Travel Reference
In-Depth Information
surroundin
g
1,000 acre park from the Marquess of Bath. The rent paid under this lease goes into the other
side of the business, the Longleat Estate. The trading assets are owned by Longleat Enterprises Limited,
which fi nances all r
e
placements and improvements, including purchases of animals, plant, equipment,
vehicles and investme
n
t in any new attractions. Any profi ts made are ploughed back into Longleat, either
into the upkeep of the
house and park or into maintaining and improving facilities for visitors. Longleat
Enterprises Limited also owns Cheddar Caves in Somerset and they are audited together as one company
for annual accounting purp
o
ses.
Financial operations at Longleat
Longleat Enterprises Limited's business an
d
accounting year is the same as the calendar year - January to
December. This ties in with the nature of th
e
business - the leisure operations generally open in March and
trade through to November of each year. Longleat Enterprises Limited receives its main income from visitors
during the summer months and very little during the w
i
nter. Management of the cash fl ow position and planning
of the budgets is carried out taking account of the fact that from November until the beginning of the next
season there is very little revenue for the period. The tot
al
annual turnover for the Longleat Enterprises Limited
operating at Longleat is approximately £5 million, whic
h
has to meet the cost of wages, rates, insurance,
repairs, heat, light, etc. and provide funds for major resto
r
a
t
ion work and improvements. The company pays
corporation tax on any profi ts made and VAT to HM Revenu
e
and Customs throughout the year.
Budgets for the coming year are prepared in September/October and submitted to the directors in December.
Subject to their approval, fi nal budgets for the next trading year a
r
e then completed and distributed to the
Department Managers. Monthly budget reports for each departme
n
t and all constituent profi t centres within
it are produced for each Department Manager. These monthly manag
e
ment accounts are vital to assess how
the business is performing throughout the season and in comparing th
e
results achieved against the budget
and the previous season's performance.
Case Study Questions and Activities
1.
What different types of taxes does Longleat have to pay to HM Revenue
a
n
d Customs?
2.
List some of the main costs that Longleat has to meet in operating its visitor operations.
3.
Log on to the Longleat website and make a list of all the potential sources
o
f
revenue from its
visitors.
4.
What are the advantages for Longleat of operating as a private limited company?
5.
What are the main aims for Longleat when supplying its products and services?
6.
To which organisations and individuals
Weblink
Check out this website to help a
n
swer
these questions and for more information
on Longleat and its attractions.
www.longleat.co.uk
is Longleat liable and accountable?
This case study is designed to provide
evidence for P2.
