REGISTERED NUMBER: |
PARKSTOCK LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
REGISTERED NUMBER: |
PARKSTOCK LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 4 |
Report of the Directors | 5 | to | 6 |
Report of the Independent Auditors | 7 | to | 9 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 | to | 21 |
PARKSTOCK LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory auditors |
255 Green Lanes |
Palmers Green |
London |
N13 4XE |
BANKERS: |
Finsbury Park |
312 Seven Sisters Road |
London |
N4 2AW |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
STRATEGIC REPORT |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
The directors present their strategic report for the period 27 April 2020 to 25 April 2021. |
REVIEW OF BUSINESS |
Company result: |
The Company's trading income decreased from £4.658 million to £384,347, and this decrease was spread over the various activities of the bowling centre, which includes entrance fees, lanes and sale of beverages. The figures were showing an increase over the previous year until they were forced to close due to the Coronavirus pandemic. The trading loss before tax was £487,438, compared to a profit of £1.824 million for the previous year. |
The Company had net assets of £5.119 million, compared to £5.517 million in the previous year. Since re-opening following the pandemic the company has traded at a profit and has generated sufficient cash to enable dividends totalling £1,750,000 to be paid |
The Company has no borrowings other than current accounts with directors and sufficient cash reserves. |
Future outlook: |
Since the company reopened in May 2021 the company is trading profitably. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Coronavirus |
The Coronavirus pandemic forced the company to close the company's operating centre from 20 March 2020 and was only able to reopen on a restricted basis in August 2020, but closed again in December 2020 until 17 May 2021. |
During the time that the centre was closed the majority of its employees were furloughed but a core team was kept on to deal with management issues and also for preserving and safeguarding the company's property. |
The company has no borrowings. |
The company was fortunate in having adequate cash resources on the closure of the business and continued to receive rental income from its investment property. |
New bowling equipment was acquired during the year and was funded out of current cash resources |
Other risks and uncertainties |
The business faces a number of risks on an on-going basis. The environment in which the Company operates is constantly evolving; new risks may arise and the potential likelihood and impact of known risks may change. These risks, therefore, represent a snapshot of what the Board believes are the principal risks and not an exhaustive list of all the risks the company faces. |
The Board has considered the risk posed by Brexit and has noted that there is the possibility of risk associated with potential labour cost increases and retention of labour. The Board believes that as a low-frequency and low-ticket activity, bowling is less exposed to a change in consumer sentiment than many other discretionary spend items. Therefore, at the moment, the Board does not consider Brexit to be a principal risk to the business model. |
The Board regularly monitors changes to the regulatory environment in which the Company operates. This includes monitoring and evaluating potential impacts for changes to regulation of competition, gambling, licensing, Health and Safety and general data protection regulation (GDPR). The Company has robust processes, controls and oversight of the management of regulatory risks in place, including continuous training of colleagues and use of independent expert advisors where appropriate. The Board does not currently consider any individual area of regulation change to constitute a material risk to the business, but regularly reviews and evaluates the impact any changes in legislation may have. |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
STRATEGIC REPORT |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
Risks and Uncertainties | Risk Management approach |
Operational |
- Deterioration of assets over time | The Company operates a site that has high footfall and high usage, in |
- Loss of key personnel | particular at peak times. There is a risk that without the right level of |
- Security of Clients | on-going investment the quality of the customer experience declines, impacting the customer experience and likelihood of return visits. |
The Company generates cash from its operating activities and ensures | enough cash is prioritised for an on-going maintenance and refurbishment programme. |
The safety of staff and Clients is a high priority and a major item of | expense is ensuring their safety at all times. |
Economic Climate |
- Change in economic conditions | The Company's business is based exclusively in the UK and so is exposed to UK economic conditions and consumer confidence. |
- Changes in consumer disposable income | As a leisure activity, bowling may be affected by the general level of consumer spending on leisure and the potential longer term impact that Covid 19 or the war in Ukraine may have on the economy, consumer disposable income and customer confidence to meet in social settings. |
The Board believes as a relatively low-frequency and low-ticket | activity, bowling should withstand an economic downturn. |
The Company continually reviews its product offer, its value proposition and the quality of its estate to improve the customer experience. |
Major Supplier Failure |
- Sudden failure of key suppliers | The Company has a number of key suppliers that provide its bowling equipment and its beverage products. Sudden failure of these suppliers could impact the Company's ability to offer its customers the level of experience they expect. |
The Company works closely with its suppliers to discuss both | operational issue and future growth plans. The Company works closely with its food and beverage suppliers, and whilst failure may lead to short-term disruption, alternative suppliers could be introduced at short notice. |
Energy costs |
-Increase in energy price costs | The company has always taken advantage of long term energy contracts and the current contracts expire in September 2022. Although there are large increases, competitive new long term fixed rates have been negotiated. Changes are constantly being made to use greater energy efficient equipment |
Business Interruption | A major incident could impact the Company's ability to keep trading. |
Covid 19 | At the time of preparing the report we had reopened the centre. |
A pandemic that has a national impact could have an effect on the business if the site was put into quarantine, had to be closed as part of a government instruction or the site was specifically associated with the spread of a pandemic. |
