Company registration number 03534966 (England and Wales)
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
COMPANY INFORMATION
Directors
Mr E P Blacker
Mr L J Blacker
Company number
03534966
Registered office
Slinfold Golf & Country Club
Stane Street
Slinfold
Horsham
West Sussex
RH13 0RE
Auditor
Carpenter Box
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report and financial statements for the year ended 31 December 2022.

 

Principal activities

The principal activity of the company continued to be that of operating a health and fitness, golf and leisure facility. The strategy of the business is to achieve continued membership growth through:

 

· reinvestment into and improvement of facilities and infrastructure

· ensuring that capacity in key areas keeps pace with demand

· promoting the highest standards of customer service

· innovation and the use of technology

· competitive and flexible pricing

· maintaining cost control

Fair review of the business

As reported last year, between April and December 2021, following the end of COVID-19 restrictions, membership numbers grew by 31%, which provided a solid platform for income growth during 2022.

 

Membership income during 2022 grew by 74% to £1,887,008, and total income grew by 57% to £2,851,645. Gross profit grew during 2022 by 96% to £1,624,459.

 

The profit before tax and revaluations, amounting to £441,342 (2021 - £203,409), has been applied principally towards improvements to the infrastructure of the club, and to a reduction in borrowings necessitated by the pandemic.

 

Membership numbers continued to grow during 2022, with an overall increase of 8%, with further increases in 2023, showing resilience in the face of cost of living increases. Despite those pressures the results for 2023 are very strong, and the company has continued to be able to invest as well as servicing increased costs of borrowing.

Principal risks and uncertainties

The directors have identified the following principal risks and uncertainties affecting the group:

 

Economic risk:

Increasing energy costs have been impacting on businesses both in the UK and globally. The company is currently reviewing its energy usage with a view to making as many improvements to efficiencies as are viable. The Government’s recent announcement of a support package for business is welcomed. Presently both our electricity and gas costs are fixed which will help to protect the business during this time.

The impact of increases in the cost of living upon disposable income is significant to our strategy for the period ahead. Passing on increased costs is not always avoidable, but we are making every effort to offer good value for money.

 

Interest rates remain high, and despite the first signs that they may have peaked, the company will continue to retain higher levels of cash and reserves during the period ahead. The company is currently exploring a fixed rate option on its loan finance, as well as looking at other funding alternatives to protect short to medium term cash flows.

 

Spending on leisure activities continues to be affected by consumer confidence, in what remains an unusual set of economic circumstances. The physical and mental health benefits of taking regular exercise, and the positive social impact on well-being enjoyed by our members, are key to our ongoing success. The resurgence in golf participation which arose during the pandemic continues, and helps to mitigate risks elsewhere. The directors will continue to take a conservative view on pricing in order to promote membership growth and protect revenue streams.

 

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

Actions of competitors:

The increasing public interest in fitness and leisure continues to open the market up to competition, and the company is constantly monitoring competition in the local area. The directors welcome this and believe that it is creating additional demand as has been demonstrated by national gym membership growth in recent years, which the group is well placed to service. The golf offering of the club and its rural, open outdoor setting also makes the specific environment and combination of health & fitness and golf difficult/costly to replicate by competitors, with the number of local golf courses having declined in recent years.

 

Key Performance Indicators

The directors use a range of financial key performance indicators in addition to those mentioned above, to monitor performance. A number of non-financial measures are continually appraised, the most important of these being changes in membership numbers, usage/capacity in key areas along with a number of other key financial indicators based on budgeted expectations. The introduction of improved technology and accounting processes have allowed the senior management a more transparent view of progress of the KPI’s on a weekly and even daily basis, and in turn allowed a more accurate and responsive approach to performance and forecasting.

 

On behalf of the board

Mr L J Blacker
Director
29 September 2023
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £240,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr E P Blacker
Mr L J Blacker
Financial instruments
Treasury operations and financial instruments

The company operates a treasury function which is responsible for managing the liquidity, interest and credit risks associated with the company’s activities. The company operates the following management policies designed to minimise its exposure to financial risk:

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the businesses.

Interest rate risk

The company operates a number of policies to ensure there is sufficient liquidity and cash. Regular cash flow forecasts are prepared to ensure the company is able to cover its interest payments and continually monitors the market rate of interest.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments

The directors believe that there are currently no major future developments requiring disclosure.

