Company Registration No. 00185097 (England and Wales)
CHELMSFORD GOLF CLUB LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
CHELMSFORD GOLF CLUB LIMITED
COMPANY INFORMATION
Directors
DA Nairn
P Gilbert
G Wright
KN Foster
KP Dicker
(Appointed 23 July 2022)
Secretary
DA Nairn
Company number
00185097
Registered office
The Club House
Widford Road
Chelmsford
Essex
CM2 9AP
Auditor
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
CHELMSFORD GOLF CLUB LIMITED
CONTENTS
Page
Directors' report
1 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 18
CHELMSFORD GOLF CLUB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company continued to be that of managing a golf club with the ambition to be the most respected Club in Essex.

Directors

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

DA Nairn
C Malyon
(Resigned 3 October 2022)
A Coventry
(Resigned 22 July 2022)
P Gilbert
G Wright
KN Foster
KP Dicker
(Appointed 23 July 2022)
Auditor
The auditors, Rickard Luckin Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities

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.

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.

CHELMSFORD GOLF CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Coronavirus

The golf club sector has continued to feel the positive impact of the boost in popularity that came from the pandemic. This has been largely boosted by increased bar and catering revenue which, on average, has not only recovered to pre-pandemic levels but reached a 6 year high.

 

Whilst there is good news that we are no longer talking about the impact of Covid-19 on the industry, we have now got a potentially more concerning long-term issue with the cost-of-living crisis. With the record level of inflation, the cost of energy, goods and staffing has put significant pressure on the entire sector including Chelmsford Golf Club. With all these costs rising, a full subscription has led to increased fees to cope with the additional costs we are presented with.

 

The short- term goal for the club will be to manage the significant costs as well as possible, without losing sight of the longer-term target of maintaining a strong membership to support the clubs’ future.

 

The unprecedented demand to play golf appears to be easing although visitors’ income has reduced and not yet recovered pre the pandemic levels. New member enquiries continued steadily throughout the year, but we need to ensure that this can be maintained going forward.

 

The financial pandemic support offered to businesses further benefited the Club in the form of a final local authority rates support which was achieved with a rebate for the financial year as well as into 2023-24 which will provide headroom in the budget.

 

Subscription renewals remain strong although the presentation of the golf course is critical to the Club's ability to continue to maintain its loyal membership for the foreseeable future supported also by strong income from new member joining fees.

CHELMSFORD GOLF CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Trading

As we discussed at the SGM we could have been grappling with exponential increases in energy costs – increases so significant that they simply would have to have an impact somewhere, whether clubs deciding how much they need to increase subs and fees by or golfers pondering where their intended golf expenditure now sits in the overall scheme of things. The Club was locked into 3-year energy prices at the floor of pricing over recent years. Post the year’s end we can now confirm that we have again locked into 3-year contracts where prices are capped up by circa 80-90% rather than the potential of 400+% that our competitors may have had to endure over the last 3 years.

 

A similar major cost increase expected when we presented the budget was our Council Rates. Expectations were that these would rise by circa 50%. On submitting a request for a leisure-related rebate agreement we have been able to gain a rebate for the current year and to lock into a cost at 50% of the existing rates for the coming year.

 

The pandemic impacted our ability to complete a couple of capex projects – the Ladies locker room refurbishment was delayed for 6 months by manufacturers of the lockers and doors; our installation of additional solar panels to the greens compound was delayed into next year with the lack of available connectors. Completed projects included the gents shower room, the additional drainage of the 2nd and 9th semi rough areas; we also were mandated to build an expensive storage unit for all chemicals retained on site; the path for the 9th and 16th was a project which we had commenced in house but then outsourced to get this completed albeit with disturbance to members and visitors for several months. The ditch clear out continued and we also filled in the bunker on the 6th and post the storm in Feb undertook a tree planting exercise.

 

The summer of 2022 was one if not the hottest on record and whilst we were the envy of some of our competitors with fantastic fairways this came at a price with water rates significantly over budget.

 

Income from membership subscriptions was £984k up 4.5% whilst joining fees were at £97k down 20.5% from the exceptional numbers through the pandemic. Green Fee and Society income at £79k remained under budget and only 8% up year on year. The post pandemic bounce in Food & Beverage saw combined sales of £470k up 17% reflecting hopefully the attractiveness and offering now from the refurbished clubhouse and the Carter Cabin which continues to be a gathering point or 19th hole. The ongoing challenge will be the impact of staffing with the Minimum Wage up circa 10% YOY and 42% from 2019. The intention is to run the F&B offering at break-even.