We are monitoring the impact of the Covid 19 pandemic in the UK on a daily basis. We are following our risk management framework and ensuring that an active risk assessment and business continuity plan is in place. The company will follow Public Health England guidance and medical and local authority advice where relevant to ensure that we respond to any developments quickly, safely and in the best interests of our people. |
Regulatory Changes |
New, changed or reinterpreted laws and regulations adversely impact the business or we fail to obtain required regulatory approvals or licences. |
There has been the introduction and development of regulations around GDPR, constant updates to legislation around competition, bribery, carbon reporting and sustainability, modern slavery, consumer protection and taxation. All of these could result in reputational loss along with litigation, revocation of licences and fines leading to financial loss. |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
STRATEGIC REPORT |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
Where required, we obtain external specialist advice to assess, scope | and plan our responses to changes in legislation or in changes or developments to our business that are touched by legislation. |
Risk of Cyber Attack | A major incident could impact the Company's ability to keep trading, monitoring and threat protection. More bookings are being taken online increasing risk and there has been an increase in the level of high-profile cyber attacks in recent years which increases the risk that business information could be accessed. Cyber security is of great importance to the Company given the level of customer data it holds. The company regularly reviews the level of monitoring and threat protection systems that are in place. |
ON BEHALF OF THE BOARD: |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
The directors present their report with the financial statements of the company for the period 27 April 2020 to 25 April 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of the operation of a ten-pin bowling centre in Greater London. |
DIVIDENDS |
No dividends will be distributed for the period ended 25 April 2021. |
EVENTS SINCE THE END OF THE PERIOD |
Information relating to events since the end of the period is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 27 April 2020 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling. The company does not enter into any formally designated hedging arrangements. |
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; |
- | 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
AUDITORS |
The auditors, John Crook & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARKSTOCK LIMITED |
Opinion |
We have audited the financial statements of Parkstock Limited (the 'company') for the period ended 25 April 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 25 April 2021 and of its loss for the period 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARKSTOCK LIMITED |
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 page five, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARKSTOCK LIMITED |
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: |
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: |
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements through discussions with the Officers (as required by auditing standards). |
We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and tax legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items. |
With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the officers. |
We communicated identified laws and regulations throughout our team and remained alert to any indications of |
non-compliance throughout the audit. |
We addressed the risk of fraud through management override of controls, by 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. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
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. |
for and on behalf of |
Statutory auditors |
255 Green Lanes |
Palmers Green |
London |
N13 4XE |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
Period | Period |
27/4/20 to 25/4/21 | 29/4/19 to 26/4/20 |
Notes | £ | £ | £ | £ |
TURNOVER |
Other operating income |
1,218,820 | 4,925,377 |
Raw materials and consumables |
1,150,587 | 4,165,983 |
Staff costs | 4 |
Depreciation |
Other operating expenses |
1,639,888 | 2,350,160 |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Interest receivable and similar income |
(487,438 | ) | 1,824,283 |
Interest payable and similar expenses | 7 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 8 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL PERIOD |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
( |
) |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
BALANCE SHEET |
25 APRIL 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investment property | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Fair value reserve | 17 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 29 April 2019 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 26 April 2020 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 25 April 2021 |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
CASH FLOW STATEMENT |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
Period | Period |
27/4/20 | 29/4/19 |
to | to |
25/4/21 | 26/4/20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount withdrawn by directors | (27,500 | ) | (169,794 | ) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of period |
2 |
2,267,455 |
Cash and cash equivalents at end of period |
2 |
615,282 |
1,224,160 |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period | Period |
27/4/20 | 29/4/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | - | 2,399 |
Finance income | (1,863 | ) | (8,460 | ) |
(313,452 | ) | 1,957,100 |
Decrease in stocks |
Decrease/(increase) in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
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: |
Period ended 25 April 2021 |
25/4/21 | 27/4/20 |
£ | £ |
Cash and cash equivalents | 615,282 | 1,224,160 |
Period ended 26 April 2020 |
26/4/20 | 29/4/19 |
£ | £ |
Cash and cash equivalents | 1,224,160 | 2,267,455 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 27/4/20 | Cash flow | At 25/4/21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,224,160 | (608,878 | ) | 615,282 |
1,224,160 | ( |
) | 615,282 |
Total | 1,224,160 | (608,878 | ) | 615,282 |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
1. | STATUTORY INFORMATION |