Auditor

The auditor, Carpenter Box, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
On behalf of the board
Mr L J Blacker
Director
29 September 2023
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -

The directors are responsible for preparing the annual report 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:

 

 

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.

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
- 6 -
Opinion

We have audited the financial statements of Ensign Leisure Limited t/a Slinfold Golf & Country Club (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
- 7 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor's report 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.

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.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: the valuation of land and buildings and compliance with the UK Companies Act.

 

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
- 8 -

In addition to the above, our procedures to respond to risks identified included the following:

 

 

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

Robin Evans BA FCA CTA (Senior Statutory Auditor)
For and on behalf of Carpenter Box
29 September 2023
Chartered Accountants
Statutory Auditor
Worthing
Carpenter Box is a trading name of Carpenter Box Limited
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
Notes
£
£
Revenue
4
2,851,645
1,814,441
Cost of sales
(1,227,186)
(986,045)
Gross profit
1,624,459
828,396
Administrative expenses
(1,024,839)
(870,330)
Other operating income
150,000
472,936
Operating profit
5
749,620
431,002
Finance costs
8
(308,278)
(227,593)
Exceptional impairment reversal
3
1,186,597
-
0
Profit before taxation
1,627,939
203,409
Tax on profit
9
(41,700)
206,600
Profit for the financial year
1,586,239
410,009
Other comprehensive income
Revaluation of property, plant and equipment
216,652
-
0
Total comprehensive income for the year
1,802,891
410,009

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
7,939,404
6,522,471
Current assets
Inventories
12
35,608
35,890
Trade and other receivables
13
2,013,507
2,016,706
Cash and cash equivalents
28,981
49,365
2,078,096
2,101,961
Current liabilities
14
(1,140,739)
(1,289,829)
Net current assets
937,357
812,132
Total assets less current liabilities
8,876,761
7,334,603
Non-current liabilities
15
(4,939,156)
(4,983,889)
Provisions for liabilities
Deferred tax liability
18
67,100
43,100
(67,100)
(43,100)
Net assets
3,870,505
2,307,614
Equity
Called up share capital
20
625,000
625,000
Revaluation reserve
216,652
-
0
Retained earnings
3,028,853
1,682,614
Total equity
3,870,505
2,307,614

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
Mr E P Blacker
Mr L J Blacker
Director
Director
Company registration number 03534966 (England and Wales)
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
Share capital
Revaluation reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2021
625,000
-
0
1,512,605
2,137,605
Year ended 31 December 2021:
Profit and total comprehensive income
-
-
410,009
410,009
Dividends
10
-
-
(240,000)
(240,000)
Balance at 31 December 2021
625,000
-
0
1,682,614
2,307,614
Year ended 31 December 2022:
Profit
-
-
1,586,239
1,586,239
Other comprehensive income:
Revaluation of property, plant and equipment
-
216,652
-
216,652
Total comprehensive income
-
216,652
1,586,239
1,802,891
Dividends
10
-
-
(240,000)
(240,000)
Balance at 31 December 2022
625,000
216,652
3,028,853
3,870,505
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
1
Accounting policies
Company information

Ensign Leisure Limited t/a Slinfold Golf & Country Club is a private company limited by shares incorporated in England and Wales. The registered office is Slinfold Golf & Country Club, Stane Street, Slinfold, Horsham, West Sussex, RH13 0RE.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared on the historical cost convention modified to include the revaluation of property, plant and equipment at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. The directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment.

Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.

1.3
Revenue

Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance, from the rendering of services or sale of goods. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales taxes or duty.

The following criteria must also be met before revenue is recognised:

 

Membership income is accounted for on a time basis. Such income and deposits received relating to future accounting periods is treated as a creditor and recorded as turnover in the period to which it relates.

 

Green fees, bar and restaurant income, health and fitness treatments and other income is recognised at the time the goods are sold or the service is delivered.

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% diminishing balance on the buildings element only
Course improvements
2% diminishing balance
Plant, fixtures & equipment
20% diminishing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

 

Property and course improvements are maintained to such a standard that any depreciation charge on the freehold buildings or course improvements would not be material to the financial statements.

 

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value. A full valuation is obtained from a qualified valuer with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

1.5
Impairment of non-current assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss if any.

1.6
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and loans from related parties.

 

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

 

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year.

