REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
FOR |
SELSEY COUNTRY CLUB LIMITED |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
Appledram Barns |
Birdham Road |
Chichester |
West Sussex |
PO20 7EQ |
BANKERS: |
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 |
CURRENT ASSETS |
Stocks | 6 |
Debtors | 7 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
9 |
NET ASSETS |
RESERVES |
Retained earnings | 12 |
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 |
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 |
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 |
Freehold property | - |
Improvements to property | - |
Motor vehicles, machinery and equipment | - |
Fixtures and fittings | - |
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 |
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 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
6. | STOCKS |
2021 | 2020 |
£ | £ |
Stocks |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 10) |
Trade creditors |
Social security and other taxes |
VAT | 103,346 | 170,390 |
Other creditors |
Accruals and deferred income |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans (see note 10) |
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 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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 |
Between one and five years |
12. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2021 |
Profit for the year |
At 31 December 2021 |
13. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
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. |