 

With total income at £1.667m we were able to manage the rising wage and costs, absorb special projects and report a small loss of £6.6k versus the exceptional profit last year of profit before tax of £128k bolstered by grants, Furlough and the Insurance claim. EBITDA generated from operations was £195k versus 334k.

 

As mentioned at the SGM we sought to finance several projects including the refurbishment of the locker rooms and successfully raised bank finance towards the end of the year. Further loyalty funds were repaid in line with the 8-year term. Raising bank finance seems to be getting more challenging and regardless of the character of the borrower rigid lending criteria could become a future issue for fund raising in the future. As we finished the year, we decided to defer our phase 2 bunker refurbishment in the coming year but seek to raise term membership income sufficient to enable this project to continue and we are pleased to say that we will go into the new year with commitments from members sufficient to enable the project to proceed in 2024.

 

Post year end we continue to monitor subsidence to the flat and garage which is in the hands of our insurers. Whilst Rail Track now has approval to relocate the badgers moving them was missed however geotechnical analysis has confirmed that the badgers are not the route cause, rather following removal of the evergreen trees and a horse chestnut tree to the north of the clubhouse the bowing walls have straightened allowing us to at least start to refurbish the F&B offices, cloakroom and staff room.

 

In these most challenging times, staffing has seen its greatest turnover in the last ten years and my huge thanks go to our staff, to Tony Gilmour replacing Craig Greeson who has been encouraged away to a bigger opportunity, our board members for all their support but most of all to our loyal members.

CHELMSFORD GOLF CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
DA Nairn
Director
30 June 2023
CHELMSFORD GOLF CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHELMSFORD GOLF CLUB LIMITED
- 5 -
Opinion

We have audited the financial statements of Chelmsford Golf Club Limited (the 'company') for the year ended 31 March 2022 which comprise the profit and loss account, the balance sheet, the statement of charges 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:

CHELMSFORD GOLF CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHELMSFORD GOLF CLUB LIMITED
- 6 -
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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Capability of detecting irregularity, including fraud

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management and via inspection of the company’s regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution, relevant financial reporting standards, company law and tax legislation, and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

CHELMSFORD GOLF CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHELMSFORD GOLF CLUB LIMITED
- 7 -

Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation and data protection legislation.

ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

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.

CHELMSFORD GOLF CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHELMSFORD GOLF CLUB LIMITED
- 8 -
Michael Breame
Senior Statutory Auditor
For and on behalf of Rickard Luckin Limited
3 July 2023
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
CHELMSFORD GOLF CLUB LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Turnover
1,667,193
1,601,476
Cost of sales
(1,011,080)
(849,309)
Gross profit
656,113
752,167
Administrative expenses
(633,137)
(607,085)
Other operating income
-
0
18,000
Operating profit
22,976
163,082
Interest receivable and similar income
54
25
Interest payable and similar expenses
(29,638)
(34,444)
(Loss)/profit before taxation
(6,608)
128,663
Tax on (loss)/profit
(388)
(230)
(Loss)/profit for the financial year
(6,996)
128,433

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CHELMSFORD GOLF CLUB LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,981,488
2,909,013
Current assets
Stocks
32,167
28,277
Debtors
5
74,473
142,278
Cash at bank and in hand
343,969
181,453
450,609
352,008
Creditors: amounts falling due within one year
6
(804,858)
(957,003)
Net current liabilities
(354,249)
(604,995)
Total assets less current liabilities
2,627,239
2,304,018
Creditors: amounts falling due after more than one year
7
(1,009,217)
(679,000)
Provisions for liabilities
(226,967)
(226,967)
Net assets
1,391,055
1,398,051
Capital and reserves
Called up share capital
9
4,500
4,500
Revaluation reserve
1,181,340
1,181,340
Profit and loss reserves
205,215
212,211
Total equity
1,391,055
1,398,051

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

The financial statements were approved by the board of directors and authorised for issue on 30 June 2023 and are signed on its behalf by:
DA Nairn
Director
Company Registration No. 00185097
CHELMSFORD GOLF CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2021
4,500
1,235,812
83,778
1,324,090
Year ended 31 March 2022:
Profit for the year
-
-
128,433
128,433
Other comprehensive income:
Tax relating to other comprehensive income
-
(54,472)
-
0
(54,472)
Total comprehensive income for the year
-
(54,472)
128,433
73,961
Balance at 31 March 2022
4,500
1,181,340
212,211
1,398,051
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(6,996)
(6,996)
Balance at 31 March 2023
4,500
1,181,340
205,215
1,391,055
CHELMSFORD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information

Chelmsford Golf Club Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Club House, Widford Road, Chelmsford, Essex, CM2 9AP.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

Entrance fees fall due for payment on the date on which a member joins the club but can be settled over a one, three or five year period. The income is recognised in the profit and loss account on receipt of the funds.