Deferred tax

Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

1.12
Retirement benefits

The company operates a defined contribution pension scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Fair value of property, plant and equipment

The judgement relating to the fair value of property, plant and equipment is based on the directors' use of the professional valuation carried out on behalf of the group's lenders on 4 July 2023 at £8.0 million, taking into account any additions and depreciation to this date. The valuation was carried out in accordance with the 31 January 2022 edition of RICS Valuation – Global Standards (Incorporating the IVSC International Valuation Standards) by Colliers, an independent firm of Chartered Surveyors with a recognised and relevant professional qualification and with recent experience in the location and category of the property, plant and equipment being valued. The valuation was made on the basis of existing use as a fully-equipped operational entity having regard to trading potential in line with Section 27 of FRS 102.

 

Freehold land and buildings and course improvements are maintained to such a standard that their estimated residual value is not less than their cost, therefore no depreciation is charged on freehold land and buildings as not material.

3
Exceptional item
2022
2021
£
£
Reversal of previous impairment of property, plant and equipment
1,186,597
-

During the year ended 31 December 2020 a professional valuation of the company’s property, plant and equipment was undertaken and reflected fair value within the context of the ongoing COVID-19 pandemic. The valuation saw a significant impairment, with the revaluation reserve balance reduced to nil and an exceptional impairment loss charged to the profit and loss account. In the directors' opinion, the pandemic was the most significant factor in this impaired valuation. In the current year, as detailed in note 2, an updated valuation was obtained, this resulted in the reversal of the previous impairment and the creation of a new revaluation reserve amount, as detailed in the statement of changes in equity.

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
4
Revenue

An analysis of the company's revenue is as follows:

2022
2021
£
£
Revenue
Membership income
1,887,008
1,084,034
Green fees and other golf revenue
220,352
217,807
Food and beverage income
545,483
368,154
Pro shop income
18,540
13,954
Health and fitness
154,395
94,642
Other income
25,867
35,850
2,851,645
1,814,441
Other significant revenue
Grants received
-
382,936

The total revenue of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

5
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(382,936)
Fees payable to the company's auditor for the audit of the company's financial statements
5,498
5,498
Depreciation of owned property, plant and equipment
51,441
47,496
Depreciation of property, plant and equipment held under finance leases
26,786
27,895
Profit on disposal of property, plant and equipment
(430)
-
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
6
Employees

The average monthly number of persons employed by the company during the year was:

2022
2021
Number
Number
Administration
17
15
Pro shop
19
15
Greenkeeping
10
9
Health and fitness
18
17
Total
64
56

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
959,654
850,078
Social security costs
66,434
57,828
Pension costs
22,428
21,115
1,048,516
929,021
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
-
0
3,000
Company pension contributions to defined contribution schemes
-
43
-
0
3,043
8
Finance costs
2022
2021
£
£
Interest on bank overdrafts and loans
282,899
219,627
Interest on finance leases and hire purchase contracts
8,330
7,345
Other interest on financial liabilities
17,049
621
308,278
227,593
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
9
Taxation
2022
2021
£
£
Deferred tax
Origination and reversal of timing differences
81,500
(206,600)
Changes in tax rates
(39,800)
-
0
Total deferred tax
41,700
(206,600)

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
1,627,939
203,409
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
309,308
38,648
Tax effect of expenses that are not deductible in determining taxable profit
(223,281)
148
Tax effect of utilisation of tax losses not previously recognised
-
0
(24,276)
Permanent capital allowances in excess of depreciation
-
0
(2,183)
Super deduction 130% capital allowance
(4,846)
-
0
Deferred tax not previously recognised
-
0
(218,937)
Difference between current and deferred tax rate
(39,800)
-
0
Other timing differences
319
-
0
Taxation charge/(credit) for the year
41,700
(206,600)

The company has estimated trading and non-trading losses of £0.74m and £0.18m (2021 - £1.13mil and £0.18m) respectively available for carry forward against future income.

