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REGISTERED NUMBER: 00579665 (England and Wales)















FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

SELSEY COUNTRY CLUB LIMITED

SELSEY COUNTRY CLUB LIMITED (REGISTERED NUMBER: 00579665)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


SELSEY COUNTRY CLUB LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2021







DIRECTORS: S P Coyle
G Clark
P Rowe
R Tarrant
M Brown
R R Sheard



SECRETARY: Ms L S Colquhoun



REGISTERED OFFICE: Golf Links Lane
Selsey
West Sussex
PO20 9DR



REGISTERED NUMBER: 00579665 (England and Wales)



AUDITORS: Lewis Brownlee (Chichester) Limited
Chartered Accountants
Statutory Auditors
Appledram Barns
Birdham Road
Chichester
West Sussex
PO20 7EQ



BANKERS: Lloyds Bank plc
3rd Floor Citymark
150 Fountainbridge
Edinburgh
EH3 9PE

SELSEY COUNTRY CLUB LIMITED (REGISTERED NUMBER: 00579665)

BALANCE SHEET
31 DECEMBER 2021

2021 2020
Notes £ £ £ £
FIXED ASSETS
Tangible assets 5 466,330 441,080

CURRENT ASSETS
Stocks 6 14,411 15,745
Debtors 7 184,816 40,835
Cash at bank and in hand 50,040 19,381
249,267 75,961
CREDITORS
Amounts falling due within one year 8 578,271 413,157
NET CURRENT LIABILITIES (329,004 ) (337,196 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

137,326

103,884

CREDITORS
Amounts falling due after more than one
year

9

35,000

50,000
NET ASSETS 102,326 53,884

RESERVES
Retained earnings 12 102,326 53,884
102,326 53,884

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 June 2022 and were signed on its behalf by:





R Tarrant - Director


SELSEY COUNTRY CLUB LIMITED (REGISTERED NUMBER: 00579665)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021


1. STATUTORY INFORMATION

Selsey Country Club Limited is a private company, limited by guarantee, registered in England and Wales. The company's registered number and registered office address can be found on the company information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The financial statements have been prepared on a going concern basis. This has to be judged in the light of the substantial net current liabilities shown on the balance sheet. The company has experienced significant challenges during the global pandemic with some of the company's income streams reduced to minimal levels for a number of months during 2020 and 2021 with this on the back of a loss in 2019.

The directors and management have sought government funding in all available forms including a government backed Bounce Back Loan received in 2020. Total government COVID-19 related grant funding for the year amounted to £89,214 (2020 - £101,852). However, this very welcome support was not sufficient to maintain funding at an adequate level. Operating income in the form of bar sales, restaurant and shop sales, functions, green fees and golf membership fees were down against 2019 levels by £324,000 in 2020 and £127,000 in 2021.

During 2020 and 2021 the directors and management team, through the preparation of detailed management accounts and cashflow forecasts, highlighted in September 2021, additional funding was required from the membership. This was a very difficult, but necessary, decision by the directors to issue the obviously unwelcome additional COVID-19 site fee invoice to the membership.

The directors are pleased to report a profit for 2021 of £48,442. However, it should be noted that this includes a one-off receipt of £20,808 in relation to the settled legal case with prior management as well as £72,532 in relation to the additional COVID-19 site fee. Without these sums the company would have been very close to a total net liability position as at 31 December 2021.

The directors and management wish to thank its membership for its support, in many areas, but particularly in relation to settling the additional COVID-19 site fees.

Detailed cashflow forecasts have been prepared to 31 December 2023 to demonstrate the company can continue to trade for the foreseeable future and the directors are pleased to note income is returning to normal levels during 2022. A small profit was reported for the month of April 2022 with facilities opening up for the season. A loss of some £20,000 has been reported for the 4 months to 30 April 2022 but this is not unusual during the quiet, post-Christmas, first quarter of the year.

The directors are hopeful for a fully operational Spring and Summer period but this will be a long road to rebuilding the reserves of the company to a position to allow the company to provide the facilities to its membership and to ease cashflow restrains to ensure debts are settled as they fall due.

The directors have access to two forms of finance to provide adequate resources to maintain activities and enable the company to continue for the foreseeable future. Further bank financing could be sought on the basis of a charge on the substantial value of the freehold of the chalet site and golf club but the directors are not currently exploring that option. The directors have set site fees for 2022 at a level which will enable the company to operate through 2022; the owners of the 298 chalets, who are also the sole owners of the company, have an obligation under their leases to pay the site fees set by the directors.

It is noted that the freehold land is worth substantially more than as stated in the financial statements as the directors have not considered it worthwhile to have it revalued.