 

The Clubs subscription runs in line with the year end to 31 March. Life membership income received is released over an appropriate period of up to 25 years.

1.3
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:
Freehold land
Nil
Freehold car park
6.66% and 33.33% straight line
Fairway watering system
20% straight line
Course and greens equipment
12-33.33% reducing balance and 20-25% straight line
House furniture and catering equipment
15-33.33% reducing balance and 12.5-25% straight line

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 credited or charged to profit or loss.

1.4
Borrowing costs related to fixed assets

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

CHELMSFORD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets

At each reporting period 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stock held which is not for resale is stated at cost.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 balance sheet 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

CHELMSFORD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors bank loans that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

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

1.11
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 balance sheet 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.

1.12
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.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.13
Taxation
The company manages the Chelmsford Golf Club on behalf of the members. As a mutual organisation the company is only liable to corporation tax on interest received, net rental income, capital gains and income received from non-members, net of attributable expenditure.
CHELMSFORD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 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.

3
Employees

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

2023
2022
Number
Number
Total
36
30
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 April 2022
2,382,053
1,595,421
3,977,474
Additions
40,307
222,054
262,361
Disposals
-
0
(17,768)
(17,768)
Transfers
(172,332)
172,332
-
0
At 31 March 2023
2,250,028
1,972,039
4,222,067
Depreciation and impairment
At 1 April 2022
282,994
785,467
1,068,461
Depreciation charged in the year
26,656
145,462
172,118
At 31 March 2023
309,650
930,929
1,240,579
Carrying amount
At 31 March 2023
1,940,378
1,041,110
2,981,488
At 31 March 2022
2,099,059
809,954
2,909,013

The net book value of other tangible fixed assets includes £133,150 (2022 - £13.200) in respect of assets held under finance leases or hire purchase contracts.

 

The transfer in the year out of Freehold Properties and now included within plant and machinery are costs incurred on the course in respect of drainage, tees, bunkers etc. which are shown separately to the underlying land and buildings of the club. The NBV of such items included in plant and machinery is £373,361 (2022: £268,321).

CHELMSFORD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4
Tangible fixed assets
(Continued)
- 16 -

Land and buildings were revalued at March 2021 by independent valuers not connected with the company on the basis of market value. The carrying amount of land not depreciated within this was £112,907. However the valuation included the whole site, including elements that are depreciating assets being carried at a fair book value. These financial statements therefore reflect the overall carrying value of £2,500,000 which is the valuation provided by the valuers for the business site. Historic depreciation on those depreciating assets within the total value has not therefore been reversed and these assets continue to be depreciated in line with the Club's accounting policies. The directors believe the valuation from March 2021, plus additions since that date at depreciated cost, represent a materially correct reflection of the value of land, buildings and incumbent equipment as at 31 March 2023.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2023
2022
£
£
Cost
2,813,759
2,909,013
Accumulated depreciation
(1,240,579)
(1,327,248)
Carrying value
1,573,180
1,581,765
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,107
2,991
Other debtors
72,366
139,287
74,473
142,278
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
21,419
-
0
Trade creditors
52,166
82,986
Corporation tax
273
295
Other taxation and social security
22,017
17,905
Other creditors
708,983
855,817
804,858
957,003
CHELMSFORD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
278,581
-
0
Other creditors
730,636
679,000
1,009,217
679,000

The bank loans are secured by a first legal mortgage over the freehold property known as Chelmsford Golf Club and a fixed and floating charge over the assets of the club. The interest is charged at base rate + 2.25% margin for the duration of the loans. The loan is due to be fully repaid after 10 years.

Other creditors includes monies lent to the club under its loyalty scheme. These amounts are repayable in full by 31 December 2027, or at the earlier discretion of the club. The amounts lent to the club attract a fixed rate of interest of 3.7%.

Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
192,907
-
8
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
26,499
24,602

The company contributes to 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.

9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £5 each
900
900
4,500
4,500
10
Operating lease commitments

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

2023
2022
£
£
135,494
166,482
CHELMSFORD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
11
Parent company

For this and the preceding year the ultimate controlling party was the Chelmsford Golf Club Members Trust.

12
Related party transactions

During the year the club made purchases for goods and services from members totalling £17,307 (2022: £47,640). All purchases were made on normal commercial terms.

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