Parkstock Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on the going concern basis and under the historical cost convention as modified by the revaluation of certain assets measured at fair value in accordance with the accounting policies set out below. The accounting reference date of the company is 25 April however the accounts are made up to the closest Sunday to 30 April each year. |
The financial statements are prepared in sterling which is the functional currency of the company. |
As set out in the strategic report, the directors believe that the company were experiencing good levels of sales growth and profitability until it was forced to shut as a result of the Coronavirus pandemic, and that it is well placed to manage its business risks successfully. Accordingly, they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. |
Turnover |
Turnover represents the amount derived from the provision of goods and services falling within the company's activities after deduction of value added tax and machine games duty. |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
The company does not depreciate freehold land. |
Government grants |
Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. |
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit and loss. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the period 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 period 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. |
Defined contribution pension scheme |
Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies, which are described in note 2, management is required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The critical judgments made by management that have a significant effect on the amounts recognised in the financial statements are described below. |
Sources of estimation uncertainty |
Valuation of land and buildings |
As described in note 11 to the financial statements, land and buildings are stated at fair value based on the valuation performed by the directors based upon their knowledge of the local market. The directors used observable market prices adjusted as necessary for any difference in the future, location or condition of the specific asset. |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
4. | EMPLOYEES AND DIRECTORS |
Period | Period |
27/4/20 | 29/4/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period | Period |
27/4/20 | 29/4/19 |
to | to |
25/4/21 | 26/4/20 |
Office and management | 18 | 19 |
Other | 49 | 59 |
Period | Period |
27/4/20 | 29/4/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Directors' remuneration |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2020 - operating profit) is stated after charging: |
Period | Period |
27/4/20 | 29/4/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
6. | AUDITORS' REMUNERATION |
Period | Period |
27/4/20 | 29/4/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
10,000 |
8,500 |
Total audit fees | 10,000 | 8,500 |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period | Period |
27/4/20 | 29/4/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Interest on overdue tax |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the period was as follows: |
Period | Period |
27/4/20 | 29/4/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax |
Tax on (loss)/profit | ( |
) |
UK corporation tax has been charged at 19% (2020 - 19%). |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period | Period |
27/4/20 | 29/4/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Depreciation on assets not qualifying for capital allowances | 3,452 | 3,619 |
Total tax (credit)/charge | (89,161 | ) | 349,777 |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
9. | DIVIDENDS |
Period | Period |
27/4/20 | 29/4/19 |
to | to |
25/4/21 | 26/4/20 |
£ | £ |
Ordinary Class A shares of £1 each |
Interim |
Ordinary Class B shares of £1 each |
Interim |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and |
property | fittings | Totals |
£ | £ | £ |
COST |
At 27 April 2020 |
Additions |
Disposals | ( |
) | ( |
) |
At 25 April 2021 |
DEPRECIATION |
At 27 April 2020 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) |
At 25 April 2021 |
NET BOOK VALUE |
At 25 April 2021 |
At 26 April 2020 |
Included in cost of land and buildings is freehold land of £ 214,000 (2020 - £ 214,000 ) which is not depreciated. |
11. | INVESTMENT PROPERTY |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit and loss. |
Cost or valuation at 25 April 2021 is represented by: |
£ |
Valuation in 2007 | 405,729 |
Valuation in 2008 | 495,000 |
Valuation in 2014 | 500,000 |
Valuation in 2017 | 500,000 |
Cost | 599,271 |
2,500,000 |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
11. | INVESTMENT PROPERTY - continued |
If the investment property had not been revalued it would have been included at the following historical cost: |
2021 | 2020 |
£ | £ |
Cost | 599,271 | 599,271 |
Investment property was valued on an open market basis on 25 April 2021 by the directors . |
12. | STOCKS |
2021 | 2020 |
£ | £ |
Food and drink |
Bowling consumables |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Tax |
Prepayments |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade creditors |
Social security and other taxes |
Value added tax | 15,638 | 71,395 |
Directors' current accounts | 141,699 | 169,198 |
Sundry creditors and accruals |
15. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred tax |
Capital allowances in excess of depreciation | 155,449 | 136,280 |
Capital gains tax on revaluation | 275,422 | 275,422 |
430,871 | 411,702 |
Deferred |
tax |
£ |
Balance at 27 April 2020 |
Accelerated capital allowances | 19,169 |
Balance at 25 April 2021 |
PARKSTOCK LIMITED (REGISTERED NUMBER: 00327001) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 27 APRIL 2020 TO 25 APRIL 2021 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary Class A | £1 | 12 | 12 |
Ordinary Class B | £1 | 12 | 12 |
24 | 24 |
17. | RESERVES |
Fair |
Retained | value |
earnings | reserve | Totals |
£ | £ | £ |
At 27 April 2020 | 5,517,623 |
Deficit for the period | ( |
) | - | ( |
) |
At 25 April 2021 | 5,119,346 |
The fair value reserve comprises the cumulative effect of revaluations of investment properties which are revalued to fair value at each reporting date less an estimate of the taxation liabilities should the properties be sold at the fair value. |
18. | CAPITAL COMMITMENTS |
2021 | 2020 |
£ | £ |
Contracted but not provided for in the |
financial statements |
19. | RELATED PARTY DISCLOSURES |
The directors have current accounts with the company and at the year end the company owed £141,699 (2020 - £169,198). |
The company collects rents on behalf of the directors, pays expenses in relation to the properties and pays the balance to the directors. |
20. | POST BALANCE SHEET EVENTS |
From July 2021 the Government relaxed all the COVID restrictions and allowed the businesses to operate normally. The directors feel strongly now that this step will bring profitability to the business operations. |