Accordingly the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

SELSEY COUNTRY CLUB LIMITED (REGISTERED NUMBER: 00579665)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Site fees
Site fees represents income from the chalets each year. Income is recorded in the period to which it relates, net of VAT.

Bar sales
Bar sales represents income from the two bars on site. Income is recorded when the sale takes place, net of VAT.

Membership income
Membership income represents income from the golf members each year. Income is recorded in the period to which it relates, net of VAT.

Utility charges and insurance reimbursed
Utility charges reimbursed represents electricity, water charges and insurance that have been reimbursed on to the chalet owners. Utility income is calculated based on the number of units utilised per the chalet meter reading. Income is recorded at the end of the season (October) after the meter readings have been taken.

Functions
Functions represents bookings of the bar for parties, events and weddings. Refundable deposits are taken for functions which are not included in turnover until the function takes place. Non refundable tickets for events are included in turnover at the time of purchasing the ticket. Food/drink sales are recorded in turnover as the items are sold.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - 2% - 5% on buildings and nil on land
Improvements to property - 5% on cost
Motor vehicles, machinery and equipment - 25% on cost
Fixtures and fittings - 20% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
Financial instruments are classified by the director as basis or or advanced following the conditions in FRS 102 section 1A. Basic financial instruments are recognised at amortised cost using effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. The company has no advanced financial instruments.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.


SELSEY COUNTRY CLUB LIMITED (REGISTERED NUMBER: 00579665)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


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

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

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

Leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Grant income
Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 30 (2020 - 25 ) .

4. AUDITORS' REMUNERATION
2021 2020
£ £
Fees payable to the company's auditors for the audit of the company's
financial statements

8,950

7,750

SELSEY COUNTRY CLUB LIMITED (REGISTERED NUMBER: 00579665)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


5. TANGIBLE FIXED ASSETS
Motor
vehicles,
machinery Fixtures
Freehold Improvements and and
property to property equipment fittings Totals
£ £ £ £ £
COST
At 1 January 2021 505,048 196,869 74,838 68,587 845,342
Additions - 30,300 17,400 18,004 65,704
Disposals - - (1,146 ) - (1,146 )
At 31 December 2021 505,048 227,169 91,092 86,591 909,900
DEPRECIATION
At 1 January 2021 172,965 110,926 63,291 57,080 404,262
Charge for year 11,992 8,170 10,082 10,210 40,454
Eliminated on disposal - - (1,146 ) - (1,146 )
At 31 December 2021 184,957 119,096 72,227 67,290 443,570
NET BOOK VALUE
At 31 December 2021 320,091 108,073 18,865 19,301 466,330
At 31 December 2020 332,083 85,943 11,547 11,507 441,080

6. STOCKS
2021 2020
£ £
Stocks 14,411 15,745

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£ £
Trade debtors 62,749 18,665
Other debtors 6,387 3,329
Prepayments and accrued income 115,680 18,841
184,816 40,835

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£ £
Bank loans and overdrafts (see note 10) 10,000 3,314
Trade creditors 224,772 60,319
Social security and other taxes 40,025 27,478
VAT 103,346 170,390
Other creditors 40,733 31,927
Accruals and deferred income 159,395 119,729
578,271 413,157

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021 2020
£ £
Bank loans (see note 10) 35,000 50,000

SELSEY COUNTRY CLUB LIMITED (REGISTERED NUMBER: 00579665)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


10. LOANS

An analysis of the maturity of loans is given below:

2021 2020
£ £
Amounts falling due within one year or on demand:
Bank loans 10,000 3,314

Amounts falling due between two and five years:
Bank loans - 2-5 years 35,000 50,000

The bank loan was received under the Bounce Back Loan Scheme (BBLS). The loan has a fixed interest rate of 2.5%. The loan is repayable in 60 monthly repayments. A guarantee has been provided by the UK Government.

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2021 2020
£ £
Within one year 46,104 45,646
Between one and five years 33,270 48,659
79,374 94,305

12. RESERVES
Retained
earnings
£

At 1 January 2021 53,884
Profit for the year 48,442
At 31 December 2021 102,326

13. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Sam Ede BFP FCA FCCA (Senior Statutory Auditor)
for and on behalf of Lewis Brownlee (Chichester) Limited

14. CONTINGENT LIABILITIES

The directors have adjusted for VAT errors identified during prior periods and believe the position as now stated in the financial statements to be correct. The discussions relating to the VAT errors with HMRC though have not yet concluded, leaving the possibility open of a dispute regarding the level of liabilities with HMRC.