faced.  Given the previous years' challenges since the outbreak of the pandemic, where no one in our lifetime had experienced anything like that before, we thankfully are now moving towards the coronavirus being endemic & society having to cope much better with it, we welcome a return to normality.  With this, the level of commitment our Company have made to developing out the first UK managed & purpose built Landal GreenParks' resort, has been exemplary and we look forward to welcoming it's first holidaymakers to stay on park in the next few weeks.

Bearing in mind that the UK leisure & hospitality sectors were either closed or operating under severe restrictions for over 75% of the year, this gave the Company opportunity to re-plan and strategise growth change through this upon the ease of the restrictions.  The year end enabled us for the first time to welcome in successful bond subscriptions & introduce a new series.  During the year the Company acquired land, obtained a long term material contract with Europe's leading vacation rentals organisation, assemble a key development & professional team, and identify new sites for expansion.

As we moved towards 2022 we made further significant progress, with the execution of a JV agreement to aid expansion, the design & launch of our two new lodge cabin accommodations and the commencement of development works at Barnsoul Park in Dumfries & Galloway, Scotland.  Entering into 2022 seen excellent development with the on site works, production, delivery and installation of the lodges which form part of the first phase & the launch of bookings being taken for the new Landal Barnsoul resort on Landal GreenParks' website.  The construction team have so far installed all the road systems & bases for 40 lodges and they have successfully cited 23 lodges with a further 7 lodges to be delivered inside the next 4 weeks whilst the remaining landscaping & IT infrastructure takes place ahead of a handover to Landal in August.  Landal have too been busy having recruited a dedicated operational team at Barnsoul and both parties are working closely in order to complete this first phase & to welcome in holiday makers in the coming weeks.

Given it is the Platinium Jubilee year makes we as a Company even more proud to be opening the doors of the first phase of Landal Barnsoul in Her Majesty The Queen's favoured part of the world & whilst the nation will have been enjoying the summer's celebrations, our thoughts must go out to the tragic events of the war in Ukraine & its people, the war being a catalyst not just for a humanitarian crisis, but also has the potential to disrupt the commodity markets around the world and we as a UK economy are already seeing inflation spiral out of control.  We as a Company have experienced this first hand with the increased cost of utilities, materials, and other associated development costs & delayed lead times so we have had to work hard to design engineer where possible without compromising the quality, finish or design of this next level of staycation holiday lodge parks we are bringing to UK domestic tourism.  

Finally, the board are delighted to confirm the appointment of a new Finance Director, Richard Walker, to the Company.  A thorough vetting process took place and we welcome Richard to the board in the coming days.  Furthermore, the Company are in the process of selecting two further Non-Executives to join the Company in the coming weeks to strengthen the team as it continues to grow.

Despite the uncertain period for different reasons we as a nation find ourselves in, Belvedere will continue to develop and deliver a first class UK holiday park model in line with Landal's key requirements & it is proud to be opening the first of many sites in Dumfries & Galloway and beyond, starting with Landal Barnsoul.

On behalf of the board I would like to thank the bond holders for their continued support.

Mr A McNamara

Director

Date 27 July 2022

The Directors of Belvedere Leisure Resorts plc accept responsibility for this announcement.

For further information, please contact:

Belvedere Leisure Resorts plc

Paul Brazewell, Executive Director

Tel: +44 (0) 203 773 1361

Email: invest@belvedereleisureresortsplc.com

Alfred Henry Corporate Finance Limited

AQSE Corporate Advisor

www.alfredhenry.com
Tel: +44 (0) 203 772 0021

Profit and loss account
for the year ended 30 June 2021

Balance sheet
as at 30 June 2021

Statement of cashflows
for the year ended 30 June 2021

Notes to Preliminary Results for the year ended 30 June 2021

1.   The financial information set out above does not constitute statutory accounts for the purpose of Section 434 of the Companies Act 2006.  The financial information has been extracted from the statutory accounts of Belvedere Leisure Resorts plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors gave an unqualified report on 27 July 2022.

      The preliminary announcement of the results for the year ended 30 June 2021 was approved by the board of directors on 27 July 2022.