10
Dividends
2022
2021
£
£
Final paid
240,000
240,000
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
11
Property, plant and equipment
Freehold land and buildings
Course improvements
Plant, fixtures & equipment
Total
£
£
£
£
Cost or valuation
At 1 January 2022
5,717,857
783,735
1,304,560
7,806,152
Additions
-
0
5,771
86,805
92,576
Disposals
-
0
-
0
(1,095)
(1,095)
Revaluation
1,403,249
-
0
-
0
1,403,249
At 31 December 2022
7,121,106
789,506
1,390,270
9,300,882
Depreciation and impairment
At 1 January 2022
103,073
216,349
964,259
1,283,681
Depreciation charged in the year
-
0
-
0
78,227
78,227
Eliminated in respect of disposals
-
0
-
0
(430)
(430)
At 31 December 2022
103,073
216,349
1,042,056
1,361,478
Carrying amount
At 31 December 2022
7,018,033
573,157
348,214
7,939,404
At 31 December 2021
5,614,784
567,386
340,301
6,522,471

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2022
2021
£
£
Plant, fixtures & equipment
107,145
113,932

The following assets, freehold land and buildings and course improvements, are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2022
2021
£
£
Cost
7,031,539
7,025,768
Accumulated depreciation
(103,073)
(103,073)
Carrying value
6,928,466
6,922,695
12
Inventories
2022
2021
£
£
Goods held for resale
35,608
35,890
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
13
Trade and other receivables
2022
2021
Amounts falling due within one year:
£
£
Trade receivables
4,197
3,034
Amounts owed by group undertakings
1,394,286
1,498,476
Other receivables
69,605
1,316
Prepayments and accrued income
313,419
264,180
1,781,507
1,767,006
Deferred tax asset (note 18)
232,000
249,700
2,013,507
2,016,706
14
Current liabilities
2022
2021
Notes
£
£
Bank loans
16
92,037
126,218
Obligations under finance leases
17
51,057
75,074
Other borrowings
16
76,714
62,848
Trade payables
201,955
182,295
Taxation and social security
262,467
317,496
Other payables
378,522
458,201
Accruals and deferred income
77,987
67,697
1,140,739
1,289,829
15
Non-current liabilities
2022
2021
Notes
£
£
Borrowings
16
4,844,009
4,900,961
Obligations under finance leases
17
95,147
82,928
4,939,156
4,983,889
Amounts included above which fall due after five years are as follows:
Payable by instalments
4,024,634
4,183,508
ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
16
Borrowings
2022
2021
£
£
Bank loans
4,766,159
4,880,518
Other loans
246,601
209,509
5,012,760
5,090,027
Payable within one year
168,751
189,066
Payable after one year
4,844,009
4,900,961

During a previous period, the company obtained a loan under the UK Government-backed Coronavirus Business Interruption Loan Scheme ("CBILS"). The loan is subject to interest charges at a rate of 3.85% per annum above LIBOR, with the Government providing a Business Interruption payment to cover the first 12 months of interest payments. The Government has also provided a guarantee for £3,920,000 of the loan.

 

Bank loans have been secured by an unlimited debenture over the company's assets, together with an unlimited all monies guarantee from the parent company and the directors.

 

The other loan is repayable by equal instalments over repayment terms which expire by November 2024 and interest is payable at a rate of 5.9% per annum.

17
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
51,057
75,074
In two to five years
95,147
82,422
In over five years
-
0
506
146,204
158,002

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. No restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Finance leases are secured on the assets to which they relate.

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
18
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Balances:
£
£
£
£
Accelerated capital allowances
67,100
43,100
-
-
Tax losses
-
-
232,000
249,700
67,100
43,100
232,000
249,700
2022
Movements in the year:
£
Asset at 1 January 2022
(206,600)
Charge to profit or loss
41,700
Asset at 31 December 2022
(164,900)
19
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,428
21,115

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
625,000
625,000
625,000
625,000

Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.

ENSIGN LEISURE LIMITED T/A SLINFOLD GOLF & COUNTRY CLUB
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
21
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
1,093
9,677
Between two and five years
2,733
3,826
3,826
13,503
22
Related party transactions

The two directors and a former director have provided an unsupported joint and several personal guarantee of £980,000 (2021 - £980,000) with respect to the bank loan and overdraft facilities of the company.

23
Ultimate controlling party

The immediate and ultimate parent company is British Ensign Golf Limited, a company controlled by its directors and no one party has ultimate control.

 

British Ensign Golf Limited, prepares consolidated financial statements and copies can be obtained from Companies House. The registered office of British Ensign Golf Limited is Slinfold Golf & Country Club, Stane Street, Slinfold, Horsham RH13 0RE.

 

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